( S ( NP-SBJ ( NP ( NNP Moody ) ( POS 's ) ) ( NNPS Investors ) ( NNP Service ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD lowered ) ( NP ( NP ( DT the ) ( NNS ratings ) ) ( PP ( IN on ) ( NP ( NP ( QP ( IN about ) ( CD 3.2 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( NP ( NNP Houston ) ( NNP Lighting ) ( CC & ) ( NNP Power ) ( NNP Co. ) ( POS 's ) ) ( NNS securities ) ) ) ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ low ) ( NNS levels ) ) ( PP ( IN of ) ( NP ( NP ( NN interest ) ( NN coverage ) ) ( CC and ) ( NP ( JJ internal ) ( NN cash ) ( NN generation ) ) ) ) ) ) ) ) ) ) )

Moody 's Investors Service Inc. said it lowered the ratings on about 3.2 billion of Houston Lighting & Power Co. 's securities because of the company 's low levels of interest coverage and internal cash generation


( S ( NP-SBJ ( NNP Houston ) ( NNP Lighting ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN unit ) ) ( PP ( IN of ) ( NP ( NP ( NNP Houston ) ( NNPS Industries ) ( NNP Inc. ) ) ( NP ( NP ( DT a ) ( NN utility ) ( VBG holding ) ( NN company ) ) ( PP-LOC ( IN in ) ( NP ( NNP Houston ) ) ) ) ) ) ) ) )

Houston Lighting is a unit of Houston Industries Inc. a utility holding company in Houston


( S ( SINV ( VP-TPC-3 ( VBN Downgraded ) ( PP ( IN by ) ( NP-LGS ( NNP Moody ) ( POS 's ) ) ) ) ( VP ( VBD were ) ) ( NP-SBJ-1 ( NP ( NNP Houston ) ( NNP Lighting ) ( POS 's ) ) ( NX ( NX ( JJ first-mortgage ) ( NNS bonds ) ) ( CC and ) ( NX ( JJ secured ) ( JJ pollution-control ) ( NNS bonds ) ) ) ) ( PP-DIR-2 ( TO to ) ( NP ( JJ single-A-3 ) ) ) ( PP-DIR-4 ( IN from ) ( NP ( JJ single-A-2 ) ) ) ) ( SINV ( NP-SBJ=1 ( JJ unsecured ) ( NN pollution-control ) ( NNS bonds ) ) ( PP-DIR=2 ( TO to ) ( NP ( JJ Baa-1 ) ) ) ( PP-DIR=4 ( IN from ) ( NP ( JJ single-A-3 ) ) ) ) ( SINV ( NP-SBJ=1 ( JJ preferred ) ( NN stock ) ) ( PP-DIR=2 ( TO to ) ( NP ( JJ single-A-3 ) ) ) ( PP-DIR=4 ( IN from ) ( NP ( JJ single-A-2 ) ) ) ) ( SINV ( NP-SBJ=1 ( NP ( DT a ) ( NN shelf ) ( NN registration ) ) ( PP ( IN for ) ( NP ( JJ preferred ) ( NN stock ) ) ) ) ( PP-DIR=2 ( TO to ) ( NP ( NP ( DT a ) ( JJ preliminary ) ( NN rating ) ) ( PP ( IN of ) ( NP ( JJ single-A-3 ) ) ) ) ) ( PP-DIR=4 ( IN from ) ( NP ( NP ( DT a ) ( JJ preliminary ) ( NN rating ) ) ( PP ( IN of ) ( NP ( JJ single-A-2 ) ) ) ) ) ) ( SINV ( NP-SBJ=1 ( NP ( CD two ) ( NN shelf ) ( NNS registrations ) ) ( PP ( IN for ) ( NP ( JJ collateralized ) ( NN debt ) ( NNS securities ) ) ) ) ( PP-DIR=2 ( TO to ) ( NP ( NP ( DT a ) ( JJ preliminary ) ( NN rating ) ) ( PP ( IN of ) ( NP ( JJ single-A-3 ) ) ) ) ) ( PP=4 ( IN from ) ( NP ( NP ( DT a ) ( JJ preliminary ) ( NN rating ) ) ( PP ( IN of ) ( NP ( JJ single-A-2 ) ) ) ) ) ) ( CC and ) ( SINV ( NP-SBJ=1 ( NP ( NP ( DT the ) ( NN unit ) ( POS 's ) ) ( NN rating ) ) ( PP ( IN for ) ( NP ( JJ commercial ) ( NN paper ) ) ) ) ( PP=2 ( TO to ) ( NP ( JJ Prime-2 ) ) ) ( PP=4 ( IN from ) ( NP ( JJ Prime-1 ) ) ) ) )

Downgraded by Moody 's were Houston Lighting 's first-mortgage bonds and secured pollution-control bonds to single-A-3 from single-A-2 unsecured pollution-control bonds to Baa-1 from single-A-3 preferred stock to single-A-3 from single-A-2 a shelf registration for preferred stock to a preliminary rating of single-A-3 from a preliminary rating of single-A-2 two shelf registrations for collateralized debt securities to a preliminary rating of single-A-3 from a preliminary rating of single-A-2 and the unit 's rating for commercial paper to Prime-2 from Prime-1


( S ( NP-SBJ ( NNP Moody ) ( POS 's ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( NNP Houston ) ( NNP Lighting ) ( POS 's ) ) ( JJ current ) ( NN situation ) ) ( VP ( VBZ has ) ( NP ( NP ( DT some ) ( JJ positive ) ( NNS aspects ) ) ( PP ( VBG including ) ( S-NOM ( VP ( VBG managing ) ( ADVP-MNR ( RB very ) ( RB well ) ) ( NP ( NP ( DT the ) ( NN construction ) ( CC and ) ( JJ commercial ) ( NN operation ) ( NNS risks ) ) ( PP ( IN of ) ( NP ( NP ( NNS Units ) ( CD 1 ) ( CC and ) ( CD 2 ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP South ) ( NNP Texas ) ( NNP Project ) ( JJ nuclear ) ( NN power ) ( NN plant ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Moody 's said Houston Lighting 's current situation has some positive aspects including managing very well the construction and commercial operation risks of Units 1 and 2 of the South Texas Project nuclear power plant


( S ( S-TPC-1 ( S ( NP-SBJ ( NN Capital ) ( NNS requirements ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBG declining ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-90 ( DT no ) ( JJ new ) ( VBG generating ) ( NNS facilities ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN required ) ) ) ) ) ( PP-TMP ( IN for ) ( NP ( JJ several ) ( NNS years ) ) ) ) ( NP-SBJ ( NNP Moody ) ( POS 's ) ) ( VP ( VBD said ) ) )

Capital requirements will be declining and no new generating facilities will be required for several years Moody 's said


( S ( NP-SBJ ( NNP Giovanni ) ( NNP Agnelli ) ( CC & ) ( NNP Co. ) ) ( VP ( VBD announced ) ( NP ( NP ( DT a ) ( NN transaction ) ) ( SBAR ( WHNP-114 ( WDT that ) ) ( S ( VP ( VP ( MD will ) ( VP ( VB strengthen ) ( NP ( NP ( PRP$ its ) ( JJ indirect ) ( NN control ) ) ( PP ( IN of ) ( NP ( NNP Fiat ) ( NNP S.p ) ( NNP A. ) ) ) ) ) ) ( CC and ) ( VP ( MD will ) ( VP ( VB admit ) ( NP ( NNP Prince ) ( NNP Karim ) ( NNP Aga ) ( NNP Khan ) ) ( PP ( IN as ) ( NP ( PRP$ its ) ( JJ first ) ( JJ non-family ) ( NN shareholder ) ) ) ) ) ) ) ) ) ) )

Giovanni Agnelli & Co. announced a transaction that will strengthen its indirect control of Fiat S.p A. and will admit Prince Karim Aga Khan as its first non-family shareholder


( S ( NP-SBJ ( NP ( NNP Giovanni ) ( NNP Agnelli ) ) ( NP ( NP ( DT a ) ( JJ limited ) ( NN partnership ) ) ( SBAR ( WHNP-115 ( WDT that ) ) ( S ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NN master ) ( VBG holding ) ( NN company ) ) ( PP ( IN for ) ( NP ( NP ( NNP Fiat ) ( POS 's ) ) ( NNP Agnelli ) ( NN family ) ) ) ) ) ) ) ) ) ( VP ( VBZ owns ) ( NP ( NP ( QP ( RB approximately ) ( CD 75 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS shares ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Istituto ) ( NNP Finanziario ) ( NNP Industriale ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( PP ( IN in ) ( NP ( NN turn ) ) ) ( VP ( VBZ owns ) ( NP ( NP ( QP ( RB approximately ) ( CD 40 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNP Fiat ) ) ( NP ( NP ( NNP Italy ) ( POS 's ) ) ( JJS biggest ) ( NN private-sector ) ( JJ industrial ) ( NN group ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Giovanni Agnelli a limited partnership that is the master holding company for Fiat 's Agnelli family owns approximately 75 % of the shares in Istituto Finanziario Industriale which in turn owns approximately 40 % of Fiat Italy 's biggest private-sector industrial group


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( NP ( NNP Maria ) ( NNP Sole ) ( NNP Agnelli ) ( NNP Teodorani ) ) ( NP ( NP ( NN sister ) ) ( PP ( IN of ) ( NP ( NNP Fiat ) ( NNP Chairman ) ( NNP Giovanni ) ( NNP Agnelli ) ) ) ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB trade ) ( NP ( NP ( PRP$ her ) ( NNS shares ) ) ( PP-LOC ( IN in ) ( NP ( NNP IFI ) ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ new ) ( JJ ordinary ) ( NNS shares ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ limited ) ( NN partnership ) ) ) ) ) ( SBAR-ADV ( WHNP-116 ( WDT which ) ) ( S ( VP ( MD will ) ( VP ( VB give ) ( NP ( PRP$ her ) ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( NP ( CD 4.67 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNP Giovanni ) ( NNP Agnelli ) ( CC & ) ( NNP Co ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The company said Maria Sole Agnelli Teodorani sister of Fiat Chairman Giovanni Agnelli agreed to trade her shares in IFI for new ordinary shares in the limited partnership which will give her control of 4.67 % of Giovanni Agnelli & Co


( S ( NP-SBJ-1 ( DT The ) ( NNP Aga ) ( NNP Khan ) ) ( ADVP-TMP ( RB meanwhile ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB trade ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ his ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ Luxembourg-based ) ( NNP Ifint ) ( NNP S.A. ) ) ( NP ( DT another ) ( NNP Agnelli ) ( NN family ) ( NN company ) ) ) ) ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( CD 7.45 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNP Giovanni ) ( NNP Agnelli ) ( CC & ) ( NNP Co. ) ( POS 's ) ) ( NN capital ) ) ) ) ) ) ) ) ) )

The Aga Khan meanwhile agreed to trade some of his stake in Luxembourg-based Ifint S.A. another Agnelli family company for 7.45 % of Giovanni Agnelli & Co. 's capital


( S ( NP-SBJ ( PRP$ His ) ( JJ new ) ( NN stake ) ) ( VP ( MD would ) ( VP ( VB be ) ( PP-PRD ( IN in ) ( NP ( NP ( DT the ) ( NN form ) ) ( PP ( IN of ) ( NP ( NP ( JJ preferred ) ( NNS shares ) ) ( SBAR ( WHNP-117 ( WDT which ) ) ( S ( VP ( VP ( VBP receive ) ( NP ( JJR higher ) ( NNS dividends ) ) ) ( CC but ) ( VP ( VBP have ) ( NP ( VBG voting ) ( NNS rights ) ) ( PP-LOC ( ADVP ( RB only ) ) ( IN in ) ( NP ( JJ extraordinary ) ( NNS shareholders ) ( NNS assemblies ) ) ) ) ) ) ) ) ) ) ) ) ) )

His new stake would be in the form of preferred shares which receive higher dividends but have voting rights only in extraordinary shareholders assemblies


( S ( NP-SBJ ( DT The ) ( NNP Aga ) ( NNP Khan ) ) ( VP ( VBZ owns ) ( NP ( NP ( CD 10 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNP Ifint ) ( POS 's ) ) ( NN capital ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NNP IFI ) ) ( VP ( VBZ owns ) ( NP ( CD 23 ) ( NN % ) ) ) ) ) ) )

The Aga Khan owns 10 % of Ifint 's capital while IFI owns 23 %


( S ( PP-PRP ( IN As ) ( NP ( NP ( DT a ) ( NN result ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN transaction ) ) ( SBAR ( WHNP-118 ( WDT which ) ) ( S ( VP ( VBZ is ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN approved ) ( PP-LOC ( IN at ) ( NP ( DT a ) ( NNS shareholders ) ( NN meeting ) ) ) ( NP-TMP ( NNP Nov. ) ( CD 24 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Giovanni ) ( NNP Agnelli ) ( CC & ) ( NNP Co. ) ) ( VP ( MD will ) ( VP ( VB control ) ( NP ( NP ( CD 79.18 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNP IFI ) ( POS 's ) ) ( JJ ordinary ) ( NNS shares ) ) ) ) ) ) )

As a result of the transaction which is expected to be approved at a shareholders meeting Nov. 24 Giovanni Agnelli & Co. will control 79.18 % of IFI 's ordinary shares


( S ( NP-SBJ-84 ( PRP$ Its ) ( NN capital ) ) ( VP ( MD will ) ( ADVP ( RB also ) ) ( VP ( VB be ) ( VP ( VBN raised ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 232.4 ) ( CD billion ) ) ( NNS lire ) ) ( PRN ( NP ( QP ( CD 172.5 ) ( CD million ) ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( DT the ) ( JJ current ) ( QP ( CD 204.3 ) ( CD billion ) ) ( NNS lire ) ) ) ) ) ) )

Its capital will also be raised to 232.4 billion lire 172.5 million from the current 204.3 billion lire


( S ( NP-SBJ ( NNP IFI ) ) ( ADVP ( RB also ) ) ( VP ( VBZ has ) ( NP ( NP ( JJ nonvoting ) ( JJ preferred ) ( NNS shares ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP are ) ( VP ( VBN quoted ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP Milan ) ( NN stock ) ( NN exchange ) ) ) ) ) ) ) ) ) )

IFI also has nonvoting preferred shares which are quoted on the Milan stock exchange


( S ( S ( NP-SBJ-1 ( NP ( DT The ) ( NN value ) ) ( PP ( IN of ) ( NP ( DT the ) ( CD two ) ( NNS transactions ) ) ) ) ( VP ( VBD was ) ( RB n't ) ( VP ( VBN disclosed ) ) ) ) ( CC but ) ( S ( NP-SBJ ( DT an ) ( NNP IFI ) ( NN spokesman ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT no ) ( NN cash ) ) ( VP ( MD would ) ( VP ( VB change ) ( NP ( NNS hands ) ) ) ) ) ) ) ) )

The value of the two transactions was n't disclosed but an IFI spokesman said no cash would change hands


( S ( NP-SBJ ( DT The ) ( NN move ) ) ( VP ( VBZ strengthens ) ( NP ( NP ( DT the ) ( VBG existing ) ( NNS links ) ) ( PP ( IN between ) ( NP ( NP ( DT the ) ( NNPS Agnellis ) ) ( CC and ) ( NP ( NP ( DT the ) ( NNP Aga ) ( NNP Khan ) ) ( NP ( NP ( DT the ) ( NN head ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN world ) ( POS 's ) ) ( NNP Ismaili ) ( NNPS Moslems ) ) ) ) ( SBAR ( WHNP-119 ( WP who ) ) ( S ( S ( VP ( VBZ is ) ( NP-PRD ( DT a ) ( JJ longtime ) ( NN family ) ( NN friend ) ) ) ) ( CC and ) ( S ( ADVP-TMP ( RB frequently ) ) ( VP ( VBZ goes ) ( NP ( NN sailing ) ) ( PP ( IN with ) ( NP ( NNP Mr. ) ( NNP Agnelli ) ) ) ) ) ) ) ) ) ) ) ) )

The move strengthens the existing links between the Agnellis and the Aga Khan the head of the world 's Ismaili Moslems who is a longtime family friend and frequently goes sailing with Mr. Agnelli


( S ( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Agnelli ) ) ( CC and ) ( NP ( DT the ) ( NNP Aga ) ( NNP Khan ) ) ) ( ADVP ( RB also ) ) ( VP ( VBP have ) ( NP ( DT some ) ( NN business ) ( NNS ties ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( DT a ) ( NN spokesman ) ) ( PP ( IN for ) ( NP ( DT the ) ( NNP Agnelli ) ( NN company ) ) ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB rule ) ( ADVP-CLR ( RB out ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( JJ current ) ( NN agreement ) ) ( VP ( MD could ) ( VP ( VB lead ) ( PP-DIR ( TO to ) ( NP ( JJ further ) ( NN collaboration ) ) ) ) ) ) ) ) ) ) )

Mr. Agnelli and the Aga Khan also have some business ties and a spokesman for the Agnelli company did n't rule out that the current agreement could lead to further collaboration


( S ( PP ( IN For ) ( NP ( NN instance ) ) ) ( NP-SBJ ( NNP Ifint ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN year ) ) ( VP ( VBD bought ) ( NP ( NP ( DT an ) ( ADJP ( CD 18 ) ( NN % ) ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Alisarda ) ) ( NP ( NP ( DT the ) ( NNP Aga ) ( NNP Khan ) ( POS 's ) ) ( NN airline ) ) ( SBAR ( WHNP-120 ( WDT which ) ) ( S ( VP ( VBZ flies ) ( PP-DIR ( IN between ) ( NP ( NNP Italy ) ( CC and ) ( NNP Sardinia ) ) ) ) ) ) ) ) ) ) )

For instance Ifint earlier this year bought an 18 % stake in Alisarda the Aga Khan 's airline which flies between Italy and Sardinia


( S ( NP-SBJ ( NP ( NNP Giovanni ) ( NNP Agnelli ) ( CC & ) ( NNP Co. ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD was ) ( VP ( VBN formed ) ( PP-TMP ( IN in ) ( NP ( NNP January ) ( CD 1987 ) ) ) ( PP ( IN as ) ( NP ( NP ( DT a ) ( NN way ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG keeping ) ( S ( NP-SBJ ( NP ( NP ( DT the ) ( NNPS Agnellis ) ( POS ' ) ) ( VBG controlling ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( NNP Fiat ) ) ) ) ( ADJP-PRD ( RB together ) ) ) ( PP ( IN despite ) ( NP ( DT an ) ( JJ ever-growing ) ( NN family ) ( NN tree ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBG playing ) ( NP ( NP ( DT a ) ( RBR more ) ( JJ active ) ( NN role ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Agnelli ) ( NN group ) ) ) ) ( ADVP-TMP ( IN of ) ( RB late ) ) ) ) ) )

Giovanni Agnelli & Co. which was formed in January 1987 as a way of keeping the Agnellis ' controlling stake in Fiat together despite an ever-growing family tree has been playing a more active role in the Agnelli group of late


( S ( NP-SBJ-1 ( PRP It ) ) ( VP ( VBD raised ) ( NP ( NP ( NN financing ) ) ( PP ( IN of ) ( NP ( QP ( CD 300 ) ( CD billion ) ) ( NNS lire ) ) ) ) ( PP-PRP ( IN for ) ( NP ( NP ( DT the ) ( NN purchase ) ) ( NP-TMP ( DT this ) ( NN summer ) ) ( PP ( IN by ) ( NP ( DT another ) ( JJ Agnelli-related ) ( NN group ) ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN food ) ( NN concern ) ) ( NP ( NNP Galbani ) ( NNP S.p ) ( NNP A. ) ) ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG selling ) ( NP ( NP ( DT a ) ( NN chunk ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NNP IFI ) ( NNS shares ) ) ) ) ( PP-DTV ( TO to ) ( NP ( NNP Mediobanca ) ( NNP S.p ) ( NNP A. ) ) ) ) ) ) ) )

It raised financing of 300 billion lire for the purchase this summer by another Agnelli-related group of the food concern Galbani S.p A. by selling a chunk of its IFI shares to Mediobanca S.p A.


( S ( NP-SBJ ( NNP Mediobanca ) ) ( VP ( VBD said ) ( PP-TMP ( IN during ) ( NP ( DT the ) ( NN weekend ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( DT the ) ( NNS shares ) ) ( ADVP-CLR ( RP back ) ( PP ( TO to ) ( NP ( NNP Giovanni ) ( NNP Agnelli ) ) ) ) ( PP-CLR ( IN for ) ( NP ( QP ( CD 333 ) ( CD billion ) ) ( NNS lire ) ) ) ) ) ) ) ) ) ) )

Mediobanca said during the weekend that it agreed to sell the shares back to Giovanni Agnelli for 333 billion lire


( S ( SBAR-ADV ( IN As ) ( S ( NP-SBJ ( NP ( NP ( NNP Georgia-Pacific ) ( POS 's ) ) ( NN bid ) ) ( PP ( IN for ) ( NP ( NNP Great ) ( NNP Northern ) ( NNP Nekoosa ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN shown ) ) ) ) ) ( NP-SBJ ( JJ uninvited ) ( NNS takeovers ) ) ( VP ( VBP are ) ( ADVP ( RB still ) ) ( ADJP-PRD ( JJ alive ) ) ( PP ( IN despite ) ( NP ( NP ( JJ premature ) ( NNS reports ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NN demise ) ) ) ) ) ) )

As Georgia-Pacific 's bid for Great Northern Nekoosa has shown uninvited takeovers are still alive despite premature reports of their demise


( S ( ADVP ( RB Therefore ) ) ( NP-SBJ-1 ( NP ( DT the ) ( NN debate ) ) ( PP ( IN about ) ( NP ( NN poison ) ( NNS pills ) ) ) ) ( VP ( MD will ) ( VP ( VB continue ) ( S ( VP ( TO to ) ( VP ( VB rage ) ( PP-LOC ( IN in ) ( NP ( NP ( NP ( DT the ) ( NNS boardrooms ) ) ( PP ( IN of ) ( NP ( NNS corporations ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( NNS halls ) ) ( PP ( IN of ) ( NP ( NN academia ) ) ) ) ) ) ) ) ) ) ) )

Therefore the debate about poison pills will continue to rage in the boardrooms of corporations and the halls of academia


( S ( SBAR-ADV ( IN Although ) ( S ( NP-SBJ ( NN poison ) ( NNS pills ) ) ( VP ( VBP come ) ( PP-MNR ( IN in ) ( NP ( JJ different ) ( NNS colors ) ( CC and ) ( NNS shapes ) ) ) ) ) ) ( NP-SBJ ( PRP they ) ) ( ADVP-TMP ( RB usually ) ) ( VP ( VBP give ) ( NP ( JJ current ) ( NNS shareholders ) ) ( NP ( DT the ) ( NN right ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NP ( JJR more ) ( NN stock ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NN corporation ) ) ) ) ( PP-CLR ( IN at ) ( NP ( DT a ) ( JJ large ) ( NN discount ) ) ) ( SBAR-ADV ( SBAR ( IN if ) ( S ( NP-SBJ ( JJ certain ) ( NNS events ) ) ( VP ( VBP occur ) ) ) ) ( PRN ( ADVP ( RB typically ) ) ( SBAR ( IN if ) ( S ( NP-SBJ ( DT a ) ( JJ hostile ) ( NN bidder ) ) ( VP ( VBZ acquires ) ( NP ( NP ( JJR more ) ) ( PP ( IN than ) ( NP ( NP ( DT a ) ( JJ specified ) ( NN percentage ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN corporation ) ( POS 's ) ) ( NN stock ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Although poison pills come in different colors and shapes they usually give current shareholders the right to buy more stock of their corporation at a large discount if certain events occur typically if a hostile bidder acquires more than a specified percentage of the corporation 's stock


( S ( ADVP ( RB However ) ) ( NP-SBJ-170 ( DT these ) ( NN discount ) ( NN purchase ) ( NNS rights ) ) ( VP ( MD may ) ( ADVP ( RB generally ) ) ( VP ( VB be ) ( VP ( VBN redeemed ) ( PP-CLR ( IN at ) ( NP ( DT a ) ( JJ nominal ) ( NN cost ) ) ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NN corporation ) ( POS 's ) ) ( NNS directors ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP approve ) ( PP-CLR ( IN of ) ( NP ( DT a ) ( NN bidder ) ) ) ) ) ) ) ) ) )

However these discount purchase rights may generally be redeemed at a nominal cost by the corporation 's directors if they approve of a bidder


( S ( NP-SBJ ( NP ( NNS Supporters ) ) ( PP ( IN of ) ( NP ( NN poison ) ( NNS pills ) ) ) ) ( VP ( VBP argue ) ( SBAR ( DT that ) ( S ( NP-SBJ ( PRP$ their ) ( NN adoption ) ) ( VP ( VBZ forces ) ( S ( NP-SBJ ( NNS bidders ) ) ( VP ( TO to ) ( VP ( VB negotiate ) ( PP-CLR ( IN with ) ( NP ( NP ( NP ( DT a ) ( NN corporation ) ( POS 's ) ) ( NNS directors ) ) ( SBAR ( WHNP-185 ( WP who ) ) ( S ( VP ( VBP are ) ( ADVP ( RB thereby ) ) ( VP ( VBN put ) ( PP-PUT ( IN in ) ( NP ( NP ( DT a ) ( JJR better ) ( NN position ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB pursue ) ( NP ( NP ( DT the ) ( JJ long-term ) ( NNS interests ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN corporation ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Supporters of poison pills argue that their adoption forces bidders to negotiate with a corporation 's directors who are thereby put in a better position to pursue the long-term interests of the corporation


( S ( NP-SBJ ( NP ( JJ Recent ) ( NNS studies ) ) ( PP ( IN by ) ( NP ( NNP Georgeson ) ( CC & ) ( NNP Co. ) ) ) ) ( VP ( VBP conclude ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNS corporations ) ) ( PP ( IN with ) ( NP ( NN poison ) ( NNS pills ) ) ) ) ( VP ( VBP have ) ( VP ( VBN experienced ) ( NP ( NP ( JJR greater ) ( JJ stock-price ) ( NN appreciation ) ) ( PP ( IN than ) ( NP ( NP ( NNS corporations ) ) ( PP ( IN without ) ( NP ( NN poison ) ( NNS pills ) ) ) ) ) ) ( PP-TMP ( IN during ) ( NP ( DT the ) ( JJ past ) ( JJ few ) ( NNS years ) ) ) ) ) ) ) ) )

Recent studies by Georgeson & Co. conclude that corporations with poison pills have experienced greater stock-price appreciation than corporations without poison pills during the past few years


( S ( NP-SBJ ( NP ( NNS Critics ) ) ( PP ( IN of ) ( NP ( NN poison ) ( NNS pills ) ) ) ) ( VP ( VBP argue ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP harm ) ( NP ( NNS shareholders ) ) ( PP-MNR ( PP ( IN by ) ( S-NOM ( VP ( VBG letting ) ( S ( NP-SBJ ( JJ corporate ) ( NN management ) ) ( VP ( VB defeat ) ( NP ( NP ( NN takeover ) ( NNS bids ) ) ( PP ( IN at ) ( NP ( JJ premium ) ( NNS prices ) ) ) ) ) ) ) ) ) ( CC and ) ( PP ( IN by ) ( S-NOM ( VP ( VBG deterring ) ( NP-2 ( JJ premium ) ( NNS bids ) ) ( PP-CLR ( IN from ) ( S-NOM ( ADVP-TMP ( RB ever ) ) ( VP ( VBG being ) ( VP ( VBN made ) ( PP-DTV ( TO to ) ( NP ( NNS shareholders ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Critics of poison pills argue that they harm shareholders by letting corporate management defeat takeover bids at premium prices and by deterring premium bids from ever being made to shareholders


( S ( NP-SBJ-172 ( DT These ) ( NNS critics ) ) ( VP ( VBP are ) ( VP ( VBN backed ) ( PP ( IN by ) ( NP-LGS ( NP ( JJ several ) ( JJ academic ) ( NNS studies ) ) ( VP ( VBG showing ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NN adoption ) ) ( PP ( IN of ) ( NP ( NN poison ) ( NNS pills ) ) ) ) ( VP ( VBZ reduces ) ( NP ( NN shareholder ) ( NNS values ) ) ( PP-TMP ( CONJP ( RB not ) ( RB merely ) ) ( PP ( IN in ) ( NP ( DT the ) ( JJ short ) ( NN run ) ) ) ( CONJP ( CC but ) ( RB also ) ) ( PP ( IN over ) ( NP ( JJR longer ) ( NNS periods ) ) ) ) ) ) ) ) ) ) ) ) )

These critics are backed by several academic studies showing that the adoption of poison pills reduces shareholder values not merely in the short run but also over longer periods


( S ( NP-SBJ ( NP ( JJ Institutional ) ( NNS investors ) ) ( SBAR ( WHNP-186 ( WDT that ) ) ( S ( VP ( MD must ) ( VP ( VB evaluate ) ( NP ( NN poison ) ( NNS pills ) ) ( PP-TMP ( IN on ) ( NP ( DT a ) ( JJ regular ) ( NN basis ) ) ) ) ) ) ) ) ( VP ( VBP are ) ( VP ( JJ interested ) ( ADVP ( ADVP ( RBR less ) ) ) ( PP-CLR ( IN in ) ( NP ( DT this ) ( JJ general ) ( NN debate ) ) ) ( PP-1 ( IN than ) ( PP ( IN in ) ( NP ( NP ( DT the ) ( NNS answers ) ) ( PP ( TO to ) ( NP ( NP ( JJ specific ) ( NNS questions ) ) ( PP ( IN about ) ( NP ( NP ( DT the ) ( NN corporation ) ) ( VP ( VBG issuing ) ( NP ( DT the ) ( NN pill ) ) ) ) ) ) ) ) ) ) ) ) )

Institutional investors that must evaluate poison pills on a regular basis are interested less in this general debate than in the answers to specific questions about the corporation issuing the pill


( SQ ( VBZ Does ) ( NP-SBJ ( DT this ) ( NN corporation ) ) ( VP ( VB have ) ( NP ( NP ( DT a ) ( JJ high-quality ) ( NN management ) ( NN team ) ) ( PP ( IN with ) ( NP ( DT a ) ( JJ good ) ( NN track ) ( NN record ) ) ) ) ) )

Does this corporation have a high-quality management team with a good track record


( SQ ( SQ ( VBZ Does ) ( NP-SBJ ( DT this ) ( NN team ) ) ( VP ( VB have ) ( NP ( NP ( DT a ) ( JJ viable ) ( NN strategy ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG improving ) ( NP ( NN shareholder ) ( NNS values ) ) ) ) ) ) ) ) ( CC and ) ( SQ ( VBZ does ) ( NP-SBJ ( DT this ) ( NN strategy ) ) ( VP ( VB require ) ( NP ( NN implementation ) ) ( PP-TMP ( IN over ) ( NP ( DT an ) ( JJ extended ) ( NN period ) ) ) ) ) )

Does this team have a viable strategy for improving shareholder values and does this strategy require implementation over an extended period


( SQ ( MD Will ) ( NP-SBJ ( NP ( DT the ) ( NN adoption ) ) ( PP ( IN of ) ( NP ( NP ( DT this ) ( JJ particular ) ( NN form ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN poison ) ( NN pill ) ) ) ) ) ) ( VP ( ADVP-MNR ( RB significantly ) ) ( VB improve ) ( NP ( DT the ) ( NNS chances ) ( SBAR ( IN for ) ( S ( NP-SBJ ( NN management ) ) ( VP ( TO to ) ( VP ( VB carry ) ( PRT ( RP out ) ) ( NP ( DT this ) ( NN strategy ) ) ) ) ) ) ) ) )

Will the adoption of this particular form of a poison pill significantly improve the chances for management to carry out this strategy


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( NP ( DT the ) ( NNS answers ) ) ( PP ( TO to ) ( NP ( DT these ) ( NNS questions ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ affirmative ) ) ) ) ) ( ADVP ( RB then ) ) ( NP-SBJ-1 ( JJ institutional ) ( NNS investors ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( RB favorably ) ( JJ disposed ) ( PP ( IN toward ) ( NP ( DT a ) ( JJ specific ) ( NN poison ) ( NN pill ) ) ) ) ) ) ) ) ) )

If the answers to these questions are affirmative then institutional investors are likely to be favorably disposed toward a specific poison pill


( S ( ADVP ( RB However ) ) ( NP-SBJ ( DT the ) ( NN problem ) ) ( VP ( VBZ is ) ( SBAR-PRD ( DT that ) ( S ( SBAR-TMP ( RB once ) ( S ( NP-SBJ-173 ( JJS most ) ( JJ poison ) ( NNS pills ) ) ( VP ( VBP are ) ( VP ( VBN adopted ) ) ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP survive ) ( ADVP-TMP ( RB forever ) ) ) ) ) ) )

However the problem is that once most poison pills are adopted they survive forever


( SBARQ ( SBAR-ADV ( IN Although ) ( S ( NP-SBJ ( DT the ) ( JJ current ) ( NN management ) ( NN team ) ) ( VP ( MD may ) ( VP ( VB be ) ( ADJP-PRD ( JJ outstanding ) ) ) ) ) ) ( WHNP-187 ( WP who ) ) ( SQ ( MD will ) ( VP ( VB be ) ( NP-PRD ( DT the ) ( NNP CEO ) ) ( PP-TMP ( IN in ) ( NP ( CD 10 ) ( NNS years ) ) ) ) ) )

Although the current management team may be outstanding who will be the CEO in 10 years


( SBARQ ( SBAR-ADV ( IN Although ) ( S ( NP-SBJ ( DT the ) ( JJ five-year ) ( NN strategy ) ) ( VP ( MD may ) ( VP ( VB be ) ( ADJP-PRD ( JJ excellent ) ) ) ) ) ) ( WHNP-188 ( WP what ) ) ( SQ ( MD will ) ( VP ( VB be ) ( NP-PRD ( DT the ) ( NN strategy ) ) ( PP-TMP ( IN in ) ( NP ( CD 25 ) ( NNS years ) ) ) ) ) )

Although the five-year strategy may be excellent what will be the strategy in 25 years


( S ( NP-SBJ ( NP ( DT The ) ( NN solution ) ) ( PP ( TO to ) ( NP ( DT this ) ( NN problem ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( DT a ) ( JJ time-limited ) ( NN poison ) ( NN pill ) ) ) )

The solution to this problem is a time-limited poison pill


( S ( NP-SBJ ( DT The ) ( NN limit ) ) ( VP ( MD could ) ( VP ( VB range ) ( PP-CLR ( PP ( IN from ) ( NP ( CD three ) ( NNS years ) ) ) ( PP ( TO to ) ( NP ( CD seven ) ( NNS years ) ) ) ) ( PP ( VBG depending ) ( PP ( IN on ) ( NP ( NP ( NP ( DT the ) ( NN composition ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN management ) ( NN team ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( NN nature ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ strategic ) ( NN plan ) ) ) ) ) ) ) ) ) )

The limit could range from three years to seven years depending on the composition of the management team and the nature of its strategic plan


( S ( PP-TMP ( IN At ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN period ) ) ) ) ) ( NP-SBJ-174 ( DT the ) ( NN poison ) ( NN pill ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN eliminated ) ( ADVP-MNR ( RB automatically ) ) ( SBAR-ADV ( IN unless ) ( S ( NP-SBJ-175 ( DT a ) ( JJ new ) ( NN poison ) ( NN pill ) ) ( VP ( VBD were ) ( VP ( VBN approved ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( JJ then-current ) ( NNS shareholders ) ) ( SBAR ( WHNP-189 ( WP who ) ) ( S ( VP ( MD would ) ( VP ( VB have ) ( NP ( DT an ) ( NN opportunity ) ( S ( VP ( TO to ) ( VP ( VB evaluate ) ( NP ( NP ( DT the ) ( NN corporation ) ( POS 's ) ) ( NN strategy ) ( CC and ) ( NN management ) ( NN team ) ) ) ) ) ) ( PP-TMP ( IN at ) ( NP ( DT that ) ( NN time ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

At the end of this period the poison pill would be eliminated automatically unless a new poison pill were approved by the then-current shareholders who would have an opportunity to evaluate the corporation 's strategy and management team at that time


( S ( NP-SBJ ( NP ( CD One ) ( JJ rare ) ( NN example ) ) ( PP ( IN of ) ( NP ( DT a ) ( JJ time-limited ) ( NN poison ) ( NN pill ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NN shareholder ) ( NNS rights ) ( NN plan ) ) ( VP ( VBN adopted ) ( PP ( IN by ) ( NP-LGS ( NNP Pennzoil ) ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD received ) ( NP ( DT a ) ( JJ huge ) ( NN litigation ) ( NN settlement ) ) ( PP-CLR ( IN from ) ( NP ( NNP Texaco ) ) ) ) ) ) ) ) ) )

One rare example of a time-limited poison pill is the shareholder rights plan adopted by Pennzoil last year after it received a huge litigation settlement from Texaco


( S ( NP-SBJ ( NP ( NNP Pennzoil ) ( POS 's ) ) ( NN poison ) ( NN pill ) ) ( VP ( VBZ covers ) ( NP ( CD five ) ( NNS years ) ) ( SBAR-PRP ( IN in ) ( NN order ) ( S ( VP ( TO to ) ( VP ( VB give ) ( NP ( JJ current ) ( NN management ) ) ( NP ( NP ( JJ enough ) ( NN time ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB put ) ( NP ( DT these ) ( NNS proceeds ) ) ( PP-CLR ( TO to ) ( NP ( VB work ) ) ) ( PP-MNR ( IN in ) ( NP ( DT a ) ( JJ prudent ) ( NN manner ) ) ) ) ) ) ) ) ) ) ) ) ) )

Pennzoil 's poison pill covers five years in order to give current management enough time to put these proceeds to work in a prudent manner


( S ( NP-SBJ ( DT Another ) ( JJ interesting ) ( NN example ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NN poison ) ( NN pill ) ) ( VP ( VBN adopted ) ( ADVP-TMP ( RB recently ) ) ( PP ( IN by ) ( NP-LGS ( NP ( JJ Pittsburgh-based ) ( NNP National ) ( NNP Intergroup ) ( NNP Inc. ) ) ( NP ( DT a ) ( JJ diversified ) ( VBG holding ) ( NN company ) ) ) ) ) ) ) )

Another interesting example is the poison pill adopted recently by Pittsburgh-based National Intergroup Inc. a diversified holding company


( S ( NP-SBJ-1 ( NP ( DT The ) ( NAC ( NNP State ) ( PP ( IN of ) ( NP ( NNP Wisconsin ) ) ) ) ( NNP Investment ) ( NNP Board ) ) ( SBAR ( WHNP-190 ( WDT which ) ) ( S ( VP ( VBD owned ) ( NP ( NP ( QP ( IN about ) ( CD 7 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN voting ) ( NN stock ) ) ) ) ) ) ) ) ( VP ( VBD worked ) ( PP ( IN with ) ( NP ( NN management ) ) ) ( S-PRP-CLR ( VP ( TO to ) ( VP ( VB devise ) ( NP ( DT a ) ( JJ time-limited ) ( NN poison ) ( NN pill ) ) ) ) ) ) )

The State of Wisconsin Investment Board which owned about 7 % of the company 's voting stock worked with management to devise a time-limited poison pill


( S ( NP-SBJ-1 ( DT This ) ( NN pill ) ) ( VP ( ADVP ( RB automatically ) ) ( VBZ expires ) ( PP-TMP ( IN after ) ( NP ( CD three ) ( NNS years ) ) ) ( SBAR-ADV ( IN unless ) ( S ( VP ( VBN continued ) ( PP ( IN by ) ( NP-LGS ( NP ( DT a ) ( NN vote ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS shareholders ) ) ) ) ) ) ) ) ) )

This pill automatically expires after three years unless continued by a vote of the shareholders


( S ( NP-SBJ ( NP ( DT The ) ( NN attitude ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Wisconsin ) ( NNP Investment ) ( NNP Board ) ) ) ) ( VP ( VBZ reflects ) ( NP ( NP ( DT a ) ( VBG growing ) ( NN receptivity ) ) ( PP ( TO to ) ( NP ( JJ time-limited ) ( NN poison ) ( NNS pills ) ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN part ) ) ( PP ( IN of ) ( NP ( JJ institutional ) ( NNS investors ) ) ) ) ) ) ( SBAR-ADV ( IN as ) ( S ( VP ( VBN shown ) ( PP ( IN by ) ( NP-LGS ( NP ( NP ( DT the ) ( NNS discussions ) ) ( PP-LOC ( IN at ) ( NP ( NP ( JJ recent ) ( NNS meetings ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Council ) ) ( PP ( IN of ) ( NP ( NNP Institutional ) ( NNPS Investors ) ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( PRP$ my ) ( JJ informal ) ( NN survey ) ) ( PP ( IN of ) ( NP ( NP ( JJ several ) ( NN retirement ) ( NNS plans ) ) ( PP ( IN with ) ( NP ( JJ large ) ( NN stock ) ( NNS positions ) ) ) ) ) ) ) ) ) ) ) ) )

The attitude of the Wisconsin Investment Board reflects a growing receptivity to time-limited poison pills on the part of institutional investors as shown by the discussions at recent meetings of the Council of Institutional Investors and my informal survey of several retirement plans with large stock positions


( S ( NP-SBJ ( NP ( ADJP ( RBR More ) ( JJ widespread ) ) ( NN time ) ( NNS limits ) ) ( PP ( IN on ) ( NP ( NN poison ) ( NNS pills ) ) ) ) ( VP ( MD would ) ( VP ( VB allow ) ( S ( NP-SBJ ( NNS shareholders ) ) ( VP ( TO to ) ( VP ( VB evaluate ) ( NP ( DT a ) ( JJ specific ) ( NN poison ) ( NN pill ) ) ( PP ( IN within ) ( NP ( NP ( DT the ) ( NN context ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( JJ specific ) ( NN management ) ( NN team ) ( POS 's ) ) ( NN strategy ) ) ) ) ) ) ) ) ) ) )

More widespread time limits on poison pills would allow shareholders to evaluate a specific poison pill within the context of a specific management team 's strategy


( S ( NP-SBJ-1 ( JJ Such ) ( JJ concrete ) ( NN analysis ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB lead ) ( PP-DIR ( TO to ) ( NP ( NP ( ADJP ( RBR more ) ( JJ fruitful ) ) ( NN dialogue ) ) ( PP ( IN between ) ( NP ( NN management ) ( CC and ) ( NNS shareholders ) ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( JJ abstract ) ( NN debate ) ) ( PP ( IN about ) ( NP ( NN poison ) ( NNS pills ) ) ) ) ) ) ) ) ) ) ) ) )

Such concrete analysis is likely to lead to more fruitful dialogue between management and shareholders than the abstract debate about poison pills


( S ( NP-SBJ ( NNP Mr. ) ( NNP Pozen ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NP ( DT the ) ( JJ general ) ( NN counsel ) ) ( CC and ) ( NP ( DT a ) ( VBG managing ) ( NN director ) ) ) ( PP ( IN of ) ( NP ( NP ( NNP Fidelity ) ( NNPS Investments ) ) ( PP-LOC ( IN in ) ( NP ( NNP Boston ) ) ) ) ) ) ) )

Mr. Pozen is the general counsel and a managing director of Fidelity Investments in Boston


( S ( NP-SBJ ( NP ( NNP New ) ( NNP Brunswick ) ( NNP Scientific ) ( NNP Co. ) ) ( NP ( NP ( DT a ) ( NN maker ) ) ( PP ( IN of ) ( NP ( NN biotechnology ) ( NN instrumentation ) ( CC and ) ( NN equipment ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD adopted ) ( NP ( NP ( DT an ) ( JJ anti-takeover ) ( NN plan ) ) ( VP ( VBG giving ) ( NP ( NNS shareholders ) ) ( NP ( DT the ) ( NN right ) ( S ( VP ( TO to ) ( VP ( VB purchase ) ( NP ( NNS shares ) ) ( PP ( IN at ) ( NP ( JJ half ) ( NN price ) ) ) ( PP-TMP ( IN under ) ( NP ( JJ certain ) ( NNS conditions ) ) ) ) ) ) ) ) ) ) ) ) ) )

New Brunswick Scientific Co. a maker of biotechnology instrumentation and equipment said it adopted an anti-takeover plan giving shareholders the right to purchase shares at half price under certain conditions


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN plan ) ) ( S-ADV ( PP-PRD ( IN under ) ( NP ( NN review ) ) ) ( PP-TMP ( IN for ) ( NP ( DT some ) ( NN time ) ) ) ) ( VP ( MD will ) ( VP ( VB protect ) ( NP ( NNS shareholders ) ) ( PP-CLR ( IN against ) ( NP ( JJ abusive ) ( NN takeover ) ( NNS tactics ) ) ) ) ) ) ) ) )

The company said the plan under review for some time will protect shareholders against abusive takeover tactics


( S ( SBAR-ADV ( IN As ) ( S ( VP ( VBN expected ) ) ) ) ( NP-SBJ ( NNP Warner ) ( NNPS Bros ) ( NNPS Records ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB form ) ( NP ( DT a ) ( ADJP ( JJ recorded-music ) ( CC and ) ( JJ music-publishing ) ) ( JJ joint ) ( NN venture ) ) ( PP ( IN with ) ( NP ( JJ former ) ( NNP MCA ) ( NNPS Records ) ( NNP Chairman ) ( NNP Irving ) ( NNP Azoff ) ) ) ) ) ) ) ) ) ) )

As expected Warner Bros Records said it agreed to form a recorded-music and music-publishing joint venture with former MCA Records Chairman Irving Azoff


( S ( NP-SBJ ( NNP Warner ) ) ( VP ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB provide ) ( NP ( NN financing ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN venture ) ) ) ) ) ) ) ) ( CC but ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB disclose ) ( NP ( NNS terms ) ) ) ) ) )

Warner said it will provide financing for the venture but did n't disclose terms


( S ( S ( NP-SBJ ( NNP Mr. ) ( NNP Azoff ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBD named ) ( NP ( DT the ) ( NN company ) ) ( ADVP ( RB yet ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-221 ( NP ( DT any ) ( NNS records ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ produces ) ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN distributed ) ( PP ( IN by ) ( NP-LGS ( NNP Warner ) ) ) ) ) ) ) )

Mr. Azoff has n't named the company yet but any records it produces will be distributed by Warner


( S ( NP-SBJ ( NNP Warner ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( NNP Warner ) ( NNPS Communications ) ( NNP Inc. ) ) ( SBAR ( WHNP-256 ( WDT which ) ) ( S ( VP ( VBZ is ) ( PP-PRD ( IN in ) ( NP ( NP ( DT the ) ( NN process ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG being ) ( VP ( VBN acquired ) ( PP ( IN by ) ( NP-LGS ( NNP Time ) ( NNP Warner ) ( NNP Inc ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Warner is part of Warner Communications Inc. which is in the process of being acquired by Time Warner Inc


( S ( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Azoff ) ) ( VP ( VBD resigned ) ( PP-CLR ( IN as ) ( NP ( NP ( NN head ) ) ( PP ( IN of ) ( NP ( NP ( NNP MCA ) ( NNPS Records ) ) ( NP ( NP ( DT a ) ( NN unit ) ) ( PP ( IN of ) ( NP ( NNP MCA ) ( NNP Inc. ) ) ) ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ) ) ( CC and ) ( S ( VP ( VBD had ) ( VP ( VBN been ) ( VP ( VBG discussing ) ( NP ( DT a ) ( JJ joint ) ( NN venture ) ) ( PP ( IN with ) ( NP ( DT both ) ( NNP Warner ) ( CC and ) ( NNP MCA ) ) ) ) ) ) ) )

Mr. Azoff resigned as head of MCA Records a unit of MCA Inc. in September and had been discussing a joint venture with both Warner and MCA


( S ( PP-LOC ( IN In ) ( NP ( DT a ) ( NN statement ) ) ) ( NP-TMP ( NN yesterday ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Azoff ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD chose ) ( NP ( NP ( NNP Warner ) ) ( NP ( DT the ) ( JJS largest ) ( NN record ) ( NN company ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NP ( PRP$ their ) ( NN standing ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN entertainment ) ( NN industry ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ second ) ( PP ( TO to ) ( NP ( NN none ) ) ) ) ) ) ) ) ) ) ) )

In a statement yesterday Mr. Azoff said he chose Warner the largest record company because their standing in the entertainment industry is second to none


( S ( NP-SBJ ( NNP MCI ) ( NNPS Communications ) ( NNP Corp. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD received ) ( NP ( NP ( DT a ) ( JJ three-year ) ( NN contract ) ) ( VP ( VBN valued ) ( PP-CLR ( IN at ) ( NP ( QP ( JJR more ) ( IN than ) ( CD 15 ) ( CD million ) ) ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB provide ) ( NP ( NN network ) ( NN credit-card ) ( CC and ) ( JJ other ) ( NN telecommunications ) ( NNS services ) ) ( PP-DTV ( TO to ) ( NP ( NNP Drexel ) ( NNP Burnham ) ( NNP Lambert ) ( NNP Inc ) ) ) ) ) ) ) ) ) ) ) ) )

MCI Communications Corp. said it received a three-year contract valued at more than 15 million to provide network credit-card and other telecommunications services to Drexel Burnham Lambert Inc


( S ( NP-SBJ ( NNP Rolls-Royce ) ( NNP Motor ) ( NNPS Cars ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ expects ) ( S ( NP-SBJ ( PRP$ its ) ( NNP U.S. ) ( NNS sales ) ) ( VP ( TO to ) ( VP ( VB remain ) ( ADJP-PRD ( JJ steady ) ) ( PP-LOC-CLR ( IN at ) ( NP ( QP ( IN about ) ( CD 1,200 ) ) ( NNS cars ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1990 ) ) ) ) ) ) ) ) ) ) )

Rolls-Royce Motor Cars Inc. said it expects its U.S. sales to remain steady at about 1,200 cars in 1990


( S ( NP-SBJ ( DT The ) ( NN luxury ) ( NN auto ) ( NN maker ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ( VP ( VBD sold ) ( NP ( CD 1,214 ) ( NNS cars ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) )

The luxury auto maker last year sold 1,214 cars in the U.S.


( S ( NP-SBJ ( NP ( NNP Howard ) ( NNP Mosher ) ) ( NP ( NP ( NN president ) ) ( CC and ) ( NP ( JJ chief ) ( NN executive ) ( NN officer ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ anticipates ) ( NP ( NP ( NN growth ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN luxury ) ( NN auto ) ( NN maker ) ) ) ( PP-LOC ( PP ( IN in ) ( NP ( NNP Britain ) ( CC and ) ( NNP Europe ) ) ) ( CC and ) ( PP ( IN in ) ( NP ( ADJP ( JJ Far ) ( JJ Eastern ) ) ( NNS markets ) ) ) ) ) ) ) ) ) )

Howard Mosher president and chief executive officer said he anticipates growth for the luxury auto maker in Britain and Europe and in Far Eastern markets


( S ( NP-SBJ ( NNP Metromedia ) ( NNP Co. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-58 ( PRP$ its ) ( NNP Metromedia ) ( NNP Long ) ( NNP Distance ) ( NN unit ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN renamed ) ( S ( NP-PRD ( NNP Metromedia-ITT ) ( NNP Long ) ( NNP Distance ) ) ) ( S-ADV ( VP ( VBG reflecting ) ( NP ( NP ( NNS acquisitions ) ) ( PP ( IN from ) ( NP ( NP ( NNP ITT ) ( NNP Corp. ) ) ( SBAR ( WHNP-82 ( WDT which ) ) ( S ( VP ( VBZ licenses ) ( NP ( PRP$ its ) ( NN name ) ) ( PP-CLR ( TO to ) ( NP ( ADJP ( RB closely ) ( JJ held ) ) ( NNP Metromedia ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Metromedia Co. said its Metromedia Long Distance unit has been renamed Metromedia-ITT Long Distance reflecting acquisitions from ITT Corp. which licenses its name to closely held Metromedia


( S ( NP-SBJ ( NNP Metromedia ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP$ its ) ( NN unit ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( JJ fifth-largest ) ( NN provider ) ) ( PP ( IN of ) ( NP ( NN long-distance ) ( NNS communications ) ( NN service ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ( PP ( IN with ) ( NP ( NP ( VBN projected ) ( CD 1989 ) ( NN revenue ) ) ( PP ( IN of ) ( NP ( QP ( JJR more ) ( IN than ) ( CD 550 ) ( CD million ) ) ) ) ) ) ) ) ) ) )

Metromedia said its unit is the fifth-largest provider of long-distance communications service in the U.S. with projected 1989 revenue of more than 550 million


( S ( NP-SBJ ( NP ( NNP Metromedia ) ) ( VP ( VBN headed ) ( PP ( IN by ) ( NP-LGS ( NNP John ) ( NNP W. ) ( NNP Kluge ) ) ) ) ) ( VP ( VBZ has ) ( NP ( NP ( NNS interests ) ) ( PP ( IN in ) ( NP ( NP ( NN telecommunications ) ) ( NP ( JJ robotic ) ( NN painting ) ) ( NP ( NN computer ) ( NN software ) ) ( NP ( NNS restaurants ) ) ( CC and ) ( NP ( NN entertainment ) ) ) ) ) ) )

Metromedia headed by John W. Kluge has interests in telecommunications robotic painting computer software restaurants and entertainment


( S ( NP-SBJ ( NNP Japan ) ) ( VP ( VBZ has ) ( VP ( VBN found ) ( NP ( NP ( NP ( DT another ) ( JJ safe ) ( NN outlet ) ) ( PP ( IN for ) ( NP ( PRP$ its ) ( NN money ) ) ) ) ( NP ( NNP U.S. ) ( NN home ) ( NNS mortgages ) ) ) ) ) )

Japan has found another safe outlet for its money U.S. home mortgages


( S ( NP-SBJ ( NP ( DT An ) ( VBG increasing ) ( NN number ) ) ( PP ( IN of ) ( NP ( JJ big ) ( JJ Japanese ) ( NNS investors ) ) ) ) ( VP ( VBP are ) ( VP ( VBG buying ) ( PRT ( RP up ) ) ( NP ( NP ( NNP U.S. ) ( NN home ) ( NNS mortgages ) ) ( SBAR ( WHNP-175 ( WDT that ) ) ( S ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VP ( VBN pooled ) ) ( CC and ) ( VP ( VBN packaged ) ( PP-CLR ( IN for ) ( NP ( NP ( NN sale ) ) ( PP ( IN as ) ( NP ( NP ( JJ interest-bearing ) ( NNS instruments ) ) ( VP ( VBN known ) ( PP-CLR ( IN as ) ( NP ( JJ mortgage-backed ) ( NNS securities ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

An increasing number of big Japanese investors are buying up U.S. home mortgages that have been pooled and packaged for sale as interest-bearing instruments known as mortgage-backed securities


( S ( NP-SBJ ( NP ( QP ( RB As ) ( JJ much ) ( IN as ) ( CD 10 ) ( NN % ) ) ) ( PP ( IN of ) ( NP ( NP ( JJ new ) ( NNP U.S. ) ( NN mortgage ) ( NNS securities ) ) ( VP ( VBN issued ) ( PP ( IN by ) ( NP-LGS ( NP ( NP ( DT the ) ( NNP Federal ) ( NNP National ) ( NNP Mortgage ) ( NNP Association ) ) ( CC or ) ( NP ( NNP Fannie ) ( NNP Mae ) ) ) ( CC and ) ( NP ( NP ( NNP Federal ) ( NNP Home ) ( NNP Loan ) ( NNP Mortgage ) ( NNP Corp. ) ) ( CC or ) ( NP ( NNP Freddie ) ( NNP Mac ) ) ) ) ) ) ) ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBP flow ) ( PP-DIR ( IN into ) ( NP ( JJ Japanese ) ( NNS hands ) ) ) ) )

As much as 10 % of new U.S. mortgage securities issued by the Federal National Mortgage Association or Fannie Mae and Federal Home Loan Mortgage Corp. or Freddie Mac now flow into Japanese hands


( S ( NP-SBJ ( DT That ) ) ( VP ( MD may ) ( RB not ) ( VP ( VB come ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( NN surprise ) ) ( PP ( TO to ) ( NP ( NP ( NNPS Americans ) ) ( SBAR ( WHNP-176 ( WP who ) ) ( S ( VP ( VBP have ) ( VP ( VBN watched ) ( S ( NP-SBJ ( DT the ) ( NNPS Japanese ) ) ( VP ( VBP snap ) ( PRT ( RP up ) ) ( NP ( NP ( NNS properties ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ( PP ( PP ( IN from ) ( NP ( NN golf ) ( NNS courses ) ) ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN stake ) ) ( PP ( IN in ) ( NP ( NNP Rockefeller ) ( NNP Center ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

That may not come as a surprise to Americans who have watched the Japanese snap up properties in the U.S. from golf courses to a stake in Rockefeller Center


( S ( CC But ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ marks ) ( NP ( NP ( DT a ) ( JJ big ) ( NN change ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NNPS Japanese ) ) ( SBAR ( WHNP-177 ( WP who ) ) ( S ( VP ( VBD shunned ) ( NP ( NN mortgage ) ( NNS securities ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG getting ) ( VP ( VBN burned ) ( PP ( IN by ) ( NP-LGS ( NP ( DT a ) ( JJ big ) ( NN downturn ) ) ( PP-LOC ( IN in ) ( NP ( NN interest ) ( NNS rates ) ) ) ) ) ( ADVP-TMP ( NP ( DT a ) ( JJ few ) ( NNS years ) ) ( RB back ) ) ) ) ) ) ) ) ) ) ) ) ) )

But it marks a big change for the Japanese who shunned mortgage securities after getting burned by a big downturn in interest rates a few years back


( SINV ( S-TPC-1 ( S ( NP-SBJ ( PRP You ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB say ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT a ) ( NN tsunami ) ) ( PRN ( NP ( JJ tidal ) ( NN wave ) ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP 're ) ( VP ( VBG making ) ( NP ( DT some ) ( NN headway ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NP ( NNP Fannie ) ( NNP Mae ) ( POS 's ) ) ( NN chairman ) ) ( NP ( NNP David ) ( NNP O. ) ( NNP Maxwell ) ) ( SBAR ( WHNP-178 ( WP who ) ) ( S ( VP ( VBZ visits ) ( NP ( NNP Tokyo ) ) ( ADVP-TMP ( ADVP ( IN at ) ( JJS least ) ( RB once ) ) ( NP-ADV ( DT a ) ( NN year ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VP ( VB explain ) ) ( CC and ) ( VP ( VB drum ) ( PRT ( RP up ) ) ( NP ( NP ( NN investor ) ( NN interest ) ) ( PP ( IN in ) ) ) ) ( NP-4 ( NN mortgage ) ( NNS securities ) ) ) ) ) ) ) ) ) )

You ca n't say it 's a tsunami tidal wave but we 're making some headway says Fannie Mae 's chairman David O. Maxwell who visits Tokyo at least once a year to explain and drum up investor interest in mortgage securities


( S ( NP-SBJ ( NN Interest ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( NP-ADV ( DT a ) ( JJ great ) ( NN deal ) ) ( JJR higher ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RB ago ) ) ) ) ) ) ) )

Interest is a great deal higher than it was a year ago


( S ( NP-SBJ ( NP ( DT The ) ( JJ steady ) ( NN growth ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN mortgage ) ( NNS securities ) ( NN market ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ( VP ( VBZ has ) ( ADVP ( RB even ) ) ( VP ( VBN triggered ) ( NP ( NP ( NN talk ) ) ( PP ( IN of ) ( S-NOM ( VP ( NN building ) ( PRT ( RP up ) ) ( NP ( DT a ) ( JJ similar ) ( NN market ) ) ( NP-LOC ( RB here ) ) ) ) ) ) ) ) )

The steady growth of the mortgage securities market in the U.S. has even triggered talk of building up a similar market here


( S ( NP-SBJ ( NP ( NN Evidence ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( VBG growing ) ( JJ Japanese ) ( NN demand ) ) ( PP ( IN for ) ( NP ( NN mortgage ) ( NNS securities ) ) ) ) ) ) ( VP ( VBZ abounds ) ) )

Evidence of the growing Japanese demand for mortgage securities abounds


( S ( NP-TMP ( RBR Earlier ) ( DT this ) ( NN year ) ) ( NP-SBJ ( NP ( NNP Blackstone ) ( NNP Group ) ) ( NP ( DT a ) ( NNP New ) ( NNP York ) ( NN investment ) ( NN bank ) ) ) ( VP ( VBD had ) ( NP ( NP ( DT no ) ( NN trouble ) ) ( S-NOM ( VP ( VBG selling ) ( PRT ( RP out ) ) ( NP ( NP ( DT a ) ( JJ special ) ( ADJP ( QP ( CD 570 ) ( CD million ) ) ) ( JJ mortgage-securities ) ( NN trust ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD created ) ( PP ( IN for ) ( NP ( JJ Japanese ) ( NNS investors ) ) ) ) ) ) ) ) ) ) ) )

Earlier this year Blackstone Group a New York investment bank had no trouble selling out a special 570 million mortgage-securities trust it created for Japanese investors


( S ( NP-SBJ ( NP ( NNP Industrial ) ( NNP Bank ) ) ( PP ( IN of ) ( NP ( NNP Japan ) ) ) ( SBAR ( WHNP-179 ( WDT which ) ) ( S ( VP ( VBZ claims ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( NP ( DT the ) ( JJS biggest ) ( JJ Japanese ) ( NN buyer ) ) ( PP ( IN of ) ( NP ( NNP U.S. ) ( NN mortgage ) ( NNS securities ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( ADVP ( RBR more ) ( IN than ) ) ( VP ( VB double ) ( NP ( PRP$ its ) ( NNS purchases ) ) ( NP-TMP ( DT this ) ( NN year ) ) ( PP-DIR ( TO to ) ( NP ( NP ( DT an ) ( NN amount ) ) ( SBAR ( S ( NP-SBJ ( CD one ) ( NN official ) ) ( VP ( VBZ puts ) ( PP-PUT ( IN at ) ( NP ( QP ( JJ several ) ( CD billion ) ) ( NNS dollars ) ) ) ) ) ) ) ) ) ) ) ) ) )

Industrial Bank of Japan which claims to be the biggest Japanese buyer of U.S. mortgage securities says it will more than double its purchases this year to an amount one official puts at several billion dollars


( S ( CC And ) ( NP-SBJ-2 ( DT a ) ( NNP Fannie ) ( NNP Mae ) ( NN seminar ) ) ( NP-TMP ( DT this ) ( NN week ) ) ( VP ( VBZ promises ) ( S ( VP ( TO to ) ( VP ( VB draw ) ( NP ( NP ( NNS hundreds ) ) ( PP ( IN of ) ( NP ( JJ prospective ) ( NNS investors ) ) ) ( SBAR ( WHNP-180 ( WP who ) ) ( S ( VP ( MD can ) ( VP ( VB be ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB channel ) ( NP ( NP ( NNS tens ) ) ( PP ( IN of ) ( NP ( NNS billions ) ) ) ( PP ( IN of ) ( NP ( NNS dollars ) ) ) ) ( PP-DIR ( IN into ) ( NP ( DT the ) ( NN market ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ next ) ( JJ few ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

And a Fannie Mae seminar this week promises to draw hundreds of prospective investors who can be expected to channel tens of billions of dollars into the market in the next few years


( SINV ( S-TPC-1 ( NP-TMP ( JJ Last ) ( NN year ) ) ( NP-SBJ ( EX there ) ) ( VP ( VBD were ) ( NP-PRD ( NP ( RB only ) ( JJ several ) ( JJ big ) ( NNS investors ) ) ( SBAR ( WHNP-181 ( WP who ) ) ( S ( VP ( VBD were ) ( ADJP-PRD ( JJ interested ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Kinji ) ( NNP Kato ) ) ( NP ( NP ( DT a ) ( NN vice ) ( NN president ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT the ) ( JJ international ) ( NN arm ) ) ( PP ( IN of ) ( NP ( NNP Nomura ) ( NNPS Securities ) ( NNP Co ) ) ) ) ) ) ) )

Last year there were only several big investors who were interested says Kinji Kato a vice president at the international arm of Nomura Securities Co


( S ( NP-TMP ( DT This ) ( NN year ) ) ( NP-SBJ ( DT some ) ( NNS investors ) ) ( VP ( VBP are ) ( VP ( VP ( VBG changing ) ( NP ( PRP$ their ) ( NNS policies ) ) ) ( CC and ) ( VP ( VBG investing ) ( NP ( DT a ) ( NN lot ) ) ) ) ) )

This year some investors are changing their policies and investing a lot


( S-1 ( ADVP-TMP ( RB Ultimately ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) ) ) ( NP-SBJ-2 ( JJ strong ) ( NN demand ) ) ( VP ( MD could ) ( VP ( VB help ) ( S ( VP ( TO to ) ( VP ( VB drive ) ( ADVP-DIR ( RP down ) ) ( NP ( NP ( NN interest ) ( NNS rates ) ) ( PP ( IN on ) ( NP ( NN mortgage ) ( NNS securities ) ) ) ) ) ) ) ) ) )

Ultimately he says strong demand could help to drive down interest rates on mortgage securities


( S ( PP-TMP ( IN At ) ( NP ( DT the ) ( NN moment ) ) ) ( NP-SBJ ( NNP Nomura ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( JJ only ) ( JJ Japanese ) ( NN institution ) ) ( VP ( VBN authorized ) ( S ( VP ( TO to ) ( VP ( VB act ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( JJ primary ) ( NN seller ) ) ( PP ( IN of ) ( NP ( NNP Fannie ) ( NNP Mae ) ( NNS instruments ) ) ) ) ) ) ) ) ) ) ) )

At the moment Nomura is the only Japanese institution authorized to act as a primary seller of Fannie Mae instruments


( S ( CC But ) ( NP-SBJ ( JJ other ) ( JJ Japanese ) ( NNS institutions ) ) ( VP ( VBP say ) ( ADVP ( RB privately ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP are ) ( VP ( VBG considering ) ( S ( VP ( VBG asking ) ( S ( VP ( TO to ) ( VP ( VB join ) ( NP ( DT the ) ( JJ 59-dealer ) ( VBG selling ) ( NN group ) ) ) ) ) ) ) ) ) ) ) ) )

But other Japanese institutions say privately that they are considering asking to join the 59-dealer selling group


( S ( NP-SBJ ( DT These ) ( NNS securities ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ attractive ) ( PP ( TO to ) ( NP ( JJ Japanese ) ( NNS investors ) ) ) ) ( PP-PRP ( IN for ) ( NP ( CD three ) ( NNS reasons ) ) ) ) )

These securities are attractive to Japanese investors for three reasons


( S ( ADVP ( LS First ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ safe ) ) ) )

First they are safe


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP are ) ( RB n't ) ( VP ( VBN backed ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( JJ full ) ( NN faith ) ( CC and ) ( NN credit ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP U.S. ) ( NN government ) ) ) ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( NNP Treasury ) ( NNS bonds ) ) ( VP ( VBP are ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ is ) ( ADVP ( RB widely ) ) ( VP ( VBN assumed ) ( SBAR-2 ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( MD would ) ( VP ( VB support ) ( NP ( PRP them ) ) ( SBAR-ADV ( IN if ) ( FRAG ( ADJP-PRD ( JJ necessary ) ) ) ) ) ) ) ) ) ) )

While they are n't backed by the full faith and credit of the U.S. government as Treasury bonds are it is widely assumed that the government would support them if necessary


( S ( NP-SBJ ( NNP U.S. ) ( NNP Treasury ) ( NNS bonds ) ) ( VP ( VBP are ) ( ADVP ( RB still ) ) ( NP-PRD ( NP ( DT the ) ( JJ dollar-denominated ) ( NN investment ) ) ( PP ( IN of ) ( NP ( NN choice ) ) ) ( PP ( IN for ) ( NP ( JJ long-term ) ( JJ Japanese ) ( NNS investors ) ) ) ) ) )

U.S. Treasury bonds are still the dollar-denominated investment of choice for long-term Japanese investors


( S ( ADVP ( LS Second ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ liquid ) ) ) )

Second they are liquid


( S ( NP-SBJ ( NP ( DT The ) ( JJ secondary ) ( NN market ) ) ( PP-LOC ( IN in ) ( NP ( RB federally ) ( JJ backed ) ( NN mortgage ) ( NNS securities ) ) ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBZ exceeds ) ( NP ( NP ( QP ( CD 900 ) ( CD billion ) ) ) ( CC or ) ( NP ( NP ( QP ( RB nearly ) ( NN half ) ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( QP ( CD 2.2 ) ( CD trillion ) ) ) ( PP ( IN in ) ( NP ( NP ( NNP U.S. ) ( JJ residential ) ( NNS mortgages ) ) ( VP ( VBN issued ) ) ) ) ) ) ) ) ) )

The secondary market in federally backed mortgage securities now exceeds 900 billion or nearly half of the 2.2 trillion in U.S. residential mortgages issued


( S ( ADVP ( LS Third ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP offer ) ( NP ( JJ high ) ( NNS yields ) ) ) )

Third they offer high yields


( S ( PP-TMP ( IN At ) ( NP ( DT the ) ( NN moment ) ) ) ( NP-SBJ ( DT some ) ) ( VP ( VBP offer ) ( NP ( NP ( RB as ) ( JJ much ) ) ( PP ( IN as ) ( NP ( QP ( CD 1.6 ) ( TO to ) ( CD 1.8 ) ) ( NN percentage ) ( NNS points ) ) ) ( PP ( IN over ) ( NP ( NP ( NNP Treasury ) ( NNS securities ) ) ( PP ( IN of ) ( NP ( JJ similar ) ( NNS maturities ) ) ) ) ) ) ) )

At the moment some offer as much as 1.6 to 1.8 percentage points over Treasury securities of similar maturities


( S ( CC But ) ( NP-SBJ ( EX there ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN risk ) ) ( SBAR ( WHNP-182 ( WDT which ) ) ( S ( NP-SBJ ( DT the ) ( NNPS Japanese ) ) ( VP ( VBD discovered ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( PRP they ) ) ( ADVP-TMP ( RB first ) ) ( VP ( VBD dipped ) ( NP ( PRP$ their ) ( NNS toes ) ) ( PP-DIR ( IN into ) ( NP ( DT the ) ( NN market ) ) ) ( ADVP-TMP ( NP ( QP ( RB nearly ) ( CD five ) ) ( NNS years ) ) ( RB ago ) ) ) ) ) ) ) ) ) ) )

But there is a risk which the Japanese discovered when they first dipped their toes into the market nearly five years ago


( S ( SBAR-PRP ( IN Since ) ( S ( NP-SBJ-1 ( JJS most ) ( NNS mortgages ) ) ( VP ( MD can ) ( VP ( VB be ) ( VP ( VBN prepaid ) ( CC or ) ( VBN refinanced ) ( PP-TMP ( IN at ) ( NP ( DT any ) ( NN time ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NNS issuers ) ) ( PP ( IN of ) ( NP ( NN mortgage ) ( NNS securities ) ) ) ) ( VP ( VBP retain ) ( NP ( DT the ) ( NN right ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( ADVP-CLR ( RB back ) ) ( NP ( PRP$ their ) ( NNS bonds ) ) ( PP-TMP ( IN before ) ( NP ( NN maturity ) ) ) ) ) ) ) ) )

Since most mortgages can be prepaid or refinanced at any time issuers of mortgage securities retain the right to buy back their bonds before maturity


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT a ) ( NN headache ) ) ( PP ( IN for ) ( NP ( JJ long-term ) ( NNS investors ) ) ) ) ( SBAR-PRP ( IN since ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ forces ) ( S ( NP-SBJ ( PRP them ) ) ( VP ( TO to ) ( VP ( VB reinvest ) ( NP ( PRP$ their ) ( NN money ) ) ( PP-CLR ( ADVP-TMP ( RB usually ) ) ( IN at ) ( NP ( NP ( JJR lower ) ( NNS rates ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( DT the ) ( JJ original ) ( NN mortgage ) ( NNS securities ) ) ( VP ( VBD carried ) ) ) ) ) ) ) ) ) ) ) ) ) )

That 's a headache for long-term investors since it forces them to reinvest their money usually at lower rates than the original mortgage securities carried


( SINV ( S-TPC-1 ( ADVP-TMP ( NP ( QP ( CD Two ) ( CC or ) ( CD three ) ) ( NNS years ) ) ( RB ago ) ) ( NP-SBJ ( DT the ) ( NN problem ) ) ( VP ( VBD was ) ( SBAR-PRD ( IN that ) ( S ( NP-SBJ ( NNS people ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB understand ) ( NP ( DT the ) ( NN prepayment ) ( NN risk ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NN Nomura ) ( POS 's ) ) ( NNP Mr. ) ( NNP Kato ) ) )

Two or three years ago the problem was that people did n't understand the prepayment risk says Nomura 's Mr. Kato


( S ( ADVP ( RB So ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBD were ) ( ADJP-PRD ( ADJP ( JJ surprised ) ) ( CC and ) ( ADJP ( RB very ) ( JJ disappointed ) ) ( PP ( IN by ) ( NP ( NN prepayment ) ) ) ) ) )

So they were surprised and very disappointed by prepayment


( S ( S-ADV ( VP ( VBG Compounding ) ( NP ( NP ( DT the ) ( NN trouble ) ) ( PP ( TO to ) ( NP ( JJ Japanese ) ( NNS investors ) ) ) ) ) ) ( NP-SBJ ( NN mortgage ) ( NNS securities ) ) ( VP ( VBP pay ) ( NP ( NN interest ) ) ( ADVP-TMP ( RB monthly ) ) ( SBAR-PRP ( IN since ) ( S ( NP-SBJ ( JJS most ) ( NNS mortgages ) ) ( VP ( VBP require ) ( S ( NP-SBJ ( NNS homeowners ) ) ( VP ( TO to ) ( VP ( VB make ) ( NP ( JJ monthly ) ( NNS payments ) ) ) ) ) ) ) ) ) )

Compounding the trouble to Japanese investors mortgage securities pay interest monthly since most mortgages require homeowners to make monthly payments


( S ( CC But ) ( S ( NP-SBJ-167 ( JJ Japanese ) ( JJ institutional ) ( NNS investors ) ) ( VP ( VBP are ) ( VP ( VBN used ) ( PP-CLR ( TO to ) ( NP ( NP ( ADJP ( JJ quarterly ) ( CC or ) ( JJ semiannual ) ) ( NNS payments ) ) ( PP ( IN on ) ( NP ( PRP$ their ) ( NNS investments ) ) ) ) ) ) ) ) ( IN so ) ( S ( NP-SBJ ( DT the ) ( JJ monthly ) ( NN cash ) ( NN flow ) ) ( VP ( VBD posed ) ( NP ( JJ administrative ) ( NNS problems ) ) ) ) )

But Japanese institutional investors are used to quarterly or semiannual payments on their investments so the monthly cash flow posed administrative problems


( S ( PP ( IN As ) ( NP ( DT a ) ( NN result ) ) ) ( NP-SBJ ( JJ Japanese ) ( NNS investors ) ) ( VP ( VBD steered ) ( ADVP-CLR ( RB clear ) ( PP ( IN of ) ( NP ( DT the ) ( NN mortgage ) ( NNS securities ) ) ) ) ) )

As a result Japanese investors steered clear of the mortgage securities


( S ( CC But ) ( NP-SBJ ( PRP they ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB lose ) ( NP ( NN touch ) ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NNP U.S. ) ( NNS issuers ) ) ) ) ) )

But they did n't lose touch with the U.S. issuers


( S ( PP-TMP ( IN Since ) ( NP ( CD 1985 ) ) ) ( NP-SBJ ( JJ Japanese ) ( NNS investors ) ) ( VP ( VBP have ) ( VP ( VBN bought ) ( NP ( NP ( NP ( QP ( RB nearly ) ( CD 80 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( QP ( CD 10 ) ( CD billion ) ) ) ) ( PP ( IN in ) ( NP ( NP ( NNP Fannie ) ( NNP Mae ) ( JJ corporate ) ( NN debt ) ) ( VP ( VBN issued ) ( PP-CLR ( TO to ) ( NP ( NNS foreigners ) ) ) ) ) ) ) ( NP ( NP ( NN money ) ) ( SBAR ( WHNP-183 ( IN that ) ) ( S ( NP-SBJ-1 ( NNP Fannie ) ( NNP Mae ) ) ( VP ( VBZ uses ) ( S-CLR ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NNS mortgages ) ) ( PP-CLR ( IN from ) ( NP ( NNP U.S. ) ( NNS banks ) ) ) ) ) ) ) ) ) ) ) ) ) )

Since 1985 Japanese investors have bought nearly 80 % of 10 billion in Fannie Mae corporate debt issued to foreigners money that Fannie Mae uses to buy mortgages from U.S. banks


( S ( CC And ) ( NP-SBJ ( JJ Japanese ) ( NNS investors ) ) ( VP ( VBD took ) ( PRT ( RP up ) ) ( NP ( NP ( RB nearly ) ( DT all ) ) ( PP ( IN of ) ( NP ( NP ( CD two ) ( ADJP ( QP ( CD 200 ) ( CD million ) ) ) ( JJ Real ) ( NNP Estate ) ( NNP Mortgage ) ( NNP Investment ) ( NNS Conduits ) ) ( NP ( NP ( DT a ) ( NN kind ) ) ( PP ( IN of ) ( NP ( JJ collateralized ) ( NN mortgage ) ( NN obligation ) ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD were ) ( VP ( VBN offered ) ( PP-DTV ( TO to ) ( NP ( NNS foreigners ) ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) ) ) ) ) ) ) )

And Japanese investors took up nearly all of two 200 million Real Estate Mortgage Investment Conduits a kind of collateralized mortgage obligation that were offered to foreigners this year


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ ( NP ( JJ further ) ( NN packaging ) ) ( PP ( IN of ) ( NP ( NP ( JJ mortgage-backed ) ( NNS securities ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( VBP Blackstone ) ( POS 's ) ) ( NN fund ) ) ) ) ) ) ( VP ( VP ( VB have ) ( VP ( VBN reduced ) ( NP ( NP ( DT the ) ( NNS effects ) ) ( PP ( IN of ) ( NP ( NN prepayment ) ( NN risk ) ) ) ) ) ) ( CC and ) ( VP ( ADVP-MNR ( RB automatically ) ) ( VB reinvest ) ( NP ( JJ monthly ) ( NNS payments ) ) ( SBAR-PRP ( IN so ) ( S ( NP-SBJ-1 ( NNS institutions ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB have ) ( S ( VP ( TO to ) ) ) ) ) ) ) ) ) )

In addition further packaging of mortgage-backed securities such as Blackstone 's fund have reduced the effects of prepayment risk and automatically reinvest monthly payments so institutions do n't have to


( S ( NP-SBJ ( NNP Freddie ) ( NNP Mac ) ) ( PP-TMP ( IN for ) ( NP ( NNS years ) ) ) ( VP ( VBZ has ) ( VP ( VBN offered ) ( NP ( NP ( DT a ) ( JJ so-called ) ( NN participation ) ( NN certificate ) ) ( SBAR ( WHNP-184 ( WDT that ) ) ( S ( VP ( VP ( VBZ guarantees ) ( SBAR ( S ( NP-SBJ-169 ( PRP it ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB be ) ( VP ( VBN prepaid ) ( PP-TMP ( IN for ) ( NP ( NP ( DT a ) ( NN set ) ( NN number ) ) ( PP ( IN of ) ( NP ( NNS years ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBZ offers ) ( NP ( JJ semiannual ) ( NNS payments ) ) ) ) ) ) ) ) ) )

Freddie Mac for years has offered a so-called participation certificate that guarantees it wo n't be prepaid for a set number of years and offers semiannual payments


( S ( PP-LOC ( IN In ) ( NP ( DT a ) ( NN surprise ) ( NN move ) ) ) ( NP-SBJ-1 ( DT the ) ( JJ British ) ( NN government ) ) ( VP ( VBD cleared ) ( NP ( DT the ) ( NN way ) ) ( PP-PRP ( IN for ) ( NP ( NP ( DT a ) ( JJ bidding ) ( NN war ) ) ( PP ( IN for ) ( NP ( NNP Jaguar ) ( NNP PLC ) ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG agreeing ) ( S ( VP ( TO to ) ( VP ( VB remove ) ( NP ( NP ( DT an ) ( NN obstacle ) ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN takeover ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN auto ) ( NN maker ) ) ) ) ) ) ) ) ) ) ) ) ) )

In a surprise move the British government cleared the way for a bidding war for Jaguar PLC by agreeing to remove an obstacle to a takeover of the auto maker


( S ( NP-SBJ ( NNP Trade ) ( CC and ) ( NNP Industry ) ( NNP Secretary ) ( NNP Nicholas ) ( NNP Ridley ) ) ( VP ( VBD told ) ( NP ( NP ( DT the ) ( NNP House ) ) ( PP ( IN of ) ( NP ( NNPS Commons ) ) ) ) ( NP-TMP ( NN yesterday ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( MD will ) ( VP ( VB relinquish ) ( NP ( NP ( NP ( DT the ) ( NN government ) ( POS 's ) ) ( JJ so-called ) ( JJ golden ) ( NN share ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN company ) ) ) ) ( ADVP ( ADVP ( RB as ) ( RB long ) ) ( SBAR ( IN as ) ( S ( NP-SBJ ( NNP Jaguar ) ( NNS shareholders ) ) ( VP ( VBP agree ) ) ) ) ) ) ) ) ) ) )

Trade and Industry Secretary Nicholas Ridley told the House of Commons yesterday that he will relinquish the government 's so-called golden share in the company as long as Jaguar shareholders agree


( S ( NP-SBJ ( DT The ) ( JJ golden ) ( NN share ) ) ( VP ( VP ( VBZ restricts ) ( NP ( DT any ) ( JJ individual ) ( NN holding ) ) ( PP-CLR ( TO to ) ( NP-ADV ( CD 15 ) ( NN % ) ) ) ) ( CC and ) ( VP ( VBZ expires ) ( PP-TMP-CLR ( IN at ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( CD 1990 ) ) ) ) ) ) ) )

The golden share restricts any individual holding to 15 % and expires at the end of 1990


( S ( S-TPC-1 ( NP-SBJ ( NP ( PRP It ) ) ) ( VP ( VBD was ) ( PP-PRD ( IN in ) ( NP ( NP ( NNP Jaguar ) ( POS 's ) ) ( JJS best ) ( NNS interests ) ) ) ( SBAR-3 ( IN for ) ( S ( S ( NP-SBJ-40 ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN future ) ) ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( VBN assured ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( DT the ) ( JJ present ) ( NN climate ) ) ( PP ( IN of ) ( NP ( NN uncertainty ) ) ) ) ( VP ( VBN resolved ) ( ADVP-TMP ( ADVP ( RB as ) ( RB quickly ) ) ( PP ( IN as ) ( ADJP ( JJ possible ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Ridley ) ) ( VP ( VBD said ) ) )

It was in Jaguar 's best interests for the company 's future to be assured and the present climate of uncertainty resolved as quickly as possible Mr. Ridley said


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Ridley ) ( POS 's ) ) ( NN decision ) ) ( VP ( VBZ fires ) ( NP ( DT the ) ( JJ starting ) ( NN pistol ) ) ( PP-PRP ( IN for ) ( NP ( NP ( RB perhaps ) ( DT a ) ( JJ costly ) ( NN contest ) ) ( PP ( IN between ) ( NP ( NP ( DT the ) ( NN world ) ( POS 's ) ) ( NN auto ) ( NNS giants ) ) ) ( PP ( IN for ) ( NP ( NP ( NNP Britain ) ( POS 's ) ) ( JJ leading ) ( NN luxury-car ) ( NN maker ) ) ) ) ) ) )

Mr. Ridley 's decision fires the starting pistol for perhaps a costly contest between the world 's auto giants for Britain 's leading luxury-car maker


( S ( NP-SBJ-1 ( DT Both ) ( NP ( NNP General ) ( NNPS Motors ) ( NNP Corp. ) ) ( CC and ) ( NP ( NNP Ford ) ( NNP Motor ) ( NNP Co. ) ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG trying ) ( S ( VP ( TO to ) ( VP ( VB amass ) ( NP ( NP ( CD 15 ) ( JJ % ) ( NNS stakes ) ) ( PP-LOC ( IN in ) ( NP ( NNP Jaguar ) ) ) ) ) ) ) ) ) ) )

Both General Motors Corp. and Ford Motor Co. have been trying to amass 15 % stakes in Jaguar


( S ( NP-SBJ ( NP-1 ( NNP Ford ) ) ( SBAR ( WHNP-64 ( WDT which ) ) ( S ( ADVP-TMP ( RB already ) ) ( VP ( VBZ has ) ( NP ( DT an ) ( JJ unwelcome ) ( ADJP ( CD 13.2 ) ( NN % ) ) ( NN holding ) ) ) ) ) ) ( VP ( VP ( VBZ is ) ( ADJP-PRD ( JJ prepared ) ( S ( VP ( TO to ) ( VP ( VB bid ) ( PP-PRP ( IN for ) ( NP ( DT the ) ( JJ entire ) ( NN company ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD had ) ( VP ( VBN lobbied ) ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( TO to ) ( VP ( VB lift ) ( NP ( DT the ) ( NN takeover ) ( NNS restrictions ) ) ( ADVP-TMP ( RB early ) ) ) ) ) ) ) ) )

Ford which already has an unwelcome 13.2 % holding is prepared to bid for the entire company and had lobbied the government to lift the takeover restrictions early


( S ( NP-SBJ ( NNP GM ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBG negotiating ) ( NP ( NP ( DT a ) ( JJ friendly ) ( NN transaction ) ) ( PP ( IN with ) ( NP ( NNP Jaguar ) ) ) ( SBAR ( WHNP-65 ( WDT that ) ) ( S ( ADVP ( RB likely ) ) ( VP ( MD would ) ( VP ( VB involve ) ( NP ( NP ( JJ joint ) ( NNS ventures ) ) ( CC and ) ( NP ( NP ( DT an ) ( JJ eventual ) ( NN stake ) ) ( PP ( IN of ) ( NP ( QP ( RB just ) ( IN under ) ( CD 30 ) ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ) ) )

GM has been negotiating a friendly transaction with Jaguar that likely would involve joint ventures and an eventual stake of just under 30 %


( S ( CC But ) ( NP-SBJ-3 ( NP ( NP ( DT the ) ( NN government ) ( POS 's ) ) ( NN action ) ) ( SBAR ( WHNP-66 ( WDT which ) ) ( S ( VP ( VBD caught ) ( NP-2 ( NNP Jaguar ) ( NN management ) ) ( S-ADV ( ADJP-PRD ( RB flat-footed ) ) ) ) ) ) ) ( VP ( MD may ) ( VP ( VB scuttle ) ( NP ( DT the ) ( NNP GM ) ( NN minority ) ( NN deal ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG forcing ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( TO to ) ( VP ( VB fight ) ( PP-PRP ( IN for ) ( NP ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( NNP Jaguar ) ) ) ) ) ) ) ) ) ) ) ) ) )

But the government 's action which caught Jaguar management flat-footed may scuttle the GM minority deal by forcing it to fight for all of Jaguar


( SINV ( S-TPC-1 ( NP-SBJ ( PRP I ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB believe ) ( SBAR ( S ( NP-SBJ ( PRP they ) ( PRN ( NNP GM ) ) ) ( VP ( MD will ) ( VP ( VB let ) ( S ( NP-SBJ ( NNP Ford ) ) ( VP ( VB have ) ( NP ( DT a ) ( JJ free ) ( NN run ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Stephen ) ( NNP Reitman ) ) ( NP ( NP ( DT a ) ( JJ European ) ( NN auto ) ( NN industry ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNP UBS-Phillips ) ( CC & ) ( NNP Drew ) ) ) ) ) )

I ca n't believe they GM will let Ford have a free run said Stephen Reitman a European auto industry analyst at UBS-Phillips & Drew


( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP am ) ( ADJP-PRD ( JJ sure ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBG going ) ( PP-CLR ( IN for ) ( NP ( DT a ) ( JJ full ) ( NN bid ) ) ) ) ) ) ) ) ) ) )

I am sure they will be going for a full bid


( S ( NP-SBJ ( JJ Many ) ( NNS investors ) ) ( ADVP ( RB certainly ) ) ( VP ( VBP believe ) ( SBAR ( S ( NP-SBJ ( DT a ) ( JJ bidding ) ( NN war ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ imminent ) ) ) ) ) ) )

Many investors certainly believe a bidding war is imminent


( S ( NP-SBJ ( NNP Jaguar ) ( NNS shares ) ) ( VP ( VBD skyrocketed ) ( NP-TMP ( NN yesterday ) ) ( PP-TMP ( IN after ) ( NP ( NP ( NNP Mr. ) ( NNP Ridley ) ( POS 's ) ) ( NN announcement ) ) ) ( PP-TMP ( VBG following ) ( NP ( NP ( PRP$ their ) ( JJ temporary ) ( NN suspension ) ) ( PP-LOC ( IN on ) ( NP ( NP ( NNP London ) ( POS 's ) ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ) ) )

Jaguar shares skyrocketed yesterday after Mr. Ridley 's announcement following their temporary suspension on London 's Stock Exchange


( S ( PP-TMP ( IN In ) ( NP ( JJ late ) ( NN trading ) ) ) ( NP-SBJ ( DT the ) ( NNS shares ) ) ( VP ( VBD were ) ( ADVP-PRD ( RB up ) ( NP ( NP ( DT a ) ( JJ whopping ) ( CD 122 ) ( NN pence ) ) ( PRN ( NP ( CD 1.93 ) ) ) ( PRN ( NP ( DT a ) ( ADJP ( CD 16.3 ) ( NN % ) ) ( NN gain ) ) ) ) ) ( PP-DIR ( TO to ) ( NP ( DT a ) ( NN record ) ( CD 869 ) ( NN pence ) ) ) ( PP ( IN on ) ( NP ( NP ( ADJP ( RB very ) ( JJ heavy ) ) ( NN volume ) ) ( PP ( IN of ) ( NP ( QP ( CD 9.7 ) ( CD million ) ) ( NNS shares ) ) ) ) ) ) )

In late trading the shares were up a whopping 122 pence 1.93 a 16.3 % gain to a record 869 pence on very heavy volume of 9.7 million shares


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( NNP U.S. ) ( JJ over-the-counter ) ( NN market ) ) ) ( NP-SBJ ( NP ( NNP Jaguar ) ( NNS shares ) ) ( VP ( VBG trading ) ( PP-CLR ( IN as ) ( NP ( NNP American ) ( NNP Depositary ) ( NNPS Receipts ) ) ) ) ) ( VP ( VBD closed ) ( PP-CLR ( IN at ) ( NP ( CD 13.625 ) ) ) ( ADVP ( RB up ) ( NP ( CD 1.75 ) ) ) ) )

In the U.S. over-the-counter market Jaguar shares trading as American Depositary Receipts closed at 13.625 up 1.75


( S ( NP-SBJ ( NNS Analysts ) ) ( VP ( VBP expect ) ( SBAR ( S ( NP-SBJ ( NNP Ford ) ) ( VP ( MD will ) ( VP ( VB make ) ( NP ( DT the ) ( JJ first ) ( NN move ) ) ( NP-TMP ( ADVP ( RB perhaps ) ) ( NN today ) ) ( PP ( IN with ) ( NP ( NP ( DT an ) ( JJ initial ) ( NN offer ) ) ( PP ( IN of ) ( NP ( NP ( NP ( QP ( IN about ) ( CD 900 ) ) ( NN pence ) ) ( PRN ( NP ( CD 14.25 ) ) ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) ) ) )

Analysts expect Ford will make the first move perhaps today with an initial offer of about 900 pence 14.25 a share


( S ( NP-SBJ ( JJ Such ) ( DT a ) ( NN proposal ) ) ( VP ( VBZ values ) ( NP ( NNP Jaguar ) ) ( PP-CLR ( IN at ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 1.6 ) ( CD billion ) ) ) ( PRN ( NP ( QP ( CD 2.53 ) ( CD billion ) ) ) ) ) ) ) )

Such a proposal values Jaguar at more than 1.6 billion 2.53 billion


( S ( NP-SBJ ( NP ( NN Speculation ) ) ( PP ( IN about ) ( NP ( DT a ) ( NN takeover ) ( NN fight ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN sent ) ( S ( NP-SBJ ( NNP Jaguar ) ( NNS shares ) ) ( VP ( VBG soaring ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ past ) ( CD six ) ( NNS weeks ) ) ) ) ) )

Speculation about a takeover fight has sent Jaguar shares soaring in the past six weeks


( S ( NP-SBJ ( DT The ) ( NN share ) ( NN price ) ) ( VP ( VBD was ) ( VP ( VBG languishing ) ( PP-LOC-CLR ( IN at ) ( NP ( QP ( IN about ) ( CD 400 ) ) ( NN pence ) ) ) ( PP-TMP ( IN before ) ( NP ( NP ( NP ( NNP Ford ) ( POS 's ) ) ( NNP Sept. ) ( CD 19 ) ( NN announcement ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ its ) ( NN interest ) ) ( PP ( IN in ) ( NP ( DT a ) ( NN minority ) ( NN stake ) ) ) ) ) ) ) ) ) )

The share price was languishing at about 400 pence before Ford 's Sept. 19 announcement of its interest in a minority stake


( SINV ( S-TPC-1 ( NP-SBJ ( NNP Ford ) ) ( VP ( VBZ is ) ( PP-LOC-PRD ( IN in ) ( NP ( DT the ) ( JJ driving ) ( NN seat ) ) ) ( PP-TMP ( IN at ) ( NP ( DT the ) ( NN moment ) ) ) ) ) ( VP ( VBD observed ) ) ( NP-SBJ ( NP ( NNP Bob ) ( NNP Barber ) ) ( NP ( NP ( DT an ) ( NN auto ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNS brokers ) ( NNP James ) ( NNP Capel ) ( CC & ) ( NNP Co ) ) ) ) ) )

Ford is in the driving seat at the moment observed Bob Barber an auto analyst at brokers James Capel & Co


( S ( NP-SBJ ( NP ( DT An ) ( JJ aggressive ) ( NNP Ford ) ( NN bid ) ) ( PP ( IN for ) ( NP ( NNP Jaguar ) ) ) ) ( VP ( MD would ) ( VP ( VB put ) ( NP ( NN pressure ) ) ( PP-PUT ( IN on ) ( NP ( NNP GM ) ) ) ( S-1 ( VP ( TO to ) ( VP ( VB make ) ( NP ( DT a ) ( JJR better ) ( NN offer ) ) ( PP ( IN as ) ( NP ( NP ( DT the ) ( JJ British ) ( NN company ) ( POS 's ) ) ( JJ white ) ( NN knight ) ) ) ) ) ) ) ) )

An aggressive Ford bid for Jaguar would put pressure on GM to make a better offer as the British company 's white knight


( S ( NP-SBJ ( JJ Such ) ( DT a ) ( NN countermove ) ) ( VP ( MD could ) ( VP ( VB end ) ( NP ( NP ( NP ( NNP Jaguar ) ( POS 's ) ) ( NNS hopes ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG remaining ) ( ADJP-PRD ( JJ independent ) ( CC and ) ( JJ British-owned ) ) ) ) ) ) ) ) )

Such a countermove could end Jaguar 's hopes for remaining independent and British-owned


( S ( CC But ) ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ is ) ( RB n't ) ( ADJP-PRD ( JJ clear ) ) ( SBAR-1 ( WHADVP-2 ( WRB how ) ( JJ long ) ) ( S ( NP-SBJ-3 ( NNP GM ) ) ( VP ( MD would ) ( VP ( VB be ) ( ADJP-PRD ( JJ willing ) ( S ( VP ( TO to ) ( VP ( VB fight ) ( NP ( NNP Ford ) ) ( PP-PRP ( IN for ) ( NP ( NNP Jaguar ) ) ) ) ) ) ) ) ) ) ) ) )

But it is n't clear how long GM would be willing to fight Ford for Jaguar


( SINV ( S-TPC-2 ( PP-PRP ( IN Because ) ( IN of ) ( NP ( PRP$ their ) ( JJ longstanding ) ( NN rivalry ) ) ) ( NP-SBJ-1 ( NNP GM ) ) ( ADVP ( RB just ) ) ( VP ( VBZ wants ) ( S ( VP ( TO to ) ( VP ( VB make ) ( S ( ADJP-PRD ( JJ sure ) ) ( SBAR-SBJ ( S ( NP-SBJ ( NNP Ford ) ) ( VP ( VBZ pays ) ( NP ( DT a ) ( JJ huge ) ( NN packet ) ) ( PP-CLR ( IN for ) ( PRN ( NP ( NNP Jaguar ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP John ) ( NNP Lawson ) ) ( NP ( NP ( DT an ) ( NN auto ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP London ) ( POS 's ) ) ( NNP Nomura ) ( NNP Research ) ( NNP Institute ) ) ) ) ) )

Because of their longstanding rivalry GM just wants to make sure Ford pays a huge packet for Jaguar said John Lawson an auto analyst at London 's Nomura Research Institute


( S ( NP-SBJ ( NP ( NNS People ) ) ( ADJP ( RB close ) ( PP ( TO to ) ( NP ( DT the ) ( JJ GM-Jaguar ) ( NNS talks ) ) ) ) ) ( VP ( VBD agreed ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NNP Ford ) ) ( ADVP-TMP ( RB now ) ) ( VP ( MD may ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB shut ) ( PRT ( RP out ) ) ( NP ( NNP General ) ( NNPS Motors ) ) ) ) ) ) ) ) ) ) ) )

People close to the GM-Jaguar talks agreed that Ford now may be able to shut out General Motors


( S ( S-TPC-2 ( S ( NP-SBJ-1 ( PRP It ) ) ( VP ( VBZ 's ) ( CC either ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( NN shootout ) ) ) ) ) ) ) ) ( CC or ) ( S ( NP-SBJ ( EX there ) ) ( ADVP ( RB only ) ) ( VP ( MD may ) ( VP ( VB be ) ( NP-PRD ( CD one ) ( NN player ) ) ( PP-LOC ( IN in ) ( NP ( NN town ) ) ) ) ) ) ) ( NP-SBJ ( CD one ) ( NN person ) ) ( VP ( VBD said ) ) )

It 's either going to be a shootout or there only may be one player in town one person said


( S ( NP-SBJ ( NP ( DT Another ) ( NN person ) ) ( ADJP ( JJ close ) ( PP ( TO to ) ( NP ( DT the ) ( NNS talks ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( PRP It ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB very ) ( JJ hard ) ) ( S-2 ( VP ( TO to ) ( VP ( VB justify ) ( S ( VP ( VBG paying ) ( NP ( DT a ) ( JJ silly ) ( NN price ) ) ( PP-CLR ( IN for ) ( NP ( NNP Jaguar ) ) ) ) ) ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ-1 ( DT an ) ( JJ out-and-out ) ( JJ bidding ) ( NN war ) ) ( VP ( VBD were ) ( S ( VP ( TO to ) ( VP ( VB start ) ( ADVP-TMP ( RB now ) ) ) ) ) ) ) ) ) ) ) ) )

Another person close to the talks said It is very hard to justify paying a silly price for Jaguar if an out-and-out bidding war were to start now


( S ( PP-LOC ( IN In ) ( NP ( DT a ) ( NN statement ) ) ) ( NP-SBJ ( NP ( NNP Jaguar ) ( POS 's ) ) ( NN board ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-2 ( PRP they ) ) ( VP ( VP ( VBD were ) ( RB not ) ( VP ( VBN consulted ) ( PP ( IN about ) ( NP ( DT the ) ( PRN ( NNP Ridley ) ( NN decision ) ) ) ) ( PP-TMP ( IN in ) ( NP ( NN advance ) ) ) ) ) ( CC and ) ( VP ( VBD were ) ( VP ( VBN surprised ) ( PP ( IN at ) ( NP ( NP-1 ( DT the ) ( NN action ) ) ( VP ( VBN taken ) ) ) ) ) ) ) ) ) ) )

In a statement Jaguar 's board said they were not consulted about the Ridley decision in advance and were surprised at the action taken


( S ( NP-SBJ ( DT The ) ( NN statement ) ) ( VP ( VBD emphasized ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( NNS holders ) ) ( VP ( VBG representing ) ( NP ( NP ( CD 75 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS shares ) ) ( VP ( VBG voting ) ( PP-LOC ( IN at ) ( NP ( NP ( DT a ) ( JJ special ) ( NNS shareholders ) ( POS ' ) ) ( NN meeting ) ) ) ) ) ) ) ) ) ( VP ( MD must ) ( VP ( VB agree ) ( S ( VP ( TO to ) ( VP ( VB lift ) ( NP ( DT the ) ( NN takeover ) ( NNS restrictions ) ) ) ) ) ) ) ) ) ) )

The statement emphasized that holders representing 75 % of the shares voting at a special shareholders ' meeting must agree to lift the takeover restrictions


( S ( NP-SBJ ( NP ( NNP Jaguar ) ( NNS officials ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ( VP ( VBD noted ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Ford ) ) ( PP ( IN as ) ( NP ( NP ( NNP Jaguar ) ( POS 's ) ) ( JJS largest ) ( NN shareholder ) ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBZ has ) ( NP ( DT the ) ( NN power ) ( S ( VP ( TO to ) ( VP ( VB call ) ( PP-CLR ( IN for ) ( NP ( JJ such ) ( DT a ) ( NN meeting ) ) ) ) ) ) ) ) ) ) ) )

Jaguar officials in the U.S. noted that Ford as Jaguar 's largest shareholder now has the power to call for such a meeting


( S ( NP-SBJ ( NNP U.S. ) ( NN auto ) ( NNS analysts ) ) ( ADVP ( RB also ) ) ( VP ( VBD noted ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Ford ) ) ( VP ( VBZ is ) ( PP-LOC-PRD ( IN in ) ( NP ( NP ( DT the ) ( JJS best ) ( NN position ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB benefit ) ( PP-CLR ( IN from ) ( NP ( NP ( DT the ) ( JJ large ) ( NN number ) ) ( PP ( IN of ) ( NP ( NP ( NNP Jaguar ) ( NNS shares ) ) ( SBAR ( WHNP-67 ( WDT that ) ) ( S ( VP ( VBP have ) ( VP ( VBN moved ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( JJ past ) ( NN month ) ) ) ( PP-DIR ( IN into ) ( NP ( NP ( DT the ) ( NNS hands ) ) ( PP ( IN of ) ( NP ( NP ( NNS arbitragers ) ) ( VP ( VBG waiting ) ( PP-CLR ( IN for ) ( NP ( DT the ) ( JJS highest ) ( NN takeover ) ( NN bid ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

U.S. auto analysts also noted that Ford is in the best position to benefit from the large number of Jaguar shares that have moved over the past month into the hands of arbitragers waiting for the highest takeover bid


( S-2 ( NP-SBJ-41 ( NP ( NP ( NNP Jaguar ) ( POS 's ) ) ( JJ own ) ( NNS defenses ) ) ( PP ( IN against ) ( NP ( DT a ) ( JJ hostile ) ( NN bid ) ) ) ) ( VP ( VBP are ) ( VP ( VBN weakened ) ( PRN ( S ( NP-SBJ ( NNS analysts ) ) ( VP ( VBP add ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ-42 ( NP ( QP ( JJR fewer ) ( IN than ) ( CD 3 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NNS shares ) ) ) ) ( VP ( VBP are ) ( VP ( VBN owned ) ( PP ( IN by ) ( NP-LGS ( NNS employees ) ( CC and ) ( NN management ) ) ) ) ) ) ) ) ) )

Jaguar 's own defenses against a hostile bid are weakened analysts add because fewer than 3 % of its shares are owned by employees and management


( S ( NP-SBJ-2 ( NP ( NNP Ford ) ( NNS officials ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ( VP ( VBD declined ) ( S ( VP ( TO to ) ( VP ( VB comment ) ( PP-CLR ( PP ( IN on ) ( NP ( NP ( DT the ) ( JJ British ) ( NN government ) ( POS 's ) ) ( NN action ) ) ) ( CC or ) ( PP ( IN on ) ( NP ( DT any ) ( NNS plans ) ( S ( VP ( TO to ) ( VP ( VB call ) ( NP ( DT a ) ( JJ special ) ( NNP Jaguar ) ( NNS shareholders ) ( NN meeting ) ) ) ) ) ) ) ) ) ) ) ) )

Ford officials in the U.S. declined to comment on the British government 's action or on any plans to call a special Jaguar shareholders meeting


( S ( CC But ) ( NP-SBJ ( NNP GM ) ( NNS officials ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-43 ( PRP they ) ) ( ADVP ( RB too ) ) ( VP ( VBD were ) ( VP ( VBN surprised ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NN move ) ) ( SBAR ( WHNP-68 ( WDT which ) ) ( S ( VP ( VBD left ) ( S ( NP-SBJ ( PRP them ) ) ( VP ( TO to ) ( VP ( VP ( VB consider ) ( NP ( DT all ) ( PRP$ our ) ( NNS options ) ) ) ( CC and ) ( VP ( VB explore ) ( NP ( NNS matters ) ) ( ADVP ( RBR further ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But GM officials said they too were surprised by the move which left them to consider all our options and explore matters further


( S ( SBAR-ADV ( IN Although ) ( S ( NP-SBJ-1 ( NNP GM ) ) ( VP ( VBZ has ) ( NP ( NNP U.S. ) ( NN approval ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NP ( QP ( IN up ) ( TO to ) ( CD 15 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNP Jaguar ) ( POS 's ) ) ( NN stock ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( RB n't ) ( ADVP-TMP ( RB yet ) ) ( VP ( VBN disclosed ) ( SBAR ( WHNP-3 ( WHADVP ( WRB how ) ( JJ many ) ) ( NNS shares ) ) ( S ( NP-SBJ ( PRP it ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBZ owns ) ) ) ) ) ) )

Although GM has U.S. approval to buy up to 15 % of Jaguar 's stock it has n't yet disclosed how many shares it now owns


( S ( PP-LOC ( IN In ) ( NP ( DT a ) ( JJ prepared ) ( NN statement ) ) ) ( NP-SBJ ( NNP GM ) ) ( VP ( VBD suggested ) ( SBAR ( S ( NP-SBJ ( NP ( PRP$ its ) ( NNS plans ) ) ( PP ( IN for ) ( NP ( NNP Jaguar ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( ADJP-PRD ( ADJP ( RBR more ) ( JJ valuable ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ long ) ( NN run ) ) ) ( PP-2 ( IN than ) ( NP ( NP ( DT the ) ( JJ initial ) ( NNS windfalls ) ) ( SBAR ( S ( NP-SBJ ( NNS investors ) ) ( VP ( MD might ) ( VP ( VB reap ) ( PP-CLR ( IN from ) ( NP ( DT a ) ( JJ hostile ) ( NNP Ford ) ( NN bid ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In a prepared statement GM suggested its plans for Jaguar would be more valuable in the long run than the initial windfalls investors might reap from a hostile Ford bid


( S-1 ( NP-SBJ ( NP ( PRP$ Our ) ( JJ intensive ) ( NNS discussions ) ) ( PP ( IN with ) ( NP ( NNP Jaguar ) ) ) ( PP ( IN at ) ( NP ( PRP$ their ) ( NN invitation ) ) ) ) ( PRN ( S ( NP-SBJ ( NNP GM ) ) ( VP ( VBD said ) ) ) ) ( VP ( VBP have ) ( PP ( RB as ) ( NP ( PRP$ their ) ( NNS objectives ) ) ) ( S ( VP ( VP ( TO to ) ( VP ( VB create ) ( NP ( NP ( DT a ) ( JJ cooperative ) ( NN business ) ( NN relationship ) ) ( PP ( IN with ) ( NP ( NNP Jaguar ) ) ) ( SBAR ( WHNP-69 ( WDT that ) ) ( S ( VP ( MD would ) ( VP ( VB provide ) ( PP-CLR ( IN for ) ( NP ( NP ( DT the ) ( JJ continued ) ( NN independence ) ) ( PP ( IN of ) ( NP ( DT this ) ( JJ great ) ( JJ British ) ( NN car ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( TO to ) ( VP ( VB ensure ) ( NP ( NP ( DT a ) ( JJ secure ) ( NN future ) ) ( PP ( IN for ) ( NP ( PRP$ its ) ( NNS employees ) ) ) ) ) ) ( CC and ) ( VP ( TO to ) ( VP ( VB provide ) ( NP ( DT an ) ( JJ attractive ) ( JJ long-term ) ( NN return ) ) ( PP-CLR ( IN for ) ( NP ( PRP$ its ) ( NNS shareholders ) ) ) ) ) ) ) ) )

Our intensive discussions with Jaguar at their invitation GM said have as their objectives to create a cooperative business relationship with Jaguar that would provide for the continued independence of this great British car company to ensure a secure future for its employees and to provide an attractive long-term return for its shareholders


( S ( NP-SBJ-44 ( NNP Jaguar ) ) ( VP ( VBD was ) ( VP ( VBN shocked ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Mr. ) ( NNP Ridley ) ( POS 's ) ) ( NN decision ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NN management ) ) ( VP ( VBD had ) ( VP ( VBN believed ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN government ) ) ( VP ( MD would ) ( RB n't ) ( VP ( VB lift ) ( NP ( DT the ) ( JJ golden ) ( NN share ) ) ( PP ( IN without ) ( S-NOM ( VP ( VBG consulting ) ( NP ( DT the ) ( NN company ) ) ( ADVP-TMP ( RB first ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Jaguar was shocked by Mr. Ridley 's decision because management had believed the government would n't lift the golden share without consulting the company first


( S ( ADVP ( RB Indeed ) ) ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( VBZ is ) ( VP ( VBG taking ) ( NP ( DT a ) ( JJ calculated ) ( NN risk ) ) ) ) )

Indeed the government is taking a calculated risk


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Ridley ) ( POS 's ) ) ( NN announcement ) ) ( VP ( VBN set ) ( PRT ( RP off ) ) ( NP ( NP ( DT a ) ( NN howl ) ) ( PP ( IN of ) ( NP ( NP ( NNS protests ) ) ( PP ( IN from ) ( NP ( NP ( NP ( NNS members ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN opposition ) ( NNP Labor ) ( NNP Party ) ) ) ) ( SBAR ( WHNP-70 ( WP who ) ) ( S ( VP ( VBD accused ) ( NP-1 ( DT the ) ( NNP Thatcher ) ( NN administration ) ) ( PP-CLR ( IN of ) ( S-NOM ( VP ( VBG backing ) ( ADVP ( RB down ) ( PP ( IN on ) ( NP ( NP ( JJ promised ) ( NN protection ) ) ( PP ( IN for ) ( NP ( DT a ) ( JJ privatized ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Ridley 's announcement set off a howl of protests from members of the opposition Labor Party who accused the Thatcher administration of backing down on promised protection for a privatized company


( S ( NP-SBJ-1 ( DT The ) ( JJ British ) ( NN government ) ) ( VP ( VBD retained ) ( NP ( DT the ) ( JJ single ) ( JJ golden ) ( NN share ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG selling ) ( NP ( NP ( PRP$ its ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( NNP Jaguar ) ) ) ) ( FRAG ( PP ( IN in ) ) ) ) ) ) ) )

The British government retained the single golden share after selling its stake in Jaguar in


( S ( NP-SBJ ( NP ( DT The ) ( JJ Conservative ) ( NN government ) ( POS 's ) ) ( NN decision ) ) ( VP ( MD may ) ( VP ( VB reflect ) ( NP ( PRP$ its ) ( NN desire ) ( S ( VP ( TO to ) ( VP ( VB shed ) ( NP ( DT a ) ( ADJP ( RB politically ) ( JJ sensitive ) ) ( NN issue ) ) ( PP-TMP ( ADVP ( RB well ) ) ( IN before ) ( NP ( NP ( DT the ) ( JJ next ) ( NN election ) ) ( VP ( VBN expected ) ( PP-TMP ( IN in ) ( NP ( JJ late ) ( CD 1991 ) ) ) ) ) ) ) ) ) ) ) ) )

The Conservative government 's decision may reflect its desire to shed a politically sensitive issue well before the next election expected in late 1991


( SINV ( S-TPC-4 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( ADVP-TMP ( RB now ) ) ( NP-PRD ( NP ( DT a ) ( ADJP ( RB very ) ( JJ good ) ) ( NN time ) ) ( ADVP ( RB politically ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB get ) ( S ( NP-SBJ ( DT this ) ) ( ADVP-PRD ( ADVP ( RB over ) ) ( CC and ) ( ADVP ( RB done ) ( PP ( IN with ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD observed ) ) ( NP-SBJ ( NP ( NNP Daniel ) ( NNP Jones ) ) ( NP ( NP ( NN professor ) ) ( PP ( IN of ) ( NP ( NN motor ) ( NN industry ) ( NN management ) ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NP ( DT the ) ( NNP University ) ) ( PP ( IN of ) ( NP ( NNP Cardiff ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP Wales ) ) ) ) ) ) ) )

It 's now a very good time politically to get this over and done with observed Daniel Jones professor of motor industry management at the University of Cardiff in Wales


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN government ) ) ( VP ( ADVP-TMP ( RB already ) ) ( VBN buffeted ) ( PP ( IN by ) ( NP-LGS ( NP ( JJ high ) ( NN interest ) ( NNS rates ) ) ( CC and ) ( NP ( DT a ) ( VBG slowing ) ( NN economy ) ) ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( ADVP-MNR ( RB badly ) ) ( VBN hurt ) ( PP ( IN by ) ( NP-LGS ( NP ( NP ( JJ last ) ( NN week ) ( POS 's ) ) ( NN shake-up ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Mrs. ) ( NNP Thatcher ) ( POS 's ) ) ( NN cabinet ) ) ) ) ) ) ) ) )

The government already buffeted by high interest rates and a slowing economy has been badly hurt by last week 's shake-up in Mrs. Thatcher 's cabinet


( S ( PP-TMP ( IN At ) ( NP ( DT the ) ( JJ same ) ( NN time ) ) ) ( NP-SBJ-1 ( DT the ) ( NN government ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB want ) ( S ( VP ( TO to ) ( VP ( VB appear ) ( S ( VP ( TO to ) ( VP ( VB favor ) ( NP ( NNP GM ) ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG allowing ) ( NP ( NP ( DT a ) ( NN minority ) ( NN stake ) ) ( SBAR ( WHNP-71 ( WDT that ) ) ( S ( VP ( MD might ) ( VP ( VB preclude ) ( NP ( NP ( DT a ) ( JJ full ) ( NN bid ) ) ( PP ( IN by ) ( NP ( NNP Ford ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

At the same time the government did n't want to appear to favor GM by allowing a minority stake that might preclude a full bid by Ford


( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Ridley ) ) ( VP ( VBD hinted ) ( PP-CLR ( IN at ) ( NP ( DT this ) ( NN motive ) ) ) ( PP ( IN in ) ( S-NOM ( VP ( VBG answering ) ( NP ( NP ( NNS questions ) ) ( PP ( IN from ) ( NP ( NP ( NNS members ) ) ( PP ( IN of ) ( NP ( NNP Parliament ) ) ) ) ) ) ( PP-TMP ( IN after ) ( NP ( PRP$ his ) ( NN announcement ) ) ) ) ) ) ) )

Mr. Ridley hinted at this motive in answering questions from members of Parliament after his announcement


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP he ) ) ( VP ( VBD was ) ( VP ( VBG giving ) ( PRT ( RP up ) ) ( NP ( DT the ) ( JJ golden ) ( NN share ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB clear ) ( NP ( DT the ) ( NN way ) ) ( SBAR-PRP ( IN so ) ( S ( NP-SBJ ( DT the ) ( NN playing ) ( NN field ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ level ) ) ( PP ( IN between ) ( NP ( DT all ) ( NNS contestants ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

He said he was giving up the golden share to clear the way so the playing field is level between all contestants


( S ( NP-SBJ ( NP ( NNP Bradley ) ( NN A. ) ( NNP Stertz ) ) ( PP-LOC ( IN in ) ( NP ( NNP Detroit ) ) ) ) ( VP ( VBD contributed ) ( PP-CLR ( TO to ) ( NP ( DT this ) ( NN article ) ) ) ) )

Bradley A. Stertz in Detroit contributed to this article


( S ( NP-SBJ ( NNP UNIFIRST ) ( NNP Corp. ) ) ( VP ( VBD declared ) ( NP ( DT a ) ( JJ 2-for-1 ) ( NN stock ) ( NN split ) ) ) )

UNIFIRST Corp. declared a 2-for-1 stock split


( S ( NP-SBJ ( DT The ) ( NAC-LOC ( NNP Wilmington ) ( NNP Mass. ) ) ( NN garment ) ( NN service ) ( NN company ) ) ( ADVP ( RB also ) ) ( VP ( VBD boosted ) ( NP ( PRP$ its ) ( JJ quarterly ) ( NN dividend ) ) ( NP-ADV ( CD 20 ) ( NN % ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NP ( CD three ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( VP ( VBN adjusted ) ( PP-CLR ( IN for ) ( NP ( DT the ) ( NN split ) ) ) ) ) ) ) )

The Wilmington Mass. garment service company also boosted its quarterly dividend 20 % to three cents a share adjusted for the split


( S ( NP-SBJ ( DT The ) ( NN dividend ) ) ( VP ( VBD had ) ( VP ( VBN been ) ( NP-PRD ( NP ( CD five ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) )

The dividend had been five cents a share


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NX ( NX ( NN split ) ) ( CC and ) ( NX ( JJ quarterly ) ( NN dividend ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJ payable ) ( NP-TMP ( NNP Jan. ) ( CD 3 ) ) ( PP ( TO to ) ( NP ( NP ( NN stock ) ) ( PP ( IN of ) ( NP ( NN record ) ) ) ( NP-TMP ( NNP Nov. ) ( CD 16 ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ) )

The split and quarterly dividend will be payable Jan. 3 to stock of record Nov. 16 the company said


( S ( NP-SBJ ( DT The ) ( NN split ) ) ( VP ( MD will ) ( VP ( VB raise ) ( NP ( NP ( DT the ) ( NN number ) ) ( PP ( IN of ) ( NP ( NP ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ( PP-DIR ( TO to ) ( NP ( IN about ) ( CD 10.2 ) ( CD million ) ) ) ) ) )

The split will raise the number of shares outstanding to about 10.2 million


( S ( ADVP ( RB Separately ) ) ( NP-SBJ ( NNP UniFirst ) ) ( VP ( VBD reported ) ( SBAR ( DT that ) ( S ( NP-SBJ ( JJ net ) ( NN income ) ) ( VP ( VBD rose ) ( NP-ADV ( CD 21 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 3 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( NP ( CD 29 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( VP ( VBN adjusted ) ( PP-CLR ( IN for ) ( NP ( DT the ) ( NN split ) ) ) ) ) ) ) ) ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ fourth ) ( NN quarter ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP Aug. ) ( CD 26 ) ) ) ) ) ) )

Separately UniFirst reported that net income rose 21 % to 3 million or 29 cents a share adjusted for the split for the fourth quarter ended Aug. 26


( S ( ADVP-TMP ( NP ( DT A ) ( NN year ) ) ( RB earlier ) ) ( NP-SBJ ( NNP UniFirst ) ) ( VP ( VBD earned ) ( NP ( NP ( QP ( CD 2.4 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( NP ( CD 24 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( VP ( VBN adjusted ) ( PP-CLR ( IN for ) ( NP ( DT the ) ( NN split ) ) ) ) ) ) ) )

A year earlier UniFirst earned 2.4 million or 24 cents a share adjusted for the split


( S ( NP-SBJ ( NNS Sales ) ) ( VP ( VBD rose ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 52.4 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 50.1 ) ( CD million ) ) ) ) ) )

Sales rose to 52.4 million from 50.1 million


( S ( NP-SBJ ( NNP BELL ) ( NNP INDUSTRIES ) ( NNP Inc. ) ) ( VP ( VBD increased ) ( NP ( PRP$ its ) ( NN quarterly ) ) ( PP-DIR ( TO to ) ( NP ( CD 10 ) ( NNS cents ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( CD seven ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) )

BELL INDUSTRIES Inc. increased its quarterly to 10 cents from seven cents a share


( S ( NP-SBJ ( DT The ) ( JJ new ) ( NN rate ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJ payable ) ( NP-TMP ( NNP Feb. ) ( CD 15 ) ) ) ) ) )

The new rate will be payable Feb. 15


( S ( NP-SBJ-1 ( DT A ) ( NN record ) ( NN date ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBN been ) ( VP ( VBN set ) ) ) ) )

A record date has n't been set


( S ( NP-SBJ ( NP ( NNP Bell ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN in ) ( NP ( NNP Los ) ( NNP Angeles ) ) ) ) ) ( VP ( VBZ makes ) ( CC and ) ( VBZ distributes ) ( NP ( UCP ( JJ electronic ) ( NN computer ) ( CC and ) ( NN building ) ) ( NNS products ) ) ) )

Bell based in Los Angeles makes and distributes electronic computer and building products


( S ( NP-SBJ ( DT The ) ( NNP Wall ) ( NNP Street ) ( NNP Journal ) ( NAC ( NNP American ) ( NNP Way ) ( PP ( IN of ) ( NP ( NNP Buying ) ) ) ) ( NN Survey ) ) ( VP ( VBZ consists ) ( PP-CLR ( IN of ) ( NP ( NP ( CD two ) ( JJ separate ) ( JJ door-to-door ) ( JJ nationwide ) ( NNS polls ) ) ( VP ( VBN conducted ) ( PP ( IN for ) ( NP ( DT the ) ( NNP Journal ) ) ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Peter ) ( NNP D. ) ( NNP Hart ) ( NNP Research ) ( NNPS Associates ) ) ( CC and ) ( NP ( DT the ) ( NNP Roper ) ( NNP Organization ) ) ) ) ) ) ) ) )

The Wall Street Journal American Way of Buying Survey consists of two separate door-to-door nationwide polls conducted for the Journal by Peter D. Hart Research Associates and the Roper Organization


( S ( NP-SBJ-2 ( NP ( DT The ) ( CD two ) ( NNS surveys ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD asked ) ( NP ( JJ different ) ( NNS questions ) ) ) ) ) ) ( VP ( VBD were ) ( VP ( VBN conducted ) ( S-MNR ( VP ( VBG using ) ( NP ( JJ national ) ( JJ random ) ( NN probability ) ( NNS samples ) ) ) ) ) ) )

The two surveys which asked different questions were conducted using national random probability samples


( S ( NP-SBJ ( NP ( DT The ) ( NN poll ) ) ( VP ( VBN conducted ) ( PP ( IN by ) ( NP-LGS ( NNP Peter ) ( NNP D. ) ( NNP Hart ) ( NNP Research ) ( NNPS Associates ) ) ) ) ) ( VP ( VBD interviewed ) ( NP ( NP ( CD 2,064 ) ( NNS adults ) ) ( UCP ( NP ( NN age ) ( CD 18 ) ) ( CC and ) ( ADJP ( JJR older ) ) ) ) ( PP-TMP ( PP ( IN from ) ( NP ( NNP June ) ( CD 15 ) ) ) ( PP ( TO to ) ( NP ( NNP June ) ( CD 30 ) ( CD 1989 ) ) ) ) ) )

The poll conducted by Peter D. Hart Research Associates interviewed 2,064 adults age 18 and older from June 15 to June 30 1989