( S ( NP-SBJ-1 ( NNPS Republicans ) ) ( VP ( MD would ) ( VP ( VB try ) ( S ( VP ( TO to ) ( VP ( VB attach ) ( NP ( DT a ) ( NNS capital-gains ) ( NN provision ) ) ( PP-CLR ( TO to ) ( NP ( DT that ) ( NN legislation ) ) ) ) ) ) ( S-ADV ( VP ( VBG hoping ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( JJ political ) ( NN popularity ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ other ) ( CD two ) ( NNS parts ) ) ) ) ( VP ( MD would ) ( VP ( VB dissuade ) ( NP ( NNPS Democrats ) ) ( PP-CLR ( IN from ) ( S-NOM ( VP ( VBG blocking ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) ) ) ) )

Republicans would try to attach a capital-gains provision to that legislation hoping the political popularity of its other two parts would dissuade Democrats from blocking it


( S ( NP-SBJ-1 ( NNPS Democrats ) ) ( VP ( VBP want ) ( S ( VP ( TO to ) ( VP ( VB avoid ) ( S ( VP ( VBG having ) ( S ( VP ( TO to ) ( VP ( VB make ) ( NP ( DT that ) ( NN choice ) ) ) ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG making ) ( S ( NP-SBJ ( DT the ) ( NNS capital-gains ) ( NN tax ) ( NN cut ) ) ( NP-PRD ( DT an ) ( JJ individual ) ( NN bill ) ) ) ) ) ) ) ) ) ) )

Democrats want to avoid having to make that choice by making the capital-gains tax cut an individual bill


( S ( NP-SBJ ( NNP Sen. ) ( NNP Mitchell ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ confident ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ has ) ( NP ( JJ sufficient ) ( NNS votes ) ( S ( VP ( TO to ) ( VP ( VB block ) ( NP ( PDT such ) ( DT a ) ( NN measure ) ) ( PP-MNR ( IN with ) ( NP ( JJ procedural ) ( NNS actions ) ) ) ) ) ) ) ) ) ) ) ) )

Sen. Mitchell is confident he has sufficient votes to block such a measure with procedural actions


( S ( NP-SBJ ( DT Both ) ( NNS plans ) ) ( VP ( MD would ) ( VP ( VP ( VB drop ) ( NP ( NN child-care ) ( NNS provisions ) ) ( PP-CLR ( IN from ) ( NP ( NP ( DT the ) ( NNP House ) ( NN version ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ deficit-reduction ) ( NN legislation ) ) ) ) ) ) ( CC and ) ( VP ( VB let ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VB progress ) ( PP-MNR ( IN as ) ( NP ( DT a ) ( JJ separate ) ( NN bill ) ) ) ) ) ) ) ) )

Both plans would drop child-care provisions from the House version of the deficit-reduction legislation and let it progress as a separate bill


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( DT that ) ) ( VP ( MD could ) ( VP ( VB make ) ( S ( NP-SBJ ( PRP it ) ) ( ADJP-PRD ( JJ vulnerable ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN veto ) ) ( PP ( IN by ) ( NP ( NNP Mr. ) ( NNP Bush ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Democrats ) ) ( VP ( VBP argue ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT a ) ( JJ presidential ) ( NN rejection ) ) ( VP ( MD would ) ( VP ( VB give ) ( NP ( PRP$ their ) ( NN party ) ) ( NP ( NP ( DT a ) ( JJ valuable ) ( NN issue ) ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ next ) ( NN year ) ( POS 's ) ) ( JJ congressional ) ( NNS elections ) ) ) ) ) ) ) ) ) )

While that could make it vulnerable to a veto by Mr. Bush Democrats argue that a presidential rejection would give their party a valuable issue in next year 's congressional elections


( S ( NP-SBJ-1 ( NNP Senate ) ( NNPS Democrats ) ) ( VP ( VBP are ) ( S ( VP ( TO to ) ( VP ( VB meet ) ( NP-TMP ( NN today ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB consider ) ( NP ( DT the ) ( NNP GOP ) ( NN proposal ) ) ) ) ) ) ) ) ) )

Senate Democrats are to meet today to consider the GOP proposal


( S ( NP-TMP ( NN Yesterday ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Dole ) ) ( VP ( VBD seemed ) ( ADJP-PRD ( JJ weary ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( NNP Bush ) ( NN administration ) ( POS 's ) ) ( NN strategy ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG pushing ) ( NP ( DT the ) ( NNS capital-gains ) ( NN measure ) ) ( PP-TMP ( IN at ) ( NP ( DT every ) ( NN chance ) ) ) ( PP-CLR ( IN in ) ( NP ( NP ( DT the ) ( NN face ) ) ( PP ( IN of ) ( NP ( JJ Democratic ) ( JJ procedural ) ( NNS hurdles ) ) ) ) ) ) ) ) ) ) ) ) )

Yesterday Mr. Dole seemed weary of the Bush administration 's strategy of pushing the capital-gains measure at every chance in the face of Democratic procedural hurdles


( S-2 ( S-NOM-SBJ-3 ( VP ( VBG Pushing ) ( NP ( NP ( DT the ) ( NN issue ) ) ( PP ( IN on ) ( NP ( NP ( NN legislation ) ) ( VP ( VBN needed ) ( S-PRP ( VP ( TO to ) ( VP ( VB avoid ) ( NP ( NP ( NN default ) ) ( PP ( IN by ) ( NP ( DT the ) ( JJ federal ) ( NN government ) ) ) ) ) ) ) ) ) ) ) ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD told ) ( NP ( NNS reporters ) ) ) ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB seem ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( RB very ) ( JJ good ) ( NN strategy ) ) ) ) ) ( PP ( TO to ) ( NP ( PRP me ) ) ) ) ) )

Pushing the issue on legislation needed to avoid default by the federal government he told reporters does n't seem to be very good strategy to me


( S ( PP-TMP ( IN At ) ( NP ( NP ( CD 12:01 ) ( NN a.m. ) ( RB EST ) ) ( NP ( NN today ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( JJ federal ) ( NN government ) ( POS 's ) ) ( JJ temporary ) ( ADJP ( QP ( CD 2.87 ) ( CD trillion ) ) ) ( NN debt ) ( NN limit ) ) ( VP ( VBD expired ) ) )

At 12:01 a.m. EST today the federal government 's temporary 2.87 trillion debt limit expired


( S ( S-PRP ( VP ( TO To ) ( VP ( VB avoid ) ( NP ( NN default ) ) ) ) ) ( NP-SBJ-1 ( NNS lawmakers ) ) ( VP ( MD must ) ( VP ( VB pass ) ( NP ( NP ( NN legislation ) ) ( VP ( VBG raising ) ( NP ( DT the ) ( NN limit ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 3.12 ) ( CD trillion ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 2.80 ) ( CD trillion ) ) ) ) ) ) ( PP-TMP ( IN by ) ( NP ( JJ next ) ( NNP Wednesday ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( DT the ) ( NNP Treasury ) ) ) ) ) ) )

To avoid default lawmakers must pass legislation raising the limit to 3.12 trillion from 2.80 trillion by next Wednesday according to the Treasury


( S ( S ( VP ( VBN Pressed ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Chairman ) ( NNP Dan ) ( NNP Rostenkowski ) ) ( PRN ( NP ( NNP D. ) ) ( NP-LOC ( NNP Ill ) ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP House ) ( NNP Ways ) ( CC and ) ( NNP Means ) ( NNP Committee ) ) ) ) ) ) ) ( NP-SBJ-2 ( NNP Treasury ) ( NNP Undersecretary ) ( NNP Robert ) ( NNP Glauber ) ) ( VP ( VBD told ) ( NP ( DT a ) ( JJ congressional ) ( NN hearing ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-3 ( DT the ) ( NN administration ) ) ( VP ( MD would ) ( VP ( VB give ) ( PRT ( RP up ) ) ( NP ( NP ( PRP$ its ) ( NN demand ) ) ( PP ( IN for ) ( NP ( DT the ) ( NNS capital-gains ) ( NN tax ) ( NN cut ) ) ) ) ( SBAR-ADV ( IN if ) ( S ( VP ( VBN faced ) ( PP-CLR ( IN with ) ( NP ( DT a ) ( JJ potential ) ( NN default ) ) ) ) ) ) ) ) ) ) ) )

Pressed by Chairman Dan Rostenkowski D. Ill of the House Ways and Means Committee Treasury Undersecretary Robert Glauber told a congressional hearing that the administration would give up its demand for the capital-gains tax cut if faced with a potential default


( S ( NP-TMP ( DT Every ) ( NN workday ) ) ( PP-TMP ( IN at ) ( NP ( CD 11 ) ( RB a.m. ) ) ) ( NP-SBJ ( JJ 40-year-old ) ( NNP Mike ) ( NNP Sinyard ) ) ( VP ( VP ( VBZ dons ) ( NP ( NN cycling ) ( NNS clothes ) ) ) ( VP ( VBZ hops ) ( PP-LOC-CLR ( IN on ) ( NP ( NP ( DT a ) ( NN bike ) ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ keeps ) ( PP-LOC-CLR ( IN at ) ( NP ( PRP$ his ) ( NAC-LOC ( NNP Morgan ) ( NNP Hill ) ( NNP Calif. ) ) ( NN office ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBZ sets ) ( PRT ( RP out ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB cover ) ( NP ( NP ( DT a ) ( NN distance ) ) ( SBAR ( S ( NP-SBJ ( JJS most ) ( NNS people ) ) ( VP ( MD would ) ( VP ( VB travel ) ( PP-MNR ( ADVP ( RB only ) ) ( IN by ) ( NP ( NN car ) ) ) ) ) ) ) ) ) ) ) ) ) )

Every workday at 11 a.m. 40-year-old Mike Sinyard dons cycling clothes hops on a bike he keeps at his Morgan Hill Calif. office and sets out to cover a distance most people would travel only by car


( S ( NP-SBJ ( NP ( QP ( RB As ) ( JJ many ) ( IN as ) ( CD 50 ) ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ his ) ( NNS employees ) ) ( PP-LOC ( IN at ) ( NP ( NNP Specialized ) ( NNP Bicycle ) ( NNP Components ) ( NNP Inc. ) ) ) ) ) ) ( VP ( VBP ride ) ( PP ( IN with ) ( NP ( PRP him ) ) ) ) )

As many as 50 of his employees at Specialized Bicycle Components Inc. ride with him


( S ( SBAR-TMP ( WHADVP-1 ( WRB When ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP return ) ( PP-CLR ( TO to ) ( NP ( PRP$ their ) ( NNS desks ) ) ) ( PP-TMP ( IN at ) ( NP ( CD 1 ) ( NN p.m. ) ) ) ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP have ) ( VP ( VBN pedaled ) ( NP-ADV ( CD 20 ) ( NNS miles ) ) ) ) )

When they return to their desks at 1 p.m. they have pedaled 20 miles


( S ( NP-SBJ ( NP ( JJ Such ) ( NN fervor ) ) ( PP ( IN for ) ( NP ( NN cycling ) ) ) ) ( VP ( VBD helped ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Sinyard ) ) ( VP ( VB build ) ( NP ( NP ( DT a ) ( JJ creative ) ( NN company ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT the ) ( NN forefront ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NN industry ) ) ) ) ) ) ) ) ) )

Such fervor for cycling helped Mr. Sinyard build a creative company at the forefront of its industry


( S ( S-ADV ( VP ( VBN Founded ) ( PP ( IN by ) ( NP-LGS ( NP ( NN bike ) ( NNS enthusiasts ) ) ( PP ( RB rather ) ( IN than ) ( NP ( NNS businessmen ) ) ) ) ) ) ) ( NP-SBJ-2 ( NNP Specialized ) ) ( VP ( VP ( VBD spotted ) ( NP ( NP ( DT the ) ( NN appeal ) ) ( PP ( IN of ) ( NP ( NP ( JJ fat-tired ) ( NNS bikes ) ) ( SBAR ( WHNP-188 ( WDT that ) ) ( S ( VP ( VBP go ) ( ADVP-DIR ( RB almost ) ( RB anywhere ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD began ) ( S ( VP ( VBG mass-producing ) ( NP ( PRP them ) ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1981 ) ) ) ) ) )

Founded by bike enthusiasts rather than businessmen Specialized spotted the appeal of fat-tired bikes that go almost anywhere and began mass-producing them in 1981


( S ( PP-TMP ( IN In ) ( NP ( DT the ) ( JJ past ) ( CD five ) ( NNS years ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNS sales ) ) ( VP ( VBP have ) ( VP ( VBN grown ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 80 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 26 ) ( CD million ) ) ) ) ) ) )

In the past five years the company 's sales have grown to 80 million from 26 million


( S ( NP-TMP ( NN Today ) ) ( NP-SBJ ( JJ so-called ) ( NN mountain ) ( NNS bikes ) ) ( VP ( VBP account ) ( PP-CLR ( IN for ) ( NP ( NP ( NNS two-thirds ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( QP ( CD 2 ) ( CD billion ) ) ) ( VP ( VBN spent ) ( ADVP-TMP ( RB annually ) ) ( PP-CLR ( IN on ) ( NP ( DT all ) ( NNS bicycles ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ) ) ) ) ) )

Today so-called mountain bikes account for two-thirds of the 2 billion spent annually on all bicycles in the U.S.


( S ( PP ( IN With ) ( S-NOM ( NP-SBJ ( NP ( CD 65 ) ( NN % ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NNS sales ) ) ) ) ( VP ( VBG coming ) ( PP-DIR ( IN from ) ( NP ( NN mountain ) ( NNS bikes ) ) ) ) ) ) ( NP-SBJ-1 ( NNP Specialized ) ) ( VP ( VBZ is ) ( ADVP ( RB widely ) ) ( VP ( VBN considered ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( NN market ) ( NN leader ) ) ) ) ) ) ) )

With 65 % of its sales coming from mountain bikes Specialized is widely considered to be a market leader


( S ( NP-SBJ ( NP ( NNS Accessories ) ) ( PRN ( PP ( ADVP ( RB largely ) ) ( IN for ) ( NP ( NN mountain-bike ) ( NNS users ) ) ) ) ) ( VP ( VBP account ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ much ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN rest ) ) ( PP ( IN of ) ( NP ( NNS sales ) ) ) ) ) ) ) ) )

Accessories largely for mountain-bike users account for much of the rest of sales


( S ( CC But ) ( NP-TMP ( NN today ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBZ needs ) ( NP ( PRP$ its ) ( JJ entrepreneurial ) ( NN spirit ) ) ( ADVP ( RBR more ) ( IN than ) ( RB ever ) ) ) )

But today the company needs its entrepreneurial spirit more than ever


( S ( NP-SBJ-3 ( NP ( CD One ) ( JJ large ) ( NN competitor ) ) ( PP ( IN after ) ( NP ( DT another ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG leaping ) ( PP-DIR ( IN into ) ( NP ( NP ( DT the ) ( JJ booming ) ( NN market ) ) ( SBAR ( S ( NP-SBJ-2 ( NNP Specialized ) ) ( VP ( VBD helped ) ( S ( VP ( VB create ) ) ) ) ) ) ) ) ( S-ADV ( VP ( VBG turning ) ( PRT ( RP out ) ) ( NP ( NP ( NN mountain ) ( NNS bikes ) ) ( PP ( IN with ) ( NP ( NP ( ADJP ( JJ such ) ( JJ well-known ) ) ( NNS names ) ) ( PP ( IN as ) ( NP ( NNP Schwinn ) ( NNP Peugeot ) ( NNP Raleigh ) ( CC and ) ( NNP Nishiki ) ) ) ) ) ) ) ) ) ) )

One large competitor after another is leaping into the booming market Specialized helped create turning out mountain bikes with such well-known names as Schwinn Peugeot Raleigh and Nishiki


( S ( ADVP ( RB Thus ) ) ( NP-SBJ-1 ( NP ( NNP Mr. ) ( NNP Sinyard ) ( POS 's ) ) ( NN company ) ) ( VP ( MD must ) ( VP ( VB innovate ) ( ADVP ( RBR more ) ( IN than ) ( RB ever ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB stay ) ( ADVP-PRD ( RB ahead ) ( PP ( IN of ) ( NP ( PRP them ) ) ) ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG developing ) ( NP ( NP ( JJ new ) ( NNS products ) ) ( PP ( ADVP ( RB specifically ) ) ( IN for ) ( NP ( NN mountain ) ( NN biking ) ) ) ) ) ) ) ) ) )

Thus Mr. Sinyard 's company must innovate more than ever to stay ahead of them by developing new products specifically for mountain biking


( S ( PP-TMP ( IN At ) ( NP ( DT the ) ( JJ same ) ( NN time ) ) ) ( ADVP ( RB though ) ) ( NP-SBJ-1 ( PRP it ) ) ( VP ( MD must ) ( VP ( VB become ) ( ADJP-PRD ( RBR more ) ( JJ structured ) ) ( S-PRP ( VP ( TO to ) ( VP ( ADVP-MNR ( RBR better ) ) ( VB manage ) ( NP ( PRP$ its ) ( NN growth ) ) ) ) ) ) ) )

At the same time though it must become more structured to better manage its growth


( S ( S-NOM-SBJ ( VP ( VBG Accomplishing ) ( NP ( DT both ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( NP-PRD ( NP ( DT a ) ( NN balancing ) ( NN act ) ) ( ADJP ( RB as ) ( JJ challenging ) ( PP ( IN as ) ( S-NOM ( VP ( VBG riding ) ( NP ( DT a ) ( NN unicycle ) ) ) ) ) ) ) ) ) )

Accomplishing both will be a balancing act as challenging as riding a unicycle


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN problem ) ) ( ADJP ( JJ common ) ( PP ( TO to ) ( NP ( NP ( JJ small ) ( NNS companies ) ) ( SBAR ( WHNP-189 ( WDT that ) ) ( S ( VP ( VBP have ) ( VP ( VBN grown ) ( ADVP ( RB fast ) ) ) ) ) ) ) ) ) ) ( SBAR-TMP ( WHADVP-1 ( RB especially ) ( WRB when ) ) ( S ( NP-SBJ ( PRP$ their ) ( NN success ) ) ( VP ( VBZ attracts ) ( NP ( JJ big-time ) ( NNS competitors ) ) ) ) ) ) )

It is a problem common to small companies that have grown fast especially when their success attracts big-time competitors


( SINV ( S-TPC-1 ( NP-SBJ ( DT The ) ( JJ big ) ( NN word ) ) ( PP ( IN around ) ( NP ( NNP Specialized ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NN passion ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Erik ) ( NNP Eidsmo ) ) ( NP ( NP ( DT a ) ( JJ former ) ( NN ski-industry ) ( NN executive ) ) ( SBAR ( WHNP-190 ( WP whom ) ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Sinyard ) ) ( VP ( VBD recruited ) ( PP-CLR ( IN from ) ( NP ( NNP Citicorp ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB run ) ( NP ( NN marketing ) ( CC and ) ( NNS sales ) ) ) ) ) ) ) ) ) ) )

The big word around Specialized is passion says Erik Eidsmo a former ski-industry executive whom Mr. Sinyard recruited from Citicorp to run marketing and sales


( S ( SBAR-NOM-SBJ ( WHNP-2 ( WP What ) ) ( S ( NP-SBJ-1 ( PRP I ) ) ( VP ( VBP hope ) ( S ( VP ( TO to ) ( VP ( VB bring ) ( PP-DIR ( TO to ) ( NP ( DT this ) ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT another ) ( NN word ) ) ( NP ( NN process ) ) ) ) )

What I hope to bring to this is another word process


( S ( NP-SBJ ( IN That ) ) ( VP ( POS 's ) ( NP-PRD ( PRP$ my ) ( NN challenge ) ) ) )

That 's my challenge


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( NNP Mike ) ( POS 's ) ) ( NN challenge ) ) ( ADVP ( RB as ) ( RB well ) ) ) )

It 's Mike 's challenge as well


( S ( NP-SBJ ( NNP Mr. ) ( NNP Eidsmo ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( JJ several ) ( JJ key ) ( NNS people ) ) ( PP ( IN from ) ( PP-LOC ( IN outside ) ( NP ( DT the ) ( NN cycling ) ( NN industry ) ) ) ) ( SBAR ( WHNP-191 ( WP who ) ) ( S ( VP ( VBD were ) ( VP ( VBN hired ) ( S-CLR ( VP ( TO to ) ( VP ( VB bring ) ( NP ( DT the ) ( JJ free-wheeling ) ( JJ fast-growing ) ( NN company ) ) ( PP-CLR ( IN under ) ( NP ( JJR tighter ) ( NN control ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Eidsmo is one of several key people from outside the cycling industry who were hired to bring the free-wheeling fast-growing company under tighter control


( S ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBD had ) ( NP ( NP ( DT a ) ( NN lot ) ) ( PP ( IN of ) ( NP ( NNS problems ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Sinyard ) ) ( VP ( VBZ says ) ) )

We had a lot of problems Mr. Sinyard says


( S ( SBAR-TMP ( IN While ) ( S ( NP-SBJ ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNS sales ) ) ( VP ( VBD were ) ( VP ( VBG soaring ) ) ) ) ) ( NP-SBJ ( PRP We ) ) ( ADVP-TMP ( RB still ) ) ( VP ( VBD had ) ( NP ( NP ( DT a ) ( NN system ) ) ( SBAR ( WHNP-192 ( WDT that ) ) ( S ( VP ( VBD was ) ( ADVP ( RB probably ) ) ( ADJP-PRD ( JJ appropriate ) ( PP ( IN for ) ( NP ( NP ( QP ( CD 10 ) ( CD million ) ( TO to ) ( CD 20 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NNS sales ) ) ) ) ) ) ) ) ) ) ) )

While the company 's sales were soaring We still had a system that was probably appropriate for 10 million to 20 million in sales


( SINV ( VP ( VBZ Adds ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Eidsmo ) ) ( S-1 ( SBAR-NOM-SBJ ( WHNP-193 ( WP What ) ) ( S ( VP ( VBD felt ) ( ADJP-PRD ( JJ good ) ) ( NP-TMP ( IN that ) ( NN day ) ) ) ) ) ( VP ( VBD was ) ( VP ( VBN done ) ( NP-TMP ( DT that ) ( NN day ) ) ) ) ) )

Adds Mr. Eidsmo What felt good that day was done that day


( S ( PP-TMP ( IN Since ) ( NP ( NP ( PRP$ his ) ( NN arrival ) ) ( PP-TMP ( IN in ) ( NP ( NNP May ) ) ) ) ) ( NP-SBJ-1 ( NNP Mr. ) ( NNP Eidsmo ) ) ( VP ( VBZ has ) ( VP ( VBN put ) ( PP-PUT ( IN in ) ( NP ( NN place ) ) ) ( NP ( NP ( NNS techniques ) ) ( VP ( VBN learned ) ( SBAR-TMP ( IN while ) ( S ( VP ( VBG working ) ( PP-CLR ( IN for ) ( NP ( NNP Citicorp ) ) ) ) ) ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NN management-by-objective ) ) ( NP ( JJ detailed ) ( NN project ) ( NNS plans ) ) ( CC and ) ( NP ( NP ( NNS forecasts ) ) ( PP ( IN of ) ( NP ( NP ( NN company ) ( NNS sales ) ) ( CC and ) ( NP ( NN product ) ( NNS trends ) ) ) ) ) ) ) ) ) ) )

Since his arrival in May Mr. Eidsmo has put in place techniques learned while working for Citicorp such as management-by-objective detailed project plans and forecasts of company sales and product trends


( S ( S-TPC-3 ( NP-SBJ ( PRP We ) ) ( VP ( VBP 're ) ( ADVP-TMP ( RB finally ) ) ( VP ( VBG getting ) ( PRN ( CC and ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( VP ( VBN been ) ( ADJP-PRD ( RB very ) ( JJ painful ) ) ) ) ) ) ( NP ( NP ( DT some ) ( NN understanding ) ) ( PP ( IN of ) ( SBAR-NOM ( WHNP-2 ( WP what ) ) ( S ( NP-SBJ-1 ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ long-term ) ( NN horizon ) ) ( VP ( MD should ) ( VP ( VB begin ) ( S ( VP ( TO to ) ( VP ( VB look ) ( PP-CLR ( IN like ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Eidsmo ) ) ( VP ( VBZ says ) ) )

We 're finally getting and it 's been very painful some understanding of what the company 's long-term horizon should begin to look like Mr. Eidsmo says


( S ( S-TPC-1 ( CC But ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( JJ risky ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ( PP-CLR ( IN of ) ( NP ( NP ( NNP Specialized ) ( POS 's ) ) ( NN attempt ) ( S ( VP ( TO to ) ( VP ( VB adopt ) ( NP ( DT a ) ( JJ corporate ) ( NN structure ) ) ) ) ) ) ) ) )

But it 's risky he says of Specialized 's attempt to adopt a corporate structure


( S ( NP-SBJ-1 ( PRP You ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB want ) ( S ( VP ( TO to ) ( VP ( VB lose ) ( NP ( NP ( DT the ) ( NN magic ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ creative ) ( NN drive ) ) ) ) ) ) ) ) ) )

You do n't want to lose the magic of the company 's creative drive


( S ( S-ADV ( VP ( VBG Hoping ) ( S ( VP ( TO to ) ( VP ( VB stay ) ( ADVP-LOC-PRD ( RB ahead ) ( PP ( IN of ) ( NP ( DT the ) ( NN pack ) ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( DT the ) ( NN company ) ) ( VP ( VBZ is ) ( VP ( VBG emphasizing ) ( NP ( NN innovation ) ) ) ) )

Hoping to stay ahead of the pack the company is emphasizing innovation


( S ( PP-LOC ( IN At ) ( NP ( DT a ) ( JJ recent ) ( NN trade ) ( NN show ) ) ) ( NP-SBJ-1 ( NNS convention-goers ) ) ( VP ( VBD lined ) ( PRT ( RP up ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB view ) ( NP ( NP ( DT a ) ( JJ new ) ( NNP Specialized ) ( NN bike ) ( NN frame ) ) ( SBAR ( WHNP-194 ( WDT that ) ) ( S ( VP ( VBZ weighs ) ( NP ( NP ( RB just ) ( CD 2.7 ) ( NNS pounds ) ) ( ADJP ( NP-ADV ( DT a ) ( NN pound ) ) ( JJR less ) ( SBAR ( IN than ) ( S ( NP-SBJ ( NP ( DT the ) ( JJS lightest ) ( NN mountain-bike ) ( NN frame ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

At a recent trade show convention-goers lined up to view a new Specialized bike frame that weighs just 2.7 pounds a pound less than the lightest mountain-bike frame on the market


( S ( PP-MNR ( IN By ) ( S-NOM ( VP ( VBG replacing ) ( NP ( NP ( DT the ) ( NN frame ) ( POS 's ) ) ( NN steel ) ( NNS lugs ) ) ( PP-CLR ( IN with ) ( NP ( NN titanium ) ( NNS ones ) ) ) ) ) ) ( NP-SBJ-1 ( NP ( NNP Mr. ) ( NNP Sinyard ) ( POS 's ) ) ( NN company ) ) ( VP ( VBZ plans ) ( S ( VP ( TO to ) ( VP ( VB make ) ( S ( NP-SBJ ( NP ( PRP$ its ) ( JJ next ) ( NN generation ) ) ( PP ( IN of ) ( NP ( NNS frames ) ) ) ) ( ADJP-PRD ( RB even ) ( JJR lighter ) ) ) ) ) ) ) )

By replacing the frame 's steel lugs with titanium ones Mr. Sinyard 's company plans to make its next generation of frames even lighter


( S ( PP-LOC ( IN At ) ( NP ( DT the ) ( NN trade ) ( NN show ) ) ) ( NP-SBJ ( NNP Specialized ) ) ( ADVP ( RB also ) ) ( VP ( VBD unveiled ) ( NP ( NP ( DT a ) ( JJ revolutionary ) ( JJ three-spoked ) ( NN bike ) ( NN wheel ) ) ( VP ( VBD developed ) ( ADVP-MNR ( RB jointly ) ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Specialized ) ) ( CC and ) ( NP ( NNP Du ) ( NNP Pont ) ( NNP Co ) ) ) ) ) ) ) )

At the trade show Specialized also unveiled a revolutionary three-spoked bike wheel developed jointly by Specialized and Du Pont Co


( S ( S-TPC-3 ( S-ADV ( VP ( VBN Made ) ( PP-CLR ( IN of ) ( NP ( JJ space-age ) ( NNS materials ) ) ) ) ) ( NP-SBJ-2 ( DT the ) ( NN wheel ) ( NNS spokes ) ) ( VP ( VBP are ) ( VP ( VBN designed ) ( PP-CLR ( IN like ) ( NP ( NN airplane ) ( NNS wings ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB shave ) ( NP ( CD 10 ) ( NNS minutes ) ) ( PP-LOC-CLR ( IN off ) ( NP ( NP ( DT the ) ( NN time ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN rider ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( JJ 100-mile ) ( NN race ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBZ claims ) ) )

Made of space-age materials the wheel spokes are designed like airplane wings to shave 10 minutes off the time of a rider in a 100-mile race the company claims


( S ( NP-SBJ ( PRP It ) ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBZ costs ) ( NP ( CD 750 ) ) ( SBAR-ADV ( IN though ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Sinyard ) ) ( VP ( VBZ thinks ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN price ) ) ( VP ( MD can ) ( VP ( VB be ) ( VP ( VBN reduced ) ( PP-TMP ( IN within ) ( NP ( CD three ) ( NNS years ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( IN between ) ( CD 200 ) ( CC and ) ( CD 250 ) ) ) ) ) ) ) ) ) ) ) ) ) )

It currently costs 750 though Mr. Sinyard thinks the price can be reduced within three years to between 200 and 250


( S ( NP-SBJ-1 ( PRP He ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB slash ) ( NP ( NP ( DT the ) ( NN price ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( ADJP ( RBS least ) ( JJ expensive ) ) ( NN mountain ) ( NN bike ) ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 279 ) ) ) ( PP-DIR ( IN from ) ( NP ( CD 750 ) ) ) ( X ( IN in ) ) ) ) ) ) ) )

He was able to slash the price of the company 's least expensive mountain bike to 279 from 750 in


( S ( CC But ) ( NP-SBJ-1 ( NP ( NNS demands ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN creativity ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ certain ) ( S ( VP ( TO to ) ( VP ( VB grow ) ) ) ) ) ) )

But demands on the company 's creativity are certain to grow


( S ( NP-SBJ ( NN Competition ) ) ( VP ( VBZ is ) ( VP ( VBG intensifying ) ( SBAR-TMP ( RB as ) ( S ( NP-SBJ ( JJR larger ) ( NNS companies ) ) ( VP ( VBP invade ) ( NP ( NP ( DT a ) ( NN mountain-bike ) ( NN market ) ) ( SBAR ( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Sinyard ) ( POS 's ) ) ( NN company ) ) ( ADVP-TMP ( RB once ) ) ( VP ( VBD had ) ( ADVP ( RB virtually ) ) ( NP ( NP ( RB all ) ) ( PP ( TO to ) ( NP ( PRP itself ) ) ) ) ) ) ) ) ) ) ) ) ) )

Competition is intensifying as larger companies invade a mountain-bike market Mr. Sinyard 's company once had virtually all to itself


( S ( NP-SBJ ( NNP U.S. ) ( NNP Cycling ) ( NNP Federation ) ( NN official ) ( NNP Philip ) ( NNP Milburn ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( NN mountain ) ( NN biking ) ) ( VP ( VBZ is ) ( VP ( VBG growing ) ( PP-MNR ( IN at ) ( NP ( NP ( PDT such ) ( DT a ) ( JJ monstrous ) ( NN rate ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT a ) ( NN lot ) ) ( PP ( IN of ) ( NP ( NNS companies ) ) ) ) ( VP ( VBP are ) ( VP ( VBG getting ) ( PP-CLR ( IN into ) ( NP ( DT this ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

U.S. Cycling Federation official Philip Milburn says mountain biking is growing at such a monstrous rate that a lot of companies are getting into this


( S ( NP-SBJ ( NP ( NN One ) ( ADJP ( RB especially ) ( JJ coveted ) ) ( NNP Specialized ) ( NN market ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( JJ new ) ( NNS players ) ) ( VP ( VBP are ) ( VP ( VBG targeting ) ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NN mountain-bike ) ( NNS accessories ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Eidsmo ) ) ( VP ( VBZ calls ) ( S ( NP-PRD ( NP ( DT the ) ( NN future ) ) ( PP ( IN of ) ( NP ( PRP$ our ) ( NN business ) ) ) ) ) ) ) ) ) ) )

One especially coveted Specialized market the new players are targeting is mountain-bike accessories which Mr. Eidsmo calls the future of our business


( S ( S ( NP-SBJ ( NNS Accessories ) ) ( CONJP ( RB not ) ( RB only ) ) ( VP ( VBP sell ) ( ADVP-MNR ( ADVP ( RBR faster ) ) ( PP ( IN than ) ( NP ( JJ whole ) ( NNS bikes ) ) ) ) ) ) ( S ( NP-SBJ ( PRP they ) ) ( ADVP ( RB also ) ) ( VP ( VBP offer ) ( NP ( NP ( NN profit ) ( NNS margins ) ) ( ADVP ( RB nearly ) ( RB double ) ( NP ( NP ( DT the ) ( QP ( CD 25 ) ( NN % ) ( TO to ) ( CD 30 ) ( NN % ) ( CC or ) ( RB so ) ) ) ( PP ( IN on ) ( NP ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( JJ complete ) ( NNS cycles ) ) ) ) ) ) ) ) ) ) )

Accessories not only sell faster than whole bikes they also offer profit margins nearly double the 25 % to 30 % or so on sales of complete cycles


( S ( S-PRP ( VP ( TO To ) ( VP ( VB get ) ( NP ( NP ( DT a ) ( NN piece ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN business ) ) ) ) ) ) ) ( NP-SBJ-1 ( NP ( NNP Nike ) ( NNP Inc. ) ) ( NP-LOC ( NP ( NNP Beaverton ) ) ( NP ( NNP Ore. ) ) ) ) ( VP ( VBD introduced ) ( NP ( NP ( DT a ) ( NN line ) ) ( PP ( IN of ) ( NP ( NN mountain-bike ) ( NNS shoes ) ) ) ) ) )

To get a piece of the business Nike Inc. Beaverton Ore. introduced a line of mountain-bike shoes


( S ( ADVP-TMP ( NP ( RB About ) ( DT a ) ( NN month ) ) ( RB ago ) ) ( NP-SBJ-1 ( NP ( NNP Michelin ) ( NNP Tire ) ( NNP Corp. ) ) ( NP-LOC ( NP ( NNP Greenville ) ) ( NP ( NNP S.C. ) ) ) ) ( VP ( VBD began ) ( S ( VP ( VBG selling ) ( NP ( NP ( NN mountain-bike ) ( NNS tires ) ) ( RRC ( PP-TMP ( IN for ) ( NP ( NNS years ) ) ) ( NP ( DT a ) ( NNP Specialized ) ( NN stronghold ) ) ) ) ) ) ) )

About a month ago Michelin Tire Corp. Greenville S.C. began selling mountain-bike tires for years a Specialized stronghold


( S ( NP-SBJ ( NP ( NN Competition ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN sale ) ) ( PP ( IN of ) ( NP ( JJ complete ) ( NNS bikes ) ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG heating ) ( PRT ( RP up ) ) ( ADVP ( RB too ) ) ) ) )

Competition in the sale of complete bikes is heating up too


( S ( NP-SBJ ( NP ( NNP Trek ) ( NNP Bicycle ) ( NNP Corp. ) ) ( SBAR ( WHNP-195 ( WDT which ) ) ( S ( VP ( VBZ accounts ) ( PP-CLR ( IN for ) ( NP ( NP ( NN one-quarter ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( QP ( CD 400 ) ( CD million ) ) ) ( PP ( IN in ) ( NP-LOC ( NP ( JJ annual ) ( NNS sales ) ) ( PP ( IN at ) ( NP ( NP ( PRP$ its ) ( JJ Milwaukee-based ) ( NN parent ) ) ( NP ( NNP Intrepid ) ( NNP Corp. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD entered ) ( NP ( DT the ) ( NN mountain-bike ) ( NN business ) ) ( PP-TMP ( IN in ) ( NP ( CD 1983 ) ) ) ) )

Trek Bicycle Corp. which accounts for one-quarter of the 400 million in annual sales at its Milwaukee-based parent Intrepid Corp. entered the mountain-bike business in 1983


( S ( S ( NP-SBJ ( NNP Trek ) ) ( ADVP-TMP ( RB previously ) ) ( VP ( VBD made ) ( NP ( JJ only ) ( JJ traditional ) ( NN road ) ( NNS bikes ) ) ) ) ( CC but ) ( SINV ( S-TPC-1 ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB take ) ( NP ( DT a ) ( NN rocket ) ( NN scientist ) ) ( S-2 ( VP ( TO to ) ( VP ( VB change ) ( NP ( DT a ) ( NN road ) ( NN bike ) ) ( PP-CLR ( IN into ) ( NP ( DT a ) ( NN mountain ) ( NN bike ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NP ( NNP Trek ) ( POS 's ) ) ( NN president ) ) ( NP ( NNP Dick ) ( NNP Burke ) ) ) ) )

Trek previously made only traditional road bikes but it did n't take a rocket scientist to change a road bike into a mountain bike says Trek 's president Dick Burke


( S ( NP-SBJ ( DT The ) ( NN segment ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBZ makes ) ( PRT ( RP up ) ) ( NP ( NP ( QP ( RB roughly ) ( NNS two-thirds ) ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ his ) ( NN company ) ( POS 's ) ) ( JJ total ) ( NNS sales ) ) ) ) ) )

The segment now makes up roughly two-thirds of his company 's total sales


( S ( PP-LOC ( IN At ) ( NP ( NP ( NNP Giant ) ( NNP Bicycle ) ( NNP Inc. ) ) ( NP-LOC ( NP ( NNP Rancho ) ( NNP Dominguez ) ) ( NP ( NNP Calif. ) ) ) ) ) ( NP-SBJ ( NNS sales ) ) ( VP ( VBP have ) ( VP ( VBN tripled ) ( SBAR-TMP ( IN since ) ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD entered ) ( NP ( DT the ) ( NNP U.S. ) ( NN mountain-bike ) ( NN business ) ) ( PP-TMP ( IN in ) ( NP ( CD 1987 ) ) ) ) ) ) ) ) )

At Giant Bicycle Inc. Rancho Dominguez Calif. sales have tripled since the company entered the U.S. mountain-bike business in 1987


( S ( NP-TPC-1 ( NP ( DT A ) ( NN subsidiary ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( JJ Taiwanese ) ( VBG holding ) ( NN company ) ) ( PP ( IN with ) ( NP ( NP ( JJ world-wide ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( QP ( CD 150 ) ( CD million ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NNP Giant ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( CD one ) ( NN example ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ sudden ) ( NN globalization ) ) ( PP ( IN of ) ( NP ( NP ( NNP Mr. ) ( NNP Sinyard ) ( POS 's ) ) ( JJ once-cozy ) ( NN market ) ( NN niche ) ) ) ) ) ) ) )

A subsidiary of a Taiwanese holding company with world-wide sales of 150 million Giant is one example of the sudden globalization of Mr. Sinyard 's once-cozy market niche


( S ( NP-SBJ-1 ( NP ( NNP Schwinn ) ( NNP Bicycle ) ( NNP Co. ) ) ( NP-LOC ( NNP Chicago ) ) ) ( VP ( VBD established ) ( NP ( NP ( JJ joint ) ( NNS ventures ) ) ( PP ( IN with ) ( NP ( NP ( NN bike ) ( NNS companies ) ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ mainland ) ( NNP China ) ) ( CC and ) ( NP ( NNP Hungary ) ) ) ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB sell ) ( NP ( NNS bikes ) ) ) ) ) ) )

Schwinn Bicycle Co. Chicago established joint ventures with bike companies in mainland China and Hungary to sell bikes


( S ( PP-TMP ( IN In ) ( NP ( DT the ) ( JJ past ) ( NN year ) ) ) ( NP-SBJ ( NP ( NNP Derby ) ( NNP International ) ( NNP Corp. ) ) ( NP-LOC ( NNP Luxembourg ) ) ) ( VP ( VBZ has ) ( VP ( VBN acquired ) ( NP ( NP ( ADJP ( JJ such ) ( JJ major ) ) ( NNS brands ) ) ( PP ( IN as ) ( NP ( NNP Peugeot ) ( NNP Raleigh ) ( CC and ) ( NNP Nishiki ) ) ) ) ) ) )

In the past year Derby International Corp. Luxembourg has acquired such major brands as Peugeot Raleigh and Nishiki


( S ( PP ( IN In ) ( NP ( NP ( NN response ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NN internationalization ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN business ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Sinyard ) ( POS 's ) ) ( NN company ) ) ( VP ( VBZ is ) ( VP ( VBG replacing ) ( NP ( JJ independent ) ( NNS distributors ) ( RB overseas ) ) ( PP-CLR ( IN with ) ( NP ( ADJP ( RB wholly ) ( VBN owned ) ) ( NNS subsidiaries ) ) ) ) ) )

In response to the internationalization of the business Mr. Sinyard 's company is replacing independent distributors overseas with wholly owned subsidiaries


( S ( NP-SBJ ( DT The ) ( NN move ) ) ( VP ( MD will ) ( VP ( VP ( VB cut ) ( PRT ( RP out ) ) ( NP ( NP ( DT the ) ( NN cost ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN middleman ) ) ) ) ) ( CC and ) ( VP ( VB give ) ( NP ( NNP Specialized ) ) ( NP ( NP ( JJR more ) ( NN control ) ) ( PP ( IN over ) ( NP ( NN marketing ) ( CC and ) ( NNS sales ) ) ) ) ) ) ) )

The move will cut out the cost of a middleman and give Specialized more control over marketing and sales


( S-1 ( CC But ) ( PRN ( SBAR ( IN as ) ( S ( NP-SBJ ( NP ( NNP Bill ) ( NNP Austin ) ) ( NP ( NP ( NNP Giant ) ( POS 's ) ) ( NN president ) ) ) ( VP ( VBZ puts ) ( NP ( PRP it ) ) ) ) ) ) ( PP ( IN With ) ( S-NOM ( NP-SBJ ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJR bigger ) ( NNS players ) ) ) ) ( VP ( VBG consolidating ) ( NP ( PRP$ their ) ( NN strength ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN game ) ) ( VP ( VBZ has ) ( VP ( VBN changed ) ) ) )

But as Bill Austin Giant 's president puts it With some of the bigger players consolidating their strength the game has changed


( S ( NP-SBJ ( NN Stock ) ( NNS prices ) ) ( VP ( VBD surged ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ-1 ( DT a ) ( JJ multibillion-dollar ) ( NN takeover ) ( NN proposal ) ) ( VP ( VBD helped ) ( S ( VP ( VB restore ) ( NP ( NP ( NP ( NN market ) ( NNS players ) ( POS ' ) ) ( NN confidence ) ) ( PP ( IN about ) ( NP ( NP ( DT the ) ( NNS prospects ) ) ( PP ( IN for ) ( NP ( JJ further ) ( NN deal-making ) ) ) ) ) ) ) ) ) ) ) ) )

Stock prices surged as a multibillion-dollar takeover proposal helped restore market players ' confidence about the prospects for further deal-making


( S ( NP-SBJ ( NN Paper ) ( CC and ) ( NNS forest-products ) ( NNS stocks ) ) ( VP ( VBD were ) ( ADJP-PRD ( RB especially ) ( JJ strong ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NP ( DT the ) ( NN offer ) ) ( PP ( IN for ) ( NP ( NNP Great ) ( NNP Northern ) ( NNP Nekoosa ) ) ) ( PP ( IN by ) ( NP ( NNP Georgia-Pacific ) ) ) ) ( VP ( VBD triggered ) ( NP ( NN speculation ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN industry ) ) ( VP ( MD could ) ( VP ( VB be ) ( PP-PRD ( IN in ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( NN wave ) ) ( PP ( IN of ) ( NP ( NN merger ) ( NN activity ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Paper and forest-products stocks were especially strong as the offer for Great Northern Nekoosa by Georgia-Pacific triggered speculation that the industry could be in for a wave of merger activity


( S ( NP-SBJ ( DT The ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( VP ( VBD climbed ) ( NP-EXT ( CD 41.60 ) ) ( PP-DIR ( TO to ) ( NP ( CD 2645.08 ) ) ) ( SBAR-ADV ( RB even ) ( IN though ) ( S ( NP-SBJ ( DT some ) ( JJ late ) ( NN selling ) ) ( VP ( VBD caused ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( TO to ) ( VP ( VB retreat ) ( PP-DIR ( IN from ) ( NP ( NN session ) ( NNS highs ) ) ) ) ) ) ) ) ) ) )

The Dow Jones Industrial Average climbed 41.60 to 2645.08 even though some late selling caused the market to retreat from session highs


( S ( NP-SBJ ( NN Trading ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ moderate ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( CD 176,100,000 ) ( NNS shares ) ) ( VP ( VBG changing ) ( NP-CLR ( NNS hands ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ) ) ) )

Trading was moderate with 176,100,000 shares changing hands on the New York Stock Exchange


( S ( PP ( RB Aside ) ( PP ( IN from ) ( NP ( DT the ) ( NN takeover ) ( NN news ) ) ) ) ( NP-SBJ-1 ( JJ big ) ( NN buy ) ( NNS orders ) ) ( VP ( VBD were ) ( VP ( VBN placed ) ( PP-CLR ( IN for ) ( NP ( JJ blue-chip ) ( NNS shares ) ) ) ( PP-TMP ( IN in ) ( NP ( NN afternoon ) ( NN trading ) ) ) ) ) )

Aside from the takeover news big buy orders were placed for blue-chip shares in afternoon trading


( S ( NP-SBJ ( NNS Traders ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN buy ) ( NNS programs ) ) ( VP ( VBD came ) ( PP-CLR ( IN from ) ( NP ( NP ( ADJP ( RB very ) ( JJ large ) ) ( JJ institutional ) ( NNS accounts ) ) ( SBAR ( WHNP-108 ( WDT that ) ) ( S ( VP ( VBD were ) ( ADVP ( RB also ) ) ( ADJP-PRD ( JJ active ) ( PP ( IN in ) ( NP ( DT the ) ( NN stock-index ) ( NNS futures ) ( NNS markets ) ) ) ) ) ) ) ) ) ) ) ) ) )

Traders said the buy programs came from very large institutional accounts that were also active in the stock-index futures markets


( S ( PP ( IN At ) ( NP ( CD one ) ( NN point ) ) ) ( NP-SBJ ( NP ( RB almost ) ( DT all ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS shares ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( JJ 20-stock ) ( NNP Major ) ( NNP Market ) ( NNP Index ) ) ( SBAR ( WHNP-109 ( WDT which ) ) ( S ( VP ( VBZ mimics ) ( NP ( DT the ) ( JJ industrial ) ( NN average ) ) ) ) ) ) ) ) ) ) ( VP ( VBD were ) ( ADJP-PRD ( RB sharply ) ( JJR higher ) ) ) )

At one point almost all of the shares in the 20-stock Major Market Index which mimics the industrial average were sharply higher


( S ( S ( NP-SBJ ( DT Some ) ( CD 1,111 ) ( NNP Big ) ( NNP Board ) ( NNS issues ) ) ( VP ( VBD advanced ) ( PP-CLR ( IN in ) ( NP ( NN price ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( RB only ) ( CD 448 ) ) ( VP ( VBD declined ) ( SBAR-TMP ( IN while ) ( S ( NP-SBJ ( JJR broader ) ( NN market ) ( NNS averages ) ) ( VP ( VBD rose ) ( ADVP-MNR ( RB sharply ) ) ) ) ) ) ) )

Some 1,111 Big Board issues advanced in price and only 448 declined while broader market averages rose sharply


( S ( S ( NP-SBJ ( NP ( NNP Standard ) ( CC & ) ( NNP Poor ) ( POS 's ) ) ( NNP 500-Stock ) ( NNP Index ) ) ( VP ( VBD climbed ) ( NP-EXT ( CD 5.29 ) ) ( PP-DIR ( TO to ) ( NP ( CD 340.36 ) ) ) ) ) ( S ( NP-SBJ ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Equity ) ( NNP Market ) ( NNP Index ) ) ( VP ( VBD added ) ( NP ( CD 4.70 ) ) ( PP-CLR ( TO to ) ( NP ( CD 318.79 ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( NNP Composite ) ( NNP Index ) ) ( VP ( VBD climbed ) ( NP-EXT ( CD 2.65 ) ) ( PP-DIR ( TO to ) ) ) ) )

Standard & Poor 's 500-Stock Index climbed 5.29 to 340.36 the Dow Jones Equity Market Index added 4.70 to 318.79 and the New York Stock Exchange Composite Index climbed 2.65 to


( S ( NP-SBJ ( NNP Great ) ( NNP Northern ) ) ( VP ( VBD surged ) ( NP-EXT ( CD 20 ) ( CD 1\/8 ) ) ( PP-DIR ( TO to ) ( NP ( CD 62 ) ( CD 7\/8 ) ) ) ( PP ( ADVP ( RB well ) ) ( IN above ) ( NP ( NP ( NP ( NNP Georgia-Pacific ) ( POS 's ) ) ( NN offering ) ( NN price ) ) ( PP ( IN of ) ( NP ( NP ( CD 58 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ( PP ( IN amid ) ( NP ( NN speculation ) ( SBAR ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( JJ other ) ( NNS suitors ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN company ) ) ) ) ( VP ( MD would ) ( VP ( VB surface ) ) ) ) ) ( CC or ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( DT the ) ( NN bid ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN raised ) ) ) ) ) ) ) ) ) ) )

Great Northern surged 20 1\/8 to 62 7\/8 well above Georgia-Pacific 's offering price of 58 a share amid speculation that other suitors for the company would surface or that the bid would be raised


( S ( NP-SBJ ( NP ( QP ( RB Nearly ) ( CD 6.3 ) ( CD million ) ) ( NNS shares ) ) ( CC or ) ( NP ( NP ( QP ( RB about ) ( CD 11.5 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ) ( VP ( VBD changed ) ( NP-CLR ( NNS hands ) ) ( PP-LOC ( IN in ) ( NP ( NNP Big ) ( NNP Board ) ( JJ composite ) ( NN trading ) ) ) ) )

Nearly 6.3 million shares or about 11.5 % of the company 's shares outstanding changed hands in Big Board composite trading


( S ( PP ( IN With ) ( S-NOM ( NP-SBJ-1 ( NNS stocks ) ) ( VP ( VBG having ) ( VP ( VBN been ) ( VP ( VBN battered ) ( ADVP-TMP ( RB lately ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( DT the ) ( NN collapse ) ) ( PP ( IN of ) ( NP ( NP ( NN takeover ) ( NNS offers ) ) ( PP ( IN for ) ( NP ( NP ( NP ( NNP UAL ) ) ( NP ( NP ( DT the ) ( NN parent ) ( NN company ) ) ( PP ( IN of ) ( NP ( NNP United ) ( NNPS Airlines ) ) ) ) ) ( CC and ) ( NP ( NP ( NNP AMR ) ) ( NP ( NP ( DT the ) ( NN parent ) ) ( PP ( IN of ) ( NP ( NNP American ) ( NNPS Airlines ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNS analysts ) ) ( VP ( VBD viewed ) ( NP ( DT the ) ( NN proposal ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( JJ psychological ) ( NN lift ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN market ) ) ) ) ) ) )

With stocks having been battered lately because of the collapse of takeover offers for UAL the parent company of United Airlines and AMR the parent of American Airlines analysts viewed the proposal as a psychological lift for the market


( SINV ( S-TPC-2 ( NP-SBJ ( NP ( DT The ) ( ADJP ( QP ( CD 3.18 ) ( CD billion ) ) ) ( NN bid ) ) ( SBAR ( WHNP-110 ( WDT which ) ) ( S ( VP ( VBD had ) ( VP ( VBN been ) ( VP ( VBN rumored ) ( PP-TMP ( IN since ) ( NP ( JJ last ) ( NN week ) ) ) ) ) ) ) ) ) ( VP ( VP ( VBZ creates ) ( NP ( DT a ) ( JJR better ) ( NN feeling ) ( SBAR ( IN that ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ 's ) ( NP-PRD ( NN value ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN market ) ) ) ( PP ( IN at ) ( NP ( JJ current ) ( NNS levels ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBZ renews ) ( NP ( NP ( NNS prospects ) ) ( PP ( IN for ) ( NP ( DT a ) ( JJ hot ) ( NN tape ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP A.C. ) ( NNP Moore ) ) ( NP ( NP ( NN director ) ) ( PP ( IN of ) ( NP ( NN research ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Argus ) ( NNP Research ) ( NNP Corp ) ) ) ) ) )

The 3.18 billion bid which had been rumored since last week creates a better feeling that there 's value in the market at current levels and renews prospects for a hot tape says A.C. Moore director of research at Argus Research Corp


( S ( NP-SBJ ( NP ( NNS Traders ) ( CC and ) ( NNS analysts ) ) ( ADVP ( RB alike ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN market ) ( POS 's ) ) ( NN surge ) ) ( ADVP ( RB also ) ) ( VP ( VBD reflected ) ( NP ( NP ( DT an ) ( NN easing ) ) ( PP ( IN of ) ( NP ( NP ( NNS concerns ) ) ( PP ( IN about ) ( NP ( NN volatility ) ) ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( NNS moves ) ) ( PP ( IN by ) ( NP ( NP ( DT a ) ( NN number ) ) ( PP ( IN of ) ( NP ( NN brokerage ) ( NNS firms ) ) ) ) ) ( S-1 ( VP ( TO to ) ( VP ( VB curtail ) ( CC or ) ( VB cease ) ( NP ( JJ stock-index ) ( NN arbitrage ) ) ) ) ) ) ) ) ) ) ) ) )

Traders and analysts alike said the market 's surge also reflected an easing of concerns about volatility because of moves by a number of brokerage firms to curtail or cease stock-index arbitrage


( S ( NP-SBJ-1 ( NP ( JJ Much ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN instability ) ) ( PP-LOC ( IN in ) ( NP ( NN stock ) ( NNS prices ) ) ) ) ) ) ( ADVP-TMP ( RB lately ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN blamed ) ( PP-CLR ( IN on ) ( NP ( NP ( NN arbitrage ) ( NN trading ) ) ( VP ( VBN designed ) ( S ( VP ( TO to ) ( VP ( VB profit ) ( PP-CLR ( IN from ) ( NP ( NP ( NNS differences ) ) ( PP-LOC ( IN in ) ( NP ( NNS prices ) ) ) ( PP ( IN between ) ( NP ( NP ( NNS stocks ) ) ( CC and ) ( NP ( NN index ) ( NNS futures ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Much of the instability in stock prices lately has been blamed on arbitrage trading designed to profit from differences in prices between stocks and index futures


( SINV ( S-TPC-2 ( NP-SBJ ( NNS People ) ) ( VP ( VBP are ) ( VP ( VBG looking ) ( PP-CLR ( IN for ) ( NP ( DT an ) ( NN ability ) ( S ( VP ( TO to ) ( VP ( VP ( VB try ) ( CC and ) ( VB read ) ( NP ( DT the ) ( NN market ) ) ) ( CONJP ( RB rather ) ( IN than ) ) ( VP ( VB be ) ( VP ( VBN manipulated ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Dudley ) ( NN A. ) ( NNP Eppel ) ) ( NP ( NP ( NN manager ) ) ( PP ( IN of ) ( NP ( NN equity ) ( NN trading ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Donaldson ) ( NNP Lufkin ) ( CC & ) ( NNP Jenrette ) ) ) ) ) )

People are looking for an ability to try and read the market rather than be manipulated said Dudley A. Eppel manager of equity trading at Donaldson Lufkin & Jenrette


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD noted ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ institutional ) ( NNS investors ) ) ( VP ( VBD showed ) ( NP ( NP ( RB pretty ) ( JJ general ) ( NN interest ) ) ( PP ( IN in ) ( NP ( NNS stocks ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJS latest ) ( NN session ) ) ) ) ) ) ) )

He noted that institutional investors showed pretty general interest in stocks in the latest session


( S ( CC But ) ( NP-SBJ ( NNS traders ) ) ( ADVP ( RB also ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( JJ arbitrage-related ) ( NN trading ) ) ( VP ( VBD contributed ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NN market ) ( POS 's ) ) ( NN surge ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NN buy ) ( NNS programs ) ) ( VP ( VBD boosted ) ( NP ( NNS prices ) ) ( PP-TMP ( PP ( ADVP ( RB shortly ) ) ( IN after ) ( NP ( DT the ) ( NN opening ) ) ) ( CC and ) ( PP ( ADVP ( RB sporadically ) ) ( IN through ) ( NP ( NP ( DT the ) ( NN remainder ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN session ) ) ) ) ) ) ) ) ) ) ) ) ) )

But traders also said arbitrage-related trading contributed to the market 's surge as buy programs boosted prices shortly after the opening and sporadically through the remainder of the session


( S ( S ( NP-SBJ ( NNP Georgia-Pacific ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 2 ) ( CD 1\/2 ) ) ( PP-DIR ( TO to ) ( NP ( CD 50 ) ( CD 7\/8 ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( JJS most ) ( NN paper ) ( CC and ) ( NNS forest-products ) ( NNS stocks ) ) ( VP ( VBD firmed ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NN market ) ( NNS players ) ) ( VP ( VBD speculated ) ( PP-CLR ( IN about ) ( NP ( JJ other ) ( JJ potential ) ( NN industry ) ( NN takeover ) ( NNS targets ) ) ) ) ) ) ) ) )

Georgia-Pacific fell 2 1\/2 to 50 7\/8 but most paper and forest-products stocks firmed as market players speculated about other potential industry takeover targets


( S ( PP-LOC ( IN Within ) ( NP ( DT the ) ( NN paper ) ( NN sector ) ) ) ( S ( NP-SBJ ( NNP Mead ) ) ( VP ( VBD climbed ) ( NP-EXT ( QP ( CD 2 ) ( CD 3\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 38 ) ( CD 3\/4 ) ) ) ) ( PP-LOC ( IN on ) ( NP ( QP ( CD 1.3 ) ( CD million ) ) ( NNS shares ) ) ) ) ) ( S ( NP-SBJ ( NNP Union ) ( NNP Camp ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 2 ) ( CD 3\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 37 ) ( CD 3\/4 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Federal ) ( NNP Paper ) ( NNP Board ) ) ( VP ( VBD added ) ( NP-EXT ( QP ( CD 1 ) ( CD 3\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 23 ) ( CD 7\/8 ) ) ) ) ) ) ( S ( NP-SBJ ( NN Bowater ) ) ( VP ( VBD gained ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/2 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 27 ) ( CD 1\/2 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Stone ) ( NNP Container ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 1 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 26 ) ( CD 1\/8 ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Temple-Inland ) ) ( VP ( VBD jumped ) ( NP-EXT ( QP ( CD 3 ) ( CD 3\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 62 ) ( CD 1\/4 ) ) ) ) ) ) )

Within the paper sector Mead climbed 2 3\/8 to 38 3\/4 on 1.3 million shares Union Camp rose 2 3\/4 to 37 3\/4 Federal Paper Board added 1 3\/4 to 23 7\/8 Bowater gained 1 1\/2 to 27 1\/2 Stone Container rose 1 to 26 1\/8 and Temple-Inland jumped 3 3\/4 to 62 1\/4


( S ( NP-SBJ ( NP ( NNS Forest-products ) ( NNS issues ) ) ( VP ( VBG showing ) ( NP ( NN strength ) ) ) ) ( VP ( VBD included ) ( NP ( NP ( NP-1 ( NNP Champion ) ( NNP International ) ) ( SBAR ( WHNP-111 ( WDT which ) ) ( S ( VP ( VBD went ) ( ADVP-2 ( RB up ) ( NP-ADV ( QP ( CD 1 ) ( CD 3\/8 ) ) ) ( PP ( TO to ) ( NP ( QP ( CD 31 ) ( CD 7\/8 ) ) ) ) ) ) ) ) ) ( NP ( NP=1 ( NNP Weyerhaeuser ) ) ( ADVP=2 ( RB up ) ( NP ( CD 3\/4 ) ) ( PP ( TO to ) ( NP ( QP ( CD 27 ) ( CD 1\/4 ) ) ) ) ) ) ( NP ( NP=1 ( NNP Louisiana-Pacific ) ) ( ADVP=2 ( RB up ) ( NP ( CD 1 ) ( CD 1\/8 ) ) ( PP ( TO to ) ( NP ( CD 40 ) ( CD 3\/8 ) ) ) ) ) ( CC and ) ( NP ( NP=1 ( NNP Boise ) ( NNP Cascade ) ) ( ADVP=2 ( RB up ) ( NP ( CD 5\/8 ) ) ( PP=3 ( TO to ) ( NP ( CD 42 ) ) ) ) ) ) ) )

Forest-products issues showing strength included Champion International which went up 1 3\/8 to 31 7\/8 Weyerhaeuser up 3\/4 to 27 1\/4 Louisiana-Pacific up 1 1\/8 to 40 3\/8 and Boise Cascade up 5\/8 to 42


( S ( NP-SBJ ( NP ( DT The ) ( NN theme ) ) ( PP ( IN of ) ( NP ( NN industry ) ( NN consolidation ) ) ) ) ( VP ( VBD had ) ( VP ( VBN surfaced ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN year ) ) ( PP-LOC ( IN among ) ( NP ( NP ( NN drug ) ( NNS stocks ) ) ( SBAR ( WHNP-112 ( WDT which ) ) ( S ( VP ( VBD posted ) ( NP ( JJ solid ) ( NNS gains ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJS latest ) ( NN session ) ) ) ) ) ) ) ) ) ) )

The theme of industry consolidation had surfaced earlier this year among drug stocks which posted solid gains in the latest session


( S ( S ( NP-SBJ ( NNP Pfizer ) ) ( VP ( VBN gained ) ( NP-EXT ( QP ( CD 1 ) ( CD 7\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 67 ) ( CD 5\/8 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Schering-Plough ) ) ( VP ( VBD added ) ( NP-EXT ( QP ( CD 2 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 75 ) ( CD 3\/4 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Eli ) ( NNP Lilly ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 1 ) ( CD 3\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 62 ) ( CD 1\/8 ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Upjohn ) ) ( VP ( VBD firmed ) ( NP-EXT ( CD 3\/4 ) ) ( PP-DIR ( TO to ) ( NP ( CD 38 ) ) ) ) ) )

Pfizer gained 1 7\/8 to 67 5\/8 Schering-Plough added 2 1\/4 to 75 3\/4 Eli Lilly rose 1 3\/8 to 62 1\/8 and Upjohn firmed 3\/4 to 38


( S ( ADVP ( RB Also ) ) ( NP-SBJ ( NNP SmithKline ) ( NNP Beecham ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 1 ) ( CD 3\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 39 ) ( CD 1\/2 ) ) ) ) ) )

Also SmithKline Beecham rose 1 3\/8 to 39 1\/2


( S ( NP-SBJ ( NP ( DT An ) ( JJ advisory ) ( NN committee ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Food ) ( CC and ) ( NNP Drug ) ( NNP Administration ) ) ) ) ( VP ( VBD recommended ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN agency ) ) ( VP ( VB approve ) ( NP ( NP ( NNP Eminase ) ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN heart ) ( NN drug ) ) ) ) ) ) ) )

An advisory committee of the Food and Drug Administration recommended that the agency approve Eminase the company 's heart drug


( S ( NP-SBJ ( NP ( CD Two ) ( JJ rumored ) ( NN restructuring ) ( NNS candidates ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN oil ) ( NN industry ) ) ) ) ( VP ( VBD moved ) ( RBR higher ) ( NP-1 ( NP ( NP ( NNP Chevron ) ) ( SBAR ( WHNP-113 ( WDT which ) ) ( S ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 1 ) ( CD 3\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 68 ) ( CD 1\/4 ) ) ) ) ( PP-LOC ( IN on ) ( NP ( QP ( CD 3.5 ) ( CD million ) ) ( NNS shares ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( NNP USX ) ) ( SBAR ( WHNP-114 ( WDT which ) ) ( S ( VP ( VBD gained ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 34 ) ) ( CD 5\/8 ) ) ) ) ) ) ) ) ) )

Two rumored restructuring candidates in the oil industry moved higher Chevron which rose 1 3\/4 to 68 1\/4 on 3.5 million shares and USX which gained 1 1\/4 to 34 5\/8


( S ( S ( NP-SBJ-1 ( NNP Pennzoil ) ) ( VP ( VBZ is ) ( VP ( VBN rumored ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBG accumulating ) ( NP ( NP ( DT a ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( NNP Chevron ) ) ) ) ( SBAR-PRP ( IN in ) ( NN order ) ( S ( VP ( TO to ) ( VP ( VB push ) ( PP-CLR ( IN for ) ( NP ( NP ( DT a ) ( NN revamping ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( NN investor ) ( NNP Carl ) ( NNP Icahn ) ) ( VP ( VBZ has ) ( ADVP-TMP ( RB recently ) ) ( VP ( VBN increased ) ( NP ( NP ( PRP$ his ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP USX ) ) ( SBAR ( WHNP-115 ( WDT which ) ) ( S ( ADVP ( RB separately ) ) ( VP ( VBD reported ) ( NP ( NP ( NNS earnings ) ) ( SBAR ( WHNP-116 ( WDT that ) ) ( S ( VP ( VBD were ) ( PP-PRD ( IN in ) ( NP ( NP ( NN line ) ) ( PP ( IN with ) ( NP ( NNS expectations ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Pennzoil is rumored to be accumulating a stake in Chevron in order to push for a revamping of the company investor Carl Icahn has recently increased his stake in USX which separately reported earnings that were in line with expectations


( S ( NP-SBJ-1 ( NP ( NNP Paramount ) ( NNP Communications ) ) ( SBAR ( WHNP-117 ( WDT which ) ) ( S ( VP ( VBD completed ) ( NP ( NP ( DT the ) ( ADJP ( QP ( CD 3.35 ) ( CD billion ) ) ) ( NN sale ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NNPS Associates ) ( NNP Corp ) ( NNS financial-services ) ( NN unit ) ) ) ( PP ( TO to ) ( NP ( NNP Ford ) ( NNP Motor ) ) ) ) ) ) ) ) ( VP ( VBD gained ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 55 ) ( CD 7\/8 ) ) ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG losing ) ( NP-ADV ( CD one ) ( NN point ) ) ( NP-TMP ( NNP Monday ) ) ( PP ( IN amid ) ( NP ( NP ( NNS rumors ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN delay ) ) ) ) ) ) ) ) ) )

Paramount Communications which completed the 3.35 billion sale of its Associates Corp financial-services unit to Ford Motor gained 1 1\/8 to 55 7\/8 after losing one point Monday amid rumors of a delay


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN sale ) ) ( VP ( MD would ) ( VP ( VB produce ) ( NP ( DT a ) ( ADJP ( QP ( CD 1.2 ) ( CD billion ) ) ) ( NN gain ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ fourth ) ( NN quarter ) ) ) ) ) ) ) ) )

The company said the sale would produce a 1.2 billion gain in the fourth quarter


( S ( NP-SBJ ( NNP BankAmerica ) ) ( VP ( VBD climbed ) ( NP-EXT ( CD 1 ) ( CD 3\/4 ) ) ( PP-DIR ( TO to ) ( NP ( CD 30 ) ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ ( NNP PaineWebber ) ) ( VP ( VBD boosted ) ( NP ( NP ( PRP$ its ) ( NN investment ) ( NN opinion ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NN stock ) ) ) ) ( PP-DIR ( TO to ) ( NP ( PRP$ its ) ( JJS highest ) ( NN rating ) ) ) ) ) ) ) )

BankAmerica climbed 1 3\/4 to 30 after PaineWebber boosted its investment opinion on the stock to its highest rating


( S ( NP-SBJ ( DT The ) ( NN upgrade ) ) ( VP ( VBD reflected ) ( NP ( NP ( DT the ) ( ADJP ( CD 20 ) ( NN % ) ) ( NN decline ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNS shares ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN bank ) ) ) ) ) ( SBAR ( IN since ) ( S ( NP-SBJ ( DT the ) ( NN firm ) ) ( VP ( VBD lowered ) ( NP ( PRP$ its ) ( NN rating ) ) ( PP-TMP ( IN in ) ( NP ( JJ early ) ( NNP October ) ) ) ( PP ( VBN based ) ( PP ( IN on ) ( NP ( DT the ) ( NN belief ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN stock ) ) ( VP ( VBD had ) ( VP ( VBN become ) ( ADJP-PRD ( JJ expensive ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The upgrade reflected the 20 % decline in shares of the bank since the firm lowered its rating in early October based on the belief the stock had become expensive


( S ( NP-SBJ ( NP ( NNP Sea ) ( NNPS Containers ) ) ( SBAR ( WHNP-118 ( WDT which ) ) ( S ( VP ( VBD unveiled ) ( NP ( DT a ) ( JJ proposed ) ( NN restructuring ) ) ) ) ) ) ( VP ( VBD advanced ) ( NP-EXT ( CD 1 ) ) ( PP-DIR ( TO to ) ( NP ( CD 62 ) ) ) ) )

Sea Containers which unveiled a proposed restructuring advanced 1 to 62


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( VP ( VP ( VBD repurchase ) ( NP ( NP ( NN half ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ common ) ( NNS shares ) ) ) ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 70 ) ) ( NP-ADV ( DT each ) ) ) ) ) ( VP ( VB sell ) ( NP ( NP ( DT an ) ( JJ estimated ) ( QP ( CD 1.1 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NNS assets ) ) ) ) ) ( CC and ) ( VP ( VB pay ) ( NP ( DT a ) ( JJ special ) ( JJ preferred-stock ) ( NN dividend ) ) ( PP-DTV ( TO to ) ( NP ( JJ common-stock ) ( NNS holders ) ) ) ) ) ) ) ) ) )

The company said it would repurchase half of its common shares at 70 each sell an estimated 1.1 billion in assets and pay a special preferred-stock dividend to common-stock holders


( S ( NP-SBJ ( NP ( NNP Shaw ) ( NNP Industries ) ) ( SBAR ( WHNP-119 ( WDT which ) ) ( S ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NP ( NNP Armstrong ) ( NNP World ) ( NNP Industries ) ( POS ' ) ) ( NN carpet ) ( NNS operations ) ) ( PP-CLR ( IN for ) ( NP ( DT an ) ( JJ undisclosed ) ( NN price ) ) ) ) ) ) ) ) ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 2 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 26 ) ( CD 1\/8 ) ) ) ) ) )

Shaw Industries which agreed to acquire Armstrong World Industries ' carpet operations for an undisclosed price rose 2 1\/4 to 26 1\/8


( S ( NP-SBJ ( NNP Armstrong ) ) ( VP ( VBD added ) ( NP-EXT ( CD 1\/8 ) ) ( PP-DIR ( TO to ) ( NP ( CD 39 ) ( CD 1\/8 ) ) ) ) )

Armstrong added 1\/8 to 39 1\/8


( S ( NP-SBJ ( NNP ERC ) ( NNP Corp. ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 7\/8 ) ) ( PP-DIR ( TO to ) ( NP ( CD 12 ) ) ) ) )

ERC Corp. rose 7\/8 to 12


( S ( NP-SBJ-1 ( DT The ) ( NN company ) ) ( VP ( VBD agreed ) ( S ( ADVP ( RB definitively ) ) ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN acquired ) ( PP ( IN by ) ( NP-LGS ( NNP Ogden ) ( NNP Corp. ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT a ) ( NN stock ) ( NN swap ) ) ( VP ( VBN valued ) ( PP-CLR ( IN at ) ( NP ( QP ( RB about ) ( CD 82.5 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) ) )

The company agreed definitively to be acquired by Ogden Corp. in a stock swap valued at about 82.5 million


( S ( NP-SBJ ( NNP Ogden ) ) ( VP ( VBD gained ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 32 ) ( CD 7\/8 ) ) ) ) ) )

Ogden gained 1 1\/4 to 32 7\/8


( S ( NP-SBJ ( NNP Ocean ) ( NNP Drilling ) ( CC & ) ( NNP Research ) ) ( VP ( VBD dropped ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 21 ) ( CD 1\/2 ) ) ) ) ( PP-TMP ( VBG following ) ( NP ( NP ( NN news ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN restructuring ) ( NN plan ) ) ( SBAR ( WHNP-120 ( WDT that ) ) ( S ( VP ( VBZ calls ) ( SBAR-CLR ( IN for ) ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( TO to ) ( VP ( VP ( VB reorganize ) ( NP ( PRP$ its ) ( NN drilling ) ( NN business ) ) ( PP-CLR ( IN into ) ( NP ( DT a ) ( JJ separate ) ( NN company ) ) ) ) ( CC and ) ( VP ( VB offer ) ( NP ( DT a ) ( QP ( CD 15 ) ( NN % ) ( TO to ) ( CD 20 ) ( NN % ) ) ( NN stake ) ) ( PP-DTV ( TO to ) ( NP ( DT the ) ( NN public ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Ocean Drilling & Research dropped 1 1\/4 to 21 1\/2 following news of a restructuring plan that calls for the company to reorganize its drilling business into a separate company and offer a 15 % to 20 % stake to the public


( S ( NP-SBJ ( DT The ) ( NNP American ) ( NNP Stock ) ( NNP Exchange ) ( NNP Market ) ( NNP Value ) ( NNP Index ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 1.71 ) ) ( PP-DIR ( TO to ) ( NP ( CD 370.58 ) ) ) ) )

The American Stock Exchange Market Value Index rose 1.71 to 370.58


( S ( NP-SBJ ( NN Volume ) ) ( VP ( VBD totaled ) ( NP-ADV ( CD 11,820,000 ) ( NNS shares ) ) ) )

Volume totaled 11,820,000 shares


( S ( NP-SBJ ( NNP Imperial ) ( NNP Holly ) ) ( VP ( VBD fell ) ( NP-EXT ( QP ( CD 1 ) ( CD 5\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 27 ) ( CD 1\/8 ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN wake ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ third-quarter ) ( NNS earnings ) ( NN report ) ) ) ) ) ) )

Imperial Holly fell 1 5\/8 to 27 1\/8 in the wake of its third-quarter earnings report


( S ( NP-SBJ ( JJ Net ) ( NN income ) ) ( VP ( VBD was ) ( ADVP-PRD ( RB down ) ( PP ( IN from ) ( ADVP-TMP ( ADVP ( NP ( DT a ) ( NN year ) ) ( RB ago ) ) ( SBAR ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( NP ( DT a ) ( NN gain ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( NN restructuring ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN retirement ) ( NN plan ) ) ) ) ) ) ( VP ( VBD boosted ) ( NP ( NNS earnigs ) ) ) ) ) ) ) ) ) )

Net income was down from a year ago when a gain from the restructuring of a retirement plan boosted earnigs


( S ( NP-SBJ ( NNP Santa ) ( NNP Fe ) ( NNP Pacific ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT the ) ( NN kind ) ) ( PP ( IN of ) ( NP ( NN story ) ) ) ( SBAR ( S ( NP-SBJ ( NNP Wall ) ( NNP Street ) ) ( VP ( VBD loved ) ) ) ) ) ) )

Santa Fe Pacific was the kind of story Wall Street loved


( S ( SBAR-PRP ( IN Since ) ( S ( NP-SBJ-1 ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NNS assets ) ) ) ) ( VP ( VBD was ) ( RB n't ) ( VP ( VBN known ) ) ) ) ) ( NP-SBJ-2 ( NNS analysts ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ free ) ( S ( VP ( TO to ) ( VP ( VB pick ) ( NP ( DT a ) ( NN number ) ) ) ) ) ) ) )

Since the value of its assets was n't known analysts were free to pick a number


( S ( PP-LOC ( IN In ) ( NP ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( JJ many ) ( JJ rosy ) ( NNS scenarios ) ) ) ) ) ( NP-SBJ ( NP ( NNP Bear ) ( NNP Stearns ) ( POS 's ) ) ( NNP Gary ) ( NNP Schneider ) ) ( VP ( VBD wrote ) ( PP-TMP ( IN in ) ( NP ( NNP March ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( PRP$ its ) ( JJ real ) ( NN estate ) ) ( ADJP ( RB alone ) ) ) ( VP ( VBD had ) ( NP ( NP ( DT a ) ( NN value ) ) ( PP ( IN of ) ( NP ( QP ( CD 4.5 ) ( CD billion ) ) ) ) ) ) ) ) ) )

In one of many rosy scenarios Bear Stearns 's Gary Schneider wrote in March that its real estate alone had a value of 4.5 billion


( S-1 ( S ( VP ( VB Throw ) ( PRT ( RP in ) ) ( NP ( PRP$ its ) ( NN railroad ) ( NNS minerals ) ( NN pipeline ) ( CC and ) ( NN oil ) ( NNS assets ) ) ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ( CC and ) ( NNS others ) ) ( VP ( VBD argued ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( JJ Chicago-based ) ( NN conglomerate ) ) ( VP ( MD should ) ( VP ( VB be ) ( PP-PRD ( IN worth ) ( NP ( NP ( CD 30 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) )

Throw in its railroad minerals pipeline and oil assets he and others argued and the Chicago-based conglomerate should be worth 30 a share


( SBARQ ( CC And ) ( WHADVP ( WRB why ) ) ( SQ ( MD should ) ( NP-SBJ-1 ( NNS holders ) ) ( VP ( VB expect ) ( S ( VP ( TO to ) ( VP ( VB realize ) ( NP ( IN that ) ( JJ presumed ) ( NN worth ) ) ) ) ) ) ) )

And why should holders expect to realize that presumed worth


( S ( NP-SBJ ( DT That ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT another ) ( NN reason ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNP Street ) ) ( VP ( VBD loved ) ( NP ( NNP Santa ) ( NNP Fe ) ) ) ) ) ) ) )

That was another reason the Street loved Santa Fe


( S ( PP ( IN With ) ( S-NOM ( NP-SBJ ( NP ( JJ real ) ( NN estate ) ( NNS experts ) ( NNP Olympia ) ( CC & ) ( NNP York ) ) ( CC and ) ( NP ( NP ( NNP Samuel ) ( NNP Zell ) ( POS 's ) ) ( NNP Itel ) ) ) ( VP ( VBG owning ) ( NP ( NP ( QP ( RB close ) ( TO to ) ( CD 40 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNP Santa ) ( NNP Fe ) ( POS 's ) ) ( NN stock ) ) ) ) ) ) ) ( NP-SBJ-1 ( NN management ) ) ( VP ( VBD was ) ( PP-PRD ( IN under ) ( NP ( NN pressure ) ( PRN ( PP-LOC ( IN in ) ( NP ( NP ( DT a ) ( JJ favored ) ( NN phrase ) ) ( PP ( IN of ) ( NP ( NNP Wall ) ( NNP Street ) ) ) ) ) ) ( S ( VP ( TO to ) ( ADVP-MNR ( RB quickly ) ) ( VP ( VB maximize ) ( NP ( NNS values ) ) ) ) ) ) ) ) )

With real estate experts Olympia & York and Samuel Zell 's Itel owning close to 40 % of Santa Fe 's stock management was under pressure in a favored phrase of Wall Street to quickly maximize values


( S-1 ( CC But ) ( NP-SBJ ( NN value ) ) ( PRN ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ turns ) ( PRT ( RP out ) ) ) ) ) ( VP ( VBZ is ) ( ADVP ( RB only ) ) ( SBAR-NOM-PRD ( WHNP-82 ( WP what ) ) ( S ( NP-SBJ ( DT a ) ( NN buyer ) ) ( VP ( MD will ) ( VP ( VB pay ) ) ) ) ) ) )

But value it turns out is only what a buyer will pay


( S ( CC And ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ recent ) ( NN announcement ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBG contemplating ) ( NP ( NP ( DT a ) ( JJ partial ) ( NN sale ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ real ) ( NN estate ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNS values ) ) ( ADVP-TMP ( RB suddenly ) ) ( VP ( VBP look ) ( ADJP-PRD ( JJR poorer ) ) ) )

And with the company 's recent announcement that it is contemplating a partial sale of its real estate the values suddenly look poorer


( S ( NP-SBJ ( NNP Santa ) ( NNP Fe ) ) ( VP ( VBZ has ) ( VP ( VBN disclosed ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBG negotiating ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( NP ( DT a ) ( ADJP ( CD 20 ) ( NN % ) ) ( NN interest ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ its ) ( JJ real ) ( NN estate ) ( NN unit ) ) ) ) ( PP-DTV ( TO to ) ( NP ( DT the ) ( NNP California ) ( NNP Public ) ( NNPS Employees ) ( NNP Retirement ) ( NNP System ) ) ) ( PP-CLR ( IN for ) ( NP ( QP ( RB roughly ) ( CD 400 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) ) ) )

Santa Fe has disclosed that it is negotiating to sell a 20 % interest in its real estate unit to the California Public Employees Retirement System for roughly 400 million


( S ( SBAR-PRP ( IN Since ) ( S ( NP-SBJ ( DT the ) ( JJ real ) ( NN estate ) ( NN unit ) ) ( ADVP ( RB also ) ) ( VP ( VBZ includes ) ( NP ( NN debt ) ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( JJ imputed ) ( NN value ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ real ) ( NN estate ) ) ( NP ( PRP itself ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( QP ( RB close ) ( TO to ) ( CD 3 ) ( CD billion ) ) ) ) )

Since the real estate unit also includes debt the imputed value of the real estate itself is close to 3 billion


( S ( S-1 ( NP-SBJ ( NP ( DT The ) ( JJ implied ) ( JJ current ) ( JJ net ) ( NN asset ) ( NN value ) ) ( PP ( IN of ) ( NP ( NP ( CD 22.70 ) ) ( PRN ( PP ( IN per ) ( NP ( NN share ) ) ) ) ) ) ) ( VP ( VBZ is ) ( PP-LOC-PRD ( ADVP ( RB well ) ) ( IN below ) ( NP ( NP ( DT the ) ( CD 30 ) ( NN level ) ) ( SBAR ( WHNP-83 ( WDT that ) ) ( S ( NP-SBJ ( DT the ) ( NNP Street ) ) ( VP ( VBD believed ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP PaineWebber ) ) ( VP ( VBZ says ) ) )

The implied current net asset value of 22.70 per share is well below the 30 level that the Street believed PaineWebber says


( S ( NP-SBJ ( DT The ) ( NN upside ) ) ( VP ( VBD was ) ( PP-LOC-PRD ( IN in ) ( NP ( NP ( DT the ) ( JJ intangible ) ( JJ real ) ( NN estate ) ) ( SBAR ( WHNP-84 ( WDT which ) ) ( S ( VP ( VBZ is ) ( ADVP-TMP ( RB no ) ( RBR longer ) ) ( NP-PRD ( DT an ) ( NN intangible ) ) ) ) ) ) ) ) )

The upside was in the intangible real estate which is no longer an intangible


( SBARQ ( RB So ) ( WHNP-1 ( WP what ) ) ( SQ ( VBZ is ) ( NP-SBJ ( NNP Santa ) ( NNP Fe ) ) ( ADJP-PRD ( IN worth ) ) ) )

So what is Santa Fe worth


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ-1 ( DT the ) ( NN railroad ) ) ( VP ( VBZ is ) ( VP ( VBN valued ) ( PP-MNR ( IN on ) ( NP ( DT a ) ( JJ private ) ( NN market ) ( NN basis ) ) ) ( PRN ( PP-CLR ( IN at ) ( NP ( NP ( DT the ) ( JJ same ) ( NN multiple ) ) ( PP ( IN of ) ( NP ( NNS earnings ) ) ) ( PP ( IN as ) ( PP ( IN in ) ( NP ( NP ( DT the ) ( JJ recent ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NNP CNW ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( VP ( VB have ) ( NP ( NP ( DT a ) ( NN value ) ) ( PP ( IN of ) ( NP ( QP ( CD 1.65 ) ( CD billion ) ) ) ) ) ) ) )

If the railroad is valued on a private market basis at the same multiple of earnings as in the recent sale of CNW it would have a value of 1.65 billion


( S ( NP-SBJ ( NP ( DT A ) ( NN compromise ) ) ( PP ( IN between ) ( NP ( NNS bulls ) ( CC and ) ( NNS bears ) ) ) ) ( VP ( VBZ puts ) ( NP ( VBG remaining ) ( NNS assets ) ( CC and ) ( NN cash ) ) ( PRN ( PP ( VBG including ) ( NP ( NP ( PRP$ its ) ( ADJP ( CD 44 ) ( NN % ) ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ its ) ( ADJP ( RB publicly ) ( VBN traded ) ) ( NN pipeline ) ) ) ) ) ) ( PP-PUT ( IN at ) ( NP ( CD 2 ) ( CD billion ) ) ) ) )

A compromise between bulls and bears puts remaining assets and cash including its 44 % stake in its publicly traded pipeline at 2 billion


( S ( NP-SBJ ( NNP Santa ) ( NNP Fe ) ) ( ADVP ( RB also ) ) ( VP ( VBZ has ) ( NP ( NP ( CD 3.7 ) ( CD billion ) ) ( PP ( IN in ) ( NP ( NN debt ) ) ) ) ) )

Santa Fe also has 3.7 billion in debt


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ ( PRP$ its ) ( NN railroad ) ) ( VP ( VBD lost ) ( NP ( NP ( DT a ) ( ADJP ( CD 750 ) ( CD million ) ) ( JJ antitrust ) ( NN suit ) ) ( SBAR ( SBAR ( WHNP-85 ( WDT which ) ) ( S ( VP ( VBZ is ) ( PP-PRD ( IN on ) ( NP ( NN appeal ) ) ) ) ) ) ( CC and ) ( SBAR ( WHNP-86 ( WDT which ) ) ( S ( NP-SBJ ( NNS analysts ) ) ( VP ( VB say ) ( SBAR ( S ( VP ( MD could ) ( VP ( VB be ) ( VP ( VBN settled ) ( PP-CLR ( IN for ) ( NP ( RB one-third ) ( DT that ) ( NN amount ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In addition its railroad lost a 750 million antitrust suit which is on appeal and which analysts say could be settled for one-third that amount


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ nets ) ( PRT ( RP out ) ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( RB about ) ( CD 17 ) ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN company ) ) ) ( PP ( IN on ) ( NP ( DT a ) ( JJ private ) ( NN market ) ( NN basis ) ) ) ) )

That nets out to about 17 a share for the company on a private market basis


( S ( CC But ) ( NP-SBJ-1 ( NP ( NNP Santa ) ( NNP Fe ) ) ( VP ( ADVP-TMP ( RB currently ) ) ( VBG trading ) ( PP-CLR ( IN at ) ( NP ( CD 18 ) ( CD 7\/8 ) ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB n't ) ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB realize ) ( NP ( JJ private ) ( NN market ) ( NNS values ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG selling ) ( NP ( NNS assets ) ) ) ) ) ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NP ( DT the ) ( NN tax ) ) ( PP ( IN against ) ( NP ( PRP it ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( ADJP-PRD ( JJ onerous ) ) ) ) ) ) ) )

But Santa Fe currently trading at 18 7\/8 is n't likely to realize private market values by selling assets because the tax against it would be onerous


( S ( NP-SBJ-1 ( PRP$ Its ) ( NN plan ) ) ( ADVP ( RB instead ) ) ( VP ( VBZ is ) ( S-PRD ( VP ( VP ( TO to ) ( VP ( VB spin ) ( PRT ( RP off ) ) ( NP ( NP ( DT the ) ( NN remainder ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ real ) ( NN estate ) ( NN unit ) ) ) ) ) ) ( CC and ) ( VP ( TO to ) ( ADVP ( RB possibly ) ) ( VP ( VB do ) ( NP ( DT the ) ( JJ same ) ) ( PP ( IN with ) ( NP ( PRP$ its ) ( NN mining ) ( CC and ) ( NN energy ) ( NNS assets ) ) ) ) ) ) ) ) )

Its plan instead is to spin off the remainder of its real estate unit and to possibly do the same with its mining and energy assets


( S ( NP-SBJ ( NP ( NNP Robert ) ( NNP D. ) ( NNP Krebs ) ) ( NP ( NP ( NNP Santa ) ( NNP Fe ) ( POS 's ) ) ( NN chairman ) ) ) ( VP ( VBZ argues ) ( SBAR ( IN that ) ( S ( SBAR-PRP ( IN since ) ( S ( NP-SBJ ( PRP$ its ) ( NNS businesses ) ) ( VP ( VBP are ) ( VP ( VBN valued ) ( PP-MNR ( IN in ) ( NP ( JJ different ) ( NNS ways ) ) ) ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN sum ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS parts ) ) ) ) ( VP ( MD may ) ( VP ( VB be ) ( ADJP-PRD ( ADJP ( JJR greater ) ) ( PP ( IN than ) ( NP ( DT the ) ( NN whole ) ) ) ) ) ) ) ) ) )

Robert D. Krebs Santa Fe 's chairman argues that since its businesses are valued in different ways the sum of the parts may be greater than the whole


( S ( CC But ) ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ is ) ( RB n't ) ( ADJP-PRD ( JJ clear ) ) ( SBAR-1 ( WHADVP-2 ( WRB why ) ) ( S ( NP-SBJ ( DT that ) ) ( VP ( MD should ) ( VP ( VB be ) ( ADVP-PRD ( RB so ) ) ) ) ) ) ) )

But it is n't clear why that should be so


( S ( NP-SBJ ( DT The ) ( NN spinoff ) ( NN argument ) ) ( PP ( IN after ) ( NP ( DT all ) ) ) ( VP ( VBZ reverses ) ( NP ( DT the ) ( JJ current ) ( NN notion ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNS assets ) ) ( VP ( VBP are ) ( ADJP-PRD ( IN worth ) ( NP-ADV ( NP ( NP ( JJR more ) ) ( PP ( TO to ) ( NP ( JJ private ) ( NNS buyers ) ) ) ) ( PP ( IN than ) ( PP ( TO to ) ( NP ( JJ public ) ( NNS shareholders ) ) ) ) ) ) ) ) ) ) ) )

The spinoff argument after all reverses the current notion that assets are worth more to private buyers than to public shareholders


( S ( CC And ) ( NP-SBJ ( JJ real ) ( NN estate ) ) ( ADVP ( RB usually ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBN traded ) ( ADVP-MNR ( RB well ) ) ( PP-LOC ( IN under ) ( NP ( JJ public ) ( NN ownership ) ) ) ) ) )

And real estate usually has n't traded well under public ownership


( S ( NP-SBJ ( NNP Salomon ) ( NNP Brothers ) ) ( VP ( VBZ says ) ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP believe ) ( SBAR ( S ( NP-SBJ ( DT the ) ( JJ real ) ( NN estate ) ( NNS properties ) ) ( VP ( MD would ) ( VP ( VB trade ) ( PP-MNR ( IN at ) ( NP ( DT a ) ( NN discount ) ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ ( DT the ) ( NN realty ) ( NN unit ) ) ( VP ( VBZ is ) ( VP ( VBN spun ) ( PRT ( RP off ) ) ) ) ) ) ) ) ) ) ) ) ) )

Salomon Brothers says We believe the real estate properties would trade at a discount after the realty unit is spun off


( SBAR ( CC And ) ( WP what ) ( IN about ) ( NP ( NP ( DT the ) ( NN cost ) ( CC and ) ( NN risk ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG waiting ) ( S ( VP ( TO to ) ( VP ( VB realize ) ( NP ( DT the ) ( JJ hypothetical ) ( JJ private ) ( NN market ) ( NNS values ) ) ) ) ) ) ) ) ) )

And what about the cost and risk of waiting to realize the hypothetical private market values


( S ( NP-SBJ ( DT Some ) ( NNS analysts ) ) ( VP ( VBP remain ) ( ADJP-PRD ( JJ bullish ) ) ) )

Some analysts remain bullish


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Schneider ) ) ( PP ( IN of ) ( NP ( NNP Bear ) ( NNP Stearns ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VP ( VBZ is ) ( VP ( VBG recalculating ) ( NP ( NP ( DT the ) ( NN worth ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNS assets ) ) ) ) ) ) ( CC and ) ( PRN ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN meantime ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG sticking ) ( PP-CLR ( TO to ) ( NP ( PRP$ his ) ( VB buy ) ( NN recommendation ) ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN belief ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( MD will ) ( VP ( VB find ) ( NP ( NP ( NNS values ) ) ( PP ( IN of ) ( NP ( NP ( CD 30 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Schneider of Bear Stearns says he is recalculating the worth of the company 's assets and in the meantime is sticking to his buy recommendation on the belief that he will find values of 30 a share


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ adds ) ( S ( SBAR-ADV ( IN If ) ( S ( PP-PRP ( IN for ) ( NP ( DT any ) ( NN reason ) ) ) ( NP-SBJ ( PRP I ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB have ) ( NP ( DT the ) ( NNS values ) ) ) ) ) ) ( ADVP ( RB then ) ) ( NP-SBJ ( PRP I ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB recommend ) ( NP ( PRP it ) ) ) ) ) ) )

He adds If for any reason I do n't have the values then I wo n't recommend it


( S ( NP-SBJ ( NP ( RB First ) ( NNP Boston ) ( POS 's ) ) ( NNP Graeme ) ( NNP Anne ) ( NNP Lidgerwood ) ) ( VP ( VBZ values ) ( NP ( NNP Santa ) ( NNP Fe ) ) ( PP-CLR ( IN at ) ( NP ( CD 24 ) ) ) ( ADVP ( RB down ) ( PP ( IN from ) ( NP ( NP ( PRP$ her ) ( JJR earlier ) ( NN estimate ) ) ( PP ( IN of ) ( NP ( CD 29 ) ) ) ) ) ) ) )

First Boston 's Graeme Anne Lidgerwood values Santa Fe at 24 down from her earlier estimate of 29


( S ( NP-SBJ ( PRP$ Her ) ( JJ recent ) ( NN report ) ) ( VP ( VBZ classifies ) ( NP ( DT the ) ( NN stock ) ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( VB hold ) ) ) ) )

Her recent report classifies the stock as a hold


( S ( CC But ) ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ appears ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( NP ( DT the ) ( NN sort ) ) ( PP ( IN of ) ( NP ( NN hold ) ) ) ( SBAR ( S ( NP-SBJ-3 ( CD one ) ) ( VP ( VBZ makes ) ( SBAR-TMP ( IN while ) ( S ( VP ( VBG heading ) ( PP-DIR ( IN for ) ( NP ( DT the ) ( NN door ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But it appears to be the sort of hold one makes while heading for the door


( S ( S ( VP ( VBG Quoting ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( NN report ) ) ) ) ) ( S ( NP-SBJ ( NP ( NP ( DT The ) ( NN stock ) ( POS 's ) ) ( JJ narrow ) ( NN discount ) ) ( PP ( TO to ) ( NP ( NN asset ) ( NN valuation ) ) ) ) ( VP ( VBZ makes ) ( S ( NP-SBJ ( PRP it ) ) ( NP-PRD ( NP ( DT a ) ( RB relatively ) ( JJ unappealing ) ( NN investment ) ) ( PP-LOC ( IN at ) ( NP ( JJ current ) ( NNS prices ) ) ) ) ) ( PP ( ADVP ( RB especially ) ) ( VBN given ) ( NP ( DT the ) ( NN risk ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP$ our ) ( NNS projections ) ) ( VP ( MD could ) ( VP ( VB be ) ( PP-PRD ( IN on ) ( NP ( DT the ) ( JJ aggressive ) ( NN side ) ) ) ) ) ) ) ) ) ) ) )

Quoting from the report The stock 's narrow discount to asset valuation makes it a relatively unappealing investment at current prices especially given the risk that our projections could be on the aggressive side


( S ( NP-SBJ ( NNP Chairman ) ( NNP Krebs ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNP California ) ( NN pension ) ( NN fund ) ) ( VP ( VBZ is ) ( VP ( VBG getting ) ( NP ( NP ( DT a ) ( NN bargain ) ( NN price ) ) ( SBAR ( WHNP-87 ( WDT that ) ) ( S ( VP ( MD would ) ( RB n't ) ( VP ( VB have ) ( VP ( VBN been ) ( VP ( VBN offered ) ( PP-DTV ( TO to ) ( NP ( NNS others ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Chairman Krebs says the California pension fund is getting a bargain price that would n't have been offered to others


( S ( PP ( IN In ) ( NP ( JJ other ) ( NNS words ) ) ) ( NP-SBJ ( DT The ) ( JJ real ) ( NN estate ) ) ( VP ( VBZ has ) ( NP ( NP ( DT a ) ( JJR higher ) ( NN value ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( DT the ) ( JJ pending ) ( NN deal ) ) ( VP ( VBZ suggests ) ) ) ) ) ) )

In other words The real estate has a higher value than the pending deal suggests


( S ( SBAR-PRP ( IN Since ) ( S ( NP-SBJ ( NP ( JJS most ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN unit ) ( POS 's ) ) ( JJ real ) ( NN estate ) ) ) ) ( VP ( VBZ is ) ( PP-PRD ( IN in ) ( NP ( NNP California ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN pension ) ( NN fund ) ) ( VP ( MD will ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( JJ useful ) ( JJ political ) ( NN ally ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT a ) ( NN state ) ) ( SBAR ( WHADVP-1 ( WRB where ) ) ( S ( NP-SBJ-2 ( NN development ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB often ) ) ( VP ( VBN held ) ( NP-CLR ( NP ( NN hostage ) ) ( PP ( TO to ) ( NP ( NN zoning ) ( NNS boards ) ) ) ) ) ) ) ) ) ) ) ) )

Since most of the unit 's real estate is in California the pension fund will be a useful political ally in a state where development is often held hostage to zoning boards


( S-2 ( CC And ) ( PRN ( SBAR ( IN as ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Zell ) ) ( VP ( VBZ says ) ) ) ) ) ( SBAR-ADV ( IN with ) ( S ( NP-SBJ ( NP ( NNP Itel ) ) ( CC and ) ( NP ( NNP O&Y ) ) ) ( PP-LOC-PRD ( IN on ) ( NP ( NP ( DT the ) ( NN unit ) ( POS 's ) ) ( NN board ) ) ) ) ) ( NP-SBJ-1 ( DT the ) ( JJ real ) ( NN estate ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN run ) ( PP ( IN by ) ( NP-LGS ( DT a ) ( RB very ) ( JJ unusual ) ( NN group ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB say ) ( NP ( DT the ) ( JJS least ) ) ) ) ) ) ) ) )

And as Mr. Zell says with Itel and O&Y on the unit 's board the real estate will be run by a very unusual group to say the least


( S ( NP-SBJ ( NP ( PRP It ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ possible ) ) ( ADVP ( RB then ) ) ( SBAR-1 ( IN that ) ( S ( NP-SBJ ( NP ( NNP Santa ) ( NNP Fe ) ( POS 's ) ) ( JJ real ) ( NN estate ) ) ( PRN ( PP-LOC ( ADVP ( RB even ) ) ( IN in ) ( NP ( NP ( DT a ) ( NN state ) ) ( VP ( VBN imperiled ) ( PP ( IN by ) ( NP-LGS ( NNS earthquakes ) ) ) ) ) ) ) ( VP ( MD could ) ( NP-TMP ( CD one ) ( NN day ) ) ( VP ( VB fetch ) ( NP ( NP ( DT a ) ( NN king ) ( POS 's ) ) ( NN ransom ) ) ) ) ) ) ) )

It is possible then that Santa Fe 's real estate even in a state imperiled by earthquakes could one day fetch a king 's ransom


( S-1 ( CC But ) ( PRN ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( NNP Drexel ) ( NN analyst ) ( NNP Linda ) ( NNP Dunn ) ) ( VP ( S ( VP ( VBZ notes ) ) ) ) ) ) ) ( NP-SBJ-2 ( PRP$ its ) ( NNS properties ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN developed ) ( PP-TMP ( IN over ) ( NP ( QP ( CD 15 ) ( TO to ) ( CD 20 ) ) ( NNS years ) ) ) ) ) ) )

But as Drexel analyst Linda Dunn notes its properties will be developed over 15 to 20 years


( S ( RB So ) ( PP ( IN despite ) ( NP ( NP ( NP ( NNP Wall ) ( NNP Street ) ( POS 's ) ) ( JJ rosy ) ( NN talk ) ) ( PP ( IN of ) ( S-NOM ( VP ( ADVP-MNR ( RB quickly ) ) ( VBG maximizing ) ( NP ( NNS values ) ) ) ) ) ) ) ( NP-SBJ ( NNS holders ) ) ( VP ( MD could ) ( VP ( VB be ) ( PP-PRD ( IN in ) ( PP ( IN for ) ( NP ( DT a ) ( JJ long ) ( NN wait ) ) ) ) ) ) )

So despite Wall Street 's rosy talk of quickly maximizing values holders could be in for a long wait


( NP-HLN ( NP ( NNP Santa ) ( NNP Fe ) ( NNP Pacific ) ) ( PRN ( NP ( NNP NYSE ) ) ( NP ( NP ( NN Symbol ) ) ( NP ( NNP SFX ) ) ) ) )

Santa Fe Pacific NYSE Symbol SFX


( FRAG ( NP ( NP ( NN Business ) ) ( NP ( NP ( NN Railroad ) ) ( NP ( JJ natural ) ( NNS resources ) ) ( CC and ) ( NP ( JJ real ) ( NN estate ) ) ) ) )

Business Railroad natural resources and real estate


( NP-HLN ( NP ( NN Year ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP Dec. ) ( CD 31 ) ( CD 1988 ) ) ) )

Year ended Dec. 31 1988


( FRAG ( NP ( NP ( NN Revenue ) ) ( NP ( CD 3.14 ) ( CD billion ) ) ) )

Revenue 3.14 billion


( NP ( NP ( JJ Net ) ( NN loss ) ) ( NP ( NP ( QP ( CD 46.5 ) ( CD million ) ) ) ( NP ( NP ( CD 30 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) )

Net loss 46.5 million 30 cents a share


( NP-HLN ( NP ( NP ( JJ Third ) ( NN quarter ) ) ( NP ( NNP Sept. ) ( CD 30 ) ( CD 1989 ) ) ) )

Third quarter Sept. 30 1989


( FRAG ( NP ( NP ( NP ( JJ Net ) ( NN income ) ) ( NP ( NP ( CD 21 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP ( FW vs. ) ( NP ( NP ( JJ net ) ( NN loss ) ) ( PP ( IN of ) ( NP ( NP ( CD 4.11 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) )

Net income 21 cents a share vs. net loss of 4.11 a share


( NP ( NP ( JJ Average ) ( JJ daily ) ( NN trading ) ( NN volume ) ) ( NP ( CD 344,354 ) ( NNS shares ) ) )

Average daily trading volume 344,354 shares


( S ( NP-SBJ ( NP ( NNP Rally ) ( POS 's ) ) ( NN Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD adopted ) ( NP ( DT a ) ( NNS shareholders ) ( NNS rights ) ( NN plan ) ( S ( VP ( TO to ) ( VP ( VB protect ) ( NP ( NNS shareholders ) ) ( PP-CLR ( IN from ) ( NP ( DT an ) ( ADJP ( RB inadequately ) ( VBN priced ) ) ( NN takeover ) ( NN offer ) ) ) ) ) ) ) ) ) ) ) )

Rally 's Inc. said it adopted a shareholders rights plan to protect shareholders from an inadequately priced takeover offer


( S ( NP-SBJ ( DT The ) ( NN plan ) ) ( VP ( VBZ provides ) ( PP-CLR ( IN for ) ( NP ( NP ( DT the ) ( NN distribution ) ) ( PP ( IN of ) ( NP ( CD one ) ( JJ common ) ( JJ stock-purchase ) ( NN right ) ) ) ( PP ( IN as ) ( NP ( NP ( DT a ) ( NN dividend ) ) ( PP ( IN for ) ( NP ( NP ( DT each ) ( NN share ) ) ( PP ( IN of ) ( NP ( NP ( JJ common ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ) ) ) ) ) ) )

The plan provides for the distribution of one common stock-purchase right as a dividend for each share of common outstanding


( S ( NP-SBJ ( DT Each ) ( NN right ) ) ( VP ( VBZ entitles ) ( S ( NP-SBJ ( NNS shareholders ) ) ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NP ( JJ one-half ) ( NN share ) ) ( PP ( IN of ) ( NP ( JJ common ) ) ) ) ( PP-CLR ( IN for ) ( NP ( CD 30 ) ) ) ) ) ) ) )

Each right entitles shareholders to buy one-half share of common for 30


( S ( NP-TMP ( RBR Earlier ) ( DT this ) ( NN month ) ) ( NP-SBJ ( NP ( DT a ) ( NN group ) ) ( VP ( VBN led ) ( PP ( IN by ) ( NP-LGS ( NP ( NP ( CD three ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNS directors ) ) ) ) ( NP ( NP ( NNP Burt ) ( NNP Sugarman ) ) ( NP ( NNP James ) ( NNP M. ) ( NNP Trotter ) ( NNP III ) ) ( CC and ) ( NP ( NNP Willam ) ( NNP E. ) ( NNP Trotter ) ( NNP II ) ) ) ) ) ) ) ( VP ( VBD indicated ) ( SBAR ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD had ) ( NP ( NP ( DT a ) ( ADJP ( CD 45.2 ) ( NN % ) ) ( NN stake ) ) ( PP ( IN in ) ( NP ( DT the ) ( NAC-LOC ( NNP Louisville ) ( NNP Ky. ) ) ( NN fast-food ) ( NN company ) ) ) ) ) ) ) ( CC and ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD planned ) ( S ( VP ( TO to ) ( VP ( VB seek ) ( NP ( NP ( DT a ) ( NN majority ) ) ( PP ( IN of ) ( NP ( NP ( NNS seats ) ) ( PP-LOC ( IN on ) ( NP ( NP ( NNP Rally ) ( POS 's ) ) ( JJ nine-member ) ( NN board ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Earlier this month a group led by three of the company 's directors Burt Sugarman James M. Trotter III and Willam E. Trotter II indicated it had a 45.2 % stake in the Louisville Ky. fast-food company and that it planned to seek a majority of seats on Rally 's nine-member board


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( VP ( VBN concerned ) ( PP-CLR ( IN about ) ( NP ( NP ( DT the ) ( JJ announced ) ( NN intent ) ( S ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) ) ) ( PP ( IN by ) ( NP ( DT a ) ( JJ Sugarman-led ) ( NN group ) ) ) ) ) ) ) ) ) ) )

The company said it was concerned about the announced intent to acquire control of the company by a Sugarman-led group


( S ( NP-SBJ ( DT A ) ( JJ shiny ) ( JJ new ) ( NN takeover ) ( NN deal ) ) ( VP ( VBD sparked ) ( NP ( NP ( DT a ) ( JJ big ) ( NN rally ) ) ( PP-LOC ( IN in ) ( NP ( NN stock ) ( NNS prices ) ) ) ( SBAR ( WHNP-53 ( WDT which ) ) ( S ( VP ( VBD buoyed ) ( NP ( DT the ) ( NN dollar ) ) ) ) ) ) ) )

A shiny new takeover deal sparked a big rally in stock prices which buoyed the dollar


( S ( NP-SBJ ( NN Bond ) ( NNS prices ) ) ( ADVP ( RB also ) ) ( VP ( VBD edged ) ( ADVP ( RBR higher ) ) ) )

Bond prices also edged higher


( S ( NP-SBJ-1 ( NP ( NP ( NNP Georgia-Pacific ) ( POS 's ) ) ( ADJP ( QP ( CD 3.18 ) ( CD billion ) ) ) ( NN bid ) ) ( PP ( IN for ) ( NP ( NNP Great ) ( NNP Northern ) ( NNP Nekoosa ) ) ) ) ( VP ( VBD helped ) ( S ( VP ( VB drive ) ( NP ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( ADVP-EXT ( RB up ) ( NP ( CD 41.60 ) ( NNS points ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 2645.08 ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( JJ active ) ( NN trading ) ) ) ) )

Georgia-Pacific 's 3.18 billion bid for Great Northern Nekoosa helped drive the Dow Jones Industrial Average up 41.60 points to 2645.08 in active trading


( S ( NP-SBJ ( DT The ) ( NN dollar ) ) ( VP ( VBD drew ) ( NP ( NN strength ) ) ( PP-CLR ( IN from ) ( NP ( NP ( DT the ) ( NN stock ) ( NN market ) ( POS 's ) ) ( NN climb ) ) ) ) )

The dollar drew strength from the stock market 's climb


( S ( NP-SBJ ( JJ Long-term ) ( NN bond ) ( NNS prices ) ) ( VP ( VBD rose ) ( PP ( IN despite ) ( NP ( NP ( NN trepidation ) ) ( PP ( IN about ) ( SBAR ( WHNP-1 ( WP what ) ) ( S ( NP-SBJ ( DT a ) ( JJ key ) ( JJ economic ) ( NN report ) ) ( VP ( MD will ) ( VP ( VB show ) ( NP-TMP ( NN today ) ) ) ) ) ) ) ) ) ) )

Long-term bond prices rose despite trepidation about what a key economic report will show today


( S ( NP-SBJ ( NNS Analysts ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN offer ) ) ( PP ( IN for ) ( NP ( NNP Great ) ( NNP Northern ) ( NNP Nekoosa ) ) ) ) ( VP ( VBD broke ) ( NP ( NP ( DT the ) ( NN pall ) ) ( SBAR ( WHNP-54 ( WDT that ) ) ( S ( VP ( VBD settled ) ( PP-LOC ( IN over ) ( NP ( DT the ) ( NN takeover ) ( NN business ) ) ) ( PP-TMP ( IN for ) ( NP ( DT the ) ( JJ past ) ( CD three ) ( NNS weeks ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN wake ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ collapsed ) ( NNP UAL ) ( NNP Corp ) ( NN buy-out ) ) ) ) ) ) ) ) ) ) ) ) ) )

Analysts said the offer for Great Northern Nekoosa broke the pall that settled over the takeover business for the past three weeks in the wake of the collapsed UAL Corp buy-out


( S ( NP-SBJ ( NNP Great ) ( NNP Northern ) ( NNP Nekoosa ) ) ( VP ( VBD soared ) ( NP-EXT ( NP ( CD 20.125 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 62.875 ) ) ) ( PP ( RB substantially ) ( IN above ) ( NP ( NP ( NP ( DT the ) ( CD 58 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( SBAR ( S ( NP-SBJ ( NNP Georgia-Pacific ) ) ( VP ( VBZ is ) ( VP ( VBG offering ) ) ) ) ) ) ) ) )

Great Northern Nekoosa soared 20.125 a share to 62.875 substantially above the 58 a share Georgia-Pacific is offering


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ indicates ) ( SBAR ( S ( NP-SBJ ( NNS speculators ) ) ( VP ( VBP are ) ( VP ( VBG betting ) ( SBAR ( S ( NP-SBJ ( DT a ) ( JJR higher ) ( NN offer ) ) ( VP ( VBZ is ) ( PP-LOC-PRD ( IN in ) ( NP ( DT the ) ( NNS wings ) ) ) ) ) ) ) ) ) ) ) )

That indicates speculators are betting a higher offer is in the wings


( S ( NP-SBJ ( NP ( NNS Prices ) ) ( PP ( IN of ) ( NP ( JJ other ) ( NN paper ) ( NNS makers ) ) ) ) ( VP ( VBD rose ) ( ADVP ( RB sharply ) ) ( SBAR-ADV ( IN although ) ( S ( NP-SBJ ( NNP Georgia-Pacific ) ) ( VP ( VBD fell ) ( NP-EXT ( NP ( CD 2.50 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 50.875 ) ) ) ) ) ) ) )

Prices of other paper makers rose sharply although Georgia-Pacific fell 2.50 a share to 50.875


( S ( PP ( IN Despite ) ( NP ( NP ( PDT all ) ( DT the ) ( NN furor ) ) ( PP ( IN over ) ( NP ( NN program ) ( NN trading ) ) ) ) ) ( NP-SBJ ( NN program ) ( NN trading ) ) ( VP ( VBD played ) ( NP ( DT a ) ( JJ big ) ( NN role ) ) ( PP-LOC-CLR ( IN in ) ( NP ( NP ( NN yesterday ) ( POS 's ) ) ( NN rally ) ) ) ) )

Despite all the furor over program trading program trading played a big role in yesterday 's rally


( S ( NP-SBJ ( DT Some ) ( NNS traders ) ) ( VP ( VBP point ) ( PRT ( RP out ) ) ( SBAR ( IN that ) ( S ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( DT the ) ( JJ big ) ( NN brokerage ) ( NNS firms ) ) ( VP ( VBP back ) ( PP-DIR ( IN out ) ( PP ( IN of ) ( NP ( NN program ) ( NN trading ) ) ) ) ( PP-PRP ( PP ( IN for ) ( NP ( PRP$ their ) ( JJ own ) ( NNS accounts ) ) ) ( CC or ) ( PP ( IN for ) ( NP ( NNS clients ) ) ) ) ) ) ) ( NP-SBJ ( NNS opportunities ) ) ( VP ( VBP increase ) ( SBAR-1 ( IN for ) ( S ( NP-SBJ ( NNS others ) ) ( VP ( TO to ) ( VP ( VB engage ) ( PP-CLR ( IN in ) ( NP ( DT the ) ( JJ controversial ) ( NN practice ) ) ) ) ) ) ) ) ) ) ) )

Some traders point out that as the big brokerage firms back out of program trading for their own accounts or for clients opportunities increase for others to engage in the controversial practice


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( SBAR-PRD ( WHNP-55 ( WP what ) ) ( S ( VP ( VBD happened ) ( NP-TMP ( NN yesterday ) ) ) ) ) ) )

That 's what happened yesterday


( S ( S ( NP-SBJ ( DT The ) ( NN rally ) ) ( ADVP-PRD ( RB notwithstanding ) ) ) ( NP-SBJ ( EX there ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( NN plenty ) ) ( PP ( IN of ) ( NP ( NP ( NNS worries ) ) ( PP ( IN about ) ( NP ( NP ( DT the ) ( JJ short-term ) ( NN course ) ) ( PP ( IN of ) ( NP ( NN stock ) ( NNS prices ) ) ) ) ) ) ) ) ) )

The rally notwithstanding there are plenty of worries about the short-term course of stock prices


( S ( NP-SBJ ( NP ( DT A ) ( VBG slowing ) ( NN economy ) ) ( CC and ) ( NP ( NP ( PRP$ its ) ( NN effect ) ) ( PP ( IN on ) ( NP ( JJ corporate ) ( NNS earnings ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( JJ foremost ) ( NN concern ) ) ( PP ( IN of ) ( NP ( JJ many ) ( NNS traders ) ( CC and ) ( NNS analysts ) ) ) ) ) )

A slowing economy and its effect on corporate earnings is the foremost concern of many traders and analysts


( S ( SBAR-ADV ( IN Unless ) ( S ( NP-SBJ ( DT the ) ( NNP Federal ) ( NNP Reserve ) ) ( VP ( VBZ eases ) ( NP ( NN interest ) ( NNS rates ) ) ( ADVP-TMP ( RB soon ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB stimulate ) ( NP ( DT the ) ( NN economy ) ) ) ) ) ) ) ) ( NP-SBJ ( NNS profits ) ) ( VP ( MD could ) ( VP ( VB remain ) ( ADJP-PRD ( JJ disappointing ) ) ) ) )

Unless the Federal Reserve eases interest rates soon to stimulate the economy profits could remain disappointing


( S ( NP-SBJ ( NP ( NP ( NN Yesterday ) ( POS 's ) ) ( JJ major ) ( JJ economic ) ( NN news ) ) ( PRN ( NP ( NP ( DT a ) ( ADJP ( CD 0.2 ) ( NN % ) ) ( NN rise ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NNP September ) ( NN index ) ) ( PP ( IN of ) ( NP ( JJ leading ) ( JJ economic ) ( NNS indicators ) ) ) ) ) ) ) ) ( VP ( VBD had ) ( NP ( NP ( JJ little ) ( NN impact ) ) ( PP-LOC ( IN on ) ( NP ( JJ financial ) ( NNS markets ) ) ) ) ) )

Yesterday 's major economic news a 0.2 % rise in the September index of leading economic indicators had little impact on financial markets


( S ( CC But ) ( NP-SBJ ( NP ( NP ( DT the ) ( JJ next ) ( JJ important ) ( NN piece ) ) ( PP ( IN of ) ( NP ( NP ( NN news ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN economy ) ( POS 's ) ) ( NN health ) ) ) ) ) ) ( PRN ( NP ( NP ( NP ( DT this ) ( NN morning ) ( POS 's ) ) ( NN release ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( JJ national ) ( NN purchasing ) ( NN manager ) ( POS 's ) ) ( NN survey ) ) ( PP ( IN for ) ( NP ( NNP October ) ) ) ) ) ) ) ) ( VP ( MD could ) ( VP ( VB prompt ) ( NP ( NNS investors ) ) ( PP-CLR ( IN into ) ( NP ( NN action ) ) ) ) ) )

But the next important piece of news on the economy 's health this morning 's release of the national purchasing manager 's survey for October could prompt investors into action


( S ( NP-SBJ ( NP ( DT A ) ( NN report ) ) ( NP-TMP ( RB late ) ( NN yesterday ) ) ( SBAR-1 ( IN that ) ( S ( NP-SBJ ( DT the ) ( JJ Chicago-area ) ( NN purchasing ) ( NNS managers ) ( NN survey ) ) ( VP ( VBD showed ) ( NP ( NP ( JJ increased ) ( JJ economic ) ( NN activity ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT that ) ( NN part ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN country ) ) ) ) ) ) ) ) ) ) ( VP ( VBD cut ) ( PP-CLR ( IN into ) ( NP ( JJ bond-price ) ( NNS gains ) ) ) ) )

A report late yesterday that the Chicago-area purchasing managers survey showed increased economic activity in that part of the country cut into bond-price gains


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( DT the ) ( JJ national ) ( NN survey ) ) ( VP ( VBZ confirms ) ( NP ( NP ( DT a ) ( NN pickup ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN manufacturing ) ( NN sector ) ) ) ) ) ) ) ( NP-SBJ-1 ( PRP it ) ) ( VP ( MD could ) ( ADVP ( RBR further ) ) ( VP ( VB depress ) ( NP ( NN bond ) ( NNS prices ) ) ( SBAR-TMP ( IN while ) ( S ( VP ( VBG bolstering ) ( NP ( NP ( NN stock ) ( NNS prices ) ) ( CC and ) ( NP ( DT the ) ( NN dollar ) ) ) ) ) ) ) ) )

If the national survey confirms a pickup in the manufacturing sector it could further depress bond prices while bolstering stock prices and the dollar


( S ( ADVP-TMP ( RB Meanwhile ) ) ( NP-SBJ ( NN bond ) ( NNS investors ) ) ( VP ( VBP are ) ( VP ( VBG laboring ) ( PP ( IN under ) ( NP ( NP ( DT the ) ( NN onus ) ) ( PP ( IN of ) ( NP ( DT a ) ( JJ national ) ( NN debt ) ( NN ceiling ) ( NN debate ) ) ) ) ) ) ) )

Meanwhile bond investors are laboring under the onus of a national debt ceiling debate


( S ( SBAR-ADV ( IN Although ) ( S ( NP-SBJ-1 ( DT the ) ( NNP Treasury ) ) ( VP ( VBZ is ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB announce ) ( NP ( NP ( NNS details ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NNP November ) ( JJ quarterly ) ( NN refunding ) ( NN operation ) ) ) ) ( NP-TMP ( NN today ) ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( DT the ) ( NNP Nov. ) ( CD 79 ) ( NN schedule ) ) ( VP ( MD could ) ( VP ( VB be ) ( VP ( VBN delayed ) ( SBAR-ADV ( IN unless ) ( S ( NP-SBJ-4 ( NP ( NNP Congress ) ) ( CC and ) ( NP ( DT the ) ( NN president ) ) ) ( VP ( NN act ) ( ADVP-TMP ( RB soon ) ) ( S ( VP ( TO to ) ( VP ( VB lift ) ( NP ( NP ( DT the ) ( NN nation ) ( POS 's ) ) ( NN debt ) ( NN ceiling ) ) ) ) ) ) ) ) ) ) ) )

Although the Treasury is expected to announce details of its November quarterly refunding operation today the Nov. 79 schedule could be delayed unless Congress and the president act soon to lift the nation 's debt ceiling


( PP-LOC-HLN ( IN In ) ( NP ( JJ major ) ( NN market ) ( NN activity ) ) )

In major market activity


( S ( NP-SBJ ( NNP Stock ) ( NNS prices ) ) ( VP ( VBD rallied ) ( PP-LOC ( IN in ) ( NP ( JJ active ) ( NN trading ) ) ) ) )

Stock prices rallied in active trading


( S ( NP-SBJ ( NP ( NN Volume ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ( VP ( VBD totaled ) ( NP ( QP ( CD 176.1 ) ( CD million ) ) ( NNS shares ) ) ) )

Volume on the New York Stock Exchange totaled 176.1 million shares


( S ( NP-SBJ ( NP ( VBG Advancing ) ( NNS issues ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP Big ) ( NNP Board ) ) ) ) ( VP ( VBD surged ) ( ADVP-DIR ( RB ahead ) ( PP ( IN of ) ( NP ( NNS decliners ) ) ) ) ( NP-ADV ( NP ( CD 1,111 ) ) ( X ( TO to ) ) ) ) )

Advancing issues on the Big Board surged ahead of decliners 1,111 to


( S ( NP-SBJ ( NN Bond ) ( NNS prices ) ) ( VP ( VBD rose ) ) )

Bond prices rose


( S ( NP-SBJ ( NP ( DT The ) ( NNP Treasury ) ( POS 's ) ) ( JJ benchmark ) ( JJ 30-year ) ( NN bond ) ) ( VP ( VBD gained ) ( NP ( NP ( NP ( JJR less ) ) ( PP ( IN than ) ( NP ( NP ( DT a ) ( NN quarter ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN point ) ) ) ) ) ) ( CC or ) ( NP ( NP ( JJR less ) ) ( PP ( IN than ) ( NP ( NP ( CD 2.50 ) ) ( PP ( IN for ) ( NP ( NP ( DT each ) ( CD 1,000 ) ) ( PP ( IN of ) ( NP ( NN face ) ( NN amount ) ) ) ) ) ) ) ) ) ) )

The Treasury 's benchmark 30-year bond gained less than a quarter of a point or less than 2.50 for each 1,000 of face amount


( S ( NP-SBJ ( NP ( DT The ) ( NN yield ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NN issue ) ) ) ) ( VP ( VBD slipped ) ( PP-DIR ( TO to ) ( NP ( CD 7.91 ) ( NN % ) ) ) ) )

The yield on the issue slipped to 7.91 %


( S ( NP-SBJ ( DT The ) ( NN dollar ) ) ( VP ( VBN gained ) ( PP ( IN against ) ( NP ( JJS most ) ( JJ foreign ) ( NNS currencies ) ) ) ) )

The dollar gained against most foreign currencies


( S ( PP-TMP ( IN In ) ( NP ( JJ late ) ( NN afternoon ) ( NNP New ) ( NNP York ) ( NN trading ) ) ) ( NP-SBJ ( DT the ) ( NN dollar ) ) ( VP ( VBD was ) ( PP-PRD ( IN at ) ( NP ( NP ( CD 1.8415 ) ( NNS marks ) ) ( CC and ) ( NP ( CD 142.85 ) ( NNS yen ) ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( CD 1.8340 ) ( NNS marks ) ) ( CC and ) ( NP ( CD 141.90 ) ( NNS yen ) ) ) ( NP-TMP ( JJ late ) ( NNP Monday ) ) ) ) ) )

In late afternoon New York trading the dollar was at 1.8415 marks and 142.85 yen compared with 1.8340 marks and 141.90 yen late Monday