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ACS SYSTEMS COMPLETES INITIAL PUBLIC OFFERING

<ACS Systems Inc> said it has completed an initial public offering of 1,722,655 units, consisting of one common share and one warrant per unit. ACS said two warrants entitle a holder to purchase one share of common stock at 1.50 dlrs a share, exercisable 90 days from the effective date for a 36 month period. The company said total gross proceeds from the offering were 1,722,655 dlrs and will be used for general corporate purposes. ACS said the units, shares and warrants currently are traded over-the-counter, but the company will apply to list them on the NASDAQ system in the next few days. Reuter 

FREEPORT-MCMORAN OIL AND GAS <FMR> PAYOUT RISES

Mthly div 14.248 cts vs 4.912 cts prior Pay April 10 Record March 31 Reuter 

AMAX <AMX> FILES TO OFFER 15.8 MLN SHARES

AMAX Inc said it has filed for an offering of 15,757,350 common shares, including 757,300 to be sold by Mitsui and Co Ltd <MITSY>. AMAX said it will offer 12,607,350 shares in the U.S. through underwriters led by First Boston Inc <FBC>, along with American Express Co's <AXP> Shearson Lehman Brothers Inc subsidiary, <Goldman, Sachs and Co> and Merrill Lynch and Co Inc <MER>. Remaining shares will be sold outside the U.S. through underwriters led by First Boston's Credit Suisse First Boston Ltd affiliate, Shearson, Goldman Sachs and Merrill Lynch. AMAX said it will use its proceeds to reduce revolving credit debt and repurchase or repay from time to time other debt. Reuter 

ILLINOIS REGIONAL <ILLR> MULLS AFFILIATION

Illinois Regional Bancorp said it is evaluating whether to affiliate with a larger bank holding company or continue to remain independent. The 500 mln dlr-asset bank holding company said that in view of recent investor interest in suburban Chicago banks, it retained Merrill Lynch Capital markets to advise it on its alternatives. Last year, Illinois Regional had discussions with Milwaukee-based Marine Corp <MCRP> but no agreement was reached, a company spokesman said. Reuter 

MORGAN GUARANTY SELLS FIRST REPACKAGED PERPETUAL

Morgan Guaranty Ltd, through a special financing subsidiary, said it is issuing the first repackaging of perpetual floating rate notes, consisting of a repackaging of an outstanding WestPac Banking Corp security. Trading in perpetual floating rate notes, about 17 billion dlrs of which are outstanding, has come to a virtual halt as prices plunged. Because the securities never mature, there is no way to price them properly unless there is a liquid two-way market for them. Investors have been stuck with billions of dollars of notes on their books that no one else will buy. Under terms of the offer, Morgan said it has set up a special-purpose financing company, Pacific Securities Co Ltd, which will issue two separate securities. The unit becomes the holder of 200 mln dlrs of Westpac floating rate notes. Morgan officials declined to disclose the level at which Pacific purchased the Westpac securities, although in late February, they were quoted at 85 against an issue price of par. Pacific Securities will issue two instruments. The first is a floating rate bond due March 29, 2002. The bond pays interest at 50 basis points over the London Interbank Offered Rate. While the initial Westpac issue offered investors only 15 basis points over LIBOR, Morgan Guaranty said WestPac has agreed with Pacific Securities that it will pay investors the remaining 35 basis points. Also, WestPac has agreed to redeem to floating rate notes after 15 years. The other portion of the security consists of a zero-coupon bond, also maturing at 2002, for which the investor pays 20 cents on the dollar. Morgan officials said that by 2002, the effective yield will be a 20 pct return. However, Morgan officials said, holders of the zero-coupon bonds will not be paid in cash when the securities mature. Instead, they will be paid in an equivalent amount of zero-coupon Westpac perpetual floating rate notes. As part of the agreement, Pacific Securities has agreed to place proceeds of the sale of the new securities on deposit at WestPac and earnings from the deposit will be used to subsidise the payment of the additional interest to investors. Also as part of the issue, there is an option for issuance of a 70 mln dlr tap to be offered the following year. The tap will consist of 70 mln dlrs in floating rate notes paying and an additional equivalent amount of zero coupon bonds also at a deep discount of 20 cents on the dollar. Fees consist of a one pct selling concession and 0.50 pct combined underwriting and management. Westpac itself has agreed to be co-lead manager of both tranches and two small syndicates are being formed, Morgan Guaranty said. REUTER 

TREASURY'S BAKER SAYS TAX CHEATING UNDETECTED

Treasury Secretary James Baker told a Senate Appropriations subcommittee there is still lots of room for improvement in government programs to crack down on tax cheating. "I think we're far from the point at which we reach saturation," Baker said when asked at what point additional efforts to catch cheating become fruitless. He said Internal Revenue Service efforts would raise a projected 41 billion dlrs in fiscal 1988 compared to 18 billion dlrs in 1981. "So we are increasing," Baker said. Reuter 

SHELDAHL <SHEL> VOTES THREE-FOR-TWO STOCK SPLIT

Sheldahl Inc said its directors approved a three-for-two stock split, payable April 24, record April 3. Reuter 

HECHINGER <HECHA> SELLS CONVERTIBLE DEBENTURES

Hechinger Co is raising 125 mln dlrs through an offering of convertible subordinated debentures due 2012 with a 5-1/2 pct coupon and par pricing, said sole underwriter Morgan Stanley and Co Inc. The debentures are convertible into the company's common stock at 27.84 dlrs per share, representing a premium of 28 pct over the stock price when terms on the debt were set. Non-callable for two years, the debt is rated Baa-3 by Moody's and BBB-plus by Standard and Poor's. The issue was increased from an initial offering of 100 mln dlrs. Earlier this week, Moody's and S and P upgraded the company's debt. Reuter 

RUSS TOGS INC <RTS> SETS QUARTERLY

Qtly div 19 cts vs 19 cts prior Pay April 15 Record April One Reuter 

BANK OF FINLAND TO TRADE IN BANKS' CERTIFICATES

The Bank of Finland said it has started dealings in banks' certificates of deposits (CDs) with immediate effect and that it was prepared to issue its own paper to stimulate operations on the domestic money market. Bank of Finland Governor Rolf Kullberg told a news conference the Bank will also limit credits on the call money market from March 30, 1987, by introducing a maximum credit amount and a penalty rate if banks exceed this ceiling. "The recent introduction of three-month money and these new regulations are decreasing the role of the call money market and the discount rate as monetary instruments," Kullberg said. Bankers welcomed the central bank measures saying these were needed to accelerate the domestic money market. The Bank of Finland had never before been allowed to issue its own CDs, they said. "The central bank for the first time has an instrument with which it really can influence the price of money in this country," one banker said. Under the new rules banks are limited to call money credits to a maximum of 7.5 pct of the total of their equity capital and cash reserves. A penalty rate of interest of 19 pct is now introduced if the limit is exceeded. Director Sixten Korkman at the Bank of Finland's monetary department said he expected the bank to pursue an active policy on the interbank market as an issuer of own-CDs. "We are free to do it, so maybe on Monday we will issue the first, just to see how the system functions. Overall I think we will issue at least a few times a week," Korkman told Reuters. He said the bank was likely to aim at CDs with a three-month maturity at first as the market was best developed for paper of that maturity. The Bank of Finland introduced last December three-month credits and deposits at rates determined by the central bank and the commercial banks as a shift away from the traditional overnight call money market. Liquidity on the call credit market has fallen from around nine billion markka in early December to 167 mln last week, while three-month credits have risen to three to four billion. On the interbank market there has been an increasing trade in banks' CDs, estimated to be some eight billion markka. In addition, commercial paper accounts for around five billion markka and Treasury Bills two billion. REUTER 

DENMARK ISSUES 200 MLN ECU EUROBOND DUE 1992

Denmark is issuing a 200 mln ECU eurobond due April 23, 1992 paying 7-1/4 pct and priced at 101-3/8 pct, lead manager Morgan Stanley International said. The bond is available in denominations of 1,000, 10,000 and 250,000 ECU and will be listed in Luxembourg. Fees comprise 1-1/4 pct selling concession and 5/8 pct management and underwriting. Payment date is April 23. REUTER 

U.S. FUTURES LEADER SEES TOKYO LIBERALIZING

Japan will liberalize rules restricting their financial institutions' ability to trade foreign financial futures contracts within the next two years, Leo Melamed, director of the Chicago Mercantile Exchange's, CME's, executive committee, said. Melamed, also the head of Dellsher Investment Co Inc, told a press conference yesterday at the Futures Industry Association convention that within the next year or two the Japanese government is "going to lift the curtain on their community of users" of futures markets. Currently, government restrictions prevent Japanese citizens from trading futures or options contracts off-shore and converting the profits back into yen, according to Richard Heckinger, CME's vice president for international marketing. In addition, Japanese are not allowed to convert yen into dollars for the purpose of trading futures contracts overseas, he said. Melamed predicted the Nikkei stock average index future -- a price-weighted index future based on 225 Tokyo Stock Exchange issues which is traded on the Singapore International Monetary Exchange and mutually offset at the CME -- would do much better if Japanese financial institutions were able to use it. CME is waiting for approval from the Commodity Futures Trading Commission to begin trading the Nikkei stock index future in Chicago. "We will not do as well with that contract until or unless the Japanese community, financial institutions, can utilize it in Chicago," Melamed said. Melamed and Heckinger said they had no firm evidence that Tokyo would liberalize futures trading rules, but sensed from Japanese inquiries and visits a readiness to change. Next month, the CME is to open a Tokyo office to strengthen the exchange's link to Japan. The managing director of the office will be Takeo Arakawa, formerly of the Ministry of Finance and the Bank of Tokyo. Melamed said he hoped Arakawa would help the CME maintain a competitive edge when Japan launches financial futures trading. Next month the Osaka exchange is set to begin trading a stock index future, Heckinger said. "We are not going to let them (the Japanese) do what they did to the American automobile industry. We want to be partners with them," Melamed said. Reuter 

CBT SEES LIFFE LINK OPERATING BY EARLY 1988

A trading link between the Chicago Board of Trade, CBT, and the London International Financial Futures Exchange, LIFFE, should be in operation by the beginning of next year, CBT Chairman Karsten Mahlmann said. "It could be the end of this year or the beginning of next year that the linkage could become operational," Mahlmann told the Futures Industry Association. The two exchanges signed a memorandum of understanding on February 9 calling for the eventual establishment of a mutual offset clearing system that would allow traders to initiate positions on one exchange and liquidate them on the other. Mahlmann said the contracts involved in the link could include British gilts, Eurobonds, Japanese government bonds, foreign currencies and the Financial Times-Stock Exchange 100 stock index. Reuter 

PIEDMONT AIR <PIE> FEBRUARY FREIGHT TRAFFIC UP

Piedmont Aviation Inc said February cargo ton miles tose 33.9 pct to 4,419,923 from 3,299,686 a year earlier. It said year-to-date cargo ton miles rose 26.5 pct to 8,504,918 from 6,720,440 a year before. Reuter 

CARTERET SAVINGS<CBC> COMPLETES SALE OF BRANCHES

Carteret Savings Bank said it has completed the previously announced sale of six Virginia branches to Charter Federal Savings and Loan Association <CHFD>. Carteret said it has opened a retail banking office in Vienna, Va., as the next step in its move to build a strong presence in the Washington, D.C., Baltimore, Md., area. Carteret said the new bank has two offices outside Baltimore, which were acquired last June when Carteret merged with Admiral Builders Savings and Loan Association. The company said it plans to open a retail banking office in downtown Washington this summer, plus several more offices in Baltimore County and others in Fairfax County, Va. Carteret said it may open more loan offices in Virginia and Maryland. Reuter 

FED EXPECTED TO SET CUSTOMER REPURCHASES

The Federal Reserve is expected to intervene in the government securities market to add temporary reserves indirectly via 1.5-2.0 billion dlrs of customer repurchase agreements, economists said. Federal funds, which averaged 6.06 pct yesterday, opened at 6-1/16 pct and remained there in early trading. Reuter 

ON-LINE <OSII> SELLS CONVERTIBLE DEBENTURES

On-Line Software International Inc is raising 40 mln dlrs through an offering of convertible subordinated debentures due 2002 with a 6-1/4 pct coupon and par pricing, said lead manager Drexel Burnham Lambert Inc. The debentures are convertible into the company's common stock at 27.61 dlrs per share, representing a premium of 25.5 pct over the stock price when terms on the debt were set. Non-callable for two years, the debt is rated B-3 by Moody's and CCC-plus by Standard and Poor's. Donaldson Lufkin co-managed the deal, which was increased from an initial offering of 30 mln dlrs. Reuter 

U.S. TREASURY'S BAKER OPPOSES NEW TAX ON SECURITIES TRANSACTIONS

MEXICO SIGNS 7.7 BILLION DLR LOAN AGREEMENT WITH COMMERCIAL BANKS

U.S. FDA APPROVES BURROUGHS WELLCOME'S AZT TO TREAT CERTAIN AIDS PATIENTS

U.S. TREASURY'S BAKER OPPOSES SECURITIES TAX

Treasury Secretary James Baker said he opposes a new tax on securities transactions. "No," he said when asked by a reporter whether he favored such a tax, which has been advocated by House Speaker James Wright (D-Tex). He added, "Not unless you want to tax a whole bunch of little security holders, which is not a good idea." Reuter 

MCDONALD'S <MCD> UP ON REAFFIRMED RECOMMENDATION

The stock of McDonald's Corp rose sharply this morning after analyst Daniel Lee of Drexel Burnham Lambert Inc reiterated his recommendation of the stock, traders said. McDonald's, an operator of fast food restaurants, rose 1-5/8 to 77-3/8. "Comparable store sales are up 5.6 pct in 1986 vs 1985," Lee said, "and the stock is trading below the market multiple." He said "not many companies have a consistent 15 pct annual earnings growth rate, return on equity above 20 pct, but trade at less than the market multiple." Analyst Lee said "the introduction of a new line of salads this spring, at about the time we are all trying to squeeze into bathing suits, should boost sales." He also noted that "the average McDonald's does about 1.369 mln dlrs in revenues a year. That compares with 1.1 mln dlrs a year for the average Burger King and 800,000 dlrs a year for the average Wendy's." Since it cost about the same to build a single store for any one of these chains, he said, "McDonald's can well justify their expansion." Lee expects McDonald's to earn 4.40 dlrs a share in 1986 and 5.15 dlrs in 1988. Last year it earned 3.72 dlrs a share. Reuter 

ICN PHARMACEUTICAL INC <ICN> 1ST QTR FEB 28 NET

Oper shr 14 cts vs four cts Oper net 2,959,000 vs 1,103,000 Sales 22.5 mln vs 25.2 mln Note: oper data does not include extraordinary gains of 3,686,000 dlrs, or 17 cts per shr, in current quarter and 975,000 dlrs, or eight cts per shr, in year ago quarter from sales of certain marketable securities. Reuter 

NORANDA WINS AID TO PARE ACID RAIN EMISSIONS

<Noranda Inc> has agreed to cut acid rain emissions by 50 pct at its Quebec copper smelter by 1990 with the federal and Quebec governments each providing 41.6 mln dlrs towards the cost, the federal industry department said. Under an agreement, Noranda will also be required to 41.6 mln Canadian dlrs and cover operating costs of the proposed 125 mln dlr sulphuric acid plant. The department said the agreement will allow Noranda to meet polutions standards in Quebec's new environmental regulations passed in 1985. Reuter 

AMERICAN FEDERAL COLORADO <AFSL> HALVES PAYOUT

American Federal Savings and Loan Association of Colorado said its board cut the quarterly dividend to 7-1/2 cts per share from 15 cts. The dividend is payable April 14 to holders of record March 31. The company said earnings will continue under pressure this year due to the weakness of the Colorado economy and a high level of nonearning assets. Reuter 

TEXAS UTILITIES CO <TXU> 12 MTHS FEB 28 NET

Shr 4.50 dlrs vs 4.30 dlrs Net 637.4 mln vs 588.5 mln Revs 3.95 billion vs 4.10 billion Avg shrs 141.7 mln vs 136.9 mln Reuter 

HARLEY-DAVIDSON <HDI> UNIT TO SELL 10-YEAR NOTES

Holiday Rambler Corp, a unit of Harley-Davidson Inc, said it filed with the Securities and Exchange Commission a registration statement covering a 70 mln dlr issue of subordinated notes due 1997. Proceeds will be used to repay 60 mln dlrs of debt. The remainder will be applied toward reducing any outstanding borrowings under the company's revolving credit loan agreement and for working capital, Holiday Rambler said. The company named Dean Witter Reynolds Inc as sole underwriter of the offering. Reuter 

<GUARDIAN TRUSTCO INC> 4TH QTR NET

Shr 15 cts vs nine cts Net 528,000 vs 374,000 Revs not given Year Shr 1.25 dlrs vs 42 cts Net 2,853,000 vs 1,579,000 Revs 55.3 mln vs 46.8 mln Note: shr after preferred dividends Reuter 

ENVIROPACT <VIRO> TO MAKE ACQUISITION

Enviropact Inc said it has signed a letter of intent to acquire Willms Trucking Co Inc for about 12.5 mln dlrs, with completion expected in 45 days. In the year ended September 30, Willms had revenues of about 15 mln dlrs. It transports hazardous waste, sand and gravel. Reuter 

VIRATECK INC <VIRA> 1ST QTR FEB 28 OPER LOSS

Oper shr loss 23 cts vs profit 16 cts Oper loss 1,868,000 vs profit 1,293,000 Revs 183,000 vs 3,400,000 Note: Oper data does not include year ago extraordinary gain of 750,000 dlrs, or nine cts per shr. Reuter 

MEXICO SIGNS 7.7 BILLION DLR LOAN AGREEMENT

Mexican officials and representatives of about 360 creditor banks worldwide started to sign agreements for 7.7 billion dlrs in new loans, Citibank said as co-chairman of Mexico's bank advisory committee. The package, which was agreed in principle with the committee last October 16, is built on a core loan of six billion dlrs, of which five billion dlrs will be lent for 12 years with five years' grace. The remaining one billion dlrs is in the form of a co-financing with the World Bank, which will guarantee 500 mln dlrs. This loan is for 15 years with nine years' grace. The package also includes two contingency facilities totalling 1.7 billion dlrs. One is a growth-contingency co-financing with the World Bank for 500 mln dlrs, of which half will be guaranteed by the World Bank. The loan may be drawn to fund high-priority investment projects if Mexican economic growth fails to reach certain growth targets for the first quarter of 1987. Disbursements would be for 12 years with seven years' grace. Bankers said they expect the loan, which is available until March 1988, will be drawn down. The second contingency facility, for 1.2 billion dlrs, is designed to support investment in the public and private sectors. The loan may be drawn down until April 1988 but only if Mexico experiences a shortfall in public-sector external receipts and provided that Mexico first qualifies for drawings under a 600 mln sdr oil-contigency facility from the International Monetary Fund. This IMF loan would be triggered if the price of oil falls below nine dlrs a barrel for three months. Because of the level of public sector external receipts in the fourth quarter of 1986 and the first quarter of 1987, Mexico will not draw the first two tranches of the continency facility, totalling 451 mln dlrs, Citibank said. As previously reported, bank commitments to the new money package will also be reduced by 250 mln dlrs, representing the interest payments that Mexico will save this year, thanks to the reduced spread on the rescheduling. Under the rescheduling, Mexico is restructuring 43.7 billion dlrs of previously rescheduled debt over 20 years with seven years' grace. Maturities on another 8.6 billion dlrs of loans granted in 1983 and 1984 will remain the same. The interest rate will be at 13/16 pct over Eurodollar deposit rates - the margin that applies to the entire package. Rounding out the deal, the banks have agreed to prolong six billion dlrs of trade lines and to refinance some 10 billion dlrs of private-sector debt that comes under the Mexican government's exchange-guarantee scheme, Ficorca. The size of the package thus comes to about 76 billion dlrs, the largest ever assembled in the international credit markets, Citibank said. The loan is still only 99 pct subscribed and the loan books will be kept open for several more weeks to round up the final 100 mln dlrs and the approximately 60 banks that have so far refused to join the deal. Reuter 

PARKWAY CO <PKWY> SETS QUARTERLY

Qtly div 20 cts vs 20 cts prior Pay May 20 Record May Four Reuter 

ITALY SETS RULES FOR COMPANY HOLDINGS IN BANKS

Companies will henceforth be able to own stakes in banks, but these should not constitute a "dominant" holding, an Italian government committee ruled. The Interministerial Committee on Credit and Savings, headed by Treasury Minister Giovanni Goria, said its decision reflected the "need to safeguard the principle of separation between banks and non-financial concerns." It did not quantify what might constitute a "dominant" holding. The committee also set conditions for the allocation of credits by banks to companies or individuals holding stakes in them, and stipulates conditions under which the Bank of Italy could exercise its powers of control in the case of stakes held by banks in companies or other banks. Under the ruling, credits given by banks or their subsidiaries to groups or individuals holding five pct or more of the bank's capital must not exceed defined limits. The value of credits given cannot exceed either one-fifth of the combined capital and reserves of the bank itself or two-fifths of the value of the stake owned in the bank by the group or individual concerned. Exceptions to these conditions include credits to concerns in which the bank itself has a stake and to branches of foreign banks. Credits made by foreign companies or banks to subsidiaries which have their legal base in Italy will also be excluded from the conditions. The Bank of Italy will request banks to insert rules in their statutes to ensure that companies or individuals holding five pct or more of the bank's capital are not given privileged treatment with regard to credit allocation and terms. With regard to bank holdings in companies, the Bank of Italy can exercise supervisory controls when information on a bank's consolidated activities show single shareholdings in a company or another bank of 25 pct or more, owned directly or indirectly. Such controls can also be exercised even if the stake held is below 25 pct if it can be considered a controlling interest. The controls will not be exercised in cases where the value of the bank's stake in a concern is below the lesser of two predefined limits. These limits are set at 15 billion lire or two pct of the total assets of the parent company of the shareholding bank. REUTER 

PARISIAN INC <PASN> 4TH QTR JAN 31 NET

Shr 58 cts vs 57 cts Net 4,313,000 vs 3,824,000 Sales 72.8 mln vs 61.5 mln Avg shrs 7,492,000 vs 6,740,000 Year Shr 1.33 dlrs vs 1.23 dlrs Net 9,592,000 vs 8,257,000 Sales 226.4 mln vs 184.4 mln Avg shrs 7,228,000 vs 6,740,000 Reuter 

SPI PHARMACEUTICALS INC <SPIP> 1ST QTR OPER NET

Qtr ended Feb 28 Oper shr 31 cts vs 14 cts Oper net 3,203,000 vs 1,357,000 Revs 13.0 mln vs 15.6 mln Note: Oper data does not include year ago extraordinary gain of 821,000 dlrs, or eight cts per shr. Reuter 

GUARDIAN TRUSTCO SEES MODEST 1987 OUTLOOK

<Guardian Trustco Inc>, earlier reporting a 198 pct increase in full year earnings per share, said the outlook for 1987 is more modest. The company said it has started a number of long-term growth projects which have a payback period exceeding one year. Guardian Trustco did not give a specific earnings forecast. The company earlier reported 1986 net profit rose to 2,853,000 dlrs or 1.25 dlrs a share, from year-earlier 1,579,000 dlrs or 42 cts a share. Reuter 

COGECO BUYS FM STATION, PLANS SHARE ISSUE

<Cogeco Inc> said it agreed to acquire 100 pct of Quebec City radio station CJMF-FM and will issue subordinated voting shares of the company to cover a portion of the purchase price. It said the purchase price and other terms of the transaction have not been disclosed. The transaction is subject to approval of the Canadian Radio-Television and Telecommunications Commission. Reuter 

NESTLE 1986 NET 1.79 BILLION SWISS FRANCS VS 1.75 BILLION, DIV UNCHANGED 145 FRANCS

TEXAS INDUSTRIES INC <TXI> 3RD QTR FEB 28 NET

Shr loss 50 cts vs profit one ct Net loss 4,419,000 vs profit 276,000 Sales 126.8 mln vs 151.3 mln Nine mths Shr loss 42 cts vs profit 1.27 dlrs Net loss 3,160,000 vs profit 11.2 mln Sales 429.9 mln vs 477.5 mln NOTE: Current year net includes tax credits of 2,164,000 dlrs in quarter and 328,000 dlrs in nine mths. Reuter 

GE <GE> TO RESEARCH COAL-FIRED GAS TURBINE POWER

General Electric Co said its researchers will investigate the potential of a gas turbine powered by the combustion gases of burning coal. The company said the research is part of a five-year, 19.1 mln dlr program supported by the U.S. Energy Department's Morgantown Energy Technology Center. The center is expected to put up 15 mln dlrs of the cost while GE contributes equipment and services valued at 2.0 mln dlrs, New York State contributes 1.1 mln dlrs and Norfolk Southern Corp <NSC> adding 1.0 mln dlrs. Rather than using the conventional gas turbine fuels, distillate oil or natural gas, GE said, the program will look at the feasability of powering a turbine with coal/water slurry -- a mixture of water and finely ground coal particles from which most of the ash has been removed. Besides using a cheaper fuel, the company said, such a system would also be less expensive to build than conventional coal plants which require a boiler in which coal heats water to make steam to drive a turbine or a coal gasifier which converts to coal into gas, which is then burned to power a turbine. Reuter 

WESTCORP <WCRP> UNIT OFFERS AUTO BONDS

Westcorp's Western Financial Auto Loans 2 Inc said it has commenced an offering of 125 mln dlrs of AAA-rated automobile receivable collateralized bonds. The bonds will be due March 1, 1990 and are priced at 99.9375 pct to yield 6.86 pct. This is the third such offering the company has made and the second in the past four months. Reuter 

TALKING POINT/FIRST CITY BANCORPORATION <FBT>

First City Bancorporation's sale of 54 mln dlrs in oil loans to Prudential-Bache should significantly reduce its energy problems, but the bank's losses are still virtually guaranteed to continue, analysts said. The package of energy loans was sold at book value, so First City did not to show a gain or loss, said bank spokesman James Day. He added it was possible First City would sell more of the bank's remaining 1.4 billion dlrs in oil-related loans to raise cash. The loans had been made by First City to oil producers and to oilfield service and supply companies. Day said some had already been classified as nonperforming, or charged off as a loss, but he could not identify how many were included in those categories. The loans were purchased by Prudential Bache's Energy Growth Fund, a limited partnership created last month with 90 mln dlrs in funding to invest in oil and gas properties. First City, the big Texas bank hit hardest by the downturn in oil prices, lost a record 402 mln dlrs in fiscal year 1986 and has said it is seeking a merger partner or some other capital assistance. The Houston-based bank's nonperforming assets totaled 897.1 mln dlrs at yearend, up from 563.1 mln dlrs at the end of 1985 Analysts have said no buyer is likely to be interested in the troubled bank unless government assistance is available. "Their problems are not just limited to energy. They have a substantial portfolio in real estate. This sale in and of itself won't make the company look better to a potential buyer," said Ray Archibold, a banking analyst with McCarthy, Crisanti and Maffei Inc. "It does reduce the bank's exposure in energy loans and 54 mln dlrs is a substantial amount," Archibold said, "but the deal represents only about four pct of their energy loans." Of First City's total loan portfolio of 9.9 mln dlrs, about 14 pct or 1.4 billion dlrs were made to energy producers or suppliers, analysts said. Its record losses have been caused by its past status as one of the nation's top lenders to oil and gas producers and suppliers during the boom days of the late 1970s and early 1980s. First City said about half of the loans sold to Prudential came from its Energy Finance Co., an entity formed in 1982 to loan money to "more venturesome" oil borrowers that promised a higher potential return. The other half of the loans were from First City's lead bank in Houston. Chris Kotowski, an analyst with Oppenheimer and Co., said the sale of the package of energy loans was the first encouraging news from First City in months. "It's not going to solve all of First City's problems but it's a good transaction for them. It may be possible for them to sell additional loans," Kotowski said. "Prudential can fund these things more cheaply than First City and there's an incentive to invest in troubled energy companies right now as values are depressed" In a statement, First City chairman J.A. Elkins said the bank's strategy was to reduce the proportion of energy loans to total loans. "This move, which we believe is the first transaction of its kind, helps us further, and we were able to make it without suffering a loss." Reuter 

SUNSHINE MINING CO 4TH QTR SHR LOSS 64 CTS VS LOSS 57 CTS

STANDARD OIL <SRD> LEASES CRAY <CYR> COMPUTER

Cray Research Inc said Standard Oil Production Co, a Dallas-based subsidiary of Standard Oil Co, will lease its CRAY X-MP/28 supercomputer with an SSD solid state storage device. The leased system will be installed in the second quarter of 1987 and replace a CRAY X-MP/24 computer system in operation since 1984, it said. Reuter 

GRACO INC <GGG> VOTES QUARTERLY DIVIDEND

Qtly div 15 cts vs 15 cts prior qtr Pay 6 May Record 8 April Reuter 

AUDIO/VIDEO <AVA> SUES OVER CYCLOPS <CYL> BID

Audio/Video Affiliates Inc said it has filed suit against <Dixons Group PLC>, Cyclops Corp, Alleghany Corp <Y> and others in connection with Dixons' recently completed tender offer in which it raised its ownership of Cyclops to 56 pct. The company said the suit, filed in U.S. District Court for the Southern District of Ohio, seeks a temporary restraining order and preliminary injunction requiring Dixons, for 10 business days, to permit any Cyclops shareholder who previously tendered and now wishes to withdraw to do so. The company said the order and injunction would also prohibit Dixons from exercising a "lockup" option granted it by Cyclops and prohibit Dixons for 10 business days from attempting to exercise any control over Cyclops. Audio/Video said the suit also requests the court to order Cyclops to immediately provide to all potential bidders for Cyclops all information given to Dixons. Audio/Video and Citicorp <CCI> have been tendering for all Cyclops shares in a competing offer at 80.00 dlrs per share but said it could raise its bid to 92.50 dlrs under certain circumstances. Dixons offered 90.25 dlrs in its tender. In February Alleghany agreed to buy Cyclops' steel and nonresidential construction business for 111.6 mln dlrs in cash and the assumption of liabilities. Reuter 

DATA GENERAL <DGN> DEBT DOWNGRADED BY S/P

Standard and Poor's Corp said it cut to BBB-plus from A-minus Data General Corp's 184 mln dlrs of senior debt. S and P cited expectations of continued profit pressure for this maker of minicomputer products. The rating agency noted that incoming orders remain lackluster and will probably inhibit any significant rebound in profits this year from the recent near breakeven levels. In the longer term, S and P said an adequate generation of returns on capital would depend on Data General's successful broadening of its customer base. Reuter 

DIXONS SAYS SEC MOVING ON CYCLOPS <CYL> TENDER

<Dixons Group PLC> said the Securities and Exchange Commission has authorized, but not commenced, the filing of an action against it concerning its waiver of a condition in its tender offer for Cyclops Corp. Dixons has offered to buy about 80 pct of Cyclops shares. The SEC action deals with a waiver by Dixons of a condition in the tender offer which was made without an appropriate extension of the offer, Dixons said. Dixons also said it is currently discussing the matter with the SEC. The SEC has a standing policy of never confirming or denying investigations or upcoming legal action. Reuter 

FEDDERS <FJQ> OFFERS PREFERRED STOCK

Fedders Corp said an offering of 1,500,000 shares of 1.75 dlr convertible exchangeable preferred stock is under way at 25 dlrs per share through underwriters led by Bear Stearns Cos Inc <BSC>. The preferred is convertible at any time into common stock at 9.50 dlrs a share and is exchangeable after two years at Fedders' option for seven pct convertible subordinated debentures due 2012. Reuter 

REAGAN SAYS HE WILL VETO HIGHWAY AND TRANSIT BILL

SUNSHINE MINING CO <SSC> 4TH QTR LOSS

Shr loss 64 cts vs loss 57 cts Net loss 34.9 mln vs loss 22.1 mln Revs 31.5 mln vs 60.2 mln Avg shrs 60.1 mln vs 45.2 mln Year Shr loss 2.27 dlrs vs loss 1.66 dlrs Net loss 103.2 mln vs loss 57.6 mln Revs 129.8 mln vs 169.5 mln Avg shrs 51.2 mln vs 38.1 mln NOTE: Per share results after preferred dividend requirements of 3.3 mln dlrs vs 3.5 mln dlrs in quarter and 12.9 mln dlrs vs 5.7 mln dlrs in year 1986 4th qtr loss includes accruals, writedowns and non-recurring charges aggregating 13.9 mln dlrs including costs anticipated in 1987 for the reopening of the Sunshine Mine and a writedown of the capitalized costs at the Sixteen-to-One Mine by 4.2 mln dlrs 1986 year loss includes charges totaling 100 mln dlrs Reuter 

FDA OKAYS BURROUGHS WELLCOME AZT AS AIDS TREATMENT

The Food and Drug Administration has approved Burroughs Wellcome Co's AZT as a treatment to help certain AIDS patients, including those with advanced-AIDS related complex. The drug is the first approved treatment for AIDS in the U.S. AZT or azidothymidine will be marketed as Retrovir by the company, the U.S. arm of Britain's <Wellcome PLC>. Because of its limited supply, the FDA said the drug will be restricted initially to those patients with AIDS or AIDS-related complex with severely depressed immunity or a history of Pnumocystis carinii, pneumonia. "Today's approval marks an important step but by no means a final victory against our ongoing war against AIDS," said Dr Robert E. Windom, assistant secretary for health at the Public Health Service. He noted that available clinical data were sufficient for approving the use of Retrovir only for certain indications and not for all AIDS associated conditions. Nevertheless, Windom said today's action means that significant medical relief will be available to thousands of those afflicted with the disease. "Retrovir is not a cure but it has demonstrated ability to improve the short-term survival of AIDS patients with recently diagnosed PCP (Pneumomystis carinii pneumonia) and certain patients with advanced ARC (AIDS-related complex)," said Windom. Advanced AIDS related complex is a condition that frequently precedes and develops within a short time into full-scale acquired immune deficiency syndrome. As of March 16, there were 32,825 AIDS cases reported nationwide, with more than 16,000 deaths. The Public Health Agency said advanced ARC patients have symptoms that include weight loss, persistent fever and diarrhea, and less severe infections such as oral thrush and herpes infections. The federal agency said that AIDS patients who are expected to qualify for retrovir treatment are those who have serious opportunistic infections associated with AIDS and those with advanced AIDS related complex. It is estimated that about two to three times as many Americans may suffer from advanced ARC as from AIDS. Burroughs Wellcome, of Research Triangle Park, N.C., has scheduled a press conference for Monday in New York where it will discuss what patients will quality for treatment. The company has said that a year's treatment with the drug would cost 8,000 dlrs to 10,000 dlrs. Burroughs has also said that it has adequate supplies of the drug for the most seriously ill patients, and will have supplies for a minimum of 30,000 patients and probably more by the end of the year. Retrovir's approval was expected as a panel of expert medical advisers to the FDA recommended in January that the drug be licensed for sale even though there were gaps in understanding the drug's effectiveness. The panel said the drug could prolong the lives of certain AIDS patients but it also caused severe side effects such as anemia and other blood problems. Due to the extraordinary situation surrounding AIDS, a fatal disease reaching what some health officials say is epidemic proportions, Windom said the FDA has moved in near record time--four months--to approve the drug. AZT, derived from herring sperm, was created in the 1960s by Jerome P. Horwitz of the Michigan Cancer Foundation as an anticancer agent. Meanwhile in London, dealers said Wellcome shares rose to 497p in response, up from last night's close of 457p. But pharmaceutical analyst Mark Clark of Barclays de Zoete Wedd said the new drug's share of the market may not be as a high as expected since it had very severe side effects. "It is not a cure and the side effects are so bad it is unlikely that someone could support a full year's treatment," he said. "There are also a whole host of other drugs likely to come onto the market quite soon." Last week the drug was approved for marketing in the U.K. Reuter 

BELDING HEMINWAY <BHY> OFFICIAL RESIGNS

Belding Heminway Co Inc said Bruce Hausman has resigned as senior vice chairman and chairman of the executive committee to pursue personal interests in real estate and other investments but will remain on the board. Reuter 

SCAT HOVERCRAFT INC <SCAT> YEAR LOSS

Shr loss not given Net loss 1,300,000 Sales 3,300,000 NOTE: Company incorporated in June 1985. Fourth quarter loss 895,000 dlrs. Reuter 

HYPONEX <HYPX> DEBT DOWNGRADED BY S/P

Standard and Poor's Corp said it downgraded to CCC-plus from B-minus Hyponex Corp's 30 mln dlrs of subordinated debt. It assigned a CCC-plus rating to Hyponex's 150 mln dlrs of senior subordinated debentures due 1999 that were priced Wednesday for offering. The implied senior debt rating is B. S and P cited an increase in debt leverage to 86 pct of capitalization from 56 pct. While the company's operating record has been successful, S and P said the action also reflected uncertainties and risks associated with management's new business and investment strategies. Reuter 

NESTLE SA <NESZ.Z> YEAR 1986

Div 145 Swiss francs per share and 29 francs per participation certificate (unchanged) Net 1.79 billion vs 1.75 billion Shr 526 vs 515 Turnover 38.05 billion vs 42.23 billion Addition to reserves 170 mln vs 95 mln. Reuter 

REAGAN TO VETO 87.5 BILLION DLR HIGHWAY BILL

President Reagan said he will veto an 87.5 billion dlr highway and transit bill, citing his commitment to hold to spending cuts to meet budget deficit reduction goals. "I am adamantly opposed to the excessive spending that is in the bill as it emerged from a (House-Senate) conference committee," he said in a statement. White House spokesman Marlin Fitzwater said Reagan had reservations on 152 so-called demonstration highway projects and on the amount for transit projects. The bill called for transit projects totalling 17.8 billion dlrs, compared to 8.7 billion proposed by the administration. Fitzwater said, however, that Reagan supported the right of states to raise the highway speed limit to 65 mph from 55 mph, a provision that is also in the legislation. Reuter 

AUTOMATED DATA <AUD>, MERRILL <MER> IN AGREEMENT

Automatic Data Processing Inc said it and Merrill Lynch and Co Inc have reached agreement on detailed specifications in their previously-announced development project for a customized quote service system. "If the development plans proceed as projected, Automatic Data Processing will start a rollout to Merrill Lynch's 600 offices at the end of 1987 with a scheduled completion by the end of 1989," the company said. Reuter 

COMEX CONSIDERING NEW FUTURES CONTRACTS

The Commodity Exchange Inc, COMEX, is researching the possibility of offering futures contracts on foreign currency swaps and Ginnie Mae repurchase agreements, a COMEX consultant said. Kurt Dew, president of Risk Analysis Systems, said the idea was on the drawing board at the staff level and not near realization. Dew said the contracts would be logical successors to two contracts already proposed by the exchange -- futures on interest rate swaps and on Treasury repurchase agreements, or repos. Regulations recently proposed by federal bank regulators could enhance the attractiveness of futures contracts on currency swaps, he said. Those regulations would require banks to allocate a certain share of its capital to currency swaps, Dew said. Futures on currency swaps would not require capital allocation. A futures market in Government National Mortgage Association (Ginnie Mae) repos would help investors outside the circle of primary dealers get the best possible price, Dew said. Dew emphasized that the COMEX board had not yet considered the contracts. Reuter 

SOUTHEAST BANKING CORP <STB> SETS QUARTERLY

Qtly div 22 cts vs 22 cts prior Pay April 10 Record March 30 Reuter 

BALANCE COMPUTER CORP 3RD QTR JAN 31 LOSS

Shr loss one ct vs profit five cts Net loss 34,496 vs profit 207,165 Rev 102,691 vs 297,813 Nine months Shr profit one ct vs profit five cts Net profit 69,018 vs profit 230,188 Rev 641,823 vs 666,319 NOTE: The company was delisted from the NASDAQ in November 1985. Third qtr 1986 net includes extraordinary credit of 76,400 dlrs, or four cts a share. Reuter 

RECOMMENDATION REITERATED ON WANG LABS <WANB>

Analyst Thomas McCrann of Merrill Lynch said he reiterated a "buy" recommendation of Wang Laboratories Inc, noting that a successful cost cutting campaign could reduce the earnings loss expected for the third quarter ending in March. Wang was the most actively traded stock on the American Stock Exchange, rising 3/4 to 16-5/8. McCrann said that "Wang is a little bit ahead of where they were expected to be in their cost reductions, and as a result, the odds have increased that the loss for the quarter will be less than had been expected." McCrann said he expects Wang to report break even earnings per share or only a small loss per share for the third quarter. He said for the year, however, the company should report a loss of about 50 cts a share compared with earnings of about 35 cts a share a year ago. Reuter 

FED SAYS IT SETS 1.5 BILLION DLRS OF CUSTOMER REPURCHASE AGREEMENTS

JAPAN, BRITAIN DISAGREE ON TELECOM MERGER

Cable and Wireless Plc <CAWL.L> is resisting attempts to merge two Japan-based telecommunications firms in the hope that overseas political pressure will force a change in those plans, a company executive said. Cable and Wireless, which holds a 20 pct stake in one of the two Japanese firms, is opposed to plans to reduce its share to three pct in the merged firm, director of corporate strategy Jonathan Solomon told reporters. That plan, put forward by a senior member of the powerful business organization Keidanren with the tacit backing of the Post and Telecommunications Ministry, has caused a storm of protest from abroad that Japan is seeking to exclude foreign firms from a meaningful position in the market. Pacific Telesis Group <PAC.N> of the United States also holds a 20 pct stake in one of the newly formed consortia, <International Digital Communications Inc> (IDC). Solomon said that both British Prime Minister Margaret Thatcher and U.S. Secretary of State George Schultz have written to the Japanese government about the planned merger. A key U.S. Senate committee, Commerce Secretary Malcolm Baldrige and Trade Representative Clayton Yeutter have also expressed opposition to the merger, he said. The Post and Telecomunications Ministry reiterated again that it sees no need for two competitors to <Kokusai Denshin Denwa Co Ltd>, which holds a monopoly on international calls from Japan. The ministry has also suggested that foreign shareholders not hold managerial positions in the new firm. In an attempt to hammer out an agreement, Solomon today met Fumio Watanabe, the senior Keidanren officer trying to arrange the merger. But the two sides remained deadlocked. At stake is C and W's 400 mln dlr project to lay fibre optic cables between Japan and Alaska, to form part of its global network. "C and W wants to start right away on the project, such as application and other procedures," said Watanabe, who is also chairman of <Tokio Marine and Fire Insurance Inc>. The Japanese side is saying that the decision on such a plan should be left with the new firm, after the merger. "These decisions (on the merger) were made in consideration of Japan's economic conditions and legal systems. I told him we are not a colony or something," said Watanabe. Reuter 

WINTHROP INSURED MORTGAGE II <WMI> SETS PAYOUT

Qtly div 35 cts vs 35 cts prior Pay April 15 Record March 31 NOTE: Winthrop Insured Mortgage Investors II. Reuter 

GERMAN MONEY SUPPLY GROWTH SLOWS IN FEBRUARY

West Germany's money supply growth slowed in February after January's sharp rise but the trend is still definitely upward, the Bundesbank said in a statement. Growth in the traditionally broad M3 aggregate was only moderate in February. While cash in circulation, deposits with statutory withdrawal notice and sight deposits grew sharply, short-term time deposits fell after expanding unusually strongly in January. In the six months to February, M3, which excludes holdings of German non-banks abroad, grew at a seasonally adjusted annual rate of 8.5 pct after 9.8 in the six months to January. Compared with February 1986, M3 rose 7-1/2 pct. In the six months to February, M2, which excludes time deposits with statutory withdrawal notice, rose at a seasonally adjusted annual rate of 8.8 pct and M1, which consists of cash and sight deposits, rose seven pct. International transactions of non-banks again led to a significant inflow of funds, the Bundesbank said. Net claims of commercial banks and the Bundesbank against foreigners, refecting these foreign payments, increased by 9.1 billion marks in February, little changed from January's rise. But in contrast to January, the dampening effect of the inflow on domestic credit demand outweighed the expansionary effect on money growth, the Bundesbank said. Outstanding bank credits to companies and private individuals remained virtually unchanged in February. A sharp drop in short-term company credits, which reflected the foreign funds inflow, was balanced by a moderate rise in long-term credits and a sharp rise in credits for securities. At the end of February total bank credits to the private sector were 4-1/2 pct above the February 1986 level. The effect of public authority cash movements on the money supply was slightly expansive, the Bundesbank said. Although banks acquired large amounts of public authority paper, public authorities drew down book credits at commercial banks and the Bundesbank. Capital formation strengthened in February and slowed money supply growth to a larger extent than in January. A total of 7.7 billion marks in long-term funds was placed with banks after 6.6 billion the previous month. REUTER 

ENTEX ENERGY DEVELOPMENT LTD <EED> SETS PAYOUT

Qtly div 15 cts vs 15 cts prior Pay May 29 Record March 31 Reuter 

FED ADDS RESERVES VIA CUSTOMER REPURCHASES

The Federal Reserve entered the U.S. Government securities market to arrange 1.5 billion dlrs of customer repurchase agreements, a Fed spokesman said. Dealers said Federal funds were trading at 6-1/16 pct when the Fed began its temporary and indirect supply of reserves to the banking system. Reuter 

DUFF/PHELPS LOWERS DELMARVA POWER AND LIGHT<DEW>

Duff and Phelps said it lowered its rating on Delmarva Power and Light Co first mortgage bonds to DP-3 (middle AA) from DP-2 (high AA) and on preferred stock to DP-4 (low AA) from DP-3, affecting approximately 646 mln dlrs in debt securities. The rating change reflects expectations of lower fixed charge coverages and lower internal funding over the next several years, Duff and Phelps said. An interim cut in electric rates in Delaware and Maryland to reflect a lower allowed return on equity was made in the second half of 1986. A final decision is expected in April. Reuter 

EC SAYS U.S. BROKE TRADE RULES IN AKZO-DUPONT ROW

The European Community Commission has charged the United States with breaking international trade rules by excluding Dutch-made fibres from the U.S. Market and said it would take the issue to the world trade body GATT. In the latest of a series of trade disputes with Washington, the executive authority alleged that a section of the U.S. Tariff Act was incompatible with the GATT (General Agreement on Tariffs and Trade) because it discriminated against imported products in favour of domestically-produced goods. The Commission said it would ask Geneva-based GATT to rule on whether the section in question, which officials said had proved a barrier to many EC exporters, conformed to its rules. Commission officials did not rule out retaliatory measures if, after a GATT decision against it, Washington failed to bring the disputed section into line with international rules. The executive's decision to go to GATT follows a complaint to it by the Dutch company Akzo <AKZO.AS>, whose "aramid" synthetic fibres have been banned from the U.S. Market because of charges by the U.S. Firm <Dupont> that the fibres violate the American company's patents. Akzo alleged that the ban, imposed by the U.S. International Trade Commission (ITC), was discriminatory and incompatible with GATT provisions. The dispute centres on the fact that section 337 of the U.S. Tariff Act gives the ITC jurisdiction over imported products. The EC Commission charged that EC producers did not have the same possibilities for defending themselves before the ITC as they would have in a normal U.S. Court. "Consequently the procedure followed...Is less favourable than that which takes places in normal courts of law for goods produced in the United States," it said in a statement. Reuter 

MOODY'S DOWNGRADES STANDARD CHARTERED PLC, AFFECTS 1.6 BILLION DLRS OF DEBT

U.S. AGENCY TO ALLOW U.S. AIR TO BUY 51 PCT OF PIEDMONT PENDING FINAL OKAY OF MERGER

FINAL TEST INC <FNLT> 4TH QTR LOSS

Shr loss six cts vs loss 88 cts Net loss 128,141 vs loss 1,298,377 Sales 1,332,218 vs 385,146 Year Shr profit six cts vs loss 1.47 dlrs Net profit 120,571 vs loss 2,171,011 Sales 4,617,034 vs 2,959,141 Reuter 

HOUSTON METALS' MINE YIELDS POSITIVE RESULTS

<Houston Metals Corp> said the the first phase of the underground rehabilitation, extensive drilling and bulk sampling program at its Silver Queen Mine has yielded positive results. Houston said representative assays from the 2,750 ft and 2,600 ft levels at the south end of the mine established ore deposits in the following ranges: copper, 3.7 pct to 5.08 pct, lead .99 pct to 1.5 pct, zinc six pct to 9.6 pct, silver 15.63 pct to 79.92 oz per ton, gold .062 to .19 oz per ton, germanium 93 to 103 grams per ton, gallium five to 18 grams per ton. In addition, Houston Metals said the weighted average of 25 diamond-drilled holes 375 ft below the 2,600 foot level and 800 ft along the strike assayed gold at .237 oz per ton, silver at 10.91 oz per ton and zinc at 8.99 pct. An apparent parallel vein structure at the 2,600 ft level returned similar values, the company said. It added that preliminary metallurgical tests from representative bulk ore samples indicate the commercial feasability of producing a zinc and a copper-lead concentrate. Houston Metals said gold, silver and the base metals have recoveries of 90 pct to 95 pct, with 95 pct of gold recovered from better gold ores, while gallium, germanium and indium have recoveries of between 66 pct to 82 pct and are included in the zinc concentrate. The company's 1987 program of diamond drilling, underground drifting and metallurgical evaluation is scheduled to start on April. Houston Metals said it has a 60 pct interest in the Silver Queen mines. It added that funds for the program have been provided by First Exploration Fund, a Canadian limited partnership sponsored by Merrill Lynch Canada Inc and Dominion Securities Inc. Reuter 

MICHIGAN NATIONAL CORP <MNCO> VOTES DIVIDEND

Qtly div 30 cts vs 30 cts prior qtr Pay 15 April Record 1 April Reuter 

PRESSURE BUILDS ON THATCHER TO CALL ELECTION

British Prime Minister Margaret Thatcher came under fresh pressure for an early election today as financial indicators bolstered the government's forecasts of a boom in the economy following the budget earlier this week. Two of the country's leading lending institutions announced cuts in home loans rates following Wednesday's cut in interest rates by the main banks by half a point to 10 per cent. Analysts said today's reduction by Abbey National from 12.75 pct to 11.25, and one by the Halifax Building Society from 12.25 to 11.25 in lending rates for house buyers would be followed by other main institutions. One financial analyst commented: "I imagine the Abbey National is being toasted in Downing Street (the prime minister's residence) but not in the boardrooms of other big societies." Coupled with income tax cuts announced by Chancellor of the Exchequer (Finance Minister) Nigel Lawson in his budget last Tuesday as well as recent opinion polls showing Thatcher's rightwing Conservative Party well ahead of Labour and the centrist Alliance, they said pressure was now building up on Thatcher to call a general election as early as June. Yesterday there was more good news for Thatcher in the form of a continuing drop in the number of unemployed, with government minister predicting that it would fall below the three million mark before long. Reuter 

ELECTRONIC MAIL<EMCAC> REFINANCES, PRESIDENT QUITS

Electronic Mail Corp of America has completed financing arrangements in the amount of 200,000 dlrs. It also announced its president, J.R.Moman, resigned last Friday. Joshua Graham, chairman and chief executive officer, will assume the role of president, the company said. Electronic said the refinancing was done through a group of lenders, including PaineWebber Capital Inc and the E.F. Hutton Group Inc to fund short-term cash requirements. Financing terms were not disclosed, the company said. Electronic Mail said its revenues for February were 200,000 dlrs as compared to 21,000 dlrs for the same period a year ago. For the first eight months of fiscal 1987 through February 28 revenues were 1,100,000 dlrs compared to 300,000 dlrs for the same period a year ago, the company said. The corporation will require additional funding in the near future, and is currently holding discussions with a number of other organizations that have expressed interest in investing in, acquiring, or merging with the company. Reuter 

FRANCE'S BUE SIGNS SOVIET COOPERATION ACCORD

<Banque de l'Union Europeenne> said it signed a cooperation agreement with the Soviet Union's central bank <Gosbank>, and Foreign Trade Bank <Vneshtorgbank>, with the aim of creating a joint financial holding under new Soviet joint venture laws. Jean-Paul Dessertine, international director at BUE, said the function of the proposed joint financial group, would be to help set up, with consulting and financial services, other Franco-Soviet, mainly industrial, joint ventures. Some protocols of intent have already been signed but no joint venture contracts have been finalised under the new laws. Dessertine said a joint working party would on April 15 begin consulting with companies interested in making joint ventures, and work to set up the joint financial holding. Citing the mixed results of joint ventures set up in the past between western and East European countries, he said: "This is a wager on the evolution of the Soviet Union, and on how far new reforms will be applied." Other parties to the cooperation protocol are <Banque Commerciale pour l'Europe du Nord>, a French subsidiary of Gosbank, and <Compagnie Financiere de Credit Industriel et Commercial>, the parent company of BUE. REUTER 

LOTUS <LOTS>, MCI <MCIC> SHIP SOFTWARE PACKAGE

Lotus Development Corp and MCI Communications Corp said they made the first shipment of Lotus Express for MCI Mail, a communications-software product that enables personal computer users to exchange messages, send telexes and transfer files. Lotus Express was announced last December and was shipped on schedule, the companies said. Reuter 

COMMERCE GROUP <CGCO> TO START TRADE ON NASDAQ

Commerce Group Corp said its common stock will begin trading March 23 on NASDAQ under the symbol "CGCO." The company is doing preliminary work necessary to the actual extraction of gold from the San Sebastian Gold Mine in El Salvador, Central America. Commerce said it and San Sebastian Gold Mines Inc have concession rights from the government of El Salvador to mine and extract gold from the San Sebastian Gold Mine. Reuter 

AUTOCLAVE ENGINEERS INC <ACLV> QTLY DIVIDEND

Qtly div four cts vs four cts prior Pay April 15 Record March 31 . Reuter 

TEXACO <TX> FORMS A NEW EXPLORATION DEPARTMENT

Texaco Inc said it has formed a new Frontier Exploration Department to initiate and evaluate high-potential frontier opportunities for Texaco worldwide. Reuter 

WASTE MANAGEMENT AMENDS CHEMLAWN OFFER, RAISING IT TO 35 DLRS A SHARE FROM 33 DLRS

AMERICAN MOTORS SAID DIRECTORS TOOK NO ACTION ON CHRYSLER PROPOSAL, POSTPONES ANNUAL MEETING

COMPUTER SCIENCES IN TALKS WITH NASA FOR ONE BILLION DLR CONTRACT

MOODY'S DOWNGRADES STANDARD CHARTERED <STCH>

Moody's Investors Service Inc said it downgraded 1.6 billion dlrs of debt of Standard Chartered PLC and its units, Standard Chartered Bank and Union Bancorp. Moody's cited concerns over the asset quality of Standard Chartered Bank. Cut were the parent's junior subordinated debt to A-3 from A-2 and Standard Chartered Bank's long-term deposit rating to Aa-3 from Aa-2. Moody's lowered Union Bancorp's senior debt and preferred stock to A-1 from Aa-3, subordinated debt to A-2 from A-1 and long-term deposits to A-1 from Aa-3. Union's commercial paper and short-term deposits were unchanged. Also left unchanged were Standard Chartered Bank's ratings for short-term deposits. Although Moody's cited Standard Chartered Bank's long-standing position in a number of regional markets and improved risk control procedures, it pointed out that the bank still lacks the stabilizing effect of a more significant presence in the U.K. market. The rating agency reiterated that it is concerned about the relative levels of risk in the bank's widely dispersed asset portfolio. Reuter 

YUGOSLAVIA FREEZING PRICES AFTER STRIKES

The government said it will freeze prices at end-December levels within five days. The announcement followed a wave of strikes that swept the country in protest against a wages freeze. The government, in a statement through the official Tanjug news agency, said the freeze would affect food, consumer goods, tools, textiles and furniture and would last 90 days. REUTER 

WASTE MANAGEMENT<WMX> HIKES CHEMLAWN <CHEM> BID

Waste Management Inc said it amended its offer to buy the outstanding shares of ChemLawn Corp to 35 dlrs a share. On Thursday the company said it was prepared to bid 33 dlrs a share, up from its original 27 dlrs a share offer. As a result of the price increase, made through Waste Management's wholly owned subsidiary, WMX Acquisition Corp, the offer has been extended and the withdrawal rights will not expire at midnight EDT April Two, unless further extended. Waste Management also said it amended its offer to provide that the tender offer price will not be reduced by ChemLawn's 10 cts a share dividend payable to holders of record April 1, 1987. Reuter 

ENTEX ENERGY DEVELOPMENT LTD <EED> YEAR LOSS

Unit loss 4.36 dlrs vs loss 4.27 dlrs Net loss 37.4 mln vs 32.9 mln Revs 19.3 mln vs 30.3 mln Avg units 8,413,000 vs 7,557,000 Note: Net includes writedown of oil and gas properties of 21.0 ln dlrs vs 16.5 mln dlrs and writedown of geothermal property of 10.4 mln dlrs vs 10.5 mln dlrs. Reuter 

U.S. SAYS USAIR <U> MAY BUY 51 PCT OF PIEDMONT

The Department of Transportation said it will allow USAIR Group to acquire up to 51 pct of Piedmont Aviation <PIE> voting stocks pending final approval of the proposed merger of the two airlines. The agency said the stock would have to be held in a voting trust controlled by an independent trustee. An agency spokesman said that if USAIR, which has proposed to buy all of Piedmont shares, controls more than 51 pct of the firm's outstanding stock, it will have one week to sell those excess shares. USAIR asked the Department of Transporation earlier this month to approve a voting trust. An agency spokesman said this is a device that airlines use to get majority control of a company it is trying to acquire while their application before the government is pending approval. The spokesman said the firm had asked the transporation agency permission to buy all of Piedmont's voting stock, the but agency decided to give approval for 51 pct of shares. The spokesman said agency action on the proposed merger application could take as long as six months. Reuter 

USDA NOT PLANNING ANY MAJOR PRICING CHANGES

The Agriculture Department is not considering any major changes in its pricing system for posted county prices, an Agriculture Department offical said. "We do not have current plans to make any major adjustments or changes in our pricing," said Bob Sindt, USDA assistant deputy administrator for commodity operations. U.S. grain traders and merchandisers said earlier this week USDA might act soon to reduce the cash corn price premium at the Gulf versus interior price levels by dropping ASCS posted prices to encourage interior PIK and roll movement. But Sindt denied USDA is planning any such changes. "If people are suggesting that we are going to make wholesale changes in pricing, we are not considering this," he said. Sindt, however, did not rule out the possiblity of implementing more minor changes in its pricing system. "We are continually monitoring the whole nationwide structure to maintain its accuracy," he said. "If we become convinced that we need to make a change, then appropriate adjustments will be made." Sindt acknowledged that concern has been voiced that USDA's price differentials between the New Orleans Gulf and interior markets are not accurate because of higher than normal barge freight rates. He said commodity operations deputy administrator Ralph Klopfenstein is currently in the midwest on a speaking tour and will meet with ASCS oficials in Kansas City next week. Sindt said a number of issues will be discussed at that meeting, including the current concern over the gulf corn premiums. He defended the USDA differentials, saying that these price margins reflect an average of prices throughout the year and that seasonal factors will normally cause prices to increase or decrease. The USDA official also said that only those counties that use the Gulf to price grain are being currently affected by the high barge freight tariffs and increased gulf prices. When asked if the USDA emergency storage program which allows grain to be stored in barges was taking up barge space and accounting for the higher freight rates, Sindt discounted the idea. He said USDA has grain left in only about 250 barges and that, under provisions of the program, these all have to be emptied by the end of March. Reuter 

DUFF/PHELPS LOWERS ATLANTIC CITY ELECTRIC <ATE>

Duff and Phelps said it lowered the ratings on Atlantic City Electric Co first mortgage bonds, collateralized pollution control revenue bonds and debentures to DP-5 (high A) from DP-4 (low AA) and preferred stock to DP-6 (middle A) from DP-5, affecting about 500 mln dlrs in debt. The rating change is a result of a New Jersey Board of Public Utilities' decision that lowered overall net rates by 15.9 mln dlrs, D and P said. The board disallowed about 22.4 mln dlrs of the utility's 239.8 mln dlrs investment in the Hope Creek nuclear plant which will have to be written off by 1988. Reuter 

CHAD SAYS IT KILLED 384 LIBYANS IN BATTLE

Chadian troops killed 384 Libyans and captured 48 in fighting near the key Libyan air base of Ouadi Doum in northern Chad, a Chadian government statement said. The statement issued by Chad's Paris embassy said government troops had "completely annihilated" a Libyan column yesterday some 45 km (28 miles) from the Libyan base. It was the highest number of Libyan casualties reported since January 2, when Chadian troops overran an important garrison at the oasis of Fada with the loss of more than 700 Libyan troops. Ouadi Doumi, central northern Chad, is the site of Libya's main airfield in the country and several clashes have been reported over the past week in the surrounding desert between troops loyal to President Hissene Habre and Libyan forces. Reuter 

AFFILIATED PUBLICATIONS TO BUY BILLBOARD PUBLICATIONS FOR 100 MLN DLRS

AMC <AMO> TAKES NO ACTION ON CHRYSLER <C> BID

American Motors Corp said its directors reviewed a Chrysler Corp merger proposal but took no action on it. The company said its directors met in New York today at a regularly scheduled meeting. The board's review is continuing with the company's independent legal and financial advisers, American Motors said in a statement issued from New York. American Motors' board voted to postpone its annual shareholders meeting scheduled for April 29 in Southfield, Michigan. The next regularly scheduled meeting of American Motors board will be April 29, although it is expected that directors will meet again prior to that date, according to the statement. Early last week, Chrysler said it agreed to buy the 46.1 pct interest owned by Regie Nationale des Usines Renault in American Motors and acquire the balance of American Motors in a transaction valued at 1.11 billion dlrs. Later that week, AMC said it had retained financial and legal advisers and expected to meet periodiocally over the next several weeks to consider the proposal. Reuter 

NESTLE SEEKING AUTHORISATION FOR CERTIFICATE ISSUE

Nestle SA <NESZ.Z> said it would seek shareholder approval to issue participation certificates up to 20 pct of share capital, instead of the current limit of 10 pct. It said it wanted this authorisation in view of future certificate issues. Nestle's nominal capital amounts to 330 mln Swiss francs. Nestle reported net profits of 1.79 billion francs for 1986, up 2.2 pct from 1985, while turnover fell 9.9 pct to 38.05 billion as the Swiss franc strengthened against other currencies. The parent company's net profit rose to 666.6 mln francs from 592.9 mln in 1985, and the company planned an unchanged dividend of 145 francs per share and 29 francs per certificate after placing 170 mln francs in reserves, against 95 mln last year. The payout represented 27.6 pct of group net profit, against 28.2 pct last year. Nestle said it had also invited Fritz Leutwiler, former president of the Swiss National Bank and currently chairman of BBC AG Brown Boveri und Cie <BBCZ.Z>, to join the Nestle board. Reuter 

THERMO ELECTRON <TMO> TO SELL CONVERTIBLE DEBT

Thermo Electron Corp said it filed with the Securities and Exchange Commission a registration statement covering a 75 mln dlr issue of convertible subordinated debentures due 2012. Proceeds will be used principally for acquisitions of companies that complement or expand Thermo's existing line of business and for general corporate purposes, it said. The company said the offering will be sold through Shearson Lehman Brothers Inc, Drexel Burnham Lambert Inc and Tucker, Anthony and R.L. Day Inc. They have an over-allotment option to purchase an additional 11.25 mln dlrs of the debt. Reuter 

ASTROCOM <ACOM> ADDS NEW NETWORKING PRODUCTS

Astrocom Corp said it added two new products aimed at improving on-premise data network efficiency. Its ATDM/MS six-port time-division multiplexor is designed to combine and send data from up to 18 remove terminals on a single transmission link to the controller in the central network. The other product, the Squeeziplexor 3074 coaxial multiplexor, is a low-profile version of the company's Squeeziplexor system that allows one coaxial cable to replace up to 32 individual cables connecting terminals and printers to the central controller. Reuter