SOUTHLAND <SLC> TARGETED IN SEC INVESTIGATION
Southland Corp said it was told the 
Securities and Exchange Commission ordered a private
investigation into Southland stock trading and statements made
by the company this year.
    "Southland has been advised that the Commission has issued
a private order of investigation concerning the trading of
Southland stock during various times in 1987 and the issuance
of various public statements by Southland," Southland said in a
proxy statement to shareholders.
    Southland did not elaborate on the SEC order of
investigation, and company officials could not be reached for
comment late Tuesday.
    The SEC has a long-standing policy against confirming or
denying the existence of investigations.
    The proxy statement, filed with the Securities and Exchange
Commission, is required for a November 5 shareholders meeting
called to approve the previously announced acquisition of
Southland by a company controlled by Southland chairman John
Thompson and members of his family.
    Earlier this year, a group led by Thompson acquired
majority ownership of Southland through a 77 dlrs a share
tender offer for 31.5 mln shares of Southland common stock.
    If the merger is approved, common stock still outstanding
will be converted into the right to receive 61.32 dlrs a share
in cash plus a fraction of a share of preferred stock.
 Reuter
