SORO GROUP TO LIMIT FAIRCHILD <FEN> STOCK BUYS
Quantum Fund N.V., a Netherlands
Antilles mutual fund for which New York investor George Soros
is investment adviser, said it has agreed to limit further
purchases of Fairchild Industries Inc stock.
    In a filing with the Securities and Exchange Commission,
Quantum, which already holds 1,647,481 Fairchild common shares,
or 11.5 pct of the total outstanding, said it agreed to the
restriction after Fairchild said its security clearance might
be jeopardized if Quantum acquires a major stake in it.
    But Quantum said Fairchild management was told that Soros,
acting either individually or through entities other than
Quantum that he controls, may decide to buy common stock in the
company on his own behalf.
    Quantum had recently notified the Federal Trade Commission
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976
that it might buy up to 49.9 pct of Fairchild's voting stock.
Unless the FTC had objected, Quantum would have been free, but
not obligated, to buy up to 49.9 pct of Fairchild stock.
    Fairchild management, however, warned that if Quantum, a
foreign entity, raises its stake in the company to 49.9 pct, it
could "impair" the government security clearances Fairchild
needs to carry out its its defense contract work.
    In response, Quantum said it told Fairchild it will not
make "significant additional purchases" of its common or
preferred stock without giving Fairchild enough prior notice to
enable it to consult with Quantum over the impact of action.
    Quantum also said it has withdrawn its notification request
to the FTC and the antitrust division of the Justice Department
of its intent to buy up to 49.9 pct of Fairchild.
    Quantum also said it told the FTC and the Justice
Department that it does not expect to resubmit any further
notifications of intent to significantly raise its stake in
Fairchild at this time.
    The restrictions Quantum has agreed to follow regarding
further dealings in Fairchild stock do not apply to Soros as an
individual investor.
     Fairchild's annual shareholders meeting is scheduled to be
held tomorrow.
 Reuter
