FEDERAL PAPER <FBO> OFFERS PREFERENTIAL SHARES
Federal Paper Board Co Inc said
its is offering 2,800,000 shares, or 140 mln dlrs, of its 2.875
cumulative convertible preferred stock at 50 dlrs per share.
    The company said it is applying to list the preferred stock
on the New York Stock Exchange.
    The First Boston Corp, Morgan Stanley and Co Inc and
PaineWebber Inc are underwriting the issues, the company said.
    The preferred stock has a liquidation preference of 50 dlrs
per share and is convertible at any time into common stock at
55 dlrs per share subject to adjustment.
    The preferred stock is redeemable starting at 52.875 dlrs
per share on March 15, 1987, and declining on each March 15 to
50 dlrs on and after March 15, 1997.
    The company said it intends to used the proceeds from the
sale to redeem its entire 125 mln dlrs of its outstanding 13
pct subordinated debentures due 2000, with the balance to be
added to the company's general funds.
 Reuter
