REUTER BUSINESS NEWS HIGHLIGHTS, APRIL 7
Stocks fell steeply from the 2400 level in an
avalanche of selling unleashed by a jump in credit market
interest rates and renewed fears that the dollar could fall
further. After first extending the rally that hit an all-time
closing high of 2405.54 Monday, the Dow Jones industrial
average skidded 44.60 points to 2360.94, the fifth-largest
point drop on record.
    ---
    WASHINGTON - Japanese Finance Minister Kiichi Miyazawa said
he and U.S. Treasury Secretary James Baker were in agreement on
the need for stable foreign exchange rates. Speaking after an
hour-long meeting with Baker, Miyazawa also said he was
satisfied with U.S. intervention to support the dollar against
the yen. He expected the Group of Seven countries, which are
due to meet tomorrow, to reaffirm the so-called Louvre accord
to stabilize foreign exchange rates.
    ---
    NEW YORK - The dollar bounced higher near the close of
trading as the stock and bond markets went into a steep slide,
but most traders are awaiting results from top-level meetings
in Washington before committing themselves.
    ---
    NEW YORK - Texaco Inc said it asked the Texas Court of
Appeals to block enforcement of a 10.3 billion dlr judgment
bond won by Pennzoil Co until appeals are decided. Texaco said
Monday that if it had to pay the full bond it would be forced
to seek protection under Chapter 11 of the Bankruptcy code.
    ---
    NEW YORK - AFG Industries Inc and Wagner and Brown ended
their hostile bid to acquire GenCorp Inc after the company's
dramatic announcement Monday of sweeping anti-takeover
measures. GenCorp, a large diversified manufacturing concern,
announced a 1.6 billion dlr, or 130 dlr a share, buyback of 54
percent of its stock and the sale of its tire and soft drink
bottling units.
    ---
    NEW YORK - A firm comprised of an E.F. Hutton Group unit and
Purolator Courier Corp executives agreed to end its 268 mln dlr
pact to buy Purolator, allowing Emery Air Freight Corp to
proceed with its 306 mln dlr bid for the world's largest ground
carrier. In response, Emery said it would renew its request for
a merger with the Basking Ridge, N.J.-based courier service.
    ---
    NEW YORK - ITT Corp authorized the repurchase of 10 million
shares of its common and preferred stock as part of a program
to enhance its earnings and shareholder value. ITT also said it
will redeem three series of its preferred stock.
    ---
    PARIS - Airbus Industrie, the European airplane
manufacturer, said it would buy engines for its proposed A340
wide-body jet from a joint-venture linking General Electric Co.
and SNECMA of France. The move is a boost for GE's aerospace
division and bad news for the International Aero Engine
consortium. The IAE group was selected to provide engines for
the A340 in December when an earlier GE engine was dropped for
use in the plane. International Aero Engine includes the
world's other leading engine manufacturers, Rolls-Royce, Pratt
& Whitney and Japan's Aero Engines.
    ---
    WASHINGTON - Michael Davidoff, head trader for Ivan
Boesky's Seemala Corp, has consented to Securities and Exchange
Commission penalities and agreed to help in its continuing
investigation of insider trading, the SEC said. Davidoff
recently pleaded guilty in federal court to violating the
government's net capital requirements for brokers and traders.
    ---
    NEW YORK -  Several major computer companies launched new
computers, with Italy's Olivetti becoming the first major firm
to promise products to compete with International Business
Machines' new personal computers launched last week. Motorola,
Wang Laboratories, Unisys and Honeywell Bull all launched new
products, although they were seen as only modest advances in
product lines.
    ---
    NEW YORK - Avon Products Inc, one of the world's leading
cosmetics manufacturers, said it will purchase Giorgio Inc,
maker of the best-selling Giorgio perfume, for 185 mln dlrs  in
cash.
 Reuter
