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Pmonal computing 

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Danish food 


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Pages 10-13 


FINANCIAL TIMES 


:o-pc 's Business Newspaper 


TUESDAY JUNE 7 1994 


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Delors retreat boosts prospects for summit 

ban on advertising 





JPhfllp-Morris, US dgarette^fbod and brewing 
giant, lanBCbeda High Court action in Australia, 

-■ Shewing to overturn the country's ban on ci garette 
advertistog oii the grounds that it armies “commer- 
cial freedom of speech". 

V Tobacco advertising became fllegalin Australia 
test year. The country will phase. out cigarette 
sponsorship. Of porting events by .the mid-1990s 

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South Korea steps up state of rwadiness: 

Soutlr Korea toot emergency steps to guard against 
a possible military response by North Korea in 
the dispute oyer nuclear inspections. Page 19 


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! Lae, GovpifMrBtloitj US food and personal 
products company, is to take a $495m after-tax 
charge against earnings in its fourth quarter . 
for a worldwide restr u ct u ring effort Page 19 

Veterans gather on Omaha beach: Veterans 
and international leaders gathered on Omaha 
beach, the most notorious of the five Nonhandy 
landing points because of heavy US ramiaHias, 
for the dosing ceremony of Use D-Day commemora- 
tions. Page 18 

BPC puts off flotation: British Printing 
Company, tbeUK’s largest commercial printer, ' 
postponed its planned SbtatitHi and said it was - 
now imfflt rfy to" seek a stock marina listing: before 
the end of the year. Page 28; Lex, Page 18 

160 die bi China air crash: A China 
Northwest Airlines Tupolev-154 on a fright from 
the tourist centre .of Xian to the southern city 
of Guangzhou crashed shortly alter takeoff, killing 
all J60 people .onboard. Page 5i China air space 
rows, Page * 

Franco-US plastics venture: Union Carbide 

. of theDS ^Md.BatAtocbenLrf Prance, part of 
Elf AquSaihe. are to create a joint ventirrem 
Francaior ttem ra n fo c ture of specialist plastics. 

B AI «ate pIam^&Ui The Israeli government 
announced flaas To cell off 51 per cent of El AL 
the hations^aifliue, by the end of the year, with 
the reapa}ngig49-|)^ cent to be disposed of later. 
Page'5; Swi&drffcigrtnes pledge on ownership 

for US medical group: 

aerospace and healthcare 
. for Del tec, a US medical 
equjtpgpeaTflhqp^^ owned by Pharmacia 

r-- 

-Ba dild d adaiie ikatBg^ state-owned power 
utility, is to be split into 10 enterprises and electric- 
tty production and distribution Is to be partially 
privatised, page 19 : . ' 

Diltpt* telecoms shares priced: A first 
tranche of -sharesdn Koninklipte PTT Nederland, 
state-owned Dutch postal and telecommunications 
operator, will be Dented next week at FI 49.75 
a share, valuing the company at FI 22L9hn (*12^bn). 
The price is slightly higher than many analysts 
had predicted Page 19 

Thailand's Imperial Hotels sold lor $132m: 

Thailand’s Imperial Hotels Group has been sold 
to Gharoeit Siriwattariapakrii, one of the country’s 
richest men, in a deaf which values, the company 
at 5132m. Page 22 . 

Amis pour Into Turkey and Or ooco a The 

arsenals of Tnrkeyund Greece, nominal Nato 
allies whose chronfoally tense relations have 
came under fresh strain in recent weeks, are 
being upgraded alLan unprecedented pace, an 
independent study, shows. Page 2. 

Norway In gas dead witit Franco: Norway 
announced a 20-year contract, valued at NKrSObn 
($&9bn) at currebt prices, to supply natural gas 
to Fiance. Page 4 

UK car registrations rise 10%: New UK 

car registrations in May were up 10 per cent year- 
on-year to l50#70 as demand rebounded from 
the impact of tax increases in April, the Society 
of Motor Manufacturers and Traders said. Page 6 

BAA to doub le airpo r t b ww t n wnt: BAA, 
the privatised UK airports group, announced 
plans to double capital spending to £1.4bn ($2.1 hn) 
over the nextrthree years alter reporting a 13 
per cent rise in "annual pre-tax profits to £322m. 

Page 19; Lex, Page 18; £lbn Heathrow outlay 
planned. Page 24 - - 

Stagnant btcomm for top accountants: 

Five of the UK’s “Big Six” accountancy Anns 
experienced virtually stagnant fee incomes and 
cut staff sharply in the last year, figures released 
yesterday show. Page 20 


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By Lionel Barber in Luxembourg 

Mr Jacques Delors, president of the 
European Commission, yesterday staged 
a tactical retreat over his plans to 
launch "Union bonds" to finance the 
multi-billion dollar transport telecom- 
munications and energy projects known 
as trans-European networks. 

In a further conciliatory gesture, Mr 
Delors agreed to a German plan to set 
up an independent panel of experts to 
study barriers to deregulation on condi- 
tion that it examined both EU and 
national laws. 

The compromise on deregulation cools 


a potentially damaging row between the 
Commission and an Anglo-German alli- 
ance favouring tighter controls on Brus- 
sels legislation. 

As a result of the two agreements a 
meeting of EU finance ministers in Lux- 
embourg ended on a positive note, boost- 
ing prospects for a harmonious Euro- 
pean summit in Corfu later this month. 
But there is stiff a risk of a showdown 
between EU of government over 
who should si£ti£?d Mr Delors as head 
Of the Cwnmifigiffi'. 

Arguments over financing of the 
trans-European networks quickly evapo- 
rated at yesterday's session in Luxem- 


bourg. Mr Delors stated at the outset he 
was unwilling to press the case for Com- 
mission borrowing on the capital mar- 
kets to fill an alleged “financing gw” of 
around Ecu5bn ($5J3bn). 

The UK, Germany, the Netherlands 
and Italy all made clear that they 
wanted strict appraisal of the feasibility 
of the networks - a point echoed by Sir 
Brian Unwin, president of the European 
Investment Bank, which is expected to 
provide the bulk of capital 

Sir Brian said: “1 will not express any 
views on whether there needs to be a 
new finandfli instrument, but the EIB is 
ready to do very much more in financ- 


ing networks. The EIB can raise very 
large financing for sound projects.” 

A working group headed by Mr Hen- 
ning Christophersen, economics commis- 
sioner, has identified 10 priority pro- 
jects. These include high-speed rail links 
from Paris to Strasbourg, and Munich to 
Berlin) a rail-road tunnel through the 
Brenner pass in Italy, and motorway 
routes between Lisbon and Valladolid in 
Spain. 

Mr Delors, who views the networks as 
vital for improving European competi- 
tiveness and creating jobs, said he hoped 
work could start on January 1 1996. He 
remains adamant, however, that the pri- 


vate sector and the EIB alone cannot 
raise enough capital. 

Under the new deal on deregulation, a 
panel of experts will not only scrutinise 
existing European Union laws, but 
will put member states under the micro- 
scope in recognition that most labour 
market law is at national level. “This 
way we have dealt with Mr Delors’ 
complaint that the Commission was 
being turned into a scapegoat," said one 
diplomat 

The panel is likely to include academ- 
ics, businessmen en d civil servants from 
member states with a remit to produce a 
report by 1995. 



March past: Chancellor Helm at Kohl of Germany (left) and Spanish prime minister Felipe Gonzalez 
inspect the guard of honpor at Schwerin in east Germany. The two leaders .were in .the town for 
Franco-German talks yfiBterday.on co-orilinating European Union pobcleS- A news conference is planned 
for tiffs morning naicRmi 


Unilever 
hits back as 
detergents 
battle 
heats up 

By Tony Jackson in London 
aod Ronald van do Krol 
in Amsterdam 


The wrangle over Unilever’s 
revolutionary new detergent 
showed no sign of easing yester- 
day as the Anglo-Dutch giant 
claimed sharp increases in UK 
market share despite accusations 
from a rival that it damages 
clothes. 

But in the Netherlands a lead- 
ing supermarket chain said it 
was considering whether to stop 
stocking the product 
The detergent, launched across 
Europe last month under various 
brand names such as Persti 
Power and Omo Power, has been 
attacked as harmful to clothes by 
manufacturer Procter & Gamble. 

Unilever said yesterday that 
Penal Power's share of the total 
UK detergent market had jumped 
from 7 per cent to 10 per cent in 
recent weeks. Its UK share of the 
fast-growing market for concen- 
trated detergents, in which Uni- 
lever has lost ground to Procter 
& Gamble in recent years, is esti- 
mated to have risen from about 
20 per cent to 30 per cent 

Mr Andrew Seth, chief execu- 
tive of Unilever's UK detergents 
business, said this was a larger 
and faster increase than the com- 
pany had expected. 

Albert Heijn, the biggest Dutch 
supermarket chain, yesterday 
asked Unilever for further infor- 
mation about the detergent so 
that it ran decide whether to con- 
tinue stocking it Heijn said It 
expected to tear from Unilever 
today. • 

.“TTCjere have been reports in 
the media that the product is not 
reliable, but it is only fair and 

Continued on Page IS 
Editorial Comment, Page 17 


Sprint and EDS 
to continue talks 
after merger fails 


By Martin Dickson in Kansas 
City and Andrew Adonis 
in London 

Sprint, the US tele- 
co mmamicatlons group, and Elec- 
tronic Data Systems, the world’s 
largest computing services com- 
pany, said yesterday that they 
had abandoned negotiations fora 
$30bn merger hut were still 
exploring other forms of strategic 
relationship. 

The merger talks failed 
because of a disagreement 
between the two sides over the 
value to be placed on Sprint, 
according to sources close to the 
negotiations. 

Mr Les AlberthaL chairman of 
EDS, and Mr W illiam Esrey, nhipf 
executive of Sprint said yester- 
day that they still believed the 
convergence of their two indus- 
tries would create tremendous 
opportunities. While a merger 
was no longer being discussed, 
“there may be other ways we can 
work together to achieve strate- 
gic objectives." 

Sprint, the third largest US 
long-distance operator, is 
believed still to be seeking an 
alliance with a European tele- 
coms group to further its interna- 
tional ambitions. It has been in 
talks with the French and Ger- 
man state telecoms operators, 
but the discussions do not appear 
to have influenced the failure of 
the EDS deal. 

Sprint, based in Kansas City, 
Missouri, declines to confirm or 
deny the European discussions. 
But one source claimed yesterday 
that European partners had been 
looking at a signi ficant equity 
investment in Sprint or the com- 
bined Sprint/EDS group. 

One European analyst said: 
“Sprint needs an alliance to be 
credible outside the US: but it 
needs a cash injection if it is to 
go anywhere, which makes a 
Franco-German link up very 


CONTENTS 


attractive.” A merger with EDS 
might have led to the creation of 
an information services power- 
house, with a market capitalisa- 
tion of $30bn and annual reve- 
nues of more than $20bn. 

The immediate reason for the 
collapse of the merger was 
money. Hie proposal under dis- 
cussion involved EDS sharehold- 
ers getting one new share in the 
combined company for every 
EDS share. EDS thought Sprint 
shareholders should get 1.1 
shares in the new business, while 
Sprint demanded 13. EDS seems 
to have been surprised at the pre- 
mium demanded by Sprint in 
what had bran billed a “merger 


-Page 18 


of equals”. However, some Wall 
Street analysts said yesterday 
that a deal at l.l ratio could have 
meant a 10 to 15 per cent dilution 
in Sprint earnings per share, 
while a L3 ratio might have 
added to first year earnings. 

Dallas -based EDS ha* held dis- 
cussions with numerous poten- 
tial telecommunications partners 
in recent years - including Brit- 
ish Telecom - but in the past 
found it hard to clinch alliances 
because of its unusual ownership 
structure. 

BT has since forged a $53bn 
alliance with MCL the second 
largest US telecoms group. 

EDS is a subsidiary of General 
Motors, which retains ownership 
of its assets, while holders of a 
special type of GM stock, known 
as class E, have a claim on EDS's 
dividend st r e a m 

To help the Sprint merger 
negotiations. GM said last month 
it could consider spinning off full 
ownership of EDS to Class E 
stockholders through an 
exchange of class E stock for new 
EDS common stock, provided this 
was tax free. 


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© THE Flj^CIAL TIMES LIMITED 1994 No 32,386 Week No 23 


LONDON - PARIS - FRANKFURT - NEW YORK - TOKYO 


Boost from US demand and European exports 

Stronger growth in 
industrial nations 
forecast by OECD 


By Peter Norman, Economics 
Editor, in Paris 

The Organisation for Economic 
Co-operation and Development 
has revised upwards its projec- 
tions of economic growth in the 
industrialised world this year to 
reflect stronger than expected US 
expansion and improved Euro- 
pean exports. 

The organisation, which last 
night released hi g hli g hts of its 
latest forecasts ahead of today’s 
annual meeting of OECD mini* - 
ters in Paris, now expects indus- 
trial countries will grow by 2.6 
per cent this year, half a percent- 
age point more than in its last 
forecast in December. 

Its projections, which do not 
include Mexico, which joined the 
OECD last month, suggest that 
the 24 longest-established mem- 
ber states will achieve overall 
growth of 29 per cent next year, 
up slightly from 2.7 per cent fore- 
cast six months ago. 

Officials said the upward revi- 
sion reflected the effects of 
strong US growth in the final 
quarter of last year, better than 
expected exports from Europe, 
and the Japanese government’s 
economic stimulation package of 
February. 

The organisation expects a 
robust 4.4 per cent increase in US 


OECD OUTLOOK 

S u mmary of projections* 
(Seasonally adjusted si 

annual rates) 

1893 1994 1985 
Real OOP (% dumpa") 


US 

3.0 

4.0 

3.0 

Japan 

0.1 

0.8 

2.7 

Germany 

-1.3 

IS 

2.6 

OECD Europe 

-02 

1.9 

2.8 

Total OECD 

12 

2.6 

2.9 

World Trade 

3.3 

6.7 

72 

hflation (GDP deflator) 


(% change **) 



US 

2.5 

2.1 

2.8 

Japan 

1JJ 

0.8 

0.8 

Germany 

3.9 

2.8 

2.0 

OECD Europe 

3.6 

2.9 

2.4 

Total OECD 

2.6 

2.1 

22 


‘Main assumptions Include: no change 
in policies: no change In exchange 
rates from May 10 1994 
“From previous period 
Soiree: OECD Outlook 55, to be pub- 
lished lata June 1994 

domestic demand in 1994 will lift 
gross domestic product by 4 per 
cent this year, compared with its 
previous forecast of 3.1 per cent 
GDP growth. 

Although it expects US GDP 
growth next year will slow to 3 
per cent, this rate of expansion 
would still be foster than the 2.7 
per cent growth forecast for 1995 
in December. 

In Germany's case, it now 


expects GDP growth of 1.8 per 
cent this year compared with 0.8 
per cent previously. While 
exports are expected to be- buoy- 
ant, Germany’s domestic demand 
is expected to increase by only 1 
per cent this year and 22 per 
cent next year. 

German GDP is projected to 
grow by 2.6 per cent next year 
compared with the 2.2 per cent 
forecast last December. 

The OECD disclosed slight 
upwards revisions to its projec- 
tions for Japanese growth. It 
expects Japan's economy will 
expand 0.8 per cent this year, 
against 0-5 per cent previously, 
and 2.7 per cent in 1995. 

The OECD forecasts a continu- 
ing divergence of employment 
trends between the US and 
Europe. It expects average unem- 
ployment in the US to drop below 
6 per cent of the labour force 
next year, while in Europe it is 
expected to average nearly 12 per 
cent. 

Inflation, as measured by the 
GDP deflator, is expected to 
decline in Europe and be broadly 
steady in Japan over the next 18 
months, but is forecast to 
quicken in the US to 3.1 per cent 
by the end of 1995 from 2.1 per 

Continued ou Page 18 
Editorial Comment, Page 17 


EXHIBITION 

M 

jIudemarsPiguet 

A Tribute To Horological Excellence 

■*. <V VV*-- / • 



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muanphajLr*. qVu a r. %mj 
M-hnmvcmph Ail Jt 2.1 
.InJrsun ngfcrl. /(N( 


You are invited to view the important 
Private Museum Collection of Audemurs Piguet 
being brought to England for the first turn to mark the World Launch 
of the "Grande Sonnerie" wrist watch exclusively at Asprey 

WEDNESDAY 8TH - SATURDAY 18TH JUNE 1994 

The exhibition will include the finest Antique Pocket Watches, exceedingly rare pieces with 
specific technical features and a few veiy special Enamelled Gold Pocket Watches 

Hie complete Audcmars Piguet contemporary collection will be on view and available for sale 



prey 


New Bond Sued. I^xklaa 
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'•V>r. 



NEWS: EUROPE 


Nato arms pour into Greece and Turkey 


By Bruce Clark, 

Defence Correspondent 

The arsenals of Turkey and Greece, 
nominal Nato allies whose chroni- 
cally tense relati ons have come muter 
fresh strain in recent weeks, are 
being upgraded at an unprecedented 
pace, according to an independent 
study. 

Last year alone, Turkey received a 
total of 1,017 main battle tanks - 
almost as much as the entire hold- 
tags of the British army - from the 
US and Germany, while Greece took 
delivery of 725, the study shows. 

Figures on the two countries’ arms 
Imports were extrapolated by 
researchers in Britain, the US and 
Germany from the United Nations 


Register of Conventional Arms, 
which has been tracking the weapons 
trade since the beginning of 1992. 

They indicate that total deliveries 
to Greece and Turkey in 1992-93 from 
Germany and the ITS included 2,822 
tanks, 1.034 armoured combat 
vehicles, 303 large calibre artillery 

systems, 28 attack helicopters and 14 
warships. 

The statistics were compiled by the 
British American Security Informa- 
tion Council and the Berlin Informa- 
tion Centre for Transatlantic Secu- 
rity. Both axe independent lobby 
groups that promote disarmament 

A spokesman for the Stockholm 
Institute for Peace Research, another 
arms trade watchdog, said its 
researches also pointed to a heavy 


flow of armaments to Greece and 
Turkey. 

Host of the deliveries were made 

free of charge under a p rogr am me 

known as ftocaHa, under which the 
smaller Nato countries can receive 
weapons from allies who are obliged 
to diwh their arsenals under anus 
control agreement. 

Even though much of the equip- 
ment being transferred is second- 
hand. it represents a huge improve- 
ment over existing Greek and 
Turkish stocks. 

Host of the tanks involved have 
been US-built M-608 or German Leop- 
ards. both of which cany much more 
sophisticated electronic equipment 
than the H48 which has beat a main- 
stay of both armies until recently. 


During the cold war period, the 
leading Nato members worked ener- 
getically behind the scenes to put 
some Unfit on the intensity of Greek- 
Turkish rivalry, but this effort has 
now slackened. 

An initiative to promote confi- 
dence-building measures among the 
countries of s tern E ur ope — 

launched in Vienna under the aegis 
of the Helsinki process - was quietly 
abandoned after one meeting in 
Biarch, diplomats say. 

Greece and Turkey now find them- 
selves sympathising with opposite 
sides in farmer Yugoslavia, with Tur- 
key one of the strongest supporter s of 
Bosnia’s Moslem leadership and 
Greece a traditional friend of the 
Seths. 


Relations between Athens and Ank- 
ara have deteriorated in rec ent day s 
following allegations in the Turkish 

wwHa that arppnriwc of KtUtHsh 

insurgency which has claimed 
around 12,000 lives in eastern Turkey 
were trained in Greece. 

Without directly blaming the Greek 
gove rnm en t, the Turkish authorities 
have pointedly drawn the attention 
of several western governments to 
these reports. 

The Greek government has angrily 
rejected the allegations, and the 
Athens media have quoted a Kurdish 
prisoner in Turkey as saying, in a 
message smuggled out of JaB, that his 
account of training in Greece was 
extracted under duress. 


Montell 
plastics 
venture 
may go to 
court 


By Emma Tuckar In Brussels 
and Daniel Green in London 

Challengers to a $3bn <£2bn) 
plastics joint venture between 
Anglo- Dutch company Royal 
Dutch/Shell and Italy’s Mont- 
edison are likely to take the 
European Co mmis sion to the 
European Court of First 
Instance, one step below the 
European Court of Justice, if it 
approves the deaL 

A final decision on the 
fiercely contested case is likely 
to be given tomorrow. The 
Commission is expected to give 
its approval after having con- 
sidered concessions put for- 
ward by Montedison and Royal 
Dutch/Shell that they say will 
limit the strength of the joint 
venture. 

But the deal's main challeng- 
ers - principally US-owned 
Union Carbide -are not satis- 
fied that the undertakings will 
prevent the joint venture, 
Montell, from dominating 
the European polypropylene 
market and hindering competi- 
tion. 

“There is a lot at stake,” said 
one observer of the case. “The 
complainants would have to 
consider their position.” 

The challengers to the Mon- 
tell deal argue that conces- 
sions - hastil y presented by 
MontedfspreaiiH Royal 
Shell to the Commission last' 
week - do not answer the 
objections raised by the Com- 
mission in the first place. An 
advisory committee to the 
Commission last month recom- 
mended that the deal be 
blocked. It is understood that 
their objections related to the 
prospect of a near monopoly on 
polypropylene technologies. 

The creation of Montell 
would be one of the biggest of 
a series of joint ventures and 
asset sales in the European 
chemicals industry in the last 
two years. M a n u fac turers are 
restructuring to cope with 
recession and strong new 
competitors in eastern Europe, 
the Middle East and east 


Asia. 

Montell would be easily the 
world’s biggest polypropylene 
manufacturer. Thanks to a sep- 
arate arrangement between 
Shell Oil, the US arm of the 
company, and Union Carbide, 
it would also give Shell control 
over two of the most important 
polypropylene manufacturing 
technologies. 

A decision by the contes- 
tants to continue the challenge 
in the European Court of First 
Instance would be an unusual 
step. 

The Commission has only 
rarely been challenged, the 
best known case being when 
Air France challenged British 
Airways' acquisition of UK air- 
line Dan-Air. Earlier this year, 
the court rejected Air France’s 
appeal against the European 
Commission's finding that Brit- 
ish Airways' acquisition of Dan 
Air was outside the scope of 
the European Merger Regula- 
tion. 


Hungary looks down the Polish road 

Warsaw’s economic moves are attracting interest as a roleimodel in Budapest, 
write Christopher Bobinski in Warsaw and Anthony Robinson in London 


A s Hungary prepares for 
the return of a Social- 
ist government, Polish 
voters are finding that, nine 
months after their own elec- 
tions, the Socialist-led Polish 
coalition government has 
delivered little in the way of 
economic pain-relief. 

On the contrary, the Social- 
ist finance minis ter Mr GlZC- 

gorz Kolodko, has promised to 
press ahead with reforms 
which will cut welfar e spend- 
ing and focUS snrial jinii pen- 
sion payments more closely on 
the truly needy. At the same 
time he has promised to 
tighten the struggle against 
inflation and strengthen the 
institutional UTMtorpinning of 
the capitalist economy through 
the development of investment 
and pension funds. 

Market reformers in Hunga- 
ry’s Socialist party, led by Mr 
Laszlo Bekesi, its economic 
spokesman, would like a 
So cialis t-led Hungarian govern- 
ment to follow similar polides. 
But the overall majority given 
to the Hungarian Socialists at 
the second round of voting last 
month, maana that the parly 
will be under much stronger 
pressure from rank-and-file 
votes to deliver on its elec- 
toral promises to ease the eco- 
nomic pain. 

Unlike Hungary, whose con- 
servative postrCammimist gov- 
ernment decided to honour its 
Inherited foreign debt obliga- 


Thanks in part to its impec- 
cable credit record Hungary 
has been the biggest recipient 
of foreign equity capital, more 
than 87bn since 1989. The new 
government will be extremely 
reluctant to put future flows at 
risk by changing its attitude to 
foreign creditors. But past bor- 
rowing has left the Incoming 
government with a $25bn gross 
debt burden on the country’s 

jUSt Over 10m inliaWfemlii and 

a heavy repayment schedule, ft 
therefore has less room for 
manoeuvre than the Polish 
government but will probably 
be under greater pressure to 
satisfy dmandc for improve- 
ments in standards of living 
than the Polish government 
where responsibility is shared 
between coalition partners and 
economic growth is raising 
incomes across a broad front 

Lower debt payments, and 
shock therapy reforms begun 
in 1990, helped Poland achieve 
a return to economic growth 
by 1993 while Hungary is still 
struggling to resume steady 
growth. Warsaw expects 
growth to continue at 46 per 
cent a year over the next two 
years and possibly accelerate 
if, as expected, foreign invest- 
ment increases. 

As long as Poland’s coalition 
partners, the PSL fanners 
party and the post-Oommunist 
SLD stay together, they have 
Hme to push thro ugh contro- 
versial reforms of the welfare 


turn s to the letter, Poland's for- .^system and still run for re-elec- 
Dutch/"[ THgr Communist governmente^UafrfiuenBsftdly in 1997, hence 
refined on its official debt in "their willingness to continue 


the early 1980s and the first 
post-Communist government 
did likewise on its eventual 
$13bn bank debt shortly after 
taking power. Now the new 
Socialist-led Polish government 
Is benefiting from Paris and 
London Club debt reduction 
and rescheduling accords. 

International bankas believe 
one of the risks inherent in the 
Hungarian election result 
could be pressure from below 
for the new government to Fol- 
low Poland’s example and seek 
some form of debt relief, a 
temptation absolutely rejected 
by Hungarian governments in 
the past 


with tough measures now. 

The Polish government's eco- 
nomic plan for the next four 
years, to be unveiled in parlia- 
ment shortly, includes cutting 
the link between pensions and 
average wage rises for 7m 
senior citizens and switching 
the indexation formula to a 
less generous frifiatim i- liTilced 
system. It also tightens the cri- 
teria for disability pensions 
and unemployment benefits. 

The government’s strategic 
choice to go for the long haul 
and avoid short-term pallia- 
tives has disillusioned many 
voters but cost little in real 
political capital. The coali t ion’s 



Prime minister Waldmar Pawlak of Poland: tough measures in 
store in new economic plan *p 


refusal to ease monetary and 
policies, which it hinted 
at but never actually promised 
during the election campaign, 
has caused the protest vote 
that swung it into power to 

evaporate. Its core support is 
still there but the government 
is now viewed by the mass of 
voters as differing little from 
that which ran the country 
after 1989 when the Commu- 


nist system slipped from the 
stage with barely a whimper. 

The failure of an attempt by 
the Solidarity trade union, now 
back in opposition, to get a 
general strike under way in 
April left the government feel- 
ing confident that it could ride 
out future discontent as it 
awaits the economic upswing 
to translate .into tangible 
improvements for the man in 


the street 

The benefits of tough finan- 
cial and monetary p olicies are 
already becoming more appar- 
ent Far a start, Polish unem- 
ployment is beginning to fall. 
Registered unemployed have 
fallen for two months in suc- 
cession to &9m or 13.7 per cent 
of toe w ork f orce, while indus- 
trial output in the first four 
mouths of the year was run- 
ning 10 per rent higher than in 
tiie same period last year. 

Corporate profits are also 
improving as productivity 
grows and costs come under 
control. Industrial companies 
earned 9,000bn zlotys (£265m) 
net in the first three months of 
the year compared to a L138bn 
zloty net loss in the aamp quar- 
ter of 1993. Foreign currency 
reserves, at more than $4bn, 
also continue to grow, even 
though the country registered 
a payments deficit of 3438m in 
the first quarter as exports 
continued to lag behind 
imports, producing a trade def- 
icit which the government 
expects to continue vmtfl 1997 
at least 

M eanw hile, the budget defi- 
cit remains under control and 
inflation is falling to an expec- 
ted annual rate of 25 per cent 
this year, down from 35 per 
cent In 1993. This has allowed 
the hank to lower base interest 
rates by a point or two last 
month This has left the NBP 
confident enough to press- 
ahead with introducing a 
“hard zloty” next January. The 
change will erase four zeros so 
that (me US dollar win no lon- 
ger be worth around 25,000 but 
only 26 zlotys. 

Critics erf the Polish govern- 
ment, however, question its 
performance and argue that 
the positive outcome of the 
past nine months is the result 
of the policies of previous Soli- 
darity coalition government 
led by Ms Hanna Suchocka. 
They fear that the present gov- 
ernment, led by Mr Waldemar 
Pawlak from the PSL fermere 
party and sensitive to protec- 
tionist and other claims from 
the powerful farmers’ lobby, 
will sooner or later turn to 
more inflationary policies. 


Ankara seeks to soothe debt concerns 


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By John Murray Brown 
In Istanbul 

Turkey yesterday sought to 
reassure foreign bankers that 
it will meet its international 
debt obligations, amid tenta- 
tive signs the government’s 
liquidity crisis is easing. 

Speaking to a conference in 
Istanbul, Mr Bnlent Ozgun, 
bead of the government’s debt 
department, said the country 
would meet the $9.1bn in capi- 
tal and interest owed on its 
S67bn foreign debt this year. 

The government last week 
eased its immediate liqnidity 
worries, successfully returning 
to local debt markets, selling 
3-monto paper at 50 per cent 
interest Tbe tighter monetary 
conditions helped stabilise the 
lira, which yesterday was trad- 
ing at around 33,000 to the 


dollar compared with 41,000 in 
mid-April. 

Turkey’s growing foreign 
debt burden Is a function of 
last year’s fiscal strategy, 
which relied on heavy offshore 
borrow i ng in an effort to ease 
the pressure an domestic Inter- 
est rates, reduce budget costs 
and avoid crowding out the 
private sector. But after poll- 
ing a SSOOm global issue In 
March, and repeated credit 
downgradings by both Stan- 
dard & Poor’s and Moody's, 
the US rating agencies, Turkey 
wiD need the help of bilateral 
and multilateral official credi- 
tors if it is to avoid a debt 
rescheduling. 

Mr Ozgun yesterday critic- 
ised international credit agen- 
cies for being too hasty tn 
downgrading Turkey in Janu- 
ary, the event which triggered 


the run on the currency and 
plunged the country into this 
five-month crisis. “We paid 
our debts during the worst 
times, and we will continue 
doing so,* he said. He ruled 
out an early return to the 
bond markets, however the 
government Is looking to 
secure agreement with the 
International Monetary Fund 
early next month on a standby 
facility. In an effort to boost 
investor sentiment. 

With an economic slowdown 
likely and toe devaluation, 
officials expect a cut In 
imports. With tourism reve- 
nues about the same as last 
year’s, officials are projecting 
a balanced current account in 
1994. On the capital account, 
as long as Turkey Is able to 
roll over existing lines, tbe 
government expects zero net 


borrowings this year. “We 
don’t think it’s in the interests 
of tiie foreign lenders to go to 
a rescheduling instead of keep- 
ing their trade lines open,” 
says Mr Necati Ozfirat, head of 
the state planning organisa- 
tion (SPO). 

With $4.7bn wor th of 
medium- and long-term princi- 
pal maturing in 1994, Turkey 
is looking to some S3.7bn of 
new drawings tiris year. Direct 
foreign Investment is proj- 
ected at $600m. Portfolio 
investment, which Includes 
both privatisation receipts and 
planned sale of convertible 
stock In PTT the state-owned 
telecommunications company, 
is t a rg ete d at J2.ibn. The SPO 
is forecasting a S2.5bn net 
short-term capital outflow, as 
Turkish banks and corpora- 
tions reduce tbeiT foreign 


exchange exposure following 
toe lira’s 50 per cent fall 
against the dollar. The change 
in official reserves, now at just 
$3.4bn, or less than two 
months’ import cover, is proj- 
ected at $2bn. 

Mrs Tansn Ciller, prime min- 
ister, announced toe S 1-2 bn 
Gulf defence fond - Arab and 
US funds lodged in the Bank of 
New York to finance Turkey’s 
P-16 fighter aircraft pro- 
gramme - is to be transferred 
to the Turkish central bank, 

boosting reserves. Turkey is 
also looking at credits from 
the Council of Europe’s social 
fund, and is calling for toe 
release of toe European 
Union's fourth financial proto- 
col. an aid package for Turkey 
which Cfreece Is blocking In an 
at t empt to wring concessions 
on the Cyprus dispute. 


Ferruzzi’s finery goes under the hammer 

Auction marks end of an era of corporate extravagance in Italy, writes Andrew Hill 


A fter the trials, toe auc- 
tions. Today, in Milan, 
Sotheby's will begin a 
three-day sale of paintings, fur- 
niture, tapestries and orna- 
ments which adorned the 
boardrooms, company flats and 
country residences of Ferrnzzi- 
Montedison, before its indus- 
trial empire collapsed last year 
amid allegations of bribery and 
fraud. 

17)0 items belong to the com- 
pany, now going through pain- 
ful restructuring, and the sale 
should raise between L3bn 
(£l.2m) and L5bn (£2.lm), mak- 
ing a tiny dent in the L31,000bn 
of debt built up at Ferruzzi- 
Montedison under the chair- 
manship of the flamboyant Mr 


Raul Gardini, who committed 
suicide last year while under 
investigation. 

The sale marks the formal 
end to an era of extravagant 
Italian c o rp o r ate spending in 
the late 1380s and early 1990s. 
In addition - in spite of Sothe- 
by’s and Femizri’s attempts to 
play down tbe link - the whiff 
of scandal is bound to attract a 
few buyers on the look-out for 
collectable souvenirs of Italy’s 
Tcmgentopoii bribery and cor- 
ruption investigations. 

It is still only six weeks since 
Mr Sergio Cusani, a financial 
intermediary to FerruzzkMont- 
edison. was jailed for corrup- 
tion and false accounting, and 
less than a month before the 


trial of top politicians from the 
discredited old regime, many of 
them suspected of receiving 
bribes from the group. 

In terms of qualify, the auc- 
tion probably has more in com- 
mon with last year’s nine-day 
auction of items from the 
Thum and Taxis estate, which 
raised DM3L5bn (Sitelm) for 
Princess Gloria von Thum and 
Taxis to pay inheritance taxes, 
than with recant British auc- 
tions of trinkets belonging to 
Mr Robert Maxwell, the dis- 
credited media magnate, and 
Mr Asti Nadir, the fugitive 
businessman. 

Mr Giuseppe CeccateTH, man- 
aging director of Sotheby’s 
Milan office, says be is hoping 


for international interest in the 
top item in the sale, a Roman 
landscape by the 18th century 
Flemish-bora artist, Jan Frans 
van Bloemen - guide price: 

L250m-L350m. 

O n tbe other hand, he 
does not try to play 
down the novelty 
value of a 19th century games 
table - a cross between 
snooker and pin-ball - which 
Mr Gardini would have used 
when entertaining at the com- 
pany’s Tuscan hunting lodge. 
For those unable to stump up 
its estimated price of up to 
L40m, there are more modest 
lots made up of glass from the 
Fereusd-controlled Venini fac- 


tory, which could sell for as 

little as L350.000. 

Patient collectors may yet 
wait for what could be even 
more spectacular sales as the 
TanyentopoH investigations 
run their coarse. Last year, for 
example, police seized 60 paint- 
ings, Including several modem 
masterpieces, from the apart- 
ment of Mr Dutito PoggtaGm, a 
senior health ministry 
alleged to have taker bribes. 
At the thna, the value of the 
paintings alone was estimated 
at L5bn. For an Italian art mar- 
ket now tn the doldrums, the 
irony is that it was probably 
the purchase of such works 
which helped fuel the buoy- 
ancy of the late 1980s. 


EUROPEAN NEWSDjGEST 

Papers prosper 
in electronic era 

toteternatiS^ the printing industry research organise- 
tton*. Its report shows that, overall, newspap^s 
the largest share of advertising revenue in western Europe 
and generated total revenues to 1992 (toe test yrarwhaj 
figurasare available) of 538bn (£25bn). During 1992 raorethan 
gfimnewspapers were bought everyday in tje Ewepean 
Union and European Free Trade Association, la Austria, dally 
newspaper sales rose tor 14.6 per cent between 1988 awl 1992, 
reflecting the launch of a new national newspaper. Dunng the 
on ttip period, however, sales of Greek daffies fell by 34.7 per 
cent, mainly, ft is believed, because publishers tned to raise 
cover prices too high- 

The two biggest markets by far in astern . Europe are 
Germany where 26m copies are sold every day, fo llowed b y toe 
UK with 20.7m. France is third with 8.8m. Most mvestmeutsin 
eastern Europe by western publishers have been in Poland, 
the Czech Ke pnhifr and Hungary but the first moves into 
Th rigarte and Romania are expected this ye ar.Th e largest 
newspaper publisher in Europe measured by newspaper sales 
is Germany's Axel Springer, followed by Mr Rupert Murdoch’s 
News International and the private German group Holtz- 
hrinck. * European Newspaper Industry, Pira International, 
Randalls fine d, Leatherhead, Surrey, UK 0372/376161. £450. 
Raymond Snoddy, London 

Schneider cash transfers probed 

nfRHaiq from Germany's federal criminal police office and toe 
Frankfurt state prosecutors' office will today start cond ucting 
inquiries in Geneva Into money transfers made by Mr J Organ 
Schneider, the businessman whose disappearance in March 
triggered Germany's biggest property collapse since the sec- 
ond world war. The prosecutors’ office said yesterday it sus- 
pected Mr Schneider of transferring DM245m (£98m) of Schnei- 
der group out of Germany daring March at a time when 
tiie group’s liquidity problems were mounting. The money is 
believed to have bean transferred via London to Nassau in the 
Rahawifls before ending up in Geneva. As a result, said the 
prosecutor’s office, the fugitive businessman was under suspi- 
cion of conducting “fraudulent bankruptcy on a massive 
scale”. He already fere* charges of tax evasion and fraud. The 
Srhnpiitar group collapsed in April owing more than DM5hn. 
Despite several reported si ghting s , his whereabouts are still 
unknown. Demid Waller, Frankfurt 

Bosnia talks get under way 

Talks on a comprehensive ceasefire in Bosnia got under way 
yesterday four days late and in an atmosphere of belligerence 
and suspicion. The mainly Moslem Bosnian government e nded 
its boycott of the United Nations-sponsored talks yesterday, 
following the withdrawal of armed Serbs from a 3km exclusion 
zone around Gorazde in eastern Bosnia. However, Mr Yasushi 
Afcaahi, who heads UN operations in Bosnia, failed In his 
effort to bring the two sides to the same negotiating table, 
damping hopes that a nationwide ceas efire was a real possibil- 
ity. Mr Akashi put to each side separately a draft UN plan 
which reportedly Includes an initial four-month ceasefire, 
withdrawal of heavy weapons from front lines and the separa- 
tion erf forces by interposition of UN troops. The plan would 
require at least 5,000 extra UN peacekeeping troops in Bosnia. 
The Bosnian government favours a short truce, fearing that a 
four-month oeasMire would effectively freeze existing battle 
lines and leave the Bosnian Sobs in possession of territory 
seized by foroe. The Bosnian Serb side wants a permanent 
ceasefire, or one lasting at least six months. Frances WHUdmsi 
Geneva 

SPD vows to stop squabbling 

Germany's opposition Social Democratic party (SPD) yester- 
day admitted that the wind had gone out of its campaign to 
win the October elections but vowed it would dose ranks for 
the last leg. Mb* Rudolf Scharping, its leader, said that the 
party had been unable to achieve a “significant lead" in recent 
months, a setback which he blamed on internal squabbles. 
“Everyone has finally sworn to end tills process,” he said after 
a meeting between the party leadership and SPD members 
from all 16 L3nder governments. A series of recent opinion 
polls have shown Chancellor Helmut Kohl's Christian Demo- 
cratic Union pulling level with or overtaking the SPD, bol- 
stered by signs of an economic recovery and stronger support 
in eastern Germany. 

Going bade on earlier comments, toe SPD also said that “for 
technical reasons” it would keep the so-called “solidarity sur- 
charge” - a 7.5 per cent tax to finance investment in eastern 
Germany - until 1996. The party had earlier said the sur- 
charge would be scrapped and replaced with a 10 per cent 
charge on single people earning over DM60,000 annually. This 
will now be introduced in 1996. Michael Lmdemam, Bonn 

Austrian tensions grow on EU 

The c am p a ig n leading up to next Sunday's referendum in 
Austria on European Union membership has readied fever 
Pitch, as tire latest opinion polls indicate the vote could go 
other either way. A poll taken in recent days indicated that 31 
per cent off voters favoured joining, with a s imilar number 
apposed and 38 per cent u nd e c i de d. The socialist-conservative 
coalition government has been betraying increasing signs of 
anxiety. The ATX index of 19 leading shares on the Vienna 
bourse has lost 5 per emit of its value in the past week, with 
investors jittery about tire referendum outcome. 

In Norway, also a candidate for entry, resistance has 
reached new heights, just five months ahead of a national 
referendum, according to a poll published yesterday. Opposi- 
tion to joining rose by one percentage point to 56 per cent, at 
the expense off support for membership which fen to 32 per 
cent from 33 per cent in May, the lowest level this year. Jon 
Rodger, Zurich and Karen FossU, Oslo 

ECONOMIC WATCH 


W German building orders rise 


Wwlam Qariuauy 

Nsw bortskuctJott opoeos . 

annus* ^change . 


40 


+6 


44 


4 2 - 



Construction orders in 
western Germany rose by 8.4 
per cent in the first quarter 
compared with the same 
quarter a year earlier, the 
Federal Statistics Office said. 
D eman d for new housing was 
op 33 per cent, while orders 
for commercial b uildings rose 
2S per cent, and government 
orders declined 3.2 per cent 
In terms of market share, 
boosing grew to 26.9 per cent 
of the market from 25£ per- 
cent. In eastern Germany, 

construction orders rose 355 

~ . * 34 ceat 111 toe first quarter. 

S«««c CWaalrBaix ■ . : h ^f lD g dOUbfed. 

. . ... , Commercial orders rose 20.8 

par cent, and public orders were up 195 per cent As a share of 
the overall eastern German market, housing grew to 97 s tv»r 
cent from 1&8 per cent Reuter, Wfes&atfen 8 8IBW W 27-8 ^ 

■ Car sales in Italy rose 7.53 per cent year*m-year to Mav 
with 178£89 units delivered during the month, the car indu* 
try association, Anfla, said. 

■ Spain's official currency reserves Ml $394An (£262m ) in 
May from April, according to provisional figures from the 

Bank of Spain. Official reserves stood at S4A34lhn on May 31 

■ Retail pharmacy prescription drug sales in Europe’s top 
Seven m a rke ts for January-March were flat compared with a 
year ago at Sl0_85bn (£7.2bn), according to 

market research company IMS Internationa l 






ITNANCIAJL TIMES TUESDAY. JUNE 7 1994 


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By George Graham 
in Washington 

The International Monetary 
Fund has expanded its top 
level of management, naming 
three new deputy managi ng 
directors to takethe place of 
Mr Richard Erb, the outgoing 
deputy managing director. 

Mr Michel Camdessus, IMF 
managing director, yesterday 
appointed Mr Stanley Fischer, 
an economist at the Massachu- 
setts Institute of Technology 
in the US, along with Mr 
Alassane Ouattara, former 
prime minister of Ivory Coast, 
and Mr Prabbakar Narvekar, 
an IMF official. 

Sfncethe IMF’s top position 
is usually held by a European, 
the deputy’s post has been, by 
tradition, fn the gift of the US. 
In recent weeks, US Treasury 
officials have been at pains to 
ensure that they retained this 
pre-eminence. 

Mr Fischer was accordingly 
named first deputy manag in g 
director, with broad responsi- 
bilities across all the . issues 
facing the IMF. \ 

All three deputies have 
worked for many years in 
International financial institu- 
tions. Mr Flsbher used to be 
chid! economist at the . World 
Bank, Just across, the road 
from the IMF m Washington, 
while Mr Narvekar has spent 
more than 40 years at the IMF. 

Mr Ouattara, meanwhile, 
has twice before worked tor 
the IMFr Be left- in 1988 to 
become governor of the central 
bank of the African franc zone 
and, later, to take charge of 
the Ivory Coast’s economy. 

The detfSion to enlarge the 
IMF’s upper hierarchy has 
been grated by some suspi- 
cion within the organisation. 

Some IMF -officiate fear that 
it will' simply: add~^ another 
layer; above:; that -of the 
regional directors*' who now 
report " directly- , to ' Mr 
Camdessus; . " 

He saUt ye^erddy that the 
rrorganiHtiDhwaatbe first 
since a deputy ^managing 
director' Wis:, anointed in 
1949, andrygaa^®s;®5sary to 
deal with Q^^qdd espansiaa 
in the MFsmcritbership. 


California dominates 
primary day in US 


By Jure* Martin, IIS. . 

Editor, hi Washington 

California dominates the 
heaviest mid-term primary 
round today in the US, where 
eight states choose candidates 
to contest four governorships, 
five senate seats and- 87 House 
of Representatives places. 

Mr Fete Wilson, the Republi- 
can governor, and Ms Kathleen 
Brown, the Democratic state 
treasurer, are strongly 
favoured in California to 
emerge as opponents in the 
country’s most important race 
in November. The outcome will 
have a heavy bearing on the 
1996 presidential election -a 
Republican victory would be a 
clear setback for President Bill 
Clinton and the Democrats. 

Mr Wilson must Erst beat Mr 
Ron Unz, a computer magnate 
from the far right whose- cam- 
paign has been mostly self-fi- 
nanced. The governor holds a 


lead of upwards of 20 points. 

- Ms Brown's father, Edmund 
G. Brown Sr, known as Pat, 
and her . brother Jerry each 
served two terms as governor 
of California. She must over- 
came challenges from Mr John. 
Garameniii, the state insurance 
commissioner, and Mr Tom 
Hayden, now a state senator, 
once an anti-Vietnam War 
activist and once husband of 
Jane Fonda, the actress. 

Six months ago, with Calif- 
ornia still in recession and Mr 


Wilson unpopular, Ms Brown 
seemed certain to continue the 
family political dynasty. But, 
with her campaign lacking def- 
inition and the economy 
improving, the governor, prom- 
inent in rebuilding efforts after 
the Los Angeles earthquake in 
January, has recovered. 

Mr Wilson has also benefited 
politically by riding with the 
Californian backlash against 
illegal immigration. A Los 
Angles Times poll last week 
found 5932 per cent support 
for a proposition that may be 
on the November ballot and 
would bar illegal hnwiigra njg 
from many public services, 
including education. Ms Brown 
opposes such a move. 

Also closely watched is the 
race for the Senate seat held by 
Ms Dianne Feinstein, a D amp , 
crat. Her likely Republican 
challenger is Congressman 
Michael Huffington, if he 
beats former Congressman Bill 
Dannemeyer, another ultra- 
conservative. 

Mr Buffington's wain 
to fame are less his political 
record than his vast oil wealth 
- he spent a national record of 
$lten (£6.6m) to win his House 
seat two years ago - and ambi- 
tious wife. She is the former 
Ms A rianna Stassinopoulos, an 
author who cut a wide social 
swathe through Britain in the 
1970s and now seems intent on 
propelling her husband to the 
top of the US political tree. 


Again. Ms Feinstein had 
looked unbeatable, but her 
approval ratings have dropped 
below 50 per cent and she now 
holds poll leads of only 5-14 
points. As in the Wilson-Brown 
race, Ms Feinstein and Mr Buf- 
fington have already begun 
directly attacking each other. 

In other races across the 
country, there Is less opportu- 
nity for the fundamentalist 
right to make a dear mark, as 
happened last weekend with 
the nomination of Mr Oliver 
North as Republican senatorial 
candidate in Virginia. Senator 
Bob Dole, Republican minority 
leader in the Senate, was con- 
cerned enough about the 
broader message of that 
selection to say he might not 
welcome Mr North to the 
chamber. 

Most closely watched will be 
+>ia Democratic senate primary 
in Montana, where Senator 
Conrad Burns is one of the few 
vulnerable Republicans for 
November. Mr Jack Mudd is 
favoured to beat former Sena- 
tor John Melcher, but the Dem- 
ocratic race has been compli- 
cated by the presence of a third 
candidate. Ms Becky Shaw, 
girl-friend of a former dose 
aide to Mr Melcher. She may 
draw votes from Mr Mudd. 

In Iowa, Governor Terry 
Branstad, in pursuit of a fourth 
term, is in a tight Republican 
primary against C o ng r^s" 13111 
Fred Grandy. 



Western hopefuls: Dianne Feinstein, John Garamendi and Pete WQsoa are running in California 


Reich on a ‘third way’ to jobs 

David Goodhart records the US labour secretary’s ‘flexible’ views 


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C reating not only more 
Jobs but better jobs, in 
an increasingly inse- 
cure economic environment, 
- , was one erf the promises that 
propelled a Democrat into the 
. ‘ White House 18 months ago. 
This week, Mr Robert Reich, 
. - the loquacious US labour secre- 
tary. is. touring Europe with a 
progress report on that 
- promise and advocating- a 
"third way” between the low 
unempioymeni/lcrw social 
protection US model and the 
; high unemployment /high 

social protection . European 
model 

, : . Mr Reich, witha flair for 
[ i coining phrases reminiscent of 
Ms fellow economist, Professor 
J K Galbraith, paints a bleak 
vision of the .fotiire. unless the 
gap between the . labour map 
kefs privileged and its 
deprived is cksed. - - 
He describes tiow US society 
is already divided into .an §lite 
‘•over-class'* of is per cent of 
the population, increasingly 


segregated from the rest of 
society, and a deprived “under- 
class” of a similar proportion. 
This division has bon a bless- 
ing for the US private security 
industry, which has more 
employees than the public 
police forces. 

Squeezed between the over- 
and under-class is the “anx- 
ious" class, what used to be 
called the middle-class, whose 
incomes have been static for 20 
years and who are increasingly 
prey to demagogues demand- 
ing an end to free trade. “The 
coming political battle will be 
for the souls of the anxious 
class," says Mr Reich. 

So how is the Democratic 
administration doing in this 
battle?. Some 3m mainly pri- 
vate-sector jobs have been cre- 
ated in the past 16 months, an 
improvement on the previous 
four years but one that is sub- 
stantially cyclical in nature. 

The "structural" reforms 
— aimed at raising the quality 
of tbs workforce and creating 


more good jobs - take longer. 
There are three basic ideas: to 
improve the school-to-work 
transition with better voca- 
tional training, to provide 
more tax credits for low earn- 
ers, and to turn the social 
safety net into a lifelong learn- 
ing “springboard" to re- 
employment. 

“Legislation we now have 
before Congress will begin to 
turn onr unemployment sys- 
tem into a re-employment 
system that launches workers 
into new jobs. Security comes 
from maintaining a flexible set 
of skills," says Mr Reich. 

H e insists that it is not 
just a matter for the 
state - rather for gov- 
ernment, employers and 
employees. 

What relevance does this 
have for the Europe Mr Reich 
is visiting - yesterday in Lon- 
don, today in Paris at the 
Organisation for Economic 
Co-operation and Development, 


and on Wednesday at the Inter- 
national Labour Organisation 
conference in Geneva? 

Yesterday, to his hosts in 
London, the left-of-centre Insti- 
tute for Public Policy 
Research, he stressed that 
increased flexibility is not the 
same as the labour market 
de-regulation favoured by Brit- 
ish Conservatives. 

The secretary also argued 
against traditional job subsi- 
dies, saying that, in 70 per cent 
of cases, employers are being 
subsidised for employees they 
would have hired without a 
subsidy. 

Mr Reich was also circum- 
spect about whether trade 
sanctions are the right means 
to enforce basic labour and 
human rights standards in the 
developing world. He does 
believe it is legitimate to press 
developing countries on some 
basin standards but he believes 
this pressure should be exerted 
through “a menu” of levers, 
not just through trade. 


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Driving those yellow dog 
blues out of the Old South 

George Graham finds the US Republican party trying to advance 
on what used to be unpromising ground in the state of Mississippi 


Y ou have to be at least 
74 years old, and white, 
to have taken part in a 
congressional election in 
Mississippi's first district when 
Congressman Jamie Whitten 
was not running. 

The veteran Democrat has 
represented the district, which 
stretches across the north of 
the US state, since 1941, rarely 
facing any challenge and, even 
when there was opposition, 
only once gaining less than GO 
per cent of the vote. 

Mr Whitten’s retirement 
from the House of Representa- 
tives, at the age of 84, has 
brought six Republican and 
three Democratic candidates to 
fight today primary elections 
for the right to contest. In 
November, a seat where the 
Republican party has high 
hopes of extending its resur- 
gence in what used to be the 
solidly Democratic South. 

Identification of the Republi- 
cans with President Abraham 
Lincoln and the Reconstruc- 
tion period after the Civil War 
of the 1860s is no longer a 
drawback, and the South's 
social conservatism aligns 
closely with the Republican 
party platform. 

“It has historically been a 
yellow dog Democrat area - 
they’d rather vote for a yellow 
dog than for a Republican. 
With Whitten out of the race, I 
think we've got a better shot," 
says Mr Billy Powell, the 
Republican party's Mississippi 
state chairman. “Given how 
the district is changing, it 
clearly fits the profile of a 
Republican congressional dis- 
trict,” says Professor Leslie 
Burl McLemore, a political sci- 
entist at Jackson State Univer- 
sity in the state capitaL 
Mr Whitten's birthplace is in 
the hamlet of Cascilla - two 
groceries and a petrol pump 
besieged by kudzu vine on the 
edge of the Delta, the flatiands 
between the Mississippi and 
Yazoo rivers. His district once 
included a part of the Delta, 
but reapportionment moved 
this mainly black area into 
another constituency. 

Today, the district's centre is 
'Tupelo, 'a bmgeoning business 


centre known for its furniture 
making and as the birthplace 
of Elvis Presley. It encom- 
passes the university town of 
Oxford and rapidly growing De 
Soto County, a dormitory sub- 
urb for Memphis, just across 
the border in Tennessee. 

Mr Whitten, too, has 
changed over the years. Once a 
rabid segregationist, he 
became, after blacks had 


The Republicans' task is by 
no means easy, however. They 
have won the Mississippi gov- 
ernorship and both its senate 
seats, but made less headway 
at the local level. They hold 
none of the state's five congres- 
sional districts. 

For one thing, in a state 
where virtually every politi- 
cian poses as a conservative, it 
is sometimes hard to distin- 


ct has historically been a yellow 
dog Democrat area - they’d 
rather vote for a yellow dog than 
for a Republican. With Whitten 
out of the race, I think we’ve got 
a better shot. 9 


started, from the late 1960s, to 
be allowed to vote in Missis- 
sippi one of the most liberal 
members of the state's congres- 
sional delegation - with the 
exception of Mr Mike Espy, 
now President Clinton's agri- 
culture secretary, and Mr Ben- 
nie Thompson, who have in 
turn represented the majority 
black Delta district 

The congressional seniority 
system gave Mr Whitten great 
power in Washington. As 
chairman of the agriculture 
appropriations sub-committee 
for more than 40 years, and of 
the full appropriations commit- 
tee from 197843, he controlled 
federal government purse 
strings and made sure that, 
when they were loosened, his 
district and his state won their 
share. 

No new member of congress 
is going to be able to match Mr 
Whitten’s ability to bring home 
the bacon and it is not certain 
that voters in the 1990s, more 
attuned to the federal budget 
deficit, rank this ability at the 
top of their list. 

“I think they 'have done a 
little too much for us already,” 
said Mr Lee Inman, a barber in 
Calhoun City. 


guish one party from the other. 
“It's kind of hard to tell the 
Democrats from the Republi- 
cans in this district,” says Ms 
Barbara McDonald, a campaign 
aide to Mr Tim Ford, speaker 
of the Mississippi legislature 
and one erf the candidates for 
the Democratic nomination. 

“Quite frankly, we only have 
two Democrats in the Missis- 
sippi delegation, Bennie 
Thompson and Jamie Whitten, 
and we are about to lose Jamie 
Whitten. The rest of them are 
in fact Republicans,” says Prof 
McLemore. 

Local penetration for the 
Republicans is hampered by 
the Democratic stranglehold 



on county-level government. 
“The real power has been at 
the county supervisor level, 
the courthouse crowd, I don't 
know if there is a single 
Republican county supervisor 
in the first district,” says Mr 
Powell He believes many local 
politicians are almost ready to 
switch parties. In the last year, 
seven county supervisors and 
five state legislators have left 
the Democrats. 

But although it is possible to 
run in Mississippi as a Republi- 
can and win, it is still a risky 
choice for local politicians. 
This has much less to do with 
“yellow dog Democrat" resent- 
ment of the Republicans, dat- 
ing back to the Civil War, than 
it does with the fact that any- 
one running as a Republican 
can say goodbye to virtually all 
black voters -and they make 
up a third of the state's popula- 
tion. 

The Republican party's suc- 
cess in state-wide elections has 
been won. to a great extent, by 
advertising. But here, too, the 
district poses problems: much 
of the most fertile ground for 
the Republicans is in the Mem- 
phis suburbs of De Soto 
County, whose inhabitants are 
often recent arrivals in Missis- 
sippi and who, in any case, 
read Tennessee newspapers 
and watch Tennessee televi- 
sion -whose advertising rates 
are much higher than for 
broadcasters in the Tupelo 
area. 

Money from the national 
Republican party could over- 
come this problem, as it did in 
the recent by-election in Ken- 
tucky, which the Republicans 
won. At the November elec- 
tion. however, every promising 
congressional district will have 
to compete for national fund- 
ing with all the other Republi- 
can prospects. 

That money might well be 
forthcoming, even so. The 
Republican party trails by 42 
seats to 59 in the 11 south-east- 
ern states of the US, and this 
region offers some erf the par- 
ty's best chances of eating into 
the 256:178 Democratic major- 
ity in the House of Representa- 
tives. 


The securities have not been registered under the United Stales Securities Act of 1933 and may not 
be offered or sold in the United States or to, or for the account or benefit of, a US. person. 
This announcement appears as a matter of record only. 



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POLISH DEVELOPMENT BANK 
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NKr50bn contract lifts Oslo’s market share 

France renews gas 
deal with Norway 


By Karan Fossfl in Oslo 

Norway yesterday announced 
a 20-year contract to supply 
natural gas to France. 

The deal, valued at an esti- 
mated NKrSObn f£4-6bn) based 
on current gas prices, also 

includes an undisclosed price 

revision for gas supplies cov- 
ered nn/tor pylcllng contracts 
with Gaz de France. 

Norway’s Gas Negotiating 
Committee - comprising Stat- 
oil. the Norwegian state oil 
company, Norsk Hydro and 
Saga Petroleum, two other 
Norwegian oil companies - 
agreed to provide Gaz de 
France with fresh annual 
quantities of gas from 1996 or 
1997 which will build to a 


level of 4.0bn cu m from 
200L 

The deal will boost Norway's 
market share for gas in France 
to 30 per cent by the year 2000 
from 18 per cent in 1993. 

Gaz de Francs has imported 
gas from Norway since 1977 
from the North Sea Ekofisk, 
StatQord, Helmdal and GuU- 
fiafa: fields. Gas exports under 
the Troll sales agreement 
began last year. 

Statoil said: “Based on these 
contracts and the new agree- 
ment, annnai deliveries to 
France will reach 13bn cu m 
soon after the turn of the cen- 
tury." 

France last year consumed 
33bn cu m of gas but Indige- 
nous production is rapidly 


rtfnlming and totalled I ffS S 
S.Obu cu m in 1393. France 
also imports gas from the 
Netherlands, Russia and 
Algeria. 

Norway recently postponed 
by two years a decision to 
invest in new capacity to meet 

inmwsing liwnanrt for gna A 

sellers’ group led by Statoil 
will take responsibility for the 
new contract with France. 

Last year Norway supplied 
about 25bn cu m of gas to 
Europe and expects deliveries 
to rise sharply to 60.8bn by 
2005. 

It currently holds a market 
share of 10 per cent in the 
European Union, but this is 
predicted to rise to 12 per cent 
by 2005. 



Malaysian Prime Miri fe i ** r Mahathir Mohamad 
(pictured left ) yesterday welcomed a British 
trade delegation but made no mention of lifting 
a ban on government contracts to British com- 
panies. Mr Richard Needham, British trade 


minister said, Reuter reports from Kuala Lum- 
pur. Mr Needham (pictured right) and a 20- 
member trade delegation discussed private sec- 
tor investment with Dr Mahathir before visit- 
ing the Petronas office in Kuala Lumpur. 


US, France 
in plastics 
venture 

By Daniel Green in London 

Union Carbide of the US and 
Elf-Atochem of France, part of 
Elf Aquitaine, are to create a 
joint venture for the manufac- 
ture of specialist plastics. 

The move is the latest in a 
series of consolidations in the 
European petrochemicals 
industry in response to low 
prices and competition from 
the Middle East and Asia. 

The venture will market 
polyethylene resins and com- 
pounds for the wire and cable, 
pipe and other industries in 
Europe. The joint venture will 
take over and operate the gas 
phase polyethylene reactor 
owned by Elf-Atochem at Gon- 
freville, France, and Union 
Carbide will license its Unipol 
process technology to the ven- 
ture. 

Mr Jacques Pufechal, chief 
executive of Elf-Atochem. said 
the deal was the first joint ven- 
ture between the two compst 
nies and marked the end of a 
round of Elf-Atochem’s poly- 
ethylene restructuring. 


China air space rows ‘bad for business’ 

Lynne Curry on disputes with Moscow and Seoul over flight jurisdiction 


T wo air space disputes 
are souring C hina 's 
otherwise good eco- 
nomic relations with South 
Korea and Russia. 

Under pressure from foreign 
airlines seeking both to take 
advantage of the economic 
boom in China and cut costs 
and flying time across the 
Pacific Ocean, diplomats are 
pushing Beijing to resolve 
these longstanding disagree- 
ments. 

Of the two, the most knotty 
involves differences over the 
air space between Beijing and 
Seoul It has meant that there 
are currently no direct sched- 
uled flights between the Chi- 
nese and South Korean capi- 
tals. 

“hi terms of business, both 
sides are losing fantastic 
amounts of money,” a western 
airline executive said. “Sched- 
uled charters from South 
Korea are full. Everybody 
wants to come here, but the 
Chinese say do it under their 
terms or not at all” 

The obstacles in the dispute 
are primarily commercial 
issues. Neither side can agree 



either on the frequency of 
flights that should operate 
between Beijing and Seoul or 
the number of destinations to 
which carriers could fly. Avia- 
tion experts say Chinese air- 
lines fear that if there were 
enough flights from South 
Korea to meet the growing 
demand, few passengers would 
opt to fly Chinese airline s, 
which have a poor reputation. 

To pressure Chinese authori- 
ties to resolve these issues, 
South Korea recently lifted its 


official ban on tourism travel 
to China. Last year, between 

190.000 and 1204)00 Koreans vis- 
ited the matnlnnri for business 
or official purposes. Travel 

a ggnrtea expect tra m sm traffic 
to push this figure up to 

500.000 a year. 

A ci gnifirant hurdle in what 
is known as the 124-125 fight” 
was cleared during the recent 
visit to China by South Korean 
President Kim YoimgSam. The 
Chinese agreed to the South 
Koreans’ demand that the air 
traffic control boundary 
remain at 124 degrees east lon- 
gitude as laid down by the 
Montreal-based International 
Civil Aviation Organisation 
(ICAO) for regularly scheduled 
flights between Beijing and 
Seoul South Korea had argued 
that a one-degree extension of 
Beijing’s air space would give 
China control virtually to the 
South Korean coast 

However, Chinese officials 
are still standing by their 
riairn that the air t raffic con- 
trol region between Shang hai 
and Seoul should stay at 125 
degrees for chartered flights. 
While the Knraana are report- 


edly unhappy with this 
arrangement they are willing 
to accept it for the present. 

With the trade boom 
between China and South 
Korea, pressure on both sides 
to find a solution risen. 
Bilateral trade between the 
two countries soared 63 per 
cent to $23hn (£153bn) in the 
first nine months last year. 
Korean Airlines is also pushing 
the government to resolve the 
impasse. 

If direct flights between Bei- 
jing and Seoul were allowed, 
Seoul could become an interna- 
tional hub in north-east Asia. 

Airlines seeking to shorten 
the long haul across the Pacific 
have also run into trouble over 
a StaoRussian dispute dealing 
with restrictions cm air space 
along their eastern border. 
Details of the dispute remain 
unclear and Chinese officials 
have been unwilling to discuss 
the matter. 

What is known is that some 
western airKnea are permitted 
to refuel in the Siberian city of 
Khaborovsk, bnt are not 
allowed to cross the border 
there and enter directly into 


C hina 's north-eastern Heilo- 
ngjiang province. 

Instead, they must fly back 
down across Japan and on to 
Beijing, adding considerable 
time to their journey. Chinese 
airlines are also frustrated by 
this roundabout route. 

There is concern that Rus- 
sian and Chinese air traffic 
control systems may be inade- 
quate to handle a higher vol- 
ume of traffic if the corridor 
woe open to foreign carriers. 
Currently, both countries can 
handl e an aircraft every half 
hour but opening to foreign 
carriers would mean an air- 
craft entering Sino-Russian air 
space every two and a half 
minutes. 

Aviation experts say this 
ought not to be a problem. 
Modem aircraft do not need 
ultra-sophisticated air traffic 
control systems. They can use 
satellite navigation once they 
reach cruising altitude. 

Some western airline offi- 
cials are “cautiously optimis- 
tic’' that China's differences 
with Russia will be resolved 
sooner than those with South 
Korea. 


Beijing 
must play 
by rules 
- Kantor 

Mr Mickey Kantor, the US 
trade representative, yesterday 
warned fihina it must play by 
world trade rules and said the 
Europeans and Americans 
were united over Beijing's bid 
to join the international eco- 
nomic community. Reuter 
reports from Paris. 

“If the Chinese are going to 
continue to grow, trade and 
become an international 
player, they are going to have 
to play by tha rules. The US is 
nrinmgrrt about that," Mr Kan- 
tor said on his way to Paris for 
the annual meeting of the 
Organisation for Economic 
Cooperation and Development 
(OECD). 

Mr Kantor said China must 
change its trade practices 
before it could join the World 
Trade Organisation (WTO) 
which takes over next year 
from the General Agreement 
on Tariffs and Trade (Gatt). 
The European Union increas- 
ingly shared the US stance, he 
added. 

Some US officials have pro- 
posed privately that China 
should be kept out of the WTO 
for the entire first term of the 
Clinton presidency because of 
Its poor human rights record. 

“But that’s not a policy,” Mr 
Kantor said. It’s just a guess. 
We're totally open to them 
meeting these requirements as 
soon as possible and we have 
said that publicly and pri- 
vately." 

On the issue of a partial 
trade flea! with Japan, Mr Kan- 
tor said it would be Imma- 
ture" to reject such an option. 

Mr Kantor, who had previ- 
ously insisted on an 
all-or-nothing trans-Paclfic 
trade package, said he would 
now accept a scaled-back ver- 
sion when the two nations' 
leaders’ meet in July. 

“You want to make progress 
where you can. This is a long- 
term situation and you won't 
resolve all the problems over- 
night,” he said. 

The two sides want to strike 
a broad new deal that cuts 
Japan’s $131bn (£87bn) trade 
surplus and boosts foreign 
access to three key sectors: 
cars, insurance and public pro- 
curement 


Chile in 
favour of 
ties with 
Mercosur 

By Angus Foster fn Sto Paulo 
and David PHflrtp in Santiago 

Brazil's proposal to use the 
planned Mercosur common 
market os a building Mode fee 
a South American free trade 
area has been backed by Chita, 
which could next month start 
negotiating to join Mercosur 
as an “associate” member. 

Mr Carlos Figueroa Serrano, 
Chile’s foreign minister, said 
his country was interested in 
joining Mercosnr, which 
groups Brazil with Argentina, 
Paraguay and Uruguay. He 
intends to discuss the matter 
with Argentina later this 
week. Chile will, however, con- 
tinue to negotiate Its entry 
into Nafta, still seen as the 
country's priority. 

Chile Is an especially wel- 
come partner for Brazil, which 
has been trying to tie other 
countries into the Mercosur 
network. Mercosur is due to 
become a customs union, wife 
a common external tariff for 
most goods, from January l 
next year. Countries wanting 
“associate” trading tins wife 
Mercosur will have to remove 
barriers on trade with Merco- 
sur members, but will rot be 
bound by the common external 
tariff rules. 

Brazil has been discussing 
the South American free trade 
area with other countries fn 1 
several months. But Chile is 
the first publicly to express 
definite interest in joining. 
Brazilian officials hope Chile's 
interest will prompt other 
countries to open negotiations. 

Chile is seen as the South 
American country most pre- 
pared to join Nafta. By joining 
Mercosnr as well, it would 
show other countries that it 
was possible to be a member of 
both trade areas. 

Chile's Intention to negoti- 
ate some form of association 
with Mercosur reflects concern 
In the country, which is highly 
dependent on exports, of being 
left on the sidelines of the 
region’s emerging free-trade 
blocs. 

Brazil and Argentina are 
Chile's third and fourth big- 
gest trading partners respec- 
tively. 



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esa percentage of the total krixxr force. Rgu-es for the composite leedng toticator are and-pariod vetoes. 


■ UNITED STATES | JAPAN 

Oba*- ttaeroqr Compote MU 


■ GERMANY 


1985 

1005 

1005 

7.1 

1005 

1024 

1000 

1005 

28 

1005 

975 

1000 

100.0 

■n 

100.0 

1055 

1988 

1055 

1005 

65 

ea.o 

107.1 

1065 

99.7 

28 

945 

1001 

1004 

1025 

04 

136.4 

105.1 

1987 

1004 

1065 

8.1 

1055 

1002 

1135 

103.1 

28 

1085 

1155 

107/4 

1026 

65 

149.4 

106.1 

1988 

1125 

110.7 

5.4 

106.1 

1122 

1226 

113.1 

25 

1355 

1225 

1105 

1085 

02 

1845 

1125 

1989 

1155 

1124 

52 

995 

1106 

1325 

1107 

22 

1475 

1255 

114.1 

111/4 

55 

2107 

1155 

1990 

118^4 

1124 

5.4 

845 

106.4 

141.6 

1245 

21 

1485 

1227 

1235 

1175 

45 

281.1 

1155 

1891 

1145 

1105 

65 

B 9.9 

111.7 

144.6 

1265 

21 

1445 

120l4 

1305 

1205 

45 

270.7 

1135 

1998 

1175 

1125 

75 

805 

. 1165 

1395 

1195 

21 

1245 

1200 

127.7 

119.1 

4.6 

2802 

1005 

1983 

1235 

1175 

6.7 

655 

1224 

1320 

1135 

25 

1065 

1208 

1224 

1105 

55 

1975 

1135 

aid qtr.1993 

55 

35 

85 

63.4 

117.1 

-65 

-45 

24 

106.7 

1245 

-35 

-8.3 

5.6 

2075 

1085 

3rd qtr.1993 

55 

4 2. 

8.7 

665 

119-2 

-5.1 

-45 

25 

1015 

1201 

-21 

-04 

55 

1945 

111.7 

44M qtr.1993 

55 

45 

8.4 

69.4 

1224 

-5.7 

-45 

27 

103.7 

1285 

-55 

-3.1 

65 

1765 

1135 

let qtr.1994 


55 

85 

715 

1245 


-3.1 



1295 

OO 

05 

05 

1328 

115.8 


May 1993 

June 

July 

August 

September 

October 


Jemmy 1994 
February 
March 
April 


5A 

as 

03 

6-0 

55 

55 

5.0 

0.0 

44 

OS 


as 

4.0 
35 
44 

44 

4.1 

4 5 
4 5 
4.9 
4.7 
5 5 
55 


09 

08 

07 

07 

oe 

oe 

04 

03 
OB 

04 

05 


65.1 

63.1 
65.0 
68.7 
655 
605 
809 
707 
607 
72S 
74.3 
705 


117.2 

117.1 
117S 
1102 
1182 

120.2 
121 S 
12Z4 
1203 
1208 
124.5 


-45 

-as 

-08 

-4.1 

-05 

-02 

-75 

-4.6 

-IS 


-3.1 

-5A 

-5S 

-05 

-Ol 

- 6.0 

-02 

-05 

-2.7 

-4.4 

-02 

-IS 


2 5 
25 
25 
25 
2.6 
2.7 
2.7 
25 
2-7 
25 


1055 

1055 

1025 

1025 

1005 

995 

1125 

909 

97.4 

901 


124S 

1245 

125.1 
1204 
1201 

128.4 

126.1 
1285 
1202 

129.4 
1295 


-55 

-05 

-07 

-0.7 

-IS 

-35 

-5.1 

-04 

0.4 

0.1 

-05 


-03 

-75 

-8S 

-5.6 

-5.7 

-45 

-4S 

- 1.0 

-1.7 

IS 

0.7 

4.1 


55 

5.7 

55 

55 

01 

02 
03 
03 
6.4 
85 
05 


2065 

2045 

2015 

1855 

1804 

1755 

1705 

1785 

187.0 

1945 

1901 

183.6 


107.7 
1085 
1095 
111.1 

111.7 
1124 
1129 
1135 
1145 
1102 
1155 


■ FRANCE 

MW 

mIobm pmdurton 

% 

f* 

M 

Owewie 

Mean 

■ ITALY 

MW 

MmMU 

production 

1 w-w> 

fernM 

IM 

Motor 

■ UNITED KINGDOM 

"S - ^ Un+W* Money 

voted P«*»tei tw. Mob* 

CBmpnWd 

iHfea 

tetter 


1005 

1005 

105 

1005 

1020 

1005 

1005 

95 

1027 

1005 

1000 

115 

1000 


1985 


101.1 

104 

1075 

1095 

1005 

104.1 

104 

1105 

105.3 

1024 

115 





103.1 

105 

117.7 

1085 

1121 

1065 

109 

1128 

nor 

1005 

105 




1075 

1075 

105 

1345 

1135 

1075 

1145 

105 

1175 

1175 

1115 

26 




1095 

• 1115 

9/4 

161.1 

1135 

1165 

118.7 

105 

1155 

1201 

114.0 

75 




1105 

1125 

85 

1635 

1085 

1144 

1120 

105 

111.8 

121.1 

1127 

28 





1 135 

94 

127.7 

1085 

7115 

1154 

as 

1145 

1195 

1035 

85 





1135 

104 

1114 

1075 

1165 

1154 

95 

1115 

1205 

1027 

105 




1107 

1095 

11.7 

895 

1105 

1145 

1125 

105 

1215 

1245 

1115 

105 

775 

120-5 

1993 


-05 

1.1 


-25 

-15 


IIS 
122 
12 5 


85S 

85.4 


1004 

1105 

113.1 


-1.4 

-85 


-05 

-05 


105 

107 


1104 

121.0 


—35 —35 

5.0 -04 

15 -26 

-15 -3.0 

15 -3S 

-27 -4.4 

25 -Ol 
-05 OS 

0.7 -0.1 

15 -15 

15 


115 

115 

11.7 

115 

120 

121 

122 

125 

125 

125 

125 


ag.i 

915 

935 

80.4 

805 

83.7 

855 

875 


1085 

107.8 

107.1 
1075 
1004 

100.1 
1105 
1109 
1115 
1120 
113.1 
1145 


25 

26 

105 

74.8 

1128 

85 

27 

10.4 

774 

1194 

27 

21 

105 

82.7 

1205 

26 

28 

9.8 

829 

1215 


mid qtr.1993 

3rd qtr.1993 
4th qtr.1993 
let qtr.1994 


-85 

-0.4 

-84 

15 

1.1 

-08 

-04 

-95 


-65 

-45 

-65 

05 

04 

—1.4 

-16 

1.7 

-29 

-0.7 


rca. 

1126 

24 

45 

105 

755 

no. 

1145 

35 

26 

105 

745 

oa. 

1154 . 

44 

25 

104 

77.1 

rca. 

1165 

25 

26 

104 

775 

iul 

1124 

34 

20 

105 

77.5 

njL 

1194 

35 

20 

105 

807 

ruL 

1205 

35 

26 

105 

835 

TUL 

1215 

45 

35 

95 

628 

oa. 

121.7 

35 

45 

9.9 

835 

oa. 

1226 

20 

26 

28 

845 

oa. 


' 35 

27 

27 

827 

02 


45 



829 


1103 
1106 
1175 

118.7 

1104 

119.7 

110.7 
1205 
1215 

121.7 
1215 


1993 May 
Juna 

jny 


Sa pt antiar 

October 

November 


1994 January 
February 
March 
Apr* 


Al aeries seasonally emoted. StotisBta for Gsmany apply only to western Germany. Bala suppled fay Drt—tmawi ^ gjmTnlJ . ,, — — ■ — 

MurtrUproducOorc data from radon* government sources, todudas mining, manufacturing, gas, electricity and 

ortyl and LBC (also incudes construction toCtostriee). l*wK**rymar« rate; O6C0 standardised rxtn wNcTadtets as far as pSSStotortoc aSSIS Japcn M nino aid merufacto rtia 
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•dvsrtWng, ''^P*** vacancies, Germany and France - al Jobs vacant. Italy - no data evrtaSaUK- 

combination of aeries, cycfieel fluctuations n which ususty precede eycScel fluctuations to gmerrt economic activity. ««npoane lasting indicator OECD dale. Each la a 


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F tNANCMX TIMES TUESDAY JUNE 7 1994 


NEWS: INTERNATIONAL 




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China's reputation for air 
safety was yesterday dealt 
another severe blow when a 
Russian-built Tupolev- 154 
crashed eight minutes after 
takeoff from the city of Xian, 
killin g all 160 passengers on 
board. 

The crash of the aircraft of 
China Northwest Airlines, 
bound for the southern city of 
Guangzhou, nft flHnngs a run of 
accidents, hijackings and near- 
misses for 'China’s over- 
stretched Aviation sector. Its 
airline industry has undergone 
explosive growth in the past 
few years, which has strained 
pilot and maintenance 
resources. The country now 
has over 30 regional airlines; 
passenger growth hue been 
naming at 20 per cent anna- 
ally. 

In 1993, 76 people died in five 
crashes. This followed the 
deaths of 276 the previous year, 
including those in the Novem- 
ber 1992 crash of a Boeing 
.737' near Guilin, a southern 
beauty spot, in which 141- 
pertshed. '. . 

; A foreign aMhae representa- 
tive said visitors to Gafina were 
Entitl ed to “shudder* -if they 
found themselves booked on 
Russian-built aircraft widely 
used cm domestic- routes. Some 
10-15 per cent Of China 's airifn- 
ers are Russian-supplied,. 


inriurimp Qyushins, Antonovs 
and TU- 154s. A Chinese com- 
pany announced at the week- 
end it had leased a further five 
Tupolevs. 

A Chinese newspaper 
reported yesterday that 
mechanical and personnel 
problems had Increased in Chi- 
na's aviation sector this year. 
The China Business Times 
quoted an official of the Civil 
Aviation Administration of 
China (CAAC), the country's 
aviation regulatory agency, as 
attributing problems to “feck 
of safety consciousness and 
poor management”. 

In the first five months of 
this year 17 accidents had 
occurred, involving aircraft 
missing the tarmac on landing, 
mid-air engine failure and 
wing tips touching the ground 
on landing, the official said. 
Among factors behind China’s 
disastrous safety record was 
the “poor quality* of pilots and 
ground crew, and indiscipline 
■among staff. 

In February the Interna- 
tional Airline Passengers' 
Association described China as 
-an aviation danger spot The 
authorities have launched air 
safety drives with, it seems, lit- 
tle effect Safety procedures at 
airports are lax by interna- 
tional standards; so too is 
cabin discip line . ; 

China air row. 

Page 4 



in surprise visit 



"*A. * 
I*-' 


Mr Lfeh Chan.Msfan’s prime 
minlster»l»s arifvedinMexiaj 
City fo-a^itorprfeffiver»on 
from atovffjxTCeatSB America 
and the lK. ^the .fis^^Elt by a 
senidr .Tahriihfese official to 

The two countrifes do not 
maintain' official tdiplomatic 
relations, having severed -ties 
in fife early 1970s following the 
United Nations’ recognition of 
Boiling. 

To avoid protests from 
China, which could have scub 
tied the' visit, Mir lien’s change 
in plan was announced in Gua- 
temala just minutes before he 
stepped on an aircraft, ostensi- 
bly bound for New York. . 

The trip was another 
instance of the Taiwanese gov- 
ernments policy of ‘‘pragmatic 
diplomacy*; 

Using, a -similar, formula, 
President Leo Tengbul took a 
“vacation" tour to south-east 
Asian countries in April, dur- 
ing which.ha played golf with 
top officials, sparking- vocifer- 
ous complaints from China. 


The premier’s visit to Mexico 
was billed as a hid to boost 
trade and investment ties, with 
a view toward exploiting 
Mexico’s low labour and land 
costs and preferential access to 
US -Canadian markets 
' through the North American 
Free Trade Agreement 
r Local media reported that Mr 
Lien was to meet President 
Carlos Salinas de Gortari 

The visit coincides with a 
growing wariness in Taiwan 
about investing in China and 
rising anti-Chinese sentiment 
in Indonesia and elsewhere in 
south-east Asia where Taiwan- 
ese businesses have made 
heavy investments in recent 
years. 

Analysts in Taipei said that 
Taiwan may seek support from 
Mexico for its application to 
join the General Agreement on 
Tariffs and Trade. 

Taiwan is also working to 

build in ternat ional support for 

a bid to rejoin the UN, which it 
hopes to bring before the gen- 
eral assembly in the autumn. 

Taiwan has formal ties with 
just 29 states. 


Jordan and Israel 
start talks again 


By James Whttttngton - •; 

(r Amman • . . 

-Jordan and; Israel ; renewed 
folks in Washington yesterday 
which are expected to - make 
progress on thepeace .“agenda" 
signed by the two countries in 
September 1933- It ,te the first 
time the two sides have 
officially met since peace 
folks were suspended after 
the Hebron .massacre in 
February. . - 

- Government officials in 
Amman spoke confidently of a 
settlement on, border disputes 
which, could be implemented 
before .a overall- peace 
agreement is signed. Jordan 
has claimed two 1 -strips of 
land along its border- with 
Israeli . 


Other subjects to be 
- discussed include water rights 
and economic ties. The thorny 
issue of Palestinian refugees 
residing in Jordan has been 
postponed t° a later date to 
speed progress on the other 
issues. . 

While Jordan has given 
assurances to Syria and 
Lebanon that it will not sign a 
separate agreement with Israel 
before a comprehensive 
solution is found, it has 
not ruled out Implement- 
ing items on its agenda mean- 
while. 

This latest drive for progress 
comes at a time when the 
kingdom feels increasingly 
marginalised by developments 
in the Middle East peace 
process. 


Local politics drains Nigeria’s oil 


Paul Adams on violence, sabotage and 
leaks in the country’s oil-rich south-east 

O 


il spurts out of a bro- 
ken pipeline and seeps 
into the tropical bush 
of the Niger delta. There is not 
an oil worker within 10 miles 
to stop it. 

It is the latest spillage at 
Ebubu, 30 miles east of Port 
Harcourt, one of 62 oil fields 
operated by Shell in southeast- 
ern Nigeria. 

According to the local Ogoni 
people, there have been several 
other oil spills - on their l a n d 
since November from the 
exposed pipes which snake 
along roads and past houses in 
the Ogoni’s area of Rivers 
state. 

In January, they say, a gas 
leak at Kpor led to a fire in 
which a villager was badly 
burnt At another site at 
Ebubu, about 2 Y, acres of land 
has been, caked in ofi since a 
blow-out in the 1979s and In 
the rainy season it pollutes one 
of the streams which are the 
main source of fresh water in 
the area. 

A joint venture in the area 
between the Nigerian govern- 
ment. which owns 55 per cent. 
Shell (30 per cent). Elf (10 per 
cent) and Agip (5 per cent) pro- 
duces half of Nigeria’s 2m bar- 
rels a day of ofi. 

All Shell’s oil fields in Ogoni, 
which used to produce 28,000 
barrels a day, have been closed 
and some of the flow stations 
have been vandalised since 
mid-1993 when Shell withdrew 
its staff and contractors from 
the area in the feoe of rising 


hostility from local communi- 
ties. 

Shell claims that 60 per cent 
of the spills in Ogoni in 1992 
were “the direct result of sabo- 
tage made to claim compensa- 
tion". 

Militant leaders in the Move- 
ment for the Survival of the 
Ogoni People (Mosop) say that 
since Shell started Nigeria's oil 
industry on their land more 
than 30 years ago. the com- 
pany has damaged the environ- 
ment and neglected the com- 
munities. They also blame 
Shell for interventions by the 
security forces which have led 
to civilian deaths over the past 
12 months. 

The oil companies in Nigeria 
estimate that they lost produc- 
tion and equipment worth 
$200m last year as a result of 
community disputes. 

Last year Shell alone 
recorded 168 Incidents affecting 
production, lost 1,400 project 
days and deferred production 
of 14m barrels of oil. The joint 
venture is spending more than 
$20m this year on helping the 
oil area communities with agri- 
cultural extension, scholar- 
ships and basic infrastructure 
such as schools, hospitals, 
drinking water and roads. 

As the military government 
tries to launch its constitu- 
tional conference, the minority 
tribes in the oil-rich delta are 
trying to wrest control of the 
oil wealth from the central 
government, traditionally dom- 
inated by northern. Nigerians, 


and. from the commercial cen- 
tre of Lagos. 

The Ogoni are one of many 
groups in a rising wave of pro- 
test and disorder across the 
Niger delta which threatens 
the security of the staff and 
equipment of the multinational 
oil companies which produce 
95 per cent of Nigeria's exports. 

This oil wealth is in striking 
contrast to the condition of 
many of the communities who 
lack basic amenities. There are 
almost no environmental laws 
to control the pollution from 
the oil industry. 

In 1992 the government set 
up the Oil and Minerals Produ- 
cing Areas Development Com- 
mission (Ompadec), with 3 per 
cent of the revenue and a free 
hand to provide infrastructure, 
jobs, education and better envi- 
ronmental standards in the 
area. 

Its chairman, Mr Albert 
Horsfall, says his agency is 
making a good start but its 
budget of $90m a year is inade- 
quate. He estimates that it will 
take $4.5bn over five years to 
meet its target, but such 
investment looks unrealistic. 

The government is cutting 
back its investment in the oil 
industry, which wQl depress 
future production and reve- 
nues. At the same time the 
international donors have 
suspended aid to Nigeria. Shell 
plans to stay away from the 
Ogoni area until the dispute 
has been settled peacefully, a 
distant prospect 



Since Mr Ken Saro-Wiwa 
became its leader, Mosop is 
demanding that Shell by-pass 
central government, which col- 
lects the nation's oil revenue, 
and pay royalties and rent 
direct to the half million 
Ogonis, beginning with $6bn in 
back pay. 

Mr Saro-Wiwa Insists on 
environmental and social 
impact studies, sponsored by 
Shell, on the effects of the past 
30 years and says the oil com- 
panies must raise their stan- 
dards to those elsewhere in the 
world. 

Mosop demands the Ogonis’ 
right to “self-determination in 
which they will freely deter- 
mine their political destiny, 
use their resources for their 
own development . . . while 
contributing to the Nigerian 
kaleidoscope.” 

This touches a raw nerve 
with Nigeria's military rulers, 
as Nigeria Is made up of more 
than 200 ethnic groups. 

Mosop claims that the 
destruction of the village of 
Kaa on Ogani’s southern bor- 
der last August, which left 
hundreds homeless or dead or 


homeless, was the work of 
security forces. An Ogoni coun- 
cil chairman has protested to 
the Rivers state governor over 
the “destruction of lives and 
property of Ogoni people by 
Nigerian soldiers'’ in five vil- 
lages near Afam. 

Last month Mr Saro-Wiwa 
was arrested in connection 
with the murder of four rival 
Ogoni politicians. The Rivers 
state commissioner of police 
has asked for 400 troops to 
tighten security in the area. US 
diplomats approaching the 
area have been turned back. A 
visiting foreign journalist has 
been deported 

Half Shell Nigeria’s 5,000 
workforce are employed as 
security staff at a cost of $18m 
a year. Rather than spending 
more and more on security, the 
ofi companies and the govern- 
ment should try to cure the 
root causes of the community 
attacks, argues the company’s 
chairman, Mr Brian Anderson. 

In January, Nigeria's minis- 
ters of oil, internal affairs and 
trade toured all the oil produc- 
ing areas of Nigeria and prom- 
ised a report of their findings. 


51% sale 
of El A1 
planned 

By David Horovftz 
In Jerusalem 


The Israeli government 
yesterday announced plans to 
sell off 51 per cent of shares in 
El Al, the national airline, by 
tire end of the year, with the 
remaining 49 per cent to be 


disposed of at a later date. 

The shares will be sold in 
public offerings on the Tel 
Aviv stock exchange and mar- 
kets abroad, presumably 
including New York, after the 
company is taken oat of a 13- 
year receivership in October. 

Two teams of foreign and 
local experts are carrying out 
valuations of the airline, 
which has had a troubled 
financial history, but which 
officials say made net profits 
of about )lOm (£6.6m) last 
year on revenues in excess of 
Slbn. Official 1993 results 
have yet to be published. 

The El Al sale is the latest 
stage of a government privati- 
sation drive, which includes 
the sale of government hold- 
ings in the country’s main 
banks, intended to raise $lbn 
during this year. 

Mr Yisrael Kessar, Israeli 
transport minister, said yester- 
day the government intended 
to issue what he called a 
'golden share” in El Al to the 
state, to protect vital Interests. 

Thus, he said, tire govern- 
ment would retain the right to 
order El Al to maintain flights 
to and from Israel even at 
times other airlines were not 
flying there. During the 1991 
Gulf war. when Israel came 
under Iraqi Scad missile 
attack, El Al was the only air- 
line to maintain its services to 
and from Israel. 

As a constant target of 
potential terrorist attack, El 
Al incurs $55m in annual secu- 
rity costs, 80 per cent of which 
are covered by the govern- 
ment It is also limited by a 
ban on Sabbath flights, 
imposed aider pressure from 
minor Orthodox Jewish politi- 
cal parties. Furthermore, the 
company Is embroiled in a dis- 
pate with the US Department 
of Transportation, which has 
ordered it to cot back flights 
to and from New York because 
Israel has refused to authorise 
flights to Tel Aviv by World 
Airways. 


Car importers take record 
share of Japanese market 




Car \impoctm.- .in -.Japan 
-yen’s 
to increase 
f- tfee Japanese 
r.cent 
seventh 

__ , w 'rise in 

S imports, by :aggres- 
and an 
^ number of 

j= break 
fterttik Japanese tar 
SgPfr&f 'foreign 

were, by 




of a 3&2 per cent rise in car 
imports in. May, from the same 
month last year, and a 48.4 per 
cent rise in all kinds of 
vehicles, to 21*579 units. 

Overall vehicle imports 
reached 6.6 per cent iff the 
Japanese market, another 
record. ■ 

The figures come after US 
and Japan ended a fresh round 
of talks in Washington last 
week without agreement on 
bow further to open the Japa- 
nese car market to imports. 
Officials are planning to 
reopen the car talks to Tokyo 
on Friday. 


As to the past, Japanese pro- 
ducers’ overseas car plants 
also benefited, with a 50.5 per 
cent rise, to 4,558 vehicles 
imported back to their home 
country. 

US car companies, however, 
were the best performers, up 
60.8 per cent, led by Ford, 
whose sales nearly tripled by 
comparison with May 1992, 
thanks to the popularity of its 
Taurus estate car. German pro- 
ducers lifted their Japanese 
sales by 25.7 per cent, followed 
by France with 24 per cent and 
Britain - led by Nissan - with 
16 per cent 



Ethiopians are pictured examining 
election posters dining Sunday’s election 
for 547 members to a constituent 
assembly, Reuter reports from Addis 
Ababa. Officials said 90 per cent of 
registered voters turned out for the 
assembly elections, an important stage 
to entrenching democracy after centuries 
of feudal rule followed by Marxist 
dictatorship. 

“It was a smooth sail all the way. We 
are happy about the way it was 
conducted,” said Mr Samson Gethahun, 


legal affairs head of Ethiopia’s Electoral 
Board. 

A total of 15m of Ethiopia’s 50m people 
were registered to vote. 

Pro visional results should be known 
later this week. 

A main issue in the draft constitution 
to be debated by the elected members 
is whether it should include a provision 
on the right of Ethiopia's regions to 
self-determination. 

Some opposition parties, which draw 
most support from the Amhara ethnic 


group in the capital, boycotted the polls 
because they believe the new constitution 
could fragment one of Africa’s most 
ancient empires. 

The Red Sea province of Eritrea seceded 
last year after opting overwhelmingly 
for Independence in a self-determination 
referendum after years of civil war. 

President Melee Zenawi and his 
then-guerrilla mov e me n t, the Ethiopian 
Peoples Revolutionary Democratic Force, 
overthrew the dictatorship of Mengistu 
Hail e Mariam in May 1990. 


Hata 
defiant 
over high 
prices 

By WBBam Dawkkis 
In Tokyo 

Differences have emerged 
between Japan's prime minis- 
ter and the government's eco- 
nomic bureaucrats over plans 
to curb the country’s high con- 
sumer prices. 

Mr Tsutomu Hata yesterday 
welcomed an Interim report 
from an official task force on 
deregulation, urging the gov- 
ernment to halve over the next 
five years the disparity - up to 
50 per cent - between Japan's 
high cost of living and that of 
its main partners. 

The gap could be reduced by 
around 20 per cent over that 
period, he said. 

Mr Hata’s low-price cam- 
paign has aroused fears of 
deflation - a chain reaction oT 
failing prices, wages and con- 
sumption - at the govern- 
ment's Economic Planning 
Agency. 

The deregulation panel, 
staffed by private sector advis- 
ers, estimates that Japanese 
consumer prices are between 
36 per cent and 50 per cent 
higher than the US and Euro- 
pean average. That is conser- 
vative by comparison with an 
Organisation of Economic 
Co-operation and Development 
estimate that Japanese retail 
prices are 80 per cent above the 
OECD average. 

Prices could be brought 
down by cutting costly regula- 
tions, banning cartels and lift- 
ing barriers to cheaper 
imports, the panel proposes. 

This is the second time In 
two weeks that Mr Hata has 
publicly espoused consumer 
price cuts, after his related 
decision to freeze for six 
months an estimated Y460bn 
($4.4bn) worth of public sector 
price rises. 

Both moves are politically 
popular for obvious reasons. 
They correspond with an 
explosion in discount retailing 
and a trend among producers 
of cars and consumer electron- 
ics to design cheaper products 
for the Japanese market 

The yen's strength has also 
fuelled demand for cheap 
imports. 

The panel aims to produce a 
final report by the end of this 
month, for inclusion to a gov- 
ernment package to open the 
Japanese market and stimulate 
the economy, to be presented 
to the US in the margins of the 
group of seven summit to early 
July. 

EPA officials, however, fear 
that more deflation on top of 
an existing decline to whole- 
sale prices might kill prospects 
of economic recovery. 

Any attempt to force the 
pace on retail prices is also 
likely to anger Japan’s many 
shopkeepers and its multi-lay- 
ered distribution system. These 
are both important features in 
high prices and are strong- 
holds of the two main opposi- 
tion groups, the Liberal Demo- 
cratic party and Social 
Democratic party. 

According to the Ministry of 
International Trade and Indus- 
try, 6.9m people work to retail- 
tog and 4J3m in wholesale dis- 
tribution. This is far higher in 
relation to retail sales than to 
the US, points out Mr Paul 
Heaton, retail analyst at Bar- 
ing Securities to Tokyo. 


Call for new swap and option curbs rejected 


By John Gapper, 

Banking Editor 

A senior international bank 
supervisor yesterday rejected 
calls for further regulation of 
financial derivatives such as 
swaps and options, arguing 
that banks' derivatives trading 
is already covered by pruden- 
tial rules. 

Mr Tommaso Padio- 
Schioppa, chairman of the 
Basle committee on banking 
supervision, said creating ad 
hoc regulations for derivatives 
would only be justified if they 
represented a new form of 
financial risk. 

He stressed that bank super- 


visors looked at categories of 
risk rather than particular 
products, and risks associated 
with derivatives were the same 
as those involved in other 
banking operations. 

His call reinforced the cau- 
tion about regulation of deriva- 
tives expressed last month by 
Mr Alan Greenspan, Federal 
Reserve chairman, who said 
supervisors already had suffi- 
cient powers to control deriva- 
tives. 

Any debate over the possible 
regulation of bodies such as 
the unregulated derivatives 
trading units of investment 
hanks has been sparked by a 
US General Accounting Office 


report warning of risks from 
derivatives. 

Mr Padio-Schioppa told the 
International Monetary Confer- 
ence. a group of executives 
from 103 large banks, that the 
only “quantum leap" created 
by derivatives was to under- 
standing, managing and con- 
taining risks. 

But he criticised the inade- 
quacy of accounting tech- 
niques, disclosure and report- 
ing of derivatives. This 
deprived busters of derivative 
products of essential informa- 
tion, he stated. 

The Basle committee was 
concerned “a market failure'' 
had occurred in disclosure 


because no participant wanted 
to be first to publish informa- 
tion for fear of losing an 
advantage. The committee was 
considering allowing banks to 
adapt internal risk manage- 
ment models to calculate capi- 
tal charges which they will 
soon have to apply to market 
risks, he added. 

Ranirs argue they should be 
allowed to use such models 
rather than the committee's 
own proposed guidelines. The 
committee Is faying to intro- 
duce a framework Saar market 
risk similar to its 1988 accord 
on credit risk. 

Mr Robert Merton, professor 
of business administration. 


Harvard Business School, 
urged development of new 
forms of accounting to capture 
the risks of derivatives by 
reporting derivatives expo- 
sures. 

Mr Robert Leon, general 
manager of the Financifcre 
Agache Group, affiliated to the 
drinks group LVMH, said the 
company "very much liked" 
derivatives and wanted them 
to last and grow as a risk man- 
agement tooL He called for 
shareholders of companies to 
be given more information by 
managements about off-bal- 
ance sheet commitments on 
derivatives and “the philoso- 
phy which inspires these 11 . 


Northern Yemenis announce ceasefire 


By Erie Watkins in Aden 

Northern Yemenis said yesterday they 
would begin an indefinite ceasefire at 
midnight last night to the six-week war 
with the south. 

Mr Mohammed Salem Basendwa, the 
foreign minister, said to Sanaa: “We 
have informed the secretary-general of 
the UN and the secretary-general of the 
Arab League that a ceasefire wfiL start 
from midnight tonight (2100 GMT). 

“The ceasefire will last until the 
Other side ceases to abide by it Then I 
don't think it will be possible for us to 
stop our people.” 

The minister said Sanaa made the 
ceasefire offer before Gulf Arab states 
made a statement on Sunday in which 


they said they would push for action 
against any side which failed to heed a 
UN ceasefire call made last Wednesday. 

“We think the statement (by the Gulf 
Arab states) will encourage the 
mutineers (southerners). . . We will 
enforce it (the ceasefire) as far as we 
are concerned but we don't know what 
the reaction of the mutineers (will be),” 
Mr Basendwa said. 

Earlier yesterday, north Yemeni 
artillery had continued to pound Aden 
in the most determined offensive 
fl gnfngf. the south Yemeni capital since 
the start of the civil war. 

With Aden's refinery still ablaze 
following an air raid on Sunday, the 
north's artillery turned Its attention to 
the airport, long the mainstay of south 


Yemen's defence. Despite the new 
offensive, the airport remained fully 
operational 

North Yemeni military forces began 
their latest attack on Sunday morning, 
as two warplanes bombed the oil 
refinery at Little Aden and set fire to 
two storage tanks. Southern political 
leaders said a second attack was 
launched to the evening, setting four 
more tanks alight. 

Mr Mohammed Hussein Hajj, 
manager of the refinery, said six 
firefighters had been killed to the blaze 
and a further 16 injured. He confirmed 
six storage tanks had been severely 
damaged and petrol supplies might 
become critical 

Northern officials, in a broadcast on 


Sanaa Radio, denied their warplanes 
bad been involved. 

Northern artillery, aiming at Aden 
airport, continued to shell the city 
yesterday. Southern leaders said 
northern troops had made no new 
advances but had brought to long-range 
artillery and were firing from near the 
town of Sabir, about 20 miles north of 
Aden. 

Western observers, visiting the front 
lines yesterday, confirmed that 
southern defences remained in the 
positions they have held for the past 
three days. Despite claims by Sanaa 
Radio of a successful attack, Aden 
airport was operational yesterday with 
southern jets flying sorties at 10-minute 
intervals throughout the day. 


I 


a t . T.MES TUESDAY JUNE 7 1994 


NEWS: UK 


Underlying trend suggests steady and sober recovery under way NCW CftF COIlSGrV^tiVGS divided 


Consumer borrowing slips 


By GBIan Tatt, 
Economics Staff 


Credit dips after outstanding month 


UK consumer borrowing 
slipped back slightly in April, 
although the underlying trend 
in consumer lending suggests 
that the recovery is proceeding 
on a steady and sober pace, 
official figures yesterday 
showed. 

Net lending to consumers 
through finance houses, bank 
credit cards and non-mortgage 
building society loans fen to a 
seasonally adjusted £41 3m in 
April, down from £518m the 
previous month. 

The Central Statistical 
Office pointed out that the 
data may have been distorted 
by the timing of Easter, 
and stressed that the three 
monthly figures were a 
better guide to the trend. 

These showed that net lend- 
ing reacted record levels in the 
three months to April, running 
at £lJ282bn. The level of new 
credit advanced to consumers 
in that period was also a 
record, at 5Q5J.05bn. 

The figures were welcomed 
by the Treasury, which 
suggested they provided hints 
that consumer borrowing had 
not yet been dented by April's 
tax rises. 

"It is too early to say what 
the full impact of the tax 
Increases will be. But clearly it 
is encouraging that the trend 
remains upwards - this Is con- 
sistent with an upward trend 
in consumer spending," a 
spokesman said. 

The figures also received a 
warm reception among City 
analysts, who said that April's 
dip must be viewed in context 
Of an exceptionally strong level 
of cons umer credit in March. 

Following a survey by the 
Finance and Leasing Assoda- 


New credit advanced 
seasonally adjusted (£mj 
5260 


Net landtag to conauroers ■ 

Febnray 1994, seasonally a r fr gdnd (En^ 


5000 



600— 
500— 
r ' 400 — 


sales up 
10% on 
last year 


42001 — l — ‘ — t-J — l — I — l — 1 — * — UJ — » «• f • -200 

F U A M J J ASONDd FMKA 
1993 .9* 



By Kevin Dona, 

Motor Industry Correspondent 


13P -‘*.1"- 








. . Top / ’ ^ 




fiowce CmM StMtaUee OtOo* 


tion earlier this week, which 
also reported a small drop in 
consumer credit in April, the 
markets had been predicting 
that April's net lending figure 
would fall even further to 
£300m. 

Mr Simon Briscoe, UK econo- 
mist with Warburg This 
is almost the perfect set of 
numbers for the government 
and markets. It shows that the 
recovery is continuing but not 
overheating - it would be diffi- 
cult to argue for a base rate 
rise on these figures.” 

But with the economic indi- 
cators still painting a sli ghtly 


uneven picture of consumer 
behaviour, analysts warned it 
was too early to predict the full 
impact of the April rises. 

Although recent retail sales 
and MO figures have pointed to 
strong consumer activity, 
recent mortgage figures have 
suggested a slowdown in mort- 
gage lending. 

Meanwhile, consumer confi- 
dence surveys have painted to 
relatively mated levels of con- 
fidence - a factor that may be 
feeding through to the con- 
sumer borrowing figures. 

The mam fa c t o r in the drop 
in April’s net lending figure 


was a fall in borrowing from 
finance houses - the form of 

fmawra usually used for Car 

purchases and retail store lend- 
ing for large consumer goods, 
such as refrigerators. 

Car credit, which represents 
about half of tte total finannw 
house lending, fell to £871m in 
April, its lowest level since last 
October. But this was partly 
offset by other data released 
yesterday, which showed that 
car sales rebounded sharply in 
May, after weakening earfter in 
the year. 


Lex, Page 18 


Fewer business failures forecast 


Business failures during 1994 
will be ten per cent lower than 
last year, Trade Indemnity, the 
specialist trade credit insurer, 
forecast yesterday, writes 
Andrew Jack. 

The number of company 
failures notified to the insurer 
was up 10.7 per cent to 14)37 in 
the first quarter of 1994 
compared with tte last quarter 
QfJL993. 

But failures were down 42 


per cent compared with the 
first quarter of last year, when 
they stood at 1,767. 

Mr William Simpson, Trade 
Indemnity chief economist, 
said companies' investment 
intentions were modest 
because of lower capacity, late 
payment and low demand for 
loans. 

The insurer's quarterly 
financial trends survey 
suggested that a further 


reduction in business failures 
would be a function of progress 
on overdue debts, the attitude 
of banks and whether 
companies can absorb rising 
materials costa. 

It warned that risk would be 
concentrated in smaller 
campanies which find it most 
difficult to obtain fhwmw and 
invest, and those in 
unpre dictable sectors such as 
high technology. 


The results of the survey 
showed that the average value 
of debts over thirty days 
outstanding beyond the dne 
date rose to £145,000. 

The largest regional Hpdina, 
in business failures compared 
with the previous year came in 
the West Midlands at 53 per 
cent. East Anglia at 49 per 
emit, Wales at 48 per cent and 
Yorkshire and Humberside at 
47 par cent 


Statistical health warning issued 


A statistical health warn- 
ing accompanies the 
UK consumer credit 
figures, released yesterday. 

Tte data, the Central Statis- 
tical office noted, may have 
been distorted because of 
Easter and its effect on sea- 
sonal adjustment Such warn- 
ings are not new. Because 
spending and borrowing surges 
before public holidays, statisti- 
cians have always floundered 
over the fact that Easter is a 
moveable feast and Christmas 
can fall on any day of the 
week. 

But the timing of Easter this 
year has created particular 
problems. Because the holiday 
straddled March and April, 
statisticians have been uncer- 
tain which month they should 
adjust to account for the antici- 
pated surge in retail activity. 

The CSO insists that the sta- 
tistical effect of these monthly 
“glitches” is tiny and point out 
that the problem can be 
avoided by using the three- 
month average, which is gener- 
ally regarded as tte best indi- 
cator of trends. But this has 
failed to convince some observ- 


Yesterday’s consumer credit figures highlight the 
perils of seasonal adjustment, writes Gillian Tett 


era, who say a radical overhaul 
of the system of seasonal 
adjustment may be needed. 

The Credit Card Research 
Group - an industry research 
company - argues that the cur- 
rent system of seasonal adjust- 
ment Is too limited since it 
fails to account for variations 
in the number of credit card 
processing days - one reason 
why tte credit figures fell this 
month, they point out, may 
have been that there were 
fewer processing days in April. 

Meanwhile, same British aca- 
demics argue that the broad 
statistical methods used to cal- 
culate tte seasonal adjustment 
are outdated and clumsy, and 
should be replaced by newer 
mathematical models. 

The CSO’s method of sea- 
sonal adjustment called “XU", 
uses a technique known as a 
“moveable average”. This was 
first developed in tte US in tte 
1960s and has since been 
adopted by most western gov- 
ernments. Under this system. 


seasonal adjust m en t is calcu- 
lated by looking at fluctuations 
over several years. To calcu- 
late tte adjustment for Decem- 
ber 1990, for example, the sys- 
tem might look at the average 
spending surge in tte Decem- 
ber’s between 1986 and 1994. 

Hie system works well for 
calculating past seasonal fluc- 
tuations, where there are data 
before and after any month. 
Bat as Mr Tim Jones, senior 
statistician at the CSO, admits , 
the system is less accurate for 
the most recent data, since 
there is no “fixture” data with 
which to calculate an average. 
As a result, the CSO usually 
assumes that the future trend 
will be the same as previous 
trends and does not attempt to 
predict any events that might 
dramatically change it 

The CSO argues that 
attempts are being made to 
make the adjustments more 
sensitive, and points out that a 
new system known as “XI?.” is 
being developed in the US 


which addresses the problem 
of recent data. 

But UK academics such as 
Prof Andrew Harvey of the 
London School of Economics 
argue that the system is too 
rigid, since it cannot respond 
to rapidly changing patterns of 
behaviour. Mr Harvey believes 
it should be replaced by a 
mathematical model system 
which can take better account 
of any new seasonal factors. 


T he Department of 
Employment has 
adopted such a system 
for some of its data, and the 
Bank of England, which uses a 
system similar to the CSO’s, 
has looked at the options. Bat 
so far toe bank has decided 
against moving to a model- 
based system, partly because it 
fears it might tnVp longer to 
process the data. Meanwhile, 
budgetary restraints at the 
CSO leaves Mr Harvey pessi- 
mistic that the CSO will 
change its system rapidly. 


In tte interim, some observ- 
ers suggest that tte best solu- 
tion may be to place less 
emphasis on s easonal adjust- 
ment Mr Eddie George, Bank 
of Rn gland governor, for exam- 
ple, is said by former col- 
leagues to be deeply suspicious 
of seasonally adjusted num- 
bers. Meanwhile, the Building 
Society Association does not 
seasonally adjust its own fig- 
ures, arguing that it does not 
have the resources to produce 
a “foolproof system". 

But as Mr Janes points out 
the wild swings in nan-season- 
ally adjusted figures particu- 
larly in areas such as retail 
sales data, can make it 
extremely difficult for observ- 
ers to make sense of rum-ad- 
justed figures. “If we didn’t 
seasonally adjust then every 
analyst would just create their 
own systems of seasonal 
adjustment.” He insists the 
CSO has no Intention of aban- 
doning seasonal adjustment — 
leaving most officials conclud- 
ing that the most practical 
solution to any uncertainty 
may be to increase the size of 
t~Vip s tatis tical hpalth warnings. 


PEOPLE 


Manchester school head to 


lead UK teacher training 


Education secretary John 
Fatten is hoping one of English 
education's leading traditional- 
ists will run teacher-training in 
England and Wales. Yesterday, 
he named his candidate to 
chair the Teacher Training 
Authority, a new quango 
which will start work in Sep- 
tember if the education bill 
currently in the Commons 
passes into law. 

Geoffrey Parker, 61, retires 
at the end of this term as High 
Master (headmaster) of Man- 
chester Grammar School, one 
of the country’s most presti- 
gious centres of academic 
excellence. 

The appointment makes 
sense as Parker is certainly 
untainted by any suggestion of 
the educational establish- 
ment’s alleged “political cor- 
rectness", which the new 
quango is intended to stamp 
out 

Instead, MGS has continued 
happily to admit that it is elit- 
ist. rigorously selecting its 
boys and then working them 
very hard. The advent of 
A-level league tables in the 



he has never taken a high 
political profile, and- has pub- 
licly defended links between 
schools and university educa- 
tion departments. 

However, one disgruntled 
teachers' union official 
suggested that a career teach- 
ing “the brightest sons of the 
North-West” is no preparation 
for the job of tr aining young 
teachers to work effectively in 
deprived inner-city compreben- 
sives. That task may be ratter 
more difficult. 


Brent picks Dobbie 


past few years has confirmed it 
as one of tte top ten indepen- 
dent schools in the UK. 

However, Parker, a graduate 
of both Oxford and Cambridge, 
denies accusations that he 
runs an “exam factory”, 
answering with the names 
"Atherton" and “Crawley"; 
both England’s current cricket 
captain, and his possible suc- 
cessor are recent graduates of 
Manchester Grammar. The 
school plays as hard as It 
works. 

Parker’s appointment, winch 
is part-time, need not provoke 
the left-wing establishment, as 


■ Peter Gammer, chairman of 
Shandwick, and Robert 
Southgate, deputy md of 
Central Broadcasting, have 
been appointed members of the 
ARTS COUNCIL. 

■ Derek Lees has been 
appointed to the new post of 
head oE market testing and 
con tracto risation at the 
MINISTRY OF DEFENCE; he 
Is seconded from Rolls-Royce. 

■ Ian Bradbery, a partner in 
Moores Rowland, has been 
appointed president of Tte 
SOCIETY OF 
PRACTITIONERS OF 
INSOLVENCY. 

■ Nigel Steward, senior 
partner of Sherwin Oliver 

Solicitors, has been appointed 
chairman of LAWNET. 


Sandy Dobbie, 42, has been 
appointed chief operating offi- 
cer of Brent International, the 
speciality chemical maker 
which cut its dividend recently 
following a collapse in its prof- 
its. 

Dobbie’s appointment 
almost completes the board- 
room reshuffle at Brent Inter- 
national which began last 
August when chief executive 
Stephen Cuthbert, 51, qndt fbl- 
lowmg mounting City concern 
about the company's lack- 
lustre performance. 

Keith Hatchings, 46, Brent’s 
former finance director, was 
confirmed as chief executive In 
March and Bin Jessup, 42, who 
used to work at Brent, has 
returned as finance director. 
Dobbie win start by taking 
over Dennis Witty’s role head- 
ing Brent’s industrial chemi- 
cals operations and win add 
responsibility for toe printing 
services side at a later stage. 
Witty, 46, has been an execu- 
tive director of Brent for eight 
years and his future role has 
yet to be settled by Brent's 
sew management team. 

Dobbie, who has a doctorate 
in organic chemistry from 


Glasgow University, will com- 
plement Hatchings’s financial 
background. He started his 
career as an industrial chemist 
and switched Into production 
management. He joins JSrent 
from Merck’s speciality chemi- 
cals subsidiary Kelco Interna- 
tional where he has been man- 
aging director for almost four 
years. 

The changes in Brent's 
boardroom are not confined to 
the executive team. Lord Lane, 
69, a former senior partner of 
chartered accountants BDO 
Binder Hamlyn, steps down 
next year after ten years as 
Brent’s chairman and hands 
over to Alec Daly, 58, an exec- 
utive director of GKN. Mean- 
while, Adrian Burn, managing 
partner of BDO Binder Ham- 
lyn, joined the board as a non- 
executive director last month 
following the retirement of 
David Swallow and John 
Jones. Brent plans to add 
another nonexecutive director 
at some stage. 


■ Christopher Andrews is 
resigning from tte board of 
Ladbroke, the leisure and 
property group, less than five 


over future of Europe 


By James BHta 
and David Owen 


New car regi s t ra tions in May 
were up 10 per cent year-on- 
year as demand rebounded 
from the impact of tax 
increases in April 

Car registr a tions increased 
to 1504)70 from 136, 386 in the 
same month a year ago, 
according to figures released 
yesterday by the Society of 
Motor Manufacturers and 
Traders. 

The rate of growth in car 
registrations slowed in April 
with a year-on-year Increase of 
44) per rant, but sales fitn»ngtb- 

pnwi a gain, in May in particu- 
lar in retail and gmaTi busi- 
ness market 

Car registrations of 82L515 in 
the first five months are 13.3 
per cent higher than the 
725,116 of the same period a 
year ago. 

Early in the year growth in 
fleet car sales - to operators of 
at least 25 cars - outpaced tte 
market This was reversed last 
month. Sales to retail and 
small business customers in 
May were up 13.9 per cent 
year-on-year compared with an 
increase of 645 per cent in fleet 
car sales. 

Mr Ernie Thompson, chief 
executive of tte SMMT, said 
the motor Industry was “poised 
for a better than expected 
1994” following tte “encourag- 
ing” upturn in May. Car- 
makers were driving the mar- 
ket forward by “recourse to 
active promotional pro- 
grammes”. 

The UK is nnp of the main 
growth markets for new car 
galas in Europe and manufac- 
turers are intensifying 
their marketing activities 
with an array of cash 
rebates, special editions 

and other infian litfpg 

Mr Paddy Byrne, sales direc- 
tor of Ford of Britain, leader of 
the UK new car market, said 
that car registrations in tte 
whole of 1994 were forecast to 
rise by ID per cent to L95m 
from L78m last year. 

The industry Is preparing for 
the traditional surge in car reg- 
istrations that takas place in 
August with the change of reg- 
istration prefix. 


Mr John Gammer. UK 
e nvir o nm ent secretary, yester- 
day reopened the divisions 
over Europe inside Mr John 
Major’s cabinet by taking a 
markedly different approach to 
the prime minister on the 
future of the European Union. 

As Labour sought to high- 
light what it called the Tories' 
“peat divide” over Europe, Mr 
Gammer Mntwd at discontent 
within the cabinet over Mr 
Major's recent commitment to 
a “multi-speed” EU. 

With the European polls only 
two days away, the prime min- 
ister has elaborated a “new 
vision" for Europe, in which 
member states can decide “in 
their own way and at their 
own speed” how much power 
they give to Brussels. 

But Mr Gumxner — one of the 
most pro-European minis ters - 
warned yesterday that it would 
be “quite unacceptable” if the 
development of more flexible 
decision-making allowed 
Britain to ta ke a more cautious 
line on its place in Europe. 


Britain in brief 






EU to rule 
on workers’ 
committees 


As many as 59 out of the top 
100 UK companies could be 
legally compelled to establish 
European-level consultative 
committees for their workers 
on th* continent despite 
Britain's opbout from the 
social chapter of the European 
Union's Maastricht treaty, the 
Trades Union Congress says 
today. 

Under the EU*s draft 

dir ective on liif nrii Mtiiin anil 
MTTH^ nlfatlon in 
companies will require 
companies employing at least 
1,000 workers across other 
EU states and 100 or more in 
at least two of those 
states to negotiate 
European-wide arrangements 
If demanded by their 
employees or their 
representatives. 

The directive Is expected 
to come into law in the second 
half of this year dnring the 
EU*s German presidency. 


Backing for 
wind farms 


Friends of the Earth, tte 
environmental group, is calling 
for more wind farms to be 
built, despite criticism of their 
economic value and visual 
impact 

It calls on planners and wind 
power developers “to ensure 
high-quality, 

publicly-supported wind power 
projects continue to appear 
in the countryside.” It suggests 
planning refusals have been 
Influenced by “a sometimes 
vociferous anti-wind power 
minority." 


Accountancy 
complaints up 


The number of complaints 
received by the Institute of 


months after giving op his 
responsibilities as company 
secretary. Andrews. 54, has 
been with Ladbroke since 1972 
and was brought on to the 
board by former chief 
executive Cyril Stein as group 
services director In 1986. 

Described as “very much the 
backroom boy” by former 
colleagues, Andrews was 
responsible for head office 
operations. He was on a 
three-year rolling contract and 
will receive a pay-off although 
this is believed to be 

onhs tanHally lags than the 
contractual 


■ Gary Gastmean, the author 
of that essential reference 
manual, tte Dictionary of 
F inancial Wide M anagm i u mt, 
has joined the New York 
operation of SG Warburg as 
head of the firm’s global 
equity derivative research. 
Harvard-educated Gastineau 
previously worked for Swiss 
Bank Corporation in New 
York where be directed 
customer risk management 
product research. 


■ Nick Batcher, formerly md 
and coo for GKN’s Chep in 
Europe, has been app ointe d md 
of DHL International (UK). 


“What is absolutely clear is 
that Britain is not going to to 
be at a slower speed than the 
rest of Europe,” he said at the 
Tories’ dally Earo-election 
news conference. “We are at 
tte heart of Europe and we 
have no intention of being at a 
slower speed than the others.” 

Mr Gummer also appeared to 
disagree with the prime minis- 
ter on why flexible decision- 
making needed to be Intro- 
duced in the first place. 

Mr Major claimed last week 
that the “multi-speed, multi- 
track” idea should be an inte- 
gral part of the EU*s develop- 
ment into tte next century. 

But yesterday, Mr Gummer 
cast that t h«n* in more mod- 
est terms, claiming that it 
would merely relate to new 
applications for EU member- 
ship from tte developing coun- 
tries of Eastern Europe. 

He sai d- “A number of coun- 
tries who want to join cannot 
just join on tte basis of total 
access. What the prime minis- 
ter is suggesting is that you 
have got to look at ways in 
which we enable people to join 
at a different level." 


Labour tried to exploit Tory 
divisions over Europe, claim- 
ing the prime minister was try- 
ing to manage irreconcilable 
division between pro- and anti- 
Europeans In his party. 

“So deeply split is tte Con- 
servative party now on Europe 
that its leader Is obliged him- 
self to face both ways an just 
about every important issue,” 
said Mr Jack Cunningham, 
shadow foreign secretary. 

Sir Russell Johnston, Liberal 
Democrat Europe spokesman, 
said the Conservative cam- 
paign had been “wholly nega- 
tive" and had sought to max- 
imise differences. 

He was supported by Lord 
Thomson of Monifieth, liberal 
Democrat peer and forma- EU 
ivwnmi p’d nner . Who Said it W8S 

a “tragedy” that the Tories had 
turned their back on playing a 
leading role in the EU “for rea- 
sons of purely domestic poli- 
tics." He argued that the 
Tories had forfeited the chance 
of Sir Leon Brittan, tte former 
Conservative cabinet minister, 
becoming president of the 
European Commission through 
their attitude to Europe. 




Trinidadian batsman Brian Lara yesterday made the 
Mghest-ever score in first class cricket when be reached 501 runs 
for Warwickshire against Durham at Edghaston. His inning s 
beat tiie 499 made by Pakistan’s Han If Mohammad for Karachi 
against Bahawalpnr in the 1958-59 season nonMihw 


Chartered Accountants in 
England and Wales haw 
jumped by more than half in 
the last three years, according 
to its latest report 
Complaints focused on 
alleged poor work, slow 
service and disputes over fees. 


with Cogent as its partner; and 
Digital, in partnership with 
Printrak. A decision on tte 
£45m system will be made in 
October. 


Stock Exchange 


Fingerprint 
system shortlist 


The UK Home Office has 
shortlisted three computer 
companies to implement 
Britain’s first comprehensive 
national automated 
fingerprint recognition 
system. 

They are IBM, which will 
be supplied with automated 
fingerprint recognition 
technology by Morpho and 
Martin Marietta; TRW, bidding 


prices warning 

The Stock Exchange must 
gradually remove restrictions 
which block immediate 
publication of the prices at 
which shares are bought and 
sold in London, the London 
International Financial 
Futures and Options Exchange 
said yesterday. 

The lack of transparency 
is already inhibiting the 
deve lopment of a robust 
futures market in London, 
said Mr Daniel Hodson, chief 
executive of Liffe. 


Hugh Harris decides 
to retire early from 
Bank of England 


The managpmimf 
reorganisation at the Bank 
of England has prompted Hugh 
Harris, 58, to seek early 
retirement Gram his position 
as associate director with 
responsibility for the Bank’s 
own central corporate services. 

Harris is the most senior 
official to decide to quit the 
Bank since the decision to 
elimin ate a management layer 
and divide its operations Into 
two broad "wings" responsible 
respectively for monetary and 
financial stability. The changes 
at tte Bank have already 
resulted In the departure of 

seven other senior officials 

and the dosing down of its 
International division. 

Harris’s departure, due later 
this year, follows a 
restructuring of the Bank’s 
central services under which 
the heads of tte Bank's 

personnel and finan c e 
divisions and the Bank's 
secretary will in future report 


directly to Rupert Pennant 
Rea, deputy governor. 

As part of these changes, 
John Footman, the h ea d of 
the Bank's information 
division, will be promoted to 
secretary with effect from 
September when the present 
secretary, Geoff Croughton, 
retires. Footman will retain 
responsibility for press and 
information work. 

Gordon Midgley, h«>d of 
man a g ement services and the 
Banks computer specialist, 
will expand his empire and 
be put in charge of finance and 
resources after the reti re ment 
Of John R mnins finanw 
director. Mike P hilli ps r pmainn 
Bank auditor and will report 
to Eddie George, the governor. 

A new personnel director 
be recruited from outside 
® at *- Barns, who joined 
tte bank in 1859, will fill this 
role on a temporary basis until 
toe position Is filled. (See 
Observer) 


J DOLLAR 


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FINANCIAL TIMES TUESDAY JUNE 7 1994 


TECHNOLOGY 


P ersonal amputar mannfjac- 
taros have always eyed, 
the ; h o m e market as an El 
Dorado, a largely untyped 
gold mine; that promises, great 
wealth to those who -caa find the' 
right combination of technology 
and price. 

Yet the PC industry is littered 
with sad tales 'of companies that 
failed to malm it Into the home mar- 
ket, or last huge fortunes in the 
attempt, such as Coleco with Its 
Adam home computer, the Sinclair 
ZX80, Commodore and IBM with its 
EBMPCfcV .. 

Bat dfisptte the failures, PCs have 
made reinarkable lnroads in the DS 
home market. According to the Soft- 
ware Publishers Association, 27 per 
cent of OS households have PCs. 
Market rhse'areh . company link 
Resources predicts that toy 1998,. 
almost 50 per cent of US households 
will own a PC^: 

“When you look -at medium to 
large business sectors, the marirofa 
are already ' Very saturated," 
explains Abhgeet Rane, senior 
industry analyst at Link Resources. 
“The home market offers much 
greater potential for growth than 
the business market” 

While many PC companies have 
offered low-end models as a. way 
into the home 'market, Intel, the 
leading microprocessor manufac- 
turer, has discovered that US con- 
sumers are buying large numbers of 
sophisticated systems. 

‘‘Conventional wisdom says. that, 
the home PC market is served toy a 
low-end machine,? said Paul Otel- 
Uni, senior vice-president and co 
general manager of Intel's. -MBcro- 
propessor Products Group. “The 
fiaetS;$re different, however. Multi- 
education arid entertainment 
sippBffltinre] are key pieces- of the 
home iPC marketplace and they 
require J : CPU: -(Central processing 
unit) perforniaucQ as well as a 
design.” 

r jtatel racently lmmched a glsom 
•jflJ OW i l tonripwig p to pro- 

p«%.^te jnoet powerfal micropro 
o®^,--th^;Praittuin, in systems 
. afine^at the home market. Intel 
ilvratoos to Vut the price of Pen- 
&|m^aroptooessars at a faster 
ratR.-Tjftakins^ Pentium-based PCs 
m^ce'affordEdjle, especially for the 
Chriaimafliselling period. By the 
fonrlSl 'quarter •'■of this year, Mel 
expeetsL-"P«^lvB»-toased PCs to 
accoUKtL^ aper^^nt of all PCs 
fidd, v^tiraMe^t &iIf being sold to 

TJ* th^home PC mar- 

oh the 
PC systems, an 
area.ihat iifed' fortoedriven toy the 


The competition for fun and games is heating up as PC 


makers take on the video giants, reports Tom Foremski 


Battle for house 


and home 








SfJ 


?j iff/ 



LJ& 


fr I 


tag 




demandSL^JfeShsihess market 
For- ^cabo^ t^om drives and 
soaa4 carda}»Mj^ning standard 
iarf ^ there are few 

that require 

ffiddatt* next big-,' 

eio'lfficrosoSt's popular Win- 


dows user interface, will be able to 
run games and educational software 
applications. 

Software, applications have 
always been the key to hardware 
sales, fix. the same way that finan- 
cial spreadsheet software helped 
boost sales of business PC systems, 
games promise to help PC compa- 
nies in their efforts to enter more 
homes,. 

Market research shows that chil- 
dren are a key factor in determining 
PC purchases. This means that the 
PC has ta adopt some features that 
will appeal to children who are 
already fiamitiar with video game 
player machines. 

But the competition is for midab le. 
While PCs have manag ed to enter 
markets once d omina ted by work- 
stations, minicomputers and main. 
frames on the basis of high perfor- 
mance and low price, video games 
players are already very cheap. The 
next generation of video game play- 
ers, due in 1995 from Nintendo and 
Sega, win feature fast graphics and 
powetlta, microprocessors that will 


rival high-end workstations at a 
fraction of the price. 

Jeff Camp, multimedia systems 
product manager at Microsoft, said: 
“The home PC market is growing 
quickly but we have had an earful 
from customers complaining about 
the lack of fast games for Windows 
systems. We are now able to pro- 
vide games that have the fast 
graphics that customers want.” 

Developing games for PC systems 
has many attractions for video- 
game companies. There is an 
installed base of about 40m Win- 
dows-based PC systems and the dis- 
tribution of games for PCs is 
cheaper. Nintendo and Sega charge 
video game developers about $20 for 
each video game cartridge and they 
maintain strict control over the 
type of games that can be played on 
their sys tems . In contrast, there is 
no royalty to pay for distributing 
PC-based games and there are no 
restrictions on the development of 
games. 

PC owners are typically more 
affluent and can afford to buy mean 


games. The Software Publishers 
Association found that half of all 
US households with PCs have an 
annual income of at least $50,000. 

“PC versions of major arcade 
game and film hits are the fastest 
growing segment of our business 
and of the gamp industry overall,” 
Says Henry Kaplan, chairman and 
chief executive officer of New York- 
based game developer Hi Tech 
Expressions. “Industry-wide, this 
segment of the market accounted 
for about $300m in sales in 1993 and 
we expect it to grow to $15bn by 
the end of this year.” 

While Microsoft is happy to 
encourage third-party gamp devel- 
opers, it is not i gnoring this fast 
growing market ftapif. The company 
has expanded its consumer prod- 
ucts division and launched its 
Home brand which includes low-end 
versions of its business software 
such as word processing and 
spreadsheet software plus new 
entertainment software. 

Although Microsoft offers fast, 
graphics-based ga m es such as those 


found in its Arcade package, Tony 
Garda, manag er of the entertain- 
ment division at Microsoft, explains 
that most of the games are more 
adult oriented. “Games such as 
Flight Simulator and our forthcom- 
ing Space Simulator offer more 
depth which appeals more to 
adults.” 

Software companies such as Utah- 
based WordPerfect have also tar- 
geted the home market Earlier this 
year, WordPerfect introduced its 
Main Street software line, a collec- 
tion of word processor, spreadsheet, 
games and educational software. 
The company also agreed a deal 
with Walt Disney that will allow It 
to use Disney characters to market 
its software in Europe. 

Among PC manufacturers, Com- 
paq Computer has been successful 
in reaching the home market with 
Its Presario models. Its success 
recently pushed the company to the 
top in US sales for the first quarter 
of 1994, ahead of 1993 market lead- 
ers IBM and Apple Computer. 

For now, PCs and video game- 
playing machines can co-exist, with 
most households that have PCs also 
owning game machines. The battle 
for the home market will be waged 
with the coming integration of com- 
puters and TVs in the form of set- 
top TV boxes. These will be power- 
ful computing devices, capable of 
running business as well as en ter - 
tainment software, and acting as 
gateways to the much heralded 
“information superhighways". 

PC firms such as IBM, Hew- 
lett-Packard and Apple Computer 
are developing their own set-top TV 
systems. These companies have an 
advantage in that there is a huge 
base of software applications, not 
just games, that will run on their 
platforms. 

However, video game machine 
makers will not give up their huge 
installed base without a fight Nin- 
tendo, Sega and Sony are develop- 
ing powerful set-top TV systems. 
Nintendo has teamed with work- 
station manufacturer Silicon Graph- 
ics to develop a set-top TV system 
that wiD incorporate many of the 
features of a high-end 3-D graphics 
workstation yet retail for less than 
$300. 

Nintendo, Sega and Sony have an 
advantage in that they understand 
the consumer electronics market 
better than their PC rivals. They 
also have mine widely recognised 
brand names and well-established 
distribution channels. 

Whichever technology wins, it is 
clear that the competition for the 
h orftft market will result in larger 
numbers of computers in the home; 
allowing parents to work from 
home, children to run educational 
and entertainment programs and, 
eventually, to provide a means of 
managing huge data flows from 
future “information superhigh- 
ways". 


Old bugs learn 
new tricks 


Oil a l’orange is a tasty dish for 
some, says Ian Hamilton Fazey 


E dward Bfllington, the 

Liverpool sugar merchant 
and foods group, appears 
to have found a way to make 
waste oils, tars and other 
unwanted hydrocarbon s tains 
and contaminants more palatable 
- not to humans but to bacteria. 

The development offers a more 
environmentally friendly way 
of cleaning grime-prone surfaces 
like garage, workshop or factory 
floors, or petrol station forecourts. 

It also works on contaminated 
ground, where hydrocarbon waste 
has soaked Into soil, giving an 
alternative to digging out the 
earth and dumping it 
Using bugs to devour 
hydrocarbons has been practised 
in sewage farms for decades but 
problems arise when the waste 
comes in an emulsion or 
suspension after the oils have 
been dissolved in detergents. 

Bacteria are put off by the taste 
of the detergent and the digestion 
process becomes inefficient Most 
producers of effluents tend to 
accept the situation and pay their 
local water authority extra to 
compensate for the problem. 

The principal ingredient of 
Billington’s process is a natural 
solvent called Pronatur, maria 
from waste orange peeL Billington 
unveiled it last year after it 
bought the small company which 
had developed the solvent It has 
since invested £200,000 in a new 
factory in Bootle - twice the sum 
planned originally because sales 
of the solvent are growing faster 
than expected. 

One of the solvent’s properties 
is that it is immiscible in water. 
This means that if it is used to 
clean oil-stained concrete, it can 
be washed down the drain with 
water and easily separated from 
the water in interceptor pots. 

In porous material like shingle 
or soil, a spray of water helps the 
solvent and bacteria soak in and 
do their work. In either case - 
solid surfaces or porous media 
- the final chemical products are 
carbon dioxide and water. 

The solvent amelia like oranges 
and seems to appeal to 
oil-devouring bugs. The system 
has been demonstrated during 
trial cleaning of stained concrete 
and railway track at Tyseley depot 
in Bi rmingham. 


The trials were evaluated 
independently by Derby 
University’s Environmental 
Impact Analysis Group and seem 
to support Billington's claims for 
its product and systems. 

When the trials started, the 
chemical oxygen demand (COD) 
of Tyseley*s effluent was 12,144 
mg/1, more than 20 times above 
the permitted level. By spraying 
with Pronatur and water and then 
adding bacteria to dissolve the 
waste hydrocarbons, the figure 
dropped to 4.286 mg/1 after a week 
and 98 mg/1 after three weeks. 

The hydrocarbon content of 
the effluent went from 470 mg/ 

1 to 54 mg/1 in the period. Glycol 
readings plunged from 7,610 mg/ 

1 to less than 1 mg/1, while the 
pH moved from a highly alkaline 
value of 12 to 6.82 - barely on the 
acidic side of neutrality. 

“We are now selling 
do-it-yourself kits to industry, 
plus training, so companies can 
carry out this cleaning as a 
simple, cheap, maintenance 
routine,” says John Hassett. 
Billington’s chief executive. 

Richard Monbiot, technical 
director of Pronatur Products, 
a Billington subsidiary, says the 
aim will be to undercut cleaning 
contractors, where the main cost 
is labour, and obviate the need 
to pay extra to water authorities 
for effluent treatment because 
consent levels cannot be 
attained. 

In the Tyseley railway depot 
case, effluent charges bad been 
£20,000 over six months. The new 
system cost £10,000 to get 
everything thoroughly clean, 
while continuing maintenance 
will be a fraction of that. 

However, while Pronatur is 
gaining ground among big 
companies, Monbiot says 
medium-sized and smaller 
companies are sticking to 
trichlore thane, its entrenched 
rivaL But Billington believes that 
companies may be forced to 
change by law, as environmental 
controls tighten over synthetic 
chemical solvents. 

“Big companies are greener 
and are more likely to act earlier,” 
Hassett says. Pronatur has 
attracted interest in the US and 
Europe, where distributors are 
in place, and also in Japan. 







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MANAGEMENT: THE GROWING BUSINESS 


FINANCIAL TIMES TUESDAY JUNE 7 1994 


I nformal capital supplied by 
business angels Is increasingly 
recognised as an important 
source of finance for small pri- 
vate companies. 

Yet it is a stark fact that very 
few, if any, of the marriage bureaux 
that bring together wealthy individ- 
uals and private businesses make 
e nds meet. Almost all have required 
subsidies from government, corpo- 
rate sponsors, or other parts of their 
own business, to cover the full cost 
of their service. Even in the US, 
where the entrepreneurial seam 
runs deeper, the most successful 
marriage bureaux are subsidised. 

This is not to say private inves- 
tors are not backing private compa- 
nies. Introductions are probably 
made every day in the golf club and 
through family ties. According to 
some estimates, as much as £2 bn 
has been invested in the UK infor- 
mally over tbe last 10 years. 

The government clearly believes 
this informal investment is an 
appropriate form of finance for 
undercapitalised companies too 
small or too risky to be considered 
worthy of formal venture capital 
But are introduction services, as 
currently structured, likely to 
increase substantially this flow of 
risk capital? 

In last month’s white paper on 
competitiveness, the government 
said it wanted to work with Busi- 
ness link organisations, TECs and 
the private sector to encourage 
informal investment. The DTI 
would work to try to help develop 
“national coverage of a local broker- 
age service throughout England”, 
the white paper said. 

But neither the white paper nor 
the DTI have said whether the gov- 
ernment will provide any funding 
for this. The DTTs pump-priming 
funding runs out next December for 
the five business introduction pilot 
schemes it backed two years ago. 

The DTI has tried, but foiled, to 
encourage the formation of a 
national database. Tbe agendas - 
Venture Capital Report, Line. Capi- 
tal Exchange and Techinvest - 
could not agree the form such a 
national service should take. 

As a result, the introduction 
agency market remains fragmented 
and the service offered to subscrib- 
ers varies greatly. The following are 
some of the leading providers; 



Go-betweens for 


business angels 


Richard Gourlay examines the growth of informal capital financing and 
the marriage bureaux set up to bring companies and cash together 


equity on offer. VCR consultants 
spend half a day interviewing the 
company and then compile a five- 
page summary of the business prop- 
osition for publication in the report 
Investors pay £300 a year to sub- 
scribe; companies £350 and, on com- 
pletion of a deal a £1,000 fee plus 
2J5 per cent of an; money raised. 
VCR normally does about 15 deals a 
year but has already done 17 in the 
last SIX months , r aising f.Tm It has 
raised £15m since it was set up. 
Expansion of the formula is con- 
strained by the time required for 
each appraisal (Tel 0491 579999) 


Venture Capital Report. Lucius 
Cary, who started VCR 16 years 
ago, is the grandfather of the busi- 
ness angel introduction industry. 
Publisher of a monthly report that 
goes to the 634 business angels on 
its books, VCR claims to be the 
most interventionist of the bureaux, 
assessing projects at a depth not 
attempted by other services. 

This, VCR argues, filters out the 
non-starters and gives busy inves- 
tors a warts-and-all view of busi- 
nesses including the amount of 


The Local Investment Networking 
Company. Comprising 12 Training 
and Enterprise Councils and Enter- 
prise Agencies, this national 
umbrella group is sponsored by the 
private sector. Councillors ensure 
business plans are complete but 
their assessment has in the past 
been seen as more perfunctory 
than VCR's. 

The company seeking equity 
writes a two-page summary that is 


published in Line's monthly bulle- 
tin. Line says there are 250 inves- 
tors on the books of regional mem- 
bers who have helped raise about 
SAJSm. for 95 businesses since tbe 
group was set up in 1987. 

It says investor meetings run by 
tts members are increasingly popu- 
lar; at each me eting about six com- 
panies tread the catwalk before 
potential investors in a beauty 
parade. 

Line’s record has been patchy. 
Some members, like Staffordshire 
Development Association, have 
been active and successful Others 
have done almost no deals and have 
left Line. Companies pay £200, 
investors £120 a year some of the 
Line members charge commissions 
when cash is successfully raised. 
(Tel 071 236 3000). 


books and says it has raised more 
than £lm for 20 deals in 12 busi- 
nesses. (£500,000 was provided in 
one deal by a. venture capital 
group.) 

The service offers companies 
seeking money a subsidised advi- 
sory service during which consul- 
tants put the proposal into shape. It 
also runs investor meetings and 
plans to open them to the public for 
a fee next month, 

Techinvest sends same of its pro- 
posals to VCR and same to Line for 
mdiisiflm in Line's national bulle- 
tin. Investors and companies pay 
£200 to join - £400 if their cases are 
published through VCR - and a fee 
similar to VCR’s if rash is success- 
fully raised. The source of future 
funding is uncertain. (Tel 0606 
737009.) 


wide choice of businesses, but it 
does not vet its investors. 

A network of self-employed prin- 
ciple advisers spends about three 
hours verifying that companies 
seeking funds have a complete busi- 
ness plan. These advisors receive 
part of the £120 fee that the compa- 
nies pay for indusicin in a newslet- 
ter. 

Capital Exchange says it has 
found as much interest among cor- 
porate as private investors. Set up 
late last year, Capital Exchange 
says it has found joint venture part- 
ners or equity for IS businesses. It 
has no way of verifying how much 
of tbe £2ikn sought was actually 
raised. It has 1,100 members, 700 of 
which are investors, who pay £75 a 
year membership. (Tel 0432 342484.) 


Techinvest. Based in Cheshire and 
one of the DTTs five demonstration 
programmes, Techinvest is one of 
the mare successful regional intro- 
duction services. Started in Febru- 
ary 1993, it has 79 angels on its 


The Capital Exchange. The young 

est of the four par tner s the DTI was 

trying to encourage. Capital 
Exchange is purely a publishing 
operation. It aims to provide a mar- 
ket place for information and 
attempts to provide angels with a 


Somewhat different from all of 
these is 3i, the UK’s largest supplier 
of private equity to private compa- 
nies. At the height erf the recession, 
3L had used successful businessmen 
and women with time on their 
hands as non-executive directors. 


particularly in smaller companies 
which the group was refin anci ng. 

Increasingly these nonexecutives 
wanted and took equity stakes, 
investing alongside 3i in classic 
informal financings where the man- 
agerial expertise erf the angel was as 
important as the cash. 

The group says that a large num- 
ber of its deals worth less than 
£500,000 now follow this pattern of 
co-investments alongside business 
ftng PiE- In the 17 months to the end 
of December 1993, 31 co-invested in 
53 companies in this way; its contri- 
bution is between three and 10 
times what the angels invest, 
depending on the size of tbe deal. 3i 
says it has 150 business angels on 
its books, many of wham want more 
than one non-executive equity 
investment Tbe angel is often the 
factor that makes the deal viable, 3i 
says. 

Other groups trying to introduce 
angels and opportunities include 
accounting firms such as Black- 
stone Franks that keep a database 
as part of their service to custom- 
ers. 

The National Westminster Bank 
has mid it will launch a pilot intro- 
duction service that will incorpo- 
rate a national database of business 
angels. The launch has been 
delayed but NatWest says it is 
developing the product Other Intro- 
duction agencies are listed in a 
booklet produced by the British 
Venture Capital Association. 

One group not in this guide is 
Enterprise Adventure (Tel 0483 
458111), which launched a national 
database last week called Venture- 
list Computer-based, it hopes to be 
a national clearing house which 
angels can access via modems. 
After a period in which the service 
is free, companies will pay £300 far 
a quality assessment by a consul- 
tant and an entry on the database. 
Individual investors win pay £500 - 
firms of accountants bringing a 
number of angels win pay £1,000. 

Uke the other services, Venture- 
list will depend heavily on getting 
an adequate supply of angels and a 
strong enough deal flow. 

Pinning down angels and the 
amount they invest is notoriously 
difficult But if recent research is to 
be believed, there are about 50.000 
informal Investors in the UK Colin 
Mason, of the Univeraity of South- 
ampton, guestimates angels have as 
much as £3hn they would invest if 
only they amid be joined with busi- 
ness opportunities. 

A better flow of Information 
would clearly facilitate more mar- 
riages between angels and entrepre- 
neurs. But judging by the record, 
most angels will continue to find 
their investment opportunities 
through their own networks rather 
than through the energetic offices 
of the business Introduction ser- 
vices. 


Call for 

trust 



changes 


T he British Venture Capital 
Association is this week 
expected to tell the 
government its proposed 
venture capital trusts need 
substantial changes If they are 
to be attractive to investors and 
sponsors. 

In a submission to the Inland 
Revenue, the BVCA says the 
VCTs need to be allowed to 
Invest in larger companies and 
says greater tax breaks are 
required to attract investors. 

The g o vernment announced 
it would launch the VCft in 
last November's budget as one 
of a number of measures to 
encourage private investment 
in small companies. 

While the Idea has been 
welcomed in principle, tbe 
s tr uc t ure proposed by the Inland 
Revenue has been widely 
criticised as providing 
insufficient reward for the 
added risks of Investing in 
unfisted companies. 

Tbe BVCA wants tbe single 
inv e s t ment limit to be £2m, 
compared with the Revenue's 
proposed figure of Elm: the 
Association of Investment Trust 
Companies wants a £3m ceffing. 

The BVCA also wants 
investors to enjoy capital gains 
tax roll-over relief when they 
sell quoted or other investments 
and reinvest the gains in the 
VCTs. Since the Last budget, 
this relief has been available 
on direct investment in private 
companies. 

The government wants the 
VCTs to help attract private 
equity investment in start-ops, 
new and high-technology and 
smaller companies. 

The BVCA argues that, by 
only allowing investment in 
this type of small company, the 
VCTs would be unattractive to 
investors and highly 
risky. 

It argues the government 
should consider either up-front 
rdief against income tax at 20 
per cent or tax relief for 
investments in the smallest 
companies, for example below 
£500,000, instead of the proposed 
tax relief on dividends and 
capital gains. 


BUSINESS OPPORTUNITIES 


HEAPBS ABE RECOMMENDED TO SmCAPPHOPRMTEPROfBSSIONAL ADVICE BffORE EWITONQ WTO COjUTMEHTS 


BUSINESS 

SERVICES 


BUSINESSES FOR SALE 


AWAY TO THE MIDDLE EAST 
ASSA 

ESTABLISHMENT 


Fully furnished offices 
Trafalgar Square 


VCRj Venture Capital Report! 


In n w e tirairta rated «n part 6 maufla 



u» MkhnalnlH) awol 
•AfTfaoa non I 


BIRO FOOD MACHINERY 
LIMITED 

(In Administrative Receivership) 


ftMmt Vida* Cookery < 


a. Our Assa establishment welcomes foreign 
companies to the Kingdom of Saudi and Middle 
East to sell their product, or set up technical 
workshops, technology etc under their own 
management, we will issue the following 
companies our sponsorship and best 
opportunity and responsibility to continue the 
business by our Saudi government regulations 
in the Kingdom of Saudi and the Middle East 


Secretarial Mrrvicn * Conference belli tin 

Photocopier, Fan, W.P. • Flexible Lease Terms 

Personal Telephone Answering • Immediately Available 

Tel: 071 872 5959 


USA only 24p per min 
Australia 40p p«r nun 
No VAT 

Ask about onr low rates 
to other countries. 


N J Hamilton -Smith and M W Young, the Joint 
Administrative Receivers, offer for sale the assets and 
goodwill of this established Food Machinery Distributor 
based in Harrow, Middlesex. 


Your Partner in Over BO International Baaincw Location* 


b. Our Assa establishment seeks foreign 
companies if they have any new ideas to 
produce any new material in our interest in 
Saudia, we will take the responsibility to carry 
the full cost of the following company in the 
Kingdom of Saudia by our Saudi government 
regulations. 


Trading Company can offer regular long term shipments 
of sawn, pine, fir and de-baiked logs to UK and Europe. 
Company requires to finance mill operations on basis of 
long term supply contracts. 


PrawMbg the rllreia Rnk between 
bt nimmea and private iavotorn. 


Rxdodbcall M«l 5W) 


FREEPHONE 
Call 0800-98-0806 
Fax 0800-96-0807 


27 M00 sq.fi. Leasehold Offices and Warehouse 

Skilled Maintenance Engineers 

Established Business , Turnover circa £3m 

Valuable Stock of Machines and Spare Parts of known brands 

to include: 


COMMODITY FUTURES 
TRADING IN CHINA 


Interested patties reply do 

Bax No: K29 1 1 F«ranrial Times. One SootbMKlr Brides, Loadoo, SB 1 9HL 


Financial Management 
for small Companies 


British national wbo wotted for 

would like to talk to British iv-i yu - u 
wilt i nterest in die n>in» mitceL 


-WATER 


Financial Director long experience 
offers part-time assistance to small 
companies. 


c. If any company is looking for dealers to sell 
their products in the Middle East, we will take 
the dealership from the following companies. 


If any companies are interested in our 
advertisement please contact us with the full 
details, to our Madina Munawara branch: 


Start-ups, financial planning and 
budgeting, systems work, 
supervision of accouitfng functions, 
cash management, relationships with 
bankers, auditors, brokers, general 
management help. 

Write to; Box No B2826. Financial 
Times, One Southwark Bridge. 
London 9HL 


Agents required in all European 
countries Coir superior portable water 
purification products. 

These systems are currently specified 
and used by military forces 
worldwide and for civilian leisure 
and travel markets. 

Only Principals should reply wbo can 
demonstrate marketing and 
distribution ability. 

Write » Box No: B2914 Financial Timet, 

CteSautawadcBtkfer Loadoo SEJ 9HL 


Write eo Box B2933, Financial Ttnass, 
One Southwark Bridge, 
LoadosSEI 9HL 


NO DEAL NO Iff 
5RUNG YOUR COMPANY? 
If you are ttttig about fc 
please contact us h 
absolute ccnWarttefiy. 
EuKriPadteUd 
VNa WcflhoniMddenhead 
Battita SL6 3RU 
WO*. 062682*94 


BIRO ATLANTA ALPINA SCANS I'tiEL MAGURTT 


For further information, please contact H Pattni at the 
Receivers' office on (0727) 811111 or write to Morton 
Thornton & Co, Tomngton House, 47 Holywell Hill, St 
Albans, Hertfordshire AL1 1HD. 


MANUFACTURER OF enabing component 
lor domestic solely product nanka 
electronics manutaetuinfl subcontractor 
wttti ratal end coraunw merkrtng ouMa. 
The product tea aubttenUd potential In 
Europe and ebewfwre. RepAaa to Boot No. 
B2B1B. Hrandei Thnea, One Southwark 
Bridge. London SE1BHL 


Assa Establishment 
PO Box 2972 
Madina A! Munawara 
K.SA. 

Tel: 04 8388137 
Fax: 04 8388137 


CHANNEL 

ISLANDS 

Offshore Company Formation 
and Admuristraltoo. Also Liberia. 
Panama & BVT etc Total offshore 
facilities and services. 


For d m tb—d iun l winrnf write 
Ctoy Trust Ltd- Belmont Home. 
UBdnw Rd, St Hdte; Stucj. CJ. 
Td: 0534 78774, Fhx 0534. 33401 
TU 4102327 COFORM C 


CONFIRMABLE DRAFTS 
BACKED BY CASH 

★ Issued in Your Name 

★ Confirmed by Major IntT Banks 
to Prove Availability of Ponds 

★ Backed by Private Investor* 
CAPITAL SUPPORT CORP 

| US, (714) 757-1070 • Rot (714) 757-1270 


LEISURE OPPORTUNITIES. Newly 
•ataDUshed leisure company In East 
London naaka wy4ty Investor. Pfe ml a a o 
avaiabto to provide corporate and puttie 
iMteK. La. ki Moat goJaMtog and 
bowing- No knmadta con^jaBDoa Write 
to Bax No. B2S12. HnancU Times. One 
Southwark Bridge. London SEI 8H. 


PLANNING A 
CONFERENCE? 

Expert arientran green to every dead, 
enabling you to achieve yotu goals. 
UK/USA Specialists. 

BFCC Conferences, Inc I 

UK: 071404 6400 1 

U& 0101 (305)448-6483 ! 


(rJ Morton Thornton & Co. 


PROPERTY BARGAINS Tenanted res. 
up to 7S% off v-p. valuaflana. Afl areas. 
0632370666. 


HOTELS & 
LICENSED 
PREMISES 


INSTALLERS OF METAL 
ROOFING & WALL CLADDING 
SYSTEMS; NORTH WEST 
we* established, turnover In excess of 
£2nMni.ripetedwelC|iiuMwpiin3ion, 
BUSINESS Offl-Y Cl 25,000 
Rtf: 1409 HARVEY SILVER 
HODOKMSON 
TEL 061 8332000 


GREETINGS CARD 
FRANCHISE 

to Birmingham area tor sate Buatooas 
■un from homo with tardy ear. Staring 
ap- £7.000 pus. Nflh masehw scope tor 
wparaflon. Lagftimaro reason tar sale. 
Price dl .000 

CBS Simon MBs on 
0B1 332 05061Ftoc 0B1 3321286 


BUSINESSES 

WANTED 


AREA/COUNTRY COMMISSION 
SALES REPRESENTATIVES REQUIRED 


Experienced highly skilled sales persons (male or female) 
urgently required to promote an established global 
fortnightly magazine in all major overseas markets, in 
particular, tbe United States, Canada, Western Europe, 
Middle East, India, Eastern Europe, Russia and Far East. 
The selected person will be responsible for own territory. 
Depending on experience and potential, the area 
representative could also qualify for commission on 
advertisements. Potential annual earnings could be above 
£25,000 a year. If you believe yon are capable of earning 
high income and are experienced in magazine promotion 
and advertising sales contact us immediately. High 
percentage commission. No salary or retainer. 


INVESTOR WANTED 

Electronics company seeks 
#i00k+ to promote & extern] a 

fully developed innovative & 
exciting new product range 

using leading edge technology 


PARITVER/INYESTOR 

REQUIRED 

FOR ASSURED SHORT HOLD 
TENANCY PORTFOLIO- 
Good return and security offered 


WANTED nt mw uo h and Storage Ri eto— 
Baaad SE London. Wrtta Box B2901. 
fik modal Tinas. Ona SnSfnrarft Srftfca, 
London SET 0HL. 


BUSINESS 

SERVICES 


PARK TA VERN, 
SOUTBOBTELDS, SW18 

Unique oppormity to purchase 
this large prestige public house. 

6 room accommodation. 

IS years remaining InL Lease. 
Price £175,000. pins SJV.V. 
Excellent scope to expand trade 
with the benefit of Section 68 
for function roams, restaurant 
and BBQ garden at rear. 


FO R SALE 
SAFETY LIGHTING 

manufacturer 

Baaed Eastern USA with well established 
d«i*arioo throughout North America. 
S5m+ 170 with good profits. 
Expeflent BaK 

Fax.- +44 (0) fil 794 0157 


WJSDngSS OPPORTUNITY LOG 

UKTs Bm complete rad np to dale detrib ok 

* RrectentripUL^mifatkitM 
■ Gnpaafca In Tteobto 

* Anatom 

* Baineses For {Me 


PM "*“ced by experienced prafemtonb with 
„ ,«?te ubratea people in ntind 
•towtet of Cm. and cornea is each iooc. 
Td: 0273 SO 1070 For 0273 800740 


SMALL PROFITABLE 685 
QUOTED PROPERTY 
COMPANY FOR SALE OR 
MERGER WITH LARGER 
PROPERTY OR OTHER 
INTERESTS. 


wienn sbawi Hi.s» 
Mkktacx HA7 3DS 


One Southwark Bridge, 

London SKI 9HL. 


Hun raft la Bn B3UO. Ftanot* Timm. 
Om Suren* Bridge. London SEi SHL 


Financial Advisors 


seeking financial agents in Europe, Asia 
and Middle East only to offer a unique 
high yreld fmutd] program. 
Excellent CbroansHma. 

U utonded please call David or Sea: 
Td USA: 341-89741(3 or 
Pen USA: 3M407-S46O 


OUTSTANDING PRODUCT 
LINE FOR SALE 
Based on plastic injection 
mouldings and pressed 
metal parts. 

Teh 0989 730439 


TRAFALGAR SQUARE - Your buatnwa 
address and dsdietfnd telephone Bne In 
London, Pate, Both Ftfnkftiil MftMdand 
BO other lop locaHona worldwide. Can 
Ragu3on071 6726600. 


For further info phone 

031 874 7048 Mr Mertes 
between 9am to 12am 


l« me^wraMy flortaaewy 

ggjfla ta a^SHSorMO? 

•““"ll ta *■ teotaaqr 

mffi&aeiBa 

5£i«BaaB 

EffiHY IftMhBBg opportunity EVERY— riff 


LEGAL NOTICE «« 


LWE BUSINESSES FOB SALS 

mntei m aw«a ferorigMy on 262 1 164 
FtocOn 70B3464 


OFFICE EQUIPMENT 


IN THE MATTER Or 

THE (NSOLVBtCT ACT 193» 


IN THE MATTER OF 
* 0U * Y W OCMtBIW ATIOIM.rLC 
ON ADMINISTRATION) 




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*i 



HOUl* • 604T * t 


I’IMvi 


> f . i 


Kit M i i i j \ 



He 


MOD'fi.- 

lN VlTAT;« : -=v 






! ***,,.. 


Reply giving complete details care of Box No: 82913, 
Financial Times, One Southwark Bridge, London SEI 9HL 


DEVELOPMENT LAND Queen* Promenade. 
Sisphom. Blackpool, with Detailed 
Ramtofl Conrent far 16 no. 2 Bod Hob + 
Swimming Fool. Enquiries to MHH 
United. 143 tew Union Sana. Coventry. 
CV1 ENT. Fax (OSO) 560324. 


COMMERCIAL FINANCE VenUB CapBti 
avatette tom S35CJX)0 upward*. SensUe 
Haros. Smstoto Fees. Broker enquiries 
watcome. Anglo American Venture* Ud. 
TaC (0324) 2D1366, Fax (0SW) 201377 


FUNDS AVAILABLE 
TO PURCHASE 

• Letters of Credit 

* Bank Guarantees 

• Other Acceptable Collateral 

* Backed by Private Investors 

thru major irm. banks 
CAPITAL SUPPORT CORP. 
US (7MJ757-UJJO* Roc (7M| 737-1270 


JOMT VENTURB PARTNERS REOWtEDL 
London btMd property development 
company experienced merngemenl Is 
aaeUng fttandal partners tor rwfctentiM 
and commercial Bahama*. Attractive 
returns available to secured or equity 
functors. Construction risk ell minuted. 
Write to Bdk No. B8913. Rnandel Tfenra. 
One Soutenk Bridpo. London SEI ML 


We have - direct from the manufacturer - new high quality 
executive and system ranges - conference and receptions. 
Large choice of veneers, melamine and/or laminate finishes 


ESTABLISHED YACHT BROKER (SO 
yeoa} aaeb nddUonal boot ataek Bwnc* 
TuBy 9ocure<L Cell Curl 0764 *77677 
(TrieW) 


London Showroom for viewing: 

Ariel House, 76 Charlotte Street, London W1 
Tef: 0374 741439 

Full camcad and planning services. 


Oe 20 M ay 1994. p ww to Rite 7X7 of He 

tod* 1986 wl S ccum I3«r£ 
. Jtet wteuremor « u* ^ 


aodfa two 

repeataret MicfeMl Anthony Jordan, Ricfcanl 

S * m . ana c * rig yi*»r Matrii m frrfa 


THE 

BUSINESS 4 . 
SECTION 
ALSO 

APPEARS ON 
PAGE 22 
TODAY 


' >1 . . 

. " ’ Sji 







9 



FINANCIAL TIMES TUESDAY JUNE 7 1994 




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FOK SALE 

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BUSINESSES FOR SALE 


WINDOW COMPANY 
In Southern England 
FOR SALE 

rt very attractive price. 

• Large Customer Base 

• Long Established Business 

• Manufactures & installs 

UPVC + Aiimwrtum 

• Excellent manufacturing 
faoMty 

• Tremendous growth potently 

Write to: Ekut No B2910, Financial 
Times, One Southwark Bridge, 
London SEl 9HL 


Timber Fencing 
Supplies 

Established South Waka Timber 
Treatment, Supplier and 

Contracting Business. T/O £l3m. 

Freehold Premises, Genuine - 
RetiromcBi Sale. 

PFM Ltd Pix: 0792474112 
Alexandra House, l Alexandra 
Road, Swansea SA1 5EDa22640 


FOR SALE 

Long established company 
distributing food, confectionery 

and related products. 
Turnover approximately £lm 
Consistently Profitable. 
Owner wishes to retire. 

PWs* write to Bax Mb: B2905 - 
nmmdalTbnM. OmSBtdnnABSIe^ 
LmbvSHI M. 


FOR SALE 

MARINE ELECTRONICS COMPANY 
HAMPSHIRE 

Yard bum Navigation Systems Ltd wish to dispose of a 
subsidiary as part of their current, group rationalisation 
of activities. 

* Turnover £1 .4m rising to £2.0m in two years 

* Pre-tax profit in excess of El 50,000 after all 
charges 

* ’ To be sold free of all borrowings mid Intra- 

group debts 

* Located in the East Hampshire Countryside, 
near to the main A3 

* Twenty highly-trained staff in total 

The business specialises in integrated electronics 
systems for surveying, navai applications, 
environmental monitoring and the offshore oil industry. 
Exciting new products are under development. This 
company would suit an existing defence manufacturer 
wishing to broaden its product base and market 
coverage. 

For further details contact Peter Landsborough, FCCA 
tel: 0428 751671; fax: 0428 751405 


Specialist Electrical/ 
Engineering Company 


^ * 

l/2 

s> \ 

ts 

(T'J 
1 1 


3) 

> co 


Clydebank 

Harper, Hiltington Controls Limited 
(In R«»vership) is a spedalist 
electrical engineering company 

in me design, manufacture and 
>n of switchgear; 
instrumentation, and control systems. 
The business is now offered for sale as 
a going concern. 

■ High quality products. 

■ Highly skilled and motivated 
workforce. 

■ Turnover, 1993 £2.1 million. 

■ WIP and Forward Orders. 

■ Freehold property in Clydebank 
12,000 sq ft. 

For further details contact the 
Joint Receiver Donald McGrutber, 
Grant Thornton, 112 West George 
Street, Glasgow G2 1QF. 

Teh 041-332 7484. Fax: 041-333 0581. 

Grant Thornton • 

The .UK- member firm of Grim Thorn con buc nun onel 
d bv the Institute of Chartered Acct 
I and Wales to orry on Investment I 


m 

frf 

j?' 

r<3 

r 


o <3 

Ls? 'Vi 





Touche 

Ross 

a 


(In Administration) 

The joint Administrators, K. S. Chalk and R. S. P recce, offer for sale as 
a going concern the above manufacturer of 5 - 1 500 kVA generating 
sets and sell- priming pumps 

■ Annual turnover - 16.0 million. 

■ Fully equipped leasehold factory in Chcrtsey, Surrey. 

■ Qualitv overseas and ILK. customers. 

■ Substantial order book. 

For further information please contact Roger Smaridge at 
Touche Ross & Co.. Columbia Centre, Market St., Bracknell, 
Berkshire RG 1 2 I PA . Tel: 0344 S4445. Fax: 0344 42268 1 . 

ArftaMl b> it* Imm J CfcaMnl Vtwifc r^lxJ — ( 


FOR SALE 

2 fresh food stores In 
West Yorkshire approx 60% 
fruit & vegetables. Turnover 
year ending 31/3/94. 
Over £1 ,250,000 

Write to Box B2879, Financial 
Times, One Southwark Bridge, 
London SEl 9HL 


Humberts leisure 


fca Wmrrt — afriw-MwIlne l M i* . KMfc MhiOQirti lW wB W oTCBopcwa 
- 'Ayr about 15 miles, Glasgow about 35 mites, 
r! TUmbeny about 5 miles 

BRUNSTON CASTLE GOLF COURSE 
AYRSHIRE, SCOTLAND 

• A classic Donald Steel designed golf course 
• Residential building land for up to 36 houses 
■ Timesbare/chaiet site for up to 180 unit* 

" « Hotel site • Fbrestry land 
In all about 315 acres 

FOR SALE 
. Joint sole agents 


Ryden .. . 

: 151 West George Street 
.Glasgow G2 2JJ 
IbL-tMl 204 3838 
Ref: BUI Page 


Humberts Leisure 
25 Grosvenor Street 
London WIX9FB 
Tfcb 071 629 6700 
Ret Tbra Marriott 


III) V IIS • GO I l ♦ LUSTRE 



The Joint AdmlntetratJve Receivers offer for sale on a going concern 
basis the business and assets of Lakeside Lanes Limited 

• 16 lane bow&ng alley wtth automatic scoring system. 

• Bar. restaurant and creche facilities. 

• Established bow&ng league programme. 

• Freehold premises In HWnftington, Cumbria, dose to large 
population and tourist areas. 

• Space and outfine planning consent for nlghtdub fad Dries. 

Fbr farther details please contact Robert Matuslewkz. Joint 
Administrative Receiver, at the address below. 

IBPO 

BOO Binder Hatcsiyn 
Chartered Accountants 
206 Derby Road. Nottingham, NG7 1NO 
Telephone: 0602 415312 
Facsimile: 0602 410193 


a lil 


Smith & Williamson 


‘ AadUa| ■ 


FOR SALE 

The entire Issued share capital of a 

TEXTILE BASED MANUFACTURER 

1 Profitable and cash generative 
i Current annual t u rnover in region of £5 million 
1 Diversified product range includes military products, work 
clothing and many specialised items where world-wide 
c omp e titi on is small and profitable growth opportunities exist In 
niche markets. 

A p pro xim ately 80 employees 

Established, well spread customer base includes governments, 
utilities and ou)or corporations. 

Growing overseas pi 


For further information please write to Jeff Keating at the offices of 
Smith Williamson Securities, No. t Riding House Street; 

London W1A 3AS Fax 071 631 D741 

Smith &Wlfiunnoa Securities 
Authorised imtitutfcn under 
Banking Act 1987 . 

Member of IMRO. Member of the 
Britidt Merchant Banking 
and Securities Homes Amctation 


Smith & WilKamson 
Chartered Accountants 
Red*rred wcaoyon aa tea r ak aad 
autfaorired co cany on iDvotncui 
bunooa by the Imdnxe of Chartered 
AccmnODO n Fnghrtil and Wales 



'PINKERTONS 

. Specialist cah& and nursmg home agents . 

• ' for sale 

Ai M ^B ^f i D d pR » ip otMigafoB/CgreHoiB««iiiMhaTolRlc»f2lOBBd» 
*t93nufsfaffbflii-17c8rehome 
■ A • <tfcr nrn pm tlas 

f ‘Snxss Inooroa Y/E September 1983 E2.782.7I5 
♦/Opttttfeig profit £960422 ' 

♦-“Fil managament learn in place 

♦ Complete) aa a group E4.760.000 or avalefiUi ln parts thereof or lnc*wkfcja»y. 

-. Z Fte tatharWofnwBon contact Alan Dopson on 0243 53BKB 

89TEST PM1ANT. CWCMESTHt. WEST SUSSEX. POl9 ITD TBjtBte 638920 
SPECIALIST MANAGEMOfT -ACCOUNWNCY ffiHVtCE 0243 838900 


BIOTECHNOLOGY COMPANY 

■ MAJORITY SHARK HOUM'tG AVAILABLE 
OR OUTRIGHT SALE 

*.• due to~retirenicnts of Chahman & the MJ>. 

Niche jjroducer, sales exceed £1 million - 70% exported. 
' • Sales growth 30496, 

; -aXMl profitable with satisfactory cash flow. 
Significant fax losses available from earlier ownership. 

HepfyloBai: B2SC2, Fixartcial Ti*ia, One Son ttetark Bridge, 
LaukmSU 9 «L 


MEDICAL AC Ol ISn iON OPPORTUNITY 


U^. Designer and Manufacturer of Operating Suite Products 
Sales S 5 Million - Profitable 
Direct Sales Organization in Place 
Ideal Opportunity for European Medical 
Products Company to enter U.S. Market 

REPLIES HELD IN FULL CONFIDENTIALITY 

Merchants Financial Group, Inc. 

2000 Keith Building 
Cleveland, Ohio, U-S-A. 44115 
Tel: 216-241 4400 Fax: 216-241-4403 


Major Business Opportunity 

Leading Swiss Telephone Chat-Line company for sale for 
personal reasons. Good potential for expansion. Short pay-back 
on investment should be possible. Offers required of SFr 1 
million. Serious parties should write to: driSre: 252-90165-52 

ofa Orefl FOssli Werbe AG, Box 4638, CH-8022 Zurich 


a 

I 


GARRICK 




FOR SALE 

COMPUTER SOFTWARE 
SYSTEMS COMPANY 


DAVID GARRICK LTD 
1 de waklan Court 
85 New Cavendish Street 
London W1M 7RA 
Tel: 071 831 0659 
Fax: 071 436 4311 


We are retained by the parent 

company to assist in locating a 

suitable purchaser. - - - 

Key Characteristics: 

* Annual turnover In excess of £ 1.3M, 
gross margin £1M 

* Highly developed application 
packages for professional and 
financial services markets 

* Substantial proportion of contractual 
revenue 

* One of the leading suppliers at the 
upper end In the professional market 

4 Growing customer base benefiting 
from open systems technology 

For further information, contact 

ROBERT KING 


SPECIALISTS IN ACQUISITIONS AND DIVESTMENTS 



State Holding Company 


MODIFICATION OF 
INVITATION FOR TENDER 

The State Holding Company (hereinafter as Caller of SHC) 
informs the interested parties with the assistance of Daiwa-MKB 
(Hungary) Investment and Securities Co. Ltd. (hereinafter as 
Adviser), that exercising its right included in the 3rd point of 
Chapter VHi of the Tender Conditions, 

the deadline of submission of the bids are modified 

iri case of the one-round public tender announced for the purchase 
of HUF 453,570,000 nominal value state-owned shares of 

T Zsolnay Porcelain Factory Co. Ltd. 

representing 84,285% of the share capital. 

The moifified time period available for submitting of the bids: 

"^August 1, 1994 from 9.00 am to 12.00 noon 

Place ,qi submitting of the bids: 

4Dalwa-MKB (Hungary) Investment and Securities Co. 

East-West Business Centre 
;^1Q08 Budapest 
SWtobaA ft 1-3..11iy38. 

THe bids Will be opened by the opening committee formed by the 
repr^entatives of the State Holding Company and the Adviser in 
ihe pr&sence of a Notary Public at the headquarters of the Adviser 
at 2.QQpmon Augustl , 1 994. 

The other regulations of the Tender Conditions are unchanged. 

INVEST IN HUNGARY • A SAFE EXPANSION 


STATE PROPERTY AGENCY 


CALL FOR TENDERS 

In cooperation with Daiwa-MKB (Hungary) Investment and Securities Co. Ltd. 
(further referred to as: the Consultant), the State Property Agency hereby issues 
a public call for tenders 

. for the sale of the state-owned shares of 

Kossuth Nyomda Rt. (Kossuth Printing Press PLC). 

The Company’s registered capital is HUF 697,000,000, with a share package at a 
value of 50%+ 1 vote being offered for sale. 

The Company's capital reserves: HUF 559,112,000. 

Privatisation costs, the extern of which amounts to HUF 20,000,000, may only be 
settled in cash. 

Conditions of participation in the tender 

depositing HUF 8,000,000 retention money 
signing a statement of confidentiality with respect to information provided 
Deadline for submitting offers: Wednesday, August 17, 1994 between 12.00 - 
14.00 hours in the presence of notary public. 

Offers must be submitted to: AUami Vagyon£Jgyn6ks6g (State Property Agency), 
H-1133 Budapest, Pozsonyi lit 56. floor VIII, room No. 804. 

Offers must be delivered to the above address in 3 copies, specifically marking the 
original, in sealed envelopes without indicating the sender. 

The tender must unambiguously indicate the fact that the offer contained therein 
shall be valid for 90 calendar days after the due date for submitting tenders. 

After opening the tender-envelopes, the SPA may request written or oral 
supplementation. 

The SPA maintains the right to call a tender as having been unsuccessful. 

Submitting tenders shall be subject to purchasing the detailed tender 

documentation containing also the detailed call for bids for HUF 10,000, + VAT, at 

the headquarters of Daiwa-MKB RL (1088 Budapest, R6k6czi tit 1-3, floor lil, room 

No. 38}, against signature of the confidentiality statement 

For further information, please contact 

Stindor Farago (senior advisor, SPA) Tel: (01) 269 8600 

K^roty Sz§kefy (general director, Kossuth Nyomda RL) Tel: (01) 157 0450, and 

Daiwa-MKB Rt, Tel: (01) 266 0361 

INVEST IN HUNGARY • A SAFE EXPANSION 


Neills 

Engineering 
Limited 

The Joint Administrative Receivers 
F W Taylor and T N Birch, offer for 
sale the business and assets of the 
above comprising: 

m Quality design and fabrication ot’ 
process plant equipment 
m Based in St Helens. Lancashire 
m Established customers in chemical, 
petrochemical food and environmental 
industries 

a Standards worked to include BS2654, 
. BSSSOO and ASME VIII 
a Recent turnover £0.6 m to £10m. 

For further details please contact 
F W Taylor. Ernst & Y bung. Silkhouse Court. 
TJthebam Street. Liverpool L? Jif. 

Telephone: 051-236 8214. Facsimile: 0S1-236 0253. 

s!l Ernst & Young 

iuttmtenl fly the /astBow of CJnultml Accountants to EartbtnC 
«nd wales a» any m tnestman Oustorss. 


Humberts Leisure 


Enniskillen 5 miles, Belfast about 90 miles, 

Dublin about 105 miles 

ELY ISLAND 
CO. FERMANAGH 
An exquisite residential, leisure and 
sporting peninsula island estate with 
established holiday cottage business 
Profitable leisure "lifestyle” business 
including 11 holiday lodges 
• A. handsome 9 bedroom country house 
overlooking Lough Erne • 6 estate cottages 
• Parkland, Home Farm and arboretum ■ Mature 
woodlands • Sporting rights over 5,000 acres 
• In all about 277 acres 

FOR SALE FREEHOLD 

Joint sole agents 

Eadie McFarland fir Co Humberts Leisure 


34 East Brid ge St reet 
Enniskillen BT74 7BT 
Tfel: 0365 324831 
Fax: 0365 325115 
Ref: RRAE 


25 Grosvenor Street 
London W1X 9FE 
Tfel: 071 629 6700 
Fax: 071 409 0475 
Ref: DTDM 


HOTELS & LEISURE 


Rathbone Bros 
(Retail) Limited 

(In Receivership) 

The business and assets of the abwe company are offered for 
sale as a going concern by Joint Admiretr&ive Receivers. 

■ Kanufedire and relate ol a wrie range ot QU£«y bread 
products 

■ Freehold bakery and ifctnbdjon centre tofelrg over 43,000 
square feet h Kfehw St, Wigan 

• Supples bread products to owr 20 shops in the West 
Lancashire and Merseyside area 

•Tivnmer exceeds £7 mfcon per amun 

Enquiries to AP Brereton FCA. 

rnca waamoBsSv Tone nrosfl, Toni street, lunn eflef, 

M2 4WSL M (061) 228 6541 fee (061) 236 1268. 

Price fifaterhouse • 

Prtw Watemouse is authorised by toe Institute tri Chartered 
AnsuntMKs in Engand and Wales to cany on investment business. 


COMPUTER HARDWARE MAINTENANCE 
CONTRACTS FOR SALE 
We are instructed to offer for sale [be goodwill of benefits to 
contracts for computer maintenance and related assets, 

including extensive stocks, on behalf of a Company based in 
the North of England. The Company has a turnover in excess 
of £350k and the portfolio of contracts includes local 
authorities and bine chip companies. 

The Company has reached a stage of development where the 
board considers that further growth will be expedited by 
joining with a similar size or larger organisation. It is keen to 
preserve the positions of a trained and loyal workforce. 

A detailed sales pack, subject to a suitable confidentiality 
agreement, can be obtained from: Jeffrey Burton, FCA, 
Charles & Partners, Chartered Accountants, Trafford House, 
Devyhulme Circle, Manchester, M41 OSU. 


AX Advenbcincai boating) mb Koepud MAjcn to out anal Tenm and GuMots. copies or wUefa 
«»»aia)lcby wrtfflewTht AilvniacnM ProtiWiaE Diiaai».T!je HmaCBl Trees, 

Ore Sotfbvak Bridge, Landes SEJ SHL TeL- 071 S73 3323 Fuc 07 1 873 30M 


I 



I 


10 


FINANCIAL TIMES TUESDAY JUNE 7 19W 


FINANCIAL TIMES SURVEY 


■ Carlsberg's global 
reach - from China 
to the UK Page III 


DANISH FOOD INDUSTRY 


I How rennet led 
to biotechnology 

Page IV 


Tuesday June 7 1994 


A healthy appetite 
for world markets 


The food industry accounts for a quarter of exports 
and has been hit by the recent Gatt deal- But there 
could be new opportunities, writes Hilary Barnes 


A n English schoolgirl 
who was asked in the 
1980s what she associ- 
ated with Denmark, replied; 
“Pig, pig, bacon, pig”. This may 
not be an uncommon image, 
but there is much more both to 
modern Denmark and to its 
food Industry. 

Though it rears more than 
20m pigs a year and still pro- 
vides the best-selling imported 
bacon in Britain, Denmark, 
with only 5m people, produces 
enough food for three times 
that number. It also has a large 
share of world markets in 
other areas apart from pigmeat 
where it has specialised, such 
as cheese and fresh and frozen 

fish 

The food industry provides 
between 12 and 18 per cent of 
Denmark’s domestic employ- 
ment, (depending on the defini- 
tion used), and accounts for 
about 25 per cent of the coun- 
try’s merchandise exports. 

Denmark is the world's fifth- 
largest exporter of food prod- 
ucts, according to a report pro- 
duced for the Ministry for 
Industry last year, and a 16 per 
cent increase in output over 
the past 10 years has enabled it 
to maintain its share of world 
markets. 

Manufacturing industry long 
ago overtook agriculture as the 
country's main export indus- 
try. and now provides about 70 
per cent of the country's mer- 
chandise exports, but agricul- 
ture and fisheries stOl account 
for about 5 per cent of total 
employment and roughly the 
same share of total production. 

The rise of the primary food 
industries - pigmeat, dairy 
products and fish - has been 
accompanied, too, by the devel- 
opment of companies in associ- 
ated industries, many of them 
world leaders. These include 


Novo Nordisk, Christian Han- 
sen Group and Grindsted Prod- 
ucts, producers of food ingredi- 
ents such as enzymes, 
emulsifiers, stabilisers and fla- 
vourings; Foss Electric and 
Radiometer in instrumenta- 
tion; and APV Danish Turnkey 
Dairies and Niro Atomiser in 
food processing machinery. 

Carls berg has, of course, 
established itself, too, as a 
leading international brewing 
company. Danisco. the sugar, 
distilling, frozen vegetables 
and packaging group, is less 
well-known internationally but 
has become one of the largest 
European producers of beet 
sugar through acquisitions in 
Sweden and Germany, and is 
one of the country's largest 
listed industrial corporations. 

The food and food technol- 
ogy industries, because of their 
vital importance to the health 


WORLD EXPORTS 


Denmarfc’s share 


Pigmeat 
Frozen fish 
Fresh fish • 
Milk,- cream 
Cheese 
Bakery products 


26% 

13% 

12 % 

12 % 

10% 

10 % 


Total world exports 0.85% 


Sonoa Km Ualhr oncfHen*Plx**. ' 

teas- 


of the Danish economy, have 
been pinpointed by the govern- 
ment as one of the sectors on. 
which Denmark’s future 
growth and prosperity will 
depend. 

For this reason the govern- 
ment is helping to finance a 
substantial programme of 
research, which, it is hoped, 
will enable the country to lift 


the quality of its products 
along the route from the form 
to the table. 

The strong position which 
the country holds in the food 
industry goes back a long way. 
Denmark was one of a few 
countries in Europe which did 
not react to the challenge of 
cheap American com in the 
1870s by raising import barri- 
ers. Instead, its formers had to 
find alternative sources of 
income, and as a result, devel- 
oped a lucrative market export- 
ing butter, eggs and bacon to 
the UK 

The country's food and food 
technology industry has never 
looked back. Since entry Into 
the then European Coxmnunn-- 
ity further support for Den- 
mark’s primary agricultural 
industry has come from the 
common agricultural policy, 
which subsidises exports to 
non-member countries. 

Yet, a threat of sorts does 
now hang over the sector in 
the shape of the recent Gatt 
agreement, which calls for a 
reduction of 34 per cent in the 
volume of exports of subsidised 
products. 

Mr Bjorn Westh, minister for 
agriculture, sees the Gatt 
agreement as a challenge, 
which opens up opportunities 
to win new markets, and he is 
railing for an attacking policy 
an the part of Europe to make 
the best of these opportunities. 

Mr H.O.A. Kjeldsen, presi- 
dent of the Agricultural Coun- 
cil (an umbrella organisation 
for almost all the Danish form- 
ers’ organisations) shares the 
minister’s view, although, as 
he says, his members “face a 
harsh period of adaptation". 

The rest of Europe has a spe- 
cial reason to be interested in 
the Danish food Industry and 
its ability to adapt. A large 



Some of these Danish Crown pigs may be destined for Korean (inner Wiles (see story on page IV) 


share of Denmark's agricul- 
tural exports goes to non-Euro- 
pean Union countries, espe- 
cially cheese, a product in 
which Iran is the largest 
export market by tannag e. The 
Middle East is an important 
market for butter and milk 
powder and Japan has over- 
taken the UK as the most 
important market for Danish 
pigmeat (by value, though not 
by tonnage). 

As Mr Westh points out, poli- 
cies which allow Denmark to 
continue to export to third 
countries should be of interest 
to other European countries. 
Otherwise, the products con- 
cerned will be offloaded on to 
the European market causing 
serious downward pressure on 
prices. 

He wants the European 
Union to consider bringing the 
European corn price down to 
toe world market level. Hus 


would eliminate the subsidy 
element in toe production of 
pigmeat and poultry, which are 
fed on com products. No quan- 
titative restrictions, would as a 
result need to be imposed 
under the terms of Gatt agree- 
ment on exports. 

Mr Kjeldsen also wants 
Europe to introduce B-quotas 
for milk production. The 
B-quota would he priced at the 
world market price and could 
be used to help D enmar k to 
maintain its exports of cheese, 
butter, and powdered milk 
exports outside Europe. 

Prospects for the primary 
food industry clearly depend 
on access to world markets, 
but Denmark has one impor- 
tant advantage. Pigmeat the 
most important agricultural 
export product is not directly 
supported under the common 
agricultural policy and its 
exports are therefore not 


threatened by the Gatt agree- 
ment In the same way as dairy 
products and beef. 

Though pessimists focus on 
toe food surplus in European 
countries in considering the 
future of the agricultural food 
industry, others, such as Mr 
Erik Juul Jorgensen, head of 
the private Institute for Food 
Studies and Agro-industrial 
Development, in Copenhagen, 
focus on the global market. 
They predict a strong increase 
in dem an d for food, and see 
few limits to the. potential for 
D anish production and exports, 
given a satisfactory world trad- 
ing regime. In a 1992 report, Mr 
Juul Jorgensen argued that 
Denmark could double produc- 
tion by its agricultural, food 
processing and agro-technical 
industries between 1990 and 
2001. 

The pig formers have shown 
the way. Between 1989 and 


1993. pig production increased 
from 155m to more than 20m 
animals per year, or by 30 per 
cent Pigmeat prices over the 
past year have been so low, 
however, that no further 
increase in production is 
expected. 

Mr Bent Sloth, chairman of 
the Association of Danish 
Slaughterhouses and himself a 
pig producer, predicts that pig 
output will not rise from toe 
present level for several years. 
However, Mr Westh believes 
production may well reach 25m 
by 2000, and Mr Juul Jorgensen 
sees no reason why it should 
not reach 30m during the first 
decade of the next century. 

A feature of the agricultural 
sector is the domination by the 
co-operative movement. Two 
co-operative dairies, MD Foods 
and Klover Milk, account for 90 
per cait of the milk produced 
on forms. Five slaughterhouse 


groups account for almost all 
the pig production. MD Foods 
and the two largest slaughter- 
house groups, Danish Grown 
and Vestjyske Slagterier (West 
Jutland Abtatoirs) are among 
toe largest companies in their 
industries to Europe. 

The co-operatives, which are 
governed by a democratic sys- 
tem of one man, one vote, pro- 
vide the dairies and slaughter- 
houses with a unique degree of 
vertical integration from 
former through processing to 
export sales. 

One of the disadvantages of 
toe cooperative system accord- 
ing to its critics, is its inability 
to raise equity capital from 
external sources. Hie coopera- 
tives have found a way round 
this limitation, however, 
through the establishment of 
MD Foods International in toe 
dairy sector, and Tulip Interna- 
tional in the meat sector, 

MD Foods, which has 
invested heavily in the UK 
dairy industry, and Tulip, 
which is the processing arm of 
Danish Crown, (producing 
such items as minced meat and 
ham, as opposed to fresh and 
frozen cuts), are partly 
financed by equity from Dan- 
ish institutional investors. 

Critics of the co-operatives 
also say the industry has been 
slow in embarking on produc- 
tion of more highly processed 
foods, such as charcuterie 
products and convenience 
foods, but Mr Kjeldsen rejects 
that charge. “Most of our 
exports are high-quality, pro- 
cessed raw products. We obtain 
attractive prices, for example, 
for our pigment exports to 
Japan, because we make prod- 
ucts with a uniform high qual- 
ity. We would earn less if we 
went into highly processed 
convenience foods and sold 
them under our brand names, 
a business that requires an 
enormous investment.” 

Although the farmers are 
enduring tough times at the 
moment, Mr Kjeldsen is not 
discouraged. “When young 
people ask me if there is a 
future in farming, my answer 
is: Yes. There will always be 
problems, but there are prob- 
lems whatever sector you are 
in. A well-educated former has 
a good future in Denmark." he 
says confidently. 


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I 


FINANCIAL TIMES TUESDAY JUNB 7 1994 


DANISH FOOD INDUSTRY 


Bjorn Westh, the minister of agriculture, talks to Hilary Barnes 

Coping with the challenge of Gatt 


Denmark has a position of 
strength in food production 
which offers opportunities for 
development, says Mr Bjorn 
Westh, the minister of agricul- 
ture who is sometimes tipped 
to become his country's next 
ED Commissioner. 

“We do not think there is 
anything old-fashioned about 
producing food." he declares in 
an interview. “The food indus- 
try gives rise to 25 per cent of 
all employment in Danish 
industry. It brings in about 
DKr55bn (£5.7bn) a year in 
export revenues, and export 
revenues are required to keep 
the welfare state going. If we 
want to develop the welfare 
state we must have jobs in 
industries which earn foreign 
currency, and in the food 
industry we have a position of 
strength that we must utilise." 

This might seem a bold com- 


mitment at a time when Euro- 
pean agriculture is being 
forced by reforms of the com- 
mon agricultural policy and 
the Gatt deal to curb produc- 
tion and exports. Mr Westh 
does not dispute the fact that 
the future of Danish agricul- 
ture and its related export 
industries is dependent on how 
the European Union reacts to 
the Gatt. 

On the other band, he does 
not have much time for calcu- 
lations which show that Dan- 
ish form incomes will be cut by 
DKr2bn or so - 7 or 8 per cent 
of gross factor income - by 
Gatt. “They don't take into 
account the new market oppor- 
tunities, so they are unhelpful, 
static calculations. The world 
does not stand still, and Den- 
mark is not standing stilL 

“On our part, we want the 
European Council in connec- 


tion with this year’s price 
negotiations, to approve a dec- 
laration railing on the Com- 
mission to work out a strategy 
by which the European coun- 
tries can utilise the new mar- 
ket opportunities which the 
Gatt will provide." 

Mr Westh is referring to the 
obligation of Gatt signatories 
to allow at least 3 per cent of 
their food supplies to he 

Holland M has twice the 
animals and three times 
the people in an area a 
third of Denmark’s size” 


imported, rising to 5 per cent 
after five years. "We see Gatt 
as a challenge, and we must go 
on the offensive. We must 
ensure that we are active and 
that it is not the Americans, 


the New Zealanders or the 
Cairns Group countries who 
run away with everything.” be 
says. 

As the Gatt calls for a reduc- 
tion in exports of subsidised 
products, “we want to put the 
Commission to work to see if 
we cannot abolish or reduce 
export subsidies. 

“The EU com price is still 
10-15 per cent above the world 
market price. If we can bring It 
down to the world market 
price, com exports would not 
be subject to export subsidies, 
and neither would products 
based on com, such as pigmeat 
and poultry. A side-effect of 
this would be that we would no 
longer need obligatory set- 
aside policies." 

This view finds support in 
the UK and France, he says, 
but other EU countries will 
resist it. However, he points 


out that if the EU does not 
succeed in adopting policies 
which allow exports to third 
fie. non-ECT countries, Den- 
mark wil] have to sell large 
q uan tities of dairy and pigmeat 
products in Europe, with a 
painful impact on prices. “I 
think this argument will mean 
that some countries will begin 
to listen to what we are say- 

ing ** 

As Mr Westh sees it, Danish 
food exports will not compete 
with exports Cram developing 
countries, at least not directly. 
“We shaH compete in markets 
where there are consumers 
who want high quality prod- 
ucts and have the means to 
pay, especially markets in 
south-east Asia, such as Japan. 
Korea, Singapore, some south 
American markets and the 
Nordic market 

“Danish agriculture will try 





Bjorn Westtu the Co mm i m te m should "cut or aboBsh export subskfias” 


to live up to this strategy 
through an aggressive, broad 
quality policy, from conditions 
on the form through process- 
ing to transport ... Quality fo 
having control over environ- 
mental problems, aver the sur- 
roundings in which animals 
live, and not only the product 
itself." 

As an example, he points out 
that a major effort is being 
made at the moment to elimi- 


nate sahnoneDa from infecting 
pigs oh the farm or at any 
stage of processing. 

Mr Westh is on the whole an 
optimist Last year Danish pig 
production passed 20m for the 
first time. “I don’t see. why we 
shouldn't produce 25m pigs by 
the year 2000, and perhaps 
more milk than we do today as 
well," he says. 

If I am relatively optimistic 
it js also because when yon 


look around the world you see 
the environmental issues com- 
ing into focus. We have a good 
chance of handling these prob- 
lems successfully, not only 
because we started to tackle 
them early on but because we 
have a structure which makes 
the problems easier to tackle. 
You only have to look at a big 
food producer like Holland, 
which has twice as many ani- 
mals and three as many 
people in an area a third the 
size of Denmark.” 

Legislation which restricts 
the number of farms that one 
former may own or lease, and 
regulates the number of ani- 
mals per hectare of land, will 
prevent the establishment of 
gigantic pig for Tns ;. however. 
“We do not want individual 
units to he too big. There are 
veterinary and health dangers 
in very big units. In return we 
have told the formers that they 
can own. and lease more units. 

“This goes together with our 
quality approach We do not 
want a policy which encour- 
ages the use of medicines, and 
we want the formers to be able 
to keep an eye on the health of 
the animals," he says. 


Tony Jackson on Danisco, a big fish in its pond 

The skill not to turn its 
back on the basics 


The trouble with die Danish 
food industry, according to 
one of its most senior execu- 
tives, is that its output is just 
too basic. Take meat and ani- 
mal products, says Mr Elvar 
Vinum, chief financial officer 
of Danisco, the food group. 
“We’re still selling raw mate- 
rials too much. We have to do 
more to develop them." 

Since Danisco makes much 
of its money from such basic 
activities as refining sugar 
beet and freezing peas. It 
might seem open to the same 
criticism. Not at all, says Mr 
Vinum. There is a lot of skill 
in freezing and distributing 
vegetables to the standards 
required by international food 
companies such as Unilever 
and Nestle. As for sugar, the 
company has more than 120 
years of experience. It is a 
business in which efficiency Is 
all: and Danisco, Mr Vinnzn 
says, is one of the two or three 
most efficient sugar refiners in 
Europe. 

Danisco was formed at the 
start of 1989 through the 
merger of three publicly 
quoted Danish companies: 
Danish Sugar (much the big- 
gest of the three), Danish Dis- 
tillers - almost the monopoly 
Danish producer of spirits, 
especially aquavit - and Dan- 
isco itself, a maker of food 
ingredients. The motive, says 
Mr Vinum, was simply one of 
growth. Taken together, the 
three companies would have 
“more momentum”. 

The rationale of the new 
group was that it should be in 
“food-related” industries. This 
Involved a lot of pruning: 
some 43 per cent of the origi- 
nal group by turnover, chiefly 
in engineering, has been got 
rid of. At the same time, the 
group has been expanding in 


packaging, both in corrugated 
board in the UK and Denmark 
and in flexible plastic packag- 
ing around the world. 

This apparently paradoxical 
broadening of the portfolio is 
defended by Mr Vinum. 
“We've been in packaging for 
a very long time,” he says. 
“It’s a business we felt we 
knew something about." The 
packaging Is mostly for food 
products, and the great bulk of 
it is for outside customers. It 
is not, in other words, an 
old-fashioned case of vertical 
integration. “We're not in 
packaging to provide it for our 
own products. It's a business 
on its own.” 

Although unusually large 
for a Danish company - com- 
fortably among the top 10 
quoted companies in market 
value - Danisco counts only as 
a medium-sized food group in 
global terms. In 1992-93 its 
sales were DKrI3tm (£1.3bn). 
and its market value is about 
DKrl0.71bn (£1.1 bn). However, 
It is plainly ambitious. Since 
the merger, and not counting 
the financial year 1993-94 just 
ended, it has spent DKr5.5bn 
on acquisitions and the same 
amount again in capital expen- 
diture. 

The largest part of the 
investment, says Mr Vinum, 
has been in sugar. Besides 
being the Danish monopoly 
producer of beet sugar, Dan- 
isco paid DKr2-2bn in 1992 for 
its opposite number in Swe- 
den, making it the fourth big- 
gest producer in Europe. Also 
two years ago, it bought eight 
small sugar refineries in Ger- 
many and is just finishing the 
task of combining them into 
one European-scale plant, at a 
total cost of a farther DKTibn. 

Acquisitions apart, a lot of 
the expenditure has gone on 


the food ingredients subsid- 
iary Grindsted, which grew 
out of the original Danisco. 
This Is a truly global business, 
with new capacity recently 
installed in Denmark, the US, 
Mexico, Chile and Malaysia. 
Grindsted, says Mr Vinum. is 


EMPLOYMENT 


Denmark: 1982 figures 

Total 1,918,000 

Agriculture, fisheries . 1 19,000 

Manufacturing _._389.000 

food processing 61,000 

(Abbaioks, meat processing 

.27,000) 

{Milk processing — «... 8,00(9 
Sendees to Industry, food 

processing ..... 51,000 

investment* 

Total food-related ...248,000 
*tn bu^dtes amt macnftwy for 
agricultural sector 

Sotnopf Osrtaft r mnug - iMort 


one area where “we can see a 
lot of growth around the 
world". 

The trick, he says, is to work 
very closely with the custom- 
ers, the food manufacturers. 
“For instance, we are one of 
the world’s biggest producers 
of pectin” (used in making 
marmalade). “That’s a very 
specialised field, where the 
customer wants to he abso- 
lutely sure the pectin produces 
his marmalade every time." 

Another Danisco subsidiary, 
Tafifel, Is itself a marmalade 
producer. "It took Grindsted 
quite a long time to break into 
that company with their pec- 
tin after the merger. The cus- 
tomers know exactly wbat 
they want, and to change may 
be very difficult" 

Yet another area still offer- 
ing scope for expansion is 
packaging: both in northern 


Profile: WOLFKING 


Europe - taken to include the 
UK - and in the US. Danisco, 
says Mr Vinum, is particularly 
interested in the US because 
the sale of its engineering 
businesses reduced its activi- 
ties there, so that almost its 
only activity now is food 
ingredients. “We’re open to 
acquisitions,” he says. 

The one part of the business 
which looks decidedly nngla- 
morous at present is distilling. 
Eighteen months ago, m an 
event which has distinct ech- 
oes in the UK at present the 
Danish government cut the 
duty on beer by some 40 per 
cent to protect local brewers 
from German imports. Duty on 
wine was cut as well, but not 
on spirits. As a result Danisco 
complains bitterly, alcohol 
drank through the medium of 
Its products is taxed at six 
times the rate of that on beer 
or wine. 

Given that Denmark has the 
highest duty on spirits in the 
European Union, this was pre- 
dictably damaging. Last year, 
Danish consumption of spirits 
fell ll per cent while the mar- 
kets for beer and wine went up 
2 per cent and 9 per cent 
respectively. The result as 
Danisco paints oat is to dis- 
tort competition. Whether the 
government Is prepared to 
forgo yet more revenue to set 
that right is not yet clear. 

Either way, the company’s 
attention is devoted much 
more to the international 
arena these days. At the start 
of this year, it undertook an . 
international offering of 
DKrl.lSbn worth of convert- 
ible bonds, with around 70 per 
cent taken up by foreign inves- 
tors. The goal, Mr Vinum says, 
is to get foreign ownership of 
the company's equity up to 
around 20-25 per cent. At pres- 
ent it is half that 

The company, in other 
words, is showing signs of out- 
growing its native financial 
system. As it expands on the 
world stage, It seems not 
impossible that it will one day 
atteact the unwelcome atten- 
tions of one of the real giants 
of the food industry. So for, 
however, it remains a big fish 
in a respectably-sized Scandi- 
navian pond. 


ADVICE TO FARMERS 


Market leader in meat machinery 


Whenever you eat fast food, 
the chances are high that the 
ground meat in the burger, the 
chicken nuggets in the salad or 
the salami slices on the pizza 
were churned out by machin- 
ery from a small Danish com- 
pany, Wolfking. 

With few exceptions, the 
Danish companies which man- 
ufacture machinery for the 
food processing industry are 
small, but they often have a 
substantial share of the world 
market In their special area. 

Wolfking is typical. At its 
headquarters In the town of 
Slagelse, on Sjlfond, it employs 
about 200 people and has a 
turnover of about DKrlGOm 
(£L6^m), but it is nevertheless 
a market leader in its field. 
About 85 per cent of its produc- 
tion Is exported. Its biggest 
market, where it employs a 
sales and service staff of 25, is 
the US. foDowed by the UK. 
Germany and France. 

The global range of its 
exports, which go to China, 
Japan, Korea, and South Amer- 
ica as well as the US and 
Europe, has helped Wolfking 


maintain its growth despite 
downturns in individual 
national or regional markets. 

Started as a family business 
in 1949, Wolfking has been a 
member of the Danish BJH 
Group since 1979. BJH is an 
unlisted private company with 
a turnover of about DKrlbn. 
mainly from production of raw 
materials for the European pet- 
food industry. 

Since 1949, Wolfking’s 
employment has more than 
doubled to more than 200 in 
Slagelse itself. In addition, it 
has sales and service compa- 
nies in the US, the UK and 
Germany. It works through 
agents in another 30 countries 
or so. Two years ago it bought 
a Dutch company. Belam. 
which concentrates on ham 
production systems, with 50 
employees. Altogether, the 
Wolfking companies have a 
turnover of about DKr200m. 

Wolfking produces all the 
machinery which is required 
by butchers, supermarkets and 
mass-producers of minced-meat 
products or bams from the 
point at which raw materials 


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are delivered to the final han- 
dling and portioning of the fin- 
ished product (but not packag- 
ing machinery) - ranging 
through simple machines to 
semi- and fully-automated 
systems, including “grinders, 
mixers, emulsifiers, injectors, 
tende risers, massage rs. pumps 
and transport equipment”, 
according to its catalogue. 

The acquisition of Belam is 
an indication of things to 
come. Other companies which 
have high-quality products and 
product programmes are being 
sought to complement Wolfk- 
ing’s existing business. 

Most of Wolfking’s machin- 
ery is for the meat industry, 
but not all. The company also 
manufactures food pelleting 
systems for the fish-farming 
industry, machines for makin g 
processed cheese, and plant to 
produce fish-fodder for mink 
(which is no accident: Den- 
mark is the world's largest pro- 
ducer of mink skins). Some of 
its equipment also goes to the 
pharmaceutical and chemical 
industries, bakeries, and pro- 
ducers of chocolate and sweets. 

Where Wolfking has the edge 
over its international competi- 
tors, says Mr Jacob Dilling- 
Hansen, marketing manager, is 
In its supply of complete, fully- 
automated processing lines. 
“No one else makes such com- 
plete machinery' systems as we 
do." 

As a supplier of automated 
production systems, says Mr 
Dilling-Hansen. “we are 
cleaning up the market. Our 
share of the world market for 
systems of this kind is about 75 
per cent." 

Wolfking gained its first ref- 


erence for this kind of system 
by delivering the equipment 
for a big plant operated by 
Tulip International the Danish 
company, for minced-meat 
.products at Vejle, Jutland. The 
plant was installed at the end 
of the 1980s. Since then, it has 
delivered complete systems to 
Germany. Spain. Norway and 
the UK. where one of its pro- 
duction lines turns out 75 
tonnes an hour, 2A hours a day, 
six days a week for Spillers, 
the petfood group, near Glas- 
gow. 

The development of these 
large-scale systems has taken 
Wolfking into the era or com- 
puter-aided design and manu- 
facturing and computer-inte- 
grated manufacturing systems. 
All project development, engi- 
neering and design is done on 
three-dimensional CAD net- 
work. Plant control software is 
developed in-house. 

When machinery or complete 
systems are delivered, t be 
same engineers who worked on 
production are sent to the cus- 
tomer to undertake installation 
and start-up. says Mr DLUing- 
Hansen. 

One of the company's main 
pre-occupations is to ensure 
that its machinery meets the 
requirements of the European 
Union's machinery directive, 
which comes into force in 1995. 
The directive concerns hygiene ■ 
and safety. “We expect that all 
our machinery will receive the 
'CE' stamp by then." says Mr ' 
Dilling-Hansen. “and we think ! 
that many of our competitors 
will have trouble meeting the I 
deadline." I 

Hilary Barnes I 


A model for eastern Europe 


With 20m pigs in a country 
with only 5m people, it is clear 
that the focus of Danish agric- 
ulture must be on finding 
markets elsewhere. Farmers 
are increasingly geared 
towards producing for the 
export trade. 

But it is not just pork and 
milk that are exported from 
Denmark: its farming advisory 
service has gained such a 
prominent reputation overseas 
that advisers are now 
exporting the “Danish model". 

The Danish Agricultural 
Advisory Service is owned by 
producers and run in a similar 
way to the co-operatives which 
dominate farm output in 
Denmark. 

Local advisers must answer 
to a board of fanners which 
also dictates priorities for 
research. This structure helps 
information to be disseminated 
as quickly as possible to a 
range of formers. 

The advisory service runs 95 
local centres at a cost of 
DKrl-lbn (£U2m) a year: the 
government provides some of 
the funds but most is put up by 


farmers themselves. The organ- 
isation runs a national head- 
quarters at Skejby near Aar- 
hus in Jutland, providing a 
resource centre for local 
advisers with a budget of 
DKr238m. It also helps to chan- 
nel requests to research bodies. 

The system has been so 
successful in Denmark that its 
advisers are helping sat up 
similar operations in eastern 
Europe. D anish agricultural 
advisers are currently working 
in Poland, and the three Baltic 
countries: Lithuania, Latvia 
and Es tonia 

□ □ □ 

One of the advisers points to 
the difficulties of setting up a 
system which, in essence, is 
run by formers on the ground 
in countries that have been 
used to receiving orders from 
the top. “We try to stress that 
we are supporting forming in 
the same way that fertilisers 
are: we are just one input,” 
says Mr Niels Gert Nielsen, an 
international adviser. 

The structure of the Danish 
farming industry, which 


comprises some 70,000 mainly 
family farmers, makes it 
important that advice is 
offered at a local level and that 
the process involves as many 
producers as passible. 

With the current emphasis 


on reform of the common 
agricultural policy in the 
European Union, and all that 
involves in price cuts, formers 
need aft the help they can get 

Deborah Hargreaves 


INDEX OF FT SURVEYS 

January 1992 - December 1993 


This index has been compiled for researchers 
and libraries and those who require a sound 
briefing on national and international subjects. 

A useful cross index of all FT surveys published 
in the above period, listed in alphabetical 
order and subject 

To receive your copy, send a cheque tar £3.00 
made payable to financial Times to: 

Martothig Department, Financ ia l Times 
Number One Southwark Bridge. 

London SE1 9HL 
Teh 071 873 3213 




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IMPRESSIVE 

Denmark is one of 
Europe’s mosr attractive 
sites for investment. The 
World Competitiveness 
Report, for example, 
ranks chc counrry first in 
business confidence. 

Bur a favorable business 


climate and strategic 
location aren’t all chat 
Denmark offers. Here 
you'll enfoy the good 
life...safe streets, clean 
air, uncrowded beaches, 
plus everything in the 
way of leisure activities 
from golf to bailee. 


For more information, 
call the Royal Danish. . 
Embassy or the nearest 
Royal Danish Consulate. 
General. - 



Ministry op Industry 
and Coordination 


Wsuliirpmu Royal DaraOi Embassy Td. Fa* 202-328- 1470 ■ New Yoric Royal Dari* Consulate Comal TeL 21 2-223-454S Pax21’ r5^IW 

***** ““ CornuUic CcT^rJ Td. JI5-7S7 -3780. Fa JI2-787-S744 . Lo. Angrfa: Ray* fentt ComofaaGcocxsl Ti 213-387-4277' £» 2I3 3K7^4SG 

London. Royal ftuu* Embjwy 1*1 - 1 y.Wl’lirt. F» - Tokyo: Royal Daobfa Embassy Td. 3-3496-3001. ft* 3-3496-3440 


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TIMES TUESDAY JUNE 7 1994 


DANISH FOOD INDUSTRY III 


A nyone who believes 
Danish business is 
parochial should look 
carefully at Carisberg. Around 
the world, brewing is fbr the 
most part a parochial business: 
perhaps unsurprisingly, since a 
product consisting almost 
wholly of water is expensive to 
ship. 

Carisberg, however, sells less 
than 20 per cent of its beer in 
its home market. With the 
exception of Heineken of 
Holland - which Carls berg 
sees as its main rival - no 
other big brewer has the same 
international reach. 

In theory, at least, this Is a 
very enviable position to be in. 
Rather like the tobacco indus- 
try, brewing in the western 
world has seen its prospects 
transformed in recent years by 
the opening up of vast new 
markets in China and eastern 
Europe. Unlike the tobacco 
companies, most of the world's 
big brewers are scarcely 
equipped to take advantage of 
the fact. 

Carlsberg, by contrast, has 
been outward looking since its 
be ginnin gs, if only because the 
smallness of its home market 
forced it to be. Founded in 
1847, it first shipped beer to 
England in 1860. By the turn of 
the century, as Carlsberg 
executives will tell you today, 
it was putting up advertising 
posters in China. 

The attraction of China is no 
le ss powerful today. “By the 
turn of the century,” says Mr 
Michael Iuul, Carlsberg 1 s head 
of international operations. 
“China will probably be the 
biggest [beer] market In the 
world: bigger than the US.” At 
present, he puts the Chinese 
market at 70-80m barrels a 
year. His forecast is for 130m 
barrels or more. 

As with tobacco, the over- 
seas share of that market is 
still minute, if only because 
foreign beer is so much more 
expensive than the local 
brands. But Carlsberg has 
breweries in both Hong Kong 
and mainland China, and its 
subsidiary Danbrew - a spe- 


■M'S?®**** 












The Carisberg brewery in Copenhagen, with its dbtinctivs elephant panels at the entrance, and (right) a view of Sw inside of Bie plant 


Tony Jackson on the global reach of a brewer that (probably) exports more than 80 per cent of its output 


Carlsberg sees China as top market 


cialist In building breweries in 
the developing world - has 
built 10 breweries for Chinese 
customers to date. 

Even so, Carlsberg is not 
currently the leading foreign 
brand In China. That position, 
it concedes, probably belongs 
to San Miguel of the Philip- 
pines - though, Mr Iuul says, 
“there is very little informa- 
tion available.” 

Besides China. Carlsberg has 
big breweries In Vietnam and 
Thailand, and has spent the 
past five years trying to 
develop its bumness in Russia. 
Its chief advantage Hp« in its 
strength as an international 


brand: and in this respect, Mr 
Iuul says, its competition is 
“Heineken again and again". 
The big US brewers, owners of 
such domestically dominant 
brands as Budweiser and 
Miller, seem to have made lit- 
tle impact so far. However, 
given the record of US global 
brands Marlboro and Coca- 
Cola. it would be unwise to 
assume this state of affair s will 
last for ever. As Mr Iuul 
remarks of the US brewers, 
“they certainly have the finan- 
cial muscle”. 

To an extent, all this 
depends on how far brands 
manage to establish them- 





Mcftad fuut There wfll be a 
shako-out in Europe” 


selves as a global force in 
brewing, as they have in 
spirits or soft drinks. “In some 
mature markets,” Mr Iuul says, 
“you are getting cheap own-la- 
bel products moving in. But in 
growing markets, you have a 
lot of people with social aspira- 
tions. And when it comes to 
beer, most of the (Interna- 
tional] brands reflect higher 
quality as well." 

But however global the 
future may prove, Carlsberg’s 
immediate outlook is domi- 
nated by Europe, where it still 
sells around 85 per cent of its 
volume. This might suggest a 
kind of race between a big 


declining European business 
and a srriaU but fast-growing 
overseas one. Mr Iuul does not 
accept this. “The market is not 
losing ground in some of the 
traditional wine-growing Medi- 
terranean countries," he says. 
“Germany is a battlefield, and 
the UK and France have cer- 
tainly had difficult years dur- 
ing the recession. Over the 
next few years, I see Europe as 
stagnant, but not declining." 

The UK market however, is 
of central importance to Carte- 
berg's fortunes in the near 
term. In 1892, it put its UK 
operations into a 50-50 joint 
venture with Allied-Lyons, the 


UK brewer. The venture, 
known as Carlsberg Tetley, is 
one of the biggest brewers in 
the UK and, according to out- 
side estimates, Carlsberg’s half 
share contributes close to half 
the group’s worldwide profits. 

This makes it all the more 
important that the two part- 
ners should see eye to eye. 
Allied recently went out of its 
way to reaffirm its com- 
mitment to the venture. But in 
the longer term, its ambitions 
are in the global business of 
wines and spirits, not the 
domestic business of UK beer. 
Carlsberg, Allied hints. Is in 
the long run the more natural 


owner of the business. 

Mr Iuul shrugs this oft 
don’t know", he says. "You can 
have a married couple where 
one says T want a divorce’ and 
the other still sees the mar- 
riage as happy. We are quite 
happy with the partnership. H 
had its problems at the outset, 
but any merger has. And 
Allied say they are committed 

and confident” 

That apart, the European 
market is for from stable. 
“There will be a shake-out in 
Europe," Mr Iuul says. “Than 
is strong price competition in 
many markets, which will lead 
to a shake-out in production 
costs. Competition has also 
been promoted by concentra- 
tion in the retail sector. A 
‘cheaple 1 sector has established 
itself and gained some volume, 
and it won’t go away." 

Similarly, he argues, the UK 
market is in transition. "There 
is no doubt that brewing in tha 
UK has to be rationalised. The 
cost per barrel being produced 
is in many cases higher than 
on the Continent With further 
harmonisation of beer duty, 
the costs have to come closer 
together.” 

The obvious question is how 
for Carisberg wants to play a 
part in that process. Suppose 
that, as some believe, the UK 
market - probably the most 
important to Carlsberg in the 
world - is doomed ultimately 
to end up a brewing duopoly 
along American or Australian 
lines. Does Carlsberg want to 
be a player? 

Mr Iuul does not answer the 
question directly. The duopoly 
hypothesis, be says, is a long 
way off “In general terms, we 
like to spread our risk. But the 
UK market is one we feel com- 
fortable with. We’ve been there 
a long time. When you go Into 
a country like Vietnam, your 
knowledge of local conditions 
is bound to be more superfi- 
cial" 

To venture a paraphrase: 
Carisberg is looking to a brave 
new world, but it cannot afford 
to turn its back on the old 
world either. 


IF YOU ARE UNFAMILIAR 


WITH OUR NAME, YOU 



PUT ALL THIS TOGETHER 


AND DANISCO ADDS UP 


WILL CERTAINLY RECOGNISE THE 


THE LARGEST' DANISH PRODUCER 


PRODUCTS WE MAKE AND SELL. 


SUPPLIER OF FOODS, BEVERAGES 


DANISCO IS ONE OF EUROPE'S TOP FOUR 


AND FOOD INGREDIENTS. 


PRODUCERS OF SUGAR WITH 


WE ARE ALSO STRONG 



AN AVERAGE ANNUAL 


PRODUCTION OF 


ABOUT I MILLION 


TONNES IN 


DENMARK, 


GERMANY 


AND SWEDEN . 


WE SUPPLY THE 





IN FLEXIBLE AND 


M3 Foods' cfistrfljutton lorry 


C O RRUGATED 


Profile: MD FOODS 


•Si ^.PACKAGING 


OUR ANNUAL NET 


The target is Europe 


S ALE$ X RE APPROXI- 


MATELY USD 2 BILLION. 




BEHIND THE PRODUCTS 


O F DANISCO ARE 


FOOD INDUSTRY 


11,000 EMPLOYEES 


ALL OVER THE 


OF WHOM ABOUT 


WORLD WITH FOOD 


6,500 WORK 


INGREDIENTS 




FROM OUR FACTORIES 




in denmar: 


IN NINE COUNTRIES. 


WITH A CLEARLY 


DEFINED BUSINESS 


WE HAVE A 70 % SHARE 


E FOCUS AND A STRONG 


OF THE DANISH SPIRITS 


CAPITAL BASE, 


MARKET AND WE ARE AMONG 


SVi DANISCO IS POSED 

r-.N- 


THE LARGEST PRODUCERS OF 


FROZEN VEGETABLES IN EUROPE. 


FOR THE FUTURE. 


m 


WE ALSO SUPPLY CONDIMENTS SUCH 


AS FRIED ONIONS, MUSTARD, TOMATO 


KETCHUP AND JAM. 


a 


DANISCO 


Danfcoo Aft 


For more Infer mw kxi. pkan correct our Communic at ions Department. t*L +45 31 95 1700- fax +45 31 54 3650 


P.O.Box 17 
DK-iOOl Co penha gen 
Denmark 


MD Foods, the large D anish 
dairy co-operative, is deliver- 
ing milk to British doorsteps as 
part of a move to stretch its. 
reach abroad. Through its cor- 
porate arm, MD Foods Interna- 
tional, the co-op has bought 
into the UK market in advance 
of the coming liberalisation erf 
milk production. 

Mr Finn Christiansen, execu- 
tive director of MD Foods, 
explains its internati onal ambi- 
tions: “We’d invested very 
heavily in the rationalisation 
of the Danish dairy industry at 
the end of the 1980s and had 
got to the point where growth 
was stagnating.” 

Recognising the need to 
expand abroad, the co-op 
thought it could not ask its 
10,600 farmers to put up the 
cash. "Emotionally, it’s very 
difficult to get farmers to 
understand that we would be 
going to other countries and 
processing other producers’ 
milk." 

Four years ago, the coop set 
up MD Foods International in 
which it owns a 62 per cent 
share, with the rest of the capi- 
tal supplied by institutional 
investors. The Danish Dairy 
Federation, which represents 
dairy companies, contributed 
some overseas assets and the 
Danish Dairy Suppliers, a coop 
which provides equipment to 
the industry, put up DKrXOQm 
C£l0^m). 

Mr Christiansen stresses that 
MD Foods has targeted Europe 
as an area of primary interest 
since the company believes it 
will face restrictions on 
exports of dairy products to 
third countries as a result of 
the Gatt settlement In 1990, 
the company began its acquisi- 
tion route into the UK and it is 
also looking at moving into 

Germany. 

The export trade is vital to 
Danish dairy farmers, who pro- 
duce three times their domes- 
tic requirements. The UK, 
restricted by EU milk quotas to 
output covering only 89 per 
cent of its milk needs, is seen 
as an extremely Important 
prize by overseas suppliers. 


MD has spent £l5Qm in the 
UK in the past four years, gain- 
ing a 10 per cent share of the 
UK xnilk market “The liberal- 
isation of the market will pres- 
ent good opportunities for us 
to weak closely with fanners. 
That comes naturally to us as 
that’s what we do in Den- 
mark,” Mr Christiansen 
explains. The opening up of the 
£3bn UK milk market wQl 
leave dairies to buy their sup- 
plies directly from formers if 
they wish. 

MD Foods controls 81 per 



Run Christiansen: sen 
opportunities in UK mfle market 


cent of the milk output in Den- 
mark - TO. per cent directly and 
the rest in cooperation with 
Klover, another dairy group. 

Bilik production in Denmark 
has traditionally been quite 
fragmented with the average 
producer owning just 40 cows, 
but growing cost pressures are 
forcing dairy fanners to 
expand. Last year, the number 
of milk producers fell from 
17,200 to 18,000 with the 
remaining farmers inrr»a g ^ c 
in size. This is a trend that is 
likely to continue. 

Mr Christiansen believes tha 
whole of the EU dairy market 
is becoming more competitive 
as a result of the Gatt settle- 
ment in the run-up to the 
implementation of the Gatt 

deal next July, dairies are posi- 
tioning themselves on the 
European market and buying 
market share at almost any 
price. 


In April, MD secured an 
additional DKrSOm to its 
annual investment budget of 
DKr500m specifically to invest 
in facilities for making prod- 
ucts aimed at the EU marke t . 
The extra funds will probably 
be spent on producing mozza- 
rella and other cheeses for the 
German market 

The big impact of the Gatt 
deal could come on the cheese 
market, Mr Christiansen 
believes. Cuts must be made in 
subsidised exports of cheese to 
countries outside the EU - this 
will involve reducing subsi- 
dised exports to 305.000 tonnes 
by the year 2000. 

At the same time, the EU 
mu st gi ve access to its internal 
market to third countries. Mr 
Christiansen reckons the com- 
bination of these two measures 
will mean the EU market must 
absorb an additional 280,000 
tonnes of cheese by 2000. 
“Prices are already being 
squeezed as people are trying 
to position themselves in the 
market in anticipation of the 
export cuts,” he says. 

BCD Foods Is also looking to 
increase its position in the 
European market for higher- 
value products as a way of sec- 
uring market share under the 
rigours of Gatt. Mr Christian- 
sen is keen to build an the 

success of its Lurpak butter 
brand in the UK and, since the 
butter market is declining, sub- 
stitute cheese and dairy prod- 
ucts. 

A new cheese spread, which 
was launched in the UK last 
year, has not taken off because 
Mr Christiansen acknowledges 
that it was placed wrongly in 
toe market and Is too expen- 
sive, “We need to do more 
research Into the type of prod- 
ucts that will fit well into the 
UK," he says. 

. Its new Gaio yoghurt will be 
introduced in the UK later this 
year in the hope that it will 
enjoy the levels of demand 
found in Denmark. Since last 
October, Gaio has captured a 
15 per cent share of the Danish 


How ret 
biotet 




“■SntOM Hi! 


Have 


your FT f 
delivered in 

De nmart 


l:?*. 


Continued on next page 


1 





FINANCIAL TIMES TUESDAY JUNE 7 1994 


13 


DANISH FOOD INDUSTRY IV 


anish Crown, Den- 
I mark’s largest pork 
company, has already 
B *arted to feel the ef f or ts of the 
latest General Agreement on 
Tariffs and Trade deal. This 
year, the company has 
exported significant quantities 
of meat to Korea For the first 
time in its history. "It sur- 
prised us - we didn't expect it 
to happen so quickly,” says Mr 
Kjeld Johannesen, company 
president. "Korea was a closed 
market for us.” 

European exports of pork - 
mainl y frozen belly and collar 
7 readied around 6.000 tonnes 
in the first quarter - with Den- 
mark providing the lion's 
share. Mr Johannesen believes 
sales to Korea could incre ase 
to as much as 20,000 tonnes by 
the end of the year. 

The opening up of new mar- 
kets overseas is of vital inter- 
est to this huge pig co-opera- 
tive since the export trade is 
its life's blood. In the 1992-1993 
financial year to the end of 
October, 85 per cent of D anis h 
Crown's DKr9.2bn turnover 
came from its export business 
and a third of sales were made 
outside the European Union. 
Its overseas sales make up 12 
per cent of all Denmark's agri- 
cultural exports. 


Deborah Hargreaves on how Gatt has affected Danish Crown, the country’s largest pork company 

Export trade is life’s blood of pig co-op 


In general, the export mar- 
ket is a question of survival for 
Denmark because we produce 
many times our own needs,” 
says Mr Johannesen. 

One of the strength's of Dan- 
ish Crown's marketing efforts 
overseas is its strong focus on 
quality products. "The consum- 
er's focus on food safety is very 
important and that's why we 
like to control production from 
breeding to the end-user." he 
stresses. 

Danish Crown is able to 
exert an influence on pig pro- 
duction through its co-opera- 
tive set-up. The company has 
15,000 fanners as members, all 
of whom receive a share In 
profits at the end of the year. 
Farmers also shape company 
policy by electing representa- 
tives to an advisory committee 
which comprises 225 producers 
and 22 staff. That committee 
elects 12 members to the Dan- 
ish Crown board of directors. 

The cooperative set-up com- 
mands considerable loyalty 


from farmers who see it carv- 
ing a market for their produce 
in a way that would be impos- 
sible for individual producers. 
While some farmers are 
tempted to sell to private oper- 
ators as these often offer a 
higher price, they must leave 
the co-operative to do so. 

“If someone Is selling pri- 
vately while still in the coop- 
erative. he is spoiling the com- 
pany for a quick profit and I 
will make him stop or he must 
leave.” says Mr Niels Rovsing. 
a pig farmer who is a represen- 
tative on the Danish Crown 
board. 

Farmers are currently feel- 
ing the pinch from low pig 
prices in Denmark, where as in 
the UK, pork profits are 
depressed by overcapacity. Pig 
prices fell from DKrl3.40 per 
kg two years ago to DKrS-60 
per kg in January to March 
this year, p ushing some pro- 
ducers out of business. "It has 
been very tough.” said Mr 
Rovsing. who estimates that 


about one pig farmer in 20 
went out of business. 

Prices are creeping back 
a gain now with the onset of 
the barbecue season and the 
market has reached DKr9.80 a 
kg. But Mr Rovsing stresses 
that, even though prices are 


around 5 per cent more ani- 
mals than it consumes, high- 
lights the importance of Dan- 
ish Crown's export sales 
outside the ETU. The company 
delivers 11 per cent of its 
export sales to the Japanese 
market, but the high value of 


Danish merchandise exports 


1992 figures in DKf bn 

Agriculture* 40.9 

of which to non-EU countries 16.7 

Meet 23.3 

of which, pigmeat — — 16.7 

Dairy products . — 7.4 

of which, cheese — 4.5 

CAP restitution payments — -.5.4 

Total - 246.0 

'Ejdudng CAP rasttutton payments Source: Agricultural Cound. Copenhagen 


low, at least formers have a 
steady outlet for their pigs 
which the co-operative must 
always take even if ft sees little 
demand. 

The decline in pig prices 
across Europe, which produces 


those sales means Japan repre- 
sents 21 per cent of the value 
of its exports. 

Those lucrative markets 
could be threatened by expan- 
sion of the US pig herd, how- 
ever, and increasing competi- 


tion resulting from the Gatt 
deaL "It is very important that 
we are aware of very tight 
competition from the US,” says 
Mr Johannesen. 

Danish Crown’s biggest mar- 
kets still remain within the EU 
with Germany overtaking the 
UK for the first time last year 
as the most important destina- 
tion. Germany took 16 per cent 
of the company's exports last 
year with 13 per cent going to 
Britain. 

Denmark’s efforts to market 
its agricultural products over- 
seas have been very successful, 
aided by the homogenous 
domestic set-up which sees 
large co-operatives controlling 
most of the output 

Danish Crown is part of a 
larger pork co-operative which 
sets prices to formers and pro- 
duces a joint marketing cam- 
paign. The Dansk Slagterie, to 
which Danish Crown belongs, 
is made up of five smaller co- 
operatives which between 
them slaughter 96 per cent of 


the nation’s pigs. 

Danish Crown uses its high 
standards of production and 
the quality of its meat to differ- 
entiate from rrm-nf -mUl 

producers in other, countries. 
This gives it a particularly 
im p o r t an t edge in the Japanese 
and Asian market 

Hie company has over 100 
veterinary inspectors who. reg- 
ularly check on farmers’ pig 
herds. It insists that regular 
disease checks are made on 
pigs and that all feed is tested 
for gaTrennrfig before the ani- 
mals eat it “The co-operative 
m a if pc it easy to influence in a 
short rim* what is being pro- 
duced by the forma," says Mr 
Johannesen. 

Along with the demand from 
consumers for “clean" prod- 
ucts and calls for free-range 
pigs, particularly from the UK 
market, Mr Johannesen sees a 
move towards more old-fash- 
ioned products with a tradi- 
tional taste. Danish Crown has 
worked with some supermar- 


kets to produce the Mester 
Porker range of pigs which 
have slightly more fat than 
today’s lean animals; they are 

larger and are bnw g fur longer 
to give them more flavour. 

At the opposite end of the 
fffll c , naniah Crown intro- 
duced its Green Batcher range 
of meats and salad products 
which contain less than 3 per 
cent fat This range currently 
rep resents 2 per cent of sales in 
Denmark and is sold overseas 
on a franchise basis. The com- 
pany has recently run a large 
advertising campaign for the 
products in the hope that it 
will capture 5 per cent of the 
market It is now working on a 
fat-reduced salami, since 
salami products are widely 
eaten in Denmark. 

Formed four years ago when 
three co-operatives banded 
together, Danish Crown has 
managed to cut its costs by 10 
to 15 per cent in the past two 
years. The company sees a 
tough period ahead with 
iwMiwwhig competition in mar- 
kets outside Europe from the 
US. “a is important for us to 
stay in front on standards ? n d 
keep in touch with our custom- 
ers* demands,” says Mr Johan 
nesen. “That’s how we will 
compete." . . 


Profile: CHRISTIAN HANSEN 

How rennet led to 
biotechnology 


Given De nmar k's long history 
in the world food industry, one 
might expect its food compa- 
nies to have reached a mature 
old age. A striking exception to 
this ig the Christian Hansen 
Group, which supplies food 
ingredients to multinational 
giants such as Nestle. Kraft. 
General Foods and BSN. 

Christian Hansen was 
founded as long ago as 1874. 
specialising in the manufac- 
ture of rennet, the cheese 
ingredient used to clot milk 
and give the cheese its flavour. 
It is still the world's biggest 
rennet supplier, with about 
20-25 per cent of the world mar- 
ket The world cheese market 
Is scarcely growing; however, 
that did not stop the company 
increasing profits last year by 
30 per cent to DKrl81m 
(£18. 65m) before tax, and by 36 
per cent the year before. 

With sales of- - around 
DKrl.5bn (£150m), Christian 
Hansen is scarcely a giant. Nei- 
ther is it a financial minnow; 
being heavily involved in the 
glamorous business of biotech- 


nology, it is highly rated by 
the stock market and its mar- 
ket value stands at around 
DKr2.5bn (£250m). 

The involvement in biotech- 
nology is again something of a 
Danish speciality. But as Mr 
Poul Hansen, the company 
president, remarks, the term 
ran be confusing. It is com- 
monly taken to refer to genetic 
engineering, in which Hansen 
is involved to some extent. 
But, Mr Hansen says, the com- 
pany's origins in the dairy 
industry mean it has been 
involved in biotechnology from 
the outset in enzymes and bac- 
terial cultures, which exist in 
nature but which the company 
began by producing in pure 
standardised form. 

The development can be 
illustrated by reference to ren- 
net, which made up some 90 
per cent of the company's sales 
as recently as 20 years ago. 
Until the 1970s. the company 
produced the natural enzyme 
from calves’ stomachs. By the 
mid-1970s it was producing 
microbial rennet, derived from 


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fungi or bacteria and qualify- 
ing for use in ih* 1 growing mar , 
ket for vegetarian cheese. 
Then, some five years ago, it 
began producing genetic ren- 
net made by replicating the 

animal gene but still q ualif yin g 

as vegetarian in. for instance, 
the UK market 

In genetic rennet, it com- 
petes with Pfizer of the US and 
Gist-Brocades of Holland, both 
much larger than itself. How- 
ever. this does not bother the 
company's executives unduly. 
The policy. Mr Hansen says, is 
to operate in niche markets, 
and to be big in them. Histori- 
cally. the food ingredients 
industry around the world con- 
sisted of small, privately 
owned companies in each mar- 
ket There are still a few left 
Mr Hansen says, "but we are 
one of the few which have 
stayed independent." 

Besides Pfizer and Gist-Bro- 
cades. other giants of the phar- 
maceuticals business have 
bought their way into the 
industry, such as Rhone-Poul- 
enc of France. But Hansen, too. 
has acquired some 15 smaller 
companies over the years. 
Plainly, it is an industry in 
which size means something. 

“The very big multinational 
food companies.” says Mr Vagn 
Dinesen, vice-president “need 
people of a certain size as a 
matter of reliability. The con- 
centration of the food industry 
brings a corresponding concen- 
tration in their suppliers. We 
follow our customers around 


the world, and our philosophy 
is to service the customer at 
close range. It’s an expensive 
way of selling, but It’s neces- 
sary for us.” 

Take, for Instance, natural 
food colourings, another Han- 
sen speciality. A certain red 
colouring, derived from 
paprika, is used in pepperoni 
sausage. “We buy hundreds of 
tons of red peppers a year, 
from Spain. Brazil and Africa,” 
Mr Dinesen says. "Suppose a 
big American pizza chain 
decides it wants to use our col- 
ouring in the pepperoni on its 
pizzas. When head office has 
decided that, it spreads 
throughout the world.” 

Oddly enough, the compa- 
ny’s production is less scat- 
tered geographically than it 
used to be. "Originally," Mr 
Hansen says, “we put produc- 
tion in almost every market, 
since transportation of rennet 
was a problem. Now we're cut- 
ting back: we have six rennet 
plants worldwide - three in 
Europe, two in South America 
and one in Australia.” 

In colours. Hansen now has 
plants in the UK, Brazil Spain 
and Argentina, besides Den- 
mark. Some of its foreign ven- 
tures have a distinctly exotic 
touch. Recently , it has started 
up a plantation producing 
annatto. a bush whose seeds 
have an orange-yellow colour- 
ing that is used in butter, may- 
onnaise, cheese and margarine, 
on the estuary of the Amazon 
in northern Brazil. 

“Part of our philosophy,” 
says Mr Hansen, “is to help 
industrialise food production 
around the world. In Denmark 
or the UK, food is produced in 
big, modem factories. In the 
Far East it is typically made 
in households. Our philosophy 
is to help bring food produc- 
tion to industrial scale, using 
natural ingredients.” 

Tony Jackson 


Profile: TULIP INTERNATIONAL 

Cuts bring home the bacon 


Four years ago. Tulip 
International. Denmark's 
large processed meat exporter, 
was losing DKrlm a day. 
Today, following a programme 
of severe rationalisation, the 
company is back in the black 
and looking to increase its 
markets overseas. 

Daring that period, Tulip 
has bear transformed from a 
collection of competing form- 
ers’ cooperatives into a lim- 
ited company which is 44 per 
cent owned by Danish finan- 
cial In st i t u tions. "These co-op- 
eratives had been competing 
for 50 years ami we had to 
change from a slaughterhouse 
culture to develop marketing 
and advertising strategy," 
explains Mr Flemming Linde- 
lov, group manag in g director. 

TuHp was formed in 1990 by 
the merger of the processed 
meat divisions of three slaugh- 
terhouses and Danepak, a Dan- 
ish-owned UK bacon company. 
The slaughterhouses, which 
have since completed their 
own merger, still own a 56 per 
cent stake hi the company. A 
group of bankers injected 
DKr625m Into the company to 
enable it to rationalise produc- 
tion capacity. 

This meant closing four fac- 
tories to concentrate produc- 
tion in three centres. The 
restructuring involved a 34 
per cent cat in the workforce 
from 4,039 employees in 1990 
to 2,728 last year, while the 
company continues to produce 
the same amount of processed 
meat: 150,000 tonnes a year. 

The rationalisation cost 
roughly DKrSOOm, with 
DKr400m being spent on clos- 
ing facilities and boosting pro- 


MD targets Europe 


Continued from previous page 

yoghurt market - MD Foods 
had to cancel television adver- 
tisements several weeks after 
the launch as the company did 
not have enough production 
capacity to satisfy demand. 

Gaio is based on a recipe 
found in a remote part of the 
Ukraine where villagers tradi- 
tionally live to extremely old 
ages. MD Foods is not allowed 
to make any health claims for 
its product, but it has captured 
the imagination of many con- 
sumers. 

Eventually, MD Foods hopes 
to sell products such as these 
outside the EU, particularly in 
the growing Asian market but 
it is a slow process. Mr Chris- 
tiansen says he has been devel- 
oping the Japanese market for 
35 years to which MD Foods 
sends mozzarella and cream 
cheese. Asia accounts for 9 per 
cent of MD's export sales, i 


"Gradually, the Japanese are 
eating more pizza and cheese- 
cake. but they still consume 
very small amounts of dairy 
products compared with the 
west,” he said. 

The European dairy industry 
is concerned that some of these 
markets could be jeopardised 
by the cuts in subsidised 
exports required by Gatt For 
this reason, the Danish Dairy 
Federation has suggested to 
the European Commission that 
some formers could produce a 
little extra milk at world 
prices. 

This proposal is still in its 


very early stages and no final 
decisions have been made, but 
it would get round the problem 
of maintaining export markets. 
“If we don’t find a way to pro- 
duce more without subsidy, we 
will see that in six years at the 
end of the current Gatt deal, 
we will have lost a big part of 
the world market,” says Mr 
Christiansen. 

Some 55 per cent of MD 
Foods' export sales come from 
outside the EU. Mr Christian- 
sen is hoping that he can hold 
onto this in spite of Gatt 

Deborah Hargreaves 


NIRO SUGAR & SWEETENER PLANTS DIVISION 



lation of complete plants, 
process equipment and 
spare parts for the sugar 
and sweetener industries. 

This makes NSP ready 
to meet tomorrow's 
challenge. 



Under the names DDS and 
DDS-Kreyer, Niro Sugar & 
Sweetener Plants Division, 
in short NSP, has for more 
than 40 years been the 
leading supplier of advan- 
ced technology and know- 
how to the international 
sugar and sweetener 
industries. 


NSP achieved in February 
1994 a Quality System 
Certificate fulfilling the 
requirements in the 
internationally recognized 
standard ISO 9001. 

The scope of the certifi- 
cate is sale, development, 
design, project manage- 
ment, delivery and instal- 


IRO 


SUGAR & SWEETENER 1 
PLANTS DIVISION 

NIRO A/5. Gladsaxevej 305 
PO Box 160. 2B60 Soeborg 
Denmark 


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(taction capacity at other 
plants to fate up the output 
The company has now man- 
aged to turn a loss of 
DKr270m in the 1991-1992 
fjnanrfal year ending in Octo- 
ber to a net profit of DKrlSlm 
in the last fmanpial year. 

Tulip will continue to invest 
in efficiency improvements by 
spending OKrlSSm this year 
and DKrl40m In 1995 on 
equipment for increasing pro- 
ductivity. 

"We’ve done all you can 
read in numapwiwnt books by 
turning ourselves into a com- 
pany with high volume and 
low costs; now we must con- 
centrate on being customer 
and market-led," Mr Lindelov 
says. 

Tulip has put a lot of effort 
into product development 
which is vital for its growing 
export trade. About 95 per 
cent of its production is 
exported , and the company has 
slicing, packaging and process- 
ing plants in the UK and Ger- 
many. 

Tulip receives 37 per cent of 
its DKrSbn turnover from the 
UK market where it has 1,200 
employees. Around 35 per cent 
of its sales come from the rest 
of Europe and 11 per cent from 
the US. 

It is a leading supplier of 
bacon and ham products to 
Marks and Spencer, the UK 
retail group, for which it man- 
ufactures 30 to 40 new prod- 
ucts a year. "Marks and Spen- 
cer is really keen on new 
products; for the rest of our 
markets we bring out 10 to 15 
new products,” Mr Linde] ov 
explains. The company has 15 
employees working on product 
innovation in the UK and 15 in 
Denmark. 

It is looking to Russia as a 
big new export market where 


the company is supplying 
canned ham. Sales in Russia 
now represent DKr250m and 
Mr Lindelov is confident 
level could double within a 
couple of years. Tulip recently 
opened, its own warehouse in 
Russia and hopes to start a 
sales office In Moscow. 

Its canned meat division 
also plans to increase sales in 
eastern Europe and central 
America. At the same time. 
Tulip is looking to boost its 
m a rk e t share in the German 
and Scandinavian markets 
where tastes are similar and 
the game products can be sold. 

However, last year the com- 
pany drew back from the US 
market where it was suff ering 
from currency fluctuations 
and halved its market share in 


the US. It is trying to differen- 
tiate itself in the US market by 
selling higher value, low-fat 
ham products to delicatessen 
shops. 

Hr Lindelov has tried to fos- 
ter a culture where the com- 
pany is responsive to the 
needs of its customers and 
employees remain flexible. For 
example, - the head of Tulip’s 
ham division, who was in 
charge of 600 people with a 
turn over of DKrLlbn, has now 
been moved to head a sales 
office in Germany with 50 
employees. *We want to try 
and show that a product devel- 
opment manag er is as impor- 
tant as leading a sales divi- 
sion, ” Mr UnddoY explains. 

Deborah Hargreaves 


KROM ANN & MONTER 

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DK-8100 AarhnjC 

Denmark 

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Telephone +45 33 11 11 10 

lUephooe: +4586 1271 11 

Telefax: +4533118028 

Ittefarc +4586 1841 55 

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BRUSSELS 

44/45 Otanoery Lane 

4757B12 Avenue Lmdse 

London WC2A U8 

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Telephone: +4471 4044825 

Telephone +32 2 646 3620 

TWefac +44714041471 

Telefax: *32 2 646 4049 

Contact; 

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Jmgen KJagmd Madsen. 

HenrlkPfcjn, 

redden! partner 

resident partner 


A GOOD F.T. SURVEY 



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14 


BUSINESS AND THE LAW 


FINANCIAL TIMES TUESDAY JUNE 7 1994 


Intellectual rights 
given precedence 



EUROPEAN 

COURT 


Where intellectual 
property rights 
conflict with the 
interests of free 
competition, intel- 
lectual property 
rights should 
take precedence, 
according to a pre- 
liminary opinion of the European 
Court of Justice. 

The interests of undistorted 
competition should prevail only 
where the exercise of a given 
intellectual property right was not 
necessary to fulfil the essential 
function of that right, according to 
the opinion of Advocate General 


Gulmann in the appeal in the 


Magill TV Guide cases. 

The cases concerned attempts 
by Magill to publish a comprehen- 
sive weekly television guide. 
Copyright in TV scheduling infor- 
mation belonged to the BBC, Inde- 
pendent Television Publications 
and the Irish broadcaster. Radio 
Telefis Bireaim, all of which pub- 
lished guides of their own listings. 
The companies licens ed daily and 
weekend comprehensive guides. 

Magill complained to the Euro- 
pean Commission. The Commis- 
sion found the three companies 
had abused their individual domi- 
nant positions by preventing the 
publication and sale of compre- 
hensive weekly TV guides in 
Ireland and Northern Ireland. It 
ordered them to supply each other 
third parties with their indi- 
vidual weekly listings - that is 
compulsory licensing. The compa- 
nies appealed to the Court of First 
Instance, which found in the Com- 
mission’s favour. They then 
appealed to the ECJ. 

Before dealing with the points 
raised by the parties. Advocate 
General Gulmann made some 
remarks on the special nat ure of 
copyright He said by their nature 
copyright laws give copyright 
owners the right to restrict compe- 
tition. He also noted that the copy- 
right laws of the member states 
generally balance the interests of 
copyright owners and undistorted 
competition by restricting the 
exclusive rights of copyright own- 
ers in certain ways, such as giving 
others the right to make certain 
use of copyright material on pay- 
ment of a royalty. 

He said that, although such a 
balancing of interests did not pro- 


em the basis of the EC Treaty’s 
competition rules, it did that 
caution should be exercised. 

Six grounds of appeal were 
lodged in total by the parties and 
interveners. The only ground oil 
which the advocate-general 
thoug h* that the appellants should 
succeed related to the concept of 
ffbnsft of a doTTP naT> t position. 

The appellants claimed the CRT 
bad misconstrued this concept 
its judgments should thus be 
nnmiTTpd, The CFI bad upheld the 
Commission’s finding that the 
refusal by the parties to grant 
licences constituted an abuse of a 
rinmtnttnt position. 

The central issue was whether, 
and if so under what circum- 
stances, a refusal to grant a copy- 
right licence could constitute an 
abuse of a dominant position. 

It was agreed a refusal to grant 
licences in Itself did not constitute 


an abuse. But there would be occa- 
sions where such a refusal had 
been exercised under such special 
circumstances that it created an 
unacceptable obstacle to undis- 
torted competition and therefore 
the copyright owners’ rights 
should be restricted by EC compe- 
tition rules. But, the advocate gen- 
eral stressed that, given that com- 
pulsory Bcensmg were a serious 
interference in copyright, there 
had to be substantial and weighty 
competition grounds if the right to 
refuse copyright licences were to 
be regarded as unnecessary to ful- 
fil Out gffltentlal function of the 
copyright 

He considered some of the CFTs 
findings on this point were flawed 
and not sufficient to be considered 
special circumstances. For exam- 
ple, the CFI found the copyright 
owners’ rights were capable of 
being restricted because their 
refusal to grant licences prevented 
the emergence on the market of a 
competing new product 

But the advocate general consid- 
ered such action could be taken 
only where a refusal to grant a 
licence prevented a non-competing 
product’s emergence. Where a 
competing product was restricted, 
copyright owners' interests should 
prevail over those of consumers. 

Joined cases: C-24I/91P and 
C-242/91P: RTE and Independent 
Television Publications, Opinion, 
June 11994. 


chide further limitations on the 
copyright owners’ exclusive rights 


BRICK COURT CHAMBERS, 
BRUSSELS 


I n April,. Arthur D little, the 
Massachusetts-based manage- 
ment and technology consul- 
tants, obtained an injunction 
from a California Superior Court 
judge banning Electronic Data 
Systems, an information-services 
subsidiary of General Motors, from 
soliciting its employees anywhere 
in the world. 

Hie move followed a lawsuit filed 
by Little alleging that EDS had 
unfairly hired away almost the 
entire staff of Little’s aerospace con- 
sulting practice, resulting in a sig- 
nificant loss of bumness. 

The sweeping nature of the 
Injunction surprised corporate 
Ame ri ca. Although companies fre- 
quently threaten legal action when 
one competitor poaches another's 
talent, cases rarely reach the 
courts. Broad prohibitions on solic- 
iting employees are rare. The 13th 
amendment of the US Constitution 
guarantees citizens the right to 
work for any employer they choose 
if that employer wants to employ 
them. 

EDS is considering an appeal. 
But, if the injunction is upheld on 
appeal, do US companies need to 
reconsider their hiring policies? 

EDS denies it has done anything 
wrong. Mr Mark Fox, an EDS 
spokesman, says: “We believe the 
suit is without merit and the 
injunctum is without merit” 

The lawsuit should be put into 
perspective, he says. EDS has built 
up a management consultancy of 
1,100 people from scratch in two 
years. Of that number, 30 worked in 
the aerospace field and, of those 30, 
eight were former Little employees. 

"We’re building something very 
exciting, of winch aerospace is a 
key area. People are attracted to 
that and are keen to work for us. 
But we’ve done nothing to twist 
their arms or use illegal means to 
bring them in,” he says. 

So why did Little bring the 
action? Mr Sam Gallo, the compa- 
ny’s general counsel ex plains that 
tiie poaching of almos t its entire 
aerospace consultancy was an 
unprecedented event "Over the 
years many people have moved in 
and out of the company, but we’ve 
never had a situation where an 
entire practice area was essentially 
raided from the firm,” he says. 

When little subsequently discov- 
ered that EDS was attempting the 
same thing with its metal industries 
consulting practice, it Mt it had 
little choice but to take legal action. 

Mr Gallo says the suit has three 
parts. Little is suing EDS for unfair 
competition under the California 
Business and Professions Code; 
theft of trade secrets; and for induc- 
ing little employees to breach fidu- 
ciary duties to tire company. 

It is also suing Mr Charles D 
Scales, former head of tire aerospace 
consulting practice, for breach of 



season closed 


Robert Rice on a US injunction that 
limits poaching of a rival’s staff 





fiduciary duty and contractual obli- 
gations. Little alleges that, while 
still working for the company but 
after being hired by EDS, Mr Scales 
used his influence and position as 
an officer of the company to per- 
suade colleagues to move to EDS. 

Finally , little is suing H eidric k & 
Struggles, an executive recruitment 
firm. Little alleges the firm acted 
improperly by helping EDS recruit 
members of its aerospace group 
while Little itself was a client of the 
headhunters. Heidri ck & struggles 
denies it acted improperly. 

Having filed the lawsuit. Little 
then sought a worldwide injunction 
to preserve the status quo until trial 
of the action. Its intention was not 
to prevent any Little employees 
from applying for jobs at EDS but to 
stop EDS from approaching any 
more Little staff around the world. 

Mr Gallo says that, to get the 
injunction, little bad to satisfy the 
judge it was more likely than not to 
win the lawsuit. "He must have 
been satisfied we had a strong 
case,” he added. 

Does the sweeping nature of the 
protection gained by Little have 
broader rmplinatirmc for US busi- 
nesses? Mr Jrffrey Kingston, a part- 


ner of San Francisco-based Brobeck 
Phlegm A Harrison, says there are 
several dimensions to the case. 

At one Wei the lawsuit seemed a 
straightforward Bancroft- Whitney v 

Glen claim - the 1960s case which 
established the principle nnrfw Cal- 
ifornia law that it is a dvil wrong, 
or tort, to conduct a raid designed 
to cripple a onmpatitm- by lining 
away a group of its employees. 

“It's fairly difficult for a plaintiff 
to prove bid, if {the raid] delivers a 
crippling blow, then it's a tort for 
which damages are payable," says 
Mr Kingston. 

The action against Mr Scales was 
more commonplace, he says. If a 
manager, before leaving a company, 
induces employees under bis super- 
vision to leave with him, it is a 
breach of his fiduciary duly of loy- 
alty to the company for which he 
could be held liable in damages. 

Few of these cases reach the 
courts, however, because where 
only one or two employees have 
been lured away it is hanl to quan- 
tify damages. Where, on the other 
hand, a large group of employees 
has been lined away, as is alleged 
in this case, such an action becomes 
more viable as the damages can 


be mere easily quantified. _ 

In the Uttle case the hiring away 

of 8hi»st an entire practice group «s 

said to have crippled Littles 14m 
aerospace consultancy. 

The race was also about theft of 
trade secrets, says Mr Kingston. 
The allegation is that EDS misap- 
propriated Little’s trade secrets by 
usfogMr Scales’ inside knowledge 
about employees at Little and their 
terms and conditions of employ- 
ment to lure them away. Such 
knowledge would not normally be 
available to outside headhunters. 

Overlaying all this, however, _ is 
the allegation that the EDS action 
ammmfflrf to unfair competition in 
breach of the California Business 
and Professions Code. 


A ccording to Mr Howard 
Fine, a partner in the San 
Francisco office of Baker & 
McKenzie, if the Little 
ffiaim is upheld by the courts it 
would represent A novel application 
of the unfair competition law. 

By granting the injunction the 
court appeared to be saying that, 
where a company undertakes a tar- 
geted business programme to 
rm flffnrrinp a competitor by picking 
out its more gifted employees, that 
would amount to unfair competi- 
tion. 

The unfair competition law could 
not be used to block EDS from solic- 
iting one or two employees, he adds. 
To succeed when the action comes 
to trial Little will have to show a 
concerted plan by EDS to d a mage 
Its aerospace consultancy. That 
may prove difficult, he says, unless 
it can produce evidence such as 
internal EDS memos planning to 
target Little employees. 

Unfair competition cases nor- 
mally involve allegations of unfair 
business practices and other 
restraints cm competition. Mr Fine 
says. If the little case goes to the 
California Court of Appeals it could 
represent an important develop- 
ment in the law. 

But most lawyers believe the case 
will be settled before going to trial. 
Mr Fine says the likely course of 
events is for the two sides to reach 
an agreement that the defendant 
company will not solicit the plain- 
tiff’s employees for a certain period 
of time. Provided it does not restrict 
the freedom of individual employees 
to work for whomever they choose, 
such an agreement could provide 
the bass of an amicable settlement, 
he says. 

Mr Fox says EDS are anxious to 
move mi and put the dispute behind 
them. Mr Gallo says Little are "not 
averse to settling it” on the right 
terms. Clearly, a settlement would 
make commercial sense for both 
EDS and little. But If they do settle, 
the uncertainty surrounding this 
area of the law will continue, and 
that may be in nobody’s interests. 



LEGAL BRIEFS 


Survey finds UK 
conveyancing 
best in Europe 


I n ter nation al pr operty investors 
believe the UK has a better 
legal system for property 
transactions than other European 
countries. They also prefer the 
UK’s tax structure, according to . 
a survey conducted by Gallu p for 
international property consultants 
Richard Eds. 

The survey of 68 institutions 
- which included Japanese life 
companies, French insurers, 
German open funds, Dutch ptsislon 
funds. Hong Kong entrepreneurs 
and UK institutional investors - 
found that half of those questioned 
thought the UK’s conveyancing 
system was preferable to others 
in Europe. Only 16 per cent 
thought it was worse. On the tax 
system, 44 per cent thought the 
UK was better than its European 
rivals. 

UK chartered surveyors were 
nicft rated more highly than their 
European counterparts by 71 per 
emit of those questioned. But more 
than one-third of those surveyed 
thought London's status as a world 
financial centre had declined in 
the past five years and 26 percent 
believe it win decline further. 


Mediation costs 


T he Centre for Public 
Resources, the New 
York-based alternative 
dispute resolution organisation, 
has announced that business 
disputes involving gl.Tbn woe 
resolved successfully last year 
through the use of mediation and 
other farms of dispute resolution. 

CPR says 150 of the companies 
invnlwH hi medlatiim Es timate d 

direct legal cost savings of $37.5m, 
an average of 1250,000 per 
company. Disputes resolved in 1993 
by CPR mediators Included 
antMrnst, bankruptcy, 
construction, employment, energy, 
en vironm ent, inteHectnal property, 
libel, professional fees and asset 
transfers. 


c> r 

at al 


R 


« 







"Selling coatings in South America 1$ quite 
different from selling them In Europe. We cannot 
simply adopt European technology; we must 
adapt it to local needs. And in economic and 
financial aspects, the gap is even wider. 1 never 


fail to stun my colleagues when I tell them about 
the hyperinflation we have to deal with, and the 
unorthodox measures we must take to control 
our costs and help our customers to survive. 
We get all the help we need from Akzo Nobel 


Akzo Nobel is one of the world's leading companies in selected areas of chemicals, coatings, health care products and fibers. 
More than 73,000 people.active in 50 countries around the world, make up the Akzo Nobel workforce. For more information, wrtteor 
call: Akzo Nobel nv, ACQT9, P.O. Box 3300, 6600 SB Arnhem, the Netherlands. Telephone (31)6566 22 66. 


headquarters, and the best part is that It comes 
with so few strings attached. We are free to run 
this business our way - which, looking at our 
growth figures, seems to be a most effective way 
of creating the right chemistry." 



CREATING THE RIGHT CHEMISTRY 


AKZO NOBEL 


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FINANCtAJL TIMES TUESDAY JUNE 7 1994 


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at arms 



ex. Whistler was never a 
-war artist in the sow con- 
ventional sense: he was, 
> rather, an artist who chose 
to be a soldier and wait to war. Fie 
had tiled for a ««nmlss1fln in the 
Territorials after Munich, and vol- 
unteered - again when war was 
declared In 'September 1939 
although, at 35,.. well over-age for. 
call-up hrthie normal .way. T have a 
strong feeling", he told a friend,- 
Kenneth Rae, “that if anyone has to 
go and fight*. . it is precisely people 
of my age, and not the young boys.” 

By then no new commissions 
were being given except. through 
the ranks, with the Brigade of 

William Packer 
reviews ' the work of 
Rex Whistler, the 
Welsh Guard and 
artist hero who died 
in Normandy, 1944 

Guards the sole exception. Colonel 
Leatham .of. the Welsh Guards put 
him on the waiting list, his commis- 
sion finally came through In May 
1940 and he joined his unit for train- 
ing in Jun& Thus as- a troop com- 
mander, 3 -Squadron, 2nd 
(Armoured Reconnaissance) Battal- 
ion The .Welsh Guards, Lieutenant 
RJ. Whistler. at last want to the 
war, lahding.wilh his troop on Gold 
Beach cm June 30, 1944, D-Day + 24. 

On July-J&the battalion went into, 
action for the first time, moving 
across Pegasus Bridge and so south 
to take parti in Operation Good- 
wood, the planned breaking of the 
deadlock of: the- battle for Caen. 
That afternoon his tank came under 
fire whfle-temjxtfarlly disabled by 
loose wirfc Caught in the open as hie 
organise* Ids troop’s response, 
Whistler was killed outright hy a 
mortar blast; .the battalion's first 
casualty : of the - campaign. He was 
39. v>: -: .- 

Ther&is little doubt that had he 
been qffeceda commission as a war 
artist at-th^urcrtsef, he would have 
accepttd^k^bQt .bis name was the 
760th to b§ considered by Kenneth 
Clark* whose cdaunittee’s decision 
it was, at^'hy ihfin it was far too 
late. firritfe footgears of training 


and waiting between D unkir k and 
D-Day, Whistler had become a true 
soldier, imbued not just with his 
personal sense of duly as an army 
officer, but with the ethos of his 
.regiment, and a guards regiment at 
that 

. He bad turned down camouflage 
work, and had been given every 
opportunity to apply for a job on 
- tbs staff. He had Mends quite liter- 
ally at court, cm erne notable occa- 
sion being summoned, a mere sub- 
altern still, “to dine with the King & 
Queen at Sandringham last Tues- 
day! And went there with my CoL & 
General & an officer or two from 
the Grenrs & Bde HQ . . . very infor- 
mal and everyone in such good 
spirits.” He could so easily and hon- 
ourably have excused himself from 
active service hut was adamant: M ir 
you try to stew me”, he told tus 
squadron co mmander , “I shajl fctTi 
myself.” 

It is easy to make a hero of a 
hero, especially so naturally modest 
and likeable a hero as Rex Whistler 

- “one of the most delightful men 
the Welsh Guards has ever carried 

0D its roll . . " hlS Hiwwanilinp 
officer ■ - and a - reputation as an 
artist can so easily be elevated in 
proportion. The usefulness of this 
delightful and, in the end, poignant 
exhibition of Whistler's war-time 
work is that it allows us to see it for 
what it is, through all the fuss of 
personality and circ umstance 

- As a painter he is not all that 
remarkable, uneven yet capable on 
occasion of great charm and even 
power in a particular image - the 
portrait of the battalion's master 
cook, for example; a tiny Essex 
landscape painted the weekend he 
joined up; the officers' mess under 
canvas on Salisbury Plain; a 
self-portrait in his new uniform. He 
painted constantly, portrait studies 
of Mends and fellow officers, genre 
scales of military and domestic life, 
the gardens and interiors of the 
houses he visited on leave. There is 
a sense that in this time he was 
beginning to come to himself as a 
painter, and this body of work does 
stand as a particular record of the 
war on the home front 

But it is as a draughtsman and 
designer that Whistler shows him- 
self as being truly remarkable. His 
pre-war reputation rested largely cm 
his mural decorations for the res- 
taurant at the Tate, executed in the 



‘The Master Cook*: Sergeant-Cook J.W. Isaacs, c. 1941 by Rex Whistler 


1920s, and on his work as an illus- 
trator. Through the war such freel- 
ance work continued as military 
duty allowed. Including a number of 
major commissions for stage and 
film design. But what is more inter- 
esting is the degree to which such 
activity was not independent of his 
life as a soldier at all, but part of its 
very fabric. 

He was draughtsman and 
designer in his very nature, react- 
ing spontaneously to every turn of 


the militar y life in terms of line and 
image. A diagram of the lay-out for 
kit inspection became an elegant 
and wryly instructive work of art A 
suggestion to the colonel of easy 
improvements to the comforts of 
the mess became a lively before- 
and-after cartoon, after the manner 
of a Rowlandson. Who but Whistler 
would think to decorate the visitors’ 
book of the travelling cinema, come 
to entertain the troops? Pastiche 
Old Masters for the now-refurbished 


mess? A battalion badge? A battal- 
ion Christmas card? Whistler was 

the man. 

Much of the material for this 
show remains in private hands. A 
great deal more is in the collection 
of the Welsh Guards, which evi- 
dently treasures his memory. We 
can see why. 

Rex Whistler's War: The National 
Army Museum, Royal Hospital 
Road SW3, until September 18. 




Concerts in London 


All admiration for Zimerman and the Nash 



It 


I he Polish pianist Krystian 
Zhnerman's packed recital 
at the Royal Festival Hall 
on Thursday night had a 
most unusual programme, at first 
sight bitty, consisting of a string of 
variation .sets by improbably 
assorted composers, writes Paul 
Driver. However, his playing not 
(»ily justified five of his six choices 
- sometimes, making undistin- 
guished music sound much, better 
than it is - but nearly authenti- 
cated the. sequence as an artistic 
whole. ... v 
That playing 4 utterly compel- 
ling: flawlessly virtuoslc; muscular 
and suavely lyrical by turns; 
equally capable of- the most limpid 
delicacies and most massive quasi- 
orchestral grandeur; and always 
informed by a questing; unorthodox 
musical intelligence, which was evi- 
dent in the delightfully quirky pro- 
gramme notes hr. provided. as well 
as in such astonishing perfor- 
mances as that of the opening item, 
his own (1973) , transcription of 
Bach's Basracaglia and Fugue in C 


minor, BWV 582. I would never 
have thought that two hands on one 
piano could produce so detailed and 
convincing an impression of a foil 
organ as this. 

Cheekily, he followed the gigan- 
tism of this piece with a translucent 
miniature allegedly by the eight- 
year old Schubert, Seam Easy Vari- 
ations in G -receiving their British 
premiere, no less. There is nothing 
beyond elegant Mozartian simplic- 
ity, in the writing; but Zimerman’s 
formidable musicianship raised the 
expression a power or two. For the 
mature Mendelssohn’s Variations 
serieuses Op. 54 he restored some of 
the orchestral thunderousness of 
the Bach account, but making a 
point of not following the false 
Horowitz tradition and actually 
ending with thunder. His reading 
was otherwise as gloriously foil of 
HOrowitzian technical brilliance as 
you could wish. (Like Horowitz, 
Zimerman travels with his own 
wondrous instrument) 

After the interval we were 
plunged, a little unpreparedly, into 


the glittering hard nostalgia of Rav- 
el’s Vaises nobles et sentimentales, 
among which Zimerman found sev- 
eral occasions For introspective lin- 
gering; and yet more abruptly into 
the modernist pointillism of 
Webern’s Variations Op. 27, which 
was given a passionate and athletic 
despatch, Zimerman squaring up to 
the keyboard like a tennis player 
receiving service. IBs endpiece. the 
diffuse. Immature Variations on a 
Polish Theme, Op. 10, by Szyma- 
nowski, rather let the programme 
down, though lent moments of keen 
persuasiveness. Why not finish with 
one of the dozens of piano variation 
sets that are masterpieces? 

C ritics may not be the best- 
loved members of the 
music profession, writes 
John Allison, but one 
would not have guessed that from 
the warmth of the audience at the 
Wigmore Hall on Saturday: Felix 
Aprahamian was celebrating his 
80th birthday, »nri a throng of his 
admirers combined with devotees of 


the Nash Ensemble to pack the hall , 
leaving standing room only at the 
back. 

But then Ap rahamian who was 
number two on The Sunday Times 
for 41 years, is no ordinary critic. A 
legendary figure in British musical 
life, a Mend of many composers and 
musicians, he was above all a cham- 
pion of French music in this coun- 
try. He played a significant role in 
presenting the “Concerts de 
Musique Franpaise" at the Wigmore 
during 1940s and eariy 50s. 

The venue for Saturday’s celebra- 
tion was thus as appropriate as the 
Nash Ensemble’s programme, all 
French with the exception of the 
honorary-French Delias. One of the 
group’s many strengths is its versa- 
tility, and this programme had vari- 
ety and balance. 

An evocative account of Ravel’s 
Introduction and Allegro for harp, 
string quartet, flute and clarinet set 
the tone for the evening. Skaila 
Kang a was the consummate harp 
soloist No less accomplished was 
the flautist Philippa Davies, who 


captured the contrasting moods of 
Roussel’s Joueurs de FUUe. A shift- 
ing of stage furniture brought out 
strings, piano (Ian Brown, excel- 
lent) and the baritone Francois Le 
Roux for Le Bonne Chanson, Faurt’s 
setting of nine Verlaine poems. Le 
Roux, a musidanly singer, was not 
at his most mellifluous; his tone 
seemed a little grey and colourless 
for music as luminous as this. 

Christopher van Kannen was a 
warm soloist in Delius's Sonata for 
cello and piano, and brought shape 
to its long, musing lines. Debussy’s 
ethereal Sonata for flute, viola and 
harp was dispatched with delicacy 
before we heard the evening's party 
piece: Le Bal Masque, an appropri- 
ate choice since Poulenc was one of 
Aprahamian’ s closest composer 
friends. Le Roux declaimed Max 
Jacob's verses with verve and the 
eight players discharged the cheeky 
score with zest. The Nash musi- 
cians are renowned communicators, 
and here they bubbled over, provid- 
ing a rollicking end to an otherwise 
sober party. 


Theatre 


A Doll’s House 


A s if to reassure the shades 
of those London theatre- 
goers shocked by A Doll’s 
House in 1889, Chichester’s 
Minerva Theatre has mounted a 
new production of this dissection of 
sexual non-communication that 
places Ibsen smack in the middle of 
Old-fashioned melodrama. Tchaikov- 
sky surging in the background, omi- 
nously dimming lights, an erring 
heroine who almost launches into a 
mad scene: it might be Lady 
Audky's Secret The director, Annie 
Casttedine, did a full-blooded Gas- 
light at Greenwich; and a colleague 
at Chichester wondered aloud 
whether a new last act for Ibsen 
would reveal that patronising hus- 
band TOrvald had engineered the 
whole crisis to get rid of wife Nora 
and make off with her old chum. 

Jane Maud’s unusually strong 
Christine would make this under- 
standable. Poor Mrs Linde's hard 
luck story emerges with bleak mel- 
ancholy that occasionally erupts 
into anger. Her reunion with Nora 
is competitive, defiant, as they 
prowl around each other catching 
up with the news like big cats 
marking out their territories. 

Sharon Maughan’s Nora is ham- 
pered by entering in a red dress on 
a minimal red-walled set that 
recalls Ingmar Bergman’s Hedda 
G abler. Like Hedda, or EUxda in The 
Lady From The Sea, Nora is looking 
for moral responsibility, the right to 
make her own decisions, in the face 
of stifling masculine protectiveness. 
Delightedly identified from the Gold 
Blend TV commercial by a section 
of the audience, Ms Maughan clev- 
erly suggests the bird In the gilded 
cage, the pampered plaything In a 
marriage whose cloying sweetness 
is disturbed only by tension over 
too many tooth-rotting macar oons. 

The sexual ride of the marriage is 
absent until the last act when Peter 
McEnery’s fantasising Torvald, 


inflamed by Nora's dancing, reveals 
himself as the true Victorian pater- 
familias: obviously vastly experi- 
enced with women of a different 
sort reserving a mixture of worship 
and possessiveness for his wife. By 
this time the production’s throb- 
bingly theatrical mood has turned 
Torvald into a clown. “I don’t want 
any melodramatics," declares Mr 
McEnery, who has evidently not 
noticed that the past 2Vi hours have 
consisted of nothing else. 

Christopher Hampton's 1971 ver- 
sion hardly helps with its blend of 
Victorianisms (“Get on with you, 
you little minx!”) and detached edi* 
torialism - a “terrible blow to his 
masculine self-esteem" is not the 
sort of over-aware phrase Nora 
would come out with; before Act 
Three anyway. 

Initially the direction makes Nora 
bounce between the chirpy and the 
hysterical, ending Act One frozen 
into the dating mask of a silent 
scream, a Norwegian national pas- 
time to judge by the country's most 
famous painting. The performance 
Is not only too lightweight; it makes 
Nora's final, rational declaration of 
independence totally implausible. 

This is unfair on Ms Maughan, 
who comes Into her own with an 
earnest eagerness that makes the 
scene into a quietly controlled but 
murderous call to arms. Liabilities 
include an offstage ball that sounds 
as if the St Petersburg Philhar- 
monic has moved in upstairs and an 
inert Krogstad (Nick Reding) of 
pure Norwegian wood. But the 
play's issues still reverberate 
uncomfortably: “Most young crimi- 
nals usually have dishonest moth- 
ers.” says the benign husband. Sub- 
stitute unmarried for dishonest and 
we are back to basics - and con- 
comitant attitudes - unchanged 
since Ibsen's day. 

Martin Hoyle 


Happy Days 


W hat do we mean by sta- 
sis in drama? Winnie, 
the heroine of Samuel 
Beckett's Happy Days 
is vis ually almost as Imm obile as 
any protagonist since Aeschylus’s 
Prometheus Bound: embedded in a 
mound of earth - In Act One up to 
her waist, in Act Two up to her 
neck. Nor does she progress psycho- 
logically. What one recalls most are 
the phrases on which she harps - 
“That is what I find so wonderful;" 
“Ah yes, great mercies;” “Another 
happy day” - time and a gain. 

And yet this is not. for us, a static 
play. AH Winnie's repetitions help 
ns to know her tetter, and to lead 
us more intimately into the vast 
tragicomic situation which is larger 
than her. For Happy Days is a mor- 
tal's contemplations of the gradual 
diminu endo ending of life: “loss of 
spirits, lade of keenness," loss of 
memory, of sexuality, of energy, o(, 
hope. Against which Winnie's 
repeated little optimisms, staving 
off despair, become heroic. 

Beckett achieves this often by 
working on the most trivial scale. 
Winnie reexamines her toothbrush 
until, after whole minutes, she dis- 
cerns all the legend “Fully guaran- 
teed genuine pure hog's setae.” 
Whereupon she remarks “That is 
what I find so wonderful, that not a 
day goes by - to speak in the old 
style - hardly a day, without some 
addition to one's knowledge how- 
ever trifling, the addition I mean, 
provided one takes the pains. And if 
for some strange reasons no further 
pains are possible, why then just 
close the eyes - and wait for the 
day to come - the happy day when 
flesh melts at so many degrees and 
the night of the moon has so many 
hundred hours... That is what 1 
find so comforting when I lose heart 
and envy the brute beast" 


So many of these phrases we have 
already heard from her lips- and 
will hear again, that the full impact 
of these sentences hardly hits us at 
the time. Yet it is the repetitions 
that matter most, for they represent 
Winnie's Canute-like efforts to defy 
the incoming waves of oblivion. I 
am, mind you, speaking here of 
Happy Days itself, and not of the 
specific performance it is currently 
receiving at the French Institute. 

Angela Pleasance gives Winnie an 
accent so precisely filled with low- 
er-middie-class English nuance, that 
it is is as if she took a Jane Clark 
view of Winnie. Her voice and face 
condescend to Impersonate Winnie, 
tiptoeing quaintly below stairs for 
every separate inflection. Her direc- 
tor, the French Simone Benmussa, 
may well be tone-deaf to the 
English class connotations of Pleas- 
ance's performance. But Benmussa 
must be aware of some of the exten- 
sive artifice employed by Pleasance, 
and by Peter Bayiiss in the small 
role of Willie. 

No doubt it is Benmussa who has 
encouraged Pleasance to speak the 
whole play on a near-inaudible 
thread of voice. This sustained pia- 
nissimo would be daring and com- 
pelling were Pleasance suggesting a 
larger-souled Winnie. Not so, how- 
ever. As Pleasance delivers it. 
Happy Days is simply the slow 
extinction of a what used to be 
called the soul of a housemaid. The 
play, however, is so much larger 
and more enthralling that yuu can 
listen to its words and Imagine, so 
to speak, the play beyond this mea- 
gre performance. Happy Days 
remains one at the great plays of 
the century. 

Alastair Macaulay 

At the French Institute 




JmsmJTJQNAJL 



■ AMSTERDAM 

Muzte^tbw**r Tonight; Nederiands 

Dana Theater in a programme 
inspired hy Dutarasnstructivist 
painter Pfe£ Mondrian, with now 

choreographies by JW KyHan and 
Hans van Marian. Thurs, Sat. next 
Mon (In repenray tffl Juno 24): 
Rtecardo ChaiSy 'conducts Utils 
Pasqual’anpw JJetiiariands Opera 
production of Jtetetafl. with cast, 
headed by Bruno Praiico (020-625 

Co^cw^pdaidw John Q'ot 

semi- staged 

P < ^hnaj^^ : OOT<atovwii, with 
cast teadod by Rodney Gafry and 
tomorrow, Thurs, 
Sat cooduots 

Mendelssohn 

and^Tcha&ovaky, with vtafin soloist 
JaapvenZweden. Thus (Kkrfne 
Zw^MlfeuteSlibaw Tabea 
ZNrnem^andHarlniut Hfifl in 
fjproflrarnri»fosplrea by Schubert's 
Wintwrai»Br.lPift Yevgeny Svetlanov 

Or Ch08tra.-iii4^asl«3vricy, Franck 
and RavdtLSun:: Krystlan Zknerman 


piano recital (24-hour Information 
service 020-675 4411 ticket 
reservations 020-671 8345) 

Beura van Beriage Fri: Hans Zender 
conducts Klangforum Wien in his 
arrangement of WInterrase, with 
tenor Hans-Peter Btochwitz. Sat 
Aiexandru Lascaa conducts BelHtoni 
Symphony Orchestra and Chorus 
In Mahler's Second Symphony. Sun: 
Mark Foster conducts Radio 
Chamber Orchestra in works by 
Chinese composers (020-627 0466) 
• Many of the above events form 
part of this year's Holland Festival, 
which continues till June 30 with 
highlights Including Peter Brook’s 
The Man Who, rare operas by 
Chausson and Max Brand, and 
performances tomorrow and Thurs 
at Stadsshouwburg of Peter Zadek’s 
Berliner Ensemble production of 
Shakespeare's Antony and 
Cleopatra, starring Eva Mattes and 
Bernhard MinettL For information 
and tickets, contact Netherlands 
Reservations Centre: tel 070-320 

2500 fax 070-320 2611. 

■ BASLE 

The highlight of this month's 
pro gra mme at the Stadttheater is 
Herbert Wernicke's new production 
of Handel’s Theodora, sung in 
Engteh by a cast headed by Sonia 
Theodorldou, Hedwig Fassbender 
and Christoph Homberger. The 
opening night is Sat with further 
performances on June 15, 18, 21, 

25 and 26. Repertory also includes 
Donizetti’s La Favorite and Sleeping 
Beauty (061-29 5 1133) 

■ BRUSSELS 

Monnaie Tomorrow. Antonio 


Pappano conducts first night of 
Karl- Ernst and Ursed Herrmann's 
production of La traviata, with cast 
headed by Elzbieta Szmytka, 
Laurence Dale and Victor Ledbetter. 
Repeated June 11, 14, 17, 21, 23, 

26 and 29 (02-218 1211) 

Palais des Beaux Arts Fri: Krystian 
Zimerman piano recital. Sat Marc 
Soustrot conducts Belgian National 
Orchestra and Brussels Choral 
Society in works by Faure, 

Chausson and Walton (02-507 8200) 

■ GENEVA 

A new production of Lohengrin 
opens at the Grand Ttefitre on Fri, 
conducted by Christian Thielemann, 
staged by Robert Carsen and 
designed by Paul Sternberg, with 
a cast headed by Thomas Moss’, 
Hartmut Welker, Eva Johansson 
mid Marilyn Zschau. Repeated June 
14. 17. 20. 24, 27, 30 (022-311 
2311) 

■ THE HAGUE 

AT&T Danstheater Tomorrow, 
Thurs, Fri, Sat Nederiands Dans 
Theater presents a programme 
inspired by Dutch constructivist 
painter Piet Mondrian, with new 
choreographies by Jiri Kyftan and 
Hans van Manen (070-360 4930) 

Dr Anton PhtQpszaai Sun afternoon: 
Alexandra Lascae conducts Bellitoni 
Symphony Orchestra and Chorus 
in Mahler's Second Symphony 
(070-360 9810) 

■ ISTANBUL 

The annual arts festival opens next 
week and runs tin July 12. The 
opening concerts on June 15 and 


16 are given by the Dresden 
PhBharmonic Orchestra conducted 
by Michel Ptasson, with piano 
soloist Bruno Leonardo Geiber and 
soprano HBdegarti Behrens. Other 
visitors indude the BBC Symphony 
Orchestra, the Brodsky Quartet, 
Shura Cherkassky, Julian Bream, 
James Galway and Nicolai Gedda. 
The native tradition is represented 
by the Turkmenistan and Bashkirian 
Folk Dance Groups, the Ayangfl 
Turkish Music Orchestra and 
Chorus, and foe Historical Music 
Ensemble of Istanbul. Information; 
Istanbul Foundation for Culture and 
Arts, Yikflz-Besiktas, 80746 Istanbul, 
Turkey, tel 212-258 3212 fax 
212-261 8823. Ticket reservations; 
Ataturk Culture Centre td 212-227 
7509. 

■ VIENNA 

Staatsoper Tonight, next Mon: 

Card iliac, with cast headed by Franz 
Grundheber. Tomorrow: Salome 
with Mara Zampieri and Simon 
Estes. Thurs, Sat Don Carlo with 
Luis Lima, Vladimir Chernov and 
Aprile MHk>. Fri, next Tues: La 
boheme with NeB Shicoff. Sun: Die 
Waikure with James Morris, 

Wattraud Meier and Jane Eaglen. 
June 21, 24, 28: Muti conducts Le 
nozze dl Figaro. June 27, 30; Tosca 
with Pavarotti (51444 2955) 
Musfkvanjm Tonight Alfred Brendef 
plays Beethoven piano sonatas. 
Tonight (Brahms Saai): Cecilia 
Bartdi song redtaL Tomorrow. 
Mirada Freni and Nicolai Ghiaurov 
sing Italian and Russian opera arias 
with Tonkunstier Orchestra. Thurs: 
Trevor P innock directs The English 
Concert in Mozart and Haydn, with 
mezzo Anne Sofia von Otter. Fri 


evening. Sat afternoon, Sun 
morning: Seiji Ozawa conducts 
Vienna Philharmonic Orchestra In 
Nielsen, Stravinsky and Strauss. 

Fri (Brahms Saai); Oleg Maisenberg 
piano redtaL Sun: Georges Pr&tre 
conducts Mendelssohn's Elijah (505 
8190) 

Konzerthaus Tomorrow: Zottan 
Kocsis piano recital. Fri: Heinrich 
Schiff is conductor and cello soloist 
with the Orchestra of the Vienna 
Musikhochschule (712 1211} 

■ WASHINGTON 

• The main summer show at 
Kennedy Center Opera House is 
Miss Saigon, the musical love story 
set during the Vietnam War. Opens 
tonight (202-467 4600) 

• Mstislav Rostropovich conducts 
National Symphony Orchestra and 
Chorus In Verdi's Requiem on Thurs, 
Fri, Sat and next Tues at the 
Kennedy Center Concert HalL The 
soloists include Denyce Graves and 
Willard White (202-467 4600) 

• David Zinman conducts 
Baltimore Symphony Orchestra on 
Thurs, Fri and Sat at Baltimore's 
Joseph Meyerhoff Symphony Hall. 
The title of the programme is Kurt 
Weill on Broadway (410-783 8000) 

• The Jeffrey Ballet is in residence 
at Wolf Trap on Thurs, Fri and Sat. 
The programme, entitled Billboards, 
is set to music lay Prince and 
features choreography by Laura 
Dean, Charles Moulton, Peter Pucci 
and Margo Sappington. This 
month's Wolf Trap programme also 
includes a jazz and blues festival 

on June 25 and 26. with a line-up 
headed by Milton Nasdmento raid 
Dave Holland Quartet (703-255 
1860) 


• Washington Shakespeare 
Theater's production of King Lear 
runs till July 2, in repertory with 
Samuel Beckett's Waiting for Godot 
(703-739 9886) 

■ ZURICH 

Opemhaus Tonight, Fri: Un balls 
in maschera with Vincenzo La Seda, 
Giorgio Zancanaro and Gabriele 
Lechner. Tomorrow, next Tues: 
Nikolaus Harnoncourt conducts 
final performances of Helmut 
Lohneris new production of La Belle 
H6&ne, with cast headed by 
Vessel irta Kasarova and Deon van 
der Wait Sab Mozart ballet evening, 
choreography by Bemd Bienert 
Sun; Don Carlo with La Scola, 

Nicolai Ghiaurov and Gabriela 
Benackova (01-262 0909) 

Tonhalte Tonight, tomorrow, Thurs: 
Claus Peter FI or conducts Tonhalle 
Orchestra in works by Haydn and 
Shostakovich, with piano soloist 
Rudolf Buchbinder. Fri: Zurich String 
Sextet plays Brahms, Kirchner and 
Tchaikovsky. Sab Edmond de Stoutz 
conducts Zurich Chamber Orchestra 
In a Mozart programme, with piano 
soloist Alicia de Larrocha (01 -261 


Schauspielhaus Tonight, tomorrow, 
Fri, Sun: new production of 
Pirandello’s Man, Beast and Virtue, 
directed by David 
Mouchtar-SamoraL Repertory also 
includes DOrrenmattis The visit, 
David Mamet's Oleanna and a 
studio production of John Osborne’s 
Look Back in Anger (01-221 2283) 


ARTS GUIDE 

Monday: Berlin, New York and 
Parte. 

Tuesday: Austria, Belgium, 
Netherlands, Switzerland, Chi- 
cago, Washington. 
Wednesday: France, Ger- 
many, Scandinavia. 

Thursday: Italy, Spain, Athens, 
London. Prague. 

Friday: Exhibitions Guide. 

European Cable and 
Satellite Business TV 

(Central European Time) 
MONDAY TO FRIDAY 
NBC/Super Channel: FT Busi- 
ness Today 1330; FT Business 
Tonight 1730, 2230 


MONDAY 

NBC/Super Channel: 
Reports 1230. 


FT 


TUESDAY 

Euronews: FT Reports 0745, 
1315, 1545, 1815, 2345 

WEDNESDAY 

NBC/Super Channel: FT 
Reports 1230 

FRIDAY 

NBC/Super Channel: FT 
Reports 1230 

Sky News: FT Reports 0230, 
2030 

SUNDAY 

NBC/Super Channel: FT 
Reports 2230 

Sky News: FT Reports 0430, 
1730; 






I 



Spirit of new 
trade order 


Peter Sutherland on making 
the Uruguay Round effective 



Peter Sutherland; WTO Is a response to global economic changes 

vices, are designed to expand 


I doubt there 
were many 
Financial 
Times readers 
who failed to 
heave a hearty 
sigh of relief in 
April when 
ministers 
signed the Uruguay Round 
deal in Marrakesh. Relief, 
partly because most of them 
must have felt war-weary after 
eight years of reading about 

seemingly int e rminab le negoti- 
ations and partly - perhaps 
predominantly - because they 
understood just how vital the 
deal really was. 

The results of those negotia- 
tions will be implemented as 
from January 1 1995 when the 
World Trade Organisation 
comes into being. One can only 
hope that the major players 
will not make the process of 
ratification - which is required 
before we can finally confirm 
the implementation date — into 
an agony of indecision and 
delay- The birth of the WTO 
should not be held hostage to 

domestic political in-lighting — 

nor to transient trade squab- 
bles. which tend to be of mind- 
withering inconsequence whan 
measured against the crucial 
importance of the new multi- 
lateral trading system. 

But even when the WTO is 
in place there will be a tempta- 
tion. in some capitals at least, 
to revert to “business as 
usual"; perpetuating the same 
kind of preoccupations, justi- 
fied or not, with respect to 
bilateral trade balances, 
alleged “ unfairness " in trading 
practices and so go. it is impor- 
tant that we recognise that the 
WTO is a response to continu- 
ing global changes, economic 
and otherwise, and that, as a 
consequence, its activities have 
to be seen against a back- 
ground of much more than big- 
power trade politics. 

It will be a truly multilateral 
institution seeking multilateral 
responses to the economic 
problems faced by a large con- 
tinuum of countries. This is 
not to talk of “world govern- 
ment”; it is simply to face up 
to the inter-linkages between 
economies. It is also to reassert 
the spirit of the Uruguay 
Round in finding meaningful, 
practicable approaches, accept- 
able to aR which drive forward 
the creation of wealth and sus- 
tainable development 
Establishment of the WTO 
does, though, call for a new 
commitment to co-ordination 
in economic policymaking. 
Why? Think for a moment 
about one key preoccupation of 
most governments at present; 
education and training in 
context of unemployment. 


There is a convincing argu- 
ment that expanded trade 
between the developed and 
developing worlds has, in the 
past few decades and particu- 
larly since the mid-1980s, led to 
significant employment shifts 
in both. And it is not a simple 
matter of jobs lost and gainkL 
WhDe the extent of jobs lost in 
certain industries and gained 
in others in the developed 
countries can be debated, it 
bppttik dear that trade with the 
developing countries has 
tended to flavour the skilled 
against the unskilled and exac- 
erbated the gap between them. 
At the same time, in develop- 
ing countries, export-oriented 
policies have encouraged a fas- 
ter rate of learning and invest- 
ment in education. This has 
opened up a gap between those 
with little or no education, 
who are unlikely to be 
involved in anything but the 
most r udimentar y manufec tur- 
ing activity, and those with at 
least a hasin level of education. 

This is an important observa- 
tion. The results of the Uru- 
guay Round, and particularly 
those related to increased mar- 
ket access for goods and ser- 


trade; certainly between devel- 
oped and developing countries 
and those countries in the pro- 
cess of economic reform. Thus, 
the impact of recent trade 
growth on skill demands and 
on the gap between drilled and 
rmskflled , pdn rated and unedu- 
cated may be reinforced and, 
perhaps, accelerated over sev- 
eral decades. 

N or is it just conces- 
sions on market 
access which will 
spur demands on 
education and training. New 
opportunities will be opened 
up through the int el l ect™! 
property agreement - encour- 
aging technology transfer, for 
instance - and the services 
deal will lead to the establish- 
ment of foreign service provid- 
ers requiring skilled, educated 
employees. And this should not 
be seen as a one-way process; 
opportunities for the develop- 
ment of new skills will be as 
great in industrialised as in 
developing countries. 

The real question that arises 
is whether we are thinking 
hard enough about the marhin- 


ery which will help govern- 
ments identity and respond to 
such trends. 

After all, it is evident that 
the mos t i mpor tant influences 
on national economies are 
now, and will be increasingly, 
outside their borders. As a con- 
sequence, most governments 
will be left with few policy 
instruments with which to 
attempt to affect the perfor- 
mance of their own economies. 
If that is the case t hen It is 
vital that the international 
machinery be effective. 

I have argued previously 
that tiie present machinery of 
tiie G7 is now inadequate. On 
almost every measure, ft is an 
unrepresentative organism 
and, consequently, its delibera- 
tions ggfrkuri have Tnoarnn g qj- 
relevance for countries outside 
the select group - not always, 
indeed, for those inside, That is 
a big loss. The fact is that the 
G7 countries must recognise 
that they cannot take sole 
responsibility for the broad 
thrust of economic manage- 
ment without adequate partici- 
pation of the countries repre- 
senting new dynamic markets 
in the developing world. There 
is a need for a grouping of 
countries that can be more 
effective and representative 
with some participation, per- 
haps, cm a rotating 
But the key to tnafcfag such 
a group effective is not only 
represe n tation but the input 
participants receive. Here, the 
multilateral insiihiihmui must 
now get their act together. 

At present we have a multi- 
tude of researchers and ana- 
lysts in a multitude of organi- 
sations producing countless 
papers and reports to be added 
to th o s e produced by govern- 
ments themselves. Why 
the organisations concerned 
with money, finanne and trade 
— Trtfomarirvnai Monetary 
Fund, the World Bank and the 
WTO - not evolve a single 
coherent statement on issues 
of economic concern to a repre- 
sentative forum of the world's 
leaders? And in order to ensure 
implemen tation of deci- 
sions reached, the same organi- 
sations should co-ordinate 
more effectively to give strong 
institutional support 
One thing is for sure. We 
must concentrate on the 
long-term Implications of the 
agreements which have been 
reached and must be imple- 
mented by the WTO and on the 
way in which this new multi- 
lateral trading system wUl 
spur new approaches to global 

e rnnamte management 

The author is (Erector-general 
of the General Agreement on 
Tariffs and Trade 



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Hand-up, not hand-out 



Its jobs, stupid. 
The Clinton 
campaign’s 
famnng phiaS8 

should be thus 
restated in 
time for the 
next British 
general elec- 
tion. The Apririhig issue could 
be employment policy. That 
would not necessarily be to the 
disadvantage of the Conserva- 
tives. Since 1979 they have won 
most of the a rgum ents. As 
soon as the Labour party has a 
new leader ft had b et t er find 
out why, arid what to do about 
it. A bogus ww H tiriti n gnt to full 
employment will not suffice, 
except perhaps as a cynical slo- 
gan. What Labour needs is a 
credible social and economic 
programme. At present it has 

This is not to belittle Mr 
Tony Blair, the likely winner 
of a leadership contest. He 
talks of national renewal. He 
also espouses the development 
of the individual through a 
return to the values of the fam- 

fly and the wmw mri ty. Such a 
sermon could win converts, 
but it would not guarantee vic- 
tory. For that Labour n eeds a 
believable set of economic pro- 
posals, a strategy that comforts 
the electorate, a story that con- 
vinces voters that they would 
be better off if they threw the 
Tories cut 

To his credit, Mr Gordon 
Brown has cleared the way for 
some of the necessary rethink- 
ing. The shadow chancellor 
has worked hard to reposition 
the Labour party. He and his 
colleagues now run a mile 
from any thin g that could 
imply an increase in personal 
taxation. The party is no lon- 
ger associated with devalua- 
tion. ms central message is 
that Labour would fit people 
for the 21st century job market 
by better education and life- 
time opportunities for retrain- 
ing. The Conservatives have 
expressed their admiration by 


awing bits of it Mr Brown 
further distinguished himself 
last week by stepping aside to 
allow Mr Blair a dear run at 
the leadership. He was right A 
man who speaks in capital 
letters would be unlikely to 
soothe tire an xi eti es of waver- 
ing voters. He could do his 
cause a further service. He 
could challenge his party’s 
long-standing beliefs about der- 
egulation, the minimum wage, 
anH imwiplflpait benefit 
I have chosen those three out 
of a potentially longer list 
because the new leader, be ft 
Mr Blair or his likely rival Mr 
John Prescott will be asked 
about thgm_ The debate could 

begin next 

Monday. The 
GMB general 


union has 
invited con- 
tenders for the 
Labour leader- 
ship to appear 
before its dele- 
gates in Black- 
pool on Mon- 
day afternoon. 

Mr Prescott 
believes that ft 
is his duty to campaign for a 
commitment to full employ- 
ment if only to force Mr Blair 
to reveal his hand. Touching as 
it may seem, Mr Prescott 

regards a rihallpng g by himself 

as an endeavour to ensure that 
the new emperor has clothes. 
Violins, please. Self-sacrifice 
has become chic in the Labour 
party. The only danger is that 
he might win. Happily, it is 
slight 

What wiD Mr Blair say? He 
appears to have handed the 
economic portion of his brain 
to Mr Brown for education and 
training. One or both of tham 
will doubtless study a special 
report due to be published by 
the OECD tonig ht This shnnlri 
put persistent structural unem- 
ployment high on the political 
agenda. It is too closely argued 
to be disposed of in a few head- 
lines, but the thrust of it 


favours the Conservative 
approach to labour market reg- 
ulation, tax policy, social secu- 
rity contributions, and the 

minimum wage. Education y 
training is also on the OECD s 
lengthy menu of proposed job- 
creation policies, but the peo- 
ple’s party will find little sup- 
port for its current thinkin g in 
most of the other items. 

Alternatively, the putative 
loader of the opposition may 
tom to Mr Robert Reich, Mr 
Clinton’s secretary of Labour. 
Mr Reich has been all over 
London town. He spoke at a 
G uardian seminar on Sunday 
and delivered a lecture organ- 
ised by the Labour think-tank. 

the Institute 

for Public Pol- 
icy Research, 
yesterday. He 
has a tale of 
woe to tell, 
about the US 
being the most 
unequal society 
in the world, 
with Britain 


Labour should 
beware. Any 
promise of full 
employment 
would be hollow 
without reform of 
the welfare system racing to catch 

up with that 
dismal record. 
Jobs, and wage increases, are 
gnin g to the "problem-solvers,” 
people with university degrees. 
The unskilled and uneducated 
are today's losers. Like every- 
one else, Mr Reich favours 
more training and better edu- 
cation. That said, his further 
arguments give little support 
to an inadequately modernised 
Labour party. 

He is lukewarm about 
increases in the US’s generally 
low minimum wage. How low 
would Mr Blair put the floor in 
Britain? Mr Reich acknowl- 
edges the high cost in jobs 
foregone of continental 
Europe’s regulated and highly 
taxed labour market President 
Clinton's reemployment legis- 
lation is designed to get people 
off social benefit In the 1980s it 
might have been called work- 
fare. On the morning of black 
Wednesday in 1992 I heard the 


president campaign on this 
thorn* in Watts county. In last 
autumn's British budget the 
Conservatives announced a 
new "job-seekers’ allowance'’. 
It cuts the time on benefit from 
12 to 6 months and obliges 
claimants to look for work or 
accept training schemes, 
Labour is awaiting the report 
of its social justice commission 
on this subject Its Iwutarahlp 
candidates should beware. Any 
promise of full employment or 
a move towards ft, would be 
hollow without some reform of 
the welfare system. The Ameri- 
can slogan ”a hand-up rather 
than a hand-out” would do. 

Mr Reich has other pots sim- 
mering. One contains a school- 
to-work apprenticeship pro- 
gramme; another a tax credit 
system for low-paid workers. 
Britain's Tory administration 
Introduced family credit for 
low-paid employees and 
national vocational qualifica- 
tions that could became goals 
for apprentices. As with all job- 
creation programmes, none of 
these is itself a solution, but 
together the complete Reich 
package may add up to some- 
where between harmless and 
mildly beneficial. 

Labour is trapped between 
the tempting haven erf conti- 
nental Europe, whose comfort- 
able conditions for employees 
cannot be sustained, and the 
awful example of America, 
whose 1980s deregulation has 
destroyed whole layers of soci- 
ety. Thera is no magic third 
way, certainly not one that 
ends with everyone who wants 
a job getting one. Subsidies 
rarely work. You have to settle 
for less regulation and less wel- 
fare if you want more people in 
jobs. The question is how 
much less. If Mr Blair becomes 
leader he will have to teach his 
party these facts of life. Then, 
with Mr Brown, he should 
assemble a package that out- 
flanks the Conservatives. The 
alternative is hot air, and 
another Tory victory. 


LETTERS TO THE EDITOR 


Number One Southwark Bridge, London SE1 9HL 

Fax 071 873 5938. Letters transmitted should be dearly typed ana not hand written. Please set fax for finest resolution 


Managements should pay for bad advice 


From Mr Alan Saunders. 

Sir, Your editorial, “More 
knocks for the P1A* (28 May), 
is yet another example erf the 
divergence that is taking place 
away from the real issue. L for 
one, have become increasingly 
frustrated at the Inability of 
the Treasury and Securities 
and Investments Board to 
avoid politicisation of the 
issues involved and at their 
unwillingness or inability to 
grasp the fundamental points 
which are, or should be, ample 
and dear. 

First, the structure of regula- 
tion as proposed by the Per- 
sonal Investment Authority is 
having, and will encourage, an 
anti-competitive result (this 
being directly contrary to the 
Treasury's stated intention); 


an increasing number erf inde- 
pendent financial advisers are 
giving up the business. 

The effect of the proposed 
new regulatory structure is to 
encourage “bank-assurance” 
and the like to the obvious and 
long-term detriment of true 
independent advice. 

Second, protection for the 
individual investor could be 
considerably strengthened 
within the existing regulatory 
framework and without the 
need for a PIA. Existing regula- 
tions do already impose direct 
penalties on the perpetrators of 
bad or fraudulent advice. How- 
ever, to fine an insurance com- 
pany punishes the ahflrehnlri- 
ers and/or the policyholders of 
that company and does not 
punish those responsible, that 


is, the managements which 
have allowed ftp salesman too 
imirh latitude. If the existing 
regulators ™hp sure that t he 
managements were individu- 
ally fined, than thp industry 
would see a very rapid and 
effective clean-up of its 
operations. Let it not be over- 
looked that most of the recent 
mis-seDing of pension transfers 
was made by those employed 
by the insurance companies 
and hanks, not by independent 
advisers. 

Third, while no legislation 
will be able completely to deter 
the occasional fraudster, rec- 
ompense to those injured 
should come from a compensa- 
tion fund created directly from 
a product levy. 

Perhaps it is naive to Imag- 


ine that the expansion of the 
regulation industry (for that is 
what it has become) could how 
be slowed down when there are 
so many people now involved, 
all with their large salaries, 
final salary pension benefits, 
personal assistants, secretaries 
et al and, of course, individual 
spheres of political influence. 
It would be nice to see, or even 
hope for, a return to common- 
sense, rather than witness this 
continued expansion, knowing 
we in financial services have to 
pack up tiie tab and that, in the 
long run, the investment buy- 
ing public will suffer. 

Alan Saunders, 
managing director, 

Saunders French & Co, 

Cruigie Had, 6 Rowan Road. 
Glasgow G41 5BS 


Contracting out by no means clarified 


Small firms 
not lacking 
advantage 
in Europe 

From Dr Michael JBurcher. 

Sir, Mr Gerald Frankel and 
Mr Ben Coleman are quite 
wrong to put forward their 
view that only the largest com- 
panies can afford to commit 
resources to ensuring that new 
European standards are not to 
their disadvantage (Letters, 
June l). Industry organisations 
and trade associations have a 
key role in the negotiation of 
CKN (European Committee for 
Standardisation) standards. 
Industries which have organ- 
ised to meet this challenge 
through associations do so at 
very modest cost to Individual 

mprwhpr F- 

Tbe existence of the Euro- 
pean standards system is a 
matter of fact Inadequate rep- 
resentation or poor perfor- 
mance in a standards negotia- 
tion can lead to products being 
standardised out of existence. 
On the other hand, a success- 
All nggntijrtinn can 

offer a significantly greater 
market to a product which 
meets the new standard. 

Virtually all players, large 
and small, in the UK galvanis- 
ing sector give solid support to 
their industry organisation, 
finance it at a realistic level 
and look to it to deliver full 
value in European standards 
negotiations. Mr Frankel and 
Mr Coleman would do well to 
encourage the same approach 
elsewhere. In this way UK 

business inerts the r-haTTangft 

of business from other EU 
states with equal strength. 
Michael Burcher, 
director, 

Gahxmtsers Association, 

Wrens Coat, 

56 Victoria Road, 

Sutton Coldfield 872 1$Y 


From Dr John McMullen. 

Sir, May I comment on your 
feature on the revision of the 
Acquired Rights Directive, 
which protects employee rights 
on transfer of undertakings, 
(“Government near victory on 
contracting-out reform”. May 
31)? In particular, will the 
revised directive solve a prob- 
lem for contractors, currently 
affected by wide interpreta- 
tions of the present directive? 
You are right to draw attention 
to the fact that the revised 
directive declares that the out- 
sourcing of only an activity of 
an undertaking does not in 
itself constitute a transfer of an 
undertaking. This is underpin- 
ned by the preamble which 
makes it clear that the princi- 
ples of “legal security” demand 
a clear distinction between 
transfer of undertakings and 
transfers of only an activity. 

I wonder whether, however, 
celebrations may be prema- 
ture. The directive goes on to 


state that a transfer of an 
undertaking shall be consid- 
ered to have taken place in 
cases where together with the 
transfer of an activity an eco- 
nomic entity which retains its 
identity is also transferred. 

The revised version of the 
directive makws it (dear that 
there is a distinction between 
the bare contract for services 
and a transfer of an undertak- 
ing. But it should be noted 
that, in the recent European 
Court case of Christel S chmidt 
(the outsourcing of a cleaning 
operation) and in the Court of 
Appeal case of Dines v Initial 
Health Care Services (the 
changeover of contractors pro- 
viding cleaning services to 
Orsett Hospital), it was specifi- 
cally found that there was a 
transfer of an economic entity 
retaining its identity. 

It is certainly arguable, 
therefore, that these cases 
would have been decided no 
differently, even if the revised 


directive had been in place. If 
that is the case, tribunals and 
courts battling with the 
revised version of the directive 
(if adopted) may find in many 
cases that the distinction 
between the transfer of an 
activity and the transfer of an 
activity that amounts to an 
economic entity which retains 
its identity is extremely hard 
to pinpoint Any view that the 
new definition of a transfer is 
more restricted will depend on 
the interpretation of new word- 
ing in the directive’s preamble 
that “an economic entity [is] 
understood to consist of sev- 
eral parts operating autono- 
mously and pursuing a specific 
objective . . .” However a lot 
more work needs doing on the 
draft directive if real clarity is 
to be achieved. 

John McMullen, 
partner and head of 
the employment unit, 

Simpson Curtis, solicitors, 

41 Park Square, Leeds LSI2NS 


for Post Office 

termail and the Queen’s b«»d 
on the political centre stage. 
Letter mall should, of course, 
ultimately be privatised, with 
simultaneous abolition of the 
monopoly. Deliveries to the 
Isle of Mull could be protected 
either by direct state subsidy 
or by the inhabitants paying a 
commercial rate. The use of 
the Queen’s head could either 
be discontinued or, better 
licensed with the royalty going 
to royalty. 

Those who wish the Post 
Office well should not be 
deceived into believing all will 
be safe if the state retains own- 
ership and control. Such con- 
troican only bring paralysis 
leading to the ultimate destruc- 
tion of the business. 

George Guise. 

90 Long Acre, 

London WC2E 9RA 


No privatisation means paralysis 


From Mr George Guise. 

Sir, It is good that the gov- 
ernment is at last to propose 
privatisation erf the Post Office 
alffinng h a frill sale of the com- 
ponent parts would make more 
c omme rcial sense than partial 
retention of public ownership. 

The privatisation legacy of 
the 1980s. which has enhanced 
both the quality of customer 
service as well as national 
return on capital throughout 
all the privatised sector, has 
left the Post Office out of kilter 
with everything around it It 
cannot modernise and re vamp 
its assets without meeting 
Treasury opposition. It cannot 
participate in a joint venture 
with, for example, an air 
freight operator, or make an 
acq uisition without that bang 
caned a nationalisation. It is 
therefore currently held in a 


full Nelson, one arm finan- 
cially and the other arm politi- 
cally. For any business this 
would be bad, but for a com- 
munications business it must 
mean long-term deteriora tion 

Because of recent organisa- 
tional improvements, the Post 
Office is currently throwing off 
net cash to the exchequer and 
therefore assisting in public 
borrowing reductions. It has 
been fiscally convenient to 
milk this cow while indecision 
about privatisation continued. 
A normal business would be 
using a good part of this cash 
flow to protect and enhance its 
fixture competitive position. 

There are several parts of 
the Post Office which could be 
privatised in their entirety, 
such as Parcelforce, and the 
Counters business, without 
putting the thorny issue of Let- 


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FINANCIAL TPMOES TUESDAY JUNE 7 1994 


FINANCIAL TIMES 

^Number One Southwark Bridge, London SE1 9HL 
“ " Tel: 071-873 3000 Telex: 922 186 Fax: 071-407 5700 

Tuesday June 7 1994 


Future of 




The fiftieth anniversary of the 
conference at- -Bratton Woods is. 
focusing attention on the Interna- 
tional Monetary Fund and the 
World Bank. Completion of the 
Uruguay- Round is set to trans- 
form the General Agreement cm 
Tariffe and Trade into the World 
Trade Organisation. The end of 
the secretary-general's, current 
term of office r in September ought- 
to force a similar re-evaluation of 
the Organisation for Economic 
Co-operation and Development 
What justifies such reappraisals 
is not these anniversaries, but fun- 
damental political and economic 


changes. Institutions that' under- 
pinned past successes must be 
kept up-todate, if they are to 
serve well, to future. . - - ■ 
The OECD is unique by- virtue of 
its limited membership, now 25 
(foDowing Mexico’s accession in 
April), along with the wide range 
of azeaa.it covers. These include 
ah aspects of economics; statistics; 
agriculture;- -'trade; energy; the 
en vko m n fin t : public sector man- 
agement; education. employment 
and social-affairs; science, technol- 
ogy and. hxdae^ry;- and fiscal. 
financial and Tfoamess policies. 


Affiliated to.it are the Interna- 
tumal Energy A@mcy and centres 
for advising former communist 
countries fold research on eco- 
nomic development 
Many ' -sl gfrifirant initiatives 
have emerged frmn discussions in 
the OECD, since it -replaced in 
1961 the Organisation for Euro- 
pean Economic Co-operation, itself 
theoverseerof the Marshall Han. 
One was how best .to respond to 
the struc tur al shocks of . the 1970s. 
Another/was. thu' secretariat's 
analysis of -.producer and oon- - 
EumErsd^dyeqidvalfiiits in agri- 
cultare. Yd another is the effort, 
on the agenda of this week's min- 
isterial meeting, to promote a con- 
sensus measures to lower 
uncmploymelit The OECD plays a 
central rule in the preparation of 
mternatipnally .comparable statis- 
tics, which hdp debates on such 
snbjectsirfe^w«^ng and the 
envii^na^FltrSs also become 
the<jusenforanrfor negotiations - 
Jjo limltjnbMdies.i^D shipbuilding 
and export. credit -i- . 

The Q02D needs to remain the 
focal pdpt for toter-governmental 
fiscusston of this wide range of 
topics.. But it will also have to 


change. The Czech Republic, Hun- 
gary, Poland and Slovakia are 
banging on the door. Argentina, 
Chile, and Brazil, with which the 
OECD has contacts, might become 
members, following Mexico. In 
east Asia, there are several coun- 
tries that might follow South 
Korea, due to join late next year. 

In principle, the OECD should 
embrace all advanced market 
economies. But it must not 
become as unwieldy as the United 
Nations. This be managed 
cmly by alterations in the way it is 
now ran. The current principle 
that all members are entitled to a 
seat at virtually all tables will 
have to end. Smaller members 
could be grouped into constituen- 
cies. Regional subgroups could be 
established. Subgroups might also 
be formed out of those interested 
in particular topics. 

Also necessary is streamlined 
decision-making. At present una- 
nimity is the rule. Weighted vot- 
ing would help facilitate executive 
decisions in a larger, more diverse 
gro u ping. Such a change in voting 
should help a secretary-general 
determined to stay a more power- 
fid role in shaping the global pol- 
icy-debate. 

Much depends on who is the 
successor to Mr Jeandande Faye, 
who has been in place for 10 years. 
Challenging the French incum- 
bent are Mr Donald Johnston, a 
former Canadian minister Kpr-fenH 
by the US, and two other Euro- 
pean candidates - Lord Lawson, 
the former UK ehanerilnr of the 
exchequer, and Mr Lorenz Schom- 
ems, a senior German economics 
ministry official All of these can- 
didates have merits, though none 
seems to have the perfect blend of 
intellectual weight, political clout, 
dip lomatic ability arid administra- 
tive experience. Probably Lord 
Lawson comes closest 
As David Henderson, former 
head of the economic department, 
has pointed out “OECD has nei- 
ther money to offer nor the power 
to give instructions; but what hap- 
pens there can have mflnHnnp on. 
governments and a wider public 
opinion, if the work of the organi- 
sation is professionally competent, 
objective and timely.” The nest 
head of the OECD most above all, 
be someone able to initiate 
and promote such work to gov- 
ernments and to a wider public. 



wars 


Since Os late 1980s, multinational 
managers have been repeatedly 
urged to; N think global, hut act 
locaT*. When first coined, the 
axiom was Extended to correct the 
then common misconception that 
the opening of international 
markets meant that consumer 
demand was i de n ti cal everywhere. 
Today, there i& arwealth of : bad- 
ness school case studies demon- 
strating the error of that assump- 
tion. 

However, the recent war of 
words between Procter & Gamble 
and UnSever, two of the world's 
biggest consumer goods manufac- 
turers, suggests a rather different 
conclusion- The hostilities centre 
on PSA's a ll e ga tio ns that a new 
Unilever detergent, which con- 
tains a patented cleansing technol- 
ogy, rote clothes. 

The origin of Unilever's embar- 
rassment Hes bed: In the difficulty 
- bm to the relative ease - of 
marketing across borders. That, 
mdeed,'.has become essential In. 
the detergents industry, where 
steadily fiercer competition has 
eroded producers* traditional posi- 
tions in na ti onal markets. Increas- 
ingly, success depends on 
being the first to develop new 
products and launch them 


simultaneously on many world 
markets. 

Though P&G's allegations may 
prove baseless, and Unilever’s 
faith in its new product vindicated 
by consumers, the incident points 
to a wider lesson. As pressure 
grows an manufacturers to inno- 
vate faster and expand their sales 
efforts across borders, they are 
also obliged to confront modi big- 
ger risks. In the days when they 
began by selling products just an 
their home markets, any hiccups 
could be attended to before they 
were launched abroad. Today, 
they can become a global head- 
ache from day one. 

Furthermore, the advantages 
procured by global product 
launches can be short-lived 
because they can often be quickly 
copied by competitors. Unilever 
has sought to combat that prob- 
lem by using patented technology 
to its new detergent But that is 
difficult to most other consumer 
products: From fee cream to nail 
varnish, makers of good new 
products invite ever earlier a 
horde of global imitators. For 
them, the challenge of the 1990s is 
no longer learning how to cross 
borders, but how to survive there- 
after. 


Revive the OAU 


South Africa's ‘admission to the 
Organisation af^African Unity at 
the weekend wiH provide an 
opportunity to breathe new life 
into a discredited body. Since Its 
inception to 1969 the OAU has 
teen preoccupied by apartheid, 
bat its contribution to -the ending 
of minority rule was negligible. 
Instead "South Africa became a 
convenient raflytog point for lead- 
ers wishing to^xttvert attention 
from their failures at home. 

OAU ■■ ..-summits . rightly 
tenomiced mtyrity.role In South 
Africa, but ignored human rights 
abuses to 'member- states. The 


nde as a mediator to African con- 
flicts. ft belatedly recognised the 
continent's economic "crisis, but 
still Seeaas r^uctaat to endorse 
tte fundarnortids of structural 


Some of the-mora forthright 
" J ajcb-as Uganda's Yowerl 


, OAlTs per- 

fcsmance. But-only President Nel- 
^Mandefacan bring toe combi- 
nation of quafities that the OAU 
heeds if /rejuvenated: 
®raa) authority,: economic clout, 
muscle and, above all. the 
“spiratktoor^uto Africa’s suc- 


cessful transition to democracy. 

' If one looks elsewhere for a fig- 
ure with the right to speak for the 
region, one searches to vain. The 
first generation of post-indepen- 
dence African leaders are mostly 
dead and/or discredited. Many of 
their successors are even less fit 
ted to the task. They pay lip ser- 
vice to democracy, line their pock- 
ets, and allow economic reform 
programmes to lapse. 

When he addresses the summit 
next week, Mr Mandela, should set 
out the OAU’s post-apartheid 
agenda. It can strengthen its com- 
mitment to democracy by encour- 
aging and monitoring all mem- 
bers' elections. It should make 
mediation a priority, and co-ordi- 
nate its peacekeeping role with 
the UN. It can tackle corruption 
with the help of Transparency 
International, the recently- 
founded f-ampaig n for a universal 
code of business conduct. It 
should invite rigorous nondttional- 
tty in return for bold western ini- 
tiatives to resolve the external 
debt burden. Above ah, Mr Mand- 
ela needs to inspire and harness 
the same energy and commitment 
that helped Africa win indepen- 
dence and gave the OAU its raison 
d'etre. 


T he European Commis- 
sion must rrtflfrg up Its 
mind tomorrow whether 
its rescue plan for the 
.steel industry is dead, 
alive, or to suspended wniwiafiim. 

Three weeks ago, the answer 
seemed dear. Mr Karel Van Miert 
competition commissioner and co- 
architect. of the plan to cut surplus 
steel-making capacity, confessed to 
failure. “We have fallen well short 
of our target,” he declared. “The 
plan is dead.” 

Mr Van Miert's pronouncement 
Spread confusion through Europe's 
steel industry. In spite of his out- 
burst,, toe Commission has since 
worked hard to rebuild the shat- 
tered girders of its steel policy. For 
without a guiding band fro m Brus- 
sels, officials believe the industry 
has few incentives to cut the EU’s 
surplus of l9m-26m tonnes of steel 
products a year. 

Officials insist that the EU rescue 
plan is the best hope of preserving 
Brussels' controls on state aid. 
“Without this political framework 
plan, we risk a free-for-all on state 
aid to a market which remains 
extremely fragile,” says one Com- 
mission steel expert 
Inevitably, questions are being 
raised about Mr Van Mzert and his 
motives for disavowing a plan with 
which he was intimately associated. 
The answers reveal much about the 
toner workings of the Commission 
as the 10 -year reign of Mr Jacques 
Delore as president draws to a close. 

Mr Van Mfort, a protege of Mr 
Delors, has tried, every trick to 
cajole steel-makers into making 
cuts, but he has struggled to over- 
cams the resistance of the state- 
owned and private sector, which 
can usually count on *mfinwni gov- 
ernments for support: 

• In Spain, Prime Minister Felipe 
Gonzfilez extracted a high price for 
closing capacity in the volatile 
Basque region, winning approval 
from Brussels for the construction 
of a modem steel plant at Sestao. 

• In Italy, a reluctance by the 
Commission to undermine a reform- 
minded government slowed down 
capacity cuts to 1998. Today, efforts 
to atimfnata steel wfnft in the north- 
ern Bresdaxd region remain sensi- 
tive for the new Berlusconi govern- 
ment and its Northern League 
coalition partners. 

• In Germany, Chancellor Helmut 
Kohl has fought to protect the Ekos- 
fa>bi plant m former East Germany, 
to West Germany, toe failure to 
close the loss-making Kteckner 
works near Bremen last year was a 
hammer blow to the EU plan. 

In the more liberal camp, the UK 
and the Netherlands have remained 
sceptical about the effectiveness of 
the Co mmi ssion’s role, partly 
because information on closures 
and state aid from member states is 
inadequate. Private companies such 
as the British Steel Corporation 


Booked 


P olish men used to take 
their gallant reputation 
seriously: this is a country 
where coal miners would 
kiss a lady's hand on introduction 
at the picket line, But since the 
collapse of communism. Polish 
women to search of a white fright 
turn increasingly to Polish transla- 
tions of romance novels published 
by the local subsidiary of Canadian- 
based Harlequin company. 

Over the past two years, Polish 
women, like those to Hungary and 
the Czech Republic, have fallen for 
the western charms of Harlequin 
heroes as avidly as their men have 
taken to the western pornography 
once banned by communist censors. 
While the competition to satisfy 
eastern Europe’s appetite for por- 
nography is fierce, over the past 
three years Harlequin, which trades 
to the UK as Mills and Boon, has 
managed to establish the same mar- 
ket dominance east of toe Elbe that 
it exerts to western Europe and 
North America. 

More than 90 per cent of the 24m 
romance novels sold to Poland last 
year were Harlequins, and the com- 
pany enjoys similar sales levels in 
Hungary and the Czech Republic. 


Scrabbling in 
Toytown 

■ Who will finally bag J W Spear, 
the UK owner of Scrabble? Will 
it be mighty Mattel manufacturer 
of Barbie, aged 35? Or wifi Hasbro, 
handler of Stody, 33, finally win 
through? Hasbro was first, valuing 
Spear at almost £47m, but Mattel 
squeezed to last Friday, valuing 
itat£52m. 

Observer understands the matter 
has already passed into the hands 
of two top executives, charged with 
thrashing out a compromise. Here's 
an excerpt of a crucial weekend 
phone call 

S: Whaddya mean by this, tryin’ 
to upstage ma show? Old man Spear 
has already said he's happy with 
us. 

B: Off your high horse, gaL All’s 
fair in love, war and business. The 
other Scrabble guys go for me. 

S: Cheapskate! Flashing: your legs 
ain't gonna make no difference. 

B: At least I got legs worth flashing 
- punters paid more than $lbn for 
me last year. And I got 55 per cent 
of the fashion doll market You 
only got 32 per cent, honey. 

S: You ain't got a decent pedigree, 
sweetie pie. Ah’m British, through 
nnd through- 

R- British? Don't crease me up. You 
ain't been British since 1986. 

S: I jest know that Spear likes my 
looks better than yours. 

B: Butt out, kiddo - your looks 
were a damn sight better before 


Girders fall back 
into place 

Lionel Barber says Europe’s rescue plan for the steel 
industry may be revived in a more acceptable form 


EU steel industry: rescue plan resuscitated 


mmmx 


Total 

capacity 

170m 

Excess 

capacity 

30m 

Target cuts 

19m-26m 

Cuts plecigcd 


or beina 


implemented 

11m 







insist that the Brussels plan is 
tilted to favour of the state-owned 
sector. 

This mutual suspicion formed the 
background to last December's 
meeting when EU industry minis- 
ters finally put their seal on a deal 
which offered Ecus 7bn in subsidies 
to state-owned companies to Ger- 
many, Italy, Spain and Portugal 
The main Quid pro quo was an 
agreement by the companies to 
close 5m tonnes of capacity, an end 
to state aid, and a new deadline of 
September 1994 for meeting the 
total I9m-tonne reduction to capac- 
ity. 

Somewhat ruefully, Mr Van Miert 
now admits that there was always 
an element of creative fiction and 
mutual bluff involved to the plan. 
Yet this was inevitable from the 
moment that the Commission 
stepped into the crisis. Both Mr Van 
Mier t an d Mr Martin Bangemann, 
industry commissioner, have con- 
sciously adopted a different 
approach from the early 1980s when 
Brussels cast itself to the role of 
organising the steel market under 


the so-called “Davignon plan”. 

The plan - named after Mr 
Etienne Davignon, then industry 
commissioner - allowed Brussels to 
dictate individual company’s pro- 
duction quotas, impose protection- 
ist trade measures, and endorse 
subsidies and price cartels. 

This time, the Commission ncod a 
lighter touch. It offered market 
supervision through quarterly 
“recommendations'' for forward pro- 
duction and delivery volumes; but it 
encouraged privatisation to take 
out excess capacity. The aim was to 
balance state aid for restructuring 
with monitoring of plant closures. 

After a fashion, it worked. By 
spring thi« year, the Commission 
had nf rtrhpd up real and promised 
cuts totalling iim tonnes. But to his 
search for the extra 8m tonnes, Mr 
Van Miert overstretched. 

The first signs of trouble 
appeared at a meeting in Strasbourg 
early last month when Mr Van 
Miert delivered an ultimatum to 
European steel industry bosses: fail- 
ure to find the extra cuts would 
bury the rescue plan and terminate 


his role. 

Two weeks later, the Belgian com- 
missioner put forward to a full 
Commission meeting new proposals 
for approving Ecus 415m of Italian 
state aid in return for the closure of 
capacity to the Brescia. There was 
one snag: no actual company would 
close, only a portion of the plants. 

Mr Van Miert pleaded for a flexi- 
ble interpre ta tion of rules on steel 
aid. noting that the amount of sub- 
sidies was modest compared to aid 
already authorised. But Sir Leon 
Brittan demolished his arguments, 
claiming the subsidies were legally 
dubious and undermined the EU 
position to negotiations with the US 
on a multilateral steel agreement 

The meeting ended to disarray. 
Only four commissioners, including 
Mr Delors, stood by Mr Van Miert 
It was the worst row inside the 
Commission since the 1991 bust-up 
over the US-EU Blair House accord 
on agricultural subsidies which 
ended with the (temporary) resigna- 
tion of Mr Ray MacShanry, Irish 
agriculture commissioner. 

Mr Van Miert staged his own 


walk-out the next day. p inning the 
blame on Sir Leon and proclaiming 
the rescue plan dead and buried. He 
still rejects charges that he was 
bending the rules. “It is totally 
unfair , i was asked to find a solu- 
tion, and I can’t see what I could 
have done otherwise." 

to retrospect, several lessons can 
be drawn from the affair. Mr Van 
Miert admits he should have put 
more pressure on the steel industry 
to deliver cuts to capacity before he 
offered concessions such as pre-fin- 
ancing for closures. “Van Miert is a 
socialist turned liberal” agrees one 
observer. “That does not make a 
good combination." 

Second, many of the commission- 
ers were caught unawares by Sir 
Leon's intervention, suggesting 
either a lack of homework or an 
unhealthy reliance on their own 
Cabinet staff who had backed the 
Van Miert plan overwhelmingly just 
two days before. Mr Bangemann’s 
own Involvement has been sporadic. 
He was in Estonia when the crucial 
Brescia vote took place to the Com- 
mission. 

Third, Mr Van Miert appears to 
have become obsessed with hitting 
the 19m- tonne target. “He made it 
seem that the Commission was 
responsible for finding the cuts in 
capacity, rather than industry. That 
was a fetal mistake," says one offi- 
cial 

F ourth, the Commission 
may be underestimating 
the interest of steel com- 
panies themselves in 
finding market solutions 
to the crisis. A slowly recovering 
steel market coupled with new gov- 
ernments in France and Italy com- 
mitted to privatisation may offer 
new possibilities, says one officinL 
These possibilities could include 
new transnational alliances, witb 
companies choosing to eliminate 
specific capacity In return for recip- 
rocal equity stakes and investment. 
Arbed, the Luxembourg steel- 
maker, has led the way in Europe in 
cross-national joint ventures. Some 
believe that British Steel may pur- 
sue a similar approach, possibly in 
France. 

When the Commission revisits 
the steel crisis tomorrow, it seems 
likely that it will approve a repack- 
aged version of the Van Miert plan. 
The onus to the new version will be 
on Berlusconi’s new government in 
Italy to show that state aid to the 
Bresriani plants does not violate EU 
rules, and the blame for failure will 
be shifted to the industry rather 
than the Commission. 

So, the steel plan looks set for the 
greatest comeback since Lazarus. 
But it is for from clear whether it 
will meet Mr Van Miert's awn 
demands for at least “a minimum 
amount of political and intellectual 
coherence”. His vote will be worth 
watching. 


up for knights of Polish passion 


Chrystia Freeland on Harlequin’s eastern promise 


This year. Harlequin is pedalling 
passion even further east, through 
new subsidiaries to Bulgaria and 
possibly Russia, where the company 
is conducting a trial run. 

Harlequin is the McDonald's of 
romance: its product is inexpensive, 
mass produced and offers the same, 
reliable story-line to dozens of lan- 
guages every month. In Poland, this 
approach has allowed Arlekin. Har- 
lequin's fully owned local subsid- 
iary, to become the nation's largest 
foreign publisher, with monthly 
sales approaching 2m and a gross 
profit of nearly $2m last year, with 
a full-time staff of only U. 

Harlequin paperbacks, with their 
covers of couples locked to roman- 
tic embraces, are now a common 
sight in Polish bookstores. But to 
market Harlequins to Poland, Mrs 
Nina Kowalewska, the managing 
director of Arlekin, first had to pro- 
mote a feminine version of the capi- 
talist dream which has conquered 
eastern Europe: a romantic love 
match with an invariably 
well-heeled Prince Charming. 

Fust, she blitzed the country with 


television advertisements to which 
a woman, sitting to a grey apart- 
ment on a grey safe, finds herself in 
a bright, elegant, expensively fur- 
nished home, with a well-dressed 
man at her elbow. As a male voice 
croons “enter the garden of love", 
several Harlequin novels appear on 
the screen. 


Poland’s high culture 
is strapped for cash 
and many writers live 
by translating 
romances into Polish 


Mrs Kowalewska followed up her 
visual assault with an even more 
direct effort to make the western 
woman’s romantic idyll a part of 
post-communist Polish culture: in 
1992 she introduced Valentine's Day 
into Poland. Harlequin held a Val- 
entine's Day party for its main sub- 
scribers and assorted politicians, 
created a Valentine's Day package 
for television and offered romantic 


holidays and a Nissan Micro car as 
Valentine's Day prizes to its readers 
to a lottery-style draw. 

Mrs Kowalewska, one of Poland’s 
best known businesswomen, has 
also employed lea glamorous mar- 
keting techniques. She insists on 
high production standards, printing 
Polish Harlequins in Germany 
because no Polish press can cope 
with such as high volume. Mrs 
Kowalewska stresses chat “you will 
never find a spelling mistake or 
typographical error in our books”. 

High production quality is a nec- 
essary defence for Mis Kowalewska. 
who must counter the soft but 
incessant grumbling of Polish intel- 
lectuals. They resent the replace- 
ment of the high-brow literary clas- 
sics such as the epic poem Pan 
Tadeusz, by 19th century writer 
Adam Mickiewicz, which once pro- 
vided a refuge from the reality of 
co mmunism with the popular cul- 
ture of Harlequin novels. 

But Mrs Kowalewska, who admits 
that Harlequins are ‘'entertainment, 
not literature”, enjoys a subtle 
revenge for the intellectuals’ put- 


downs. High culture to Poland is 
strapped for cash now that subsi- 
dies have ended, and many Polish 
writers are making ends meet by 
translating Harlequin romances 
from English to Polish. 

"As a result. Harlequins are bet- 
ter written in Polish than in 
English," Mrs Kowalewska says, 
adding with a polite smile, “in this 
way we can also help to subsidise 
high culture". 

Her final defence, taken up on the 
pages of a Polish political journal, is 
that while western feminists might 
criticise romance novels for perpe- 
tuating sexist stereotypes, in 
Poland, such writing is to the van- 
guard of the struggle for women’s 
rights. 

“Polish men are rough, crude and 
exploitative,” Mrs Kowalewska 
says. "Readers tell us that after 
reading Harlequins they no longer 
put up with that kind of treatment 
They demand to be treated as part- 
ners and to be cherished.” 

Despite the quiet scorn of Polish 
intellectuals and the mounting trep- 
idation of Polish men, this appears 
to be a message which Polish 
women are willing to spend billions 
of zlotys a year to hear. 


Observer 


you got a nose job to *92. 

S: That was only 'cos you bitched 
so loudly that I was better-looking 
than. you. 

B: Lighten up, loser. Yon ain't gotta 
hope in hell 
S: (Sounds of sniffles). 

Click. 


Prescott's man 

■ Further evidence that John 
Prescott will be fighting an uphill 
battle if he decides to challenge 
Tony Blair for the Labour 
leadership. Richard Caborn - 
prominent Prescott aide and a 
likely choice as campaign manager 
- is planning to spend the second 
week of the race to South Africa 
in his role as chairman of the 
Commons trade and industry 
committee. Nice to see pleasure 
coming before duty fix- a change. 


Arms and the man 

■ South Africa's new minister of 
defence Joe Mediae - former head 
of the ANCs armed wing - is 
wasting no time getting to know 
an industry that was created 
specifically to thwart his guerrilla 
army. 

At a briefing by state aims 
manufacturer Annscor - where 
Armscor declared its intention to 
double arms exports from their 
current annual figure of R888m 
- Modise could hardly have been 
more ftdsame in his praise. 



‘What if we extend VAT to all 
food except beef? 


Modise spoke warmly of 
Armscor’s contribution to exports, 
job retention and the maintenance 
of local technology, but then 
refused to take questions. A less 
than generous hack remarked that 
his words bore an uncanny 
resemblance to those of Armscor’s 
first great promoter - former 
minister of defence, later president, 
P W Botha. Plus ca change. 


Buttered guns 

■ Talking of the arms business, 
is the British government once 
again about to turn to British 
Aerospace, Britain's biggest arms 


exporter, to find its top arms 
salesman? 

Sir Colin Chandler was RAe's 
marketing director when he was 
poached to head the Ministry of 
Defence’s Export Sales Organisation 
in 1985. Now another BAe type, 
Charles Masefield, 54, is being 
fingered to do the job. His dad. Sir 
Peter Masefield, used to be a big 
wheel to the British aviation 
industry, which helps in a business 
where names matter. Masefield 
junior is also an ex-chief test pilot 
for Hawker Siddeley; so at least 
he should know what he's talking 
about on the hardware side. 

It’s certainly taken long enough 
to find a boss for one of Britain's 
most successful export businesses. 
One reason may be that the MoD 
insists on having a Brit 

But if an Australian - Malcolm 
McIntosh - can he chief of defence 
procurement surely an out-and-out 
foreigner could be Britain's chief 
arms sales rep? 

It would certainly widen the field 
ami reduce the suspicion that the 
job will be stitched up over a few 
brandies and cigars at the 
Athenaeum. 


Swan song 

■ What does the secretary of the 
Bank of England actually do? 

Take Geoffrey Croughton, the 
curreot incumbent Apart from 
keeping the minutes of the weekly 
meeting of the court of directors, 
Croughton has been slaving away 


for months organising tomorrow’s 
Bank of England tercentenary 
concert at the Barbican. 

If anyone knows the score it is 
Croughton. Not only has he 
arranged the programme, but he 
will be on stage singing with the 
Phflharmonia Chorus. Indeed, this 
will be his swan song. After eight 
years on the job, he retires at the 
end of the year and hands over 
to John Footman, the Bank's 
user-friendly PR chief. 

Footman follows in a 
distinguished tradition. Kenneth 
Graham e found time to write Wind 
in the Willows and several other 
tomes during his 10 years in the 
post, and Montagu Norman, who 
ran the Bank for 24 years, is 
reported to have offered the job 
of company secretary to T.E. 
Lawrence (of Arabia). 

Oddly enough, Lawrence seemed 
to prefer an even bigger desert 


Free love 

■ Tom Spencer is standing as the 
Tory party candidate for the Surrey 
constituency in the European 
elections on June 9. For some 
reason Spencer chooses to sign 
his election leaflet not “yours”, 
nor even “yours sincerely" but 
“love”. “My starting point is that 
Surrey is geographically and 
industrially at the heart of Europe,” 
says Spencer's handout 
Clearly a man fuelled by wishful 
thinking and desperate optimism; 
an ideal candidate for the Tories. 






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Clinton says nations must keep strong alliances 

Leaders praise unity as 
D-Day ceremonies end 


By David Buchan 
on Omaha Beach 

Veterans and International 
leaders gathered yesterday on 
Omaha Beach, the most notori- 
ous of the five Normandy landing 
points because of heavy US casu- 
alties, for the closing ceremony 
of the D-Day commemorations. 

Recalling the community of 
nations which banded together to 
fight Nazism 50 years ago, and 
that has since embraced demo- 
cratic Germany, the wartime 
aHfcfl reviewed troops, marching 
bands, planes and ships from 13 
countries that fought the Nazis. 

The tale of the D-Day prepara- 
tions was recounted In two ways 
- first in the homespun words of 
Mr Walter Ehlers. who won 
America's medal of honour and 
lost his brother on June 6 1944. 
Then President Mitterrand, him- 
self for a time a prisoner of war 
in Germany, in polished rhetoric 
saluted all the veterans “come to 
rejoin their past, which Is our 
future". 

The French president also 
saluted the heroism of the Rus- 
sian people, who pinned down 
150 German divisions, the F rench 
resistance who helped pave the 
way for D-Day, and Hitler oppo- 


nents inside Germany “who 
remained true ... to the Ger- 
many of their dreams, home of 
the highest culture". 

Meanwhile, in a newspaper 
interview yesterday, Chancellor 
Helmut Kohl denied he had ever 
solicited an invitiation to the 
D-Day ceremonies, and said: “I 
understand very well why the 
allies are commemorating this 
occasion, so significant for 
Europe and for their sacrifices." 

Chancellor Kohl, in a meeting 
with Mr Felipe Gonz&lez, the 
Spanish prime minister, later 
underlined forcefully Germany's 
continuing commitment to the 
process of European integration. 

The message which all the 
leaders gathered in France 
sought to convey yesterday was 
that from the anti-Nazi struggle 
of SO years ago came the post-war 
international co-operation that 
must be continued to combat 
present and future conflicts. 

President Clinton told the US 
Rangers who had scaled the 
Pointe du Hoc cliff above Omaha, 
that there were “still nirffa to be 
scaled” by the world’s democra- 
cies who must maintain strong 
alliances. Mr Clinton went on to 
tell the Ranger veterans that "if 
we should falter, we need only 


remember you at this spot 50 
years ago, and you again at this 
spot today". 

Britain commemorated its dead 
at the Bayeux cemetery in morn- 
ing drizzle and then its veterans 
at Arromanches in afternoon 
sun. The ceremony was attended 
by President Mitterrand, Austra- 
lian prime minister Paul Keating 
and other leaders friffinriin g 1 the 
Grand Duke of Luxembourg who 
served in the Irish Guards to free 
his country from the Third Reich. 

Later, Queen Elizabeth and 
Prince Philip walked the 
graves of the 3335 British dead 
and the memorial to 1308 
unknown ripafl of the Common- 
wealth. At Arromanches, the 
Queen said the presence of Mrs 
Simone Veil, a senior French 
minister who as a young Jewish 
girl was in Auschwitz, "repre- 
sents perfectly why we are here 
today". 

Mr Clinton, who has been crit- 
icised for not serving in the Viet- 
nam war, paid, eloquent tributes 
to fallen US soldiers and survi- 
vors. But at Utah Beach, where 
US forces had also landed, veter- 
ans booed when they were told 
tardiness on the part of President 
Mitterrand had also delayed Mr 
Clinton. 


Philip Morris acts against 
Australian advertising ban 


By Nikki Tail in Sydney 

Philip Morris, the US cigarettes, 
food and brewing giant, yester- 
day launched a High Court action 
in Australia, seeking to overturn 
the country's ban on cigarette 
advertising on the grounds that 
it denies "commercial freedom of 
speech". 

This is thought to be one of the 
first attempts by a US cigarette 
manufacturer to litigate against 
“anti-smoking" laws outside the 
US, and comes as the Industry 
faces increasing pressure from 
regulators at home and in the 
international market 

The company said it filed a 
statement of claim because the 
restrictions imposed by the 1992 
Commonwealth Tobacco Adver- 
tising Prohibition Act were "so 
wide-ranging that they deny it 
the right to take part in debate 
on political, public and social 


issues and deny it the normal 
commercial freedom of speech. 

“Important Issues of freedom of 
speech are at stake because the 
restrictions deny us the right to 
communicate on political, public 
and commercial Issues," said Mr 
David Davies, vice-president at 
Philip Morris. 

The 1992 act made tobacco 
advertising illegal in Australia 
from the middle of last year. It 
will also phase out cigarette 
sponsorship of sporting events by 
the mid-1990s unless exemptions 
are obtained. Existing sponsor- 
ship contracts will be honoured. 

When the legislation was intro- 
duced, federal health officials 
claimed that about 18,000 Aus- 
tralians died each year from 
tobacco-related diseases and the 
drain on health services 
amounted to about A96.8bu 
(US$4 .SSbn) a year. Some 28 
per cent of Australians are 


estimated to be smokers. 

Philip Morris claimed yester- 
day the trigger-point for its law- 
suit came last month, when it 
tried to recall some promotional 
cigarette lighters, which were 
thought to be faulty. It said some 
Australian media groups claimed 
initially they could not publish 
the recall advertisement for fear 
of breaching the federal law. 
After a brief delay, modified 
advertisements were accepted. 

Philip Morris employs about 
4,000 people in Australia and says 
it pays more than A$lbn in taxes 
and licence fees to state and fed- 
eral governments. 

“We believe it is unacceptable 
for such a significant organise 
tion, responsible to so many 
shareholders, employees, suppli- 
ers and customers, to be denied 
the right... to engage in normal 
commercial c nmiwunfawtirffi " the 
company said yesterday. 


S Korea 
acts to 
guard 
against 
attack 

By John Burton in Seoul 

South Korea yesterday decided to 
activate all emergency consulta- 
tive procedures with the US to 
guard against possible military 
action by North Korea. 

US and South Korean forces 
remained on a high state of readt 
ness, while the emergency proce- 
dures in chirift sharing 1 of inteRi- 
gence on North Korean troop 
movements and co-ordination at 
a military and political IeveL 

South Korean president Kim 
Yoimg-sam is expected to brief 
senior officials and political lead- 
ess tomorrow an the dispute over 
nuclear inspections 

Meanwhile, the Untied Nations 
Command has asked for a meet- 
ing with North Korean delegates 
to discuss the North’s unilateral 
withdrawal from the military 
armistice commission that super- 
vises the 1953 truce that ended 
the Korean war. 

North Korea yesterday 
repotted its warning that UN eco- 
nomic sanctions imposed on 
Pyongyang for its failure to 
accept full international nuclear 
inspections would be considered 
an act of war. 

But no unusual North Korean 
military movements have been 
detected in spite of increased ten- 
sion on the Korean peninsula, 
according to South Korean offi- 
cials. 

Mr Han Sung-joo, South Kor- 
ean foreign minister, has arrived 
in New York to consult the US 
and Japan on the preparation of 
a sanctions resolution likely to be 
introduced this week in the UN 
Security CoundL 

The three nations have report- 
edly already agreed on the timing 
and degree of sanctions, which 
are expected to include Japan’s 
stopping at least $60Qm in cash 
remittances sent to North Korea 
by pro-Pyongyang Korean- 
Japanese. 

The money is North Korea’s 
largest source of hard currency, 
which is needed to buy vital oil 
and food supplies to prop up its 
struggling economy. 

The dispute could be solved if 
the International Atomic Energy 
Agency is allowed to examine 
two suspected nuclear waste sites 
that could show whether Pyong- 
yang diverted plutonium from its 
reactor to a suspected nuclear 
weapons programme in 1989. 


OECD lifts growth forecasts 


Continued from Page l 

cent in the first half of this year. 

The OECD has revised its 
expectations of short-term inter- 
est rate developments. It expects 
US 3-month rates will rise to 53 
per cant by late 1995, about 03 
point higher than projected in 
December. 

German short-term rates are 
expected to fall over the next 18 


months, but less sharply than 
previously expected. The OECD 
expects German 3-month rates 
will he 43 per cent by the end of 
next year, against its earlier fore- 
cast of 3.8 per cent 
Like all projections, the latest 
OECD figures are subject to 
uncertainty, including possible 
negative effects from the recent 
sharp rise in long-term bond 
rates. 


Detergents battle heats up 


Continued from Page l 

polite for us to give our supplier 
a chance to clarify the situation,” 
the supermarket group said 

Mr Seth dismissed Procter & 
Gamble’s research finflTng g about 
damage to clothes as "irrele- 
vant”. 

He said: “If you pick the right 
combination of dye, stains, mate- 
rial and basic colour, you can 


get results which will show 
severe damage. If I want to, I can 
do the same with competing 
products.” 

The largest Dutch consumer 
protection group called an Uni- 
lever yesterday to make a dear 
distinction between the old and 
new Omo Power when it 
launches the modified version in 
the Netherlands later this 
month. 


FT WEATHER GUIDE 


Europe today 


A wavering frontal cone will cause overcast 
skies over the British Isles and limited sunshine 
across the Low Countries, Germany and 
Poland. Scotland will have showers, which may 
be heavy at times. Wales and central England 
will have outbreaks of light rain, but elsewhere. 

It will remain dry and afternoon temperatures 
will rise to seasonable values. The Alps, the 
Czech Republic, Slovakia and Hungary will have 
sunny spells. Northern France will be partly 
doudy, but central and southern France wiH 
have abundant sunshine. Tropical heat will 
trigger thunder showers over southern and 
central Spain. Sunshine will be plentiful over 
Italy and the western Balkans. The eastern 
Balkans will have a mixture of doud and 
sunshine. Tirkey and the Middle East will be 
partly cloudy with a few thunder showers. 

Five-day forecast 

Western and central Europe will be changeable 
with outbreaks of rafn or showers. Maximum 
temperatures win drop several degrees. 
Southern regions wjB continue sunny with 
temperatures stiii in excess of 30C in southern- 
most sections. Northern Europe will have a 
mixture of doud, sunshine and showers. 


TODAY’S TTOPERATURKS 




Martrum 

Using 

ter 

30 

Caracas 

ter 

27 

Edinburgh 

shower 

17 


Cetshes 

Softest 

doudy 

17 

Cardiff 

ttZ2f 

18 

Faro 

sun 

28 

Abu Dhabi 

sun 

39 

Belgrade 

Ml 

23 

Casablanca 

fair 

29 

Frankfurt 

ter 

28 

Accra 

shower 

31 

Borin 

doudy 

ZS 

Chicago 

thmd 

26 

Geneva 

sun 

26 

Algiers 

sun 

32 

Bermuda 

tufa- 

28 

Cologne 

doudy 

26 

Gibraltar 

sun 

29 

Amsterdam 

doudy 

20 

Bogota 

rain 

19 

Dakar 

fair 

27 

Glasgow 

shower 

16 

Athens 

sun 

25 

Bombay 

rain 

32 

Oates 

sun 

34 

Hamburg 

doudy 

23 

Atlanta 

thund 

30 

Brussels 

ter 

24 

Date 

sun 

44 

Helsinki 

doudy 

2a 

B. Ares 

ter 

14 

Budapest 

fair 

23 

Djakarta 

doudy 

32 

Hong Kong 

doudy 

30 

S.hflm 

drzzl 

18 

CJiagen 

doudy 

19 

Dubai 

sun 

37 

Honolulu 

fa tr 

31 

Bangkok 

thund 

34 

Cairo 

sun 

36 

Dublin 

doudy 

17 

Istanbul 

shower 

19 

Barcelona 

fair 

28 

Capa Town 

doudy 

18 

Dubrovnik 

Mi 

25 

Jersey 

fair 

18 



Frankfurt. 

Your hub in the heart of Europe 

Lufthansa 

German Airlines 


Situation at It GMT. Temperatures for Cay. Feracssts by Metao Consult of the Nether la nds 

Md fair afl Rangoon 

area sun 31 Reykjavfc 

ta sun 27 Wo 

vdmtor ctoudy n Roma 
tfa thund 32 S. Fraco 

bourne rain 13 Seoul 
xotSty far 24 Singapore 
ml thund 32 Stockholm 

n aim 30 Strasbourg 

Ureal shower 30 Sydney 
(cow rain 26 Tangier 

Mi Mr 24 TelAvtv 

Karachi sui 35 Nairobi ter 25 Tokpa 

Kuwait sun 44 Naples sun 26 Toronto 

L Angelas sun 22 Nassau ter 31 Vancouver 

LasMmaa sun 28 New York «r 30 Venice 

Una fair 20 Nice sun 25 Vienna 

Lisbon sun 28 Nicosia shower 32 Warsaw 

London doudy 23 Oslo ter 21 Washington 

LmUboutg fak 25 Rads ter 26 Wafflngtan 

Lyon sun 28 Perth doudy 18 Winnipeg 

Madeira ter 24 Prague shower 24 Zurich 


thund 30 
shower 11 
ter 22 
sun 28 
«r 21 
ter 30 
doudy 32 
doudy 19 

tea- 28 
far 20 
* ter 30 
sun 33 
doudy 24 
sun 22 
rain 17 
sun 28 
doudy 25 
doudy 22 
ter 32 
doudy io 
ter 23 
ter 25 


the lex column 


BAA reaches for the sky 


BAA has the defensive qualities of a 
utility but the growth prospects of the 
civil aviation industry. So it is hardly 
surprising that chief executive Sir 
John iggan is pfljpg investment into 

the b usiness. Planned capital expendi- 
ture In airports of £L4bn over the next 
three years is more than double 
investment over the past three years. 
Part of this Is to accommodate fixture 
growth In passenger volumes. But the 
stepped-up spending Is also designed 
to expand airport retailing, improve 
the quality of terminals and build 
more office space. A further £200m is 
earmarked for investment outside air- 
ports. mostly building factory outlets. 

Given that BAA’S strategy of con- 
trolling costs and boosting retailing 
revenue Is delivering handsome’ 
returns, investors will probably be 
pleased to have more of the same. 
Sales per passenger at the group’s first 
redesigned shopping man, Heathrow's 
Terminal Four, have increased 30 per 
rant. Meanwhile, BAA’s construction 
costs have dropped by a third over the 
past three years and the company now 
boasts world standard building costs. 

There are two main worries. First, 
that BAA's airport retailing invest- 
ment could hit diminishing returns as 
passengers presumably have finite 
budgets. Second, that the group’s 
move into factory outlets could prove 
misguided, given its poor record of 
diversification outside- airports. Still, 
Sir John is determined to proceed on a 
suck-it-and-see basis and would be pre- 
pared to pull projects if rates of return 
failed to meet expectations. The 
expansion programme seems to be in 
safe hands. 

New issues 

The paralysis which started to grip 
the new issues market in May is 
spreading- British Printing Company, 
the latest UK company to postpone its 
flotation, is neither an unfashionable 
property developer nor a cable televi- 
sion operator. Despite its colourful 
past within the Maxwell empire, BPC 
is the kfmi of solid industrial company 
institutions would normally be happy 
to own. Despite flotations totalling 
£7bn this year — more t han in the 
whole of 1993 - there is no shortage of 
institutional foods even if patience is 
wearing thin. 

While equity and bond markets are 
choppy, though, many institutions 
would rather accumulate cash th an 
commit fresh funds. Pension funds 
were certainly building cash balances 
during the first quarter. Long gilt 


FT-SE Index: 3009.4 (+11.6) 


Share price rotative 

to the FT-A Transport index 



yields of almost 9 per cent tempted 
some fund managers into bonds last 
week. Where money is flowing into 
equities, larger stocks are more likely 
to benefit On a yield premium of 20 
per cent to the Mid 250 index, the 
FT-SE 100 looks most attractive to 
investors in search of value. 

A medium-sized company like BPC 
was therefore swimming against the 
tide. The flotation might have still 
have succeeded, but only by pricing 
the shares more cheaply than the com- 
pany and its existing shareholders 
coiuld accept Other hopefuls may be 
prepared to bend a little more. Greater 
realism in pricing new issues was any- 
way overdue. The sight of big indus- 
trial groups floating subsidiaries 
rather than making trade sales - ECC 
and Hanson are cases in point - was a 
hint that equity market valuations 
had become overblown. 

UK economy 

It is tempting to conclude from the 
latest statistics on consumer credit 
and the housing market that April’s 
tax increases are starting to bite. Per- 
haps, though, it would be more rele- 
vant to ask how for the economy 
would now beset to overheat if there 
were no tax increases to dampen con- 
sumer demand. Consumer credit may 
have fallen compared with March but 
April's total of £413m was still higher 
than January and February and more 
than double that of April last year. 
The slippage in housing market activ- 
ity Is more unsettling, but it seems 
unrelated to the tax increases: more 
likely it reflects the bunching of trans- 
actions earlier in the year while the 
cheapest fixed-rate mortgages were 


still available. It will take a month or 
two to tell how serious is the housing 
market setback. So far nothing has 
happened to deter the upward drift of 
City estimates for this year's economic 
growth to 3 per cent or even higher. 
Expansion at that pace cannot be 

entirely consumer-led. Happily there 

are glimmerings of increased invest- 
ment fi ern^nd which should help pick 
up any slack, while the nascent recov- 
ery in Europe should bolster exports. 

If that makes the recovery more sus- 
tainable, the risk remains that tax 
increases combined with fears of 
higher Interest rates will eventually 
sap confidence. Base rate concerns, 
though, are still only a matter of 
expectations. If fears of higher rates 
did upset the recovery, the authorities 
would be spared the political embar- 
rassment of having to implement the 
steep rate rises now predicted fay the 
money market 

Sprint/EDS 

A disagreement over the relative 
values of Sprint and EDS caused the 
breakdown in their merger talks. But 
the logic of putting a telecom operator 
together with a data processing cam 
party is still plausible, if a little fuzzy. 
Since both companies are important 
pieces on the multimedia chess board, 
a further phase in the complex game 
of telecoms alliances is in prospect 

Sprint will be the centrepiece of 
attempts to put together a third force 
in the US telecoms market to compete 
with AT&T and MCL It will also be a 
player in whatever group emerges to 
rival the global alliances led by AT&T 
and BT/MC1. With indications that 
France Telecom and Deutsche Tele- 
kom are going cold on linking up with 
AT&T, the likelihood that Europe's 
two largest carriers will join forces 
with Sprint has increased. Some sort 
of alliance with NTT is also possible, 
though the Japanese carrier is still 
being wooed by BT and in any case is 
limite d by regulations in what it can 
do in overseas markets. 

There is little point in combining 
EDS with another company which 
does not own a US telecom network. It 
may therefore make sense for it to 
gain its independence from General 
Motors and use whichever networks 
offer the brat deal Alternatively BT, 
which came close to buying a stake in 
EDS two years ago, may renew Its 
interest. Shareholders in the UK 
group, though, are likely to be worried 
about the dilution implicit in such a 
move. 


If you want to know 


At Gardner Merchant, we believe that motivation comes 


how we’ve won 


through ownership: which is why 1000 of our senior and 


the trust of 6000 

middle managers have a stake in our Company. 

companies world- 


Small wonder that we serve more outlets around the worid * 


wide, ask our 


than any other caterer. 


top 1 000. 






& 


GARDNER MERCHANT 

- World Service 


i 


< 












Ski 



IN BRIEF 


Finnish bank 
; cute losses 


f : aapf 


PWilp* back bn a spending aprae 

After years ofcost-coittog, the semiconductor 
division of Philip s , die Dutch electronics group, 
is spending again as it celebrates a return to 
profitability. Page 20 - 

Cm combs the cable league 

Times Mirror, the US media group, has agreed 
to sell its cabla television operations to Cox Enter- 
prises. a privately-held Atlanta-based cable televi- 
sion and publishing group. The deal makes Cox 
Cable, the Cox Enterprises cable unit, thp third 
largest US cable TV company, with around 3:1m 
subscribers. Page 21 


•i: • * 

•• .• i**. 


Swire reasum on Cathay control 

John Swire & Sons, die owners of Cathay Pacific, 
the Hong Kong-based airline, have reassured 
senior afcfine manag ement and staff that they 
bate no Intention of relinquishing control of 
the company. Page 22 


• ic*. 
■ '•r:>' 


Cmap plana further expansion 

Bmap , -the UK media and mrluMtiiwiR grrmpg fe 
planning to continue its twin policy of launching 
new magaztae titles and expanding through acquisi- 
tion. Mr Robin MiGar, chief executive, said that 
by next June he expected Bmap to be “a somewhat 
larger company than It is today". 

Page 24 


•• n* . 


Observers brace for prolonged battle 

Few In the DK watching the legal fight between 
die Cheltenham & Gloucester bunding society 
an d theBuOding Society Commission over the 
. UoydsBanfc agreed £L8bn ($2.7tm) offer for C&G 
' beltere that flta^B^iCpurtfs Judgment wfllhe 
tbe end of the affair. 

Page 24 ■ ■ 


P tacatm ng the poor relation tag 

A Dotattatfctthe National Chid, which operates 
thehi^rs^tage trrasmissdim system in En gland 
and- Wales, is to value the company at £4bn ($6bn) 
at least ^/afKpcry from when the company was 
considered within the electricity industry to be 
tt»poor v J^atlcaitb J pbwer generation. 

tbnftto taduatrtes makes US purchase 

Smiths Inda$trifi£thB UK aerospace defence 
and heakh^a^gCflWls paying $i50m for Deltec, 
a USmediadeepi^Qfflit manufacturer owned 
by FharmRcMtQfSweden. Page 25 

Oan^roimbwSh pr obl ems 

In spite crftb^Gerufafcs’ refusal to accept that 
British beef issafe to import, they have animal . 
health problems of their own that are spiffing 
into other European Union countries. 

Page 25 


WMo awake in Tel Aviv 

Bourses throughout Europe were mostly sleepy, 
but the market in Tel Aviv dived 6 per cent, wiping 
out all of Sunday's 4 per cent (pdn. The Mfehfemhn 
index finished 20.48 down at 17230. BackPage 


Companies In «Ma Issue 


Abbey National 

24 fntercam Qnx*> 

25 

Aco! ■ 

25 KOP 

20 

Accor 

20 KPN 

19 

Afllp 

S Kmart 

19 

AWed London Praps 

2S Ufa Sciences 

26 

BAA ; 

10 London CUbs InM - 

24 

BCP 

. 20 McKeotnle 

25 

Bakyrchtk Qofd 

25 Mfdcfissax HofcSngs 

25 

Bewriey Group 

24 Moteon 

21 

Blacks Lateora 

25 National Grid 

24 

Brent International 

O Northern tnvaetora 

25 

CGIP 

20 Pttflp Morris 

IB 

Camatta 

24 Philips 

20 

Camay Pacific 

22 Prime People 

25 

Otic 

22 Procter & Gamble 

1 

Cox Enterprises 

21 RTZ 

25 

Domtur 

21 Sara Lae 

19 

EDP 

19 Shell 

5 

EDS 

1 Simon Engineering 

24 

0 Al 

5 Sleepy Kids 

25 

Elf 

4,5 Smiths Industries 

25 

Email 

22 Sprint 

1 

Forte 

20 Swire, John 

22 

Foster's 

21 Times Minor 

21 

Brand Metropolitan 

25 Treatt 

25 

HSBC ’■ 

25 UK Land 

25 

Harrington Kilbride 

24 UnSewr 

1 

HybakJ 

25 Union Carbide 

4 

Imperial Hotels 

22 YPf 

21 

Market Statistics 

ftanua] reports asririoa ; . 28-29 Foreign exchange 

34 

Benchmark 6ort bonds 

23 GOtt prices 

23 


Boot futures and options •• 23 
Bond prices and ytew* 23 
CanwwBte prices . 26 

DMdeodG announced, Ult 24 
EMS. dinner rate . . 34 

Eurobond prices 23 

Fted bare* (ndees ' 23 

FT-AWMdMfcn Back Papa 
FTGoW MVnelntfex Bade Paoa 
FTBSUAM band eve . 23 

FT-SE Actuate tafias - - 27 


URe Bqufy opitang Back Pngs 
London stare ante 28-29 
London trad options Back Paas 
Managed finds sendee 30-39 
Ikney markets 34 

New JntJ bond bwea 23 

Recent Issues. IRC 27 

Short-tom W rates 34 

US Uarast rate 23 

Wortd Stock Martas 3 S 


Chief price changes yesterday 


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COP 1212 + 46 

CCF ' . 2383 * 56 

Oksftwa - .714 + 14 

Ecta 790 + 21 

smampan wo * us 


sue . 770 ■ - 40 

TtaCVOffesi' ; 


w .V « 2 i *. IK 
napuntt ' son • * i* 


modpsaqe 


580 ♦ 25 


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PWfcST 3 


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FINANCIAL TIMES 


COMPANIES & MARKETS 



©THE FINANCIAL TIMES LIMITED 1994 


Tuesday June 7 1994 


Amsterdam hopes private companies will follow float of post and telecoms group 

Dutch utility valued at FI 23bn 


Losses at KsssdhaOsako-Pahkki, Finland’s landing 
commercial bank, narrowed sharply to FM275m 
(J60m) from TtotS2&a.in the first four mouths, 
as it benefited from reduced credit losses, new 

business and lower interest rates. * 


By Ronald van do Krd In 
Amsterdam and Amkew Adonia 
fri London 


A first tranche of shares in 
Konlnklijlre PTT Nederland, the 
state-owned Dutch postal and 
teJecommuni cations operator, 
will be floated next week at a 
-price -of FI 49.75 a share, valuing 
the company at FI 22.9bn 

($LL3bn). 

The price is slightly higher 
than many analysts had pre- 
dicted and is just above the mid- 
point of the previously published 


indicative range of FI 46 to FI 52. 
Private investors will be given a 
discount of FI 2.50 per share on 
up to 75 shares. 

The flotation of 138.15m shares, 
representing 30 per cent of tbe 
government's 100 per cant hold- 
ing in KPN, will raise Fl6L9bn. 
An additional FlLObn could be 
generated if the hanking syndi- 
cate exercises its 30-day right to 
sell a further 20.7m shares in 
case of heavy oversubscription. 

Analysts had agreed that the 
flotation price would be FI 50 or 
less, with many predicting FI 48 


or FI 48. The government is aim- 
ing to sell half the shares In the 
Netherlands. 

The price, announced yester- 
day, was based on a “book-build- 
ing" exercise among institutional 
investors. Subscriptions opened 
yesterday and will close on 
Thursday afternoon. Trading on 
the Amsterdam Stock Exchange 
is due to start on Monday. 

Mr Wim Kok. finance minister, 
said the transaction should give 
"a substantial stimulus to the 
strengthening a ^d deepening of 
the Dutch capital market". The 


stock e xchang e hopes the exam- 
ple of KPN will persuade other 
privately owned Dutch compa- 
nies to seek bourse listings. 

KPN’s total market capitalisa- 
tion will make it the third largest 
stock on the Amsterdam Stock 
Exchange behind the two Anglo- 
Dutch groups, Royal Dutch/Shell 
and Unilever. The flotation, to be 
followed by a second tranche by 
the end of 1997, is tbe largest to 
take place in Amsterdam. 

KEN'S is the fifth European 
telecoms share offer in the past 
year, but the first of the privati- 


Richard Tomkins explains why the US retailer has aroused shareholders’ ire 

Shareholders 
riled by Kmart 
discount record 


*2**$ Spill 






L .ow prices were the founda- 
tion an which Kmart, the 
US discount store group, 
grew to become tbe world's big- 
gest retailer, but it was never the 
intention that tills reputation 
should extend to its shares. 

Now, angry shareholders are 

si gnalling that they have bad 
gnnug h. At the company's annual 
meeting on Friday, dissident 
institutional investors delivered 
a humiliating blow to Kmarfs 
management by throwing out its 
plans to create new shares ti°d to 

the aamlng g performance of its 
speciality stores. 

gharahniday activism is noth- 
ing new in the US. Many big US 

COmp&DieS — Innlntling annthw 

retailing giant Sears, Roebuck — 
have been forced into changes of 
direction as a result of share- 
holder pressure. Several - nota- 
bly General Motors, Internationa] 
Business Machines, Westing- 
house Electric, Eastman Kodak 
and American Express - have 
lost their chairmen or chief exec- 
utives along the way. 

But what has gone wrong at 
Kmart to provoke shareholders 
into such a public attack on the 
management? 

Shortly after Mr Joseph Anton- 
in! became chairman and chief 
executive in 1867, he proclaimed 
in a newspaper interview: “My 
goal is to make Kmart the most 
respected dominant retailer in 
America." 

Briefly, the company won that 
respect in 1989 when it overtook 
Sears, Roebuck to become the 
world's largest retailer. But 
already, analysts were predicting 


Kmart 


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gs 


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' Soups: Ogttmj •• 





Shareholder John Grant, 74, told executives at the annual meeting: ‘So you’re going to have a chance to 
IM pain. If we’re not making any money why in the hell are we malting millionaires?’ 


that the discount store group 
most likely to succeed in the 
1990s was not Kmart, but its rival 
Wal-Mart Stores. 

They were right hi 1990 Wal- 
Mart swept past Kmart to claim 
the number one slot In terms of 
sales, profits and share price, it 
hag soared ahppd ever since. 

Analysts say that Wal-Mart is 
quite simply the better retailer. 
Kmart has too often had to sell 
off goods cheaply to get rid of 
them, or run out of things people 
want to buy. 

But there is another factor. 
Kmart has haffiad share holder s 
with its repeated changes of 
directum. In the 1960s, it decided 
to use the cashflow from general 
marrhandising to enter speciality 
retailing. It bought or set up the 
PayLess Drug Stores chain, tbe 
Waldenbooks and Borders book 
stores, the Sports Authority 
sporting goods shops, the Build- 
ers Square home improvement 


stores and the OfficeMax office 
supplies chain . 

Confusingly, however, it also 
set about Expanding its general 
merchandising activities by mak- 
ing forays into the hypermarket 
and membership businesses, first 
by taking a stake in the Makro 
hypermarket chain and then by 
buying the Pace Membership 
Warehouse operation. Both these 
ventures proved unsuccessful. 

The baric strategy went awry 
when Kmart realised that its dis- 
count stores would not generate 
the expected surplus cash 
because they needed so much 
investment to survive the compe- 
tition from Wal-Mart. But the 
refurbishment programme was 
abruptly scaled back in 1992, 
when Kmart considered reenter- 
ing the hypermarket business. 
Then in January this year, it said 
the results from its refurbished 
stores were so good that it was 
starting up the programme again. 


Meanwhile, the PayLess Drug 
Stores chain disappointed and 
was sold last year. The perfor- 
mance of the other speciality 
retailers also fell short of expec- 
tations, but in January Kmart 
said it had no intention of selling 
them. Instead it came up with a 
plan to create a new class of 
shares in the companies and sell 
2030 per cent of them. 

It was this plan that proved the 
last straw for some shareholders. 
After watching their company 
plunge to net losses of $947m last 
year, they wanted Kmar t to get 
out of speciality retailing alto- 
gether and concentrate on put- 
ting its discount stores to rights. 

One after the other, the big 
pension funds - among them, the 
College Retirement Equities 
Fund and the California Public 
Employees Retirement System - 
weighed in with announcements 
that they would vote against the 
scheme. On Friday. Kmarfs man- 


agement lost tbe vote. 

So what happens now? Yester- 
day Kmart seemed dazed by the 
defeat, putting out a vague state- 
ment that spoke of “reviewing all 
alternatives and taking actions 
that are in the best interests of 
Kmart shareholders". 

The failure of its plan to sell 
stakes in the speciality retailers 
will leave it short of $500m to 
$lbn, a sum badly needed for its 
store reftarbishment programme. 
Options could include selling the 
21 per cent stake in Coles Myer. 
the Australian retailer; a cut in 
the dividend; or another attempt 
at a partial spin-off erf the special- 
ity subsidiaries. 

Alternatively. Kmart could do 
what the shareholders want and 
sell the subsidiaries altogether. 
That would not be Mr Antonini's 
preferred option: but if it is a 
choice between losing the subsid- 
iaries or his job. he may yet come 
round to it 


Sara Lee plans job cuts 
and takes $495m charge 


By Laurie Morse in Chicago 


Sara Lee Corporation, the US 
foods and personal products com- 
pany, is to take a 5495m after-tax 
charge against earnings in its 
fourth quarter to cover its world- 
wide resirticturing. 

The measures will include 
shedding more than 8,000 jobs 
and closing or consolidating 
hosiery manufacturing plants in 
the US and Europe. 

Sara Lee’s aim is to improve 
toe performance of its flagging 
personal products division, which 
includes the hosiery brands 
Hanes and L'eggs; the knitwear 
company Champion; and under- 
wear lines Playtex, Bali, Dim and 
Kiwi 

The charge will cover the cost 
of cutting Sara Lee’s interna- 


tional workforce by about 6 per 
cent, or 8.280 employees. The 
company did not give de tails of 

which factories it plans to close, 
or where or when personnel 
reductions would take place. 

The company forecasts that the 
savings in annual operating costs 
will build up to $250m by 1998. 

Ms Ellen Baras, an analyst 
with Duff and Phelps corpora- 
tion, said that restructuring had 
been expected, though not one so 
deep or extensive as was 
announced yesterday. 

"What this does is to accelerate 
their plan to get their hosiery 
operations back on track," Ms 
Baras said. 

Sara Lee’s fourth quarter ends 
in July, with results doe on 
August 8. Analysts expect the 
company to report flat results, 


with growth tempered by over- 
capacity in the hosiery division. 

Analysts said that the restruct- 
uring resembled similar success- 
ful efforts by Sara Lee to turn 
around performance in its bakery 
and packaged meat operations. 
“It's a growth-driven company," 
one analyst said. “The personal 
products division has been turn- 
ing around more slowly than 
they would like." 

Mr John Bryan, Sara Lee’s 
chairman, said that while toe 
company was “on course" and 
expected to report record sales 
and earning s for toe fiscal year, 
its ability to “compete effectively 
in rapidly changing markets, 
both today and in the future, 
requires these actions". 

The charge is equal to $1.03 per 
share and S732m before tax. 




Mezzanine Capital 
fills the gap. 


21st CENTURY 


MATERIALS AND 


TECHNOLOGY 


T - O - D * A • Y 


BRITISH VITA PLC 


sations of state monopolies to 
include a postal service. 

The UK government will soon 
launch a consultation paper 
likely to advocate partial privati- 
sation of the Royal Mail 

Dp to four EU telecoms privati- 
sations are passible in the nexi 
year, with the state operators of 
Belgium. Greece, Italy and Portu- 
gal preparing for sales. Legisla- 
tion to privatise Deutsche Tele- 
kom, the German state telecoms 
and posts monopoly, is also on 
course, but a flotation is thought 
unlikely before early 1996. 


Portugal 
splits up 
electricity 
utility 


By Peter Wise In Lisbon 


Electrlcidade de Portugal, tbe 
state-owned power utility, is to 
be split into 10 separate enter- 
prises as part of a restructuring. 
Electricity production and distri- 
bution would also be partially 
privatised, Mr Joaquim Silva 
Correia, EDP chairman, said yes- 
terday. 

EDP is to be unbundled in 
July. Separate companies will 
manage power production and 
the high-tension transmission 
network, and there will be four 
regional distribution companies 
and five service companies. A 
holding company will co-ordi- 
nate operations and strategy. 

The new production company. 
Companhia Portuguesa de Prod- 
uc&o de Electricidade, would pri- 
vatise about 20 per cent of its 
capital on the Lisbon stock 
exchange by mid-1995, said Mr 
Silva Correia. Further tranches 
would later be privatised, but 
toe state would retain a majority 
holding. The regional distribu- 
tion companies would also pri- 
vatise a minority of their capital 
over the medium term. All the 
other companies would remain 
wholly state owned. 

CPPE will take over all of 
EDFs power plants, which are 
estimated to represent about half 
the company net assets of 
Es2^47bn (S13bn). Current pro- 
duction capacity of 7.200MW is 
to be expanded to 8300MW by 
the year 2000. EDP is Portugal’s 
second largest company by turn- 
over and employees. 

“Liberalisation and privatisa- 
tion is aimed at introducing flex- 
ibility, rationality and competi- 
tion into the power section, to 
provide consumers with lower 
prices and better services," said 
Mr Silva Correia. Electricity 
prices for industrial consumers 
in Portugal have been reduced 
by 31 per cent in real terms since 
1987, but remain the third high- 
est in the European Union. 

Private power production 
began in Portugal in December 
when a consortium led by 
National Power of the UK bought 
a 300MW coal-fired unit from 
EDP. The plant will be expanded 
to L200MW. A group dominated 
by Semens of Germany is build- 
ing a 900MW natural gas-fired 
plant in northern Portugal. 

Two stateappointed bodies are 
to be set up to regnlate the elec- 
tricity sector. “Portugal is too 
small and too dependent on 
hydro-electric production, which 
varies according to rainfall, to 
allow the market to decide," said 
Mr Silva Correia. 




ACQUISITIONS, 

EXPANSION, 

BUYOUTS, 

RECAPITALISATIONS. 


Recent investments led by 
the Klanwort Benson 
European Mezzanine Fund: 


ADMIRAL HOMES 
UK housebuilding 


INTERNATIONAL MEDICAL 
Dutch metfcal products 


BAA doubles UK airport 
investment to £1.4bn 


German health care services 


QUA DRAMATIC 
UK coin handling aqupmeni 


By Pmd Betts, 

Aarospaca Correspondent 


BAA, the privatised UK airports 
group, yesterday announced 
plans to double capital spending 
to £1.4bn over the next three 
years after reporting a 13 per 
cent rise in annual pre-tax profits 

to £332m (?485m). 

Revenues rose 1&3 per cent to 
£l.lbn in the year to March. The 
strong performance coupled with 
a proposed one-fbr-one scrip 
issue, helped push up BAA 
shares lip to 949p yesterday. 

Although income from airport 
charges was flat at £36Sm, 
reflecting the Civil Aviation 
Authority’s price control for- 
mula, net retail income rose by 
7.6 per cent to £328m with pas- 


sengers spending on average 5 
per cent mine in airport shops. 

The big increase in capital 
spending reflects the need to 
cope with expanding air travel 
“By the turn of the century, we 
are expecting nearly a third more 
people to fly through our London 
airports than at present," said fflr 
John Egan, chief executive. 

Passengers using BAA’s air- 
ports increased by 5.6 per cent 
last year to 82m, with 71.5m 
using the three London airports 
of Heathrow. Gatwick and Stan- 
sted. Sir John said passenger 
traffic was continuing to grow by 
around 5.5 per cent tills year. 

He argued that Heathrow's 
planned Terminal 5 was “vital” 
for BAA. He added that recent 
estimates suggested that more 


than 180,000 jobs were generated 
by economic activity at Heathrow 
airport 

BAA said it was confident it 
could finance its ambitious 
investment programme from its 
own cash and borrowings. Mr 
Nigel Ellis, finance director, said: 
“We will ensure that we have the 
capacity to build Terminal 5 
without the need for a rights 
issue." 

BAA is proposing a final divi- 
dend of 22.25p, giving a total of 
lBp, a 12.5 per cent increase. 
Earnings per share rose 12.7 per 
cent to47p. 

The company is also proposing 
a scrip dividend to allow share- 
holders to take their payments in 
shares instead of rash 
Lex, Page l& Details. Page 24 


Contact us in: 
London on 071 990 $139 
Frankfurt on 069 2740 2122 



bsxd by Kkiownt Stoun Linked, a member of SFA jad EMA 





FINANCIAL TIMES TUESDAY JUNE 7 1994 


20 

INTERNATIONAL COMPANIES AND FINANCE 


France warned on role 
in Meridien hotels sale 


Philips leaves dark days behind 

The semiconductor side is investing again, writes Ronald van de Krol 


By Michael Skapinher, Leisure 
Industries Correspondent 

Forte of the UK yesterday 
received a boost in its battle to 
win control of the Meridien 
hotel chain , as the European 
Co mmissio n appeared to warn 
the French government against 
political interference in the 
sale. 

Forte is pitted against Accor, 
the French hotel group, for 
control of Meridien, which is 57 
per cent owned by Air France. 
FOrte's bid, supported by the 
Meridien management, values 
the chain at FFrlilbn ($317m). 
Accor has submitted a bid 
which values it at FFrl.Ghn, 
with the cash to be provided by 
Prince al-Waleed of Saudi 
Arabia. The prince last week 


By C hris topher Brown-Humes 
in Helsinki 

Losses at Kansallis-Osake- 
Pankki, Finland’s leading com- 
mercial bank, narrowed 
sharply to FM275m (550m) from 
FM626m in the first four 
months, as it benefited from 
reduced credit losses, new 
business and lower Interest 
rates. 

However, it said it expected 
a fall-year deficit of up to 
FMlbn before returning to file 
black next year. Last year, the 
bank made a FMZGGbn loss, in 
its third consecutive year in 
the red. 


By Andrew Jack In London 

Five of the UK's “Big Six” 
accountancy firms experienced 
virtually stagnant fee incomes 
and cut staff sharply in the last 
year, according to figures 
released yesterday. 

Only Andersen - comprising 
Arthur Andersen and Ander- 
sen Consulting * showed 
appreciable growth, with reve- 
nues excluding expenses up 
1L7 per cent and an increase in 
both partners and other profes- 
sional accountancy staff. The 
changes elevated Andersen, 
the UK arm of the only truly 


also announced he would buy 
up to 24 per cent of the Euro 
Disney theme park. 

Air France has referred the 
rival bids to the privatisation 
commission, an independent 
body which advises the French 
government on privatisation 
issues. The referral was seen 
on both sides of the English 
Channel as evidence of strong 
pressure on Air France to sell 
Meridien to a French buyer. 

The European Commission's 
warning appears in a letter to 
the French government carried 
in the Official Journal of the 
European Communities. 

The letter contains the Com- 
mission's comments on the 
French government's plan to 
provide a FFr20bn capital 
injection to Air France. 


The recent improvement was 
attributed mainly to the drop 
in credit losses, from FM933m 
to FM537m. This would have 
been much higher had the 
bank not anticipated continu- 
ing problems by establishing a 
FM900m general provision at 
the end of last year. It used all 
but FMSOOm of the facility in 
the first four months. 

Non-performing assets also 
showed a downward trend, fell- 
ing to FM6.8bn at the end of 
April from FM7.5bn at the start 
of the year. 

Income from financial 
operations rose to FM769m 
from FM666m. Deposit and 


global accountancy partner- 
ship, to the third largest firm 
in the country, compared with 
sixth place two years ago. 

Among thw six large firms. 
Touche Ross suffered most 
from recession, reporting the 
only absolute decline in reve- 
nues: by 0.8 per cent to £33£9m 
($499.35in) including a slump in 
insolvency income. 

Last year all the firms except 
Andersen reported absolute 
revenue declines and cut staff: 
reductions in staffing have 
continued, with Price Water- 
house cutting professionals by 
409. It cut partner numbers by 


It says: “The Commission 
needs to be assured that the 
government will allow Air 
France's management to run 
the companies of the group 
solely according to commercial 
principles — In this context, 
the Commission would refer 
particularly to the disposal of 
certain non-core assets." 

Mr Gerard Pelisson, Accor’s 
joint cturiy T pan , yrjri yesterday 
Accor’s bid should succeed, 
even on purely commercial 
grounds. He said: “In a com- 
mercial deal, price is only one 
element. It’s never been the 
only element. It would be 
absurd to envisage it as the 
only criterion.” He said Accor 
would be in a better position 
than Forte to assist Air France 
to became economically viable. 


lending activity increased, fol- 
lowing the bank's acquisition 
of Savings Bank of Finland 
businesses, while lower inter- 
est rates cut the costs of fund- 
ing non-performing loans. 

Non-Interest income fell 18 
per cent to FM752m. 

Last year’s figure was helped 
by sales of forest land and 
property. Expenses rose 1 per 
cent to FMU4bn. 

Mr Pertti Voutilainen, chief 
executive, said credit losses 
would weigh heavily on the 
Finnish hanking sector in 1994 
and 1995, despite an i mp rov in g 
economy and falling sector 

h a Tilt 


67, although it said 60 were 
being reallocated to full-time 
work in other countries. 

The figures are compiled 
with comparable year-ends and 
exclude income from the Chan- 
nel Islands. The Big Six firms 
audit the vast majority of UK 
quoted companies and are sub- 
stantially larger than any com- 
petitors. 

Grant Thornton, next in size, 
reported fee income down 6 per 
cent to £107m. BDO Binder 
Hamlyn, most parts of which 
are expected shortly to merge 
with Andersen, reported fees 
down L8 per cent to £10&5m. 


BPC board 
postpones 
share 
flotation 

By Maggie Uny and 
Paul Taylor in London 

; The London stock market 
retreat claimed another corpo- 
rate victim yesterday when 
file planned flotation of Brit- 
ish Printing Company, the 
UK’s largest commercial 
i printer, was postponed. 

BPC’s board said it had 
“decided to delay its approach 
to the market until a time 
when the market environment 
is considered to be more pre- 
dictable”. It was now unlikely 
to seek a listing before the and 
of the year. 

But there was no sign yes- 
terday of other significant 
forthcoming issues being pol- 
led. New issue experts believe 
there Is still good demand for 
shares in well managed com- 
panies, if correctly priced. 

Advisers to Eurodollar, Pil- 
lar Properties, Chesterton 
International, 31 and Exco, for 
instance, said they had no 
plans to delay issues due 
before the summer break. 
However, they were watching 
the market carefully and had 
time to postpone if neces sa r y. 

BPC announced its plans for 
a summer stock market debut 
- expected to value the group 
at around £250m (5375m) - 
early last month. The funds 
raised would bave been used 
to repay debt associated with 
the management buy-out of 
the hngfwpfig from the Mr 
Robert Maxwell's business 
empire in January 1989, 
thereby eliminating about 
£25m a year in interest costs. 

The group’s high level of 
debt meant that a relatively 
small cut in the prospective 
issue price had a dispropor- 
tionately large effect on the 
value of the eqnity. It is 
thought Mezzanine Manage- 
ment, which led a second refi- 
nancing in mid 1992, had 
objected to cutting the issue 
price. 

BPC’s postponement is the 
latest sign of trouble in the 
new issue market One mer- 
chant banker said there could 
be other highly leveraged com- 
panies which must now be 
looking at re financin g debt 
rather than relying on a Dota- 
tion to repay lenders. 

Lex, Page 18 


A fter years of cost- 
cutting, the semicon- 
ductor division of Phil- 
ips, the Dutch electronics 
group, is spending again as it 
celebrates a return to profit- 
ability. 

Philips is even considering a 
new chip factory, which could 
cost up to Slbn. If built, it 
would represent the largest 

single investment by the com- 
pany since its financial crisis 
began in 1990. 

A decision on the plant is 
expected late this year - but 
the fact that such a large 
investment is being contem- 
plated underscores the change 
in fortunes at Europe’s biggest 
semiconductor maker. 

Even without the plant. 
Philips is aiming to double 
investments in fixed assets this 
year, to around FI 600m 
(5325m) from FI 300m in 1993, 
according to Mr Doug Dunn, 
who is about to mark his first 
anniversary as head of Philips' 
semiconductor business. He 
was formerly managing direc- 
tor of GEC Plessey Semi- 
conductors. 

Expenditure on research and 
development is set to remain at 
15 per of safes, altho u g h 
this will rise in absolute terms 
because of an expected sharp 
increase in the division’s 
turnover during the next few 
years. 

Besides stepping up invest- 
ments, Mr Dunn says he wants 
to pursue swift sales growth, 
putting an e n d to the ba d fimas 
of the early 1990s when the 
division concentrated on 
retrenchment 

Recalling his arrival at Phil- 
ips' semiconductor division, Mr 
Dunn notes: “The organisation 
had been focused - quite prop- 
erty, as yon have to be for sur- 
vival - not on growth, but on 
cost-cutting, cost-cutting and 


By Alice Rawsthom 
in Paris 

CGIP, the French holding 
company that has been raising 
capital through disposals, is on 
course for a return to strong 
profits growth in 1994, accord- 
ing to Mr Emest-Anotione Seil- 
lifere, chairman 
Mr Sefllifire told sharehold- 
ers at yesterday’s annual gen- 


more cost-cutting.” 

Philips’ return to heavier 
investment in semiconductors 
is a milestone for the division 
and a welcome turaround from 
1990, when the group aban- 
doned pilot production of one- 
megabit static random access 
memory (S-Ram) chips. It did 
this to ■ tfeHTTiffh the drain of 
cash into a project that had 
generated prestige but pro- 
duced heavy losses. 

Semiconductors returned to 
profitability in 1992. The rise 
became more pronounced in 
1933 and, in the 1994 first quar- 
ter, con tinned to strengthen. 
Precise figures for semiconduc- 
tors, which are part of the com- 
ponents and semiconductors 
product sector, are not pub- 
lished. 

However, the components 
and semiconductors sector as a 
whole was the group’s biggest 
earn a* in the first quarter, con- 
tributing FI 372m of total group 
operating profit of FI 695m. It 
edged out lighting as the com- 
pany’s traditional “cash cow”. 

Philips does not dispute 
Dataquesfs estimate that 1993 
sales of semiconductors 
amounted to around F14.1bn. 
On profitability, Mr Dunn will 
say only that margins are 
clearly in double di gits 

“When it comes down to 
income from operations, or 
profit, we are the best in 
Europe, and very close to the 
best in the world,” be 
says. 

The business generates 
enough cash to pay for invest- 
ments, including the pnscihlft 
chip factory. However, Mr 
Dunn stresses that a com- 
pletely new plant is not the 
only option, and he has yet to 
present any one plan to the 
group's board. 

One altenative would be to 
increase capacity at Philips’ 


eral meeting that he expected 
to see “a significant boost to 
earnings” this year. 

CGIP, which earlier this year 
raised FFr994m (5175m) from a 
convertible bond issue, 
recently reported flat profits 
for 1993, at FFr547m against 
FFr542m in 1992. 

However, the board yester- 
day proposed an increase in 
the dividend, to FFr34 for 1993 



Dong Dunn: ‘We’re feeling 
very pleased with ourselves* 


plant in the Dutch town of 
Nijmegen, where there is still 
same vacant space. 

This, however, would not 
produce as much extra capac- 
ity as a new plant Mr Dunn 
said Philips might also con- 
sider building the plant with 
other semiconductor makers, 
thereby spreading the cost 
The plant could be built 
anywhere in the world, he 
added. 

Philips currently has chip 
factories in the Netherlands, 
Germany, Britain, France and 
the US. as well as assembly 
operations in several locations 
in Asia. 

T he division’s return to 
profit is partly due to 
the general industry 
upswing. However, the 
rebound at Philips is also the 
result of an internal shake-up 
by Mr Dunn’s predecessor, Mr 
Heinz Hagmeister, who cut 


compared with FFr32 for the 
previous year, as a reflection 
of its confidence in the 
fixture. 

Mr Seillfere said this year’s 
increase in profits would be 
partly due to “an improved 
contribution” from CGEP’s 
interests, which include a 32 
per cent stake in the Carnaud- 
MetalBox packaging concern 
and 20 pm- cent of Cap Sogeti 


operating costs by FI 500m a 
year and pruned unprofitable 
products, roughly halving Phil- 
ip's range of semiconductors 
and integrated circuits to some 
20.000 products. 

Philips’ strong growth in 
semiconductors has been 
achieved in spite of the compa- 
ny’s absence from die market’s 
two fastest-growing segments, 
memory chips and micro- 
processors destined for 
personal computers. This 
absence is a legacy of Philips’ 
own withdrawal from PCs, plus 
the halt to S-Ram development 

The company, however, has 
profited from its strength in 
chips for computer peripherals, 
and in products for mobile 
communications. Another best- 
selling item is the “1-chip TV”, 
an electronics component used 
in advanced television sets. 

“We are still astonished by 
demand for this chip, and we 
still are struggling to meet our 
customers’ expections and, 
indeed, we cannot meet their 
expectations in quantity 
terms,” he says. 

In spite of the division’s 
improvements, there are still 
challenges to be met 

One goal is to develop exper- 
tise in memory chips with 
imbedded logic for signal pro- 
cessing. in keeping with the 
television set’s development as 
a multimedia machine based 
on digital rather than analog 
signals. “We have a straight 
choice of developing these our- 
selves or doing a licence 
[deal],” he says. 

Another priority, according 
to Mr Dunn, is to improve Phil- 
ips' identification of marketing 
opportunities and to come up 
with solutions demanded by 
the marketplace. 

"We're feeling very pleased 
with ourselves, but we can do 
even better.” he says. 


Gemini, the computer services 
group. 

CGIP should also benefit 
from the ra pi tal gains on dis- 
posals, including the recent 
sale of control of Cedest to 
Holderbank. the Swiss cement 
group, for FFr39bn. The group 
has been raising new capital to 
help pay for last year's deal 
whereby it lifted its stake in 
CamaudMetalBax. 


Finnish bank reduces losses 


Andersen bucks accountancy trend 


CGIP forecasts profits growth for full year 


. This announcement appears as a matter of record only. 

The controlling shareholders have sold 
62% of the common shares 


in 



Compama Nacional de Cerveza, S. A. 

(A corporation, Socicdad Anonhna, organised under the laws of the Republic of Peru.) 


to 


Backus & Johnston, S.A. 


Baring Brothers & Co., Limited initiated the transaction and acted as financial advisor to the controlling share ho Wets. 



Baring Brothers & Co., Limited 


M<- <* »• CDOS* m*S 


THE KOREA-EUROPE FUND LIMITED 

Iotenutkmal Depositary Receipts 
famed by 

Morgan Guaranty Trust Company of New York 
evidencing BeoeCda] Certificates representing 500 Units 

N oiks is hereby given to (be chnreboMets (hat the Kates- Europe Fund Limited 
decided so interim dividend of USSJ.0I per share. The iccanf dale fat ibe dividend 
n 1 June 1944. 

The dividend has suffered UK tax. 

Asaf 15 Jane. 1904 psym<^ pf coupon number 7 of die International Dcpositaiy 
MU be made m US Dollars at ilie rate of USSSXO per 1DR. PSymert wilJ 
Yoft . "“uTihe fallowing offices of Moigao Oueranrjr Trust Company of New 

35 . Avema* dea Aits 
Victoria Embankment 
+IM 6 , Maimer Laudstme 

Z “ neh * akStackei^wc 

Dcposttaiy. Guaruny Trust Company of tfew York; 

■». Aeeaqc dea Alta. 1040 Brussels 


I 


Instituto de Crecfto OfidaJ 

US$ 450,000,000 

Statutoffly G uaran teed Floating Rate Notes due 1997 

In accordance with the Terms and Conditions of the Notes, no- 
tice is hereby given that far the IniBest f^riod from June (ft 1994 
to December®. 1994 the Notes wifl carry an Interest Rate of 
5.05% peranmm 

The Coupon Amount payabla an the relevant Interest Payment 
Date, December®. 1994 wS be USS 25951 per US$10,000 prin- 
cipal anount of Nate and USS 2.595.14 per US$100,000 principal 

amount of Note. _ _ _ , 

The Agent Bank 

Kredietbank S. A Luxem bourgeois© 


LOW COST 1 

SHARE DEALING SERVICE ON 1-94401 II 


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THE BUSINESS 
SECTION 


s^md Bmp Kaibr A Saaiiij. 

RoxiMki 

MiteeiHiiLian Q7KTO2309 « 
KaUnjMaaaaOTt-rofSO 
01 adte tn tea m neHnaacM 
One Soofemfc Bridge. 
London SD £UL 


Second Notice of General Meetina 


Meeting of Guaranteed Exchangeable 
Bonds due 2003 Square D. 

The General Meeting of the Masse of the holders of the 2 per cent Guaranteed 
Exchangeable Bonds due 2003 of Square D Company, invited by a first notice to 
attend the General Meeting on 31 st May 1994, having been unable to deliberate, the 
quorum being not present, the holders of such bonds are invited to attend the General 
Meeting to be held on 16th June 1994 at 9.00 am. at the office of the Compagnie 
Financiers de CIC et de (Union EuropAenne, 4, rue Gaillon. Paris 2®. to consider the 
following agenda: 

• The report of the Board of Directors, 

• The approval, subject to the decision of the General Meeting of the shareholders of 
Schneider SA, of the authorization given to the Board of Directors of Schneider SA to: 

- issue shares of Schneider SA with or without warrants for a maximum nominal 
amount of FF 3 billion, 

- issue bonds, other tradeable securities or subordinated securities which are conver- 
tible into, exchangeable for or reimbursable with, shares, for a maximum nominal 
amount of FF 5 billion, 

- issue warrants representing subscription rights to an aggregate number of shares 
which can total no more than a nominal amount of FF 2 billion. 

In connection with any such Issuance of Securities and shares, Schneider's share- 
holders should renounce any preferential subscription rights. 

• The approval, subject to the decision of the General Meeting of the shareholders 
of Schneider SA, of the authorization given to the Board of Directors to approve 
the issuance of shares in connection with the issuance, by companies in which 
Schneider SA holds, directly or indirectly, a majority of the outstanding share capital, 
of warrants, bonds, other tradeable securities or subordinated securities which are 
convertible into, exchangeable for or reimbursable with, shares. In connection with 
any issuance of shares. Schneiders shareholders should renounce any preferential 
subscription rights. Furthermore the issuance of any such shares is limited to an 
aggregate nominal capital increase of FF 3 billion. 

• Any other business. 

In order to attend or be represented at the meeting, holders of bonds must deposit, at 
least five clear days prior to the meeting at the head office, the certificate of deposit 
issued by the bank, financial institution or stockbroker with whom the bonds are 
lodged. 

THE BOARD OF DIRECTORS 


GROUPE SCHNEIDER 



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21 



FINANCIAL TIMES TUESDAY JUNE 7 J994 


INTERNATIONAL COMPANIES AND FINANCE 


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Argentina to sell 
off iremaining 
20% of YPF 


By John BaurtMuioi and Stephen 
HdkrfriSuefKJS Airas 

Argaitina yesterday came out 
la : favour of seeing the govern- 
rpenfs remaining 20 per cent 
stake in YPF a the privatised oil ' 
. company. -.r I . 

The tel. is/ expected to 
raise about $L8bn at current 
prices. . . 

.. Mr Domingo ..Cavallo, the 
economy minister, said that 
th^govstiment^ras in favour 
of tbs sale with one condition. 
Th^ 'salfi dake Is being 

.heavily promotaLby members 
of the governing: Peranist party 
in Congress. . 

Mr Cavalto-said- Ttt depends 
on theTise the resonrcea would 
JttH&tcLjF used, for develop- 
ment Of tti» interior^ we would 
view ^positively. Jf there was 
a ' one-off d istributi on of -the 
resources assistance, it 
w ould ' beaftenror.” / 

' YPFC' Argentina’s biggBst 
company, was privatised. In 
June last -year in a' $3.04bn 
local aMintenmtional share 
offering; .The gcwennneiit sold 
.45 per cent af YPF to investors, 
held ' on to a 20 per cent stake 
and sold 1 tile remaining shares 
. to wbriters, .provimdal ^ govem- 

inentsandpe^oofira... 



Domingo Cavallo: decision 
in two or three months 

. YFE.nbw has a market capi- 
talisation of close to J»im. 

Last week members of Con- 
gress proposed selling the gov- 
ernment's shares in YPF to 
finance construction of 100,000 
houses in the run-up to next 
year's presidential election. 

Mr Cavallo said the sale 
would be carried out through a 
public offering, but warned 
that debates in Congress and 
discussion over the use of -the 
money mw»mp that a final .deci- 
sion would probably only be 
taken in two or three mnirtha 


Domtar to spin off gypsum 
andwallboard businesses 


By/Robert GBjbana ta Montreal 

Donriar j • thb big Canadian 
construction materials, pulp 
and paper tand'. packaging 
group; plans io spin offitsgyp- 
cirm, wagboarfl- and decorative 
panels business' wtth. an initial 
-public. (rifilcinj^therTJS and 
possibly.: ^Janada that could 
raise jnora ^than - C$4 00m 
<DS$m8nft v ;; v. 

The assets, valaed at about 
C^Oin ljave already been put 
into fi'jiewJbO pa- cent-owned 
subsidiary i, called America 
Korth'ftj^tsixite.fANI), includ- 
ing! S-wallboard plants plus 
gypsnm-ndnlng operations, 
looted mnsrt^across the us 

Doaii^ .Sfe as North 
America's ;t^d-biggest .wall-- 
* • j • j ibaainMS 


is recovering sharply with a 
rising US home building mar- 
ket. » ’ 

ANI also includes Donator's 
highly-profi table decorative 
parwia business. 

The initial public offer will 
be made through Kidder Pea- 
body and Salomon Bros as lead 
. underwriters. Concurrently 
ANI will raise another 
US$125m via a public note 
issue. 

Domtar could retain np to 40 
per cent of ANL It has already 
spun off its newsprint unit in a 
C$289m initial public offer. It 
wants to concentrate now on 
its communications and busi- 
ness papers unit, speciality 
Ana papers and p ackag in g 

It is trying to negotiate man- 
agement buy-outs of two pulp 
. mills in eastern Canada. 


Cox climbs to third in US cable-TV league 

Louise Kehoe examines the Atlanta-based company’s $2.3bn deal with the media group Times Mirror 


T imes Mirror, the US 
media group, reached a 
definitive agreement 
over the weekend to sell its 
cable television operations to 
Cox Enterprises, a privately- 
held Atlanta-based cable televi- 
sion and publishing group. 

The complex $2.3bn deal 

Involves thg wnhanff g of StOCk 

and debt. It will make Cox 
Cable, the Cox Enterprises 
cable unit, the third largest US 
cable-TV company, after Tele- 
communications and Time 
Warner, with around 3.1m sub- 
scribers. 

Currently. Cox Cable is the 
sixth largest US cable-TV 
company with 13m subscrib- 
ers. The. acquisition will 
provide Cox with the econo- 
mies of scale needed to com- 
pete aggressively In the 
emerging market for broad- 
band interactive multimedia 
communications services to 


the home, said Mr James 
Robbins, president of Cox 
Cable. 

Mr Robbins will also become 
chief executive of the merged 
operations. Through the 
merger, Cox will acquire cable 
TV systems in some of the 
most populous areas of 
southern California and 
Arizona. 

The Cox-Times Mirror deal 
signals renewed investment 
interest in the cable-TV sector, 
which had cooled following the 
collapse of two planned tele- 
phone company-cable TV deals 
involving Bell Atlantic and 
TCI, and Southwestern Bell 
and Cox, ember this year. 

These agreements were scut- 
tled by concerns about regula- 
tory moves to cut cable-TV ser- 
vice prices by the Federal 
fi nmwimiic ati ons Commission. 

“While we are not at all 
happy about the current state 


Under the terms of the deal, most of Times Mirror’s shareholders 
will receive app r ox imately 20 per cent of Cox Cable's stock, 
valued at about 3932m. limes Mirror’s largest holder, the Chan- 
dler Trusts, is precluded from holding shares in Cox. Instead, 
they will receive new preferred stock with an equivalent value 
in Times Mirror. 

In addition. Times Mirror will borrow about Sl-36bn and Cox 
trill assume the debt while Times Mirror retains the funds. 


of regulation, we believe 
strongly in the long-term cost 
effectiveness of the broadband 
platform,” said Mr Robbins. 
“That’s what this deal is all 
about” 

The Cox-Times Mirror deal 
may encourage further consoli- 
dation in the cable-TV indus- 
try, analysts said. Several 
smaller cable-TV companies 
are said to be looking for 
buyers. 

The cable-TV industry is 
being transformed by advances 
in technology that herald the 
emergence of “interactive” 


television services such as 
“vldeo-on-demand”. TV shop- 
ping and news and information 
services. 

However, only the largest 
cable-TV companies can afford 
to upgrade their networks to 
provide such services. They 
also face potential competition 
from telephone companies 
which are also pl anning to 
transmit interactive TV ser- 
vices over their networks. 

For Times Mirror the deal 
reflects a decision, reached 
late last year, to refocus on 
its publishing operations. The 


group owns the Los Angeles 
Times, Newsday. and several 
other US newspapers and mag- 
azines. 

Analysts said that Times 
Mirror recognised that it would 
have to make substantial 
investments to upgrade its 
cable-TV operations to re main 
competitive and chose instead 
to focus on its “core competen- 
cies" in publishing. 

“With this merger, we have 
committed our future to the 
content side of the information 
highway and have gained sub- 
stantial resources to pursue 
mu- growth strategy,*’ said Mr 
Robert Erburu, chairman, pres- 
ident and chief executive of 
Times Mirror. 

Times Mirror aims to become 
a leading supplier of informa- 
tion and programming for digi- 
tal media services, he said. The 
group plans to grow “through 
the application of new technol- 


ogies and global expansion as 
well as building new positions 
in consumer multimedia”, he 
declared. 

As part of their agreement. 
Times Mirror and Cox Cable 
will form a partnership to 
develop and Invest in cable 
television programming, the 
companies said. Times Mirror 

Will mana ge this partnership. 

A new Outdoor Life TV 
channel, previously announced 
by Times Mirror, will be 
funded by the new partnership. 
The companies have also 
agreed to explore a collabora- 
tive test of interactive informa- 
tion and entertainment ser- 
vices in Southern California. 

Times Mirror said that it will 
reduce its stock dividend, fol- 
lowing the completion of the 
deal, to “enable us to make 
very sizeable investments in 
promising information busi- 
nesses”. 


NEWS DIGEST 


Malaysia 
futures 
trade soon 

A financial futures market 
trading three-m on t h interbank 
interest rates could start in 
Malaysia as early as Septem- 
ber, Reuter reports from Kuala 
Lumpur. 

“We’re working toward a 
September target,” said the 
Kuala Lumpur Commodity 
Exchange. However, the Secu- 
rities .Commission, which will 
regulate the new market said: 
“It all depends on when the 
regulatory requirement for a 
single clearing house is in 
place.” 

The commission urged the 
Kuala Lumpur Futures Market 
(KLFM) and rival Kuala Lum- 
pur - Options and Financial 
Futures Exchange (Kloffe) 
“to work harder at bringing 
about a single clearing house 
facility-. 

KLFM, run by the commod- 
ity exchange, will initially 
trade in the three-month Kuala 
Lumpur interbank offered rate 
(Klibor). 

Kloffe, which is not expected 
to begin operations until late 
next year, will trade in stock 
-index, futures. 


KLFM nffiriaig sa i d it is pos- 
sible they could set up a clear- 
ing house which Kloffe could 
join later. 

GMA lifts stake in 
Dominion Minin g 

Gold Mina? of Australia, the 
Perth-based mining company 
which launched a surprise all- 
share bid for the larger Domin- 
ion Mining group on Friday, 
said yesterday it had lifted its 
share stake in the target com- 
pany to 93 per cent, writes 
Nikki Tail The shares were 
bought at an average price of 
just under 44 cents each, cost- 
ing GMA about A$17m 
(TTS $i2_2m )- The hid is worth 
around A$18Qm. 

Aros to quit bonds 
market- making 

Aros Fondkoznmission, the 
Swedish broker, plans to with- 
draw from marka t- maWng in 
Swedish government bonds, 
Reuter reports from Stock- 
holm. 

It said it was withdrawing 
because of the difficulties of 
making a profit in recent tur- 
bulent conditions. Aros, owned 
by engineering group Asea 
Brown Boveri, is mainly 
involved in stockbroking, cor- 
porate finance and commercial 
paper programmes. 


Aro9, which began to make a 
market in state debt last 
autumn, said: “During the tur- 
bulent spring [debt] market it 
has been difficult for a new 
market-maker to reach a satis- 
factory profitability from this 
business.” 

In April and May the Aros 
made a positive result. It said 
it would continue to make a 
market in state T-bills and 
related derivatives as well as 
commercial paper. 

Heavy losses for 
Italian bank 

Banco di Sicilia, the leading 
financial institution on the 
island, has reported 1993 losses 
of L849bn ($502m), one the of 
the biggest annual losses 
recorded by an Italian regional 
bank, writes Robert Graham 
in Rome. 

The bank is 14 per cent 
owned by the Treasury and the 
remainder is held by a founda- 
tion controlled by the Sicilian 
regional government The 
losses, which compare with a 
break-even in 1992, are in line 
with estimates made by a Bank 
of Italy inspection last year. 

The latter led to the resig- 
nation of several senior exec- 
utives and an investigation by 
Palermo magistrates. 

Finalisation of the 1993 
accounts should pave the way 
for a L949bn capital increase 


funded by the Treasury and 
the Sicilian regional govern- 
ment In addition to the losses, 
the bank has accumulated 
doubtftil loans of MJlOObn, 
equivalent to 7 per cent of the 
those in the Italian banking 
system. 

Cameco proceeds 
with Kumtor project 

Cameco, the big Canadian ura- 
nium producer, said it is pro- 
ceeding with the development 
of the US|300m Kumtor gold 
mining project in the former 
Soviet republic of K y i-g y zlstan 
in central Asia, writes Robert 
Gfbbens in MantreaL 

Cameco is an operator with a 
one-third interest. A two-thirds 
interest is held by state-owned 
Kyrgyzaltan. Start up is due in 
1997. 

Kumtor has estimated 
reserves of 16.6m oz of gold, of 
which 63m oz can be mined by 
open-pit methods. 

Preussag ahead in 
opening half 

Net profits at Preussag, the 
diversified German steel, plant 
construction, energy and met- 
als trading group, rose by 
DMBm to nimiTn ($71.2m) in 
the six TTHinthfi to Kid-March. 
Turnover rose to DMll.lbn 
from DM109bn. 


Foster’s reorganises 
its brewing interests 


By Ntkki Taft 
in {Sydney 

Foster's Brewing. the 
Australian beer manufacturer 
which also owns Courage in 
the UK, yesterday announced a 
reorganisation of its brewing 
interests into four divisions 
based on geographical bound- 
aries, and a reshuffle of top 
executive responsibilities. 

The four divisions will be 
Australasia (taking in the 
Carlton and United Breweries 
business), North America 
(Molson Breweries), the UK/ 
Europe (Courage), and a 


newly-created Asia division. 

Mr Pat Stone, current CUB 
manag in g director, is quitting 
Foster’s “to pursue private 
interests”. Mr Ted Kunkel, Fos- 
ter’s chief executive, will take 
responsibility for this division. 

Mr Nuno D'Aquino, former 
director of operations and CUB 
and International, becomes 
chief operating officer of this 
division. 

Head of the new Asian arm 
will be Mr Peter Williamson, 
previously direc tor o f sales and 
distribution at CUR The Mol- 
son and Courage operations 
are largely unchanged. 


Molson unit in SA deal 


Diversey, the special chemicals 
arm of Canada's Molson brew- 
ing group, has bought the 
cleaning chemicals division of 
Chemrite in South Africa, 
writes Robert Gibbens in 
Montreal. 

The deal gives Diversey a 
third foothold for expansion on 
the African continent. It 
already operates in Kenya and 
Egypt 

“South Africa is the founda- 
tion for our expansion across 


the entire southern cone of 
Africa,” said Mr David Hull, 
Molson's senior vice-president 
for international operations. 

He would not reveal the 
price but said local manage- 
ment would retain a minority 
stake in the business. 

The Chemrite division has 
been making chemicals under 
licence from Diversey since 
1981. Diversey operates in 45 
countries with annual sales of 
well over C$lbn. 


ri!>e 





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London, New York, Tokyo 

Amsterdam, Auckland, Bangkok, Boston, Chicago, Frankfurt, Geneva, Hong Kong, Istanbul 
Kuala Lumpur, Luxembourg, Madrid, Melbourne, Milan, Montreal, Moscow,. Osaka, Paris 
Seoul, Singapore, Stockholm, Sydney, Taipei, Toronto, Vancouver, Warsaw, Wellington, Zurich 


FINANCIAL TIMES TUESDAY JUNE 7 1994 



INTERNATIONAL COMPANIES AND FINANCE 


Log-jam along the Rajang river 

Many Malaysian timber groups plan to float, writes Kieran Cooke 

T _ uncertainties and from t! 

lie Rajang mar, pressures on their activities I 

Malaysia’s longest Environmental ktouos. 

waterway, is a mile 


Overseas 
units behind 
sharp rise 
at Citic 


Higher margins 
help Email to 
A$87m for year 

By Nikki Taft: in Sydney 

Email, the Australian white- 
goods and building-products 
manufacturer, yesterday 
announced a 58.3 per cent 
Increase in after-tax profits for 
the year to end-March. to 
A$87.3m (US$65 .9m). The rise 
was achieved on operating rev- 
enues of A$1.8bn, up from 
A$1.47bn a year earlier. 

The figures included a nine- 
month contribution from 
National Consolidated, the 
building-products and formed- 
metal business, which added 
around A$13.7m to after-tax 
profits. However, earnings per 
share stDl rose significantly, to 
34J cents from 21.7 cents on a 
fully-diluted basis. 

rirnnfl said that margins rose 
by one-fifth, due to productiv- 
ity gains, cost reductions and 
some volume gains. Export 
sales also rose significantly. 


Thailand’s Imperial 
Hotels sold for $132m 


By Wffllam Barnes 
in Bangkok 

Thailand's Imperial Hotels 
Group has been sold to Mr 
Charoen S irlw att a napakdi, one 
of the country's richest men, in 
a deal which values the com- 
pany at 8132m. 

The transaction is thought to 
rank among the largest in 
Thailand. 

Imperial Hotels ran into 
financial difficulties after it 
opened the 1,400-roam Imperial 
Queen’s Park Hotel - Bang- 
kok’s biggest - two years ago 
at a time when the number of 
foreign tourists arriving was in 
decline following file military’s 
suppression of pro-democracy 
demonstrations. 

Mr Akom Hoontrakul sold 
his family’s 70 per cent stake 
in eight hotels for Bt33 a share. 
This shows a premium of some 
10 per cent to 12 per cent over 


its net asset value, which 
includes debts of at least 
Bt3.5bn (8138m) but also a land 
hank and lucrative smaller city 
hotels. 

Mr Charoen controls the pri- 
vately-owned Thai whisky 
maker Sura Thip, which last 
year opened a Joint beer- 
making venture with Carls- 
berg, the Danish brewer. 

He also has hanking and 
insurance interests. 

• International Broadcasting 
Corp, the Thai cable television 
operator, confirmed that it is 
in talks with Mr Rupert Mur- 
doch's Star TV, AP-DJ reports 
from Bangkok. 

An IBC spokeswoman said 
that the operator was p lanning 
to double its numb er of chan- 
nels to 10, and that it was 
talking with Star TV about 
obtaining news and entertain- 
ment to fill its programming 
needs. 



•sc securities were privately placed under Rule 144A under the Securities Act of 1933 and 
V not be offered or sold in the United States absent, registration or an applicable exemption 
from the registration requirements. These securities having been previously sold, this 
announcement appears as a matter of record only. 

THE BANK OF NEW YORK 


is pleased go announce 
the establishment of a 


SPONSORED I44A AMERICAN DEPOSITARY 
RECEIPT (ADR) FACILITY 


Autoliv AB 


THE 


YORK 


Rtf fiirthcr information regarding The Bank of New Yorks Depositary Receipt 
Services, please contact Kenneth A Lopian in New York (212) 815-2084^ Michael 
McAiUific (071 } 322-6536 or Diana E. Barham (071 ) 322-6338 in London. 


imimmiimimmimi 



£500,000,000 

Floating Race Nates 1999 

In JCConLtnfle with the 
provisions of the Notts, notice k 
hereby given dut, for the three 
month period 3rd June, 1994 to 
5tb Septembe r , 1994, the Notes 
will bear interest at the rate 
of 5.1292 per conr. per annum. 
Coupon No. 2 will therefore be 
payable on 5th Seine 


payable on 5rh September. 1994, 
at £1 446.70 per coupon from 
Notes of £100,000 nominal and 
£124.67 per coupon from Notes 
of £10,000 nominal. 

S.G.Warborg & Co. Ltd. 

Agent Bank 


Mistral International 
limited 

US$1,100,000,000 
Variable rate notes 2005 
The notes mill bear interest at 
S.3000X per annum for the 
interest period 7 June 1994 to 
7 September 1994. Interest 
payable on 7 September 1994 
mM amount to USSI3,28fL89 
per USSI. 000,000 note. 

Agent; Morgan Guaranty 
Trust Company 


TOP FINANCE (BERMUDA) D LTD 
US* 25,000.000 

FLOATING BATE NOTES DUE 2QQQ 

Notice b hereby given Iku for the 
bUMt period from 7 Jaw IBM la 7 
December ISM the nous wffl cany te 
iatnem Me of & 1S7BH per muon. 

j&OTH 

As Agent Suric 


COMPAGNIE RANCAIRE 
£100.000,000 

Floating Kate Notes dun 1995 
In accordance with the provisions of 
the Notes, notice is hereby given 
that the Rale of Interest Gar 
the three month period gutting 
2nd Septe mber, 1994 has been fixed 
at 5375% per annum. The interest 
accruing tor such three month 
period wiB be £135.48 per £10,000 
Bearer Note, and £1434.79 per 
£100,000 Bearer Nate, OR 2nd 
September, 1994 against presenta- 
tion of Coupon No. 8. 

Unira Buk of Switzerland 

London Branch Agem Bank \37 
2nd June, 19W 


By Tony Walker 

In Betpng 

flhtna TutemaHrinq] Trust and 
Investment Corporation 
(Citic), fiie Chinese investment 
conglomerate, sharply 
increased profits last year to 
Yn&35bu ($389 Jim), compared 
with Yn380m In 1992. 

Citic, which is rapidly devek 
A ping * its domestic flsd inter- 
national business, attributed 
file improved performance to a 
bigger contribution from over- 
seas subsidiaries and stranger 
domestic management 

The company, established in 
1979 as a channel for foreign 
investment in China, contin- 
ued in 1993 to i uw m *» inter- 
national borrowings, raising 
8440m in the international 
debt markets. 

This takes to $2bn the 
amount raised abroad in 18 
bond issues. Among Citic’s 
1993 capital raisings was a 
8250m 10-year bond in the US. 

Citic’s assets at the end of 
last year stood at Yn82.8Bn 
against current and long-term 
liabilities of Yn?3.3bn. Citic 
managers say they are com- 
mitted to reducing indebted- 
ness, bat acknowledge this 
will not be easy in the present 
growth phase. 

Mr Wei Mingyi, Otic’s chair- 
man, writing in the company’s 
aimmi report, commended the 
performance of Citic Australia 
which had been “profitable" 
for the past six years. He 
added that the Hong Song- 
based Otic Pacific was one of 
the colony’s fastest-growing 
enterprises, and Citic Indus- 
trial Bank doubled profits 
last year. 

Mr We! described 1994 as 
“crucial for China”. Citic’s pri- 
orities this year, he said, 
would be to improve manage- 
ment and expand its business 
In such new fields as finance, 
insurance, securities and fund 
management 

It would also push ahead 
with the development of the 
Daxie Island economic devel- 
opment zone off the the coast 
of Zhejiang province. 

Citic plans to invest some 
Yn4bn tn Dade’s infra-struc- 
ture and is seeking a further 
Yn20bn from foreign inves- 
tors. 


T he Rajang river, 
Malaysia’s longest 
waterway, is a mile 
wide at Sbu. a small town not 
far from the coast of Sarawak. 
Old tugs chug by. pulling log 
booms to freighters waiting out 
at sea. Saw mills and plywood 
factories dot the river's hanks. 

Sflra is the unlikely-looking 
headquarters for grime at the 
most cash-rich companies in 
Malaysia - those involved in 
the timber business. 
Traditionally, these companies 
have been privately owned, 
tightly knit and secretive 
enterprises run by Chinese 
Malaysian families But times 
are slowly changing. 

Sarawak accounts for about 
80 per cent of the world's 
unprocessed tropical timber 
exports. Pressure by 
environmentalists and others 
has resulted in the state 
making big cuts in logging, so 
companies that have grown fat 
on the timber industry axe 
looking for other investment 
opportunities. Many are 
planning to pot themselves on 
the stock market. 

The Rfanbunan Hfiau group, 
based in Sfira, is among the 
world’s biggest tropical timber 
companies. It is run by the 
family of Mr Hang Hiew Ktng . 
who is regarded as the king of 
Sarawak’s timber tycoons. 
Various members of the Thing 
family are said to control 
timber concessions in Sarawak 
amounting to about 800,000 
hectares, an area about 10 
time*; the W7P of Singapore. 

Rlmbunan Hijau’s overseas 
timber operations are even 
bigger. Together with several 
other Malaysian companies, 
the group bag moved much of 
its logging operations to the 
tropical forest of Papua New 
Guinea, where it is said to 
have concession areas of 
nearly 2m hectares. Other 
log-hnngry Malaysian 
companies have been opening 
up operations in the Solomon 
Islands. 

The wealth accumulated 
from the tropical timber 
industry is immense. Doe 
mainly to reduced logging 
activities worldwide, prices of 
most tropical hardwoods have 
doubled - in some cases tripled 
- over the past 12 months 
Late last year, the Hongs 
announced a MSlbn (US$387m), 
plan to go public through a 
reverse takeover of the stock 





: > ... 







market listed Betfaya Textiles, 
part of the Berjaya group, one 
of Malaysia’s most a ggr e ssi ve 
conglomerates. 

E ager share traders have 
been licking their Ups at 
fire prospect of one of 
the country’s biggest 
privately-held enterprises 
moving on to the stock market 
Last year, the Kuala Lumpur 
market went up by 98 per cent 
Some of the most actively- 
traded stocks were 
timber-associated and much 
smaller than the Tiong empire. 

Mr Philip Ting, head of 
Sarawak Securities, the state’s 
only broking house, says that 
timber tycoons like Mr Tiong 
feel that they will gain 
respectability by going public. 

*The patriarchs who usually 
run these rrnnpanifts are also 
under pressure from a 
younger, foreign-trained 
generation who want to 
introduce more modern 


methods and nse the 
company's resources to 
diversify - not merely to cut 
down trees and sell them," 
says Mr Ting. 

This process has already 
begun in the case of the 
Tiongs. The family is 
Malaysia’s biggest plywood 
producer. It also owns a 
publishing business which 
indudes the country’s largest 
selling Chinese newspaper. 
The Tiongs have extensive 
property and plantation 
holdings and a 30 per cent 
stake in a medium-sized hank 

Among the family’s overseas 
assets are a large cattle ranch 
in Australia, a timber mill in 
China and property in 
Singapore. A brother of Mr 
’Hong living in Singapore is 
mM to use the family holding s 
to trade in global equities. 

Analysts say that famili es 
Eke the Tiongs feel that going 
public will provide some 
insulation from political 


uncertainties and from the 
pressures on their activities by 

environmental groups. 

Sarawak is a very 
timber-oriented state. The state 
minister for the environment is 
also bead of one of the biggest 
timber companies. Mr Tiong 
has built strong alliances with 
leading local politicians. 

T he Tiongs also want to 
insulate themselves 
from uncertainties 
overseas. The activities, of 
Rlmbunan Hijau and other 
foreign timber companies 
operating in Papua New 
Guinea have come under 
jfl fT p pcing - scrutiny. 

Environmental groups say 
that the timber companies 
have accumulated too 
much power and are resisting 
official controls on ' the 
industry. 

Another problem far the 
timber tycoons is that Kuala 
Lumpur’s bureaucrats are 
taking a growing interest in 
the private concerns of the 
country’s wealthy particularly 
those involved in the logging 
industry. 

“Timber companies have 
been getting away with too 
much,” said one finance 
ministry official. 

"Log export values have 
been understated or logs have 
been sold at a loss to other 
family members in Hong Kong 
before being re-exported to 
Japan or South Korea at great 
profit” 

In recent months revenue 
officials have mounted a 
number of raids on the offices 
of Sarawak timber companies. 

Malaysia’s Securities 
Commission has frequently 
said that companies wishing to 
go public must be prepared to 
divulge more about their 
activities. 

A lack of transparency in 
some of Rimbunan Hijau’s 
operations is thought to be one 
reason for an official delay in 
approving the Berjaya deal. 

“These timber companies 
have very large resources but 
if they stay private there is 
only so much they can do," 
says Mr Ting of Sarawak 
Securities. 

“They see other Malaysian 
companies building big 
conglomerates mil want to do 
the Mm The only problem is 
that a few family secrets have 
to be let mit of the bag.” 



PUBLIC NOTICES 


NOTICE PUBLISHED BY THE SECRFIAKY OF STATE UNDER SUBSECTIONS 8(5) 
AND 10(6) OF THE TELECOMMUNICATIONS ACT 1984 

The Secretary of State hereby gives notice as follow*. 

1. He proposes to grant a Bceoce under the Tefecommnnlcatioos Act 1984 (the Act") to Racal Network Services 
Limited (*the licensee*) to ran letacommtHdcaiion systems throughout the United Kingdom. The IkcocewHl be 
tor a period of 25 years subject to carter revocation in specified circtaasta ao es 

2. The principal effect of the licence will be to enable the Licensee to install and run telecommunication systems 
throughout the United Kingdom. The Licensee wOJ be able to provide a wide range of services but w a cfc u Hng 
mobile radio services and certain International service*. The Scene* authorises coonectkm Co a wide range of 
other systems, tndudlog earth orbiting apparatus, allowing die provision of some types of International satellite 
service. On securing a share of 25 V or more of the market In respect of particular sendees In an area specified by 
the Director Genoa! of Tdecommunfcabons, the Licensee may be obliged to make available those 
telecommunication services to all who reasonably request them within that area. 

1 The licence wifi be subject to conditions such that section 8 ol the Act win apply to It, thereby making each of 
the systems run under the licence eligible for destpiatfon as a public telecommunication system under section 9 
of tbe Act. It is the Intentxm of the Secretary of State to designate each of the Licensee’s interns as a pubHc 
telecomm unicaiion system. 

4. The Secretary of State propose* to grant the licence In response to an application irom die Licensee for such a 
licence because be considers that it will help to satisfy demands in the United Kingdom for the provision of 
services of the type authorised, will promote the Interests of consumers in respect of the quality and variety of 
such sendees, and will mai n t a i n and promote effective competition between those engaged in the provision of 
tetecoramunkattou services. 

5. He proposes to apply the telecommunications code (the Code*] to the Licensee subject to certain exceptions 
and conditions throughout the United Kingdom. The effect of the exceptions and conditions to the application of 
the Code Is that the Licensee will have duties: 

(a) u> comply with various safety and environmental conditions, to particular (with certain exceptions) to 
install toes underground or only on such abervegroopd apparatus as Is already installed for any purpose; 

(b) to comply with conditions designed to ensure efficiency and economy on the part of the Licensee, In 
connection with the execution of works on land concerning the installation, maintenance, repair or 
alteration of its apparatus; 

(c) to consull certain poblic bodies before exercising particular powers under the Code. lndocBug the local 
planning and highway authorities and EngOsb Nature, Scottish Natural Heritage, the Countryside Coundl 
for Wales, the National Trust and the National Trust for Scotland, as well as relevant eleetridty suppBers; 

(d) to beep and make available records of the location of underground apparatus and copies ol the 
exceptions and conditions in the Bcence to Its powers under the Code and 

(e) to ensure that sufficient funds are available to meet certain DabOIties arising from the execution of 
street works. 

6. The reasoa why cbe Secretary of State proposes to apply the Code to the Licensee is that the Licensee win need 
the statutory powers to the Code to Install and maintain the telecommunication systems which are to be installed 
and run under the proposed Bcextce. 

7. The reasons why It is proposed that the Code as applied should have effect subject to the exceptions and 
conditions referred to above are that they are considered requisite or expedient lor the purpose of securing that 
the physical e nvironm ent Is protected, that there ts do greater damage to land than necessary, that the systems 
are Installed as safety and economically as possible, and that the Licensee can meet (and relevant persons can 
en f orce) liabilities arising from the execution of works. 

8. Representations or objections may be made In respect of the proposed bceoce. the application of the Code to 
the Licensee and the proposed exceptions and conditions refereed to shove. They should be node In writing by 
12 July 1994 and addressed to the undersigned at the Department of Trade and Industry, TUecocnmunlcatiaas and 
Posts Dhrisfoa. Room 2.78. 151 Buckingham Palace Road. London. SW1W9SS. Copies of the proposed licence can 
beefy be obtained by writing to the Department or by calling 07 1-2IS 1756. 

Mias JM Knight 

Department of Trade and hula try 7 fmc 1834 


BUILDING INDUSTRY CHEMICALS 

We are the European office of a UJS. of A building product 
manufacturer already marketing technology based ranges into 
Europe. We are now ready to manufacture in Europe and wish to 
acquire a company already manufacturing or marketing adhesives 
solvents paints or other budding industry related chemicals- 

Writc to Bos No. B29Q3. Fmaocml Times. One Southwark Bridge, London. SKI 9HL 


Fully listed Pic wishes to acquire Industrial Companies with 
turnover io excess of £5.0 milfioD, irrespective of profit history. 
Due to time pressure, we only wish to hold exploratory 
discussions with companies who wish to proceed vay quickly. 
Interested parties should in the first instance contact 
Mr Glynn Reece on (07083)-84336, or fax (07084)43626 


A PRIVATELY OWNED 
INVESTMENT GROUP 
are seeking acquisition 
opportunities involving 


STRATEGICALLY 
PLANNED ACQUISITIONS 
and hard-working individuals 
have made dlls International 1 


which would benefit from an 
immediate casta injection and 
managerial expertise. Businesses 
with annual turnovers in the range 
of £in> to £10m will be 
given priority. j 

Write Box SmO*. Piaudal Tfaao, 

One Sontnviuk Bridge, London S£l 9HL 


value-added frozen foods a 
leader in our industry. 

If you have a minimum amend sates 
volume of $10 million (maximum 
open), we would Uke to talk to you 
about acquiring your business, j 

| Write Box B290S. Finandal Times, I 
OacSoad iWi H fc Bridge, Loodoc SE1 9HL 


CHHXT COMMERCIAL 
DE FRANCE 
FRF 500,000,000 
REVERSE FLOATER 

BONDS DUE 1998 

Far the period June 3. 
1994 to December 5, 1994 
i me new rate has been 
fixed at 7,34375% PA. 
Next payment date: 
Decembers, 1994 
Coupon nn 2 
Amount 
FRF 371.27 

for the denomination of 
FRF 10 000 
FRF 3 712.67 
for the denomination of 
FRF 100 000 

The Principal Paying 
Agent 
SOGENAL 
SOC1ETE GENERALE 
GROUP 

IS, Avenue Emile Reuter 
LUXEMBOURG 


DOB EURO 92 FUND MANAGEMENT COMPANY &A. 

SocUtf Aaoaym* 
lea (fosidatiaBj 

3b, Bwl mri eta Mam Bead, L-1734 ma ub wig 
R.C. L uwi l >»| B 3UU 


AVIS AUX FORTEIIRS DE PARTS 


LeChiatfld l A i liiiiniUr« i w dcUOBEiBq93FlMd> faii»g c xBrnt C0ByHySA,Sodatf He 
Orit l nn dtt Foods Cnaw do Himrmrnr hn uaU wqgsoa DOB EURO 92 RIND, a dfckli 
te la jib 19944c miSitQa 1 Raffivitioo tide poatder i li BqmdBlAadB foods pfebL 
OwftretfeKsr ) Panicle 21(3) de la loi l onkb a mg eobc do 30 dub 198$ relative m 
eqpakmes fo piano* coficcdC fcaduioB cl k isriac da pea sate kunfia 1 patrde ce Jbk 

La Sod fai de Oestioo. UOB Earn 92 Find CoDtpvay SA, tewrlw fa 

caaBDE UQUIDATBUR et la tapkMoa m fm m fringe Arne t tguO Sa a as BSFECES 
de ractff net cto foob^ as pnm de puts de dnqee psticipai.1 furdr da 16 wdc 19M. 
Lea bmobbb qu ntaami pas fid fdtiunea la 31 arts 1994, tetf ta due de b dSOne deb 
fignkfadoo. a c mai * !«« >« anprisde b dec Congadsu I Lunbongujina 
do ayaflfydmir.jtugtfkbdjBedepitwciiytioB. 

CenHiS tiaoim s cOBfome 

DOfibninFMItogaBaiCInpigSA 

liqubbar 


United OvcaessBiBk 
(L w aatAogre l SA. 
Thnqan DfpiuWm 


(Lebanon 

A diuiukiMpii 


CONTRACTS & TENDERS 


REPUBLIC OF SLOVENIA 


MUNICIPALITY OF HABXBOB 

Waste Water Treatment Concession 

Notice of lUque*ifor QuoUficatioru 
Notice is ghen of the Intent of the Municipality of Marfeor to issue a request 
for Qualifications (RFQ) in connection with the Municipal itys waste water 
treatment project Companies and consortia Interested In qualifying to 
wdxnit proposals are acMsed that the RFQ Is expected to be available on 1 
■My 1994. The planned date for submission of quafMcadon documents is 
30 days thereafter. 

Companies and consortia may request a copy of the RFQ from the 
Municipality fax or post, and by making a non-relundable payment of 
USS200. The Municipality wHl acknowledge requests within three days of 
receipt, it is intended that the RFQ wlU be sent to request!* competes and 
consortia as soon as tt Is manage, foflowfog receipt of proof of payment 
Payments should be made by bank transfer tn: Kredhna Banka Marbor acc. 
no. S 1800-620-00016 27620-840-0234/8. SWIFT: KB MA SI 2s 
rile concession and prefect Involve: 

operstica, oaMnaca and AwKfog rfamnfe 
wtor treatment pitot and main coffoetes fit the Mmktpaltty ofMarOoe 

• The Municipal Assembly has passed a resolution indicating Its intent to 

Brant a concession for the protect to s private oonoeaeionabe In 

of Ole ten der process requires adoption by the Munldpd Assembly of a 
concession act which Is expected to take place In June 1994. 

• The MunKfjMdliy la preparing comprehensive lander flocumena with 

(UjMttance from the European Bank for Reconstruction and Development 
®WD>. n» Muntapaflty has requested tne EBRO to consider extending a 
loan to co-finance the investment wummng 

• proceed is oper! to con^Mr^ 

3 * tlUa,lfied «"sortto. |T 

which WHl then be bMted to submit tenders for the concession on the - L 
hesis of a detailed Request for Proposals. 

Waste Water Trctawm Concession 
Mwdcipal Services Directorate, Mumclpaliiv of Marihor 
Steveneka 40, 62000 Marfbor, Republic of Steve*. 

W: +386-62-20080 Fnu *386-62-2248 i 5 



f 









23 



j^VNCXS3L TIMES TUESDAY JUNE 7 1994 


INTERNATIONAL CAPITAL MARKETS 


. '““i h 

it* r »- *“ 1 


Fading investor interest hopes check rally in bunds 


>£$j ! 

r>s 

‘■uin.. 

h,., 

,n * ?r 


By tnicv Cwrigmahd Gcaham 
Ba&by Jn'Ebndan md Frank 

IH tQortybvM^York 

A.isay^ to& returned to the 
European government bond 
•xattriet^estCTda?, as pices fell 
ijadc aftotairesaly rally. ; - 
■tfeatoas iinnds, wnjpd half a 


tor interest 'faded . Dealers 
haying on 
•yriaay*t#aarly yesterday, ;but 
buyeSr fflsajipMred when 10- 
year bundirldds 'were pushed 
•dgnhScanQy below 7 per cent 
cheat aga&t ‘ 

- jjt John Eall, an interna- 
fipnalectfflbmist at Swiss Bank 
Gargorafion Kdd that “below 7 
per-cent' ifor 10-year bonds L 
tfcftjsttrac&OB for end-investors 

Isn't toertf*:-* 

TttB temd market lad been 
HMXtureged -by n recovery in 
the US . market an Friday, and 


by comments by Bundesbank 
.' president Hans Tietmeysr, 
reported in a German financial 
newspaper, on Monday. Mr 
Tietmeyer said he hoped 
to &e west German inflation 

GOVERNMENT 

BONDS 

fall below2 jffir emt during the 
donxse of 1995. 

However, farther baying 
faded to materialise, and Ger- 
man bond prices fell back 
again+The pattern of “poking a 
. head abovethe parapet in the 
morning, only to And that the 
momentum wasn't there” is 
typical of European bond mar- 
kets-currenfly, said Mr George 
Mag w«; an international econ- 
omist at S.G. Waxburg. 

The German market cmrtin-' 
ties 7 to underperform the US 
market, with German bonds 


now yielding just three basis 
points below 10-year US Trea- 
suries. “Germany has 
decoupled from the US market, 
but in the wrong direction, 1 * 
said Mr Hafl. 

A spate of economic data due 
this week, including figures for 
GDP and unemployment, is 
. unlikely to provide fresh direc- 
tion, analysts said. 

■ Gilts opened strongly on the 
back of the recovery at the end 
of last week but were dragged 
down in later trading by lack 
of demand. 

“There is no conviction in 
the market," said Mr Simon 
Briscoe, UK economist at 
S.G. Warburg. “There was 
some buying in the morning 
but then no follow through.” 

The fan in Goman govern- 
ment bonds iiafa showing 
a stronger than expected rise 
In net lending to UK consum- 
ers added to the nervousness. 


“The lack of confidence is so 
widespread that ft is unlikely 
that events this week will pro- 
vide any support for gilts," 
said Mr Briscoe. 

“The political situation is a 
rlnnd on the horizon, the trade 

figures are a concern and there 
will have to be a marked slow- 
down in industrial production 
for those figures to help gflts,” 
he said. The long gilt future 

was down point at 101^ in 

late trading. 

■ French government bonds 
ended slightly lower yesterday, 
dragged lower by profit-taking 
and decline in Germany. 

They marginally outper- 
formed German bunds with a 
slight narrowing of the spread 
between the two in favour of 
French bonds. 

Analysts said events in Ger- 
many were likely to continue 
to dominate for the remainder 


of the week, although French 
industrial production and infla- 
tion figures due later this week 
could provide support. 

“The data could paint a pic- 
ture of steady, n on-inflationary 
growth which would be posi- 
tive news," said Mr Julian Jes- 
sop, international economist at 
Midland Global Markets. 

■ A 10 basis point cut In the 
Dutch special advances rate to 
5 per cent Med to inspire the 
Dutch government baud mar- 
ket, which ended slightly 
lower, undermined by the 
weakness in the German mar- 
ket. 

■ US Treasury bonds yester- 
day extended Friday's gains 
with the market growing more 
confident in the conviction 
that monetary policy was on 
hold for the summer. 

By midday, the benchmark 


30-year government bond was 
3 higher at 88%, with the yield 
dropping to 7.203 per cent At 
the short end. the two-year 
note was £ better at 10O&, to 
yield 5.756 per cent 

Hie fresh improvement gave 
rise to speculation that the 
bond market's long slide, trig- 
gered by the Federal Reserve's 
policy shift four months ago, 
was drawing to an end. Trad- 
ers were encouraged by a New 
York Times report which 
reinforced the view that the 
series of four interest rate rises 
this year had succeeded in 
slowing the economy. 

The newspaper quoted three 
of the Fed's five governors as 
saying that inflation was now 
in check. The three officials 
also said they did not consider 

Friday's big drop in unemploy- 
ment as alarming in the con- 
text of other statistics pointing 
to slower economic growth. 


— — 

Sweden kicks off string of Canadian dollar issues 

,!l M , .uih* s J- 


By Antoni* Shape ■ 


1 v„|^ 
!,%: , ur 

. ! t \ 
'•’* Hoqh r, ■ 

>oi:l| L s 

'■ uiuiioty '• 

■ 

lln “ - 
s,, turu»" 

h,ls irvqiig: 

cinifevg^. 

1 ,M ‘ IfLTO* 
r -»ii* : Nrc®r 

.. 

to'Ur'.u u-l»i : ~ 

dnj - 

b«'r futnpat 
"■ r - ••'■arrftt 
Urn' 

1 etc . 
V •■' SllJt 

r \h\im 

w-asr, 

iT.'ttl . 
-iMvrr 

'2ZJ 

D 


A strong Canadian government 
bond market and continued 
demand from .continental retail 
invest o rs for short-dated Cana- 
■ (Han dollar paper prompted a 
-Tush of 1 Canadian HnTlar fsqufl s 
-bi the eurobond market yester- 

- Hint. : v. . 

.The-. Kingdom of Sweden 
Jticked. off with a C$20GmoHer- 
-■'2%-year: eurobonds 
-.Wtjich were priced tfl yield 20 
bass- points over the 7% ; per 
-cent Canadian treasury due 
-September 1996. - 

; Lead manager Scotia McLeod 
; add the December maturity on 
; the eurobonds Increased the 
'efficiency -. of the ' currency 

- SW9P. which -was linked' to the • 
feat:; 

jSwednn is beHevedlo lave 
gap ped the proceeds of the 
c®feripg into floating-rate doZ- 
laisiV When Hie bonds, were 
fctt&foiratte, the spread was 
tenjisi*. unchanged which can- 


WOHLO BOND PRICES 


founded criticism in 
market that they were aggres- 
sively priced. 

Soctett G4n£rale is also 
believed to have swapped the 
proceeds of its CSiOOm issue of 


INTERNATIONAL 

BONDS 

3%-year eurobonds into fLoat- 
ing-rate. dollars. Joint lead 
manager BZW said the bonds, 
which were priced to yield 22 
basis points over the interpo- 
lated yield curve, were. selling 
well which, reflected the issu- 
er's strong following among 
r etail i nvestors. 

■ BZW said although there had 
.been quite a supply of Cana- 
dian dollar issues recently, 
retail investors were still 
attr a cte d by the yield pick-up 
of 200 basis points which Cana- 
dian treasuries offer over US 
Treasuries. 

This could prompt more issu- 


ers to tap this sector. There 
were rumours yesterday after- 
noon that Daimler-Benz was 
looking to raise Canadian dol- 
lars. 

The Province of Ontario dis- 
appointed syndicate managers 
by opting to raise C$600m 
through an issue of 10-year 
bonds in domestic market 
where demand for long-dated 
maturities is said to be stron- 
ger than in the eurobond mar- 
ket 

The issue was priced to yield 
58 basis points above 10-year 
Canadian treasuries which 
syndicate managers said was 
in line with the pricing 
which Ontario would have 
achieved in the eurobond mar- 
ket 

Mr John Madden, Ontario's 
assistant deputy minister of 
treasury, «HH he was p^s fd 
with yesterday’s issue but he 

arirfad that he W 8 S wwitinning 

to monitor other currencies on 
a daily basis with a view to 


launching a eurobond or global 
issue. Last week, the province 
was rumoured to be looking at 
a euro-yen deaL 
• Moody's, the international 
credit Ta tfog a gmir ji, has down- 


graded to Ba3 from Bal the 
long-term foreign-currency 
debt rating of Turkey. The 
downgrading affects about 
$&5bn of debt securities. 

The downgrade reflects 


Moody's view that the Turkish 
economy will have to go 
through a significant adjust- 
ment in older to correct the 
country’s fiscal and financial 
crises. 



NEW INTEffUiATIONAL BOND ISSUES 

Ocrroeier 

US DOLLARS 

BIGS No2(a) 

DKB WemadonaUbW: 

Amount 

RL 

100 

60 

Coupon 

% 

150* 

M 

Price 

68.25 

10Q-25R 

Maturity 

Apr5023 

JU20O4 

Fees 

* 

unefsd 

Q30R 

Spread Book ninner 
hp 

+2 70(614%- 23) Lehman Brothers ML 

DKB MamaManal 

YEN 

Nonftc Inveatniert Bank 

15bn 

8125 

100. 037 SR 

Jut. 196 7 

0.1B75R 

- N&cfco Europe 

America Honda Fin. Corp^tat* tobn 

n 

10020R 

Oct 1097 

O20R 

- ManN Lynch InturiraUunal 

CANADIAN DOLLARS 
Nngdam of OviadanM 

200 

7.75 

Q9583R 

Deo.1998 

0.1 5R 

+20 C7^%-96) ScobaMcLood 

nwito G 8 n&ttefd) 

100 

850 

gauBOR 

Doc.1997 

022 SR 

+22 (g) Barckgto da 2oMa Wedd 

ITALIAN URE 

RZB 

150txi 

9525 

995SR 

JuL1990 

0.1 26R 

- Banca Cornmerotsla Italana 

HONG KONG DOLLARS 
Bank at Earn AdaW 

Ibn 

0 

10 Q- 00 R 

JlL2001 

0.45R 

- MertW Lynch Sues. Me 

SMRSS FRANCS 

General Sectric CepLCorp.* 

100 

5l25 

1 Q 2.00 

Jul1998 

standard 

MenG Lynah Cap. Mda. 


Hnal (amis aid nan-caflaUs unless stated. The yield spread low relevant government bond) at launch Is stvpfed by the lead 
ma a a a . * Undated or private placemen t j ftoeflng rata note. fSe cni a nnu al coupon, ft feted m-effar price: fees am shown at the 
le oWar level. * Brady Income a Govt. Sacs. Launched early May, priced yes te rda y, fa) CalaWe on 8.7.96 at par. c) 3-mth Ubor +70bp 
to 8.7.96 and 9M fied annual thereafter. 4 Short 1 st coupon. * Ontahto on &10 l 9S at pm. f) 3.1% to 6.10.95 and 3*% thereafter, g) 
Over Marpotatad yMd. 14 Calotte on S.7S6 at pm. I) 7K* to 5.7.96 end iai% maeefter. 


Cofide seeks $ 100 m 
from sale of shares 
in fund manager 


By Antonia Sharpe 

Cofide, the holding company of 
Mr Carlo de Benedetti, the Ital- 
ian industrialist, is seeking to 
raise $100m through the sale of 
around 24m shares in Finanza 
& Futuro, one of the leading 
mutual fund management 
groups in Italy. 

The offering, via Lehman 
Brothers, is equivalent to 
around 39 per cent of the com- 
pany, which is 96J93 per cent 
owned by Cofide. 

The sale will be made up of 
an international and domestic 
institutional offering of 17m 
shares and an Italian public 
offering of 7m shares. An over- 
allotment option of around 
3.6m shares could also be made 
av ailabl e in the event of strong 
demand. A further lm shares 
will be offered to employees 
but this tranche will not be 
underwritten. 

Finanza & Future's mutual 
funds under management 


increased by 14 per cent from 
the end of 1993 to L9.4S5bn at 
the end of April, making the 
group the fourth-largest 
mutual fund group in Italy 
with a market share of 7 per 

cent. 

The institutional offering 
will close on June 17 and the 
shares will be priced the day 
after. The retail offering will 
open on June 20 and is expec- 
ted to close within one day. 
The shares will be allocated on 
June 27 and Consob, Italy’s 
stock market regulator, is keen 
for the shares to start trading 
on Milan’s Telematico screen- 
based system on the same day. 

In past offerings, there was 
usually a grey market in the 
new shares for several days 
before they started trading offi- 
cially on tiie Milan bourse. 

Lehman Brothers expects the 
offer to appeal to investors 
keen to have an exposure to 
Italy’s fast-growing mutual 
fund industry. 


European Investment 
Fund formally set up 


European Union finance 
ministers, meeting as the 
board of governors of the Euro- 
pean Investment Bank yester- 
day formally established the 
Ecu2bn European Investment 
Fund, AP-DJ reports from 
Brussels. 

EUB said: “Following the pre- 
paratory work by the bank, the 
governors have now formally 
established the European 
Investment Fund, clearing the 
way for the fund to hold its 
constitutive general meeting 
next week.” 

The fund, originally agreed 
at the EU’s summit in Edin- 
burgh in December 1992, is 
designed to provide long-term 


loan guarantees to infrastruc- 
ture projects. 

It will also put money into 
small - and medium-sized com- 
panies - marking a first for the 
EIB which has a 40 per cent 
stake in the fund. The r emain - 
mg 60 per cent shareholding is 
spilt equally between the EU 
via the European Co mmissio n, 
and a total of 50 banks and 

financial instituti ons 

“It will fill a gap in the guar- 
antee arrangements currently 
available and will help lower 
the cost of finance,” the btb 
said. “Such guarantees are 
increasingly in demand 
because of the declining avail- 
ability of pablic guarantees.” 


I* M S 

I • ; - • uNil 

.* . . I.:hi 

;• i 

it- .fr.: m» v 


•• . 

»■. s | m ■ 

i.iw'" * 

•.’Vi Ln.il.Tl •. 

• : 

. i -i" -• ' 

•,i :i i*>. . 


;N til' 

<<! |\MH»V r ; 


. • . •- ”* 
i v^r ' 


B«nq^|ARK GOVERNMENT BONDS 

-‘ “iwa - *** Dayto 

Couptan-. Dee Price chanoe 

YMd 

Week 

ago 

k4orftl 

ago 


3.000 

name 

102^400 

+1500 

666 

856 

852 


7^50 

04704 

98.0100 

+0560 

754 

7.78 

7 


asoo 

08AM 

885500 

+0.860 

656 

657 

67T 


7.000 

12AM 

9S.8200 

+O.S0 

8.03 

7.75 

752 


8500 

-‘'(BOB 

104^000 

-O.I30 

657 

641 

652 


5^00 

,04AM. 

875300 

-0200 

756 

7.18 

7-11 


6.750 

-05AM 

083200 

+0580 

659 

aaa 

6.60 


&S0O: 

Cl A)4 

B155DQ 

-alio 

952t 

9.7D 

9.13 

Jwmt.'./HiiW 

4.600 

'-06790 

105.7070 

-0.140 

345 

354 

354 


. 4d5QD. 

'■06703 

102.0310 

-4L27D 

4.18 

3.73 

-356 


6.780 

OIAM 

QL2D0Q 

r-0.160 

754 

857 

655 

-Spam 1 

10600 

•40708 

moooo 

-0160 

097 

958 

9.71 

UKQttta 

6500 - 

06 m 

01-23 

-4/32 

7J99 

610 

7.96 


GJBO- 

~ MAM 

BB-00 

-9/32 

854 

a sq 

629 

. 

9,000 

1008 

104-30 

-7/32 

640 

649 

859 

US Treoauy * 

.rsso.-. 

jOSAM 

. 102-16 

+22/32 

650 

7.17 

7.46 


•8550 

08/23 

88-13 

+24/32 

751 

7.42 

751 

0JO {French God) 

- &000 

04AM 

875100 

+0180 

750 

7.63 

758 


Italy 

■ NOTIONAL ITALIAN QOVT. BONO piP) FUTURES 
(UFFET Lka 200m lOtBfta tt 100% 


vftbftold WB tv m 125 per cant iy 

UK'ta SSrtK earn* ta ffedn* 

U& INTEREST RATES . 


aetMKMMSMwnodmN 




-iMawk^ 

MWI«I 


7U TkOMoeti- 

S unn*. 
»«•- 
■ Oonyrer — 


OaMsvSfoanlBonlYMk 
4m taier. 


4.U . ftrsa j«r_ 
09 RrejMr- 
4A 10 -year 
5.13 Shm 


5.78 

M0 

&50 

691 

73\ 


wio nnuns^Aw options 

Prmom V - . 


Open Settprioe, Cftreige HqH 

.&i.\V 117«" 117.42'- >0.12 llttl* 

-116.48.-' • -»oi4 117.18 

Pic.;' ■. iiaao . ttwa • >ai4 uwa 'iiass 

mwm TERM tOTICH BOND OPfWMS (MATTF) 


Low E*. voL Cpea let 
117J8 230.983 75,782 

11040 3L2Z7 61J46 

326 0870 



Open Setlprics 

Change 

High 

LOW 

EaL vol 

1 Open 1 ra. 

Jwi 

106.00 10855 

-056 

10950 

10610 

10708 

11748 

Sep 

10750 10656 

-t.10 

T06.1Z 

10655 

50779 

59011 

Dec 

10559 

-250 

- 

- 

O 

0 

■ ITALIAN GOVT. BOND PTP) FUTURES OPTIONS (L1FFQ Ura200m lOOthe of 10094 

Strike - 
Price 







Sep 

Dec 


Sep 


Dec 

10680 

2.36 

252 


257 


nm 

*10700 

612 

251 


253 


352 

10750 

158 

640 


2.79 


L21 

EM. toL tsteL Cato 916 Putt 990. Prorious toy’s open tat, Cto 10717 Putt 145T0 


Spain 







■ NOTIONAL SP ANUSH BOND FUTURES (J4EFF) 





Open Sen price 

Change 

Mtft 

Low 

EsL vet 

f^>an tot 

Jura 

9456 94.18 

+053 

94.76 

94.07 

61596 

100547 

Sap 

9687 8367 

+625 

9352 

93.60 

15,429 

32.445 

UK 







■ NOTIONAL UK GOT FUTURES (LIPPS)* E50.D00 32nda ollOOW 



Open 9ettprica 

Change 

High 

Low 

EaL vol 

Open M. 

Jun 

103-23 103-00 

-0-09 

103-28 

102-23 

4353 

28410 

Sep 

102-10 101-23 

-0-09 

102-21 

101-11 

50711 

1090Q2 

Dec 

- 100-23 

-0-09 

- 

- 

0 

67 

■ LONG QU.T FUTURES OPTIONS {LATE} £50500 6*0» Ot 1009* 


Strike 







Sap 

Doc 


Sep 


Dec 

Price 

ID* 

2-64 

3-te 


S-0B 


5-34 

102 

2-20 

2-61 


2-38 


4-05 

103 

1-66 

2-25 


3-10 


4-43 


FT-ACTUARIES FIXED I N T ER E S T INDICES 

Price tnricai Mon Da/a Fit Accniad at 

UK Gate June 6 change % June 3 Ireereet ylri 


— Loer coupon yield Mecflwn coupon yield — — ■ t«gh coupon yield — 

Juie 6 June 3 Yr. tqo Jnw 6 June 3 Vr. ago June 6 Juie 3 Yr. ago 


1 

Up to 6 years (24) 

122.72 

+0.13 

12256 

640 

454 

6 ym 

853 

808 

7.13 

854 

858 

758 

854 

637 

7.57 

2 

5-15 years (22) 

14159 

+0.15 

141.88 

2.51 

552 

15 yra 

851 

858 

808 

8.43 

644 

8.44 

677 

677 

670 

9 

Over 16 years pj 

15615 

+0.18 

16000 

2^4 

555 

20 yn 

857 

850 

658 

643 

8.44 

854 

858 

659 

675 

4 

bredeamables (GJ 

17679 

+0.41 

17606 

1 22 

a +« 

toedt 

657 

640 

681 







5 

Al stocta (81) 

13958 

+0.15 

13853 

' 2.46 

firm 



















Iiritoflon 5% — - 

— 

— 

— Inflatian 10% 

— 



June 6 June 3 Yr. noo 


Jure 6 Jure 3 Vr. ego 


6 Up to 5 yeareO 

7 Over 5 yeors (11) 

8 Afl stocks [13) 

Debentures and Loans 


185.87 

+051 

18555 

090 

253 

Up to 5 yes 

373 372 

257 

2.76 

275 

255 

17457 

+054 

174.09 

153 

1.69 

Over 5 yra 

377 379 

357 

356 

361 

339 

174.83 

+050 

174.41 

158 

1.77 


~ 5 year yield — 



- 15 year ytekl — 



•25 year yMd 


June 6 Jwie 3 Yr. ego June 6 June 3 Yr. ago June 8 June 3 Yr. ego 


9 Debs 8 Loans (78) 12089 4072 12032 201 

Average great mJ ai ip oo n ywfcja n ahoan drone. Coupon BnK Lovr 0H-7VK; 


027 055 9JS7 9.06 9.41 9>7 

Me*m MWW*: Htfe IlN ant over, t Rat yiell yw Yon to dan. 


9.43 033 


9.40 


GILT EDGED ACTIVITY INDICES 

Jun 3 Jun 2 Jin 1 


May 31 May 27 


FT FIXED INTEREST INDICES 

Jtaw 6 Jreia 3 Are 2 June 1 May 31 Yr ago Hgtr Lour 

Govt Secs. (UK) 93.13 9242 92.09 91D4 91.73 9L99 10704 9104 Git Edged trergetne 114.7 1103 1004 85.9 833 

Fixed Merest 110.71 10045 109.12 10933 11090 111.13 13337 108.12 May average 969 1023 105.7 104.7 1065 

• tor 109L G waman Secukee N0t dnoa canpleto c 12740 (9/1/39. fe" 4618 P/1/H6 Ftad tanraat N0i dice andd m 13187 {21/1/94 ■ low 5033 {W7S) . Beds 100: Oovemn n Securities IE/1 IV 
26 wnd Ftaed tntaan 1826 SE settvey nk» ntaeed 1874 


FT/TSMA INTERNA TIONLAi. BOND SERVICE 


Uftd ae fee Mat ieenetiond 


tends fcr nrfcti tfwe b an adtquae secondary maria*. LrentpdcesetTOOpraan Junes 
Issued OH Oder Ct«. YMd Issued Bkt OK* Cfe. 


tasued Eld OOer Chg. Yield 


U& DOLLAR STRAIGHTS 
Mfegy HM Traeajy 8^ 03 _ 
rifcoa Rodros 7% 99 . 


E a. wL tatd. Celt B2M Pus 1171. PlSHtow open M. Cato 41477 Pin 26528 


life 


.viN-* 

- CALLS - 

•- 80 p . . 

Deo - 

. -w 

— PUTS — 
Sep 

Dec 


- 154 

_ 

••-058. 

•• Q30.. - 

250 
.1-70 . ; 
.1.14 
: .694 .. ' 

150 

1.02 

.1A0 

278 

155 . 
212 

262 

312 

- 

Ecu 

■ ecu BOND FUTURES (MATV) 


- 1 _ 


015' 1046 

[Xit/tiLi^LCamanTSm. PW313S1 . Rmtmdrereapen M, Cd» 266B» Pun ssoisra. 

GmtwRY'. 

-WlHO’noWAl OFHtoAM BUND Fim/RES {UFFe* DM280 JDOd IQOItw of 10056 


Open 

8530 

84/40 


Sett price Change 
84.72 +0.12 

84,02 -*002 


Hgh 

84.52 


Low 

84.86 

8438 




i-ifl .p r. :opan_ 

Settprtoe 

Change 

Htfi 

Low 

EsL vol 

Open InL 

'+!pp'-i-r-wv..g958 

9319:- 

'•4L30 

94.00 

9304 

33118 

38575 

- " 9602 ~ 

9269 . 

-050 

9356 

92.42 

141696 

126638 

• Oae. - J- 92^2 - 

92.17 • 

‘ Jl!*} 

9250 

- 9238 

98 

420 


Jun 
Sap 

US 

■ US TREASURY BOND FUTURES (CBT) $100300 32nda ol 100% 


Eat voL Open bit 
2.150 7327 

895 6111 


■ »T8UlOHBiaMgOimOW8JTOOM^^ 

Vdoe. ■ 

9250 

WD8- 


waif Mb wna puts 11 * 39 . to toa to/* open Cato ise«70 Put 1S74M 

UtotynotW.'^BiUM.'Tswi german opvr. bond 

.fiOEUVrrer CBCSQJOQQ lOOtha trf. 10QW 


Jot 

■—— CALLS - 
Aug •+■ Sep 

Dec 

JM 

Aug 

PUTS 

S«P 

Dec 

0.82 

153 150 

1.80 

0.73 

1.14 

1.41 

213 

658 

097 15* 

153 

0.99 

158 

155 

258 

.039. 

,070- 151. 

.153 

150 

1.87 

1.92 

268 



Open 

Latest 

Change 

High 

Low 

Eat voL 

Open toL 

Jun 

105-23 

106-14 

+0-22 

105-16 

105-23 

24,154 

156028 

Sep 

104-24 

105-14 

+0-20 

10516 

104-24 

697.567 

247591 

Oeo 

104-14 

104-27 

+0-22 

104-27 

104-12 

865 

35569 


Japa n 

■ NOTIONAL LONG TERM JAPANESE GOVT. BOND FUTURES 
[UFFq YlOOm lOOtha of 100% 




■ Open r Sattprtne Change 
'tojff;'- 89.06 -004 

' . 9838 -037 


High 

9938 


Low 

99.03 


EsL vei Open M. 
187 660 

0 50 


Open Ctose Change 
Jun • 111-19 

Sep 110.35 

- LffFE contncti ceded on AFT. Al Cfean t re e— 


UK GILTS PRICES 




ka m PdeeC ♦«- 


„ 1BB4* 

Htfi law 


M M PriceE+ar- 


-1994- 


Mgh Low EsLvtt Open Ire. 

11137 111.19 134 0 

11088 11033 2844 0 

flge. are tar pmtaa dqr. 


U_ — 1991 _ 

(3 PdeeC ♦ or- law 






1326 

..Lti, l « M 

(HR 


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SB tm 

'isi.' sB TO4 
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THU 

821. 

, fep 3 li ,SS 

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— noA 

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— HBB 

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— m*. 

4A.117A 
1210 
♦A mo 
+& USA 

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+«« IMA 

110, V 

♦A uia 
4 IMS 
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IDS 

'^..1»A 

*^‘M0A 

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♦a iwa 


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♦A 12IA 
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♦A 121B 

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— 

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topeaxa. 


mo TtaH 11«*pe 2001-4 

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Trisa ape Ml as 

710*2012-1 S3 

TUB Wrf* 301 rtf — - 

wi 

s» 

W8>» 

100 , 

tuu Cnoatitoc. . - 

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Can "61 M. — — 

ADA ltto3pe«M~— 

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920 

mil 

4J8 

831 

7S» 

MB 

1021 

8.17 

U 

1005 

8.43 

1044 

857 


862 10811 
678 113S 
7.49 73A 
852 lOfifi 
834 as* 
851 100a 
893 4228 
843 940 
851 06>i 

892 lift 

841 100JJ 
8S4 128A 
639 105 


•A 1Z7A 
125B 

-A I2SA 
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*A 1264* 
— MSA 
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♦A 136* 
119* 
■i 151* 
re »a«a 


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1030 

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tni 

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101 




w. 


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2*280-03 (7881 

repeww — na8o 

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2^eV9 (7881 

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2»spen3 (803 

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9m' *U VW 

4>spc30tf (1381] .... 

prospective reel r sdempHon reto on pn^BCUH rtotoi of (1) IOK 
end (2) 5»L (6} Figures h persntr«as show RPI ban ter 
Indexing <b 8 roondie prior to taauei and m* been adpMKl to 
raSact rebtfng et HPI » 100 in Jamny 1987. Comereton factor 
8948 Rft lerSeptantoar 1993! 1413 nd tor ApN 199ft 1443. 


&a 

838 

J6JI 

+* 

USA 

83 

758 

82S 

az« 

+2 

98* 

78* 

650 

839 

105% 

+* 

1SH 

101* 

648 

694 

106% 


127% 

IOTA 

729 

609 

758 

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93% 

72* 

K23 

628 

97* 

+* 

UTfi 

«* 

816 

630 

948 

4 

114% 

91* 

833 

625 

105* 

+i 

128% 

9BS 

901 

848 

133% 

+% 

159% 

127% 


Oth er Fbed Interest 


W Bed PitaaH -a- 


— 1994 — 

ftp In* 


Devil 1*2010 — 833 M2 119* 

MtoOBVirepeaOOB— 813 875 112* 

BTen 11 >29(2012 864 M2 1»J« 

MM Op VtJK *10 822 - 97J* 

9peCv189B 890 -Ml 1 * 

1JW97-3 1152 - 110 

HptaQeeBec 15(4201 1- 1043 859 143ii 

lMbl3>Mc2ao& 1847 - 129 


94* ftSBL2>»c- 


668 

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853 

9.16 

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37% 

32% 

— 

6» 

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MH 

39U INDdiaStri1%gc2007. 

698 

649 

115% 

— 

604 

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+fi 

71 

55% HaLH».3K'Br 

448 

615 

67 


64S 

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+U 

44% 

34% mritoAJtfa3%pe2021. 

“ 

4.47 

133 

— ■— 

644 

- 29% 

+% 

38% 

28% 4%uel2(B4 

— 

4.48 

128% 

—m 

655 

- 29% 

*n 

37% 

27H UNHnS«iid> 2 Sc 2008 

11J0 

“ 

141 

— - 


142* 119 

are 112* 

142 118iz 

nre are 
iore lore 
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sfflS MSB 
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78 67 

1504, 133 

14 St 1264, 

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Aetna 8% 00 

_400 

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1000 







Cheng Kmg Fin 5 1 * SB 

_ 500 



Qedk Fcnaer 9% 99 

300 



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1000 


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FttdUtorQedtS>4 98 

1500 



tadBkJtoenFto7%97 

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_ 150 








- 150 


1500 






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1000 


1500 




too 



DEUTSCHE MARK STRAIGHTS 


2000 


2000 






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2900 


3000 




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1500 


4000 

Etoedan897 

2500 


ioao are 

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10 ft 


874« 

103 

11 

tore 

914, 

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lore 

374, 

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104 

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107% 

107 

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102 % 

lore 

104 

8712 

lore 

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104% 

82 


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re 

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♦1 

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109% 

lore 

s 

105% 

104 


1104| 

97% 

93% 

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104% 

«re 

lore 

107% 

. 106% 

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109% re 
100 % 
lore 

98% 

108% 


Urtod Khgriom 7% 87 _ 
7*4 VoMnegen H F«i 7 03 . 

880 MbrfdBankOIS 

887 Wbrtd8anfc5%03 

848 MfaridBB*8%00 

742 
850 
889 
808 
798 
841 
827 
895 
650 
758 
843 


. 5500 102% 102% 


.1000 


98% 
22% 
81% 
1250 111% 




SURSS FRANC SIRAIGHIS 

MmOmBartcSio 100 

Aaata4%00 1000 


cwdgnpiftn . 
Denmark 4% 99 - - - 
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101 

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kehnd7%® 

823 fet»6%0! 


re 

re 

re 

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85% 

108% 

wre 

88 % 

W3 


KB 

98% 


km% re 
103 % re 
ws% re 

85% +1% 
106% *1 
106% -% 
are 414, 

■ 103 % re 


are 

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♦1 

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817 

89) 

652 

615 

750 

883 

874 

804 

898 

821 

862 

878 

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1000 96% 
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107 

108 
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.75000 1054, 
100000 112% 
. 50000 108% 

.30000 118% 

94% 


100000 KE% 
.120000 113% 
-50000 108% 
.150000 106% 
.30000 113% 


.12000 107% 
.160000 103% 


. 250000 106% 


22% 

91% 

111 % 


KB 

97% 

101 

96% 

107% 

110 % 

106 

108 

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108 

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108% 


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113 

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117 

94% 

105% 

113% 

106% 

106% 

113% 

108% 

103% 

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re 

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re 

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631 

Abbey Kal Treasury 8 03 £ 

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98% 

re 

9.21 

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108% 

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800 

85 

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SWS7B 

837 

105% 

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785 


KtttK 10% 97 E 

100 

105% 

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Ktaraon10%87£ 

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105% 

105% 

re 

640 

590 

HSBC HcUrga TIjBB 02 C 

153 

109% 

110% 

re 

988 

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400 

109% 

110% 

re 

642 

467 

Japan Dev Bk 7 00 E 

200 

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83% 

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651 

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100 

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648 

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631 

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698 

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602 

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784 

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610 

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610 

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Bac da France 8% 22 ffi* _ 

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589 

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4000 

106% 

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670 


821 

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4.10 

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45? 

453 

351 

432 

35? 

325 

458 

463 

35? 

434 


OTHS1 SnWGHIS 


105% 

107% 

re 

7.18 

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101% 

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628 

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1000 





86 % 

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105% 

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24 


COMPANY NEWS: UK 


FINANCIAL TIMES TUESDAY JUKE 7 1994 


Emap in ‘aggressive 
mode’ for acquisitions 


By Raymond Snoddy 

Emap, the media and 
exhibitions groups, is planning 1 
to c ontinu e its twin policies of 
launching new magarine titles 
and expanding through acqui- 
sition. 

Mr Robin Miller, chief execu- 
tive, warned yesterday: “We 
are in an aggressive mode. We 
»Mnk this is a good time to 
acquire both at home and 
abroad.” 

He added that by next June 
he expected Emap to be a 
somewhat larger company 
than it is today. 

Mr Miller was speaking as 
the group announced a pre-tax 
profit rise of 8 per cent to 
£45.7m for the year to April 2 - 
a result that appeared to com- 
pare badly with last year's 66 
per cent Increase to £42.4m_ 

This year's profit figure 
came after £9.7m in launch 
investment - the company 
launched 22 magazines during 
the year - and £&Sm in ration- 
alisation costs. The underlying 
pre-tax figure represented an 
Increase of 20 per cent 

Ms Lama TUbian, media ana- 
lyst at SG Warburg, stockbro- 
kers, gave Emap 'Tull marks" 
with printing operations the 
only disappointment. She is 
sticking with a £58m forecast 
for the present year. 

Mr Derek Terrmgton, pub- 
lishing analyst at Kleinwort 
Benson raised his forecast 
from £56m to £59m. 

The share price closed 1% 
higher at 397p yesterday. 

Less is expected to be spent 
on launches this year between 
£6m and ETm. 

Turnover rose 14 per cent to 
£382m (£31 8.3m). Eanrings per 
share were KL8p (17p) and the 
total dividend is being raised 
to 8.86p (7.9p) with a 
recommended filial payment of 



Robin Miller: good time to expand at home and abroad 


ArtayMmood 


6.4p. 

Sir John Hoakyns, the new 
chairman, said Emap saw a 
gradual, but long-term 
improvement in advertising, 
which accounted for SO per 
cent of the company's busi- 
ness. 

“This coupled with rational- 
isation fltid laimrih activity in 
the last year wfll have a very 
positive impact," be said. 

Consumer magazines main- 
tained operating profits of 
£24m, but underlying growth 
was 19 per cent 

Operating profits of business 
communicatio ns, the rarehrnpd 
magazine and exhibitions 
interests, rose by 33 per cent to 
£14. 6m. 

Newspapers were up 8 per 
cent to £8Jm and the radio 
division grew 25 per cent to 

Clm 

These figures exchnte ration- 


alisation costs. 


A superficial glance at the pre- 
tax profit level would suggest 
that Emap was starting to go 
off the bofl. The group said yes- 
terday that it was simply get- 
ting on with successfully 
launching new mnpwJiw AnH 
although newspaper margins 
are at the low end by group 
standards, executives can point 
to the fact that the Northamp- 
ton Chronicle won an award as 
the fastest growing daily last 
year with the Crawley 
Observer winning a weekly 
title. It is just as well that at a 
final dosing price of nearly 
£93m Emap turned out to be 
the lmdar bi d der to Northchffe 
Newspapers for the Notting- 
ham Evening Post titles. Pre- 
tax profits of gfifim will give 
Emap a prospective p/e of 18. 


Exceptional puts London & 
Metropolitan in the black 


By Simon Davies 

London & Metropolitan, the 
property developer that was 
forced into a second financial 
restructuring last year, 
yesterday announced a pretax 
profit of £10.2m for 1993, 
compared with a loss of £l9.6m 
incurred in the previous 
year. 

Profits were buoyed by a 
£202m exceptional item as a 
result of the restructuring, pri- 
marily from the write-back of 
provisions. 

However, the company 
remains hampered by Us sole 
overseas project, the Pont 
Royal resort in southern 
France. L&M made a £7.7m 
provision against its share of 
the cost of the project, 
reflecting disappointing sales 
during 1993. 


The directors said the com- 
pany was in better shape fol- 
lowing its latest restructuring, 
a debt-for-equity swap. Debts 
were down by £54m to £73An, 
and negative shareholders 
funds amounted to £4.93m, 
against a negative £60-33m in 
1992. 

Mr Chris Harris, chairman, 
said: “We’ve got the company 
back to a position where we 
can now take advantage of 
opportunities coining out of 
the improvement in the OR 
market” 

However, its problems are 
not over. The company was 
brought to the brink by its 
involvement in the collapsed 
consortium to redevelop 
County Hall, and its joint ven- 
ture development of Pout 
Royal remains criticaL 

L&M is carrying £45m of 


floating rate debt from its 
exposure to the French project, 
and sales last year did not 
cover interest costs. 

In the UK, business was said 
to be looking better. L&M is 
project manager for Value 
Retail, which plans a number 
of US-style factory outlet shop- 
ping centres. 

The first, in Bicester, will 
open in spring 1995 and Mr 
Harris said it was 25 per cent 
pre-let, with a further 50 per 
cent at an advanced stage of 
negotiation. 

L&M has an option, to take a 
15 per cent stake in toe com- 
pany- 

Overall, the group’s UK 
operations contributed operat- 
ing profits of £2.5m for the 
year, while interest costs were 
were reduced from £UL46m to 
£4. 79m. 


Hasbro 
turns up 
the heat 
in scrabble 
for Spear 

By Peggy Hotiingar 

Hasbro yesterday turned up 
the heat In its battie for 
control of JW Spear, toe 
games group, with a veiled 
threat of legal action against 
trustees controlUng 24J per 
cent of toe fondly-run group. 

The US toy maker said the 
trustees were stfll bound Jby 

agreements to sell the stake, 
in spite of an eleventh hoar 
hid by Mattel, the rival toys 
group. 

Hasbro launched its £9 a 
share bid for Spear, maker 
of the word game Scrabble, 

10 days ago, valuing toe group 
at £47m. The trustees had 
agreed to sell their shares to 
Hasbro, as long as Spear did 
not publicly an n n m ira an 
alternative, higher bid In three 
working days. 

On the last day, at just five 

m juntas to midnight, Mattai 

jumped in with a £10 a share 
offer valuing Spear at £52m. 
Ihe announcement was lodged 
with toe Stock Exchange, 
white the Takeover Panel and 
both sets of advisers were 
informed of the offer. 

Hasbro now claims this was 
™t a p iihiif? ann ounceme nt 
and so tiie undertakings are 
valid. "All the steps woe 

taken nf ptHng r eady tn mafcg 

a public announcement, but 

nn pnhtie a nn mnineinen t mn 

ever made,” said Mr Frauds 
Jackson of J Henry Schroder 
Wagg, its advisers and 

merchant bank. 

Hasbro said it was 
considering its optkms 
regarding legal action if the 
trustees did not adhere to the 
undertakings. No response 
had yet been received from 
the trustees. 

Spear rejected Hasbro’s 
claim and said it had received 
professional advke that the 
Mattel offer had been validly 
announced. The board, with 
the exception of Mr Francis 
Spear, the chairman, was 
recommending Mattel's offer. 
Mr Spear originally backed 
Hasbro’s offer, but has been 
silent since the Mattel bW. 

The regulatory authorities 
appear to be divided on the 
issue raised by Hasbro. Under 
Stock Exchange guidelines, 
a public flnnn n m*miMit is 
made by notifying the Stock 
Exchange and at least two 
national newspapers and two 
news wires. 

However, Spear’s advisers, 
toe merchant bank Barings, 
are understood to have 
consulted file Takeover Panel 
on their i n ter pr et a tion of a 
public unnramfonwn t While 
the Panel would not comment 
on the contract signed by the 
trustees, it is believed to have 
defined a public 
announcement as notification 
to itself, toe Stock Exchange, 
the company, Hasbro and both 
sets of advisers. 


Judgment day over £1.£ 

Alison Smith on the battle surrounding Lloyds’ offer for C&G 


F ew, if any, of those with 
a ringside seat for the 
legal fight between toe 
Cheltenham & Gloucester 
Bunding Society and top Build- 
ing Societies Commission over 
Lloyds Bank's agreed £L8bn 
bid for C&G believe that toe 
High Court’s judgment will be 
the of the affair. 

The two days of hearings 
before Sir T WmaM T atehnin* , 
vice-chancellor, revealed 
fundamentally different 
approaches by C&G and its 
statutory regulator to the 
relevant provisions of the 1 986 
Building Societies 
Act 

The gulf was summed up by 
Mr Jonathan Sumption QC, 
counsel for C&G: “There 
are a number of features which 
are anathema to the Building 
Societies Commission but 
which to us are entirely 
proper features of the trans- 
action.” 

In addition, the stakes for 
each side are so high that 
whichever falls at toe first hur- 
dle can scarcely afford to leave 
the matter there. 

For C&G, Mr Sumption 
argued that the act was not a 
comprehensive code of regula- 
tion far the transfer of a soci- 
ety's business to a successor 
company. 

Counsel for toe Building 
So cietie s Commission, Mr Phil- 
lip Heslop QC, said that since 
societies were creatures of stat- 
ute, their powers were limited 
to what legislation specifically 
stated or necessarily implied 
they could do. 

Within these diametrically 
opposed approaches, three 
main points were at issue: 

• could anyone except the 
society and its successor be a 
party to the transfer of its busi- 
ness? 

% could a payment be made in 
relation to a transfer to 8 * was 
not expressly allowed by the 


relevant part of the act? 

• agjniTmny a third party 
rrmiri maka a payment, could 
this benefit members of a soci- 
ety of less *h«n two years' 
standing, who would not be 
allowed to share in a distribu- 
tion Of funds mirier a tr ansfer 
agreement which clearly fell 
within tiie legislation? 

Mr Sumption ^ ton * toe 
draft transfer agreement to the 

Lloyds/C&G transaction 
fru-indwi terms agreed between 
tiie society and its successor 
company which covered all the 
icings the legislation required. 
The fact that the same matters 
had been agreed with o th ers as 
weH did not mean that the 
agreement did not comply with 
the 1986 act 

The commission's argument, 
however, was that in referring 
to an agreement between the 
society and its successor on 
the terms of toe transfer, 
the legislation meant that 
nothing integ ral in the tr ansfer 
could be agreed with anyone 
else. 

As for the question of a pay- 
ment not expressly allowed by 
the act, Mr Sumption argued 
♦hat if Parliament had wanted 
to control the actions of a third 
party, it would have had to cre- 
ate a more elaborate scheme 

Hum it had rirma 

F or gmmpiA, the legisla- 
tion did not provide any 
sanction against a third 
party which handed out bene- 
fits to a society’s members. 
Debates in Parliament on the 
bill bad not m entioned third 
pm -Hftg, and no-one could know 
what Parliament might have 
thought of third-party pay- 
ments. 

However, Mr Heslop argued 
that the detailed provisions 
about what societies could do - 
even to tiie prt p n t of explicitly 
allowing them to acquire prem- 
ises and make fagne for mnhfla 


homes - showed the act was 
based on having to give societ- 
ies express powers to carry out 
activities. 

The consultation and discus- 
sion on the proposed legisla- 
tion before it finally became 
law reinforced -toe argument 
that the idea of transferring a 
society’s business to a succes- 
sor was intended to be only a 
Himted exception to the previ- 
ous blanket prohibition on 
such a move, be said. 

It is on the two-year restric- 
tion on payments that the dis- 
pute is most criticaL The terms 
proposed by Lloyds would 
involve ca sh payments of up to 
£10,000 to all saving and bor- 
- rowing members of the society, 
as well as depositors, employ- 
ees and pensioners. 

The voting thresholds set in 
the legislation for members of 
a society to approve a transfer 
are so bi gb that, without sup- 
port from at least some of the 
27 per cent of C&G’s sharehold- 
ing members who are of less 
then two years’ standing, there 
is no prospect of achieving 
approvaL 

Mr Sumption admitted that 
Parliament had Intended the 
act to prevent members’ taking 
decisions on the basis of 
short-term financial gains and 
to prevent speculative flows 
between societies on rumours 
of takeovers. 

Be argued, however, that the 
primary defence against this 
was the high voting towihnMa 
themselves. 

Though the act prevented 
relatively new members bene- 
fiting from a distribution of a 
society's funds, It did not 
necessari ly follow that Parlia- 
ment thought this restriction 
should apply when “new” 
money from an other organisa- 
tion was being handed out, he 
added. 

For the Commission, how- 
ever, Mr Heslop said Parlia- 


Utility Cable 
£50,000 in loss 
at interim stage 

Utility Cable, the company 
formed via the reverse take- 
over of the JP Fitzpatrick com- 
panies by todUfe Gifford Tech- 
nology in February, incurred a 
pre-tax loss of £50,049 for the 
six months to February 28. 

The results compare with a 
previous deficit of £16429 and 
reflect toe historic activities of 
the company investing in 
advanced technology compa- 
nies. They do not include trad- 
ing results of the Fitzpatrick 
companies. 

The year end has been 
ffhang wi grid toe current finan- 
cial period will cover tiie 18 
months to August 31, which 
will torhide a foQ six months' 
tradin g contribution from the 
Fitzpatrick companies. 

The directors intend to pay a 
final dividend for the 18 month 
period. 

Utility lays ducting for cable 
TV franchise holders. 


Electricity’s poor relation makes good 

Michael Smith on why National Grid’s results today are of more than passing interest 


I n pre-privatisation days 
the National Grid was con- 
sidered within the electric- 
ity industry to be a poor rela- 
tion to power generation. 
No-one will be feeling sorry for 
it today. 

Tbe company, which oper- 
ates the high voltage transmis- 
sion system in England and 
Woles, is this morning expec- 
ted to report pre-tax profits for 
1993-94 of between £5 70m and 
£580m, against £533m in the 
previous year. 

As an unlisted company, pre- 
vious results have attracted 
only passing interest from the 
City. This year is different 
The 12 regional electricity 
companies (recs) which own 
the Grid this spring appointed 
Kleinwort Benson, the invest- 
ment house, and Herbert 
Smith, the legal firm, to advise 
on its future. 

Few doubt that this will lead 
to anything other than a flota- 
tion, which will give National 
Grid a valuation of at least 
£4bn. 

So what kind of a company 
is likely to be floated and what 
are the implications for the 
regional electricity companies? 

National Grid's attraction is 
that it has a cast iron future 
with almost as strong guaran- 
tees of profit growth. 

Transmission is a monopoly 
business in every country in 
Europe except Finland and, 
with development costs so 
high, it will remain so. 

In England and Wales 
demand for electricity is likely 
to grow, albeit at low percent- 
age rates. The main constraint 
on the Grid’s profits growth 
therefore, is regulation, but 
even this presents no great 
threat 

Whereas toe regional power 
companies face a potentially 
severe regulatory review to 
take effect from next April, the 


Grid's pricing formula on its 

main t ransmis sion busine ss is 
in place until 1997. 

It allows the company to 
raise transmission prices by 
inflation minus 3 per cent 
“Since transmission revenues 
account for 80 per cent of reve- 
nues. this relatively benign 
regulatory settlement empha- 
sises tbe value of the Grid,” 
says Mr Nigel Hawkins, Hoare 
Govett analyst 
While transmission will con- 
tinue to be the main revenue 
source, the company is grow- 
ing its non-regulated income 
by investing in transmission 
projects overseas and estab- 
lishing its subsidiary, Energis, 
as a third taleramrnimiratinns 

POWER SHARING: 
National Grid** owners 


% 

Eastern Electricity 

12.5 

East Mctands Bectridty 

8.4 

London Bectridty 

10.5 

Manwab 

5^ 

Midlands Bectridty 

9.2 

Northern Bectridty 

6.5 

Norweb 

Si 

Seeboard 

73 

Southern Bectridty 

11.0 

South Wales Bectridty 

5.4 

South Western Bectridty 

&3 

Yorkshire Bectridty 

92 



David Jefferies (left) and David Jones: flotation will give 
National Grid at least £4bn valuation 


Tte BOimam AotoK om «ncM atet 

force. 

The beauty of Energis is that 
it can be built mi toe back of 
the electricity transmission 
system. The fibre optics can be 
wound round existing earth 
wires or incorporated into new 
ones. 

In spite of the more than rea- 
sonable prospects for the 
Grid's businesses, the company 
is held back by a complicated 
maniigwnwit gtniCtUTft 

The recs own the National 
Grid Company indirectly 
through their investments in 


National Grid Holding Com- 
pany. The chains of command 
are not always dear. 

Some rec chief executives 
' were irked when Mr David Jef- 
feries, Grid Company chair- 
man, announced the appoint- 
ment as chief executive last 
year of Mr David Jones, who 
held tbe same post at South 
Wales Electricity. 

While Mr Jones is well 
regarded, some of his former 
colleagues thought Mr Jefferies 
had not consulted widely 
enough and, in any case, 
should have looked outside 
the industry to till the 
post. 

Some recs feel they are not 
involved enough in decision 
making on overseas invest- 
ment and Energls- 

On the other Kauri, running 
a business where 12 forceful 


owners with differing objec- 
tives want a say can be damag- 
ing. 

Talks this year with AT&T, 
tbe US telecommunications 
concern, about the company 
taking a stake in Rnwg te were 
hampered through disagree- 
ments between the recs on a 
suitable price. So for no link 
has been formed and AT&T 
has backed away from taking 
an equity slice. 

S orting out the manage- 
ment structures will be 

aiming the ^hipf ran sifter . 

ations for Kleinwort Benson. 
Its over-riding task, however, 
is to mavimiy the value of the 
Grid to recs. 

While the City estimation of 
the Grid is at least Mbn and 
possibly £5hn, the company is 
valued in the rec balance 


sheets at £780m on a historic 
cost accounting basis or £SL2bn 
on a current cost basis. 

There is therefore significant 
scope for unlocking value and 
boosting the tecs’ share prices. 
But the companies will have to 
tread carefully politically. 

One problem is that the Grid 
was a government gift to the 
recs when they were vested. 
Capital gains tax could there- 
fore be as high as 33 per cent of 
the value of whatever propor- 
tion of the company tbe recs 
decide to selL 

Offering shareholders sepa- 
rate shares in the Grid also 
presents problems to share- 
holders since there could be an 
advanced corporation tax lia- 
bility. 

Mr Nick Pink, analyst at SG 
Warburg Securities, says a tax 
efficient structure could be 
devised bat there are dangers. 
“Avoidance could damage rela- 
tions with the gove rnment a-nfl 
there Is considerable scope for 
unflattering media coverage." 

Such considerations will 
influence the recs 1 decision on 
how much of the (hid to sell, 
with anything from 25 pel cent 
upwards possible in one or 
more tranches. 

They will also have to decide 
if they want to sell as separate 
entities some of the non core 
businesses like Energis or 
pump storage facilities for gen- 
erating electricity. 

The final uncertainty 1$ tim- 
ing. Labour’s threat before the 
last election to “take control" 
of the Grid still weighs heavily 
on the recs. If the shares are 
widely distributed, it would be 
more difficult for a future gov- 
ernment to effect renationaUsa- 
tion. 

That means a flotation 
before 1997 is a virtual cer- 
tainty. Within the National 
Grid, next spring is considered 
the best bet 


BAA plans £lbn 
Heathrow outlay 


By Pad Belts 

The bulk of BAA’s future 
capital spending will go to 
Heathrow, tiie world’s largest 
international passenger air- 
port, which will absorb £Um 
of the planned £L4bn expendi- 
ture over the next three years. 
Capital spending totalled 
£68 lm in tiie last three years. 

Gatwick airport will absorb 
£2l4m, while spending pro- 
grammes at BAA’s Scottish 
airports will involve £107m 
with a farther £70m at Stan- 
sted over the next three years. 

Capital program m es include 
the £800m Heathrow Express 
rail link; a new baggage 
screening system costing more 
than £ioom to install through- 
out the company’s airports; 


Beverley 
losses up 
to £2.67m 

Beverley Group, the 
engineering concern, said yes- 
terday that it had completed 
its rationalisation programme 
and was now planning a plac- 
ing and open offer to fund 
future growth, both organi- 
cally and by acquisition. 

Details were expected to be 
announced shortly. 

Rationalisation costs of 
£I.77m for the 1993 year pushed 
pre-tax losses up from £276,000 
to 2297m. 

Turnover of continuing 
operations fell from oz84m to 
2797m. 

After eliminating an £828.000 
technical adjustment arising 
from a write-off of goodwill, 
losses per share worked 
through at 7.63p (021p). 

The directors said the 
restructuring had provided an 
opportunity to create more 
added value through the provi- 
sion of high quality products 
and services. 

However, despite toe benefits 
now showing through, they 
said the group would not show 
significant improvements on 
1983 until the second half of 
the year. 

Harrington Kilbride 
shares fall further 

Shares in Harrington Kflhrirte, 
toe specialist publisher, fell a 
further lOp to 58p yesterday as 
news of its £3m additional pro- 
vision for bad debts was 
digested. 

The provision, mainly for 
debts from eastern Europe 
where the company has expan- 
ded considerably in the last 
two years, turned the 1993 pre- 
tax profit of £L42m into a loss 
gnri has put the proposed final 
dividend of &2p in doubt. 

The move was prompted by 
the collection of 1993 debts 
being slower than expected. 

A detailed review of its trade 


wpanriff n and nmfly piiMtlon 

of departure lounges and 
check-in halls as well as air- 
port retailing facilities involv- 
ing about £20m-£30m for each 
lounge; a new flight connec- 
tion centre between Terminal 
1 and Terminal 2 at Heathrow, 
and preparatory work for 
Heathrow’s new £800m-£900m 
Terminal 5 project. 

If BAA wins the Terminal 5 
planning inquiry, it will face 
continued heavy spending 
after 1997 when construction 
of the terminal would begin. 

• The airports group expects 
only a modest impact on its 
business from the opening of 
the Channel Tunnel with a 
loss of about 2m passengers in 
1995-96 when the tunnel 
becomes frilly operational. 


NEWS DIGEST 


debtors is being undertaken. 

Accounts will not now be 
presented to the annual meet- 
ing being held tins Friday. An 
extraordinary meeting fo to be 
convened as soon as possible. 

The shares fell 66p on Fri- 
day. 

Abbey National 
chiefs brans 

Abbey National may have had 
a good year in 1993, but Mr 
Peter Birch, the bants chtef 
executive, did even better, with 
a £62,400 performance-related 
bonus to add to Ids salary. 

Back in March. Abbey sur- 
prised analysts with an 
increased dividend pay-out 
policy that reflected the 
optimism that came with a 25 
per cent increase in pre-tax 
pr o fits. 

However, Mr Birch just man- 
aged to top this. The latest 
annual report reveals a 28 per 
cent increase in Ids pay pack- 
age taking it up from £257566 
to £329,179. 

Camellia nearly 
doubled at £21.6m 

For 1993, Camellia, the invest- 
ment concern with interests 
which include fine art and tea 
plantations, nearly doubled its 
pre-tax profits from £lL5m to 
£2l.6m from con tin uing 
operations* turnover of CTnawi 
against £l7L9m. 

Earnings per share were 
268-4dp, compared with U4j24p, 
while the dividend for the 12 


DIVIDENDS ANNOUNCED 


Curent Data of 
payawrt payment 


JJn 


-fln 


Acal 

BAA 

Btaeta Leisure _Jh 

OanwBa ___ nn 

EFM Income -font fin 

Emap — ■■ fln 


Correa - Total Total 

Ponding for test 

<*'*>«* year year 


Una ware 

Northern bmtrs. 
Trealt§ 


Jnt 


M. 


nvkfanda shown pence per share net except 

Increased capttaL §USM stock. 



91 


ment could not have Intended 
that a transaction would be 
able to avoid having to comply 
with tiie regime set out in the 
act; simpty by a relatively mod- 
est structuring of a deal to 
involve a third party. 

Such easy circumvention of 
what were Intended to be safe- 
guards to prevent the destabi- 
lising of the building society 
movement by speculative flows 
would mean that compliance 
was "optional’*, he sai d . 

Given such deep divisions* 

Sir Donald’s judgment, to be 
given tomorrow at 5pm, looks 
likely to trigger an application 
for leave to appeal. The losing 
gifo may seek to take Its case 
all the way to the House of 
Lords. 

Even whan toe courtroom 
drama has finished, that will 
not necessarily be the end of 
the argument 

I f the commission loses, the 
Building Societies Associa- 
tion will rush round to the 
Treasury to urge toe reinstate- -* 
rmmt of toe two-year restric- 
tion on payments to society 
members. 

Mr Brian Pitman, Lloyds’ 
chief executive, has already 
said that the whole deal would 
have to be looked at again if 
C&G lost 

In the meantime, there 
would be hundreds of thou- 
sands of C&G customers who 
might feel aggrieved that the 
cash windfalls they had been 
expecting bad been taken from 
them. 

“I imag ing many customers 
might want to write to their 
MPs, complaining, " one senior 
figure on tiie Lloyds/C&G team 
mused. 

Whatever the outcome, toe 
battle that began In private 
discussions between tiie soci- 
ety and the commission looks 
set to end in the Commons, not 
in the courts. 


EFM Income 
net asset value 
expands 

EFM Income Trust, the split 
capital investment trust, 
reported net asset value per 
ordinary share c£ 50.7p at April 
30, against 45.3p a year earlier, ,-j 
after providing for the repay- 
ment cost of the zero dividend 
preference shares. The figures 
for the zero preference shares 
were 4&8p (43.7p). 

Total net assets showed an 
IL2 per cent advance against 
13.8 per cent for the bench- 
mark FT-SE-A All-Share Index. 

Nat revenue for the the year 
to toe end of April was £688*000 
(£755,000) for earnings per 
share of 4£flp (5p). A reduced 
final dividend of lp is proposed 
making 4p (A875p) for tiie year. 

To reflect the name change 
of its manager it is planned to 
change the name of the trust 
to Edinburgh Income Trust. 


months is lifted from 29p to Sip 
with a final payment of 18P- 

London Clubs shares 
rise to 21p premium 

Shares in London Clubs Inter- 
national, owner of the Ritz 
Club and five other London 
casinos, rose to a premium of 
21p over the 200p flotation 
price on the first day of deal- 
ings on the Unlisted Securities 
Market yesterday. 

Last month, the group placed 
16.38m ordinary shares with 
institutions, with 449m subject 
to a da whack to meet retail 
demand through intermedi- 
aries. 

The placing raised £27. 5m 
net of expenses, which is being 
used to pay off bank debt 
incurred under the manage- 
ment buy-out from Grand Met- 
ropolitan in 1988. 

Simon Engineering 
completes US sale 

Simon Engineering has com- 
pleted the sale of Simon Hydro- 
Search to Tetra Tech, of Pasa- 
dena, California, far $5m (f4m) 
In cash dependent on. net 
assets on completion. 

Proceeds will be used to 
reduce indebtedness, the direc- 
tors said. 

Both Simon Hydro-Search, 
which had sales of *i&5m and 
trading profits of 3800,000 for 
1993, and Tetra Tech are envi- 
ronmental consulting, engi- 
neering and remediation com- 
panies. 


4 


wh * re otherwise stated. tOn 


i 


X, 






■Sww'-Ivv-s- '• -.-v ' 



TIMES TUBSpAY JUNE 7 1994 


25 


COMPANY NEWS: UK 


n| -' C l, »' 
'*• 
:"’V 

" “V. 

^■.lV 

■Vh! s 

■r* .m'S 

■‘JVr,; 

" • , l , :*v 1 | J $:'- 

■'■*•■■. i Si ;3y 



pays $150m 
medical group 


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X ; 

• 111 ; 

ir:,t 


' s*. 




. ByDauM Srnn 

Smltti£, '’Industries, fhe 
aerospace' and healthcare 
group is^paying $150m (£l00m) 
for DtiteCa US medical equip- 
ment manufacturer owned by 
Pharmacia bf Sweden! 

-T-Tbs <tea$ wm add more than 
ohe^rird'-td Smiths' £i8lm 
aimual tiateB;in healthcare. 

• ft . will abo - reaali zn a book 
profit & ; SKr«GQm <£S0.6m) to 
Phanuada, which 1 is scheduled 
to he privatised this month. 

-Mtee,TMBedto.StPaal, Min- 
iresota, rbfl!kes portable infu- 
atopmnps and utfection ports. 
td~ 1998, ft had sales of about 
{lOptm .and operating profits of 
hmhv than 913m. 

- The^cash’ will come from 
Smiths’ ousting resources. The 
company will pay 996m Tot Del- 
. tec’s equity and repay Inter- 
company dpbt of $35m. 

The balance of $17m will be 
paid Del tec’s noo-US offices 
change -hands. 


This is Smiths’ - second 
healthcare acqmsltkm in less 
than two. years. In October 
1992, -it -bought Intertech 
Resources; 'tile US' medical 
equipment- company, for 
'9110m. 

’ Intertech had annual sales of 
leas imA Smiths wM 

yesterday that' “there are more 
reasonable - prices being asked 
for medical companies these 


-Bettechas-more than 80 per 
cant of its sales In the US and 
Smiths said that the non-US 
market, for- the company’s 
products “remains to he 
exploited*. 

Two thirds of Deltec's sales 
are of a "pump 'that allows a 
patient receiving medication to 
leave a hospital The pump 
continues to supply the patient 
without the need for direct 
nursing cam. - 
Although each pump costs 
more than- $3,000, and must be 
ffited with Del tec’s proprietary 


medication-containing cas- 
settes, there are greater 
savings to be made &om not 
laving the patient in hospital, 
said Smiths. 

“The wearing of the pump 
provides doses of medicines to 
people who do not need a hos- 
pital bed The driving - force in 
the US [healthcare business] Is 
getting people out of hospital 
beds,” said the company. 
Patients occupying beds typi- 
cally cost hundreds of pounds 
a day. 

For Pharmacia, the disposal 
represents a move to concen- 
trate on the core business of 

dtnigS Tnan irfmhff a . 

The company has accumu- 
lated a disparate group of busi- 
nesses through acquisition. 

The sale of Deltec has been 
planned since February, said 
Pharmacia. 

The company will keep the 
rights to sell Deltec’s products 
in parts of Europe but not in 
the UK, Germany and France. 


GrandMet may raise £75m 


V * 

*• '' 

h.u; t-.va . 

M1‘* siunr^: . 

• 


from property disposals 




r l!;-. , 


! - uj. 

li} ; " 

** ' ••.■■T.llvjjr , 

*?,i- ■ 

r« . 

Income 

•iset vain 
ids 

• \2>; 


: -y*i 

:,v : 

-••• lh S 


■ ' i; 


ByVansSsaHoifder,; 

Prope^jCornaspbndeftt 

The nptntn in. the : property market has 
prompted Grand Metropolitan, the food and 
''drinks groups lo pot 28 development and invest- 
ntent praperttes up for sale, 
the porifoEo, which is expected to fetch 
mostly consists of prop ertie s that 
are no lpnger used by GrandMet businesses. 

' The pwtfcAo includes three Oxford Street 
' buildings, Incding a bnflding occupied by Vir- 


gin Megastore, close to Totten ham Court Road, 
which used to house the Sportsmans Club 
casino. 

Mr Bob Williams, chairman and mawag in g 
director of Grand- Metropolitan Estates said 
that the sale was in line with the group’s strat- 
egy of concentrating on its core food and drinks 
business, 

: ' The portfolio covers shops, offices, industrial 
properties and development sites situated 
around the country and includes the former 
Truman Brewery in London’s Brick Lane. 


Ztitercare Interim results hit by 
changes in Dutch legislation 


^nsg.Wntgban 

Dutch legislative chang es -have 
BKihfeibh profits of Intercare, 
the S^traded supplier of 
‘ ‘ -products, prompt-.. 

foil to 88p hr tiie 
nfuny-j p^ yesterday. 
:A^w*Pre-tax level, profits 
^cfihed^py 20 per cent tq 
;£m«^half yCTr.to-end t 


April, rdlecting a 41 per cent 
drop in the mobility division 
. contribution to £430,000. 

Mr Robert Shepherd, non-ex- 
ecutive chairman, said that the 
le glfrlaMnn chang es bad led to a 
downturn in scoots - business 
and trading was likely to con- 
tinue to be affected in the sec- 
ond-half, 

'■'. ■For the group as a; whole, he 


believed the first half pattern 
of trading was likely to con- 
tinue for the rest of the current 
year. In 1992-93 group profit 
was £4J31m. 

Group turnover rose from 
£17.720 to £2(t5m, while earn- 
ings per share came out at 
3.25p (4.1p). 

The interim dividend is 
unchanged at o.7p. 


NEWS DIGEST 


UK side 


i ( ! 

2U> 


ulis si# 
pul^" 


to £3.65m 

.. Pre-tax prefits of Acal, the 
agent -for international manu- 
■ fecturers of electronics And 
loditetrial omfrols, ^expanded 
-fi^h SaiSm to £^65m for the 
year ended March SVon.turnr 
■over of £78.5ni, against £B8.9nt 
^ Earnings per share wore up 
t&t Mp (l4.Gp) while affinal dto 

- tribuflcai of 44Sp (4^p) Hfts the 
total dividend to 6.7Sp (&3p). 
iThe ’ffirectcai add that the 
rise In pr^te was- primarily 
bereute trf the improvement in 
the UK where underlying sales 
grew more than ffi per cent 
wtfix pndlts being Ambled. 

Restructure surplus 
lifts UK Land 

^rite lnditeion of a £43.7m sur- 
'this time' arising -on 
rertrtfotaring meant UK Land, 
the property investment and 
/^deeltog -group, turned in a pro- . 
'tox profit of £45.D2m for the 
year -ehdBifi. March 31. This 
compared w&h a £KSm loss. 

- • The! . pre-tax figure also 
■Included £961,000 profit 
(£l3.7m los8) on termination of 
aerations.- Profit before excep- 
th»al items came to £414,000 
tErjan toes), and earnings per 

wsre £10.13p (£5999p 


£63,000 to £117,000 for the half 
year to end April. 

Mr Peter Hearn, chairman 
. and chief executive, said it was 
anticipated that the group 
would continue to make a loss. 

The US business has been 
dt»ed and the trading loss in 
reject of this discontinued 
business was £51^)00. 

- Turnover of the USM-traded 
group was down from £S96j000 
to .£420,000. Losses per share 
were flip (same). 

Treatf 17% ahead 
at £756,000 

- Improved performance at its 
-Florida operation helped 
Treatt, the USM-traded essen- 


dnced through the stage 1 
plant, which is expected to be 
commissioned within the next 
few weeks, and revenues have 
been received in foreign cur- 
rency. 

Urn study results were given 
when the company, which 
came to the market in August 
to exploit a gold mine in Kaz- 
akhstan, announced losses of 
$636,000 (£423,000) for the 
period from incorporation, in 
April to March 31. 

Allied London Props 
makes £11. 3m boy 

Allied London Properties ' has 
bought two properties in Glas- 
gow for £11.3m through a new 


««*v 7-;j~ 7.1, : 
: 1 * « 


» 1. 4 



OyntMn 

Hugo BovilL managing director, reported good result in Florida 




N^qsarts itf the. company, 
which owns the Elephant ft 
Castia- shopping and office 
complex in London, came to 
^ defidO, ' 

Noartheni investors 
assetvalueup 1 13% 

Northbre'Investbrs; the" ven- 
coital investment trust, 
as w xl£9 per cent increase in 
ttJtxafotiBitteover the year to 
-Man*‘^lrom29S£p to 333.6p 



income 

-aom tiK eompahys venture 
caidtid -assets Increased by 17 
per cent ^feU In. short-term 
jirktee led to 4i 
dfifSaa io totai- revenue. The 


earnings per 
to&ip. 
jphal dividend 
to give a 




-^oopfe Manchester 


from 


tial oils supplier, blender and 
distiller, to increase pre-tax 
profits- by 17.4 per cent from 
£644,000 to £766,000 for the six 
months to end-March. 

Turnover was up from £7£m 
to with a 70 per emit 

i m provement at Florida Treatt. 

R^m in g s per share came out 
ahead at 5<35p (4.4Sp) and thee 
is an increased interim divi- 
dend of L2p (l.lpX 

Bakyrchik Gold 
reserves confirmed 

Following a study of reserves 
the definitive ore resources of 
Bakyrchik Gold have been 
reduced slightly to 31. 4m 
tonnes producing a total of 
8.8m ounces. That compares 
with earlier estimates of 3L6m 
tonnes and 93m ounces. 

However, the measured 
reserve category has almost 
doubled from 655,760 ounces to 
L26m ounces. 

The study confirmed expec- 
tations that it was capable of 
producing lm tonnes of ore a 
year with gold output of about 
250,000 ounces a year from the 
stage II sulphide plant 

Stage n is likely to be sanc- 
tioned onre gold has been pro- 


subsidiary, Allied London, ft 
Scotland Properties, of which 
20 per cent is held by Barrie 
Clapham, a Glasgow-based 
property developer and inves- 
tor. 

The properties, a light indus- 
trial, office and storage devel- 
opment and an office, leisure 
and warehouse building, have 
a rent roll of £l.07m and have 
been valued at £113 dl 

HSBC enhanced 
scrip take-up 

HSBC Holdings said the refer 
ence price In respect of the 
enhanced scrip dividend alter- 
native to the 1993 final cash 
dividend is 72&87636p. Of the 
69.1m shares to be issued 
under the alternative, the cash 
offer by NatWest Markets has 
been accepted in respect of 
17.8m shares and bids have 
been procured for 55 per cent 
of these, 

McKechnie in 
£5m expansion 

McKechnie, the Midlands- 
based plastics and metal com- 
ponents group, has agreed to 


Blacks 
Leisure 
recovers to 
£928,000 

By Caroline Southey 

Blacks Leisure Gronp, the 
camping, sports and fashion 
company ^etnrned to profit 
with a pre-tax figure of 
£928,000 for the year anted 
February 26, against losses 
of£i0.3m, which included 
£7 .68m for goodwill already 
written off. 

The retail division 
performed well as an 
aggressive national marketing 
strategy pushed sales up 20 
per cent to £45 Jim (£37. 7m), 
Retail o per at i n g profits rose 
to £2.7m, against losses of 
£991,000. 

Within the retail division, 
the Blacks Camping chain 
traded well. A new store was 
opened In Aberdeen and the 
company plans to open a 
further six this financial year. 

Turnover in the distribution 
division was down front 
£27.4m to £15.1m, pushing 
down group turnover from 
£65. lm to £60 .3m. Group 
operating profits from 
continuing operations rose 
to £L28m (£9,000) on turnover 
of £5&5m (£63.6m). 

The distribution side 
incurred operating losses on 
continuing activities of 
£516,000 (£l-58m profits) on 
turnover of £13. 4m (£15 3m). 

Mr Simon Bentley, chairman 
and chief executive, said a 
major cause of this fall in 
turnover was the deterioration 
in tiie performance of the 
company’s Flla distribution 
operations. 

Although the American- 
designed sports fashion 
footwear remained popular 
in the US, there was a sharp 
drop in UK sales. 

The company has also had 
difficulties with its own soccer 
brand, Qnaser. This reported 
a loss, mainly due to poor 
sales in the UK, which 
accounts for 60 per emit of 
sales. However, the brand 
continued to sen well in 
foreign markets. 

The board is recommending 
an unchanged final dividend 
of l.5p per share, making a 
sameogain total for the year 
of 2^5p. 

Earnings per share stood 
at 2-4p compared with losses 
of 31.8i>b 


acquire Plastic Engineers 
(Holdings) for a cash consider- 
ation of £5.1ul 

Plastic Engineers, a maker of 
plastic components for the 
information technology indus- 
try, is a private company with 
31 as a minority shareholder. 

it has assets of about £1.2m 
and expects pre-tax profits of 
about £865.000 for the 12 
months to October 31 1994. 

Middlesex well 
ahead of forecast 

Shares in Middlesex Holdings 
edged ahead ‘/ ( p to 4p alter Mr 
Phn Edmonds, the chairman, 
said that the 91m (£600,000) 
gross trading profits warranted 
to be provided by Mr Masoud 
Alikhani , the chief executive 
within a 12 month period, had 
been exceeded well ahead of 
forecast. 

Mr Edmonds, the former 
Middlesex and England crick- 
eter, said the company, which 
is engaged in metals and oil 
trading, continued to earn prof- 
its at a level the directors 
regarded as “very satisfac- 
tory”. 

Sleepy Kids signs 
further Budgie deals 

Sleepy Kids, the independent 
producer of children’s anima- 
tion has signed a farther 17 
licensing deals for “Budgie the 
Little Helicopter", the charac- 
ter created by the Duchess of 
York. 

Nine of the deals are in the 
UK, four in the US, two in Can- 
ada and the first in Australia 
and Germany. Also the first 
Budgie series is due to be 
screened during the second 
half of 1994 by television broad- 
casters in Australia, France 
and South Africa. 

Total number of worldwide 
merchandising licences is now 
5& 

Life Sciences 
acquires Hybaid 

Ufa Sciences International, the 
laboratory equipment company 
headed by Sir Christopher 
Bland, 1ms acquired Hybaid for 
a total of up to £l5Am. 

The Initial consideration has 
been satisfied by £6-5m in cash, 
£200,000 in loan notes and 
£3J2m in new ordinary shares. 
Hybaid had net cash balances 
of £900,000 on completion. A 
further amount up to £6m may 
be payable if Hybaid attains 
certain targets. 

Hybaid develops equipment 
for molecular biology. In 1993 
it made pre-tax profits of 
£611,000. 


A natural buyer — at first sight 

Kenneth Gooding on RTZ’s hunger for coal after its US deals 


T he world's biggest 
mining company, RTZ 
Corporation, at first 
sight seems a natural 
candidate to buy some of the 
British Coal mines put up for 
sale by the government 
After all, RTZ has made its 
strategic interest in this 
unfashionable fuel very clear. 
It spent 92.32m (£900m) or two 
coal businesses bought in rapid 
succession last year. 

These purchases were in the 
US, and making It that coun- 
try’s fifth largest coal pro- 
ducer. 

They were followed by a 
$233m deal for another US coal . 
business, completed in April 
To the uninitiated investor, 
the push into US coal did not 
look like perfect timing. 

It came just after President 
Bill C linton had promised both 
new energy taxes and to damp 
down more firmly on any 
activates which damaged the 
environment 

But from RTZ's point of view 
there could not have been a 
better time to pounce. Coal 
was out of favour, and there- 
fore cheap in relation to other 
minerals. 

And the cost was nowhere 
near as great as it first 
appeared. 

RTZ's biggest US acquisition 
was Nerco, the floundering 
natural resources company, 
previously 82 per cent-owned 
by PacifiCorp. 

RTZ quickly sold Nerco’s 
oil and gas and gold mining 
interests. 

So its net outlay for Nerco 
and the second acquisition, 
Cordero Mining, bought from 
Sun Company, was in fact only 
9480m. 

And these assets then con- 
tributed £36m towards RTZ’s 
total net profits of £287m last 
year, even though Nerco was 
included only from February 
onwards and Cordon did not 
contribute until the end of 
May. 

April's purchase of Colowyo 
Coal from the WR Grace group 
also involved some fest finan- 
cial footwork. 

Although it was worth $233m 
to Grace, it cost RTZ only 9 13m 

This was because RTZ did 
not buy some long-term coal 
contracts, but instead these 
were used for non-recourse fin- 
ancing to give Grace $220m 
before the deal was completed. 



•f't'.r. 

Tww hftarpnrtas 


Bob Wilson: looking for wholly-owned, world-class, long-life, low-cost, competitive mining assets 


So what makes US coal so 
attractive? 

According to Mr Bob Wilson, 
RTZ’s chief executive, it is not 
only cheap, but also offers 
long-term, if modest, growth 
prospects. 

Before Mr Clinton’s election 
the consensus was that elec- 


BRITISH COAL: 
THE BIDDERS 


tricity consumption in the US 
would grow by about 2 per cent 
a year, and that would provide 
2 per cent growth for coal used 
by the utilities. 

Mr Wilson suggests there 
will also be important changes 
within coal demand as the US 
clean air legislation bites 
deeper during the rest of this 
decade. 

Coal with a high sulphur 
content from Illinois and the 
Appalachian Mountains is 
expected to be displaced by 
low-sulphur coal from the Pow- 
der River Basin which strad- 
dles Montana and Wyoming. 
“So low-sulphur coal demand 


could grow at better than 2 per 
cent a year for a long time to 
come," says Mr Wilson. 

Nerco gives RTZ two open 
pit, steam-coal mines in the 
Powder River Basin and a half 
share in a third. 

Cordero added another open 
pit mine nearby. More than 60 
per cent of production from 
these mines is secured by 
long-term contracts, and 95 per 
cent of the contracts run into 
the next century. 

Mr Wilson says the mines 
“are about the lowest-cost in 
the world” , with coal typically 
costing only $4 a tonne to 

ming- 

This is because the deposits 
are thick and very little waste 
has to be removed before the 
coal can be extracted by cheap, 
open-pit methods. 

The snag is that Powder 
River coal has to be trans- 
ported by high-cost railways 
up to 1,200 miles to reach 
customers. 

Also, Powder River coal 
might he “clean" but it usually 
contains only a moderate 
amount of energy compared 
with Appalac hian material. 

However, last month's acqui- 
sition, Colowyo, is a surface 
mine in north-west Colorado 
which adds a higher-energy 
coal to RTZ's US portfolio, 
enahling it to offer a broader 


range of products. RTZ's 
annual US COal output should 
rise from 37m tonnes last year 
to 42m tonnes in 1994. 

These acquisitions fit RTZ's 
declared philosophy of wanting 
a portfolio of wholly-owned, 
world-class, long-life, low-cost 
and internationally-competi- 
tive mining assets. 

RTZ executives privately 
point out that it seems 
unlikely anything British Coal 
has to oiler will meet these 
criteria. 

Nevertheless, the group has 
gone through the pre-qualifica- 
tion process, paying for details 
of each of the five British Coal 
regions up for sale. The cost at 
£15,000 each is negligible, and, 
as one RTZ executive said: 
“How can we decide that we 
don’t want to bid until we see 
the details?" 

Analysts suggest it is more 
likely that RTZ will bid for 
more coal in Latin America or 
South Africa. Mr Wilson said 
recently that the group would 
look for opportunities to buy 
into the internationally-traded 
coal business or add some 
value by putting some Interna- 
tional coal trading companies 
together. 

Previous articles in this series 
appeared on May 30, June 1. 
June 2 and June 3. Further 
articles will appear later. 


As actuaries we’ve always had 
high standards. 

And now they’ve been 
recognised, r:™! 

pension scheme 
administration. 

Now we're proud to 
announce that we f re 
also the first consulting 
actuaries to receive 
that particular accolade 
from BSI for another 
vital service - pension 
scheme valuations. 

The award recognises 
the standards we have 
always maintained and 

is confirmation of our prompt, efficient service. 

This allows us more time to concentrate on giving value- 
added, understandable advice. 

To find out more about Towers Perrin's service and 
how we can help you with all aspects of managing, 
administering and valuing company pension funds, 
contact Alastair McLean on 071-379 4411. 

Towers Perrin 




awarded BS5750 for pension 
scheme design, administration, 
and actuarial valuation. 


FS 25139 
FS 23604 







,v““ 


r>MAroriA>, TIMES TUESDAY JUNE 7 1994 


COMMODITIES AND AGRICULTURE 


Oil prices ease back as 
demand begins to slacken 


Germany’s political stone-throwing on BSE 

The row over 'mad cow disease’ is not based only on concerns for consumers’ health 


By Robert Corrine 


Oil prices weakened yesterday 
amid si gn s that demand, from 
r efin er.- was beginning to ease 
after a period of strong buying 
in preparation, for the summer 
holiday season tn the US. 

The price of light crude 
futures in New York fell below 
the pyschologicaHy important 
$18 per barrel level. That 
helped to undermine the price 
of the benchmark Brent Blend. 


which was quoted at around 
$16-25 a barrel in late London 
trading, down from its close 
last Friday of $16.37. 

Earlier the International 
Energy Agency left unchanged 
its demand forecasts for the 
remainder of the year. It was 
the first trtme in recent 
months that it has not revised 
the forecasts upwards due to 
strong demand in the US. 

But the forecast for frill year 
demand in the industrialised 


countries of the Organisation 
for Economic CcHjperation and 
Development of 39.7m barrels a 
day remains well above the 
39.1m b/d recorded last year, 
the IEA said. 

In its latest monthly oil mar- 
ket report the Paris-based IEA 
also reported that refining 
margins in the OECD countries 
were being eroded as 
. . average product prices 
rose less strongly than erode 
prices*' In April and May. 


A griculturally speaking 
the Germans are living 
in a glass house but 
are still throwing stones. For 
in spite of their continuing 
refusal to accept that B ritish 
beef is safe to import - a policy 
that Is widely recognised as 
being based more on politics 
than on science - they have 
pTiimai health problems of 
their own that are spilling over 
into other European Union 
countries. 

Bovine spongiform encepha- 
lopathy has already been iden- 
tified in some German, and for 
that matter French, cattle so it 
is not exclusively a British 
problem. The campaign to Tym 
British beef that has been 
waged by Mr Horst Seehofer, 
the German health minister, in 
the face of the acceptance of 
the Oimmfgsfon and all other 
EU member nations that it 
poses no health problem, is 
embarrasfng some of Us col- 
leagues awrf his countrymen. 

With a clutch of regional and 
national elections in various 
parts of Germany scheduled 
for the nest few months, a 
political gesture in apparent' 
protection of green-minded 
German consumers was, per- 
haps, predictable. But the Ger- 
man agriculture minister, Mr 
Jochen Borchert, Is said to 
have accepted privately that 
the new EU measures to ban 


6 No ANC threat’ to gold rights 


By David Blackwell 


South Africa's new 
government will not national- 
ise the gold mines or thr eaten 
mineral rights, according to Mr 
Marcel Golding, an ANC mem- 
ber of parliament 

Mr Golding, who spent 10 
years as a mining tminn offi- 
cial, told the Financial Times 
World Gold Conference in Lon- 
don that the damage caused by 
apartheid should not be under- 
estimated. “The vote will not 
immediately remove all the 
warts." But gold mining 
remained the backbone of the 
South African economy, 
employing 380,000 workers. 
Millions more depended 
directly or indirectly on the 
industry. 

“The challenge of transition 
Is to ensure that living stan- 
dards are enhanced," said Mr 
Golding. While the industry 
had moved away from confron- 
tation, further co-operation 
between the government, min- 
ing companies and the unions 
would be needed. 

Mr Clem Sunier. chaft-man of 
the gold and uranium division 
of Anglo American Corpora- 
tion of South Africa, said that 
in 1985 the company had writ- 
ten a fairy tale which it called 
The High Road, specifying four 
conditions for the continuing 
health of the mining sector a 
comprehensive negotiated 
political settlement; free enter- 
prise as the basis of the econ- 
omy; the devolvement of politi- 


cal power to local authorities; 
and the end of economic sanc- 
tions against the country. 

“Our scenario team is 
cock-a-hoop about recent devel- 
opments," he told the confer- 
ence. “So far so good. South 
Africa has become a very 
attractive place to invest" 

South Africa, still the biggest 
gold producer in the world 
with 32 per cent had produced 
44,000 tonnes of gold from the 
Witwatersrand basin since 
mining began. Throughout his- 
tory the world has produced 
only 120,000 tonnes. 

Mr Sun ter said that while 
most of the big fish in the 
basin had been caught there 
were probably a few more. 
However the depth of the 
seams meant that it was expen- 
sive to establish a new mine. 

South Africa's annual output 
peaked at ljQQQ tonnes in 1970. 
It had been steady at 600 
tonnes for the last few years, a 
level it should be able to main- 
tain for several years. “Virtu- 
ally the whole industry is via- 
ble given the current price and 
rand-dollar exchange rate." 

Mr Chris Stals, governor of 
the South African Reserve 
Bank, said that the pressures 
on foreign reserves during the 
run-up to foe change of gover- 
nement had forced the country 
to reduce its gold reserves and 
gold swap portfolio. 

The country now intended to 
rebuild its foreign reserves. 
“From our own experience 
with thft manage ment of the 


country's international 
reserves in the years of South 
Africa's economic isolation, we 
have h orned the value of gold 
in the official foreign reserves 
for a country in distress. We 
believe it is also a good invest- 
ment for a country at peace 
with the rest of the world.” 

Mr Jean Zwahlen. a member 
of the governing board of the 
Swiss National Bank , said gold 
was virtually the only asset 
that did not constitute some- 
one else’s liability. The SNB 
holds 2,600 tonnes, equivalent 
to 370 grams per capita - the 
highest level in the world. It 
was unlikely even In the 
long-term to sell. 

Mr Zwahlen also ruled out 
more active management of 
the holdings, describing the 
return on loans, swaps and 
options as “low and volatile." 

The fear of large-scale net 
sales by central banks, which 
together with international 
institutions have 35,0000 
tonnes in their vaults, had 
receded, Mr Zwahlen said. 

The conference is being held 
in London to coincide with the 
tercentenary of the Bank Of 
England. Mr Rupert Pennant- 
Rea. deputy governor, 
suggested that the time was 
ripe for an airnnal survey of 
physical gold trading to pro- 
vide a figure for the aggregate 
market turnover, “ft is a pity 
that no data are available for 
turnover, not Just here in Lon- 
don but in all the various phys- 
ical centres," he said. 


FARMER'S VIEWPOINT 



By David Richardson 


the use of ruminant offal in 
ruminant animal feeds across 
the mpo ri — which have 
in force in toe UK, Inciden- 
tally, rirtra 1388 - “should be 
sufficient". 

Meanwhile thp hggftH minis- 
ter’s stance is damaging sales 
of domestically-reared beef in 
Germany. Some consumers, 
apparently, have been put off 
eating any beef whatever its 
origin, much to the disgust of 
German beef farmers and, one 
suspects, their agriculture min- 
ister. The fact that beef exports 
from Britain to Germany were 
worth a mere £lm last year 
puts the matter into perspec- 
tive. 

Meanwhile Germany has an 
animal health problem of its 
own that is threatening to get 
out of hand. Since last autumn 
many herds of German pigs 
have succumbed to classfoal 


swine fever — a highly conta- 
gions disease rated in the top 
category of seriousness by EU 
veterina rians 

EU policy is to try to eradi- 
cate the disease as quickly as 
possible wherever it breaks out 
<md to this end, affected herds 
are slaughtered, the carcasses 
destroyed to avoid spreading 
toe disease via toe meat and 
compensation payed to the 
formers concerned. 

During the last quarter of 
1998 and the first quarter of 
this year L08m German pigs 
were slaughtered under the 
scheme. This was equivalent to 
4 per cent of toe national herd, 
about 3J5 per cent of normal 
German sales Of pigs during 
the period just under i per 
cent of total EU pig sales. In 
Lower Saxony, where the 
majority of cases occured, 
same 12 per cent of the region’s 
pigs were slaughtered. In spite 
of the slaughterings, however, 
outbreaks of classical swine 
fever are still appearing across 
Germany. 

There are, perhaps, a num- 
ber of reasons, for this failure 
to control the disease. One 
may be that not all infected 
carcasses have been destroyed. 
German consumers, with 
rising park prices, demanded 
that the meat should not be 
wasted. In response the author- 
ities decided to render that 


believed to be safe for use in 
processing, a decision that may 

have been influenced by the 
fact that toe German allocation 
of EU funds for fighting such 
animal disease had run out 
And compromise may 
have allowed the problem to 
spread. In any event, Teutonic 
efficiency appears to have 
Fattart in this case. 

Classical swine favour has 
now spread from Germany into 
Belgium, whose densely popu- 
lated pig herd is at risk. There 
. too the EU slaughter and com- 
pensation policy is being 

im plemen ted. 

Needless to say, British pig 
farmers are becoming con- 
cerned that the disease will 
cross toe Channel and affect 
their herds. It would not be toe 
first time such a thing had 
happened - the last case of 
plage}™! swine fever in a Brit- 
ish herd was thought to have 
been caused by a continental 
tourist throwing the remains 
of his wwiami sandwich into a 
field in which pigs were graz- 
ing. 

Other diseases that have 
affected British pigs over toe 
years and cost British pig 
formers dear, have been traced 
back to continental sources. 
Aujeskys Disease, for instance, 
cost millions of pounds in lost 
production. A UK producer- 
ftmded and ultimately success- 


ful eradication scheme raised 
£27m to complete the task. 

There is no need to spell out 
what fanners' feelings would 
be should it once more be 
introduced from across the 
Channel. 

Swine Vesicular Disease and 
Blue Ear Disease have all 
reached Britain's shores via 
similar routes. And now the 
EU has relaxed border controls 
there is a real fear among all 
British livestock farmers - not 
Just those with pigs - that 
herds and flocks may be dad- 
mated and incomes destroyed 
by some disease or other cross- 
ing the water or coming 
through the Channel Tunnel. 
The risks are exacerbated by 
the virtually open borders 
between eastern Europe and 
toe EU. It is well-known that 
all sorts of nasty diseases origi- 
nate from behind what was the 
Iron Curtain. 

The UK minister of agricul- 
ture. Mrs Gillian Shephard, 
recently tightened inspection 
rules on imported livestock 
and the House of Commons 
Agriculture Select Committee 
is investigating health controls 
on imported animals. All of 
which is intended to reassure 
British farmers and consum- 
ers. But, it might take only a 
discarded sandwich from a 
German tourist to bring it all 
to nought 


PNG policy confusion sends mining shares tumbling 


By NBdd TaK in Sydney 


Shares in mining companies 
with interests in Papua New 
Guinea fen an the Austr alian 
stockmarket yesterday as con- 
fusion reigned over whether 
there could be a six to 12 
month moratorium on new 
mining projects there. 

At the weekend, Mr John 
Kaputin, PNG's mining and 
petroleum minister, said that g 
moratorium would be imposed 
after a derision on the AJ1.2bn 
(£590m) IJhir gold-mine project 
was taken. and that this would 
allow him to rethink the coun- 
try’s mining policies. Mr Kapu- 


tin gave no hint of the implica- 
tions of such a “rethink" - but 
one mining company specu- 
lated that it could result in 
rhang ps to the tax regime. 

However. late yesterday, Mr 
Masket Iangalio, toe finance 
minis ter and former mining 
minis ter, said it was unlikely 
that the government would 
endorse Mr Kaputin’s morato- 
rium jdea “I wish to state cate- 
gorically that the development 
of our resources. . . will con- 
tinue in an orderly manner 
without interruption," he said. 

Kaputto -Iangalio split bring s 
into the open, simmering diffe r- 
ences between the two men — 


which, in turn, have affected 
file IJhir project, a joint ven- 
ture involving Britain’s RTZ 
group and Niugini Mining , con- 
trolled by Canada’s Battle 
Mountain. For yvmths the nec- 
essary special mining lease for 
IJhir has not been forthcom- 
ing, while the PNG cabinet is 
understood to be divided over 
how to structure the mine’s 
development and what stakes 
to give at the outset to toe 
state-owned Malaysian Mining 
Corporation and to local land- 
owners. 

Among the companies 
affected by yester d ay’s stock- 
market sell-off were Dome 


COMMODITIES PRICES 


BASE METALS 


LONDON METAL EXCHANGE 

(Prtcaa from Amalgamated Metal Tracing) 

■ ALUMINIUM, 88.7 PURITY f$ per roma| 


Precious Metals continued 

■ GOLD COMEX ft 00 Thy go; Slimy or) 


GRAINS AND OIL SEEDS 

■ WHEAT LCE (B per tonne) 


SOFTS 

■ COCOA LOS (t/tonne) 


MEAT AND LIVESTOCK 

■ UVE CATTLE CME {40.00083*; cantata) 


Close 
Previous 
ttgMow 
AM Official 
Kerb dose 
Open bit 


Cash 3 rathe 

1334-34 1363-84 

13215-64 1354.5-60 

1339.5/1338 1373/1301 

13393-400 1369-70 

1388-9 

258.787 


Salt Oaf* Open 

prin ctawge Mgk Is ht W. 

Jen 380.4 -03 3803 377.7 1,983 952 

to 381.4 -03 

Aog 3823 -03 3833 380.4 74.757 17.467 

Dot 385.9 -OA 3803 383.4 5.409 104 

DM 383.1 -03 389.7 3898 24306 181 

Feb 3823 -03 392.4 39)3 5,825 94 

Total 141398 19,142 


Sett Day* Open 

ffifce rt—gi H0i lea fal 

110.15 -1.75 11130 11030 449 

9830 +020 9830 9730 489 

9835 +015 9830 9835 1384 

10085 +015 10030 10030 1327 

10235 -025 - 385 

103.70 - 10330 10335 299 


Sett Day's 

price dungs Mffit lea 


94 

to 

978 

-33 

1007 

876 183«3 

Jm 

63450 +0425 64.150 62400 13*457 

6434 

6 

SIP 

997 

■37 

1022 

9S5 17336 


51725 +0475 64.250 82400 28,185 

9410 

117 

Dec 

1019 

-38 

1039 

1017 25432 

Oct 

67450 +6575 B74S0 66450 14.208 

X466 

27 

ter 

1041 

-32 

1059 

1040 27400 

Dec 

66525 +0425 89.100 66400 9461 

1.416 

- 

MV 

1053 

-22 

1058 

1058 101426 

M 

0952S +0450 70450 88.100 6.160 

362 

12 

to 

1066 

-30 

- 

- 3421 

Mr 

70400 -0575 71460 70600 2JSS6 

118 

266 

To* 





Tetri 

75,128 29419 


Tccsl CaBy turnover 48329 
■ ALLUriNRJM ALLOT ffi par tonna) 

Close 1345-65 136000 

Previous 1380-70 1380-6 

HJgh/tow 136871300 

AM Official 1385-70 1385-70 

Kerb dose 1380-65 

Open bit 3374 


■ PLATINUM NYMEX (50 Troy ozj S/tray ozj 


■ WHEAT car fiPOObu min; oentsffiOtobusfwq m COCOA CSCE (10 teraiM; Wtoreiari 


Total dafly turnover 
■ LEAD (S per tome) 


Close 499.5-5003 

Previous 503-4 

Hgh/tow 503 

AM Official 503-33 

Kerb doss 

Open to. 35.383 

Total dafy turnover 5.771 
■ N1CKEMS perlonnd 


to 

3874 

-2.1 

39950 39550 

14,719 

1,178 

Oct 

399.1 

-11 

40050 39850 

&15S 

882 

Job 

401-2 

-2.1 

40150 40050 

1482 

- 

Total 

4013 

■2.1 

40450 40450 

1503 

21460 

42 

was 

■ PALLADIUM NYMEX (100 Tray oz.; S/troy az.) 

Jm 

13455 

-095 

13175 13455 

119 

38 

Sep 

13445 

-OSS 134.75 134.00 


251 

Dee 

I34J0 

-059 

- 

7«4 

. 

tor 

Total 

13*40 

-055 

- 

6 

4435 

287 


■ LIVE HOQ6 CME (jOnOOfce; emtaffiw) 


to 

331* 

♦1/0 

332/0 

325(0122 410 30405 

to 

1306 

-56 

1342 

1303 *1431 4,132 

8«0 

337/2 

+0/2 

338/2 

331/4 44455 9410 

Sep 

1334 

-50 

1371 

1332 20873 2479 

Dec 

348/6 

-0f4 

3S0/D 

343ft 64,7® 12.735 

Dec 

1370 

-52 

1399 

13® 9.428 1,120 

Mb 

352/2 

■0/2 

352/4 

347A3 7,40) 535 

Her 

1400 

56 

1429 

1400 8,777 19 

•tor 

342/2 

-02 

34445 

3400 290 5 

toy 

1419 

-56 

1430 

1428 2436 85 

to 

Totri 

3SB/0 

” 

32610 

32310 1505 90 

Ml 415 0500 

to 

Itatri 

1441 

■56 


- 24« 

7*427 7jm 


■ MAIZE CST <5300 bu infer; oantaffiflfc buahefl ■ COCOA JCCOMSOR'a/tonne) 


SILVER COMEX (100 Troy oz.; Gemartrey oz) 

n 5248 -4.4 5283 5210 1 

I 5253 -43 5333 3213 81,796 11156 

tg 529,1 -45 .... 

V 5308 -4.6 5373 5200 11952 1392 


Jd 25514 -84) ZE8/B 2B1/4541.450 98.670 

Sap 260/4 -Bffi 283/4 257/61 81,135 18345 

OK 2530 -SO 256/4 2500465.166153.790 

Star 259/4 -8/4 262/4 2S7M 51315 3370 

day 283/4 -8/4 264/4 282/0 7/325 220 

Jet 284/4 -883 267/6 2B3M 14/335 1,250 

Total 1474M275A8Q 

■ BARLEY LCE <E per toons) 


in cay ww w NA 

■ COFFEE ICE tt/tome) 


Ctaae 
Previous 
hagh/low 
AM Official 
Kerb dose 
Open VnL 


Total daly tunonr 7.389 
■ TM (S per Tonne) 


6170-80 6265-70 

8175-85 6365-70 

6306 6350/6260 

6205-6 8303-5 

6280-90 

56382 


Dec 

S3&2 

-45 54L0 5345 18JB1 1,425 

*to 

9740 

- 

0740 

8740 

172 

4 

Jen 

5395 

-44 - - 32 

Itav 

9140 

•026 

9640 

9640 

323 

20 

Tetri 


127475 21419 

Jm 

10025 

- 

- 

- 

30 

. 




Her 

10140 

-035 

10140 

0140 

12 

10 




toy 

10*40 

- 

- 

- 

4 

. 




DM 





641 

34 


2080 

-01 

2115 

2048 

12.192 

1,171 

2028 

-63 

20® 

2020 

16,163 

1,201 

2002 

-36 

2060 

19® 

6588 

426 

19® 

-59 

2044 

1971 

6,496 

114 

19® 

-10 

19® 

19® 

2587 

4 

183* 

•ei 

1935 

1934 

99 

S 


Jm 47325 +4L675 47.200 46.450 438 8.180 

to 4730 +0400 4730 4630 1031 1219 

AOS 48.125 +0475 46-150 4830 7,488 1481 

M <3.450 +0750 41700 4230 4,004 1478 

DM 44475 +0825 44350 41475 2374 271 

M 44.100 +0450 44.100 41800 715 19 

TOM 3*753 11298 

■ PORK BBJJE8 CME (40,000t»a; cmte/lbs) 

to 42375 +0150 42800 41.250 4,741 1,648 

Ad 41300 +0800 <1700 40500 1235 671 

M 48400 +0400 48300 47.425 430 165 

■sr 47300 *0075 47800 <7.100 38 4 

**» 50350 -1800 80350 48480 34 1 

to 50500 12 2 


ENERGY 

d CRUDE on. NYMEX (41000 US gate. 3/barreQ 


M30YABEANS <2T ftOOOn eta; caoriffiBb bush# 


Close 
PwMoue 
HgMow 
AM Official 
Kerb close 
Open to 


5475-85 5550-60 

5540-5 5615-20 

5485 5620/5550 

5495-6 5575-80 

5560-70 

16.190 


Total trower 3380 
d ZINC. gjactal high gride (S per tonne) 


Close 9498-50.5 

Previous 865-6 

Hfcfvtow 949.5 

AM Official 949.5-50.0 

Kerb does 

Open to 102,949 

Total doAy turnover 22,491 

d COPPER, grade A (0 pa- tame] 
Close 2234-35 

Previous 2234-5 

Ktgh/low 

AM Official 2237-8 

Kmb dose 

Open to 210.505 

Total dafly- turnover 58.652 

■ LME AM Official C/S rata: 18071 
LME CkMtog C/S ret k 1308S 


Latest Off* 
dice dnogt Mgh 

to 1787 -0.15 1620 

Aog 1737 -0.14 17.79 

Sep 17.40 -0.13 1780 

Oct 1730 -0.12 1787 

Mm 1727 -088 17A1 

Ok 1725 -088 1739 

Total 


1781 W4B 49380 
1783 07379 32/15 
1737 38852 13888 
1730 24257 5.128 
1727 16208 1892 
1722 283<0 3223 
419380114444 


to 099/2 -2M5 0734) 058/4260,790 96200 

Aug 658/5 -25/4 673/0 656/3 85JB5 26810 

Sip 042/0 -27/5 657/9 841/4 46,075 3840 

an* 031/9 -28/0 646/4 62919299895152865 

Jm 63514 -28/9 851/0 635/0 25.195 1815 

642/D -26/0 654/4 6400 10850 580 

Tom 748378255850 

■ SOYASEAWCHL CUT {SOJQOIbs: cental) 


Total 44,104 2SE5 

d COFPEE *C* CSCE (37 .5001)3; canta/B») 

to 11925 -530 12380 11730 20844 4800 

*M 11T-E0 -4J0 12180 11680 16366 7S31 

Dm 11585 -170 116/U 11480 12217 1238 

dsr 11325 -145 11620 11380 7,130 555 

day 112.50 -425 11180 11280 763 44 

to 11280 -489 11480 11480 96 13 

Tetri ' STja 7*4B 

■ COITg PCOUUS oantafroma 


LONDON TRADED OPTIONS 

Sttftri price 6 tonne — Gate Puts — 

■ ALUMMUM 

(99.794) LME Aug Nov Aug Nov 

1325 62 99 23 34 

1375 35 70 48 56 

1428 18 48 77 31 


2838 -039 2784 2B88 25359 9854 

2688 -099 2782 2687 14393 2840 

26.72 -099 2735 26.71 10810 671 


Jm 3 

Carp. 

15 BST ww 
■ No7 PR 


Price Plan. Hay 

11150 11687 

11683 11583 

I RAW SUQAR LCE (oritt/te) 


(Grade A) LME 

2200 

2250 

pflnfl 

d COFREE LCE 

2100 

2150 _ — 

2200 _____ 


2242- 43 

2243- 4 
2260/2230 
22453-6.0 

2248-48 


■ cm 

JOE on. 

IPEJS/I 


Latest 

Price 

Oaf* 

lAwflV 

am 

1128 

•an 

am 

1117 

044 

top 

1100 

•4148 

Oct 

1104 

-447 

Hav 

1101 

-0.13 

Dec 

Tetri 

1114 

+042 


M 145303 32811 

HEATING OB. IflWX (42800 US gsfe; c/US grid) 


Lariat Day’s 
pro cunyu 


Oct 


-140 

2845 

2125 7488 

• 159 

to 

1220 

-113 1220 

1218 

2412 

50 

Dec 

25J8 

-197 

2130 

2175 2D 437 

3401 

Oct 

1230 

•110 

- 

I486 

- 

Jm 

2540 

-140 

2130 

21® 2408 

88 

Jm 

1142 

- - 

- 

- 

- 

TOtri 




81133 17432 

Mar 

11.91 

■0.12 1143 

1140 

60 

5 

■ SOYABEAN MEWL CST ftOO tons; S/ton) 


Totri 




17* 

a 








■ WHITE 8UQAR LCEffi/torma) 



tog 

1824 

-64 

1912 

1904 11758 

3*865 

tog 

34640 

-140 34740 

34540 12984 

311 

Sep 

m.i 

-15 

1M4 

1884 11857 

820 

00 

321 20 

-1.10 32340 32150 

5,787 

57 

Oct 

1094 

-74 

1924 

1874 5J822 

501 

Dee 

31740 

■180 31740 

31640 

70* 

9 

Dec 

1®7 

-17 

1920 

1619 17,469 


Mm 

31840 

-040 31140 

31540 

2350 

10 

Jm 

1884 

-54 

1B14 

181* 1.735 

54 

tor 

31150 

-140 

- 

205 

- 

Totri 




84479 18483 

Aag 

31030 

-090 

- 

235 

- 

■ POTATOES ICE £/tonnet 



Tetri 




25398 

387 


82 

99 

23 

34 

35 

70 

48 

55 

18 

48 

77 

81 

Aug 

Nov 

Aug 

Nov 

94 

-112 

46 

68 

87 

89 

87 

111 

48 

69 

96 

140 

to 

top 

to 

top 

58 

167 

95 

237 

39 

150 

1» 

270 

26 

134 

185 

304 

to 

top 

to 

Sap 

33 

77 

6 

30 

17 

S3 

14 

41 

7 

50 

29 

63 

to 

Aug 

to 

Aug 

75 

_ 

5 

15 

40 

- 

12 

40 

10 

- 

26 

60 


LONDON SPOT MARKETS 

■ CRUDE OE. FOB (per bairi/Juj) +or 


■ 8UOAH 11’ CSCE (112800Ha; oanta/fca) 


SDOtlJOB 3narielJO07 6aHhEl805S 9mfis;18045 
■ HjOH GRADE COPPER (COMBO 



Ctow 

ter* 

Cbtoge 

U* 

ap« 
Im fat 

Vri 

Jm 

101.70 

-1.40 

10290 

10T.7D 1,128 

X 

to 

10145 

■1.15 

10290 

101 AO 31013 

91 

tog 

10148 

■1.15 

10260 

101.70 500 

5 

*M 

101 45 

-145 10270 10140 10,121 

TG 

Od 

10140 

-1.00 


- 226 

. 

Nov 

Trial 

10135 

-195 

" 

202 

67,746 

at 


to 

4740 

-042 

4145 

47 AS 0480 

13494 

Nor 

90.0 

. 

- 

. 

- 

- 

tog 

48L30 

-147 

4940 

4115 17477 

1140 

Mar 

1054 

“ 

“ 

- 

- 

- 

tog 

412 

■147 

494Q 

4&ZS 11.768 

2089 


1325 

+34 

1325 

1294 

0® 

32 

Oct 

5115 

-0.47 

saw 

5115 7433 

181 

toy 

1410 

- 

“ 

- 

- 

• 

Mm 

5145 

-047 

51.70 

5146 1872 

MS 

Joe 

107.5 

“ 

- 

• 

■ 

■ 

Dec 

Total 

5145 

4L42 

52® 

5145 14.170 14® 
1244*3 2*488 

total 986 

■ FRBGHT (BlffBQ LCE (SIQ/IndsX poinQ 

33 

« OASOtLPEffitaMI 




Joe 

1285 

-8 

1290 

12® 

714 

79 


1240 

4.09 

1209 

1142 42489 

6476 

1245 

■446 

1208 

1145 57,148 3435 

11.73 

•an 

1140 

nJO 24431 

733 

11.73 

-aoB 

11.77 

,1147 3470 

51 

11.70 

-an 

11.73 

1145 1483 

- 

1141 

■448 

- 

- 807 

12 


DdM SI 531-584* +0.100 

Brem Band Waari) Si 8.1 2-6.1 5 *0.065 

Brent Blend (JuO . $1684-637 +0.065 

W.T1 (1pm eat) S1786880W -0.005 

■ OIL ntODUCTS NWEprompt batvary OF (tonne) 


Oct 1181 4)88 - - 807 12 

Trial 12386711867 

■ OOTTOM NYC6 ffiOJIOOffie; oantrifcri 


Salt Otf* 


PRECIOUS METALS 

d LONDON BULLION MARKET 
(Prices suppled by N M RothscWd) 


0*W(Trey«4 $ price Eeqdv. 

Close 376.60-379.00 

Opening 38 1.40-30 1.60 

Morning fh 38025 252.49 

Afternoon fix 37040 251895 

Day's Hgh 38130-38180 

Day’s Low 37880-376.70 

Previous dose 380.76-381^5 

Loco Lrirt Mean GoM Lendkig ftotes (V5 USSJ 

1 monili 4 oi 6 months .4,41 

2 months 4.07 12 months 4.06 

3 monmj 

SDvar ft pH roy os. US da equhr. 

Spot 349.75 52785 

3 months & 4.05 533.00 

6 months 35680 539.20 

1 year 37020 555.90 

Gold Cdne S price E equfv. 

KrueerTand 386-389 250-269 

Maple Leaf 38980-39185 


a 14980 4U0 15180 14980 22,789 9207 

t 15080 -OJS 15235 15080 24.US 4,721 

m 15225 -025 154.00 152.00 7828 1.100 

p 15425 -625 155.75 15400 6743 348 

S 15780 -025 15725 166.75 6806 410 

if 15175 -023 15980 158J3 4^5 40 

b> 94832 16850 

NATURAL QA8 WHCt (1080° nWlPBL; SftlWfldJ 

Latest Day's Open 

price ohsege Hgk In hi W 

I 1861 -0.004 1885 I860 Z48S6 7825 

V 2855 -0803 2075 2853 13880 2881 

p 2-108 • 2120 1108 11862 1884 

1 . 2160 +0002 2170 2163 8873 590 

* 2240 -0801 23Q 2240 1081? 300 

C 2345 - 2355 2345 15,150 1^44 

126,760 1V« 


IIS -23 1205 1195 930 SS 

1205 -29 1225 1210 387 27 

1782 -16 1295 1263 216 16 

1310 -22 1330 1310 83 8 

1340 -5 - - 60 

2811 187 


81/43 4L49 6183 81.15 11252 1217 

7786 -063 7885 7738 1196 BOB 

7584 -082 7630 7170 24,68 2888 

76.77 4L71 7787 7178 1194 299 

7730 -0l7O 7736 7730 1.741 158 

7780 -083 7110 77.75 404 78 


Premium QeeoBne 
Gas 08 
Heavy Fuel 08 
Naphtha 
Jet Fto 

Aariaun Apa Earie 
■ OTHER 


SI 87-188 
$148-149 -1 

*84-87 

*167-158 -05 

$160-162 


8FI 1382 1487 


■ ORANGE JUICE NYGS p 5,000fts; 


fftny 02 . US ds equhr. 
30.75 52735 

954. D5 533.00 

35630 53930 

37030 555.00 

5 price E equfv. 

386-389 250-259 

389.60-391.95 


■ UNLEADED GASOLINE 

HTMEX (4ZJOO US QMS; C/U5 pfc) 

DM Day's Open 

prise drengo Mgfe Lner tat W 

to 52.47 -072 5145 32.40 51.421 13,600 

AQ9 52.15 -Offi 5105 3115 Z2.1S5 1988 

Sap 51.40 -05a 5120 51 AO 10,712 1317 

OS 49.75 -0.43 5030 4930 4301 304 

BOV 4180 4L35 - 3376 78 

oae 52.45 -0.80 5130 6230 2.420 137 

Total 90375 IM09 


The Tea Sitter's Association reports strung 
dsmand. Bright East Africans ware ottan dearer 
wide martens and ptaffiar Central AMcana 
remrinad fUfy Arm. Ceylons mat good cempeti- 
ticn but prices were barely steady. Bright ZJm- 
bdnns add area end gained 5 10 10 pence, 
dhere were unchanged. OjfCm mat a dedtve 
enqury m feregdarty easier rates. Quotabons 
beat a valet*, ZSOp/hB nom, good IBOpfeVg. 
good nudum IS^iihg. medum IISprtB, low 
medium 85 b/ 1®. The nigheet price realised this 
week was 231 p tor a Rwanda pf.l 


to 

96® 

-3.75 

8123 

9540 

11428 

977 

top 

96.15 

-3.70 

10140 

96.10 

1484 

700 

Nee 

10126 

•3.15 

10340 

10040 

1(498 

200 

Jen 

101.75 

-3.15 

10440 10125 

2406 

ia 

MV 

10260 

-2® 10540 

10250 

l.itt 

1® 

Mw 

10440 

-a® 

10440 

10450 

25 

- 

Tetri 





224B 2223 


VOLUME DATA 

• Open In t a raet and Vokm data shown tor 
contr ac ts traded an COMEX NYMEX. CST. 
NYCE, CME, CSCE and PE Orude 08 are one 
day fat a rrear s . 


INDICES 

■ warrens (Base: laggi^nw 

Jun 8 Jut 3 month ago year ago 
1973£ 1973^ 1887.1 16518 

■ CBS fturee IBaea: 4affitol00) 


Sold (per tray azJA 
SUver 4»r tray az)» 
Ptafeiun (per tray xa£ 
Pattadum (per buy aej 
Cupper (US pradj 
Lead (US pradj 
Tin (Kuala Lumpur) 

Tin (New York) 

Zinc (US Prime W.) 
CaUe ffive weigMft 
Sheep (five a tafc hO t * 
Pigs She wright) 

Ldn. day sugar (raw) 
Lon. day sugar (Wtej 
Tate 8 Ly4e export 
Barley pig. feed) 

Mate (US N03 YeBow) 
Wheat (US Daft North) 
Rubber ttojf 
Rubber (Augjy 
RifttetKLRSSNcrt to) 
Coconut 08 (Ftrijg 
Pafen OB ptoayj§ 
Oopre(Plifl)§ 

Soyabeans (US) 

Cotton Outtaok A Index 
Wo cCops (B4e Super) 


tel 3 tetE month ego year ago 
232.05 234^5 22161 206.82 


New Sovereign 


E par tome iaSM oewmbe Arid, p pancaAc. c cwoariL 
r OiggM«. m iwa vatai oanta/fec. t Ori/Dec z JurikA y 
jm. « to. V Undm ftwori. S CF Raaerdam. f Bten 
nririMriae. 4 Snep gjve pteeaL - Cnenpa on 
waak povriiMri priaea. 


Resources, which lost seven 
cents at 45 cents. Highlands 
Gold, which shed four cents to 
A$1.40, and Niugini Mining, 
down 20 cents to AS5JO. 

Few mining companies or 
analysts wanted to talk pub- 
licly about the latest turn of 
events in this resource-rich but 
notoriously unpredictable 
country. Privately, however, 
they noted that Mr Kaputin 
made his remarks at an 
extremely sensitive time in 
terms of PNG’s domestic poli- 
tics. A “no confidence" motion 


was tabled at the end of last 
week against Mr Paias Wingti, 
the prime minister, based on 
allegations of bribery, corrup- 
tion and wife-beating. 

The uncertainty over the 
moratorium is the latest in a 
series of blows to international 
confidence in PNG. Other 
upheavals have included the 
guerrilla war on Bougainville 
island; restructuring of inter- 
ests in the Porgera gold mine; 
and a A$4bn environmental 
law suit filed against BHP, 
operator of the Ok Tedl mine. 


CROSSWORD 

No.8,473 Set by GRIFFIN 



ACROSS 

1 A drop of water? <8) 

5 Primate blessing bachelor 
first «j) 

9 Not qualified to use lab is 
thrown out (8) 

10 Visual effect cf space explo- 
sion last night (6) 

12 Returning, say nothing to 
band, delaying departure (9) 

13 One getting up a pipe? (5) 

14 Report head girl for following 
outlaw (4) 

16 Shout back whoa trapped in 
gas vessels (7) 

19 Variety turn Is taking on 
engagemeuts (7) 

21 Poor chaps accepting first aid 

(?) 

24 Second sea bird is back on 
board (5) 

25 Top seaman in line replaced 
as incompetent (9) 

27 Tooth moved up disc (S) 

28 Separate jack on vehicle back 
In street (8) 

29 Some citizens ignore this flag 
(6) 

30 Be on cover of the Observer? 
(8) 


DOWN 

1 Truly the soldiers’ friend (6) 

2 Anne is cracking nuts (6) 

3 Cornish banker sees half is 
wrong (5) 

4 Allowing Latvian in before 
midnight (7) 


6 Famous city turns up in one 
country and another (9) 

7 Doctors see Rover boss ® 

8 One assumes nothing when 
campin g (8) 

11 Eager to gat silver turn up (4) 

15 A certain home, grand and 
rich (9) 

17 Making people late for com- 
munion race round (3) 

18 They don’t believe this seat 
needs adjusting (a) 

20 fintemipting) "sorry I spoke!* 
(4) 

21 Ghastly srhnlar about to tafrft 
taxi (7) 

22 A table on a boat (a) 

23 Recovered punt the Parisian 
lost later <6> 

26 Taking it back pop round 
courtyard (5) 


£ S f^ s P 112 ® P^e on Saturday June 18. 
Solution to yesterday's prize puzzle on Monday June 20. 


°f brokin S and jobbing the Pelikan's fond. 

See haw suieetly }it? puts uour i vord onto bond. 


Shiikan 0 


i >‘ v0 


.1 ■ t 


fiegi ° ni1 

jet 

! lifts B Ac 


5 


JOTTER PAD 







27 


^ r .' 
^ r. S8~.-:±. 


m 


h-i'v 

‘•i-.f-rv— ft* 1 . 



-FlNA2gC3EAJL TIMES TOESDAY JUNE 7 1994 


LONDON STOCK EXCHANGE 


MARKET REPORT 


FT-SE-A All-Share indox 



reflects market uncertainties 


Equity Shares Traded 

Turnover by vofcxne (m&otij. ExdUSttg; 
lritm-markei bustaoaoand overseas tasnavar 
1,000 


'"“‘‘‘I.shJS. 
‘ u 

'•‘"TV , 'Or-: 

I 1 *'-i ... n 

..1 

v.-,, N- 

»r i 

,>!?• 

1 ft - 1. r-v- 

•- 

.< •• " Hif. • 

-v, v 

•t 

*!;, .V 

" ■ 

>* t -V ^ 

. (♦•>• • ' 

; '-r: sir 

' l ' l 5- 

' Wris 

■i. i ..j,,, 

" a» 

V • f'a ,«* ‘ 

; ; 111,11 

: nrtt : 


111 ? 

■ ‘•frfcnjft 

• u;' 

• ' • *'!.;» .-. v ^ 

*’ ' 

• " l '* cr ' 


ByTeny Byiand, 

UK Stock Mttfeat&fltor 

A nervous and thinl y traded isssfon 
■;in^ eqidties yesterday saw sbare 
prices dose firmly behind early 


- and to-’ DS bonda. The prospect of 
the etatiflos this week to the Euro- 
.pean Pariiairagrt provided an extra 
note o£ uncertainty In maritefo still 
ccsKfflmed over inflation prospects 
en both sides of. the Atlantic. : 

At nddsession the market was 
ahead by more. than 18 points on 
the Footsie scale bat equities later 

- lost’ heart- when UK government 
baods.gave back an initial advance. 
A-rdosW- ralty; which left the 
FT^S:1(». Index at .3,009.4, op 1L6 
on . the day, owed much to a slow 
improvement in Federal bonds and 
. to -ilia reeding of pitas 13 points on 


the Dew Average' at the London 
dose. The FT-SE Mid 230 Index 
ended HI ahead at 3,571.4. 

. But e more revealing image of the 
trading session was given by the 
Seaq volume of only 4364m shares, 
nearly 40 per cent down from Fri- 
day’s figure and one of the lowest 
genuine daily totals for the year. 

- Shares opened nervously as inves- 
tors waited to see if US Federal 
-bonds would hold the gains scored 
' at the close of trading in New York 
on Friday. When European bonds, 
hidnfflng UK gilts, moved higher, 

. the - -London stock market 
responded, but with some caution 
Sentiment was encouraged by 
reports that a New York newspaper 
had. quoted reassuring comments 
from several Federal Reserve gover- 
nors on last. week’s US unemploy- 
ment data. .. 


Account Poilkig Pates 

TtatMw 

Ltoy IS 

Jui 6 

Jun 3Q 

OpGon Dacia adow: 
Jun Z 

Jun 18 

Jun 30 

IntBatamw 

Jui S 

Jun 17 

Jd 1 

Account Day: 

JUi 16 

JUI 27 

JU 11 

•Haw tta^ deaBnot may tale place (ram twe 


There was little market response 

to the arninunrgmgnr. of a Sharp fell 
in new UK consumer credit in 
April, a move which amid be seen 
as favourable far inflation but dis- 
couraging for economic recovery 
prospects. 

London continued to edge for- 
ward until just before the Hwm for 
New York to open, when initial 
uncertainty in Federal bonds was 
quickly reflected across European 


fixed interest markets. A later rally 
in Federal securities came late in 
the London trading day. 

With- both the economic calendar 
and the company reporting list 
somewhat light fids week, individ- 
oal features were thin on the 
ground. Unilever shares fell on 
repmts of an attack on its latest 
detergent product by a rival manu- 
facturer. 

The general caution ahead of this 
week's European elections lay par- 
ticularly heavy across the London 
stock market because of fears that 
Ur John Major’s ruling Conserva- 
tive government may come under 
farther pressure In Westminster 
and in the public opinion polls. 

There was farther demand yester- 
day for the utility shares, which 
have attracted investors looking for 
stocks which often combine good 


current yields and the hope of fur- 
ther dividend rises. The market’s 
dividend optimism was encouraged 
yesterday by a sharply higher pay- 
out from BAA, which owns and 
manages Britain’s major airports, 
and reported buoyant air passenger 
traffic. Dividend increases have pro- 
vided support for the market, 
against the background of other 
uncertainties. 

There were also sharp rises 
among the b anks and finan cial 
stocks but trading volumes across 
the market indicated that genuine 
investment interest was on hold for 
the time being. Fund managers, 
having seen the Footsie succeed in 
recovering’ the 3.000 mar k, appeared 
to be waiting for convincing evi- 
dence that this level can be held 
before putting further funds into 
the London market 



1,475 


Afr Ifetf 

ScafCC FT Grapdfto 1994 

■ Key Indicators 

Indices and ratios 

FT-SE 100 3009.4 

FT-SE MU 250 3571.4 

FT-SE- A 350 1522.5 

FT-SE-A AB-Share 1515.38 
FT-SE-A All-Share yield 3.88 

Best performing sectors 

1 Gas Dtetrftjutkjn 

2 Insurance 


3 Life Assurance 

4 Engineering. Vehicles 

5 Banks — 



o r m ” mtiMi i nui sy 

mm.jm 1 


1924 


+11.6 

FT Ordinary index 

2387.6 

+7.7 

+14.1 

rr-S£-A Non Frts p/e 

16.31 

{10-26} 

+5-9 

FT-SE lOOFut Jun 

2997.0 

+4.0 

*5.40 

ID yr Qflt yield 

8.50 

(8.49) 


Long gfit/equtty yld ratio: 

2J21 

(221) 


Worst performing sectors 


.... +2.9 

1 Spirits, Wines & Cider 




.... +1.9 
+1.5 

2 Breweries ................ 


. .-1.0 

*1^ 



-0^ 

... +1^ 

5 Household Goods 


-0.6 


jet talk 
lifts BAe 

Confirmation from British 
Aerospace that it Is in talks 
v»ith Deutsche Aerospace with 
avrView'IO - taking a minority 
. stake in Dutch regional jet 

- manufacturer Fokker saw BAe 
shares jump 16 to 459p, a rise 
consolidated by -late-breaking 
news of a 3230m contract with 
iColdmbja .to acquire eight 
BJ100 aircraft. . 

- The talks were greeted 'with: 


enthusiasm as the first stage 
towards cutting competition in 
the regional jet industry and 
reducing the need for research 
and development -spending. 
BAe. which made provisions of 
£Lbn on regional jets in 1392 
and a further canm on turbo- 
props In 1993, has suffered 
from the overcapacity in the 
Industry and tears that Calling 
residual values on aircraft will 
hit its leasing book, 

- “Bringing the two together 
and producing a limited range 
of aircraft means a greater 

nTifmrw of making money,” raHH 

Mr Charles Donald at Panmure 
Gordon. “As a first step in 
industry restr uc t urin g, it is a 
sound move.” . 


Unilever slides 

The continuing controversy 
over Unilever's new washing 
powder undermined the 

ghawgft, which finished a tortll- 
ous session 22 down at 975p 
with turnover an above aver- 
age 1.6m. Analysts estimated 
the company's investment in 
Tersil Power" at £300m, with 
prospective annual UK sales 
weighing in at around the 
same level 

The share price fall came 
after Unilever withdrew its liti- 
gation threat against arch-rival 
Proctor & Gamble, following 
allegations by the US group 
that the new detergent ruined 
c lothes. They Hm* their 


EQUITY FUTURES AND OPTIONS TRADING 


Equity derivatives held a fairly 
. steady course, managing to 
-.preserve gains made in the .. 
prwfous.Gessfoni Christine 


-• Activity was modest, with 
just under a third of. the 13,111 
volume in the June contract 
on the FT-SE 100 attributed 
to a roll over of positions. 


sc-iy: ■ 


Open Sett price Change 



a*;?.* • r-,7. 28te.O'- 299730 - - 44-0 

s*».l a»io 3000.5 +30 

■fit ? 80190 301 SO 4*0 


HW» 

30200 

3028.0 

30180 


Low 

29900 

30030 

30180 


££0 

Eat ml Open bit 
15698 48389 

5383 12291 

t 252 


i 


■ I 

■ I 

■ I 

Ji 

■ I 

■ I 


» PT-8gieo»0 WDEX FUTURES (UFFQ CIO perflK Mm point 

i.-JgqfA -5 ? ■ ‘ ®TOO +60 0 3612 

•S&-? ? -36840 '440 -0 1295 

■ awseitiP^amexHmjWBtcacioeiopertsiwiMcpdrt 

’ '■ 35700- . . . - . - 771 

_*l xpwAMMR figwM mm lor pariow a*, t Baa mane ahown. 

- ■ rteEToosmexopnoM HFTOraooai eioper mwx point 

•— 2000 2060 3000 3050 3100 3150 3200 

: .''Lfr-.JP: c PCPCP..C.PCPCPCP 

te ' TCP2 10 n 20h « 38>{ 18b 70h 8* 113% ft 1S8«i 1 20ft 

jtf' ftftafc 134 32 90 4ft 7t Oft 4ft 87 2ft 130 1ft 180 8 214 

An ' ttl 5ft 120 7ft 9ft 02 7ft 118 5ft 145 35 18ft M 122 

IS0- ' nfteftf4ft8%11210ft8ft13ft 78 18ft 53 10ft 3ft 235 

rmef ffrsjT . tpMBft 4 ?- '-nh 257 
oiarssraMiawr- - 

.. a.suwbarrrijEn'-e!&ioo1»<p0^o» , iice*(ii> r Fqcio perftjD indea pow 

2825 2875- 2035 2975 3025 3075 3125 3175 

Jm 17ft 4 12ft ft Bft 12 29 25 25 9ft M Bft 5 12ft 2 178*a 
JU nftlftnft-25 ra 3ft 84>2 Eft Sft -in 38 10ft 23 14ft 13 184 
tag 215 34 144 62 Bft tW 4ft 162% 

Sep 22ft 4ft 157 7ft lOl^llft 59 174 

Decf 262 74 - - .nftioft ,13ft 148 . Oft 10ft 

tata 32» Aw U»* IMaAtag ME Wha- fwotama Sam ini tm* on Mfcrowt ptten 

t Lseo floed ■«*» mMl 

ISIYLE FT-3E 80^250 XPEX OFTIOM (UMUQ £10 perfug index point 


3860 


3700 


-r. > ; 3900 . 3550 3000 

Me: _OI 10 5ft 32 3ft ■ -57. 

Ota Mtanol pfaet nd wtant in Wm sruqm. 

’V- • • -I. . 


InOiCSrS 


3750 . ; 3800 




Some 4,000 were rolled into 
the September contract, 
making a signffiewit amount 
of the day’s trade - 
directionless. 

With June near to its expiry, 
and fair value at zero, the 
contract traded at a discount 
to cash for large periods of 
the session. But it did muster 
a small premium on a couple 
of occasions and hit a day's 
high of 3,020 just after Wall 
Street opened. Hs low had 
been struck very early in the 
session when it slipped 3 
points from an opening 2,993. 

Some negative arbitrage has 
been observed lately, with the 
June contract having fallen 
so low that buyers have 
moved Into the future and 
gone short on stocks. 

Trader&were Jxtsitarrt jibout 
cafllng the moodln stock index 
futures, biaming the absence 
of any real pointers in the 
market June dosed 4 points 
up on the day at 2,997. 

Low activity in traded 
options made for a modest 
22^79 lots, with the FT-SE 
100 option recording only 
8,660 and the Biro FT-SE 
4,368. The most active stock 
option was British Gas at 
2,159 contracts. 


‘he UK 


Dwta 

JunS rf*p»% Jun 3 Jwi Z 


Jui 1 


Yaw 

q? 


Hv. Earn. 

y Md% yMrf% 


RE 

ratio 


Xd a* ToW 
yld Return 


FT-Sfi iob -'«• -3009.4 

.rr.se tod 280 - 3571.4 

FT-setod 280 ax (nv-Ttmte ' ‘: r 36770 

FT-6&A 360 •- 1522A 

FT-36 SnaSCap ’= -1817028 J 

FT^aSnnKapin b* Trnmts . . 184833 

FT-*£-A'AU--SMAR£ ' 1516.38 

■ FT-SB Actuaries AD-Shar» 


404 29S7S 29608 2930 2844J 

40.4 35573 35503 3537.7 31 848 

404 35622 3562J 3544.0 32002 

404 151 OB 15009 1489.1 14202 

-Ol 187130 187Z84 1872.16 188848 
-Ol 1860.15 185035 186130 154088 
404 1509J8 150339 1484.63 1406.70 


• A*. 


Off* 

Jun 8 3- Jn 2 


Jvi 1 


Year 

»9° 


4.10 888 

3.48 5.71 

380 8.18 

385 6.61 

28B 4» 

3.15 486 

088 6.43 

DK Earn 
yMdK yMdjfc 


1786 4883 
2129 44.03 
1980 44.80 
iai4 2383 
29.19 2087 
2880 2188 
1885 22.77 


112381 

131380 

131186 

1162.77 

143781 

142389 

117785 


P/E Xd adj. Total 
ratio ytd Return 


10 MKCRAL EXTRACTTONtm - 259422 

12/BOKHW USuMrtHfq - • •• 373184 

»:CMUnta9tttK2^ 2S4&10 

Ifl Qtl ExEtoatttoft 8 Prodfi 1) 187888 


269626 260782 280028 219720 380 
404 371822 375889 377484 299040 385 
^42 2562.79 255728 264&2S 212820 381 

408 18698S 1902.00 190008 193180 388 


482 27.78 8788 1031.17 
5u42 23.18 4389 101B81 

4.65 2073 4043 103403 
182 eoQQt 1582 1076.74 


20 HtoN VttNUFACarURraBPS^ 198724 

21 Sutong SGomhuclionpil- 120387 

VZ SUMng Mass & Morehs(31} .- 191480 

» dwtdQtop)) .. . . . 243129 

34 awed hdMUabOQ 200784 

a eeewnhraBBa.Egi4>p4] 2oios4 

» ^EnfitamrtnatrT] 184099 

27 EngktMrtiig, VWiUes(1S) - 22S7.B1 

■ » BitthB, «w*r * PchoK7) 2742.78 

aiteMMSAonitfaii . 172186 


+03 188089 197387 195688 1785.70 

401 120228120041 1205.96107090 
40.9 189886 160589 1871.75 170780 
-06 2445.13 2447.06 242010 2183.80 
-02 201086 198088 1962.73 1B5680 
406 199006 197385 198099 183090 

402 182076 182381 181487 153280 
+18 222982 223384 224122 176090 
+02 273029 275681 272088 233180 
-Ol 172055 172389 171987 180580 


3.78 

<47 

2727 

2929 

100042 

an 

<05 

3121 

15.62 

93328 

174 

3J6 


3023 

89245 

&81 

US 

3241 

4232 

106727 

4M 

AjBT 

Z7.13 

38.48 

10103 

3jB6 

844 

18.96 

13.06 

98230 

2J7 

4.00 

30.78 2102 

1041.13 

<64 

229 

6061 

3288 

106007 

3.04 

627 

22.51 

37.83 

107054 

<08 

5J» 

2213 

29.48 

987.74 


30 OONSUim QOOOSWS) 281002 

31 B r MUrtw tm -: - - v • 217043 

32 Sdrita, Mh» Bl CWeraflO} • 285787 

.218007 

34 HoWflrt*} OooUKKi . . 245125 

» HtaWi Cw»0» 188686 

87 Pnmn«aUloale(11} • 209051 

38 TBbepooffl 339083 


-04 262387 261320 2674.14 268530 4.48 784 1484 5088 

-1.1 220072104.47 2155.00 1940.70 483. 7.75 1583 38.18 
-1.1 2891.002878.10 285004 274280 387 888 1780 58.78 
-08 2199.24 22007? 2T97J05 2212.60 487 8.25 14.14 42.75 

-O8 248&95 2472.10 248S84 2292.80 058 7.50 10.03 4074 

♦Ol 188481 1676.76 1865.16 1705.40 031 6.73 2025 1980 

' +02 2690&4 288087 2841.70 296320 4.74 8.13 14.18 4720 

♦0.6 3S8Q56 3515.03 337241 388650 587 049 1283 10035 


98881 

itom 

907.77 

87035 

987.95 

844.73 

79924 


40 

4T DWCptenPiT 

« Lrtu»£ Hotatapa} 

-434UAP9) - 

44 R«**«.Eoodfl7J • 
4S.RaMn, dmnri(44) - 
48 Stypm-SWcw W ) ; - 
48 Ttanspofinef - 
.51 -Other Smfota o fi aj g e e flfl 


1944.63 

282086 

210067 

297788 

158060 

.168484 

158041 

235038 

119083 


+08 193888 193189 190180 1791.70 012 0.00 2080 3005 94580 

♦02 3814.54 2816.66 27B884 2811.70 011 588 1983 3584 

+04 209488 208780 2051.11 178020 048 4.54 2589 19.42 

♦04 296689 296090 2917.60 233620 2.18 4.86 2059 3586 1027.13 

-4L4 157283 158087 153883 197080 4.05 9.80 1Z7B 2&18 92687 

+08 16S4.7S 165120 102181 148420 007 6.53 1091 2489 88073 

-04 159055 160287 1577.78 149180 283 5.74 2017 1075 959.47 

♦09 233054 290985 227588209520 386 487 2583 15.14 90782 

-HP 110222 1192.08 119089 123000 480 280 80807 581 100784 


bo imuneapcg 2197.40 

82 8a«rte*yOn 208184 

B4.Gap Dta«ft3MUonCa) ' ' 1794.74 

J . « 'Teta w m umfcj BorwW 196483 

to-WVWfm - ■ 171077 


♦1.0 217587 217085 2136.04 2085.90 
+04 207288 207226 205927 1738.10 
+2.9 174082 175480 173282 1907.70 
+T.1 194380 192684 1884.68 1947.70 
♦0,1 171726 1726.48 168065 193080 


487 

4.11 


4.18 

588 


8.72 

11.87 

X 

782 

15.12 


1480 2002 
1028 2487 
t 53.43 
1588 8 09 
7.72 19.72 


82021 

81723 




aw 1 




^69 N0»WWAtaaM.3«gg 

n tvw«otM8rara : 
7Wafl^u9r. .. . .. 

n umnoatm- 

.74 UhAtotooain 

-EQ ertnaratoiT ‘watorgea 


1835.75 +02 183182 1627.71 1807.75 1526.69 3.89 828 1981 83.10 


214045 

276729 

125003 

2288.19 

283888 

179685 

154529. 


+18 212&18 2182.04 2084.62 1982.70 420 825 14.11 44.73 84433 
♦12273421288980 2643812429.40 381 888 1387 5987 81987 
+12 123489 1229.77 118620 1329.10 5.13 11.48 9.75 2884 85081 

+18 2263^ 223889 218081 2523.10 5.41 782 1051 6888 872.48 

+122802.62 279781 278783 254680 380 1188 1028 44.45 84703 

+02 17B289 178068 1795.75 145070 3.77 8.69 17.B4 2587 84784 

-1.0 158018 154085 1547.87 13B780 309 404 3049 2300 87Q4a_ 


2747.98 +02274181 2734J54 2724.91 2297 411 3 33 jj| 6380 27.42 _ 91 7^1 
151528 +ttt 160888 150389 1484.63 1408.70 388 6.43 1685 22.77 117785 


•i; ' ‘ . 

; 'U. L— IB JO 1100 1200 1300 W» lOOO 1S.10 Wgh/dey befthr 

yuievn-^- z JmM aooM aoow 3004.4 son.i son.? 30153 »u mo 30101 x*g7 

PT-SE l«d 250 - JSSlfi -3M0.1 8S6S2 35672 35698 3569.8 35722 3573.3 K713 35738 3ffi33 

FWSEAaSO'< : '.j'^a0 153X0 1SJ0.8 1520.1 1522.9 18232 15348 15248 15210 16253 15150 

/taiifli jbO lam UBn 

380 Industry baskets 

optat 900 1000 1100 IM» tt« WB Ito 18.10 Ooee Pfwtaae Ownge 


113W 1133,7 ^ — - 22H IStl S 

. B »*» f ' ; . : 2M93 27to8 27803 27073 27973 28012 29003 2797.8 28013 

k, saedv leMe. Ua of oeredMnte ■* Tl* ftieneta Unee 

Uw Sorw^ wtitt e iW> « Ml taHMaeu pnxtese 


1138.7 

11303 

1134.1 

♦22 

26705 

28721 

£8603 

+55 

17104 

171 BJ 

17145 

+1.7 

2797.8 

28015 

27678 

+33^ 



claims were supported by inde- 
pendent tests artri backed by 
consumer bodies. 

Top of the range preliminary 
profits from BAA and news of 
a planned one-for-one share 
split triggered a strong perfor- 
mance by shares in the air- 
ports group. They , reached a 
session high of 957p before set- 
tling a net ll better at 949p 
following above average turn- 
over of 1 2 m. 

Citing Hv* potential benefits 
of a farther 75,000 square feet 
increase in retail space and a 
forecast 4 per cent rise in traf- 
fic volumes, Panmure Gordon 
upgraded its current year prof- 
its forecast to £370m. NatWest, 
which expects BAA to achieve 


TRADING VOLUME 


■ Major Stocks Yesterday 

WoL Cloaing Day*! 

OOOi gW_ ctamw 


ASDAOBoupt 

AUbayfWMt 


KM 


MO 


2800 
3200 
907 
2800 
547 488 

286 350 

2800 231 


54 

416 

50 

572 


Anoc. M. Pons 
BUT 
BATMLt 


aacf 


BT 


BTRf 


a.irJc o» Soadonctt 

ssr 

BUmOcWT 

BoaMr 

Boast 

BOMttrt 

Brit Mrnpaoat 

BdtMl Akwwf 

BrtMiQnt 

BMUiUmf 

BMOdlSBHlt 

Buid 

. amndi CMMif 
Burton 

Co»o& Wtart . 
Cntuy SeiHMppMf 
CftkxC^nujp 
Condont 
CMHnOomn«.t 
Coon Vtynfct 
Comm, urtont 
Codmon 
CourtnMst 

OdBBV 

□•La Runt 

Dtan 

Earam Boct 

EMMdndBtt 

Ehg CMnaCteyB 

EnuipitMOtT 

Banomnat Unas 

FM 

Hpam 

Fonrian&CoL IT. 
Forit 

GarcAcddanf 
Camml Omt 
ote«r 

Qlynand 

OninadsT 

OmndUM-t 


GKN 

Quimoost 

HSBC trap rfwt 

llanunaraon 

Han w if 

Hafflaom CMaMkt 


»» 


(Cft 


Johnaoa Muttwy 
KhoMwt 
Kw»f 


Land Seaalljeet 
Laparta 

Laod 6 Oannalt 

BBP 

L ondon Bad 
U*4w 

Luck 

is>ct 

un 


Marta & Snnoert 


m'™ 

lUMw BfiakT 


Norm MM Want 
Nomam Baa. 
Noidiam FoodBt 


Paaraont 

P40f 

nunon 

PmaOont 

PiuMUf 


tt^iotanrt 


52£*rft 


& Naw.t 


I3ES 

Sonrn Tremrt . 
a^mraporcr 

aSflwStA 

Gmn&NapMdf 


Snifliani BoctT 


SoutanWav ^ 

JChartd-t 


6ui ABancnt 
TO* 

TSBy 

Tarmef 

TM&Lvb 

T«tarnbodnwr 

Taaont 

Thame* Watort 
ThomEWt 




wtn AaffiC H3L flit fT"SE *«* XO. FT-SE Artndaa 350 and mo Ff-SC^ Acamrtas InkMiy 
Wtad and M FT-6E AeantaAWta hdm k 

I d rtauarfaa wndara attpdard ail ot gnurtd UM 
199X0 iSftiandalTlM UWW dWftjLM rtjtarBaa B ied. 
taart -id Fhandd Urn* u»tad.1T« FT-SE Attmrtaa 8w» 

tW TtaSHOa^W^TSdMr HE MM OM<r nan 80 am noi atom t Vduaa <r* 


Ml 

ft 

♦i 

-i 

tta 

*2 

♦12 

*8 

♦7 

♦ft 

♦12 

♦1 

+4 

♦9 

♦T 

♦ft 

♦6 

+1 

♦1 

♦ft 

+* 

<6 

■ft 

-4 

S3 

ft 

♦1 

♦5 

♦37 


Yboatta Etc 
yOrtaMaMaar 
2anac«f 

Baaad on sadkig uddmo lor a adaofcn at major 
- aaartaa deaft mnoBn Bia SEAO ayoam 

t utoilui iM+Jflprn-'lhtdairfcnamftny 

man am maidad doxn. t huScaman FT-SE 
100 n 


TnddoarV+xno 
IWB*S 
Unaamrt 
UMadSMEuMt 
UttL Hampapan 




IHiIWb 

WanaxWkmr 

WMBtHdt 
MManaHHOB-t 
VMa Cannon 


431 

272 

487 

^mTrm 

29* 

b t n 

1.200 

H ,r ' fl 

3^00 

Vr i l 

<300 

122*2 


4oe 

WLzl 

709 

toTZl 

383 

827 

2B7 

pafin 

1^00 

372*2 

28ft 

3.700 

381 

047 

188 

MOO 

842 

1,500 

320 

1200 

288 

1J00 

387 

1.600 

620 

481 

430 

aan 

450 

2JSDQ 

383 

64)00 

2E9 

1,300 

3H> 

1300 

142*3 

2J30Q 

IBS 

100 

«jno 

X 

. 1.500 

.442, 

1JOO 

457 

10 

298 

035 

385 

BM 

837 

974 

222 

857 

643 

BIB 

254 

286 

508 

74 

416 

415 

860 

471 

188 

270 

579 

506 

STB 

238 

36S 

054 

388 

280 

S8B 

2500 

175 

3X600 

141 

B40 

13ft 

1,100 

230 

408 

603 

<800 

301*3 

3.100 

548 

106 

357 

3.100 

488 

3500 

430 

1.100 

578 

3J00 

190 

394 

500 

485 

472 

2.100 

718 

130 

355 

4S00 

234*2 

454 

178 

430 

294 

001 

187 

408 

317 

482 

622 

365 

484 

I 

583 

2200 

519 

678 

540 

3,100 

162 

317 

835 

1B3 

749 

540 

440 

488 

340 

1^00 

570 

1,500 

141 

102 

555 

vm 

143 

BSE 

176 

473 

448 

718 

1E7 

239 

690 

<mo 

399 

45 

589 

238 

120 

1.300 

215 

4JX10 

487 

007 

410 

313 

245 

716 

4B2 

134 

641 

585 

207 

00 

815 

453 

813 

uno 

055 

175 

m 

1,000 

409 

2300 

296 

83 

B89 

1.700 

820 

101 

230 

2KO 

390 

274 

589 

558 

405 

738 

803 

780 

212 

895 

48ft 

028 

163 

2100 

405 

2B00 

270 

1300 

361 

mmM 

1245 

to^N 

523 


330 

1300 

343 

2100 

120 

ifloo 

172 

4W 

315 

403 

507 

<900 

700 

1.100 

551 

430 

235 

1.000 

482 

2400 

152 

1JOO 

392 

2500 

358 


470 


563 

410 

620 

eat 

SOS 

67 

S3* 

37 

531 

2«C 

252 

517 

218 


313 

580 

223 

787 

375 

2700 

206 

1JWC 

164 

347 

410 

287 

143 

sjno 

2 n 

1.100 

478 

030 

1085 

2300 

23* 

<100 

80 

82 

356 

2J300 

975 

335 

327 

M 

596 

2700 

532 

848 

707 

BOB 

547 

Sift 

620 ■ 

115 

815 

967 

S2S 

1.700 

352 

1.900 

150 

1.200 

1W 

2B8 

780 

41 

564 

747 

486 ' 

454 

678 


-1 

♦ft 

-2 

ft 

ft 

-2 

♦11 

“A 

9 


♦s 

*2h. 

♦S 

+8 

-ft 

+3 

♦5 

42 
♦16 
♦ft 

♦6 

+* 

+1 

♦4 

-1 

♦2 

-1 

■2 

MB 

♦e 

Sh 

+14 

♦1 

40 

+12 

♦2 

46 

45 
-1 
♦2 
+1 

43 

46 
♦ft 

+1 

*4 

-e 

♦13 

47 
♦7 

♦4 

42 

ft 

-1 

42 

♦ft 

*3 

♦3 

♦4 

43 
46 
-3 

-a*j 

-2 

46 

-2 

40 

-1 

+7 

42 

♦1 

-7* 

S 

♦6 

4ft 

+7 

-1 

43 
+11 
4ft 

♦1 

+1 

♦fi 

■A 

♦6 

43 

+7 

4ft 

+7 

43 

46 

♦1 

* 

-7 

♦4 

46 

-1 

♦2 

«2 

♦1 

♦6 

4ft 


♦3 

+1 

46 

♦7 

«ft 


profits of £3©m, described the 
shares as a “good strong bold”. 

Commercial Union shares 
moved ahead strongly, with 
insurance specialists continu- 
ing to dismiss the latest crop of 
market rumours suggesting 
that CU is rontexnplating a bid 
for the French insurance com- 
pany Group Victoire. 

“CU could not afford to buy 
the whole of Victoire, which 
would cost in the region of 
£L3bn," aairf one leading insur- 
ance analyst. “Maybe they 
could acquire certain parts of 
the business if it was broken 
up by Suez, Victoria's parent” 

CU advanced 16 to 548p, 
alt ho ugh turnover in the stock 
was a modest 607.000 shares. 

Sedgwick, the insurance bro- 
ker, staged a good rally after 
the recent poorly received 
results, the shares moving up 8 
to 172p. 

Life stocks also made good 
progress, shru g gin g off recent 
worries about disclosure of 
commissions, as well as other 
increasing pressures on the life 
assurance industry. 

Prudential moved ahead 7 to 
296p after Robert Fleming 
Securities issued its first posi- 
tive recommendation on the 
company since early 1992, and 
said it expected the shares to 
outperform by 10 per emit over 
the rimct year as the market 
appreciates that higher inter- 
est rates are good news for tra- 
ditional life assurers. 

“In contrast to popular belief 
the recent rise in bond yields 
improves the profitability of 
traditional life companies, 
increases embedded values and 
actuarial surpluses. The latter 


NEW HIGHS AND 
LOWS FOR 1994 

NEW MGHS Pf l 

BLDG MAILS 6 MCH1S (I) Shaw (AL 
MSnUBUTQRS fl) Fobcf PM, ELBCTRHC 3 
ELECT EOUP a AmOacMc 'A'. Ptaenwc. 
BU BUtmu a m Opavmanca. extractive 
■ m n HOUSEHOLD GOODS (1J Orfnrw A 
Una. MWESTMB4T TRUSTS HIHeng heng 
2aro Dv Pf, LEISURE A HOTELS (1) GJL, 
MBNA (H CMan RbOo. OIL EXPLORATION A 
MOD (4 OTHER HNANCWL (1) ML bw TsL 
jmr. retailers, food ni caaaga. 
RETA1BH, SDBML (3) Auatkl Raed, Lfasrry, 
Dol Non-Mo, SUPPORT SOWS HI MM 
Focus. AMSVCANB H) SOUTH AFRICANS (D 
NBW LOWS trad. 

CULTS (1) BULDMQ S CHSTRN R BLDG 
MAILS A MCKTS HI OtMM bn, CHB0CAL6 
n Scapo, Wanla SMniya. nSTTSBUTORS p) 
B38. DWoma. Wlb. DIVERSHIED INDL8 19) 
BSCTRHC 6 ELDCT BHJP » B1CC DfL Rn 
Bda 2020. TkranL lUax. ENQINEERMB (10) 
BCTRACnVE B«8 OQ POOD MANUP (8 
Aeew A Huedwoon, iMamr. Do. NV. GAS 
omBUmN (1) Cato. HEALTH CARE M 
CresaCaroL I n i ticaia . Kynoefi, London tori 
Mm. Ik^nN O^nUca, HOUSEHOLD 
00008 n Oattfnon Nabaaly. Aw Doom. 
Racttt & Co+nan. StSURANCE (7) 

■nrenmr trusts n?) leisure a 

HOTELS (4) arm Wahar. Qranada Prt„ Kunk* 
PA. Ladbrako. UFS ASSURANCE (0 Britannic. 

T -.ll-.llr lH.p ) L t mir »lll^4. 

Mont OTwoB. OS. EXPLORATION 1 PROD (D 
Ram oa. OlHR FWANGML M HMD 7pc 
Pfl, RnanstoavpaMatoM, NWESCO. Hill. 
Manuy /mai Mhh ImmUih. other 
SSWS A BUS» M BartaiL B*. BktodMock. 

OoncnJ Moton Unm. FkxJona. 

PHAHMACEunCALSfi) Hrfatotd Nycwmed V. 
PRTNQ, PAPER A PACKS n Jwvta Port*. 
PVWL Waco PL. PROPERTY (eg RCTAtLSM, 
FOOD CS Apptoty Wantwanl, Gaast. Tosco Cap 
Bd 2005, RETAILERS, GENERAL n CUM 
Canto. Coha Myw. Hu^wa (Tj). KUtfktw. 
Manztos (J7, wye+ato Oaidan Cantraa. 

SUPPORT SBWS 68 Caplw, Chdtb Saoally, 
DmtoSanica. Johnaon Ctoanera, CMml 
Motocutor. VhuSy. TEXIUS & APPAREL (7) 
T R ANS P ORT p| Aaaoc Brtt Porto. D— a o ngwup. 
Mwaay Dock* A jhnfaeu. WATBI (1) Md Kart 

takes some of the pressure off 
bonus reductions and protects 
the buflt-in dividend growth.'’ 
said the Flemings insurance 

team. 

Bank shares extended the 
rally evident at the end of last 
week when big US funds were 


said to have been aggressive 
buyers of the sector. National 
Westminster featured with a 
further 11 gain at 467p, while 
Standard Chartered was the 
FT-SE 100’s best individual per- 
former, climbing 12 to 252p. 

Motor stocks were strong on 
the back of new car sales fig- 
ures for May, up 10 per cent on 
the previous year, to 150,070 
and compared with only a 5 
per cent rise in April. Laird 
rose 11/4 to 390p and GKN were 
up 7 to 590p. 

Smiths Industries benefited 
from its £150m purchase of 
medical equipment company 
Deltec from Pharmacia AB, ris- 
ing 18 to 470p. The acquisition 
takes the medical side to 
around 45 per cent of group 
operating profit, adding about 
£9Qm sales in the growing area 
of out-patient care. Strauss 
Turnbull raised its forecast for 
pre-tax profits for the year to 
July 1995 from £129m to £133m. 
taking forecast gamings from 
29p to 30p. 

The telecoms team at Hoare 
Govett was said to have been 
the driving force behind the 
latest good performance from 
Cable and Wireless, highlight- 
ing - the new management taam 
at Hong Kong Telecom and the 
growth potential of the Chi- 
nese telecoms market. C&W 
rose 6 more to 443p. 

VSEL fell a further 35 to 
875p, after going ex-dividend 
and on further consideration of 
last week’s results. 

British Gas. which has 
underperformed the rest of the 
marketrecently. rose 8 to 269p, 
helped by a Swiss Bank “buy” 
recommedation. Analyst Mr 


Alan Marshall said: “Concerns 
over the security of the divi- 
dend are, in our opinion, exag- 
gerated.” The next consultative 
document on Gas is expected 
later this month. 

Profit-taking and ex-dividend 
calculations took the shine 
from recent firm showings 
among leading property stocks 
MEPC and Land Securities, the 
former sliding 13 to 446p and 
the latter 21 to 635p. 

Euro Disney again basked in 
the afterglow of the news that 
a Saudi Arabian prince is to 
invest in the theme park opera- 
tor. The shares surged 29 to 
415p. 

News of a good take-up of 
the rights issue at Compass 
Group came as the folly-paid 
shares gained 6 to 321p. 

The Great Univeral Stores 
share buy-back story was again 
doing the rounds, with the 
stock spurting forward 13 to 
578p. 

Stores specialists said there 
was increasing expectation in 
the market that the company 
would announce the move - 
rumoured to be in the range of 
£lbn - with its preliminary 
results next month. 

Marks and Spencer was 
another strong feature in the 
stores sector, going ex-dividend 

but s till managing a gain of 2V4 

at 399p. Similarly, W.H. Smith 
“A” was in demand, moving 11 
ahead to 482p. 

MARKET REPORTERS: 

Steve Thompson, Christopher 
Price, Clara Gascoigne. 


Other statistics, Page 23 


LONDON EQUITIES 


LIFFE EQUITY OPTIONS 


Opltan 


RISES AND FALLS YESTERDAY 


Mms 


FMs 


Option 


Jal Oct 

JM 

Jd Oct Jin 

Abd-fams 

540 

44 5BM 

- 

6 15M 

_ 

(■571 ) 

580 MM S 

— 

27M37M 

— 

Aigyl 

220 

14 21 M 

28 

8M 13M 

18 

(•232 ) 

240 

51ZM 

17 

22 25ft 

30 

ASOA 

50 

BM 8 

10 

2 4 

5 

f54) 

80 

1M 3M 

5M 

7M 10ft lift 

Br» Airways 360 27H 37 CM 

8ft 18 

22 

(*383 ) 

390 10MZ2M27M 

25 32 37ft 

»tal 

390 

10 30M87K 

15 K 32» 

(*332 ) 

<20 

7 17M25M 

34 44M50M 

Boob 

500 

33 CM 

54 

8M IBft 23ft 

ran 

550 

8M 21H 

30 35ft 43 

SO 

BP 

380 

32 CM CM 

BM 12ft 

17 

r*3 ) 

390 

13 M SOM IBM 25ft 

30 

arUA Steel 

1-40 

0 14% 

10 

7 10ft 

13 

n«j 

160 

2K CM 

10 20ft 23 

a 


DA Puto ■— 

Aug Mw Fad Aug Nov Feb 


rszoi 


500 a8 48U57M 9» 175* 30» 
550 12 23ft SZH 37 44 56fa 


UfetMa 425 26ft — — 12 - - 

r*aj 450 VM — - 2Sh - 

Gontatal 500 24 30 40 15 25 32 
rG05) 830 S* 17H2BU«m55H61K 

QmnlUsn 500 53 to 88 4 12 16H 

rS44 ) S5D 171+ 28 SB ISh 34 36H 

a 800 43M 5814 73 1614 34 45 

(*021) BSD 1714 34 GBK 43 63 7114 
Uogflgfcr 500 37 «H 56 11 23 2914 
1*510 ) 650 T3Vi 23 34% 38H 47 57 

Laid Sear 600 45* ST 65 5 13b IB* 

(■835 ) BSD 13H 28 SSH « 34H 38» 
kMa&S 380 29 81 38 8 14 10 

(TOT ) 420 7 18 24 28 30H 34 

Mans 400 2314 32 40 14M 26H 30H 
(■465 > 500 7 1514 20 41 51 K 55 

Sataafauy 380 3814 42 47M 7» 14)4 20» 
ran I 300 13 26 31 1014 29 34N 
Sbd Tim. 700 2514 38 4714 16 29 34 
(•706 ) 750 614 1BH 25 4714 6014 04 

Storehouse 200 22 2614 3014 4 7h II 
(*210) 220 8 16 10 1310H2DH 

TVaMgv 7B 7 - - 3 - - 

(TO) 883H--TM-- 
IManr 950 4814 BB 70 1314 2414 32 
(-874 ) 1000 21 H 4114 50 3914 4814 50 

Ztnaca 650 4 0 4 5514 6814 814 2314 28K 
[■878 ) 700 15 26 41 33 60 65)4 

Option Aug No* M> Aus Mar Fefc 


P430) 

Latnke 

nw ) 

uu 
r®?) 

Option 


420 MM 
480 8M 
160 TZM 
180 514 
300 3SW 
330 1514 


36 4114 
1814 26M 
IBM 21 
11 13 
44 47M 
28 30 
SBp Oac 


14M22M 29 
41 46H52H 
8 13 15 
24 26 28 
4 10M 1314 
14M24M 27 
Jui Sap Dec 


^ H41 1 


140 

160 


16 1814 
7 11 


12 16M 
25 2914 


Opfcn 


Aug Mu Foh faQ No* Feb 


BA Aon 420 55 71 B2M 1ZH 27M 3414 

(*450 ) 480 3BM SO 83 20 40 54 

BAT felft 420 27 34 44 10 2614 30 

T426 ) 460 9M M 2BM 47 52W 55 

BIR 360 SOM 30 44M BM 14 17 

ran ) 390 13ZIM28M 10 2SM 31M 

BBTiawon 360 2114 27 SOM 14 18 24M 

(*372) 390 7 13 17 34 36 42 

CadbayScb 42046M 55 B1M 41054 134 
f457 ) 460 19 30M3SM17M 27 29 

EatamElK 550 41 6263M 20 30M38M 

(*576 ) 600 15 30 40W « 53 6814 

Sutanem 460 2SM STM 47 12 21 23» 

f 471 J son B 19 27 35M 4314 47M 

SEC 300 9H 1819M15M19M23K 

(*300 ) 330 2 8M 9M 4M4 « 44 


Kansan 240 2BM S 27M 3h ft 11M 
(•264 ) 260 B 14 1714 12 17M 21 

Laano 134 16 IBM - 7M 11M - 

(*1«) 154 5M On -IBM 22 - 

Lucas lads 160 22 2BM 29 314 8M 1114 

(170 ) 180 9 1B10M I1M 10M21M 

P&O 650 34M 40 STM 26 4814 52 

(T54 ) 700 14 28 37 57M 7914 04 

PKtian IK 24 29 32M 3M 614 914 

P179 ) 180 11 17 Z1M 11 15M 18 

PmdnCK 280 2SM 31M 38 6 11 14M 

(*296 ) 300 13 2DM 2514 13M 22 MM 

RTZ 800 48M OT 85 19 38M 44M 

(*83)) 850 23 45 GO 4614 84M 70 

Remand 460 48M «!4 88 8 I7M 22H 

(*496 ) 500 23M 3614 C 2214 36 42 

deW Uses 200 22 30 38 0 IBM 10 

1*26014) 280 12 20M 2BM 19M 29H 30 

TOCO 200 18 24M 26 6 10M 12 

mO ) 220 7M UM 16 IB 21M 23 

ttxMna 500 36M 54M 62M 16 ZBH 34M 

(*521 ) 550 13 30M 30 45M 55 B2 

MSens 325 3414 41M - 4 9M - 

[*3S2 ) 3541524 - 15 22M- 

OpUnn JU Oct Jan JU Oct Jan 

BAA BOO 57M 78 87M 12 2214 30M 

(■949 ) 950 MM 47 » 33 45 53M 

Ttanaattr 460 25% 31 34 15M24M31M 
(*477 ) 500 5M 14M 17M 45J4 40M 56H 

Omtai Jon Sap Due Jun Stp Pec 

Abbey KSI 300 2814 » 48M 1M 12 16 
(*415 1 420 514 21 31M 11 25M 30 

Ammd 30 2M S B 1 3M 4M 

(T1 ) 35 1 3 4 4M B 7M 

Barcteyn 500 43M 5GM 87 1 T3M IBM 

r541 ) 550 6 28M 39 15 38 41K 

Sub Orate 280 11 2S 32 3 14 1914 

(*2B7 ) 300 2M 15 22M 16 2514 30M 

British Ob 260 12 22 MM 2 9 1514 

r2B9 ) 280 2M 12 IBM 13M 19 Z7M 

Dtan 180 8M 1714 22 2» 13M 16 

naBI 200 114 0 14 16 25 28 


160 10 I7M21M 2 7M 8M 
(*167 ) 180 1 8 12 19 19 am 

Unto 140 BM 15M IBM 3M 12M 15M 

(*143 1 160 1 7M 12(8M2SM2fl» 

HgU Mw 390 31 48 S3 1M 10M 18 

(MW I 420 7 27M3BM 9 MM 29 

Scot Power 330 WM2BM33M 3 1814 23 
C342] 360 2M ISM 2D 2DM 35M 38tt 

Saara 120 314 9 12 3 8 10M 

H2D) 130 1 S 7 11M 14 18 

Forte 220 13 24M 2GM 2 BM 13M 

(*230 ) 240 2M 14 IBM 13 am 24M 

Tarmac 135 21 - - 1 - - 

(*1M> 155 4M - - 5 - - 

Than BI 1050 MM B 8SM 9M 57M 72M 

(1065) 1100 8 3814 83 43 89 104 

158 ZOO 10M IBM M 2 10M 14 

nor) m 2 omm 15 2325 H 

Tankini 220 WM 23M S 1M 8M 12M 

r234 ) 240 ZM 72M 17M BM 19M 23 

Welcome 500 50 69M n 1M 18 26M 

(*S48 } 550 10M 39M 53 14 3BM 50 

oqoo Jel Oct tad JU Oct Jan 

0n 500 58 70 78 7M 25 32 

rS45 ) 550 2B41M GO 2BM 51 58 

HSBE TSprtn 700 4B 73 09M 29 51 CM 

f71S) 750 2BM40MBBM57M7BM 89 

tauten 487 M 37 -19M31M - 

r489 ) 500 T7M 31 43M 26M 37M 47 

Opto Aug dw Feb Aug Nov Fed 

WMojce 180 13M 21 M BM 14K 17 
(103) MO 5 12M 16 21M28M 29 

* Ltotorty teg wart y prteu. Pramkm Am am 
bused un doling ofla prtcaE. 

Juno 8 Tear oot m a ca: 2236B gme 13451 Puk 
8417 





11 

15 

88 

364 

101 

2SB 

9 

177 

284 

42 



0 

75 

145 

45 

104 







SfvuIrM 






102 

56 

45 







Totals 

708 

582 

1385 


Duu baud on dioan campantaa Entad un aw London Share Same*. 


TRADITIONAL OPTIONS 


Cate Battarware, Cons. Murtdv, LBB4S, Iflaito & Spencer , Regent Cop, SL James 
PL, TuSo+r 00 Puhc Bottorwnre, Marta A Spencer, Warburg (S.G), TMay. Puts & 
Cate Abbey Men, HSBC A. Hanson Wte. Tarmac, Tuftsar OB, UttL Btocutta, 
Wfiflcoms, Wlgghs, 

LONDON RECENT ISSUES: EQUITIES 


Issue Amt 
price paid 

P up 

MM. 

cap 

(Dnj 

1004 

HhJtl Low Slock 

Close 

price 

P 

+/■ 

Net 
' 0V. 

DW. Gre 
coy. yld 

WE 

1181 

100 

FP. 

44.1 

108 

100 Airtomothe Piecs 

108 


LAMP 

OJ 

4.8 

355 

- 

F.P. 

247.1 

81 

73 CAMAS 

81 

+1 

i/G.75 

17 

5S 

384 

- 

F.P. 

1&7 

112 

108 CLS 

108 


_ 

_ 

_ 

_ 

- 

FP. 

12J3 

148 

125 Capdri 

130 


LN3H 

1J 

30 

232 

9143 

FP. 

11.1 

151 

143 CassaU 

151 


W3.9 

_ 

3.2 

10.1 

- 

FP. 

20l2 

38 

35*2 Chfene Comma. 

36 


_ 

_ 

_ 


9250 

FP. 

1702 

249 

228 DCC 

228 


LQ3494 

33 

30 

115 

110 

FP. 

41 JJ 

120 

110 DRS Data 8 Res 

115 


LN2-8 

1.1 

3.0 

274 

iao 

FP. 

454 

137 

133 Denby 

136 


W3.1 

2JB 

2JB 

13£ 

- 

FP. 

77.3 

93 

90 Fleming Indian 

92 


- 

- 

- 

- 

- 

FP. 

8J» 

50 

42 Do Warrants 

48 

+1 

- 

- 

- 

- 

- 

FP. 

- 

37*2 

35 Govett Qbi SI Wt 

35 


_ 

_ 

- 

- 

its 

FP. 

51.9 

106 

94 Hectical 

94 

-1 

WN4.0 

IS 

5l3 

113 

225 

FP. 

105P 

227 

221 Mwmedate 

227 


LN9.9 

ki 

55 

85 

- 

FP. 

- 

re 

85 JF R Jeprai Wrta 

71 

-1 

_ 




5 

FP. 

4-00 

51 2 

5 Kays Food 

5 


. 

_ 

_ 

_ 

130 

FP. 

05.0 

138 

118 Kate 

no 

-1 

WNCK7 

23 

<1 

134 

180 

FP. 

574 

163 

156 Lombard Ins. 

161 


WM7.7 

22 

6.0 

95 

200 

FP. 

1564 

222 

200 j<ondon C*ubs 

221 


W11P2 

1JS 

87 

115 

- 

FP. 

33-3 

15 

13* My Hnda Town 

13*4 


- 

_ 

_ 

- 

105 

FP. 

47-3 

113 

105 MBtitfrerght 

105 


RX38 

2J1 

4J1 

133 

120 

FP. 

35.0 

130 125*2 Norcor 

130 

+1 

W4J56 

25 

4.4 

11.1 

- 

FP. 

267.5 

131 

118 Heorow 

121 

-2 

WN2.7 

25 

25 

154 


FP. 

83.7 

92 

91 ScurUer Latin 

91 


_ 

- 

- 

- 

- 

FP. 

&02 

44 

43 Do Wrta 

43 

-1 

- 

— 

_ 

_ 

- 

FP. 

232 

133 

128 Specially Shops 

132 


L2.4 

- 

23 

- 

- 

FP. 

588 

100 

08 TR Euro Qwth C 

90 


- 


- 

- 

100 

FP. 

564 

100 

92*2 TH Prop bw C 

9ft 


- 

- 

- 

> 

150 

F.P. 

41.7 

182 

154 Vymura 

162 


L444 

22 

34 

15.7 


RIGHTS OFFERS 


Issue 

price 

P 

Amount 

paid 

up 

Latest 

Rerun 

data 

1904 

High Lew Stock 

Cloeing 

price 

P 

♦or- 

105 

Ni 

on 

21pm 

18pm Blagden bids 

21pm 


237 

M 

KMB 

28pm 

5pm Clyde Blowers 

5pm 


52 

NA 

23/7 

4pm 

ft pm jCotp. Sbnnoee 

3pm 


120 

ni 

B/7 

28pm 

16*zpm Dawson (nti 

IB^pm 


180 

ra 

20/7 

23pm 

20pm Dixon Motors 

20pm 


285 

NI 

- 

£Spm 

38pm Eurutunnd 

60pm 


185 

M 

11/7 

25pm 

15pm Headam 

15pm 

-3 

105 

ra 

20/7 

Hi pm 

1pm Hgga & Ha 

1*apm 


230 

Nfl 

— 

34pm 

28pm Jtrrto Portot 

26pm 

-a 

205 

NS 

IB/7 

28pm 

16pm McAlpIne (A) 

17pm 

+i 

80 

M 

4/7 

11pm 

7pm Paican 

7pm 

-i 

24 

M 

— 

12pm 

10pm Unit 

12pm 


125 

Ni 

An 

23pm 

16pm VTR 

IGpm 

-3 


FINANCIAL TIMES EQUITY INDICES 

June fl June 3 June 2 June 1 May 31 Yr ago 


•Hfltl Tour 


<21 

<22 

<25 

4.S2 

4^7 

4.15 

<32 

343 

5.81 

G.S2 

5.61 

5.76 

5.64 

528 

5.78 

3.82 

19.06 

19JJ5 

1R14 

18.59 

1P-Q? 

23.88 

3343 

18.59 

19.72 

1M9 

19.71 

1&22 

19^9 

2228 

3CLG0 

19.18 


FT GOLD MINES INDEX 


•4 

404 

a 

+iii 


Jan K cbg 
3 or day 

Jun Jun tear 

2 1 ago 

tank 
yteM 4 

52 rank 

9* lam 

Ml Man hdex (35) 

191922 -04 

182973 193780 176485 

306 

236740 159266 

♦6% 

*2 

AMaftS) 

265176 +14 

261320 2631.06 239282 

<58 

344QJ0 190229 


tatafcta® 

2621.46 +05 

2607 35 2675J5 2041 J5 

1 J6 

301 IBS 180118 

*3 

lUti Anedca (ID 

1602.18 -17 

1629J7 1627.76 1543.42 

070 

2039/35 138300 


OdflnaiySfcn 2337.6 2379.9 2364.5 2321.2 2354.4 2224.2 271 2321.2 
Ord efiv. yield 
Gam. ykL % fuO 
PTE ratio net 
P/E ratio nH 

-Fa 1994. (ttihvy Stare tarte etrix oomptmarc Mgh 2713.0 2rasv34; low 4ft4 iw«a 
FT Oniney Sham nta bam iMa 1/7/35. 

OninayShn hourly efaangM 

Open 9 l 00 ItLOO 11J0 12JM 13J0 1<00 IMP ItLOO Ffltfi Low 
2374.8 23&L5 2389.1 2385.0 2391.7 2391.9 2394 J) 2393J 2385.8 23945 2374,4 
Juno 6 Jure 3 Jwte 2 June T May 31 Yr ago 


Copyugft The FamnaH Tanw Uaud IBM. 

Fiona in bradraa anew tunbar el eumparta. Basis US Dotes. Baa Ibtear ltiOODO 31/12/82- 
PietiiBMiBr Gnld Mnua tedait June: 2i4J:da)Ts change: -30 ports: Year ago: mi 1 PanU 
Lauai price* ware uRamfcbto tor tins atiSkn 


SEAO bargains 

22.112 31.492 

26,144 

22453 

29K1 

29163 

Equity turnover (EmJT 

- 12433 

1161.6 

11193 

10592 

864.4 

Equity twgolnst 

- 33,508 

30,073 

27230 

29384 

32,783 

Shares traded (mftt 

- B090 

519.1 

4490 

4092 

4030 

t Eaduteg Hra-mrkat buslMH and oamu Banavto. 





• • • . •'.-•/fs.'-v'.."; - 

Z.th *)v- 

























































































































































































































































































































































































































































































































34 




CURRENCIES AND MONEY 


MARKETS REPORT 


POUND SPOT FORWARD AGAINST TH£ POUND 


Dollar steadies 


•tai 6 


CkMlno Change BMfoUer 
irid-pcta on day spread 


Day's MU 
WOhtaw 


On* month Three months . Ona year Benkcf 
Rata WA Rate 9 MW Raw WPA Big. Index 


Europe 


The US dollar consolidated 
Friday’s gains in fairly light 
trading yesterday, as dealers 
marked time ahead of the 
Bundesbank council meeting 
and the European elections 
later this week. 

Remarks from Mr Dieter 
Hiss, a Bundesbank council 
member, were seen as conflnn- 
ing recent indications that the 
scope for further German inter- 
est rate cuts was limited. 
Meanwhile, Mr Mickey Kantor, 
US trade representative, said 
the administration had not 
pursued a policy of driving up 
the yen. 

However, support for the dol- 
lar was hardly overwhelming 
and while the US currency fin- 
ished ahead of Friday's closing 
levels, it ended below yester- 
day’s opening rates. 

■ The dollar opened the day 
with some momentum follow- 
ing Friday's sharp fall in 
unemployment, which made 
traders believe that further 
interest rate increases by the 
Fed were more likely. 

Dealers were also perceived 
as being unentbusinstic about 
European currencies ahead of 
Thursday's polls and the 
strength of the US Treasury 
bond market was seen as lend- 
ing the dollar support. 

Mr Hiss, head of the regional 
central bank for Berlin and 
Brandenburg, said in Berlin 
that room for lower German 
interest rates would decrease if 
US interest rates continued to 
rise. 

Mr Adrian Cunningham, 
senior currency economist at 
UBS. “until now. the Bundes- 
bank has stood dear of imply- 
ing a link between German and 
US monetary policy.” 

The Hiss remarks were seen 
as a Anther sign that nffiHai 
German interest rates were 
unlikely to fall much further 
although Mr Hiss added “the 
current level of discount and 
Lombard rates leaves room for 
an adjustment of the repo rate 
which is the main refinancing 
rate for the banking system." 

Meanwhile, Mr Kantor's 
remarks were the latest in a 
series of comments by US offi- 
cials, seemingly designed to 
correct the market impression, 
formed earlier this year, that 
the Clinton administration was 
happy to see a weaker dollar. 


A#*** the D-M*1c<pM per $ 

1.78 1 — 



Jan 

Souks: Datattnaan 


9* 


Jun 


■ Pound In How Yarik 


Jn 0 

—Imd ■■■ 

- Prey, data 

£qnt 

13085 

13066 

1 mft 

13078 

13048 

3 rate 

13062 

13033 

1* 

13010 

1,4891 


However, not all official com- 
ment was positive for the dol- 
lar yesterday. Three Federal 
Reserve governors, Mr Law- 
rence Lindsey, Mr Edward Eel- 
ley and Mr John LaWare, were 
quoted in the New York Times 
as saying that the pace of US 
economic growth had. slowed 
down. 

Traders perceived the com- 
ments as indicating that the 
pace of Fed interest rate 
Increases might ease. 

The flnTlar +hn Ray In 

London at DML6692, up from 
Friday's close of DM1.6665, but 
below yesterday’s opening at 
DML6700. Against the yen, the 
dollar closed, at Y105J35, com- 
pared with Friday's fmishTnp 
rate of Y11&245. 

■ Sterling's exchange rate 
index edged up to 80.6, after 
opening yesterday at 80.5 and 
closing an Friday at 80.4. 

The pound drifted higher 
against the D-Mark, closing at 
DM2.5164, compared with Fri- 
day's end-level of DM2.5074. 
However, sterling's strength 
against the D-Mark was seen 
as merely tracking the dollar / 
D-Mark rate. 

Against the US unit, the 
pound edged up to $1.5076, 
from Friday's $1.5046, but Mr 
Peter Luxton, economic 
adviser, global foreign 
exchange at Barclays Bank, 
said that “cable can't break 
though $L51.” 

“Expectation of higher base 
rates gives sterling some sup- 


port” said Mr Nell MacKinnon, 
<»hifrf economist at Citibank in 
London. He thinks that Mr 
Eddie George, governor of the 

Batik of England wDl press for 
a quarter of a percentage point 
increase in base rates, when he 
meets Mr Kenneth Clarke, the 
chancellor of the exchequer, on 
Wednesday. 

“So for, the indications are 
that the tax increases have not 
had an adverse effect on the 
economy” said Mr MacKinnon. 
Yesterday's consumer credit 
figures were interpreted by the 
markets as showing that the 
recovery was still on track. 

“The pound should sail 
through the European election 
results since the market is 
already discounting bad news 
for the Conservatives" adds Mr 
Mar-TginTifwi although he feels 
that sterling's potential upside 
in the summer will be liwiWafl 
by international investor con- 
cern about a potential Tory 
leadership election. 

■ The central bank of the 
Netherlands cut 10 basis points 
off t he special advances rate, 
reducing it to 5.0 per cent, in a 
move seen as reflecting recent 
guilder strength against the 
D-Mark. 

The guilder finished the day 
virtually unchanged against 
the German currency, mryriwp 
at DMDB92/D£L versus Friday's 
end level of DM0£93/DfL 

The lira finished higher 
against the D-Mark, rising 
above the L970 mark to close at 
L969.4 from L97L7 on Friday. 
According to Mr Avinash Per- 
saud, head of currency 
research at J P Morgan 
(Europe), the Italian unit bene- 
fited from a perception of 
reduced interest rate risk and 
from strong figures on trade 
and automotive sales. 

■ In the UK money markets, 
the Bank of En gland provided 
£375m of assistance in two 
tranches yesterday, after ear- 
lier forecasting a shortage of 
£350 hl Overnight rates traded 
between 3 and 4% per c eut 

■ arm cubbpicms 

•tai B £ S 

tawny 156.523 ■ 1SMJ8! 1(0450 - IQLSOO 
tan 263000 - 283740 174080 - 175080 
RmR 04488 - 0,4488 02976-02963 

mm 341388 - 341718 226500 - 228858 
Ruta 290304 - 290987 192680 - 193080 
UAE 05361 - 55473 35715 - 10735 


AHtrta. 

(ScHJ 

17.7038 

+0.1097 

983-162 

17.7275 17/5230 

17203 

OS 

17/8*7* 

02 


. 

112* 

Batten 

©Fi) 

51.7989 

+0.237 

723 - 2S4 

51-8440 51.5290 

51.8130 

■413 

51J8230 

-02 

61^639 

03 

115,0 

Deranerk 

PK0 

93506 

+0.0348 

624 - 607 

OS683 9.7890 

9JBM 

-QJ9 

0877! 

-OB 

9J782 

-02 

1152 

Ftatand 

(VM| 

83138 

+60248 039-233 

03060 62490 

- 

- 

- 

_ 

- 

• 

607 

Franca 

(FTr) 

63854 

+0.0321 

012-896 

16004 5.4718 

8^888 

-410 

05839 

-04 

8JV513 

03 

1002 

Germany 

(DM) 

23104 

+4L009 

152-176 

2JE64 25094 

25168 

-02 

25188 

-0.1 

25017 

ae 

1234 

Greeca 

W 

374886 

-0307 

388 - 341 

376L341 360.175 

- 

- 

- 

- 


- 

M 

Ireland 

w 

1.0228 

-0.0011 220-236 

1JQ238 1.0207 

1.0233 

-as 

1JB45 

-a? 

1JQ263 

-02 

104J 

m 

fij 

343930 

+3.42 

820-100 

2447,29 2424.13 

2445£ 

-28 

2454.66 

-28 

24806 

-u 

77JB 

LiBcarntMurg 

MO 

51.7988 

+0237 

723 - 254 

51.8440 61^290 

61^139 

-413 

51.8299 

-02 

01X/339 

03 

116.0 

Ntaharianda 

(R) 

24223 

+0.014 

200-245 

2^966 28143 

g _a» 

ai 

28229 

-0.1 

28004 

08 

1108 

Norway 

ff«r) 

109001 

+041495 

037- 125 

108172 10.7258 

100025 

as 

10915 

-03 

105062 

OJ} 

85 A 

Portugal 

M 

261 .41 B 

+1/498 J96 - 638 

261.702 281.198 

262303 


WUMft 

-4J5 

- 

- 

- 

Spam 

(PN 

206-092 

+0336 

582 - 782 

207.315 20C537 

207.187 

-29 

20&U77 

-27 

210582 

-12 

es jo 

Sweden 

(8Kr) 

11.9171 

n 

i 

082-259 

118589 118358 

11^401 

-23 

113761 

-1J 

120731 

-1^ 

708 

Swltzertand 

(SFH 

2.1304 

+0.0061 

351 -377 

2.1383 21328 

21351 

08 

21328 

07 

21103 

12 

1172 

UK 

ra 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

BOA 

Ecu 

- 

13047 

+00053 

040- 053 

13078 1^988 

1-3063 

-15 

1.3019 

as 

1.3011 

03 

- 


SORT 


- 0836047 


ArgsnUra (Peso) 


1.5047 
(Or) 297025 


+0.003 042 - 051 
+57,02 744-800 


1.5051 1/096 
2973.06 2917JOO 


Mexico (Nm Peso) 5-0113 

USA (S) 1.5070 

PMffcMddta Ewt/Afrlea 
AiatraOa <M) 28510 

Kong Kong (HKS) 11.0605 

India (Ra) 47-2887 

Japan (Y) 158828 

Malaysia (MS) 30082 

NawZmand (NZS) 24421 

PhBpptate (Pww) 408298 +00808 170 - 422 

Scud Anfcta (SR) 08543 +04110 620 -565 

Stagapore (S3) 24129 -00012 119-139 

S Africa (Coro) £R) 5/4677 +00124 661 -703 

5 Africa (Fla) (H) 72803 +01198 722-063 

South Koran (Won) 1210% +2.41 4% - 578 

(IS) 408209 +00801 067-361 
(St) 38.0443 +00832 267 - 619 


-00103 096 - 714 

20845 20062 

2072 

-00 

29701 

-1.1 

2084 

-1.1 

870 


+0.010 

024 - 201 

5J3291 5.0024 

- 

- 

- 

- 

- 

- 


AMoMHuael 

SOCKytoteLUM 

Iharay taint' 

+0003 

072 - 080 

1JS08Q 1.5025 

15067 

0.7 

10084 

00 

10012 

OA 

65.7 

+00143 

503 - 528 

20623 2.0379 

2.0609 

0.4 

20483 

04 

20483 

02 

- 


+00228 

470 - 540 

11.6540 11.8110 

11JB424 

00 

110380 

0/4 

110654 

-0.1 

— 


+00923 

733 - 060 

47J060 47.1410 

- 

- 

- 

- 

- 

- 

- 

+0474 

700 - 943 

150330 150280 

158/406 

32 

157.816 

30 

153/451 

3.4 

183.7 

+001 

044-080 

29033 3J5021 

- 

- 

- 

- 

- 

- 

— 


+0911 

999 - 443 

25443 25308 

25414 

03 

26449 

-0/4 

25515 

-04 

- 



Thailand 


41.1215 402348 
00505 00351 
22159 23057 
04710 04399 
73063 7.1798 
1215.75 121132 
403351 407000 
300819 373280 


1BDR r*e tor Jut a BU/aBar nma* In tfn Rant Spot btete tfnw otto Ite Irat Hum doctnri ptam. Fbnvarf M e* not etaretty quoted to mwfcot 


bet n bnritod by cunnt Herat Ha . 
tie MUr Spot utte* detesd tarn THE 


DOLLAR SPOT FORWARD AGA 


_ raa . wared. Oflw ml Mu-aara la both ftta nd 
mm roandod by FT. 


June 

Closing 

mid-point 

Chaiga 
on day 

BWofler 

spread 

Day's raid 
high low 

Ona month 
Rate 96PA 

TtVM Bionfha 
Mb %PA 

Ona year J.P Morgan 
Rata MPA Index 

Europe 

Austria 

(Seh} 

11.7460 

+00485 

425 - 476 

11.7775 11.7426 

11.7525 

-00 

11066 

-OX 

110808 

00 

1030 

Belgium 

PR) 

340585 

+0089 

500 - 870 

34.4300 340500 

348885 

-10 

34.4335 

-09 

340985 

-0.1 

1040 

Denrnik 

(DKf> 

00378 

+00101 

aea -389 

00500 60090 

0040B 

-10 

00834 

-10 

80916 

-O0 

1030 

Fmland 

(FM) 

50144 

+00065 

094- 194 

55330 5/4785 

50176 

-0.7 

55244 

-0.7 

50469 

-as 

7S.7 

Franco 

(Fft) 

50948 

+001 

935 -900 

6.7128 50935 

5.7008 

-10 

57101 

-1.1 

60745 

04 

104.7 

Germany 

ID) 

10882 

+0.0027 

888 - 695 

10740 1.6680 

1.6704 

-00 

10718 

-00 

10685 

02 

1050 

Graeco 

(Dr) 

248-650 

-0.7 

400 - 800 

2491200 248/400 

250 

-60 

25085 

-30 

253.15 

-10 

698 

Ireland 

• ira 

10740 

+00045 

732 - 747 

1/4747 1.4700 

1.4723 

18 

1.4604 

10 

1/4629 

00 

M 

Italy 

(L) 

161800 

-006 

770-870 

1826.10 1818.75 

16220 

-3/4 

1631 05 

-02 

1662.45 

-20 

770 

Lummbawg 


343505 

+0.088 

500-870 

34/4300 340800 

348885 

-10 

34X335 

-00 

348905 

-ai 

1040 

Nettrerimete 

P) 

10720 

+0.0055 

710 - 730 

10778 10710 

10732 

-00 

10745 

-00 

10883 

02 

1040 

Nonwqy 

(WO 

70354 

+00186 

344 - 384 

70525 7.2230 

70381 

-00 

70459 

-06 

70117 

03 

9S0 

Portugal 

<BU 

173-400 

+005 

300 - 500 

173860 173070 

174005 

-0.7 

1760 

-70 

181.75 

-40 

92 A 

Spain 

(Pta) 

137.100 

-0.05 

070- 130 

137040 137070 

137/48 

-30 

138.195 

-30 

14052 

-20 

800 

Sweden 

(SCO 

70047 

+00253 

009 - 084 

70321 70768 

70224 

-2.7 

70632 

-20 

8.0447 

-10 

81.1 

Swtoertand 

(SFO 

1/4171 

+00026 

188- 178 

1.4210 1.4157 

10172 

-0.1 

1-4158 

04 

1.4 

10 

104.1 

UK 

« 

10078 

+0003 

072-080 

10060 10023 

10087 

0.7 

10054 

0.6 

10012 

04 

89.1 

Ecu 


1.1560 

-00024 

663 - 558 

1.1558 1.1524 

1.1539 

1J 

1.1513 

10 

1.1633 

-07 

- 

SORf 

- 

1/41031 

- 

- 

- 

- 

- 

. 

- 

- 

- 

- 

Atnartcaa 

ArgonUna 

(Peso) 

00881 

. 

980-981 

09901 09977 


m 

_ 


. 

_ 

_ 

Braz* 

(CO 

1975.48 

+33.96 

648 - 550 

197503 197500 

- 

m 

ra 

■ 

. 

ra 

— 

Canada 

(CO 

10734 

-00096 

731 -738 

10776 10715 

187S2 

-10 

18792 

-1.7 

18949 

-10 

83.4 

Mexico (New Peso) 

30240 

+0004 

190 - 290 

30190 30290 

3825 

-04 

38268 

-08 

38342 

-08 

- 

USA 

(0 

- 

- 

- 

- 

- 

- 

- 

■ 

- 

- 

1007 

Padfle/Mddta EastfMHca 
AuatraSa (AS 10809 

+0.0009 

604 - 013 

10616 10543 

18612 

-08 

18814 

-0.1 

18651 

-03 

900 

Kong Kong 

(HKS} 

7.7279 

-0.0001 

278-281 

7.7281 7.7272 

7.7274 

ai 

7.7299 

-0.1 

7.7442 

-00 


tadta 

(H») 

310075 

-00013 

©0 - 700 

318700 318850 

31.4475 

-3.1 

310925 

-20 

- 

- 

_ 

Japan 

<Y) 

105.350 

+0.105 

300 - 400 

105000 105030 

105.155 

20 

104005 

2.4 

102/125 

20 

145.1 

Mriaysta 

(MS) 

20910 

+0.0015 

905 - 915 

20915 20865 

20835 

30 

208 

1.7 

2011 

-00 

- 

New Zeeland 

(NZS) 

10882 

+0.004 

862-872 

10872 10829 

1088 

-18 

10S26 

-10 

1.7143 

-1.7 

M 

PMDppInas 

(Peso) 

280500 

- 

500 - 500 

27.1500 28.7500 

- 

. 

- 

- 

- 

- 


Saudi Arabia 

(SR) 

3.7505 

+00002 

500 - 510 

3.7510 3.7500 

3.751 

-00 

3.7531 

-03 

3.7658 

-0.4 

_ 

Singapore 

(SO 

10342 

-00038 

339 - 344 

10388 10339 

10334 

ae 

10331 

03 

10352 

-OT 

- 

S Africa (ComJ 

t P) 

30308 

+0.001 

260-275 

3.6355 30150 

30423 

-51 

3.6708 

-40 

3.7473 

-38 

- 

S Africa (FtaJ 

(R) 

40360 

+007 

290 - 450 

40450 4.7700 

40887 

-8.4 

40275 

-7.7 

- 

- 

- 

South Korea 

(Won) 

aoai50 

• 

100 - 200 

606000 806.100 

809.15 

—40 

812.es 

-30 

831.15 

-3.1 

M 

Taiwan 

DO 

Z7.0768 

-00007 

746 - 790 

Z708O5 270746 

270968 

-00 

27.1388 

-0.9 

. 

. 

- 

Thafand 

(B!) 

250350 

+0005 

300 - 400 

25.2400 250100 

258075 

-3/4 

2S^t3S 

-30 

25015 

-2.7 

- 


180R rate lor Jun 3. EMUhr armada In tto DoOar Spot Id* dww only Sis hit Una doctoral ptaora. Fcmwad am mm ml dkactly quoted to Via marint 
but are krpted by current Mnt atm. UK. Maid A ECU an rented la US cuimey. JJ>. Morgan nominal hdkm Jin X Bias iwraga TBKMOO 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 

Jun3 BFr DKr FFr DM 


NKr 


Ea 


Pta 


SKr SA- 


CS 


Ecu 


Belgium 


(BFr) 100 1933 1067 4357 1375 4708 5/448 2138 5043 3993 2331 4.124 1381 3398 2311 3053 2319 


IMS EUROPEAN CURRENCY UNIT RATES 

Jun 0 Ecu can. Rata Change 56+/- from % spread DN. 

ndaa agataatEcu on day 


can. rate v weakest tad. 


Danmark 

(DKr) 

52.58 

10 

8.710 

2053 

1038 

2475 

2063 

1107 

2650 

209.7 

1209 

2.107 

1.015 

2101 

1030 

181.1 

1824 

Ireland 

0008828 

0785868 

-0004195 

-281 

Franoa 

(FFr) 

8034 

11/48 

10 

2031 

1.192 

2841 

3087 

12.71 

3040 

2400 

1808 

2488 

1.185 

2412 

1.757 

185.0 

1020 

Nathartanda 

219672 

218709 

+000322 

-10S 

Germany 

(DM) 

2059 

3017 

8412 

1 

0407 

969/1 

1.122 

4838 

1030 

8216 

4.738 

0049 

0897 

0023 

0099 

83.12 

0518 

Brigkan 

400123 

307818 

+00448 

-107 

Ireland 

m 

5004 

9034 

8892 

2.459 

1 

2384 

2.759 

1008 

2558 

2021 

1106 

2088 

0978 

2024 

1.474 

1550 

1076 

Germany 

104964 

103304 

♦000272 

-085 

My 

(U 

2.124 

0.404 

0852 

0.103 

0042 

100. 

0118 

0447 

1072 

8.476 

0489 

0088 

0041 

0060 

0062 

0511 

0054 

Franca 

803883 

809926 

+000558 

092 

Nalharianda 

IP) 

1886 

3.493 

3042 

0092 

0383 

8848 

1 

3086 

9283 

7305 

4024 

0757 

0884 

0734 

0534 

5807 

0462 

Danmark 

7/43879 

708847 

-001126 

1.74 

Norway 

(NKr) 

47/48 

9.034 

7.889 

2808 

0038 

2238 

2087 

10 

239.6 

1890 

1003 

1058 

0917 

1.808 

1882 

1450 

1.190 

•pain 

154050 

159035 

-0099 

3.10 

Portugal 

(Es) 

1802 

3.770 

3084 

0063 

0891 

833.1 

1080 

4.174 

100. 

7907 

4060 

0017 

0883 

0792 

0577 

8075 

0499 

Portugal 

182084 

200788 

+0819 

4.11 

gprin 

(Pta) 

2500 

4.788 

4.133 

1017 

0/485 

1180 

1885 

6078 

1280 

1QO 

5-707 

1.033 

0484 

1002 

0730 

7683 

0031 






Sweden 

(SKr) 

4048 

8068 

7002 

2.111 

0868 

2046 

2887 

0153 

2198 

173/4 

10 

1.792 

0039 

1.737 

1065 

1330 

1095 

NON ERM MEMBERS 




Swttmriami 

(SFr) 

2405 

4.814 

4019 

1.178 

0479 

1142 

1821 

5.108 

122/4 

96.77 

5081 

1 

0488 

0070 

0708 

7404 

0811 

Greece 

264013 


80S 

UK 

(£} 

5100 

9.856 

8086 

2016 

1023 

2439 

2022 

1001 

281.4 

206.7 

1102 

2136 

1 

2071 

1008 

1580 

1808 

Rriy 

1793.10 

187408 

-4.19 

408 

Canada 

(CS) 

25.01 

4.769 

4.146 

1016 

0494 

1178 

1863 

5068 

1280 

98101 

6.786 

1031 

0483 

1 

0728 

7608 

0830 

UK 

0786749 

0787923 

-0003935 

-239 


7.13 

534 

534 

531 

016 

233 

098 

030 


IS 

8 

-8 

-12 

-22 

-28 


3435 

fd 

39.89 


US 

Japan 
Ecu 

Tan par 1.000; DaMi Kronor, French Franc, Nonragtai Kroner, art! temdbh Minor par TOC Bdgian Franc, Escudo. Lka and Poeota 


8237 

7352 


5.683 

5436 

6379 


1368 

1634 

1328 


0378 

6/442 

0.784 


1017 

16369 

1889 


1371 

17.77 

2.162 


-7335 

68.70 

8380 


1713 

1648 

200.3 


137.1 

1302 

158.4 


7306 
7530 
9.134 
per 10a 


1/410 

1335 

1337 


a083 

0297 

0700 


1373 

1334 

1307 


1 

0496 

1.166 


1053 

1000. 

121.7 


0385 

0216 

1 


(HUM) DM 126,000 par DM 


iiMM] Yen 123 per Yen 100 



Open 

[jtn«r 

Change 

Ugh 

LOW 

Eat vol 

Open Int. 


Open 

Latest 

Change 

Hgh 

Low 

EaLvd 

Open tat 

Jun 

05986 

05988 

-00003 

00981 

00973 

78048 

110,138 

Jot 

00496 

00498 

-00004 

00501 

00479 

33043 

53093 

Sep 

05981 

00980 

-00003 

00951 

05965 

23.182 

28.112 

sot 

00568 

09556 

-00008 

00662 

00544 

11094 

23/428 

Dec 

00978 

05875 

-00009 

05991 

00974 

180 

341 

Dec 

00820 

09620 

■OOOIO 

00820 

00820 

15 

1,188 


-438 
-043 
037 

Eou ranU ram eat by dm Banpaa n Creinta ri on, CUrendra. an In daacandtag raWNa aaanaOi. 
Poicaniaoa ctangaa are tar Ecu a potatae change dmatm a weak currency. Ovagonca rims tfre 
Mdo beM«i twiwraadr the pereanaw* dltarane baraaan the amd marM aid Ecu ohM Mtai 
for ■ cunnoy. md ora raanmum parmfind paraantapa dntaOon of tha amnofn irarira ran tan tta 
Ecu Mffni rasa. 

■ HW LADUHA H t/9 OOTIOWS £31.250 (canta pra pomd) 


F INANCIA JLTDV^ TUESDAY_JUNE 7 1994 

MONEY MARKET FUNDS 


Money Market 
Trust Funds 

tai M ST M» 

^ - iS as 

** — ra— ‘ ' M -I 48515-40 


TtMCOF 

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ms 


Cast Bd. oTIta. el m»h ol EoglaMt 


•ran * cm ta»- 

CoottiSOe 

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^dBdbhaalliadMaaB 

JSaSSS“T55 -t TT 
S a 3| S 

S£S=rl;5 IS I tsl S 

BBS , 3asSSfS!"“jK-« 

ru0S9*8MH. | 77* MWS Tfrta 

M JS 5 

JH I 4IT3 SiaCtl *9tl « 


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IM CM MCT 




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DjMwml ue lanliBwl ea 


Bank of ScottBid 

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150 203 I 111 Or 

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ISO I.UI 151 t» 



1IIMI 33 0080 •'82101 

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SUdMOM. 


US 

1AV 

MB 

Mb 

<00 

MO 

44B 

MB 

4JS 

Sta 

UI 

UO 

440 

401 

447 

m 

22S 

140 

127 

Ml 

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US 

278 

MB 

100 

us 

104 

MB 

US 

X4+ 

340 

MB 


MMcma aamiim 

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MMM2M8 


OydBadaleBaakrioidMaSakdlonAx 
309«laMMgK,aaaaai>aiaM. 041-3487070 
CW0OQ-CO0OB— - I 33P 278 I 173 1 OK 

OO0OO-CSO0OO- — 1379 201 I 300 UK 

eiaaooo-ciMUOD— 1300 zoo I 2001 ok 


UaOo-kantaWi 

NtamMMah.11 


MMr-MMM 

I 490 


_^-i“f5S 

3081 S0ll MB 



03/2744720 

09 
DO 
DO 

OK 
OK 

tBCTratfUntad 

16mOCMMItaanUtaMWIH7AL 071-250000* 
E1QM040 M*>ta . 1 879 100 I 

rwxn-MOiaKieaa-l too 163 I rw n-K* 
£23000- 1 far 1 709 14*1 -Iwn 

Dotad DnHon IM Uit 
l1IM02ltatl.BM00r 081-4472438 

tadUIM fl I I II I 

B0OO+- 1 478 3® I 40*1 OK 

JL Homy Schrader VtaggS Co LU 

tao cM i i i Ki i, langgp feflara .on-: 

9SSSS 

HMao That Ugb ktarost Choqn Acc 
Tta Il uam ra. in—ra m ret 07922341(1 

C1S0OO+ 1 478 is* I 484j 00 

£30OO-mBK 4J3D 3-34 ] 4SB Or 

H0OD- W . M I 425 3.19 I 4KI Or 


Acc.: 


3020000 
«( <m 
111 MB 


■Mn want af la Mch MHMi 
Em ri Mmt pmtio star riMtaa tar OOMeo or 
MMM Mm m Mi UCButatwmi n 

M« a ■ 

f ■eod 


■ SWISS WMMC WntIWBS (IMM1 SFr 136,000 [Mr 8ft 


■ 8THUNQ BTIUMi 0MM) C62^00 per g 


Jun 

07048 

07081 

+0.0013 

07062 

07041 

32607 

35099 

Jun 

10042 

10064 

+00006 

10068 

10034 

16068 

38082 

Sep 

07044 

0.7082 

+00911 

07064 

07038 

6,175 

12011 

Sep 

10008 

10044 

+00006 

10046 

10008 

4,632 

8008 

Doc 

- 

07065 

-0.0075 

- 

- 

5 

387 

Dec 

- 

10020 

- 

- 

10020 

43 

104 


snare 

Price 

Jot 

— CALLS “ 
Jri 

Aug 

Jot 

— PUTS — 
Jri 

Aug 

1/425 

804 

703 

703 

- - 

- 

005 

i/480 

500 

504 

071 

- 

OOI 

025 

1/475 

3.10 

329 

309 

- 

024 

072 

1000 

001 

10S 

214 

an 

004 

109 

1025 

- 

002 

107 

1.77 

240 

206 

1060 

- 

010 

045 

400 

4/42 

401 


WORLD INTEREST RATES 


MONEY RATES 

June 8 Over 

right 

One 

Three 

nrth9 

Six 

irita 

One 

year 

Lomb. 

freer. 

Dta. 

rate 

ROTO 

rata 

Belgium 

54 

5ft 

54 

5Vk 

5* 

7AO 

400 


week ago 

S3 

54 

SV. 

54 

5% 

7A0 

400 

_ 

Franco 

5 » 

54 

54 

5% 

5B 

500 

— 

8.75 

'aik* ago 

5* 

54 

54k 

S+k 

5% 

5.40 

_ 

6.75 

Germany 

5.10 

5.15 

605 

5.10 

5.13 

800 

400 

500 

week ago 

500 

5.15 

6.06 

S.08 

5.13 

0.00 

400 

5 30 

Ireland 

54 

54 

51k 

5% 

64 

_ 


605 

week ago 

54 

54 

54 

5** 

84 

- 

_ 

80S 

Italy 

ra 

ru 

7H 

755, 

Ml 

_ 

7.00 

700 

werit ago 

71i 

7U 

7U 

m 

8 

_ 

7.00 

705 

nauwiipiuft 

5.08 

5.13 

5.13 

5.15 

506 

_ 

S.5W 


week ago 

6.15 

513 

5.18 

5.18 

502 


60S 


dvitteSitaMl 

AVa 

4H 

*4 

4% 

44 

6025 

300 

_ 

week ago 

4lS 

4* 

4V, 

4'A 

44 

6026 

300 



4 Vi 

4 Vi 

4Vi 

40 

6+k 


300 

_ 

week ago 

414 

4U 

44 

4» 

54 

_ 

300 

_ 

Japan 

z* 

** 

24 

2* 

21k 

_ 

1.78 

_ 

week ego 

2 

2fi 

2% 

24 

2 H 

- 

1.75 

- 

■ S LIBOR FT London 








Intel bank Fbdng 

- 

44 

44 

4ft 

Si 




week ago 

- 

44 

4« 

5 

516 

_ 

_ 

_ 

US Dakar CDa 

- 

4.25 

403 

403 

508 




week ago 

- 

425 

4.42 

4.79 

505 

_ 



SDR LHred Da 

- 

3’A 

34 

M 

4 




week ago 

- 

3Pi 

34 

3+* 

4 

- 

- 

- 


(UFrer DMIm points of 10096 



Open 

SOT price 

Chavs 

High 

LOW 

&L vol 

Open tab 

Jot 

8407 

9408 

+002 

94.88 

9408 

9027 

138197 

sot 

94.97 

9403 

-0.03 

95.00 

9402 

17646 

181230 

Dac. 

9403 

94.77 

-004 

9406 

9476 

aesaa 

227656 

Mar 

94.63 

9408 

-003 

9406 

04/66 

21082 

210584 

■ TWB 

MONTH MUKOLB1A IMTrilATB FUTURES (LFFE) 

LI 000m patata of 100% 


Open 

Sett price 

Change 

High 

Low 

Esl uol 

Open tab 

Jun 

9204 

00.90 

-OOi 

9224 

9218 

2048 

30467 

Sep 

9210 

8207 

-0LO1 

9215 

9203 

6498 

43300 

Dec 

9106 

8102 

+O01 

9109 

9179 

3681 

50378 

Mar 

9105 

9102 

+002 

91.60 

91/49 

968 

12470 

■ THRU 

MONTH 

IUHOSMS 

• muse nnum iuff^ si=nm points of 100% 


Open 

Sot price 

Change 

HVtfi 

Low 

EOT vol 

Open taL 

Jot 

9502 

8507 

-003 

9505 

9509 

1218 

18788 

Sep 

95.57 

9503 

-002 

9506 

9802 

2780 

28133 

Doc 

9540 

8504 

-003 

85/40 

9503 

580 

8004 

Mar 

9601 

95.18 

-003 

9621 

96.18 

378 

5876 

■ THUMB 

MCMfTH bcu nrniRBB Ecuim petals oi 10cm 



OPOT 

SOT price 

Charge 

High 

Low 

EOT vol 

Open Int 

Jun 

9402 

8309 

•001 

9402 

9308 

595 

8748 

Sep 

94.15 

94.10 

-002 

94.18 

9408 

421 

12210 

Dec 

6405 

9308 

-0 0? 

94.06 

9308 

206 

7697 

Mar 

9305 

93.78 

-001 

9306 

93.78 

239 

3342 


1 IHt tuturaa tradad an APT 


ECU Ltatari On old rates: 1 mta: 83: 3 mths 9B 

rates an ofbrad rates ftx siOm qmea to Bm 


day- Tha banks am Bantam Truat, Bank d Tokyo. 

Mid man 8tmn lor the domaidc Honey Ram 

EURO CURRENCY INTEREST RATES 

J«1 0 Short 7 days One Tims 

term nuBce month mo nths 

Belgian Plane 
Danish Krona 
D-Mark 
Dutch CUder 
French Franc 
tartuguase Esc. 

Sosush Peseta 


8 SB: 1 yoan 8 . S UBOB InierOank IMng 
a by Otar r ri aranea bonks nr Han M 
Mjtayaaad KaBonri W ta atena a. 

. US S COa and 90P UrQiad DspoaKa 


9H. 

One 


■ TI 0M M BKHCTH PWOPOLLIUI (MM) 51m polnll 01100% 


Jun 

Sap 

Doc 


Open 

953T 

94.79 

94.19 


95JA1 

94.67 

84^0 


Cfrango 

+0.06 

+008 


■ IT— i- 

rttgn 

95.42 

9439 

9430 


Low 

95X7 

9479 

9419 


Eat vol Open tat 
96,780 325808 

219,681 407^28 

445^2? 417^15 


Sum Franc 
Csn. DoBor 
US Dollar 
Baton Lira 
Yen 

team SSng 
Shan win mho 


5A- 

5ft 

5ft - 

5ft 

5ft 

-8ft 

Bii- 

6ft 

5ft - 

5ft 

^4 

-5 

5ft- 

5*2 

6- 

5ft 

6ft- 

Si 

8ft 

- B 

5A- 

5ft 

5ft- 

6ft 

5ft 

-6ft 

6ft 

-5 

5ft 

- 5 

5ft- 

5ft 

5ft- 

5ft 

5ft 

-5ft 

5ft - 

5ft 

5ft- 

5ft 

Mi 

5ft 

5ft- 

sft 

5ft 

■v. 

5ft - 

5ft 

5ft- 

3ft 

15 - 

13ft 

15- 

14 

18- 

15ft 

15- 

13 

13ft- 

lift 

7ft - 

7ft 

7*1 - 

7*2 

Ttt 

-7ft 

7ft - 

7ft 

7H - 

7ft 

4*- 

4*1 

4fi- 

*ii 

5ft 

* 4J1 

5A- 

5.L 

5ii - 

5ft 

4*4 

-4 

4ft - 

4ft 

4ft 

-4ft 

4ft- 

4ft 

4ft- 

4ft 

5%- 

5*2 

5ft- 

5ft 

6% 

-5ft 

6ft- 

Bft 

6ft- 

8ft 

«J* - 

*A 

4ft- 

4ft 

4ft 

-4ft 

4ft- 

4ft 

4%- 

4ft 


-T 

7*1- 

7ft 

7fi 

-7ft 

7ft- 

7ft 

7ft- 

7ft 

2.‘. 

-2 

2ft 

- 2 

2ft 

-2ft 

24- 

24 

2ft- 

2ft 

3%. 

3ft 

3ft. 

3ft 

V. 

-4ft 

4ft- 

4ft 

5ft- 

5ft 


m ea* lor «ra US Oota raid Ym, aOnnc wo days' noaoaL 


A-sfi, 

6*hi - 8 
SU-Sa 
5A-5>» 
5H-5iJ 
1l4» - 10*2 
0-7H 

6- 5% 

*t* 

7- 5% 
5^ • 6^j 
0V-&4 
2B'2B 
50 -5ft 


■ uancAgumr bbx wmiiaa <iMM)siro par iooh 


Jot 

Sop 

Dec 


W.77 

S6L25 

9480 


98.79 

9S30 

9480 


+404 

+0.07 

+OO0 


95/80 

9A31 

9482 


95.77 

9525 

9480 


2,632 11,165 
804 ' 15380 

677 7JJ78 


MOpan Intrant 8 ipl ara tar premoiB day 

M PHtOMklUC OPTWIIg (LFFg DMIm patata af 100% 


suite 

Price 

Jot 

Jri 

CALLS - 
Aug 

Sap 

Jun 

Jri 

PUTS 

Aug 

Sot 

9473 

0.14 

022 

024 

027 

001 

004 

006 

009 

9300 

am 

007 

010 

0.13 

013 

014 

017 

020 

9928 

0 

002 

004 

005 

037 

034 

036 

037 


■ own MOmw P1BOH PVTURB8 (MATIQ ftarta Interbank offered rata 



Open 

Sett price 

Ctange 

Mgh 


EOTvel 

Open taL 

Jun 

94.43 

94/43 

+001 

94.44 

34.42 

8,784 

52,023 

Sot 

94.45 • 

04.48 

+004 

94.49 

94.45 

12027 

40209 

Dec 

9429 

9401 

+007 

9402 

9408 

70S 

34.740 

Mar 

9407 

94.09 

+009 

94.10 

9406 

0490 

33041 

■ THRCE MONTH EURODOLLAR (UPFET 51m pokts d 100% 




Open 

Sett price 

Change 

Hflh 

LOW 

Eat. vol 

Open M. 

Jun 

95/40 

95/41 

+007 

95,41 

85.40 

85 

5809 

Sep 

9402 

94.87 

+017 

9408 

9402 

48 

2018 

Dec 

9405 

8408 

+018 

9409 

94 08 

148 

1593 

Mar 

94,04 

94.08 

+019 

9407 

94.04 

88 

1103 


Ett. vet UHL CM 6208 Pm 1885. Rradaua d mfu span Int, CM 270933 Pure 10GEG8 
■ EWO SUMS HUIKi Oi ri KI I IH (LlFF^SBr 1m potato OM0096 


Shite 

Prtoa 

9590 

B67S 

WOO 


Jot 

009 

002 

OOi 


CAULS 

Sep 

0 X 0 

010 

005 


Dec 

020 

012 

006 


Jot 

002 

020 

044 


PUTS 

Sap 

017 

032 

052 


Dec 

naw 

053 

072 


Eat «d- tost caM 0 Put* 0. Ambus day's open int, cm bio Pure 3749 


prautou* raw wL Cals NBA Pm 7UA . Rw. day* open ko. CM N» Puts NM 


UK INTEREST RATES 


LONDON MONEY RATES 

Jot 6 Over- 7 daya One 

nigM notice month 


Three 


Six 

months 


Ona 


4* -3 


4 % - 4 * 6 - 4 % 5 A- 6 & 5 A-SA 

4 a-«S S 4 - 5 i, 


« 4%-4H 


6-6 

sa-i 


Interbank Slating 
Slaing CDs 

Treasury Bta _ „ „ 

EUrtrBfc - - 4^-4H 4H-4B Bl(-5A 

Local authority daps. +J -4A 4& - 4fi 5* - 4JJ SH - 6 54 - 5fi 5 S - ® 

Oocount Mortar dap* 4-5 4*-4 % .... 

UK deartng tank base taxing raio par cant inn fisbrusy 8, 1994 

Up to 1 1-3 3-6 6-B 0-12 

month 


Carta of Tax dap. (eiOOjnq 1% 4 3% 3k sfe 

Own ofTra dip. undra etOOflOO la 1i»>e. Oapodte aBMn far ctei tipa 

/tee. tendsr rate of Mcoont 47001 pe.BSGPltaH rate sap 6ra»ttnaanesL AMs up day Msy 31. 

1 804 tanad rata tor pwtad Juiao, 19»( to M 33. 1804 admw 8 8 ■ OXTpc. nw ran ct rsator 
period Apr 30. 19M u May 31, 1084 Botanies wa V 502&C. Ftaanea Mouse Bam AM 6^pc tan 
JWW1.1W4 


I 88Q8ITH WTOtJMO WITUBM (UFFE) ESOOOOO pofetfa ot 100% 


Opwi 

SOT price 

Change 

Hgh 

Low 

EOT wei 

Open Ink 

94.75 

9475 

+003 

94.75 

94.73 

8898 

60414 

04^8 

94^2 

-002 

9*46 

9409 

14000 

100501 

9308 

9388 

-007 

9308 

8300 

23870 

140425 

8303 

9804 

-004 

9303 

83.15 

8851 

64885 


Jot 
S op 
Dec 
Mar 

Ttadad m APT. At Open Manet Sgs- an ** pntous day. 


■ «HOBT rmma oittioibi (UfE) esco^xio potara of iow 


Price 

9475 

S5M 


JOT 

004 

0 

0 


CAULS - 
Sep 

Dec 

JOT 

— PUTS - 

Sot 

dot 

005 

008 

004 

008 

096 

am 

aas 

006 

066 

1.17 

0 

001 

asa 

CL83 

1.40 


Set *qL toH CM 68(0 Pm (82a PnWooa dayta rpan Int, CM 1HMHG Pm 1701M 


BASE LENDING RATES 


Mem&Convmv — 528 

ABedTruMSenk 626 

A1B Barit 625 

•Henry Anabactar 629 

Baric of Banda 625 

Banco Bbao Vizcaya- 636 

BarkcSCypui 52S 

Sale of Ireland 625 

Bankoflrefa —-626 

BankofScotend., 628 

BandoyeBraric— — 525 
Bril Bk of MU Sari— 629 
•Bnran BHptey & Oo Lid JUS 
GLBoricNadartand— 525 
Otter* MA 625 

CtydeedBto Bar* — -625 
Tha coopaorin Bank. 525 

CocbiiCo -625 

Cradt L y erra ta ... 625 

Cyprus Pcprior Baric -62S 


% 

DmeanLawia S25 

Exeter Bank Umtad- 625 
Hnandri& S ot Bank - 6 
•Ho tel H a ri ng AGO -525 

(Mark 52S 

■Grimes* Mahon _,525 

Hadb Baric «a Zurich .525 
Ha trtaoB Baric — —525 
HMbMi & Son bv Bk. 825 

•Hi S(maL £25 

C-Hoare&Co 525 

Hongteng&ShangtaL 525 

■Mtai Hodge Baric S25 

•UnmUJoaerii&scnt62S 

LtoydsBErfc 526 

Magfeaj Baric Ud 125 

MUand Baric B25 

* Mount Bnrtdng ____ 0 

NaW ftiu >t*i« i a 525 

•n mO i ri hM^ ...525 


*Raduf/wGu8rareae 
CspoaDon Ltariad Is no 
tangsrailnMa 
ataridngMIuOorL 8 
RoyalQkafScodand- 626 
•Sn*aWBm«Sm.625 

TSB 625 

•UntodBkofHundt- 625 
Unfly Trust Bank He — 525 
Western Th*t^— — 625 
Mtanray LaUw— 525 
Y cri ari ra Bari c 525. 

• tfwnbars of BriBris 
Msrctaurt Banking .8 
Sacurttias Honaaa - 
Assoctadon 

* taarirMsutWi 




Margined Foreign Exchange 

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Trading 8 

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Duff For e C asts and Market Myths for 1994 

JJ 3°i'^r ...I, war v/ , l ccnl nuc; =o!.1 i most ccmmsciir.i 

v/on s ocoromy S ireck ms.-kol -vir; bo WOQV ¥ou ^ 

U a,hc, C >- the iccncclc S !,= Investmor.i loiter 


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35 





• jrxNANQAXi TTMES TUESDAY JUNE 7 1994 


_• .j' - ' tHi *-- " - • 



WORLD STOCK MARKETS 




-*T'-xx'ta.w m 

+/- w im w m 

*/- HhXi 1— W HE 

Itab law W HE *1- H Iran M +/- Mta Low TW RfE 

+#- un taw to m am 

+r-HUtaw tau 

+ /- Man taw 


Europe 

k(J« 8/504 



'***«*. * 

z*'- ^ 


1^40 ^-lSZOTIJM 2.7 

sHa ..ta.iara. sse.oe 

fEWt +s -su aa 10 

SA»- ^Ol43»3rf». __ _ 

ST ukm-.— 8 10 _ 

Sw **- -M T.m m i,7 „ 
Hjjn- BSD- —tOTO- S35 61 ■ 
MBH 4S3 ■: -4 . 49B. 403 22 
S2rt -w • -4 w tn u 
SSm 353 .7 *3 « 3BU 
mg* -853 -'—2 m ES025 
HST - .440 ..+2 600 <35 14 
. X«3» . -12 Utt 3.4M 1.1 

BejsnMOiWHAmthn 


za 

... “ Mmti *£3ML +20 MS) 7,600 H 

V- MiSd «7W -fiOfi^OMOO 

• aa VMO .+50 4^71M,«!0 47 

■ Sii W2» : +5-1BW11.1SD ZB 

bKm 2wbo.+imsmh>&t4b 2L5 
£££ 3U0D -25 4237530500X3 
1 a 





-1 187.79 119 _ 
*231 JOB 1.005 OS 
-806JDO 1400 0.7 
+B.M 29021060 „ 
*8 0» 043 27 
*1/10 2742D7.W 1.0 
'-190 167 TOO 42 
-13 1 JO 989 68 
.*.1016080 145 XS 
*80 280 190 _ 

-aoe ks »4j 
+7M 636 182 58 
+3JB 2341«MJ34 
*4«M0m» 58 
-S' 9® 753 18 
. -71805 B19 _ 
-4 1.150 680 48 
*2 804362.10 .... 
-480 157.48 ItUO Z2 
-1 7Bt SM M 
-40 M5 770 7.1 
-15 3890 2,710 18 
-8 734 576 14 
-31.783 1.927 28 


ETHaOJWDS [Jtn 6 / Fts.) 






■■ 1*4 


«!%-. I* u 


r M:%M 


-<466 *75 4800 3870 48 
—48788850 48 
n£ - 15*5 -TO 1888 1*30 2 A 

%£? S dS«|Sia 

a 

worn 1748 *808 800 asm ia 




IS£S 

%ri^S 

TdUB 31880 
MAP 1EJ80 
Iran* . M4 
(MM 407 
IWBtfr 574 

yam 2 & 3 . 1 M 


• *9 800 510 2.1 
— 010 45520 11 
-2 700 510 58 

- -34 2870 1843 — 
*1380 792 399 3.7 

*682800 I860 12 
*6.70 529X4720 — 
-170 377 296 48 

- 3.120 1261 12 

+30 214 180 6.3 

-8 8848029316 13 
—1802848914*89 38 
-3 494 420 3.4 
-a- esa *e« 5.6 
+8 BOO 555 E.7 
+80 30723610 38 
. -S .335 240 13 
+1 055 252 38 


ABNAmr 8980 
tea ON 88.70 
MhU 4820 
AKflQH 20780 
AmiODR 77.70 
BoHHi 0980 
B0«» 44.10 
04.10 
DM 1360 
osenm 184® 
EMr . 166 

KkHJpR 1180 
flwnma 100.70 
GBrOpfl «L» 
Hagmyr 140 
Konfen 227 
Kan 3ie 

w ts 
5g* ffil 

sr 

KHPBT 47.70 
was* 47.70 
N«M 68 
TtaC 8180 


prop 

SSSo i»1S 

122.10 


RDUCfl 10140 


- fflWMrWune/Dm.) 


[HDp 191 

VMJ __ IIS-20 
VuOOpfl S3 
WOODS 11140 


♦1.10 73.70 6880 48 
*001 Mia BOBO 38 
*80 53.40 46 _ 

+180 22918780 3.1 
+18088406080 4.1 
-804780 3880 _ 
-.10 52 - 42 28 

-80 7780 83.70 _ 
+80 14310580 1.1 

*2 70817170 28 
♦180 19X70 162.59 18 
*80 26 1380 45 

-80 108GB 96 4.0 

+.10588046.10 2.7 

+31S7® 123 _ 
*180 2448021070 18 

— 33650 2S4 3.1 

*280 784380 8.1 

*030 9380 6880 2.1 

— 453980 3.1 

*280 04.7D74J20 08 

+809080 7080 28 

-1 SOTO 4080 28 
-80 S2 44 08 
-.1057804780 3.1 
+2.10 8680 6B80 48 
*80100808180 2 A 
--30 85.50 8575 — 
+2808980 9680 28 
+hB 5780 40 08 
+180 8480 7380 08 
*80 131 111120 28 
*80 aa 59 5J 
+80l3&«nU0 28 
-.1010050 89.70 48 
+2.107114018820 48 
-.70 5080 4080 1.7 
-.70 23B 198 11 

*3BU8& 

♦1.40 IXL50104JD 14 



— 18401.146 „ 
+100 13840 11800 X* 
+170 7^08,150 0.7 
+15 28001800 28 
+4 1,055 773 18 
_ 227 100 1.1 
+13 989 707 — 
__ 4880 3865 IS 
+9 870 083 _ 
+E 1850 1,480 28 
+101,100 846 18 
+13 031 360 as 

+7 250 190 — 
*29 819 610 — 
+14 770 659 _ 
♦2 880 736 — 
+30 1803 I860 U 
+21 632 810 — 
+2318151820 IS 


2SS0 

ft 

047 


- PACIFIC 

~ JAPAN (JtinB / Yen) 



AEG 168 

ASSndVt 596 

M6*o 1.140 
28TO 
631 
1820 


“Be ' ttrta 





. BOO — 730 MS Z£ 
220 -1.281 2T5 13 

ui 283 +J4M 333 207 1.1 
Sai eSOO -150 7800 5800 08 
SK» 121 800 +1890 Quvnus 0.4 
MM .967 '+4821.140 9201.3 
iw» 322 -»« 437 310 3.7 

bST III- *620119 192 58 
R80 - 600 .: — 816 307 14 


" ^ «G '445 13 
220 . +2 270 215 _ 
— 425 ’ 332.3-0 


Ml. 

MM . 64277 '+277 73331' 506 08 

saro+MUO -' -m sso . os 

- a^.. vii.oiE " ’ 


M . -.-SOO, -.+S 699. 386 20 

. .• aa:.-- + rS3M * J a* : 

820. -J-10 1872 aw 18 
21LC..+1 ■ 287 707.M 42 


TuBan 

uSoA- 


**r- ■■;■■ ■ 

JIM* ' -13tt j- — ' 1S4KB8B IS 
7 Ctatw" 1 » -1 178 130-18 

BM - - 57 -' ** 1 lflS. - 80 — 

r ' EtSaB - 30 ' -^504080 3880 10 

•'i Pt MI - -310 ' 23S 181. IS 

^ S? • 1100. +vlfl 17.40 1030 — 

. 'SO .480 • 66. ; 4&Z2 
MnD <29 ■.*41- -705 -JKl 10 
■ "113 V +1 - .132. 100 — 

178 347 178 .18 

tW.,. 1-4. MO 17U 18 
MgfedA m :^y ^ 200 ~ 

.. 225 280 100 09 

- GO- ' -fl - 485 2B7 0 J 

0230- -30- 182 .60.-^. 
..-•96- - • 104 90 18 

' B87-1J0 .-HE- 99 M 

4B8D'-> -1 .120 86.10 D.7 

wa v—- 2 » iBo 28 
moo .-,10^.31. a 

r- 14 ■ ,-804080 14 _ 

iWfiti- i 


s « 


- 1SL30 163 08 
+11 635 544 28 

+W 1.440 1.120 18 
+102811 2887 OS 
+1 STD 575 2.0 
+40 1,191 807 — 

— +80 1835 707 OS 

31600 +200 34300 278 20 
B-,-— 492 +1 510 436 18 

^*® 81 _JS5 - B8S 34S SA 

•37050 +340400 339 10 

44280 +0 5HJO 42580 03 

S2Zar -T B£S 833 10 
4SS1-SO *3S0 673 43U7 29 
am +22 990 815 18 

,.--- 2®0 *634*80 230 10 

gw* 402 +2 528 400 3.0 

BMo 7B6 +7 051 - 750 1.7 

7 315 -06 10301.140 0.7 

BOO -6103O 849 1.1 

rood — 380 38400 3.6 

grtrt 2S4.S0 -.70 299 239 IS 
487 -13 0004B580 0.4 

- 81400 +B.70 01471100 10 

Dp™«» 61270 *1070 566 443 1.4 
D( Bob 251 ._ 28*86 235 

£«*** 750 +680 8*700 72910 22 

«*»« >6180 +260 ISO 132 25 
Boo* jijSZ -%50 007 SSI- 28 
J?a«k 2S9 — 3TO 260 1.7 

DrnBk394.40ol +2BO 46650 370 38 
QBE 680 +10 BIB 468 1JS 

GnWWl 273 -ISO 307 27D IS 
g«a< 700 — 703 500 20 

*fw>*a 210 +1 245 198 3.1 

HaiQn 1.261 *610801,190 08 

020 -ID' 891 002 IS 

3BB8D +180 440 38Z 25 
IJBO +480 12B21JK0 10 
4720 +480 3070015120 20 
805 +3 1009 030 IS 

231 -3 253 222 28 

286.30 -380 324 286 38 
390 +5 433 303 21 

147 — in 14180 — 

823 +7 848 516 21 

811 +3 55B 451 20 

14060 -ISO 161 J0 11610 — 
U» .680 17B1027D 3.1 
660 +9 800 BSD 10 

775 +13 850 005 15 

932 +7 980 030 18 

36080 +80 410 352 22 
195 -*8022080 IBS ._ 
19880 — 216 156 18 

42200 +100 410 378 20 
324 -180 367 302 20 
•480 +049880 587 1.1 

BOO 822 788 — 

MWtl 23580 +80 28017580 24 
Hicma 2930 +303817 2040 04 

PW4 23180 282 210 

n*MHa S2S -3 S30 9S450 3.7 
Pop* 790 +15 BOB 088 00 

Prawn 449S0 -4.30 406 4Z7 22 
TOC , 4S480 -8052950 **J 20 
nffiPt' 36480 +200 424 335 30 
WWllE 1S10 +20 1820 1040 OS 

ifinrae 810 +80 372 306 22 
fBnmPT 245 +5 287 225 80 

nmta 207 so +550 313 252 2 a 
um -a uhb 070 10 

™ <5 350 18 
*88070920 95180 IS 

_ 095 BID IS 

545 _ 659 400 1.1 

ZBO +200 3062*50 11 


r (JunG /.Kroner) 


- Lf*H 


-80 112 54 40 

-80 108 130 OS 
+-2S1U0 13 _ 

+2 160 125 10 
-80 114 8580 _ 
+2 14© 111 as 
_ 398 331 IS 

-z rase ss 3.1 

+3 SSO 208 IS 
_ 20B 185 1.1 
__ 305 228 12 
-1 JMJO 135 15 
. _ 91 74 23 

♦ISO 91 72 28 

+1 97 72 „ 

+1 122 0650 IS 

-1 151 122 20 

+180 8480 31 _ 

-1 66 ST 9.1 


1270 

561 

— tmui i.DSo 

— AtoSB 1/WO 

— Amato 1,100 
Ammo 1.720 

~ AnooCn 697 
“ Anrtou 1400 
■” AM 492 
~ Aoram asm 

— AitmOl 62m 
1,100 
1.1 so 

770 

“ Aaanfi i+oo 

AsmO 574 
taks in 
AMM DIB 
BriyiM 622 
8(9*81 ljssa 
BnXtr 711 
CSX 3000 

— 1.140 

— DtooK 636 

— canon 1 J70 

— CmuS 3010 

— COStOC 1000 

— CenFto 547 

— Cants* 425 

— CtiftaB m 

~ 2600 

” OioPran i,i w 
“ Cb#i 2550 
-•• CtUDTB 1830 

— CbWcA 635 


-20 1,420 1000 — 
+10 010 400 - 
-10 1000 891 OS 
+3018B0 876 — 
_ 1010 SOI — 
+301,7501070 _ 
-11 7M 563 1.4 
— 1,420 940 _ 
-0 534 402 1.6 
-40 6SD03S80 _ 
-20 6030 4070 OS 
-1010001030 — 
+1010501,100 
-a 803 580 12 
-1010901040 .. 
+9 585 410 08 
_ 493 300 1.1 

—14 670 530 _ 
+7 906 B56 — 
-20 1070 1000 OS 
-14 734 415 — 
-20 3020 2010 — 
+10 1220 842 38 
+8 040 436 — 
-101.7801030 _ 


_ KWWD 
_ Know 
„ Kama 
._ Kayos 

„ Kims 
_ HmfluBi 910 
_ Ante 443 
_ Kina 1000 
_ Kudin 308 
_ KuiU 2040 
_ m» 6050 
_ mtofiti E00 
_ KMKU BSE 
_ KyanH 97B 
KyQPw 2060 
... LMnCp 742 
LsTaiCi 1000 
_ WwB 1.160 
783 
2.150 
553 
506 
404 
1050 
1019 
1,530 
1.170 
3020 
810 


lUdb 

WWI 

MHUF 


ms a 
M3M 


MatsKo 



*30 2020 2150 _ 
-15 895 732 _ 
—3 725 605 — 
-7 674 846 _ 
_ 718 551 ._ 
-5 530 423 10 
-16 «77 31 B 
-20 1040 1010 _. 
-6 011 408 _ 
+20 2,730 2020 ... 
-50 70X5000 
+35 505 376 1 0 
*6 OSD 7« ... 
-51.050 905 — 
...20602020 . 
-7 782 638 „ 
-10 1030 786 .... 
— 1040 BSE 09 
-12 780 512 _ 

+10 2.190 1080 - 
-12 578 426 
-17 871 780 IS 

~S 413 321 _ 
-1010801.420 18 
-3010501,700 „ 
-30 18701000 _ 
+1O10ZD 990 10 
-3030902,720 „ 


snacn 
Snt 


SftoMt 

StimMu 

SIwDan 

snwBW 

StmSan 

StwEhS 

sw 

SrauflrM 

Sony 

SBfiS 

SranBM 

SunBnh 

SurCem 

SumChm 


2.170 

820 

1.180 

1.290 

579 

640 

367 

646 

585 

1,480 

2/470 

785 

0010 

7SS 

717 

2,140 

635 

480 


SumHvy 

— sumjM 


— MAm 420 

— Mbs* 002 

— HOTS' 1080 


-2038402S80 _ 428 MbWn 109D 

■“ 005 

000 
775 
1070 

840 
458 
445 
B7S 


— MEflS 

— UQFud 


— IHPet 


— lOTta 

— IRTiS 


— D-u4C 
~ DBktoS 


- SPAM (Sin 6 /Pis.) 


~ Wetet M \ 


mm 

K4fl&0 


asr 

Lind* 

LknH 

LiAr 

urn 


= SS5 

— Asm/ 

— Ftoosot 

— ENWCE 

— Santo 

— SavB 

— tbcoca 
T eMl 

— Tutor 

— un Fan 

— UnFsrt 

— Oram 


+80 8080 9000 20 
-50 6^00 5.400 
-5 3836 2090 60 
-20 3000 2060 70 

+10 4030 3076 4.1 
+50 17.701 U.100 28 
+20 6021 4030 0.1 
-40 1435 700 100 
-5 3090 2.410 3.0 
+50 4S7D 3.400 28 
+340 12480 9020 IS 
—332,719 2083 38 
+5 1J75 10BO 18 
-20 3080 2^55 29 
-SO 0.100 6.140 22 
+31.100 855 _ 
+11 540 418 IBS 

-30 5.140 3000 30 
— S 1010 921 _ 
+100 7/MO 4.600 ZS 
+70 7030 5.400 2.7 
+30 0.490 4810 IS 
+60 t28XJ 0.710 18 
+10 4000 3000 20 
_ 305 102 _ 
_. EM 351 7.4 
+« 015 010 60 

+70 4.450 3800 50 
+20 21051085 30 
+45 1,435 050 IS 

-6 739 578 60 
+85 24001.41511.1 
+36 1 .710 1,1» 48 
-20 3.120 2015 IS 
— 3,410 2250 OS 


611 
520 
1040 

oath* i/«s) 

DaOKB 1020 
JTCM» 1040 
OMl 939 
□•(ton 1.140 

— D'nrani 836 

— DHotoh 535 

— DMJWH 1,190 

— DaWY 1080 

— DMtfTu 400 

— EMmoP 1090 

— DKM OSS 

— DatwaB 1020 


— Dcnvto 

— DowaRM 


— Mtsna 


414 
1050 
1000 
1060 
727 
1050 

2100 

— IlmaaM 5 TO 

— Hong 2800 

— Uuraran 4,71® 

— NEC 1.190 

— NBKkl 1080 

— H6K3P 1,410 

— NHK3p 672 

— NKK 278 

— HO* 790 

— KSK 718 

— NTH 898 

-- NeMFu 446 

— Ngmri 558 

— MaM* 1,790 

— Mdfl 1040 

— NcMre 745 

— MmCm 731 


— mm 


MptClH 


~ AfiAA 


I Pun 6/ Krona) 


400 +15 465 380 25 



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A*‘. 

ic 

S-': 

Bmr 

&»l“ 


cma+ 


•' •'»* Ml. 

as - 

nr . 

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Olya 

OtacF 

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OatioF 


Eca> 

bSS 

asm . 

ErBSay 

BflOs 


— ar 

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■ ■ gnra 

sar 




wcap 


-. 468'.' ' -2 B7B4cno i. 
fDlf-.v+SVnr- 505 30 
vm 48/ 808 748 28 

3 ,0-3.813 530 32 
+ *-34049 1057 2S8 
1005 ‘ +181(435 1.102 24 
- 1 ®- +4HS02 BOS 28 
29400^150 76ft» 240 — 

, 534 : -12 BBS BOB 26 
IqoK. *1^2750 2060 39 
■'TSW/rW 7B7 621 25 
1433' -HB 1,480 1.1 11 40 
m — 1.1 B5 843 42 
T»7Ja.‘-2Jin 22* SB 15* 60 8,3 - 
W1*0 — 2B02J3201D61Q U. 

- 1010 - -721961003 23 
-155. _ 205 145.19 40 

• 1.417 *2310791021 30 

41260 -7 4SS 048 22 

236.B0 +58030990 718 IS 
1050 -27 1065 1011 54 

582 -B 858 590 26 
421 BO +700 408X8929 — 
328*1 +1 737 511118 

5050 +106,1606020 07. 

714 ■ *14 830 60+ 

. 422 -SO 438 - 301 M 
630X1 +1580 900 760 M 
7/425 .+152094 2028 27 
790 +71 040 630 10 

400 +240 4353091 *B 
350.- *1 382 32B _ 

B83 +6 1.127 B42 4.1 

+201.009 980 _ 
+20 865 740 — 
*£ 830 6 55 IS 
-37 3,407 2,760 £5 
*525881005 27 
-1 702 BM 24 
+2 59.752000 19 
+1 182 135 80 

939 809 19 

0,020 4,708 ,10 
440 +1190 876 416 28 
' 2300 -502,73*2002 OT 

730 . -51,020 607-00 
60D *5 645 558 20 

453 +5.604B3JB . «M 26 
sea- +15 600 537 23 
.525 +. 7W 49980 ™ 

. 796 -1 107B 776 7.5 

7581 +&W 119 72 30 

606 +1 570 490 RE 

045 _ 700 BOO 56 

-898 „ 054 727 20 

40210 -4.80 «1.n 302 30 



Vart* 

322 

-2 

380 

307 61 


Vd» 

51920x1 +4® 

657 

458 20 


HEW 

8S7 

-1 

3BT 

317 10 


VMNM 

. 378 

-a 

415 

378 24 


too 

47G 

+53110) 

441 10 


YW 4810OX) 

+2® 

654 

418 0/4 

' mrm 

WPf 

383x1 

+3 


338 00 

— 

WULlP 

850 

+21 

070 

780 1.4 


2 hFpep 

225 

+5 

270 

220 10 


“ rou.i(jun6/Llre) 


B Gum 
BUcAo 
bhuii 


ftroo 
cm - 


- BOS' 
780 
. -0B7 
3.450 
1051 
BBS 
3650 
155 
■90S 
*■730 ' 


CATta 

CrUa 

'DMCA 

ST 

FWPf 

FUk 

FooSpi 

Dnntoa 

GnU 

GkM 

WPr • 

M 

Rjdckj 

Huan 

3&- 

MMfflnc 

MUM 

OOuM 

PUB* 

PKSpa 

has 

AfeNBC 

SA98* 

3P 

SM . 
SIET . 

5aflrt 

Saipun 

Bnmto 

sn 

SntaBP 

loroAa 

ToXFf 

Unican 


5,170 

5S60 

-2285 

183 

27.000 
110OD 

25® 
2395 
. 2350 
1096 
2390 

10.700 
2070 

. 4,175 
8098 
14080 
1085 

44.700 
4025 

23000 

12.000 
10500 
16073 
5020 

1B0OO 

10.050 
1038 
2680 
. 6040 
2653 
90450 
12730 
8080 
4000 
1049 
i3T0 
5.610 
4000 
iaioo 
12120 
2403 
30058 
20000 
12480 


-308405 4410 30 
+95 5075 2510 _v 
„ 2450 1,776 1.1 
+3 211 70 _ 

*800 28450 25JOBO ,14 
*398 12450 9.110 _• 
. +52100 1064 20 
-.30001050 
..25B5 10O2 — 
—5 2010 1096 — 
+5 2820 21® 30 

• -.lswiioao ~ 

+20 2504 1088 _ 
+557030 4071 10 
+73 40202119 24 
+1407550 3079 30 
+133 17090 11 Jtt 4.0 
+34 1SB5 1536 30 
+900«5»3727D — 
—35 4560 2673 — 
+3J0 28.100 15500 1.4 
+1001400011060 — 
+460 12.108 9500 _ 
+1» 17080 10070 0.6 
+7064404071 21 
+93 1*900 12 me — 
+360 19,790 13410 IS 
+291049 870 _ 
+20 21® 1,915 — 
+20 6,100 3010 — 
-18 3585 1070 — 
-5034058 23400 1.1 
-SOC.1W8088 -+ 
-3010580 7000 25 
+110 3.183 3003 IS 
+29 1,088 480 
+115 8530 4006 IS 
+10 7000 4.145 — 
-20 4010 2875 — 
+10511708 9000 30 
+22013900 2201 45 
♦25 2730 1532 — 
+350X3300 25.709 — 
MM2 18.487 — 
-60 WOO 105E0 _ 


“ 

AfiAB 

400 

+37 

479 

373 20 



Asaa A 

807 

+3 

mm 

5® 1.8 




810 

+7 

IWS 

438 1 0 



AxiraA 

172 

+4 

TOO 

127 — 



ASMS 

in 

+3 

184 

1® ... 




06 

+1 108® 

BO 9.4 



Ate* 

96 +1.® 10640 

81 84 



BD0 

389 

+2 

439 

282 10 



Eric® 

401 

-3 

408 

200 1.1 



EOTA 

127 

+4 

134 

101 22 



EOTS 

128 

+3 

134 

100 20 



Grabrofi 

347 

+4 

4® 

3® 10 



HGMB 

985 

+2 

430 

251 10 


_ 

HludaA 

50® 


GO 44® 22 



tncatA 

287 


311 

258 20 




287 

+1 

312 

256 20 




tovWA 

107 

+2 

216 

1GB 20 



tesffl 

188 

+4 

215 

152 20 



MadoB 

310 

+4 

MM 

17 20 



PtmraiA 

124X1 

+2 

155 

108 10 



PnorroS 

T265S 

+2 

165 

109 10 



8CA A 

115 

-1 

.165 

112 30 



SCAB 

MS 


758 

110 3J3 




SKFA 

138 

+7 

184 

125 



«FB . . 

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- + 1_ 

166 129 XO 



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StxMOV 


1® 

108 — 



SadvhB 

115 

-1 

1® 

9® _ 


—a 

5£Bnk 

SO 

+20 

7347® _ 

— 


Htot# 

mcaS 

Htcrod 


HlZtan 


_ HnsaiP 


Sloidla 

SHKkB 

Snl 

StoraB 

MM 

SydkrA 

SydtrC 

Tratt 

(WHOA 

UobnB 


118 

181X) 

412 

IS 

ss 

747 


+1 MIS) 113 34 
—2 233 171 10 
+2 473 384 IS 
+3 490 350 1 0 
-1 *1448750 40 
+2 no *1 30 


II lwaa£ 


+50 122 
-1 1» 


93 21 
73 55 
+20 775 530 1.0 
+23 780 528 10 


-10 1,090 1020 10 
-3 BOO 315 _ 

*11 428 337 12 

-20 897 041 _ 

-SO 14® 10® 05 
+1 731 571 1.0 

-10 2970 2020 — 

-10 15X0 1.I38 __ 

-30 2780 2510 _ 

-301590 1210 
-10 990 904 OS 
-1 998 708 — 

-3 626 410 _ 

+3 534 397 — 

-10 1070 1.420 __ 

+50 1.490 1050 05 
-60 2090 1,720 _ 

— 10101.400 _ 

+9 949 662) _ 

— 1.180 SOO — 

-5 910 551 — 

-S 349 415 

-101070 993 — 

-® IS® 1000 — 

-4 475 346 _ 

+401090 970 — 

-6 934 997 00 
+30 1 070 931 — 

-10 1.710 1/499 — 

-10 1550 1230 05 
+30 4030 3030 0.0 
+6 70S 545 OS 
-4 BIO 489 
+1O1SBO103O — 

+20 1.8601,720 _ 

-101.170 993 — 

*10 -is™ 3.CO? „-r - Maim 
-ID BOB 521 05 — mob! 

-*2 Zj £S' , -55? - - 

-9 569 4® — — Maxi 
-10 20602000 — 

— 713 595 10 
+2 459 276 — 

-3 383 360 — 

-9 1.040 719 — 

-101270 990 — 

-10 2500 1090 — 

-10 1.130 841 — 

-13 7® 314 — 

+3 933 787 — 

— 1090 1,150 — 

-6 BOS 428 05 
-20 1050 938 — 

-1 6» 440 _ 

-8 729 002 1.1 
-4 640 S8S _ 

-4 523 438 — 

-10 780 650 „ 

— 1,120 TEH _ 

-2 550 397 1 0 
-2 926 079 — 

-0 050 628 — 

-70 8020 9^00 — 

-4 078 508 — 

-001.120 812 — 

-18 016 712 — 

-50 20® 1080 

— 10® B20 — 

— £2601010 — 

+40 1.230 830 .. 

— 734 502 — 

—7 399 497 — 

—10 3040 2550 _ 

_ 490 42J — 

-26 790 681 -. 

-10 2SS0 2.530 — 
-1010601020 — 

-21 BSD 503 — 

-30 25® 1060 09 
-30 2,120 1050 — 

-4 514 303 __ 

— 1020 626 58 

_ 1.B90157D _ 

—9 

-8 749 

-7 910 792 15 
_BJ 50 5080 - 
-11 741 420 — 

-1015901.730 ... 


-101,7271518 0^ 

-5 41B 284 _ — . Ommas 1560 

-8 755 BOS OJ — Oltort 090 

-3 490 338 _ — 0<1» 4.100 

-1 886 479 _ _ OssIaG 480 



™ SMTZBtUUIO (June /Fro) 


AtuLBr 

NuLHg 


BrBuflo 

CS9r 

CmBr 

CBsalO) 

EtokBr 

B*te 

RbUB 

FMoBr 

HUkfl 


5 “SS 


JetmRo 

UKfiHB 

MCna 


253 
667 
673 
2505 
1533 
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sk® 
381 
1,860X1 
1.430 
25® 
938 
410 
880 
170 
880 
1J90 
1,176X1 
145 
1.830*1 
5080 
216 


-5 292 181 — 
+8 BSC 508 IS 
+9 008 367 IS 
+353095 USD 15 
+0 15® 1015 15 
+1 250 190 15 
+4 765 558 25 
+5 B70 BID 1.7 
+11 942 77S 15 

+10 422 346 — 
+102000 1060 35 
+2010001000 20 
+30 2032 2035 20 
+141000 975 15 
_ 450 375 £7 

.-5 971 782 15 

+2 175 WXSJ 15 
-5 9B1 875 10 

-5 1520 1.400 20 
+29 1,437 1.005 2.1 
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+23 1.7® 1/430 42 
+00 50® 4.470 ... 
„ 283 190 55 


— TOO 


-302.1101010 _ — 

-3 387 206 _ _ 

-10 BTfi 590 _ _ 

+1 (HO 431 _ 

+10 1000 822 00 
-101 


’J® "2B 1 * -011 


KntW® 

Konetoo 


— ttti 
fctoefffi 

— KoKoM 
KohBX 


INDICES 


Jun 

. 0' 


-J® 

' 3 




-1994 


LM 


Joi 

6 


Jui 

3 


Jun 

2 


10701 
-01030 , 

-3 420 33B 
-7 7® 518 10 
-11 570 430 _ 
-® 20702080 - 
-8 5E5 425 _ 
„ 1010 1,150 „ 
-8 494 338 _ 

-3 403 Z71 ._ 

-6 431 303 _ 

-fl 720 001 _ 
-11 016 515 _ 

-ie 970 aas os 
-20 1.036 1083 05 
-1 877 804 _ 
-1010801,130 _ 

*S: 

-50 2.1M 1.7D0 _ 


-1994 


o 00 Z rkS 

= = 



+1 950 

-6 613 397 _ 

+2 992 B85 ._ 

+B 874 557 
ns 780 sar 00 
*10 10® 1000 0.7 

+17 8T2 480 

-5 582 308 ... 

_ 1030 790 05 

— 3,0102000 _ 

-30 1050 1020 „ 

-0 703 620 
-30 1000 BOS .. 

+7 623 335 .... 

-3 783 003 _. 

-I 533 425 „. 

-5 595 39* .... 

s o*o no — 

-71010 a® „„ 

—18 730 487 ... 

-0 735 5® _ 

-3 537 407 

-3 446 319 _ 

-1 EM© 395 
-® 1.700 1,1® „„ 

-ID 1010 1/150 

-12 6® 4® 

-14 838 672 

-7 394 301 _ 
-3010201.100 0.7 
-15 B90 765 OS 
-8 459 37B _ 

-3 453 337 _ 

+B 975 57B . „ 

-30 9*0 770 0.7 
-8 4*9 310 __ 780 
-tOISW B*6 „ 

— 1S30 7B0 _ _ 

-20 2230 1000 00 .... 

-4 792 810 _ 

—20 1090 B5B _ _ 
-20 20® 1083 OS — 
-1 624 495 OS „ 

-80 2580 2.000 ... ._ 

— 4,9*0 3020 _ „ 

-20 1020 850 ... _. 

-10 1.170 9B5 

+10 1,430 1 020 _ _ 

+8 670 3S5 ._ 

-4 281 231 _ _ 

-1 B02 565 _ _ 

-2 754 52b 1.1 _ 

-1 712 403 _ _ 

-8 474 315 

+14 010 711 _ _ 
-15 973 791 05 _ 
-7 598 500 _ _ 

-2D 2080 1.700 _ 

-20 1,0601030 _ _ 

7® -0 816 S£LJ 

731 _ 788 B2B _ 

479 -12 S07 400 05 _ 

725 -5 744 S7B „ 

472 -8 405 412 _ 

1050 -201.430 1060 OS __ 

1550 ...1,100 858 __ „ 

6510 -60 7000 B.1 SO _ 

0.000 +40 6.000*580 _ _ 

447 ~7 482 310 _ _ 

2S30 —10 2S60 1510 ._ ... 

1S30 +101.980 1030 _ _ 

1070 —1.110 937 — — 

709 -13 802 702 IS — 

574 -a 620 450 — __ 

1030 +10 2.190 1530 05 — 

701 -8 830 626 — — 

72S -S 7® 478 — — 

1020 -20 1590 1,480 OS — 

785 -4 794 663 — — 

624 -10 TO3 508 — _ 

712 +2 728 484 — 

1.1 BO -20 10BD 1080 05 _ 

590 +10 617 450 _ — 

1,170 +1010001070 17 _ 

575 -4 615 441 — — 

951 -261.110 908 _ _ 

1.470 -1010201/120 _ _ 

1070 -1O101O107D _ _ 

436 -7 4M 336 _ _ 

357 -7 381 302 _ _ 

470 ._ 482 3® — _ 

28.100 +200 2600018300 a* _ 
870000 -1UOO TOM 141JU — — 

-t 573 38* ... — 
-1 653 621 _ 

+10 525 365 ._ — 

— 10701550 OS — 

-14 598 349 ._ ... 
-18 934 727 _ _ 
-401520 10® — — 

-SO 1020 1070 _. _ 
-2D 902 808 — _ 

-6 475 325 — — 

—30 1 070 815 _ 

-7 536 ®1 — — 
+1 15® B10 _ 

-10 3000 2080 08 — 
-201,710 755 _ _ 
-6 3® 26* _ _ 

— 1010 1030 _ _ 
—50 2.470 1090 OS — 

-3 SS z = 

-15 773 582 _ _ 

s = = 

♦15 BBS 573 _ __ 
-fl 1.110 BS5 12 — 
-10 1.170 996 - 

♦101520 1/460 — _ 

+20 5510 4.970 00 Z 
-10 1090 1050 1.4 _ 

-SO 4.180 2000 OS 84.4 

-0 779 804 1~.t “ 
*10 30® 2/410 — 

-3 573 390 0.9 
-2 528 4® 10 
-12 995 705 — 
-8040708030 .. 

-20 1.530 1.r“ 

-0010® 1030 
— G5G 813 
-2020002010 05 
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IS® 
1570 
431 

.. _ 432 

SumMar 982 
So mm 2 H 
SutiMM 898 
SumRB 712 
SumMr 1030 
SUnTift 1010 
SumWOs 780 
SiauM 1.430 
TDK 4.790 
TBWBl B» 
TXmFtl 1070 
TihBa 686 
TkrnSi 823 
Tmaya 15® 
TfefcSi 1.1M 
Tmsel 900 
1B» 595 

Taka 735 
TcMun 9® 
ToxEcx 731 
TOOTH 604 
Tabufltr 080 
ToduCa rm 
Toet BSD 
Taha 18000 
TcMEP 2.700 
nafflk 
TMCb 
TUdDO 532 
TottaM 1090 
Hcrama 858 

% !£S 

IMtonw 2000 

TkSPw 3010 
TVBdi 3.130 


887 

2.400 

1070 

972 

77B 

990 

15® 

1.430 

728 

920 

1 . 1 ® 


1070 

488 


ZSSr 

TtoOp 
IKuLnd 

Irai 


TsMiii 

Tush 

Tata 

Toyocn 

TOaAuL 

Toygti 

ToyoKn 

ToioSK 

TfolaM 

ToyoTR 

ToyoTB 

Toyota 

TsCnMn 

sr 

(JWfik 


vxmNag 

VmTian 

Vm8ak 


YMimflb 

YomLnd 


8® 

305 

1520 

558 

'■SS 

ESS 

600 

3510 

2.120 

490 

1000 

446 

507 

5*0 

400 

347 

1.4® 

1090 

13*0 

920 

938 

1030 

1090 

1.100 

1080 

25® 

10 ® 

504 

913 

989 
1030 

910 

875 

990 

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667 

649 


-20 2050 1010 _ 
-161.0® 8® — 

-TO 1090 1.1® _ 

-10 1060 1.120 _. 

-1 838 505 OS 
-20 561 411 — 

-11 301 256 — 

-12 700 GOO — 

-5 623 «1 _ 
-1D1.5W1.no „„ 

+20 2520 20® __ 

-2 002 700 0.9 
-60 6/460 5.490 ... 

—12 B11 BIB — 

-1 730 423 — 

-® 2090 1500 ... 

-9 873 432 
-3 510 404 .. 

-so i.ooo ear _. 

-10 1000 1000 
-6 493 390 „ 

-8 453 296 __ 

-29 1030 861 £7 
-> 308 252 ... 

... 882 B84 ... 

-6 734 611 10 
-101090 815 — 

-«J 1.730 1,080 _ 

+4 818 674 _ 

+30 1560 1,050 
-TO 4030 3,790 _ 

-10 7® 810 _ 

TO 2010 1070 10 
+3 722 570 m 
-17 B82 S79 0.7 
+20 1,480 7070 _ 

TO 15® 1090 - 
-410® 887 _ 

+5 587 4Q0 — 

-17 7® 81S 00 
-11 1,100 705 00 

—6 790 566 0.7 

-4 SS5 307 15 

— 720 60S _ 

-10 B31 670 _ 

-8 B07 533 _ 
-710W170D8 _ 

-TO 3030 2560 _ 

— 1.410 1.110 _ 

-3 604 926 _ 

+6 535 415 — 

-40 1090 1.190 OB 
-10 507 4£1 _ 
-301.720 1,460 
-2D 2020 1010 _ 

-10 20001070 _ 

-SO 35® 3050 _ 
-100 3.460 2,7® _ 

-2 670 481 _ 

-12 700 520 _ 

-TO 2.720 2000 _ 

-10 1590 1020 08 
+3 002 450 _ 

-5 828 6S7 ... 

-G 730 586 ... 

-20 1550 1*00 .. 

TO 1500 1,190 _ 

-4 739 676 
-14 852 670 — 

— 1080 1.0S0 _ 

-9 875 433 ... 

-3 874 BOO _ 

-4 414 285 

-20 2590 1.770 
-4 577 421 OS 

— 1590 1.430 — 545 
-9 705 515 — 

-6 733 524 _ 

— ® 3000 2500 ... 

-10 2.160 1.760 _ 

+7 501 330 _ 

-40 1070 BS5 __ 

-11 506 330 „ 

+11 U4 432 _. 

-12 EOS 345 _ 

+8 400 285 _ 

-0 365 272 ... 
+1D1500 835 — 

— 10301,170 15 

— 1,420 030 _. 

-15 805 820 — 

-2 867 502 OS 
-80 20301500 — 

— 1/8101050 — 
+101,110 BOO — 

— 10® 1.110 _. 

— 2090 2.010 OS 

-10 1050 1.180 — 

-2 520 SSO 1.1 — 

-14 8® 727 OS 54S 
-5 BBS 734 _ — 

-2D105O 780 - 
-0 889 0S0 — — 

-13 710 528 — — 
+10 1070 880 — 

-201.160 921 — — 
+2 725 442 ... — 
+4 667 486 — — 


949 
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WHTTr £41 


405 

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mom 

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* 13 958 8.10 3.1 
♦02 800 806 10 

— 002 7.® IS 
+05 ZJS 201 3S 
-00 505 409 2.7 

— 4.73 170 IS 
-02 302 164 20 


HOME KONG (Jun B/HJCS) 


AmoyPr 1040 
BEAM* 37 GO 
DftayP 1100 
Chita W 
CniJoti 41 75 
enura 7230 
QMEtd 0.15 
CUcP 2200X1 
CrtteHJ 17 

DFvni 1080 


ssaaiB 

Cm» 

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80S 

38 

8800 


HLingD 1180 

— " 5400 


11.10 
6.15 
HerLna 410 a 
HM2« 16 IQ 

MSnm 124 a 


HK Air 
MBb 


43 

24.70 


HKLBta 2100 
HJOUH 2230 
MTol 1SXI 

Hum* 8BS 

HufcfiW 32.7E 
Hymn 2200 

JarinM a 70 
Siam B1S0 
JEN 3105 
KM Bus 1500s! 
MandOr 11 
KMIR) 2400 
FttDvA 38.75 
SHKPf 5200 
snmBr 1200 

Shelf 555 
StneO 1250 
S OMP 4 SB 
SHKCo 4.15X1 
8a4mA 00 
Ewua 905 
TekBl 31X5 
Wharf 3iai 
WMcck 1BS0 
WtagOn 11.70 
11.® 


+.101500 80S 
+155 raw® 
■K20 15.70 ID.® 
+105 52 3325 

+JS 87 37 

— 01 59 

+.® 14 &15 

+.® 2700 1800 
+.101110 1600 
-.10 1820 1000 

— 805 4.17 

-.75 ® 2800 

+00 131 BO 
+00 21.80 1100 
+50 8000 47.75 
-.10130010® 
+.15 900 505 

+ 1.25 8000 3505 
+00 2*05 14.® 
+.10 1500 1000 
+00 54 37.75 

+0SSJM3OJO 
-00 31.75 19.10 
+00 3005 la® 
-.10 17.70 12 

- ©610.80 aw 

+.73 42S0 2700 
+00 3305 1900 
+051310 7 50 
+2 B4SO480S 
+1 3800 2400 

+.10 2S 1£00 
+.10 I2JQ 900 
+S0 *250 21.10 
♦ SO 38 30 

♦2 77 42 

+00 1600 11 
+-20 415 175 
+.101540 90S 
-02 1® 190 
_ 7 80 173 
♦ISO 71 SO 
+.05 1100 S 
+05 35.75 23 

+1 41 25SD 

+40 2150 14 90 
+00 1160 1100 
+.10 17® 10.70 


30 8S 

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17 Z 
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3525.1 

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68.1 
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Baum +06 
31 
1400 
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MuPurp 3S2H 
788 3S8 

am® 605 


+.12 6S0 SSO Z0 
+00 3800 25 OS 

__ 1700 1X40 00 
+.10 1800 1X30 0.6 
+02 000 3® IS 
+.18 6S5 2SB 0.4 
+JH 605 152 20 
-.15 0® 5SO XI 


- SUGAPODE (JunG/SQ 


DBS 

Ff&Nv 

CURA* 


_ Inchcp 


SpraT 

SUB 

TMLaa 

UOB 


1100 
1800 
2SO 
344B) 
XB5 
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1200 
1500 
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3.70 
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—04 306 
+ 06 406 
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15 0.7 
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ZS8 12 
4.® XI 
8 IS 
11 IS 
60S 10 
ID.® IS 
1X10 20 
XI* ... 
xi6 as 
198 1.9 
645 2S 


= NORTH AMERICA 


TORONTO (Jui 6 / Can a 
4pm ckn 


AUSTRALIA (Jun 6 /AustS) 


AMoyi 4 
Amcor 8.44 
Ampah 408 
Anita X45 
Ashton 305 
ANZflk 4.15x1 
AiaOl 4.05 
AM 202 

^xy ’SS 

Bond 3® 
BanCp 005 
Bunas 1400 

SSni 301 


— 5SS 170 
+0711.12 X18 
-wlO 610 X7B 

— 1100 6 ® 

— 303 2.90 
-02 572 4S8 

— 4.61 *05 

+03 2S5 ISO 
+09 1660 18 

♦ 308 202 
-04 4.62 X41 
+05 108 0.94 
+08 1X08 1200 
-02 678 047 

_ 1.18 004 

- 5.03 352 
-.10 5® 4® 

+04 1632 1X80 
+05 X® 255 
-.02 305 200 
+03 12.30 630 
-.09 X70 4.12 
+02 675 400 
-.12 688 600 

— 102 078 
-03 058 005 
+08 6.02-4 
+03 102 1 

— 1.® 004 — 1.1 

+ 1*5 2® IS ... 

-02 301 200 


OS 

30 350 

1.1 

14 325 
25 — 
45 — 

40 

45 85 
10 200 
14 64 

50 — 

40 355 

2.7 — 

67 — 

40 166 
80 200 
30 — 

20 Z 

2.1 — 

4.7 — 
1.1 — 
64 — 
25 — 

! 40 244 


499590 MM) 
24660 flail® 
12800 HrCdB 
109558 MbtaE 
4155 MMRB 

300735 AicnAI 

208181 AmBxrx 
3350 Alcoa 
54075 Amor 
8900 BCSuqA 
21098 BCTd 
395200 BCE 
5752 BCE Mb 
9527 B6HA 
3847 Bmank* 
599094 BkManl 
415134 BkMavS 
31121 H— 
989® BntoftS 
61799 BcmVM 
1249470 Bmdffi 
282700 BrncnA 
10583 Bmccr 
■ TOKYO - 



+ / - Wad Lav 

iTb -4 Sift 174 
15$ -4 Slrf 154 
84 -1, 87 84 

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2DH +1* C 04 204 
84 SB4 UB4 
251. -4C54 25 
484 8 ® *94 

38 +A*SlB I t 374 

228 -4 237 228 


23570 CAE 
24700 CmOOfls 
7600 CaaOp 
5300 Cntfdfc 
38800 emotor 
4900 CambEh 
50550 Camew 
308964 Cartmp 
87230 ConOccx 
30535D ConPDC 
300 CbnTlr 
21855 CanTrA 
6473 CanUlA 
1500 CanUtB 
100 Ctator 
1500 CuTng 
303 CoCert/ 
500 Cabnx 
M CntCap 
7EOO CtoaOd 
81139 Comnco 
271085 CeraS 
1600 Coscon 

HOB® can 

32126 CmwM 
15900 DemiiA 

2800 Danan 
86552 OoMo 
836421 DomrT 
64217 Dombr 
10150 DUPRA 
16529 IXrtoBA 
17900 Empto 
61702 Echo B 
7300 Emco 
4103 EiaXm 
3400 fi?l 
37400 Fonln z 
5400 FBM A 
200 Fata 
8041 Fr Wo* 
3900 Fanrttf 
161fl ftKftV* 
8100 4Soani 
ram owns 
5000 Grow 
5100 G»6S 
16700 QoacC 
23200 GndBA 
21256 Centra 
96539 QUStr 
2S3® GiXCx 
800 HxSU 
3150 I ta lK S O 
11990 taaski 
39209 HandoOi 
50 HXnqr 
103958 HR) M 
10855 taraftm 
74963 EbdBav 
3575 IPL 
8880 bnascO* 
39526 anpOtl * 
542309 UlOl 
15 MMur 
1600 Inm 
7BB5D0 bnFta 
13575 IMUSto 

19400 tmstS 

9600 tatooA 

4900 JnlUCK 

1500 Kgnfld 
8 

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56707 1 iiiviat 
228C35 UeMH 
5300 IflnwA 
473595 LdawS 
1200 LMUh 
161000 MOCHIZ 
979 Msnfls 
50600 Mtti H 
1341600 MUtoOl 
73715 MacmBt 
77000 
18325 
8437 
70700 MSCdT 
3455 MUWld 
134650 MtMH 
122026 MtdsnAv 
59511 MDCre< 
3200 
52900 
716507 
15300 
31400 NntoaF ■ 
269157 Nnxtoll 11 
17231 ttaoC 
129181 NmTU 
988455 Nova 
400 Nouiscox 
50200 WratoE 
11500 Onm 
14300 OUanA 
15457 PlonMI 
98297 PtJCOP 
1564850 PWA 
38900 PsgniA 
1260 PanCnP 
21900 Paasua 
76134 petCanx 
B6070 PMEn 
480637 PDoma 
21135 PomCO 
7450 Pomfti 
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£00 ROTS 

200 Ramraix 

37003 I+HJ04 
2974 Ftoraa 
312® Ran En 
14S00 RetaP 
122170 RHMl 
13719 RioAtn 
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6% *7 BX 

68 66 065 

410 -8 410 410 
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27 +1 27 28 
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130 -7 130 Cl 30 
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38450 SRTX 
4007 StLWTA 

221350 ScwtH 
11600 BwnH 
702M3 Stagrm 
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29V +VS34i23V 
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M’bfeiii Hwy . . 

50m 

763 

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Nippon steel Carp — 

3.4m 

357 

-7 

Mlneboa . . 

42m 

807 

+17 

Fu$ Hvy Inds 

30m 

456 

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Kawasaki Steel 

30m 

403 

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Sumitomo Metal Ind . 

30m 

296 

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3.8m 

684 

-0 

MtsriOsk 

30m 

445 

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36 


FINANCIAL TI MES TUHSDA\^JUNH^7J9g4 


NEW YORK STOCK EXCHANGE COMPOSITE PRICES 


mt m n at bob 

Hgb Law Sand BM % E «i Wph lar QM* 

17% 14% AAR 048 3.3478 105 T4^2 »% 14% 


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4 1% Aflsen 6 k 16 2 1% 2 

49% 38% AkPiC 082 11 23 1760 43% 42% 42% 

39? 31 >2 Mrtma Frt 030 08 22 515 38% 38 38% 

26 19% Akgmtac 44 ?t7 25? 25% 25% 

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10% 9 AkmS 018 18 489 9% 


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101% 97EmchMPE 
19% 12% Swell 
10% 5%BwdiBr 
31% tew 
23% 18% Manx Co 
10% 9% EDKGram 
2% 2%EQKRadV 

S Z8% 21% EquKax 

2% 1% EquRflE 
38% 32%EquMHa 
8%Eanrto 
11% Bbyl 
14 i0%Ebnp*Fd 
1ft 8% Bnpffli 
17% 15% Enabler 
87% 60% Boon 


020 10148 187 16% 18% 18% +% 

006 17 10 1589 15% 14% 15 +% 

100 10 11 724 36% 39% 38% -ft 

104 60 10 364 25% 25 25 ft 

100 50 21 422 23% 23% 23% ft 

100 13 1297 48% 47% 48% +% 

100 15 32 5156 47% 46% 46% ft 

100 20 21 363 54% 54% 54% 

076 27 17 1266 26% 27% 2ft ft 

044 10 19 598 23% 22% 22% 

104 4.7 11 234 20% 26 28% 

O0B 20 7 319 18% 19 19% ft 

82 42 6% 6% 6% 

002 09 14 555 U2S% 24% 25 ft 

3 43 4% 4% 4% 

102 26 ft 6% B% ft 

73129 2% d2% 2% ft 
052 11 345017 16% 16% 10% ft 

0.12 10 52 B % 6 % 1 % ft 

106 20 16 1420 01 60% 80% ft 

047 70 Z10 6% 9% 6% 

IB 7.4 14 16 17% 17% 17% 

95 689 14% 14% 14% ft 

004 20 15 397 47 46% 40% ft 

108 11 12 22 21% 21 21 ft 

044 10150 1189 27% 28% 26% +% 

Q0B 3012 81 14% 13% 14% ft 

1050 24 10431% 431% 431% 

075 20 22 1902 30% 30% 30% +% 

012 03 25 162 44 43% 43% +% 

175 70 Z100 50% 50% 50% 

7XM 7.1 3 99 99 99 

020 1.4 88 1195 14% 13% 14% ft 

030 12143 4 5% 05% 5% 




14% ft 

5% 


100 16 12 533 32% 32 32% 

30 80 1123% 23% 23% +J 
1.10108 74 25 10% 10% 10% 
1.10403 7 5 2% cJ2% 2% 

002 22 33 2202 28% 27% 28% +* 
008204 0 174 1% 1% 1% 

1.14 13 16 87 34% 34% 34% +* 

Z 143 8% 8% 8% +* 

000 10 17 2067 11% 12% 13% +3 

075 62 72 12% 12% 12% ->t 

72 471 10%, 10 10% Jj 

IXM 80 28 10 15% 18 +* 

208 4J 14 8205 81% 61 51 -*] 


000 40 16 238 18% ift 1ft 
1.72 70 75 1340 22% 22% 22% 
005 1.7 16 794 22 21% 21% 

3371102 3% 3% 3% 
200 70 10 100 27% 27*a 27% 
OXB 04 16 3330 21% 204. 20% 
18 2082 23% 23% 23% 
080 10 1017448. 40% 39% 40 


20880 37 

OXM 7.1 8 84% d84 84% ft 

7XM 7.4 5 95% 095 95 -1 

21 252 15 14% 15 ft 

102102 6 233 15 14% 14% +% 

004 50 31 474 11% 11 11% ft 

013 1.1 9 2112 11%d10% 50% -% 
27 930 67 95% BB% ft 

18 1853 20% 19% 20% +% 


*0 +% 

a H 


Zft 18% Ctoytan Hm 18 1653 20% 16% 20% 

11% 9%QaffleaeG 007 14 2110% ia% 10% 

09 76DBW7.S8 * 708 90 4 76 05 78 

45*2 34% OevCX 100 14 7 248 35% 35% 35% 

BB 74 CMd B 7M 90 Z70 7B 77% 77% 

55% 47Ck»H l.BO 30 18 880 61 5tt% SI 

20% 32% CUfebd 030 10 11 72 24 23% 23% 

13 tQ%CKAbcaM 10a 91 5* 11% 11% 11% 

18% 13 CPoctmon 024 10 7 31 13% 13% 13% 

17% 13 Coral sn 0.40 Z4 17 1304 10% 10% 18% 

33% 27% Cent X 040 1.4 27 1992 29 Zft 28% 

44% 34% Coca C 176 10 3413994 42% 41% 42% 

19% 14 CncaBl 005 00133 155 17% 17% Ift 

23% 18% Court Ouki 015 00 19 199 17% 17% 17% 

23% 25% COhmn 21 128 Ok 28 28% 

65% 55% CctaPi 144 20 17 1942 57% 57% 57% 

11% 9% Otofcn 07D 67 36 10% T0% 10% 

B% 7% CdMdtiiH 000 70 42 8 7% 8 

7% B%CDknUI 070100 112 8% ft 6% 


66% 55%Cc4QPa 
11% ftDoknkn 
9% 7%CatoddH 
7% 8%0akntali 


7% Colonial M 006 70 


Zft Zft ft 

4ft c% +% 

17% 17h ft 
17% 17% ft 
28 28% 

57% 57% ft 
10% 10% 

a i - 




30% 21%OMae 232 73 9 553 29% 29% 29% 

45% 3ft&)HCA 012 00 50 7598 41% 40% 41 ft 

24% 17%Cttnllcg< 008 1.7 10 299 21% 20% 31% 

30%25%Cdrarta 108 4.2 10 1177030% 305 b 30% 

25% ISCmdnmcx 068 25 IS 471125% 25% 25% ft 
28 21 Canon IM 048 20 13 78 21% 21% 21% ft 

3% 3Cemmodm 0 510 3% <0 3 

28% 23% CMmEdT.42 1.43 17 Z100 25% 25% 25% +1% 

25% Zl*2 cotmren0 100 U 9 2Z% 21% 22% ft 

20 23 GMnddZDO 200 14 3 10 24 23% 23% -% 

ZS%22%CaBHEd 100 14147 2299 25% 24% 25 ft 

19 IlGonnuiFSrOlB 20 24 514 14% 14% 14% ft 

119% 72% Compaq 2020125 115% 109% 110% -1 

1% %Gan«Rbn 1 37 S 8% It 

44% 27% GrapAn 000 05 2D 8970 41% 41 41% +% 

44 31% CrnpSd 25 1071 43% 43 43 ft 

9% B% CcaaoTSp OIO 1.1 3 34 0% 9 8 ft 

30 20% OmbM 074 11 13 2353 24 23% 23% ft 

29% ZS%OiA7a 072 20 172655 29% 2B? 29% ft 
31% 23%CUnctBQx 1.48 10 13 21 24% 24% Z4%+1J4 
23 20 emmet En H0D 19 18 84 22% 21% 22% +1.43 


20% 12% CormerW 

71% 57%Ooaf40S 405 70 

32% 28% COnsEd 2XM 7.1 


75 62 Cans Ed Pf 100 7.7 


1 2701 15 

405 70 2 60 

2XX) 7.1 10 2733 28% 


3 sr 


2S% 2T% CraFft 28 1807 24% 3ft 24% ft 

47 38% CnaNKi 1.94 IT IB BOD 38% 37? 38% ft 

88% 50%CnMx 100 24 191897 55% 54% 54*2 ft 

20% 13% Cans Stem 151303 14% 13? 14 

60% 49% Branco 050 00 5 1484 5B% 57% 57% ft 

80 53% 0*W 4.16x 4.10 70 2 82% 652% 52*2 -% 

100 S0%r7M5x 7.45 80 4 90 90 90 

105% 87CWP7.B8* 708 18 OB 89% 86% 89% +1% 

12% 7%0MM<«e 25 288 10% 10 if 

50% 49? ConflkPfx 176 70 2 49% 048% 4 

27? 27CDNBkPUjr 205 84 106 27%®? 2 


4? 3%FNkMf 107 
16% 13? FTDevtxix 1.12 
19% 12%FeblCM 112 
38%35%Fidddl 300 

8 7% FaadMlx 140 
ZI? 19?FMikK 

7% 8% Fail Drag 120 
81 4B% Fad Fhr In 1,04 
33? 44% FnKUTSx 208 
29% 23 Fad RIy 1JE 

ftFMdn 140 
77? 83%ftdBq) 

37% 24% FBdMgi* 148 
89% TSHFadtOI 2.40 
27% 20% Fad’Bd 100 
21% 17FadHriSg 042 

=5% ZO%FnDqitSt 
35? 25 Farm Carp 164 
34%04%FklCm 
8? B%HterMk 008 
3A 25% Rnpbtut 118 
39% 35% FkSAffl B 1.60 

39 Z9% FkSkSx 1.18 
9% 7% FtntBadk 172 
9% 8% Fat Bu Six 001 

37% 32% ft* and 102 
99 WWDittPB BflO 
51% 48% FcChACPCx 300 
101% 99% FfCHacpC 000 
85% 41% MCHfl x 200 
47% 42% Fan 109 
37% 33? ftt Ftt 21 x 115 
19%11%ftatRX 108 
6G*a 51% RdtRnMx 110 
85 62%ftM 100 
17 12% MM 030 
23%lB%PdPHF 1TB 
4B39%ftt(JrtoX 1.60 
53% 51 % Hr* U PI 303 
10% 8?FiUnR 140 
30%32%RntVfeg 108 
35% 29% FkafflrCo 100 

40 31% HeatFx 140 
28T8%ftMdBg 050 

Z7%23%ft»0k 100 

44% 33% papmay 140 
33% 2BFbftgx 108 
20% 16% Honan 179 
58% 40%ftnr 002 
50%48%nBCp 
7% 5% mCGd 10s 

48 41 % food gsb 100 

17? 12% FooOd G 120 

70 53% Fion) 100 

no? 0 Fbm 100 

46% 32% FodWh 174 

1ft 11**Fonmy*r 008 
30%27%m.x 108 

1ft 10% ten to 104 

9 SFtwUPr ISO 
5133%FtB8dRs 10! 

«%sar . 

5? ftftHrafi 105 
46% 37% PnesMcMPt 1.88 
21% 18% MUM 105 
27% 21%PrtW4A Oil 
24% 21% tenQi 0.76 
S 23FiUxm 
78% SOfWnEn 068 
1E% iftFatuaSaqr 006 


10 48 56 3% 

70 04 14% 

00 Z7 223 14? 

14 7u30% 

54 25 2 7% 

992 298 17% 
20 15 311 7% 

1.7 14 2733 uffl 

01 10 47% 

U 43 382 25% 

70114 290 7 

25 874 75% 
10 271820 31% 
IB 11 5195 96% 

4.3 06 Z38 Z3% 
23 16 316 18% 

18 3714 22% 
10 15 112 29% 
10 TOO 24% 

17 33 21 9% 

00 17 789 28% 
40 10 1410039% 

10 19 822 u39 

11 210 8 

13 24 B? 

00 14 191 35% 
7.1 B 85 
70 2 48? 

07 Z100 97 

18 6 2338 55% 

30 10 1327 u40 

80 30 u37% 

03 258 14? 

00 27 801 GB% 
17 12 1475 91 

1.9 60 1241 15% 

14 529 22% 

14 10 1604 47% 

74 9 53% 

56 8 IB 7% 

12 11 292 040% 
16 10 875 33% 

15 1« 25a 30? 
14 15 3908 20% 
40 28 1786108% 
10 19 812 39% 
70 12 922 Z7% 

4.4 17 251 1B% 

1.0 28 2129 84% 
43 201 48% 

10 7 73 G% 

19 18 32 42% 

14 13 70 14 

30 40 8818 57% 
90 8 IS 

10 23 639 38% 

11 15 20 13% 

54 13 3962 31% 

14 79 10% 

70 190 8% 

00 18 1263 40% 

15 464 39% 

10 10 5 % 

1.1 9 rtOO ft 

44 3 ‘42% 

7.1 20 2460 17% 
20221 980 24% 

11 7 143 24% 
ID 4815 28% 

1.1 S 26 85 

15 398 15% 


31 31% ft 

84% Bft ft 

23% Z3% ft 

18% 18% +% 

21? 22% ft 

28? 28? ft 

ft 

25% 25% -% 

a -s a 

a a 3 

35% 35% +% 
PB4 U 

49? 48? ft 
S7 97 

^ ft 
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57% 67% ft 
90 90% ft 
15 15% +% 

S A S 

53% 93% +% 


33 33% 

39% +% 
20% 20% +% 

St Sty 

2G? 27 ft 

17? 19% ft 
53% ^ +% 
47% 47? ft 
05% ft 

St A ^ 


13% 13% ft 
ao? 31% ft 
10% 10% 

J% 8% ft 
39% 39% ft 
36% 38% ft 
ft 5% 

4% 4% 

42%. 42% 


as 


ft 

24% _ 


84% 04% 
14? 15 


37% 25% CaaiBkx 


000 16 9 1978 u37? 37 

100 16 7 1888 18% 17 

104 14 843 0% 

101110 413 11 10 

1 656 4% 4 


2B% 18? DsdCpx 100 16 7 1888 18% 17% 

10? BVComWs 104 14 6(3 0% 9 

11% 10% 0*1* H PI 101110 413 11 ID? 

7% 4%CaMxCaffl 1 S36 4% 4% 

1? ACnoparCoa 1 292 1% 1% 

52% 35% Caopki 102 15 13 2309 37? 37% 

23% Z3% Cooper TM* 002 00 21 1500 26% 26% 

15% 10% Cora kid x 124 £310 116 1(ftdt0% 
27%24%Crabtx 100 40 10 2S51 u27% 27% 
34%27%C0nkMx 0.88 21460182 32% 32% 

10% 12% CdUdlr'nn 112 19 S2 12% 1Z% 

19 13% CPUBy CT 132 10 8 5712 17*2 *B? 

11% 7% Country W 004 10 50 418 B% 8 

18 15% COOSMPr IBB 10 38 201 17? 17% 

12? H%Cndg 6 34 12% 12% 

29% 24% Qni O0S 29 15 422 28% 25% 


18 15% CoufeoPT 
12? 11% Crab 
26% 24%Qaosx 
17 14% Odtord 
33% 19%&8»lb 
49% 3S%Oafn 
12 9%OM 


26% 29% ft 
«0Jz 10% ft 

SS4 

Iga 12% 

16? 17% 

8 8 


000 11 14 22 18% 18 
9 767 21% a 
100 U 14 658 1)49% 48 
1.16 10 5 13 258 11 10 


H% ft 
16% ft 


58% SOGATX307S 
44% 38*2 GATX 
57%51%e8C0x 
11? 7%GRCkd 
3ft 29% Gilt 
33% 2B% GTE 2475 
19% 1S*2GTBF10B 
12% 10% GebaBEqx 
36% Z8% Bator 
15% 11%UDdbUN 
4% 1%MrHda* 
59 50tenttx 
40% S7?G«to* 

36% zftaccm 

11 ? liGaotoll 

Mflg 18% Gerakdi 
16% IZGnwrp 
22% 19% GnAftw 
57% 3SSdto) 

55 46% terae 
ff? 4% Gan first 


300 74 21 

100 17 13 399 
100 10 13 G2 
18 57 
1.08 50 31 7943 


188 17 16 82 
1.70 140 27 

OXM 2.7 5 121 
102 20 19 880 
048 10 261233 
42 44 
140120 77 

130 10 7 9G 
000 40 9 61 
112 00 <01 
140 30 3 «B 
144 10 915400 
008 60 2 124 


52% 52 52% 

40% 40% 49% 
63? 53 E3 

71 % 11 % 11 % 

32% 31% 32 

28%d28% 28% 
17% 17% 17% 
11 % 11 % 11 % 
32% 32% 32% 
12% 12 12 
1% d1% 1% 
62% 61? ffi 

HiKK 

n% n% n% 

19 10% 18? 
13% 13 13% 

21% 21% 21% 
44 43% 43% 
49% 48% 48% 
5% 5% 5% 


8% 6% GtabMYU 044 
49 37% GWtAi 130 
4ft 3S QddcDx 120 
51% 4ft GaodmlSx 150 
4ft aft&tjrar 190 

140 

68 5B%&ogiW 000 
27% 22%GMPT 000 
17% 12%todBEu 124 
B«tlltoC 138 
4ft 358M)ln> 120 

20% i5%Gawb 002 
31% 2ft tots IBP 2.12 
tri 43 tom ter 150 
17% 12GRtolEnox <*28 
19% 14? Grew 128 
12% 9% town to <*15 

40% 19QTTMDR 
18% 10% tanlnm x 002 
24% 20%G>dfaraM 000 


ih rr tk 

ft E KXM dpb in 

20 « 41 11% 11% 
14 17403 56% 55% 
10 2317524 32% dSI 

1.4 a 0244 35% 34% 
22 9 1839 36% 35% 
60 10 1053 28% 29% 
10 14 1342 122119% 
28 21 290 32% 31? 

BB 5B0 49% 48 

1 434 ft 3% 
27 Ml 17? 17% 

2 140 9 5? 

13 19 672 34% 34% 
30 1937 30? 30% 

2500 1555 64? 64 

70 Z2D 100% 410ft 
10 ZOO 96% 08% 

1.7 Z7 3421 uSi 50% 

10 29 94U15% 1ft 
46 141 11% 11% 

10 711 9% 8 

14 19 25 14% 13? 

14 160 11 10% 

14 9 112 B? 8% 
10 35 3229 68? 68% 
0 005 2 m? 

50 11 8320 16% 18% 
34 27 8 11% 11% 

7.7 620 5% ft 

90 ZS 9% 9% 

35 3828 4% 4% 
13 231 7 B? 

07 9 998 40? 40% 
40184 233 4ft 45% 
7.1 7 49% 48% 

21 11 2072 39 37% 

84 318 11% Vih 

13 2B SB 43% 41% 
10 23 745 BB? 68 

13 54 1ST 24% 24 

T0 158 14 13% 

17 143140 Sft 54% 

14 B 8 38 37% 

40 97 B2M 19% 18? 

7.4 13 33 28% 29 

00 18 1077 80% 59% 
12 14 22 13 12% 

10 21 194 18% 18% 
10 110 10? 10% 

4345 29% 28*z 
20 10 73 11% 11% 
20 14 16 20% D20% 


am 

Cfara PrE 


4ft Jj 

A 

8 -*i 


: 19? 14% K80 Hears 198 11 101 15? 15% 

95 4SHKTdADflXl02 11 20 1247 56% 5ft 

lftl3%«Pn*» IXM 70 17 15 IS 15 

S% 2%Hadsm 1 37 2% 2% 

34% 27?HaMnx 1.00 30 22 2190 32 31% 

5% 2% IkdWDad 1 71 2% d2% 

10 7? fTcodtFtO 002 30 32 B3 0% 8% 

17% idglfcockfeB 1X9 80 19 29 15% 14? 

24% 19% Htockjota 105 10 27 37 20? 20% 

14 10% Handsaw) 1« o id 874 10% 010% 

1ft 13 Handy Ham 020 1.4 22 83 14% 14% 

39% 32% Hama 175 10 26 BG9 39% 30 

26% 19% Hsnraftxdx 138 1.7 19 1237 22% 21? 

4% ftteranwt 154 1% 1% 

22% IB? Haraeo ADR IXM 14 18 4192 1B% 19% 

38% 3ft Kfft&i 000 IJ 18 1GG9 38% 37% 

24% 21%Hartmd 195 4.4 13 489 23 22% 


30% Kfft&r 000 IJ 18 1EG9 38% 37% 

21%lbrtmd IBB 4.4 13 489 23 22% 

43% HlrtayDw 124 15101 678 48? «% 
„ , 2ft Hannan kit 17 27 27 2B% 

25% 18*2 Handp 140 20 29 850 20% 18% 

52% 41% tens x 1.12 20 10 1180 48? 47% 

' 39%Knco 1.40 13 12 251 42 41% 


52% 4l%tertax ... . . 

48%39%Kbscb 1.40 13 12 251 42 41% 

53% 43? fbrtfd am Z12 40 5G 144 46% 45? 

7% 3? tevn 100 11 33 121 6% 6% 

18% 18% Hama 104 13 17 17% T7 

" 1 30% tkmaflrmB 202 70 11 115 33% 33% 

1 27%He*fitrCl 108 6.1 19 428 32% 31% 

SHatoEqa 196111 16 IS 09% ft 
4%M0ibw 106 10 15 83 5 4? 


ft 4%MBrknaga 006 10 15 83 

16% 14tedBte 102 80 13 538 1. 


34% 23%Kaato8) 
34% 28Mwuea 
15 9% HacttM 
38% 2SHedBklay 
3ft 30% Hake 


28 1324 33 
IS 272 32 
OXB 00 211891 10 
124 00 28 USD 
102 30 15 2550 35 


29%22%teanaCW 004 18 17 218 


30% 24%HduP 
121% 96%Hmtax 
5ft 41% Kohey 
93% 74 Haute; 


050 20 25 477 25% 25 

224 20 22 1128 110109% 
120 2B 122138 44% 42? 
120 1015 2513 79% 78 


4% 2% Hanl&p 144130 0 30 3% 3% 

0% 4% WSbnar 14 37 8% 6% 

9 7%WxtmA 118 10 1S33SO U9 9% 

6% 5% Itotax 150100 311 6% 8 

7 BltobOx 003 90 388 8% 6% 

0% 7% HI YM Inc 007 1M 109 B 7? 

9% 7%«YWP1SX 007100 109 ft 8% 

13% U%KDrafllH 148 18 20 190 12% 12% 

4ft 3ftMBBXra 057 10 172475 32% 31? 

22? lfttem 9 219 19% 15% 

74 51% HKonHx 120 20 24 1384 54% 53 

105% 72Httol IXM 10 S3 90101% 101 
7% B%HckwnkK 381 67 7% 7% 

46% 29% fhraDapx 116 14 44 8222 45% 45% 

1ft 9% Mom Shop SB30E3 10% 10% 

24? 17%MadMr 000 1 1 48 4649 18% 18% 

1% 1 HnapbMtg 006 40 0 58 1% 1% 

37% 27% Homan ADO 02E 17 79 132 38 35? 

35*2 30% tenol x 190 10 13 810 32% 31? 
28% 22% ItEManGd x 009 10 10 151028% 28% 
2ft 1ft rtorzn tel 29 654 25% 25 

22% 19% firmer 150 24 IS 888 21% 2ft 

15% 12%HnddB OXM 04 33 2999 13? 13% 

13% 8% IMIV 008 28 24 7230 10% 9% 

2% 1% HoM few 3 230 1% 1% 

53 38? HOAhfcxi M 006 10 21 71 47? 47 

ft 4% Hows Fd) 048 90 2 1GD 9 84% 
36% 28% Will 100 14 131107 35% 34% 
27% aftterdlDp 208 80 2 Zft aft 

13% 10% Hcnal 118 10 24 10 10? 10? 

1711%tabqnFda 112 17 18 7721117% 18? 
19% 15? fiXTyCorp 004 20 81 93 17% 17% 

32% iftHughaSop 020 18 20 85 24% zft 

22% 16% team 1405717 35 3388 20 19% 

18% ift HnrtUpC 008 20 16 B 15% 16% 
11% 5?tebi0daa 135 50 11 137 9% ft 
iHypartDax 096117 TOO 9% 


4J * 

9t 

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26% 22% BP Inc x 
10% B%KHRwm 
31% Z1%P1ta 
11% B?FrPmpb 
5 2%CFib 
30% 22? KbaaPar 
40% 33? UnCDip 

ZB Z4%B>w4.4Z 
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28 23dM09 

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52% 4SBPI804 
38% :T!% KBObOl 
47% 39 VhMPA 

SZ «9>wm 

22% 18%BH> 

50% 44IQ 
49% 32%9KFM8 
11% 0% hmM 
19% 19HAkmatX 
29% 21%lnco 
97% 8BMUP70BX 
sn, ighcwrtr 
23% ifthdEmrpy 
21% 12% kidmted 
15% 12% hdraan 
41% 32% bgRnd 
37 % 29% iddSt 
9% 7% MrSyst 
Zft 18%kOE>tox 

48% 4ft WwxnRl 
9% 4%kMkS 


000 00 19 1389 28% 2ft 

10 77 ft 8% 

208114 3 260 23% 2ft 
004 10 13 1220 1ft 10% 

32 220 2% 2% 

10B 70 11 205 24 23% 

20 8404(1% 39% 

221 10 no 24% 024% 

178 88 Z100 43 K43 

2XJ4 80 It 00 23 UZ3 

110 84 7 25 25 

4.12 80 12 47 47 


26 -.18 

8 % -% 

'ft +% 


20% te%kibn3rax 

3% 2% Hate 
64% 5>%89l 
22% UHPne 
39% 35%Hff 
1ft iftMut 
77? 8ft MRap. 

34% ZftHprlbx 

11? ftimnun 
sft 24% knsPw 
5% 4% WAN 
34 20% bSansT 
1ft iSkrtRaoi 
3% 2 ktTbJro 

50% 42% Ionics 
24% 2D%kMlG8E 
35% ZftlpdcoEnt 

11% ftkMkm 
12% 9% My Find 
3D 22% MCDip 
104% Bft ITT . 


zxh 80 noo 23 an 
110 84 7 25 25 

4.12 80 12 47 47 

004 20 16 8B2 38 35% 

300 70. 13 40 038 

ISO 87 4 082 52 

180 30 203091 20? 20% 
202 81 13 234 4B% 49% 
IXM 12 17 1530 34% 33? 
000 40 3 71 10% 10% 
102 8.1 72 1ft 1ft 

0.40 1.0200 1004 25% 2ft 

i 7XB 11 noo 87% 87% 

106 80 396 25 24% 

1.02 12 14 57 20 1B% 

105 00 488 15% 15 

13 235 1ft 12? 
170 10 23 2797 39% 35% 
D0O 10 41 1261 33% 33 

125 14 5 7% 7% 

120 10 IS 41 20% aft 
100 30 10 271 4ft 4ft 
15 290 ft 5 
2 114 S a? 
004 20 4 14 24% 24% 
108 87 34 18% 18 

2 44 Z% 2% 

100 10 19917 63*2 61% 

22 29 18 18 

108 2.7 24 3798 D40% 39% 
000 40 22 307 18% 18% 
108 2.4 29 1968 71 7D 

008 1.7 19 063 321. 32 

112 U 3 5 ft dft 

2XB 82 15 13 25% Zft 

0 282 5% 5% 
112 00 25 4042 23*4 22% 
55 58 16? 18% 
30 692 2% 2% 
22 121 45% 44? 
1J3 11 11 302 21% 21% 

2.12 50 15 429 30% 30% 

107 18 64 ft 9 

107 17 229 11% 11% 

90 1 245 u31 30% 

108 20 11 1082 85% 84% 


S3 

39% 


1ft +% 
13 +% 

»% ‘ft 

A 
s% A 


■s * 

2ft ft 


4ft S7% JRWorfT 
49 39% JHIWL 
14% ftJackpMBr 
28? 19% 0mM Ena 
14? 8% JsMBGr 


14% ft JaoOlc 
50% 43% JaflP 
103 99 JnyP70& 

91% 44? JbMOix 
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20% 20% 


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110 13 31 383 30% 

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102 50 7 57 22% 

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188 70 220 13% 


170 12% 11? 12% 
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S8 19% 18% 19 


38% 30% 

^ % % 

8? 10 ft 

7% 7% ft 


270 13% 13 13% 

407 10% 18% 10% 
SW 7? 7H 7% 

25» »% 8% 


9% 8% ft 

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0? 58% -1% 
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Bfi 73 nariimn are 13 tjr& 7? 7% 7 % 

71% 61? Qumo 112 11 is 2343 89% B 8 ? 68 % 

1*5 12 % Quaker St 140 ZB M 351 16% 15% 1 ft 

Qmmx 158 20111 223 20% 20% 20% 

24% 21% teaWXD 100 40 111 u24*s 24% 24% 

ffl -J? 1J0 47 238 <2*2 12% 12% 

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39% 24%QofckFtyx 049 10 7 4» a 27% 27% 


1 Myra LEX 122 20 18 7 1ft 
1 Mytei Labe no as ZI 1983 21% 


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11 11% ft 
42% 42% ft 
10 % 10 % 

20? 21% ft 


8 fttUlNb 
27% 21%nJCap 
15 9*2R0C1Unn 
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18% 13% teeorp 
48% 33*1 RbMP 
40% 33% Haydn 
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42% W% ITwWddh 

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28 241009 
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38^2B?ISte 

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24? 15? NtSrai 


14 7%lte9bnd 

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30% 27% HO Ba 
18% 14? HefnanMor 
10 7%WMikEq 
24% 17% NambPw 
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27% 22 te Jay Ri 
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008 10 45 2B6a5ft 57% 

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172 20 7 3 2S? 25? 

132 20 10 3174 1ft 12% 

104 30 12 3832n57% 56% 

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104 40 14 401 31% 30? 

129 327 18% II 
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100 14 10 504 10 1ft 

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230 14 12 1828 36 35% 

112 10 485 12% 12 

102 12 14 69 24% 24% 

103 5 0 25 299 23% 22% 

200 17 12 5H 2ft 25 
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148 10 33 4340 39% 30% 
117 13 10 877 53% 52? 
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000 1.1 18 1085 18% 17% 18 

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508 50 18 2014108% (08 108 
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a*5 10 21 12S5 28% 28 »% 

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FINANCIAL TIMES TUESDAY JUNE 7 1994 


37 




NYSE COMPOSITE PRICES 


NASDAQ NATIONAL MARKET 


4pmcbse-***6 


»% 2612! 


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1MM Oft % E HOB 

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028 09 15 2B29 33% 32% 

23 0 6% 8% 

0.1! 03 73 578 37% 36% 
0 10 0.7 13 60 14% 14% 

1.7 12 230? 48% 47% 
133 24 23% 

— 74 107, 10% 

16% 13% SatfM am 4.4 7 Z100 16 18 

16% 15% 54BC1.4825 1 1.46 9.1 10 16 15% 

31% 26% Sevn 156 1 X 40 5485 u32 31% 

29% 23£«0»aEa 34 407 26 25% 

31% 2S%5ceMM( 21 17 28% 28% 

55% 42% Sosflx 1.56 12 8 8163 51% «% 

13% 11% ScSBKSel 0M 6.8 92 12% 12% 

39% 28% Snsmnst 022 17 30 3333 2ft 29% 

39% 27% SequA 160 IX 5 163 31 31 

40% 28 SequaB 150 19 17 40 33 % 33% 

26 22%SenCp 142 1.7 20 1422 25% » 

28% 22SNU 032 17 13 404 24% 23% 

25 16% Stmv M 022 1J 22 3972 18% 17% 

26 19% SmmutM 080 13 22 3976 24% 23% 

14% id% 9abrlH 138 17 22 21 3 10%<|10% 

67% 56% 3w*Tr 107 49 29 311 63% 63% 

096 19 17 1415 32% 31% 
II 2464 17% 15% 
110 05 23 445 20% 20% 
1.12 5.9 II 127 19% 18% 
1 II 7% 7% 

1X0 23 13 1020 42% 42% 
28 2856 22% 22% 
1.03 86 34 15 12% 12% 

115 2.4 47 640 6% 05% 

148 2.7 16 148 18 17% 

106 1J 18 27 4% 4% 

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116 2080 015% 15 

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1.12 42 1891 Z7% 25% 


18% +% 
24% +% 


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35% 29% Sheriff x 
25% IftShoneys 
22% 15% teawtaat 
17% StoraPac 
8 5%S%n*CD 
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26%2D%r 

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24% 17% Skyline 
5 3% SLtrekx 
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32% 28% SK9cM 
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19% l2%SteMip 


053 2J6 13 381 20% 19% 
22 % 


150 12 18 44 23% 

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124 IX 25 1233 20 19% 

28 851 37 28% 

1.08 18 9 2080 26% 28% 

147 08134 39 59% 58% 

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46% 40 Sourca Cop < 3.60 17 72 41% 41 

«% 33% SoMCaS* « 150 7.4 *100 34 31 

24 iftSHJertetfx 1.44 72 12 12 19% 19% 
150 24100 446 21% 021 
1X0 1 3 10 37 19% 18% 

068 12 9 477o21% 20% 
1 18 12 6 5383 19% 18% 
1.65 58 11 131 29% 28% 
1.78 14 57 329 33 32% 

004 CL? 34 7963 38% S% 
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134 15% 15% 
162 25% 25% 
97 9% 9% 
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112 17 51 16% 16% 

130 48 11 85 30% 29% 

180 26 2710215 38% 37% 

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14 Sta Cnmm * a40 27 7 104 15% 14% 
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112 18156 290 9% 9% 

184 23 13 465 27% 27% 

08B 21 16 23 26% 36% 

180 10 19 127 33% 32% 

44% 36% SMWk 1 36 14 19 142 40% 40% 

38% 37% SUrBre 1 40 17 184 38 37% 

168 10 20 2 22% 22% 

184 14 
180 22 7 
120 28 6 


30 zTStown 

22 17% scant 

21 i8%aMacp 

22 17% SMS) 

33% 26% SocMGE 
38% 28%SKTd 

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18% i5%SoutfMEnmr 124 IX IS 
30% 23% SaaKWnPSy 220 88 10 
12% 9 Spafei Fund 148 48 

7% 5% Spawn Cp 
18% 14% Spheral) 

39% 29% Spring, 

39% 32%SprM* 

18 13% 991 


?1% +% 


S ftsanTacU 
26% SUM 
30% 24% Stands, 

37 3i%Stanbom 
44% 36% Sum 
37% SUrBRS 
25*2 21% Sanaa 
11% lOStatataUi 
29% 24% SUJFarUfc 
7% 6%SM0cip 
8% 3% StarigChan 
35% 2&% SolpSMra 
10% 7% SOM Fin 


61 10 dIO 

382 26% 26% 

12 7 6% 

106 19109 312 9 8% 

27 1072 34% 33% 

112 IS 4 3 9 8 

! 27% SUM&mfi 160 I.SSS 45 33% 33% 

18% 9% Star* CM 171 48 31018 IS 14% 

Z7% IftSfcpShOO 21 639 14% 24 

16% 13% SDEqu 084 14 17 411 18% 15% 
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118 05 22 1186 33 32 

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27% 15% BymbclTec 
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50 438 25 24% 

120 24 10 2 8% 8% 

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104 4S 1Z974S7 23% ZZ% 
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12% 9% TjrausMur 072 71 51 10% 

22% 18% Teen Energ 1.01 10 15 06 20% 

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20 7100 3% 

180 4.4 82 1111 18% 

185 25 8 3144 41% 

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1.00 2 1 39 1390 48% 

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8 e%Tan*QFd 0 60 16 1350 7% 

55% 45%Tnraco, 1.60 3J 18 146« <9% 

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31% SftTeraflyne 25 943 2S% 

9% 5% Tara UK 1.0 0 53 5% 

8% 6% Tairrfti*r i DM 1 0 24 614 B 


77% fllTTW 
13% 7%T7HnWI 
39% 22% Tarwm FE 
7% 5%T4KyM 
12% IOTAvM 
44% 34% TnOnfo 
15% 10% lunriBm 
49% 30% Tandy 


33% 23% TMjm 
4 2% Tefccm 
28% 14% TeBjn 
46% 34% TeiaEgpSA 
16 aT%Te*no 
54% 43% Tn^Arii 
30% 19% Tanphfinw* 117 17 
8% TarnpnSca x 180 IB 


20 288 11% 
3X0 51 14 4715 83% 
3X3 64 5 SO% 

0X0 06 43 333 35 

072 09 16 8380 B3 
140 XI 23 34 18% 

306 9 4 19 33B 32% 
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1.40 26 12 11B0 54% 
237 100 u4% 
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128 19 179 30% 

0 .12 03 23 2113 40 

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0.40 25 41 155 15% 
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23% 19% TUwtl 0® IX 33 4729 20% 
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51% 50 Traacn Ca 

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16% 14 Tnrteca 060 4.0 10 5® 15% 

14% 12% Traetra R 5 20 14% 

17% 11 Trastoch 124 1.8 11 33 13% 

43 31% Trolr 180 IX B11IM J3% 

15% 13% Tredegar 0X4 IX 15 7 14% 

37% 34 TrtftnC-5 250 7.3 15 34% 

28% 15% Tim 11 741 19% 

64% 55 Triune 1.04 1 8 22 1226 58 

24%^% TriCon 178 33 374 22% 

47% 33 Trrtly 0X8 1.8 221782 38% 

® 31%Tmon 1® 2.0 91 528 35 

34% 24% Trtln 010 03 59 B06u34% 
3% Tucson Q 29 2204 3% 

TunraCrp 0X8 38 32 310 5% 
14% S%TurJ**h 112 12 IPO 3 
28% 14% Ttfh Cert 064 41 3 3® 15% 

21% 18% TnArDtsc 170 3 5 18 4 2D 

55% 44 Tyco L a® 08 27 427 48% 

10 BTfOaT 110 IX 4 452 8% 

bh S Tyler 7B 20 5% 


41% 41% 
23% 24 

30% 31% 
22 % 22 % 
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23% 23% 
54 54% 
54% 54% 
15 15% 
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13% 13% 
32% 33 

14% 14% 
104 34% 
18% 18% 

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37% 38 

33% 34 

33% 33% 
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15% iS 
20 20 
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29% 23% UJB FW 
8 5% IBS 
51 % 47% U5FB6 4.| 

38 20% USE 
29% 23% L6T t 
51% ®%usxcuwr> 
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11% 8% IK toe 
27 30% 1M& he 
17% 14% LMM i 
74% 58% Urtvr 
131% 101 Ul«V 
50% ®%UnCanv« 
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13% 10% UranCwp 
54% ®UC3Xa 
67 56130 4.50 
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87% &5 %UOk 
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22 16% Ununtaas 
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18% iQlHsys 
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41% 29% UIdASHt 
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16 Von Cos 
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20% WMS M 
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AMEX COMPOSITE PRICES 


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BaPgart«rkl73 17 
BflUwTA 0X4 30 
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129 12 

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0X8 22" 5 12% 12% 12% -% 

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1X4 25 508 10% 9% 9j 
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C omma 130 
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CrassATA 0X45® 200 16 . _ 

Crown C A 0® ® 14 19% 19% 19% 

Crown CB 1® 15 6 18% 18% 1B% 

Cubic 153 81 6 18% 18% 18% 

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13 360 1 n a -i'e 

30 72 18% 18% 18% 

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50 2«i 4 A 4$ 

10 ?67 17% 16% 18% 


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EasmCnx 1® 15*100 15% 15% 15% 

Easproup 1.722B5 *2 20% 20% 20% 

Echo Bay 107354 2882 10% 10% 10% 

EctPEnAx 130 10 13 12% 12% 12) 

EdtetoRs 6 JO 8% ft 

Ban 15 OT1 36% 35% 35 

Engr5en 
Epmpe 

Fab Ms 064 12 *100 34% 34% 34% 

Rib Ax 320 IS 5 7* 74 74 ft 

fttOtyfinc 020 14 7100 11% 11% 11% 

FUd IX 0X2 74 12 2ft 29$, 29% *% 

FOrest La 28 1038 «% 45% ®% *1% 

Frerpoey 2 4 3% 3% 3% 

Cam 
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170 34 165 16 1 5% 15% ' 

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134 22 207 3% 3 1% 3% 

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PWLD 

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104 

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Mmurf 

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12 

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Wesaner 

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040 38 1385 

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Unw Oats Ctng 

11% 11% 

24% 24% 

69% 70% 

37% 37% 

20% 30% 

14% 15 

1.1 1% 

30% 30% 

6 % 6 % 
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2.10 10 
16 


23 36% 
77 IB- 


081 13 343 12% 

21 67 3$ 

0X0 53 5 9% 

036 63 485 42% 
71 465U15 7 » 
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0XP21 6M 

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10 Z3 1% 
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13 19% 
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107 TO 
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ft ft 

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15% 15% 
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15 15% 
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« 1® 4.', 



GET YOUR FT HAND DELIVERED IN COPENHAGEN, 
AARHUS, AALBORG, ESB JERG AND ODENSE. 

If you work in the business centres of Copenhagen. Aarhus. Aalborg. Esbjerg and Odense we ‘11 deliver your daily 
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ASS ins 
ACC Ootp 
AcdafcaE 
Aram Ws 
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ARrmax 

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AflenOty 

Aten PT1 

AUQpl 

Aid Cap 

AkmeC 

ABaceM 

Mara Co 


Pf Sh 

DU E TOM Itgn 

0X0 20 4 15% 

112 89 518 18% 
2415479 18% 
io 190 a 
28 2 20% 
1711188 18% 
ADC TUB 331498 42% 
Adrthotan 19 4 14% 

AiM Screw 118 22 2DS 36% 
Adobe Sja 02SZ32759 29 

Advance C 8 1423 12% 
Ad, Logie 8 74 4% 
AdePotpo 7 74 5% 
AthrTcKra a 229 15 

Adwama < 120 191857 39% 
8 985 12 

221255 13% 
110128 830 11% 
120 14 ZB2 22% 
2X4 19 138 55% 
38 3902 27% 
0X8 17 807 25% 
1b 84 8 

052 15 11 108 
8 412 10% 
1X0 12 1® 14% 
180 12 114 14% 
132 Z1 134 3% 
106 9 463 1% 

33 1838 35 

Am Banter *172 8 94 22% 

Am Cl» Bn 14 7 15 

AreHasg 21 393uZ3% 

Am Med 0 14 128 10% 

AmSofbra 0X2162 603 5% 
Am Frtwya 32 247 20 

AmGtIA i 0X0 18 3535 28% 
ARM? 1 422 1% 

AmtUnx 220 7 O VS 
AmPwiCanv «8225 23% 
Am Tray 10 2Z7 13% 

Aragaite 17 5968 48>2 
Amtech Cp *008 24 881 17 

Amfil 4 14 13 9% 

Analogic 16 227 17% 
Analyst 1® 14 9 17 

AnangdAm 1X0 14 88 17% 
Aiteew Cp 22 Z7® 39% 
Andros An 8 201 15)2 
Apogee En UD 24 15 12% 

APPBW 8 803 5% 

Aotte Mai 31 8860 46% 
AprteCx 1® 2419702 27% 

AppiEtiees UM 41 2173 16% 

Arbor Or 124 « 858 17% 

Arcnw 028 22 220u3O% 

Argonaut 1.16 8 84 28 

Aim All 0X4 M 1831 20% 
Arnold la 1® 17 23 1B% 
ASK Grp 3 1850013% 

AspecfTU 25 2804 28% 
AssocComn 2BB 102 25% 
AST Radi 10 42® 16% 
Afidnson 15 353 n9% 
Ad SEAJr 032 2040® 28% 
Aiddsk 0® 20 280 52% 
AdbHn 12 33 4 

0X2 16 264 8% 


15 15 ft 

16% 15% -ft 
17% 18% -% 
22% 22% ft 
X 20 ft 
18% 16% 

40% 40% -1% 
14% 14% ft 
38% 36% ft 
28 38% 

11% 11% ft 
♦% 4% 

5A 5% -% 
M% 14% ft 
38% 38% -1 

11% 11% 

13% 13ft 
11 % 11 % . 
21 % 22 % +% 
55% 55% -1-% 
26% 27% 

25 25% 

7ft B 
37 X 

101* m% 

13% 13% -% 

14 14% +% 
3% 3% +% 

1ft 1% *ft 

33% 34 -% 

22% 22% 

14% 15 

22 % 22 % 

9% 10% 

4% 4% 

19 19 
Z7% 28% 

1ft 1ft 

«M7 47% 

21 % 22 % +% 
12% 13% 

«% 45% 

16% 17 

d8% 3% 

16% 17 

16% 16% 

17% 17ft 
36% X 

15 15% 

12 12 % 

5% 5% 

45% 46 

27 27% 

15% 16% _ 

16>* 17% i-lft 
29% 29% 

Z7% 28 

20 20% +% 
19% 18% 

13 13% +ft 
27% 28 -ft 

23% 24% 

15% 15% 

9% 9% 

27% 28% 

51% 51% 

3% 3% 

7% 6% 


ft 

-% 


ft 

ft 

■ft 


ft 

ft 

ft 


*1 

ft 

4-% 


-% 

ft 

ft 


ft 

ft 

ft 

ft 

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ft 

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ft 


- B - 

BE1 B» 00891 5 8 

Babbles 11 329 14 

BakaH W1 137 n% 

Baker J 0X8 114156 18% 
BhWllB 024 3 3 14 

Banctnc 16 485 22% 
MSouft a® 12 119B 19% 
BankeaCp a® 10 284 19% 
Badanti 0X0 13 59 u22 
BartWorcs 020 28 24 U34 
Bamafiao 032 IB 347 35% 
Basset F 080 161372 26% 
Bay View 060 13 270 25% 
Baybarta l.« 14Z172u6S% 
BB&TFh, 1X8 9 E71 29% 
BE Aero 22 395 9% 
BemAda 028 34 416015% 
Ben&lmy 18 718 18% 
BertdejWR 0® 15 322 « 

BHAGrp 012 14 Gl 10 
EDInc 107 28 5% 

HUB* 016 18 115 11% 
BMerW 008 T3 58 12% 
Bogan 33 8117 32% 

Burnt 17 1215 10% 

Bbxfc Drfl 1X4 11 9 30% 

BMC Sonar 16 2960 58 

Boaunen S xl J24 103547 34% 
Bab Bras 027 19 804 21% 
Booh S B 15 6u30% 

Borland 168033 9% 
Boston BH< 078 5 318 32% 
Boston Tc ® 1770 10% 
BredyWA DXB 19*100 47% 
Bran 128 28 557 12% 
Bt\jno S 024 15 985 7% 
BSBftKp 078 B 60 28 


BTSNpng a® 7 218 3% 


BUMS 
BuBdareT 
But Bran 
BuanessH 
ButoMfg 


30 5438 20% 
22 37 13% 

31 500 9% 
81 20 32% 

5 434 23 


d5% 5% -43 
13% 13% ft 

OA A 
18% 18% 

14 14 

22 22 % 

18% 19 

18% 18i£ 

21% 22 
33% 33% 

32% 33% 

26% 28% 42% 
24% 24% ft 
64 84 

29% 29% 

9 9% 

14% 15% 

17% 19% 

39% « 

ft 
5 

11 11% 

11 % 11 % 

30 31 

10 10 
29% 29% 

S7% 57% 

33% 33% 

21 % 21 % 

30 30% 
dB% 8% 

31 31 
10 10 % 

47% 47% 4% 
11% 12% 4-% 
7% 7% ft 
27% 28 +% 

3i 3% ft 
19% 20% +% 
12% 13 +% 

8% 9ft 
31% 32% 

22 22% 4% 


ft 
ft 
ft 
ft 
ft 
ft 
9% ft 
6% ft 
ft 

•1 
ft 

ft 
ft 
ft 
ft 
ft 


- c - 

CTec 182 202 28% 25% 25% 

Cabal Med 9 305 6% 8% 6% ft 

CadSdiens 1X7 15 469 28 27% Z7% -% 

Cadaus£am{L20 21 B51 17% 15% 17% ft 

Caere Cp 122 311 7% <J7 7% ft 

Catgene 2X5 81165 14% 13% 13% -& 
Cal Micro 20 870 22% 21% 22% ft 

Cunbrao 1 3201 1 A tfl 1 -% 

CandUaL 2 4 3% 3% 3% 

Cubs 1 103 2% 2 2 ft 

Canon he 060116 5 84 83% 84 ft 

Cana*) 2 186 3% 3% 3% 4% 

Cardinal 012 25 1® 461* 46% 48% 

CarttonCm 061 21 SB 25% 25% 25% ft 

Cascade 0X0 18 7 20 20 20 -1 

CasorS 0QB15 7® 10%d10% 10% ft 
COgon 5 2® 8% 8% B% ft 

CelMar 8 334 19% 18% 19% 

CB* Cp 19 3 12 12 12 ft 

CettaTel 77 168 10% 10% 10% 

Canrocor 410653 11% 19% 10% ■% 

CnblFU 1.12 12 538 33% 33% 33% 

CntrlSpr 34 2i 12 11% 12 

Oamler 8 17 4% 4% 4% 

Chapter I 060 8 528 22% 22% 22% ft 

ChnnSh 009 13 3278 10% 9% 10 ft 

Chemdsgn 42 47 08% 8& 8)* 

Qtemfab 15 100 10% 10% 19% ft 

Che rotor 1 290 % d% % 

ChBmpower 12 10 3% 3% 3% ft 

empire 9 «n 4% 4% 4% +/« 

CNrwrCp 643066 68% 55% 684% 

CteBn 128 12 Zn 52% 51% 52% 4% 

OuasCp 117 30 862 31% 30% 31% 4% 

Ctmalgc 379282 38% 34% 35% ft 

OS Tech 131 1008 2% 2% 2% 

CncaSys 1321678 25% 24% 25 ft 

ttz&ucpwtxa 18*100 28% 28% 28% 

CfeanHte 27 112 7% 7% 7% ft 

CMs Or 43 5 12% 12% 12% -% 

Oamesm 9I8QS 5% 5 5% ft 

CocaCoLaB 1X0 17 16 28 Z7% Z7% -% 

CooaEngy 120 769 8% 5% 6 

CadeAtann 28 105 10% 10% 10% 4% 

CopnrwCp 28 1638 17 18% 18% 

Cogro 102 ® 11% 11% 11% 

Conaen 16 78 13% 13 13% 

Crfiagoi K Z15 22 21% 21% 

CdriGrai 128 13 10 21 20 20 

CdU Grp ICQ 8 119 24 23 23% 

Cemar 024 1Z1SH 19 181*18% 

CmcnAi 009 191842 19% 18% 16% 


CmesASp, 009 387534 19 18 18% 

CoirSssdlXS 11 371 32% 31% 32% 

Comma 170 9G 221 18% 17% 18% 

CaroUbs 387 278 11% 11% 11% 

Guitonera 57 12 12% 12 12% 4% 

CwnStoeW 35 930 3ft 3A 3.18 4.05 

ConF'ao 1X8 27 803 40% 39% ®% 41% 

Ctsnkjm 7 138 0% 5% 8% 

Condaf 1® 18 StQ6nIl% 10% 11 

CmtUCel 31 299 18% 16% 18% -% 

OariData ifi 4391/11% 11 11 ft 

CwnA 1 ISO 18 981 19% 18% 18% -% 

OvytBlo 88 27H 10% 10% 10% 

CodtsCp 23 1593 52% 51% 52 J* 

Corpora 43 109 IB 15% 15% 

Cracker B » OXG 23 3080 25 24% 24% + j>7 


p 182 12 318 027 28% 

S 020 21 154 7A 6% 

1 132 23 43 16% 13 

1*0X0 45 41 »% 30% 

a 1® n 177 22% 31% 

> 2818087 29)* 27% 

[i 118 16 53 15% (8 

331058 38% 36% 
1X0 B 151 u31 30% 
020 4 41 8% 6% 
16 88 21 20% 

080 7 49 16% 15% 

13 702 14 13% 

7 ®B 13% 12% 

7 462 IH 1% 

B 15 3% 3% 

15 W 33% 33% 

02BVS 56 10% S% 
2 931 4% 4 

120 28 861 28 25% 

0X8 15 82 13%d12% 

12 88 9% 8% 

121381 nmo% 
024 20 2BZ 23% 23% 

008 SI 270 5% 5 

1X9 171028 31% 29% 
0(2 12 453 18% 15% 
030 24 8U33% 32% 

7 281 21% 20% 


28% 4% 
7\ *i 
IB ft 
30% 

22% ft 
27% -1% 
IS 

38% ft 
31 ft 
8% ft 
20% 

15% ft 
13% ft 
13% ft 
1% *& 
3% ft 

33% ft 
10% ft 
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28 4% 

13% 


8% 

ioU 


8% ft 
30% -% 
15% 

32% 

21% ft 


B9TU 


5 26 

2 115 
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018 22 2S2Z 
84 227 
2 308 
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4% (M% 
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18 17% 
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z% 3A 

II 10% 
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4% 

4 

1% 

17% 

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11 

48 


25 9259 71% 20% 
22 131 7% 7% 
27 1442 8% dB 
41 84 11% 11% 

82 38 2 1% 


3% 2% 
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51 50% 
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FBI Grp 

FarrCp 

festered 

FHPM 

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Fifty Ofl 

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FUnriFta 

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2 237 
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87 2100 14%d14% 

22 1734 17% 17 

11 9 8% 7% 

18 502 23% 22% 

0.10 22 201119% 18% 

23 41 14 13% 


- F - 

11 3 4% 4% 

0X4 13 12 5% 1)5% 
0X4 S3 2402 33% 33 

154268 25% 24% 
3 174 3% 2% 
1X8 18 816 eS5 54% 
6 1838 4% 4 

024 0 221 11% 10% 
38 575 27% 28 

120 12 1BS2 35% 35% 
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1X0 11 173 25 24% 

OG02T 99 24% 24 

1X4 11 884 30 29% 

1X8 10 8371143% 42% 
036 7 315 9% 9 

032 62152 22% 21% 
1X6 11 217 47% 47% 
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120 13 25 16 

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Lite Inch 030 15 14 17% 17% 17% ft 

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Toltt Med 21156 4% 4 4%+% 

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38 


WORLD STOCK MARKETS 


FINANCIAL TIMES 


Tuesday June 7 1994 


AMERICA 


EUROPE 


Pepsico falls Zurich up 1.9%, responds to US equity strength 
after Goldman 
downgrade 


-v 


Wall Street 


Blue chips rose modestly as 
renewed optimism over inter- 
est rates carried over into the 
new week, writes Frank 
McQurty in New York. 

By 1pm, the Dow Jones 
Industrial Average was 9.28 
better at 3.78L45, but the more 
broadly based Standard & 
Poor’s 500, up 0.73 at 460.86, 
barely managed to nudge into 
positive territory. 

Activity was sluggish, with 
136m issues traded on the 
NYSE by early afternoon. 

In the secondary markets, 
the American SE composite 

Share price and index rebasetf ; 

no — 



Jan 84 

SoiMcFTOiaphto 


MR 


inched 0.72 ahead to 44K56 and 
the Nasdaq composite was up a 
scant 0.57 at 742A5. 

After last week's barrage of 
data, a blank economic release 
calendar gave investors time to 
reflect on supportive com- 
ments made by three of the 
Federal Reserve's five gover- 
nors. An article in The New 
York Times quoted the officials 
as saying that infla tion was 
now in check, suggesting the 
central bank would not make 
an early move to lift shortterm 
rates again in the near future. 

The prospect of low inflation 
and a stable monetary policy 
allowed the bond market to 
extend a rally that began on 
Friday with the release of data 
on May employment condi- 
tions. The benchmark 30-year 
bond was showing improve- 
ment by midday, a direction 
paralleled by most share 
prices. 

Consumer products and food 
groups were actively traded. 
Philip Morris added $1% to 
850% and Sara Lee, which 
announced a worldwide 
restructuring, was marked up 
$%to$m. 

Pepsico dropped $% to $34%, 
just above its 52-week low of 
$34%. Goldman Sachs removed 


the stock from its recom- 
mended list and cut its earn- 
ings estimate for the company, 
based on a disappointing per- 
formance by Pepsico’s restau- 
rant dMsLon. 

Merger news was stirring up 
the communications sector. 
Sprint was marked down $% to 
$38% after suspending talks on 
a possible link-up with Elec- 
tronic Data Systems, the data- 
p roc es sing arm of General 
Motors. EDS. which are traded 
as class-E shares of its parent, 
dipped $% to $34%. 

Meanwhile, Times Mirror 
dropped $3 to $33 on news that 
it agreed to sell its cable televi- 
sion operations to Cos Enter- 
prises for £L3bn. Cox shares 
are not publicly traded. 

IBM gained $1% to $62 on 

reports that its raarghifi Via^ 
improved recently. Compaq 
Computer jumped $2% to 
$114% but no fresh develop- 
ments were driving activity. 

In electronics retailing, 
CompUSA lost $2%, or about 22 
pa 1 cent, to $9%, a new 52-week 
low for the stock. Janney 
Montgomery Scott recom- 
mended a sell following the 
company's warning of a possi- 
ble fourth-quarter loss. 

The Nasdaq was held back 
by weakness in the technology 
sector. Lotus Development 
dropped $1% to $57 and Oracle 
fen $1% to $36%. 

Canada 

Toronto was lower at noon in 
response to the easier bullion 
price. The TSE 300 composite 
index was down 4.79 at -L27&23 
in volnme of 21.74m shares. 
Declines outpaced advances by 
277 to 231 with 294 unchanged. 

Toronto’s precious metals 
sub-index slipped 2.1 per cent 
Placer Dome was off C$% to 
C$30% and American Barrick 
fefl C$% to C$32. 

Methanex and Nova Corp, 
the gas producers, coutfauefl to 
be heavily traded. Methanex 
receipts were up C$% to C$10% 
in volume of L069.400 shares 
while Methanex shares were 
up C$% to C$17% in 766,433. 
Nova Corp was up C$% to C$12 
in 755,968. 


SOUTH AFRICA 

Johannesburg was unnerved 
by gold bullion’s dtp below 
$380 an ounce, while a lack of 
foreign demand compounded 
the diminished interest of 
local investors. The overall 
index fell 38 to 5,462, industri- 
als receded 38 to 6,539 and 
golds gave up 35 to 1,923. 


Bourses were mostly sleepy, 
although Zurich arn1 ^ Tel Aviv 
managed to take sentiment to 
pvtr<ympg | torites Out Markets 
St aff. 

ZURICH pushed 1.9 per emit 
higher, led by Hie strength of 
the futures market in a belated 
response to Friday’s perfor- 
mance on Wall Street The SMI 
index rose 53.0 to 2,7814, deci- 
sively above recent resistance 
at 2,770, prompting expecta- 
tions that the index could now 
be heading for the 2320 level. 

Roche certificates, under fur- 
ther pressure last week, 
bounced SFrl70 to SFr6,880. 
Renewed support was noted 
from Mr Martin Ebner's BZ 
Bank, with the market unper- 
turbed by news that the phar- 
maceuticals group bad 
prtpnriprt Mia deadline for its 
agreed takeover of Syntex to 
July 1 after the US Federal 
Trade Commission asked for 
mare Information on the deal 

Sandoz registered added SFr9 
at SFr700, their best perfor- 
mance since the group’s bid for 
Gerber, the US babyfood pro- 
ducer, a fortnight ago. 

Financials were in demand 
on strong e r bond futures. UBS 

ASIA PACIFIC 


bearers moved ahead SFr3Q to 
SFrL245 and SBC bearers put 
on SFrl3 at SFr430. CS Holding 
bearers, trading ex the divi- 
dend and a shareholder option, 
rose SF rl8 to S FifilL 

FRANKFURT featured an 
afternoon conflict between its 
bond and equity markets, the 
former TnfhMT««ri by qualified 
encouragement on interest rate 
and inflation prospects by Mr 
Dieter Hiss, a Bundesbank 
council member, and the latter 
watching Wall Street rise. 

The Dax index extended Fri- 
day’s carefree, but lightweight, 
pattern, climbing 14.68 to 
2,163.07 on the session and 
holding its ground after hours 
to end at an Ibis-Indicated 
2,16339. Turnover stayed low, 
up from DM5. lbn to DM53bn. 

However, said Mr Horst-Kas- 
par Graven at Merck Finck in 
DQsseldorf, most of gains 
came on Friday afternoon 
when the Dax closed at 
2,158.88; and while equities 
seemed sleepily content, this 
was not the case with bonds, 
down 25 basis points late in the 
day when US bonds were 66 
points to the good. 

Rfwmgns exemplified the pat- 


1 FT-SE Actuaries Share Indice 

:S 



June 

Houfr dngn 

Open 

KUO 

tun 1200 

THE EUROPEAN SERIES 

iam i4i» iioo o*> 

FT-fiEBmtactloo 
FT-S Bimtadk 200 

1*1178 

143006 

141521 

1430JB 

141146 141545 1417.12 
142&9Z 143527 1432X7 

141X74 

143329 

1418.83 141021 
143325 143320 



Jb3 

JUI2 

Jtn 1 

May 31 

my 27 

FT-SE Brandt 100 
FT-SE Eanbadt 200 


148X38 

1417.13 

139020 

140587 

08597 

139053 

139973 

140970 

140119 

141453 


8m ton (anowk hv** wo ■ vnut an - must imm* wo - mui n - nan 


tern of the day, up DMR50 at 
DM70830 an the gearig n after 
its semiconductors subsidiary 
projected a 29 per cent sales 
gain in 1994; but the afternoon 
close was only DM130 higher 
at D M70630 . 

AMSTERDAM h nflf: nn Fri- 
day’s gains anil the AEX imter 
dosed 437 up at 40735, with 
strength in a broad range of 
blue chips. Activity was helped 
by an unexpected, 10 basis- 
point cut by the central bank 
in the special advance rate. 

Welters Kluwer, the publish- 
ing group, improved FI 1.40 to 
FI 11240 after Goldman Sachs 
added it to its European Prior- 
ity list- The investment hank 
said that it expected earnings 
per share to grow by 19 per 
cent over the next three years. 


Unilever was among the 
day’s disappointments, the 
shares declining 70 cents to 
FI 191, as its “war of words" 
with Procter & Gamble over 
the quality of washing powders 
entered a new phasa 
There was considerable tech- 
nical trading in NecDloyd, the 
transport and shipping group, 
muter pressure last week with 
the shares losing some 7 per 
cent; this helped it to a gain of 
FI 2J0 at FI 68,00. 

PARIS could find little to 
motivate activity and the 
CAC-40 index moved in a nar- 
row 20 point range before clos- 
ing off 5.49 at 2,037.15. Turn- 
over eased to FFrSJbn. 

Euro Disney was again one 
of the few highlights, the stock 
rising FFr2.00 or almo st 6 per 


cent to FFr3630, as mare buy- 
ers into the market fol- 
lowing last week’s news of a 
capital injection by a Saudi 
prince. Carrefour dipped FFr7 
to FFr1,910 as the retailer 
noted a 7 per cent rise in sales 
between January and May. 

MADRID followed afternoon 
weakness in the bond market, 
the general index losing most 
of its early gains to close 0.77 
higher at 32736 In turnover of 
Pta283bn. For Kleinwort Ben- 
son, Ms Clare Miles advised 
investors to hold, saying that 
the economic recovery was 
continuing and that, each 
mouth, more indicators have 
been showing a reoevezy of 
itermmri and Output. 

Construction stocks were 
among the better performers, 
Cubiertas rising Fta340 to 
Ptall390. Pta200 to Ptal5.400 
and Huarte Pta65 to PtaL905. 

MILAN marked time, the 
Comit index nudging 2.57 
higher to 73833 in very quiet 
trading. 

Montedison was exception- 
ally active, adding L28 or 2 per 
cent to 14,458 in hefty volume 
of 27.4m shares as expectations 
grew that its proposed plastics 


merger with Shell would win 
the blessing of the European 
Union tomorrow. 

The shares also benefited 
from rumours that Gemina 
might be building a state; the 
financial holding company, 
which said on Friday that it 
had liquid funds of L320bn, put 
on L30 to LL6S1. 

STOCKHOLM found support 
in gains by Astra and Yuhn, 
the Af&rsv&rlden index gain- 
ing 9.1 to 1,487.0. 

Astra A shares gained SSii 
to SKrl72 on speculation that 
it was close to assuaging Ger- 
man worries about its best-tell- 
ing Losec ulcer treatment 
Volvo B shares rose SKz23 to 
SKr747 in response to reports 
that sales volume rose by & 
per cent in the first five 
months of the year. 

TEL AVIV dived 6 per cent, 
wiping out all of Sunday's 4 
per cent gain, with mutual 
funds being seen as heavy sell- 
ers. The Mishtanhn index fin. 
ished 1048 down at 17230 fax 
high turnover of Shk260m. 

Written and edited by WHBam 
Cochrane, John PRt and MchaaT 
Morgan 


Nikkei continues downward technical correction 


Tokyo 


Equities fell for the third con- 
secutive session yesterday, but 
market sentiment remained 
upbeat, writes Robert Patton in 
Tokyo. 

The Nikkei 225 average lost 
227.54 at 20,726.65. Although 
the index opened above Fri- 
day’s high at 2035419, prices 
drifted lower throughout the 
morning. Early declines were 
limited by overseas buying 
from both foreign and domestic 
brokerage firms. But In the 
afternoon, frirlnr-Hnlmtl selling 
brought the market down, 
pushing it to a day's low of 
20,70734 just before the close. 
Declines were well ahead of 
advances by 7(3 to 266, with 
152 stocks unchanged. 

The N ikkei 300 slipped 344 
to 303.66 and the first section 
Topix index shed 15.10 to 
1,66452. Volume, estimated at 
260m shares, was down sharply 
from the that changed 


hands on Friday. In London 
the ISE/N lkkel 50 indent 1 firmed 
245 to 1309.72. 

Many investors were waiting 
for Friday's release of the tan- 
kan, a quarterly s ur vey of busi- 
ness sentiment by the Bank of 
Japan, and trading volume was 
likely to remain relatively ti ght 
until than. 

Although there were reports 
that North Korea had threat- 
ened war if economic sanctions 
were imp osed, analysts did not 
believe that this was a signifi- 
cant factor in the day’s decline. 
Most felt that the market was 
simply going through an over- 
due correction after rising 3 
per cent in recent weeks and 
topping 21,000 for the first time 
in eight months. 

Mlnfhpa, a leading miniature 
bearing manufacturer, rose for 
the third consecutive day and 
hit a new high for the year of 
Y812 before closing Y17 up at 
Y807 after 4.2m shares traded, 
the third highest volume of the 
day. In the face of the strong 


currency, MMbea’s expansion 
into sooth east Asia, with pro- 
duction bases in Thailand and 
Singapore, brokers said, made 
the company attractive to 
investors. 

Many of last week’s high- 
technology and large-capital 
winners fell back, some on 
very active trading. Volume 
leader Hitachi slipped Y20 to 
Y1070 with R. 2 m shares chang- 
ing hands. Oki Electric closed 
at 7864 down 76. and Fujitsu 
was off 710 at 71100. 

Second most active stock 
Mitsubishi Heavy Industries 
eased 73 to 7763 with 5m 
shaw m d ealt- Kawasaki Heavy 
Industries shed 78 to Y375 and 
Mitsui Engineering and Ship- 
building declined 77 to 7375. 

Tn Osaka, tha OSE average 
finished U732 off at 23382.60 
in volume Of jjfi-Sm sharps 

Roundup 

The region was mixed yester- 
day. Seoul and New Zealand 


were dosed for holidays. 

HONG KONG put aside wor- 
ries that a government pack- 
age tO COOl the housing mar - 
ket, to be announced 
tomorrow, would push com- 
mercial property prices lower 
as well. The Hang Sang index 
improved 148.76, or 1.6 per 
cent, to 938333. 

Among property issues, out 
of favour last week, Cheung 
Kong moved forward HE$L25 
to HK$39, Henderson Land 
gained HK$135 at HK$4135 
and Sun Hung Kai Properties 
rose HK$2 to HK$S23Q. 

China’s state-run Dongfang 
Electrical Machinery made a 
solid debut, ending at 
HK$3.175, against its HK$233 
is sue p rice. 

HSBC picked up 50 cents to 
HK$8630 after bring sold last 
week on concern over the dftu- 
tten from an enhanced scrip 
dividend. 

KUALA LUMPUR was firmer 
after a session marked by 
active buying interest in sec- 


ond and third line counters. 
The composite Index gained 
437 at 970.06. 

Among heavily traded 
issues. Granite Industries rase 
95 cents to M$5.15, while 
Golden Hope put on 36 cents at 
M$424 amid reports that it 
would gain from a large gov- 
ernment project 

SINGAPORE edged ahead, 
the Straits Times Industrial 
index adding 331 at 237131 in 
volnme of 983m shares. 

Hotels found favour amid 
expectations that property 
groups were considering rede- 
velopment projects. Hotel 
Negara led the gains, jumping 
S$1.00 to S$m3, followed by 
Seaview Hotel with a 90-cent 
rise to S$1L10 on an upward 
revision of its net asset value, 
trad ers sa id. 

TAIPEI finished off the ses- 
sion’s high, with brokers fore- 
casting that the market was 
heading for a period tit consoli- 
dation. The weighted index 
was ahead 37.92 at 6,07735 


after seeing a high of 6JJ839. 
Turnover rose to TST&Sbn. 

MANILA dropped sharply cm 
profit-taking in a number of 
issues. The composite index 
slipped 38.12 to 3322.06 in turn- 
over down to 633m pesos from 
Friday’s 820m pesos. 

SYDNEY was deflated by a 
decline in the gold shares 
index, leading the All Ordi- 
naries index off 6J at 23725. 

Brokers said that gold stocks 
were undermined by weaker 
bullion prices and Papua New 
Guinea’s suspension of new 
mining projects. Turnover . 
amounted to A$3283m. 

Newcrest Mining fell 28 cents 
to A$632, Dome Resources 7 
cents to 45 cents and High- . 
lands 4 emits to A$1.40. 

BANGKOK finned in low 
volume, the SET index dosing 
5.01 up at 1363.01. Turnover 
was down to Bt43bn. 

The finance sector was foe 
day's biggest gainer, up 1 per 
cent, with Asia Securities w 
Trading adding Btl at Bt99. 


MARKETS IN PERSPECTIVE 


Brazil surges 7 per cent 


Shares in Sdo Paulo had 
surged 6.6 per cent by midses- 
sion, with foreign investors 
seen as heavy buyers. The Bov- 
espa index was up 1,789 at 
28,749 by 1pm in turnover of 
CM13bn ($93m). 

Brokers observed that inves- 
tor sentiment was helped by 
reports at the weekend that Mr 
Fernando Henrique Cardoso, 
the current economy minister 
and a presidential candidate, 
had seen an improvement In 
his standing in opinion polls. 

Salomon Brothers, in a 
recent commentary, noted that 
the possibility of a victory in 
the October elections fay the 
left-wing candidate Mr Luiz 
lnacio da Silva could not be 
ruled out. but placed the possi- 
bility of a Cardoso victory at 
around 55 percent. 

Analysts said that cyclical 
companies, such as food, retail 
and clothing concerns, 


remained firm throughout the 
morning, while other blue 
chips were also active. 

Among the main movers, 
both Telebras and Vale do Rio 
Doce were up 6 per cent at 
Cr8230 and Cr213 respectively. 

Elsewhere, Petrobras, the oil 
group, gained 9 per cent at 
Cr205 and Sadia Concordia, the 
food group, 74 per cent at 
Crl,880. 

Mexico 

Equities gained strongly in 
early trading, with the IPC 
index up 2471, or 1 per cent, at 
2,489.69. 

Analysts commented that 
the market was led higher by a 
good performance from Trimex 
on Wall Street, the ADRs up $1 
at $63%. while locally the “A" 
shares had risen 1.9 per cent 
and the "L” shares, available 
to foreigners, Z.7 per cent 


% dang* In Ml ounvnoy t 

■MftVt 

«dw*pi 

In rest 


. him 

4 WMks 

1 VMr 

tot of 
1194 

Start at 
19M 

total 

wt 

Austria 

-2J92 

-351 

+20.97 

-12.12 

-952 

-858 

Belgium — 

-2.80 

-457 

+18.96 

-3.88 

-028 

+1.42 

Danmark 

-054 

-3.73 

+22.77 

-4.01 

-1.75 

-058 

Finland 

-1.54 

-1.71 

+53.75 

+1151 

+1455 

+1650 


-0.61 

-5.06 

+13.16 

-8.66 

-6.72 

-5.13 

Germany 

-0.12 

-452 

+27.07 

-6.40 

-450, 

-256 

Ireland 

-a 70 

-350 

+1450 

-6.45 

-458 

-2.45 

Italy. .. _ 

+057 

-9.07 

+3550 

+1851 

+2350I 

+25.09 

Netherlands 

+0.83 

•229 

+2250 

-455 

-254 

-0.68 

Nonway 

-4.09 

-257 

+2657 

+1.04 

+354 

+550 

Spain 

-1.27 

+2.46 

+20.79 

-1-27 

+1.16 

+2.88 

Sweden 

-2.61 

-152 

+3053 

+4.48 

+8.69 

+1054 

Switzerland 

+CLZ7 

+253 

+21.86 

-6.08 

-3.02 

-157 

UK . 

+055 

-4.04 

+5.79 

-1152 

-1153 

-10.02 

EUROPE 

+007 

-350 

+1558 

-657 

-559 

-347 

Australia 

-1.10 

+4.01 

+1656 

-357 

+3.17 

+453 

Hong Kong 

-2J33 

+7.48 

+30.55 

-2255 

-2355 

-2255 

Japan 

+4X39 

+422 

+151 

+1553 

+2057 

+2253 

Malaysia 

-5.09 

-6.72 

+3258 

-27.06 

-2558 

-24.11 

New Zealand — 

■023 

+6.15 

+3055 

-2.08 

+252 

+458 

Singapore 

-3.03 

+054 

+25.41 

-1149 

-855 

-740 

Canada — 

-0.71 

+1.02 

+10.73 

+022 

-656 

-4.05 

USA™. 

-KX57 

+252 

+158 

-152 

-257 

-152 


-008 

+057 

+51.60 

-554 

-1350 

-11.72 

South Africa 

+2.67 

+257 

+41.69 

+11.76 

-1.08 

+0.62 

WORLD INDEX 

+4X22 

+157 

+6L47 

+055 

+1.75 

+348 


tBsaadoa Jam 3rd • 


CB pmflM. Tfw HmwcM Tin— Limited. OcUmm. ate tw l Co. mkS 


Weakness in Asia, excluding Japan, held back the FT- 
Actnaries World Index last week. Mr David Bates of Asia 
Equity In London says Singapore fell simply on its long 
term association with the trading of Malaysian equities. 
The real problem, he says, was margin calls and the 
anticipation of them in Kuala Lumpur, which left the 
domestic Malaysian equity market with a 5.1 per cent 
Call in local currency terms, taking its loss this year 
to 27.1 per cent; rumours of local brokerage failures 
added to the general malaise. Hong Kong’s retreat was 
property related, following a disappointing land aftetum. 


1 FT- ACTUARIES WORLD 

INDICES 













Jdnfly compiled by The Ftoandm Timea Lid.. Gokftnai. Sachs a Co. and NatWoat Securities Ltd. in conjunction with tin Institute of Actuates aid the Faculty ot Actuates 

NATIONAL AND 




















rrw'Tii a uiftTn *1 *+**»■* 








nry 

i ■ an nn 


Hguras In paenffiesas 

US 

□ay's 

fWW 



Local 

Local 

Gross 

US 

Round 



Local 



Year 

show number of fines 

DoBa- 

Chance 

Strafing 

Yen 

DM 

Ctxrency 

% dm 

Otv. 

Oefiar 

Staffing 

Yen 

DM Curency 52 week 52 weak 


at stock 

tedex 

u 

index 

Index 

Ma 

Index 

on day 

Yield 

Max 

Index 

Mac 

Index 

Index 

won 

Law 

(appro# 

Austrda (69) _ 

176.09 

1X2 

17252 

11648 

151.70 

15757 

0.1 

849 

174.65 

17121 

11555 

14896 

15751 

169.16 

18018 

135.77 

Austria (17)- 

109.47 

-2.1 

1003 a 

112.74 

14033 

14636 

-1.0 

1.11 

173.10 

169.78 

11457 

14870 

14731 

195.41 

14230 

14532 

EMcIuti (39) 


-32 

18254 

109.74 

14252 

13S.41 

-1.4 

335 

16880 

16S27 

11153 

144.76 

141.92 

17637 

14132 

14443 

Canada (106) 

130,29 

0.1 

128J8 

8858 

11238 

13048 

-0.1 

250 

13022 

127.65 

8857 

111.60 

130.67 

14551 

121.46 

12739 


247.01 

-0.5 

24359 

16453 

214.01 

21951 

02 

154 

24821 

24352 

10453 

21511 

21839 

27879 

20738 

21436 

RrfsridPSl - 

144.02 

-0.8 

14131 

9531 

124.78 

16851 

Clo 

088 

14521 

14256 

6652 

124.68 

16856 

16872 

8554 

85-21 


106.93 

05 

104.48 

11135 

144.62 

14858 

1.7 

3.03 

16651 

16225 

109.78 

142.11 

14841 

18557 

14930 

15544 

Germany pgj, . . 

138.66 

-05 

134.64 

9091 

11859 

11859 

0.7 

1.74 

13891 

13421 

9051 

11755 

11756 

147.07 

10739 

11137 

Hong Kong (56} 

378.47 

05 

37252 

251.78 

32751 

37550 

05 

239 

37757 

30S54 

25051 

32432 

37455 

30850 

27142 

29033 

intend (14} . , 

180.67 

-03 

17002 

12020 

16654 

17334 

Ol 

350 

18131 

177.74 

12028 

16638 

17803 

20953 

15533 

16354 

nay (Boi 

85.80 

-1.4 

84. 34 

57.00 

7433 

103.75 

-0.1 

1.52 

87.06 

8553 

57.74 

74.74 

1035& 

97.7B 

5738 

7038 

-.tepan H69)— — . 

15857 

-09 

15752 

106.42 

13650 

10842 

-08 

072 

161.48 

15830 

107.11 

13S55 

107.11 

16531 

12454 

15430 

Malaysia (98) 44850 

1.1 

44252 

29854 

38854 

44759 

15 

150 

44350 

435.15 

294.43 

381.14 

44153 

621.63 

31251 

342.18 

MwSaofiaj 

— 2107.79 

05 

207O8S 

140254 

182017 

7651.10 

03 

132 

2097.74 

205038 

139158 

1001.10 

762810 

264736 

1431.17 

148046 

Motherland (26) 

107.70 

-05 

194,06 

13150 

17154 

16847 

0.5 

353 

19857 

194/18 

13157 

17052 

18750 

20743 

16432 

18804 

New Zealand (14) 

7057 

-02 

8853 

4742 

8153 

63.12 

-04 

879 

7085 

6955 

4639 

6053 

6356 

7759 

4857 

4938 

Norway (23) 

189.16 

-14 

18038 

12554 

10338 

18029 

-05 

1.78 

191.74 

10756 

127.16 

10433 

16659 

20842 

150.61 

15655 

Stegaoore(44) 

34053 

-04 

33554 

22041 

28437 

24121 

-Ol 

1.70 

341.78 

33534 

22658 

29345 

24153 

37832 

24240 

26013 

South Africa (59} 

288.81 

15 

28458 

17853 

23259 

27936 

05 

om 

36860 

26036 

176.16 

22834 

27855 

28826 

17533 

19642 

Sp*i (42) 

14058 

04 

14136 

9558 

12451 

14836 

15 

437 

14253 

14001 

94.73 

122.63 

14751 

155.79 

11833 

13044 

Sweden (38) 

21757 

02 

21358 

144,41 

16857 

25320 

06 

158 

21857 

21250 

14355 

18535 

251.77 

23135 

16335 

182.74 

Qwtaertaid (47). . 

15755 

-08 

15553 

10538 

13654 

13651 

03 

1.75 

169.14 

15930 

10656 

136.64 

13847 

17856 

12448 

12834 

United Kingdom (205) 

18450 

OO 

181.79 

122.74 

16955 

181.79 

05 

4.12 

18450 

18087 

12258 

15842 

18087 

21436 

17U32 

17843 

USA (519) ...... 

1B7.80 

05 

18444 

12430 

16253 

187.60 

06 

230 

16651 

18233 

183.77 

16052 

19861 

19834 

17B35 

18004 

EUROPE (720) 

183.69 

-02 

16158 

10859 

14152 

15435 

06 

333 

16335 

180.72 

10875 

14077 

15320 

17858 

14158 

14858 

NonfcpiS) _ 

20551 

-02 

202.49 

138.72 

178.05 

20825 

03 

144 

20531 

20155 

13858 

17830 

20739 

22030 

15532 

188.12 

Pacific Basin (750) 

18758 

-07 

16552 

111.78 

14554 

11536 

-05 

134 

16824 

16531 

11220 

14552 

11633 

17075 

134.79 

15742 

Eurp-Paofflc (1470) 

16654 

-05 

16050 

11046 

14356 

1S157 

-Ol 

155 

16659 

16350 

11069 

14829 

131.45 

17078 

14138 

16235 

North America (825) 

164.04 

05 

18154 

122.44 

159,45 

18350 

05 

255 

16811 

17950 

121.45 

15731 

182.74 

192.73 

17807 

181.48 

Europe Ex. UK fl5lS) 

148.62 

-03 

14644 

9657 

128.70 

13045 

06 

258 

149.01 

14037 

9653 

127.93 

135.06 

15747 

12237 

12880 

Pacific Ex. Japan (281) _ 

24751 

03 

243.69 

18453 

21458 

22157 

04 

251 

24847 

241.82 

16848 

211.02 

22a B 6 

296.21 

18238 

18848 

World Ex. US (1653) 

10758 

-0.5 

16453 

11139 

14433 

134.72 

-0.1 

157 

16804 

164.72 

11156 

14458 

134.79 

172.51 

14234 

15332 

World Ex. UK (1967) 

17158 

-01 

16956 

11455 

14831 

14810 

0.1 

233 

172.07 

16868 

114.13 

147.74 

14731 

17538 

15922 

16135 

Waldet.SaiU.pil9- 

.—17244 

-ui 

16091 

114.72 

149.40 

15029 

03 


17234 

10923 

11451 

14823 

16006 

17858 

15530 

182.75 

World Ex Japan (1703).. 

18258 

05 

17941 

121.13 

157.70 

17881 

05 

258 

18150 

17802 

12046 

15652 

17531 

18530 

165-72 

10948 

Ti* work) tndm (2173 _ 

17352 

-0.1 

17048 

116.10 

14930 

15127 

03 

222 

173.19 

16878 

11457 

14870 

16139 

17837 

155.17 

18237 


CUwUU. Tho Financial firm Unfind. OoWnon, Sacha and Co. and NalWast Sscultlas Unto). 1067 
Mt^anwiWtlvNlsaiM. 


Advertisement 


Spain - Economic Outlook 

The Central Hispano report on the Spanish economy 


LABOUR MARKET REFORMS: 
SPAIN MOVES INTO LINE 

A major package of labour reforms, which comes into 
force this mouth, brings Spain much closer to the situation 
in other EU countries. The reforms, overwhelmingly 
approved by parliament, make the labour market much 
more flexible and will enable Spain to create jobs - and so 
reduce its record 243% unemployment level - with lower 
rates of economic growth (1%-13% as opposed to 25% 
before). 

When Spain joined the European Community in 1986 
its labour market was too rigid for an economy that began 
to be liberalised. If Europe is generally over-regulated 
compared with ‘hire and fire” America, Spain was at the 
regulated extreme. Severance payments were more than 
twice the average of other EU countries, according to a 
European Commission study published last year; job 
classification and mobility were strictly controlled; the 
lack of flexible contracts particularly affected women, 
unqualified workers under foe age of 25 and foe long-term 
unemployed and red tape for shedding jobs was 
burdensome. 

High dismissal costs discouraged employers from 
putting workers on permanent contracts. As a result, 
Spain has by far the highest proportion of employees on 
fixed-tom contracts (32% in 1993). 

Spain's high unemployment is partly due to the 
downturn in the economy but mainly to structural 
problems in the labour market Although Spain sustained 
a faster pace of growth than its EU partners during the 
late 1980s, it has not been able to translate this high 
growth into permanent jobs. The government's reforms 
get to grips with the issues. 

Spain. Employment Promoting Contracts 

(3-month moving average, seasonally adjusted series) 


ItHHArftUIMIIKr —I II 




... .. . _ 








<b 'fiab^a y SecUI 


Consolidated assets of US S91bn 
Breaches in 27 commies 
Biglit mJUioa dknts 
Spain's bigest tank. 


Apprenticeship and training contracts (with lower' 
wage and social security costs) were introduced at foe 
beginning of this year, while there are incentives for part- 
time contracts. The impact of these measures has already 
begun to be felt (see graph). Private employment agencies 
are authorised - ending INEM's monopoly - and 
unemployment benefits are now more linked to job 
training and accepting jobs offered. 

While the size of statutory severance payments 
re m a ins (20 days per year worked with a maximum of 12 
months salary for fair dismissals and 45 days per year 
worked with a m a x i m um of 42 months for unfair ones), 
the grounds for shedding workers have been extended and 
this will reduce redundancy payments. 

The amended Workers Statute broadens the scope for 
justifying collective redundancies to include production 
needs and not just economic or technological grounds. 
Employers have greater leeway to make cuts - up to 30 
employees or 10 per cent of foe labour force for small 
companies in any three-month period - without having to 
go through foe lengthy process applied to "collective" 
redundancies. The period for administrative authorisation 
has been shortened and in some cases eliminated. 

Wage bargaining negotiations have been partially 
decentralised and individual companies not able to 
support a wage increase agreed for a particular sector are 
not bound to follow foe guidelines. The salary structure 
and t he wo rking day can now be negotiated with workers. 
For example, holidays can now be split - instead of most 
workers going away in August - and the maximum length 
of foe working day can be negotiated, though the total 
n amber of hours per week remains at 40. The cost of 
overtime has been reduced and can be paid for with days 
off. 

Greater flexibility will enable comp ani es to adjust 
more quickly to downturns - and upturns - in business and 
so be able to recover more qnickly and hire workers. 
Lower dismissal costs will encourage wage restraint 
during crisis periods as workers will be more prepared to 
accept a freeze on salaries or lower increases in return for 
job protection. 

The reforms will improve business expectations. The 
Spanish economy, fuelled by high growth in exports, is 
emerging from recession and could grow by around 1.2 
per cent this year, dose to the new threshold for creating 
jobs in net terms. 


Head Office: 


0 



Central Hispano 


28014 Madrid 
tefcffiftuii 


1 IN SPAIN 

Outlook is prepared by Banco Central Hispano'* Research Department. 
Subscriptions can be obtained by sending a fax to Madrid 622 77 70. 


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