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IN TOMORROW’S 

Weekend FT 

On the trail of 
drag traffickers 


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Yemen nearer to 
civil war as jets 
hit rival capitals 

Yemen edged closer to civil war as northern and 
southern army units battled each other in the 
streets and air force jets pounded rival capitals. 
Residents in Sanaa, Yemen’s federal capital, said 
southern air force Jets struck the international 
airport and the presidential palace. 

Yemen, one of the poorest countries in the 
Middle East with a modest oil production, has 
been plagued by political rivalry since Marxist 
South Yemen and tribal, conservative North Yemen 
merged four years ago. Page 16 

Recovery boosts Kohl: German chancellor 
Helmut Kohl appeared to have reversed the trend 
of declining popularity both for himself and his 
Christian Democratic Union, in line with indicators 
showing a revival of economic activity. Page 16 

Hews Corporation, Rupert Murdoch's media 
and pub lishing group, announced a 27.6 per cent 
increase in profits after tax hut before abnormal 
items, to AS852£m ($600m) in the nine months 
to end-March. Page 17; Lex, Page 16 

Singapore caning sentence carried oat 

US citizen Michael 
Fay (left), 18, was given 
four strokes of the 
rotan, a cane, in 
Singapore following 
his conviction for vandal- 
ism offences, including 
spray painting cars. 
President Bill Clinton 
condemned the caning, 
saying Singapore had 

matte “a mistake”. 
Singapore’s ambassador 
to the US was summoned to the state department 
to receive US protests. Page 4 

Dispute over ABB bid for energy grant: 

A bid by Asea Brown Boveri, Europe’s biggest 
electrical engineering company, to participate 
in a US programme to develop the next generation 
of turbines is running into opposition from General 
Electric, its largest US competitor. Page 5 

Fiske subpoenas White House lies: 

Whitewater special prosecutor Robert Fiske subpoe- 
naed all White House files pertaining to Vincmt 
Foster, the deputy White House counsel who 
police say killed himself last summer. 

Palestinians prepare for self-rules An 

advance team of Palestinian policemen toured 
the Gaza Strip amid fears the Palestine Liberation 
Organisation would not be able to implement 
swiftly its self-rule agreement with Israel. Page 16; 
PLO denies being unready. Page 4 

Rhfrne Poulenc, French chemicals and 
pharmaceuticals group privatised last year, 
reported a sharp fall in first quarter net profits 
to FFrlKhn ($32.4m) from FFr676m in the first 
three months of 1993. Page 17 

Russian electoral fraud alleged; Last year’s 
referendum which approved the Russian constitu- 
tion was invalid because 50 per cent of voters 
did not take part, according to a report which 
alleges massive corruption at every level erf vote 
counting. Page 3 

Socialist HEPS’ boycott infuriates Italy: 

Socialist Euro-MPs provoked a furious reaction 
from Italy's president after voting to boycott 
any Italian neo-fascists taking part in EU institu- 
tions. Page 2 

Listing for PT I nd osa t: Indonesia is to list 
25 per cent c£ PT Indosat, state-owned telecommmri- 
cations group, in New York and has hired Merrill 
Lynch as lead underwriter. Page 17 

Party of cBctators sot for Panama wire 

The party- of Panama's fonner military dictators, 
Omar Torrijos and Manuel Noriega, is h e ad ing 
into Sunday's presidential elections as favourite 
to provide the country’s next head-of-state. Page 6 

Turkey acts on banks: The Turkish 
government moved to restore confidence in the 
banking system in the wake of recent bank col- 
lapses. announcing it would provide unlimited 
deposit insurance cover in the case of a bank 
going under. Page 2 

Market fears over Sri Lanka: Sri La n kan 
shares have fallen, sharply amid concerns about 
the stability of president D-B. Wqetunga's govern- 
ment. Page 4 

Firefi ghter s suspected in Malibu blaze: 

A Los Angeles firefighter was taken off active 
duty and another suspended after investigators 
blamed them for setting last year's $375m fire 
that killed three people and destroyed 350 homes. 


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ANC close to crucial two-thirds majority in poll 


By Michael Holman and Marie 
Suzman in Johannesburg 

South Africa’s Independent 
Electoral Commission is expected 
to release final results today con- 
firming the overwhelming vic- 
tory of Mr Nelson Mandela's Afri- 
can National Congress in last 
week's all-race poll 
Any further delay in the count 
could upset the timetable leading 
to Mr Mandela's inauguration as 
president next Tuesday. Leaders 
of all parties regard it as 
unthinkable that the event, 
expected to be attended by mare 
than 40 presidents, prime minis- 


ters and other leading state rep- 
resentatives. should be post- 
poned. 

The latest official count, based 
on figures made available last 
night, showed the ANC edging 
further towards the two-thirds 
majority in the 400-member 
National Assembly that would 
give H the power to draft the 
country's constitution. 

The commission’s latest batch 
of figures, encompassing more 
than 70 per cent of the estimated 
electorate, showed the ANC con- 
solidating its lead with 65.4 per 
cent of the vote. The National 
party, led by outgoing president 


F.W. de Klerk, was second at 20.3 
per cent and the Inkatha Free- 
dom party third on 7.9 per cent 

The assembly is required to 
draw up a new constitution 
which will be the basis of the 
next election, due to take place 
by 1999. The principles of this 
constitution, however, have 
already been agreed in the course 
of multi-party negotiations which 
ended late last year. 

The strong support for the 
ANC will also reinforce its domi- 
nance of the cabinet where posts 
will be allocated according to the 
parties' electoral showing. Mr 
Mandela has hinted, however. 


that he will offer ministries to 
the conservative Freedom Front, 
the liberal Democratic party and 
the radical black Pan Afri cani st 
Congress, although none is likely 
to achieve the minimum 5 per 
cent of the vote required for cabi- 
net representation. 

The Freedom Front’s share 
stood last night at 22 per cent 
while the DP had 1.6 per cent and 
the PAC 13 per cent This was 
based on 16.4m votes counted out 
of an estimated turnout of close 
to 23m. 

Acknowledging that counting 
continued to be slow, the com- 
mission said the need to verify 


the tallies was holding up the 
process. 

The decision on Wednesday by 
Mr Justice Johann Kriegler. head 
of the IEC. to allow the parties to 
interpret disputed ballots accord- 
ing to a complicated weighting 
system attracted vigorous criti- 
cism yesterday. 

In a front-page editorial. Busi- 
ness Day newspaper accused Mr 
Justice Kriegler of “dissembling” 
and biding “the tuJJ truth of the 
political deals be has helped cut 
with major parties from the mil- 
lions of voters whose commit- 
ment and hope gave the election 
its value.” 


Jittery markets dropped far- 
ther on the lack of new informa- 
tion. The financial rand, the 
main barometer of international 
investor confidence, shed 6 cents 
in London to close at R4.79 to the 
dollar, a decline of nearly 5 per 
cent over the past two days. The 
stock market's overall index fin- 
ished 22 points down at 5,231. 

“The mood's very nervous at 
the moment." observed one bro- 
ker. However, the gloom was par- 
tially offset by an announcement 
from President Bill Clinton that 
US aid to South Africa would 
total $600m over the next three 
years. 


Blow to Spanish PM as former finance and interior ministers resign seats in Cortes 

Gonzalez 


vows to stay 
on and fight 
corruption 


■ STERLING 

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m 

5.717 

$.6903} 

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(1.4145) 

Y 

102695 

(102205) 

$ Index 664 

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Tokyo dosed 



By David White in Madrid 

Mr Felipe Gonzdlez, the Spanish 
prime minister, stated firmly yes- 
terday that he intended to main- 
tain his hold on government and 
to tackle the corruption cases at 
the source of the country's politi- 
cal crisis. 

He said it would be “an irre- 
sponsible act" to resign and 
rejected a snap election. He was 
nevertheless badly wounded 
when his former finance minister 
and political soul-mate, Mr 
Carlos Solchaga, quit as leader of 
the ruling Socialist parliamen- 
tary party and resigned his seat 
in the Cortes. 

Mr Solchaga’s appointment last 
year was an important element 
in Mr Gonzdlez’s effort to weaken 
the grip leftwing Socialists had 
enjoyed over the parliamentary 
party for more than a decade. 

His position had been called 
into question because of his 
staunch teriring , as finance min- 
ister. for Mr Mariano Rubio, the 
fonner Bank of Spain governor 
who now faces fraud charges. 

Mr Gonzliez's statement, 
broadcast live on television and 
radio, came after reassurances 
from Catalan and Basque region- 
al parties that they did not 
intend to destabilise the minority 
Socialist government 

IBs appearance brought relief 
to nervous securities and foreign 
exchange markets. The Madrid 


general share index rose 15 per 
cent, regaining most of the 
ground lost on Wednesday 
because of the crisis, and the 
peseta recovered somewhat after 
falling - sharply against the dollar 
and D-Mark. 

Mr Gonz&lez rejected the idea 
of a wider cabinet reshuffle after 
the resignation of his interior 
and agriculture ministers in con- 
nection ^ith corruption scandals. 

Mr Rubio and Mr Manuel de la 
Concha, a former stock exchange 
head who handled his investment 
portfolio, were remanded in cus- 
tody without bail at Madrid’s 
Carabanchel prison yesterday 
after being arrested on Wednes- 
day night 

A fonner interior minister, and 
close Gonzalez ally, Mr Jose Luis 
Corcuera, also resigned his par- 
liamentary seat yesterday 
because of his connection with 
Mr Luis Roldan, ex-chief of the 
paramilitary Guardia Civil, who 
went missing last Friday, An 
international arrest warrant has 
been issued for Mr Roldan alleg- 
ing tax fraud, bribery, misappro- 
priation and other offences. 

The latest resignations will not 
affect the parliamentary balance 
since the Spanish system pro- 
vides for the seats to be filled by 
the same party. 

Mr Gonzalez held talks early 
yesterday in Madrid with Mr 
Jordi Pujol, leader of the Catalan 
nationalist party whose support 



Fblipe Gonzalez: determined to fight the corruption allegations at the heart of Spain’s political crisis 


the Socialists rely on to carry a 
majority in parliament. He 
assured Mr Pujol the government 
would press ahead with a free- 
market economic programme and 
combat corruption. 

Expressing confidence that the 
government had the support it 
needed, Mr Gonzalez dismissed 
suggestions that he would be a 
“hostage” to Catalan demands. 
He said there was no reason for 
early elections, nor for a confi- 
dence vote now in parliament, 
although he did not ride this out 

Mr Gonzalez accepted that the 


government was going through 
“a bad moment” and that confi- 
dence had been undermined. 

Mr Juan Alberto Belloch. 44- 
year-old justice minister, was 
appointed to take over the inte- 


rior-ministry in a combined port- 
folio. The new agriculture minis- 
ter is Mr Luis Atienza. 36. now 
undersecretary for energy. 

Markets recover, Page 2 


Respite 
for dollar 
ahead of 
jobs data 

By Phflip Gawith in London and 
Patrick Harverson in New York 


The US won some respite in its 
battle to defend the dollar yester- 
day, as many investors took to 
the sidelines ahead or important 
US April jobs data today. 

The dollar was firmer in quiet 
trading on the foreign exchanges, 
with some traders clearly chas- 
tened by Wednesday's concerted 
round of intervention by more 
than 15 central hanks to back the 
ailing US currency. 

“The market’s clearly taking a 
pause to see what happens with 
the [jobs] numbers,” said Mr 
Steve Geovanis, head of foreign 
exchange trading at Merrill 
Lynch in New York. 

By 1pm in New York, the dollar 
was up almost 1 pfennig against 
the D-Mark at DMl-6635. and 
nearly Y1 at Y1Q2.6S. Dealers said 
the market appeared to have set 
a temporary “floor” for the cur- 
rency at DM.6550 and Y102.50. 

The consensus among observ- 
ers was that while the interven- 
tion had succeeded in breaking 
the bearish dollar psychology, 
supportive policy measures in 
the form of lower German inter- 
est rates, higher US rates and 
market access measures in 
Japan, would be necessary to 
turn the dollar around. Mr 


Continued on Page 16 
Editorial Comment, Page 15; 
Bonds, Page 24; London stocks, 
Page 29; Currencies, Page 34; 
World stocks. Page 36 


Liquidators to sue directors 
over the collapse of BCCI 


By Andrew Jack in London 

The liquidators to the collapsed 
Bank of Credit and Commerce 
International are suing the 
bank's directors for failing in 
their duties, it emerged yester- 
day. 

The action is significant 
because it is the first move 
against the board members of 
BCCL which was closed by regu- 
lators in July 1991 after evidence 
emerged of widespread fraud. 

It comes on top of litigation to 
recover funds for creditors 
brought by the liquidators 
against BCCI’s auditors, the 
Bank of England and Sheikh 
Khalid bin Mahfouz and National 
Commercial B ank of Saudi 
Arabia. 

Partners from Touche Ross, the 
accountancy firm, issued the writ 
in the last few weeks through the 
courts inLuxembourg where the 
BCCI holding company is regis- 
tered. 

Those named in tbe writ 
include Mr Alfred Hartman, Mr 
Cliff Twitchen, Mr Yves 


Lamarche, Mr J D Van Oenen 
and Shaikh Khalid. former chief 
operating officer of National 
Commercial Bank. 

However, one director, Mr 
Ghanim Paris A1 Mazrut the rep- 
resentative on the BCCI board 
since the early 1980s of the gov- 
ernment of Abu Dhabi, the 
majority shareholder in the bank, 
has not been named. 

The decision to exclude his 
name reflects an attempt by the 
liquidators to prevent any diffi- 
culties in finalising an agreement 
with Abu Dhabi over a payment 
of $1.8bn in exchange for a 
waiver of future legal action. 

But it is believed the liquida- 
tors have not discounted the pos- 
sibility of adding Mr Mazrui's 
name in future if the agreement 
with Abu Dhabi ultimately 
founders. 

The writ is not a public docu- 
ment. and is couched in general 
terms alleging that the directors 
failed in their duties under Lux- 
embourg company law. It is not 
expected to advance quickly to 
bearings. 


In an interview with the Finan- 
cial Times in February, Mr 
Mazrui protested his innocence 
even though he was on the BCCI 
board for 10 years before the clo- 
sure. “1 can say from now till the 
Day of Judgment from what I can 
see no one on the board knew 
about the fraud. We never, never 
suspected.” he said. 

Mr Hartman said yesterday: “If 
anything happens the directors 
will defend themselves. They 
were not aware of the fraud, 
which was very, very cleverly 
done. They have acted the best 
they could.” The other directors 
could not be contacted yesterday. 

The liquidators continue to 
negotiate with the BCCI credi- 
tors’ committee and the govern- 
ment of Abu Dhabi over the 
details of an agreement tenta- 
tively approved in March. 

Meanwhile, accountants Price 
Waterhouse and Ernst & Whin- 
ney, now part of Ernst & Young, 
in the last few days filed their 
defences to a claim from the liq- 
uidators for up to $llbn for their 
allegedly faulty auditing of BCCL 


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© THE FINANCIAL TIMES LIMITED 1994 No 32,359 Week No 18 LONDON ■ PARIS ■ FRANKFURT » MEW YORK - TOKYO 



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NEWS: EUROPE 


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Turkey acts 
to stave off 
run on banks 


By John Murray Brawn 
in Istanbul 

The Turkish government 
yesterday moved to restore 
public confidence in the bank* 
ing system in the wake of 
recent bank collapses, announ- 
cing it would provide unlim- 
ited deposit insurance cover in 
the case of a bank going under. 

The move follows criticism 
of the haTiriihig last month of 
the closure of three small pri- 
vate banks - Turkish Tourism 
and Investment Bank TYT, 
Mar mar a Bank and Impex- 
Bank. 

It also reflects growing offi- 
cial concern that other banks 
could be hit by a run on depos- 
its in the wake of a 50 per cent 
depredation of the lira, and the 
recent bank closures. 

Announcing the scheme, Mrs 
Tansu Qiller, prime minister, 
said press speculation about 
the health of the banking sec- 
tor had “created an uncertain 
atmosphere". 

IBCA, the London rating 
agency, estimates around 12 
per gpTit. of foreign exchange 
deposits were withdrawn in 
the first six weeks of the crisis. 
Bankers say it is considerably 
more today. 

Until now, under the central 
bank’s deposit insurance a 
depositor would be paid up to 
TLl50bn. The new scheme, 
which does not cover the three 
failed banks, will have no 
upper limit, and will 
cover lira and foreign 
exchange deposits. 

The move was criticised by 
some bankers, who pointed out 
that without the risk that 
depositors might lose their 
money, competition between 
banks would now be decided 
not by the quality of the man- 
agement but by the interest 
rates being offered. 

However a shakeout seems 
unavoidable. This week. Gar- 
anti Bank, one of the stronger 
private banks, took over the 
troubled Bank Ekspres, and 
brokers say a number of other 
hanking - assets could soon be 
up for sale. 

Yesterday's move on deposit 
insurance comes in the wake 
of earlier action to introduce a 
lifeboat system for banks suf- 
fering a run on deposits. It 
coincides with a mission by the 
International Monetary Fund 
to discuss Mrs Qfiler’s recently 
travelled austerity programme. 
If the Fund approves the pack- 


age, Turkey will sign a letter of 
intent, paving the way for 
agreement on a standby facil- 
ity, and allowing Turkey to 
return to international debt 

mgrltpt q 

Turkey's creditworthiness is 
certain to be affected by the 
way the government settles the 
foreign liabilities of the three 
failed banks, which are esti- 
mated at $200m. Twelve of the 
leading bank creditors were 
told by the Treasury last week 
there would be no repayment 
guarantee, and settlement 
would be made as part of the 
liqui d ation of the banks, which 
may fake months. 

The creditors group includes 
UBS and SBC of Switzerland, 
National Bank of Australia. 
Commonwealth Ba nk. Hip Aus- 
tralian state bank, and the 
French banks Paribas and the 
state-owned Banque Francaise 
CommeroaUe Exteri eur e. 

Half of the liahfliHpg repre- 
sent letters of credit and pre- 
export financing for Turkish 
importers. 

• The World Bank has 
approved a $lQ0m credit to rap- 
port Turkey’s privatisation 
plans, in a dear signal of sup- 
port for the government's 
recent economic austerity pro- 

JiTftTHP. 

The bank loan, repayable 
over 17 years with a five-year 
grace period, will cover the 
cost of foreign bank consul- 
tants, legal advisers and public 
relations experts. It will also 
help ffwanrp a labour restruct- 
uring programme including 
work on a social safety net, 
and a feasibility study fin* the 
Zonguldak region, where the 
government has earmarked the 
coal mines for closures. 

The government plans to 
raise $3.5bn in 1994 to help 
close the budget gap. With 
international debt marke ts an 
but closed to Turkey in the 
wake of repeated downgrad- 
ings by international credit 
agencies, revenues from priva- 
tisation are critical to Turkey’s 
balance of payments. 

In 1994, Urn government is 
aiming to sell Tupras, the state 
oil refinery corporation, and 
Petrol Ofisi, the retail operator, 
either to a strategic industrial 
buyer or through an interna- 
tional share flotation or a com- 
bination of the two. Turk Hava 
Yollari, the Turkish airline, is 
also up for sale this year, 
together with Erdemir iron and 
steel works. 


Socialist Euro-MPs’ boycott infuriates Italy 


By David Gandbiar In 
Strasbourg and Robert 
Graham In Rome 

Socialist Euro-MPs yesterday 
provoked a furioua reaction 
from Italy’s president after vot- 
ing to boycott any Italian neo- 
fescists taking part in EU insti- 
tutions. The action follows lad; 
month’s election victory by Mr 
Silvio Berlusconi’s three-party 
coalition, which includes the 
far-right MSI/National Alli- 
ance. 

The Socialists, set to domi- 
nate the increasingly powerful 
Strasbourg assembly after next 
month’s Euro-electibns, say 
they will withhold co-operation 
from the Council of Ministers 
of the 12 on vital Issues like 


the EU budget if Italy is repre- 
sented there by neo-fascist 
ministers. 

They have also decided to 
block parliament’s mandatory 
endorsement of the new Euro- 
pean Commission. - due to take 
over in 1995 - should a Berlus- 
coni government seek to send 
a neo-fascist Commissioner to 
Brussels. 

The move brought an instan- 
taneous angry reply from 
Italy’s President Oscar Luigi 
Scalfaro and cast a cloud over 
the formation of the next Ital- 
ian government. 

President Scalfaro was so 
furious over what he regarded 
as an unwarranted interfer- 
ence in internal af pnir q of an 
EU member tbat within, eight 


minutes of the vote he had 
issued a formal reply. 

The lapidary tone of the 
reply made Us feelings dear. 
“Italy's adherence to principles 
and values Hwt form, basis 
of Europe is crystal dear and 
beyond discussion, and we 
need no one to either ten us 
this or offer to give us les- 
sons." 

The Mi parliament, in which 
the Socialists are already the 
largest bloc, voted late on 
Wednesday night to remind 
Italy that it "must be Mthftd 
to the fundamental values 
which lay behind the founda- 
tion of the European Commu- 
nity." 

The motion - an unprece- 
dented intervention in the poli- 


tics of a member state - was 
carried by 189 to 188. The 
Christian Democrats, now the 
second largest bloc at Stras- 
bourg. including the parlia- 
ment’s president, Mr Egon 
fQepsch, voted against 

Mr Jean-Pierre Cot leader of 
the Socialist MBPS, said yester- 
day: ‘This Union was founded 
on the as h e s of fascism.” He 
denied interference in Italy's 
internal affairs, saying that 
“we are delivering a warning 
that this Union is a partner- 
ship which depends an shared 
fundamental values.” 

Italian, opposition parties 
exploited the vote to remind 
Mr Berlusconi he faced prob- 
lems in allying so openly with 
the MSI which had yet to disso- 


ciate Itself from its fascist 
roots. 

The Strasbourg vote comes 
at an awkward moment tar the 
jrjo^ia magnate turned politi- 
cian. Mr Berlusconi's efforts to 
form a government are f«md- 
ering on the insistence of the 
populist Northern League or 
Mr Umberto Bossi on the key 
portfolio of the interior minis- 
try. 

Mr Bossi has threatened to 
stay out of the government 
unless this post is given to the 
if the deadlock is not 
broken within the next 24 
hours, Mr Berlusconi could 
well have to rely for his main 
support outside his Forza Italia 
movement on the MSI. The 
League would merely offer 


unstable external backing in 

parliament. 

In Strasbourg the Socialists 
also decided to expel from their 
bloc any MEP seen as siding 
with Mr Berlusconi’s Form 
Italia group- They have time 
to four MEPs in their sights, 
including Ms Marla Magnani 
Noya, a vice-president of the 
Parliament for the nearly 
defunct Italian Socialist 
Party'. 

Lost week, the so-called 
Rainbow Group of regional 
parties in the parliament asked 
its two members from the Lom- 
bard League - the third de- 
ment in Mr Berlusconi’s coali- 
tion - to leave their bloc, 
because oF their alliance in 
I taly with the neo-fascists. 


Spain’s prime minister is given the benefit of the doubt as corruption scandals claim more victims 


Markets recover after going to brink 


By Tom Bums to Madrid 

Jittery stock, bond and 
currency markets were belat- 
edly gr ring Spain’s embattled 
prime minister, Mr Felipe 
Gonzdlez, the benefit of the 
doubt yesterday as he strug- 
gled to regain the initiative in 
the face of a series of corrup- 
tion scandals tbat have rocked 
his government. 

The stock market began the 
day by plunging to a one-year 
low and the peseta depreciated 
sharply until investors' nerves 
steadied as Mr Gonzalez, in a 
pre-lunch press conference, 
pledged to regain the in i tia tive . 

A succession of scandals, 
which have prompted the res- 
ignation of two cabinet minis- 
ters and turned the former 
head of the paramilitary civil 
guard into a fugitive from jus- 
tice, claimed their most senior 
political victim yesterday when 
Mr Carlos Solchaga, former 
finance minister, resigned as 
parliamentary leader of Mr 
Gonzalez's ruling Socialist 
party. 

Hours earlier Mr Mariano 
Rubio, twice appointed by Mr 
Solchaga as governor of the 
Bank of Spain, was arrested 
and held in custody on fraud 
charges along with his friend 
and former broker Mr Manuel 
de la Concha, a former 
head of the Madrid stock 
exchange. 

Mr Gonzalez’s announce- 
ment that he would neither 
resign nor call a snap election 
chocked an early morning run 
on the peseta that brought it 
down to Pta83 against the 
D-Mark from Wednesday’s 
PtafB.l fix and the currency 
ended the day at Pta8&3. 


Spain: s candal s take their ton 


Peseta AQoinstttw. DM pta par CM) 
80S 


Stock market Madrid SEIndox 
380 



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100% -r 


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Jan 


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Mm Mariano Rubto 

former governor, Bank ctf Spain 


The prime minister’s move 
also reined In a widening 
spread in benchmark 10-year 
bond yields. The spread for the 

rinwiBstin hrairia pushed UP tO 
320 basis points a gains t Ger- 
many’s long-term bonds before 
foiling to close to 300 bams 
points amid considerable vola- 
tility. 

The Madrid stock market 
general index, which had 
dropped to a year-low of 307 in 
early trading after a foil of 
nearly six points on Wednes- 
day, rallied in the afternoon to 
ck>i» at 31625, L5 per emit up 
on Wednesday's close. 

Analysts stressed that the 
beleagured Mr Gonz&lez may 
have only gained a passing 
relief far the Spanish ™arkt»ts- 
Tt could be only a temporary 
respite, 1 ’ said Mr Antonio Pul- 
ido of Madrid broker's FG. “We 
have not seen volatility like 
this since the general elections 
last June.” 

The consensus view is that 
the political uncertainty which 
fuelled the volatility will not 
be wholly resolved until after 


the European elections on 
June 12 when the govern- 
ment’s popularity will be 


“On June 13 we win know 
whether Gonzfllez is really 
strong enough to ensure stabil- 
ity," said Ms Monica Morales, a 
senior broker at Sotifitis GdnGr- 
ale In Madrid. 

The markets stiQ appear to 
perceive Mr Ganzfilez as living 
on borrowed time and as a hos- 
tage of the Catalan nationalists 
in parliament who have so far 
supported his government. 
They forecast tbat a humiliat- 
ing defeat for his Socialist 
party next month would 
prompt the Catalans to with- 
hold their support and trigger 
an, October election. 

The markets also fear, in 
particular, that a further bout 
of corruption disclosures by 
the press could rock Mr 
Gonzdlez’s credibility once 
more. “There are still a few 
loose cannon on the Spanish 
deck," said Mr Robert Maxwell 
of Madrid brokers Maxwell and 
Espinosa. 



Solchaga: Socialist parliamentary leader and former finance 
minister is scandal's most senior victim Tony km 


Mitterrand rules out nuclear tests 


By David Buchan In Paris 

President Mitterrand forecast 
yesterday that France would 
never again set off test explo- 
sions of nuclear weapons, 
unless another major atomic 
power broke the test morato- 
rium which the French leader 
set in train two years ago. 

Mr Mitterrand reaffirmed 
that he would not allow 
nuclear tests during his 
remaining year in the Elyste, 
and predicted that his succes- 
sors would not dare resume 
testing for fear of “offending 
the whole world by relaunch- 
ing the unclear arms race”. 

Delivering a 90-minute dis- 
course on his nuclear policy to 
France's military establish- 
ment, Mr Mitterrand's state- 


most was as much a challenge 
as prediction to Mr Francois 
Leotard, the defence 
who sat poker-faced in front of 
hhn. i.ike most in the conser- 
vative government, Mr Leo- 
tard is committed to at least 
re-examining the unclear test 
issue once the socialist presi- 
dent leaves office next May. 

Indeed the president chal- 
lenged the French military 
establishment to have the “tal- 
ent and Imagination” to keep 
France's atomic arsenal up to 
date by simulating teste in lab- 
oratories rather than by set- 
ting off more explosions in or 
muter Its Mururoa atoll in the 
south Pacific. The FFrlObn set 
aside for unclear test simula- 
tion in the defence spending 
programme for 1995-2000 gave 


it sufficient resources, Mr Mit- 
terrand dahned. 

Most French conservative 
defence experts believe that 
France still needs a few more 
live teste, if only to calibrate 
laser, radiographic, and com- 
puter techniques used in labo- 
ratory simulation. 

But the president claimed 
France need not fear “any 
nasty surprise” by renouncing 
testing, and so setting an 
example to other near-nuclear 
countries in the renegntation 
of the Non-Proliferation 
Treaty next year. The US was 
the only nndear power winch 
could make gains relative to 
France, because Washington 
had been working on simula- 
ting tests since the early 
1960s, and Franco-American 


relations were sufficiently 
good tbat France had nothing 
to fear bom that quarter. 

However, Mr Mitterrand yes- 
terday showed himself a tradi- 
tional ganllist tax every other 
aspect of nuclear power. A 
French president could not 
share the decision to use 
nuclear weapons “with any 
foreign authority”, he said, 
and that was why France had 
been right to leave Nato’s inte- 
grated command tn 1986 and 
to stay ont. Eventually, 
Europe might be sufficiently 
united politically for France to 
consider Its vital national 
interests synonymous with 
those of its European Unkm 
partners. But the pro-Euro- 
pean president implied that 
day was still distant 


Swedes *11131 to larger EU’ 


By Uonof Barter in Helsinki 

Enlargem ent of the European 
Unkm could be jeopardised if 
Swedes vote No In their refer- 
endum, Mr rcrirn Aho , Finnish 
prime minister, warned yester- 
day. 

His warning introduced fresh 
uncertainty witn {tens to admit 
Austria, Finland, Sweden and 
Norway into the Union by Jan- 
uary 1 1995. The Furnish pre- 
mier suggested that some of 
the gristing 12 member states 
might refuse to ratify the 
accession treaties for Austria, 
Finland and Norway if Sweden, 
which win be a net contributor 
to the EU budget, declined to 
join. The treaties must be rati- 
fied by all 12 EU member 


Polls show solid support for 
EU member shi p in Austria and 
Finland, th o ug h many remain 
undecided. In Sweden a well 
funded campaign coupled with 
an unpopular government 
left the outcome of the referen- 
dum in doubt Norwegians are 
seen as the most resistant to 

wwnnh erahip. 

The Finnish government is 
in the mifldta of rtHTWmit inter- 
nal negotiations cm the size of 
compensation to be paid to 
Finnish Dinners who most 
drastically reduce their pro- 
ducer prices to EU levels once 
Finland joins the Union. The 
cost to the national budget is 
likely to be 10 billion markkas 
(SLSbn), Mr Aho said. 

Air Abo's centre party is split 
over membership, because of 


its ties to the forming lobby. 
But behind his remarks lies a 
broad concern about F inland 
joining a future Union without 
Sweden, its large and wealthy 
neighbour. This has led to divi- 
sions within the government 
about tiie timing of the Finnish 
referendum. 

Mr Aho said he favoured 
holding a referendum on the 
same day as Sweden, that is 
some time after the Swedish 
general election in September. 

But president Martti Ahti- 
saari said he supported an 
early Finnish referendum 
before the Swedes vote. “There 
is no question that our vote 
will have an effect on others. If 
we vote Yes, we can do a 
favour for ourselves and a ser- 
vice for Europe as well." 


GONZALEZ’S 
WEEK OF 
DISASTERS 

FRIDAY - Ex Civil Guard 
chief Luis Rolddn foils to 
appear before magistrate 
and vanishes. 

TUESDAY - Roldan threat- 
ens in Interview to bring 
others down with him. 

WEDNESDAY - Farm mMs- 
ter Vicente Aibero resigns, 
admitting he failed to pay 
some tax on Investment 
portfolio. 

- Former Bank of Spain gov- 
ernor Mariano Rubio and 
former stock exchange chief 
Manuel de la Concha 
arrested on charges of tax 
fraud and falsifying docu- 
ments. 

- international arrest warrant 
Issued for Roldan to face 
charges including bribery, 
fraud and misappropriation 
of public funds. 

THURSDAY - Rubio and De 
la Concha remanded at 
Madrid’s Carabanchei JaiL 

- Former economy mJnlstar 
Carlos Solchaga resigns as 
Socialist parliamentary 
leader and MP over Rubio 
affair. 

- Former interior minister 
Jos6 Lute Corcuera resigns 
as MP over Roldan affair. 

- Justice minister Juan 
Alberto Belloch takes ovsr 
Interior ministry. 

- Energy undersecretary 
Luis Atienza promoted to 
agriculture minister. 

- Prime Minister FeUpe 
G onz6lez says he wfll stay 
on to fight corruption and 
pursue economic recovery 
programme, and rejects 
snap election. 


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FINANCIAL TIMES FRIDAY MAY 6 1994 


NEWS: EUROPE 


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EUROPEAN NEWS DIGEST 

Swedish interest 
rate reduction 

Sweden’s central bank, the Riksbank, yesterday cut interest 
rates to their lowest level for 20 years to consolidate the 
country’s recovery from its deepest recession since the 1830s. 

The tank’s marginal rate, which steers short-term interest 
rates, will fall to 7.0 per cent from 7.25 per cent from May 9. 
The bank said falling: European interest rates and the krona's 
stable performance during recent financial market turbulence 
had provided scope for the cut. The krona has Men by 20 per 
cent late 1992 but this year it has strengthened awiiri 
clear signs of an export-led recovery. 

Mr Thomas Franzen, Riksbank deputy governor, said that 
with Swedish inflation subdued, “there is scope for lasting 
lower interest rates in Sweden". He also noted that there was 
a general acceptance that Sweden would have to pursue 
tighter fiscal policies to promote growth and employment 
The Riksbank has attracted criticism for not cutting rates 
more aggressively over the last 18 months, despite the coun- 
try’s deep economic problems. Real interest rates remain high, 
with inflation naming at less than 2 pm- cent The government 
expects Sweden's GDP to grow 2.4 per cent this year, the first 
increase since 1990. Christopher Braton-Htmies, Stockholm. 

Italian insurance sell-off pledge 

Privatisation of Istituto Nazkmale deUe Assicurazioni (Ina), 
Italy's state-owned insurance company, is still cm schedule in 
spite of the fact that Rome prosecutors are investigating the 
group's chairman, Ina advisers said yesterday. 

Magistrates revealed' an Wednesday night that they had 
warned Mr Lorenzo Panes! that they were, conducting inqui- 
ries iwtn alleg ed falsify in g of accounts and fraud, following up 
their earlier mqrm-wR into the operations of the Rome branch 
of the company's Assitaha subsidiary between 1990 and 1992. 
Ina has played down the significan ce of the inquiry. The 
company pointed out that Mr Pallesi had only been targeted 
by the magistr a tes because he was formally responsible for the 
group at the time, thou gh not directly involved in manage- 
ment of the Rome branch. 

Four other Ina- Assitaha executives were warned about the 
inquiry in March. Even before Wednesday's events, delays in 
the formation of a new Italian government had begun to cast 
doubt on the timetable for the Ina privatisation. The sell-off is 
scheduled for the end of Jnne, bat most of the important 
political decisions about privatising Ina have still have to be 
taken. Andrew Bill, Milan. 

Alcatel subsidiary in new probe 

Mr Pierre Guicbet, chairman of Alcatel CUT, the French tele- 
coms eq uipment manufacturer , has been placed under judicial 
investigation in a case concerning alleged overcharging of , 
France Telecom, one of the group’s principal customers, the 
company said yesterday. Alcatel CTT, a subsidiary of Akatei- 
Alsthom, one of France's largest industrial groups, said in a 
statement it had not overcharged or forged billing for France 
Telecom and expressed surprise at the Investigation. 

The origins of the affair date back to last year, when two 
employees of Alcatel CTT were accused by the company of 
manipulating prices for equipment ordered by France Tele- 
com. Alcatel CTT agreed in November to pay France Telecom a 
sum of about FFrfQm (S103m) to compensate for the losses 
arising from the manipulation of prices and the damage to 
relations between the two companies. Alcatel GTT said it had 
written a letter to the investigating magistrate criticising the 
procedure being followed in the case. Mr Guicbet was placed 
under judicial investigation for the overcharging case immedi- 
ately after having being questioned about allegations that be 
had work done at his home by companies working for Alcatel 
CTT. Alcatel CIT said teat Mr Guichet had himself paid for the 
work at his home and that no charges had been brought 
concerning this subject John Ridding, Paris. 

Bourse watchdog fines Tapie 

Mr Bernard Tapie, the controversial French politician and 
businessman, has been fined FFrlm (£110,000) by the Paris 
stock market authorities for disclosing inaccurate information 
about Testut, a company he chaired from 1987 to 1992 Mr 
Tapie was criticised for releasing information in 1990 which 
“did not seem to be either accurate, precise or sincere". The 
fine is the latest in a long line of brashes between Mr Tapie 
and the French financial establishment It comes at a time 
when Mr Tapie, who was briefly minister of urban affairs in 
the last socialist cabinet, is leading the European election 
campaign for MRG, a group of left-wing parties dubbed Les 
Tapistes by the French press. So far Mr Tapie’s political 
fortunes seem to have been helped rather than hindered by his 
scuffles with the authorities. MRG has recently risen rapidly 
in the opinion polls to reach around 10 per cent Alice Raw- 
sthom, Paris. 

Bosnian Serbs reject land deal 

Bosnian Serb leaders again quashed hopes for a settlement by 
yesterday rejecting a previously agreed arrangement which 
traded land for peace. 

Referring to EU plan for Serbs to keep 49 per cent of Bosnia 
and Moslems and Croats to control 51 per cent. Mr Momcilo 
Krajisnik, speaker of the Bosnian Serb assembly, said: “Mos- 1 
[eras and Croats do not have the moral right to such a 
percentage of territory since they never have controlled such 
an area." Earlier, Mr Douglas Hogg, British foreign office 1 
minister, in Belgrade to meet President Slobodan Milosevic of , 
Serbia, stressed the importance of the “land for peace" deal 
Mr Hogg said: "The allocation of 49 and 51 per cent is very , 
firm. We do not want to see firm points shifted.*’ In Sarajevo, , 
another earlier arrangement was buckled. Mr Yasushi Akashi, 
UN envoy, agreed to allow seven Serb tanks to pass through i 
the 20km exclusion zone around the city despite Bosnian ! 
government protests. Laura SUber, Belgrade. 

ECONOMIC WATCH 

France trims key interest rate 

Frames' The Bank of France yesterday 

took a further step in its pol- 
lntefventian rate (%) icy of edging interest rates 

lower, trimming the interven- 
tion rate, the floor for money , 
market rates, by 10 basis 1 
points to 5.6 per cent The : 
move was the third in three . 
weeks and is consistent with 1 
the central bank’s policy of I 
gradually lowering borrowing : 
costs to support emerging ! 
economic recovery. Inflation, j 
currently at an annualised | 
rate of about 1.5 per cent, j 
poses little constraint. The | 
• . W9 ®‘ 94 •: Bank of France has been i 

Sauer. Dnt&gtnom tracking tbe downward trend 

in German interest rates and is targeting the Bundesbank’s 
repo rate. Yesterday's cut brought the margin above the repo 
rate to just under 22 percentage points. The Paris stock 
market welcomed the move. The CAC-40 index of leading 
shares doubled its morning gains following the news, dosing 
up 0.98 per cent at 2,162. The French franc took the rate cut in 
its stride, trading at about FFV3-428 to the D-Mark. John 
Ridding, Paris. 

■ The Polish finance minister, Mr Grqpre Kolodko. said yes- 

terday the country was on course for minimum growth In the 
iwinftrpy of 4 per cent this year, and forecast that 4.5 per cent 
to 4.7 per cent could be achieved. . „ 

■ Car deliveries in Italy fell by per cent in April year-oo- 
year against a US per cent rise in March, the carmakers’ 
association, Anfia, said. Anfia said 169,945 cars were sold in 
Italy last month, against 174,758 in the same period last year. 

■ Spain’s official currency reserves fell $ 126 . 1m to $44.73bn in 
April from March, according to provisional figures released by 
the Bank of Spain. 


9.5 r 



Massive electoral fraud alleged in Russia 


By John Lloyd in Moscow 

The December 12 referendum 
which approved the Russian 
constitution was invalid 
because the required 50 per 
cent of voters did not take 
part, according to a report by 
a team of experts working for 
the presidential administra- 
tion. The report, whose main 
author yesterday insisted on 
its acemacy, alleges massive 
corruption at every level of 
vote counting. 

The potential importance of 
the. (hidings -if shown to be 
correct and if acted upon - is 
great Hie report’s author, Mr 
Alexander Sobyanin, claims 


that only 49m voters out of 
106 . 2 m took part to the refer* 
endnm on the constitution - a 
percentage of only 46. L, well 
short of the 50 per cent mini , 
mum and even further down 
on the 54£ per cent claimed by 
the Central Election Commis- 
sion very soon after the voting 
ended. 

The findings could tear the 
heart out of the efforts by 
President Boris Yeltsin to 
place the constitution as tbe 
foundation stone of Russian 
democracy. He has persuaded 
most of tbe Russian party 
leaders to sign a “treaty on 
civil accord" which pledges 
that no efforts will be made to 


amend the constitution for two 
years. The treaty was signed 
yesterday by 141 representa- 
tives of Russian enterprise 
iminns ami associations. The 
report, excerpts of which have 
been printed in the daily news- 
paper, Izvestiya, also said that 
extensive stuffing of ballot 
boxes and rewriting of results 
at the regional voting bead- 
quarters resulted in huge dis- 
tortions. 

It alleged that the Liberal 
Democratic party (LDP), the 
ultra-nationalist group led by 
Mr Vladimir Zhirinovsky, 
whose victory in that part of 
the parliament chosen from 
party lists was the main shock 


of the elections, received 6m 
unwarranted votes -with the 
Russian Communist party 
gaining l Jtm, the pro-commu- 
nist Agrarians receiving 1.7m 
and the Women of Rus- 
sia - also pro-Commu- 
nist- lm. 

Tbe main loser among the 
parties, said the report, was 
Choice of Russia, which suf- 
fered a shortfall of 2m votes. 

However, the present signs 
are that the report will not be 
allowed to receive much atten- 
tion. Both Hr Sergei Filatov, 
the president’s chief-of-staff 
and Mr Nikolai Ryabov, the 
head of the electoral commis- 
sion, rejected the report’s find- 


ings. Mr Filatov is reported by 
Russian journalists to have 
deprived Mr Sobyanin’s group 
of its working dacha on the 
outskirts of Moscow, and to 
have had it sealed. 

Mr Ryabov told Izvestiya: “I 
cannot say that nothing of this 
sort took place. . . (but) to talk 
of massive falsifications and 
breaches of the rules in this 
way has no grounds in 
reality.” 

However, Mr Sobyanin, in 
an interview from his Kremlin 
office, stood by the report “I 
am certain the facts are right 
because many of the breaches 
were so obvious. It was quite 
obvious that in some regions 


the results were way out of 
tine." Mr Sobyanin said that 
he had not discussed the 
report with Mr Filatov, bnt 
had with other officials and 
“there is some concern". Fol- 
lowing publication of parts of 
his report, Mr Sobyanin said 
his contract with the govern- 
ment had not been renewed. 

A separate report on expen- 
diture of the parties daring 
the election alleges that 
Choice of Russia spent almost 
30 times more on the cam- 
paign per deputy elected than 
the LDP-Rbs47.9m per dep- 
uty against RbsLTm. The for- 
mer won 40 seats, the latter 
59. 


Austrian trade union bank faces inquiry 


By Patrick Blum fai Vienna 

The Austrian state prosecutor 
has la unche d an investigation 
into the country's large trade 
union bank Bawag - the coun- 
try's fourth largest bank - and 
its chairman, Mr Walter 
Floettl, following anonymous 
allegations made by two of the 
bank's senior officials. 

The officials have alleged 
that Mr Floettl concealed from 
the bank’s supervisory board 
high-risk trading activities 
undertaken by his son with 
money from the bank and that 


he evaded taxes. The prosecu- 
tor’s inquiries follow another 
investigation launched just 
over a week ago by the finance 
ministry after it was alleged 
that Mr Floettl had authorised 
loans worth almost Sch21bn 
(£1.16bn) to Caribbean-based 
offshore companies run by his 
son Wolfgang. The latter 
Floettl is «aid by the finanea 
ministry to have used the 
money for high-risk specula- 
tive ffnanriai operations on the 
international debt market The 
loans were not clearly dis- 
closed in the bank's annual 


report, say the authorities. 
Last Friday. Mr Anton SLanzel, 
who is responsible for bank 
supervision at thp flown ra min- 
istry, said that nothing had 
been found during the minis- 
try's own investigation to sug- 
gest criminal activity by the 
Floettls and Bawag (Bank Fhr 
Arbeit und Wirtschaft). 

Nevertheless, the ministry 
decided that further investiga- 
tions were needed to assess the 
risk and propriety of the trans- 
actions. 

“There is no evidence of 
criminal activity, but investi- 


gations continue to check that 
(all transactions) were done 
according to the banking act” 
Mr Stanzel said this week. 
“There were very high risks 
involved,” be said. The minis- 
try's investigations are expec- 
ted to be completed by the end 
of the month. 

The ftnanniai authorities are 
particularly concerned that tbe 
bank’s standing should not be 
damaged by the affair. Tbe 70- 
year-old Mr Floettl has 
strongly rejected any sugges- 
tions of impropriety on his or 
his son’s part, though he 


admitted the transactions 
that had taken place for 
nearly six years were 
unconventional. 

The bank, however, had not 
lost any money as a result, and 
he promised all such positions 
would be closed by the end of 
this month, and the business 
ended. 

Mr Stanzel, said on Wednes- 
day that about half of the 
money had been returned, and 
he hoped the r emaining posi- 
tions could be closed without 
loss. 

“We’ll sleep better if this (the 


rest of the money) comes 
back," Mr Stanzel said. Ironi- 
cally, until now the bank, with 
its traditional strong ties to the 
unions and the social demo- 
crats, was regarded as one of 
the most successful and con- 
servatively run banks in 
Austria. 

The social democrats, who 
pride themselves on their abil- 
ity to be better managers than 
their conservative rivals, now 
face damaging publicity which 
comes only a few months 
before general elections due in 
October. 



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NEWS: INTERNATIONAL 


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SOUTH 

AFRICAN 

ELECTIONS 


Black South 
Africans, espe- 
cially in the 
troubled prov- 
ince of Natal/ 
KwaZulu, can 
be forgiven for 
wondering 
what elections 
are all about 
Last week they 
queued for hours to cast their 
votes In the country's first 
democratic elections. This 
week, their political leaders 
have been trading votes like 
football cards, openly firing 
the result of the poll to try to 
keep the peace. 

Patti Waldmeir 
on vote swapping 
in northern Natal 


In Rmpanpnni , centre of the 
much-disputed voting area of 
northern Natal, Mr Senzo 
Mchunu, African National Con- 
gress regional secretary, makes 
no effort to hide what is going 
on. "To us, the priority is 
peace.* says the man who 
beads the ANC in this strong- 
hold of the rival inkatha Free- 
dom party. 

“Obviously, the elections 


President Bill Clinton officially announced a S800m aid plan 
for South Africa yesterday, and said Vice President AI Gore 
will Hillary Rodham Clinton would attend % inauguration 
on Tuesday of Mr Nelson Mandela as its first black president. 
Renter reports from Washington. 

“Today I am announcing a substantial increase in our 
efforts to promote trade, aid and investment in South Africa. 
Over the next three years, we wffl provide and leverage 
about SSOQm," Mr Clinton said. At a White House ceremony 
attended by many prominent anti-apartheid activists, including 
black drvfl rights leader Jesse Jackson, Mr Clinton said he 
had spoken by telephone with Mr Mandela and outgoing 
President F. W. de Klerk just before the ceremony to to 
congratulate them on South Africa’s first all-race elections. 


were not free and Mr. There 
has been rigging, extensive rig- 
ging,'’ he says. [The IFP won 73 
per cent of the provincial vote 
in this area, against 16 per cent 
for the ANC.] “But we think 
it’s a very narrow line of think- 
ing to say, just reject the 
results. That would not resolve 
anything. Based on the reality 
in Natal, the ANC should have 
emerged as the winning party, 
and whatever deal is made 
should reflect that. But you 
must remember these people 
[ZFP] have been told they are 
w inning so any deal yon make 
must make it less shocking to 
them.” 

Mr Mchunu hints he would 
approve a deal which shared 
voting totals equally between 
the two parties, whatever the 


official electoral tally shows. 
Each would gain some 40 to 45 
per cent of the vote with the 
outgoing National party hold- 
ing the provincial of 

power. 

Under South Africa’s consti- 
tution, they would be farced to 
share power in the provincial 
executive in any case, with 
seats allocated proportionately. 
“But there can only be one pre- 
mier,” and it cannot be the 
IFP’s candidate. Dr Frank 
Mdlalose, he 

Mr Mchunu believes the 
ANC has found a way to bridge 
these two positions and Is pre- 
paring to announce what it is. 
The Independent Electoral 
Commission, charged with can- 
ducting the poll and certifying 
its outcome, appears to be 


holding back the results of the 
RmpangPTj j mnnt to give 
politicians time to do their 

work. 

Mr Mchunu has his own 
complaints about the EEC: 
“Chaotic right f r om office 
to the last to**"; unab le to fi oA 
Information which they want; 
nyiahip to ensure that elections 
are free and Mr.” 

Mr Mchunu acknowledges 
there is no way of knowing 
how many irregularities can he 
explained by human error, say- 
ing that Tnfotakeg are inevita- 
ble in an area where even the 
presiding officers have never 
before voted. 

Only in the case of the small 
number of boxes filled with 
pre-stacked papers could one 
confidently assert fraud. Given 
some 119,000 people voted out 
of a voting population of 

150,000 in the Rmpangen i area, 
there is no evidence of massive 
voter inflation. That does not 
mean fraud d id not taka place 
on a large scale -it simply 
Tnftang with DO voter rolls and 

no record of votes cast, it wifi 
be impossible to draw the line 
between fraud and error. That 
Is the real problem: South 
Africa's electoral process has 
failed to oonfar legitimacy an 
the result. Only politicians can 
do that now. 



A man preparing materials yesterday to build a shack ta a 
squatter camp near the South African port of Durban. Housing is 
one of the new governments most acute problems 


NEWS IN BRIEF 


Clinton protests at 
Singapore caning 

Singapore yesterday carried out a caning sentence on Michael 
Fay, 18, a US citizen convicted by a local court of vandalism 
offences, including spray-painting cars. President Bill Clinton 
said bluntly that Singapore had committed “a mistake”, write 
Kieran Cooke in Kuala Lumpur and Jurek Martin in Washington. 

The error was “not only because of the nature of the punish- 
ment related to the crime but because of the questions raised 
about whether the young man was in fact guilty and involun- 
tarily confessed”. 

Mr Clinton promised a more definitive reaction later. Mean- 
while, the Singapore ambassador was summoned to the state 
department to receive US protests. 

Fay received four strokes of the rotan, a 4ft cane. He had 
originally been sentenced to four months' jail, and fined SS&500 
(£1,489), with six strokes of the cane. 

The Fay case has caused considerable co n troversy in the US. 
Singapore has accused the US media of orchestrating a campaign 
against it and has insisted no one has the right to interfere in 
the workings of its judicial system. Official figures show Singa- 
pore (population under 3m) canes about 1,000 people each year. 

India share sale raises Rs23bn 

India has raised Rs23bn (£483m) from its latest round of sales of 
shares in state-owned enterprises, securing much-needed funds 
for the government and extending its economic liberalisation 
programme, Stefan Wagstyi reports from New Delhi. 

Foreign institutional investors, permitted to bid for the first 
time, snapped up part of the offering, the fifth since launch of 
economic reforms in mid-1991. Stock in seven companies was on 
offer, including Mahangar Telephone Nlgam. the domestic tele- 
communications carrier serving Delhi and Bombay, which 
accounted for nearly 60 per emit of the total sale. 

The total raised foils short of the original target of Rs35bn for 
disinvestment In 1993-94. Slice 1891, the government has raised 
Rs73bu and hopes for another Rs40bn in this financial year. 

The government, which has sold shares in 31 out of 230 
centrally owned enterprises, intends to retain control of most by 
maintaining a minimum holding of 51 per cent Foreign institu- 
tions which successfully bid for stakes include funds managed 
by Morgan Stanle y of the US, the investment management arms 
of Britain’s BZW and of Hong Kong-based Jardine Fleming. 

Refugees swamp Rwanda camps 

Nearly half a million people have fled Rwanda to escape tribal 
massacres in the central African country, M&fecins sans Fron- 
tiferes, the medical charity, said yesterday, Leslie Crawford 
writes from Nairobi The upheaval has created the largest make- 
shift refugee camp in the world at Benako, in northern Tanza- 
nia. MSF says between 150,000 and 200,000 destitute and 
exhausted refugees have gathered at Benako. A nearby river 
marking the border between Rwanda and Tanzania has become 



9 

Rwandan refugees rush to collect water at a lake near a Red 
Cross centre dose to the Tanzanian border 


polluted with corpses. Aid workers fear the outbreak of disease. 
Rebels of Rwanda’s Tutsi minority have been fighting the domi- 
nant Hutu ethnic group for control of the country. But Tanzania 
said Rwanda’s interim government yesterday signed a paid to 
stop the fighting and massacres. It said rebel forces had also 
agreed to implement R from tomorrow. 

Nigeria fuel distribution recovers 

Nigeria’s domestic fuel distribution is slowly recovering from 
the near-paralysis of last week, as the government’s ultimatum 
for Its state-owned Nigerian National Petroleum Corporation 
(NNPCl to ease the shortages has expired without further com- 
ment from the military regime, Paul Adams writes from Lagos. 

NNPCs two oil refineries in Port Hareonrt are back in opera- 
tion and large imported fuel shipments have arrived, but NNPC 
and the private-sector fuel marketers warn the relief is tempo- 
rary and fundamental problems remain within Hie Industry. 

The low price of N3J25 (6 US cents) a litre of petrol imposed by 
the government is half the cost of importing the fuel or produc- 
ing it in Nigeria, depriving the domestic oil industry of working 
capital and giving black market operators, who smuggle it 
abroad or hoard it in Nigeria for sale during shortages, 500 per 
cent margins. 


Hata tries to defuse 
row over Nanking gaffe 


By wntam Dawkins in Tokyo 

China and South Korea 
yesterday reacted angrily to 
claims by Mr Shigeto Nagano, 
the new justice minister, that 
one of Japan's worst wartime 
atrocities was a “hoax.” 

In an effort to defuse the 
row, Japan’s prime minister 
Tsutomu Hata, condemned Mr 
Nagano’s Haim that the 1937 
massacre of Nanking was a fic- 
tion as “not appropriate.” 

Mr Nagano is expected to 
issue a public apology today, 
according to reports in the Jap- 
anese press. 

Mr Hata said Japan’s war- 
time actions “including aggres- 
sion and colonial rule, caused 
unbearable suffering and sor- 
row for many people; thus it is 
essential— to face the history 
squarely and share the deter- 


mination not to repeat them.” 

China, Japan’s second larg- 
est trade partner after the US. 
was “shocked and indignant," 
said a Chinese foreign ministry 
spokesman. He urged the 
Tokyo government earnestly 
and seriously to treat the issue 
with a view to safeguarding 
trilateral relations,” an implied 
demand for Mr Nagano’s dis- 
missal. 

Japan last year stepped up a 
gradual campaign to improve 
relations with Asian neigh- 
bours when former prime min- 
ister' Morihiro Hosokawa 
issued a series of apologies, 
admitting that the war was 
aggressive and wrong. 

Officially, the new govern- 
ment wishes to continue that 
process, though a right-wing 
minority supports Mr Nagano’s 
stance, as reported in 


the Maimchi newspaper. 

Mr Nagano's gaffe has far 
more impact today than it 
might have had a few years 
ago and damages Japan's cur- 
rent attempts at a reconcilia- 
tion with former colonies at a 
time when Tokyo is seeking to 
increase trade and investment 
with them. 

It also provides amimmftinn 
for the minority government’s 
numerous opponents, only a 
week after the Hata adminis- 
tration took office. 

According to a post-war tri- 
bunal, Japanese troops killed 

155,000 people in the six weeks 
after taking Nanking, though 
Chinese accounts put the fig- 
mu at 300,000. 

Mr Hata, on a European tour 
until the weekend, said he 
would ask Mr Nagano what he 
meant by his remarks. 


Sri Lanka shares fall on 
fears for government 


By Stefan Wagstyi In New 
Delhi and Mervyn de SBvb in 
Colombo 

Sri Lag fran shares have fallen 
sharply this week amid con- 
cerns about the stability of 
president DJ3 Wijetunga’s gov- 
ernment. 

The sell-off was prompted by 
Mr Wijetunga’s decision late 
last week to cancel a visit to 
China to deal with the turmoil 
in the ruling United National 
Party, and by a big May Day 
rally organised by a united 
front of opposition parties and 
attended by over 100,000 peo- 
ple. 

Evidence of the dwindling 
popularity of the UNP and 
strong support for the left-in- 
clined opposition parties, 
headed by the Sri Lanka Free- 
dom Party, unnerved investors. 
Even though share prices ral- 
lied on Wednesday mid yester- 
day, after a 4J> per cent fall in 
the all-share index on Tuesday, 
the mood remains nervous. 

Businessmen and brokers 
fear that political turmoil 
could continue for months, 
with presidential elections due 
later this year and a general 
election in early 1995. 

Mr Alavi Mahroof, a Col- 
ombo stock exchange broker, 
said: “Local investors are wor- 
ried about current political 
trends”. 


Sri Lanka 

IFC Index. 30/8/93 = IDO 
200 



Share prices rose sharply 
last year, fuelled by strong eco- 
nomic growth and a surge of 
foreign investment caused by 
the worldwide fashion for 
investing in emerging markets. 
The market gained more than 
70 per cent in dollar terms in 
1993, according to data by the 
IFC, a member of the World 
Bank, but so for this year It is 
down 3 per cent. 

Equities have since fallen 
back, heavily Influenced by the 
increase In U5 interest rates 
and domestic political upheav- 
als. Mr Stanley Jayawardena. 
rhairman of the Securities and 
Exchange Commission, the 
market watchdog, said: ”A cor- 
rection was bound to come. 


But this is also a reaction to 
political events”. 

The political storm began in 
March when the UNP suffered 
its first electoral defeat in 17 
years in provincial polls in the 
island’s southern province. Mr 
Wtfetunga, who succeeded the 
assassinated president Rana- 
singhe Premadasa last May, 
reacted with a string of popu- 
list financial hand-outs, includ- 
ing tax cuts and foo<tstamp6 
for schoolchildren. 

But he could not take the 
wind out of the sails of the 
opposition parties, which sense 
a potential victory in the presi- 
dential and national polls. 

Meanwhile, a temporary 
change of leadership has 
breathed new life into the Sri 
Lanka Freedom Party. Mrs Sfr- 
j roa Bandaranaike, the former 
president who heads the party, 
has been forced to go to hos- 
pital. leaving the field open for 
her firebrand daughter, Mrs 
Chandrika Kumara tungs, the 
main speaker at the May Day 
rally. 

Colombo has also suffered an 
unwelcome reminder of the 
continuing war with the Tamil 
Tiger separatist guerrillas in 
the north. 

Terrorists planted bombs in 
luxury hotels In the capital last 
month, ranging little damage 
but potentially harming the 
tourist industry. 


Multi-tier 
rate puts 
Iran in 
reverse 

By Sche he razade Daneshkhu 

The decision by Iran’s 
government late on Wednes- 
day to re-introduce a multi-tier 
exchange rate Is a backward 
step for President All Akbar 
Basham! RafosapjanL 

Mr Mohammad Adeli, gover- 
nor of Bank Markazi (the cen- 
tral bank) has said st a te hawks 
wifi sell dollars at 50 rials 
below the open market rate for 
cer tain imports from tomor- 
row. He has not specified to 
which imports the new rate 
would apply. 

The official floating 
exchange rate set by Bank 
Markazi is about 1,750 rials to 
the dollar bat the rial has 
weakened on the open market 
since the beginning of the year 
to 2£00 yesterday because of 
low oil prices and high 
demand far foreign exchange. 

Reintroduction of a new rate 
undermines the difficult deci- 
sion the government made last 
year when it unified three dif- 
ferent rates in favour of a sin- 
gle floating rate in line with 
International Monetary Fund 
recommendations. At a stroke, 
the rial was effectively deval- 
ued from 70 rials to the dollar 
to 1,540. At the time, Mr Adeli 
hoped that the curr ency would 
strengthen to IR1,000=$L 

The rial has steadily 
declined and Bank Markazi 
has been following behind, re- 
pegging its floating rate to 
reflect the open market value. 
The devaluation has fuelled 
price rises and inflation is 
thought to run much higher 
than the official 22 per cent. 

The price of utilities and 
transport all rose steeply ear- 
lier tills year but the Majlis 
(parliament) has vetoed moves 
by President Rafsanjani to 
reduce the expensive burden 
on the state of fuel subsidies 
because of fears of a public 
outcry. 

Last month, transport work- 
ers in the southern city of 
Shiraz went on strike demand- 
ing pay Increases. Falls in the 
price of oil towards the end of 
last year have meant Iran 
earned only $13 .5 bn (£9bn) in 
the Iranian year recently 
ended (March 21) instead of a 
budgeted $i7bu. 

This has increased its debt 
burden, although $5.5bn of its 
estimated $14bn short-term 
debt has been refinanced since 
February with its main trad- 
ing partners, including Ger- 
many au*i Japan. 


Palestinians 
wait for taste 
of freedom 


By Jutian Qxanne 
in the Gaza Strip 

The self-rule agreement has 
been signed and sealed, but for 
the 800,000 Palestinians in 
raw* it will be several weeks 
before they get the first real 
taste of freedom after more 
than 25 years of Israeli occupa- 
tion. 

As the second day of self-rule 
passed. Palestinians and 
Israelis woke up to the fact 
that the Palestine Liberation 
Organisation is hopelessly IB- 
prepared to fake over the com- 
plex adminis trative and secu- 
rity functions of running the 
townships of the Strip. 
Self-rule is more likely to 
trickle than flood into Gaza. 

According to Mr Yitzhak 
Rabin, Israeli prime minister. 
PLO chairman Yassir Arafat 
has asked that Israel “drag 
out” its withdrawal from Gaza 
and the West Bank enclave of 
Jericho for at least three or 
four weeks while he prepares 
details of the take-over. The 
PLO denied Mr Rabin’s state- 
ment and said it was ready to 
take over at once. 

But it is dear the PLO is far 
away from being ready. Yester- 
day's expected deployment of 

1,000 Palestinian police in 
Gaza-Jericho has been post- 
poned by the PLO until next 
week. 

The lack of planning on a 
more serious policy level was 
confirmed yesterday by Mr 
H ass an Abu I-ih deh, PLO offi- 
cial in charge of the “Technical 
Committees” supposed to have 
in place a full scheme for Pal- 
estinian control over all ser- 
vices. 

“We are not ready to receive 
authority," be said yesterday. 
“For example, environmental 
questions are really new to us. 
It may take 3-6 months before 
we are really ready.” Another 
official said the PLO was only 
really ready to assume control 
over health. 

Mr Arafat has yet to name 
the 24-member national author- 


ity which will govern Gara-Jer- 
icho as a de facto cabinet, let 
alone the key officials who will 
move in and take over the 34 
departments and Z4,ooo 
employees of the Israeli mili- 
tary-run civil administration. 

Many Palestinians said the 
problem fay with Mr Arafat’s 
authoritarian style of leader, 
ship, his Inability to delegate 
and the tension between the 
leadership in exile and Pales- 
tinian leaders who have 
emerged during tin seven-year 
uprising against Israeli rote. 
Institutions created at PLO 
headquarters In Tunis and in 
the territories did not co-orft 
nate their activities. 

Delay in implementing the 
agreement will further erode 
Mr Arafat's fragile support 
base. In Gaza, many Palestin- 
ians seemed disappointed and 
frustrated at the few signs of 
immediate change in their 
lives. 

“Are they here to take ov® 
or just to talk to the Israelis?” 
shouted one man. 

“We expected much bigger 
things to happen,” said 
another. Nobody knows If 
things are really going to 
change or if the Israelis are 
really going to leave." 

Israel continued yesterday to 
wind down its occupation In 
Gaza, completely emptying the 
city's central prison and dis- 
mantling radio antennae. Some 
prisoners were freed after they 
signed a document saying they 
supported the peace process, 
while others were transferred 
to another prison in the Negev 
desert. 

But despite the snail’s pace 
of Implementing self-rule, 
many people in Gaza still had 
hopes for the future. Low-key 
celebrations have been going 
on since Wednesday’s signing 
of the self-rule agreement, for 
the deportees and Palestinian 
prisoners allowed home. 

New graffiti painted over- 
night said: “Our return to Pal- 
estine was a dream and now ft 
is the truth.” 


Jordan piqued 
at being left out 
of Gaza deal 


By James Whittington in 
Amman 

Jordanians bad to sit through 
five news items on Wednesday 
evening before state-run televi- 
sion presented a report on the 
historic signing ceremony in 
Cairo which makes way for 
Palestinians in the West Bank 
and Gaza Strip to have their 
first taste of self-rule. 

The occasion was brushed 
aside by an official spokesman 
as an “independent Palestinian 
affair” and criticised by others 
in government for the lack of 
co-ordination with Amman. 
The Lower House of Parlia- 
ment cut short a debate on a 
draft sales tax law to issue a 
statement which condemned 
“the sale of Palestine”. 

Again. Jordan is in a fit of 
pique for being overlooked by 
the Palestine Liberation Organ- 
isation in Its plans to govern 
the occupied territories. 
Despite numerous pledges 
between Jordan and toe PLO 
to co-ordinate over implement- 
mg the self-rule agreement, 
Jordan's fears of marginalisa- 
tion are growing stronger. 

There is a general feeling of 
conspiracy in Amman that the 
long and bitter rivalry between 
PLO chairman Yassir Arafat 
and King Hussein is causing 

Mr Arafat to sideline Jordan. 

The kingdom’s frustration at 
being left out is based mainly 


on historical precedent and 
demography. Jordan ruled the 
West Bank from 1948 to 198/, 
when that region was occupied 
by the Israelis following the 
six-day war; only in 1988 did 
King Hussein decide to sever 
legal and administrative I to Vs 
with what was half of his king- 
dom west of the Jordan River. 

Out of Jordan’s population, of 
about 4m, over 60 per cent are 
of Palestinian origin and many 
have strong family ties fat the 
West Bank. As a result, Jordan 
feels it has a natural role to 
play in any resolution of the 
Palestinian problem. 

So far, this looks increas- 
ingly unlikely. Not only have 
the promises of coordination 
with toe PLO failed to bear 
fruit, but agreements signed by 
toe PLO and Jordan have been 
overtaken by PLO talks with 
Israel- Last week’s PLO/Israrii 
economic agreement, for 
instance, negated in many 
ways the economic accord 
signed with Jordan in January. 

A free trade policy between 
Jordan and the self-rule- areas 
was replaced by quotas and 
faxes now to be levied on Jor- 
danian goods. Newly-opened 
banks which were to be run by 
toe Central Bank of Jordan are 
now to be under a Palestinian 
monetary authority. The Jonh 
nian dinar seems to have been 
replaced by the Israeli shekel 
as toe main legal tender. 


minus . rectiuu. was ouunu w come, lounsi muuauy. ■ many ana japan. I oeing left out is hased mainh, ■*«= uu, 

uiauuy as toe main legal ta 

Kenya eager to trumpet its economic refom 

Nairobi wants to start a much-needed dialogue with private enterprise, writes Leslie Crawford 


A fter a year of dismantl- 
ing state controls and 
untangling red tape, 
the government of Kenya is 
hosting - an Investment confer- 
ence fa Nairobi today to trum- 
pet its economic reforms. 

Mr Musalia Mudavadi. 
finance minister, does not 
anticipate a stampede of for- 
eign investors, but the confer- 
ence might accomplish some- 
thing more useful: the start of 
a much-needed dialogue 
be t ween businessmen and gov- 
ernment mandarins. 

“We want to project Kenya's 
new image, but we also want 
to listen to the needs of Inves- 
tors and their suggestions for 

further reforms," Mr Mudavadi 


The liberalisation measures 


of the past year have radically 
changed the operating environ- 
ment for private enterprise. 

Business 
confidence is 
returning. 
Multinationals 
have significant 
investment plans 

Import licences have been 
scrapped. Almost all govern- 
ment controls on foreign 
exchange transactions are 
gone. Exporters can keep their 
dollars and multinationals «m 
repatriate profits without 


restrictions. All price controls, 
except those on petroleum 
products, have been disman- 
tled. 

As a result, business confi- 
dence in Kenya is returning. A 
majority of multinationals 
poQed by the East Africa Asso- 
ciation say they have signifi- 
cant investment plans. Export- 
ers and bankers are thriving in 
the newly deregulated environ- 
ment. while local manufactur- 
ers have also taken advantage 
of the devaluation of the shil- 
ling to export to neighbouring 
countries. Kenya's exports rose 
by 15 per cent last year to 
Sl.lbn (£733m). 

After two years in the dol- 
drums, the Kenyan economy 
may show some stirrings of 
growth in 1994. With Tanzania. 


Uganda and Kenya adopting 
converging economic policies, 
central bankers are now dis- 
cussing the convertibility of 
their currencies to boost 
regional trade. 

Mr Mudavadi Is guaranteed 
an enthusiastic reception at 
the investors' conference, if 
only because local business- 
men know he needs all the sup- 
port he can get. 

Inside government, the 33- 
year-old finance minister is 
fighting a formidable coalition 
of anti-reformers who resent 
the loss of patronage and 
opportunities for corruption 
his market-based reforms will 
fight. 

“My fear is that the anti-re- 
formers have so much to lose 
that they may go to any 


lengths to sabotage Mudavadi 
and tos plans," says a foreign 
executive m Nairobi. Having 
survived 18 difficult months to 
offira, toe young minister faces 
challenges far greater than eco- 
nomic deregulation. 

.. H ? “ ust impose financial 
discipline on free*pending gov- 
ernment ministries andabank- 
rupt parasfatal sector 

are fuelling inflation and^?. 

Potato j or public deto. 

SraL"SSL“-»i 

war?* 

P“r cent or 

TfUa leaves little 

Politically unpalatable 


choices lie ahead, inclu 
firing of thousands of < 
vants in cities where 
toree adults does not 
job. Mr Mudavadi p 
raise government reve 
improving the collet 
unport duties in the 
department Ho is als< 
to impose “ performs] 
gets on state corpo 
But across tho state 
toanagerial skills are 
supply. 

Businessmen are e 
Mr Mudavadi to trw 
tjously; the scales are 
finely balanced betwet 
res* and a political l 
a * alns t reform. Mr Ml 
conscious of the frogtH 
achievements, is not 
victory yet. 




FINANCIAL TIMES FRIDAY MAY 6 1994 


NEWS: WORLD TRADE 


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Dispute over 
ABB bid for 


energy grant 


By Nancy Dunne in 
Washington and Guy do 
Jonquftrss in London 

A bid by Asea Brown Boveri, 
Europe's biggest electrical 
pTigtripgrhig company, to par- 
ticipate in a US energy depart- 
ment programme to develop 
the next generation of turbines 
is running into opposition from 
General Electric, its largest US 
competitor. 

The dispute has set off- a 
wider controversy in Washing- 
ton about a concept called 
“conditional national treat- 
ment”, under which subsid- 
iaries of foreign companies are 
treated differently from US 
companies depending on condi- 
tions in their home countries. 
The issue has been discussed 
in US government interagency 
groups and may soon get. an 
airing by the Clinton cabinet 

GE and Westlnghouse-. 
another] US power engineering 
company, have already won 
approval to take part in the 
programme, under which the 
energy department provides 
matehing grants - in thi$ case 
around g4£m (£2.7-£3.4m) - to 
participating companies. 

Although the initial funding 
of such projects may be small, 
co mpanies like ABB believe it 
is important that they are not 
excluded from key research 
because they are foreign com- 
panies, said Mrs Nancy McLer- 
non, a spokesman for the 
Organisation of International 
Investment 


Under the Energy Policy Act 
of 1992, there are tiro criteria 
in awarding grants: an eco- 
nomic benefits test, to deter- 
mine that the award will bene- 
fit the US, and a reciprocity 
test 

The latter requires that a 
company’s home government 
allow participation in similar 
programmes and protects intel- 
lectual property rights. 

General Electric has circu- 
lated a paper implying that the 
Swedish-Swiss ABB should not 
be allowed to participate 
because its home governments 
do not protect intellectual 
property rights. 

The paper also suggests that 
if ABB were involved in the 
programme, it would use the 
fruits of the research not to 
create employment in the US 
but to strengthen its technolog- 
ical capacity in Europe. 

ABB already has a substan- 
tial presence in the US, where 
it Has expanded through acqui- 
sitions of companies foehniing 
Combustion Engineering, a 
leading maker of boilers for 
power generation. In the 
Americas as a whole, ABB had 
sales of J5.6bn last year and 
employs about 35,000 people, 
many of than in the US. 

It is understood that the US 
Energy Secretary failed to 
determine that GE and 
Westinghouse were eligible for 
the scheme oq the basis of the 
economic benefits test. That 
process is now underway retro- 


actively. 

US pressed to 
open up to EU 


By Emma Tucker in Brussels 

THE US must go farther in 
opening home markets to 
European goods and Invest- 
ment if it is to live up to its 
self-churned title of “still the 
most open trading nation ip 
the world," the European Com- 
mission said yesterday. 

In an annual report on US 
trade barriers to European 
business, the Commission 
highlighted “unreasonable" 
application of anti-dumping 
and other duty measures 
against exports from the Euro- 
pean Union, and increasing 
application of domestic trade 
legislation to companies oper- 
ating outside the US, as partic- 
ular obstacles to European 
industry and investors. 

“All these measures are 
anathema to an open world 
trading system which should 
be based on one set of negoti- 
ated multilateral rules and pro- 
cedures fairly applied to all 
contracting parties in the 
Gatt," the Commission said. 

"The magnitude of the barri- 
ers that remain, important 
though some of them are, 
should nevertheless be seen in 
the context of a broadly 
balanced and improving 
bilateral EU-US trade re- 
lationship." said Mr Ove Jor- 


gensen, a commission official. 

The main barriers high- 
limited in the report include: 

• Increased use of unilateral 
or bilateral trade measures, in 
particular renewal of Super 301 
legislation, providing wide dis- 
cretion to retaliate* against 
trading practices deemed 
unfair to US commerce. 

• Extraterritorial application 
of national trade provisions 
which dash with trading part- 
ners’ sovereignly and lead to 
insoluble legal conflicts. The 
report cites the Cuban Democ- 
racy Act as an example. 

• Use of national security 
considerations to justify curbs 
an trade and investment such 
as a 20 per emit limit on for- 
eign investment in radio com- 
munications. 

• Discrimination against 
non-US controlled companies 
for certain public contracts 
tendered at Federal and state 
level, and “buy America" laws. 

• High tariffs on textiles, 
clothing, footwear, tableware 
and glassware. 

• Tax legislation such as state 
unitary taxation and car taxes 
which are the subject of a Gatt 
panel request by the EU. 

• Multiplicity of standards at 
federal, state and municipal 
level as well as protectionist 
labelling requirements. 


India warns over 


labour controls 


By Stefan Wagstyl 
hi New Delhi 

Mr Pranab Mukherjee, India’s 
commerce mini ster, has 
warned the US and other 
industrialised countries 
against putting plans for con- 
trols on cheap labour on the 
agenda of internatio n al trade 
talks. 

Suggestions that developing 
countries should be penalised 
for providing workers with 
inferior social and other bene- 
fits than Industrialised coun- 
tries amounted to “introducing 
protectionism through the 
back door", said Mr Mukherjee 
this week. 

Mr Mukherjee was referring 
to proposals advanced by the 
US to insert “social clauses” 
into the brief of the newly- 
formed World Trade Organisa- 
tion, which will next year 
replace the General Agreement 
on Tariffs and Trade In accor- 
dance with the Uruguay Bound 
pact signed on Marrakesh last 
month. American and Euro- 
pean politicians are concerned 
that the high social welfare 
payments made in industria- 
lised countries reduce their 
competitiveness vis-a-vis the 
Third World. Mr Mukherjee 
said: “It raises doubts about 
whether some of the industria- 
lised countries are serious 
about liberalising trade.” 

The social clause proposals 
Tn.irio it more difficult for the 
ruling Congressfl) pnrty in 


India and other developing 
country governments to enact 
legislation to bring the Marra- 
kesh agreement into effect 
These problems are particu- 
larly acute in India, where 
there is a long tradition of eco- 
nomic self-sufficiency and of 
hostility to foreign business 
interests. Opposition parties - 
including the right-wing Hindu 
nationalist Bharatiya Janata 
party and the parties of the left 
- have seized the Gatt accord 
as a stick with which to beat 
the government They have 
taken their case on to the 
streets, calling rallies in Delhi 
which were attended by hun- 
dreds of thousands of people. 

The opposition parties have 
tried to whip up support by 
lumping together criticism of 
the Gatt accord with attacks 
on the government’s economic 
liberalisation. They have 
exploited fears of Indian farm- 
ers, some of whom have been 
led to believe the Gatt accord 
threatens agricultural subsi- 
dies. fin fact poor countries are 
exempted from the subsidy-cut- 
ting clauses of the agreement) 
Mr Mukhetjee said the pro- 
tests would not stop the gov- 
ernment from getting legisla- 
tion through parliament The 
opposition was trying to build 
support before state elections 
lata- this year. He hoped the 
opposition parties would even- 
tually accept the wisdom of the 
Gatt deal, despite their public 
posturing. 


China looks beyond MFN horizon 

Beijing sets sights on Gatt accession, write Tony Walker and Andrew Gowers 


Mr Peter Sutherland, director-general of the 
General Agreement on Tariffs and Trade, 
win visit Beijing for six days next week to 
discuss negotiations on Chinese membership 
of the world trade body, writes Frances 
WllUams in Geneva. 

During his visit Mr Sutherland is doe to 


meet President Jiang Zemin, Prime Minister 
U Peng and top trade officials. There is 
widespread backing among Gatt members 
for China to be readmitted to the organisation, 
which it left In 1950, hut most western 
governments are insisting on special terms 
and Washington's position remains equivocal. 


pute, but expressed hope that 


C hina, sig nallin g confi- 
dence that tiie US wiH 
renew its Most 
Favoured Nation trading sta- 
tus, yesterday urged Washing- 
ton to speed up negotiations on 
Betting’s bid to rejoin the Gen- 
eral Agreement on Tariffs and 
Trade. 

Mr Long Yongtu, Beijing's 
chief Gatt negotiator, said in 
an interview that the US 
should follow the European 
Union and adopt a “practical 
and realistic” approach to 
China's accession to the world 
trade body. 

China arwi tire US are due to 
resume bilateral taifcs on the 
Gatt issue in Washington early 
next month, just after the 
deadline for President Bill 
Clinton's decision an whether 
to renew China's preferential 
trade access to the US market. 

Beijing and Washington 
have been at loggerheads for 
months over the Clinton 
administration’s demand that 
China improve its behaviour 
on human rights to secure 
MFN renewal But this week. 
President Clinton softened the 
US line, saying that withdraw- 
ing MFN status would harm 
both Hhina and the US. 

Mr Long's call for a new 
push on China's Gatt accession 
shows Beijing is looking 
beyond the MFN decision to 


the far-reaching question of 
China’s formal reintegration 
into the world economy. China 
is anxious to be a founder 
member of the new World 
Trade Organisation, to he 
formed out of Gatt, when the 
Uruguay Bound agreement 
comes into force next year. 

The flhi™»u» official praised 
the EU for what he called its 
constructive approach to Chi- 
na’s Gatt application, explicitly 
contrasting European and 
American attitudes. He said a 
draft protocol for Chinese 
membership presented when 
Sir Leon Britten, the EU trade 
commissioner, visited Beijing 
in February contained “many 
positive elements”. 

The protocol includes provi- 
sion fin: a transitional phase 
after nhina re-enters Gatt, safe- 
guards against sudden surges 
of Chinese imports, and 
arrangements for a regular 
review of Chinese compliance 
with the trade body’s rules. 

Mr Long, a vice-minister in 
the foreign trade ministry, said 


China was prepared to negoti- 
ate a transitional period -to 
the end of the century - during 
which it would remove most 
non-tariff barriers, align its 
technical standards with inter- 
national norms and make its 
currency, the renminbi, fully 
convertible. 

He added, however, that 
there should be no need for 
further special reviews of Chi- 
na’s performance after the end 
of the transitional period. On 
safeguards, Beijing reserved 
the right to retaliate against 
attempts to “single out” China 
for trade penalties, by with- 
drawing some of its conces- 
sions on market access. 

Further negotiations with 
the EU on these issues are due 
later this month, before the 
next meeting of Gatt's China 
working party in Geneva 
towards the end of June. Mr 
Long stressed that China's 
attempt to rejoin Gatt was 
“part and parcel" of its eco- 
nomic reforms, but that there 
was a limit to concessions 


China was prepared to make. 

“Western negotiators should 
understand that China’s transi- 
tion from a planned economy 
is a great exper im ent," he said. 
“If you ask for things to be 
done immediately, we have to 
say No. We're not looking for 
Gatt entry at any price - at the 
cost of social stability, or of 
throwing a tot of workers out 
of jobs. “If the US can also find 
the practical, realistic 
approach adopted by the EU, 
we can make progress.” 

During the eight years of 
negotiations on China’s Gatt 
membership, the US has gener- 
ally taken the lead. But 
recently, with US policy- 
makers preoccupied by the 
MFN issue, the Europeans 
have assumed a higher profile. 
Last year, the US notched up a 
record $22£bn bilateral trade 
deficit with nhiwa , while the 
EITs deficit with China fell 
from $ 12 bn to glflfbn. 

Mr Long acknowledged that 
the Gatt negotiations bad been 
overshadowed by the MFN dis- 


the two issues could soon be 
separated. “Trade is trade, and 
politics is politics," be said. 

He said it was in the world's 
interests as well as Beijing’s to 
ensure tha t nhina joined the 
World Trade Organisation at 
its inception. The WTO, he 
said, would be “incomplete” 
without a country containing 
one fifth of the world's popula- 
tion and its 11 th largest trad- 
ing nation , 

“We are trying to get into 
Gatt not because we see imme- 
diate economic benefits but 
because we want to maire our 
economic system compatible 
with the world trade regime, so 
that foreign businesses have 
more confidence in our econ- 
omy," he stressed. “If we really 
wanted to damage the world 
trading order, why would we 
bother trying to get into Gatt? 
It wifi put a stral {jacket on us." 

A European diplomat in Bei- 
jing agreed the EU had won 
points with Beijing by coming 
forward with its own Gatt pro- 
posals. There was no funda- 
mental difference between 
Brussels and Washington on 
market access, transparency of 
import rules, and intellectual 
property rights. “We are com- 
petitors, hut we all have the 
same interest: breaking open 
the Chinese market,” he said. 


Piaggio in 
Chinese 
scooter 
venture 

By Andrew Hifl m Mian 

Piaggio, the Italian scooter 
manufacturer, alms to produce 
500,000 motor scooters a year 
for the growing Chinese mar- 
ket by 1998, through a local 
joint venture set up near the 
port of Guangzhou. 

The privately owned Italian 
company announced yesterday 
that the Chinese authorities 
had approved the venture, 
which will require a total 
investment of SlOOm (£6&4m) 
up to 1997 by Piaggio and its 
partners, backed by interna- 
tional banks. 

The new venture, Piaggio 
Lyman Foshan, is 75 per cent 
controlled by Hong Kong- 
registered Piaggio Lyman 
China, and 25 per cent by Fosti 
Motorcycle of China. The Hong 
Kong company is itself 51 per 
cent-owned by the Piaggio par- 
ent company and 49 per cent 
by Satya Djaya Group of 
Indonesia. 

Piaggio should export 40,000 
vehicles this year to Cbina. 
The new joint venture in Fos- 
han. in the province of Guang- 
dong; will produce about 7,000 
scooters this year, and 100,000 
next year. 



"In my opinion. East Kent is now one of the 

MOST EXCITING EUROPEAN BUSINESS LOCATIONS 
ON EITHER SIDE OF THE CHANNEL." 

Sir Aloskiir Morton 

Chjiirmjn of the £ns/ Kent Initiative and 

Co-Chairman. Eurotunnel 


Fact: East Kent's a great place to build a 
tunnel to France. 

Fact: It's also a great location for tackling 
the world's biggest business opportunity 
- the Single European Market. 

To take full advantage, you need to be 
closer to the action and there's nowhere 
closer than East Kent. 

East Kent is home to the Channel Tunnel, 
home to the UK's busiest ferry ports and 
will soon have its own international rail 
passenger station - and it's less than one 
hour's drive from London. 

There are some 76 internationally owned 


companies in East Kent and a large 
number of local businesses, all taking 
advantage of a highly strategic location. 
Successful companies like Pfizer 
Pharmaceuticals, Sericol, Abbott 
Laboratories, Smiths Industries and 
Unilever all have a home here. 

Now with the most useful range of 
Government investment incentives in 
South East England, East Kent could be 
the right home for your business. 

Talk to Ken Welsh today on 0304 206900 
about East Kent and a free, confidential 
relocation service. 



brings you closer to the action 


East Kent Enterprise Office, 3 Waterloo Crescent, Dover, Kent CT16 1LA 
Tel: (0304) 206900 Fax: (0304) 202064 


tl 










FRIDAY MAY 6 1 


NEWS: THE AMERICAS 


US will be heavily exposed if this week’s intervention proves insufficient 


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Treasury takes risks to back dollar 


By George Graham ta Wash i ngton 

This week's massive concerted 
intervention by central banks around 
the world to stop the fan of the US 
dollar has pushed the US Treasury a 
kmg way out on a somewhat fragile 
limb. 

&t an effort to break the financial 
markets' perception that the US, to 
increase its leverage In trade negotia- 
tions with Japan, is actively pushing 
or passively permitting: the dollar’s 
slide a gains t the yen, Mr Lloyd Bent- 
sen, die Treasury secretary, said the 
Clinton administration saw “no 
advantage In an undervalued cur- 
rency". 

“Recent movements in exchange 
markets have gone beyond what is 
justified by economic fundamentals," 
Mr Bentsen said. 

But that bold statement leaves the 


US heavily exposed if Wednesday's 
central bank purchases of dollars turn 
out to be insufficient to turn the for- 
eign exchange markets. 

Currency intervention has worked 
on many occasions in the past, espe- 
cially when, as now, it is intended not 
so much to defend a particular cur- 
rency level as to send a more genm-al 
message to the markets about policy. 

It has failed just as often, however, 
particularly when governments tried 
to fly in the teeth of economic reality. 

“The key criterion, is whether Inter- 
vention is moving in the -ymw direc- 
tion as the underlying ftimfa mentals 
would suggest, or Is trying to buck 
them,” said Mr Fred Bergsten, a 
senior Treasury official in the Carter 
administration, who now heads the 
Institute for International Economics, 
a Washington think tank 
An examination of the US economy. 


which continues to grow steadily and 
much faster than either Japan or con- 
tinental Europe, lends considerable 
weight to thp administration’s analy- 
sis Of ftwHampnhih 

In addition, the general direction of 
US interest rates Is widely perceived 
to be upwards, as the Federal Reserve 
continues to tighten monetary policy 
to HtfiVp off any signs of inflatio n that 
may emerge with the recovery. 
Although Japanese interest rates are 
not thought to have any mare roam to 
move downwards, continental Europe 
is still expected to see further cuts in 
interest rates. 

The relative trends of interest rates 
should, therefore, make the dniij>r 
mare attractive to Investors. 

But currency markets' expectations 
are built not just on the relative 
strengths of different economies, but 
on changes in those relative 


strengths. Forecasts of US growth are 
now lower than they were at the 
beginning of the year, while the Ger- 
man economy, though still much 
weaker than the US, Is now thought 
to be a little stronger than it was. 

That, in turn, could that the 
Fed will not raise its interest rates as 
much, gp ri the Bundesbank not lower 
its rates as much, as markets previ- 
ously expected. 

In either event, the Clinton admin- 
istration is virtually powerless to do 
much about this, it does not want to 
stimulate an economy which it views 
as growing quite satisfactorily, with- 
out overheating; and it certainly does 
not want the Fed to raise rates fur- 
ther to defend the currency. 

The question is whether the US is 
equally impotent to dispel the mar- 
kets' expectations of a farther dollar 
depreciation against the yen. 


Senior Treasury officials believe 
their atfiwm and statements shmiW 
now have dispelled the markets' per- 
ception that the US was pursuing a 
policy of depreciating the dollar, 
whether actively or through benign 


Mr Bergsten argues, however, that 
the benign neglect is not American 
but Japanese; 

He says the only way to redress 
Japan’s large and growing current 
acco unt surplus not just with the US 
but with the rest of the world is 
through ytitmiiflting the domestic 
economy, lowering barriers to its mar- 
kets or a Farther appreciation of the 
yen. 

The US has been urging the first 
two policies for seme time, in vain. Its 
chances of success have not been 
improved by the recent change in the 
Japanese government 


Panama party 
of dictators 
set for victory 

Stephen Fidler looks at the 
main runners competing in 
Sunday’s presidential election 


T he party of Panama's 
two military dictators, 
Omar Torrijos and Man- 
uel Noriega, is heading into 
Sunday's presidential elections 
as favourite to provide the 
country's next head-of-stata 
Front-runner Is Mr Ernesto 
Pi&rez Balladares, 47, who has 
in the past four years master- 
minded the rebuilding of the 
Revolutionary Democratic 
party (PRD) which was shat- 
tered by the December 1989 US 
Invasion which ousted Gen 
Noriega, now serving 40 years 
in a Miami jail for drugs 
offences. He was a financ ial 
advisor to Gen Torrijos and 
campaign manager for Gen 
Noriega’s candidate for the 
1989 elections, which the dicta- 
tor later ann ulled. 

Although it invaded the 
country less than five years 
ago, Washington Has made It 
plain it can live with which- 
ever of the seven candidates 
wins the one-round election. 
But Mr Balladares, a former 
banker with Citibank and a 
Wharton School MBA, has only 
been partly successful in dis- 
tancing himself from the par- 
ty's militarist past 
His task was made tougher 
by a videotape shown nation- 
ally last month by President 
Guillermo Endara which 
reminded people of the mili- 
tary-sponsored violence sur- 
rounding the last election. 

If any of Mr Balladares's six 
opponents has gained from toe 
tape, it seems to have been a 
political outsider, Mr Ruben 
Blades, and none of the past or 
present members of Mr Endar- 
a’s anti -militarist coalition. 

Mr Blades, now the closest 
contender to the PRD, has 
spent most of the last two 
decades in the US, acting - he 
appeared in Robert Redford’s 


MTfag m Beanfield War - sing- 
ing and qualifying as a lawyer. 
His absence appears to be, on 
balance, an electoral asset 
because he - if not an of bis 
party - has no association with 
government corruption. 

The mam question over his 
candidature is what he and his 
makeshift political movement. 
Papa Egurti - it means Mother 
Earth in a local tertian dialect 
-stand for. Its broad themes 
are issues such as improving 
papular participation in gov- 
ernment and improving peo- 
ples’ self-esteem, but what this 
would translate into in policy 
terms is for from dear. 

The fact that the two front- 
runners are outside Mr Endar- 
a’s cmitista coalition is widely 
seen as testimony to the gov- 
ernment’s unimpressive perfor- 
mance. 

The government of Mr 
Endara, who cannot by law 
stand in the election, has been 
seen as indecisive. Although, it 
has overseen rapid growth that 
has brought the economy back 
to its level of 1987, before US 
sanctions on the Noriega gov- 
ernment sent the economy into 
a tailspin. his government has 
not received much credit for it 

In part this is because 
growth has been concentrated 
in a few sectors - including the 
free zone at CoMn which now 
does an annual gllbn of busi- 
ness -and the trickle down to 
the poorest has been limited. 
Unemployment stays high at 
14 per cent A construction 
boom is under way in Panama 
City, for example, hut it has 
been financed in part by drugs 
money and is largely of high- 
priced apartments. 

While allegations of corrup- 
tion and involvement in drugs 
trafficking have been less prev- 
alent than in the military 



A Panama (Sty barber awaiting cu s to m ers ftk week reads a local newspaper whose headline proclaims “Blades is an American 
citizen”. Blades is not hut has lived abroad, mostly in Los Angeles, for 20 years. ap 


years, the probity of the gov- 
ernment has also been called 
into question. The president’s 
reputation was not helped 
when his young wife. Ana 
Diaz de Endara, won the jack- 
pot in one Christmas lottery - 
the biggest of the year. 

Rising crime is also per- 
ceived as a problem. “Endara’s 
government has failed to 
adhere to the old PRD maxim 
of keeping the country safe 
ftrvi stealing everything them- 
selves.** said one hanker. 

The niain aphimurniMts, gay 

bankers, have been some 
movement towards settlement 
of the Noriega-era foreign debt 
defaults and strict control over 
the budget, though n ei t her has 
much electoral appeal. 

Critics say the coalition 
united around only one issue - 
ousting Noriega and the mili- 
tary. Once that was achieved 

and the militar y nhntiahpd fee- 

tionalism took over. Theav&s- 
tas could not agree on a com- 
mon presidential candidate. 
Their leading contender is 
probably Mr Ruhdn Caries, 73, 
the budget minister in the cur- 
rent government and a former 
Chase Manhattan banker, but 
he is widely considered to be 


too for b ehind in the opinion 
polls to be in contention. 

None of the candidates is 
promising much new on the 
economy, which has been one 
of the few in Latin America 
where there has been no signif- 
icant move towards lower tar- 
iffs and market-oriented 
reforms. There is .some talk of 
privatisation of the telephone 
and electricity systems, the 
ports and the haidly-ftmction- 


S 

i • -f 0 


ing trans-isthmus railway, but 
It has not been an important 
campaign iss ue. 

The centre-left PRD lays 
more em phasis on government 
spending and popular public 
works projects. But its ability 
to spend trill be constrained by 
the government’s inability 
both to print money (the econ- 
omy is dollar-based) and to bor- 
row it, because of a continuing 
default on its bank debt Mr 



Balladares: front-runner 


Blades outsider 


B alladar es's s up porter s say he 
is more likely to confront toe 
local b usiness oligarchy, which 
favours a continuation of pro- 
tectionism. 

The central issue facing toe 
new government will he how it 
handles the takeover of some 
SO^OO acres of land and facili- 
ties - including 4£00 buildings, 
schools, houses and airports - 
which will be handed to the 
Panamanian government as 
the US pulls out cf the country 
In 1999. The 10,000 US troops 
there now contribute an esti- 
mated $250m to the economy, 
around 5 per cent of GDP. 

These properties - which are 
full of infrastructure that the 
rest of the country desperately 
lacks -are valued anywhere 
between $8bn and $30bn_ Same 
Panamanians worry the hand- 
over will be managed badly 
and toe prizes wffl be allotted 
to the cronies erf toe next gov- 
ernment 

Mr Ricaurte Vasqnez 
Morales, treasury and then 
planning minister between 
1982-88, says: “This is at toe 
core of what toe real political 
struggle is about: who takes 
control of these properties. It’s 
like winning a war.” 


Company law reform fails in Brazilian congress 


By Angus Foster In SSo Paulo 

Brazil’s congress has foiled to 
approve a constitutional 
amendment designed to make 
Brazilian and foreign compa- 
nies equal before the law. 
Under the widely criticised 
1988 constitution, Brazilian 
companies enjoy some advan- 
tages over foreign-controlled 


competitors, and these will 
now be maintained 
The decision, which foreign 
and business interests said was 
disappointing, is the latest in a 
series of setbacks for Brazil's 
constitutional revision, under 
way since last October. The 
revision process, seen by many 
analysts as crucial to restoring 
the government’s ability to 


govern, has so far failed to 
make any meaningfid changes. 

Congress voted on the latest 
proposal late on Wednesday 
but fell three votes short of the 
necessary 293 for the measure 
to be approved. As a result, it 
will lapse. The lack of support, 
blamed on congressional apa- 
thy and internal party politics, 
also threatens other proposals 


to modernise the economy, 
such as allowing entry to for- 
eign controlled mining compa- 
nies. 

Proposals to open up Brazil's 
petroleum and telecommunica- 
tions monopolies have virtu- 
ally been shelved. 

Party leaders, who have been 
unable and sometimes unwill- 
ing to mobilise their parlia- 


mentarians to vote because of 
electoral considerations, were 
due to meet again yesterday to 
try to agree a basic list of con- 
stitutional amendments. But 
the period reserved for the 
revision, which lasts until the 
end of this month. Is nearly 
over and few if any import a nt 
changes are likely. 

The law which Wednesday's 


vote mfltataiwpd establishes 
that Brazilian companies with 
Brazilian capital are assured 
benefits and protections, theo- 
retically temporary, to develop 
“activities considered strate- 
gic”. It also establishes that 
government agencies buying 
goods and services should give 
preference to Brazilian compa- 
nies. 


Close vote on 
US gun ban 

law expected 


By Jurok Martin in Washington 

The US House of 
Representatives was facing the 
tightest of votes yesterday on 
Hie bill banning sales of 19 dif- 
ferent types erf semi-automatic 
assault weapons and large 
magazine guns. 

The bill, sponsored by Con- 
gressman Charles Schumer, 
toe New York Democrat, has 
emerged as a serious test of toe 
power of the gun lobby, which 
has experienced some unaccus- 
tomed setbacks around the 
country in recent months. 

Karttar this week it appeared 
»wt the legislation would foil 
15-20 votes short of securing a 
simply majority in the 435- 

member House. But a ferocious 
lobbying effort by the Clinton 
administration, bolstered by 
supportive l ette rs from former 
presidents Ford, Reagan and 
Gaiter, had narrowed the gap 
by yesterday morning. 

Some conspicuous converts 
to the gun control cause were 
achieved in the last 24 hours, 
inriudfng two congressmen 
from Texas, a state in which 
the National Rifle Association 
has long been a particularly 
powerful political force. Yester- 
day morning, President Bill 
Clinton personally welcomed 
in the Rose Garden Congress- 
man Steve Neal of North Caro- 
lina, who Is retiring at the end 
this session, as the latest con- 
vert 

However, the bill finds toe 
Democratic party leadership 
divided. Congressman Jack 


Brooks from Texas, cha 
of the House judiciary cc 
tee, opposes the ban aat 
the provision out of toe 
bus crime bill passed h 
House lost month (the S 
version, passed last year 
outlaw toe assault weapa 

Mr Tom Foley, speaker ■ 
House, is also on recoi 
opposing It, mostly out o 
erence to his cuastiiuan 
toe state of W a s hin g ton , i 
hunting Is popular. Bo 
Wednesday he hinted uu 
would only vote “in case 
tie”, leaving open too pro 
that he might choose to 
oppose his president oq 
issue. 

The bill places many a 
bers in severe dilemmas, 
polls suggest overwheln 
public support for such a 1 
also desired by police auti 
ties. Support is strongea 
America's suburbs, the n 
populous political coxuri 
ency. 

But the opponents of 
control, directed by the N 
are well financed and on 
ised. 

Their argument is that 
ban on assault weapons 
merely the beginning of 
slippery slope which ends a 
the Hanning of all privat 
owned firearms, thus, In tt 
view, violating the const! 
tional right to bear arms. 

Congressman Jim Cbapm 
the Democrat from east Tex 
said: “If you polled my tUstr. 
It would be a toss-up. But 
the calls are against it" 


NY art 
auctions 
end hopes 
of upturn 

By Antony Thomcroft 

This week’s New York 
auctions of leading works of 
contemporary art have shat- 
tered some of the growing 
optimism that the interna- 
tional art and antiques market 
was making a strong recovery. 

At Sotheby’s on Wednesday 
night the most important 
work on sale this week, “High- 
way” by Jasper Johns, expec- 
ted to make around $8m 
(£5.4mX was unsold, while at 
Christie’s on Tuesday almost 
half the lots on offer failed to 
find buyers. This was a disap- 
pointment after the success of 
last winter’s contemporary 
auctions in New York. 

Sotheby’s had the better 
experience. Apart from the 
failure of the Johns tire auc- 
tion did quite well, totalling 
almost $2&5m, and with over 
70 per cent of works on offer 
selling. 

“Cnbi V", a sculpture by 
David Smith, wait to a private 
American collector for a 
record $4m. It is one of a 
series of 28 such sculptures, 
most of which are already in 
museums. “Dark Green Paint- 
ing” by Arshile Gorky, his last 
important work before his 
death in 1948, made 83.5m. 
Both works were sold from the 
collection of Mr and Mrs H. 
Gates Lloyd: he was the for- 
mer deputy director of the 
Centra] Intelligence Agency. 

In contrast Christie’s sold its 
main offering, a drip painting 
by Jackson Pollock, for 
$1.76m. This was well below 
its $2m-$3m estimate. It seems 
the good results last time 
round encouraged some lead- 
ing works into the saleroom, 

but with reserves higher than 
toe market could stand. 


Call for 
tighter 
derivative 
regulation 

By Richard Watare 

In Now York , 

The activities of all U 
companies which use derivi 
trees should be subject to doe 
regulation by the Securitic 
and Exchange Commisslox 
according to the draft of ; 
long-awaited report due to hi 
published on May 18. 

The proposal, from the US’s 
General Accounting Office, 
would impose new rules on 
many of the US’s biggest com- 
panies, which use derivatives 
to manage exposure to interest 
rate, currency or other risks. 

The GAO report is likely to 
add to pressure in Washington 
far early legislation on deriva- 
tives - financial instruments 
whose value is based on some 
underlying asset or market 
The rapid growth in tire use of 
such instruments has caused 
concern among regulators and 
policy makers. 

Industry trade groups, deriv- 
atives exchanges and other 
interested parties were this 
week given a brief opportunity 
to read the 200-page draft 
report According to one per- 
son who read it the tone of its 
conclusions was “unremit- 
tingly negative”. 

The report’s ma i n conclu- 
sions are believed to be that 
regulation should he extended - 
both to companies that o&s 
derivatives, and to the unregu- 
lated subsidiaries of securities 
companies, among the higgwtf 
traders in such instruments. 

The report is understood to 
propose that companies which 
use the instruments report 
their derivatives exposures to 
the SEC, and that the SEC lay 
down requirements for boards 
o f dir ectors to control their 
activities in this area. 


Tinker with the motor but head in the same direction 


M r Ernesto Zedillo, 
presidential candi- 
date of Mexico's gov- 
erning party, comes from toe 
same cadre of US-trained econ- 
omists that has dominated 
public policy in Mexico over 
the past six years, so it is not 
surprising that be is a staunch 
supporter of the pro-market 
economic and social reforms 
that have marked the presi- 
dency of Mr Carlos Salinas. 

Nevertheless, Mr Zedillo 
insists that it as is probable, 
he wins the election in August, 
there will be some significant 
changes in economic and social 
policy. Mr Zedillo diplomati- 
cally says the current govern- 
ment has not had time to 
embark on all the reforms nec- 
essary to make the economy 
more efficient, and the country 
more prosperous. 

In an Interview, Mr Zedillo 
highlighted three areas where 
new policies could be expected. 
However, he was careful to 
support the government's cur- 


Mexico’s probable next president, Ernesto Zedillo, outlines his plans to Damian Fraser 


rent conservative macro -eco- 
nomic policy, and underlined 
his commitment to a stable 
currency and low inflation. 

• Legal reform. Mr Zedillo 
called for a fundamental 
reform of Mexico’s notoriously 
inefficient and corrupt legal 
system. This is an issue that 
Mr ftaifoas has hardly touched. 
But after the assassination of 
Luis Donaldo Colosio, the late 
presidential mniftiiitp, and the 
rise in organised crime high- 
lighted by recent kidnappings, 
legal reform has become a cen- 
tral theme of Mr Zedillo's presi- 
dential camp ai g n. 

Mr Zedillo said he would 
seek to modernise criminal 
laws, reform the judiciary and 
police and change the role of 
public prosecutors in the jus- 
tice system. Judges, he said, 
should be more independent of 
the government than they are 
now and more responsive to 


The Mexican government and Zapatista 
rebels have restarted talks aimed at for- 
mally ending the conflict in the southern 
state of Chiapas. Damian Fraser writes 
from Mexico City. 

Mr Manuel Camacho, the government 
peace negotiator in Chiapas, met leaders 
of the Zapatista movement at a secret 
location in toe Chiapas jungle on Wednes- 
day afternoon. Mr Camacho was yester- 
day expected to report on the outcome of 


the talks. The Zapatistas launched their 
rebellion on New Year’s Day, pressing for 
land reform, indigenous peoples’ rights 
and more democracy. 

The government and the Zapatistas last 
met on March 2, when toe government 
presented a peace offer. The Zapatistas 
have still not responded formally to it, 
and temporarily broke off consultations 
with their supporters on their response 
after the assassination of the ruling Insti- 


tutional Revolutionary party’s presiden- 
tial candidate, Mr Lids Donaldo Colosio. 

In recent weeks tensions in Chiapas 
have eased as peasants have largely aided 
toe land invasions that led to violent con- 
frontation with rich landowners. Mr 
Ernesto Zedillo, chosen to replace Mr 
Colosio as file FBI’s presidential candi- 
date, was In Chiapas yesterday, and gave 
bis unconditional support to the peace 
process. 


the public. He hinted at some 
form of citizen or congressio- 
nal input into selection of 
judges. 

Mr Zedillo said that the 
absence of a st ron g legal sys- 
tem not only affected toe 
administration of justice but 
was an impediment to eco- 
nomic efficiency. “I believe 
that erne of the wwpntial condi- 
tions of sustainable economic 
g ro wth is that a rule of law 
prevails. I am sure that respect 


for the law will lead to more 
investment” 

• Micro-economic reform. Mr 
Zedillo promised to continue 
deregulation of the economy, 
which he believes has not gone 
Ear enough. “Despite the efforts 
that we have made in this 
administration, there are still 
regulations at the national and 
state level that impede the flow 
of investment and obstruct toe 
productive process." Specifi- 
cally, Mr Zedillo pointed to a 


simpler tax system to help 
medium -sized and small busi- 
nesses, and significantly would 
not ride out a change to the 
current restrictive federal 
labour law. 

However, the candidate also 
talked about a more active role 
for the government in busi- 
ness. He said that his govern- 
ment would do more to help 
business train workers, acquire 
modem technology, and bor- 
row at low interest rates than 


has the current administration. 
• Democratic and govern- 
mental reform. Mr Zedillo 
insisted that it was “indispens- 
able to move ahead with 
democracy - it is an 
condition for the development 
of the country.” Disagreeing 
with those who argue that 
recent social and democratic 
reforms have contributed to 
current instability in Mexico, 
Mr Zedillo said more demo- 
cratic changes would 


strengthen the government's 
capacity to govern. 

Mr Zedillo proposed a decen- 
tralisation of Mexico’s govern- 
ment, giving more powers to 
states to run their affairs. In 
this he was following closely 
the policies outlined by Mr 
Colosio, for whom he worked 
5 s campaign manager. Mr 
Zedillo further said he believed 
that Mexico's impotent con- 
gn»s should be given more 
authority to scrutinise legisla- 
tion. 

However. Mr ZedUlo 
appeared to shy away from a 
reform of the Institutional Rev- 
olutionary party (PRI). which 
many consider a critical step 
m toe democratisation of thi» 
country. He said: “The problem 
of democracy is not just of the 
- it is a problem of all the 
society- °f citizens of all the 

political parties. What is 
important for democracy fo 


Mexico is that there : 
ble competition betwe 


Mr Zedillo seems deti 
to keep the PRI unites 
run-up to the electii 
apparently sees no co 
tion between reaching 
the more unsavoury e 
in the party and pn 
more democracy. He 
mently defended Mr 
Hank Gonzalez, agri 
minister, who has 
accused of using publi 
to rally support for Mr 
saying the attacks wore 
trated by toe oppositou 
credit the PRI. 

While Mr Zedillo's cs 
is more austere than j 
toe PW in the past, the 
titian between the politi 

SSmfc J 13011 * equital 

2 eonlo for outspends 
non candidates and, un 
otoers. fifes around to 
fry in a private jet 


favourable teUrriston coven 4 & 


i 



7 








'X 


FINANCIAL TIMES FRIDAY MAY 6 1994 



NEWS: UK 

Insurers face $16m payout on Ayrton Senna 


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By Richard! tapper 

Insurers, including underwriters at 
the troubled Lloyd's of London, face 
a payout of at least EL6m following 
the death last weekend of Ayrton 
Senna, the racing driver. ' 

S enna , a three-tnnes Formula One 
world champion, died from injuries 
sustained during the San Marino 
Grand Prix on 1 May. He was cov- 
ered against death and injury by a 
personal accident polio?, underwrit- 


ten by both insurance companies 
and Lloyd's syndicates. Typically 
policies cover aimnal income, medi- 
cal and other expenses. 

Additional multi-million dollar 
insurance claims are also expected 
to emerge on so-called “death and 
disgrace” policies, which cover most 
of Senna’s sponsors against any loss 
of advertising revenue and extra 
expenses incurred as a result of the 
death or injury. 

One of these policies is understood 


to provide cover of at least $5m. A 
range of other companies also 
insured the value of endorsements - 
given by Senna in return for a fee - 
to their products. 

Senna's death follows that of a 
rival grand prix driver. Roland Ratz- 
enberger at San Marino on 30 April 
and only a week, after the death of 
boxer Bradley Stone, who collapsed 
last week hours after an unsuccess- 
ful challenge for the super-bantam- 
weight title. 


The payout looks likely to be the 
highest ever by personal accident 
insurers to a sportsman and is 
expected to lead to a contraction in 
the highly specialised comer of the 
insurance market 
Animal premium income from pro- 
fessional sportsmen’s personal acci- 
dent premiums is estimated to 
amount to about £20m, of which 
between 10 and 15 per cent is gener- 
ated by racing drivers. 

Professional soccer players 


account for up to 40 per cent of the 
total. 

Previous heavy claims include 
$14m paid to an American footballer 
paralysed after sustaining critical 
injuries. “This is one of the largest 
personal accident loses of any 
sportsman." commented one broker. 
Senna, who was widely regarded as 
one of the safest grand prix drivers, 
is understood to have paid some 
$500,000 for a policy which covered 
accident and medical expenses. For 


the personal accident element of the 
policy, the basic rate of 0.75 per cent 
(of the sum insured) was at the 
lower end of the range of rates 
charged to racing drivers. 

Motor racing drivers can pay up to 
1.5 per cent of the sum insured for 
basic PA cover. 'Hie broker said that 
following safety improvements in 
recent years insurers rated the poli- 
cies with the expectation that c laims 
would cover injuries and medical 
costs rather than death. 


Many still in dark over 
cross-channel route 



Voters make their way to a polling station in London's East End where legal monitors were present due to fears of intimidation. The 
area was tense following recent victories by the far-right British National Party. Elsewhere more than than half the nation's 
electorate was eligible to vote in local pods seen as crucial to the fortunes of the government and the prime minister. p>aunc c«*i a«n 


Workers ‘lured’ to east Germany 


The Queen and President 
Mitterrand will officially open 
the Channel tunnel today. But, 
despite the publicity surround- 
ing one of the most ambitious 
engineering projects this cen- 
tury, many potential travellers 
are still in the dark about how 
it will work. Here is a users' 
guide. 

When will the tunnel open? 

That depends on who you 
are. Truck drivers may be able 
to start using the tunnel from 
next week but car drivers wffl 
have to wait until July. Details 
have yet to be g iv e n but Euro- 
tunnel hopes then to offer a 
limited service for sharehold- 
ers, long-term supporters of the 
project and others “by invita- 
tion only.” 

About 50.000 car-loads of spe- 
cial invitees are expected to 
make the trip at reduced rates 
or for free before a nearly 
full-scale paying service starts 
in Septemher/October. 

Through train services on 
Eurostar trains between Lon- 
don Waterloo and Paris and 
Brussels are expected to start 
Up w o nv ftfaig in the s ummer , 
a gain initially with only a lim- 
ited service. 

Can I drive through the 
tunnel? 

Na If you take your car you 
win have to put it on one of 
the shuttles which will run 
between Folkestone and Calais. 
Can I put my car on a shuttle 
in London, Paris or Brussels? 

No. The Eurostar services 
between the three capitals are 
for foot passengers only. 

What will It cost? 

Fares for the car shuttles 
will range from £310 at peak 


Charles 

Batchelor 

previews the 
tunnel service 

summer weekends for a car 
and foil complement of passen- 
gers falling to £220 in winter. 
These prices are roughly com- 
parable with ferry prices but 
they against, for 

example, business travellers 
alone in their car or couples. 

Fares for the Eurostar ser- 
vices have yet to be 
announced. Business travellers 
paying full fare can expect to 
pay a similar price to the air- 
line fare of around £200 but 
special deals for leisure and 
off-peak travellers could be as 
low as £80 return. 

Will tt be safe? 

Eurotunnel calculates that a 
trip throu gh the tunnel should 
be 30 times safer than a similar 
train journey above ground. 

Tough safety standards have 
been enforced by independent 
inspectors and safety has been 
designed into the tunnel and 
its si gnallin g systems. The two 
r unning t unn els mean tr ains 

never run in opposite direc- 
tions on the same line while 
shuttle carriages are designed 
to contain fire for 30 minu tes. 

Hie tunnel has also been 
built through chalk marl, a 
soil rock impermeable to 
water, at depths of between 80 
and 150 feet below the sea bed 
so a sudden influx of water is 
unlikely. 

But travellers will be expec- 
ted to stay with their cars on 


the shuttles. If a car develops a 
petrol leak and catches fire 
passengers would have to 
move to the next carriage 
quickly. There are also fears 
that the open lorry shuttles 
(car shuttles are enclosed) 
would mean a fire or fumes 
could spread more quickly. 
How long will it take? 

If you are just taking a shut- 
tle through the tunnel the 
motorway-trvautoroute time is 
just over an hour of which half 
is spent actually in the t unnel. 
If you are travelling by Euros- 
tar the London to Paris jour- 
ney time will be 3 horns and 
London to Brussels time will 
be 3 hours 15 minutes. 

These through journey times 
should be cut to 2% hours and 
2 hours 10 min utes respectively 
after the Belgians complete 
their high-speed link in 1996 
and the British build their 
Channel tunnel rail link by 
around 2002. 

The Eurostar tr ains ahnnlri 
provide a faster, more conve- 
nient service between the three 
capitals than is possible by air. 
The advantage of the train is it 
delivers travellers to the city 
centre, it is not susceptible to 
fog or other airline delays and 
it also provides an uninter- 
rupted jouzney. 

What are the facilities for 
relaxing during the journey? 
Eurostar travellers will have 
the normal facilities of a train 
journey including meals 
(served at your seat for first 
class passengers) and a bar. 

But travellers on the shuttle 
have only “a loo and a light 
bulb,” as the ferry companies 
like to describe it 


By Andrew Taylor, 

Construction Correspondent 

Hundreds of British 
construction workers lured to 
east German building sites by 
the promises of high wages 
have been left destitute after 
being cheated by unscrupulous 
labour agencies and employers 
the UK Building Employers 
Confederation (BEC) warned 
yesterday. 

Arrangements to ship home 
150 distressed construction 
workers was made in a single 
month this year by British con- 
sulates in Germany armrriing 
to the UK foreign office. 

One 19-year-old Londoner 
was paid the equivalent of £10 
for four weeks grinding the 


surface of bricks in a German 
car park before being dis- 
missed for allegedly poor work. 
Conditions on the site were 
very poor and the worker was 
not provided with a mask, said 
the BEC, which has inter- 
viewed a number of recently 
returned workers. 

It claims many more are stOl 
trapped or trying to make their 
way home, unaided. British 
consulates will help individu- 
als trace friends and relatives 
who might pay for fares and 
make travel arrangements but 
do not provide money. 

A big rise in eastern German 
c onstru ction following the uni- 
fication of the country has 
increased demand for cheap 
labour sucking in thousands of 


temporary workers from east- 
ern Europe, Turkey and also 
from Britain. 

German construction work- 
ers under the country’s strict 
labour laws are much more 
costly than foreign workers 
many of whom are uneducated 
or do not speak the language 
and find it difficult to complain 
about appalling living stan- 
dards or dangerous working 
conditions. 

Mrs Elizabeth Bridge, BEC's 
director of taxation services, 
said she was alerted to the 
scale of the problem after UK 
construction workers 
requested information on how 
to reclaim German tax paid on 
wages. They had been duped 
into accepting lower wages on 


the false grounds that British 
authorities would repay the 
tax. 

Many of the labour agencies 
advertising for bricklayers, 
plasterers and scaffolders in 
British national newspapers 
are based in Belgium or Hol- 
land outside of Germany where 
they would be illegal. Job seek- 
ers mostly are interviewed in 
bars or public places. 

A 36-year-old scaffolder who 
answered an advertisement in 
the Sun newspaper was told to 
make his way to a Frankfurt 
hotel where he waited for three 
days with about 50 other work- 
ers. Their potential employer 
never arrived and the scaf- 
folder was left with a £400 bill 
The agents could not be traced. 


Super tram 
venture 
appeals for 
funds 

By Charles Batchelor, 
Transport Correspondent 

Promoters of a El 12m plan for 
a West Midlands “super tram'' 
yesterday relaunched their 
appeal for government fund- 
ing though approval in next 
November's budget would still 
mean a delay of four years in 
starting the service. 

Centro, the West Midlands 
passenger transport executive, 
has formed a joint venture 
with two private sector compa- 
nies to build a 13-mile long 
tram link between Wolver- 
hampton and central Birming- 
ham. The Midland Metro 
would be the third modern 
light rail system to be built In 
the UK after s imil ar projects 
in Manchester and Sheffield. 

It has been delayed by pres- 
sure on government finances 
which have meant that the 
£l02m of public sector funding 
has not been sanctioned. 
Approval in November would 
means services could start in 
1998. four years late. 

The Midlands proposal 
involves the greatest transfer 
of risk to the private sector 
and the largest private sector 
contribution to a light rail 
project, said Mr Bob Tarr, Cen- 
tro director general. 

Centro’s two private sector 
partners, the John Laing con- 
struction group and the Italian 
supplier of rail systems, 
Ansaldo Trasporti, would put 
£9. 2m into the project in 
return for a 23-year operating 
concession, including a three- 
year construction period. 

Centro is seeking a further 
£80m in UK public sector 
finance and VMm of European 
Union funds. The UK public 
sector contribution will com- 
prise £40 m of government 
grant and £40m raised by local 
authority borrowing requiring 
Treasury approval. 

All the operating risks have 
been transferred to Laing and 
Ansaldo, the two companies 
said. If the project does badly 
and they pull out they forfeit a 
£5m deposit to Centro while if 
“super profits'' are made on 
the line a share will also have 
to be paid to Centro. 


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NEWS: UK 


EU court blow to pensions for all at 60 


By Robert Taylor, 

Labour Correspondent 

Women in Britain hoping European 
Union law would help them secure a 
full pension at 60 suffered a setback 
yesterday. 

The advocate-general of the Euro- 
pean Court of Justice said EU law did 
not prevent an employer raising a 
woman's pension age to 65, the same 
as a man. The court usually confirms 
the advocate-general's opinions. 

The case being considered by the 
court involves 78 women who work 


tor Avdel Systems, a company in the 
town of Bedford, north of London. 

They had p lann ed to retire at 60 on 
full pension but were told by their 
employer in July 1991 that unless 
they continued to work until they 
were 65 their total pension entitle- 
ment would be cut by a) per cent 

“We are obviously disappointed tor 
the women," said Ms Kamlesh Bahl, 
chairwoman of the Equal Opportuni- 
ties Commission, the UK equality 
watchdog. “They have lost substantial 
pension rights as a result of the 
change and feel It is wrong that in the 


name of equality those rights have 
been taken away." 

Mr Alan Jenktnson, policy director 
at Sedgwick Nobles Lowndes, 
employee benefits consultants, said: 
“The opinion goes farther than gen- 
eral practice in this country, as tew 
employers are equalising pension ages 
for service up to May 1990. 

“But it is unlikely employers will 
take faQ advantage of it Not only will 
it complicate the administration of 
their pension schemes, but the 
changes it will bring would be harsh 
on their female employees." 


The European Court's Barber v 
Guardian Royal Exchange ruling in 
1990 found that pensions were part of 
pay, so men and women had to be 
treated equally. Occupational pension 
mhanwa fwid to remove sex discrimi- 
nation from their rules - including 
the different ages at which pensions 


Yesterday’s opinion, if confirmed, 
would mean employers could set the 
retirement age and would not, under 
European law, have to preserve any 
previous advantage held by women. 

They would still have to ensure, 


Supermarkets 
to face courts 
over brands 


By Robert Poston 

Brand manufacturers are 
planning to launch a series of 
court cases against supermar- 
kets that sell look-alike prod- 
ucts, having become convinced 
that a full-scale war with the 
big supermarket chains has 
become unavoidable. 

Their fears of being damaged 
by supermarket products pack- 
aged to resemble market lead- 
ing brands have been under- 
lined by an NOP opinion poll 
they have published showing 
that more than a fifth of all 
consumers have bought super- 
markets' own brands in the 
mistaken belief that they were 
purchasing a filing brand. 

John Murphy, chairman of 
the brand development com- 
pany, Interbrand, and spokes- 
man of the British Producers 
and Brand Owners Group, said 
that the brand manufacturers 
felt that they had been 
exploited by supermarkets for 
too long. 

He said the brand owners 
would be launching a series of 
law suits alleging that super- 
markets were “passing off” in 
the packaging of products. 

Coca Cola is widely expected 
to initiate the legal campaign 
with a passing-off case against 
Sainsbury for allegedly infring- 
ing its intellectual property 
rights. 

“We have made our views 
known to Sainsbury”, said Mr 


German buyer for Lancer Boss 


Peter Stokes of Coca Cola. 
“However I cannot comment 
on what farther action- we will 
take until our talks with the 
company are completed". 

Mr Murphy said that Sains- 
bury was likely to be the target 
of several oases. Manufacturers 
might launch a case against 
the group In France, where the 
chain has recently opened a 
shop in f-fllais and where the 
legal restrictions are much 
tighter than in the UK. 

The NOP poll was conducted 
three weeks ago and involved 
interviews with 1008 shoppers, 
Of these, 42 per cent said they 
had picked a supermarkets' 
product off the shelf thinking 
It was a manufacturers' brand 
and 21 per cent said they had 
mistakenly bought a look-alike. 

Equally worrying for the 
brand manufacturers Is that 41 
per cent believed - mistakenly 
- that supermarkets’ products 
were by the manufactur- 
ers of the market leading 
equivalents. 

The results seem to contra- 
dict a MORI poll for the British 
Retail Consortium of 514 shop- 
pers which found that 78 per 
cent of shoppers said they 
never confused branded goods 
and look-alikes. The brand 
owners group, which includes 
Procter & Gamble. Unilver, 
Nestld ami Mars, has failed to 
persuade the government to 
amend the legislation to intro- 
duce curbs on look-alikes. 


By Andrew Baxter 

The future of Lancer Boss was 
finally resolved yesterday 
when administrative receivers 
to the last big UK-owned pro- 
ducer of lift trucks announced 
they had sold the business to 
Germany’s Jungheinrich. 

The deal, which was wel- 
comed by managers and 
employees at Boss, ends one of 
the most extraordinary receiv- 
erships in UK corporate his- 
tory. It secures the future of 
700 jobs at Boss factories in 
Leighton Buzzard, Bedford- 
shire. 

Terms of the deal were not 
disclosed, but it is understood 
Jungheinrich paid about £l8m, 
excluding debtors, for the 
Lancer Boss Group and associ- 
ated companies in the UK, 
Ireland and Austria. 

The deal - which sees the 
last significant UK-owned lift 
truck producer pass into for- 
eign hands - follows intense 
negotiations in the past few 
days involving Grant Thorn- 
ton, the accountants who were 
appointed administrative 
receivers on April 8, and the 
three bidders. Jungheinrich, 
based In Hamburg, was per- 
suaded to raise its bid “very 
significantly,” outbidding 
Terex of the US and a proposed 
management buy-in. 

Mr Allan Griffiths, a partner 
at Grant Thornton and one of 
the administrative receivers, 
said the price paid by Jungh- 
einrich was “at the very top 
end of our estimates.” 

He would not say how much 
Boss’ banks, led by National 
Westminster, would receive, 
but said they were pleased 
with the deal 

Lancer Boss called in the 


receivers on April S after Ger- 
man banks withdrew support 
from Stelnbock Boss, the UK 
company's big German unit, 
prompting it to call in a Ger- 
man receiver. 

The case quickly highlighted 
the difficulties of selling a 
group with borrowings and 
operations in different Euro- 
pean countries when there are 
no standard European insol- 
vency rules. 

Yesterday. Mr Griffiths said 
there would have been more 
international interest in 
Lancer Boss if he had been 
able to sell the UK and German 
rides of the business together. 

He warned that a split 
receivership could reoccur, 
especially with medium-sized 
UK companies whose Euro- 
pean operations are financed 
locally, and said he would be 
sending a report to' the Depart- 
ment of Trade and Industry on 
the lessons iftflrofld from the 

affair 

Jungheinrich was always 
considered the leading con- 
tends: for Lancs* Boss after its 
purchase of Stelnbock Boss. Mr 
Bob Bischof, chairman of 
Jungheinrich (GB), defended 
his company’s role in the affair 
against accusations of a “con- 
spiracy" against Lancer 
Boss. 

He claimed the combined 
price paid by Jungheinrich for 
Lancer Boss and Stein bock 
Boss was virtually the same as 
it had offered before the receiv- 
ership to the group’s former co- 
owner and chairman. Sir Nev- 
ille Bowman Shaw. 

Mr Bischof said he was 
“absolutely sure that no con- 
ceivable scenario would endan- 
ger jobs” at the Leighton Buz- 
zard plant. 



B 

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fgfttPAV MAY 6 

wttvaNCIAL - rtMKS VKW 


Britain in 


brief 


however, full equality of pension enti- 
tlement for service after May 17 1990, 
the date of the Barber ruling. Under a 
European court ruling last October 
employers are not obliged to pay 
equal pensions to men and women for 
service before May 1990. 

For the women at Avdel Systems, 
pension rights would be protected 
only between May 1990 and July 1991 
when tiie company raised the age of 
their pension gnt jtiemmt- For service 
before May 1990, the European Court 
has held that European equality law 
does not apply. 


Dr lug Hans-Feter Schmohl of Jungheinrich' (left) and Alan 
Griffiths, the Lancer Boss receiver, yesterday pww*Nt»i»v«d« 


Hunt losses 
Nissan UK 
appeal 

Mr Michael Hunt, the former 
Nissan UK mana gi ng director 
jailed for eight jean after 

being found guilty of the 

largest cQrporati on ty ftuud 

in UK history, yesterday lost 

his appeal against both 

conviction and sentence. 

Three appeal court Judges 
upheld the majority verdict 

reached by the trial jury last 

Jane convicting Mr Hunt of 
conspiring to cheat the Inland 
Sevenne of £55m. 

The fraud involved Nissan 
UK, former importers of the 

Japanese cars, using an 

intermediary company ana 
false Invoices to artificially 
increase freight charges and 
so avoid corporation tax over 
a nine year period. 

Giving judgment. Lord 
Justice Stuart Smith said the 
eight year sentence was “not 
a day too long”. 

Abta to use 
detectives 

Tbe Association of British 

Travel Agents is launching 

a two-pronged crackdown on 
tour operators and travel 
agents - Including the use of 
private detectives - to 

safeguard customers against 

com panies going bankrupt. 

Members voted nine-toone 
I at the association’s annuo! 
meeting last weekend to give 
the secretariat more powers 
to look into companies’ 
acco unts and activities at any 
time - for example, If it 
suspected a company of 
En g a g in g in activities of which 
I it was not aware. 

Russian car 
group duped 

Three British businessmen 
were convicted yesterday or 
a multi-million dollar fraud 
on a Russian automotive 
company frying to set up a 
large reale kit car assembly 


operation following the 

collapse or the Soviet 

command economy. 

The fraud, centred around 

the non-delivery oT goods paid 
for in advance by the Rumba 
Autokam company, is seen 
by UK police «od prosecutors 
as a prime example of the 
vulnerability of em erging 
Eastern bloc entrepreneurs 
to outside exploitation. 

Hoskvns seeks 
role in Crest 

Hoskyns. one of t he UK 's 
leading computer services 

companies, has announced 

it will compete with the 
Loudon Stock Exchange to 
become tlie Independent 
supplier or fall operational 
facilities for the CREST 
paperless sharp settlement 
system. 

It is thought that in addition 
to Hoskyns and the Stock 
Exchange itself, potential 
competitors for the dost 
contract include AT&T, British 
Telecom and EDS. 

Shoppers face 
coffee rise 

Shoppers could face farther 
increases in the cost of coffee 
after a surge tu the 
international market has sent 
wholesale prices rocketing 
in recent months. The Lo n d on 
Commodity Exchange's coffee 
futures price has risen by 4ft 
per cent or 9470 a tonne since 
the beginning of the year. 

A squeeze In coffee supplies 
on the world market has 
pushed prices up by 9117 a 
tonne this week atone and 
although the market slipped 
back slightly yesterday, 
analysts say the tong-term 
trend is upwards. 

Nationwide 
unravels links 

Nationwide Building Society 
is to set up wholly owned life 
insurance and unit trust 
subsidiaries which are due tu 
become operational next 
summer. The move marks a 
farther unravelling of the links 
that have existed between Hfe 
insurance companies and 
building societies. 

The society currently acts 
as a “tied agent" for Guardian 
Royal Exchange, the composite 
insurance group, selling only 
Guardian insurance products. 




COMMERCIAL PROPERTY 


2&*Si 


Public Auction on' 


' 18ttl_ 1984 




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talks 
peace 
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A Ram opportunity to acquire one of Dublm’s most famous Hotels" 


Tine* miw Iran CAy Centra 

Dnnbia Location 

Accommodation 
• 50 Bedrooms 
-8,500 sq. ft. Nite-dub 
-But! & Bear Pub 
•Restaurant 

•Al situated on 39 acres of grounds 


On Dubfitfa main route Saudi 
DmtofMMrt po te ntial 

'Pianning Permission, oasts 
• Leisure centra (inducing poc 
•2 Restaurants 


•Stand dona Medical Central Office 
Block 


AUCTION SALE 

AUDERGHEM & WOLUWE-SAINT-PIERE 
OFFICE BUILDING 
Boulevard de Souveraln, 400 
(In front of Val Duchesse perri 

► Ground: 1835 rtf 

- frontage: 64.19m 

- 4 floors for office 
purpose (1490 nr) 

- car parks 
-free 01 .07.94. 

!► Starting Plica 
(after higher bid): 

6a ,250,000 BEF bank warranty of 25.000.000 BEF to be produced at the 
sale. 

Town planning: Administrative purposes 
Visas: Tuesday & Friday 2-4 pm. 

Auction Sale-. Monday Slay 30, 1994 at 2L30 pm m ihe Mafcon des 
Notaires. rue de la Montagna 30-32. Brussels. 

► Notary Hans BERQUIN, aU4e du doflre 7, 1050 Brussels, 
tel: 02/646. (SLOO 


An effective marketing strategy 
needs to reach the right target 
audience. To ensure your company's 
message is read by 
65,000 UK Property decision-makers 
advertise in the 
FT's Commercial Property 
section every Friday. 

Contact 

Mark Hall-Smith 071 873 3211 


DEVELOPMENT SITE 
FOR SALE 


NETHERNE, HOOLEY, SURREY 

c. 178 Acres 

with existing buildings 

Suitable for new housing, 
conversion of existing buildings, 
institutional or leisure uses. 

Ref LJB/JMC 


ORLANDO, FLORIDA, USA 

2,180 PRIME ACRES FOR SALE FREEHOLD 

□ FULLY APPROVED DEVELOPMENT OPPORTUNITY MINUTES FROM DISNEY 

□ VI THE HEART OF THE MAJOR GROWTH AND TOURISM CORRIOOFI 

□ PLANNNQ PERMSQON QUANTED FOR MIXED VJ3E INCUJDtNQ: 

□ RESIDENTIAL 

□ RETAIL AND COMMERCIAL 

□ LEISURE 

□ HOTELS AND TTMESHARE 

Au. ehqures to Quentin Jones 

Lanofom Properties Lusted, Hs&ey on iViAMes, Qxon RG9 3JU England 
Telephone amo Facsimile: 0628S2 9903 

= KNIGHTSBRIDGE SW1 = 

Self contained office suits, 2,000 sqft to let Elegant 
landmark building 

fronting Hyde Park. Lift, CH, Porterage. 
Rent/Rates/Serv. Ch under £30 p.s.f. 

Mailer and Mailer Tel: 071 235 9641 or 
MeUerah & Harding Tel: 071-499 0886 

BERLIN 

GERMANY'S BOOMING CAPITAL CITY 
Best located properties for sale: 

1 . Protect with shops, offices, apartments, appr. 45.000 m2 

2. Projected shopping centre with Offices, appr. 50.000 m2 
DOHO GMBH. Immobillen- Marketing. Fax +8431-48020 
Leopold Inenlnsel 36/10, D-S6633 Neuburg/D., Germany 

SACKVTLLE STREET, W1 | 

l 

2400 Sq Ft Omen plan kectjrb ohtces. 

LOW BENT. 

PSIVATS CAB SPACE. 

LV AM) CO. ! 

0716366933 



Sketchley Meadows Business Park, Hinckley. 
7,000 sq ft self contained office building 
C?r P.i.-rtir.y Rode 1: 1*5 sq M 
= oS t-VtOJ; _ _ -- ' ' 

•VoO rdotcr.vy 2 m.Mutef. J»v.v> j 


MARK ISO's] 

cjujjtmnfi 


021 236 2066 


MOSCOW EXECUTIVE 
OFFICE SUITES 

Immediate occupancy in the heart of Moscow. Fully 
furnished & equipped. Safe, secure setting within the four- 
star Kadisson boteL 

Can today. Americom Business Center: 

Tel: (7095) 941-8815 or Fax (7502) 224-1107. 

Info in US: Tel (714) 752-6577 Fax (714) 752-6564. 


Relocating in Northwest - 
Warrington area? 

Small country house, equi-distant Manchcstci/LivcrpooL 
2Vi miles M6/M62, 1 175 sq fl office accommodation Including magnificently 
furnished board room and residential accommodation for principal, in otto 
acre of ma i nta i ned garden 8 acres parkland. Mcdium/long term let. 

Ring 9925 764106 for detailed brodmr^ or immediate Inspection. 


FREEHOLD PROPERTY FOR SALE 
THE ATLDP CENTRE 

The Low of Property Act Receives, Derrick S Woolf and Pail Shippertoc offer 
for sale the dxwe property, located at 197 Ealing Road. Alpertoo, Middlesex. 

Principal features include: 3 Soars plus basement on 4.86 mm 

acres which comprise 23 retail outlets, restaurant, 
club and ear park. AH wilh vacant possession. 

For father details please call or fim r p • v v r E c 

Nomun Ssikis ai Levy Gee & Partners. J- n V X vrE K 

Tel: 07 1-267 4477 Fax .- 071-4SS 1486 . & PARTNERS 

Florida Mobile Home Parks 

AND 

RV Parks For Sale 

Serious inquiries only. Real estate partnerships also available. 

Contact! Wayne Garber or Lamotu Garber (407) 740-8773 Eastern General 
Realty Gorp. 140 N. Orlando Avenue, Suite 150-9 Water Park, 
Florida 32789 USA. 


SEALED BID SALE 

Two Fully Leased Office Complexes 

Hollywood/Ft. Lauderdale 
Florida 



VENTURE 

CORPORATE CENTER 

■ Three office buildings 

■ ±250,000 square feet total 

■ Reserve Price: US $18,000,000 



EMERALD HILLS 
EXECUTIVE PLAZA 

■ Two office buildings 

■ ±138,000 square feet total 

■ Reserve Price: US$11,000,000 

Sealed Bid Deadline: June 29, 1994 
Please call for Brochure #7126 
Europe: (44 81) 665-6243 (Fax Written Request) 
Asia: (852) 802-2663 
United States: (310) 314-8535 

KENNEDY-WI LSON 


1 N T E ^nationu, 

REAL ESTATE MARKETING AND 
, ■ INVESTMENT BANKING SERVICES 

0 1994 Kenedy- Wllsun Inc. 

A GATEWAY TO RUSSIAN 
MARKETS FOR SALE 

WW ao*** on large 
Scandma^^R^fa |aC6nl 10 "" main 

The building comprises: 

Office and work space appr. 9000 m* 

Warehouse appr. 9000 nr' 

Yard area appr. 30000 m* 

tel. +358 0 1803 702 fax + 358 0 1 803 725 

Htionelstokeskus Oy LKV j 

m«|. ^ opert y Advisors 

1— Melkonkaru is 00210 Helsinki 


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FINANCIAL TIMJES FRIDAY MAY 6 1994 

PEOPLE 


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Foreign policy expert 
joins Morgan Grenfell 


Sir Rodric Bratthwaite, 61. the 
fonner foreign, policy adviser 
to Britain’s prime minister, has 
found a City job. 

He has been appointed a 
senior adviser to Morgan Gren- 
fell, the UK merchant bank 
owned by Deutsche Bank. 

Sir Rodric, right, who is also 
on the European advisory 
board of ICL, is one of the dip- 
lomatic service's most experi- 
enced figures, with 37 years 
notched up. including serving 
as ambassa d or in Moscow dur- 
ing the difficult years of IS88 to 
1992. 

Although he has spent time 
in Rome. Brussels and Wash- 
ington, it is Sir Rodric’s Rus- 
sian expertise which will be 
most useful to Morgan Gren- 
fell; he is fluent in Russian. He 
is expected to spend about 
three days a week on hanir 
business. 

The merchant bank has been 
a major player in Eastern 
Europe for many years. 

It was the first UK merchant 
bank to open an office in 
Moscow (in 1977) and has 
arranged over 90 per cent of 
the export credits to the former 
Soviet Union. 

More recently, it has com- 
pleted the first limited 
recourse financing for an oil 


project in Russia, and is ai«r 
advising British Gas amri Agip 
Ott the S6tm KaraHiapiTmlt gag 
field development in Kazakh- 
stan. 

Whereas most merchant 


?<■*« :<*v. 



banks tend to recruit ex-diplo- 
mats as non-executive direc- 
tors, Morgan Grenfell prefers 
to hire them as advisers. 

Last year, Morgan recruited 
Sir John Whitehead, a former 
ambassador to Tokyo. This lat- 
est appointment, of Sr Rodric, 
win bring the bank’s total .of 
special advisers to four. 


Cadbury comes to fore 
at Premier Brands 


Roger Cadbury, 56, has been 
appointed chairman of Premier 
Brands, the Hfilsdown Hold- 
ings subsidiary. 

He replaces Bart Constandse, 
who stands down on June L 
Constandse will also be resign- 
ing as a director of HIDsdown 
- after being with, the group 
for 4 V* years - on July L 

The post of Premia' Brands 
chairman incorporates the 
European biscuits and bever- 
ages division of the group. 

Cadbury has considerable 
experience of the food and bev- 
erage business, having worked 
for Beecham, General Foods 
and Whitworth Holdings. 

He was promoted from being 
sales director of General Foods 
to deputy managing director in 
1984, moving up to managing 
director in 1987. His joined Whi- 
tworth HnMinp i as group man- 
aging director in January 1990. 

Although a member of the 
well-known Cadbury family - 


as second cousin cf Dominic 
and Sir Adrian Cadbury, his 
great-grandfather was their 
grandfather - he has never 
worked for the Cadbury busi- 
nesses. 

Ironically, however, thanks 
to a management buy-out 
which gave birth to Premier 
Brands, he will now have 
responsibility for same famous 
biscuit brands carrying the 
Cadbury name. 

Hills down restructured its 
subsidiaries into four Euro- 
pean divisions some 18 msmt-ha 
ago. 

Of the many familiar bever- 
age brands included in bis new 
portfolio, Typhoo Tea and 
Boumvita are perhaps the 
most well-established. Cadbury 
will be reporting to David New- 
ton, HQlsdown’s chief execu- 
tive. 

Constandse will be returning 
to his native country, HnTiaTid 
to pursue his business career. 


Wetherspoon recruits 
for a heady future 


Tim Martin, the S8-year*old 
New Zealander who founded 
and then floated the pub opera- 
tor JD Wetherspoon, has 
brought in another young man 
to hdp Mm rim the rapldly-ex* 

pa Tiding chain. 

Martin has shared the roles 

Of rhqirman and mana gin g 

director ^ the group cama 
to the market in October, 1992 
- a period which has sees the 
size of its estate grow from 44 
pubs to 77. 

The choice of Mark McQua- 
ter, 34, as the group’s new 
managing director seems 
partly designed to allay any 
concern among institutional 
investors that Martin mi ght 
overstretch himself, as the 
group expands beyond its Lon- 
don base. 

If reassuring institutions was 
their brief, the headhunters 
who came up with McQuater 
appear to have pressed all foe 
right buttons. A Scottish char- 
tered accountant, be has expe- 
rience with both tagoompany 
procedures in the drinks indus- 
try and the City. 


New finance director at 
Green Property 


In the space of six months, 
Green Property, the Dublin- 
based property investment and 
development group, has 
recruited its second corporate 
finance specialist from the 
Investment Bank of Ireland 
(IBD stable, one of Ireland’s 
l parting ftmrt managers. 

The 42-year old Danny 
Kitchen is leaving his post as a 
director of IBI Corporate 
Finance, to join Green Prop- 
erty as its new finance direc- 
tor. 

He will be replacing David 
McDowell, who will continue 
as a director mi the board »nrt 
as company secretary. 

vUrhwi has worked closely 
with Richard Hooper, who last 
September ret ir ed as the man- 
aging director of IBI corporate 
finance and was immediately 
recruited onto Cheen’s board as 
a non-executive director by 
Stephen Vernon, Great’s man- 
aging director. 

Hooper has been involved in 
most of the major corporate 
finance in Ireland for the 
past two decades. 

Belfast-born, Kitchen was 
educated at Queen’s University 


and went on to work for North- 
ern Rank, subsequently joining 
IBI in 1980. 

He advised Green on its 
I£42m acquisition last Febru- 
ary of the Irish Merchant Navy 
Officer’s Pension Fund prop- 
erty portfolio, which consists 
mainly of office buildings in 
Dublin's city centre, and its 
part financing through a suc- 
cessful l£26.3m three-for-foor 
rights issue. 

Vernon said yesterday; “I 
w anted to taice on s omeo ne 
wilh the appropriate corporate 
finance skills the company 
jywk anrt Danny is the best 
man ground." 

Vernon has been on (keen’s 
hoard since 1989 and became 
managing director in Septem- 
ber Last year, four weeks before 
Hooper joined the board. 

His main experience has 
been in the UK property mar- 
ket He added yesterday that 
Kitchen will now bring speci- 
alised knowledge of the Irish 
property and financial markets 
into Green. The company has 
“ambitious plans for further 

grewfh and rtjweln pmpnt ,** he 

said. 


An appetising brew 


For the last five years 
McQuater has been working in 
Scotland with Natwest Ven- 
ture, the dealing bank’s ven- 
ture capital arm. Before that, 
he spent three years with Scot- 
tish and Newcastle Breweries, 
working on corporate transac- 
tions and group planning. 

McQuater - who Martin first 
met in 1987. while signing a 
deal with S&S - win concen- 
trate on the day-today man- 
agement of rtm group, allowing 
t he chairman to wn ywitr ate rm 
strategic development. 

JD Wetherspoon's slick mar- 
keting - which involves reserv- 
ing up to a third of its bar 
space for non-smokers — 
proved successful; another 10 
pubs wffl soon open. 

The splitting of his roles is 
unlikely to mRfln a drop in sal- 
ary for Martin, who last year 
earned £128,000; but the issue 
is scarcely a burning concern. 
The group’s shares have more 
fhan rtnnftp»fl since coming to 
the market, anri the 18 per cent 
stake h e M by Muffin and Ids 
wife is now worth nearly raf»m 


I nvestors scouring the 
commercial property mar- 
ket in search of value are 
beginning to turn their 
attention to an unconventional 
target: pubs. 

Pubs are “one of the last 
untapped property investment 
resources", according to prop- 
erty advisers Erdman Lewis. 
The recent changes in the UK 
brewing industry - prompted 
by the 1989 Monopolies and 
Mergers Commission report 
designed to maim the' industry 
more competitive - has poten- 
tially opened up a new class of 
property investment, with a 
total value equivalent to 8 per 
cent of the total property 
market 

Institutions and property 
companies have, so far, been 
te n tative in their approach to 
the pub market. But the 
remarkable performance of the 
property investment market 
over the past year is encourag- 
ing investors to be more adven- 
turous in their search for bar- 
gains. Pubs share many of the 
characteristics of retail prop- 
erty, but yields (ratio of 
income to capital) are mark- 
edly higher. 

“More and more people are 
looking at pubs as a form of 
property i n vestment in order 
to get more attra ctive yields," 
says Mr Gareth Jones of Con- 
rad Ritblat Sinclair Goldsmith, 
property advisers. The recent 
sale at an auction of a pub in 
Whitechapel, east London, 
(currently let to Shepherd 
Neame) for about £500,000, on a 
yield of 9.5 per cent, is a good 
example. 

Relatively few other deals 
have yet been struck, though 
some investors are actively 
considering investing in the 
market. Erdman Lewis esti- 
mates that gi flpm hag hw*n ear- 
marked by institutional funds, 
property companies and family 
trusts to spend an pub prop- 
erty. 

This nascent interest in the 
pub property market is the 
result of the MMC-induced 
shake-up in the industry, hi a 
market traditionally domi- 
nated by the brewers, the MMC 
limitations placed an bre w e rs’ 
pub ownership has created 
new opportunities for other 
investors to enter the market. 

In broad terms, the impetus 
for the development of an 
n n»*g tmpnt market in pubs is 
likely to emerge from the 
search by pub owners for 


Investors are increasingly 
heading for the pub. 
Vanessa Houlder explains why 




increasingly creative ways to 
finance their pub estates. 

Opportunities for investors 
could also arise with the emer- 
gence of licensed retailers such 
as JD Wetherspoon, Regent 
Inns and Grosvenor lnn«- 
According to Erdman Lewis, 
property investors are pre- 
pared to regard this type of 

company as 

acceptable 


in 1997 the competition exemp- 
tions that ppahte British brew- 
eries to operate the tied house 
syste m . 

But an equally importrnt 
brake on the market is inves- 
tors* reticence. This reluctance 
is not entirely the consequence 
of unfamiliarity with the sec- 
tor. In a survey of investors 
_ that own more 


acceptable than £3bn of 

tenants MOFC JHiOplC 816 direct property 

The market lo oking at pubs as holdings. Con- 
has been slower „ r,, . r * rad Ritblat Sin- 

to taka off than 21 10X111 Ol pFOpCrty Hair Goldsmith 

some analysts investment In found that 40 
expected. Brew- ^ per cent 

era have so far Order to get mOFG already held 
shown little attractive yields’ pubs as invest- 
appettte for strir ments in their 


king sale and 
leaseback deals while finance 
is av ailable from more conven- 
tional sources. 

They may also be holding 
back while there is continuing 
uncertainty ova* the structure 
of the pub industry nntp the 
European Commission reviews 


concerning the method of rent 
calculation. 

Traditionally, pub operators 
have based their assessment of 
rents on the potential trade 
that could be generated from a 
pub. This basis of assessing 
rents deters investors accus- 
tomed to calculating rent on 
the basis of total floor area. 

When Conrad Ritblat Sin- 
clair Goldsmith surveyed 
investors it found that rent cal- 
culation methods topped the 
list of concerns. “Problems 
with rental calculation are evi- 
dently preventing investments 
in public houses," it concluded. 

The poor quality of informa- 
tion about rental and capital 
values is another inhibiting 
factor holding back potential 
pub investors. In the Conrad 
Ritblat Sinclair G oldsmi th sur- 
vey , nearly all Investors said 
this factor has resulted in poor 
market awareness. “In any 
event, an index demonstrating 
rental and capital growth is a 
prerequisite to any significant 
investment market being cre- 
ated," it said. 


T he low value of the 
average pub deal and 
the heavy toll on man- 
agement time and 
effort is another disincentive. 
Institutions frequently require 
portfolios of between eight and 
50 pubs or big city centre sites, 
to makft it worth their while in 
investment terms. 

Potential investors are also 
concerned about the perceived 
oversupply of pubs. The brew- 
ing industry expects the clo- 
sure of a further 10,000 pubs in 
the next few years from a total 
of about 60,000 at present 
The concern over a possible 
flood of pub sales over the next 
few years is reflected in the 
higher values commanded by 
those pubs which could 
potentially be put to alterna- 
tive use. An urban pub, with a 
strong potential for alternative 
use, will command much 
higher prices than a rural 
pub. 

The rtilAmma faring potential 
investors is that some obsta- 
cles to the development of a 
pub investment market, such 
as the lack of a rental index 
and the method of rental calcu- 
lation, are unlikely to be 
changed in the early stages of 
the market's development. 
Investing in pub property may 
have attractions, but at present 
it is strictly for pioneers. 


; yields pubs as invest- 
ments in their 
property portfo- 
lio , usually as a result of a 
huger property holding, which 
in many cases was historic. 

One of the most serious 
obstacles blocking direct insti- 
tutional investment in prop- 
erty is a difference of approach 
between investors and tenants 












'TO 
• FOK 


-- 




? 

, .*!.%• - • 










: x '% 




* 


V 


-V' " 










As a world leader in IT services, we’ve 
hatched quite a few successful projects* 
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is like any other. What they ail share, 
though, is the careful way we nurture 
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to help your entire organization grow. 
And it means jealously guarding our 
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FOR YOU * FOR YOUR COMPANY • 

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CAP GEMINI SOGETI 


EXPERTISE IN INFORMATION TECHNOLOGY" 













10 


MANAGEMENT 


FINANCIAL TIMES FR.OAV MAY 6 I'M 


T he number of women at 
the top of business appears 
to be falling. This week a 
survey by the Institute of 
Management showed that the num- 
ber of women managers and direc- 
tors in the UK’s biggest companies 
fell by 6-9 per cent last year. The 
trend in the US Canada is also 
downwards. 

Given that many large organisa- 
tions have affirmative action pro- 
grammes for women, this situation 
may seem surprising. Following 
research in North America I would 
argue that it has come about 
because of two filtering biases: sex- 
based stereotypes and performance 
management or appraisal. 

A sex stereotype consists of ideas 
concerning ability, skills and prefer- 
ences which are based cm the sex of 
a person rather than their behav- 
iour and job performance. Stereo- 
types are short-cuts to decision 
T fiHiring because they use the obvi- 
ous - for instance, is someone mala 
or female? — rather than judging a 
person’s knowledge or evaluating 
what they have done in their work. 

Many people in general believe 
that women have more “expressive'’ 
skills (more relationship-oriented, 
helpful, emotional, supportive, con- 
sensual) and that men have more 
'’instrumental" gkfflg (more autono- 
mous, independent, assertive, take 
greater risks, are more focused on 
attaining objectives). 

Some psychologists would push 
our acceptance of the biological dif- 
ferences to believing that these are 
the basis for different abilities, 
motivation and posonality. Stereo- 
types are easy-to-use views of peo- 
ple in general, having a grain of 
truth. The point is that they are 
based on men and women non-man- 
agers in the general population. 

Our research asked women and 
men managers (matched on socio- 
economic status, salary, position, 
years of work experience and 
months of supervisory experience) 
to describe the meaning of the moti- 
vational components of their jobs. 
The stereot y pes would suggest that 
male managers would primarily 
offer “instrumental" motivators - 
for example: “Til exceed my sales 
quota"; white the women managers 
would give “expressive” motivators 
such as: TD feel better." 

We found no differences whatso- 
ever. Our results offer no support 
for the argument that the work 
motivators for women versus men 
managers lie in two different 
worlds. 

Critics might still argue that even 
if their motivations are similar, the 
behaviour of the sexes - the way 
they go about realising those 
motives - is different: that la, 
“expressive" for women managers 
and “instrumental” for men. No 
doubt promotion and selection 
board members can selectively 
recall some candidate behaviours 


British female managws^ 


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Women on 
the move 

Michael McCarrey gives his view 
on why the number of female 
directors in the UK has fallen 


that do their iiji wwi expecta- 
tions. But this is an example of the 
sdf-fulfilling prophesy. 

Performance manag ement is the 
most blatant smoking gun to sex 
inequity in management jobs. The 
basic problem is the lack of weight 
given to the task by CEOs and exec- 
utive cadre who. In spite of saying 
the opposite, feel performance 
appraisal is good for their subordi- 
nates, but not for themselves. 

Most managers in a group of top 
US Fortune 500 Companies, for 
example, did not feel that perfor- 
mance management was a legiti- 
mate part of their job as a manager. 
In their corporate cultures the 
implication is that the assessment 


process really belongs to the h uman 
resources department, which is seen 
as mmpiifffltiug the manager’s job 
with armloads of cumbersome, 
time-consuming forms (in whose 
design they have had very little 
involvement). Consequently, line 
managers are rewarded for tasks 
which do not include real steps 
towards the development of their 
subordinates. 

Performance management works 
to the detriment of women manag- 
ers because of the way it combines 
with the aforementioned sex-based 
stereotypes. It is precisely because 
performance management is time 
consuming, difficult and seen as 
peripheral, that supervisors are too 


often, tempted to use sex-based ste- 
reotypes to accelerate or simplify 
the appraisal process. 

For example, oar research found 
that compared with egalitarian 
supervisors (Identified as those who 
had few sex-based stereotypes), tra- 
ditional supervisors (who had many 
stereotypes) devalued the work of 
their women subordinates. They 
appraised them as less abte to direct 
their subordinates autonomously, 
promote their career development, 
or effectively monitor their 
day-today results. 

Little wonder then that an 
increasing number of women man- 
agers react, not so much against the 
tough demands of modem manage- 
ment regimes as against biased per- 
formance management outcomes. 
Some women managers have been 
leaving to run their own companies 
where stereotyped performance 
management evaluations will not 
work to their disadvantage. 

Companies that insist on real 
results in reducing gender inequity 
in their managerial workforce yeeA 
to examine their corporate culture 
and determine the role given to per- 
formance management, by compari- 
son with their (other) strategic 
goals. If the same weight is not 
given to the improvement of human 
capital as to market share, profit 
and other organisational priorities, 
small wonder the hnman resources 
function is often viewed as unre- 
lated to the “reel" goals of the com- 
pany. The add test here is: do the 
job descriptions of all staff (board of 
directors, executive, administration) 
indude meaningful percentages of 
weights and limp spent in subordi- 
nate development with examples of 
what this means in practice? 

Many younger companies in East- 
moving; high-tedi flaids have no job 
descriptions, nor do many self- 
directed work teams. They need 
procedures such as weekly or 
monthly scrutiny of the team “job" 
description with action s t atements 
when indicators show poor out- 
comes across team goals. 

Second, companies insisting on 
real results in reducing managerial 
sex inequity need to examine the 
corporate culture of their board of 
directors, executives and adminis- 
tration for the less overt instances 
- attitudes, prejudice, defensive- 
ness, posturing, territoriality - of 
sex bias in recruitment, selection 
and performance management 

Almost 20 years ago a prominent 
bank's chairman in Canada 
reported that the bank was unable 
to appoint a woman to the board. In 
response to public outcry and, one 
suspects, a drop in retail banking 
market shar e, the bank appointed 
an outstanding woman who met the 
criteria for board membership. 

The author is a professor at the Fac- 
ulty of Social Science. University of 
Ottawa. 


CHRISTOPHER LORENZ 

Cross-border victory, 
national casualty 



How time flies. 
Four years ago a 
government affairs 
executive from a 
big American mul- 
tinational was 
heard complaining 
about a nagging 
Bn. problem. How 
canid the company tell govern- 
ments, without causing a storm, 
that the ^iw i ig i ii g technology and 
economics of its industry were 
undermining its ability - mid that 
of many competitors - to remain a 
“good corporate citizen”? 

To be specific, how could it con- 
vince seemingly deaf officials that 
slower market growth, plus the 
scope for greater cross-border 
economies of scale within Europe 
and across the globe, would soon 
make it impossible for many mul- 
tinationals to maintain a balance 
of activities between countries? 

Put bluntly, they would soon 
need to develop products In only 
one or two European countries, 
to i" a te t hro in just a hand- 
ful. There would have to be some 
painfhl relocations. 

Today even the deafest govern- 
ment official is all too aware of 
the problem. The arrival of the 
single European market has com- 
bined with recession and greater 
global competition to force com- 
pany after company to reconfigure 
its network of activities. 

For understandable but mis- 
guided reasons, the relocation of 
existing factory work tends to 
grab more headlines than the 
reconfiguration of higher val- 
ue-added activities - such as 
research, design and engineering 
- on which future businesses 
depend. 

In the Iasi fortnight there have 
been several such moves. One of 
the most widely publicised was 
LIG's transfer of condom manufac- 
ture from Britain to Italy and 
S pain. Moulinex also announced 
the shift of kettle-making from the 
UK to its native France. 

But the two most significant 
decisions came from Texas Instru- 
ments, the US electronics group, 
and from Ford. 

As part of a “re-engineering” of 
its operations which involves 
creating a small number of Euro- 
pean “business centres”, TI is to 
shut its long-established plant 


near London. It also plans to 
transfer two of its four higbest- 
technology development teams in 
the UK to Germany and France. A 
smaller number of engineers will 
move in the reverse direction to 
Join one of the other UK teams. 
Even more sweeping is Fords 

merger of its North American and 

European vehicle operations, 
which have always worked sepa- 
rately. Europe will become the 
global product development and 
management centre for small and 
medium-sized cars, while America 
takes the rest 

In one sense the TI and Ford 
changes are the latest examples of 
a now standard 1990s phenome- 
non: the migration of multination- 
als away from geographic struc- 
tures towards global ones. 

pprmiRP of the circumstances of 
its industry and its corporate his- 

Networks of 
. far-flung specialists 
are supposed to be 
one of the hallmarks 
of the modem 
multinational 


tiny, Ford is a generation ahead of 
TI unfl many other companies in 
this process; it Is moving from 
regional to global, while they shift 
from national to regional. 

But in other ways, the moves by 
TI and Ford challenge conven- 
tional wisdom about how multina- 
tionals should operate. 

Take TI first. Other large US 
multinationals, such as 3M and 
Hewlett-Packard, have bee n ab le 
to abandon country-based struc- 
tures without affecting the scope 
and depth of their operations in 
major European nations. Units in 
France, Germany. Italy, the UK 
and elsewhere have been given 
regional or global responsibility 
for particular businesses and prod- 
uct lines. Their manufacturing 
and product development have 
been reinforced, not reduced. 

Sadly, 3M and HP are in the 
minority. IT’s problem, and that 
of most other US and European 
companies, is that their range of 
activities in Europe is not broad 
enough, or breakable into suffi- 


ciently small units, to be spread 
evenly across the region- Not has 
XI been growing Ifcst enough to 
emulate 3M and HP. 

But this does not explain Its 
need to move two warns of engi- 
neers out of the UK- The one beiiqe 
moved to Germany was too small 
to stand alone. But this is not tree 
of the other. 

TI says it deckled that Ute Brit- 
ish team, which works on digital 
signal processing for use hi multi- 
media and information highways, 
should be brought together to cre- 
ate “synergy” with a similar 
group in France. Nice was the best 
location, even though It is further 
than southern England from TTs 
main European customers. 

But why co-locate the groups at 
all? Why. in these electronic days, 
could they not be kept in different 
locations, able to communicate 
with each other at will? 

Given all the complexities of 
developing new products, co-loca- 
tion is always ideal. But in order 
to tap skills around the world and 
to be responsive to market differ- 
ences, networks of far-flung spe- 
cialists often have to work 
together. Such networks are sup- 
posed to be one of the hallmarks 
of the modern multinational. 

Which brings us to Ford. Unlike 
TI. it is retaining; at least for now, 
its existing European design, 
development and engineering cen- 
tres - in Germany and Britain. 
The financial and political costs of 
merging them would be high. 

But It has admitted in the past 
that it suffers a cost penalty from 
having two centres in the same 
region. Its new global managers 
will be hunting hard for produc- 
tivity increases in engineering. 

Ford could also decide in a few 
years’ time to shift responsibility 
for some small cars to Mazda, its 
Japanese affiliate - a step which 
was mooted a few years ago. 

So. although Ford has always 
tried harder than most to be a 
good European corporate citizen, 
it may yet have to bring Itself to 
concentrate most of its engineer- 
ing in either Germany or Britain. 
Other companies - and countries 
- will be watching with more than 
a modicum of self-interest its 
straggle to organise more produc- 
tively across borders without 
creating national casualties. 


1 


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PRIVATISATION IN HUNGARY 


forever! 


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The State Property Agency and the State Holding Company are offering 
shares of the most valuable companies of Hungary for sale. 


The Stale Property Agency and the State Holding Company welcome their guests at 
(be CEETEX *94 (Central and Eastern European Technology and Investment 
Exhibition), held in London, Earis Coart between the 9th and 12nd of May. 




/ 



Hungarian State Holding Company 

H-1115 Budapest, Bank ten u. 17/b. Phone: (36)- 1-267-6600 




H-l 133 Budapest, Pozsonyi tit 56. Phone: (36)- 1-269-8990 



In the spring of 1990 free and democratic elections were held 
in Hungary. The government which came to power at the time 
was faced with many historic and economic challenges. Of 
these, one of the most important was to transform the centrally 
planned economy which had been developed over many 
decades, to a free market economy. Privatisation has been of 
crucial importance in achieving this aim: the changing state 
ownership to private ownership. During the past four years 
these comprehensive and irreversible processes took place in 
Hungary. 

Privatisation is the most significant means of developing a 
market economy: by continually increasing the proportion of 
private ownership in the country, the process is instrumental in 
establishing an up-to-date, effective economic structure with a 
wide entrepreneurial middle class in its centre, upon which the 
social basis of the market economy is based. 

Hungarian privatisation, the transferring of the state property 
into private hands, rests on two fundamental principles. Firstly, 
it is not possible to acquire property by civic right, and secondly, 
the process is guided strictly be commercial considerations. The 
new owners are selected in a regulated framework of com- 
petitive tendering. This is the only way of guaranteeing that the 
Hungarian and foreign individuals and companies who acquire 
the state assets have not only got the purchasing power, but are 
in possession of the necessary expertise and capital to operate 
economically, effectively and in the longer term. 

The State Property Agency (Allami Vagyonugynokseg) 
and The State Holding Company (All ami Vagyonkezdfi Rt) 

The State Property Agency (SPA) has been established by 
parliamentary legislation. Its task is to realize state assets; 
transforming state owned companies into private ones, (by 
restructuring, economic improvement and other economic 
organizational measures, prepare them for sale, prepare and 
invite tenders and guard the integrity of the tendering process). 
For the interim period, until the state owned companies 
belonging to the portfolio of the SPA are sold, the Hungarian 
state has vested the responsibilities of ownership and the 
exercising of ownership rights into the SPA. The SPA also 
develops privatisation techniques and methods. During the 
process it utilizes the services of many expert asset valuation, 
marketing, broker and consulting companies. The SPA owns 
various proportions of the restructured state owned companies. 
It is these state assets which the SPA realizes during the course 
of the tendering process. It fosters wide ranging international 
contracts and has an extensive data base as well as a compre- 
hensive information system. It carries out far-reaching publicity 
and marketing activities. 

The State Holding Comp a ny (SHC) has been established to 
handle and sell off part of the assets of those companies in which 
the state wishes to keep a permanent stake, its goals, which are 
also regulated by law, are the following; 

• to privatise to the maximum degree allowed by legislation, 
the companies H handles. 

• to maximize the value of the assets it is managing, while 
continuing with its strategic activities, 

• to pay dividends to its owner, the Republic of Hungary. 

The SHC exercises owner's rights by employing commercial 

procedures. Its primary task is to promote the effectiveness of 
the responsibilities of the state in those sectors of the economy 
which are of strategic importance, in other words, it aims to 
ensure the long-term viability of state owned companies. It 
develops comprehensive strategies for the companies in its 
portfolio. Its portfolio is defined by government decree which 
also stipulates the proportion of its ownership which may vary 
between 5 per cent and 100 per cent. However, in the majority 
of companies the stipulated share of ownership is 25 per cent 
plus one vote, or 50 per cent plus one vote. Its remit is to privatise 


50 per cent of the total assets in its portfolio with the exception 
of banking institutions. 

Foreign investment in Hungary 

According to previous legislation, companies operating with 
majority foreign participation had to apply for government 
approval, which meant not only the Minister of Commerce, but 
'also the Minister of Finance. These regulations have been 
abolished in 1 990. Since then, foreigners who wish to establish 
a commercial enteiprise in Hungary do not need any permission 
whatsoever in respect of the size of the share package the) 1 may 
own. As far as foreign investment is concerned, no exceptions 
or restrictions apply to any industry. 

The year of 1993 was record breaking in attracting foreign 
capita] investment. According to preliminary figures $2.2 
thousand million foreign investment has been realized in 1993, 
while it amounted to only $500m up to 1989, $900m and 
$ 1700m in 1990 and 1991 respectively, and also $ 1 700m in 
1 992. Total foreign investment to date is in excess of $7, 000m. 

Twenty-nine per cent of foreign investment originates from 
the United States, 25 per cent from Germany, 12 per cent from 
Austria, 6 per cent from France and 5 per cent from Italy. Other 
significant investment has been placed by Japan, the United 
Kingdom# Sweden and Holland. Compared to previous periods, 
the increase in the proportion Of German investment is 
outstanding. 

Fifty-eight per cent of all foreign investment has been 
channelled into industry, the most significant proportion into 
the engineering and food industry, 16 per cent into tele- 
communications, 7.5 per cent into the hotel, office building and 
property sector, and 7 per cent each into the financial and 
commercial sectors. Recent tendencies show that the 
telecommunications sector has become the most attractive one 
for foreign investors. 

1 993 saw the privatisation of the Hungarian Telecommuni- 
cations Company (MATAV) which yielded a significant $875m 
revenue for the country. 

Future prospects of Hungarian industry 

According to economic analysis one of the most important 
,s » c 3 ** UP* «n the shortest possible time, 
which the developed nations. In order to achieve this aim the 
Structure of industry must, on the one hand, be brought in line 
with world economic trends and domestic potentially while on 
! h ® and constitutes the more difficult task, the old 
industrial structure distorted and blinded by the previous 
sttategy must be eliminated, thus developing comparand 

The appraisal of development possibilities reveals that the 

uH^T in a " Probabi,i *' be competitiUto £ 

• Activities related to the food industry. E e bioterh™i™. 
mtermediate manufacturing, the fo^Unduttry, agri 
equipment manufacturing, refrigeration industry* IbJd foSSS 

• Fu2I rt J n i nufe u?. Ur i n8 and the “™ing industry” ^ 

• Elements of public health systems F n ’ 

industry, medical instrument manufacture, dS^lnd 
construction of hospitals rendering corrmletn . es ? n .’' nd 

* ndustr >'- «hich rcl „, to 
electronics, the leather and synthetic P"*?* °- f Vt ‘ hic5 ° 

ssr — 

• Also favourable are the prospect* nf t , ■ 

and some other light industries. urmturt* industry 




FINANCIAL TIMES FRIDAY MAY 6 1994 


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CC'U 1 - 1 


BUSINESSES FOR SALE 


BRITISH COAL CORPORATION 

Invitation to offer to 
purchase Com power Limited 

Outsourcing of 

information technology services 


British Coal Corporation ("BCD’) is 
seeking afters to purchase Its computer 
services bureau. Compower Limited 
('Compower') and, at the same time, 
tenders for the supply of Information tech- 
nology services currently provided by its 
fri-house Information technology services 
department, BCIT. 

Compower 

Compower, which is a wholly-owned 
subsidiary of 8CC. is a specialist computer 
services bureau providing a range of 
services to Industrial, commercial and 
financial organisations throughout the 
United Kingdom. Its activities are con- 
centrated in the processing services 
sector and include human resource 
management systems, electronic funds 
transfer and point of sale services and 
data preparation and printing services, 
in addition, the Company provides other 
mainframe processing services, mainly 
relating to accounting systems, and sup- 
plies personal computer-based electronic 
data interchange software. 

In the year ended 27th March. 1B93 
Com power's audited profits before tax 
were approximately £0.9 million on turn- 
over of approximately £8.7 million. 

Prospective purchasers of Compower 
are now invited to pre-quallfy for the 
sale process. Applications should be 
made in writing to BCC at the address 
stated below enclosing the following 
information: 

■ a brief description of the applicants 
activities and those of the group to which 
the applicant belongs, if applicable: 

■ a copy of the audited annual company 
accounts and the consolidated accounts 
of the group to which the applicant 
belongs, if applicable, for the past three 
years; 

■ a brief description of the industrial and 
economic rationale for the investment; and : 

■ an explanation of the way In which the 
acquisition would be financed 

Applications may be made by fax but 
should be followed by a postal or hand 
delivered application. 


BCC will consider applications io pre- 
quallfy on the basis of the information 
requested above and any other factors 
considered appropriate and reserves the 
right not to pre-quality any prospective 
purchaser. Applications to pre-qualify 
should be made only by parties which are 
incorporated as limited companies. 

Those who respond to the invitation 
to pre-quaNfy will be provided with a con- 
fidentiality agreement which should be 
validly signed by the applicant and 
returned to BCC at the address stated 
below to arrive no later than 5.00pm on 
Wednesday 18 May 1994. Applicants who 
pre-qualify will shortly thereafter be pro- 
vided with an information memorandum 
Issued by Samuel Montagu & Co Limited 
which will Include Information on 
Compower and on the process of sale and 
fimetabia 

Outsourcing of information tech- 
nology Mnrtcts 

BCC Is also seeking to outsource its 
in-house information technology services 
to an experienced supplier of computer 
related services. The outsourcing arrange- 
ments are to support both pre-and post- 
privatisation businesses. 

in this connection. BCC has Issued 
notices to a significant number of experi- 
enced outsourcing companies Inviting 
interest in tendering for the provision of 
information technology services. Any other 
parties who wish to receive a copy of this 
notice should contact BCC at the address 
stated below. 

The Cannock site 

Potential purchasers of Compower 
and/or potential providers of information 
technology services to BCC will be invited 
to offer to purchase the site at Cannock 
where both Compower Is located and from 
where Information technology services are 
provided to 'BCC.' 

Any such parties wishing to receive 
further information on this site should 
contact BCC at the address stated below. 

General 

BCC's preferred option is to sell 


Compower and the site el Cannock to the 
organisation which will provide the out- 
sourced information technology service. 
BCC will, however, consider outsourcing its 
Information technology requirements and 
seIBng Compower and the site at Cannock 
to different parties. 

Neither this Invitation, nor the receipt 
of any offers by BCC will create, with 
respect to BCC, any obligations or com- 
mitment to sell to any bidder and, with 
rasped to any bidden any rights to demand 
any performance whatsoever by BCC. 
BCC reserves the right to withdraw from 
negotiations with interested parties 
without assigning any reason or providing 
any compensation for fees or expenses 
incurred. Brokers or agents ot any kind 
must disclose the identity of the company 
they represent 

This advertisement and the sale 
process are subject to English law. 

This advertisement. For which BCC 
is responsible, has been approved by 
Samuel Montagu & Co. Limited, a member 
of The Securities and Futures Authority, 
for the purposes of Section 57 of the 
Financial Services Act 1986. Samuel 
Montagu & Co. Limited is acting tor BCC in 
relation to the publication of this advert- 
isement and is not acting for any other 
persons and will not be responsible to 
such persons for providing protections 
afforded to customers of Samuel Montagu 
& Co. Limited or advising them as to any 
matter referred to herein. 

Address for receipt of applications 

Applications should be addressed 
to Mr T J Griffiths, Head of Purchasing 
and Contracts, British Coal Corporation. 
Supply and Contracts Department, Fence. 
Woodhouse Mill. Sheffield Road, Sheffield 
S13 9ZA; telephone: (0742) 54 It 00; 
facsimile: (0742) 54 1276. 


BritisH 

COAL 


PUBLIC NOTICES 


NOTICE PUBLISHED BY THE SECRETARY OF STATE UNDER SUBSECTION 10(7) OF THE 
TEUCOMBIUNICATIONS ACT 1984 

Licence* to run telecommunication systems under section 7 of tte Telecommunications Act 1984 granted to 
Sprtat Holding (UK) Limited. WORLDCOM INTERNATIONAL INC aod NORWEB pic. 
t. The Secretary ot Stale hereby gives notice: 

(a) that he has duty reconsidered the proposals in respect of which he pubOshed notices on 

20 August and 5 November 1993 under subsections 8(5) and 10(6) oi IheTetecommimlcatlons Act 
1984 (The Act*) regarding Ms tnlentfcn to grant licences under the Act to Sprint Holding (UK) limited 
("Sprint") and WORLDCOM INTERNATIONAL, INC CWorWCom") and NORWEB pic fNorweb") to run 
telecommunication systems throughout the United Kingdom; 

(b) that he has granted such licences ("the Licences") to Sprint. WortdCom and Norweb (together 
referred lo as The Licensees"), being licences which Include condBiocs such that section 8 ol the Ad 
applies to them, thereby making the Licensees eligible to have the tdeotummunlmrioos code 
contained In Schedule 2 lo the Act applied to them under section 10 of the Act; 

(c) that he has applied the telecommunications code (The Code*) to Sprint and Norweb throughout 
Uie United Kingdom and to WorldCom In London and Its vtctntty (the area marked on the map 
attached as an Annex to WoridCtxn's Licence). The application oi the Code to the licensees Is subject 
to certain conditions and exceptions. The effect of these exceptions and conditions is that the 
licensees have duties: 

L to comply with various safety and environmental ctwafllions. in particular (with certain 
exceptions) to Install lines underground or only on such aboveground apparatus as Is 
already Installed for any purpose; 

H. to comply wrilh conditions designed to ensure efficiency and economy on the part of the 
Licensees. In connection with the execution of works on land concerning the Installation, 
maintenance, repair or alteration of their apparatus; 

111. to consul* certain public bodies before e xcrchtng particular powers under the Code, 
including the local planning and highway authorities and, where appropriate. EngUsh Nature, 
Scottish Natural Heritage, the Countryside Council lor Wales, the National Trust and the 
National Trust for Scotland, as well as relevant electricity suppliers; 

Iv. lo keep and make available records of the location of underground apparatus and copies 
oi the exceptions and conditions In the Licences to the powers under the Code: and 
v. to ensure that sufficient funds are available to meet certain liabilities arising from the 
execution of street works. 

2. The Secretary of State has applied the Code to the Licensees: 

(a) because the Licensees wlfl need the statutory powers tai the Code to install and maintain the 
telecommunication systems which are to be Installed and run under the Licences; 

(b) subject to the exceptions and conditions referred to above because they are considered requisite 
or expedient tor the purpose of securing that the physical environment is protected, that there is do 
greater damage to land than necessary, that the systems are installed as safely and economically as 
possible, and that the Licensees can me« (and relevant persons can enforce) (labilities arising from 
tbe execution of works. 

3. The Secretary of State has granted the Licences because be considers that they will help lo satisfy demands 
in the United Kingdom for tbe provision of services of the type authorised, will promote the Interests of 
consumers In respect of the quality and variety ol such services, and wffl maintain and promote effective 
comp eti tion between those engaged In the provision of telecommunication services. 

4. The Licences have been granted for a period of 25 yean fan the first instance and are subject to revocation 
by the Secretary of Slate on 30 days' notice in the circumstances specified to the Licences. 

5. Copies of the Licences may be obtained from the Office of Tdecottnpwdcattom (Library), 50 Lndgate nil, 
London EC4M 7JJ. price 512.00 (price 510.00 for WbridCom's Licence), postage and packing tree. 

Miss JM Knight, Department of Tirade and Industry 
6 May 1994 


RECEIVERSHIPS / LIQUIDATIONS 


PINK PAGES b the weekly guide to 
every Insolvent company. The most 
comprehensive guide avaiaUe it b a 
proven source of busbess lor those 
working in tbe Insolvency 
marketplace. Fully indexed and 
guaranteed PINK PAGES otters direct 
contact with Liquidators & 
Receivers, tells your Company 
Activity and Location, aad offers 
Financial summaries for every 
company, looking for a buyer. Can 
you afford not to know about EVERY 
insolvency opportunity EVERY week? 


SOFTWARE PRODUCT 

Division of international company 
wishes to dispose of IPR. easterner base 
sad coat seta of 

IBM information retrieval product. 
Mamfixme-ASMOO-PCUnks. 

Contact CM A, Pilgrim House. Canale 
Road, Southampton SO 14 3F3. Tel: 
0703 334634 Fax: 0703 333044 for 
more deads 

IT ACQUISITIONS SPECIALISTS 


100+ LIVE 

Businesses for sale 
and sales of assets 
fortnightly 

071 2621164 
Fax: 071 7063464 



LEGAL NOTICES 


JUJHRSGATE BBWOOPMKNrs UMITE 
DtKBDnalMH 

NMtal tmn NpmMvm 

UlUbwIM 

n«t Dl pnm hgfrHt W 

OuMritek 

n Hcoora MDNnjoooat 

faCaMV ■*■*«. eunUH *durn 
HtOfrhwlUnWiKIvMj 


personal 

PUBLIC SPEAMNG TraHng end apMeh- 
writing By sward winning epoakw. Rrat 
lesaen ten-Tat 10727) aet 133 


WATSON A NBFflOL LUTED 
AND 

WAHBAREV (STRATFORD) 


Kin counts foods looted 


Note to fenahy rim weal to Mm J lef 
The leechnney jEt wee twl n i Si ga ell* 
canton d Be tea* earned cwiparia»W be 
MUri7Xanit*Pto», inadflaWmSFfonSfc 

S UM at t 1 J» m rod tt* neon nape* 
tor We ompMH pmfdMl hr In An teflen 

A te mmm wd item 

Cenpaniw Croton can ba taapaetod to > 
etunmCna 1 ' 

KankA Piero, I 

bow* cf 10J» an aid 4JOO pm or 
earn dBapwredtagteMiemMef ( 

MadHeMfefim* 

PA BEHOLDS, P ' 


mAim om be tameetod B a>M 

aw aid 400 dm ante Metros 


Nona 6 Hdttr Onto OWN » Sain ea a fc 
todrocrilfl ML 

SSS5S BBncw^ iSSSoSii»Mii5S 

■MerDHr.RHiimi'imai.hmlRb 

OgmuKiTO iwWiiBvMt 
W tetemda—jew c . nabw 

DTOifcaBArdJpItM 

ii*caeA»Niuoooa 


Appear In the 
Financial Times on 
Tuesdays, Fridays 
and Saturdays. 

For further information or 
to advertise in this 
section please contact 

Kart Loynton on 
071 873 4780 
or 

Melanie Miles 
071 873 3308 



Manufacturer 
of plastic containers 

for the packaging industry 

The joint Administrative Receivers, CJ Hill 
and T Frid offer for sale the business 
and assets of A &R Leipak Limited, 
m Unique facility for producing plastic 

cans 

m Potential food and non-food use 
m Requires development investment to 
take proven product to the marketplace 
a Automated hi-tech production line 
(up to 300 cans/minuie) 
m Operates from leased premises of 
SOuOOO sq.ft in Brandon. Suffolk 

For further details please contact Cl Hitt Esq, 
Ernst & Young, Compass House, BO Newmarket 
Road Cambridge. CB5 8DZ. Tel: (0223 ) 461200. 
Fax: (0223) 324609. 

=U Ernst&Young 

AnOMriMtf bf has tettef* atamureeAaxstMtMa la EmfkKl 
jmMhdns nr cany on fmwfmiw! Bustoes*. 


CAPE AND DALGLEISH 

CHARTERED ACCOUNTANTS 

BISHOP Pfl a EFREEZWG SERVICES LIMITED (IN ADMBf 1STRATIO N) 

GCA MORPHITIS AND F F A WESSELY THE JOINT 
ADMIN! STORS OFFER FOR SALE THE BUSINESS AND ASSETS 
OF AN ENGINEERING COMPANY BASED IN LONDON SE10. 

* Market leader in the commercial pipefreezing industry 

* Large blue chip customer base 

* Provisional orders of £150,000 

* Turnover fertile year prior to Administration £812,000 

* Enquiries to be submitted by 13 May 1994 to the Joint 
Administrators 


401 ST JOHN S T REE T, LONDON EC1 V 4LH 
TEL: 071-873 2333 FAX: 071-637 7347 


SOUTHERN ENGLAND/SOUTH COAST 
For Sale 

Powder Coating Company 

Rare opportunity to acquire profitable-business. 
Tumover£350k per annum. For details please reply to: 

Box B2802, Financial Times, 

One Southwark Bridge, London SE1 9HL 


LEGAL NOTICES 


UNn~ ED ST A TES K ANKBXIin'CY COUCT 
FOR THE DISTRICT OF NEW JERSEY 


Nou 93-2004 (NLWJ 


fare: 

MUTUAL BENEFIT OVERSEAS, INC, 

PebUWi i '■ 

NOTICE OF (A) ORDER CONFIRMING HLAN OF REORGANIZATION, 
CB) DISCHARGE OF DEBTOR. (O CONSUMMATION OF THE PLAN, 
AND CD) PROCEDURES FOR SUBMISSION OF OLD BONDS FOR 
OBTAINING DISTRIBUTIONS UNDER THE FLAN 
TO ALL CRKDITOSS. BONDHOLDERS AND OTHER PARTIES IN INTEREST: 

NOTICE IS HEREBY GIVEN that, on April 14. 1994 (the "GxrtraMtkm Dwe“). the 
B*nkiB{XCjr Own Cor the Dfeotcc at New ieney emend mi order (the "Caafintwloa Order") 
ranfl nnipg die Second Amended John Pin of Rerxrameaiiaa Pi na m ed By Mittal Benefit 
Overmens, Inc. end ike Official Qnhai' Committee, flind Marti] 15 , 1994 (me "PtanT. 

PLEASE TAKE FURTHER NOTICE daLpunmat to the CoafirmMion Order aod venom 
H4l(d)| Band 324rflitfcM.UmlolSa« m Code. rtwqwfinnMino of the FtahytfwConfinnmicn 
Order resulDod io tfcc fudav of Mumal Benefit Ovcrm, fnc. (the UebtorT from all rfeta «Pm 
atnac before ifac dale of nidi coefitm ari on- Accoidurij'y. tbccornrn ewrmoiU orconlinuialon of my 
action, ibo etnpkmncu of pram, or any other act 10 coOeti. recover, er ofht* any ddx of eaher 
the Debtor, as a uroaUiiy of the Debut; or the reorganized Debtor or Emm or axaiiM Bnyproperry 
of the Debtor or the me^tued Dehor, other than d* 13 Ire and prosccmion ofa proof orcMm or 
lepaea for admiiiisrativr execute payment to pwbopBlc in rile tfifttfrutim provided fo 
rwiffidinwria enjoined. 1 




pro n dod far under tbe 
or not a proof of claim m filed or deemed 
or nor the holder of ndictann accepted the 
L J or judgment. B qn td mcd. on tii p iidwe d. 


Phn. and whether or not die right m . 

nxnd,cooro«n. manned, itmajaniteddiKWCrd. imdbpuaxL legal. Equitable. cecWTd or inweeared. 
WJASETA KEPUItT raERNOTlCT thar.cn April 27. 1994 [the "Effective Date"), the Wan 

iSmOTW^EFURXHER NOTICE that, prou » the Confirmation Order, bolder* a f 
booth (InchK&ng 9-318% Staking Food Bonds due February 1, 1 996; 9-tttt Slaking Hud Booth 
due February I, lWX: riiZrroCwpooBowdutie February 1. 2006. (ihc -Bond." and "Bonclhold- 
ert"iraeanieiy .1) wflf be required rosoborf! thdr Bonds to MbnneMMknd Bank l ihe-Dotrflmtion 
AnaX") together widudedr scented and completed letter of canmnioal (the "Tywmnitlal Lem^) 
waidi ii ximMa horn teDwMbtdlon Ami, m order 10 recti vr Uxar diatjllxaiom onder dm Plan. 

PLEASE TAKE FURTHER NOTICE dro the Dbrrflmliao Agent will dtaabuteTcuuiiiliiiil 
Leaen 10 ic^iArol hoUmofBondr. AU Bootinidcn who hold their Bond* In bearer form or ny 
other party m Intcresr who widu to motive a Tia wmirta l Letter nmn rcaoctt not tram the 
^roifa^o^enr by centarti Bg Vivian Gcotgea. by telephone m (2l2)6M>fai j. or iMattofle a 

PLEASE TAKE FURTHER NOTICE drat. pnntBBX to the CotdinoMkw Older, at of the 
BHhctive Date, the rco r yinijgd Debtor wilt be know a» MBO Propertiea. Inc. 

CEU MMY . PBLDBO, DOLAN. WEIL. GOTSHAL ft MANGES 

WtrOBAVBOaiKIRS Spectal Coanacl Cor Debror, 

Cntmari far OfBt-lal Debcor-lo^pooeetslon and 

Cn ed top eo * Co —Bjne e tfaeOCfctodOtiaton^C maaibwr 

A ProJewlonoI Corporation 787 With Arenac 

One Bwrfronl Pinza New York, New Torfc 10153 

®&r°° . 

0104779) 

SBANLET A HSHEtt. P.C. 

CcmnH ior Debtor and 


131 Madboo Arcane 

Mnfrtaorm, NJ. 07962-1979 
Tl) 285-1000 
109W 


Notice 

Babets Limited 

(Formerly Carroll Radford Holder Limbed) 

(Registered Number 506178) 

On 13 Mmrch 1991, tbe Society of Lloyd’s 
crystallised its charge over the Insurance 
Transaction Assets of Babels Limited and L, 
Raymond Thomas Tomer FCA, a Licensed 
Insolvency Practitioner and Partner in Neville 
Russell, was appointed by the Society of Lloyd's 
as Receiver of these Assets. 

Any party who considers tbat it is owed 
insurance monies by Babets Limited, who 
has not already notified me, is required to 
notify me with details on or before 
Friday 27 May 1994. Failure to make such 
notification may result in exclusion from 
any distribution to insurance creditors. 

Please write to: 

Raymond T. T timer FCA 
NEVILLE RUSSELL 


246 Bishops g&ic, London EC2M 4PB 

If you love my queries please contact Mr S Dolphin 
TeL 0245 287162 or Fix: 0245 344387 

North Raaadl if ■ anabo at Neti* haotianti, 

a <md4wUE Btamdc of Bl^rolbai aeeeulas h*™ 


C i |4»n « nwyat hr «»ta. hw d 

it» C iw \in * m e » » 4 0»4n :Wn i t w ^ iMie M£ 


FINANCIAL TIMES 

lUmt MMKlVk HWHIH 


AU Advertisers* bookings «e accepted subject id our ament Teaas and 
Coufitioas, copies erf ududh are available by writing to 
The Advcitis minnl Production DiredOe. 

He Financial Tnncs. 

Oik Sootfawark Bridge, Loodoo SE1 9HL 
TW: 071 873 3223 Fas 071 873 3064 


IN THE MATTER OF 
THE 

REHABHJTAXION 
OF MUTUAL 
BENEFIT LIFE 
INSURANCE 
COMPANY 

a Mutual 

Insurance Company 
of 

New Jersey. 


SUPERIOR COURT 
OF NEW JERSEY 
CHANCERY 
DIVISION, MERCER 
COUNTY GENERAL 
EQUITY PART 
DOCKET NO. 
C-91-00I09 
CiYif Action 
ORDER TO SHOW 
CAUSE WHY AN 
ORDER SHOULD 
NOT BE ENTERED 
AUTHORIZING AND 
APPROVING 
PROPOSED 
TRANSACTIONS IN 
CONNECTION 

WITH A SALE OF 
COMMON STOCK 
OF ERNST HOME 
CENTER, INC. 


THIS MATTER having come before the Court 
upon the application of Andrew J. Karpinski, New 
Jersey Commissioner of Insurance and Rehabilitator 
of Mutal Benefit Life Insurance Company (the 
"Rehabilitator"), through his attorneys Deborah T. 
Portiz, Attorney General of New Jersey, (by Sharon 
M. Halianan, DAG) and Special Counsel to the 
Rehabilitator, Cole, Schotz, Meisel, Forman & 
Leonard, PA. and Cadwalader, Wickersham & Taft for 
entry of an Order to Show Cause Why An Order 
Should Not Be Entered Authorizing and Approving 
Proposed Transactions In Connection With A Sale of 
Common Stock of Ernst Home Center, Inc.; and the 
Rehabilitator having requested a hearing date for 
approval of the transactions and related relief; and the 
Court having read and considered the annexed 
Certification of Peter A Martosella, Jr. dated April 29, 
1994; and it appearing that it is in the best interest of 
MBL's estate to schedule a hearing date on tbe 
application: and the Court finding that entry of the 
Order to Show Cause is warranted, and for good cause 
shown. 

It is on this 2nd day of May, 1994, 

ORDERED AS FOLLOWS: 

(1) AU parties on the annexed Schedule A and any 
other parties in interest wherever located shall show 
cause before the Honorable Philip S. Carchman, PJ. 
Ch., Superior Court of New Jersey, Chancery Division- 
Mercer County, 210 South Broad Street, 5th Floor, 
Trenton, New Jersey 08625 on May 24, 1994 at 130 
pm in the forenoon or as soon thereafter as counsel 
may be heard why an Order should not be entered: 

(a) approving the initial public offering of newly 
issued common stock of Ernst Home Center, Inc. and 
other transactions contemplated thereby: 

(b) authorizing such other and further relief is the 
Court may deem necessary and proper. 

(2) Any person or entity seeking to respond to this 
Order to Show Cause by filing answering 
certifications or affidavits and briefs with this Court 
shall do so no later than May 16, 1994. Such 
answering papers shall be filed directly with the 
Honorable Philip S. Carchman, P.J. CN., Superior 
Court - Mercer County, 210 South Broad Street, 5th 
Floor, CN 977, Trenton, New Jersey 08625, 
accompanied by a filing fee to the Clerk of the 
Superior Court in the amount of $80. Any person may 
file a verified application to the Court pursuant to R- 
1:13-2 to seek a waiver of the court filing fee by 
reason of poverty. Responding papers on behalf of any 
corporation should be filed by a New Jersey attorney, 
but motions for appearances pro hac vice may be 
entertained under R. 1:21-2; 

(3) All answering papers filed pursuant to paragraph 
(2) above shall be simultaneously served upon counsel 
for the Rehabilitator by delivering gne set of papers to 
Sharon M. Halianan, Richard J Hughes Justice 
Complex, CN 117, Trenton, New Jersey 08625, one 
set of papers to Gregory M. Petrick, Esq., Cadwalader, 
Wickersham & Taft, 100 Maiden Lane, New York, 
New York 10038 and one set of papers lo Gerald H. 
Gline, Cole, Schotz, Meisel, Forman & Leonard, PA,. 
25 Main Street, Hackensack, New Jersey 07601. Any 
person seeking access to responses made by others 
should contact Francis Pisano, Legal Assistant, at 
(201) 489-3000, who will make the papers filed 
available for inspection at Cole, Schotz's offices: 

(4) The Rehabilitator shall reply to the answering 
papers received by him no later than May 20th, 1994, 
and shall serve that reply upon all counsel or persons 
who responded pursuant to paragraph (2); 

(5) On or before May 6, 1994, the Rehabilitator shall 
serve a copy of this Order together with the supporting 
Affidavit, by first class mail to all parties listed on 
Schedule A, and shall publish a copy of the Order to 
Show Cause in Hg Wall StTCfit Iffiffimal, Xk£ 

York Times. Newark Star Ledger. The Cornier 
Post The Times of Trenton, and Financial Times. 
such publication to be arranged by Special Counsel to 
the Rehabilitator; 

(6) Any person failing to raise timely objections to 
this Order to Show Cause shall be forever barred from 
raising such objections and that in the absence of such 
objections, the Court may grant the relief requested 
without further notice or hearing. 

Philip S, Carchman. PJ, Ch. 









12 


FINANCIAL TIMES FRIDAY MAY 6 1994 


TECHNOLOGY 


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n May 20, a rather 
unnsual chess 
player will line up 
in' a Xi«n in Munich 
alongside professionals such as 
Garry Kasparov and Nigel 
Short Beside five more of the 
world's top chess players and 
pjgM Tinman qualifiers wQl be 
a computer. 

“It won't win, but it won’t 
come- last either,” says Fred 
Friedel about the FriteS chess 
program developed by his 
Munich-based company, Chess- 
base. As the third generation 
of an already successful pro- 
gram, it is now being adapted 
to run on a personal computer 
using an Intel Pentium chip 
running at 100MHz - a con- 
tender for the most powerful 
available PC. 

Its presence is partly 
explained by the fact that Intel, 
as a sponsor of the Profes- 
sional Chess Association - the 
breakaway group formed last 
year to which Kasparov, Short 
and a number of other profes- 
sionals how belong - is keen to 
straw off its processor running 
the software. Bat Fritz3 is also 
there on merit in ‘'blitz" chess, 
where each player has 25 min- 
utes to play all his moves, its 
ranking pots it easily among 
the world's top 20 players. 

The increasing power of com- 
puters means it might not be 
long before the world cham- 
pion in some of the west’s best- 
known games, such as chess 
and draughts, is made of sili- 
con rather than flesh and 
blood. “All the p ro g ra ms are 
better than 99.99 per emit of 
chess players,” says Malcolm 
Fein, publisher of Chess maga- 
zine and a grandmaster. 
“They're just having trouble 
with the last 0.01 per cent. 
There’s about 1,000 of us out 



Changes across the board; chess c ha mpions such as Gany Kasparov (left) and Mgel Short wfll In cre asi n g ly be c hal anged by computers 


there who are better than 
them." 

Computers are already cen- 
tral to chess professionals' 
lives: they are used to study 
openings, to record games, to 
confirm analysis of complex 
positions and to provide a 
huge, cross-referenced data- 
base of past games as a doe to 
opponents’ strategies. And the 
sponsorship of Intel of the US. 
the world’s leading computer 
chip maker, is recognition that 
after a couple of thousand 
years chess has become big 
business. This fact was driven 
home by last year’s live TV 
coverage in the UK of the 
PCA’s world championship. 

“According to the research, 
60 per cent of all adults 
watched at least one of the pro- 
grammes.” says Andrew Finan 
of the sponsorship company 
Sports Bureau International 
“That blew away all the think- 
ing that it was a niche mar- 
ket” The more detailed prefile 
found that most watchers were 


AfiCl (demographics for 
“well-off middle-class") and 
aged between 16 and 44. "It is 
an advertiser’s dream market,” 
says Finan. “And . it’s also 
Intel’s core market” As the 
biggest chip maker in the 
world, Intel is now spending 
more than Jim (£600.000) over 
each of the next five years to 
have its name associated with 
tho game. 

Sales of chess programs are 
worth millions each year, 
every games software house 
fcna uiE that having one in the 
catalogue is a necessity. The 
market splits quite equally 
between players aged from 40 
upwards, and those aged about 
20 . 

Chess programs have actu- 
ally been around fangwr than 
computers. The first was writ- 
ten in the 1940s by the mathe- 
matical genius Alan Turing, 
who helped crack the German 
Rnigmn code. He realised that- 
riprifling between moves could 
be reduced to a formal process: 


by trying each move, and each 

rarap? nation of moves foll ow- 
ing that, and than evaluating 
the position after those moves 
(by allotting some numerical 
value to each - say, 4-1 point 
for capturing a pawn, +5 for 
capturing a rook, +1,000 for 
checkmate), you could choose 
between them. Assign the cor- 
rect values, and you would 
have an unbeatable p m gr am. 

T uring’s first efforts were 
laboriously manual, 
■wring pgnriT and paper. 
But when the first computers 
were developed, some of the 
first non-serious applications 
were chess programs. In the 
1970s, a master player, David 
Levy, set a series of challenge 
bets tfart he eraiM beat the best 
machine versions. He won. 
befo r e retiring in 1983. 

The programs’ weakness 
remains their strictly mathe- 
matical approach, say those 
who beat them. “People have 
intuition, and the knowledge 


and plans for hundreds or 
thousands of positions,” says 
Pein. “They have a much 
keener knowledge of when to 
give up material for a posi- 
tional advantage. And when 
the position is dosed, with lit- 
tle chance for tactics, humans 
are better at manoeuvring so 
that when, it does open up, 
they will be at an ad v ant a ge.” 

Not many humans will be, 
though- By the official Elo 
chess rating - awarded to play- 
ers on their record, such aa the 
quality of the players they beat 
- today’s programs, such as 
Fritz. Chess Genius or Kaspa- 
rov’s Gambit are better than 
almost everyone in the world, 
even in standard tournament 
play whore players get two or 
more hours for the first 40 
moves, the 6m or so chib play- 
ers worldwide have Elo ratings 
between 1,200 and 1,900; mas- 
ters, from 1,70 0 to 2400; the 
1440 international masters, 
from 2400 to 2,450. The 465 
gr andmas ters rank from 2,400 



O 


o 


You want a meeting for how many people? 

^ 

Conferences. Conventions. Sales meetings. Spain can accommodate all manner of business 
gatherings • -The organizational flair that played host to the world at the Barcelona Olympics, 
Expo’92 in Seville and- in Madrid as European Capital of Culture, is ready and waiting. 
As is a network of .hotels boasting -all the latest conference facilities and communication 
technology * And Spain, has one or two other business incentives • A pleasant all year climate. 
A menu of gastronomic delights. And a wine cellar the envy of Europe • Plus some of the finest 
museums and. galleries in the world. And things with a peculiarly Spanish flavour. Like 
the neighbourhood fiesta • In Spain, the bottom line is always the same • A conviction 
that work and leisure aren't mutually exclusive. ^ 





Passion 

for life 


upwards; Kasparov, at just 
above 2,800, is officially the 
best player ever. Fritz2 is 
ranked at about Elo 2400, and 
Pein expects to see a program 
ranked Elo 2400 soon. 

For would-be writers of chess 
programs, there are four 
attractive factors, says Friedel: 
“It’s competitive - you can 
evaluate claims of whose pro- 
gram Is better simply by 
playing them against each 
other, which you can’t with, 
say, word processing programs. 
And there's a lot of literature 
to guide you; chess openings 
and endgames have been stud- 
ied for centuries. It’s commer- 
cially viable: you can sell what 
you make. And it's a hard 
problem to solve - but not too 
hard. I wouldn’t touch go, far 
example." 

Go, an eastern game 
invented 4.000 years ago, mak- 
ing it about twice as old as 
chess, is played on a 19 by 19 
grid, on which the players 
alternately place black and 
white counters (called stones) 
to try to surround empty terri- 
tory. It bas only nine rules, 
fewer than c hess, but that very 
simplicity, coupled with the 
fixe of the board, Tnaans that at 
every stage there can be a cou- 
ple of hrrmiwvf different moves 
to choose from. 

In draughts the problem is 
simpler, since only half as 
many squares are used. In 
1992, a progra m called Chinook 
- officially the world's sec- 
ond-best player - challenged 
Marian Tinsley, the world 
champion since 1954. After 38 
games, Tinsley won 4-2. But 
Chinook’s developer is now 
wo rking on an even better ver- 
sion. 

IFs analysing from the end- 
game backwards, and from the 
opening forwards," says Frie- 
del, who keeps in touch with 
such developments. “It’s about 
six moves away from linking 
up the two pnfls Anfl then that 
will be that It will be like 
playing God. You may draw, 
but you will never win.” Ihe 
program wOl simply never let 
itself be drawn into a losing 
thread of play; it will, in effect 
have a map of the entire game. 
When Tinsley makes the tini- 
est error he wfll lose his title. 

Could file same ever happen 
to chess? Kasparov is as dis- 
missive of computers as he is 
of many of his human rivals. 
In October 1989, he played and 
twice defeated Deep Thought a 
customised IBM workstation 
r unning a chess program; it 
was the first computer to 
achieve grandmaster status. 
Asked what improvements 
they should make, its program- 
mers were told: “Teach it to 
resign earlier.” 

Undaunted, the team is 
developing the successor. Deep 
Blue, which wfll contain Deep 
Thought shrunk on to a single 
chip. 

So is Kasparov’s crown 
really at risk from a machine? 
“Probably not," says Friedel 
This is the fascination for me.” 



As a computer prepares to play the world’s top chess players, Charles Arthur assesses its chances 

Checkmate by silicon chip 



On the air, 
digitally speaking 

A programme on working 
at home ought to be made 
at home, mites Ckure 
Gooding. 

So reasoned Peter Day, 

presenter of BBC Radio 

Four’s In Business, and his 
editor Stephen Chilcott. A 
trailbreaking UK 
programme, to be broadcast 
on Sunday, has been put 
together at Day’s home In 
north London, wired by BT 
with a high-quality ISDN line 
far voice nT> fl computer data. 

Intel installed an Apricot 
Zen-PCm multimedia 
workstation with Intel 
ProShare videoconferencing 
products. 

Day's interview with Intel 
head Andrew Grove (In 
Seattle) was carried out via 
(he Video System 2000 from 

Intel, with a screen-mounted 
camera, allowing users to 
see each other on the PC 
screen. Chilcott edited with 
a British product, the Sadie 
real-time andiodisk editor, 
which reproduces a 
mixing-desk ou screen, 
replacing tape recorders with 
a PC and mouse. 

Sadie sells professional 
digital editing solutions in 
competition with US and 
Japanese vendors. Sadie 
broadcasters can work at 
home - or at a desk 
anywhere - without 
compromising sound quality, 
producing full 24-bit digital 
audio away from a studio. 

Intel: UK. 0793 696000. BT 
ISDN Helpline: UK 0800 ISl 
514. Sadie : UK 0353 64S8SS. 


Putting clamps 
on the copycats 

A Danish inventor has 
developed a system to 
provide a foolproof safeguard 
against the copying of 
software pro g r a ms and the 
development of computer 
viruses. It wfll also supervise 
networks and prevent 
accidental, as well as 
deliberate, copying, writes 
Hilary Bonnes. 

Hans Jessen says his 
discovery will mean that 
copying wfll become 
impossible and businesses 
will be able to prove in court 
that software has been 
tampered with. “My 
invention will give the 
software producer effective 
protection technically and 
legally of the copyright" 

The Danish Innovation 
Centre, part of the Danish 
Technological Institute, is 
assisting Jessen to find 
licensees for his invention. 


Danish Innovation: 
Denmark. 43 504S7Q. 


Machine tools 
measure up 

A control system taking Into 
account factors influeuclng 
machine tool performance 
to achieve optimum cutting 
conditions has been 
developed by Omat of 
Jerusalem, Anna Koc/tan 
reports. 

Tests with prototypes show 
savings of up to 40 per cent 
can be achieved on 
machining times and costs, 
with tool breakage almost 
eliminated. Designed to work 
with any type of numerical 
controller, the Opti-Mll 
system for mi lli ng 
applications includes 
software that determines fin 
best cutting conditions from 
data about the machine. Its 
operational cost, the cutting 
tool and its material cost, 
tool changeover time and 
machine tool depredation. 

Sensors measure the load 
on the tool and modify the 
speed and rate of work. Omat 
will develop systems for 
turning and drilling, as weil 
as for wood and plastics. 

Omat- Israel 9722 438111. 


Faxes on 
the move 

Busy people computing on 
the move can now send the 
results by fax. Psion of the 
UK has launched 3Fax to 
plug into its Series 3a pocket 
computer. It says the device 
- half the size of the 3a 
palmtop - gives access to 
E-mail and on-line services 
as well as sending faxes with 
logos and signatures. 

Faxes can be created in 
advance and sent, queued 
or deferred for sending at 
different times when the user 
reaches a socket “There's 
no difficult software to get 
your head around,” says 
Psion director Peter Norman. 

The 3Fax can pull 
information from the 
database for faxing and send 
to any number in the 
computerised address list 
Price £199.95 

Psion: LHC 071 263 5580. 


The political 
stock market 

You can trade la most 
things, but few would think 
of election candidates. York 
University, however, plans 
to use the trading instinct 
to attempt accurate 
predictions of UK elections. 

It is buying computer 
equipment for a pilot study 
of the “political stock 
market” method successfully 
pioneered by the University 
of Iowa in the US. 
Participants buy shares in 
candidates; these are traded 
on the computerised market, 
the prices indicating the 
vote's outcome. 

York University: UK 0904 
4337S6 


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ARTS 


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T he RSC is now giving 
John Barton’s produc- 
tion of Peer Gynt, in 
Stratford’s intimate 
Swan Theatre, only two 
months after it co-presented Yukio 
Ninagawa's tonring production in 
the great big Barbican auditorium. 
Ninagawa's involved a vast metal 
box set, painted two-dimensional 
scenery, and film projections; Bar- 
ton's has no real scenery at all. Just 
props. Each catches different facets 
of Ibsen’s vision. Watching Barton's 
(which he first created for Oslo’s 
National Theatre), I sometimes 
missed the colour, energy, and epic 
sprawl of Ninagawa’s version, and 
its tremendous central performance 
by young Michael Sheen. But Nina- 
gawa kept gilding Ibsen's onion 
with fancy layers of his own, 
whereas Barton simply peels it and 
reveals its layers to us. 

A certain amount of editorial 
rearrangement is involved. Barton 
(adapting C -Fry’s version, with lyr- 
ics by Adrian Mitchell) has homed 
in on the beautiful choral hues near 
the end (“We are thoughts. You 
-chnffl l d have thought us_.”), nTif ^ he 
adds a prologue of Peer's birth (cho- 
rus: “We are the thoughts you must 
think... *7, and an epilogue (Peer: T 
am the thoughts I made myself 
shun . . The g ra phngte Is all 031 
Peer’s inner quest, and some periph- 
eral characters are wholly or partly 
cut The Nordic fannfofe are here 
Irish (as in Ninagawa's); and some 
of the minor trolls are Soots. 

Ibsen's large dramatis personae 
are enacted by just U actors (plus 
four musicians). The most impor- 
tant stroke lies in casting the «»mA 
actress - the fine Haydn Gwynne - 
as both Peer's mother Aase and as 
his wife Solveig. Though Gwynne 
distinguishes between the wary did 
Aase and the tru sting young Sat 
veig, she reveals how Uke they are 
in their love for Peer; bow Aase’s 
mother-love is in fact the prepara- 
tion for Solveig’s wife-love. Ibsen 
was often ahead of Freud. 

The resting of Alfred Burke as 
both Solveig’s father and the But- 
ton-Moulder pays equal dividends. 
The two roles, often unaHke, here 
find many connections, especially 
since Barton has also found a here- 
tofore unstaged scene in Ibsen's 
manuscript for Solveig, her father, 
and Peer. 

A role like Peer is just what the 
marvellously assured and anriahla 
Alex Jennings needed to lever him- 
self out of foe rut of harshly debo- 
nair young toffs he keeps playing. 
Alas, he fails right back into it in 
Act Four, where he hardly hints at 
the young peasant beneath the 
sophisticated veneer Peer dons as 
Sir Peer, then Emperor of Bedlam. 
Yet in the first three acts he is 
splendid at Peer's blarney; his voice 
is softer here, and his face, with its 
little Petrushka nose and its gaping 
mouth, looks like a pumpkin. 
Jennings's authority is never in 



AtanJrMkdr 


Spiritual journey: Alex Jennings as Peer Gynt in John Barton's new production at the RSC 

Theatre / Alastair Macaulay 

Peer’s inner quest 


doubt, and he makes it increasingly 
dear that the play is his spiritual 
journey. There are, admittedly, sev- 
eral more layers of the onion for 
him to reveal. In Act Five he ages 
less than any Peer I have ever seen, 
and yet does little to hint at the 
peasant he was once; be even drops 
almost any hint erf the Irish accent 
he mastered so well for the youthful 
scenes. Nor does he always per- 
suade us that young. Peer believes 
in aUTus own play-acting and story- 
telling. But this is the most tender 


and the most imaginative perfor- 
mance Jenning s has given US. 

The centre of the play, is dearly 
Its poetic visions. Peer's restless 
journeying reminds jrou of many 
others. It brings to mind not rally 
umpteen folk tales, but also the 
quests of Hamlet, Faust, Candida; 
as well as the Rake's progress. And 
I had never realised before how 
Peer's castles in the air pave the 
way for Ibsen's later piaster 
Builder. Peer Oynt, even when cut, 
is too vast for perfect comfort; I 


always become restless myself dur- 
ing Act Four. But what makes Bar- 
ton’s account of Peer Gynt so 
refreshing is its economy. Simple 
magic is achieved through little 
showers of snow, sand, soap-bub- 
bles, or stardust Peer may journey 
through the whole world, and yet it 
is as If he is just a boy losing him- 
self in a toy theatre. And it is at 
home that he must find himself. 

In repertory 'at the Swan/Strat- 
fdrd-upon-Avon 


Love’s Labour’s Lost 


A! 


s a director Ian Judge is 
good with lost boys. I 
remember a haunting Peter 
.Pm at the Shaw Festival 
in Canada, where the twilit gleam 
of Kensington loomed dream-like 
through the exdtement of Never 
Land, and the everyday reality of 
the nursery was glimpsed in forest 
and pirate lair. 

IBs updated Love's Labour’s Lost 
for the RSC, first seen at Stratford 
in October, has arrived at the Barbi- 
can and, placing the action in 
another Never Never hand, hints 
that these golden lads too belong to 
a doomed generation. 

The setting is late Edwardian 
Oxbridge. Distant spires dream; in a 
neighbouring quad Lord Fancourt 
Babberley is almost certainly imper- 
sonating his chinn Charley’s aunt 
from Brazil More immediately the 
King of Navarre and his earnest fel- 
low-students (as it were a Rupert 
Brooke reading party) make their 
rash vow to forswear such mundane 
pleasures as female company. 

The breaking of that vow and the 


blossoming of love are depicted 
gravely, in a production that takes 
the play more seriously thaw us ual . 
If the dramatic pulse seems initially 
sluggish, the idyllic mood is cumu- 
lative, and Judge brilliantly makes 
seise of that awkward conclusion 
when the happy ending is post- 
poned after death has suddenly cast 
its shadow over the high spirits. 

John Gunter's sets give us high- 
backed pub settles festooned with 
victorious oars and college photo- 
graphs. The page-boy Moth (Chris- 
topher Luscombe) is here a choral 
scholar; his master, Don Armado, 
would today be a TV pundit. A 
whiskery Daniel Massey blends 
Bernard Shaw with Lytton Strachey 
and makes a good case for Shake- 
speare's atrociously facetious word- 
play being the forerunner of Oxford 
linguistic philosophy. 

Berowne, part cynic, part roman- 
tic, is the most interesting of the 
m en If Jeremy Northam lacks the 
dazaiiwg ebullience with which 
Roger Rees skimmed the language 
on this stage some years ago, he has 


the intensity the production 
requires, a fit mate for Abigail 
McKern’s pointed Rosaline. Unexag- 
gerated comedy marks the amateur 
theatricals. The women have the 
grace not to join in the men's 
sneers; but start the laughter at one 
of the play's most touching 
moments, when haughty Don 
Armado confesses be has no shirt. 

Above all, the production tri- 
umphs in avoiding familiar traps: 
mummerset rustics (Costard is a 
smart young butcher’s lad; Jaque- 
netta does a final number in exotic 
plumes), and it speeds through the 
flowery verbosity inspired by the 
fashionable euphuisms. The wistful 
palm-court gaiety of Nigel Hess's 
score is countered by hints erf future 
shock with mock-Muscovite masqu- 
ers who look like Rasputin. The 
spires finally disappear from a 
bleak horizon that we know con- 
tains Paschendael and the Somme; 
and afternoons will never be so 
golden again. 

Martin Hoyle 


An exciting new 
season for 
Covent Garden 

Nicholas Payne, director of the 
Royal Opera, has put together an 
intriguing 1994-95 season at Covent 
Garden. Richard Eyre, of the 
National Theatre, directs his first 
opera. La traviata; Jonathan Miller 
returns to work in the UK with iris 
first Covent Garden production,' 
Com fan tutte; while Gilbert & Sul- 
livan also make their House debut 
in the new WNO production of The 
Yeomen of the Guard. 

There is also the first new British 
Ring of the 1990s, starting on Octo- 
ber IS with Das Rhemgold, with 
Richard Jones handling the stag- 
ing; the first Covent Garden pro- 
duction since 1930 of Gounod's 
Romka et Juliette; and the first ever 
performance at Covent Garden of 
Purcell's King Arthur. 

Throw in a Verdi season in the 
summer of 1995, with seven produc- 
tions, (two in concert performance) 
and including the first Garden 
playing of / due Foscari, and yon 
have an exciting programme. A.T. 


Tunnel vision 

Marina Benjamin looks at a photographic record 
of Britain’s last days as an island 


W hen the Queen and 
President Mitterrand 
officially open the 
Channel Tunnel today, 
the ceremony will also mark the 
culmination of an ambitious photo- 
graphic project recording the end of 
Britain's days as an island. 

The Cross Channel Photographic 
Mission, sponsored by South East 
Arts, is a rich, diverse, and bitter- 
sweet essay cm Britishness drawn 
from the sum of its parts, its his- 
tory, street-culture, landscapes, tra- 
ditions, and self-delusions. Work by 
a dozen photographers provides a 
portrait of a nation in Umbo, immo- 
bilised between the legacy of a 
heavily mythologised but fast-fad- 
ing imperial identity, and faced 
with the necessity of adapting to a 
new order. 

Hew Davies takes as his subject 
the British neo-colonists who have 
forsaken Albion for the greener pas- 
tures of Nord Pas de Calais - re- 
christened “south Kent”. Davies 
presents them not as Utopian 
dreamers chasing a Rousseauesque 
back-to-nature ideal, but as hard- 
nosed London yuppies and misfits, 
who, having conquered the lmmu 
counties territories, see France as 
the new frontier. Amidst anglicised 
pubs, fimmire ami gardens , the emi- 
grants have set up a home from 
home. 

The Royal Festival Han is show- 
ing three Cross Channel commis- 
sions muter the sub-heading Britan- 
nia. Karen Knorr’s allegorical 
Europhiliac tableaux, featuring 
androgynous figures in wigs and 
frock-coats, draw inspiration from 
the Enlightenmen t This was an age 
of cultural exchang e, of curiosity 
and exploration, a time when no 
gentleman’s education was com- 
plete without a European Grand 
Tour and when Samuel Johnson 


pronounced patriotism to be the 
last refuge of the scoundrel. Driving 
the point home, Knorr has titled her 
Imag es in En glish and French. 

Such bonhomie, however, was the 
privilege of a small band of channel- 
hopping intellectuals, who ignored 
the old enmities between the 
nations and prized liberty, equality 
and fraternity before these ideals 
were used to justify the guillotine. 

Leaving the tricky issue of 
Anglo-French relations aside, Peter 
Kennard and Paul Trevor choose to 



‘Welcome to Britain’ by 
Peter Kennard 

focus instead on London. Kennard's 
wittily-titled and hard-hitting instal- 
lation, “Welcome to Britain” depicts 
the bleak side of the metropolis 
encountered at Waterloo, our cross- 
Channel starting point. 

Working in collaboration with the 
poet Peter Beading, Kennard has 
constructed an edifice of our time 
from gaudy souvenirs and scav- 
enged urban flotsam, including 
wooden pallets and scraps of corru- 
gated card - the bricks and mortar 
of the homeless. Photographic 
images of forlorn faces, bands and 


street-signs can be discerned 
through its dust coating. The hands 
are particularly evocative: such 
eloquent symbols of authorship and 
manufacture, they are here trans- 
formed into the scratching, grasp- 
ing means of escape. What Kennard 
has effectively conjured up 
is the fright at the end of the 
TunneL 

Paul Trevor's equally gritty work 
tells a tale of two cities in one. 
Taking in the square mile occupied 
by the capital's money market and 
the street market at Brick Lane, he 
plays with the notion of neighbours 
remaining worlds apart Top cats 
and underdogs. By getting right up 
close yet remaining unobserved, 
Trevor has photographed the pass- 
ing faces of passing trade. In the 
City, there are clear complexions, 
confident jawlines, mobile phones, 
cigars, pin-strips, handshakes and 
designer sunglasses; in Brick Lane 
there are wrinkles, pimples and tat 
toos, second-hand clothes, cheap 
make-up, fag-ends and NHS specs. 
Life - delivered to us in its minu- 
tiae - is very different at the two 
poles of our market economy. And 
so, by implication, is the inner land- 
scape of the mind. 

Where symbols of Empire are 
depicted at all, they are represented 
as obsolete relics, part of the furni- 
ture of niwtotg in. Nonetheless many 
of the photographers seem prone to 
a spirit of regret, dwelling on what 
we stand to lose rather than what 
we might hope to gain: the “dust- 
man of Europe" looms large while 
any vision of a potential nouveau 
Britain is sadly absent. 

Karen Knorr, Paul Trevor and 
Peter Kennard at The Royal Festi- 
val Hall, until June 5, July 3 and 
from June II to July 10 respec- 
tively. 


Sponsorship/Antony Thomcroft 

Banks head new spending 


O ne of the major players 
in the extraordinary 
growth of aits sponsor- 
ship over the past decade 
retired last week: Geoff Shingles, 
who proved that sponsoring the arts 
could be good for business when, as 
chief executive of Digital, he per- 
suaded his board in 1985 to rescue 
Sadler’s Wells with a £]S0,b00 
investment. 

Shingles then put together Part- 
ners in Dance: dance was under- 
sponsored at the time and Digital 
could make a big impact with rela- 
tively little money. In the last nine 
years Digital has pumped £5.5m into 
the arts and reckons it has proved 
an excellent investment, gnawing 
the company to entertain its 5,000 
key customers, and more impor- 
tantly, potential customers. 

- Shingles later backed the 
National Theatre and the Tate and 
has given computer, systems to lead- 
ings arts companies, but in recent 
months Digital has been forced to 
cut its spending from.. £500,000 a 
year to nearer £350,000 and The Dig- 
ital Dance Awards were , axed: But 
in the autumn Digital will review 
its position and, if profits are up, 
will probahly raise -its budget 
★ 

Profits have already improved for 
many companies, especially banks, - 
which means that the 13 per cent 
fall in sponsorship last year could 
be quickly reversed. 

A few years ago NatWest was 
spending Elm a year; in 1993 it 
invested just £100,000, which basi- 
cally went towards a prize aimed at 
art school students. But this year 
NatWest is spending £350,000, and 
all the signs are that in 1995 its 


budget will have grown again. 

The likelihood is that NatWest 
will choose to stick with the visual 
arts. Next week the bank 
announces the winner of its 1994.. 
Art Prize. The winner receives 
£5,000 hut NatWest also buys some 
of the short listed entries to add to 
Its collection of contemporary art 

Apart from the- patronage (aind 
investment) benefits from bolster- 
ing the visual arts it is a sponsor- 
ship area which suddenly looks 
sadly neglected. Two of the biggest 
sponsorships, the Barclay’s Prize 
for graduates and BTs touring exhi-; 
bition. New Contemporaries, are 
coming to an aid. 

★ 

In the next few months 50 or so 
managers of small b usiness es in 
Birmingham, Bristol and Cardiff 
will be invited to see a Welsh 
National Opera production. Putting 
them on the guest list will be 
KPMG, the management consul- 
tancy group, which is mastermind- 
ing a networking service. ■ 

• The idea ls that' the businessmen' 
wiH so enjoy themselves that they 
will form a local syndicate to pro- 
vide funds, £1.000 each, or even less, 
to help finance the next WNO visit 
to their city, and in particular its 
community work there. 

This grass roots form of sponsor- 
ship is one of many initiatives 
anticipated from “Go Opera”, the 
new sponsorship package from 
KPMG. It is committing £550,000 
over three years, distributed 
between WNO, Scottish Opera, 
Opera North and English National 
Opera. The money will back core 
activities, like new productions, 
starting with WNO's first ever Gil- 


bert & Sullivan, The Yeoman of the 
Guard, this Christmas, and followed 
by Britten's A Midsummer Night’s 
Dream at the ENO in 1995. But it 
will also attempt to widen access to 
opera. 

At the WNO this will consist of 
creating community operas, work- 
shops, and subsidised tickets; at 
Opera ^North cut price tiefeefcr for 
first time opera goers, workshops, 
discounts for regular attenders, and 
a new production,' family tickets at 
Scottish Opera, plus a production; 
and help for the outreach Baylis 
programme through family days at 
ENO. 

★ 

West Merchant, London based sub- 
sidiary of two German banks, is the 
latest financial institution to use 
the arts to drum up business. It is 
investing £100,000 a year to promote 
the arts of Latin America in the UK. 

West Merchant specialises in 
offering potential investors advice 
on Latin America and is also keen 
to work for rich South Americans 
living in Europe: Its first project is 
this month’s Festival erf Bahia In 
London. It has contributed £33,300 
and- as a first time sponsor .has 
received a substantial Business 
Sponsorship Incentive Scheme back 
up award from the government. 

The final concert, at the Albert 
Hall on June L features four top 
RahfaTi singers and a samba hanH 
and will be used to entertain clients 
who earlier attended a business 
seminar. Without the concert it is 
doubtful there would have been 
such a healthy response. In the 
autumn West Merchant promotes 
contemporary Argentinian art at 
the MoMA, Oxford. 


INTERNATIONAL! 



TEH 




Dreyftis Centenary 

Exactly 100 years ago, Europe 
was swept by the Dreyfus affair. 
Alfred Dreyfus, a Jewish officer 
in the French army, was accused 
of spying tor Germany, tried 
before a hastBy convened mHftary 
court raid condemned to a 
lengthy prison sentence^ Despite 
evidence proving his innocence, 
a retrial four years later failed 
to dear Ms name. Thanks to a 
campaign by Me wife, friends 
and Influential supporters, he 
was eventually released end 
rmmwna 

The case cfivWed France and 
unleashed a tide of 
anti-Semitism, racism and 
nationafism - some of which 
finds an uncomfortable echo ht 
Europe today. The lessons of 
the Dreyfus affair are the subject 
of a eeries of centenary events, 
beginning this month In Berlin 
with a new opera written by 
Swiss composer Jost Meier to 
a libretto by British entrepreneur 

George Whyte. 

The opera fcs the result of 


several years of research by 
Whyte, who has fosplred two 
other works on the Dreyfus affair. 
They are a ballet with music by 
Alfred Schnittke and 
choreography by Valery Panov, 
to be premiered in Bonn in 
September, and a musical satire 
using songs of the period and 
texts by Emile Zola, who 
championed Dreyfus’ cause. The 
songs have been orchestrated 
by Luciano Berio and wifi be 
premiered by Ute Lemper En 
August The three works wiB be 
performed in Basle in October. 

The new opera, Dreyfus - The 
Affair, will receive Its world 
premiere on Sunday at Berlin's 
Deutsche Oper, with a cast 
heeded by Paul Frey. An 
exhibition of materia! related to 
the Dreyfus affair, including 
portraits, cartoons and 
caricatures of the period, can 
be seen In the theatre foyer, 
before it tours to other centres. 


■ EXHIBITIONS GUIDE 

AMSTERDAM 

RQksmuseuim Flowers and Rants: 
a varied survey of representations 
of flora and fauna In five centuries 
of prints and drawings, including 
the superb 17th century Tidip Book 
by Jacob Marrei and a selection 
of Japanese woodcuts. Ends July 
31. Closed Mon 

Van Gogh Museum Pierre Puvw 
de Chavarmes: 150 portraits, stHI 
fifes, genre pieces and sketches 
by tha 19th century artist whose 
murals grace many public buildings 
in Franca Ends May 29. Daily 
Stedeffik Museum Joan Jonas, 
Grand Old Lady of Performance: 


photographs, video tapes, pictures, 
films and objects. Ends July 17. 
Photogr a phs by choreographer 
Hans van Manen. Ends July 17. 
DaBy 

BARCELONA 

Museu Picasso The Russian 
Avant-Garde 1905-25. Ends June 
26. Closed Mon (Carrer Montcada 
15-19) 

BERLIN 

Museum fOr IncBsehe Kunst Lost 
Empire of the S3k Road: a 
remarkable collection of 87 
wen-preserved pieces of Buddhist 
art from the 10th to 13th centuries, 
buried at Khara Khoto under the 
sards of the Gobi Desert until they 
were discovered during 
archaeological research in 1908. 
Ends Jiriy 3. Closed Mon 
CHICAGO 

Art Institute John James Audubon: 
90 large-scale watercolours which 
the American naturalist artist used 
as the basis for his Birds of 
America print series. Ends July 
17. Da3y 
EDINBURGH 

National Gallery of Scotland 
Raphael: The Pursuit of Perfection. 
The exhibition examines the 
creative process of one of foe great 
masters of the KaHan Renaissance, 
aid is built around three 
masterpieces and surviving 
pre p aratory drawings. Ends Juty 
10. Daily 

Scottish National Gatiery of 
Modem Art Medardo Rosso 
(1858-1929): around 50 sculptures 

by the Italian who became famous 
as a master of Impressionism in 
sculpture. Ends Jraie 26. Daily 

FRANKFURT 

Deutsches Architekturmuseum 
Modem Architecture in Germany 


1900-1950: Expressionism and 
the Neue SachiichkeiL The 
exhibition, the second of three 
tracing developments in 20th 
century German architecture, 
focuses on the avant-garde 
architectural utopias of the interwar 
years. Ends July 3. Closed Mon 
GLASGOW 

Hunterian Art Gallery Duncan 
Shanks (51937): retrospective of 
one of the outstanding landscape 
painters working in Britain today. 
Ends June 25. Closed Sun 
LEIPZIG 

Museum der bitdenden KQnste 
Julius Schnorr von Carofsfekl: 
retrospective of the early 19th 
century German painter and 
illustrator who joined the Nazaranar 
in their decoration of the Casa 
Massimo in Rome. Ends May 23. 
Closed Mon 
LONDON 

Royal Academy of Arts Goya: 

100 small-scale paintings covering 
his entire career. Ends June 12. 
Daily (advance booking 071-396 
4555) 

Hayward Gallery Salvador Daft 
The Early Years. Ends May 30. 

Dally (advance booking 071-928 
8800) 

Victoria and Albert Museum A 
new Glass Galley has opened to 
display more than 6000 objects, 
illustrating the history and 
development of glass during the 
past four rnfflerta. Daily 
MADRID 

Centro de Arte Reina Sofia Lucten 
Freud: a collection of paintings, 
drawings and etchings celebrating 
the recent achievements of Britain's 
greatest living realist painter. Also 
Joseph Beuys (1921-86): 10 
Installations, 25 sculptures and 


456 drawings by the controversial 
Gorman artist Ends June 6. Closed 
Tubs 

Fundacion Juan March Isamu 
Noguchi (1904-88): 58 outdoor 
scriptures expressing the oriental 
and western culbxal traditions 
inherited by Noguchi, an American 
artist of Japanese origin. Ends June 
26. Daily 
MANTUA 

Palazzo Te Aksel Waldemar 
Joharmessen (1880-1922): the 
distinguished dtsdple of Munch 
was forgotten until recently. This 
is only the second exhibition of 
his works, and the first outside 
Scandinavia. Ends June 19. Closed 
Mon 

MARTTGNY 

Fondation Pierre Gfcanadda 
Auguste Rodin: 90 drawings and 
watercolours and 10 sedptures. 
Ends June 12. Defy 

MUNICH 

Akademie der schSnen KQnste 
The Russian Stage 1900-30: 190 
treasures from the Bachrushin 
Museum In Moscow, comprising 
theatre designs, figurines and 
models by Malevich, Lissftsky and 
others, dating from a time of 
extraordinary creativity in Russian 
art. Ends June 26. Closed Mon 
Lenbachhaus Between the BrQcke 
and the Blaus Reiter: Expressionist 
paintings from the Ahler CofieCtion. 
Ends May 23. Closed Mon 
NEW YORK 

Museum of Modem Art Frank 
Lloyd Wright architectural 
fragments, full-scale constructions, 
scale models aid 350 original 
drawings. Ends May 10. Feininger, 
Kandinsky and Klee: 75 prints and 
illustrated books produced by three 
of the Bauhaus artists. Ends May 


17. Closed Wed 

Metropofitan Museum of Art The 
Decorative Arts of Frank Lloyd 
WrighL Ends Sep 4. Petrus 
Christos: 22 paintings by the 15th 
century Netherlandish master. Ends 
July 31. Sidney Nolan's Ned Kelly 
Paintings. Ends Juty 17. Closed 
Men 

Guggenheim Museum Frank Lloyd 
Wright's Designs for the 
Guggenheim Museum. Ends May 
20. The main museum Is closed 
on Thurs, the SoHo site on Tues 
PARIS 

Grand Palais The Origins of 
I impress Ionian 1859-69. Ends Aug 
8. The Sun and the Northern Stan 
paintings, porcelain, furniture and 
silverware imported by Gustav III 
of Sweden in an attempt to emulate 
the splendour of Versailles. Ends 
June 13. Closed Tues 
Mus6e d'Art Modems de fa ViHe 
de Paris From Van Gogh to 
Modrlan. Ends July 17. Closed Mon 
(11 eve du President Wilson) 

Mona Bismarck Foundation Early 
Italian Peoples: pottery, jewellery, 
bronze statuettes and arms 
3QQQ-30QBC. Bids May 17. Closed 
Sui and Mon (34 quai de New 
York) 

Petit Palais Art of the Tainos 
Sculptors: 85 pre-Columbian 
masterworks in stone or wood. 

Bids May 29. Closed Mon 

ROME 

Vffla Famestara The Chinea and 
18th century Architectural Firework 
Machines: drawings and engravings 
depicting the annual ceremony in 
Rome when the Neapolitan 
ambassador offered a tribute to 
the Pope to return for the 
sovereignty of the Kingdom of the 
Two Sicifies. This was always 


accompanied by a white horse, 
known as the Chinea Ends May 
31. Closed Sun 

VIENNA 

Kunstforum From Chagall to 
Picasso, Masterworks from the 
Guggenheim Museum. Ends June 
5. Daily 

Judtsches Museum Chagall's 
Russian Years: 50 oil paintings, 
watercolours and drawings from 
the period 1908-20. Ends June 
12. Closed Sat 

Museum des 20. Jahrhunderts 
Picasso: 180 paintings, drawings, 
bronzes and ceramics from the 
Ludwig collection. Ends June 19. 
Closed Mon 

Albertina The Young Kokoschka. 
Ends May 23. Daily 
Kunstteitiaus Art and Dictatorship: 
an exhibition comparing Hitler’s, 
Stalin’s and Mussolini's ideas of 
degenerate art in paintings and 
sculpture. Ends Aug 15. Dally 
Museum fur angewandte Kunst 
Tyranny of Beauty: a study of the 
wedding-cake architectural style 
of Stalin's era and the 
reconstruction of Moscow. Ends 
July 17. dosed Mon 
Kun s th la to rtsc hes Museum 
Isabella d'Este, princess and patron 
of the Renaissance. Ends May 29. 
Closed Mon 
WASHINGTON 

National GaBery of Art Wiftem 
de Kooning's Paintings: 75 works 
by America's influential abstract 
expressionist, dating from foe 
1930s to 1980a and ranging from 
small oils on paper to large 
canvases. Ends Sep 5. Ruth 
Benedict Collection: 78 prints and 
drawings from foe 16th to 20th 
centuries. Ends June 12. Daily 




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14 


A s the shareholders of 
BAT Industries queue 
up for their free ciga- 
rettes at their annual 
meeting in London today, they 
might care to reflect on a curi- 
ous shift in their company's 
strategy. BAT is a kind of cor- 
porate Jekyll and Hyde: on the 
one hand, an Anglo-American 
Insurance giant, on the other 
the free world’s second biggest 
purveyor of the killer weed, 
tobacco. For years, Jekyll has 
been in the ascendant: but as 
last week's $lbn purchase of 
American Tobacco suggests, 
Mr Hyde is not finished yet 
The story of his revival is 
that of world tobacco as a 
whole. A decade ago, only a 
third of the world cigarette 
market was open to BAT. The 
rest was accounted for either 
by China - now a third of the 
world market on its own - or 
by state monopolies in coun- 
tries such as Russia, Japan, 
France and Italy. 

Denied room to expand, BAT 
started to pour its surplus cash 
into financial services, begin- 
ning with the near-£lbn pur- 
chase of Eagle Star Insu rance 
at the end of 1983. But in the 
mid-1980s, the Japanese market 
started to open up, followed by 
Thailand and Taiwan. The Chi- 
nese market became slightly 
less hostile. Then came the 
crucial event the fall of the 
Berlin wall, which opened up 
the whole of eastern Europe. 

Thus, says Mr Martin 
Broughton, BAT’S chid! 1 execu- 
tive, in the past decade the 
available market has tripled, 
most of It happening in the last 
five years. “When we first 
moved into financial services,” 
he says, “it was all in the con- 
text of seeing tobacco as a cash 
generator in long-term decline. 
We never saw it declining as 
Cast as outside pundits, but we 
were looking to financial ser- 
vices for growth. Now we have 
two growth businesses." 

The American Tobacco pur- 
chase scarcely fits the growth 
scenario, since the US market, 
by Broughton’s reckoning, has 
fallen by a steady 2 to 3 per 
cent a year for many years. 
More than anything else, the 
deal amminh; to buying wish 
flow on the cheap. Even so, it 
is hard to believe that BAT 
would have contemplated it 
had its thinking on tobacco not 
undergone a sea-change in the 
past few years. 

The logic for the deal is sim- 
ple enough. The two giants of 
US tobacco, Philip Morris and 
RJR Nabisco, could not have 
bought American on anti-trust 
grounds: and given the anti- 
smoking climate in the US, 
anyone not already in the mar- 
ket would be crazy to get 


Going up 
with smoke 

Tony Jackson asks why tobacco 
is back in favour at BAT 

BAT: Imping- up' the Habit. - T. 1 ; / 

'BAT ci garet te volume fens) 


600 — 



.300 - 



. f>v • x 1 - -\z:t : 

/P: l 'h t - 

.... "ivr «• . rr-v 


Vi 1 . 

*. ..... . 


1970 


76 


80 


85 


90 


93 


■ ! i" : ' 


involved. As the number three 
US producer, BAT thus found 
itself in a buyer's market 

According to Broughton's 
sums, he would still break 
even on the deal if consump- 
tion fell by 7 per cent a year 
from now on. This, he argues, 
is unlikely on a sustained 
basis. Even if it did happen, he 
says, the deal would buy him 
time. A combined business sell- 
ing 80bn cigarettes a year in 
the US takes longer to become 
Qon-viable than one selling 
SObn, as BAT does at present 

Then again, if a 7 per cent 
fail so unds unthinkab le, it is 
worth considering the case of 
BraziL In its first quarter state- 
ment this week, BAT said its 
Brazilian cigarette volume had 
fallen by 17 per cent year on 
year, leading to a loss of sev- 
eral mill inti pounds. Since this 
Is partly doe to such exotic fac- 
tors as hyperinflation and 
cross-border smuggling from 
Paraguay, the comparison is 
not exact But it is sobering to 
reflect that in Brazil, BAT still 
sells twice as many cigarettes 
a year - lOObn - as it does in 
the US. 

On a wider front, the Brazil- 
ian experience suggests that 


the brave new world of tobacco 
may have its awkward aspects. 
BATs market share In Brazil 
is 80 per cent In Chile it is 97 
per emit In fact more than 
half of BATs cigarette sales 
worldwide are in the 30 or so 
countries in which it has more 
than half the market countries 
in which, historically, BAT had 
the official monopoly. Its big 
competitors such as Philip 
Morris have no such cosy tradi- 
tion. As world markets open 
up, BAT has plenty to lose as 
well as to gain, 

Looking farther ahead, some 
of the big old state monopolies 
have yet to flex their muscles 
on the world stage. Japan 
Tobacco, the former Japanese 
monopoly company which still 
holds over 80 per cent of its 
home market, is starting to 

malm headway intornaHnnally - 

But the really terrifying pros- 
pect is that one day its Chinese 
counterpart, the Chinese 
National Tobacco Corporation 
(CNTC), might do the same. 

At present, Broughton 
argues, the phenomenal 
growth of the Chinese market 
must keep CNTCs hands fulL 
“They’re growing at a rate of 
SObn cigarettes a year,” he 


says. That's a pretty damned 
big factory [each year]-” But 
the potential of a company 
whose cigarette output is 
roughly equal to that of Philip 
Morris. BAT, RJR Nabisco 
and Rothmans combined is 
slightly unnerving. “We’ve 
developed good relationships 
with them over the years," 
Broughton says cautiously. 
“But we certainly wouldn’t 
suggest we know what they’re 
going to do.” 

Meanwhile, the battle for the 
brave new markets continues, 
particularly against BATs old 
adversary Philip Morris. The 
two make an Interesting 
match. Philip Moris has 12 per 
cent of the world market, BAT 
1(L5 per cent Philip Morris is 
much bigger in the US, BAT 
rather bigger in the rest of Ihe 
world. BAT has a range of 
weapons, from its vast experi- 
ence of international maricets 
to its panoply of local brands. 
Philip Morris has a single 
weapon, but a very formidable 
one: Marlboro, one of the 
strongest brand names in the 
world. 

“Philip Morris is the most 
aggressive competitor we 
have.” Broughton says. 
They’re very active in eastern 
and central Europe. They 
appear to use different finan- 
cial criteria from ours. We’ve 
had three cases recently where 
we’ve been competing bead to 
head to buy a factory [in east- 
ern Europe 1. Even in the third 
one, where we pushed our 
numbers up a bit, they put in a 

paefeag n three Htnpa 35 high as 

ours. Either they’re right or we 
are. We don’t know yet” 

In any case, the main point 
is that in tobacco, BAT now 
has plenty to do. According to 
Broughton, the outside world 
was always wrong to see BAT 
as wanting to get out of 
tobacco. The cash was avail- 
able in greater quantities than 
could be invested in tobacco, 
since the opportunities weren’t 
there,” he says. “Now we have 
a number of alternative strate- 
gies open to us, each of which 
is viable and sound in its own 
right We may not be able to do 
it all at once, but having com- 
peting opportunities is a posi- 
tion I like.” 

In other words, BATs ambi- 
tions to buy a European insur- 
ance company or a UK build- 
ing society may or may not 
come to immediate fruition. At 
the same time, BAT may or 
may not buy into the French 
tobacco monopoly when it is 
privatised, or grab other such 
opport u nities as they turn up. 
Hyde and Jekyll, it seems, will 
have to coexist in the same 
corporate body for quite a 

while yet 


A good is a 

a CSNlMUVjny UAlDtt®- 

and a ffOUCEMAN. CD Rf 




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Chairman a f 
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tAinmr -I 


Joe Rogaly 


...i.Mrul, TIMSy MW * >*H , 

* \ ' 




Snooker for the voters 



The phantom 
race for Mr 
John Major’s 
Job is sheer 
entertainment. 
Consider the 
friskiest three 
runners. Mr 
Michael Por- 
tillo, the loyal rhinf secretary 
to treasury, haw ynwfe it 
plain that he wants to be prime 
minister when he grows up. 
We should be safe until the 
next century. 

Mr Michael Heseltine. the 
loyal president of the board of 
trade, studiously avoids oppor- 
tunities to deny that if asked 
he would move into No 10 
Downing Street. The request 
had better come soon if he is to 
get his chance while he is 
young enough to enjoy it Mr 
Kenneth Clarke, the loyal 
chancellor, delivered Hib Mais 
lecture on Wednesday. The 
what? Never mind. It came 
across as an a d v e rtisement for 
the candidacy of Clarke, IL, 
willing and able, ready to start 
tomorrow morning. The talk 
had the flavour of those “why I 
think I would be good at this” 
affirmations rammnnly found 
at the tail-end of job applica- 
tions. It lacked only “...and I 
know it would be an exciting 
opportunity...” 

These three pretenders differ 
from one another in age, Ideol- 
ogy, experience, subtlety and 
skilL Fortunately we are 
spared the task of sifting them 
out When it comes to the 
watMitiai qualification they are 
equally deficient None of them 
has the stature, the magic, nec- 
essary to restore life to the 
Conservative coalition, beyond 
the fleeting moments that 
would follow victory. None is 
so magnificent that he can be 
trusted to lead the unleadabla. 
Mr Portillo, whose support in 
the parliamentary party is con- 
centrated within the Europhob- 
ic/xenophobic faction, is an 
unlikely unifier. Mr Heseltine, 
still unforgiven by some for 


the downfall of Lady Thatcher, 
could not both pacify Mr Por- 
tillo’s platoon and remain true 
to his previously stated convic- 
tions. Mr Clarice, whose Mais 
lecture is the single visible 
piece of serious work he has 
produced ’since last Novem- 
ber's budget. Is a known Euro- 
phile and self-confessed 
spender on welfare. 

If the Conservatives bad a 
majority of 100-plus, as Lady 
Thatcher did, any opp of the 
three play Hip her 
way. First win the leadership, 
then, in reshuffle after reshuf- 
fle, steadily cull the cabinet of 
opponents. Those were the 
days. They are long gone. This 
year such surgery might 
destroy the Tories, not unify 
them. A prime minister with a 
majority of 17 
and falling 
must weigh 
every decision 
with extreme 
care. This 
makes steady, 
efficient ad- 
ministration of 
the country's 


Tory assassins 
should pause. If 
they force Mr 
Major out,, his 
successor will be 

tne country s Under Strong 

affairs extreme- pressure to call a 

In lUfriflllH * , 1 


general election 

did not pre- 
serve the balance In the party 
might render the task impossi- 
ble. 

In short, it could be that 
whatever the results of yester- 
day's local election, the prime 
minister is safer than conven- 
tional wisdom suggests. He 
could even survive heavy 
defeats in next month’s elec- 
tions to the European parlia- 
ment. Who knows? Who cares? 

Whether Mr Major stays or 
goes has become one of the ter- 
minally boring questions of 
British politics. The prime min- 
ister might hold on, or he 
might not. Either way, the 
Conservatives are saddled with 
the same problem. They must 
find a way of settling their dif- 
ferences, particularly over 
Europe. If they do not, they 


will be unwelcome under tup- 
leader - even the loyal Mr 
Douglas Hurd, who is not 
actively campaigning for tne 

**There is a second proposition 
that should give potential Toiy 
a ssassins pause for thought, u 
they do force Mr Major out * hls 
successor will be under strong 
moral pressure to coll an 
Immediate general election. 
This is the position taken, both 
In public and in private, by Mr 
John Smith. The leader of the 
Labour party does not imagine 
that there would be a fresh 
contest, a re-run oF April 1992 
which he would win. He 
merely regards the prospect of 
taunting a hypothetical new 
opponsit as too good an oppor- 
tunity to be missed. He is 

right A second 

defenestration 
of a Conserva- 
tive leader 
within less 
than four years 
would leave the 
electorate 
bemused. The 
Tories' reputa- 
tion as the nat- 
ural party of' 
government 
would be sunk. 
The legitimacy of the new 1 
prime minister would be ques- 
tioned from the start The new 
cab inet would be bom destabil- 
ised. Labour could pile on the 
misery. Mr Smith beams when 
he pictures the scene. 

His motives may not be par- 
ticularly high-minded, but he 
does have a point A new 
prime minister appointed by 
disgruntled Conservatives 
because they could not unite 
under the old one should seek 
a fresh mandate for bis or her 
party. This is not a matter of 
law. It is more important than 
that. It is what would feel 
right There are plenty of pre- 
cedents for a change of prime 
minister within the lifetime of 
an elected parliament The vot- 


ers were not immediately con- 


sulted when the then Mr Har- 
old Wilson made way for the 
then Mr Jim Callaghan. 
Against that the British consti- 
tution is unwritten. U is 
famously plastic. It Is only a 
slight exaggeration to say that 
it is whatever the principal 
political players choose to 
moke or it at any given time. 
Their choice is heavily Influ- 
enced by public opinion. 

In tbe circumstances here 
envisaged, it would be proper 
to ask the electorate to endorse 
the change of prime minister, 
or choose another. A leader- 
ship contest this autumn 
would, if Mr Major's court is to 
be believed, be hard-fought 
The incumbent would not go 
cosily. The proceedings would 
necessarily be nasty. The pur- 
pose would be soU-prescrvation 

- the maintenance in office of 
a deeply unpopular govern- 
ment Tory MPs with marginal 
seats would be fighting to save 
their parliamentary careers. 
The national interest would 
not be considered. 

This is not to say that we 
would be better uff with Mr 
Smith. The time to decide 
about that will come when - if 

- the Labour leader enlightens 
us about Labour's proposed 
policies. Indeed, if he does not 
he might get a rude shock. He 
might force Mr Major's succes- 
sor to call an early election, 
and then fall out of history as 
Labour loses. Unlikely? Try 
this: Mr Heseltine becomes 
prime minister in November. 
He makes the happy discovery 
that the budget deficit is likely 
to be lower than previous pro- 
jections indicated. A strong- 
looking cabinet, a quick tax 
cut. a promise of a referendum 
before joining any European 
single currency, a brilliant 
early spring campaign, and 
Labour could once again be 
snookered. The Tories would 
then resume their internal bat- 
tles, having wun themselves a 
breathing-space. Only the 
country would lose. 


LETTERS TO THE EDITOR 


Number One Southwark Bridge, London SEI 9HL 

Fax 071 873 5938. Letters transmitted should be clearly typed and not hand written. Please set fax for finest resolution 


Always time 
to deal with 
the trivia 

From Mr Bryn Glover. 

Sir, Adrian Furnham (“On 
the road to procrastination”. 
May 4th) aught to mead his 
Northcote Parkinson. True, the 
professor observes that the 
time spent on any item is 
inversely proportional to the 
sum of money involved, but 
that does not mean that com- 
mittees handle trivial matters 
promptly; quite the reverse in 
fact 

Parkinson gives the examp le 
of the company finance com- 
mittee members with feelings 
of guilty unease that they have 
just nodded through a 
multi-million pound redevelop- 
ment plan on the strength of a 
consultant's report which most 
of them did not really under- 
stand. A scheme to replace the 
cycle shed for a couple of hun- 
dred pounds was mnp.h easier 
to grasp, and they settled to a 
long delete on sizes, materials 
and numbers of bicycles; each 
eager to be seen to be making 
his or her contribution to the 
process. 

Three hours later, having 
shaved £23.4£p off tbe original 
estimate, they retired 
exhausted to tbe executive din- 
ing room, reflecting content- 
edly on a good morning’s 
worth of top-level decisions, 
and on the debilitating respon- 
sibilities of high office. 

These were not decision avo- 
iders, about whom Furnham is 
writing-, these were keen deci- 
sion takers, restrained only by 
their own inadequacies. 

Bryn Glover, 

14 Weruley View, 

Leeds LS7 3QL 


A confusing state of 
Haitian affairs 


From Ms Eileen M O’Connor. 

Sir, I am a bit confused. For- 
mer US President George Bush 
has suggested to current Presi- 
dent Bill Clinton that the US 
discontinue Us efforts to return 
President Aristide to power in 
Haiti because he lacks suffi- 
cient support there (“Clinton 
toughens stance against Hai- 
tian junta”. May 4). He also 
feels that it would be a mistake 
to intervene militarily because 


“no US lives are at risk in 
Haiti today”. Since when has 
US policy in central/South 
America aligned Itself with the 
wislies of tbe local population? 
And when did “US lives” and 
not “US interests” become the 
driving force in policy deci- 
sions? 

Eileen M O’Connor, 

20 Edgewood Road, 

Glen Ridge, New Jersey, 

US 


Crest will leave the private 
investor with crumbs only 


From Mr JD Little. 

Sir, Kevin Goldstein-Jackson 
(“Diary of a private investor 
Unanswered questions”, April 
30) details further problems 
with the proposed Crest share 
settlement system as far as the 
private investor is concerned. 
In this regard it is interesting 
to note that, buried in appen- 
dix HI of the task force report 
is the fact that 67 per cent of 
bargains by volume are done 
by or for Individuals account- 
ing for 14 per cent by value. 
The private investor makes a 
considerable' contribution to 
the functioning of the market 

I can answer his question on 
what weight is given to views 
submitted to the Bank or Trea- 
sury - none. After correspond- 
ing with both august bodies 
over a period of four months it 
was the task force report 
which finally indicated why 
my representations were get- 
ting nowhere; Mr rain Saville, 
who beads the Crest project at 


the Bank, was sticking strictly 
to the recommendations in the 
report and nothing was going 
to make him deviate from it 

A long-shot letter I sent to 
Sir Bryan Carsberg, director- 
general of fair trading, pro- 
duced a reply on his bahalf 
which reiterated so many of 
the views expressed by the 
Bank that we are unlikely to 
get any redress from the Office 
of Fair Trading. 

I am afraid the private inves- 
tor is going to have to accept 
the ertemhs dropped from the 
table of the fat cats. The prob- 
lem arises because Crest has 
been designed by and for the 
convenience of institutions; 
any so-called, concessions to 
the private investor are a sop 
to divert criticism until Crest 
is Introduced, when it will be 
too fate to make any changes. 
J D Little. 

The Halt, 16 Parry’s Close 
Stoke Bishop, 

Bristol BS9 1AW 


Euro straitjacket created on works councils 


From Mr Zygrramt Tyszkiewicz. 

Sir, Mr Bert Thierron reas- 
sures us (Letters, April 29) that 
works councils will neither 
cost very much nor delay man- 
agement decisions. However, 
the 18 agreements he cites 
were freely concluded and are 
therefore tailor-made to suit 
each company’s individual 
needs, thus minimising costs 
and red tape. 

The Commission's lastest 
draft would force all companies 
into a rigid, bureaucratic 
straitjacket which ignores the 
infinite diversity of company 
situations. The apparent free- 
dom it gives to negotiate any 
formula for information and 
consultation is an Illusion; in 
the event of failure to agree, 
the minimum conditions in the 
annexe to the directive are 
mandatory. Tbe annexe offers 
no choice. It imposes creation 
of a central European Commit- 
tee with attendant rigidities 
and bureaucracy. 

Urged on by trade unions. 


workers will take the annexe 
as a starting point for negotia- 
tions, not because it improves 
information and consultation; 
on the contrary, it will seri- 
ously interfere with many suc- 
cessful existing company infor- 
mation systems. Unions will 
Insist on the centralised Euro- 
pean Committee as a major 
step towards realising their 
ambition for pan-European 
union structures and collective 
bargaining. This unvoiced 
ambition has driven this proj- 
ect for 24 years, but cannot be 
the stated aim of a Commis- 
sion Directive, since the right 
of association is expressly 
excluded from the scope of EU 
competence by Article 2.6 of 
the “Social Chapter”. 

The Commission's White 
Paper rightly blames the rigid- 
ity of Europe’s labour markets 
for our failure to create jobs. 
Yet Its draft directive on infor- 
mation and consultation will 
only add to these rigidities, 
unless the the annexe is modi- 


fied so that companies and 
their workers have freedom to 
devise the formula best suited 
to their individual needs. No 
single formula decreed by 
Brussels can possibly be right 
for all companies, in all four 
corners of Europe. The Treaty 
says a directive “shall be bind- 
ing as to the results to be 
achieved ... but shall leave 
to tiie national authorities the 
choice or form and methods" 
The present directive fails to 
respect this requirement. 

It is not too late for the 
Council of Ministers to build 
the required flexibility into 
this directive, and especially 
ite annexe, thus sending posi- 
tive signals to those who 
would invest in Europe, while 
folly satisfying workers’ needs 
for guaranteed Information 
and consultation. 

Zygmunt Tyszkiewicz, 
secretary general 
UNICE, 

rue Joseph J2, 40, 

B-104Q Brussels, Belgium 


Directors 
must be 
responsible 

From Mr Tony Gamble. 

Sir. Mr Ian Brindle’s con- 
cerns (Letters. May 3) about 
the unlimited liabilities of 
auditors would be reduced if 
the appropriate prosecuting 
bodies took a tougher approach 
on directors' liabilities. 

For many employees "becom- 
ing a director” has no more 
implications than, say, getting 
a better company car. For the 
retired businessman “taking 
on a few non-executive direc- 
' tin-ships" is often thought of as 
a bit of handy fee income in 
exchange for attending the 
occasional board meeting. 

Most such directors have no 
knowledge of their duties con- 
tained in the Companies Act 
They may not even realise that 
they have personal liability for 
unpaid company Paye/Nattonal 
Insurance, or to unpaid credi- 
tors if the company fails hav- 
ing traded knowingly insol- 
vent ly. I believe that is because 
the authorities either turn, a 
blind eye, or are too busy to 
take proceedings against direc- 
tors. Most of us have dealt 
with companies where the 
dominant director(s) has 
traded into insolvency and 
then reappeared, phoenix-like, 
often in the same area of busi- 
ness. Why, we all ask, are 
these people allowed to get 
away with it? 

It may be argued that often 
many (junior) directors are not 
privy to the information that 
enables them to know whether 
the company is trading within 
the law. On the other hand 
“ignorance" is not treated as a 
defence in other legal matters. 

A tougher line on those who 
are elected as “stewards" of 
■the company would encourage 
thorn to be more realistic about 
their own policing, or be more 
appreciative as to what they 
are asking their auditors to do. 
Tony Gamble. 
managing director, 

Rhine gold Publishing. 

241 Shaflsbury Avenue, 

London WC2H SEN 

Not at Harrods 

From Mr Michael Cole. 

Sir, Harrods serves 15,000 
cups of coffee a day to the 
patrons or Us 12 restaurants 
and sells uo.onolb of coffee 
beans every year to customers 
of its food halls, but Starbucks 
does not operate “a coffee 
kiosk in Karrod's of Ixjudon", 
as you report (The US wakes 
up to a now aroma”, April 30). 
Nor does Harrods take an apos- 
trophe. 

Mlchnul Cole. 

director of public affairs. 

Harrods. 

Enig/Usbridge, 

London SWiX r,\ 7 . 


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FINANCIAL TIMES FRIDAY MAY 6 1994 


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FINANCIAL TIMES 

Number One Southwark Bridge, London SGt 9HL 
Tel: 071-873 3000 Telex; 922186 Fax: 071-407 5700 

Friday May 6 1994 


All hands to 
the dollar 


Markets are bearish on the dollar. 
Equally. US policy-makers are 
unwilling to see the dollar fell fur- 
ther. Both pieces of information 
are subject to alteration at any 
moment But at least the dollar 
weakness offers a good opportu- 
nity to push policy faster in the 
direction it is - and shoo k! be - 
moving; towards tighter monetary 
policy in the US and looser poli- 
cies in Germany and Japan. 

It is not Impossible to explain 
why the dollar has been so weak. 
The problem is, as usual, that 
there are tar too many explana- 
tions. This is so even though some 
explanations w*ti be aiiwfafltM 
quite quickly. Investors are not 
moving into the yen because of 
the strength of the Japanese gov- 
ernment or, Cor that matter, the 
vigour of Its recovery. The same Is 
true, if to a lesser degree, for Ger- 
many. 

Short term interest rate differen- 
tials are also not moving in favour 
of the yen and D-Mark. On the 
flfln trflr y, interest rate rilfforentifllB 
on three month money have 
moved consistently in favour of 
doUardenommated securities; by 
four percentage points vis-a-vis 
the yen, the cyclical trough 
reached in April 1991, and by six 
percentage points vis a vis the 
D-Mark since September 1992. 
These shifts in relative interest 
rates have been widely expected. 
It is banfty surprising therefore 
that conventional wisdom expec- 
ted the dollar to be strong. Con- 
ventional wisdom has been disap- 
pointed. 

Current accounts 

Three explanations for dollar 
weakness remain: first, that the 
current account surplus of Japan 
and deficit of the US are a perma- 
nent, if intermittent, source of 
upward pressure on the yen; sec- 
ond, that the dawn of recovery, 
however faint, in Japan and conti- 
nental Europe heralds relatively 
high, returns on reel assets; and, 
finally, that expectations of infla- 
tion. even though they have dete- 
riorated everywhere, have deterio- 
rated rather more in the US than 
in the other major countries. 

What is important to note is 
that the US currency has fallen by 
11 per cent against the yen since 
the beginning of the year, but also 
by more than 7 per cent against 
the D-Mark just since February. 


rather than just a bilateral , phe- 
nomenon. At the same time, while 
bond rates have risen ever y where, 
they have risen mare in. US dollars 
than in yen or IWlark. Since last 
autumn, ite riiiferantiai against 10 
year D-Mark bonds has moved 
from almost minus one percentage 
point to plus half a percentage 
point and a gainst the yen it has 
moved, over trie same period, from 
one percentage point to more than 
three percentage points. 

These shifts imply not only a 
marked relative decline in expec- 
tations of US inflation, but also a 
parallel shift to views about the 
long term performance of the US 
dollar. The currency must be 
expected to move to offset changes 
in relative long term interest 
rates. Some of that shift has 
occurred right now. 

US policy 

It would be foolish for US policy 
makers to ignore the pessimism. 
Fortunately Mr Lloyd Bwtfwm, the 
Treasury secretary, to justifying 
recent intervention, announced 
that the administ r ation "sees no 
advantage in as undervalued cur- 
rency”. Unfortunately, toe admin- 
istration does not seem to recog- 
nise that the very same logic 
a pplipg to the internal purchasing 
power of the dollar. What it needs 
to do is to support the action of 
the -Federal Reserve in raising 
short term interest rates and so 
help preserve the credibility of US 
counter-inflationary policy. 
ftidaad, faffing such action, it may 
be impossible to stabilise the 
exchange rate. 

Yet the unexpected weakness of 
the dollar has its good side. It has 
encouraged senior Bundesbank 
officials, including the president, 
Mr Sms Tietmeyer, to admit that 
D-Mark strength 'is unwelcome. 
With luck, that Drill bring forward 
further needed declines in German 
short term interest rates. Equally, 
without a government, the sole 
policy-maker able to act in Japan 
is its central bank. Here too 
aggressive monetary loosening, 
via exchang e market intervention, 
is justified. It would be helpful if 
short term interest rates were low- 
ered too. US dollar weakness may 
be a surprise. It may be unwel- 
come to most policy makers. But 
at least it should force the US. 
Germany and Japan to accelerate 
the changes they need to make in 
their monetary policies. 


Dollar weakness is a general. 

The tunnel 


visionaries 


The question of Britain’s 
institutional links with the rest of 
Europe may continue to bedevil 
its national politics. But from 
today, the country's geographic 
relationship with the continent is 
definitively settled. With the open- 
ing of the Channel tunnel. It can 
never again be truthfully claimed 
that the UK is not part of Europe. 
That is a development which 
deserves to be celebrated, for both 
symbolic and practical reasons. 

Late, over-budget and beset by 
financial uncertainties though it 
is, the Anglo-French project marks 
a milestone in co-operation 
between two countries accus- 
tomed to viewing each other as 
rivals rather than as natural 
allies. As an engineering achieve- 
ment, it represents a triumph of 
human persev er ance over arduous 
physical and technical obstacles. 
And as a means of transport, it 
offers advantages in speed and 
convenience which promise in 
time to reshape trade patterns and 
transform popular attitudes to 
international travel, above all on 
the British side of the Channel. 

Probably the biggest wander is 
the feet that the tunnel has been 
completed at all. Had it depended 
on government funding, as origi- 
nally planned, it would almost cer- 
tainly not have been built The 
halt called in 1975 by the Wilson 
government - which concluded it 
could not afford both the tunnel 
and the Concorde aircraft pro- 
gramme - would have seen to 
that The project was rescued only 
by the decision a decade later by a 
radical rightwing UK prime minis- 
ter and a socialist French presi- 
dent to resurrect It as a private 
sector venture. 


Useful example 
Private management has not 
been a trouble-free solution. Euro- 
tunnel’s history has been punctu- 
ated by missed deadlines, finan- 
cial cliffhangers, public 
sqnabbling and successive 
increases In total cost Nonethe- 
less, without the commitment of 
private capital, notably by the 
commercial banks, the pressures 
to ensure accountability, c o ntain 
cost over-runs and drive the proj- 
ect through to completion would 
almost certainly have been 
weaker. That commitment has 
also been a useful example to 
some other governments about the 


potential of privately owned 
national infrastructure. 

However, it would be disingenu- 
ous to view the venture as a pure 
experiment in free enterprise, 
untouched by the hand of govern- 
ment Much of its financing has 
depended on state-owned French 
b anks closely linked to centres of 
political power and, at a crucial 
juncture, on arm-twisting by the 
Bank of England. The cost over- 
runs are due partly to government 
mandated specification changes 
during construction. And the proj- 
ect's viability hinges on public 
expenditure on fast raft, links, 
which the UK government at one 
stage balked at approving. 

Further refinancing 

Nor is It certain that private 
capital would have been as readily 
available if its proriders had 
known at the outset what they 
know now. As the project’s con- 
struction budget has steadily 
mounted, its revenue forecasts 
have been repeatedly down- 
graded, deferring the prospect of 
returns. As a consequence, Euro- 
tunnel wiH soon be obliged to seek 
farther refinancing to replenish 
its dwindling cash resources. 

Why the banks have remained 
loyal fra- as long as they have Is a 
moot question. Perhaps it is 
because they genuinely believe 
that Eurotunnel will eventually 
prove a big money spinner - just 
as the Mast Wane t unnel did after 
it was built three decades ago. Or 
maybe it is because they con- 
cluded long ago that it would cost 
them more to cut their losses by 
calling in their loans than to stick 
with the project to the end. 

Either way, it is clear that pro- 
jects as monumental, as innova- 
tive and with as long a lifespan as 
the Channel tunnel defir the risk 
and return calculations conven- 
tionally employed by providers of 
private capital. Their achievement 
involves a blind frith and vainglo- 
rious ambition exceptional in busi- 
ness and rarer still in Anglo-Saxon 
financial markets often accused of 
excessive short-tennism. How far 
such frith will reap commercial 
rewards is still impossible to say. 
Bat the world Is a richer place for 
this piece of Anglo-French tunnel 
vision, whose benefits will be 
counted for generations to come. 
Eurotunnel bag ytigwg pd the map 
of Europe for the better. 


The ambitions of the European space industry will ride 
on next month’s Ariane 4 mission, writes Paul Betts 

High stakes at 
the launch- pad 



T he countdown has 
started for what will be 
the most important 
lift-off to the 14-year his- 
tory of Arianespace, the 
European satellite launch company 
that has given Europe leadership in 
tiie $2bn a year commercial space 
transport business. 

"It would be a catastrophe if we 
suffered a second consecutive fail- 
ure,” says Mr Charles Bigot, the 
chief executive of Arianespace. 
bluntly. 

Since the failure on January 24 of 
an Ariane 4 rocket with the $350m 
loss of Turkey's first national satel- 
lite, Turksat l, as well as a Euro- 
pean telecommunications satellite, 
the European consortium has been 
working round the clock to investi- 
gate and modify its rocket to ensure 
that the launch at the beginning of 
next month goes off without a 
hitch. 

The stakes are high. Arianespace 
most restore confidence amon g its 
international customers at a time 
when competition to the high risk 
commercial satellite launch busi- 
ness is intensifying. Apart from its 
traditional US rivals, the European 
group is faHng an increasing chal- 
lenge from Russia, China and 
Japan, all firing to penetrate the 
western commercial launch market 
New cut-throat price competition 
coupled with uncertainties about 
European governments’ funding of 
future European space initiatives, 
risks undermining the success of 
the Ariane programme. The project 
has done for the European space 
industry what the Airbus consor- 
tium achieved to the civil aircraft 
fte irt: the <»atehnghm<»nt of a credible 

competitor to the US rinrrrtnanite of 
commercial aerospace markets that 
lasted until the early 1980s. 

The achievement hp*n all the 
more remarkable because Ariane- 
space, 5&6 per cant controlled by 
French state and private sharehold- 
ers but also public and private 
shareholders from 11 other Euro- 
pean countries, was set up when 
rockets, or expendable launch 
vehicles (ELVs) as they are known, 
were widely believed to have 
become redundant 
The US threw its lot into the 
development of the space shuttle. 
But the Europeans considered a 
manned shuttle too complex a sys- 
tem on which to build a reliable 
space transport business. 

The gamble paid off. The disaster 
that befell the US shuttle Chal- 
lenger in 1966 and the long interrup- 
tion in US shuttle fli ghts vindicated 
the European decision to concen- 
trate on rocket technology. It also 
helped Arianespace to capture more 
than go per wmt of the commercial 
satellite launch market. 

“It was not just the choice of 
sticking with ELVs. But Ariane’s 
success was also the fruit of a new 
concept in space launches,” says 
mip French space industry official. 
“The idea was that not only could 
launchers be produced and sold like 
aircraft, but that a comprehensive 
launch service also had to be 
offered to the market,” he adds, 
explaining that Arianespace now 
offers its customers financing facili- 
ties, satellite insurance cover and 
other services. 

Until the latest accident, the reli- 


T he emergence of Russia, 
China yml Japan as rivals 
to Europe and the US 
threatens a glut of satellite 
1 aim eh faeilifi p g at a Buie of falling 
demand. 

With fewer than 20 commercial 
launch opportunities a year, 
Europe’s Arianespace needs a sub- 
stantial market share to make its 
launch facility and rocket develop- 
ment programme viable. 

But the going is getting tough for 
the Europe an s and the US. Russia’s 
first commercial launch contract 
from the west, to lau nch a satellite 
for Inmarsat, the international 
maritime co-operative, was priced 
at $3&n. 30 to 50 per cent less than 
an equivalent Ariane launch. 

The competitive price reflects 
more than Russia’s desire to earn 
foreign exchange. Its Proton satel- 
lite launcher is cheaper than those 
of Its western rivals largely 
because it puts the satellite into 


ability of Ariane rocket launches 
had also helped build up interna- 
tional nwiricat confidence Si nce the 
first experimental launch in Decem- 
ber 1979, there have been 63 
launches, of which six have failed. 
But since the introduction in 1988 of 
the bigger Ariane 4 rocket capable 
of placing more than one satellite 
into orbit, there have been only two 
failures: flight 36, which destroyed 
two Japanese commercial satellites, 
and the recent flight 63. 

Flight 36 failed in February 1990 
because a cloth was left in the rock- 
et’s cooling system. *Tt was a stupid 
accident," concedes Mr Bigot, “but 
it did not raise questions dn the 
fundamental soundness of the 
rocket” In contrast the night 63 
failure was the result of an engine 
shutdown in the thir d stage of the 
rocket after an oxygen pump bear- 
ing overheated. “We couldn’t sim- 
ply say it was the fault of a rag or a 
particle of aand: the explanation of 
what happened was far more sub- 
tle," Mr Bigot adds. 

A board of inquiry set up after 
the accident did not establish a 
“unique and proven cause” for the 
failure- It concluded, however, that 
the engine shutdown was probably 


final orbit, rather than requiring 
boosters on the satellite to fuel the 
last leg of the journey. Besides sav- 
ing fuel, this almost doubles the 
life of tiie satellite, to 12 years. 

Since the Inmarsat deal, the US 
and Russia have agreed on a quota 
of right Russian launches of US- 
made satellites by 2008, In return 
for the US granting; fin* the first 
time, export licences to American 
Sa telli te mflnn fflp lmw s- Russia has 
also agreed to refer to the US for 
approval any Proton bid that 
undercuts the lowest wes te rn offer 
by more than 7Jb per cent 

However, the agreement has done 
little to slow sales of Proton 
launches, which boast a record of 


due to the conjunction of a late pre- 
cooling of the liq uid oxygen pump 
bearing and a series of aggravating 
factors. Modifications have now 
been made to ensure that the rock- 
et's third stage cryogenic engine is 
less prone to overheating. 

Hie new modified systems have 
undergone more than 100 tests at 
facilities in France and Belgium. Mr 
Bigot has travelled to the US and 
Japan to reassure customers who 
are also kept up to date with weekly 
company briefings on the latest 
developments in the Ariane rocket 
corrective programme. 

“We now have the situation well 
in hand.” says Mr Bigot “It is most 
important for us to show our cus- 
tomers how we are correcting the 
system. They would never forgive 
us if we failed to give top priority to 
quality and security.” 

Arianespace is also anxious to 
resume rocket launches as quickly 
as possible to meet its existing com- 
mitments to place in orbit .89 satel- 
lites for a total revenue of about 
$3bn during the next three years. 
Before the January accident, the 
company had planned 10 Ariane 4 
launches this year at monthly inter- 
vals. It is still hoping to meet this 


reliability comparable to the mar- 
ket-leading Ariane. A recent joint 
venture between the US aerospace 
group Lockheed, Khrnnichev, the 
maker of Proton, and the Russian 
research group, Energia, 
announced that since the Inmarsat 
deal, it has won orders far Proton 
worth $600m. 

The US telecoms group Motorola 
has booked Proton for the launch 
of 21 of its satellites for the Iridium 
communications network. Khrnni- 
chev says these orders do not 
exceed the quota agreed with the 
US; the Iridium launches will be to 
low-earth orbit, the quotas only 
cover launches into the higher geo- 
stationary orbit 


target by adjusting its procedures to 
enable launches every three instead 
of four weeks from the be ginning of 
next month. 

Although Arianespace has contin- 
ued to win new satellite launch, 
orders since the flight 63 failure, the 
four-month interruption in its time- 
table has Inevitably had an impact 
on business, with some potential 
orders lost to competitors. 

The biggest blow was last 
month’s decision by the European 
Telecommunications Organisation 
Eutelsat, which consists of 39 Euro- 
pean telephone companies, to opt 
for a US General Dynamics Atlas 2A 
rocket to launch a televirion satel- 
lite, Ho third 2, in August 1996. 

The telephone consortium 
claimed it picked the US rocket 
because there were no slots avail- 
able at that time in Arianespace’s 
packed launch manifest for its Ari- 
ane 4 rocket But Arianespace had 
offered to launch the Hotbird satel- 
lite on the first commercial flight of 
its new Ariane 5 rocket scheduled 
lor late summer or early autumn of 
1996. 

The underlying reason for Eutei- 
saf s decision appears to have been 
its reluctance to be first on Ariane- 


But western competitors doubt 
whether Russia will adhere to the 
qpotas, pointing to the failure of a 
similar deal between the US and 
China to prevent undercutting; 
China consistently offers deals at a 
discount of about 30 per cent to 
comparable European juices. 

But China's price competitive- 
ness ba« been undermined by the 
dubious safety record of its Long 
March launchers. A planned launch 
for Australia was aborted in March 
1992, while last month the destruc- 
tion of China’s first advanced 
weather satellite on its final pre- 
flight testing further undermined 
China's ambitions. 

The accident has set back China’s 


space’s larger and more powerful 
rocket, which will eventually 
replace the current family of Ariane 
4 rockets, suggests a senior French 
aerospace official. “It’s clearly a 
snub for Ariane to see a European 
organisation not committing itself 
to a rocket programme in which 
Europe has invested more than 
S6bn," he adds. 

Arianespace officials describe the 
Ariane 5 programme as Europe's 
biggest engineering project after the 
Channel tunnel with substantial 
infrastructural investments already 
completed at Arianespace's launch 
site in the jungle of French Guiana. 

Ariane S. a two-stage rocket capa- 
ble of transporting 6 to 7 tonnes of 
satellite payload compared with 4.5 
tonnes on the three-stage Ariane 4. 
has been designed not only to put 
heavy satellites into orbit but also 
to carry manned spacecraft and 
parts of a planned space station pro- 
gramme being studied jointly by the 
US and European space industries. 
Space experts also believe that the 
two-stage rocket design will provide 
even greater safety and reliability 
because most failures have so far 
involved the third stage of the Ari- 
ane rockets. 

O ur ambition Is to 
become during the 
next 30 years not only 
a satellite launch com- 
pany but also 
Europe’s space transport company 
providing flight services to and 
from space as well as in space 
itself." Mr Bigot explains. But with 
the cuts in Europe's space budget, 
the immediate challenge for Ariane- 
space is to consolidate its position 
as leader in the commercial satellite 
launch market 

To remain competitive, Ariane- 
space must retain at least SO per 
cent of the commercial satellite 
market "We need a large market 
share to justify the scale of our 
investments and maintain competi- 
tive operating costs for our rock- 
ets,” Mr Bigot concedes, adding that 
the operating costs of the new Ari- 
ane 5 rocket will be directly tied to 
the rocket’s annual launch rate. 

Achieving this long-term target 
will depend on the reliability as 
well as the cost of the European 
consortium’s satellite launch ser- 
vices, compared with rivals. 

US competitors have become 
more aggressive following the fail- 
ure of the Challenger space shuttle 
eight years ago and the subsequent 
decision of toe US government to 
encourage its three US launcher 
manufacturers (McDonnell Douglas, 
General Dynamics and Martin 
Marietta) to compete for commer- 
cial b usiness against Ariane. 

As for other competitors, Mr 
Bigot is more worried by the Rus- 
sians at this stage than the Chinese 
who are still trailing western manu- 
facturers. He also regards the threat 
from Japan as a longer-term prob- 
lem. 

In four weeks, the future of 
Arianespace and the ambitions of 
the European space industry will 
ride on the 64th mission of the Ari- 
ane 4 rocket carrying an Intelsat 
telecommunications satellite and 
two small space technology 
research vehicles for the British 
Ministry of Defence. 


planned launch of six satellites this 
year. But with toe US deal on Chi- 
nese foreign launches due to expire 
In December and several foreign 
satellites already booked for Chi- 
nese launches over the next decade, 
China’s space ambitions are far 
from dead. 

Meanwhile, Japan's space effort 
finally achieved toe maiden flight 
of its H-n launcher In February, 
some two years behind schedule. 
Hie H-II’s main engine, the LE7, is 
fuelled with liquid hydrogen. 
Although toe LE7 has been beset 
with technical problems, it has 
greater potential for higher perfor- 
mance than toe more traditional 
closed combustion engine. How- 
ever, with launches restricted to 
just two a year, for environmental 
reasons, and no commercial cus- 
tomers yet sfgned up, Japan is 
unlikely to make an impact on the 
commercial satellite launching 
market for some time. 


Space war over eastern sky 

Jenny Luesby on the threat from rival satellite launchers 


Observer 


Battle of the 
bulge 

■ At last Nigerian citizens can 
get cracking with head of state 
general Sani Abacha's ‘War Against 
Indiscipline and Corruption’. Due 
to start in April, it was postponed 
but not - as unkind wags suggest 

- because of trouble deriding the 
identity of the enemy In this odd 
war. 

Still, toe war should prove highly 
popular in some quarters of Lagos. 
It might persuade the police 
guarding toe federal secretariat 
to cease doing a brisk trade in 
parking spaces. It could ease the 
city’s traffic jams, by preventing 
drivers from queueing to boy scarce 
fuel - supplied by state monopoly 

- from illegal roadside hucksters, 
ft might even reconnect the FTs 

office telephone. Despite paying 
tiie bills on time, it’s been 
disconnected by clerks at toe 
state-owned telephone company 
NiteL They say an additional cost 
is necessary in order to “reconcile 
the account”. 

As in, ‘reconciled to one's fate’. 


Mane stream 

■ Gendjim the mystery horse 
finally surfaced in France 
yesterday, two months after 
arriving from toe central Asian 
republic of Turkmenistan, a special 
gift to president Francois 


Mitterrand. 

The French media has been 
whinnying about Gendjim’s 
non-appearance so the presidential 
palace gave him a special photo-call 
at the Parisian barracks of the 
Republican Guard. Alexandre Gros, 
a veteran rider and trainer, said 
Gendjim, a light-bay 7-year-old, 
had arrived tired and emotional 
and needed peace and quiet 

He should be getting plenty of 
that Mitterrand, 77, does not ride. 


Mint condition? 

■ The Royal Mint has made a bit 
of an ass of itself - and produced 
a male. 

In addition to the £2 base metal 
coins being struck to commemorate 
the Bank of England’s tercentenary, 
the Mint decided to produce a 
limited edition of one thousand 
22 carat gold coins. 

About 800 had already been 
dispatched when one eagle-eyed 
numismatist noticed that the design 
on the front of the coin differed 
from that in the marketing 
literature. It lacked toe crucial 
“Two pounds” legend under the 
Queen's head. 

Apparently the die for a double 
sovereign (confusingly also worth 
two pounds, but which has St 
George and the dragon on the 
reverse) had been paired with the 
(correct) reverse of the special Bank 
commemorative design. 

Ergo, a mule, which is two 
incorrectly associated dies - and 


* 





T want yon to take the mickey 
out of political correctness' 

a rare enough event to get coin 
collectors pretty excited. The Mint 
would like the duff ones back. 
Sadly, toe fact that they are not 
legal tender Is hardly going to 
bother the punters, who paid £295 
apiece for their now distinctly more 
curious curiosities. 


Tight-fisted 

■ Still on the subject of 
tercentenaries, the Bank of 
Scotland has not yet made up its 
mind bow it should celebrate Its 
big birthday next year. 

It may have been founded by 
toe same man who set up the Bank 


of England - but it doesn't sound 
as if It will imitate the Bank of 
England’s extravagant partying, 
with everything from floats at the 
Lord Mayor’s show to a specially 
commissioned musical by Geoffrey 
Burgon. 

Even so. the board of the Bank 
of Scotland should at least be able 
to be a bit more generous than it 
was at the time of the 250th 

anniversary In 1945. 

Then the staff presented the 
board with a silver casket which 
they had to pay for. Indeed, staff 
members on active service were 
written to - the only 
communication they received from 
the bank during the war - and told 
that their accounts were 
automatically being debited to pay 
for the gesture. 


Lost in space 

■ When Bill Clinton next visits 
the UK, his expatriate party 
loyalists might improve their 
chances of gaining an audience 
by chang in g their nany? to 
“Democrats, a broad”. 


Flushed out? 

■ Tut, tut Is Sir Tim Bril, Lady 
Thatcher's favourite spin doctor, 
about to reverse his private PR 
business into a toilet cubicle 
maker? 

Sir Tim was surprisingly silent 
when Observer contacted him 


yesterday about a Daily Mail report 
that he was planning to use 
Chartwell, a small Gravesend 
company, to get his long- rumoured 
stock market quote. He has grown 
his Lowe Bell business into 
Britain’s second-biggest PR 
company in double quick time. 

The presence of a few trophy 
names, such as Lord Carrington 
and Sir Ronald Grierson, on the 
letter head of Chime 
Communications, his parent 
company, suggest Sir Tim has 
public ambitious. 

But why Chartwell? Its shares 
were suspended yesterday, pending 
shareholder approval of a “proposed 
substantial acquisition”. Luke 
Johnson, a former media analyst 
at Kleinwort Benson and son of 
writer Paul Johnson, has a stake 
in Chartwell and was involved in 
the successful reverse takeover 
of PizzaExpress. Hence, the gossip 
that Sir Tim is about to make a 
move. 

Given toe recovery in the media 
sector - market leader Shand wick’s 
shares have recovered from 2'/,p 
to 53p - there might be a window 
of opportunity for PR companies 
to come to market 

But Sir Tim had better be quick. 


Socket to me 

■ Q: How many people does South 
Africa's Independent Electoral 
Commission need to change a 
light-bulb? 

A: No idea - they’re still counting. 




internet 

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videoconferencing specialist 
Tel:0454 201000 Fax:0454 201001 


FINANCIAL TIMES 

Friday May 6 1994 


□flL€ 

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^S 55 & 


m 




Palestinian police tour Gaza Strip as Israel vows never to return 

PLO takes first steps in self-rule 


THE LEX COLUMN 


By Julian Ozarme in the Gaza 
Strip and Mark Mchdson 
In Cairo 

An advance team of Palestinian 
policemen touted police stations 
in the Gaza Strip yesterday amid 
growing fears that the Palestine 
liberation Organisation (PLO) 
would not be able to implement 
swiftly the self-rule agreement 
signed with. Israel in Cairo an 
Wednesday. 

Officials from the FLO yester- 
day denied that it was not ready 
to assume its new powers under 
file Gaaa-Jericho agreement, as 
suggested by Mr Yitzhak Rabin, 
Israel's prime minister. But they 
j gafri the full deployment of Pales- 
tinian police would take at least 
a week longer than expected. 


A party of 17 senior Palestinian 
police officers were escorted 
around the coastal Strip in a con- 
voy of heavily-armed Israeli 
police and army jeeps. Israel also 
completed its evacuation of the 
Gaza central prison and contin- 
ued releasing hundreds of Pales- 
tinian prisoners. 

The PLO said arrival of the 
first 1,000 police, who should 
have been in place today, had 
run into “technical problems” 
and they would not arrive until 
next week. 

Mr Shimon Peres, Israeli for- 
eign minister, seeking to bolster 
Israeli support for the peace pro- 
cess. vowed that the Jewish state 
would never return to the Strip, 
packed with refugee camps and 
squalid townships which have 


been in open revolt against Israel 
for the past seven years. 

“There is no going back. We 
won't go back to Gaza, Gaza 
won’t come back to os,” he said. 

However, of euphoria 

the mood of most Palestinians 
was disappointment and suspi- 
cion of Israel’s real motives. 
Three of the best-known Palestin- 
ian leaders from the West Bank 
and Gaza - Mr Haidar Abdel- 
Shaft, Mr Faisal Hussein! and 
Mrs Banan Ashrawi - expressed 
deep reservations. Mr Hasseuri, 
PLO boss in the West Bank, said 
the agreement should not have 
been signed until all remaining 
issues were finalised, and Mrs 
Ashrawi said the accord foil short 
of Palestinian demands. 

Israelis remained as sceptical 


as the Palestinians about the 
peace prospects. An opinion poll 
published in Yediot AJnvnat, the 
tabloid Hebrew newspaper, 
showed that only 7 per cent of 
Israelis believed thus was a very 
high chance for peace. Sixty-two 
per cent said the chances for 
peace were low or non-existent. 

Two radical PLO faction lead- 
ers and Syria attacked the agree- 
ment as an obstacle to Middle 
East peace. Mr George Habasb, 
leader of the Marxist Popular 
Front for the Liberation of Pales- 
tine, and Mr Nayef Hawatmeh, 
leader of the Democratic Front 
for the Liberation of Palestine, 
said their fighters would step up 
attacks against Israel but would 
initially exdude areas under Pal- 
estinian self-rule. 


Northern and southern army units battle in streets as jets pound cities 

Yemen pushed to brink of civil war 


By Our Mddto East Staff 

Yemen edged closer to civil war 
yesterday as northern and 
southern army units battled with 
each other in the streets and air 
force jets pounded rival capitals. 

Residents in Sanaa, the federal 
capital located in the north, said 
jets struck the international air- 
port and the presidential palace. 
Explosions rocked the city again 
later in the day and warplanes 
drew anti-aircraft fire. 

Yemen has been plagued by 
political rivalry since Marxist 
South Yemen and tribal, conser- 
vative North Yemen merged four 
years ago to form a republic with 
a population of 14m. 

Differences over power-sharing 
prevented integration of the 
armed forces and have led to a 
power struggle. The crisis 
mounted last August when 
vice-president Ah Salem al Beidh. 
head of the Yemen Socialist 


! 0 MM 10 0 
0 Km 180 


SAUDI ; 
-.ARABIA 


ETHIOPIA 


YEMEN 

+ 

• SAN* A 


Abysn 


party, left the seat of government 
in Sanaa and returned to his 
political base in Aden, capital of 
the former South Yemen. The lat- 
est confrontations erupted last 
week when the south said one of 
its brigades in the north had 
been defeated in a two-day tank 
battle near Sanaa. 

Yesterday the northern-based, 
government-run Sanaa Radio 
declared a one-month state of 
emergency. It ordered ah Yemeni 
citizens to keep off main roads. 


As the fighting intensified, 
France said it would evacuate 
European Union citizens from 
Aden. 

It was not immediately clear if 
the explosions in Sanaa were 
from an air raid by rival 
southern fighter jets. The anti- 
aircraft fire continued for IS min- 
utes and came from the southern 
and eastern parts of the city. 

Clouds of smoke rose yesterday 
from the vicinity of the presiden- 
tial palace on the outskirts of 
Sanaa. A diplomat said southern 
forces were shelling the com- 
pound with artillery. It was not 
clear if President All Abdullah 
Saleh was inside. There was also 
shooting on the road to the Red 
Sea port of Hodeida. 

Meanwhile, the southern mili- 
tary command reported that 
northern aircraft had blasted 
Aden airport and other districts 
of the port on Wednesday night 
European diplomats in Sanaa 


also reported northern air 
attacks on Aden. The southern 
command’s statement said two 
raiding jets had been shot down. 

Yemen is one of the poorest 
countries in the Middle East with 
a modest oil production of about 

335.000 barrels a day. of which 

140.000 barrels come from the 
south. Up to 30 foreign oil compa- 
nies are operating In the twain 
oilfields. 

Concern that the strife may 
endanger the country’s exports, 
along with fresh signs of firm oil 
demand, fired up a rally in petro- 
leum prices. 

London June futures for the 
ben chmar k Brent blend of North 
Sea crude oil traded as high as 
$15.83 per barrel, op 35 cents 
from Wednesday’s close. New 
York light crude futures also 
stood higher by nearly 40 cents at 
one point in the trading day. Oil 
companies lifting Yemeni crude 
said operations were continuing. 


Recovery lifts Kohl’s poD hopes I Res P“* for * 



By Quentin Peel In Bonn 

Mr Helmut Kohl, the German 
chancellor, appears to have 
reversed the trend of declining 
popularity both for himself and 
his Christian Democratic Union, 
in line with a series of important 
Indicators of reviving economic 
activity. 

The latest opinion polls show a 
revival in the fortunes of Mr 
Kohl and his party for the first 
time since 1992, while the wors- 
ening trend of unemployment 
also seems to have slowed. 

Figures for the capacity utilisa- 
tion of Ger man industry, pub- 
lished yesterday, confirm the 
upward trend in the economy 
indicated this week by statistics 
for industrial production and 
industrial orders. 

The turn in the fortunes of Mr 
Kohl and the CDU may well have 
come too late for the party to 
avoid further setbacks in the 
European, state and local elec- 
tions in June and September, but 
suggests he may have a chance of 
hanging on to power in October’s 


general election. It is also looking 
increasingly likely that Mr 
Roman Herzog, the candidate of 
Mr Kohl's party for the German 
state presidency, will defeat Mr 
J ohannes Rau, the former leader 
of the Social Democratic party 
(SFD), in the electoral assembly 
vote for the position on May 23. 

The outcome depends on the 
votes of the minority Free Demo- 
cratic party, whose leader, Mr 
Klaus Kintal, is inclined to sup- 
port his current partners in the 
ruling coalition. 

Yesterday’s moderately good 
news on the economy included a 
slight drop in unemployment - 
down 93,800 to 3.8m - although 
an a seasonally adjusted basis, 
that still amounted to a slight 

16,000 increase. Nevertheless, the 
underlying growth of unemploy- 
ment - the single most negative 
factor for Mr Kohl in his election 
campaign - has dearly slowed. 

All predictions hitherto have 
suggested unemployment would 
continue to rise through the year, 
In spite of economic recovery. 
The latter trend was confirmed 


by yesterday's capacity utilisa- 
tion figures published by Ifo, the 
Munich economic research insti- 
tute, showing a recovery in 
March to 803 per cent, from 79 
per cent the previous December. 

Capacity utilisation in German 
industry readied a peak of more 
than 90 per cent at the end of 
1990, coinciding with the eco- 
nomic boom of unification, 
according to Ifo, since when it 
declined steadily until the middle 
of last year. 

The improvement seems to be 
having a direct effect on Mr 
Kohl’s political rating, with a 
reversal in the popular view that 
the SPD would handle the econ- 
omy better than the CDU. 
According to Die Welt, the con- 
servative Berlin-based daily 
newspaper, 36 per cent of voters 
now trust the GDU to solve the 
country’s economic problems 
today, compared with 32 per cent 
for the SPD. 

As for absolute levels of voter 
preference, most polls still put 
the SPD in front, but with a 
declining lead. 


Continued from Page 1 

Steve Hannah, head of research 
at Industrial Bank of Japan in 
London, said: “What changes the 
trend is changes in policy, and 
intervention is not a policy." 

Traders said the Golden Week 
holiday in Japan - markets were 
closed from Tuesday to Thursday 
- had contributed to the success 
of the intervention as trading 
was thinner, making it less 
expensive for central banks to 
achieve their purpose. 

Today, the focus will be on the 
US employment report Dealers 
think that there is a chance the 
Federal Reserve wDl raise inter- 
est rates to support the US cur- 
rency and prevent the economy 
from overheating if the figures 
show unexpectedly strong 
growth in job creation. Weak fig- 
ures, however, could throw the 
dollar into renewed difficulties. 

US Treasury prices rose 
slightly yesterday, but gains 
were limited by concern about 
the weak dollar and another pos- 
sible monetary policy tig htening 
by the Fed. 


FT WEATHER GUIDE 


Europe today 

Overcast skies and outbreaks of rain will 
gradually move northward over the British 
Isles. Southern parts of Sweden and Norway, 
the Benelux, Germany and northern France 
will be cloudy but manly dry. Central and 
northern Scandinavia, Poland and the Alps 
win have sunny spells. Sunny Intervals will be 
frequent over southern France. Italy will have 
abundant sunshine, with the occasional 
shower likely in the extreme south-east 
Under sunny skies, central and southern 
Spain and Portugal wffl have maximum 
temperatures of 30C-35C. 

A smafl depression will cause scattered 
thunder showers aver the Balkans and 
northern Greece. Southern Greece will 
continue to have sunny spells. 

Five-day forecast 

The British Isles will have widespread 
showers duirig the weekend. Early next week 
conditions will Improve over England and 
Wales, but Ireland and Scotland wfll sttl have 
rain. Showers wil also dampen western and 
central Europe this weekend. Sunny spells 
are forecast earfy next week. 



•/ 


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1010—'“^ 






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ISS 

Z. : ' Vt- 










/y;- Warn, front AA Confront -A-A. Wind apted to KPH .«*> ■ 

Situation at 12 GMT. Tmipar a t u n s maximum for day. forecasts by Mateo Consult of the N e lh&iands 




Maximum 

Beijbig 

Ballast 

cloudy 

29 

Cwacas 

Mr 

30 

Ecflnfiurgh 


Celsius 

Mr 

13 

CanflfT 

rahi 

12 

Faro 

Abu Dhabi 

sun 

42 

Beipsde 

shower 

15 

Casablanca 

ahowar 

22 

Frankfurt 

Accra 

shower 

32 

Bertn 

Mr 

19 

Chicago 

Mr 

17 

Geneva 

Algiers 

aun 

27 

Bermuda 

shower 

25 

Cologne 

D* Salaam 

Mr 

20 

Gibraltar 

Amsterdam 

cloudy 

18 

Bogota 

shower 

20 

cloudy 

30 

Glasgow 

Athens 

Mr 

23 

Bombay 

sun 

33 

Dakar 

sun 

25 

Hamburg 

Atlanta 

sun 

31 

Brussels 

fair 

19 

Dates 

son 

29 

Helsinki 

B. Aires 

cloudy 

26 

Budapest 

fair 

16 

OaM 

Mr 

39 

Hong Kong 

BJtam 

rati 

14 

Chagen 

cloudy 

14 

Dubai 

sun 

40 

Honolulu 

Bangkok: 

Mr 

37 

Caro 

sun 

28 

Dublin 

rain 

13 

Istanbul 

Barcelona 

BUI 

24 

Capa Town 

cloudy 

17 

Dubrovnik 

thund 

20 




Our service starts long before takeoff, 

Lufthansa 

German Airlines 


Kuwait 

L Angeles 

Las Raima 

Urns 

Lisbon 

London 

LuxJboug 

Lyon 

Madeira 


shower 

14 

Madrid 

sun 

34 

Rangoon 

Mr 

35 

sun 

26 

Majorca 

sun 

26 

Reykjavflt 

sheerer 

9 

Mr 

21 

Malta 

an 

22 

Rto 

doudy 

25 

Mr 

21 

Manchester 

Mr 

t4 

Rome 

sun 

22 

sun 

23 

Manila 

cloudy 

35 

S. Fraca 

fair 

18 

shower 

13 

Melbourne 

Mr 

23 

SaoU 

cloudy 

17 

cloudy 

17 

Mexico C3y 

cloudy 

25 

Sktgspora 

thund 

31 

Mr 

17 

Maml 

fair 

31 

Stockholm 

Mr 

18 

fair 

28 

MBan 

sun 

23 

Strasbourg 

Mr 

21 

cloudy 

30 

Montreal 

shower 

IS 

Sydney 

Mr 

21 

thund 

19 

Moscow 

ran 

10 

Tangier 

Mr 

27 

cloudy 

14 

Munich 

Mr 

18 

Tel Aviv 

Mr 

25 

Mr 

33 

Nairobi 

shower 

23 

Tokyo 

shower 

22 

Mr 

32 

Naples 

shower 

22 

Toronto 

shower 

15 

cloudy 

18 

Nassau 

cloudy 

32 

Vancouver 

sun 

22 

fair 

22 

Now York 

Mr 

IB 

Venice 

SUl 

22 

cloudy 

24 

Ntee 

au! 

20 

Warm 

Mr 

IT 

sun 

25 

Nicosia 

fair 

24 

Warsaw 

Mr 

19 

rain 

16 

Oslo 

rain 

15 

Washington 

Mr 

22 

Mr 

19 

Paris 

Mr 

21 

WdSngton 

Mr 

16 

Mr 

23 

Perth 

doudy 

25 

Winnipeg 

sun 

18 


20 

Prague 

fsk 

18 

Zurich 

Mr 

19 


BP’s rich promise 


BP has delivered the goods much 
faster than investors expected. The 
19 per coot increase in its div i d end is 
all the more impressive given that it 
relates to a quarter during which 
crude prices averaged only $14. Since 
BP was able to increase {unfits and 
pay down $600m of debt in such a 
toogh environment, the board felt It 
was time to let shareholders have a 
slice of the action. 

Though chief executive Mr David 
Simon was anxious to deflate expecta- 
tions that 20 per nmt annual dividend 
increases would now be the norm, 
there is dearly much more to come. 
The group is about to kick into the 
next phase of its restructuring pro- 
gramme. riaeigwari to improve operat- 
ing performance by $lbn a year. Mean- 
while, worldwide economic recovery 
should sharply mhanw BP'S earnings 
fr o m the hi ghly cyclical chemicals and 
refining businesses. Within three or 
four years, the dividend should be 
back at the level it was before being 
halved in the dark days of 1992. 

Yesterday’s 4 per cent rise in BFs 
share price, which follows strong sup- 
port for the stock in recent months, 
means the scope for further outper- 
formance is reduced. But judged 
against its main international peers, 
the possibility for rapfetl gains has 
not vanished entirely. Measured as a 
proportion both of earnings and of 
gross cash flow, the share price still 
looks cheap. Moreover. BP’S ability to 
increase earnings is probably some- 
what greater than that of its rivals, 
given that it is still coming slightly 
from behind. It is only an a yield basis 
that the shares look .expensive. But, 
with the new dividend policy, that is 
less of a concern than, it was. 

Bank of Scotland 

Mr Bruce Paitullo of the Bank of 
Scotland is one of the few bankers 
who appears to believe that banks 
should actually laid money. Yet again 
he has shown that it is possible to 
increase profits by doing so. Customer 
advances were up 8 per cent last year; 
operating profits rose 19 per cent with 
net interest income up 14. Admittedly, 
the bank was helped by favourable 
conditions in the mortgage market 
where variable rate margins came 
close to 2 per cent and bad debt prob- 
lems are relatively ^mall. This year, 
the act could be harder to repeat 

In general, loan demand remains 
subdued and, although increased 
activity in the housing market sug- 
gests a plentiful supply of mortgage 


Bank of Scotland 

Share price retatfve to the 
FT-SE-A Banka Index 

140 


90 * —“I 

8Q 1 I - I 1 1 1 

1090 si sa os a* 

Sounaa: FT GrophBe 

business, there is more competition 
flwnng ] aid ers. Rank of Scotland still 
expects to lend more this year but it 
may become harder to maintain mar- 
gins. Those on mortgage lending will 
certainly narrow if and when base 
rates rise a gain. At least the hank is 
less dependent than the Rngiteh clear- 
er^ on dealing profits. A further drop 
in provisions and son-performing 
loans should compensate to some 
extent for any margin squeeze. 

still, the time seems to have come 
for Rank of Scotland to concentrate 
more on b uilding return. It admitted 
as much yesterday with its reference 
to greater emphasis on productivity 
and cost control. Despite the impres- 
sive increase in profits, net return on 
average equity was still only 14 per 
cent And the relatively modest divi- 
dend increase is a reminder that 
banks which rely on volume for 
growth have to keep up a flow of 
retained earnings. 

Wassail 

Wassail's acquisition of General 
Cable appears classic conglomerate 
strategy. As a partially demerged sub- 
sidiary of a US financial services 
group. General Cable has been 
neglected by its owners. Capital spend- 
ing has been falling for three years to 
a level well below depreciation. An 
operating margin of less than 05 per 
cent last year leaves plenty of room 
for improvement. Since Wassail is 
more than doubling its turnover as a 
result of the deal, even modest gains 
in margin will have a big impact on 
profits. The wonder is that another 
conglomerate or cable industry rival 
had not stepped in before. 


With 22 US manufacturing ales to 
work on and a product range covering 
in ooo lines, there is scope for rational- 
.taSTn* hints at sizeable fttfr 
value provisions, though with fresh 
equity under its belt from yesterday’s 
rights issue. Wassail's balance sheet is 
unlikely to be stretched even if good- 
will write-offs result. The main worry 
Is whether it has the management 
resources to swallow such a large mor- 
sel without indigestion. 

On the strength of its record so far. 
Wassail probably deserves the benefit 
of the doubt Rising US construction 
orders may make it easier to pass on 
higher copper prices to customers. , 
which would provide some breathing 
space. With the shares already on a 
heady multiple in anticipation of a 
deal, Wassail has its work cut out to i 
maintain upward momentum. But its : 
first substantial acquisition since Sep- 1 
tember 1991 seems to justify the mar- ! 
ket’s considerable faith. 

News Corporation 

Investing in News Corporation has 
always been an act of foith in Mr 
Rupert Murdoch’s strategic vision. 
Yesterday's mildly disappointing 
third-quarter figures underline the 
point Price cuts in UK newspapers 
and an unexpected write-off in US 
book publishing were the main rea- 
sons for the fell in operating profits 
from the wholly-owned parts of the 
empire. Without a timely gain in fea- 
ture films ~ Mrs Doubtfire providing a 
box-office hit - only television would 
have shown progress over last year. 

Against that background. News's 
status as a growth stock looks a little 
odd. Even television may suffer next 
year as Fox Network’s investment in 
American football righto adds to over- 
heads. The main earnings momentum 
will probably continue to come from 
associated companies, notably BSfcyB 
and AnsetL It Is a credit to News's 
robust management style that these 
two have been turned around. But 
earnings from partially -owned 
operations might deserve a lower rat- 
ing. A low tax charge - running at 11 
per cent so far this financial year - 
also argues for caution in valuing the 
shares. So long as the main planks in 
Mr Murdoch's strategy' are secure, 
these factors are unlikely to unsettle 
the market. Investors will reason that 
a year or two of modest earnings 
growth is a price worth paying. If 
News suffers a setback in its long-term 
ambitions, though, shareholders may 
start to hunger for jam today. 


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FINANCIAL TIMES 

COMPANIES & MARKETS 

©THE FINANCIAL TIMES LIMITED 1994 Friday May 6 1994 


Useful GEM N°*4 

Stannah have 
maintained all makes of 
lifts for over 100 years. 

For information 

‘phone 021-358-5868' and quote FT4 



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IN BRIEF 


AMB lifts profits 
to DM85m 


Aachener und M flacbener Beteillgungs (AMB), 
Germany’s second-biggest insurance group after 
Allianz, reported net profits of DM85m ($5Qm) 
for last year, up from DM73m, Page 18 

Not su ch a Blockbuster after all 

Dead but not buried. That was the epitaph pro- 
nounced this week by one Wall Street analyst 
on the proposed takeover of video retailer Block- 
buster Entertainment by Viacom, the film, televi- 
sion and publishing group. Page 19 

McDonnell Douglas gets fit 

McDonnell Douglas, the US aerospace and defence 
group, haa building Up finanrrifll muscle. 

Page 20 

Bank Austria cuts dividend 

Bank Austria, the country’s largest hank, yesterday 
reported a sharp rise in operating profits but 
win pay a reduced dividend of 8 per cent Page 
22 


Share pdcafOOG yen) 
11 


Nintendo suffers In Tokyo 

Nintendo, the Japanese 
leading video game maker, 
has had a bad time on 

- the Tokyo stock market 

- Poor sales in Europe, the 
strengthening of the yen, 
the lack of new products 
and increasing competition 

' have hurt earnings, forcing 
the company to cut initial 
' profit estimates for the 
business year ended last 
March. Back Page 



1983 94 

Souca: Ottasteam . 


End of the line for bulls shopping in China 

The first flush of enthusiasm for “China Inc" 
that was so much in evidence last year has given 
way to cautiomShare prices of the first dutch 
of Chinese state companies listed in Hong Kong 
have come under pressure this year. Page 22 

Pepkor offers £60m to Brown A Jackson 

Pepkor, the South African retailer, is expected 
today to offer to inject up to £6Qm into Brown 
& Jackson, which owns the troubled Pound- 
stretcher chain of discount retailers. Page 24 


Body Shop continues recovery 

Body Shop International continued its profits 
recovery; yesterday reporting a rise at the pre-tax 
level for tha year to end-February from £2L5m 
to £29.7m, more than reversing the decline of 
the previous 12 months. Page 24 

MEPC buys Midlands portfolio 

MEPC, the quoted UK property company, has 
bought a £67m portfolio of office and industrial 
properties in the Midlands from the Richardson 
Group, a private property company. Page 26 

Co-ops form force hi retaffing 

Co-operative Retail Sendees, the second largest 
cooperative retailer in the UK, yesterday launched 
a new proposal for a merger with the hugest. 
Co-operative Wholesale Society, to create a signifi- 
cant retailing force. Page 26 

Ford UK suffers again 

Ford of Britain, the leader of the UK new car 
market suffered a third successive year of heavy 
losses in 1993 (excluding Jaguar). Page 27 


Companies In this issue 


Aerostmctures 

26 

Aga 

20 

Amtnex 

27 

Ares-Serono 

19 

BMSS 

27 

BP 

17 

Blagden tnds 

25 

Blockbuster Ent 

19 

Body Shop Inti 

24 

Brown & Jackson 

24 

CRS 

26 

CWS 

26 

Canadian Pacific 

20 

Capitol 

24 

Castle Comma 

26 

Chartwefl 

26 

Ctmosdence 

27 

Continental Alrfines 

19 

Dyno Industrier 

20 

Etectrofux 

17 

Etnap 

26 

EuroDoKar 

25 

Finsbury Growth Tst 

27 

Ford 

27 

Forward Group 

26 

Greencoie 

2B 

Greenway 

24 

HUM 

26 

Hamley3 

24 

Hanson 

26 


Market Statistics 


AAnnual reports service 30-31 

Benchmsk Sort bonds 24 

Bond futures and options 24 

Bond prices end yields 24 

ConmodMes prices 28 

Dtridenta announced. UK 25 

EUS currency rates 36 

Eurobond prices 24 

Rod bfflrea tofces 2t 

FT -A World trices Back rage 
FT Gold Rbws index Back Page 
FT/tSMA M tend sve 24 

FT-SE Actuaries brices 29 


HealthcaU 

24 

Hlghcroft Inv Tst 

27 

JIB 

24 

Jefferson Smurfit 

19 

Laing (John) 

26 

Lombard Insurance 

24 

London Capital 

28 

MEPC 

26 

McDonnell Douglas 

20 

Merc & General Re 

26 

News Corporation 

17 

Norcor 

24 

PT Indosat 

17 

Pepkor 

24 

Polypipe 

26 

QVC 

17 

Radamec 

27 

Radius 

27 

Regent Corp 

27 

Reisebuero Kuoni 

19 

RhAne-Pauienc 

17 

SSAB 

19 

SeafleJd 

Z7 

Titan 

27 

Vartg 

19 

Viacom 

19 

Vital 

19 

Vymura 

28 

Wassail 

25 

Westminster Scelf 

27 


Foreign exchange 

38 

Gifts prices 

24 

Lifla equfljr options 

BackPage 

London stars mnriBB 

3W1 

London bad) options 

Bock Paga 

Managed fends smke 

32-36 

Money ratals 

36 

New mo tend Issues 

24 

Recent issues. UK 

29 

Sort-term W rates 

36 

US interest rates 

24 

WotW Stock Markets 

37 


Chief price changes yesterday 


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Associates help News Corp rise 28% 


By Ifikki Tait m Sydney 

News Corporation, Mr Rupert 
Murdoch’s media and publishing 
group, yesterday announced a 
27.6 per cent increase in profits 
after tax but before abnonnals, to 
A$852&n (USgGOOm) in the nine 
months to end-March. Profits in 
the third quarter alone reached 
A$327-flm, up from A$1 78.4m in 
the same period of the previous 
year. 

But, as in previous quarters, 
the improvement was due to 
sharply higher profits from asso- 
ciate companies - BSkyB. the 
British satellite broadcaster, and 
Ansett Airlines - and reduced 


interest charges. (Ansett is 50 per 
cent owned by News, with TNT, 
the Australian transportation 
group, holding the remainder; 
News also owns SO per cent of 
BSkyB. with Pearson, owner of 
the Financial Times , holding a 
minority interest 
By contrast operating profits 
before tax from News’ core 
operations fell to AS3G3.7m in the 
quarter, compared with A$373.4m 
a year ago. Their operating prof- 
its in the first nine months stood 
at A$1.16bn, down from AJ1.24bll. 
Group revenues were A$2.59bn 
(from AS2.64bn) in the third quar- 
ter, and A$8.42bn (against A$8bn) 
in the nine months. 


News said filmed entertain- 
ment, television and TV guide 
business showed “strong gains” 
in profitability, but these 
improvements were offset by 
lower results from UK newspa- 
pers, book publishing and the 
“free standing inserts” division. 
Results in 1992-3 were boosted by 
inclusion of the South China 
Morning Post, now sold. How- 
ever, even after adjusting for 
this, nine-month operating prof- 
its nudged down from AgLISbn 
to A$1.17bn. On the newspaper 
side, operating profits fell from 
A$1 67.9m to A$91.3m in the third 
quarter, due to the UK price war 
and SCMP omission. However, 


News said its strategy of boosting 
circulation by cover price reduc- 
tions was being achieved, with 
the Sun's circulation by 16 per 
cent, the Times by a third. 

Book-publishing made a 
A $22 :1m loss (from a A$3.6m 
profit) in the quarter, with News 
saying that HarperCollins saw 
higher than anticipated returns, 
deeper customer discounts and 
write-off costs related to the “Cel- 
ebrate Reading" programme. 
Magazines and inserts made 
A$92.5m in operating profits, 
down from A$1 13.4m, bat televi- 
sion improved from A$55.2m to 
A$ 79.7m, and filmed entertain- 
ment from AgSlJhn to ASSl^m. 


Associate companies contrib- 
uted A$102.4m in the third quar- 
ter, compared with AS28.9m. 
Interest charges dipped from 
A$180.4m to A$158.3m. 

There was a net abnormal 
charge of A$5.2m in the third 
quarter, compared with a 
A$l2&n profit last year, leaving 
attributable profits, after tax, at 
AS222.7m (A$l 90.7m). The nine- 
month figure after abnonnals 
stood at Ag991.6m (A$643J>m). 

News said BSkyB had 3.4m 
subscribers - an Increase of more 
than im since last June - with 
more than half the total taking 
the full premium package. 

Lex. Page 16 


■ Decline in first quarter reflects reduction in capital and currency gains 


Rhone-Poulenc 


sees beginning 
of an upturn 


By John Ridding in Paris 

Rhdne-Poulenc, the French 
ffhamiffflh and pharmaceuticals 
group which was privatised last 
year, reported a sharp fall in first 
quarter net profits to FFrl89m 
($32.41m) compared with 
FFr676m in the first three 
months of 1993. 

The company said that the 
decline, which contrasted with 
improved results at other Euro- 
pean chemicals groups, largely 
reflected the sharp reduction in 
ca pital gams on the disposal of 
assets and the absence of cur- 
rency gains. Both factors lifted 
profits in the same period last 
year. 

Operating profits slipped by 
much less than the net result, 
falling from FFrl.74bn to 
FFrl.68bn. Sales rose slightly, 
increasing from FFrl9.8bn to 


FFr20. 09m for the three months. 

Mr Jean-Rene Fourtou, chair- 
man, that the results showed 
the begumings of an upturn in 
sectors sensitive to recession and 
a stabilisation in the group's 
healthcare activities. In spite of 
the improvement, however, he 
said the company did not expect 
a genuine upturn in the Euro- 
pean pronnmy this year. 

Organic and inorganic chemi - 
cals activities benefited from 
improved sales, increasing profits 
to FFr57m from break-even last 
year despite the continued weak- 
ness in prices. The fibres and 
polymers division recorded 
strong gains, increasing profits 
from FFr5 lm to FFrl34m, while 
speciality chemirau saw profits 
rise by 22 per cent to FFrl79m 

The healthcare division, 
which includes US based Rhdne- 
Poulenc Rorer. reported slightly 


Where the group stands 

Rh6ne-Poufenc 

Pre-tax profit (FFr bn) ■ Share F*ice<FFr) 



1989 BO 91 82 1990 91 92 93 84 

Souck Ortnu tr an * 



Jean Hand Fourtou 


higher profits of FFrl.23bn. 

The most difficult problems 
were encountered in the group's 
agricultural activities, which 
include herbicides, pesticides and 
insecticides, and which saw oper- 
ating profits decline by 29 per 
cent to FFi343m. 


According to Rhdne-Poulenc, 
sales were affected by weather 
conditions at the beginning of the 
year in Europe and the US. The 
company said that the division 
was on course for improved prof- 
its for the full year. 

Industry observers said that 


frill year profits for the group as 
a whole were difficult to predict 
because of the importance of 
asset sales. In the first quarter of 
last year, for example, gains on 
asset sales amounted to FFr244m, 
compared with just FFrl7m in 
the comparable period this year. 


Indonesian telecom to be listed in New York 


By Manuela Saragosa in Jakarta 

The Indonesian government is to list 25 
per cent of PT Indosat, the state-owned 
telecommunications group, in New York 
and has hired Merrill Lynch as lead under- 
writer. 

The move, in the form of an issue of 
American depositary receipts, will intro- 
duce nm* of Indonesia's largest companies 
to the International financial communi ty. 

It also marks the first time an Indone- 
sian company has listed shares overseas 
before doing so at home. A further 10 per 


cent of the company wifi be listed on the 
Jakarta Stock Exchange. PT Danareksa 
Sekuritas will manage the domestic share 
sale. 

Brokers in Jakarta estimate Indosat will 
raise at least $500m in New York. Indosat* s 
president Mr Tjabjono Soeijodibroto said 
the share placement would take place in 
the second half of this year. 

Indosat is one of Aria’s most profitable 
companies. In 1992, the company’s assets 
were valued at $690m and the company 
recorded a net profit of 3240m. 

No figures are available yet for last year. 


but the telecommunications company has 
a healthy track record. Mr Soeijodibroto 
commented, “We’ve been among the top 
five biggest tax payers in the country 
since 1982.” 

Indosat, which employs about 1,600 peo- 
ple, recorded net profits erf 237bn rupiah in 
1992 against 208 ^bn rupiah in 1991. Indon- 
esia will invest $lObn over the rest of the 
decade to expand telecommunications 
across its archipelago erf 14*000 islands. 

The derision to list overseas was also 
prompted by the fact that the Jakarta 
Stock Exchange limits share prices to 15 


times earnings, while Merrill Lynch is 
believed to have advised Indosat to sen its 
shares at about 30 times prospective 1994 
earnings in New York. 

Not everyone is convinced, however, 
that selling shares abroad is Indosat* s best 
option. Some local officials and brokers 
argue that a larger portion of the shares 
should be sold in Jakarta to stimulate 
development erf the local stockmarket 

Indosat is the first in a series of Indone- 
sian state-owned companies to seek list- 
ings overseas and is likely to be followed 
op by Garuda, the national airline. 


Rise in 

demand 

helps 

Electrolux 

By Christopher Brown-Humes 
in Stockholm 

Electrolux, the world's leading 
producer of household appli- 
ances, yesterday announced a 
SKr668m ($84 m) profit after 
financial items for the first quar- 
ter following strong US demand 
and more stable conditions in 
Europe. 

The result, which compares 
with a SKrl22m profit in the 
same 1993 period, was ahead of 
expectations, taking the compa- 
ny’s B share up SKr6 to SKr429. 

The group, which has just fina- 
lised a DM730m ($426 m) agree- 
ment to buy AEG’s household 
appliance division, said operat- 
ing income rose 88 per cent to 
SKrl.06bu from SKr563m. Sales 
were up 11 per cent at 
SKr26.6bn, helped by a 7 per 
cent rise in volumes and favour- 
able exchange rate movements. 

Electrolux said operating 
income had Improved in both 
Enrope and North America, 
helped by restructuring and 
higher demand. 

However it stressed that the 
European recovery was patchy, 
with stronger performances in 
the UK, Spain and the Nordic 
region being offset by weakness 
in Germany, France and Italy. 

Household appliances, the big- 
gest division, saw sales rise to 
SKrl5-0tm from SKrlS^bn. Oper- 
ating income for white goods 
was “substantially” higher in 
both Europe and the US, it said. 
Results from air conditioners, 
floor-care, sewing machines and 
compressors also improved. 

The tumround was flattered 
by the difficulties which Electro- 
lux experienced in its North 
American and Spanish markets 
last year. 

Restructuring and one-off 
charges reduced household appli- 
ance income by SKr300m in the 
first quarter of 1993. 

Commercial appliances had a 
more difficult quarter, with sales 
rising marginally to SKr2 >30bn 
from SKr2.29bn and operating 
income remaining static. Refrig- 
eration and cleaning equipment 
both reported lower operating 
income, hut industrial laundry 
equipment improved. 

Outdoor products increased 
operating income as sales rose to 
SKr4-25bn from SKi&95bn; there 
was also a better performance 
from industrial products where 
sales climbed to SKr5.05bn from 
SKrSJKRm. 

Group net financial expenses 
fell to SKx391xn from SKr441m, 
due to lower interest rates and a 
reduction in tied-vp caprtaL 


QVC to expand television 
home shopping into Europe 


By Raymond Snoddy 

QVC, the television home 
shopping channel, is planning to 
expand into continental Europe 
with the possibility of local lan- 
guage channels in Germany, 
France and Italy. 

Mr William Scbereck, presi- 
dent of QVC International and a 
dose associate of QVC e xecutiv e 
Mr Barry Diller, said yesterday 
that talks with potential part- 
ners were under way. 

“Expect startling announce- 
ments within the next six 
mouths,” said Mr Scbereck who 
is responsible for taking the QVC 
concept around the world. 

QVC has grown to a $l-2bu-a- 
year revenue business in the US 
in less than eight years. It was 
launched in the UK last October 
and a month later in Mexico. 


The company said it had 
reached agreement with the 
Dutch cable television associa- 
tion to transmit in the Nether- 
lands and will launch in Norway 
in June, Denmark in June or 
July, and Sweden and Belgium 
by the end of the year. 

They will be serviced from the 
UK in English with the help of 
bilingual telephone operators. 

Mr Schereck said joint ven- 
tures and channels in French, 
German and Italian were the 
best way to tackle the biggest 
markets of Europe. He hoped to 
be able to launch such channels 
in those countries next year. 

Since its launch in the UK. the 
shopping channel estimates it 
has readied 4.5 per cent of its 
potential customers - a faster 
rate than in the US. There, the 
channel has signed up only 8 per 


cent of its potential customer 
base in eight years. 

Mr Schereck confirmed yester- 
day the UK channel was in line 
to reach its first year revenue 
target of £40m (858.4m). 

The QVC channel has also had 
talks with a UK supermarket 
group about extending its range 
of “impulse” buys, which include 
electrical goods, jewellery and 
sports equipment, to packages 
for £30 or £40 of non-perishable 
supermarket items such as 
cleaning equipment and canned 
goods. 

Already in the UK, the power 
of showing things cm television 
is having an effect 

QVC bought 500 cooker hood 
filters, wondering whether any- 
one would buy them. “We sold 
3J300 within two weeks,” said Mr 
Schereck. 


BP increases dividend 20% 


By Robert Coreine In London 

British Petroleum yesterday 
capped its return to robust health 
with a 20 per cent rise in. its first 
quarter dividend to £5 pence a 
share. It was the first such 
increase since 1992, when struc- 
tural weaknesses and mounting 
debt caused it to cut the payout 
to shareholders. 

Investors wdcomed the the sig- 
nal of confidence, and BP shares 
rose 16%p to close at 399%p. 

Mr David Stamm, chief execu- 
tive, said the BP hoard was confi- 
dent the company could operate 
profitably even with relatively 
low oil prices. “It was the right 
time to share some of the bene- 
fits” of BP’S costazttmg, he said. 

The company warned investors 
not to expect the same pace of 
dividend growth, although it 
“intends to grow the dividend 


progressively". 

The first quarter results 
exceeded analysts’ expectations. 
Replacement cost net profits 
before exceptional items were 
£305m, 32 per cent up on the 
£23lm in the first quarter of 1993. 
Earnings per share were 5.6p 
(45p). After an exceptional gain 
of £23m (£l8m a year earlier), net 
profits were £328m (£249m). 

The company attributed the 
performance to success at cutting 
costs, higher production volumes 
and wider refining margins in 
the US. TTie chemicals division 
returned to profit after 18 
months. 

It was the third successive 
quarter in which BP was cash 
positive excluding proceeds from 
divestments. Net cash inflow 
excluding disposals was £342m. 
although the average North Sea 
oil price in the first quarter was 


8KL92, 25 per cent lower than in 
1993. 

Analysts say BP's ability to 
generate large amounts of cash 
at low oil prices probably per- 
suaded the board it was safe to 
raise the dividend, even though 
the company has not met all the 
targets it set when it cut the divi- 
dend. These were: capital expen- 
diture of $5bn a year or less: 
annual debt redaction of $lbn or 
more: and 32bn in replacement 
cost profits. 

Mr Simon said debt now stands 
at $lL8bn (down $593m in the 
quarter), its lowest level since 
1988. About $4 00m has been 
raised from disposals so for this 
year, with $lbn-$L5bn expected 
for the full year. That would 
bring full-year gearing down to 
66 per emit, according to com- 
pany officials. 

Lex, Page 16 


April 1994 

R#GERS 


Rogers Communications Inc. 


has acquired substantially 
afl of the common shares of 


Maclean Hunter Limited 


for approximately 


$3.1 billion 


The undersigned acted as 
financial advisors to 
Rogers Communications 



ROTHSCH I JLD CANADA LIMITED 



ScotiaMcLeod 


BURNS 

FRYumited 




I TIMES FRIDAY MAY 6.1994 


INTERNATIONAL COMPANIES AND FINANCE 


Barclays chiefs criticised 
by shareholders at AGM 


By John Gapper, 
Banking Editor 


Sir Denys Henderson, 
chairman of ICI and Z en eca, 
stepped into the breach to 
d ftffanfl the nTifljririaw and rWpf 
executive Of Barclays against 
attacks from hostile sharehold- 
ers at the bank's annual gen- 
eral meeting yesterday. 

Sir Denys, a non-executive 
director of the UK's biggest 
bank and chairman of its 
remuneration committee, 
praised the performances of Mr 
Andrew Buxton and Mr Martin 
Taylor amid heated criticism of 
the bank's directors. 

Much of the antagonism at 
the two-and-a-half hour meet- 
ing from members of a 
pressure group called the 
Struggle Against Financial 
Exploitation (Safe), founded by 
unhappy customers of Barclays 
who bought shares to attend. 

There was strong criticism of 


the hank for paying Mr David 
Band, chief executive of its 
BZW Investment hanking arm. 
£L4m last year and for giving 
Mr Buxton a base salary of 
£350,000 this year and Mr Tay- 
lor a package worth £737,500. 

“We are talking ver y large 
telephone numbers, and I can 
understand why yon might 
think they are exc^stve." said 
Sir Denys, who led last year's 
search for a chief executive. 

Barclays appointed Mr Tay- 
lor, who became chief execu- 
tive in January. “Of course he 
has got to earn it now. We will 
be looking very carefully, and 1 
have no doubt that he will 
fully repay oar confidence in 
him," said Sir Denys. 

Sir Denys told shareholders 
that Mr Buxton, who split the 
roles of chairman and chief 
executive after Barclays lost 
£242m in 1992 had faced “a hell 
of a battering from people all 
over the place, and has done it 


with courtesy and grace”. 

Mr Buxton was forced to 
demonstrate that conrtesy 
under acrimonious attack yes- 
terday, with shareholders 
employing a variety of colour- 
ful metaphors to emphasise 
the.tr contempt for the hank’s 
performance and treatment of 
customers. 

One shareholder compared 
Barclays with a football team 
which had responded to relega- 
tion by recruiting “a synchron- 
ised swimming coach" in the 
form of Mr Taylor, a former 
chairman of Courtaulds Tex- 
tiles and ex-Finandal Times 
journalist 

But Mr Buxton was praised 
by one shareholder. Mr Gran- 
ville Whitehead, who told him 
he was "by far the handsomest 
mar) qq thp platform". 

Mr Whitehead said that he 
had spent the meeting sketch- 
ing Mr Buxton and the “ugly 
ducklings" around him 


Bank of Scotland doubles 
pre-tax profits for year 


By John Gapper, 
Banking Ecfitor 


Bank of Scotland yesterday 
affirmed its interest in buying 
a building society to improve 
its deposit base, as it disclosed 
it had more than doubled 
annual pre-tax profits, to 
£268. 7m ($404m) against 
EMR8m last timg- 

Mr Bruce Pattullo, governor, 
said it was gmntig hanks exam- 
ining the possibility of buying 
a society- However, it was not 
involved in discussions at the 
moment, and was unsure about 
the benefits of a 

Mr Pattullo said that in con- 
trast to Lloyds' proposed 
£L8bn purchase of Ghattrohain 
& Gloucester Building Society, 
the bank believed the main 
advantage would be the 
strengthening of its balance 
sheet through increased depos- 
its. 

The hank, which a year ago 
set a target limit of 5 per cent 
asset growth for the year to 
February 28 to maintain capi- 
tal ratios, said assets had 
grown by 6 per cent as it 


expanded its market share of 

hank landing 

Operating profits before pro- 
visions for bad and doubtful 
debts rose 19 per cent to 

£580.2m, against £487 -9m. Ike 

specific provisions charge fell 
22 per cant to £283£m, which 
Mr Pattullo said was “less than 
we would have liked”. 

General provisions for antici- 
pated bad debts which have 
not been identified were 
increased by £30. lm, mnliirling 
a £20.1m charge. Mr Pattullo 
said this was for reasons of 
prudence, and “not in order to 
smooth profits”. 

The main upset was at its 
Bank of Wales subsidiary, 
which recorded a pre-tax loss 
of £4&n because of problems 
at its motor finance arm. Mr 
Pattullo said it had found fur- 
ther bad debts after changing 
provisioning methods. 

Margins rose, helped by a 
£50Qm increase, to £5.4bn. In its 
mortgage portfolio, and more 
high-margin personal lending. 
The hank's liabilities were 
strengthened by a rise tn funds 
held in customer accounts for 


the first time in eight years. 

Fee and WYmmiogjn r i jnenma, 
an area in which the hank has 
been regarded as weak, 
increased by 15 per cent to 
£282. 6m. Some £147m of this 
came from fees and commis- 
sions income from branches, 
which rose 52 per cent 

The tier 1 ratio of core capi- 
tal to risk-weighted assets 
remained at 5.8 per cent in 
spite of the asset growth, and a 
10.5 per cent increase in the 
dividend to 5.06p, against 457p. 
This figure includes a proposed 
final dividend of 3J8p. 

Operating costs rose 4 per 
cent to £361.7m. against 
£346Jm, althoug h the ratio of 
costs to income fell to 4&6 per 
cent from 50.6 per cent Staff 
numbers have fallen 10 per 
cent from their 1989 peak 
through natural wastage. 

Mr Pattullo said internal 
generation of capital meant the 
hank would be able “comfort- 
ably" to finance asset growth 
of up to 10 per cent this year. 
In London, the bank’s shares 
closed 5p up at 188p. 

Lex, Page 16 


Annual 

Results 

1993 

Banl\V Vustria 


Wassail 
shares gain 
with $269.8m 
purchase 


By David Mflghton in London 


Financial Highlights for the year ended 31st December 


Partial operating profit 


Gross operating profit 


Dividend 


Primary funds 


Total Assets 


1993 

1992 

In ATS billion 

4.2 

2.1 

6.0 

3.4 

8% 

10% 

333 

322 

573 

545 


Copies of the annual report may be obtained from 
Bank Austria Publications Department, Am Hof 2, A-1010 Vienna. 

Fax (1) 53124-113. 


AMB ahead despite Spanish losses 


By David Walter in Ftenkftirt 


Wassail, the UK conglomerate 
which lost tiie bid battle for 
Evode last year, has clinched 
its first deal since 1991 with 
the $2B9.8m acquisition of 
General Cable in the US. The 
proposed purchase is being 
partly funded by a £92-2m 
(S139m) rights issue. 

London investors, who have 
waited for Wassail to make its 
move, immediately gave their 
approval and the shares rose 
I8p to a new high of 320p. 

The purchase of General 
Cable, which makes power, 

fA mTnmyjf-ftijfmg and mnomiwr 
product cables, will more than 
doable Wassail’s tur n o ver and 

increase US sales to more thaw 
three-quarters of the total. 

Mr Chris Miller, chief execu- 
tive, said: “We are consciously 
taking a bet on America." 

Hr Mill er said General Cable 
was an ideal target for Was- 
sail , as it had suffered from 
under-investment and per- 
formed poorly relative to its 
competition. It barely broke 
even on sales of 2763m (£510m) 
last year. 

The main vendor is Ameri- 
can Premier Underwriters, for- 
merly The Pom Central Cor- 
poration, a financial service 
group winch partly demerged 
General Cable in 1992. “It is 
just the sort of owner you like 
to bny from," Mr Hiller 
who described General Cable 
as “a corporate orphan". 

The bulk of the consider- 
ation covers the purchase for 
$169.8m, a 30 per cent dis- 
count, of a loan note issued by 
General Cable to its parent 
Wassail Is paying an addi- 
tional $345m for APTTs 54 per 
cent of the ordinary shares 
and has made a $38. lm tender 
offer for the remainder which 
are traded on Nasdaq. 

Hr Paul Beaufrere, an ana- 
lyst at Janies Capel, said he 
expected the deal to be neutral 
at wors t for Wassail's earnings 
this year and that next year 
there should be “significant 
enhancement”. 

On a pro forma basis the 
enlarged group would have 
had gearing of 18 per cent at 
the end of next year. The 
terms of the rights issue are 
one-fbr-four at 250p. 


Aachener nnd Mflnchener 
Beteiligungs (AMB), Ger- 
many’s second-biggest insur- 
ance group after Allianz, 
reported net profits of DM85m 
($5Qm) for last year, up from 
DM73m. 

The increase was achieved in 
spite of a sharp fall in operat- 
ing profits from mainstream 
insurance activities. These fell 
to DM147m from DM289m. 
They were hit by a number of 
factors, inelnding large losses 
at the two Spanish subsid- 
iaries. 

The group has been in the 
throes of an intense reorgani- 


sation over the past year. The 
most Important move was the 
sale of a majority interest in 
tiie BfG Bank bo Credit Lyon- 
nais. the French bank, con- 
cluded at the end of 1992. 

After years of lasses, the 
group benefited from a special 
dividend of DM24. 6m last year 
as part of the tarns of tiie sale. 

Total unconsolidated pre- 
mium income for the group 
was DM144bn, up 8B per cent 
Pre-tax profits from continuing 
businesses fell to DMlG5.5m 
from DM111 -3m, while the divi- 
dend for 1993 will be 
unchanged at DM14 a share. 

AMB predicted that the 1994 
result would at least match 


1993, in spite of the long- 
awaited liberalisation of the 
German insurance market this 


g limm er. 

The ai" 1 is to take pr emi u m 
iwmma up to DM15.5 bn in the 
current year. 

Mr Wolfgang Kaske. chief 
executive, said the group had 
implemented a wide-ranging 
rationalisation ahead of the 
ope n in g up of the domestic 
insurance market under Euro- 
pean Union legislation on 
July 1. 

He predicted competition 
would gradually increase in 
the German market over the 
next few years. 

This would be reflected m 


new products and pressure on 
prices, although ho said the 
In itial impact of the changes 
would be limited. 

It has being tidying up Us 
group structure, acquiring 
majority control of the numer- 
ous satellite companies in the 
AMB orbit. 

For example, the group has 
taken its holding in Volkaflir- 
sorge. a large German Insur- 
ance company, to 75 per cent 
from 50 per cent. 

AGF. the French Insurance 
group, owns 33 per cent of 
AMB. balanced by a block of 
shores owned by large German 
institutions such as Dresdner 
Bank. 


Turnround at Avesta Sheffield 


By Christopher Brown-Humes 
in Sto ck holm 


Avesta Sheffield, the Swedish- 
British stainless steel pro- 
ducer, yesterday struck an 
Optimistic note about prospects 
in 1994 after a strong recovery 
is the first quarter. 

The group, which is 40 per 
cent owned by B ritish Steel, 
made a SKrlllm ($14m) profit 
after financial items, compared 
with a SKr43m loss in the same 
1993 quarter. The loss for the 
whole of last year totalled 
SKi98m. 

It said the performance had 
benefited from higher demand, 
cost-cutting and changes to‘ 
inventory prices. 

Mr Per Molin, president, said 
the improved profits level was 


expected to be maintained over 
the rest of the year, against a 
background of general eco- 
nomic recovery in the western 
world. 

He forecast a continued 
upturn in demand for the 
group’s products, but warned it 
might not be at the same rate 
as in the first quarter because 
of restocking. 

He noted that prices were 
recovering but “they have not 
yet readied a satisfactory level 
and are stfil below 1993 aver- 
age levels”. 

Demand for the group’s main 
products, cold rolled sheet and 
plate, rose strongly in early 
1994 Together with the weaker 
krona, the trend enabled the 
group to lift sales to SKr358bn 
from SRi3.4Sbn. 


Sales of cold rolled sheet and 
plate rose to SKAMbn from 
SKrl.80bn but the division 
tumbled to a SKrfim loss from 
a SKr27m profit because prices 
were lower. A recovery is 
expected over the rest of the 
year. 

The group's hot rolled plate 
division achieved a SKr45m 
profit after last year’s 
SKrl8m loss, as turnover 
climbed to SKr635m from 
SKT587m. 

Avesta, which was formed in 
late 1992 from a merger 
between Avesta and the stain- 
less steel interests of British 
Steel, recently approved a 
SKrS&5m rights issue. 

It plans to invest more than 
SKrlbn over the next three 
years. 


Philips agrees 
to buy AEG 
lighting unit 


By Ronald van da Kid 
In Amsterdam 


NEWS IN BRIEF 


Volkswagen 
and Skoda 
agree accounts 


Volkswagen, the German 
carmaker, ■mid simda, its par- 
tially-owned Czech unit, had 
finally agreed its annual 
accounts. Rente- reports from 
Wolfsburg. 

Problems had existed 
between VW and Skoda over 
VW's accounting for 1993 
which showed Skoda had made 
a net loss of DM246m ($144m) 
after a DM23Sm profit in 1992. 

The loss resulted almost 
exclusively from adjustments 
to Skoda’s accounts to bring 
thpm into line with interna- 


tional standards which include 
more depreciation and write- 
downs. 

Without the adjustments, 
Skoda would have made an 
DM8m profit in 1993 after a 
DMTOm profit a year earlier, 
VWsaUL 


that it is interested in buying a 
large stake in Creditanstalt, 
which S&P rates A-l, from the 
Austrian government 


Groupe Bull talks to 
potential partners 


Credit Suisse rating 
‘could be affected’ 


Standard & Poor's, the interna- 
tional ratings agency, said an 
acquisition by CS Holding of a 
substantial stake in Creditan- 
stalt-Bankverein, Austria’s sec- 
ond largest bank, would be 
likely to affect the credit qual- 
ity of CS Holding’s main unit 
Credit Suisse, Renter reports 
from New York. 

CS Holdings has confirmed 


Groupe Bull, the French 
computer group, is running at 
least five sets of talks with 
potential industrial and tech- 
nological partners and will 
probably announce partner- 
ships in the wprt few months. 
Mr Jean-Marie Descarpen tries, 
chairman said, Reuter reports 
from Paris. 

“In coming months we will 
probably announce a confirma- 
tion of our partnerships with 
NEC and IBM but also with 
other enterprises," he said. 


Philips, the Dutch electronics 
manufacturer which and the 
world's largest producer of 
light bulbs, has agreed to buy 
AEG Libhttechnik. a lighting 
engineering company, from 
AEG of Germany. 

The Dutch company declined 
to reveal the purchase price, 
but said AEG Lichttechnik was 
profitable and had generated 
sales of nearly DMSOOm 
($l?4m) last year. 

“Philips Lighting considers 
the acquisition essential for its 
position in Scandinavia and In 
the main European lighting 
market. Germany." it said. The 
transaction reflects the desire 
of AEG, part of the 
Daimler-Ben2 group, to concen- 
trate on its core electronics 
activities. 

AEG Lichttechnik. which 
focuses mainly on professional 
lighting equipment, has a plant 
near Hanover in Germany and 
a subsidiary in Finland. Idman 
Oy, which operates a factory in 
Mantsala. 

The company has a total 
workforce of 1,200. 

Philips said the AEG busi- 
ness would continue to use Its 
own brand names and would 
operate in parallel with the 
Dutch company's own lighting 
sector. 

Lighting is Philips’ most 
profitable business. The sector 
posted an operating profit mar- 
gin of 13 per cent in the 1994 
first quarter. 


annuaiTre 

ACCOUN^ 

.19 



"The Group's performance 
during the year reflected 
more stable conditions in 
the United Kingdom 
economy and first evidence 
of a slow emergence from 
deep recession. Germany 
once again produced 
excellent results and was the 
major contributor to Group 
profits. 

Other continental operations 
continue to reflect the 
recessionary conditions of 
1993 but some recovery is 
expected during 1994. 
Outside Europe, there are 
good prospects in the 
economic recovery on the 
east coast of America and in 
the growing Israeli market" 


From Ike Statement of the Ckaintun, Jim Owen 


SUMMARY OF GROUP RESULTS 


TURNOVER 


£3/507.9m £3 ,443 3m 


PROFIT BEFORE INTEREST £H7.7m £201 Dm 


If you would like a copy of the 
1993 Annual Report please write 
to: 

The Secretary, RMC Group p.l.c., 
RMC House, Coldharbour Lane, 
Thorpe, Egham, Surrey, TW20 STD. 


PROFIT BEFORE TAXATION Cl.77.8m £Z66.4m 


EARNINGS PER SHARE 


39.4p 31 2p 


DIVIDENDS PER SHARE 


2L0p 2 0£)p 


The Annual Genera) Meeting will 
be held at the Four Seasons Hotel 
(formerly the Inn on the Park), 
Hamilton Place, Park Lane, London 
Wl, on 27th May 1994.it 11.30 am. 


RMC 


RMC Group p.l.c. 

RMC House, Coldharbour Lane. Thorpe, Egham, 
Surrey TW20 8TD 


Operating internationally in Austria, Belgium. Czech Republic. Denmark France German 
Hungary, Israel, Netherlands, Portugal, Republic of Ireland, Spain, United Kingdom 'altftte USA. 


V Afri 1 * 1 


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FINANCIAL TIMES FRIDAY MAY 6 1994 


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US carrier posts 
$ 7 1 . 6 m deficit 
in first quarter 


Hr 


By Richard Tomkin$ 
in New York 

Continental Airlines, the 
Texas-based carrier that 
emerged hum its second bank- 
ruptcy in April last year, yes- 
terday reported a net less of 
571.6m for the first quarter. 

It blamed the effects of an 
exceptionally severe winter on 
its operations in the north-east 
US and teething troubles asso- 
ciated with the rapid expan- 
sion of its low-cost, 
no-frills services an short-haul 
routes. 

The loss appeared to mark 
an improvement on the net 
loss of 5107.9m. in last year's 
first quarter, hut the previous 
year’s figures are not strictly 
comparable because the 
company was recapitalised 
when it emerged from bank- 
ruptcy. 

A better indicator was the 
performance at the oper a t in g 
level, where operating losses 
were unchanged at 555.2m. 

This was in sharp contrast 
with last year's fourth quarter 
when the company reported 
operating profit of 585m, com- 
pared with operating losses of 
543.7m the previous time. 

Most other US airlines have 


reported first-quarter losses 
this year because of bad winter 
weather or low-fare competi- 
tion, but most have improved 
their performance from last 
year because of a slight 
increase in revenues and a big 
fall in fuel costs. 

Continental's revenues were 
unchanged at 5l.4bn, and 
nearly all the reduction in net 
losses was attributable to a tax 
credit of 5428m 

Fully diluted loss per share 
was 5&86. 

Mr Robert Ferguson, chief 
executive, said the severe win- 
ter had cost the airline an esti- 
mated 528m in lost revenues. 
That and teething troubles 
with the expansion of its low- 
cost nigh ts had raiiwvf thfl pro- 
portion of scheduled services 
completed to fall to 9&3 per 
cent from S&3 per cent 

Mr Ferguson said the opera- 
tional problems had been 
mostly corrected and the com- 
pany had achieved a signifi- 
cant operating and bottom-line 
profit in Mann>i 

He said the low-cost opera- 
tion - dubbed CAIite - was 
exceeding its finawriai targets 
and Continental was “ever 
more confident" of its 
success. 


Brazil’s biggest 
airline cuts costs 


By Angus Foster 
inSSo Paulo 

Varig, Brazil's largest airline, 
yesterday announced a series 
of cast cutting measures in the 
face of continuing financial 
difficulties. 

Varig hopes the measures, 
the latest of its restructuring 
moves, will lead to monthly 
savings- of up to jfim. 

The company, which has not 
made a profit since 1989, said 
that it would seek to reduce its 
24,000 workforce by up to 10 
per cent 

Staff numbers have already 
been cut from 29,000 under pre- 
vious restructurings. 

Varig also intends to reduce 
its regional network in Brazil. 

In March, the company 
suspended lease payments on 
50 aircraft for two months in 
order to renegotiate Its leases. 


which it thought too expen- 
sive. 

Varig said the payment sus- 
pension, due to expire later 
thin month, had the harking of 
its main Braz ilian l anding 
hanks. 

The banks wanted to see a 
reduction In the company’s 
annual lease costs of 5500m, 
negotiate! before the down- 
turn m the airline industry. 

Varig, which is privately 
owned, made losses of $97m in 
the year to December 3L The 
company's main problems 
r emain the stQl-depressed Bra- 
zilian market and a stubbornly 
high cost base. 

Other recent attempts to 
reduce costs have Included a 
reduction in fleet size and 
efforts to lift operational effi- 
ciency, which the company 
said could lead to annual 
savings of 5snm. 


Jefferson 
Smurfit 
prices US 
offer at $13 

By Deborah Hargreaves 

Jefferson Smurfit, the Irish 
paper and packaging group, 
yesterday priced an Initial 
public offering of 19.25m 
shares in its OS division at 
513. The co m pan y also offered 
$4Q0m of senior notes in Con- 
tainer Corporation, which is 
owned by its OS arm. 

The equity offering is part of 
a $2bn refinancing plan for 
Jefferson Smurfit Corpora ti on 
in the OS, which is partly 
owned by two equity funds 
run by Morgan Stanley, the OS 

investment bank. 

Mr Michael S mu r fit, chair- 
man of the Irish group, said he 
was pleased the co m pany had 
achieved the offering "despite 
extremely difficult and vola- 
tile markets’*. 

In addition to the 19.25m 
shares to be sold to the public, 
a unit of the parent Jefferson 
Smurfit group will also buy 
11.54m shares at the same 
price as the public offering. 

The remainder of the refi- 
nancing comes from a bank 
facility of 5L65bn, of which a 
5900m loan will be delayed 
until December. That loan will 
be used by the company to 
redeem 5844m of junk bonds 
which date back to 1999. 

The refinancing will save 
the OS company 568.3m a year 
in interest payments on its 
debt burden, which is largely 
PflMta up of junk bonds. The 
OS company has struggled 
under Irish interest payments 
and weak paper and pa rkaping 
markets, pushing it into the 
red in the past three years. 

However, company officials 
say the market is on the 
upturn again with prices for 
liner hoard - its main product 
- increasing by 555 a tonne 
over the past five months and 
another price rise scheduled 
for June. The price increases 
win add 5110m a year to the 
company’s bottom line. 


Norwegian insurer 
suffers steep fall 

Vital, the Norwegian life 
insurance and pension group, 
suffered a fall in first-quarter 
pre-tax profits to NKr63m 
(58.7m) from NKi812m, writes 
Karen Fossh in Oslo . 

Profits were hit by a reduc- 
tion in the value of the group's 
bond portfolio following a rise 
in interest rates. 


Wall St awaits a takeover’s demise 

The $8bn Viacom-Blockbuster deal is fading, writes Martin Dickson 


D ead, but just not 
buried. 

That was the epi- 
taph pronounced this week by 
one Wall Street analyst an the 
proposed $8bn takeover of 
video retailer Blockbuster 

Rntpriainnipnt by VlaCOQl, the 

film, television and publishing 
group. The takeover was 
announced at the start of this 
year as part of Viacom's suc- 
cessful bid for Paramount 

flnrnmimlHitinna 

Neither Viacom nor Block- 
buster is acknowledging the 
deal is off, and the merger 
agreement gives Hww until the 
end of September to consum- 
mate the marriage. 

However, it is hard to find 
anyone on Wall Street who 
fhiTika the deal will go through 
in anything like its present 
rnrut , and there are indications 
the two sides are discussing 
various forms of co-operation 
short of a mo wr 
In a letter to shareholders 
this week. Mr Wayne 
Huizenga, Blockbuster chair- 
man, there could be no 
assurance its board would be 
able to recommend a deal. 
Formal or not, the of 

fh» w i g a garnwit hog tt gnifiwmt 

fm pKratinng for both parties. 
For Viacom, it trtmrgflps pres- 
sures to »*n off asset s acquired 
when it took over Paramount. 
For Blockbuster, it creates 
question marks over the 
group's strategy, and makes it 
a potential takeover target for 

annthpr media company. 

The death knell has been 
sounding for the deal ever 
since Viacom took over Para- 
mount in Mai-oh, as victory 
sharply depressed the price of 



Wayne Huizenga: no assurances of board backing 


Viacom stock. Investors feared 
the company had overpaid for 
the film and publishing group, 
and burdened itself with too 
much debt. 

That in turn endangered the 
Blockbuster deal , for Viacom 
proposes paying for the video 
retailer in stock: 0.08 of a share 
of Class A stock and 0. B05 15 of 
a share of non-voting q1»sb B 
stock for -each Blockbuster 
share. Blockbuster sharehold- 
ers would also get limited pro- 
tection against poor Viacom 
share-price performance - an 
award of up to 0.13829 of a 
share on the first anniversary 

Of thg onnanmmatinn of frha 

merger. 

However, based an Viacom 
stock’s trading price yesterday, 
that package would give Block- 
buster shareholder s only $21% 
a share, 59% a share thaw 
the level at which Blockbuster 
shares were trading before Jan- 
uary's annnnwrAiwpn t Block- 


buster shareholders are hardly 
likely to accept such a deal 
This is reflected in that the 
company's shares are trading 
substantially hf ghw than the 
bid terms, at around 526%. 

The two sides could try to 
restructure the deal, but there 
are no signs of Viacom being 
prepared to do so. 

Instead, the companies 
appear to to be discussing a 
more Hmitad form of coopera- 
tion, such as renaming Via- 
com’s Showtime cable televi- 
sion film channel “The 
Blockbuster Channel", and 
possibly using it as an outlet 
for movies made by Blockbust- 
er’s Spelling Entertainment/ 
Republic Pictures Hollywood 

film unite 

For Viacom, the main attrac- 
tion of the marriage with 
Blockbuster was always finan- 
cial. As part of the merger 
deal. Blockbuster agreed to 
makp a 5L25bn investment in 


Viacom stock (on top of the 
5600m it had committed earlier 
in the Paramount bid), giving 
the company cash to boost its 
offer at a crucial moment in 
the takeover battle. 

The merger also promised to 
bolster Viacom's balance sheet 
- weighed down with bid- 
related debt - with the injec- 
tion of Blockbuster's strong 
cashflow from its retailing 
operations. 

If the merger does not go 
through, Viacom will come 
under increased pressure to 
sell off peripheral Paramount 
assets to lower debt. It is 
already weighing offers for 
New York's Madison Square 
Garden arena, thoug h Mr Sum- 
ner Redstone, Viacom's chair - 
man, insists it does not intend 
to sell any “strategic” assets. 

For Blockbuster, the main 
attraction of the Viacom mar- 
riage was to diversify the 
group away from the video 
rental market, which is expec- 
ted to face strong competition 
from inter-active television 
over the next decade. 

If the deal is ahanrinnpri, Mr 
Huizenga may have a tough 
job convincing Wall Street the 
company has an equally- 
compelling strategy for 
growth. He could also have a 
hard time convincing share- 
holders the equity investment 
already made In Viacom is 
worthwhile. This is because 
the stake was bought at 555 per 
Viacom B share against a stock 
market price of 526 yesterday. 
Abandonment of the marriage 
would allow Blockbuster some 
compensation for this drop, but 
possibly not enough to cover 
the investment 


Video group 
to develop 
$lbn park 

Blockbuster Entertainment 
yesterday said it was forming 
a Blockbuster Paris division as 
part of the group's transforma- 
tion from a video rental com- 
pany to a full-scale entertain- 
ment conglomerate, writes 
Richard Tomkins. 

The division’s first project 
will be the development of the 
$lbn Blockbuster Park, a 
sports and entertainment com- 
plex that the group wants to 
build on a 2^00-acre site near 
Fort Lauderdale in Florida. 

If the project goes ahead, 
one function of the complex 
will be to serve as a home to 
two sports teams owned by Mr 
Wayne Huizenga, Blockbust- 
er’s chairman - the Florida 
Panthers, an ice hockey team, 
and the Florida Marlins, a 
baseball team. 

At one end of the complex 
will be a 20,000-seat hockey 
arena fra* the Panthers and at 
the other a 45.000 to 50J100- 
seat baseball stadium for the 
Marlins, in between an enter- 
tainment village will feature 
restaurants, shops and a 
theme park. 

Broadcast facilities, a film 
and television production stu- 
dio, a 15- to 20«creen cinema, 
virtual reality entertainment, 
a sports museum, a golf course 
and a hotel are also planned 
for die site. 

Blockbuster already owns 
1,800 acres of the site - mainly 
scrubby marshland straddling 
the Broward and Dade county 
lines. However, the project has 
to overcome environmental 
objections and win approval 
from the planning authorities 
before it can go ahead. 


Travel agent finds 
tax ‘discrepancies’ 


By inn Rodger and 
Aiufeew Jack 

Reiseburo Kuoni, the Swiss 
travel agency group, is in dis- 
cussions with the UK Inland 
Revenue about “discrepancies" 
dating back to the late 1970s. 

Mr Peter Oes, chief execu- 
tive, said yesterday he expec- 
ted the investigations to be 
completed by the autumn. 

The company is believed to 
have approached the Inland 
Revenue and launched its own 
investigation nsing an external 
auditor after discovering the 
tax problems. 

A spokesman for Kuoni said 
no provision had been made 


for the charge in its 1993 
accounts, and any additional 
tax payments would be shown 
in the 1994 results. 

He said the company would 
probably annoimnn thn amount 
as soon as the investigation 
was complete, especially if it 
would have a material effect 
an the year's results. 

Mr Oes forecast that net 
income this year would reach a 
record. Net income last year 
slipped to SFr44.7m ($30.8m) 
from SFr499m in 1992. 

Kuoni is one of Europe’s 
largest agents with revenues 
last year of SFr2.4bn. Domestic 
business accounts for nearly 
half of company revenue. 


Improved prices 
help to lift 
profit at SSAB 

Firmer prices and increased 
volumes helped SSAB, the 
Swedish steel group, lift first- 
quarter pre-tax p rofi ts sharply, 
to SKr478m (582.9m) from 
SKr23m, writes Christopher 
Brown-Hunes. 

It says profits for the full 
year could be nearly twice last 
year's SKr776m, provided cur- 
rent market trends continue. 

The group, one of Europe's 
few profitable steelmakers, 
P Otod that supply and demand 
in western Europe had 
improved during the spring. 
“This should improve chances 
for certain price increases dur- 
ing the second half of the 
year," it said. 


Ares-Serono sells its 
diagnostics division 


By lan Rodger bi Zorich 

Ares-Serono, the Geneva-based 
leader in human fertility 
drugs, is selling its diagnostics 
division to BioChem Pharma of 
Montreal for $44m in cash and 
521m in notes. 

The group is developing bio- 
technology-based drugs for 
tr e atin g infertility ar>d multi- 
ple sclerosis. 

It plans to invest SFr300m 
($20&n) in ex panding produc- 
tion facilities in Switzerland. 

The deal is the latest in a 
series of transactions this week 
that illustrates a fresh drive by 
pharmaceutical companies to 
focus resources on their most 


competitive b usinesse s. 

Earlier this week Roche, the 
Swiss group, took over Syntex 
of the US for 55.3bn. 

The Anglo-US drugs group 
SmithKline Beecham 
announced it would buy Diver- 
sified Pharmaceutical Services, 
a US drug distribution group, 
for 52.3bn, while Eastman 
Kodak put its three healthcare 
divisions up for sale. 

Ares-Serono’s diagnostics 
division was established in the 
1970s and was boosted substan- 
tially with the purchase of 
Baker Instruments of the US in 
1988. It had sales of $89.3m last 
year, 12 per cent of the group 
total. 


DSM invites its shareholders 
General Meeting 

The DSM Annual General Meeting will be held at the company's 
head office at Het Overioon 1 , Heerlen (Netherlands) on Monday, 
May 30, 1994, at 14.00. The agenda with notes and the annual 
report can be obtained free of charge from the company's head 
office and from the following banks: 

United Kingdom: S.G. Warburg & Co. Ltd., London 
Netherlands: ABN AMRO Bank NV, Amsterdam 

Shareholders who wish to attend the meeting should depotit their 
shares with one of the above-mentioned banks, not later than 
Wednesday, May 25, 1994, against a receipt entitling the holder to 
attend the meeting. Identification should be made available upon 
request The above also applies to those who derive the right to 
attend the meeting from their rights of usufruct or lien on shares. 

Heerlen, May 6. 1994 
The Managing Board 



DSM 


DSM b an International chemicals and 
rrutertato group wth is head office In 
Heerlen (Netherlands). The company 
currently has mmual sales of around 
f8 button and employs about 21,000 
people. DSM's activities hare been 

organized Into nine dMstonsr 
Hydrocarbons, Polymers, Bascomers, 
Chemicals & FenSbers, Fine 
Chemicals, Resins, /bsrib Products, 
Engineering Phstlc ftwtoas and 
Energy. DSM shares are listed on the 
stock exchanges of Amsterdam, 
Ddssektotf Frankfurt, Baade, Geneva 
and ZQrich and are traded on 5£ttQ 
bit. In London. In the USA, DSM has 
established an ADR program via the 
Bank of New Tort 


DSM N.V., P.O. Box 6500, 6401 JH Heerien (Netherlands}, teL (31) 45 78237 1 .fax (3 1)45 740455. 


Thm adwrtlamnn (a twuud in compliant* wHh the to 
and ibo Ropnbtic of hnload LimJ lad (*1ta London Stock 
for. or purchase, mmy muilins. Application b 


nf The totmiattoral 8tocfc Rirtumen of tba PnHod Kingian 

Lit does not eoaatituiau imitation to the pnbllE to aiboeribe 

to lbs London Stodc Ihrhmg, for tlm ■ rfm i iwin to the Official Lift 


tflhc nnii-p «tmrp cupttil of H i dl a n d AuaiU PLC PTJio Cmnpony *V It to cmxm n d that Aalln p ri In tba nhurtuof Ibe Cmya y wfll 

(Umtiw on 16 Uip, 1994. 

MIDLAND ASSETS PLC 

(Incorporated m England and Wake WWJ*r tbe Campaoice Ad 1966 wttli BegMcrOd No. 3837914) 

Placing and Intermediaries Offer by Guinness Mahon & Co. Limited 
of 17,000,000 Ordinary ShareB of 5p each 
payable in full on application 


Shore Capital 

(folbnvras: the Plating and Inicnnediarim Offer hy Gain 


i ICahon ft Co. Limited) 


AulAorund 

t 

\ poo poo 


IB Onfinaiy Shares of 2p oaefa 


latacd oad to bt 
fully paid 

l 

8MM00 


Uatint Particular* rrlaUng to the Company horn boon ippvnd by the Lcmdoo Sleek ftriim p aa inquired by the Hating rule* 
madtMUHfar Section 142 ti" Urn FumatinlfiervimAtt >968 and ara available during rnmalbodaeoaboan on any weekday tSaturdayi 
and public Widuy mcaptodj from the Company Aa moncm n nnt a Office, the Lcndna Stock Xtrh n apt Cnpol Cocrt gntnuxn. off 
BiitMomwi Lamr. Lmuton. BC2M I HP. hy adbcUen only up teand I nclndin gB Mnr. 1»4 an d d uring io n nm l burin — h im up 
to and mriodiaff IS May. 1994 from: 


Onlanoo Mahon ft Co. Limited 
32 St. Ilaqr at Hill 

Umdoo KC3P3AJ 

(o member of^ The SkuHUbo and Ftenrai Authority Limited) 


OnrinttctbrSCaUnM 
25 Luke Street 
London BC2A 4AB 

(a member of The Securities and Futures Authority tJnritrd 
Bod lb Ii lF 1 ^ ftwlt 


and tbs regimered office oflhn Company, 
29-Kina Aran. Landau. ECSV SOQ 


6 May. 1994 


BUSINESSES FOR SALE 


Appear h fl» finondal Ttaaa 
on Tuesdays, Fridays and Safirntays. 

For fceUwr Infor ma tion 

or to Mtortto In Ms wefcn 


Kart Loynton on 071 873 4780 


ji 

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INDEX1A 

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GENERALE 


SOCIETE GENERATE DE BET, GIOUE 
Societe Anonyme 

Incorporated in Brussels by Royal Decree dated 28 August 1822 
Registered Office: 30 rue Royale, 1000 Brussels 
Tirade Register Number : Brussels 17487 

The Board of Directors b pleased to invite shareholders to assemble at the Company's registered office, rue Royale 30, Brussels oa Wednesday 18 May 1994 at 10-30 am 
* for the ordinary general meetin g, in accordance with the terms of Article 22 of the Memorandum and Articles of Association, to vote on the following agenda; 


AGENDA 

1. Board of Directors’ special report and Audit ora’ report, dra wn np for cases of duality of 
interest 

2. Board of Directors and Auditors' reposts for the 1993 financial year. 

3. Approval of the Company's annea l a c counts: 

Proposal to approve the annual acronnts as at 31 December 1993, including the distribution at 
a net dividend of BEF 85 to aan-AFV shares and of BBF 88-50 to AFV shares. 

4. Discharge u members of the Board of Directors and to the Auditors : 

Proposals to discharge members of the Board of Directors end the Auditors from performance 
of their functions during the 1993 financial year. 

5. Elections according to the Memorandum and Articles of Association : 

Proposal to elect Mesas Joseph FONSCH and PhOrppe LiOTTER and re-elect Messrs Philippe 
BODSON, Alain CHAIGNEAU. Valfcre CROES, Etienne DAVIGNON. Jean-Claude 
DEHOVRE, Francois de LAAGE de MEUX, Bernard EGLOFF, Jean GANDOIS, Martrice 
LEPPENS. Philippe MALBT, Girard MESTRALLET, Xavier MORENO, Patrick 
PONSOLLE, Piet VAN WASYENBERGE, Karel VINCK and Gdrard WORMS, as directors. 

at the end of said meeting fiorthe extraordinary general meeting to vote on the foltowing agenda: 


AGENDA 

1. Capital increase: 

Proposal to increase the capital by incorporating the sum of BEF 5,357,138,422 to be 
withdrawn from the ’share premium” accoonL 

2. Creation of new "parts de reserve* shares : 

Proposal to create, to represent le above-mentioned capital increase. 6,418,279 new fully paid 
"parts de reserve" shares, with the same rights and benefits as the existing non-AFV "parts de 
reserve" shares, as from 1 January 1994. 

3. Allotment : 

Proposal to allot the new "parts de reserve" shares to the shareholders m the proportion one 
new "part de reserve" share for ten old ones. 

4. Acknowledgement ■ 

Proposal to acknowledge the effective carrying oat of the capital increase. 

5. First am endment to the Memorandum and Articles of Association : 

Proposals to amend Article 3 of the Memorandum and Articles of Association in accordance 
with the new capital situation. 

6. Special report by the Board of Directors explaining the purpose of and reasons behind the 
proposal mentioned item 7 below. 

7. Waiver of the benefits assigned to AFV "parts de reserve" shares : 

Proposal to irrevocably waive transferring to the raceme allocated as from 1 January 1995 to 
AFV "parts de reserve* shares: 

- the tax saving resulting from the exemption allowed muter corporate tax; 

- the additional income Of any) resalting ftonj the exemption in question which might 
apply to participated directly or indirectly. 

8. Second amendment to the Memorandum and Articles of Association : 

Proposal to abolish the temporary provisions in paragraphs 5 to 7 of Article 8 of the 
Memorandum and Articles of Association to bring it in line with the resolution to be adopted 
on the preceding hem. 

9. Powers: 

Proposal to grant the Board of Directors all powers required to cany out the resolutions 
adopted. 

In order to attend these meetings, shareholders should, in accordance with the terms of Artide 19 of the M e m o r andu m and Articles of Association, deposit their shares althc Company's registered 
office by Tuesday 10 May 1994 at the latest, or at one of the fbflowing banks : 


In Belgium 

In France 
In Luxembourg 
In S w itz erlan d 

In G erman y 


Generals Bank 

Batwjm Tnitemr Mpq na 

Banque im tynp 

Basque G£n£ralc (hi Luxembourg 

&6dit Soissc 

Societe de Banque Suisse 

Union de Bsnques Snisses 

Deutsche Bank 
Generate Bank & Co 


Wilhont pre i ud je e mthe tenigof Artidc74. 82. para 2 and 63 of the coordinated laws on commercial eo ra pa ni e s . sharehc&iera who wish to be represented should use ibe form nf jvnry «ghirh W 
available on request. AH praties should reach the company's registered office es soon as possible and by Monday 16 May 1994 at the veiy latest, which dale was laid down by the Board of 
Directors in accordance with the terms of Artide 20 of the McmO ran dam end Articles of Assocutian. 


G. ME5IRALLET • Chief Executive Manager 


R DAVIGNON - Chairman 


Brussels. 27 April 1994 


INTERNATIONAL COMPANIES AND FINANCE 


Fighting fit and looking for aerospace deals 

McDonnell Douglas is emerging from a harsh restructuring with its focus sharpened, writes Paul Betts 

M cDonnell Douglas, on strengthening its core M cP o nnoH Douglas 

the US aerospace aerospace businesses. • 

and defence group, “We've learnt our lesson. In swrep«*(w •• 

130 4? 


M cDonnell Douglas, 
the US aerospace 
and defence group, 
has been building up financial 
muscle. It wants to put itself in 
a good position to take advan- 
tage of inves tmen t ami acquisi- 
tion opportunities for its core 
aerospace business. 

“We have conducted an over- 
all analy sis of our industry and 
identified areas of business 
where an acquisition would 
mnkp sense," Ur John McDon- 
nell. chairman, said. 

The company was consider- 
ing internal investments to 
expand core businesses, as well 
as acquisitions “if an opportu- 
nity comes along at a reason- 
able price". 

However, Mr McDonnell said 
that it was not seeking 
to make a hostile takeover 
hid. 

In particular, it was inter- 
ested in expanding its helicop- 
ter business and satellite 
launch activities, Mr McDon- 
nell said. 

Barely two years ago, the US 
company bad planned to shed 
its helicopter activities as part 
of its restructuring and recov- 
ery programme. However, Mr 
McDonnell said it had now 
decided to keep this business 
and expand it 

He stressed, however, that 
the company was no longer 
interested in diversifying, and 
wanted instead to concentrate 


on strengthening its core 
aerospace businesses. 

“We've learnt our lesson. In 
the late 1380s, I was the prime 
advocate of diversification in 
the company: now I’m the 
prime advocate for aerospace." 
he said. 

The company's sweeping 
restructuring programme, 
which has reduced the work- 
force from 135,000 in 1990 to 
67,000 at the end of the latest 
quarter, has given the group a 
strong capital structure. 

A 20 per cent increase in 
first-quarter operating earn- 
ings, to $259m compared with 
{215m in the same period last 
year, continued to help reduce 
debt 

“We reduced net debt by 
more than {400m in the first 
quarter, and our net debt-to- 
equity ratio is now down to 
036, which is one of the lowest 
in the industry - lower than 
that of our principal competi- 
tors, including Lockheed 
and Martin Marietta,” he 
said. 

The company’s strong recov- 
ery has been reflected in a leap 
in the share price, from about 
{48 at the end of 1992 to around 
{120 this year. 

Mr McDonnell said the out- 
look for the military aircraft 
business remained good. How- 
ever, with continuing pressure 
on government defence bud- 
gets. he expected “a reasonably 





Jut 82 * 1983 94 

Soucott OMSattw m . . 

stable" market rather than 
growth. 

The big challenge for the 
company's military aircraft 
business remains the troubled 
C-17 large transport aircraft 
programme. 

The company reached a set- 
tlement with the US govern- 
ment at the end of last year 
over the Pentagon's purchase 
of an initial batch of 40 air- 
craft. 

Under the settlement, 
McDonnell Douglas ban been 
placed on a two-year probation 
while it makes technical and 
managerial improvements to 




John McDonnell: ‘We’ve learnt our lesson’ 


the programme. The agree- 
ment is estimated to have cost 
the US government $348xn and 
MfiTtonnell Douglas {454m. 

“This gives us mitii the end 
of 1 995 to demonstrate we can 
deliver the aircraft on time, on 
spec, with high quality and at 
an affordable cost if we do, it 
could lead to a programme of 
as much as 120 aircra f t for the 
US Air Force and potential 
overseas sales to the UK and 
other countries, as well as 
some modest sales in the com- 
mercial market," Mr McDon- 
nell said. 

However, if the C-17 failed to 


meet the programme targets 
and the Pentagon cancelled It, 
the cost to McDannefi Douglas 
would be about $2bn in lost 
sales a year daring the next 
decade. “This programme win 
account for about 20 per cent 
of our grwp minpnt business in 
the Ttprt decad e," Mr McDon- 
nell said. 

Although the company is 
trailing Boeing and the 
European Airbus consortium 
in the commercial aircraft 
field, its prospects have been 
boosted by Saudi Arabia’s deci- 
sion to buy up to {&2bn worth 
of air finers for Saudia, its 


n a h nnai carr ier, from Boeing 
amii McDonnell Douglas. 

Mr McDonnell said Saudia 
was expected to complete its 
analysis of its fleet renewal 
and expansion needs “in the 
next TnwnHi or two", and the 
company was hoping to win a 
"significant slice” of the order. 
It is o fferi ng its MD-11 three- 
engine airfinpr as well as the 
narrow-bodied MD-90 and 
MD-80 aircraft. 

Mr MoTVmnpJi conceded that 
the world airline industry was 
continuing to have “a hell of a 
time", hot he expected the air- 
liner market to bottom this 
year. 

“I do see signs that we are 
mmfng oat of the depression. 
I’ve been through three cycles. 
People have speculated that we 
would go out ctf the commer- 
cial business. It hasn't 
happened yet and it won't 
happen in this cycle," he 
said. 

The company intended to 
remain in its two niche 
markets in the commercial 
business, with its MD-11 wide- 
bodied and MD-80, MD-90 and 
the planned MD-95 narrow- 
bodied airliners. 

However, Mr McDonnell said 
he had not abandoned the idea 
of fh rg yn g an international alli- 
ance for the commercial air- 
craft business, with foreign 
partners acquiring up to 49 per 
cent of it 


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FINANCIAL TIMES FRIDAY WAV 6 IW4 




First-quarter 
improvement at 

Dyno Industrier 

...i imnArtfint mil 


By Karen Fossil in Oslo 

Dyno Industrier, the 
Norwegian chemicals, explo- 
sives and plastics group, yes- 
terday reported a sharp rise in 
first-quarter pre-tax profit to 
NKriaOm ($18m) from NKr75m, 
helped by increased demand 
and hig her volumes. 

Dyno expects the positive 
development to continue 
throughout the year, helped by 
the eynw gin g economic recov- 
ery in European markets and a 
slight increase in coal produc- 
tion in North America, which 
will contribute positively to 
explosives activities. 

First-quarter sales rose to 
NKr2-26bn from NKrl.91bn, 
boosted by a combination of 
growth in volumes, the stron- 
ger dollar and higher prices for 
a number of raw materials. 
Operating profit increased to 
NKrl47m from NKrll4m. 

Dyno warned, however, that 
increasing prices for the 


group’s most important row 
materials purchases could cre- 
ate pressure on margins for the 
remainder of the year. 

• Vard, the troubled Norwe- 
gian cruise and ferry group, 
has cut first-quarter pre-tax 
losses by more than half to 
NKr57-3m from NKrl27.5m. 

The result was better than 
analysts had expected. Vard 
said the improvement was doe 
to increased passenger volume 
for its ferries and reduced 
shore-side expenses and higher 
turnover for in cruise division. 

Operating revenue rose to 
NKrl-Sbn from NKrl.Sbn. Oper- 
ating expenses increased to 
NKrl.5Sbn from NKrl.44bn 
leaving operating profit up to 
NKr96.7m from NKrll.O&n. 

Financial items charged 
against first-quarter accounts 
increased to NKrl5&9Sxa from 
NKrl3S.4lm partly as a result 
of a rise in interest expenses to 
NKrl92ra from NKrKfflm in the 
same period last year. 


Canadian Pacific 
in rail merger talks 


By Robert GWibens 
in Montreal 

Canadian Pacific plans to 
reach agreement with the fed- 
erally-owned Canadian 
National Railways (CN) for a 
merger of their eastern Canada 
railway systems late this 
month, said Mr William Stin- 
son, CP’s chairman. 

The deal could take effect 
from January 1 1996. 

Both sides believe the 
merger is the only way to deal 
with overcapacity in eastern 
Canada and federal officials 
support the strategy, Mr Stin- 
son said after CP's annual 
meeting in Calgary. 

“Overcapacity is draining 
hundreds of millions of dollars 
yearly from both railways," he 

said 

"Trade routes have shifted 
more north-south and we have 
hundreds of miles of non-prof- 
itable track.” 


CP*s western rail system, 
which has been expanded to 
carry rising volumes of export 
wheat and other commodities, 
is profitable and would not be 
part of the merger. A new com- 
pany 50-50 owned by CP and 
CN would operate the eastern 
system from Manitoba to the 
Mari times. 

“CP Rail's results must be 
brought into line with those of 
the best US railroads.” said Mr 
Stinson. 

CP has sold assets to concen- 
trate on rail and sea transport, 
oil and gas. coal, hutels and 
property. 

CP's firstquarter profit was 
CS17.2m, or 5 cents a share, 
after a C*7m special charge, 
against C$21 .7m. or 7 cents, 
after a special gain of C{2&5m 
a year earlier. 

Revenues were C$l.6bn. 
against C$i.47bn. Operating 
income gained 45 per cent to 
C$224m. 




Fall at Aga fails to 
mar full-year outlook 

Bv CtwistoDher Brown-Humes concentrating on industri 


By Christopher Brown-Humes 
in Stockholm 

Aga, the Swedish industrial 
gas group, is sticking to a fore- 
cast of higher profits this year, 
in spite of a slight weakening 
in its first-quarter perfor- 
mance. 

inopnip after financial items 
eased to SKr401m ($52.7m) 
from SKr415m. Operating 
income was also lower at 
SKr366m, compared with 
SKr392m, although sales rose 4 
per cent to SKr3-87bn. 

The group recently 
announced plans to spin off 
Frigoscandia, the world’s lead- 
ing cold storage chain, and 
obtain a separate listing for the 
company. The move is in line 
with its long-term strategy of 


concentrating on industrial 
and medical gases. 

Pro-forma figures showed 
that gas operations achieved a 
SKr404m profit in the first 
three months, on sales of 
SKi2-96bn, in the same period 
of 1993, profit was SKr416m on 
sales of SKr2.73bn. 

Most of the group's gas 
operations recorded higher 
operating income. This was 
attributed to improving eco- 
nomic conditions in the US and 
Nordic region. The European 
continent remained weak, how- 
ever. 

Frigoscandia had a slightly 
higher loss, of SKr3m com- 
pared with SKrlm, in what is 
always a weak period. The 
company’s sales dropped 6 per 
cent to SKr924m. 


S2 si*"—-* »■*<- 

e&vor m omcm uim 


DIVIDEND NOTICE 


PLACER DOME NC. 

Notice is hereby given that 
a regular quarterly 
dividend, being Dividend 
No. 28 of six and one-half 
cents {614(E) U.S. per 
Common Share, has been 
declared payable on June 
27, 1994 to shareholders 
of record at the dose of 
business on May 27, 
1994. 

Shareholders with 
addresses in Canada or 
Australia will be paid the 
equivalent amount in the 
currency of their 
respective countries. 

BY ORDER OF THE 
BOARD 
John A. Eckersley 
Vice-President, 
Secretary and 
General Counsel 

April 28. 1994 


UptolS^) 

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FINANCIAL TIMES FRIDAY MAY 6 1994 



KemPER 


KEMPER 

STOCKHOLDERS 

BEWARE 


li«r inc 


ian I’acifi 
meruer tai 


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Iga Liihii' 

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fccoir^: 


General Electric has finally displayed 

ITS TRUE COLORS!! 


GE has tried to insist all along that the GE slate was nominated solely to serve your interests as Kemper 
stockholders. But GE's threat to withdraw their proposal if GE doesn't get its way confirms that their 
nominees have only one agenda— to force the sale of Kemper at GE's inadequate $55 price— and to serve 
only one master, General Electric, with its selfish objective of depriving you of Kemper's potential. 


Think about it- Who should you 


Kemper has consistently stated its confidence that Kemper's restructuring efforts will lead to values in excess 
of GE's hostile bid. We underscored our conviction with the pledge to you announced yesterday. 

In contrast, GE apparently will say anything to get what it wants. 

In March, GE's message was, "We are fully committed, as an institution, to proceeding with a transaction 
that could create maximum value for Kemper's employees, customers and shareholders." 

Last week, GE's message was "We have the money available to pay for any price we agree to." 

This week's message: $55 or Nothing! 

Do Not be Bullied or Fooled 

GE says Kemper stockholders must decide now if you want to sell your Company for the inadequate share 
price of $55. Do you really want to force a sale at GE's low-ball price? 


The real issue is: Who Should Reap the Rewards of Kemper's Successful 

Restructuring— General Electric or You? 


Please Sign, Date and Mail the 

WHITE PROXY CARD TODAY 


IMPORTANT 



Even if you have already returned the BLUE proxy card to General Electric Capital Corporation, you have every right to change your vote by completing, then 
signing, dating and returning, a WHITE PROXY CARD. Only your latest dated proxy card counts. 

if your shares are held in “street name”, only your bank or broker can vote your shares. Please contact the person responsible for your account and 
instruct him or her to vote the WHITE PROXY CARD as soon as possible. 

If you have any questions or need further assistance in voting your shares, please call Kemper Corporation's proxy solicitoi; GEORGESON & COMPANY INC. 
(toll free) at 1-800-223-2064. 



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Philips Electronics N.V. 

Eindhoven, The Netherlands 

DIVIDEND ANNOUNCEMENT 

At the ordinary General Meeting of Shareholders 
held on 5 May 1994 a dividend for the financial 
year ended 31st December 1993, was declared 
at NLG 0.50 per Ordinary Share of NLG. 10,- 
nominal value. 

The dividend will be payable In cash as of 26th 
May 1994. Such dividend payment is subject to 
deduction erf 25 % Netherlands Withholding Tax 
CF-shares: The dividend payment in the UK wifi 
be made through the Company's paying agent, 
Hill Samuel Bank Lid., 45 Beech Street, London, 
EC2P 2 LX, to the CF depositaries In the UK in 
accordance with their respective positions in 
the books of the CF Amsterdam on 5 May 1994 
at the dose of business. 

K-shares: Information about dividend payment 
in the UK will be given by Hill Samuel Bank Ltd., 
45 Beech Street London BC2P 2LX. 

Payment of the net guilder amount of dividend 
will be made in sterling at tire rate of exchange 
ruling on the date of payment 

UK holders of CF-shares are reminded that 
the 25% Netherlands Withholding Tax may be 
reduced to 15%, if payment is made to residents 
of the United Kingdom (Great Britain and 
Northern Ireland with exception of the Channel 
Islands and the Isle of Man) or to residents of 
Aruba, Austria, Australia, Belgium, Brazil, 
Canada, Denmark, Finland, France, Germany,' 
India, Ireland, Japan, Luxembourg, Netherlands 
Antilles, New Zeeland, Nonway, South Africa, 
Spain, Sweden and the United States of 
America, who deliver the appropriate Tax Decla- 
rations to Hill Samuel Bank Ltd. The Netherlands 
Withholding lax may be reduced to 20 per cent 
if payment is made to residents of Indonesia 
and Surinam who also deliver tire appropriate 
Ifex Declaration to Hill Samuel Bank Ltd. 


Eindhoven, 
6 May 1994 


The Board of Management 


PHILIPS 


: 

This Notice is important &id nequres the 
immediate attention of Holders of Noftes^ 

St Paul’s Vista Limited 

730% Secured Notes due 1995 

(the -Notes') 

Notice of changes of Principal Paying Agent 
and Paying Agent 

St Paul's Vita United hereby ghws natico to IwUora at 8 m Nates that St Paul's 
VWa United lus. with affect bom 5-00 pjn. m London an Mh June. 1994, 

Paying Agent arx} S7» appointment of Chase Manhattan Bank Luxembourg S-A. 
as Paying Agent and in tholr places haa appointed Chase Manhattan Bank 
LuxantomagSA a mndpal Paying Agent and The Chase Manhattan Bank, NA. 

aaftytogAgom. 

VWi effect from 5.00 paw. In London on 10th Juno. 1994 ttw addressee oltfia Paying 
Agents be: 

PRINCIPAL PAYING AGENT 

Chase Manhattan Bank Luxnmbourg JLA. 

5 Rue Ptaetts, L-2338 Luxembourg 

PAYING AGENTS 

The Chase Manhattan Bank, NJL Banque Bruxelles 

WooJgatB House LambertSJL 

Coleman Street 24 Avenue Mamix 

London EC2P2HD B- 1050 Brussels 

Chaaa Manhattan Bank (Switzerland) 

63 Rue du RhQne, CH-1204 Geneva, Switzeriand 

For and on behalf ol St Paul's Vleta Limited 

By. The Chase Manhattan Bank, MA. rWAOp 

Principal Paying Agent 

Oth May, 1994 '^■F 



INTERNATIONAL 


rrMANCtAL TIME S FRIDAY MAY 6 1994 

COMPANIES ANP FINANCE 


Bank Austria 


Chinese stocks lose their shine 


posts sharp rise 
but cuts payout 


Caution is the watchword, write Simon Holberton and Louise Lucas 



* In Nana Koncc Profit* after fax — 



1982 

actual 

Prospectus 
for 1993 

1993 

actual 

Change on 
1982 (fa) 

Maanshan bon anti Steel 

Shanghai Petrochemical 

Tsingtao Brewery 

Guangzhou Shipyard 

Batren Machinery 

Kunming Machine Tool 

407.5 

443.0 

45.1 

67.7 

422 

16.4 

1250 

848 

193 

as 

85 

31 

1.758.0 

870.0 

187.8 

105.6 

83.8 

723 

<31 

96 

310 

56 

96 

342 

Saacwtewpey rep** 


By Patrick Blum 
bi Vienna 

Bank Austria, the country's 
largest bank, yesterday 
reported a sharp rise to operat- 
ing profits but will pay a 
reduced dividend of 8 per cent, 
compared with 10 per cent in 
1992, as part of forthar efforts 
to improve financial resources 
and enhance competitiveness. 

Partial operating profits dou- 
bled to Scb4uftm ($347m) from 
Sch2.1bn in 1992, helped by fur- 
ther measures to reduce costs 
and addirinnai synergies from 
the 1991 merger of Oesterrei- 
chische Lfinderbank and the 
city of Vienna's Zentralspar- 
kasse savings bank to form 
Bank Austria. 

Profits before allocations In 
reserves at Schl.32bn were 
broadly in line with the 
SchL29bn earned in 1992. 

Operating expenses declined 
by almost 7 per emit, mainly 
due to a 15 per cent cut in 
labour costs, and the one-off 
effect erf a reform of the compa- 
ny's pension scfaEna 

The domestic branch net- 
work was reduced by 15 


By Marie Suzman 
bi Johannesburg 

Nedcor, the South African 
banking group, yesterday 
aTinnmii*rf a 16 per cent rise in 
net income to R271m <580m) for 
the six months to March, up 
from R234m a year ago. 

The interim dividend has 
been increased to 29 cents from 
25 cents, while earnings per 
share rose to 139 cents from 
121 cents. Overall interest 
income rose to R&afibn from 
R3.l2bn, and was helped fay 
growth in both loans and 
advances. Otlrer income rose 16 
per cent to R653m from R562m. 

Mr Richard Laubscher, duet 
executive, said the improve- 
ment was chiefly the result of 
“very good volumes”. 

Results were also boosted by 
a 14 per cent reduction in pro- 


By FLC. Murthy 
hi Bombay 

Bajaj Auto, India’s largest 
producer of motor scooters, has 
announced plans for a 5250m 
Euro-issue. 

Part of tiie proceeds could be 
used to finance plans to pro- 
duce low-cost cars. 

Mr Rahul Bajaj, chairman, 
said he hoped to begin by mak- 
ing 60,000 cars a year, later 
increasing to 100,000. 

Mr Bajaj did not say when 
the final decision on the 


brandies to 340 branches, and 
more will be closed this year. 

Provisions against bad debts 
were reduced by almost one- 
third from 1992 to about 
Sch4bn “despite the problems 
faced by the Austrian econ- 
omy, and bankruptcies clim- 
bing to an all time high", the 
hank said. 

Primary funds totalled 
Scb332JJhn, with private house- 
hold savings deposits account- 
ing for 48.5 per cent of the 
totaL 

The bank continued to 
ar pand in central and eastern 
Europe. It now has subsidiaries 
in the Czech Republic, Hun- 
gary and Slovenia, and became 
the first foreign bank to open 
an operational branch in 
Moscow. 

Bank Austria recently com- 
pleted its takeover of GiroCre- 
dit, Austria’s third largest 
bank, by raising its stake to 56 
per cent from 30 per coot 

The move is expected to lead 
to further rationalisations at 
Bank Austria and GiroCredit, 
which will become more 
focused on servicing the 
savings bank sector. 


vision for bad debts to R103m 
compared with R120m last 
year. This was partially offset 
by a 21 per cent increase in the 
tax burden as a result of an 
increase in value added tax. 

The group's best performer 
was its UAL fmanrdnl services 
division, which increased net 
income by 25.4 per cent, rising 
to R32.1m from R25.6m. 

Mr Laubscher said he was 
“much more positive" about 
prospects for the economy 
after the elections. 

He singled oat the Perm, 
Nedcor’s main home-loan atm, 
and said that it was exception- 
ally well placed to take advan- 
tage of further growth in the 
black market, particularly as 
the new government pursues 
its reconstruction and develop- 
ment. programme in the town- 
ships. 


scheme might be taken, or who 
the potential f o re i gn partners 
might be. However, the com- 
pany Is unlikely to go into pro- 
duction before the end of the 
decade. 

The annnimppTTWit came as 
Bajaj Auto reported full-year 
net profits up sharply to 
RsL46bn (546.6m) from Rs520m, 
due to strong exports, tight 
control on interest charges, 
and reduced provisions for 
depredation. 

Sales overall rose 28 per cent 
to Rsl6J>hn. 


T he first flush of enthusi- 
asm for “China Inc" 
that was so much in evi- 
dence last year has given, way 
to cantion. 

Since - the beginning of the 
year the share prices of the 
first clutch of Chinese state 
companies listed in Hong Kong 
- the H-shaxe companies - 
have come under pressure, 
which has become especially 
acute as they have reported 
thflir earnings over the 
two weeks. 

the beginning of the 
year, Hang Sung Tnrioy Ting 
fallen 31 per cent. But the 
share price of Guangzhou Ship- 
yard has stamped 54 per emit, 
and those of M? ang han Iron 
and Steel and Shanghai Petro- 
chemical by 45 pm- cent and 36 
per cent respectively. 

Only Tsingtao B rewe r y has 
outperformed the market, fall- 
ing by 29 per cent since the 
start of the year. 

Mr Ravi Narin, head of Hong 
Kong research at Peregrine 
Securities, a local brokerage, 
says: “We've toU investors to 
an of them. They had been 
pushed up to ridiculous levels. 
We don't like them on relative 
valuation basis; we have ques- 
tions about their currency 
exposure; a gd their manage- 
ments and businesses are 
largely unknown." 

In spite of impresavetooklng 
earnings reports for the 
H-share companies - Maan- 
shan' s profits rose 431 per cent 
and Tsingtao Brewery’s rose 
more than 300 per cent - inves- 
tors looking ahead to an uncer- 
tain year in chtna and study- 
ing the fine print erf the reports 
are concerned. 

Investors have also been 
taken aback by some novel 
accounting practices - such as 
Pairing “below the line” items 
which a western company 
might allocate above it, such 
as welfare provisions akin to 
binding a pension scheme. 
There is a growing appreda- 


PLDT declines 
12.8% despite 
higher revenues 

By Jose Gatang in ManBa 

Philippine Long Distance 
Telephone (PLDT), the coun- 
try’s dominant telecommunica- 
tions company, yesterday 
reported a 123 per cent drop in 
firetqoartar profits to 9123m 
pesos (5329m), in spite of a 10 
per cent rise in revenues to 
4.78bn pesos. 

The company said higher 
capital spending, mostly 
related to Its programme to 
meet an estimated 800.000 
applications for telephone 
lines, led to the lower earnings. 

Industry analysts had fore- 
cast slower profits growth for 
FLDT, which faces keener com- 
petition from rivals In the 
newly deregulated industry. 

The company said operating 
expenses in the first quarter 
grew 21 per cent to 331bn 
pesos. 


Hnn among % ffnanriai com- 
munity Hint th* u nftfrilawd is 
poised for a sharp slowdown in 
economic activity. 

Also causing concern are 
signs that the Chinese govern- 
ment’s policy of economic 
retrenchment has begun to 
bite, showing up in the sharp, 
and to fllappft ig, rise in 

debts owed to the H-share 
companies. 

Mr C.Y. Ho, head of China 
research at Credit Lyonnais 
Securities Asia, says: “In the 
past it was a question of ’why 
bother to offend people? 1 If you 
did not collect receivables you 
just made borrowings - it was 
the game thing - Now it’s a dif- 
ferent story. The H-share com- 
panies have become alien to 
otter state-owned enterprises; 
they are forcing them to pay 
back their debts, so relations 
are not going to be that smooth 
in 1994.” 

T he brokerage calculates 
the increase in debtors 
has outstripped the 
growth In sales at four of the 
six mmpanifls - Beiren Print- 
ing, Kunming Machinery, 
Maanahnn Iron and Steel and, 
most dramatically, Tsingtao 
Brewery where a 35 per cent 
increase in sales year-on-year 
has resulted in a 230 per cent 
jump in money owed to it 
Mr Ho says difficulties in 
debt collection can be exacer- 
bated by the very privatised 
status which underlines 
H-share companies' account- 
ability to shareholders. In 


By Nfldd Tait hi Sydney 

The New South Wales Casino 
Control Authority will today 
announce the winning bidder 
for the right to develop a 
ntmtn tn Sydney. 

The contest has come down 
to a two-way fight between Cir- 
cus Circus, the large US casino 
operator, acting In conjunction 
with Mr Kerry Packer, the 
Australian businessman, and 
Showboat, a smaller US gam- 
ing company, which is part- 
nered by Leighton Holdings, 
the Australian property and 
construction group. 

The Sydney casino is the last 
prize in a string of Australian 
gaming developments which 
could lead to a trebling of the 
nation's ca sin o industry reve- 
nues by the late-1990s. 

Developers have been chosen 


fihinn the companies are per- 
ceived to be cash rich and. as 
come bottom of the list 
to be paid off. 

But it also reflects a sys- 
temic problem in corporate 
phfna. state owned companies 
across the board are flounder- 
ing, giving rise to the re-emer- 
gence of “triangular debt". 
This is a peculiarly Chinese 
phpnnmpmm which afflicts the 
state-owned 'sector and was 
mea nt to have been eradicated 
by Mr Zhu Rongji, now China’s 
economics minister, after a 
hi g h-pr ofile attack on the prob- 
lem in 1992. 

The inability of one comp a ny 
to pay its debts feeds straight 
through the system of corpo- 
rate relationships: company A 
cannot pay back company B 
until it receives payments from 
company C. Those companies 
with cash are making loans to 
each other, commanding inter- 
est rates in excess of 25 per 
cent Tsingtao has lent 3 total 
Yn263m (USS20m) to otter Chi- 
nese companies. 

Another aspect of the latest 
H-share reports which has 
raised eyebrows is the treat- 
ment of certain transfers from 
the profit and loss account. 
The H-share companies are 
required to transfer 10 per cent 
of their after-tax profits (before 
distribution to shareholders) to 
a "collective welfare fond" and 
another 10 per cent to a "statu- 
tory surplus reserve”, a form of 
compulsory retained earnings. 

H-share companies have to 
accumulate these reserves 


for new casinos in Cairns. Bris- 
bane, and Melbourne - all of 
which will come on stream 
over the next three years. 
According to consultants at 
Price Waterhouse, the total 
annual gross gaming revenues 
from those projects, plus Syd- 
ney. could amount to about 
A$l-25bn (US5886m). 

The operator of the Sydney 
casino will have to pay more 
than one-fifth of all revenues 
from table games, up to 
ASaoom, and 22 JS per cent of 
gross revenue from “gaming 
devices”. 

Table game revenues which 
top A5200m will attract a 
“super” profits duty, which 
rises progressively to a maxi- 
mum rate of 45 per cent 

The CCA says annual 
income from the property 
should be about A|100m, 


until they equal half the paid 
up capital of the company. The 
“collective welfare fund", 
which is also defined as “share- 
holders’ funds” is for the bene- 
fit of the work force. 

All of the H-share companies 
are the creations of merchant 
bankers and had no indepen- 
dent existence before the Chi- 
nese government decided they 
would be listed on the Hong 
Kong stock exchange. Compa- 
nies such as Shanghai Petro- 
chemical and Maanshan Iron 
and Steel were (and still are) 
industrial towns with Inte- 
grated social services which 
the welfare funds support. 

I t Is a fine point whether 
the collective welfare fond 
should be treated as an 
expense, and therefore above 
the line, as it represents some 
of the costs of doing business 
In for these companies. 

In any event, it appears that 
the heyday for H-share compa- 
nies is over for the time being. 
The interest generated tn 
China stocks was partly due to 
their scarcity, but their rarity 
value is about bo be eroded as 
22 more state companies are 
listed in Hong Kong - 17 of 
which will have their primary 
quotation in the colony. 

In a market notorious for its 
short-termism, stock market 
analysts now say that main- 
innd companies arc for those 
Investors with a long-term 
view. That Is Hong Kong’s way 
of saying “sell now and buy 
another day”. 


although this may bo a conser- 
vative estimate. 

The developer will hand over 
a “once-only. non-re fundable 
lump-sum payment" when the 
casino licence is granted. “The 
benefits to the state arising out 
of the sire and proposed timing 
of the payment will be signifi- 
cant factors in the CCA's 
assessment of the applica- 
tions” the bidding terms state. 

Some critics argue that New 
Sooth Wales has gone too far - 
and the aggressive structuring 
of the tax-take from the Syd- 
ney property will mitigate 
against a high-roller type of 
casino, and encourage the 
developer to pursue a more 
downmarket operation. 

This is thought to be the rea- 
son why a number of big US 
gaming groups backed away 
from bidding. 


Nedcor income ahead 
16 % after six months 


Bajaj Auto in cash call 


NSW authorities will award 
Sydney casino licence today 








-JL ' - 



• vja ■ * 





V- 


yk 

»»•; 



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NEWSLETTERS 

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Sodft£ Anoojne 1 Direrfoire et Cornell de Surveillance 
wttfa a capital or FRF 812 881 410 
Bead Office : 153, roe de Cenrcelke - 75017 PARIS 
RCS Paris B 775 721 996 


NOTICE OF MEETING 

The shareholder* are hereby Informed that a General Meeting (Ordinary and 
Extraordinary) will be held in Paris (75016) at Pavilion (TArmenormUc. Alke 
de Loogctampa, 8<ris de Boulogne, France, on 2nd Jane, 1994 at It am to 
! consider the following agenda : 

A. G e nera l MrsHfav 

Report of the Diredoire, Supervisory Boanfs cotnn>ents. Auditors' reports. 

B. Onfimiy M wdw 

Approval of the 1993 financial s tate m ents- Appropriation of net iooome- 
Dhridand 

Agreements governed by Article 143 of the French Companies Act 
Renewal of the mandate of a member to the Supervisory Board 
Authorisation to be given to the Company to trade in its own shares on the 
stock market, in order io stabilise the price 

Approval of the contribution by CaxnaodMctmlbox Finveat S A- to 
CanuudMetalbox of 1.722J03 AMS Packaging shares and subsequent 
share capital Increase. 

Authorisation to be given to the Dircooire, subject to the prior approval of 
the Supervisory Board, to: 

a) increase Ibe share capital through the capiialisatioa of reserves, profits or 
share premiums 

b) issue, with or without exercise of existing shareholders' pre-emptive 
subscription rights: 

• cash shores, with or without warrants 

• convertible bonds, with or without warrants 
- bonds with warrants 

• warrants 

■ bonds redeemable for shares, with or without warrants 

■ compound securities. 

Authorisation to be given to the Dhectolre to grant stock options to the 
members of staff and ma n ag eme nt of Cronp co mpan ie s . 

Powers 

To be entitled to a tten d, to be represented or to vote by correspondence at this 
Meeting: 

■ Holders of registered shares moat be recorded in the Company's share 
register at lead five days before the date of the Meeting. 

■ Holders of bearer sha res m ust deposit at DEMACHY WORMS & Cle 
(55, me La Bodde - 75008 Paris France) at least 5 days before the data 
of the Meeting, a certificate evidencing that the shares have been 
deposited with authorised Intermediaries until the dare of the Meeting. 

The form of proxy/postal vote mast be received by BARCLAYS 
REGISTRARS, Bourne Haase 34 Beckenham Road. Beckenham. Kent BR3 
4TU at least 5 days before the date of the Meeting. 

Another person may only represent a shareholder at the Meeting if he Is himself , 
entitled to attend the Meeting, or is the spouse or legal representative of the 
shareholder. 

LE D1RECTOERE 


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FINANCIAL TIMES FRIDAY MAY 6 1994 

INTERNATIONAL CAPITAL MARKETS 


23 


Treasury prices mixed despite a stronger dollar 

Reserve to lift interest rates for 


ONGC sticks to 
Euro-issue plan 


By Rank McQurty In New York 
and Sara Webb In London 

US Treasury prices were mixed 
yesterday morning, with the 
market gaining meagre sup- 
port from a stronger dollar and 
data which suggested the 
chance of favourable news in 
today's pivotal employment 

report. 

By midday, the benchmark 
30-year government b ond was 
£ better at 87A. with the yield 
slipping to 7.319 per cent At 
the short end, the two-year 
note edged & lower to 99ft, to 
yield 5£55 per cent 

The focus of attention was 
squarely an today's figures on 
April non-farm payrolls and 
the unemployment rate, which 
will give the market its first 
comprehensive reading on the 
strength of the economy in the 
early part of the second quar- 
ter. 


ADB outlines 
1995 funding 
strategies 

The Asian Development Rank 
(ADB) may launch a global yen 
issue in 1995, and may also 
spearhead the first bond Issue 
in Taiwanese dollars this year 
as part of its new binding pro- 
gramme, a bank official said, 
Reuter reports. 

Mr Erkki Jappinen, the 
ADB’s assistant treasurer, said 
the KKnamber bank aimed to 
raise up to 20 per cent of its 
$2.8bn funding target this year 
through the structured place- 
ment market 

“We have two new 
approaches to our funding 
strategy this year - issuing 
global bonds and the place- 
ment plan," he said in Nice, 
where the hank is holding its 
annual confere nce 

Bankers said the structured 
placement plan would bring 
the ADB into the rapidly-ex- 
panding market for issues 
involving options or swaps. 


Forecasts centre an a payroll 
increase of 170,000, and an 
unemployment rate of 65 per 
cent 

Yesterday’s announcement 
of rising claims for unemploy- 
ment benefit last week was 
marginally encouraging for 
fixed-rate investors, who are 
looking for indications of weak 
inflationary pressures. The 
good news was offset by the 
announcement tha t unit labour 
costs jumped 5 per cent in the 
first quarter. 

Trading was largely confined 
to professional dealers, who 
were squaring their positions 
ahead of today's data. Improve- 
ment in the value of the «W ar 
against the yen and D-mark 
was helpful in the early going, 
but most traders were content 
to remain on the sidelines. 

Their overriding concern 
remained the likelihood of an 
imminent move by *Ha Federal 


By Conner Mdddmann 

Greece’s long-awaited D-Mark 
nfliwing provided thff highlight 
of another torpid day in the 
Eurobond markets. 

As expected, the Hellenic 
Republic Issued DMlbn of sev- 
en-year floating-rate notes, 
with, a call and a put option 
after five years. 


INTERNATIONAL 

BONDS 


Paying a coupon of six- 
month Libor plus 75 basis 
points, the notes were priced at 
a discounted margin of 112 
basis points over Libor at their 
98.42 re-offer price. CS First 
Boston and Deutsche Bank 
were joint lead managers. 

According to one of the 
leads, the issue met strong 
demand from German and Aus- 
trian investors who benefit 
from their countries’ double- 


the fourth time this year, per- 
haps as early as this morning. 

■ Tlie Spanish government 
bond market bounced back up 
yesterday to end over a point 
higher, recovering part of the 
losses made in the previous 
two days. 


GOVERNMENT 

BONDS 


The market saw sharp 
declines of over a point on 
Tuesday and Wednesday as 
further news about the politi- 
cal corruption scandals trig- 
gered more selling, particularly 
by foreign investors. 

Mr Felipe Gonzalez, the 
Spanish prime minister, was 
forced to respond to political 
attacks about the recent scan- 
dals at a press rraiferpnnp 


taxation agreement with 
Greece. Some UK and east 
Asian demand was also 
reported. 

Empresa Distribnidora Snr 
(Edesur), an Argentine electric- 
ity distribution, company, 
issued $15Qm of two-year float- 
ing-rate notes paying a coupon 
of three-month Libor plus 395 
hasia p oints and carrying a call 
optical in May and November 
1995. 

According to k»ad manager 
Chase Investment Rank, the 
deal met with hnaltby demand 
from investors keen an high- 
yielding short-term floating- 
rate paper. 

Primary market activity is 
likely to remain subdued ah»«d 
of today's US April jobs data. 
and is py ppf- t e d to be further 
crimped by next Thursday’s 
Ascension holiday in most 
parts of Europe. 

However, there is some talk 
of further short-dated dollar 
deals as well as yen issues tar- 


Two of Mr Gonzalez’s minis- 
ters have resigned in recent 
days in connection with tbe 
scandals. 

Meanwhile Mr Mariano 
Rubio, the former governor of 
the Bank of Spain, was 
arrested late on Wednesday 
and charged with tax fraud. 

Yesterday saw some renewed 
buying interest in Spanish 
paper, inspired mainly by the 
realisation that Spanish 10- 
year yields were hovering close 
to 10 per cent, while the yield 
spread over 20-year German 
paper had widened out to well 
over 300 basis points. 

“At close to 10 per cent 
yields, people felt there was 
relative value out there,” said 
Mr Jouni Kokko, lritoraatifinjil 
economist at S. G. Warburg 
Securities. 

The Spanish government 
bond futures contract quoted 
on Meff opened at 94.00 and 


geted at Japanese investors 
when they return from the 
Golden Week holiday. 

• IBCA, the European rating 
agency, issued its first credit 
ratings for Depfa-Bank, Ger- 
many’s largest mortgage hank 
It awarded Depth's unsecured 
Eurobonds a double-A rating 
and its mortgage bonds and 
government-guaranteed liabili- 
ties a trlple-A rating. 

Depfa commissioned the 
IBCA rating after receiving an 
unsolicited Aa3 Eurobond rat- 
ing from Moody's in February. 
After Moody’s disappointing 


touched a low of 9355 early in 
the session, before riimhing 
steadily back up to a high of 
95.67 and ending the day at 
95.36. 

■ The strength of the German 
economic recovery provided 
the main focus of attention in 
the German government bond 

market apnin with anm*» mar- 
ket participants wondering 
whether independent German 
economists are Kkely to revise 
their growth forecasts upwards 
again. 

“The rise in unemployment 
was gmallar than anil 

we continue to see signs that 
the German economy is 
recovering." said one 
analyst. 

The liffe bund futures con- 
tract opened at 9139, fell to a 
low of 93.77, and then climbed 
back up to a high of 9144, set- 
tling at 9452. 


rating, “we are pleased about 
our double-A rating” from 
IBCA said Mr Gerhard Bruck- 
enoann, chief ftnanriai officer. 

Depth's lending activities are 
substantially German-based, 
long-term and mostly to the 
public sector. th e mam 

part of its business is subject 
to the German mortgage law, 
its profits are low compared 
with those of the commercial 
banks. However, armrriing to 
IBCA, the quality of its lending 
is higher. 

Moreover, its profitability 
has improved over the last four 


■ Elsewhere in Europe, French 
government bond prices 
mostly followed bonds in the 
course of the day. despite a 10- 
basis-point cut in the interven- 
tion rate, from 5.70 per cent to 
5.60 per cent 

Dealers said the Treasury’s 
auction of stock yesterday was 
generally well-covered, but 

they were disappointed at the 

yields accepted. The Treasury 
sold FFrlSbn of 10-year stock 
with a 55. per cent coupon at 
an average yield of 7.09 per 
cent. The notional ftitures con- 
tract opened at 119.48 and set- 
tled at 119.24. 

■ UK gilts bounced back to 
end a point higher on the day. 
although dealers said the 
recovery in prices was techni- 
cal. The gilt market will be 
focusing on tbe outcome of the 
local elections and the US data 
today. 


years, and thi« trend is con- 
tinning. Depfa has about 
DM60bn in mortgage bonds 
and KftTT»» TVMSb M in Eurobonds 
outstanding. 

• Standard & Poor’s lowered 
its rating on the long-term debt 
of the Province of Newfound- 
land a™* on the prcvincially 
guaranteed debt of Newfound- 
land & Labrador to triple-B 
plus from single-A minus. 
Some $2bn of debt is affected. 
The new rating is equivalent to 
Moody's Baal rating of the 
province, which was confirmed 
by the agency. 


India’s Oil and Natural Gas 
Corporation (ONGC) intends to 
go ahead with planned domes- 
tic and Euro-issues despite the 
decision earlier this week by 
Videsh Sanchar Nigam 
(VSNL), the telecommunica- 
tions monopoly, to postpone its 
planned $ibn Euuro-lssue, the 
company chairman said. Reu- 
ter reports from New DelhL . 

“We are going to place in the 
market shares valued at 
Rs30hn. Half of it will be in the 
domestic market and tbe rest 
in the international market," 
Raid Mr SJL Manglik ONGC's 
f hali-man 

State-owned ONGC, one of 
Asia’s largest oil exploration 
firms, was converted into a 
public limi ted company on 
February 1. Formed in 1959, it 
employs 48,000 and has assets 
of Rs89.4bn. 

The company made a record 
net profit of Rs20bn In 1993-94, 
a 153 per cent increase over the 
previous year. It produced 
24J21m tonnes of crude during 
the year. 


By Tracy Corrigan 

The International Swaps and 
Derivatives Association (ISDA) 
has elected Ms Gay Evans, 
managing director of Ranker * 
Trust International in London, 
as its new chairman, rep lacing 
Mr Joseph Rarnnan. 

She win hold the position for 
a year. Ms Evans ' has been an 
offirgr on the ISDA board for 
four years, and chaired the 
association’s regulatory com- 
mittee in Europe. 

Mr Mark Brickell, a 
vice-president of J.P. Morgan! 
and Mr Chip Goodrich, a man- 


pany hoped to make its domes- 
tic issue around June or July. 

“We are thinking of going in 
for the international GDR 
[Global Depositary Receipt 
issue] in the latter part of the 
year," he said. 

“As of today, we have no 
intention of changing our plan 
but we will be alive to the envi- 
ronment and keep a watch," he 
said. “After all, who expected 
-VSNL, which is a very good 
company, to bomb like this?” 
he added 

The VSNL Euro-issue of 
GDRs, certificates representing 
domestic equity, was to have 
been priced on Tuesday after 
roadshows around the world. 
However, the ambitious offer- 
ing. riding on the back of 
India’s economic liberalisation 
programme, fell victim to fall- 
ing global interest in emerging 
markets after the US Federal 
Reserve Board raised interest 
rates. 

ONGC sources said the 
domestic price for a share was 
expected to be fixed around 
RsI40 to RS150. 


aging director of Merrill 
Lynch, were elected vice- 
chairmen. Both are based in 
New York. 

Ms Evans said ISDA would 
focus on two main areas. "We 
wfll press forward on our edu- 
cational efforts with regula- 
tors, legislators and our other 
constituencies around the 
world. Increasingly, these 
efforts will involve derivatives 
end-users," she said. 

“At the same time, we will 
continue to fulfil our 
long-standing mission to assess 
and reduce sources of risk in 
the derivatives industry.” 


Hellenic Republic FRN meets strong demand 


NEW INTERNATIONAL BOND ISSUES 


Amount Coupon Price fe b ilre t tj r Fees Spread Book rumor 
B orrow er m. % % bp 

US DOLLARS 

ISO m 1O6Q0R May. 1896 660R Chase Inveatroem Bank 

D-MARKS 

Haflartc FtepuMcft# Ibn (d) 96.42H MoyZOOl 63SR CSFB/ Oauteche Barfc 

Rnal tame and non-caflabla unless stated. The yield a gre e d (over relevant govemmert boncQ at launch is stppSed by the lead 
manager, ^floating rue note, ft feed re-offer price; fees am shown at the re-offer (end. a) CaOfato on 17/5/95 and 17/11/95 at par. b) 
3-mth Ubor +395%. c) Caflefata and puttebto an 1B/S/99 at par and eatable on coupon thereafter at par. cfl 6-mth Ubor +4*96. 


Mr Manglik said the com- 

Gay Evans appointed 
chairman of ISDA 


I award 
e today 


i i . 

i< . 
»•* ■■ 
■ ! • 


•t, 

.in 1 





& 


■v*- 




’•r-. 




WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Red Day’s 

Coupon Oita 


Price change Yield ago 


Month 

ago 


Italy 

■ NOTIONAL ITALIAN OOtrr. BOM) (BTPJ FUTURES 
PJFFET Ura 200m lOOthe of 100* 


Auslnda 


8900 

08/03 

1045400 

-0.130 

677 

8.15 

620 

Belgium 


72SD 

04/04 

363000 

-6020 

7.50 

7X7 

7.15 

Canada * 


6900 

08/04 

87.8000 

■#6300 

855 

755 

622 

Denmark 


77X30 

12/04 

962200 

-0580 

752 

752 

657 

France 

BTAN 

8X00 

05/B8 

1068750 

-*6120 

652 

B 30 

678 


OAT 

5£00 

04/04 

802000 

- 

7.05 

674 

648 

Gremany 


6000 

09813 

961000 

-0500 

657 

651 

are 

Italy 

NdllB' 

6500 

01/04 

955500 

-0550 

61*t 

852 

852 

Japan 

6800 

06/68 

*.* 

- 


3X5 

358 


No 157 

4500 

08/03 

- 

- 

- 

686 . 

354 



5.750 

01/04 

82.7000 

- 

650 

661 

638 

Spain 


10500 

KVD3 

1045500 

+0560 

671 

825 

951 

UK Guts 


6.000 

06/98 

82-18 

+032 

7.77 

7.49 

7.17 



6.750 

11/04 

60-13 

+18/32 

8.12 

7.78 

754 



9.000 

10/08 

108-14 

+21/32 

853 

7.80 

7.7S 

USTreeauy 

• 

5875 

02AM 

81-14 

♦12/32 

7.10 

ft an 

751 


0250 

OW 23 

87-05 

+21/02 

752 

7.11 

750 

ECU (French Goat) 

6000 

04/04 

885400 

-6270 

753 

7.18 

692 


Open Sedprice Change hfigh 


Low EsL vd Open M. 


London dOeng. Ha* Tone mat-day 
T Ones pidurfng odNwkfing tm at 125 pe» i 
Proa* US. UK In XMa. ettma In date* 

US INTEREST RATES 


Ylekfe: Local matac felted. 


Lunchtbne 


Mm rea 

BMerkMMt. 

FttUtand) 

FedJUvbW 


On wuutfi — 
W» Two worth _ 

S itneaoab- 

axtertt — 

- Orejaai — 


Titny His and Bond YWdi 
3-82 hwiaar. 


358 Tfnayav- 
4.12 fheyaw- 
4J2 10-jmr 
619 3Vyur 


516 

8.19 

171 

7.11 

753 


BOND FUTURES AND OPTIONS 
nance 

■ NOTIOIIAL FRENCH BOND FUTURSI (MAT*) 



Open 

Sett price 

Change 

tfflh 

Low 

Est voL 

Open W. 

Jin 

11648 

11624 

-640 

11660 

11604 

287.772 

143.972 

Sep 

11654 

11626 

-644 

11656 

11612 

6524 

15,535 

Dec 

11754 

11756 

-644 

11758 

11754 

112 

3565 


■ LONG TERM FRENCH BOND OPTIONS (MATTF) 


Strike 

Price 

Jun 

- CALLS — 
Sep 

Dec 

Jim 

— PUTS 
Sep 

119 

1.18 

158 

- 

1.00 

254 

120 

056 

1X1 

1X2 

1X4 

600 

121 

050 

050 

• - 

257 

- 

122 

611 

670 

- 

257 

- 

123 

0.04 

059 

- 

3.76 

- 


dec 


&l vot core. CM* 57.321 Puts 94,tiB . ftetOMa day** open wc. Ote 455.784 ftte 347,868 

Germany 

to NOTIONAL GERMAN BUND FUTURES (UFFET PM250.000 IQOtfo of 100% 

Open Sett price Change Mgh Low EsL vd Open M. 
Jun 94.30 94.32 40.06 B4-50 83.77 168542 170672 

Sep 8361 83.79 40.03 saS8 6033 4859 1S682 

■ BMC R/TUHES OPTIONS (UFTQ DMg86000 pdrts Cf 10096 


Strike 

Price 

Jun 

■ CALLS 

Sep 

Jim 

- PUTS 

Sep 

9400 

050 

1X8 

058 

158 

8460 

asz 

155 

680 

156 

9600 

6*2 

154 

1.10 

255 


EsL «L UHL call 17136 Pus 23063. Prawoua day's epan ML Cfe 39*301 Ate 306350 

■ NOTIONAL M3MUM TERM GERMAN GOVT. BOND 

(BOBLXUFFQ- DM250 BOO IQOtha cf 100% 


Jun 

11155 11058 

-663 

11155 

11055 

60212 

75969 

Sep 

11610 10688 

-668 

11055 

11050 

256 

2225 

■ ITALIAN GOVT. BOND (BTIP) FUTURES OPTIONS (LfFFQ UnfiDOm lOOths of 100V, 








Price 

- Jin 

Sap 


Jim ‘ 


Sep 

11050 

1.12 

2X0 


054 


252 

11100 

687 

2.16 


1.19 


350 

11150 

0.65 

158 


1.47 


350 

E8L voL total, crea 1713 ftb 1426 Previa* day's opan H. Cate B1BB2 Pres 76013 

Spain 







■ NOTIONAL SPAMSH BOND FUTURES (MEFF) 





Open Settprtce 

Change 

wgh 

Low 

EsL voL 

Open ktt. 

Jun 

84.00 9558 

+053 

9557 

9356 

96189 

114502 

Sep 

9650 

" 

“ 

“ 


853 

UK 







to NOTIONAL UK 0LT FUTURES (UFFET £56000 S2nds o« 100H 



Open Sett price 

Change 

Htft 

Low 

Est. vd 

Open fat 

ftai 

103-12 104-10 

+0-20 

104-18 

103-09 

73831 

118327 

Sep 

103-14 

+0-20 



0 

398 

■ LOMQ QH.T FUTURES OPTIONS (UFFE) E50500 64ths of 100% 


Strke 







Jun 

Sep 


Jun 


Sep 

Price 

104 

1-29 

2-36 


1-08 


3-08 

105 

0-82 

208 


1-42 


3-44 

106 

0-39 

1-48 


2-18 


4-20 

Eat vd-tataL 

Cate teas Puto 373a. Pterioua day^ opan nL. Cate seeor Put* isaes 


Ecu 







to ECU BOND FUTURES (MATT) 







Open Settprice 

Change 

Mftl 

Low 

Est voL 

Open tot 

Jun 

8638 8618 

^0l30 

8644 

f«g n 

2550 

8X81 

US 







■ US TREASURY BOND FUTURES (C87) 51 00500 32nds of 100% 



Open Latest 

Change 

H9H 

Low 

Est voL 

Open Int 

Jun 

104-18 104-18 

+0-09 

104-26 

104-08 

486451 

411508 

Sep 

103-15 103-19 

+008 

103-26 

103-12 

4.782 

57227 

Dec 

103-06 102-31 

+005 

103-06 

102-Z7 

135 

33X63 

Japan 







to NOTIONAL LONG TERM JAPANESE GOVT. BOND FUTURES 


(UFFE) YlOOm lOOttn of 100% 






. Open Sen price Change 
9945 40.00 


UK GILTS PRICES 


Hgft 


Low 


esLvoi OpanM. 
0 1789 


Open Close Change He* Low EsL voi Open tot 
Jrei 11693 112nS 112B5 781 0 

- UFft cone aLta traded on APT. M Open Wmaat ffge. ate lor p rerioua day. 


.-.Arid- - 19W- 

u Rad Wce£ *«- 


— YMd_ _TBW_ 

fef Rtf Price? 4 or- ugh law 


Stem- (that op is RM Vteo} 

Tout lOpcLn. m*tt_ 945 LttlNftti 

but) 121a* 1994 1222 &M 102V 

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Mays 

change M 

May* 

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18252 

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5 AD stocks (81) 

14618 

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May 5 May 4 Yr. ago 


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253 

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351 356 

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358 359 

359 

140 141 141 


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17688 

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Debentises end Loans 


May 5 May 4 Yr. ago May fi May 4 Yr. apo May 5 May 4 Yr. aga 


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FT FIXED INTEREST INDICES 

May 6 May * May 3 Apr 29 Apr 28 Yr apo High' 


CULT EDGED 


low- 


activity INDICES 

May* May 3 Apr 29 


Apr 28 Apr 27 


QoyL Sees. (UK) 9427 8448 95.18 95.68 8600 94.76 107B4 04J38 Git Edged 

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FINANCIAL TIMES FRIDAY MAY 6 1994 


COMPANY NEWS: UK 


Board’s support likely for SA retailer’s plan to inject up to £60m 


B& J counter proposal expected 


By Andrew Bdger 


Pepkor, the South African 
retailer, Is expected today to 
offer to Inject up to £60m into 
Brown & Jackson, which owns 
the troubled Poundstretcher 
chain of variety discount 
retailers. 

The Pepkor offer is likely to 
be backed by the B&J beard, 
which last month recom- 
mended acceptance of a rescue 
deal with the Weisfelds, the 
millionaire couple who created 
the What Everyone Wants dis- 
count ftlnthTny nhain. 

B&J shareholders are due to 
vote at an EGM an Monday on 
the plan for Mr Gerald and Mrs 
Vera Weisfeld to Inject an 
initial £6m to meet the 
iftncCTrudring group’s immediate 


working capital needs, In 
return for a 19 per cent 
stake and two seats on. the 
board. 

However, Pepkor executives 
have continued talkin g to B&J 
and l frgfr wight were still negoti- 
ating details of their counter- 
offer. 

This would Involve an imme- 
diate injection of up to 
£2Qm, in return for an eventual 

Su b stantial nhawihnMiTig . Die 

deal is unlikely to involve 
any offer to existing sharehold- 
ers. 

Sources dose to the talks dis- 
missed a report that Pepkor 
would launch a hostile £50m 
bid and described the 8p per 
share mentioned as “far too 
high". 

B&JTs shares last night 


closed lp higher at 6%p, valu- 
ing the group at £42m. 

Pepkor is Africa’s lar gest 
mass-market retailer. PEP, toe 
group’s core business, sells to a 
predominantly black customer 


Although its international 
presence has been hitherto 
restricted to Scotland, where it 
operates a number of outlets 
under the Tour More Store 
name, it has been looking for 
farther international acquisi- 
tions. 

B&J has been struggling to 
recover since the £L6m rescue 
rights issue which brought 
in new management in 1992. 
However, poorer than expected 
trading last Christmas led 
to a profits warning in Janu- 
ary. In March the group 


announced losses of £l2.7m for 
1993, against expectations prior 
to the warning of a £4m 
deficit. 

The Weisfelds’ proposal was 
their first business venture 
since they un expect edly left 
Amber Day, as WEW was then 
known, just eight months after 
selling toe chato to Amber Day 
for £47m in 1990. Since then, 
the Weisfelds, who sold their 
15 per cent stake in Amber Day 
for film, have devoted most of 
their to charity work. 

Mr Weisfeld was not sur- 
prised by Pepkor’s interven- 
tion, but said: “What do they 
know about British retailing? 
They are last-minute people, 
who have been flushed out by 
our bid. Where were they when 
the company was going bust?" 


Lombard forced to cut float price 


By Simon Davies 


The impact of a faTHng UK stock market 
has forced Lombard insurance to reduce 
its flotation price. 

The company yesterday announced it 
will issue £33m of shares through a plac- 
ing and intermediaries offer valuing it at 
SSJxa, compared with the initial target of 
“at least £65m”. 

At the issue price of 160p, toe shares are 
being sold on a p/e of 9 j and dividend 
yield of 6 per cent based on the prospectus 
forecast of pro fonna £6J2m profits for toe 
year to June 1994. 

Even at the reduced price, brokers said 


the reception had been lukewarm, 
reflecting concerns over increasing compe- 
tition in toe insurance market, aud toe 

flwHrqMtflri impart of weakening bond and 
equity prices. 

Mr Andrew Laing, managing director, 
there was no down wa r d pressure on 
premiums, as "so much capacity went out 
in 1991 and 1992, that there is no appetite 
for competition for the sake of it”. 

Lombard will raise £16m after expenses 
and toe redemption of preference shares. 
The management buy-out team, which 
purchased Lombard from its parent Conti- 
nental Inc in May 1993 for £32m, wfll also 
be anqtfy rewarded. 


The shares begin trading on May 13. 


Lombard is focused cm the lower risk por- 
tion of the general insurance mark et, and 
has taken no exposure to London, let 
alone the US. The management is confi- 
dent that it offers limited risk at good time 
of the cycle, but Lombard is In the sector 
of the market where everyone wants to be, 
and competition is tightening. Having 
been reduced by 10 per cent the issue 
price looks more a tt ra c ti ve, but institu- 
tions have shown little appetite for the 
piariwg - The shares look set for a lacklus- 
tre debut 


JIB’s Swiss link forms 


new Lloyd’s agency 


Capitol raising £1.5m 
via 3m share placing 


By Richard Lapper 


JIB Group, the insurance 
broker in which Jardine 
Matheson has a majority 
stake, is to join forces with 
Swiss Bank Corporation to 
form a new independent 
Lloyd's members’ agency - 
Jardine Lloyd’s Advisers. 

The business, which will 
have an initial paid up c a pita l 
of film, will take over and 
develop toe business of Jar- 
dine Limited, JIB Group’s 
existing members’ agency. 

Jardine limited, one of the 


larger independent agencies at 
Lloyd’s, handles the affairs of 
Names whose underwriting 
capacity amounts to £294m. 

Jardine limited win receive 
all profit oomnrissfons relating 
to the transferred capacity 
for underwriting years of 

f pw imt up to and hirhuKng 

1998. 

The parties wQl subscribe 
equally for their shareholdings 
In the new company, with 15 
per emit of new capital avail- 
able for management partici- 
pation by way of subscription 
and options. 


By Sbnon Davies 


Capitol Group, the specialist 
security company, has placed 
3.2m shares at 125p through 
sponsors Granville Davies; 
dealings in its shares will com- 
mence on May 17. 

The company, capitalised at 
£U.5m, provides a range of 
security services, including 
fraud investigation, and port 
and ferry security. 

Capitol has raised £1.5m 
from the placing, which will be 
used to fund strategic acquisi- 
tions.' 


In pdflfriftnj Mr Ken Dulieu, 
the founder, will receive £2m of 
the proceeds, reducing his 
shareholding from 85 per nt 
to 59 per cent 
The shares are befog issued 
an an adjusted p/e ratio of 15.1, 
an profits of cim for the 
year to March 1994. 

Mr Dulieu said that the part 
and ferry business bad been 
the main source of earnings 
growth in the past two years, 
but this was now befog over- 
taken by the inc rease in fraud 
investigation work, particu- 
larly in -toe City. 


DIVIDENDS ANNOUNCED 


Current 

payment 


Correa - 
Date of poncftig 
payment tftrfdend 


Total Total 
for last 
year year 


Hamleys allocations 


Bank of Scotland fin 3.18 

BUSS § - fin 1.5 

Body Shop tntl fin 1.25 

BP ht as* 

CSC trrvTst fln 4 

Rnabury Growth int 09 

T o wa rd Group § — fin 3f 

ft namw y ..fin 1.5 

M^wroft bw fin 03 

Radamac fln 12 

TKon § ...-int 1.4 


5.05 4.57 


By Neil Buckley 


June 24 
June 10 
Jiiy 1 
J«Jy 4 
July 2 
July 7 
Jtdy 1 


Dividends shown 
increased capital. 


per share net except where other wi se stated. tOn 
stock. kH»«t Interim. 


Hamleys. the leading toy 
retailer, said yesterday the 
intermediaries offer element of 
its flotation was 3.76 times sub- 
scribed, and applications bad 
been scaled down. Dealings in 
the shares begin today. 

More than 3.6m shares were 
available under the offer, but 
the company said it had 


received applications for more 
than ifr-fim. 

Same 21,500 shares were allo- 
cated to preferential appli- 
cants, with applications satis- 
fied fo faff- Intermediaries who 
-made valid applications were 
allocated 28.48 per cent of the 
shares they applied for. 

A price cf 185p a share val- 
ued Hamleys at a higheptoan- 
espected £423m. 


THIS NOTICE IS IMPORTANT AND REQUIRES THE IMMEDIATE ATTENTION OF HOLDERS OF 
BONDS. IF HOLDERS ARE IN ANY DOUBT AS TO THE ACTION THEY SHOULD TAKE, THEY 
SHOULD CONSULT AN INDEPENDENT FINANCIAL ADVISER AUTHORISED UNDER THE 
FINANCIAL SERVICES ACT 1986 WITHOUT DELAY. 


ALLIED-LYONS FINANCIAL SERVICES PLC 


ALLIED} LYONS 


£200,000,000 


6% % Guaranteed Convertible Subordinated Bonds Due 2008 (the "Bonds") 


FURTHER ADJUSTMENT TO CONVERSION PRICE 


NOTICE IS HEREBY GIVEN to holders of the Bonds (the "Bondholders") that a further 
adjustment will be made to the price at which die Bonds are convertible into Ordinary Shares 
of Allied-Lyons PLC (the "Conversion Price"). The need for adjustments as a result of the rights 
issue announced on 24 March 1994 by Allied-Lyons PLC was set out in a notice to Bondholders 
published on 6 April 1994. The notice stated that the first adjustment to the Conversion Price 
would be from 622p to 612p and that a further adjustment from 612p to 6Q4p would be made if 
EC consent to the acquisition of control of the Pedro Domecq Group was obtained and the 
Second Instalment on the Stock Units was called. 


EC consent to the transaction was obtained on 28 April 1994 and the Notice for the Second 
Instalment was posted to Shareholders on 30 April 1994. The further adjustment to die 
Conversion Price from 612p to 604p per Ordinary Share therefore takes effect from 30 April 1994. 


P-F. Macfarlane 


Director 


For and on behalf of 


Allied-Lyons Financial Services PLC 



Healthcall 

flotation 


price tag 
reduced 
to £58m 


Body Shop maintains 
recovery with £2 9. 7m 


By Masflte Urry 


By David Wightoo 


The flotation value of 
Healthcall, toe doctors’ depu- 
tising service, hag been cut to 
fp»rn from initial estimates of 
£70m as the new issues market 
continues to cooL 

The company is issuing 
fewer new shares than expec- 
ted and the price is more toan 
10 per cent lows- that hoped 
for last month. 

Mr Maurice Henchey, chief 
executive, said: “Institutions 
lilted tim company, but they 
have been inundated with new 
issues. In the rir* , nmgf«Tiffg« 
we did remarkably weTL” 

He added that, with few 
existing shareholders wMag 
“the most important thing was 
to allow a lot of scope in the 
after-market 0 . 

He said pricing had not been 
affected by expected govern- 
ment moves to reduce the out- 
of-hours burden on family doc- 
tors. 

The shares have been priced 
at 105p, equivalent to 14J) 
times last year’s ««rwiwB« from 
the group’s continued health- 
care operations. The notional 
yield at the issue price is 
per cent. 

Shares valued at £31m are 
bring placed with institutions 
by Morgan Grenfell, of which 
£7 An can be clawed back via 
an intermediaries offer. 

Applications most be 
received by James Capri, the 
stockbroker, by next Thurs- 
day, with dealings due to start 
on May l& 


• COMMENT 


Body Shop International 
continued its profits recovery, 
yesterday rep ortin g a rise at 
the pre-tax level for the year to 
end-February from £2L5m to 
£29.7m, more than reversing 
the decline of the previous 12 
months. 

The shares rose 20p to 234p. 

Mr Gordon Roddick, chair- 
man, said the current year had 
started well with “strong 
growth in an of our major mar- 
kets". He also said toe group 
planned to chang e its Memo- 
randum of Association, “to 
crystallise the principles and 
values of our business*. 

He said this would mean that 
if toe company was run at 
some future date by people 
with different business ethics 
shareholders would “have a 
hook to hang- fham on”. He 
stressed this did not mean he 
and Mrs Anita Roddick, man- 
aging director, had any less 

mrr n n i tma nt to remaining with 

Body Shop. 

The figures went some way 
to allaying investors’ fears that 
Body Shop was failing to 
counter competitive pressure 
in its home marimt Compara- 
ble store sales in the UK were 
level fo the year, after a fall of 
6 per cent last time. 

Further, the growth fo inter- 
national profits reduced the 
UK’s contribution to group 
operating profits to under 38 
per cent 

During the year the group 
opened 6 shops fo the UK, tak- 
ing the total to 239, out of a 
group-wide increase of 153 to 
L083 shops. 

Group turnover rose 16 per 
cent to £195. 4m, while total 
retail sales, inducting franchi- 



Gordon Roddick: strong growth in all major markets 


sees' sales, were 18 per cent 
higher at £438 .2m- Operating 
profits rose 24 per cent to 
£30 ire (£2!3m) and there was 
also a gLim profit on the sale 
of the 65.6 per cent stake in 
Eastwick Trading, which oper- 
ates shops in the Benelux 
countries and Austria. 

Interest charges fell from 
£2.8m to £l-5m as debt was 
reduced from £38J>m to £lL8m, 
giving gearing of 12 per cent 

Ope rating profits fo the UK 
rose from £17, 2m to £lL4m. In 
the US, profits were ahead 
from £2.lm, a figure depressed 
by the £l3m cost of moving 
the head office, to £&2m. The 
rest of the American region 
was fiat at £2.4m. In Europe 
profits rose from £5.7m to 
£5.9m, while Asia, improved 
from £1.8m to £2.4m. Profits 
from Australia and New Zea- 
land were ahead from £l.lm to 
£L8m. 

Earnings per share, exclu- 
ding tile profit on the Eastwick 


sale, were 36 per cent higher at 
lO.lp. A final dividend of L25p 
is proposed to give a total of 2p 
(l.Tp). 


• COMMENT 

These results should have con- 
founded some of Body Shop's 
critics. True, UK profits are 
unlikely to grow more than 
pedestrianly fo future, but the 
rise in US profits, for instance, 
shows what the group can 
achieve overseas when it 
reaches the desired “critical 
mass". Further. Body Shop’s 
revamped management team 
has tightened up the business, 
and the investment in recent 
years in new production facili- 
ties is beginning to pay off. On 
a forecast of £33J5m pre-tax 
this year, the prospective p/e is 
just under 20. The rating is 
nothing like it has been at 
times fo the group’s 10 year 
stock market history, but is 
justified by current growth 
prospects. 


The last minute price cut 
should help the shares get off 
to a good start, but there are 
some question marks over the 
long-term growth prospects of 
the core business. Hralthcall 
already has almost half tbe 
potential duty doctor market, 
which has been growing 
strongly over toe past few 
years. More recently, revenue 
has been boosted by flu epi- 
demics and rate increases. 
However, the government Is 
lrtxm to stem tbe rising bill for 
out-of-bours calls, a fair pro- 
portion of which could be 
dealt with more cheaply at 24- 
hour health centres. Health- 
call already has five such idiot 
centres, but a big shift ayray 
from home visits could require 
significant capital investment 
with uncertain returns. The 
group is well-placed to capital- 
ise an the trend towards com- 
munity-based care and has 
moved into new areas such as 
eye-care services for residen- 
tial homes. But these are cur- 
rently too small to offset any 
significant slow-down in tote 
core bus i nes s . 


Norcor set to reduce 


debt through listing 


Greenway back 
in the black 
with f 2.77m 


By Peggy Hofinger 


Norcor, the corrugated board 
maker, is aiming to eliminate a 
CTftgm deficit on shareholders’ 
funds with a proposed flotation 
later this month which will 
value the Norwich-based group 
at about £40m. 

The pathfinder prospectus, 
published yesterday, showed 
Norcor with net debt of about 
rasrn — including some £22m fo 
loan notes. Bank debt of £9 .3m 
was rescheduled last month to 
be repayable on flotation. 

Norcor expects to raise 
between £17m and £20m from 
the flotation to pay the debt 
and fund between £4m and 
£8m fo working capitaL One of 
its production lines is to be 
refurbished from the proceeds. 

A further £18£m fo shares 
will be issued to satisfy loan 
note obligations. The balance 


of loan note holders - repre- 
senting fi&J5Bm fo debt - are 
due to be repaid in 1995- 

Norcor has faced a number 
of diffic ulties since toe £32m 
management buy-out in 1989. it 
failed to meet profit targets 
and was refinanced in 1991, 
while two of the past three 
years' accounts were qualified 
by accountants. The group had 
been capitalising its goodwill, 
without any provision for 
amortisation. Accounting prac- 
tises have been changed in the 
run-up to flotation, and the fig- 
ures for 1983 were unqualified. 

Earnings per share for 1993, 
excluding an exceptional insur- 
ance gain, feS from 16.7p to 
14.6p. Analysts are expecting 
pre-tax profits of more than 
£4m this year, before excep- 
tional items. Last year the 
group made operating profits 
before exceptional of £3£5m. 


Greenway Holdings, the waste 
oil recycling business formerly 
known as Kingston Oil & Gas, 
reported pre-tax profits of 
£2. 77m for the 15 months to 
end-March. 

The outcome compared with 
a deficit of £4.Um for tbe pre- 
vious 12 months, struck after 
an exceptional provision of 
£4. 49m against toe carrying 
value of its investment In its 
discontinued US oil and gas 
operations. 

The company has changed 
its year end to tally with that 
of toe DCC Group, its princi- 
pal shareholder. 

Turnover for toe 15 months 
totalled £11.3m (£6.lm) and 
included £701,000 <£1.58m) 
from discontinued operations. 

Earnings per share emerged 
at 14J>4p (31.44p losses) and a 
final dividend of l-5p (nil) is 
proposed. 


ENGELS - H0LLANDSE BELEGGtNGS TRUST N.V. 
(English and Dutch Investment Thist) 

Established In Amsterdam 

PABTICffiftTION CERTIFICATES 
(Issued by Royal Exchange Assurance) 


Notice of Change in Exch a n ge Property 

Daily Mail and General Trust pic 

£70,000,000 


NOTICE IS H EREBY GIVEK that • gra« «Sridead on Ike ftrtdpwtoq Ccrtificata of Dfo. 
1 U 6 (one Sana nd 6 ctiml be payable la Stetfioj oa or An 10 th M*y 1994 against 
presen tattoo of coupon no. 44. 

Tbe dWdetto wfll bs payable as Mow*. ■olqees to the pnrtaon of tbe ^ipropctaic Nctheriaath 
Tk AJWaritohet* accessary. 


814% Exchangeable Bonds Due 2005 
(ihc “BonJs") 


«e HoUeo wto or »d>tocx n (Meed I 
t WUtoohSiigTkx. ead CJmtcd Ktogdoa 


> Tk*. leer U per cenc 

:TBx at J per ceat on the gran 


TbteiideaB of alter ccBOOtoi with which The N ethftr laa ih hi r e aueia ded on agreements, 
ondet dodaotoa of 15 per ceat Netbertuah Withholding The. 
lb resUau* of all otta reentries, less 2} per cent Netherlands WltfahafclngThx. 

Ca ttfkam Holden reside or oocdde the United Kle grinm win recrire payment les United 
Kingdom laconic Tbs at the rate of 20 per cent oo tbe net aamuot inlcet the co up ons are 
areoopairied by a United Ktapton ACUevitof DOtetesUence.The aforcmeattoarel mesof lax 

mplyoaty in respect of coupon! p res e tt ed for paynsre u op la and tochs(ftngKhbNa» ct)i b c i ’ 1994. 

*cie3dtcrNctberiaadsWithbahgBsThe!^bc«»e«toaeJei*eriieof23peroentand tbe Unlied 
Kin g dom tocccacThjt. where eppflcaMe. at the rate of JO per cent from the net Steriiag nnwinif . 
For tbe period of 10th May 1994 to 10th Ncrrember !9!»4 the dmdead win be pnidinStcrBngax tbe 
rate of csEfuncc rntrng co the day cd petoattatm of the ooupoos- Coopooa presented thereafter 
will be paid in SnalagH the rale efeadmgcniSagoi tbe lwb Nrwin bci 1994. 


Notice is hereby given to the holders nt the outstanding Bunds that, 
following a subdivision of its ordinary shares on ISfb April, 1994 by . 
Reuters Holdings PLC, in accordance with Condirion 6 of the Terms and ' 
Conditions of the Bonds the Exchange P r o perty (as defined In the Terms i 
and Conditions) now comprises 23J98.000 Ordinary Shares of 2 3 pence 
par value (the 'Reuters Shares’*) in Reuters Holdings PLC On Exercise of 
Exchange Rights, Bondholders shall be entitled to have the redemption 
moneys arising on Bonds tendered for exchange applied on their behalf to 
acquire 33L4 Reuters Shares in mpecr of each LL00Q Bond redeemed and 
1,657 Reuters Shares in r es peer of each £5,000 Bond redeemed. The foil , 
amount of redemption monio payable on each Bond deposited for I 
exchange shall be applied in the acquisition of Exchange Property. 


Tb obtain payment, coupon no. 44 most be [presented at die office of HfflSanmd Bank 
Limited, 45 Badi Street. London ECZP2LX. (“&« Paying Agent"). 


tech Street. Loudon 6C2P 
t be Hsted in numerical Orde 
m be left five dear days for i 


from tbe Paying 


tilable on request to foe FByiaa Areal « the above adfoamaf the pnmlCbaMaaa 
PknidpatMoCetti feres torn replace those priaiedooibibackof tbe 


Hatocoof Partfctoatiosi Cati ferns ere entitled to coorcntfacirCcrtlfeaieSBUOonfio a ry toercr 
quoted « AmsKnJeni. Hoktawbbing to careen should eppty to tbe Paying Agent notein tbe 


ROYAL EXCHANGE ASSURANCE 
155 Bubopaaate. London EC2M3UU 


Notice of Change in Exchange Property 

Daily Mail and General Trust pic 


Mediobanca International Limited 


■ firmporstedv^finKBdfeb^ryaieCaym^isbntis) 
A member of the Metfioboica Banking Group 


Notice to holders of Mecfiobanca International 
4 per cent. Notes due 1999 con v er tibl e into 
ordinary shares of ABeanza Assicurazioni &pA 
{the «Notes») 


£50,000,000 1 

5 V«% Exchangeable Bonds Due 2003 1 

(the “BonJs") j 

Notice is hereby given to the Solders of the nursmnding Bonds rhar, 
following o subdivision of Its ordinary shares on 13th AptlL IW4 by Reu ires 
Holdings PLC, in accordance with Condition 6 of the Terms and 
Conditions of the Bonds the Exchange Property (ns defined in the Terms 
and Conditions) now comprises 10.427.528 Ordinary Shares of 2.5 pence 
pur value (rhe “Reuters Shiites") in Reuters Holdings rLC. On exercise of 
Exchange Rights, Bondholders shall he enritled to have the redumption 
monies arising on Bonds tendered for exchange -.tallied hv the Trustee on 
their behalf to acgulre 208.548 Reuters Shares fin- each 0,000 Bond, 
10,427.528 Reuters Shares for each £50.000 Bond and 20.855.058 Rente r» 
Shares for each £100,1X0 Bond. The foil amount of redemption monies 
pnynMc on cnch Bond dcpc&itcd fir exchange Juill K: applied in the 
acquisition of Exchange Property; 


Notice is hereby given that a Board Meeting of Alleanza Asstcu- 
razjorB S.pA has been held on 4th May 1994 inter alia for the 
purpose of calling the Annual General Meeting of the Company K) 
be held to adopt the Company's Accounts for the year ended 
31st December 1&3 and proposals r e l a t i n g thereto. 

Accordingly, pursuant to Condtion 5 (A) of the Notes. Subscription 
Rights to the Company’s shares will not be exercisable between 
5th May 1994 and the last possible dare fixed for the Annual Gen- 
eral Meeting, or where applicable, the day fotowing the payment 
of any dividends, the distribution of which may be resolved by the 
Annual General Meeting. 


. ■ • ; Thft ftna mMYitafeS 
plans jtar 


oo Thursday, May 26. 


6th May 1994 


The Financial Times reaches more senior European 
executives with capital responsibility than any other 
European Publication.* 

If you wish to reach this Influential audience by 
advertising In the Survey please contact; 




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FINANCIAL TIMES FRIDAY MAY 6 1994 


25 


COMPANY NEWS: UK 


Purchase gives fillip to Wassail shares 


By David Wlghtan 

Supporters of Wassail, the 
conglomerate whose acquisi- 
tive ambitions have been 
thwarted In recent years, have 
waited a long time for yester- 
day’s big deal. Expectations 
were extremely high and they 
were not disappointed. 

Wassail’s shares rose I8p to a 
new high of 320p as the acqui- 
sition met with universal 
approval from the company's 
followers. 

Mur Paul Beaufrere, analyst 
at James Capel, the broker, 
summed np: “If you had put 
down on paper everything that 
Wassail wanted from a ileal 
you would come up with this. " 

Mr Chris Miller, chief execu- 
tive, said it closely matches 
Wassail's sbc main 
criteria. 

• Established markets. Gen- 
eral Cable serves three main 
markets in electrical, telecom- 
munications and HWMmiff 
cables. It Is among the market 
leaders in both the electrical 

and fnrw n mar geCtOTS, which 

generate two thirds of its sales 
and are growing steadily. 

In telecommunications it 
makes the heavy duty copper 
cable that connects telephone 
exchanges - now almost 


entirely a replacement market 
following the introduction of 
. fibre optic cable - and is a 
smaller player in the fastrgrow- 
ing data transmission market 

• Everyday products. General 
fiaWg moifp< mainly low-tech- 
nology products which find 
their way into most American 
homes, cars and offices. Its 
products have a high copper 
content - it is thought to be 
the biggest purchaser of copper 
in the US - and relatively little 

labour content 

This makes it relatively 
Immune to import threats, 
rime the transport costs are 
high a nd fha savings to be 
by using cheap non-US labour 
are modest 

The group makes more than 
10,000 different products and 
Mr M411w qftiri it was “inconr 
ceivable” that they were all 
profitable. "But they do not 
have the information available 
to tell.” Introducing such 
syste m s will be one of Was- 
sail's first tasks. 

• Asset-backed. Wassail is 
paying $269i8m (£180m) for net 
assets valued at $331zn at 
the end of 1993. The purchase 
price is less than General 
Cable’s 9320m of inventories 
and receivables. “The copper 
inventory is simply far too 



Chris Miller: deal closely matches Wassail's acquisition criteria 


high, with partly-worked cop- 
per lying about all over the 
place.” 

• Potentially cash-generative. 
"It is not cash generative at 
the moment, but it very 
shortly will be,” said Mr Miller, 
pointing to the company's high 
depreciation char ge 


• Poor relative performance. 
General Cable made an operat- 
ing profit of just $2.3m on sales 
of 5763.5m last year, compared 
with a loss of $32.9m on sales 
of f80O8m the previous year. 

Although of its markets 
have been hit by recession. Mr 
Miller says this is poor even by 


the standards of an industry 
which is “not particularly well 
run". Same of General Cable’s 
competitors In the low added 
value markets are already 

making marg ins of OVCT 5 per 

cent while General Cable’s fig- 
ures for the first quarter of this 
year show margins recovering 
to 2.7 per cent on sales up by 
more than 10 per cent to 
$19L8 ql 

Mr Mfliar said hg would be 
“amazed” if It was ever a 10 
per cent margin business but 
added: "Even if we only get it 
np to industry standards then 
it will be a pretty good deal" It 
has 22 factories "not producing 
at anywhere near capacity, 
whi ch are where they are for 
distant higtAriwii reasons”. 

• History of under-invest- 
ment. Until it was partially 
demerged in 1992 General 
Cable was wholly owned by 
American Premier Underwrit- 
ers, a privately-held financial 
services group which ran it for 

reach 

"The managers were not 
allowed to spend any money 
with more than a two-year pay- 
back,” said Mr Miller, who 
stressed that the capital invest- 
ment needs were "tens of mil- 
lions of dollars, rather than 
hundreds of millions*. 


Blagden calls for £26m to 
help pay off borrowings 


By David Blaofcwafl 

Blagden Industries, the steel 
drum maker hit by recession in 
continental Europe, yesterday 
announced a 5-for-9 rights 
issue to raise almost £26zn net 
of expenses. 

The group is proposing to 
issue up to 25.86m new ordi- 
nary shares at 105p a share. 
The shares closed 2p lower yes- 
terday at 130p. 

The issue was well flagged at 
the of March, when the 
group passed its final dividend 
after diving £10.Gm into the red 
for 1993. The losses, which 
inrinripri gijj_3m of exceptional 
items vnd interest of gutsm, 
breached the interest cover 
covenant with the group's 
main l end er. 

Part of the proceeds of the 
rights issue will be used to pay 
off aom of the debt with the 


main lender, which condi- 
tionally agreed a replacement 
unseamed facility up to Janu- 
ary 1896. 

Blagden said the rest of the 
proceeds would go initially 
towards reducing outstanding 
bank borrowings across the 
group, hi addition, it is expect- 
ing shortly to into a for- 
mal agreement for the «»1 p of 
its plastics packaging busi- 
nesses far SAftm. 

Mr Richard Searle, who 
haeamo chief executive seven 
weeks ago, said yesterday that 
group gearing would fan from 
above 80 per cent to about 25 
per cent following the issue. 

The strengthening of the bal- 
ance sheet would put Blagden 
in a position to finance the 
strategic development of its 
chemicals and protective 

equipment di visions. 

The group warned that there 


had been no significant 
chang es in its main markets In 
the first four months of this 
year. 

The rights issue is frilly 
underwritten by NM Roths- 
child and brokers are Panmure 
Gordon. 

• COMMENT 

The rights issue will bring 
much needed relief from finan- 
cial pressures, which will give 
tiie group breathing space to 
choose its own route forward. 
There is plenty of room fra 1 bet- 
ter margins in the packaging 
division — the rest is up to the 
new chief executive and his 
team if they succeed in creat- 
ing a mare balanced company 
huOt around the mature steel 
drum business — a good «*ah 
cow - Blagden could become a 

much more errftfag bet than it 

has been for same time. 


EuroDollar set for 
£100m summer float 


By Andrew Bofger 

EuroDollar, the US’s 
second-largest short-term car 
rental company, plans to owff 
to the market this summer 
through a placing and public 
offer which Is expected to 
value it at more than ElOOin. 

EuroDollar has about 10 per 
cant of the UK market, con- 
pared with Avis's estimated 
share of 14 per cent 

About 77 per cent of Euro- 
Dollar's r e v enu e comes from 
corporate customers. Its UK 
fleet of more than 12,000 
vehicles operates from 104 
brandies. 

EuroDollar has a master 
franchise agree m e nt with Dol- 
lar, the US car rental com- 
pany, which grants EuroDollar 
a perpetual licence to operate 
an international rental net- 
work in 33 countries. 

Last August EuroDollar was 
the subject of a £118m man- 


agement buy-out from TSB 
Group, which was backed by 
Prudential Venture Managers. 

The company was estab- 
lished as Swan National in 
1973 by UDT, the credit financ- 
ing business which was 
bought by TSB in 1981. 

Swan National was 
relaunched in 1989 as Euro- 
Dollar, to reflect its growing 
international strategy. It la 
now the fifth largest vehicle 
rental crn n pany in fiu> world. 

Mr Freddie Aldous, Euro- 
Dollar's chairman, set Up file 
original business in 1978 and 
led last year’s 11-strong MBO 
team. 

He said: "We believe that 
now is the right ttma to obtain 
a listing to establish a sound 
financial footing for the 
long-term development of the 
group." 

The issue will be sponsored 
by Schroders, with Warburg 
Securities acting as broker. 


This adverriscmcnr is ■«ip i — I in compliance with die requirements of the interactional Stock Exchange of the United 
Kingdom and the Republic of Ireland Limited ("die London Stock Exchange' 1 ). It does not constitute an inviurion 


on 18th May; 1994. 


i opectcd that dealings 


the Company will < 


HEALTHCALL 

GROUP PLC 

{Incorporated and registered in England and Wales under the Companies Act I9SS. Registered No. 2423701) 

Placing and intermediaries offer 

sponsored by 

Morgan Grenfell & Co. Limited 

of 

29,650,122 ordinary shares of 5p each at 105p 
per ordinary share payable in full on application 

Share capital following the offer 


Autboriaed 

Number Amount 

144,960,000 £7,248,000 


in ordinary shares of 5p each 


Issued and folly paid 
Number Amount 

55,185,238 £2,759.262 


HeahhcaQ is the 
aerriees on behalf 
residential homes. 


of duty doctor s ervices in Greu Britain and also provides telephone answering 
and other professionals and domiciliary eyecare services to die elderly and disabled in 


7,412^30 ordinary shares are being offered in die intermediaries offer. An application under the intermediaries 
offer most be made on an application farm provided by James Capel 8c Co. Limited and must be delivered' to James 
Cape! 8c Co. Limited so as to be received with cleared hinds not later than 12.00 noon on 12th May, 1994. 

The ordinary shares now being placed and offered will, on admission to listing, rank, pari passu in all respects with 
the existing ordinary shares ofene Company, and will rank in full far all dividends and other distributions thereafter 
declared, made or paid on the ordinary share capital of Heakhcall Group PLC. 

Listing particulars relating to die Company are available during normal business hours on any business day 
from die Co mpany Announcements Office, London Stock Exchange Tower, Capel Court Entrance, off 
Bartholomew Lane, London EC2N 1HP, far collection only; up to and including 19th May, 1994, and during 
normal bueiness hours on any business day up to and including 19th May, 1994 from: 


Morgan Grenfell Be Co. Limited 
23 Great Winchester Street 
London EC2P2AX 


James Capel 8c Co. Limited 
Thames Exchange 
10 Queen Street, Place 
London EC4R 1BL 

6th May, 1994 


Healthcall Group PLC 
401 South Row 
Central Milton Xeynes 
MX92PH 


mmiiiimiiiiiimmi 



£259,000,000 

Roaring Race Notes Due 1997 

In accordance with the 
pr ovis i ons of the Notes, notice is 
hereby given that, far die six 
month period 4th May, 1994 to 
4th November, 1994, the Notes 
wOl bear int e rest at the rate 
of J-5104 per cent, per annum. 
Cod pan No. 8 vriD therefore be 
payable on 4th November, 1994, 
at £1,388.52 per coupon bom 
Notes of £50,000 nominal and 
£277.78 per coupon from Notes 
of £10,000 nommaL 

S.G.Warburg 8c Co. Ltd. 

Agent Bank 

llllllllllllllllllllllllll 



REDROW 

GROUP 


REMINDER 


REDROW 

SHARE OFFER CLOSES 
12 NOON on MONDAY 
9th MAY 1994 


ThU UnnioiHi hii boa i nw wS h linbp dr Znasc Weld laiiW, 
■ ncmbci at Til Sccuuia and Finirci Aufcurtn . 




■f"t r 1 



iHT.f 


i » - 

i, .. r - 


UsrKe** 






,« » 


s 

ait.- 


THIS NOTICE IS IMPORTANT AND REQUIRES THE IMMEDIATE ATTENTION OF HOLDERS OF 
BONDS. IF HOLDERS ARE IN ANY DOUBT AS TO THE ACTION THEY SHOULD TAKE, THEY 
SHOULD CONSULT AN INDEPENDENT FINANCIAL ADVISER AUTHORISED UNDER THE 
FINANCIAL SERVICES ACT 1986 WITHOUT DELAY. 


ALL1ED-LYONS FINANCIAL SERVICES PLC 


ALLIEDf LYONS 

£200,000,000 

6% % Guaranteed Convertible Subordinated Bonds Due 2008 (the "Bonds") 

FURTHER ADJUSTMENT TO CONVERSION PRICE 

NOTICE IS HEREBY GIVEN to holders of the Bonds (the "Bondholders") that a further 
adjustment will be made to the price at which the Bonds are convertible into Ordinary Shares 
of Allied-Lyons PLC (the "Conversion Price"). The need for adjustments as a result of the rights 
issue announced on 24 March 1994 by Allied-Lyons PLC was set out in a notice to Bondholders 
published on 6 April 1994. The notice stated that the first adjustment to the Conversion Price 
would be from 622p to 61 2p and that a further adjustment from 612p to 604p would be made if 
EC consent to the acquisition of control of the Pedro Domecq Group was obtained and the 
Second Instalment on the Stock Units was called. 

EC consent to the transaction was obtained on 28 April 1994 and the Notice for the Second 
Instalment was posted to Shareholders on 30 April 1994. The further adjustment to the 
Conversion Price from 612p to 604p per Ordinary Share therefore takes effect from 30 April 1994. 


PJ 7 . Macfarlane 
Director 

For and on behalf of 
Allied-Lyons Financial Services PLC 


x Daily Gold Fax - free sample 

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* x;>.\ Irr.j, Cn.:t! An.ityMi LI-'J Tc-I. 0? t - 7-5-1 7 t ?•! 

xe*“ ? S.vOiSov, Stl.-i't. LorScn tVIR 7H». OK • .- Qx (571 d?ii 

* 2 * comrr.od:ly ipcculi-.!'. tor over 22 yc-us c 


LOW COST hoi Q44 0111 

SHARE DEALING SERVICE U ^!: V44 V' * 1 1 


( o\i\:iv'ii)\ ikiim t‘10 .'•iLMj.'U'l i* 

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The Makci Laden tn iprcad berans - FfeaocU and Sporu Fare 
Irotin wd 1 IVifc Wi lli ton e— 071 SJ Jw .7 

A n h ip « i „cnprna% evened M Inn 

Swani^ n ik ipna.li m to m am T rfr!rf tOi 


THE RESULT 
OF FIRM MARKET 
LEADERSHIP 


The Mercantile & General Group in the last year^ 
achieved its best ever profit - £104 million befjg 
tax, compared to a loss of £45 before tax fry 

“The impressive txxra- 
performance in 1993 h fifgppresult 

of Chief Executive J< ||pltr5m , s 

policy of insisting a r need for 

commercially rearaS rtnerships 

between insur a l j lljjB usurers to 

deliver sustaim M Mft rofits. 

a 

I am ca that M&G now is 

ideallafl gfroned to achieve more 
sue pesults in the future than at 

time during the Prudential 
ration’s period of ownership* 

Mkk Newmarch, Chairman of Mercantile and General 
and Chief Executing The Prudential Group. 

Shareholder’s funds strengthened from £206 
million to £287 million. 

General business solvency ratio increased to 86%. 
1993 Profit on General business £144 million. A 
significant turnaround on 1992 loss of £6 million. 
Life profit up by 9% to £73 million demonstrating 
quality and strength of worldwide operations. 
Impressive Standard and Poor’s credit rating of 
AA- (excellent). 



1993 


£104m 



MERCANTILE & GENERAL 

REINSURANCE 

Forging successful partnerships through innovation and outstanding service 

For a copy of the 1993 Review uid Accounts, write to: 

The Secretary. The Mercantile and General Reinsurance Company pic. Moorfields House, Moarfickb, I nnAwi FC2Y 9AL. 


ay* 







26 


FINANCIAL TIMES FRIDAY MAY 6 1994 


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FT CONFERENCES 


WORU) PULP AND PAPB) OONFERBfCE 
London 17 & 18 May 1994 

Arranged Jointly with the Confederation of European Paper industries, the 
conference wl conadw longer-term strategies far tfie tndjstiy port recession: 
discuss restructuring. oompetHfan and trade Issues; review developments In 
ameifllnfl markets find study the impBcstians of the growing environmental 
chatanges taefag the sector- Speakers wB hduda Mr Robert van Oordt W 
KorinMfke M*» BT; Mr Ronald Oberiandar, AMM-ftte Inc; MrAfafc Soufas. 
Arfo Wggkts Appleton; Mr Craig McCteftand. Union Camp Corporation; Dr 
Horiwig Qeflkwt Zanders Ffeinpapfere AG and Mr Thomas Nysten. Fkwoap. 

WORLD GOLD CONFERENCE 
London, G&7 June 1994 

M- Rupert Pennant-Rea, Deputy Gawamor of (he Bank of England wB deftrar the 
opening address at this year's meeting which to timed to coincide wfth the 
tsnwientary {*tehrationa o» B» Bank. Speakera »* Mude Dr Chris State, 

South African Reserve Bank Mr Jean ZwMtien. Swiss National Bstic MrCtam 
Suraar, Anglo American Corporation o# South Africa; Mr Kevin Foo, Bakyrcf* 
Gold; Mr Hany Conger. Homestske Unkig; Mr Victor von Kfemperw, Dresikier 
Bank Mr Phil Wlson. Standard Chartered Bank, The Mocatta Group and Mr 
Mahan TonoM, Tanaka KK 

NORTH SEA OIL AND GAS 
London 13 & 14 June 1994 

The conference w4 review E&P in the main sectors of the North Sea and 
consider the Impact of cunrent oil prices on activity In the province. 
OompetMveness, operetorcantractor retatfanshps and abandonment wtil also 
be tSscussed. Speakers Include: Mr Tim Eggar MP, MWstsr for Energy; Mr 
Hate Rottatmund. She! UK Exploration and Production; Mr Johannas Motors, 
Commission of the European Ccrrxnrties; Mr Ityire Nose, State; Mr Lance 
Johnson. MobS North See; Dr Pater Schoften, Wntetry of Economic Affaire, The 
Netherlands: Dr Rex Gatstord. Amerada Hess Limited and Mr Norman 
Chambers, Brown & Root Limned 

TRANSPORT IN EUROPE43REAT1NG AND FINANCING THE 
INFRASTRUCTURE 
OF THE FUTURE 
London, 15 & 16 June 1994 

The confe ren ce wfl examine Industry tmpfcations at Cammunfty proposals tar 
Trans-European Networks, as well as (he prospects tor public -private 
partn er sh ip s to inanca Suoptfa transport Wrasttuctwe. Speaker include: The 
Rt Hon John MacGregor QBE MP, Secretary of Slate tor Transport. IA Henning 
CMstophtnen. Commission of the European Communities, Mr SogusJaw 
Uberadzki, Minister of Transport, Poland. Mr Ranpt Math rani, Managing 
Director, West Merchant Bank, Mr Alessandro Ovi, IFU SpA and Mr Bertrand 
H o za chuc h, SAPRR. 

EUROPEAN TELECOMMUMMTION3-RE8PONDMG TO 
CHANGE 

London, 20 & 21 June 1994 

Thte year* meeting wit focus on the challenge of emerging compe ti tion and 
convergence tor operators, regiistorc and budnees users in Europe. The issue 
of network modernisation and financing wB also be addressed. Speakers 
Include: Mr BS WlggJesworth, OFTEL; Mr CandfcJo Vetequez-Gaztalu Rite, 
T Mefan toa de Eapana SA; Mr Michael Hepher. British Tetecomnmrt catl ons Pic; 
Mr Wim Dffc. Royal P7T Nederland NV; Mr Mike Harris, Mercury 
Comrnunlcationa Lid: Mr Eugene Carmen, Nynex CabieComs Limited; Mr 
MichasIPhair, Director, I'M RttihscMd& Son Lid; Mr Berll Thamgten, Tela AB. 

MULTIMEDIA -VISION AND REALTTY 
London, 12 & 13 July 1994 

This msfar busfcwnr fansn wB facus on the bay issues facing tills tast-growtog 
Industry; the regufettxy and legd framework for hduatry development: financing 
the miBmetSa future; assessing real business appications and potential and the 
role of strategic alliances in responding to the developing multimedia 
mertetplace. Speakers include Ptotesaor tflchotaa Negropan i e. Masseehuaetia 
Institute of Tetfinteogy; Mr Terry Hershey, Time Warner totaractiva; Mr Atired C 
Sites, Hearst New Media and Technology; Dr Reinhard Buscher, European 
Commission; I* Peter Jab. Reutere Holdings PLC; Mr Scott Menton, PhHpe 
Medta. 


Afl enquiries should be addressed to: Financial Times Conference 
Organisation, 102-108 Clerlcenwefl Road, London ECfM 5SA. Tel: 
071-614 9770 (24-fir answering service) Tetoc 27347 FTCONF G, 
Fax: 071-873 3975/3969. 


NOTICE 

Cookson Finance NY. 

5%% Guaranteed Redeemable 
Convertible Preference Shares due 2004 
guaranteed on a subordinated basis by, and 
convertible into Ordinary Shares of, 

Cookson Group pic 

Notice to hereby given that pursuant to tha Articles of incorporation of Cookson 
Finance N.V. (the "Issuer") constituting the 5 Vn, Guaranteed Redaafnabia 
Comertfblo Preference Shares due 2004 (the “Preference Shares"}, the issuer 
has decided: - 

(a) not to otea ta pay dtottonds aj a higher level than 53>% por annum; 

(b) not to elect to gra« the holders at the Preference Shares the option to require 
tin issuer to redeem such Preference Shares on 1st June. 1999: and 

(cj not io enter Into any arrangements to procure the purchase by a third party of 
ofl Preterenoa Shares which would otherwise be redeemed by the toeuer on 
tot June, 1994 pursuant to the option referred to Mow. 

Hotdwo o» the Preference Shares are hereby rwrtnded ot their right to reqUra the 
tosuer to redeem such Preference Shares on let June, 1994 . at a redemption price 
ot I34£s% of the Paid Up Value ol the Preference Shares together with dMdends 
waved to that date. The Paid Up Value ot each Preference Share Is CiJHW. 
kiontortc exerotse such option, tfw holdarofany Preference Share must deposit at 
any time after nth May, 1994 and prior to Dm doaa of buskwsa ki the relevant pi ace 
of dotivery on 2tat May, 1994 such Reference Share together with a written notitto 
exoreWng the opaon {the "Option Notice! with any ot the Paying Agents named 
below. The torn qt Option Notice to obtainable from tiw spedflad olfloe at any ot the 
Paying Agents. 

An Option Notice, once given, shaft be Irrevocable save tint the holder giving an 
Option Notice in respect of any Preference Share s/jat retain the right io require 
such Pielarance Sham » be converted Into Ordinary Shares ol Cookson Group pte. 
In accordance with the tones of the Preference Shares, prior » the dose of 
txrslnen in the relevant ptace ol datvary on ist June, 1994. 

PRINCIPAL PAYING AGENT 
The Chase Manhattan Bank, NJL 
WootgatB House, Coleman SbeeL London EC2P 2HD 
PAYING AND CONVERSION AGENTS 
Chase Manhattan Bank Chase Manhattan Bank 

LuxembourySJL (Swfbnrtand} 

SRuoPlootto 63RueduRh0ne 

L-2338 Luxembourg CH-1204 Geneva, Switzerland 

Banquo Bruxelles Lambert SA. 

24 Avenue Marnix, B-10S0 Brussels, Belgium 

For and on boluffoi Cookson Finance N.V. PnniUnrMi I** 
By: The Chase Manhattan Bank, NJL LaJUKdULIIm 

London. Principal Paying Agent cookswi Group pic 

Approved lor the purposes ol Section 57 ot the FTnancW Services Ad 1986 by 
Casanova a Ctl, ■ member of SPA. 


COMPANY NEWS; UK 


MEPC pays £67m for 
Midlands properties 


By Vanessa HouMor, 

Property Correspondent 

MEPC, the quoted property 
company, has bought a £67m 
portfolio of office and indus- 
trial properties m the Midlands 
from the Richardson Group, a 
private property company. 

It is also negotiating with 
John Taring, the construction 
company, about acquiring Cas- 
tlecourt, a Belfast shopping 
centre. 

The 14 properties being 
aeqedred from Richardson total 
L75m sq ft of space and range 
from industrial estates to 
newly erected government 
offices at the Waterfront, 
Merry A3I1, West Midlands. The 
overall yield was 9.5 per cent 

Two properties in the portfo- 
lio are under construction, 
namely the St Chads office 
development in Birmingham 


By Pam Cheeserigtrt, 

Mk&ands Correspondent 

Forward. Group, the specialist 
circuit board and chemicals 
manufacturer, raised «»""■! 
profits by 64 per cenl; helped 
by the first contribution from 
Central Circuits, a Telford- 
based company purchased 
from the receiver in February 
1993. 

Over the 12 month* to Janu- 
ary 31, pre-tax profits improved 


Polypipe 
expands 
in Europe 

Polypipe, the manufacturer of 
plastic pipes and fittings, has 
gained entry to several Euro- 
pean markets via the acquisi- 
tion of Janoplast for an initial 
FFr84m (£9J33m) cash. 

Further consideration to a 
maximum of FFr3m will be 
payable in two instalments 
providing Janoplast’s net 
assets at completion are at 
least FFrSSm. 

The deal is Polypipe’s first 
European purchase and gives 
the group a manufacturing and 
distribution base in mainland 
Europe and takes it Into 
the French, German, Benelux 


and the Waterfront Business 
Park at Merry HHL The final 
price will be determined by the 
letting of these properties. 

MEPC Said thfi arqntsifinns 
gave it an interesting twtasd 
portfolio to which it believed it 
could add value. 

Richardson said it intended 
to sell more investments this 
year, to “take full advantage of 
the current buying interest In 
investment properties”. 

In a separate announcement, 
John La fog said tt had received 
a number of unsolicited offers 
for Castlecomt It is pursuing 
exclusive negotiations with 
MEPC. 

• Hanson Properties has sold 
a portfolio of properties for 
£85m to O&H Properties, a sub- 
sidiary of O&H Holdings, a 
privately-owned development 
company, based in Hammer- 
smith, west London. 


from ci 23m to fig-Qgm. Acquisi- 
tions contributed £5.6m to 
turnover which jumped to 
£2fl.7m (£lZ5mX and £595,000 to 
operating profits of £2.23m 
(£L44m). 

The purchase of Central Cir- 
cuits widened Forward's manu- 
facturing base, alftwm gh it has 
temporarily taken the group 
closer to the mass market for 
circuit boards and diluted turn- 
over of its usual specialist low 
volume, high value business. 


ChartweU 

Dealings in Chartwell Group, 
the manufacturer of carpet 
tiles and toilet cubicles, were 
suspended at 48p yesterday at 
the company's request “pend- 
ing shareholder approval of a 
proposed substantial acquisi- 
tion, the terms of which axe 
currently being finalised”. 

Chartwell has been linked 
recently with Sir fim Bell, and 
Ms Lowe Bell public relations 
company. There has been spec- 
ulation that Lowe Bell could be 
seeking a listing by reversing 
into Chartwell. 

Emap purchase 

Emap, the media group, is to 
acquire BUM - a monthly 
men’s style and general inter- 


The portfolio, which Is 
spread across England, Scot- 
land and Wales, is composed of 
office buildings (57 per cent) 
and shopping centres (38 per 
cent) together with some ware- 
houses (5 per cent). 

Hanson said it was disposing 
of the portfolio as part of its 
general strategy of se l li n g 
properties that had been 
acquired with large acquisi- 
tions. 

About £3Qm of the initial 
consideration - which repre- 
sents the approximate net 
asset value of the properties - 
is in guaranteed deferred 
notes. 

The deal was funded by GE 
Capital, a subsidiary of the 
General Electric Company, 
which has provided structured 
finance that included a share 
in the equity appreciation of 
the properties. 


Looking at the group's main 
markets, Mr Ray Chamberlain, 
MiajlTwaTL Sfl jfl there bad hpfln 
some improvement in the elec- 
tronics industry, but that tele- 
communications was more of a 
growth area than military busi- 
ness. The group's business 
with medical customers was 
also growing: 

Earnings per share rose from 
lL06p to I6.71p. The proposed 
Hnflt dividend is 3p, bringing 
the total to 5p (&3p). 


est magazine - from Tayvale 
for an undisclosed sum. 

Mr Tam Moloney, managing 
director of Emap's consumer 
magazine division, said that 
FHM - which has an ABC fig- 
ure of 76,541 - would enhance 
the company's portfolio of suc- 
cessful male-oriented maga- 
zines and fashion titles. 

Castle Co mma 

Castle Communications, 
through its Castle Copyrights 
subsidiary, has agreed to buy 
the rights to the Solar cata- 
logue of master recordings, 
excluding the US, Canada and 
Africa, for $2m (£L3m) cash. 

The Solar catalogue com- 
prises some 400 soul, dance and 
disco tracks performed mainly 
by black American west coast 
artists, and is owned by Sound 
of Los Angeles Records. 


Co-op 
societies 
in merger 
proposal 

By NeB Buddey 

Co-operative Retail Services, 
the second largest co-operative' 
r etaile r in the UK, yesterday 
launched a new proposal for a 
merger with the largest, Co-op- 
erative Wholesale Society, to 
create a significant retailing 
force. 

The combined societies 
would have animal turnover of 
more n»n £3bn - about 75 per 
cent from grocery sales - mak- 
ing them the UK’s seventh 
largest retail group. 

The latest of three attempts 
to merge the groups foundered 
In 1990 when they foiled to 
agree on the structure of the 
board. But as the CBS pub- 
lished a new merger mani- 
festo, “The Time Is Right”, 
both groups said they were 
hopeful. 

“There Is a tangible will 
within both societies to make 
it happen," said Hr Harry 
Moore. CRS chief executive. 

The CWS responded that it 
was on the record as support- 
mg 2 l merger. 

“If the CRS and its members 
are enthusiastic and convinced 
of the case, we welcome that" 

The CRS move came as it 
revealed a small increase in its 
pre-tax surplus for the year to 
January 29 to £26.7m, against 
£25-9m which excluded a £22m 
exceptional gain from the sale 
of its dairy business. 

Turnover fell 6 per cent 
from £L3Sbn to £l-27bn, but 
adjusting for the dairy dis- 
posal, sales foil 0.7 per cent 

Mr Moore said this was a 
“resilient performance” amid 
tough competition in the gro- 
cery market and given that the 
previous year was 53 weeks. 
He added that the CRS, which 
includes the Pioneer, Leo’s and 
Stop & Shop formats, had held 
market share and increased 
gross margin - in contrast to 
many grocery groups - 
through better buying and 
adjusting the product mix. 

However, Mr Moore warned 
that co-operative retailers 
faced the threat of being 
squeezed between discounters 
and “premium chains”. A 
merger was vital if they were 
to fight back. 

Failure to achieve that 
“could signal the end of the 
Co-op as a serious national 
retail force”. 

The benefits included eost 
savings, increased financial 
strength for investment and 
development, doubled purchas- 
ing power, and the ability to 
compete nationally with cohe- 
sive marketing campaigns. ' 

The main issue, as in 1990, 
wiD be achieving the correct 
balance an the board between 
individual members and the 
CWS’s corporate members, 
which include CRS itself and 
regional co-operative societies 
which have joined the CWS in 
recent years. 

Mr Moore said changes in 
the structure of both groups 
since 1990 increased the 
chances of agreement 


Greencore makes 
£2.5m Belgian buy 

Minch Norton, the malting 
subsidiary of Greencore 
Group, has agreed to acquire 
the malting business and 
assets of HDM Group, a Bel- 
gian company which is In 
receivership. 

The consideration will be 
BFrlSOm (£2J5m). 


Acquisitions behind 64% 
increase at Forward Group 


Mercantile & General Re 
swings back into the black 

By Richard Lapper a year ago owing to rate increases in many 

areas of the international market The rate rises 
Mercantile & General Reinsurance, the helped this segment of tha business report prof- 
reinsurance subsidiary of the Prudential, y ester- its of £5.Gm C£l43J5m losses), 
day returned to the black. In contrast, the group increased its premium 

Pre-tax profits of £104m were achieved for from hfo reinsurance, in which it is an interna- 
1993, against losses of £45m last time, despite a tional market leader, to £765m (£Si3m). Life 
£49m strengthening of reserves against claims profits amounted to £73m (£67m). 
from business underw rit ten in prior years. Expansion in the life area was focused in the 

“The results have clearly benefited from our North American medical expenses market 
policy of profit before volume,” said Mr John Extra reserves were needed to meet claims 
Engestrom, group chief executive. M&G Re from past catastrophes and marine reinsurance 
reduced its exposure to general reinsurance fol- liabilities incurred on policies underwritten in 
lowing heavy catastrophe claims in recent prior years. An extra £9m was set aside to meet 
years. claims relating to asbestos and pollution. 

As a result, general re insur ance premium The shareholders' operating result - invest- 
income foil from £409m to £332m, although the meat income plus “smoothed’’ capital gains - 
fall was less steep than the company envisaged amounted to £25.6m (£SL5m). 


NEWS DIGEST 


and eastern European markets. 


Aerostructures 
expects £26m 
from flotation 


By David BtedcweH 

Aerostructures Hamble 
Holdings, the former British 
Aerospace aircraft components 
subsidiary, expects to raise 
about £26m net of expenses 
when It comes to the market 

this month. 

The pathfinder prospectus, 
published yesterday, said the 
money would be used, along- 
side a new £lom unsecured 
revolving credit facility, to 
repay £35m of debt incurred 
during the £47.6m management 
buy-out in 1990. It will be 
raised through a placing and 
intermediaries offer. 

Aerostructures Hamble, 
which occupies the site hear 
Southampton where Sunder- 
land flying boats were built, 
made operating profits of 
£7J9m on turnover of £70.4m 
tn 1993, compared with profits 
of £7m cm turnover of ETLSm 
in 1992. The pathfinder puts 
pro forma pre-tax profits for 
1993 at £5.6m, after allowing 
£2m for restructuring. 

The charge will cover the 
cost of shedding a farther 200 
jobs this year. At the end of 
December the workforce had 
been reduced from 2,000 at the 
time of the buy-out to 1,635. 


The company, which is 
expected to be valued at more 
than £70m. depended on BAe 
for 33 per cent erf its business 
in 1990, but reduced that to 78 
per emit last year. 

Mr Andy Barr, chief execu- 
tive, said new orders already 
won, including a substantial 
contract from Boeing for wing 
parts for the 737-700, would 
reduce the level further this 
year. He described the broad- 
ening customer base as “blue 
chip". 

The senior management, all 
with experience at Rover 
Group, is implementing Japa- 
nese techniques learnt in the 
car business but not previously 
used in the aircraft industry. 

Mr Barr said that margins 
had unproved from &9 per cart 
to 1L3 per cent in three years, 
and he was seeking c on ti n ni n g 
improvements. 

The rnar^agpmpn( [ in Hu rting 

Mr Barr who has a 14B per 
cent stake, will be selling some 
shares. Legal & General Ven- 
tures Partners, the largest 
institutional holder, with 36.7 
per cent, is also likely to sell 
some of its investment 

The flotation is sponsored by 
NM Rothschild and the broker 
is Smith New Court 


London Capital to 
get £150m valuation 

the west end are expected to 


By Simon Davies 

London Capital Holdings, the 
property investment company 
owned by Citibank, will offer 
up to £iQ4m of new shares in a 
flotation, valuing the company 
at dose to ElSOm, a small dis- 
count to its net asset value of 
£160m. 

Citibank will sell between 
65 per cent and 70 per cent of 
its shares, while LCH - the 
former Randsworth Trust prop- 
erty portfolio - will raise 
a further £15m from new 
shares. 

The value of LCJTs 14 prop- 
erties increased by 7.25 per 
cent to £244.8m between 
December and mid- April Man- 
agement is optimistic that with 
limited new property “ coming 
on stream before 1996, the out- 
look for property values in 
London’s west end remains 
positive. 

According to James Capel, 
the brokers, vacancy rates in 


fall from 8.7 per cent in March 
1994 to 2^ per cent by March 
1996, and prime rents should 
rise 30 per cent by the end of 
1995. 

However, the outlook for 
property flotations has became 
less rosy since LCH announced 
its intention to float The sec- 
tor’s premium to asset value 
has an but disappeared, while 
the company will have to com- 
pete with a number of property 
flotations, including Argent 
and Pillar. 

LCH has recently signed a 
£100m loan facility from HSBC, 
and will have gearing of less 
than 50 per cent Mr Nigel 
Kempner, joint managing 
director, said he would be 
happy to see gearing rise to 
about 70 per cent 

The shares will be offered 
through a placing and public 
offer, sponsored by Baring 
Brothers. The pricing will be 
announced on May 25. 


Vymura resists slide 
with £39m placing tag 


By DavW Wlgtiton 

Vymura, the wallcoverings 
group which was originally 
part of ICI, has resisted the 
slide in new issue pricing and 
is to be valued at £38 -6m via a 
placing price erf 150p. 

Mr David Simpson, a director 
of Barclays de Zoete Wedd, 
Vymura' s sponsor and finan- 
cial adviser, said the price was 
exactly as planned when the 
flotation was first announced 
six weeks ago. 

“We have been seeing some 
softening of prices hut there is 
still an appetite for quality 
new issues,” 

He added that in Vymura’s 
case there was a comparable 


quoted company, Fine Decor, 
whose share price has not 
weakened in the past few 
weeks. 

The placing price represents 
14.5 times last year's earnings 
per share. 

The notional yield is 3.7 per 
cent, slightly higher than Fine 
Decor. 

BZW is placing a total of 
£24.1m of shares, raising a net 
£J0m for the company. 

Just over half the new 
money will be used to repay 
preference shares held by insti- 
tutions that harirari a manage- 
ment buy-out in 1992. 

UBS are brokers to the issue. 
Dealings are expected to start 
next Thursday. 


‘t 



rrmsicc 

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This notice is issued in compliance with the requirements of The International Stock 
Exchange of the United Kingdom and the Republic of Ireland Limited (“the London Stock 
Exchange"). Application has been made to the London Stock Exchange for the whole of the 
Ordinary Share capital of Capitol Group pte ("Capitol"). In issue and now being issued, to be 
admitted to the Official List. It is emphasised that this advertisement does not constitute an 
offer or invitation to any person to subscribe for or to purchase securities. 

It is expected that dealings in the Ordinary Shares of CapitoJ will commence on Tuesday; 
17 May 1994. 



Capitol Group pic 

(Incorporated In England and Wales with Registration No. 1698365) 

Placing 

by 

Granville Davies Limited 

of 3,200,000 Ordinary Shares of 5p each at 125p per Ordinary Share 


Share capital immedl&tefy following the Placing 

Authorisecl Issued and fully paid 

loonnnnn Ordinary Shares Number Amount 

12,900,000 £645,000 of 5p each 9,200,000 £460,000 

Copies of the listing particulars may be obtained during normal business hours on any weekday 
(Saturdays and public holidays excepted) up to and including Monday, 23 May 1994 from: 


Granville Davies Limited 
Mint House 
77 Mansell Street 
London El 8AF 


Capitol Group pte 
82 St John Street 
London 
EC1M4JN 


and during normal business hours up to and including Tuesday, 10 May 1994, for collection 
only from the Company Announcements Office. London Stock Exchange Tower Capel Court 
entrance, off Bartholomew Lane, London EC2. 

6 May 1994 


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FINANCIAL TIMES FRIDAY MAY 6 1994 


27 


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jita! to 

valuation 


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•ll; r - • 

i * 

\ : 

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H'**' 



COMPANY NEWS: UK 


After three years of successive losses UK carmaker looks set to return to the black 

Ford of Britain cuts deficit to £92m 


By Kevin Dona, 

Motor Industry Corre s pondent 

Ford of Britain, the leader of 
the UK new car m arke t, suf- 
fered a third successive year of 
heavy losses in 1998 (excluding 
Jaguar) and reported the worst 
financial performance of any of 
the l parting carmakers in the 
UK 

It reduced its pretax loss to 
£92m, however, from a deficit 
or £353m in 1992 and a loss of 
£430m in 1991 (excluding Jag- 
uar): 

Ford claimed yesterday that 
it was on the road to recovery 
and had performed better than 
expected so far this year, 
helped by the growing strength 
of the UK new car market 

It is understood that Ford of 
Britain returned to profit in 
the quarter year, and 
l£ is expected to achieve a sig- 
nificant profit for the whole of 
1994. 

The UK arm’s pre-tax losses, 
which have totalled £875m in 
the past three years - exclu- 
ding Jaguar, the UK luxury 
carmaker, which is owned 
directly by the Ford parent 
company tn the US - contrast 
sharply with the robust profits 
earned throughout the reces- 
sion by Vauxhall, the UK sub- 
sidiary of General Motors and 
Ford'S chief rival in the UK. 

VauxbalTs pre-tax profits fell 
by only 17 per cent last year to 
puts l-m and it hag earned total 
pre-tax profits of £780.5m in the 
past four years. 


' In the. UK 


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Among the other volume car- 
makers in the UK, Rover 
Group, which was taken over 
by BMW of Germany in March, 
suffered a pre-tax loss of £9m 
last year, but it achieved a con- 
siderable tumround at the 
operating level with a profit 
before Interest and tax of £56m, 
compared with a deficit of 
£40m a year earlier. 

Peugeot Talbot, the UK sub- 
sidiary of the PSA Peugeot 
Citrotn group of France, has 
suffered a continuous denting 
in profitability for the past 
four years and fell into a pre- 
tax loss of £8.7m last year, 
from a profit of £10 Jan in 1992 
and a peak profit of £12Bm in 
1969. 

The reduction of Ford of 
Britain's pre-tax loss last year 
was helped by one-off gains 
from the disposal of Ford 
Credit and Aston Martin to 


the Ford US parent com- 
pany. 

Without these moves the pre- 
tax loss would have been 
£i36m. Ford of Britain’s auto- 
motive operations had an oper- 
ating loss last year of £U4m 
compared with a loss of £237m 
In 1992. Turnover declined 
slightly to £5-33tm (£&38bn). 

Ford of Britain, traditionally 
one of the most profitable parts 
of the Ford group worldwide 
before it plunged deep Into loss 
during the UK recession, has 
been forced into a drastic 
restructuring with heavy cuts 
In its workforce and a big 
reduction in the manned 
capacity of its British plants. 

The workforce of the core 
Ford of Britain automotive 
operations had been cut to 
30,400 by the and of 1993, from 
34^200 a year earlier and 39,000 
at the end of 199L 


Its share of the UK new car 
market has been under heavy 
attack, not least from Vaux- 
halL 

FOrd’s new car sales tn the 
UK rose by 8 per cent last year 
to 381,671, but it under-per- 
formed the market in which 
overall new car sales increased 
by 1L6 per cant 

Its UK new car market share 
fell to 2L5 per cent, its lowest 
level for more than 20 years. 
Its share has bean gradually 
eroded from a peak of Just over 
30 per cent in the early 1980s. 

By contrast Vauxhall has 
doubled its market share since 
the beginning of the 1980s, 
from 8.6 per cent In 1981 to 17J. 
per cent last year, while the 
PSA Peugeot Citroen group 
has also made big inroads, 
inratBurtiig tts UK market share 
to 12J3 per cent last year from 
only 5.4 per cent 10 years ago. 


Ford's problems in the UK 
were compounded last year by 
the collapse of its car exports 
to continental Europe, which 
fell to only 11,600 from 74,900 a 
year earlier, as west European 
new car sales suffered their 
steepest fell of the post-war 
period. 

Its overall vehicle exports, 
including commercial vehicles, 
dropped to 82,000 from 162.000 
In 1992 and 214.000 In 1991. 

The total output from its 
three vehicle assembly plants 
at Dagenham, Balewood and 
Southampton fell by 13 per 
cent to 391,100 (449,600). Engine 
production at Dagenham fell to 
399,713 (567,424). while engine 
output at Bridgend dropped to 
472^31 (510,052). 

The assembly plants worked 
at only 63 per cent of installed 
capacity last year compared 
with 71 per cent in 1992. 

As production was cut back 
to keep pace with falling 
exports, Ford had to cut a total 
of 145 shifts at the vehicle 
assembly plants - 61 at the 
Transit van plant at Southamp- 
ton, 54 at the fiesta small car 
plant at Dagenham, arid 30 at 
the Escort plant at Halewood. 

The decline in exports of 
cars and components cut the 
value of Ford of Britain's total 
exports to £L7hn from p? 9tin a 
year earlier. It has had a bal- 
ance of trade deficit for the 
past 13 years, and the deficit 
increased substantially last 
year, although Ford refused to 
iti qHrmp details. 


Positive outcome for Chiroscience drug trial 


By Daniel Green 

Chiroscience, the Cambridge 
biotechnology company, has had posi- 
tive results from its first set of clinical 
trials since its flotation in February. 

The phase one trial was conducted on 
14 young, healthy male volunteers and 
compared Chirosdence’s purified form 
of an existing anaesthetic with the 
established version. The purified ver- 
sion “demonstrated that it hag a higher 


tolerability", said Mr John Padfield, 
chief executive. “It also demons trated 
its efficacy." 

Chiroscience purifies drugs that are 
sold as a mixture of two virtually iden- 
tical chemical structures. By separating 
the two structures it hopes to eliminate 
one that produces more side effects or 
is less effective: 

The approach should also cut the 
time taken for a drug in trials to be 
approved because much of the work 


needed for approval has already been 
done with the mixture. 

The trials were an a purified version 
of the long acting local anaesthetic 
bupivacaine called levobupivacaine. It 
is usually used for women in childbirth 
as an epidural. 

Mr Padfield said that independent 
industry figures showed the global mar- 
ket to be worth about $10Qm (£68m) a 
year. It is supplied in the UK by Astra, 
the Swedish, company, under the b rand 


name Marcain. However, the potential 
market for levobupivacaine is substan- 
tially greater than this given “improved 
safety profile and possible additional 
indications such as cancer pain,” said 
Mr P adfield. “Levobupivacaine also has 
potential applications in day surgery 
where a safer, long-acting agent could 
encourage an increased number of long 
surgical procedures to be carried out 
under regional rather than general 
anaesthesia," he said. 


Lower costs 
put BMSS 
in black 

BMSS, the USM-traded timber 
and building materials mer- 
chant, benefited from reduced 
distribution and administrative 
costs and lower interest 
charges and returned to the 
black in the 12 months to Janu- 
ary 3L 

The pre-tax outcome - 
£314,139 against losses last 
time of £95,498 - came on turn- 
over marginally down at 
£14.9m (£152m) and was struck 
after a £284,000 reduction in 
distribution, and administrative 
costs to £4£4m. Interest pay- 
able declined to £184,418 
(£306,360). 

Gearing at the year-end 
stood at 29 per cent (24 per 
cent), reflecting the acquisition 
in December of Price & Brown, 
a heating and plumbing opera- 
tion. 

A proposed final dividend of 
L5p maintains the total at 3Pi 
earnings per share were 3p 
(losses of 0.7p). 

Radios makes good 
start to this year 

Shares in Radius, the USM- 
traded computer systems and 
maintenance company, Jumped 
4p to 34p yesterday after Mr 
Mike Roberts, chairman, told 
the annual meeting that trad- 
ing in the first three months of 


1994 had shown a marked 
Tmpm winpnt over tna compa- 
rable period. 

In the 13 months ended 
December 31, the company 
incurred .a pre-tax' loss - of 
£H7m (EL .23m profit far 1992). 

Seafield in 
discussions 

Seafield, the Dublin-based 
transport warehousing and 
property company, said yester- 
day that it was in talks with 
Tmari that znay or may not lead 
to a merger of the two compa- 
nies. 

It was not expected that such 
a merger would involve a gen- 
eral offer to Seafield sharehold- 
ers. A feather statement would 
be made within the next two 


Westminster 

Scaffolding 

Poor trading conditions and 
low margins were cited by 
Westminster Scaffolding Group 
as the reasons behind deepen- 
ing losses for the 14-months to 
December 3L 

The pretax deficit amounted 
to £4J23m, against £2. 46m for 
tiie preceding 12 months, and 
was struck on turnover of 
£5.72m (£6. 18m). Losses per 
share came out at iSp (8.6p). 

Finsbury Growth net 
asset value improves 

Finsbury Growth Trust had a 


NEWS DIGEST 


net asset value of 125.4p per 
share at March 31, up from 
U29p at the September year- 
end and 10&9 p at end-March 
1993. 

MrMichael Reeve, chairman, 
said the 11 per cent advance in 
value over the last six month 
period outperformed both the 
trust’s benchmarks - the 
FT-SE 100 and the FT-SE-A All- 
Share - which rose L6 per cent 
and 3.7 per cent respectively. 

The trust saw net revenue 
improve to £504,000 (£455,000) 
in the six months to end- 
March, equivalent to earnings 
of Lip (lp). 

The interim dividend is 
maintained at 09p. 

Highcroft Inv net 
assets increase 13% 

Highcroft Investment Trust 
reported net assets per share 
up 13 per cent to 314p at the 
end of 1993, against 277p a year 
earlier. 

After-tax . profits climbed 
from £643.000 to £748,000 in the 
year. Earnings were 159p (14p) 
including gaina on disposals of 
assets, co- 13i3p (118p) exclu- 
ding the same. The final divi- 
dend is JL3p for a total of 52p 
<4Bp). 

Credit lifts Regent 
Corp to £5.1 m 

Regent Corporation, the prop- 
erty developer formerly known 
as NouveDe, returned pre-tax 
profits of £5.I5m for the year to 
end-March. The figure included 


a credit on voluntary arrange- 
ments totalling £4Bm. 

The company was trans- 
formed over the year and com- 
parisons are not meaningful. 
For 1992-93 there was a pretax 
deficit of £3.91m after taking 
account of disposal losses erf 
£3. 69m. 

For 199394 pretax profits of 
continuing activities amounted 
to £606,000. That mainly 
reflected the merger of the 
Regent housebuilding business 
in 1993 together with subse- 
quent acquisitions. 

Basic earnings on continuing 
operations emerged at 2.35p. 
There is again no dividend but 
the directors anticipate being 
able to resume payments in the 
foreseeable future. 

Sales totalled £3-15m. Year- 
end gearing stood at 53 per 
cent but had been reduced to 
nil by yesterday. 

Aminex pins hopes 
on Russian link 

Aminex, the Irish oil group, 
reported increased losses in 
1993, reflecting substantial 
administration expenses and 
the costs of its foiled hid for 
Tnskar Resources. 

On sales from continuing 
operations little changed at 
I£281,702 (£274,800). losses 
before tax deepened to 
I£135200 (I£66,307). 

General and administration 
expenses rose to l£2 17,808 
(1039,692). An exceptional item 
of I£82,675 related to Tnskar. 
Losses per share were 
unchanged at 0.01p. 


Amin ex hasinvested $4. 68m 
(£3 2m) in a joint venture with 
Komineftj, a state-owned oil 
production company in the 
Kami republic of the Russian 
Federation. Production from 
the Amkomi project has been 
raised to some 2J200 barrels per 
day and farther increases are 
planned. 

Aminex expects the Russian 
output to dramatically boost 
turnover this year. 

Radamec drops 
to £710,000 

Radamec Group, the electron- 
ics and precision mechanical 
engineering concent, suffered a 
fall in pre-tax profits from 
£832,000 to £710,000 in 1993, an 
unchanged turnover erf £UAn. 

Attributable earnings 
dropped from £841,000 to 
£655,000, equivalent to 3.6p 
(4.6p) per share. The final divi- 
dend is 1.2p for a total of L7p 
05P). 

Gearing rose to 24 per cent 
(20 per cent) on net borrowings 
Of EL -24m (£967,000). 

Titon declines 
to £1.01m 

Profits of Thun Holdings, the 
USM-traded building products 
maker, declined from £L05m to 
£1.0lm pre-tax over the six 
months ended March 31. 

Turnover expanded from 
£5.69m to tSiUm. Kamlii per 
share emerged at 621p (6.49p) 
and the interim dividend is 
lifted to L4p (i-3p). 


BENETTON GROUP S.p A 

Registered Office: Via V3laMinelli, 1 
Ponzano Veneto (TV) - Italy 

Issued and fully-paid capital stock: Lire '7,276,882^00 
Treviso Company Register No. 4424 

NOTICE OF ORDINARY AND EXTRAORDINARY GENERAL MEETWG 
Stockholders are called tn an Ordnay and ExtnwrcUnsy General Masting to be held, in first caVng, at 1 0.30 ajm. on 
May 25. 1994, at Via VM MneH 1. Ponzano Veneto (IV). Italy, orln second caflng. if necassay. at tha same time and 
place on May 26, 1894. 

AGENDA 

PrJn«YM«ftM 

1 .To receive tfra reports at the Board at Directors and the Board of Statutory Auditors; 

JLTo vamtne tha financial statements as of December 31, 1883: rotated raaAjflona; 

3. To appofrrt ttia Board of Directors, having determined how many Directors to appoint and tha length of thair tarm; 

4. T0 fix tho amdwTwnts of me Board of Dfisetora; 

ShTo appoint 0 Arm of ^d e pendent auditors to audit tto financial statements of tta Company and the consoNdated 
finwwsa] statements of tho Group far tha thres-yaar period 1995-1997. authorizing the related annual remuneration. 

BdraflgBnavMflaana 

T.TofnodWV the StocWio(dBfO’nJSOfutfart dated April 3ft 79PT, at amended on Apr* 39. 1S$3, rotating to Oie tnasaso in 


2 .T 0 modify ardda S at the Arddaa of Association: 

ATo resolve upon a bond Issua 

J Stockholdars may attand the Meeting if they dapoettmeir shares, attest ftw days bafamhand. at the 
I offce of the Company ©r^ Wth ono of tha foftwdng agents: 

Monte Thofi SjsA, BaneaCommarcWa ttaUana. Bancs Nazkmdo del Lovoro, Credto tafiano. Bancad Roma. btJtuto 
BancartoSanPaniodi Torino, Monte driPaachlJSlana. Banco dlNapofl. Banco dS»dBa.CasaaiHRlapannlo date 
Promote Lombard^, Banea Popdarad Novara. Banca NadonatedaTAoricoltura, Bancad’Amorica acfltafla. Banco 
AmbrWiano Veneto, Banco Larspo. Banca Ropoiare dl Milano. CredHo Romaonoto. Banea Popdare <S Verona, Banca 
dl Treito ad Bolaro, Banca Popolam Varna. Baca Popolare Frtutadrta. Caseamerca, Banca Antonian& Banca 
PopolaredlAsoteeMontstMlurnjuiorganaiaranty trust Company, DajtschaBwAAGrCitlbai^c.SodeteOMRde, 
Banca dalia Svizzera taSana. 

Luciano Benetton 
Chairman of tha Board of Otreceore 




YOU CAN ADVERTISE YOUR SKILLS IN THE 
FINANCIAL TIMES RECRUITMENT PAGES FROM AS LITRE AS £84 + VAT. 


Looking for a Career Change? 


\ 


For further details please contact Philip Wrigley on 
Tel: 071-873 3351 Fax: 071-873 3064 

N or by writing to him at Financial Times, Recruitment Advertising, 

Number One Southwark Bridge, London SE1 9HL ^ 


US. $105,000,000 

Guangzhou Investment 
Convertible Rond (1993) limited 

(incorporated with limited Eabffity 
under the laws of the Cayman Islands) 

4*5% Convertible Guaranteed Bonds Due 1998 
conv e rtible into shares in md goaranteed by 
Guangzhou Investment Company Limited 
(incorporated with Smiled liability 

under the laws of Hong Kang) 

lhacooidanmwifegaure7(D)offl»eTna*I> g ed d ate d 8fh October 
1993, Notice is hereby given feat in order to esta b fe h the 1993 final 



therewith, foe attention of foebcsKihold«ssdiiediedtoftepiorig^ 
of Oaxse6(N)of Ttust Deed dated 8* October, 1993 l 



May 6, 1994 


The Bank of New Yoek 
CIhe Principal Paying Agent) 
Cto behalf of the Company 




Tbr aaumctU tool lor the actlmi Investor 

Market-Eye 

London stock exchanoe 





fotidodemversumesde Venezuela 

VENEZUELAN INVESTMENT FUND 
PRIVATISATION PROCESS 

The Venezuelan Investment Fund informs the 
investment groups listed hereinbelow, that they have 
been prequalified to participate in the Selling Process 
of LINEA AERO POSTAL VENEZOLANA C.A . (LAV). 


INVESTMENT GROUP 


REPRESENTA TIVE 


- Progreso Mercado 
de Capitales 

- Consorcio Banco Italo 
Venezolano/ Sociedad 
Financiera Profesional CA. 

- Sociedad Financiera Unidn y 
Banco Unidn CA. 

- Air France 

- British Aerospace/Avro 
International Aerospace 

- American Airlines 

- Lfneas Aereas de Espaha 
SA. IBERIA 

- Aero line as Centrales 
de Colombia S.A. ACES. 

- Continental Airlines 


Nelson Monroy 

Moises de Lima Eljuri 

Fortunato Benacerraf Safas 
George Rochas 

William W. Grayson 
Jame Beer 

Eloy Laguna Dato 

Alvaro Martinez Urrea 
Elisabeth A. Hessler 


Likewise, it is informed that the Base Price for the total 
shares will be SIXTY TWO MILLION DOLLARS OF THE 
UNITED STATES OF AMERICA (US$ 62,000,000), as the 
minimum price for this tender. 

The date, hour and place for the public act for the 
presentation of offers will be published in due course. 
The interested parties for additional information may 
contact our General Coordination, Transportation and 
Comunications Sector, located at the Privatisation 
Management of the Venezuelan Investment Fund, Esquina 
de Mijares, Torre Banco Lara, Piso 6. Attention Engineer 
Dario Laguna and Engineer Trina Rojas. Telephones: 
(582) 806.56.32 / 806.59.09 Fax: (582) 839.169 TELEX 
FIVEN: 22890 / 26529 


P-04 


Caracas, 5 de mayo de 1994 



LOUDON STOCK 
EXCHANGE DEAUMfiS 


iliMlllMhhM* 


ibreati 


lltnlllMMMMMMtM 


ingmirewBoat 


Weekly Petroleum Argus 




? nC!;:s Petroleum Argus 

CALL NO'.-V .-REE TRIAL rc r.nwolcHor ML 7f. .XTO ST 


IF Y OU GO DOWN TO THE WOODS TODAY _ 

One thing is certain as Jk when bear markets arrive, the van majority of iavealoai 
will suffer whilst (he Imoo'ledgcabJe will pick up the bargains of a lifetime.' Avoid 
the pitfalls of investments to the 1990s & ring 061 474 0080 to your FREE 
place at the IDS Gann Seminar. 






FINANCIAL. TIMES FRIDAY MAY 6X994 




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COMMODITIES AND AGRICULTURE 


Precious metals 
seen past their 
‘best buy’ dates 


By Kenneth Gooding, 

Mining Correspondent 

The precious metals price 
forecasting season is under 
way as analysts put their gold, 
silver and platinum market 
predictions up for Inspection. 

Ms Rhona O'Connell at 
T.Hoare and Company, in a 
special report on the silver 
market, suggests this “is now 
one of the most dangerous met- 
als In the non-ferrous sector 
and carries with It a large 
Wealth Warning". Prices may 
rise, she points out, but “disil- 
lusioned liquidation, or mere 
profit-taking into a rally, can 
send prices spinning down 
a gntn, usually foster than they 
rose". 

While the underlying funda- 
mentals of the silver market 
are improving, prices will not 
be sustained for long above $8 
a troy ounce, Ms O'Connell 
suggests. 

She sees prices moving 
between $4.50 and $8 an ounce 
this year and next with an 
average of $5 for each year. 

Stocks of silver in the DS 
alone stand at 36 weeks of sup- 
ply, which would take some 
three years to whittle down to 
a more manageable eight-week 
level even though the annual 
supply deficit is forecast to 
increase from last year’s 128m 
ounces to 137m this year and. 
150m in 1995. 

Mr Andy Smith at Union 
Bank of Switzerland suggests 
all the precious metals proba- 
bly achieved in the first quar- 
ter their highest prices for 1994 
as a whole. 

He points out that in the 
January-March period US 
interest rates were at their 
lowest level in 30 years and 
this coincided with a weak dol- 
lar and concerns over precious 
metal supplies, especially sup- 
plies of platinum from South 
Africa. 

He warns that many of gold's 
emerging markets are losing 
their promise. Low oil prices 


are affecting Saudi Arabia's 
purchasing power and several 
Middle Eastern countries may 
suffer economic dislocation 
because of the rise in Maimr* 

pensions provision In China, 
South Korea and Singapore 
may cause personal gold 
hoards to be sold by an ageing 
population. 

Silver’s price, which reached 
$5.75 an ounce in the first quar- 
ter, Is forecast by Mr Smith to 
be down at $450 an ounce in 
three months time and back up 
at $5 in 12 months. He expects 
platinum, which reached $418 
an ounce in the first quarter, 
to perform in a similar way, 
falling to $360 an ounce in 
three months and recovering 
to $390 in a year. 

Gold, which has been up to 
$395 an ounce tn the first quar- 
ter, is predicted by Mr Smith to 
foil to $350 in three months 
and recover to $390 tn a year’s 
time. 

Meanwhile, at a the CPM 
Group, based in New York. Mr 
Jeffrey Christian, managing 
director, says gold may be at 
the start of a major cyciical 
upward move. Private invest- 
ment demand in gold began to 
revive sharply in the last four 
rannfha of 1993, he recalls, »nJ 
there are several factors that 
are likely to keep investors 
interested in the metal, at least 
intermittently, for the rest of 
this year and next 

Mr Joseph Rosta, CPM 
research director, suggests 
platinum is on an upward 
pharn that may last another 
year or more. He says the time 
when supply has been growing 
more quickly than demand 
appears to be passing “and It 
may be replaced over the next 
several years by conditions In 
which the rate of growth in 
fabrication demand outpaces 
any increases in total supply-” 
Nevertheless, platinum prices 
may go down In the coming 
year as fears about South Afri- 
can supplies dimmish- 


Rwandan 

farming 

programme 

threatened 

By Nancy Durms 
to Washington 

Scientists working for the 
International Centre for Tropi- 
cal Agriculture, based in Col- 
ombia, are urging the resump- 
tion of one of Africa's most 
successful agricultural pro- 
grammes - the growing of 
climbing beans, developed In 
Latin America in the Great 
Lakes region of Rwanda, 
Burundi and western Zaire. 

Beans are staple of the 
Rwandan diet and the intro- 
duction of climbing beans, 
which grow upward on stakes 
in formers’ fields, has tripled 
yields tn a country where 
formers average only one-half 
to one hectare each and 500 
impoverished people live on 
each square kilometre of rural 
lend. Production has risen by 
at least 33.000 tonnes, worth 
USSlftn. 

Hie bloody dvil war has put 
the entire scheme at risk. One 
plant breeder, Dr Wayne 
Youngqidst, was evacuated in 
a convoy of 75 cars and then 
airlifted to Kenya. Dr Robin 
Burochara, a plant patholo- 
gist, was in Kenya when the 
fi ghtin g began » n< i hag been 
unable to return. 

According to Dr Youngqidst, 
most of the bean crop in 
southern Rwanda was lost to 
drought last year. When the 
fighting broke out early last 
month the rains were good. 
The next harvests are five to 
nine weeks away. 

“If we can get back into 
Rwanda within a month - 
before the weeds take over - 
we can continue the pro- 
gramme without losing much. 
But right now, people w o r r y 
more about their lives than 
weeds," said Dr Youngquist 

To keep the bean pro- 
gramme going, the tropical 
agriculture centre temporarily 
moved operations to Burundi, 
where they are multiplying 
seeds to send to Rwandan 
formers when the fighting 
ends. 


Ankle deep in agricultural controversy 

Alison Maidand attends a meeting of farmers, policy-makers and environmentalists 


W here better to debate 
the pros and cons of 
the European 
Union's chang in g agricultural 
policy than standing ankle- 
deep in a field that has been 
“set aside” from its previous 

use of growing barley? 

The field, now sporting sev- 
eral varieties of wild plants, 
was the first stop on a form 
walkabout this week in the pic- 
turesque Dedham Vale, in the 
Essex countryside best known 
through the paintings of John 
Constable. The tour, an annual 
event organised by the local 
Tendring Hundred Farmers’ 
dub, provides an opportunity 
for leading policy-makers, lob- 
byists and formers to discuss 
the most contentious issues in 
British agriculture. 

The debate, helped by a stiff 
breeze, was lively. 

Mr Patrick Holden, policy 
director of British Organic 
Fanners, said' that set-aside, 
whereby formers are paid to 
take a percentage of their ara- 
ble land out erf production, was 


a desperate measure by the 
European Commission to con- 
trol grain surpluses. It would 
not work because formers 
would simply intensify produc- 
tion on their remaining land. 

Hailing Its environmental 
benefits - the lower use of pes- 
ticides or the reappearance of 
wildlife - “is just making the 
best of a bad job”, be said. *Tt 
would be much better to de-in- 
tensify forming as a whole 
rather than to use set-aside as 
an oasis." 

Not surprisingly, the officials 
from the minis try <rf agricul- 
ture disagreed. Mr Howard 
Feam said that a study being 
carried out by Wye agricul- 
tural college had found no evi- 
dence of production being 
stepped up an the rest of the 
land. And he pointed out that 
while concern for the environ- 
ment was not the driving force 
behind the common agricul- 
tural policy reforms, it was 
becoming inextricably linked 
with them as a way of making 
continued subsidies for form- 


ing more palatable. 

“The only way of getting the 
taxpayer rather than the 
former to pay is to introduce 
Sfinyfthing called the environ- 
ment," he said. 

This appears to be throwing 
up contradictions. Farmers 
choosing the option of nan-ro- 
tational set-aside - where they 
leave a fixed area of their form 
unproductive rather than rota- 
ting the site each year - are 
contributing more to wildlife. 
But the impact, in terms of 
reducing production, will he 
less great as only the poorest 
land is set aside, according to 
agricultural economists. 

A huge cloudburst forced 
the alfresco meeting to 
reconvene in a bam, 
where the steam was visibly 
rising as the arguments over 
environmentally-sensitive 
farming grew hotter. Conserva- 
tionists wanted subsidies 
transferred wholesale from 
mains tream agriculture to pro- 
moting environmentally bene- 


ficial fanning practices. But, 
apart freon stressing the diffi- 
culty of Britain persuading its 
EU partners to go down that 
road, the man from the Trea- 
sury said he doubted whether 
the taxpayer would agree to 
£3bn a year being reallocated 
to an industry that bad already 
been so heavily supported in 
the past. 

So what did the scores of 
formers present think of the 
prospects? Tbs view was suit- 
ably down to earth. "At the 
end of the day, farmers have 
got to produce a net profit,” 
said Mr Jim Macaulay, one oi 
the organisers. "They can look 
towards the movement of sus- 
tainable farming, but if they 
take their eye off the costs 
they’re in deep trouble.” 

The problem feeing formers 
in Europe is that many of their 
competitors elsewhere in (he 
world do not face the same 
tough legislation on animal 
welfare or pesticide use - one 
reason why they can produce 
much more cheaply - said a 


senior official from the 
National Farmers’ Union. 

Mr Oliver Doubleday, who 
farms in both England and 
Brazil, said UK formers were 
naive if they thought they 
could survive without subsi- 
dies. “It's a huge trap to think 
we ought to be trading on 
world prices," he said. “You 
just don’t realise how low they 
are. There are going to be peo- 
ple - and I hope it's going to be 
me - who wUl dean up behind 
you." 

Mr Macaulay concluded that 
UK costs (rf production would 
have to come down “if we're to 
stay in forming and deliver 
what the environmentalists 
want". 

Exactly how high-cost, high- 
quality producers in Europe 
would continue to survive once 
markets became more open 
remained unclear. So did the 
common ground between the 
environmentalists and the 
bureaucrats. But at least the 
formers were happy - they bad 
got the rain they needed. 


Alumina terminal opened 
on Russia’s east coast 

ium: “The Vanino facilities 


MARKET REPORT 

Coffee rallies to fresh high 


By Kenneth Gooding 

An Anglo-Russlan project to 
open up one of the bottlenecks 
that has restricted the import 
of an essential raw material for 
Hib Russian aluminium indus- 
try became operational this 
week when 25,600 tonnes of 
alumina (aluminium oxide) 
was unloaded by new facilities 
at the east coast port of Van- 
ina 

The bulk alumina handling 
facilities, costing “several mil- 
lion dollars," are jointly owned 
by by Trans-World Metals, the 
UK-based trading group, and 
the Vanino Port Authority, one 
of the new Russian joint stock 
companies. 

Russia has only one other 
such Handling facility, at Mur- 
mansk. According to Mr Alan 
Bekhor, managing director of 
Trans-World, said to be the big- 
gest trader In Russian alumin- 


open the way for alumina to 
get to Russia more efficiently. 
They represent a logical link 
between Australia, the world’s 
biggest alumina producer, and 
Russia's big Siberian smelt- 
ers." The first alumina through 
the facilities was bought from 
Alcoa of Australia. 

Mr Bekhor said that within 
three months a second stage 
would lift the bulk alumina 
handling capacity at Vanino to 
5 0,000 tonnes a month. The 
port is at one end of the Baikal- 
Amur railway which runs par- 
allel to the Trans-Siberian rail- 
way. 

In theory the facilities are 
available to all hut “Trans- 
World will probably keep them 
busy for the rest of this year." 
However, Mr Bekhor stressed: 
“This is a long-term invest- 
ment and there win be no 
quick returns." 


London Commodity Exchange 
COFFEE futures perked up 
towards the close, briefly 
reaching fresh five-year higbs. 

The market had opened 
softer and slipped farther, 
looking set to consolidate 
recent strong gains. The July 
position was $15 down at $1,668 
a tonne by the mid-session 
close, having touched a low of 
$1,655. But a fluny of trade and 
commission house buying late 
in the afternoon quickly took 
the price op to a new high of 
$1,710 before it eased to dose 
at $1,700, up $17. 

“We saw good buying again 
towards the dose, it would be 
a brave man to go short in this 
market," one trader com- 
mented. 

The COCOA market ended a 
very dull but choppy day 
mixed, the near July futures 
position dipping to £870 a 
tonne before dosing £4 up on 


balance at £888. 

Traders said the market 
shrugged off news that accord- 
ing to the chief executive of 
the Ivory Coast's Caistab, the 
country was short of its cur- 
rent commitments end the 
mid-crop would only be 80,000 
farnnai, against forecasts erf up 
to 200,000 tonnes. “The market 
Isn't in the mood for bullish 
news," one explained. “Senti- 
ment is slightly unfriendly.” 

At the London Metal 
Exchange COPPER prices 
snapped higher in the after- 
noon, setting the market up for 
a further attempt on recent 
highs at $1,983 a tonne, but 
other markets ended mixed. 

ALUMINIUM prices moved 
off their lows aided by copper. 
But the three months delivery 
quotation was unable to repeat 
Wednesday's foray above $1,330 
a tonne, and final business was 
at $L327, down $2. 


Price trends were mixed for 
the PRECIOUS METALS after 
gold fixed unchanged from its 
lower morning setting and the 
New York markets mostly 
opened sharply lower. Dealers 
said the turn-round in the dol- 
lar's strength from weak to 
firmer and the apparent calm 
in South Africa had taken 
away GOLD’S two major price 
supports. 

London SILVER prices strag- 
gled for most of the day after 
only briefly bolding a firmer 
opening level at $5U.7-$5.19 for 
the cash position. A sudden 
bout of selling took the price 
down to around $510 support 
near the morning gold fix and 
although a couple of rallies 
were attempted, the support 
was re-visited when the New 
York market lost nearly 11 
cents shortly after opening. 

Compiled from Renter 


COMMODITIES PRICES 


BASE METALS 

LONDON METAL EXCHANGE 

(Prices from Amalgamated Meted Tracing) 

■ ALUMMIUM, 907 PURITY (S per tame) 



Cash 

3 mths 

Ctaati 

1302-3 

1327-8 

Previous 

1301-2 

1326-6.5 

HjQh/tow 

1300 

132871322 

AM Offidel 

1299-300 

1324-44 

Kmfc doaa 


1326-7 

Open Int. 

247.560 


Total doty tunovor 

38416 


■ ALUMINUM A1X.OY (S par tonne) 


Oom 

1290-5 

1305-8 ‘ 

Previous 

1300-10 

131 Q-S 

WghAow 


1310/1296 

AM omcW 

1285-00 

1295-300 

Satb doao 


1305-10 

Open w. 

4478 


Total drity turnover 

1478 


■ LEAD ff per tome) 



Owe 

463-4 

478-84 

Previous 

4844-64 

4734-4 

hfigMow 

461 

479/475 

AM Offlctad 

461-2 

477-8 

KOtO dose 


478 5-9 

Open tnt 

35.181 


Toot riatfy turnover 

5410 


■ MCKEL (3 per Wine} 


Oose 

5630-40 

5700-10 

Pluvious 

6635-40 

5710-5 

HVgh/kw 

5608/5605 

572W56BO 

AM Official 

6005-8 

6680-5 

Kart) cteso 


5770-5 

Open K. 

58306 


Total rlarty turnover 

12,745 


91 TM (S per tonneji 



Ctaw 

5*30-40 

5495-500 

Previous 

5405-15 

5470-80 

Hrgh/toiM 

5437 

5510/5480 

AM Official 

6437-8 

5495-8 

Kerb dose 


5505-10 

Open ml. 

16.659 


Total dally turnover 

5403 


M ZINC, epedel Mgfi grade (S per tame) 

Ctose 

950.5-1.5 

970-2 

Previous 

94/-e 

989-34 

MgbTow 

943.5/949 

972/987 

AM Official 

940.5-50 

970-0.5 

Kerb dose 


969-70 

Open Mt. 

101.889 


Total dafiy turnover 

27,118 


H COPPER, grade A fS per tome) 


Ctose 

1963-4 

19744-5 

Previous 

1952-3 

18684-9 

Hgtvlow 


1980/1964 

AM Official 

1S53.5-3.S 

19684-7 

Kerb do» 


1975-6 

Cm* “*• 

181.824 


Total daiy turnover 

45.653 



■ LME AM Official E* rate: L4B72 

LME Ctoefag V* raff: T/gBO 

So*1 *963 3mCte1«gsa emm:1.4943 9 m»*. 1.4834 

■ mOHORADE COPPER ICOHEXj 




toll 



<m 



Cbm 

i ftinf 

W* 

taw 

tat 

w 

m 

B2.50 

+805 

9310 

9245 

4.191 

2 

Jm 

9285 

+0.15 

9240 

9245 

1.018 

7* 

Jri 

9265 

+0.75 

93JD 

02.40 

371 

77 

m 

9230 

♦0.10 

92.70 

92.45 

417 

a 


9146 

*005 

9245 

9140 

74 a 

a/ 

Ori 

9175 

•085 

92J0 

92.10 

208 

14 

Total 






812 

PRECIOUS METALS 



M LONDON BULLION MARKET 



tPnew Suppled by N M RathachW) 




OoWfTnjy m) 
Ctose 
Opcnng 
Morning n> 
Afternoon ft* 
Day's Ugh 
Day s Low 
ftevfcua dose 
loco Uhi Mien 

1 month 

2 months 

3 morals 
Staler Rx 
S PW 

3 mmW« 

6 mawftj 
lywr 
Hold Com. 
ttugwriM 
“We I 


£ oquhr. 


249.703 

250.033 


$ pi ce 
37*40-37190 
371x20-376.60 
374.50 
3*4.50 

376.10070.60 
374.10-37400 

37545-375.75 

Oold Lancing Rohm (Va USS) 

— 108 S months 421 

..0.74 12 mono* 4,73 

„.-M8 


pftoyez. 
342.75 
347.10 
351.40 
361.55 
S price 
361-36* 

08SJSO87.ro 

88-01 


UScts eqriv. 
511.73 
517 SO 
fiaa25 
S37.7D 
£ eqriv. 
254-257 

58*62 


Precious Metals continued 

W GPU? DOMEX (100 TtOy ok; S/troy ozj 


GRAINS AND OIL SEEDS 

■ WHEAT LOSE per tome) 


SOFTS 

■ COCOA LC£(E/tonna) 


totr Oaf* 


Op* 

tat 


WL 


Sea nay's 

price dngt W 


cm 

tat 


W 


am day's 
pm change 


lev lit VW 


•*»y 

3734 

-34 

. 

- 1400 

1400 

tow 

11740 

+185 11740 11640 

432 

105 

•toy 

856 

. 

8S8 

848 187 

163 

Jn 

Jm 

374.7 

-34 

jno 

3744 38487 27.855 

Jiff 

11740 

+145 

11740 11840 

1450 

110 

JW 

880 

*4 

336 

870 22,738 349 1 

A® 

Jri 

3784 

-34 

- 

« 

- 

sqi 

9B25 

+040 

98.10 

98.10 

409 

5 

sm 

903 

+1 

904 

890 14401 

718 

Od 

AW 

3774 

-34 

3784 

3774 14460 

am 

ife* 

9040 

+045 

9920 

96.45 

1430 

55 

See 

929 

+1 

930 

917 19.101 

8224 

Dm 

Del 

3804 

-34 

3814 

380.0 5438 

181 

Jan 

101.40 

+885 

10120 

10075 

1423 

154 

Mar 

994 

+2 

954 

M0 Z7.175 

825 

M 

Dec 

3834 

■34 

3844 

3834 14,112 

236 

Har 

102.10 

- 

• 

• 

3M 

- 

«*y 

968 

+2 

986 

953 10307 

82 

to 

Total 




150406 30471 

Triri 





4405 

436 

Tom 




104JS4 12484 

Tetri 


1 PLATINUM NYMEX (50 Troy an; Sflroy ag) 

Jri 3804 -9* 3B9 lO 16,050 1575 

Ori 39M -04 3965 3324 2.408 162 

Jm 3925 -9.4 3000 3964 843 

ftp 3934 -9.4 48816 3905 944 10 

IWri 20 0B 2J47 

■ PALLADIUM NYMEX POO Ttay oai; S/troy «.) 


Jm 13825 -230 13940 13840 3488 274 

Sff 13840 -240 13040 13740 1483 210 

Dm 13840 -240 - - 404 2 

■tar 13740 -230 8 

total 0419 an 

to 8U.VER COMEX (100 Troy ozj Centa/troy otj 

■w 

5107 

-84 

3144 

3104 1413 

9*7 

JM 

5121 

-74 

- 

5 

11 

Jri 

514.7 

-74 

5184 

5114 84355 24480 

to 

5192 

-74 

5220 

5184 7455 

235 

Dec 

5283 

-7.1 

5294 

5234 11421 

756 

Jan 

52S3 

-7.1 

- 

32 

- 

Total 




118488 28464 

ENERGY 





■ CRUDE OH. NYMEX (42,000 US gate. S/bwraQ 


Lariat 

Oaf 


0PM 



price 

*m*a 

Mb* 

Iff* M 

va 

Jm 

17.13 

+027 

1723 

18.78 124JQ2 65215 

Jri 

1847 

+022 

1740 

1640 73480 32484 

8*8 

18.77 

+0.19 

1845 

1656 34.123 15417 

top 

18.70 

+0.14 

1677 

1657 28409 

9226 

Oct 

It 57 

+041 

1R89 

1647 1R1» 

34*7 

No* 

IBM 

■041 

1655 

1655 12473 

2.178 

Totri 




436884143464 

■ CRUDE CHLIPEff/bam# 




Latast 

0*1*1 


0PM 



ffta* 

(bang* 

High 

Lm tat 

Hri 

Jue 

1548 

+020 

1543 

1650 59470 24,450 

Jri 

1544 

+0.15 

1848 

1639 47,178 

16120 

Aug 

15.41 

+0.05 

1549 

1547 10429 

4,189 

top 

1543 

+014 

1547 

1549 11.473 

242* 

Oct 

1542 

+015 

1545 

1548 6151 

763 

NO* 

1542 

+049 

15.50 

15-41 3458 

331 

total 




1504B3 47437 

■ HEATING Oft. NYMEX (42000 U5 sab., PUS gataj 


Uriari 

Oaf 


Opart 



P«1M 

donga 

mbh 

LM M 

tot 

Jm 

47.10 

+044 

47.40 

*650 48431 

14207 

Jri 

47.45 

+042 

4740 

47.10 32,143 

4482 

*°8 

48.15 

+047 

+aao 

47J5 13J5* 

1,489 

top 

4930 

+047 

4925 

4675 10461 

745 

Ori 

4940 

+027 

*090 

4845 6905 

72 

to* 

5145 

+047 

5105 

50 JO 6418 

121 

totri 




142.711 

22477 

81 OAft Oft. HE {ytgnmQ 




Sri! 

Oaf 





price 

ttange 


Lnr kd 

W 

Mar 

14040 

-040 

15040 11840 19.639 

5155 

Jm 

14940 

-075 

15040 

14625 24.124 

6088 

Jri 

15040 

-050 

15125 

«9J» 15496 


Atg 

15240 

-040 

15250 151.00 8335 

872 

top 

153.75 

-025 

15440 

52JS 6500 

328 

Ori 

15640 

- 

15640 

155,50 6481 

396 

Trial 




96319 15477 

■ NATURAL QAS KYNEX (10400 mrnBiL: 1 


Laferi 

Day** 


flpan 



price donga 

MBb 

iff M 

Hri 


2035 *0481 2055 2015 16,444 *316 

2066 tOJJII 2088 2448 13510 3,482 

2085 40.009 2490 2485 10537 1520 

2.110 40410 2112 2095 10706 1,198 

2155 44012 2155 21*0 7.439 B36 

2235 40012 2240 2230 0.732 


Jri 
4*0 
Sop 
Oct 
llOt 
TW 

■ UWJEAOED GASOLINE 
WVWEX (42000 US gdta.iC'lSgriA] 


184 

TU4I2 17487 



Ifful 

DqT 


OpM 



ritoa 

dappa 

HgO 

Lmt tat 

Vri 

Jm 

*850 

+842 

5010 

4820 494Q3 

20512 

Jri 

4940 

+0.09 

5045 

4840 23.781 

7221 

flag 

5040 

+O.I8 

9035 

4940 11595 

2488 

top 

4855 

+023 

4945 

49.15 9490 

1,116 

Ori 

48.10 

+028 

4640 

*110 1AT4 

207 

NM 

total 

47.10 

+008 

4725 

*8.70 2JK3 

201 

32239 


Dec 


32MZ 

33012 

333/2 

343/2 

345/0 

340/0 


■ WH E AT CUT (SJOCbu min; oentariMti busftri) ■ COCOA CSCE (10 tomes; S/tonneg) 

-710 335/4 3200 3448 3495 

-4/4 337/0 3304) 141 41 5 80405 

-5/0 340/4 332/4 31400 5420 

-5/2 350/2 342/2 35425 17435 

-6/0 352/4 345/0 2485 22S 

-50 - - ISO 50 

7fltri 2iV4Rff74M 

■ MAIZE car (5400 bu irim censa/Sfito buahoQ 

May 256/4 

JM Z58K 

Bap 220/2 

Dk 242/2 

vat BOB 

May 255/B 

Trial 

■ BARLEY LCE (C per tome) 


MEAT AND LIVESTOCK 

■ LWECftntECME(40.000toa;oants/lbri 

Salt Daft * dn 

price daap ftp Iff Ht H 

68475 40.190 69.450 B&4BQ 28,887 10488 
68450 -0.100 88450 88450 J 5.337 5.481 
70850 40050 71.435 70000 12,174 2474 
71 460 40275 71400 71450 7436 1444 
71460 40350 71.750 71400 2437 241 

72425 40150 72450 72750 1,128 243 

87470 2BLS2S 

■ LIVE HOQS CME (WTOOftn; centa/tbe) 


"to 

1148 

+83 

1143 

1142 Z32 

28 

Jon 

46950 

■0800 41700 48400 15518 

4499 

Jri 

1178 

+25 

1180 

1139 38448 5429 

Jri 

49.129 

0575 49400 48450 

5457 

1782 

top 

1200 

+34 

1203 

1185 13415 

660 

*m 

47400 

0475 47400 47400 

1(442 

732 

Dec 

1238 

+23 

12*0 

1207 BJ87 

314 

Dd 

43250 

0150 43550 41000 

2,710 

535 

Mar 

1Z72 

+22 

1259 

1248 10430 

29 

Dm 

<3-460 

0225 43.750 43.050 

2473 

270 

■w 

1299 

+32 

- 

- 4414 

10 

Fab 

<3.450 

0200 43400 43.10D 

498 

54 

totri 




*1,137 Ofi 70 

Totri 



ST.1ZS 

1189 


■ COCOA QOCOI (SDR’aftonne) 


-8/0 265/8 256/0 47425 35*15 
-an 287® 237« 854.175 178490 
■an 2san 2*0/*ie5jno 17.115 
■6/4 240/4 242® 377410 77.715 
■fin 2502 2500 35410 4450 
-4® 280 n 255/4 4490 4S0 

1 431 M 313475 


My 


Price 
. 08048 


10 day average 

■ COFFEE LCE (S/tomo) 


m 


38848 

KM 


■to 

11040 

+140 

- 

- 58 

. 

top 

97.10 


- 

- 138 

. 

no* 

9640 


- 

- 177 

- 

Jm 

10050 


- 

• 30 

- 

riff 

10145 


- 

5 

. 

■to 

10175 


- 

5 

. 

Tatri 




411 

- 

■ SOYABEANS CST ROOObu rata: cartt/BOB) tWStvfi 

tow 

698/0 

-IW 

658/4 

658/2 21485 14405 

Jri 

63741 

■12/4 

0694 

65847328410148400 

tat 

S5UQ 

-12/2 

884/0 

951/0 59,890 

1855 

top 

63IW 

-13/2 

6448) 

830/4 31430 

1175 

He* 

613/4 

-12/6 

028/0 

61310217.790 39405 

Jm 

620/4 

-12/0 

631/2 

8208) 21400 

2480 

totri 




796430213410 

■ SOYABEAN OH. CST (BQ.OOOte: eentaAU 

■to 

2114 

040 

2840 

2112 5487 

1296 

Jri 

2945 

041 

2652 

2600 41450 

1871 

Aug 

7332 

040 

2B.1B 

27.70 12472 

734 

top 

27.14 

040 

2745 

27.10 1T.164 

554 

Oct 

2118 

034 

2660 

29.15 1083 

187 

DM 

2649 

022 

2540 

2640 15434 

1.405 

Totri 




97441 

13498 


■ SOYABEAN MEAL C8T (100 tons; Sfttrt 


May 

1854 

-11 

1817 

1854 

1277 

1199 

Jri 

1864 

■as 

1869 

186./ 

31889 

MUM 

taj 

1861 

-ai 

ia62 

1854 

11738 

1AS2 

top 

1844 

-24 

1874 

1844 

1142 

*42 


1824 

-ao 

1854 

1814 

5492 

<25 

Dm 

18T4 

-32 


1804 16474 

1*00 

Totri 





87JEB 17,181 

■ POTATOES UCE {Qtarewl 




JM 

Pto-S 

. 

_ 




No* 

904 

. 

. 

_ 



•tar 

1060 

- 

- 

. 

_ 

. 

Apr 

1334 

+24 

1344 

1324 

- 

33 

Hay 

1400 

. 

V 

_ 

5D4 


Jno 

107J 

- 

. 

. 


. 

totri 





904 

33 

■ R1BOHT (BlFFEX) LCE (SlQAndoK prim) 


■to 

1438 

+20 

1441 

1410 

913 

91 

JM 

1340 

+35 

1349 

1305 

496 

25D 

Jri 

izas 

+28 

1230 

1200 

590 

117 

Ori 

1330 

+32 

1305 

1305 

270 

2 

Jan 

1386 

+18 

1300 

1398 

144 

19 

Air 

1375 

-a 

1376 

1375 

10 

10 

Totri 

Obm 

Plto 



1908 

489 

BH 

1432 

1423 






Wool 

Prtpoa paid at (wool auctions this week 
homed sujadPy, and with rrifa rtn gs dadnfng 
In the daring augas of the s o ring season it 
became mere dfficril to hnagma a setback. 
The Autman market imScator ranched S87c/ 
hg on May 5. a new peak tar the season. 
Nervousness about gtoekpto offering to be 
offend by fixed setedufc Jufy 
same Bmo ego and the marital «* heined now 
to assess tola aa a poWffiaSy rirangthcring 
ririwr then a waritsnlng factor. The woo) using 
hduatry b keeping busy but them is eagerness 
» aae new business earning through at the 
higher prim now bring paid far moL Alto a 
tang giint period K is hoped that the latest 
detaer price trend is finally bringing out more 
buying Interest. Currency voLstBty affecting Bin 
US end Australian dollars has dshobad price 
CBfcxjtaaa-M during the past wasfc 


■to 

1770 

+21 

17^ 

1730 2415 

404 

Jri 

1588 

+15 

1710 

1655 11247 1462 

ton 

1871 

+20 

ten 

1625 11823 

1.788 

Rff 

1B48 

♦13 

1050 

1610 1320 

314 

Jm 

1638 

+10 

1635 

1GD5 5402 

43 

Uff 

1606 

+1 

. 

- 1483 

24 

Total 




474*5 <200 

■ COFFEE XT CSCE p7^00te cents**) 


■to 

>0620 

+645 

>0620 

0445 671 

*38 

jh 

9945 

♦445 

10050 

0670 3178011.716 

top 

8670 

+*.70 10025 

9170 11400 1529 

Dm 

9195 

+445 

10610 

9440 1908 

978 

><ar 

9625 

+3.40 

9625 

9125 7JB2B 

506 

■to 

9125 

+240 

8600 

9740 375 

35 


Total 

■ cof-rae pco? ms ga ta h w id 


574*510402 


“to * 

Pitea 

Pm. top 

9111 

ISffeaaa 


■ No7 FREMUM RAW SUGAR LCE (carta/lbs) 

JM 12-03 +0.10 

1246 1245 

2J829 10 

oa 1148 +0.13 

• 

292 

JM 1142 

- 

. 

total 

■ WHITE SUGAR LCE (SAcm) 

2421 W 


331 -B0 +8.10 33240 328X10 10.701 1433 


oa 

31110 

+190 31440 311-00 

7j031 

336 

Dec 

30080 

+240 30680 30540 

317 

100 

M* 

30340 

+100 30540 30240 

1/J33 

118 

May 

30170 

+140 

200 

- 


30740 

+140 

215 

- 

Tetri 



IBffll 1182 


■ SUGAR 'll* CSCE (1 12.0Q0RM; CTntaBhn) 


Jri 

1142 

+0.17 

1148 

11.71 

9249710,148 

Oct 

1145 

+0.T7 

1147 

1156 31578 3417 

■tar 

1148 

+0.13 

1148 

11-31 

16365 

1/06 

■to 

1140 

+111 

1145 

1149 

1419 

59 

JM 

1141 

+OJ3 

1144 

1140 

1414 

41 

Ori 

1149 

+048 

- 


499 

133 

TOW 




100481 15483 

■ COTTON NYCE (50.000*)* canUfib# 


May 

BShOO 

-OB0 

8525 

8440 

1.438 

112 

Jri 

6117 

-O.10 

8X45 

82-13 27485 

1831 

Oet 

7617 

♦0.12 

7625 

7840 

4409 

557 

Dm 

7448 

+04B 

7*40 

7350 W 75 1820 

■tar 

75.10 

+033 

7120 

7440 

1j*11 

125 

■to 

7145 

+043 

7520 

7520 

820 

24 


T«ri 5444010489 

■ PRANCE JUICE NYCE (tSXXXMba; centra} 

May 10220 +046 10240 10140 854 429 

•M 10440 +1.10 10540 10100 13,140 1488 

Sap 10740 +1.10 10840 105.7$ 2407 255 

Her moo +1.0S 10UU 10840 1,150 82 

Jm 10940 4035 109.00 10640 - 2434 77 

11140 +025 11020 HOIS 050 1 

20471 2412 


Tetri 


VOLUME DATA 

Op«i nierat end volume data shown for 
ontoiBota traded on COMBL NYMEX, CST, 
NYCe. CME, CSCE and IffE Crude Oi are ana 
day in arrears. 


INDICES 

■ BBUTBiagaae; 18/3/31-100} 


May 5 May 4 month ego yew ago 
78609 1555.3 18106 16444 

* CBB futures (Baaa 4/a/Bfe.loq 


Way 4 

SB4J0 


Mays month ago year age 

224.74 225.27 20744 


■ PORK BELLIES CME (40TOQ*»; centa/ftn) 

May 46100 -1425 48400 45475 382 200 

Jri 45450 -1400 47.400 45400 6.142 1495 

tag 43400 -1475 46450 43.775 1427 477 

Fail 48450 -0450 60400 48.150 2S9 84 

Itv 48400 -0400 - 48400 22 6 

Hay 80400 -2400 50400 50400 13 1 

Total 408 2771 


LONDON TRADED OPTIONS 

Strike price S tome -—Cato— — Wi — 
■ AUMMUM 


(99.796) LME 

JU 

Oct 

Jut 

Oct 

1300 

50 

83 

26 

37 

1325 

37 

69 

38 

48 

1350 

28 

67 

62 

60 

■ COPPER 





(Oracle /») LAC 

Jut 

Oet 

Jri 

Oct 

1900 

94 

118 

20 

41 

1950 

77 

102 

28 

60 

2000 — ■■ ■ 

02 

88 

38 

61 

■ COFFEE USE 

Jri 

top 

Jri 

Sap 

1600 — - 

412 

198 

14 

25 

1550 _____ 

171 

180 

23 

39 

1600 

135 

12S 

37 

67 

■ COCOA LCE 

Jri 

Sop 

Jul 

Sep 

875 

32 

81 

21 

33 

900 

20 

48 

S4 

45 

92S 

12 

38 

51 

BO 

■ BRENT CRUDE HPE 

Jiff 

Jri 

Jiff 

Jri 

1500 

- 

ff 

7 

28 

1550 

42 

83 

18 

46 

1800 

18 

36 

- 

- 


LONDON SPOT MARKETS 

■ CHUDC 09- FOB (per bial/Junf +or 


Oubat 

S14A9~4.13y 

•0.14 

Brent Bland (dated) 

St 547-549 

-005 

Brant Blond (Jurj 

S15.71-6.73 

-003 

W.T.L (1pm oe0 

$1748-7.12 

-004 

■ OH. PRODUCTS NWEprampt delivery OF (tonne) 

Prarium Gasofcw 

$176-178 


Qas OI 

Si 50-151 

-1.0 

Heavy fiat Oi 

S78«J 

-05 

Naphtha 

$150-152 


Jet Fuel 

$162-164 

-1.0 

Aiauffau Ague EMiaM 



■ OTHER 



Gold (per trey oz)4 

$374.70 

■CM 

Surer (par troy 02 )* 

51340c 

-100 

Platinum (par My 0 il) 

$39060 

-440 

PaJfexHufn (per tray «.) 

$13175 

-IDS 

Copper (us prod.) 

97.00c 


Load (US prod) 

35.00c 


Tin (Kuala Lunpia} 

142Br 

+0.06 

Hr? (New York) 

25250c 

+240 

Zinc (US Prime W.) 

Ung. 


Canto (fere watghOt 

127 SOp 

+142“ 

Sheep (he wrightf* 

152.53p 

+SL80* 

Pigs pve vraigta) 

76. TOp 

-1 j*B- 

Lon. day sugar Daw) 

$273.60 

+060 

Lon day sugar (wte) 

$33100 

+050 

Tata 5 Lyle export 

£298.00 

+6.00 

Barley (Big. feed) 

una 


Maize (US NoS Yotow) 

*1384 


Whet* (US Dark North) 

C180.GX 


Rriaber (Junft 

m 


Rubber (Jri)¥ 

N/A 


RubbetlKLRSSNol Jilt) 

25750m 

+240 


Coconut OI (PtdQS 
Prim Ol (Mriayj§ 
Copra (Pff)§ 
Soyabeans (US) 

Cotton Outtook a InttaK 
Wodtaps (B4s &*w) 

Cpffl 


W&XH 

5375X1 

CIBSLOy 

86.150 


+54 

+54 


-046 


. p pmenqj, e oantirti. 


SS3ftSaejHrBar«s 


CROSSWORD 


No.8,446 Set by DANTE 



ACROSS 

1 Jock retreated in alarm (6) 

4 Explorer is eating last of the 
sledge dogs (8) 

9 Lizard again disturbed around 
mid-January (© 

10 Maugham's London house (8) 

12 Relevant data (8) 

13 Craft project (6) 

15 Cattle without water (4) 

16 Not inclined to be honest 
CW.5) 

19 Expanding, becoming more 

mrmrninir-aHv p (7J3) 

20 She will return to take a 
course (4) 

23 An evil disposition that's 
excusable (6) 

25 Hold a show trial (8) 

27 Dilatory perhaps, but per- 
formed with skill ( 3 ) 

28 The significance of graven 
images out east (6) 

29 Parties appeal to them (8) 

30 Neglect Dad's drink (42) 

DOWN 

1 Unusually thin, I am getting 
Vitamin B CO 

2 Breach of promise action? 
(5,4) 

3 Region possibly showing 

neglect (6) 

5 Footwear hamper (4) 

6 Basic tips for humanity (3-5) 


7 Dramatist’s nibs arranged 
round a centrepiece (6) 

8 The case of broken latches (?) 

li Had rage can lead to slaugh- 
ter (7) 

14 Yelled out in the hangar (7) 

17 Thinks a great deal of events 
are badly organised (9) 

18 His second mate gets him into 
trouble (8) 

19 How to get round something, 
or perhaps above it (7) 

21 Prepare for a costume party? 
(50) 

22 Bunk with a woman! (6) 

24 She tends to rash over certain 
points (5) 

26 A slight incoherence in 
speech (4) 

Solution 8,445 



JOTTER PAD 






■:c 
















FINANCIAL TIMES FRIDAY MAY 6 1994 


29 


LONDON STOCK EXCHANGE 


•MK* 


MARKET REPORT 


FT-SE regains 3,100 as dollar tensions relax 


te 

s. 

jii 

\.ti‘. , 

v 

FT-SE rej 


•* • t • 

By Terry Byland, 

*} 

l‘l v 

UK Stock RAaricot Editor 

IT f 

{:■ 

1 ■ m!.- 

The absence of further devel- 


«l;^ 

opments in foe US dollar left foe 

■fy 

\\ 

London stock market to stage a 

;S; 

U ... . 

technical recovery yesterday which 
took the FT-SE 100 Index back 

rt 

■•* *1 

■I" ■" " 

above the 3,100 mark as UK voters 



went to the polls in the local elec- 

fct- 

r 4 T ... 

tions. The day was enlivened by 

Ilia ' 

1 i 

good trading figures, an increased 
dividend from British Petroleum 

It' 

f — 

V. ,• 

and a £6Sm deal in Reuters as the 


* h 

Abu Dhabi Investment Authority 

!■! 

, a 

4 1 ■ , 

lightened its stake in the global 


1 ,, , 

financial mmmi iniwiti nna group. 


w ! 

The equity rally was helped by a 

1f>* 

it a 

recovery in British government 


FT-SE- A All-Share index 


1,675 


ii 

:»• 

»!• 

a: 

!U 


took a restrained view of the 35.5- 
polnt gain in the FT-SE 100 to a 
close of 3.106, just & shade below die 


day's best IeveL 

The market fell by 14 Footsie 
points in early trading but this 
appeared to be a reflection of the 
Reuters deal. The US investment 
bank handling the business was 
believed to have sold the June stock 
Index future first as insurance 
against the possible effects of the 
transaction in Reuters stock Once 
this deal was done, the US house 
bought back the futures contracts 
and the underlying market turned 
higher. 

The sharp rise in BP shares 
caught some securities traders 
wrong-footed and the trading 
screens briefly showed a backwar- 
dation - when wmft marketmaker 
bid and offer quotations are briefly 
out of line - as at least two US 
houses battled to change portfolio 
stances on the stock 


Aoeount DeaBng Dates 

ffttOotags 

Aprs 

feta 16 

Jut 6 

Optton Psdreaionsj 

feta 12 

JIB! 2 

jui is 

Last OtatafiE 
>ta is 

Jun 3 

JWI 17 

Aceouit 0v 

May 29 

Jun 13 

Jun 27 

*N» tfena rtaaflqgs 
botnsss days sartor. 

may taka 

ptsea ban two 


Higher dividend payouts from 
both BP and Bank of Scotland 
reinforced optimism on corporate 
earnings and gave the market a sig- 
nificant boost Later, as it became 
clear that the central banks had no 
immediate plans for further moves 
to support the US dollar, tprurirma 
relaxed and shares moved up 
smartly. 

London was helped at the close 
by initial firmness on Wall Street, 


although analysts warned that the 
US payroll data, due today, could 
present the Federal Reserve with a 
further opportunity to tighten 
credit 

The FT-SE Mid 250 Index climbed 
12.9 to 3,770.6. Seaq volume of 
68&5m shares was some 20 per cent 
up ftam Wednesday’s figure which. 
In turn, reflected retail business 
worth £1.22bn, at the lower end of 
recent daily averages. 

The blue chip sectors were 
boosted by the oil majors, which are 
heavily weighted in all leading mar- 
ket indices. Elsewhere, the share 
price gains were more scattered, 
with many of the best performances 
coming from «fcnrit« which had suf- 
fered the most over the past two 
weeks. 

The pharmaceutical sector, where 
the TnnitfnaHfmai leaders are under- 


going a spree of acquisition moves 
sparked by moves into the US by 
some European groups, reported a 
calmer session yesterday, 

Firmness in UK bonds, which 
have dearly shown this week that 
they can still upset the equity sec- 
tor, provided an underp inning for 
the recovery trend. 

But doubts were expressed as to 
whether the US dollar has yet stabi- 
lised and analysts admitted that 
stock markets remained highly vul- 
nerable to the next move to tighten 
credit policy at the Federal Reserve- 
Such a move is widely expected at 
some time in the near future and 
the timing could now depend on the 
dollar. 

Meanwhile, the UK equity market 
will watch sterling today to see the 
effects of the outcome of the local 
elections. 



Equity Shares Traded 

Turnover by /otoma (mJUon)- ExctocQng: 
Imro-mnrtwt Ix/etoess and overseas tumowr 
1,000 • — 



■ Key Indicators 
In cfices and ratios 

FT-SE 100 31069 

FT-SE Mid 250 3770.6 

FT-SE- A 350 1579.7 

FT-SE-A AB-Share 1572.45 
FT-SE-A All-Share yield 3.89 

Bast performing sect ors 

1 R staters. Food 

2 OH, Integrated 

3 

4 

5 


Banks 

Mineral Extraction 

CM Exploration & Prod. 


+35.5 

+12-9 

+15.0 

+13.86 

P.72) 

„ +3.4 
... +3.1 
— +3.1 
.... +2.4 
+1.3 


FT Ortfnary Index 2481.9 +18.1 

FT-SE-A Non Fins p/e 20.46 (2033) 

FT-SE 100 Fut Jun 3105.0 +48.0 

10 yr Gilt yield 8.23 (8.40) 

Long gllt/oqufty ytd ratio: 228 (2.26) 

Worst performing n ee tors 

1 Tobacco 


Printing, Paper & Pckg 

Other Services & Bsns 

Water 


..-IS 

..-08 


...-0.7 

_-Q.3 


Other Financial 


- 0.2 


ih hi<*h 


»-* 


•*_> 

'V' 

-i 




'■'■■■r Pi; | : ;. k[ 

• . 

V- 
• i- '■ 


N Mrli 


Heavy 
sale of 
Reuters 


News and financial 
information group Renters 
Holdings was the most heavily 
traded stock in London and 
recorded one of Its highest 
daily turnover totals sfertn flo- 
tation. The volume was 
boosted by a £65m stake sale, 
believed to have been carried 
out by the Abu Dhabi Invest- 
ment Authority. 

Goldman Sachs, the US 


investment bank, executed an 
agency cross of i&5m shares. 
The deal accounted for 27m of 
the day's final turnover of 34m 
shares and was concluded at 
480p a share. 

The Abu Dhabi Investment 
Authority bought 12 .5 per cent 
of Reuters in 1984 and was 
recently quoted as holding just 
under 7 per cent of the compa- 
ny’s shares. Yesterday’s deal 
represented a reduction of 0.8 
per cent 

It came just days after Reu- 
ters’ key European, presenta- 
tion to analysts and potential 
customers in Geneva. How- 
ever, most, analysts did not 
believe that it pointed to a 
change of heart by the com pa- 


EQUITY FUTURES AND OPTIONS TRADING 


' ■■■»!..- 


The recovery in UK gilts and 
sterling helped stock Index 
futures shrug off the gloom 
seen In recent sessions and 
the advance helped to pull the 


underlying cash market higher. 
writes JoeUGbazo. 

The June contract on the 
FT-SE 100 finished at 3,105, 
up 48 from Its previous dose 


■ FT-SE 100 INDEX FUTURES (UFFQ £2S p** ft4 indax point 


(APT) 




Open 

Sett price 

Change 

rtgh 

Low 

EsL voi 

Open btt. 

• 

Jun 

3061 £ 

3105.0 

+48.0 

3112.0 

3045t0 

12313 

53558 

* J . 

Sep 

3065.0 

3122^ 

+48.0 

3111.0 

306S.O 

2 

820 


Dec 


3133.0 

+473 



0 

211 


■ FT-SE MD2S0 INDEX FUTURES MTE £10 pwUMexpoM 


Jtm 


3780.0 3765,0 +250 3780.0 37800 


12 


3865 


(SWORD 





■ FT-SE 8B0 250 BHOEX FUTURES (OTBJQ CIO perlV Indw point 

Jurta 3,7625 891 

AD oprei HM Bourn are fcx prento u n day. t Bod vatunre dnm 

■ FT-SE 100 MPEX OPTION (UFQ (*31061 £10 per ft* todret prim 

2850 8000 3050 3100 3150 3200 3250 3300 

CPCPCPCPCPCPCPCP 
163*2 5 117 10% 77 20% 44% 38 22 67*2 9 107*2 8% 1SS>2 1*2 205*2 

175*2 22b 137*2 35 102 49 74 70% 15% 06% 31 128 18 1B5% 10 209 

195 35*2 150% 40 «S 8512 97 88*2 72% 113 524 143 37% 179 24 217% 

216'4S%178 62% 147% 81% 1t8 t03 33 128 7t%156% » 189 40 226% 

237 112% 177 190 12B%201% 87% 261 

COl 6,482 Puts 5316 

■ EURO STYLE FT-SE 100 INDEX OPTION OiFFE) £10 per Uhfn point 


«ajr 

Jun 

Jtf 

SS ’ 

Dae 


2076 


3075 


3125 


3175 


3275 
170 


Hay 184% 3% 137% B% 05% 14% 67% 28 31% 53% 14 84% S% 124% 1% 

Jn UB 17 165 28 119 39% 87 57% B 82 41% 111 2B% 148 15E 185 

-M 213 28% 14155 M%87% 45% 157 

Sep 244% 51% 176% 81 a# 122% 78% 177 

DKf 284% 83 218% 114 163 155 US 205*2 

cm 5,03 PUS 2JE05 - Undartytoo M» wfca. Pmadsau ana are land on aetnemea prices, 
t Uag drisd e«ky nmta. 

■ EURO STYLE FT-SE MP 250 TWOBC OPTION pMUQ CIO par (hi Index potot 


3760 3800 3050 3000 3950 

Ifay 50 35 28 60 8 86 
Cads 0 Puto 0 taOfcrort prices and rekneg are Wan at 430m 


4050 


4100 


ny*s leading shareholder. They 
pointed out that Reuters 
shares had outperformed the 
FT-SE-Actuaries Aii-Share 
Index by 40 per cent over the 
past year. With the potential 
pressure of the trade out of the 
way, the shares ended the ses- 
sion 11 higher at 500p. 

BP boost 

The stock market was star- 
tled by the 19 per cent dividend 
increase annnimravi by British 
Petroleum and hoisted the oil 
company’s shares to an 
all-time high of 408p. before a 
flurry of profit-taking left the 
stock a net 16% up at 399%p. 

Turnover was 21m shares. 


but at parity with the 
underlying cash market 
Volume was 12,313 contracts. 

Earlier, sellers of the contract 
dominated trading, with 
Goldman Sachs reported to 
have been particularly active 
In the first hour. Having 
opened at 3,051, June fefi to 
the day's low of 3.045, 
dragging foe cash market 
lower. 

The improvement in UK gilts, 
along with a more steady 
performance in the other 
European bond markets, 
helped to reverse the earlier 
retreat, with foe underlying 
cash market once again 
following suit The hfgh of the 
day was 3.112. reached in the 
last half-hour of trading. 

In foe traded options, total 
volume of 36,718 was little 
changed from Wednesday's 
figure. Most of foe trading 
activity was in the index 
options, with the FT-SE 100 
option tradfng 12.508 lots and 
foe Euro FT-SE option 8,042 
contracts. 

Hanson was the busiest 
stock option with a total of 
2,142 lots dealt The August 
260 calls were said to have 
been foe busiest series. Argyll 
Group was next at 1,776 lots. 


The UK Series 



mmm 

Day's Year 

Oft. 

Earn. 

P/E 

Xd a t* 

Total 


McyS 

<*0096 May 4 May3 Apr 29 ego 

yiekfft 

yWdW 

rate 

ytd 

Rebxn 

FT-SE 100 

3108.0 

+1.2 30705 31000 31203 27803 

3.91 

6.40 

16.78 

3836 

115339 

FT-SE MW 250 

3770.6 

+03 9^7.7 37763 3781.1 3114.7 

338 

6^6 

2234 

3630 

138237 

FT-SE Mid 260 ex bw Trusts 

3787.7 

+03 37708 3791J 3797.0 31440 

338 

537 

20.91 

3042 

138434 

FT-SE-A 380 

1579.7 

+1J) 15647 \BT7S 15883 13905 

3.75 

6.18 

1050 

1730 

120082 

FT-SE SmaBCap 

1841 as 

— 194Z06 194028 1843.05 1587 M 

236 

413 

a.7s 

18.10 

1407.19 

FT-SE Sme*Csp ex hw TVurts 

1921.31 

-Ol 1922.51 1923.82 192044 1698-84 

3.04 

457 

2739 

1634 

1474/43 

FT-SE-A ALL-SHARE 

1572^5 

+09 155059 157095 158044 1377.63 

338 

633 

1939 

17.11 

1218.16 

■ FT-SE Actuaries All -Share 









Oa/s Year 

Dft. 

Earn 

P/E 

Kd adj. 

Total 


May 5 

chge% May 4 fetey 3 Apr 29 B0O 

yWdK 

yWd% 

ratio 

ytd 

Rattan 

10 MNERAL EXTRACnONllfl) 

2881 94 

+2.4 261040 262334 2662.69 2111.00 

047 

439 

27.35 

3135 

106236 

12 Extractive tnduatries(4) 

3873-64 

387080 385044 3886J38 2912.00 

335 

5.10 

2457 

42.76 

1066.87 

15 OB. WagraiedCT 

262<71 

+3.1 254537 2S5338 2685.17 2032.80 

331 

432 

2530 

3238 

106138 

16 Oil Exploretlan & PradOU 

1388-30 

*18 1983.70 1967.49 198000 194330 

338 

135 

BOOOt 

1538 

113938 

20 GEN MANUFACTURERS{2623 

2100.40 

+03 209639 211636 212836 1741.00 

338 

434 

2838 

23.14 

108335 

21 BUMno & CoratnuctlonOl) 

1324.07 

+07 131427 130094131138 1072.90 

232 

3.68 

3430 

1237 

102406 

22 BuMt« Metis & Mercta(3Q) 

2056.43 

+0.1 205630 2078.99 310007 162430 

3.48 

337 

34.99 2058 

95044 

23 Chemlc9te(21) 

2642X13 

+03 253337 2549.10 254836 213730 

3.62 

449 

2739 

2839 

110734 

24 mvereffied tndUstrioteOQ 


+0.7 208423 211635 213834 180930 

438 

4.42 

28.58 

3045 

105435 

25 Bectronfec & Beet Equlpf34) 

2046.49 

+01 204339 2055.70 205637 190530 

339 

632 

1933 

12.72 

978.78 

26 En^neerino(71) 

1968.90 

__ 196834 1988.65 1983.15 148020 

230 

3.77 

3231 

15.77 

110933 

27 Englnaertng. VeMctes(12) 

2449.44 

+02 2443.98 246046 246499 177330 

42B 

2.16 

6479 

32/42 

1171^4 

28 Printing. Paper & Pckg{27) 

2941.07 

-08 296486 299020 296232 233030 

232 

485 

2493 

JftSQ 

114234 

28 Textites & ApparetCZO) 

1811S8 

+02 1807.72 182003 182433 180830 

334 

535 

23-19 

2045 

101134 


30 CONSfeBAER 00008(96) 

273937 

+03 2732/45 276533 275339 2730.00 

424 

730 

1530 

4139 

92738 

31 Brawariea(17} 

229834 

+05 228531 228025 2283.10 2092.50 

337 

7.48 

1041 

11.01 

100632 

32 Spblfes, Wines & OderapQ 

2978.30 

+03 29S233 268439 300057 290630 

332 

631 

17.87 

41.70 

98436 

33 Food Manufacturars(23) 

235334 

+08 233424 236238 238832 2312.60 

404 

7.47 

16.72 

3968 

97735 

34 HousaiMld Goods(l3) 

273011 

+03 272130 272235 Z728.78 2276.10 

332 

639 

1B33 

38.67 

97038 

36 Health Care<20) 

1719.72 

+03 171334 171933 1712.18 1B7230 

331 

632 

2132 

1930 

96639 

37 Pharmaceuticals(11) 

278475 

+0.1 2780.72 286138 278030 3033.10 

4.80 

738 

1431 

41.70 

86938 

36 Totnceodl 


-1.8 381234 384040 383838 365730 

533 

099 

1234 10235 

83410 


40 SERVKESPSOI 

41 DMrftxrforepI) 

42 LaMre A KaMa(23) 

43 Medt$9) 

44 FtatoDare. FoodfIT) 
46 Rotatara. GonorottM) 

48 Support Samcaam 

49 TtanaportflG) 

51 


205055 +09 203220 204035 2054^43 174009 254 553 21.46 1354 99123 

306 T. 00 +05 3042.77 308059308728 2B8750 257 523 22.71 31.80 1044.48 

223554 +03 222857 224526 225527 1683.10 320 4 2D 2754 1853 1087.70 

308828 408 300159 3118.43 3162.18 2238.40 250 4.74 28.00 3359 106458 

1643.73 +04 158951 156067 158829 1884.40 3.83 9.71 1278 1253 96251 

178250 +07 174950 175010 176024 1484.10 255 657 2248 5.46 92250 

168958 404 1663.14 167040 168028 149650 250 852 10.42 958 1001.70 

250021 +02 2485.02 2516/42 2539.43 196150 357 456 2853 15.14 96457 

1217.43 -n t 120456 118023 122450 <40 028 80007 551 103027 


60 UTIUTIESfSG) 

221436 

+03 2180.08 220338 2221.75 204730 

431 

737 

1038 

Ann 


62 Scotridty(17) 

210137 

+12 207537 209130 210533 167230 

334 

11.79 

10.43 

1535 

84837 


1881.94 

+03 1871.10 186337 161236 198030 

637 

* 

* 

aoo 

631.49 


197630 

♦13 1957.42 196032 1971.43 186730 

3.99 

£.12 

1934 

0.09 

02136 

68 WaterflS) 

1668.13 

-0.3 167028 1658.91 1682.75 1715.70 

535 

1538 

7.71 

3.40 

801.18 


1707.83 

♦0.7 169530 170730 171492 150583 

3.67 

533 

2040 

1639 

1 1BS.55 

70 FMANCULStlOa) 

218238 

*1.9 212288 214838 218337 1807.70 

414 

7/48 

15.78 

3937 

84433 

71 8arto(iQ 

2706.06 

+0.1 2625.12 207435 273838 229270 

338 

733 

1&18 5538 

80028 

73 tnsumnoatiq 

1306.79 

+13 129332 1291.07 129837 125930 

489 

10.72 

10.40 

2734 

88335 

74 Ufa AeaumaO) 

2377/47 

+02 237331 238734 2407.49 240230 

5-23 

7.07 

1839 

Bass 

90236 


2886.12 

+0.7 288831 2947.73 296834 2397.70 

331 

1056 

1132 2338 

863.76 

77 Other Rnancfel(24) 

168738 

-03 109132 189930 1832,45 1422.70 

331 

631 

18.18 

1936 

99138 

79 PropartvOO) 

1028.43 

+0/4 162031 103838 184832 120630 

3.78 

331 

32.90 

831 

91138 


txjoana 

+03 281636 2838.30 284037 223930 

2.17 

180 

66.13 

1934 

94131 

89 FT-SE-A ALL-$HARE(a56) 

1572.45 

+0.9 155839 167036 1680.44 197733 

3.69 

6.03 

1939 

17.11 

1216.16 

■ Hourly movements 








Open 900 

1030 

1130 1230 1330 1430 

1630 

10.10 HWiWy Lflwfttay 


3087.9 3063.1 3075.7 30895 31005 3101.7 3101.7 30975 31055 31065 30602 

3757.5 37645 37507 37655 3787.4 37600 37885 37865 37705 37705 37S25 

1663.7 16615 15685 1573.0 13775 15775 15775 1578.1 1579.7 15795 1558.7 


FT-SE 100 
FT-SE MM 250 
FT-SE-A 360 


Tm of FT-SE 100 Htfi <Mp« Low B-40WT1 

■ FT-SE Actuaries 350 Industry baskets 
op « 8L0Q umo 


1150 1250 1350 1450 1550 16.10 Cfaee Previous Changa 


PtiaimaceuUc ft 


Santa 


1261 .6 

12813 

12813 

12613 

imi3 

1264B 

12646 

1247.4 

+173 

27753 

27783 

27763 

2779^ 

2796.8 

27SS.fi 

2755.4 

Z751J2 

*42 

10653 

13540 

16S43 

16548 

16623 

16693 

16613 

1666.0 

-63 

27223 

2732.1 

27341 

2726.7 

27248 

27409 

273ft 3 

20573 

+813 


to Mta baura. Lin el eeratiune ree mMM tarn Tta HmH Uni* 
Share maos Snica. wHcn aware a mgs of atocMtic aiO pvantaad pnxtata 


wound Monnuknon tha FT-SE AcuarissStae IndfcMU 
LMH4. One SmflMari. B ridgre Un* " 9E1 gW-T** 

rtahftandta tods*. Tho FT-SE in tire FMe Md BO. FT-6E Aobttta 3fi0 end the FT-SEMiirire taduaby 

mrertsnw flreftundjl Three LfenWt, Both hi conM«S0n u*h wm feretituls of Marias nf ffre Fact*? of Muretamdar a ttandani ret of anxnd itfss. 

of As ureed Khodcm and Recueao of Md IMM 1884. C The FhancM Ifenas Umtad ISM. M rigHi irarwd. 
TT-SE" and ■FWW are IgH Bade mate real sandae maria d la London Such Ewtagi and fta ITnaiuJil Thai LhM.Ha FT-® JMa ®ai 
Mft» aareSadW Tire W CmW- 1 Saoior P« «*a sreatar flun 80 are not alnwL t w naflaHre. 


the highest day's b usiness in 
the stock since its preliminary 
results in February. 

Dealers in the oil sector 
acknowledged that the figures 
were startlingly good but posed 
the question as to why BP was 
hastening to reinstate a divi- 
dend cut made only two years 
ago. Some of the more cynical 
traders still harboured a suspi- 
cion that the Kuwait Invest- 
ment Office might be waiting 
for a good opportunity to place 
its near 10 per <v»nt stake in 
BP, the residue of the 22 per 
cent holding the KIO built up 
in the late 1980s. * 

But industry analysts were 
at pains to applaud BPs perfor- 
mance. Tt is very hard to crltf- 


TRADING VOLUME 


■ Major Stocks 


ASOAORWpt 
Abboy Nobonaft 
Abort FWw 
AONKymt 


Yestarday 

VaL Caning Day's 
000 a prtca efianga 


Avre 


. FDOtlf 
Anoc &*. Pons 
BAAt 
BAThda-t 
BET 
acc 
BOCt 

BPf 

BPS tads. 

BTf 

BT (P/Patd) 

BTRf 

Borft of SaxSandf 

BmcSrtf 

Basst 

BbaCMof 


Boohrf 


ttt. Aw n ipm art 
MWi Amareyot 
MSeftOast 
Brtisti Land 

arebbSuat 

auM 

0im*h Cassntt 
Breton 

Cable & Wlref 
Codbuy Sch«reppa«t 

Cdor&ojp 

Creodanf 
Cretan COram-t 

srSt 

Coolrecsi 


11500 6ah 
S3D 419 
741 S8 

1.400 577 

1.100 403 

74fl 397 
B^OO 2S1*j 
1/400 307 

154 60S 

4£9 272 

331 BOS 

5.400 447 
1500 127 

1.100 462 

735 707 

21500 309% 
999 337 

7500 373 
LHO 254% 
2JB0 399 
«500 189 

4500 512 

2.100 559 

3500 294 

359 411 

<400 559 

1.100 490 

997 480 

2.000 419 

13.000 281 

295 400 

91000 151% 
618 179 


MU 


EngCHM 


FW 


346 

12500 

2500 

1500 

492 

1500 

832 

2500 

2500 

157 

1500 

1400 

298 

MS 

1500 

1.100 


65% 

439 

479 

340 

339 

906 

233 

590 
277 

591 
453 
906 
IBS 
585 
567 
499 
421 


*1% 

♦6% 


- 2 % 

+2 

-1 

♦11 

-a 

+4 

+9 

*16% 

+2 

*6 

*«% 

*2 

*6 

+13 

-0 

*2 

+12 

-4 

-2 

♦it 

-% 

-a 

+10 

-i 

n 

+9 

*6 

♦11 

*1 

*6 

*2 

-11 

*1 

-13 

+2 

+10 

16 

♦11 


FDrejrei&CoLLT. 

Fartej 

Qrei AcckWrrt 
General Bea-T 
Gtatrt 
C3%owod 

oiradat 

OMMalt 


1.100 

1500 


KS8C(76psh«»t 


CTf 


XS 

IMbretat 
Land ~ 


U^AGonoreft 




Jormi 


L ondon Baa. 

Londio 


M3Ct 

UR 


204 +3 

149 +1 

141% *2 

2/400 230 

1.700 660 

5500 299% 

Z1G0 397 -4 

169 375 

1500 546 -2 

2500 490 *3 

902 597 

1.400 189 *6 

8*7 017 +1 

4500 492 «6 

2.700 999 429 

312 405 *6 

10.000 299% +2* 

807 193 *2 

274 305 -1 

1.100 167 *2 

342 380 *2 

4500 830 +12 

601 538 +« 

293 BOB *2 

2500 S3? +12 

901 597 +19 

3.100 194 *3 

952 955 +9 

374 809 -9 

875 441 

241 373 

3500 579 +20 

11500 150 *2 

3i o sas «e 

2500 1tt% -% 

92* 


Marta A SCencerf 

'» Beet. 

i (wm} 


NFCt 


39 468 

112 192 

136 992 

2500 430 

130 684 

3.400 123 

2.400 224 

3500 446 

25U 423 

3500 235 

904 481 

459 621 

Ncrtwm FbOdarf 468 221 

Norweb 764 629 

Pereeorrt 273 036 

PA Of 835 700 

<900 195 

918 496 

1.100 303 


HTZt 


U?l^c4maat 


1 M.t 

2W 

FUa F 
FMBk 
FtewlL 

fs wbreyt 


Scottah ANes.t 
ScotHidrt^aea. 
Smrtnfi Peweit 
Sererf 


SawnTUt . 

^•Treiwpgrrt 


♦7 
♦1 
-7 

844 

239 +% 

422 -6 

878 +4 

532 *9 

843 *3 

706 234 *3 

34500 500 +11 

9500 194% +4 

780 400 re 

1500 an 

11500 302% +14% 

3 1279 -2 

1500 623 +11 

681 3M +6 

2500 348 +7 

4500 121% +1% 

199 

317 *4 


1200 

j'nrm 

3,000 

713 

1^00 

1500 


341 


14500 

912 

1.100 


721 


230 

SnrtiftVJUA 2500 506 

SrataANvhewt 2500 145 

SreN Beectwnt . 2550 400 

SrrW Beeebam Lka.| 730 388 

SmSJa hdt. 596 *96 

Soulhem BaoLt S23 574 

Soutti Waiaa Bed- 102 837 

SeubUtat Watar 652 487 

9rerei Wore. Bare. no 587 

Saxhorn Wsor ^ 123 461 

Kantart Cf*1d.t 961 966 

SBrereun , 534 213 

BreiAtanoot 1500 327 

TAN ' 460 240 

nOHFt 1500 405 

ISBt 
1*11180! 

TateA Lta 
IhytarWtadrere 
itasot 

TbameaWtaret 

ThamEUf! 

IMM! 


«itn 

3500 

1500 

721 


*16 

-12 

-1 

+11 

+1 

+1 

-3 

+2 

+7 

-1 

+9 

-7 

4=9 

-1 

4fl 

4% 

44 

*6 

46% 


uSSft 

IBkata! 


WttaiWMor 


211 
167 
434 
152 

11400 2iS% 46% 

201 463 -4 

1500 1133 4fl 

3.100 »5 -2% 

1.100 103% +1 

78 394 +1 

890 1069 *17 

355 
933 
650 


43 


603 

604 


Carai 


J .hi., 

TUAuai near 

Zgneot 


711 

348 
S500 
330 
<400 
122 
160 
15S0 564 

1500 39T 

SOD 230 
413 201 

943 944 

583 
X79 
997 


♦4 

+13 


«0 

2500 


+10 

♦1 

42 
+10 
-T9 

43 
•1 
+9 


tndng ncbene Igr a seiecion at n|ar 
deab Ore SEM eya tnn 

yatunla/ ufl <30p(iL T/adea of aM mU or 
nmar raided aom. ! tadem an FT-8E 
100 hxtai amoirent 


else these figures. The com- 
pany is enormously leveraged 
to European recovery In refin- 
ing and chemicals,’’ said Mr 
Jeremy Hudson at Lehman 
Brothers, the US-owned broker- 
age concern. 

Hoare Govett, BP’s broker, 
described the figures as “stun- 
ningly good" and the stock 
“undervalued". Goldman Sachs 
forecast that the shares would 
reach the high 400s later in the 
year. Mr Keith Morris at Schra- 
ders, a long-time bull of BP, 
said the shares’ performance 
demonstrated the market's 
belief that the company can 
still make decent profits at $15 
a barrel. 

Reports of swingeing cuts to 
come at Do It All, foe home 
improvement subsidiary of 
Boots and WJH. Smith, boosted 
the shares in both r-nm panics 
“If true, this degree of rational- 
isation at this price represents 
good value for Boots and 
Smith." said one stores special- 
ist The report that around half 
- or 100 - of the DIY outlets 
would be shut or sold at a cost 
of some £60m compares with 
City predictions of 50 closures 
at a cost of £55 m. Boots added 
12 at 559p, while Smith put on 
11 at 506p. Boots was also ref- 
using to comment on US press 
reports that tt was talking to 
HJ. Heinz over the sale of its 
Farley baby food subsidiary. 

The strong rally by the Hong 
Kong market triggered a big 
recovery in stocks such as 
Standard Chartered and HSBC. 
The latter jumped 29 to 698p 
and foe former, whose shares 
are scheduled to be split four- 
for-one this morning, rose 29 to 


NEW HIGHS AND 
LOWS FOR 1994 

NSW HWH8 (3CA 

8UL09M A CN8I1W (1) Brandon Hn, BLDG 
MAILS A MCKTS M Eprefei. Jahnsm HoM, 
DOmBUTORS (8 Dreanm QecU 
OtVERSHED INDL8 tt) WftnsaB, ELECTKNC A 
ELECT EOUP (3) ASEA a, Becsoto, Eurxxhwm. 
BMW ICOHIG w Adre Copco B. BrtdMt SKF. 
Wagon tA. HOUMHOLD 00006 (1) DataMjr. 

OlVeSTMEtrr TRUSTS 9Q FAC Inc. OMti. 
Gsrvnara Bit Inc., LEISURE A HOTELS (Q 
Biore W0hcr. Rrenaden'a (HL MBtCHAMT 
BAMtS (1) ta Brea- OIL EXPLORATION A 
PftOO (0 LASMO 9Hpc PlL OH, WTEBRATED 
(1) BP. httho. PAP OI a PAOta HI 
wyndBhow PtaBO. PROPER n f (0 IBtfi-Pwre . 
SUPPORT SERVS m B4B. Ptoa P4L Road 
Encufire. Sags. TEXriLES A APPAREL (1) 
Ataandre MMw. TRANSPORT (1| Good* 
Drerant, AfeiereCAN8 (1) Ureafe 
NEW LOWS (IB^. 

G9.TS Pfl OTHER FIXED MEREST (1) 

BANKS (1) Ottomans Bank, BLOG MAILS A 
MCHTS m Barton. Bkre Ctata. Da 7*pc ftt. 
Creadon. Do 7*p Pit, f taoo a. RMC. 
DH/HWHE D INDIA (5) ELECTMCfTY (1> 
tattonN Pmrer. ELBCTRNC A ELECT SOUP 0) 
TNanMbti Sp. ENOMEERtNG (Q Poaparecrmn 
htl. fltauRte. EXTRACTIVE HDS (S) FOOD 

MANUF (8 Naads' BA {Heg}, Bfem. QAS 

OOmBUTlON p)BrtahOre. HEALTH CARE 
(1) Salon HoNdicaa, HOUSEHOLD GOODS CD 
Cretaxon Ftareatr. 8toMghl INSURANCE |S| 
Bmdrep ck, Qual AaNdret Indapanoare, 
London kreoo. Mku Prnnkun Undarantfeig. 
INVESTMENT TTtUSTS p+] INVESTMENT 

comp AM E3 M LEMURE A HOTELS ft) Font 
LIRE ASSURANCE C9 LagN A GanoroL Lloyta 
Mbay LHt, BBXA (Q EkMP, MMI Wire.. 
IMRCKANT BANKS M tamfarea. Hntaoa 
7tSpC W- OIL, INTBQRATB) (t) Exwxv. OTHER 
FfNANCUU. (3J BWD Sool. London Ftataimg. 

M. A O. OTHER SERVB A BU8NS m 
Ptaitamok, PHARMAC8UnCALS A PRTNOL 
PAPER A RACKS (1) ClWI PCfa&. PROPERTY 
n BUon. Camay mn. Drewam VMoy, Honing 
Baker Hreita. LeOnreat lltfpcSlppd. Ob 2012, 
NBnNLR& POOD (D RETAILERS. GENERAL 
(1) Cauls. SUPPORT 8BWB 0 Cedredata. OE 
mrUTFI FTOMMUMCATIONS (I) SodaHy 
Sons, TEXRLE8 A APPARB. (1) Leeds. 
TRANSPORT {!) NFC. WATER (4) Utd Kenta 
Sorehren, Thamas, Yortahro. AMERICANS P) 
CANADIANS (2V 

965p. 

Barclays advanced 13 to 512p 
following foe annual meeting, 
while Lloyds closed 23 better at 
582p. Bank of Scotland fell to 
177p immediately following the 


preliminary figures, reflecting 
profit-taking, but rallied to 
close a net 5 up at I88p. 

Zeneca improved 9 to 697p 
ahead of its annual meeting 
today and a presentation to 
analysts on Monday at its 
research base in Cheshire. Leh- 
man Brothers was also said to 
have recommended the stock 
at a pharmaceuticals confer- 
ence focusing on emerging 
markets. Wellcome, another of 
Lehman’s favoured stocks. 
Improved 13 to 563p. 

1C1 benefited from the 
improved figures at BP, which 
revealed that its chemicals 
division had moved Into profit 
for the first time in IS months. 
ICI shares lifted 12 to 830p. 

Chemicals group La porte 
slipped 6 to 808p with one secu- . 
rities house believed to be 
offering a line of lm shares 
around the market 

Turnover in whisky manu- 
facturer Burn Stewart reached 
6m shares as 5 per cent of the 

flflmpany fthang M hands Deal- 
ers said the shares were 
bought at 108p and placed in 
the market at between llOp 
and lllp, with Cazenove 
thought to be responsible. 
Bum Stewart shares slipped 2 
to 116p. 

Management changes at 
Bass were said to have 
unnerved some investors, 
together with a bout of profit- 
taking after a recent good run. 
The shares retreated 9 to 558p. 
Scottish and Newcastle, up 11 
at 523p, and Whitbread, ahead 
16 at 564p. benfited from 
switching from Bass. 

Sparkling spirits figures 
from LVMH’s far eastern 


operations helped Guinness 
put on 6 to 4S2p. Luxury goods 
group Vendome moved for- 
ward 14 to 452p. 

Airtonrs fully-paid shares 
suged 39 to 469p after presen- 
tations to Scottish institutions. 
The nil-paid doubled in value 
to 79p. 

Turnover In Rolls-Royce rose 
to 9.5m and the shares hard- 
ened 4 to 194 Vip on reports that 
the group may win a substan- 
tial order from Saudi Arabia. 

Queries over the safety of 
the Channel tunnel cast a 
shadow over operator Euro- 
tunnel ahead of today's official 
opening. The shares relin- 
quished 8 to 460p. 

The market appreciated 
news from conglomerate Was- 
sail that it planned to acquire 
General Cable of the US in a 
£178.7m deal, to be partly 
funded by a rights issue. The 
shares jumped 18 to 320p. 

Food retailers continued 
their encouraging run. Argyll 
climbed 13*/i to 25lV*p on 9£m 
traded, Kwik Save 16 to 567p, 
Tesco 8*A to 223% p on ilm 
dealt and J. Sainsbnry 15% to 
392%p on 9.5m. 

Other big moves 

Bodyshop and Bernard Mat- 
thews gained 20 at 234p and 7 
at 107p on well received profits 
for the former and a positive 
annual mal tin g for foe latter. 

MARKET REPORTERS: 

Steve Thompson, 

Christopher Price, 

Peter John, Joel Kfoazo. 

■ Other statistics, Page 23 


LONDON EQUITIES 


r 

T1 

■n 

m 

EQUITY OPTIONS 





Optra 

Jd Oct tea jre Oct Jan Option 

■toy A"B Bov URr Aug Nov 


RISES AND FALLS YESTERDAY 


British Finds. 


JMBHjreu 540 43 S2H -14M2lh - 

(*578 | 589 16 Z7K - 41 47H - 

240 29K 24 XV, 13 17 2IM 

260 BW 14% 19 Z5h 29 33 

50 9 It 12 2 4 4M 

60 3H 5U 7 6H IK tO 


Argja 
CZ51 ) 
ASM 

CM) 


MAfewyt 390 37 47 52 11 1754 23 
(*419 ) 42D 18H 30M 38K 25 32 37M 

MQ Beta A 390 273BK<m 17Z6fc3Zfe 
(*400) 420 13H 23 30 35 44 49*4 

Boots 550 26 39 46 22H 30 38V. 

r559 ) GOO • 18 27 SBH 61H 67 

BP 3B0 27 SB 41M 1454 21 26 

{■389 I 420 12H 22 2B 31 38 42M 

BrttbSH 140 17*21**4% 5N 9H 10 
P51 ) 160 7 HR 15 15M ISM 22 

BISS 550 31 M 52 9 23M30H 43 
(-557 ) BOO 12 25 30 57 G1M73M 

QtaSTta 42S 38M — — 16 - - 

(■437 ) 450 18 - - 33 - - 

CoataSdS 550 29M 44 SIM 25 34 42 

(*560) GOO 10K 22H 31 58 85M 71M 

Comm lUon 550 32 38 47M 17 27H3IH 
(*S5fl ) BOO 11 18 2S 48 59 82 

IQ m 57V. 75 83K 22 37M 47 

C828 ) 850 29M4SM 58 48M 63M 72 

BnyMiar 850 51 B1M 73 15 34M 31 

rS91 ) 600 23M 36M 48 39 49M 58 

Lrexl Saar 850 21 31 37M 23M 35 41M 

ran 700 5 13M2M8M 72 75 

Mata & S 420 21M 31M 37 I4M IBM 23 
(*430 ) 400 BM 14 IBM 41 43 46 

me t re 420 42M 48 ssm iom IBM 20M 
(*448 ) 4B0 ISM a 36 28M 37 40M 

Sabatuy 390 19 29M3BM22M X 35 
(*392 ) 420 8M19M 25 45 51 54 

Shea Trans. 700 43 54 6ZM I4M Z7 32 
C720 ) 750 17 28M37M38M 5356M 

Sfeareousa 200 t*H 23M 5 UK 9K 13 
(*213 ) 220 8M 15 18M 17 20M 23M 


97 12 - - 6H - - 

106 7 - - 11*4 - - 

1060 81 7BM BOM 27H38B 45M 
1100 a BOM 63M 58 83M 71 
850 85 78M a 10M22M 3 
700 S2M 48 5BM 30 44% SOM 
Hot Ate Ko* May Aug No* 


C287 ) 


H50) 

liras tods 

ran ) 
p & o 
r«99) 


H9S) 


1 14M aM 
10 34M S3M 
1 BM 10M 
7 16 MM 
4 I3 20M 


280 B IBM 21 M IN 0M UM 
280 f 7M 12M 14M21M a 

134 18MaM28M 1M 8 9 

154 5 14 16M 7M 14M 15N 

200 5 18 22 3fc 12 IBM 

220 1 7M 13 20H 25 31 

850 SIM 72 83M 
700 11 41 S 
160 I7 23H 31 

200 2M 11M20M 
300 5 21M S 

330 1 8 12M 30 33 39 

800 48M73H 99 IN 21 38M 
850 8 44MG1M 16 43 60 

500 MM 53 63M 1 14 24H 

590 2 MM 37 Z2M 35M 51 

240 19 30 37M 1H SM 15M 
260 4M 18M 27M 7M 17M 25M 
220 8T7MMM 3 12 17 
340 I M IS 19 »a» 

500 SIM B5H 80H 1 12M 21M 

550 0 34M S 10M 33M 43H 

354 S 24 & 1H 13K I9M 

384 1 11 18 25M 31 37 

Jol Ocf JM JtS Otf Jan 


Other Fixed Interest 

Mineral Extraction 

General Manufacturers . 

Consumer Goode 

Services 


HnaixJala 

Investment Trusts . 
Others 


Rtaes 

Fata 

Same 

52 

16 

5 

0 

1 

14 

54 

74 

73 

120 

131 

418 

38 

47 

109 

84 

87 

345 

24 

9 

13 

109 

86 

183 

111 

70 

291 

52 

45 

33 


Tows 


642 


588 


1484 


Data oared on flnsa compretas Bated an are London Stan Sendee. 


(■302) 
RT2 
C842J 
Rcdbna 
rs3i i 
Royri in 
rrsB) 
Ten 
P223 ) 


TRADfTIOilAL OPTIONS 


First DeaBrigs 
Last Deeings 


May 3 
May 20 


Last Declarations 
For settJamert 


Aug 11 
Aug 22 


Cans: UG, Radius. Puts & COb: Argyfl, Butat Rres, TR Tech, Tesco. 


LONDON RECENT ISSUES: EQUITIES 


P6«) 


rseo) 

Optra 


BAA 950 S8M 1% 82 23 33 42 

C98S ) 100031MSZM 65 4BM SB G5M 

Hanes Wb 460 (SM a 30 28 33 aM 

(■464 ) 500 EM 1ZM 1EM S7M 81 B8M 

Option Jm Sep nee jmi Sap Dec 

Abbey Natl 380 36M 45M 54 4 12M 17H 

T419 ) 420 ISM 28M 37M 14M 25M 31 

tasbad 30 5M 7H 8 1M 3 4 

f33 ) 352H 5 6 3M5M6M 

Barclays 500 aH 43 S3 12 2SM 34 

{■512 ) 550 7M 20M »M 43M 54M 63 

SM CtrdB 280 21 32M 37 6 13M 18 

(*293 ) 300 9 a 27 15M 23M 28M 

Brush Bn 280 f» ISM 19 15 ISM IBM 

(*281 ) 300 3 8 10 31 33* 40 

Otars 180 20* a 29» 3M 11 13 

(195 ) 200 7 15 IBM 11MZ1M23M 


no3» 


P084) 

Zeneca 

f«> 

Optra 


Greta 1M 

480 

11 

29. 

ton 

4ft 

21 

72 

(•<« ) 

500 

1 ■ 

tz» 

23 

38ft 

46ft 

52 

ladbreto 

ISO 

BM 

17 

24 

2ft 

10ft 

15M 

(*184 ) 

an 

1 

6ft 

15 

17ft 

ZZft 

a 

UW Hsorts 

330 

26: 

SBfti 

mt 

2M 

9ft 

14H 

P3S3) 

360 

3ft: 

71ft 30ft 

11 

21 ! 

2SK 

Optra 


Joe 

tap 

Dec 

Jun 

tap 

Dec 

Rots 

140 

14 

xi : 

a* 

5ft 

11M 

IBM 

rwi 

160 

6 

12 

IBM 

17 

23ft 28ft 

Option 


»«y 

A- 

■w 

*9 

AW 

(tor 

Bril Aon 

460 

a 

SB 

71 

4M 

aft. 

12ft 

r<7B) 

500 

4: 

Eft 

a 

a 

40 

64 

BAT Mi 

420 

38 

MMI 

SDH 

1h 

Oft 

19 

r«fl) 

460 

2ft 

21 29ft 

IB 

a 

41 

BTR 

aeo 

Sift 

41 

48 

1 

7ft 

14 

r»> 

380 

6 

22 30ft 

BM 

IS 

27 

MTtaoare 

360 

is : 

*7ft 

a 

1ft 

14 ■ 

IBM 

D73) 

390 

ift 

13 

19 

18» 

32 

37 

CaAuyScb 

453 

a 

- 

- 

1 

- 

- 

f4») 

493 

2 

- 

- 

17 

- 

- 

EsstanSK 

550 

37ft SZft 

81 

1 

IBM 

Z 7 

(-505 ) 

800 

4 

3 35M 

IBM 

46 

54 

fitm 

480 

a 

41 4Bft 

2 

12ft 

21 

r«2) 

500 

214 17ft 

a 

72 

32 

41 

GEC 

2BD 

a aft 

a 

1 

8ft 

12ft 

r»> 

300 

3M 

13 

16 

5ft 

IB 

a 


HtadDwn 150 12* 19 a 3M 8M 9M 
(*166 I 180 3M BM ISM 16 20M 21 

LonrtS 140 BM 17 22M 8 16 19 

C140 ) 160 3 BM MM 23 28 32 

m Power 42D 15 26 34 19HZ7M32M 
r*22 ) 460 3M 12 IBM 50 86 59 

Sad Fewer 330 25 34 39 6 17M 20ft 

(*346 ) 380 9 19 25 20ft 33» 37 

Seen 120 5 8ft lift 6 8M II 

(121 ) 130 2 3 7ft 14 16 17M 

Fane 220 IBM SM 27ft 5» lift 16 

|*22S ) 240 BH 15ft 17ft 16 Z2M 28 

IBS IB - - 5 - - 

174 ■ - - 15 - - 

11(0 61ft B*ft 1M SDft 54 88ft 
1150 35ft 57ft 77 43M BIM 93ft 
200 17 MM 3 4 10ft 14 

220 BM 14ft 18 14 21K 25 


■sue Amt 
Brice paid 

P up 

MkL 

cap 

(Cmj 

IBM 

High Low Stock 

Close 

Price 

P 

+/■ 

Not 
■ ta. 

Div.-Gre 
cov, ytd 

WE 

net 

100 

F.P. 

400 

102 

■ 90 Abtrutt Hgh Inc 

102 

♦1 


_ 

_ 

_ 

- 

F.P. 

124 

10 

9 Ataust Scot wm 

10 


• 

_ 

_ 

_ 

- 

FJP. 1224.8 £14% £14% Ashanti Goto . 

ei4% 


- 

- 

- 

_ 

- 

F.P. 

6002 

227 

205 Capital Shop CTre 

220 

-2 

u&5 

0.7 

17 

529 

100 

FP. 

396 

114 

110 DRS Data 6 Rw 

111 


LN2L0 

1.1 

12 

285 

- 

FP. 

10.8 

30 

28% Etanbgh. tecawre 

27 

+% 

- 

- 

- 


ISO 

F.P. 

01.1 

171 

1G0 GRT Bus 

171 


Fvoa 

13 

29 

139 

- 

FJ». 

10*2 

483 

479 Govett Gtobal Smlr 

479 

-1 

_ 




160 

F.P. 

4172 

191 

17B House of Fraser 

182 


LN5D 

2.2 

3.4 

16/4 

130 

FJ». 

739 

138 

129 Keoer 

132 


WNQ4.7 

2.3 

39 

159 

155 

FJ>. 

849 

164 

152 Nottingham 

160 


u55Z 

19 

49 

15.7 

BO 

FJP. 

27.7 

B7 

73 Oxfiad MolaciSar 

76 


- 

_ 

_ 

_ 

200 

FJ>. 

71.1 

241 

218 Partra 

241 


USX 

22 

29 

209 

160 

FJ>. 

215 

17B 

160 Paraora 

17B 


LML84 

2.9 

2.7 

169 

- 

F.P. 

6.03 

60 

53 Secure Ratfcanant 

60 


• 

_ 

_ 

_ 

120 

FJ>. 

285 

133 

131 Si Jemes Bch Hot 

131 


RN3-8 

L7 

16 

169 

196 

FJ>. 

129 

281 

IBB Stperacupo VR 

242 

-14 

- 

- 



100 

F.P. 

425 

S3 

91 Temidetan Lot Am 

92 

*h. 

- 

- 

- 

m 

- 

FJ». 

<07 

50 

44 Do Wits 

44 


re 

- 

- 

- 

- 

FJ». 

1429 

104 

100 Templeton Emg C 

102 

+1 

• _ 

- 

. 

_ 

100 

FJ>. 

619 

102 

00 Undervalued A3t3 

102 

♦% 

a. 

_ 

_ 

_ 

205 

FJ>. 

509 

220 

203 WreBngton 

215 

-1 

W5.17 

2.0 

39 

Don 


RIGHTS OFFERS 


Temree 

n«) 

Den BA 

niaz) 

TSB 

ran ) 

{W) 


r®62 j 


240 12ft 20ft MM 7ft 15ft 18ft 
260 4ft lift WM ZOft 28ft 30ft 
SS0 33M57M 68 17 36 45 
BOO 12 MM 4B 48 66 72ft 
M Ott JaB JU Oct Jm 

Sara 59) 40ft 62 BB21K42H 49 

r»9 ) 600 a 38 47 49ft TIM 77M 

K5BC73P* 660 88 87ft TO 25 39ft 49 

r697 ) 700 SIM 71ft 89ft 45 84ft 74ft 

Rental 5000 S 39ft 51ft 23 34 41 
rang 51 a 2 mm -Z9i& 40 - 
Option feby Abb Hw Iter Aog Not 


taue 

price 

P 

Amount 

pad 

UP 

Latest 

RenutL 

dale 

1994 

Hgh Low 

Stock 

Closing 

pries 

P 

+or- 

- 

MI 

- 

3pm 

1pm 

Abtiuat Scotiand 

1%pm 


390 

M 

17/0 

79pm 

20pm 

Airtoua 

79pm 

+39 

62 

M 

2/6 

4% pm 

1 %pm 

Alien Rsher 

3*2pm 


£16 

W 

915 

390pm 

145pm 

Bril 8kMTeeh 

145pm 

-30 

56 


- 

16pm 

5pm 

Me Bectric 

5pm 


500 

m 

3615 

63pm 

58pm 

Oenrcnt VaBey 

58pm 

-« 

9 

M 

27/5 

Vpm 

wn 

Era 

%pm 


26 

N6 


10pm 

9pm 

Guinness Peat 

9*21*1 


192 

M 

15/B 

27pm 

15pm 

Hunters Armlay 

16 pm 

-2 

106 

MI 

27/5 

S5pm 

16pm 

LASMO 

43pm 


425 

M 

27/5 

67%pm 

64pm 

Mays 

67%pm 


a 

oa 

- 

4pm 

iVpm 

Pantos 



100 

Ml 

31/5 

2ftxn 

13pm 

Simon Eng 

26pm 


2 

NS 

24/5 

%pm 

Jfepm 

Temeris 



330 

NS 

9/6 

43pm 

29pm 

WHems Hldgs 

30pm 



Rofefloyce 

(*184 ) 


180 IBM 24ft a 1 7 12 

200 2 12M M 7M 15 22ft 


FINANCIAL TIMES EQUITY INDICES 

Mays May 4 May 3 Apr 29 Apr 28 Yr ago 


Ugh law 


* IMartytog recreity pric< Wewii re iie ehore i reo 
booed an doling oflar prices. 

May 6. Total ccnaadK 3&6» Cafc 22.008 Puts: 
1<B5D 


OrtBnary Share 2481^ 24618 2434.1 25Q5J 2504^ 21B8.5 27106 2439_2 


OnL dft. yield 

4X>1 

4.03 

3.93 

0.97 

3.97 

493 

495 

3-43 

Earn. yU. % hd 

5-47 

5.49 

5.42 

5/40 

5/41 

697 

SSI 

392 

P/E ratio net 

1992 

1996 

19.79 

1997 

1995 

19.44 

33y43 

18/46 

P/E ratio rtf 

2051 

20/45 

2099 

20.77 

20,75 

1^17 

.mwi 

2037 


FT GOLD MINES INDEX 



ray % ta 

4 nifty 

May My Yrar 

3 2 ago 

Bora Or 

52 HOk 

Util 

flobl Um tata (ty 
■ Rseioaai fesfless 

1823.19 -U 

1851J3 168398 151492 

205 

2387/40 1513L54 

MriaflG 

xm to -57 

771120 7775.13 2018.10 

490 

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CURRENCIES AND MONEY 


MARKETS REPORT 


POUND SPOT FORWARD AGAINST THE. POUND 


Dollar holds firm 


Central bank intervention to 
support the dollar appeared to 
have worked yesterday as the 
US currency traded in a fairly 
stable range against the 
D-Mark and the yen. writes 
Philip Gawtth. 

The dollar closed yesterday 
in London at DBJL6682 against 
the D-Mark from DM1 £62 on 
Wednesday. Against the yen it 
finished at Y102.695 from 
Y105L20S. 

There was no sign of central 
bank intervention, with the 
market seemingly taking a 
breather ahead of the release 
of important US non-farm pay- 
roll data today. 

Few observers believe the 
dollar's woes are behind it The 
focus of attention now Is on 
what sort of follow-up activity 
can be expected. Options 
include further intervention, 
US or German interest rate 
changes supportive of the dol- 
lar, or market-access measures 
in the case of Japan. 

Elsewhere the French franc 
was firm after the Bank of 
France cut its intervention rate 
by ten basis points to 5.60 per 
cent. The peseta and the 
escudo were weak after the 
overnight arrest of the former 
Bank of Spain governor for tax 
fraud. Swedish and Austrian 
interest rates were also cut 


AorirertfceOMtDM per**.' 

T-67 


trends ~ supporting lower rates 
in Germany and Wgt»*r rates 
in the US - leads some analysts 
to argue that the intervention 
has a good chance of succeed- 
ing: 


1-66 ~~ 




1-S * %i : 

apt.. t#jr: • 

Sourer FT ewphftr. ' ■' 2 • ; • 


■ Pound hi Iw York 


■tars 

— LAM— — 

-Pnw. ctoaa 

Eapat 

1/4990 

1XOZO 

1 ran 

14877 

1X001 

3 mm 

1-4984 

1/4981 

IF 

1.4934 

1-4000 


■ The D-Mark was firmer 
against most European curren- 
cies yesterday. It closed at 
FFr3.428 against the French 
franc from FFr&424. 

The Portuguese escudo con- 
tinues to suffer from the fall- 
oat of the political ««»iriwi in 
Spain. It finished slightly 
weaker at Esl03 from Earns. 

The Spanish peseta, how- 
ever, recovered some ground 
after prime minister Mr Felipe 
Gonzalez said he had no inten- 
tion of resigning and would 
continue as head of govern- 
ment 


•toys 

Ctaakig 

ndd-polnt 

Estop* 

Austria 

(Sen? 

17X990 

Belgium 

m 

Si 2884 

Demote 

VK4 

9.7705 

Rntand 

m 

&1013 

France 

(FFfl 

8A680 

Qennraiy 

m 

£4909 

Greece 

pi? 

387478 

Ireland 

os? 

1.0296 

Italy 

w 

2407/00 

Laaombnag 

(URrJ 

51X884 

NottMitands 

(R? 

24042 

Noramy 

(M<0 

102384 

FPrtugri 


257217 

Spain 

Pte? 

206,384 

Sweden 

(SKri 

11.6643 

Swfizertend 

(SRJ 

£1234 

UK 

to 

• 

Ecu 


1X970 

SOFT 

_ 

0944832 

AmericM 

Argentine 

(Peso* 

1.4950 

Bran 

(CD 

2079.78 


Day's Md 
Ngft tow 


51X692 510948 51.4234 


- 101 a 1270 8.001 0 


Canada (CS) £0747 -0003 736 - 758 20832 20711 zssrsi 

Metrics 04 m Peso) 44488 +0.0187 414 - 581 44681 44414 

USA [*) 14968 -0002 965 - 970 14015 1.4837 14955 


r nHIr rt MMclhi 

Aintrah PS) 20941 -00088 990 - 962 £1121 £0882 2X828 

Hons Kong (HK$) 11-6643 -00162 620 - 666 11.8012 114411 114513 

Mi £«a$ 484612 -0.0626 377 - 648 47.0850 408810 

Japan (Y) 153.709 +0424 646 - 772 154400 152400 153334 

Mriayria 34868 -00257 844 - 886 4.0196 09803 

New Zee tod (NZJ) 24907 -00071 867-827 24979 24843 24838 

PWfippfciea (Peec) 40.7117 +0X192 803 - 430 409495 404585 

SaudAnMa (SH) 6.8134 -00071 122-146 S429S 5.6021 

Srnpora fSSJ 24316 -00014 303-326 £3368 £3288 

3 Africa (Corvl (R) £4205 +0X182 173 - 236 04490 03968 

S Africa (Rv) (R) 7.1696 +00802 533-856 7XS37 7.1005 

South Koran (Wtati) 120643 -1XS 618 - 688 121021 120422 

Taiwan (TS) 306938 +0X43 722 - 154 38.8000 384300 

Thaftatcl 06 37.7481 -0X307 288 - 883 37X380 37.8860 

1SI» rate tar Mta 4 8MMte«inwdahttWltai«xiapratefitaaf»» only flW le ft Ifra ria^ 
but era Biw#ed by curare Manet latte. SMrtad Mga fcWM te *w Bank oJBfeBid. Bn # 
the Mar Spot tatata derived faxn TIE WMfflEUnsRS CLOSING SPOT RATES. Soma i 


■ Analysts said the sight of up 
to 17 central banks operating 
in concert on Wednesday 
appeared to have “frightened 
off the market. Mr Airis 
Karayiannis, head of foreign 
exchange at Lehmann 
Brothers, commented: “Mar- 
kets will perhaps take on a 
central bank If its on its own. 
But if more than three banks 
do something in the market, 
the market will respect that” 

Fresh impetus for the mar- 
kets could come today with the 
release of labour market statis- 
tics. The market is anticipating 
a 300,000 increase in jobs. If the 
figure is less than anticipated, 
this would aggravate the dol- 
lar’s woes by undermining the 
consensus view that another 
Fed tightening is imminent. 

The market yesterday was 
concerned with trying to 
understand why the interven- 
tion had taken place, what it 
sought to achieve, and what 
more can be anticipated. Mr 
Karayiannis disputed the mew 


that a chang e of trend was tak- 
ing place. “Central banks are 
concerned about volatility. 
They do not change trends. 1 
think they want to smooth the 
process, not to change the 
direction.” 

Mr Steve Hannah, head of 
research at IBJ International 
in London, commented: “The 
intervention by Itself is help- 
ful, but not a sufficient condi- 
tion to arrest the dollar's 
downward move." He 
suggested that it needed to be 
supported by shifts in interest 
rates, with US rates rising and 
German rates falling. Atten- 
tion will be on the Bundesbank 
council when it meets next 
Wednesday to see whether it 
cuts the discount rate. 

One possible complication 
for the Bundesbank in support- 
ing the dollar is that this 
inflates the money supply, 
already well beyond its target 
range. The Bundesbank will 
hardly welcome farther com- 
plications in an area that has 
already caused embarrass- 
ment. 

If the bank chooses to coun- 
teract this effect by draining 
money from the system, it win 
put upward pressure on manor 
market rates at a time when it 
is hoping to ease policy. If the 
Intervention is left unsteril- 
Ised, this will put downward 
pressure on money market 
rates. 

The fact that intervention 
would then be working with 
the grain of money market 


■ The after-effects of Wednes- 
day’s intervention was seen in 


day, with call money ea s in g to 
5 £5/5.45 per cent from 5.45/555 
per cent. Analysts said this 
reflected the anticipation of 
rate cuts, sparked by com- 
ments earlier this week from 
Bundesbank council members, 
as well as the expectation of a 
large inflow of rash from the 
currency intervention. 

This bullish sentiment was 
also evident in the futures 
market, with the June euro- 
mark contract settling at 95.05, 
thirteen bams points up. Vol- 
umes were good with over 
47,000 lots traded. 

Sterling futures also finished 
higher. The June contract 
closed at 9159, up from 9A56. 
Volumes were fairly light, with 
only 9,482 lots traded. In the 
UK money market, the Bank of 
England provided £320m of late 
assistance. Earlier the Bank 
had provided £373 assistance, 
after forecasting a £850m short- 
age. 

Sterling had a steady day. 
tracking the dollar, and fin- 
ished at DM2.4969 from 
DM2.491. Against the dollar it 
was barely changed at 3L4968 
from $1.4988. 


Three month* 

One year 

Rato 

%PA 

Rato 

%PA 

i 17.5505 

OX 

« 

- 

i 51.4434 

-04 

61X484 

OX 

9-794 

-IX 

8X037. 

-ax 

- 

■ 

- 

■* 

£5668 

-OS 

8J296 

ox 

£4959 

ox 

£4784 

ox 


- 

- 

- 

.1.0318 

-0.7 

1X335 

-0/4 

24232 

-*£B 

aasoao 

-Ol 

61A434 

-04 

51X484 

ox 

£8029 

OX 

£7829 

ax 

, 10.8453 

-03 

10X365 

ox 

280-137 

-45 

- 

- 

206X58 

-3.1 

208-984 

-2-2 

11.6113 

-£D 

11.7303 

-IX 

£1168 

IX 

£0847 

IX 

w 

- 

- 

- 

1X385 

-06 

1X945 

02 

2X803 

-1.1 

2-0884 

-1.1 

- 

■ 

- 

- 

1/4842 

0.7 

1-4806 

a* 

2-0903 

07 

2X683 

ox 

11.5459 

06 

11/4868 

ox 

152.819 

2A 

148X24 

3X 

2X979 

-1.1 

2-6006 

-ax 

' 

' 

- 

- 


plaeai; fiaiwarcf aMaerenatdheetymMMttoaw 
wraps 1085 - mad. Oder md Md+atH In Ml I 
m raundad by ta F.T. 


DOLLAR SPOT FORWARD AGAIN SI THE DOLLAR 


Coring 

mid-point 


Own BkVcflfr Day's odd Ona month Una tno n tt u Om year J.P Morgan 
on dny aprad tow Rata WA Rate %FA Rata %PA Index 


Europe 

Austria 

Belgium 

Denmark 

Rnfaind 

Franca 

Germany 

Greece 


+0.047 295 - 345 11.7576 11.6590 

+0.1465 200 - 600 34.4100 34X600 

+0X295 260 - 305 84481 £4728 

+0.0194 078 - 170 6-4295 54638 

+0.0267 156-18S 5.7330 5X660 

+0X062 879 - 60S 14719 1.6540 

+04 200 - 700 24S.700 24X900 

-0.0039 529 - 546 1.4638 1.4477 

+5X6 740 - 890 1619.75 160345 

+0.1455 200 - 600 34X100 34X600 

+0X083 730 - 740 1X780 1X574 

+0.0368 403 - 423 7X610 7.1794 


Italy 

Luxembourg 


11.747 -14 11.757 -OX 

34X8 -1.4 34.43 -IX 


6X386 -22 6X663 -1.7 

5/JT68 -09 5/4236 -OX 


-IX 5.7338 -IX 
-1.1 1.6705 -06 


NaSonrida BUb Sue 


2482 -IBS 256475 -TOT 
14512 2.1 1/4474 IX 


1813.7 -4.1 162£15 -34 
34X8 -M 34.43 -IX 


1X083 730 - 740 1X780 1X574 1X761 

1.0362 403 - 423 7X610 7.1794 726 

+035 700 - 000 172.000 170150 173X85 

+023 170 - 270 138.450 136X50 137.7 


-1.1 1X76 -05 

-IX 7X825 -IX 
-06 175X5 -7/4 

-42 138X2 -3X 


285.45 -18/3 
1/4393 IX 
1648.15 -£5 
34X8 -Ol 
1X802 -04 
7X733 -04 
18005 -4X 
140X7 -2-7 


4.13 I UOlYmy 


Sweden 

(SKr) 

7.7196 

+0X305 

156-235 

7.7582 

7X632 

7.7431 

-3.7 

7.7824 

-32 

7.B916 

-22 

Svrftzutend 

(SFr) 

1/4187 

+0.0042 

163- t80 

1/4216 

1/4070 

T.4385 

-15 X 

1.417S 

02 

1.4818 

IX 

UK 

to 

1/4888 

-0X02 

965 - 970 

1X015 

1.4937 

1/4955 

1.0 

1/4842 

07 

1.4808 

04 

Ecu 


1.1541 

-0X058 

536 - 643 

1.1634 

1.1500 

1.1523 

IX 

1.1507 

IX 

1.1517 

02 

SOR 

- 

1/42537 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

American 

AigmUna 

(Peso) 

08888 

-0X005 987-989 

0X990 

09987 

- 

- 

- 

- 

- 

- 


SSG& ijssr*^ 

&S»SSS= SS IS i£ps 

naooo-nuts j its zeal zral or 

OMMh— —I X» Mil Mai or 


r.TT i 

ciaoao-cMj 

ESSAOO+~-> 

PanreanU 
titoMnam, 
E9DjB0d» — 

3 



mnw-cNjaa 


i suffer tea 

■ CMtMWX 


tOo Lid 

MnUnaniBS 

1 480 300 +JW| or 

I 4JOO ZOO I 407 1 at 


071HC3 1135 

NUadreUOMW— t 473 SOB 4JB MB 

hatadwrttaa aw*** *m ua us iaa 

■ttraeag wagra- m ta ui k 


Brazf 

PI 

1389X3 

+22X7 952 - 954 

1389X4 1389X2 

. 

- 

- 

- 

- 

- 

Canada 

(C® 

1X862 

-0.0001 858 - 965 

1X880 

1X858 

1X884 

-IX 

1X925 

-IX 

1.4077 

-1.6 

Merioo (Now Peso) 

3X070 

+0017 020-120 

3X120 

3X500 

3X08 

-04 

3X098 

-OX 

3X172 

-OX 

USA 


- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

PadflcMdda 

East/ Africa 










AuatraBa 

(AS) 

1X891 

-00039 986 - 996 

1/1081 

1.3831 

1.4003 

-1.1 

1.405 

-1.7 

1/4156 

-IX 

Hong Kong 

(HfCSJ 

7.7263 

-0.0002 260 • 265 

7.7265 

7.7290 

7.7293 

-OX 

7.7353 

-OX 

7.7801 

-0.4 


ridijifirtiwffwlrrfi 

8SIMrerSMa.BIMuanEKt2PP .tOISMBSTS 

nr* - I *js uezsl -IvMfr 


42 Si mm av 

soum* 


■oiHaa wwcM 

May 5 E 


Mia (Rq) 31X688 

Japan (V) 102X95 

Mataysfe (MS) 2.6836 

NewZeriand (NZS) 1.7309 

PMppinaa (Peso) 27X000 


+00013 650-725 31X725 31X850 31.4338 -2.5 31X688 -£6 


Cahr AMa Ltd 

M ahuraiwn. La«i«i tin* .en-aaamo 

MOL |Z» 2-81 I Ml Ml 

AegSHUXn* 4J5 -I 4DGl MB 

OnuyiOMOb I 3.1* -I Z2<l Mr 


Euna-auaa 

auS-tSS. 


3 40 or 

130 Or 

zra or 

102 V 

mi or 


+0.49 670 - 720 103X80 101X00 


-0.0135 625 - 645 
-0X024 298-319 


2X775 2X823 
1.7319 1.7286 


102X4 IX 102-146 £1 99X3 2X 148.8 

2X655 3-2 2X41 3 A £7036 -IX 

1.7322 -OX 1.7367 -IX 1.7586 -1.6 


CkHtarinwB Bank Unto* 
i Pumw tew, f:*i 7DM. 


UL-J2 WubufU. tarioM Bril JLB. OHO 

ClwMaaum — Ui ui w 

itsunadlYrv 441 - UP 

ITSWIBHMM 441 - UP 


+0X5 500 - 500 27X500 27.0500 


EUDO-CtaJM 173 zai M2 Ml 

E3UHM4UB0 400 UM 401 UU, 

£saon+c9owa 4zs in ui mi 

400 MO 400 MVI 

runomiDi ion i.» ioi wa 

moOMPUB £00 IOO zn Ml 

SI oaooo-*mw0 Z2S MB £27 m 

smuw+- — uo us 203 tor 


TysdaB Bank pic 

2£xTMlOMVfcMkl 


not ary 151795 - 153X81 

kn 2835X0-2841X0 
Karat 0/4443 - 04432 

MM 33371X - 33442X 

felfe 277180 - Z784XG 

UAE. 6.4005 - 5X07B 


102750 - 1O2J0O 
1748X0 • 1750X0 
02989 -02074 
222000 - 223400 
185100 - 188000 
3X716 - 3X735 


Seud Arabia 

(SR) 

3.7504 

+00004 

502 - 905 

3.7506 

3.7502 

3.751 1 

-OX 

£7534 

-OX 

£7849 

~OA 

- 

Singapore 

(SS) 

1X577 

+00012 

572 - 582 

1.5588 

1X545 

1X571 

OX 

1X568 

OX 

1X552 

OX 

- 

S Africa (Com.) 

« 

3X215 

+00177 200-230 

3X388 

3X015 

£538 

-5X 

3X04 

-4.7 

£757 

-£7 

- 

S Africa (Raj 

P) 

47900 

+006 

800- OOO 

4X400 

47450 

4X24 

-ax 

4X84 

-7X 

- 

- 

- 

South Korea 

(Wan) 

806.100 

- 

000 - 200 

806X00 805X00 

809.1 

-4X 

81 £6 

-ax 

891.1 

-3.1 

- 

Tehran 

0») 

26X200 

+0066 

100-300 

26X300 26.4600 

26X855 

-3.0 

20X88 

-ax 

- 

- 

- 

Thritand 

08 

25X200 

+0X1 

100 - 300 

25X300 25.1000 

26X 

-ax 

25.425 

-£3 

2SX45 

~2X 

- 


&nMwi«mizaw cm 

WMOUMIMarira, M2S 2J10 M7S 

MMWMtuEione* uso 2on aaoa 

SOTS 7.404 0932 
wnnamt. — _ tom moo 4oao 
tlMO TESSA 4373 - 4447 


ChfeaiWa Bnk FtaHa SaMion fee 

30htt»«Rm.aaa»G12M. .0*1-4 


lSfeCMi»MI\lsnM«HMTaL 171-231 *094 
EIQjOOO-BO dap naan . ITS MB IK M» 
ciajnwan *»««*- tm ms tm t-un 
caooo-nwr — . u mi - iw« 


180R rata tar Mqr 4. BWdttar tweeds In Ow Dafer Spar HM draw only th» laal Bras deernri ffacm. Foraord new we not dwcOy quoppd to dw martai 
M «a IcopM by arrant mnraatraHa. UK. frriwf 1 ECU wa quoted in US erareney. AP. Morgan nomriri HkBchIMv *• Barearanpa lOWblOO 


jnStytacmlSra. nraaarSl an. ,0*1-24*7070 
ciojoumssobb- — | ito Z7S 173 or 

naooo-foajwa _l 173 un xao or 

cioano-ciOMn — liao aosl MSI or 


IMtadDaokfenaTruitUd 
manat, H«m. bp* oar t*i-w 

CapMf^OnfMJIcwi 

njm* 1 4ts in I *jmI 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 


ERAS EUROPEAN CURRENCY UNIT RATES 


M>y8 


BFr 

DKr 

FF7 

DM 

K 

L 

R 

MCr 

Ea 

Pta 

SKr 

SFr 

£ 

cs 

s 

Y 

Ecu 

Baiglim 

(BFfi 

100 

19J01 

16X5 

4X57 

£002 

4884 

5456 

21X9 

6005 

309X 

2248 

4131 

1X46 

4036 

2X11 

289.1 

2X24 

Demerit 

(DKr) 

52.60 

10 

6.767 

2X55 

1X63 

2484 

2X70 

11.10 

28£3 

2101 

11X2 

£173 

1X24 

£123 

1X31 

157X 

1J328 

ftwneo 

(FR) 

60.06 

11.42 

10 

2X17 

1X03 

2813 

3X77 

12X7 

300X 

230X 

13X0 

2481 

1.189 

£424 

1.748 

179.6 

1X18 

Germany 

(PM) 

20. 6S 

3.014 

£428 

1 

0412 

984X 

1.123 

4X43 

1030 

82X5 

4X27 

0X51 

0401 

0X31 

0X99 

61X8 

0X20 

hniand 

(to 

49X4 

9.405 

8X15 

£425 

1 

2339 

£725 

10X3 

2500 

199X 

11X2 

£063 

0X72 

£016 

1464 

1484 

1X60 

He* 

W 

£135 

0.408 

0X55 

0.104 

0043 

100. 

0118 

0450 

1089 

8X29 

0480 

0088 

0042 

0086 

0082 

0388 

0064 

Netherlands 

(B) 

16.33 

£484 

£051 

0X90 

0387 

8584 

1 

3X86 

91.73 

73X2 

4.119 

0757 

0357 

0740 

0X34 

54X1 

0463 

Norway 

(NKi) 

47.41 

9.013 

7X03 

£303 

0X40 

222Q 

2X87 

10 

237X 

1804 

10X6 

1X58 

0X23 

1X13 

1X80 

141X 

1.196 

Portugal 

(&» 

19X8 

£789 

3X27 

0070 

0400 

8358 

1X90 

4X15 

100 

79X2 

4481 

any; 

0389 

0806 

0X82 

58.75 

0504 

Spain 

(PM) 25.03 

4-759 

4.188 

1X16 

0X01 

1172 

1X56 

6X80 

125X 

100- 

5X28 

1X34 

0487 

1X10 

0.729 

74X7 

0632 

Sweden 

(SIO) 

44.49 

8459 

7.408 

£161 

0X01 

2084 

£428 

9X85 

222.7 

177.7 

10 

1X38 

0888 

1.798 

1X95 

13£1 

1.123 

Switzerland 

(Sft) 24X1 

4X02 

4030 

1.176 

0486 

1134 

1X21 

5.106 

121.1 

96.70 

5440 

1 

0471 

0977 

0705 

7240 

0811 

UK 

« 

51X9 

9.770 

8X56 

2/496 

1X29 

2407 

2X04 

1084 

257X 

205X 

11X5 

£123 

1 

£074, 

1496 

153.7 

TX97 

Canada 

tCS) 

24.78 

4711 

4125 

1X03 

0496 

1161 

1X52 

6XZ7 

12AJ0 

98X9 

5X69 

1X24 

0482 

1 

0721 

7411 

0.626 

IIS 

m 

34X5 

6.531 

5.71 B 

1.888 

0X88 

1609 

1.874 

7X46 

1712 

137X 

7.721 

1419 

0X88 

1X88 

1 

1027 

0887 

Japan 


334.4 

83X7 

55X7 

18X4 

0805 

15860 

18X4 

7053 

1073 

1336 

75.15 

13X1 

8X06 

1349 

9.733 

1000. 

8439 

Ecu 


39X2 

7X33 

6X97 

1X24 

0793 

1856 

£182 

8X58 

198X 

158X 

8X05 

1X37 

0771 

1X99 

1.163 

11 £S 

1 


Infend 0X08828 

Wettw ria n da £19872 

Belglin 402123 

Qaraany 1X4964 

France 053883 

Denmark 7-43879 

Portugal 192X54 

Spate 154.250 


NON ERM MEMBERS 
Greece 264X1 

Italy 1793.1 

UK 078874 


Rate 

against Ecu 

Change 
orr day 

%+/-frtxn 
can. rate 

% spread 
v wotouet 

Otv. 

tad. 

0796646 

+0X00045 

-1.48 

478 

10 

£16685 

+0X0014 

-1X8 

4X3 

- 

SO 7236 

+00077 

-1X2 

447 

9 

1X29Z7 

-0X0039 

-1X4 

4X9 

- 

£81482 

+000428 

1.18 

2X2 

-10 

7.55625 

+000681 

1.61 

1X7 

-11 

197.717 

-1.155 

2X2 

0X7 

-17 

159,194 

+0412 

3X1 

0X0 

-22 

280964 

-0199 

7X5 

-£86 


1887.71 

+6X2 

418 

-0X1 

- 

0772187 

-0003285 

-1X5 

£15 

- 


Uw Ce operaBaoBrefc 

FO On 300. tamndUa. laao 
TESM, I 525 

n**-*r«ad mu 

MBiinrm — ^1480 

kaMri-NWIMBI* 
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e2\ma-E*»M»9 4X0 

EtftjOW-B*XOS 44B 

y+nm-PnmiQ 100 

mm-M iumM i 

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03*6392000 
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Ml SJOll Mb 


J.annry ScfrrodarMKM&CD Ltd .. 

1»OMe*la.tMlMtC3«Ha 071-3*2*000 

SncMMc.- _l 473 M «nl MB 

nOJOOOaMtMM l KH 1731 1081 MB 


1M • M2 0~UA 

m 439 e-Mi 

3.00 404 IMre 

229 un a-Ma 


Wottare Treat Hgto kriaraal Ctafea Ace 

tapPMicuee.rowmmw.1 WE 07322M1«1 

£15jOOO+-_ <73 1M I 4J4l Of 

nj> 00-P4JW— 430 ml 4301 or 
21flO»-C4J«0 423 ml *22 1 or 


zat ire s-m 
TM 328 641* 
IX 220 84401 


czavm*- T<jo 

Z3tM»>-C2492n 1 100 

ei<U«H’4B2a9 223 

£RXM»aa 1 225 

JMW*r«*r«ri** 


uo l 4-ssla-rir 
uo in e-tni 

ZM tJT e-peo 
ml 220IB-MI1 
uan-rizasa 


mea- m o» *« Mre «t u» a m* m* 

•Mu rmw* « M mdrcOM BMfe nrn Mm IK. 
lhtMlirMlM|MM4hrdgMglrariltei4 
MneMhCtwana wnB ma i t ib 
prii omr tm 

MW. WCetnaeq 




; thnah KKear. Frintb Franc; 1 


i Kranar and SnerSafr Khmor par I 


i Franc; Eacudo; Un i 


■ D-MARK PUTUMSOMImQ DM 125,000 par DM 


I VMM) Yen 12X per Yen 100 


EOo cortra* ram ml bf Oi« firDpam CcnvMa C ir iar rJm ara ti iHt c amhu ra Me eegfc 
Panrantaga dnngm are lor Ecu; a poilfhe crang* donoou a Merit aimncy. Drerpance *M 8 m 
nrin Mmn two ramradx 9 m prnantaga dHnonca baoman 9ia acturi martut red 6cu carnal taa 
tor a ammey. and ffn itraTiium prni«»d paxwntaor dnvislkrialiria currancy^a irnrtaK rata bora Rti 
EwaanoairaH. 

(17A/IS) Sertoig and HMan Lfeauapandad hnmBat- /kfraOrwra cam toted by ewRaandrilhri 



Open 

Latest 

Chraapa 

«0h 

Low 

Est Krf 

Open int. 


Open 

Latest 

Change 

Wgfr 

Low 

EM. vo 1 

Open lra- 

Jun 

06042 

0X992 

-0X053 

0.6043 

05977 

62X41 

114.716 

Jun 

0X643 

0X750 

•00009 

0X843 

0X721 

27.422 

82. 102 

Sep 

0X977 

0X990 

-00051 

05891 

0X977 

438 

3X50 

Sep 

0X852 

0X815 

-00088 

0X8S2 

0X800 

384 

3X86 

Dec 

0X990 

0X990 

-00060 

0X990 

05990 

131 

208 

Dec 

0X885 

0X880 

-0X108 

0X886 

0X870 

92 

650 


■ HMLADCUWA SC 87804*170*9 E31X50 (contt par pound) 


■ SWISS nUIIC Mian (WM SFr 125X08 par SR 


I Funms E6£500 per C 


0.7105 

07053 

-00065 

0.7105 

0.7037 

18X83 

40X24 

Jun 

1X010 

1.4974 

■00036 

1X010 

1.4920 

18,106 

48,110 

a 7057 

07075 

-00089 

07075 

07055 

87 

788 

Sep 

1.4820 

1.4944 

*0X050 

1.4960 

1.4920 

240 

1,190 

- 

■ 

- 

- 

- 

- 

- 

Dec 

- 

1.4930 

- 

- 

14900 

9 

37 


Straw 

Price 

May 

- CALLS - 
Jim 

Jui 

May 

— PUTTS “ 
Jun 

Jta 

1425 

7.15 

7.13 

7X2 

- 

0X8 

0X7 

1460 

4X8 

4X7 

5X9 

. 

0X9 

0X1 

1475 

£40 

£93 

3X5 

014 

0X4 

1X8 

1X00 

0.89 

1X3 

2X4 

0X4 

1X8 

£82 

1X25 

0X9 

087 

1X0 

£78 

£48 

£18 

1X80 

- 

0X3 

089 

£15 

5X1 

6X3 


Are you dealing in over $lm? 

Fast, Competitive Quotes 24 Hours 
on 071 815 0400 or fax 071-329 3919 j 


Preofcm ctoy's vet. Crib 13446 Piaa 31X72 . Pier, day 1 * ooen lot, CaBa 458,714 Pin 410283 


INVESTO RS - T RADERS - CORPORATE TREASURERS 
SATQUOTE™ - Your single service for real time quotes. 
Futures * Options * Stocks * Forex * News * Via Satellite 

LONDON +71 339 3377 NEW YORX +212 2896636 FRANKFURT + 496B 440071 


WORLD INTEREST RATES 


in^ INTEREST RATES 


1 * 

rEs 

One 

month 

Three 

mttn 

MoyS 

Over 

night 

Sdgton 

58 

68 

58 

week tajo 

sa 

58 

5% 

Franc* 

5% 

5% 

sra 

raw* ago 

MT 

5 'A 

sa 

Qennraiy 

540 

SX3 

sxo 

we«* ago 

5.65 

£33 

£38 

Nraxf 

fit* 

53 

6 

week ego 

5 7 * 

58 

B 

Itaty 

8*. 

Bi 

78 

week ago 

88 

88 

7% 

NrthMtandi 

£46 

£18 

£13 

w«* ago 

548 

5.1B 

5 33 

Swttrarisnd 

33 

■u 

4 

wee* ago 

3** 

48 

4 

US 

311 

48 

4Yt 

week ago 

ay 


48 

J to* 



2V1 

week ago 

2’fi 

2’A 

2‘M 

■ SUMMIT London 



litvtNRik Fbdnfl 

- 

4'.k 

48 

week ago 

- 

4** 

4'.i 

USDcBar COe 

- 

£90 

4X2 

week ago 

- 

£90 

4.01 

SDR Urdied De 

- 

3:fi 

4 

wee* npo 

- 

37. 

3^ 


i ffJFFET UMlm poima of 10094 


Lomb. 

Inter. 

Ob. 

re» 

Rapa 

rate 

Jut 

Open 

94X3 

Sen price 
95X5 

Change 

+013 

H*h 

95X7 

Low 

94X3 

EeL vol 
47632 

Open frft. 
201266 

740 

4.76 

_ 

Sap 

9£14 

95X5 

+0.13 

95L27 

95.14 

92283 

162942 

740 

4.75 

_ 

Dec 

95X3 

96.15 

+014 

95.17 

95X3 

51732 

177387 

£70 


7.7S 

Mar 

94X6 

95X4 

+011 

95X8 

94X2 

37159 

188630 


LONDON MONEY RATES 

May 5 Over- 7 rim 


Over- 7 days One TNea Sfac 

night nottce month rnonthe months 






tocatart: Surfing B - 5 5>4-5 5A-5 5^p-5lfl6>2-6% 6-5^ 

Strafing CDs - - 5>a - 5& 5^ - " "" “* — 

Treasuy BBs - - <S - 4% 4« - 

Bar* Bata - - 48-44 431- 

Locai Bithortty deps. 4» - 4ft *S - 4S 6, 1 , - 5 5ft-. 

oscount Maricri Deps 6 ? a - 5^ 5,’, - 5^ 


1 0JFFE) Ll 000m points of 100% 


as 

84 

«4 

8 

5.13 

5X2 

4A 6X» 


MU 

6^0 

3.1U 

£00 

a/»r 

£47 


Open 

Sett price 

Chwage 

High 

Low 

Esl vol 



£90 

Jui 

92X5 

92X4 

-0X1 

82X0 

92X0 

5015 

_ 

_ 

6X0 

Sep 

92X4 

92X7 

•0X1 

92.41 

92X0 

2150 

- 

8X0 

8X7 

Dec 

0929 

92X4 

-aoi 

92X6 

92X0 

2638 

- 

8X0 

8X7 

Mar 

91X9 

92X0 

- 

92.05 

91X9 

409 


64 - ^ 5*- 
4S-4% «- 
43-4* 4U- 


ift-sa sa-tfli 


38 DOVER STREET. LONDON WlXSKB 
TEL: 071 629 U33 FAX: 071 496 0023 


5*e - 5i« 

5*8-5^ 54-5,4 


8ixa 408 11321 

(UTg SFrlm points erf 100% 


UK cleartng bank besa toning rata 6 >h par cent from Fatanrey 8. 1994 

Up to 1 1-3 3-6 04 9-12 

montti month month* months month* 


4 8X25 

5% 


Open Sett price 
96.10 96.15 

96.12 96.16 

98X5 96.08 

95.85 95X5 


4.85 BJ2S 
4.36 4X1 


Open Sea price 
94X9 94.45 

94X0 94.56 

94-41 94.45 

94.19 94X5 


*UFF6 tdurai Mdad on m 


Change 
+0X7 
+0X6 
+0.03 
+0.06 
ES (UFFEJ I 


Change 

+0X7 

+0X8 

+0X8 

+0.08 


Low Est vo l Open int 

96.10 5671 23610 

96.11 1800 10934 

96.03 298 4881 

85X5 52 845 

fe of 100% 


. Crats rrf Tax riep. (2100.000) 1>2 4 3\ 3>a 

(tore of Tax dap. tntor CTIXUnato l^2pe. Mparilf «rfhi*a*n tor on» 4|pc. 

Am*, ranter nM of dtacoatt 4/B*85pa BCOO toed n*a QOg. Expat Rrmaa. Mrira up day 4(r« 29, 


FOR TRADERS ON THE MOVE 

Wa tch the maricts move srith the screen tat yonr pocket that receives 
Currency. Futures. Indices and News updates 24 hours a day. For your 7 day 
free trial, cadi Futures Pager Lid on 0714885 MOO now. 

FUTURES PAGER 


1994. Agreed nan tor pratod May 25, 199* to Jun 26, 1994. Schama* H A in aSOpc. Rriararea raw tar 
parted Apr 1. 1994 to Apr 29, 1M*. Sctnreo IV 6 V SXMpc. Finma How ftna CM 5J*pc awn 
Mtofl, 1994 


Low EsL voi Open Int 
94X9 1101 11878 

94X0 488 11949 

94.41 270 7150 

94.19 200 2421 


■ TH W1 Btoamf STBM9G FUTUBES (UFFEJ CSQO.OOO paints ot 100% 


ECU ttafcad Da raid raM I rnttr SI: 3 mrtw 544. 1 
raara an oOptm im tor Siam quowd to toe man* 
ctor it» bank* an 8anm Ihm. Banket Tk*yo. I 
Me nm am Won tor om eomeertc Manor RBm, 


b afec Hto 1 v*re 5K. • U0OR npm 
at tar to ur irito ranc* Wa at iiam ooc 
Bad** red Nuionri tranraora. 

, US I CO* aid SDR LrtiAd Dapcafti I 



Open 

Sett price 

Chstge 

High 

Lew 

Eat vol 

Open fra. 

Jon 

04X8 

94.59 

+0X3 

94X0 

94X5 

9533 

80728 

Sep 

94X4 

94X0 

♦0X7 

94X0 

94X2 

12S71 

89825 

Dec 

9174 

S£78 

+0.06 

93.79 

88.88 

14667 

129932 

M«r 

93.19 

83X2 

+0.07 

93X4 

03.11 

5021 

49307 


Don’t miss the IG Index Seminar 
May 27 on Politics, the Economy, 
Markets and Sport 

Speafcenc Atart dirt Pttricfc MinTord. Dimd Fbflw 
and Chra Cowdrey. CaD 671 KM 7233 Ear bradace. 


Tmtod en MPT. Al open r»«vu ag*. raa tor pravfare any. 


EURO CURRENCY INTEREST RATES 

«*y 6 Short 7 days One Three 


Franc 
Dravsh Kicrw 
Mtot 
Dutch Odder 
French Fnnc 
Portuguese Esc 
Smash Peseta 
Staffing 
Sorts* Franc 
Con. Dodar 
USWtor 
Baton Lra 
Yen 

Auan SSng 
Uvaft Man mtn a 


^-5*2 
6 1 * - 51, 
SJa-St, 
5* - 5,1 
5U-5H 
12b ■ 12* 

«.-7* 
3^ -35, 

5V * 
3SI-3JI 

0-7>2 

ra -ru 

3<2 - 2«j 
• Crilhr Uto 


5.1 - 5,1 

64,-55, W, - «| 


Sti - 54, 54,- 54* 

5 A SA 54,-51* 


5^1 ■ 54* 5^| - 
12 b - 12b 42b - 12b 

B«i ■ 7U 81* - 8 


5A - Sh SA ■ 6A 

4-34, sa - an 

54p - 5b 5% - 54* 


3b 41,-4 

8 - 7b a - 7b 


2>1-2| 1 2b -2b 
3b - 2»2 3b • 2b 


US Mra aid Yrai, othrarc 


5b*5b 
84, -5U 
5b - 5 
SA -5i 

5b-5b 

12b • 11b 

BA '7*1 

5A-5d 

4-3% 

6b -flb 

4& - 4/. 

8 -7b 

2A -2«1 

4-3 

hm ttrys 1 no 


i8ao*miBiaao pnt , i Ait(aflfl8inip(rtitaqfiog% 

Open Latest Change High Low Eat. voi Opan kit. 
95.16 95.15 -0.02 9516 9513 105888 422X55 

94X3 94X2 -0X1 94X4 94X0 138X82 *04X43 

B4X4 94X4 - 94X7 94X1 156,740 360/13 


5fl-M 
Sb- 5U 
Sb-5 
s A -5,1, 
5b -5b 
ioH - 10,1 
8b - 6 
8-Sb 
4 -3b 
7k -7 
5A-S/, 
Bb -7b 

2 b -za 

4b -3b 


4J»TBBA9UBV BMLL WITUHaagMM) Sim per 100% 


Jtwt 

9SX9 

95X9 

-0X1 

95X0 

9SX8 

2X63 

25X92 

Sep 

• 94X9 

95X2 

+0.01 

95X2 

94X9 

858 

10X20 

Dec 

94X9 

94X9 

-002 

94X3 

94X9 

540 

6X99 


■ SHOWY taktofeUWO C»ltU**5 (UFFg ESOO.OOO points ol 100% 

SWte CALLS PUTS 

Price Atn Sep Dec Jun Sep Oac 

*460 0.14 0.16 0.10 niF 0X8 ntw 

OW 0X8 0X8 0X0 0X3 1X3 

9500 0.01 0X3 0.03 0.42 a 73 1X6 

E*. wt total. Cads 10301 Pub 3184. Pmvtoua dor's open H* Ceaa 17Z728 Pub ifiOS20 


T S4- f t^? recast , s . and Market Myths for 1994 

., . c :cr ica-: vjo'icticn v. :!! corMnue. gold i rro;i comncSi'-i's 

L. 


Al Open htaw figs, am tar prarieua day 
■ RfeOfeAHK OPTIOtg QJFFB) DMIlB poWa of 100% 


Strike 

Price 

Am 

- CALLS - 
Sep 

Dee 

Jun 

— PUTS - 
Sep 

Dec 

9600 

0.12 

0X2 

0X3 

0.07 

0X7 

£18 

BBSS 

0X3 

0.16 

0X0 

0X3 

£18 

0X0 

9550 

0X1 

0.07 

£12 

£48 

0X2 

0.47 


BASE LENDING RATES 


■ YHHPI MOUTH P8BOU HIT1IMS (MATF] Barts Interbank offered rate 
Open Sett price Chango High Uw Eat vol 

** *4.42 94.48 +0.08 04.50 01/42 24X61 

S«d 94.65 9473 +0X9 94,75 94X4 25X28 

9470 84,59 14X20 

94X8 04X5 +0X8 94X5 94.44 8X59 

^mreraawinHwiB0P08jjuijix^$i mg< ^efi^ 


Opan kri. 
60X70 
46X07 
37X48 
31X68 


Esl ml tore, ere* lazes Pwi aka pimous car's anon fin., crib 229778 pm* iibsob 
■ IMWO 888188 BRAWC OPTK MaB JLlfTO Sib 1m points of 100% 

Stnte — CALLS puts 

PriW Jun Sep Dec Jin Sep Dec 

9800 0.17 0X6 0X8 0X2 aiO 022 

a8ZS 0X3 q.12 aiB 0.13 0X1 035 

VKQ 0.01 0X5 0X8 0X6 0X9 0X2 

Esl ml tm. (Ms 0 Pub 0. IhenaM dq^s ppm CMB 548 Ads 405* 


Open 

Sett price 

Change 

High 

Low 

95.15 

95.14 

-0X1 

95.16 

96,13 

94.51 

04X2 

+4® 

94X2 

94X0 

94.® 

94X5 

+0X5 

94X2 

04X2 


9383 

+0.06 




Open M. 
5230 
2175 
1417 
866 


Allan 8 Company 525 

ABedTruatBa*. _XX5 

ABBank,.^ 5X5 

•Harry Arsbechtjr 525 

BarturfBanada 5X5 

Ban» Bttna Vbcaya_ 5X5 

Berk of cypns 6X5 

Bgflkofbetand 525 

Sankatlnda — _SX5 

ferkafScoBanO _525 

Boidoys Bank 5^5 

atBkoipyMEasr.... 5X5 
•ami Shffey 8,Co ua 5X5 
CLBankNedotand... 5x5 

CttOfitNA... 5X6 

CVdwdefe Sank — 626 
The QKtaife Bank. SXS 

CouBs&Cc 125 

CretHLycmndb 525 

Cwmsfbpubr Bank —SXS 


OuncraiLawita 5X5 

OmtarBerALkittad— 8X5 
Ftanaal& Gen talk - a 
•Robert Randng & Oo _. 5X5 

Gtabaric 5X5 

•Gtdmeas Mahon 5X5 

Habto Bank AG Zurich. 525 

• i ta mta m Bank.. 5X5 

Hertafata&GratlnvBk.SXS 

•wSamueL _5X5 

CHaare&Ca 5X5 

Hanjpongi Shangttt, &25 

Jdtan Hodge Bank SXS 

•Uopcad Joseph & Gm 5X5 

UCpfeBarfc »SXS 

Motfval BarikUd qxs 

MdtandBank 5X5 

"l*MiiBartdna-___^, b 

NatWcKSrtnater 525 

•RaaBnaBiere SXS 


* Ranbughe Guarartee 
Oapoanon Unfed b no 
tonperauthcriaedas 
a berMng inaauBorL 8 

Royta Bk ol Scottnl _ SXS 
•Smto &W*nsn Sees. 52S 
Standari Chatted— SXS 

TUB SXS 

•Urt»dBkolKuw*_. 525 
Unfey Trust Bank He «. 52S 

Western Trust 5XS 

VlMaawqrixklta* 5X5 

YarioHmBank SXS 


• Members of Srhtaft 
Merchant Banking & 
Securities House* 
toaoeHn 

* (nadmHslratan 


FOREXIA FAX $ £ Dm v 

* 9 “°"™" P™™** EWHAMGE FOmCASnin 

EXCHANGE commentaries, 

CHARTS, FORECAS TS AND R ECOMMENDATIONS 

TOfffiMAra ? 1 ^ >8 ., 8 ?. 16 ■ *W » 8 S«aer Fata.- *44 81945 8459 

POnaoA FAX - by using handset tm your tax macNna dbri +44 51 332 7408 


x $ Currency Fax - FREE 2 week trial 


x.-/io' v frcmCfar? Anar, -sis Ltd 0. ; - Anno 'vVhi'by 

xcx 7 S--va;;ov.' S?r-;-et. Lcnian '.V1« 7HD. UK - Tel C7’-7c4 7'7i 
■ o" criharge ra ;e sp?ffai; S : s hr over 2C-’years Fax ; ‘ 4 . 29 4566 


CNV£ 


21 Hour 

FOREfGiV EXCHANGE 


London 
Dealing Desk 


CURRENCY MANAGWKNT 
CORPORATION 7LC 
WkmitfHw, 
77Lnodao WaS 
LndaaECMSND 
Tot 07141297*5 • ■ 

PiE 071-582 9«7 _ _ 


^ -FOREX -METALS -BONDS -SOFTS 

0&,etfivo ano, y sis ^ or profasstonaf investors 

0962 879764 


'i?nr¥S House. 32 Scuthgatra Street . W-. 
Hants S023 SEH Fax 0122 774C67 


*8 


5 V 



.41 v. 








M\s 

CET i 


FINANCIAL TIMES FRIDAY MAY 6 1994 


vnm 


1 L 


« «t*D »*->* 




s 



u _ 
5 _ _ 


«£ 


m. 


$ 


1 


) 3LB 


1 3* 


i 4* 


1 4* 

. 

1 X* 


: 6* 


1 4.1 


1 4.1 


1 2 A 

m 

1 4w6 

““ 

2* 


22 

. . 

1* 


08 


04 

__ 

1* 


8* 


a* 


Z3 


22 

— 

U 

mm 

03 


a* 


0* 

..... 

0* 


(LB 


as 



2* 

— 


0-9 — MTi6 


— — KKb i*to 

— — KEXSp 1.270 

— — NHKSp 


•* — NTH 


— 704 No'Mv 

H-8 - SSL 

s = s 


“ - ssj 

O z£& 




20 

__ 

3* 

mm 

24 



21 

__ 

8* 

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23 

- 

06 

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1.0 

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21 

. , 

27 


24 



3* 


•70 

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7.45 

-.15 

235 


<.70 

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4*1 

-JM 

290 

-JM 






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4 




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t ii — 

SS3 


US INDICES 


L>:v ? 


Gmni (£9/12^77) 


M 19199*2 1890622 2547040 IB/2 


n omnMBso/MN) 19 hli an to 20*42 2 mqjd 3/2 

MtMgCl/IAQ 9046 SUM W26 J136.10 3/2 

MBWBaiOVnW) <21.73 <26.15 <2732 4BOB8 272 

Traded MMZrUBI) 1084* 110050 TIOBOB 122229 1/2 


ii;: W. 


I 


. __ m z O 

iSPAGt*- 


,« Its*' ^ • 
i« 1 . 

iijt **» ’ ■ ■■■'' 1 


mxctnm) 

Bred 

Boteva CS/12/S3) 

Itetats Mtt»4f1B79 
bwpom*(iws 
pwtobSfvi/Ba 

on 

re* ghi pi/i:wci 


153095 151017 153040 13089 90 

It 157300 1648401727.00 2/5 

M 3521-21 380.38 387959 18/3 

M r * D ‘ x ' tsuarti <— «" 23/3 

tt 197035 188001 219209 1/2 


190019 56 
90490 «i 


41373 204 
1067*2 25M 


ewe aw 
4105*0 aw 
191137 HW 


MW May 

5 4 


ECftoi 1S78| It 2235.12 223023 2BBL17 8/2 

CB5Taa^M831 4820 4302 4316 4HJB 3171 

CBS « SSr Cnd 35 2770 2773 2800 29100 31/1 

Cap. 400/76® 301202 207005 208558 90994 3/2 

mnmi 

<kta5Q4PfUS3 110252 10B40B 108803 121X18 28/2 

napptaN 

MM 0*010/1/85) 298000 306405 2S37*3 330837 VI 

8DMW7) 30121 305 5 8 30874 322&80 1K2 

SSH^anawm 56800 57427 577.42 94101 4/1 


SKentUn 

Mgb Low 


41700 5/* 
20900 31/3 


Hum Bonds 
Traapol 


869775 3714.41 370102 387136 358115 397136 4122 

01/1) (4M) Pl/l/M) p/7/XJ 

9707 9112 9118 105*1 9707 108J7 5409 

01/1) (449 (18/10/93) (1/10/81) 

184203 164144 164706 18B22B 154102 18BL2B 1232 



s - 

.. /. 

IJdfiu." ' ' 

»W 1 ! ■ 


«**«£*! 

l Me 


F6A Got 01/12AQ M 41BZ*t 41844 480*0 4C 

Desaxork 

Ctpfrtng*tSgyi/83) 37704 37119 38305 4029 2 R 

MXdMaipVI»G| 18077 18213 18305 18B280 4/2 

S8F 260 (31/10901 143825 143103 145298 189520 212 

DC 40(31/12/07) 218202 21*1-57 217808 ZBU3 20 

Bw wian y 

raz/Wm(3U126B 04183 85405 85220 16132 26 

Canmeabanfcp/12/53) 24318 24559 24472 2*6550 35 

mwianaem 235*4 aiaae 223220 22 kob » 

&BB6S 

MmSEpinaaq 987.17 990.11 987.14 119450 ItfT 

Hoag Kang 

Hang Seng(31/7E4) 841288 838144 807113 1220109 VI 

Ml 

BSE Sffl4(1 879) 30230 36004 36711 429709 28/2 

JBMQnMiaWOa 46256 48204 46134 Bum Sn 

SCO OwnlVTW 182*38 182138 185323 308116 2QTI 

an 

Brno Conn w (1972) 77404 783.19 70171 61303 27/4 

MBBsuipnOM) 124BO 12640 12B50 «1290 27/4 


233100 4/1 
641590 2/5 


140299 21/4 
208104 310 

771X1 2/3 
222120 20 
202033 2 B 

95409 12/4 

838844 46 


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FINANCIAL TIMES FRIDAY MAY 6 1994 


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084 79 52 480 8* 88* 8* -% 

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050 12 14 18 15* 15* 75* -* 

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12 9*000 

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11* 7b Cyan Bn 
18% l3*taxSm 


MN » 
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1.16108 13 187 
052 89 6 3S5 
048 25 18 374 
17 Z140 
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050 15 81141 
056 00 13 43 
190 39 a S 
1 JOB 103 8 19 
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79 818 
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80* 04% Dayam VU 
1CB 99b DJWL7.7 7 JO 
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8b 0 Da Soto 014 

33* aSbOMFso* 054 
39b31*DMWD 050 
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1* HMWRl 
23* 1B%0aMl 154 
57% 39* DBaNft 050 
12* 8%DrtttM 040 
2b b DrtM 
38 28% Ddkau 154 

101 80IME87AS 756 

102 01* 0atrEd758 758 

30* 28*0*661 258 

26% 22b Qatar Op 088 
20* 17b DW Pnxta x 040 
47% 39* HUM 1.12 

a 24* Ok 052 

15* 6*Ckntap 
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37* 32* DEH 008 
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25* 21* taaldaan 028 

31* Z7 tarty* 056 

68% 54*D0HT 050 

08*58*00-01 250 

41%35*MKkBX 084 

20* 17* Ooma 80LXO48 

103 97 DH. 7575 758 
34* 30b DOE 158 
28* 21*DtfBp7U(l 

13* 10 Praia 082 

24% 20 DOT 058 

51 44* DrMOtaX 070 

TO* 8*0rttara8 056 
11 9*DrttaS6 090 
11* 8* DrttaSCM 073 
76b 7QQuPlxA45 450 
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36a*D(tany 150 
64 SBDrtd 250 

a 48* AM 1.78 
27*00.4.1 295 

27* 25* 0upnaUS 1JB 
29* 27* DuqnAOO 298 
3 Z7DU043 2.10 

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108 93OU07J 75D 

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18 iSDrtrts 020 


9.7 14 5S78 
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2.1 17 2490 

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21 IB 33 
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29 29 195 
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20 a 2837 
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45 24 2573 
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21* aob 
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5 2* Bgckx 
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9* 7* Smrg 6wiy 
86% SB*tamB 

7* 6* Eapr04J5 
29* IB* Qnpkx Dta 
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23% 19* Bagmen 
31* 23*BxpM 
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460378b Bnn 105 
34* Z7*taui 
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51 SOtartlE 
101* aEnctaAJPE 
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050 1J1M 827 SIS* IS 15 
058 16 10 1482 IS* IS* 16* 
1JD 10 11 991 40* 39* 


2b 2* EQKRMJr 
27b 21%BpMB 
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38b 33* Eqrtrtx 


19* 11* OH 
14 10%Bnpn7 
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17* IS* ExsrtOt 
87* 60* BOW 


052 23 3212S8 27* 7t\ 
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1.14 11 IS 158 SB* 30 

1 7 7* rt 

090 42 15 4028 12* 11^ 

073 89 X 12* I2b 

25 ffi 1*b 13 s ! 

190 04 8 15* IS* 

288 47 1412040 81 6B0* 


4% 3* fWkuur 097 
18* 13%*Ttauln 1.12 
18*15*MlrtaK 012 
38* 35*PiMfl(ll 350 
8 7* rixirtrt 040 
21% 10% Fart toe 
7* 6* Fan Drug 040 

S 48b Pad rta Id 194 
4SMPS2875 258 
29* 23 Fad 15B 

8% 6*M6n 048 


88* 75%Faif>Mx 240 

27* 2Q*FadP9d 190 

21* 18*FaMSgx 042 

25* 2D* FadDKXEi 
36% 25 Faro Carp 064 

34* 24* FkCtal 
9% 8* Ftanki 0J8 
33* 23*Fta0«tUX 019 
a3S*IMMlB 190 
38b 29*M8kS 1.18 

a 7*MaWx 072 
8*FnBn9x 051 
37* 32bMBM 032 

98 BaFMOiwax oco 

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m* BB* FtaCJtaepCx 050 
54* 41* MO* 150 
47* «J*«Wx 1.68 
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17 12b FaHa 030 
23* iB*fttPwp aa 
W* 38b FrtUntan 150 
53% 51b FWUJ7 158 
10b 6%FHM 040 


67* -1^ 


W* 38b Frt Un ton 150 
53% 51b FWUJ7 158 
10b 6% FMM 040 
38* 32*FMVkg 1J4 

35* 29b FW* COX ia 

40 31b FkBff 1.40 

2B labnaEn 090 

28* 23* Pknrta 140 

44b 33*F»0S«T 040 

33* ZSbBaftp 158 

20*16*BMrtx 079 

56b 40* Boor 052 
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7* 5*FMC6d 096 
43 41* Foota CU 1J8 
17% l2bFaMG 020 
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10% 9 Farits 040 

45* 32* FaMtl 074 
14* 11*RatM(wx CL2B 
39* 32* FPL 248 

14% 10b Ftmea an 004 
9 BbFRMFTi 060 
51 33* Fluid Ka 032 
42* 34* fttaWiysr 
6* 5F(Ha» 095 
3% 4* FttMB 005 
46* »R8iplUfft 158 
21* IB Fraud! 1JS 
24% 21* FrenKfc 072 
33 23 Man 
78* nFWofii 058 
16* 13* FHArt Ony 058 


50* 52* 8ATX 1873 

44* sonx 

57* S1*flBC0 
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33* a*BTE247S 
19b 16* GTE F MS 
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38* SO* OC Cm 
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57* 3B6Brt)n 


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19 229 19% 19* 

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18 97 40* 40 

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38% 27* MM 
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20*15*BMtaX 092 

31*Z7*taBlHP 212 
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17* ia*6Mme« 028 
18% 14% 6nnr 028 
12* 9*6mtai3pn 015 
40* 19 BTlMDR 

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10 * 10 10 * 
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34* Z7% rtta*l 
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17* I4*tftncktac 
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22* 18% HawxiMR 
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154 02 10 3 25 24* 24* -* 

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150 15 31 4878 4A 45> 2 45* -* 

MO 22 21 999 54* 54 54* 

078 25 78 1917 26% 28* ZB* +* 

044 29 18 804 Z1* 21* Zl* -* 

M4 45 13 108 3 28* 28* -* 

058 12 7 424 18 17* 17* -* 

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094 29 15 164 47* 40* 47* +% 
198 62 12 X 21* 20% ffl% -* 
044 19157 1000 26b 25* 2S* +1* 
066 49 11 2a 14 13b 13% 

10S 24 10431b <31* 431b 

075 28 22 23n 29* 28b 29* +* 

012 03 27 70 47% 47* 47* -* 

ITS 75 nn ffl* 60* 50* 

790 7.1 S 00* 99 39* 

020 14 a 14tt 14* 14* 14* -* 

050 591 SO 15 0 5% 0 

150 09 12 533 32* 32 S* 

1.10108 74 E 10* 10* 10* 

1.10 465 10 40 2% 62% 2% 


36* SZltaurtrtl 

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18* l4HtaBU 
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38* aiMEWVX 
38* 30b feta 
20* 2*fMtataQr 

30* 24bfeknf> 

121* lOZHrcdM 
53* 43*lktata)r 
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4* 2b tart Op 
6* 4*WBHr 
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43* 37* HfcrtrtC 
22 % IB* MM 
74 51* HBonH 
95* 72MtaDU 
7* s*fetantao 
44* 20*tatatap 
16* 10% HounShep 
24% 17*Ktatam 
1* IKOBfeMkl 
34* 27* fendtat Atm 
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2B* 22b Hrttarafii 
28* 18b Horn Mi 
22* 10* Hurt 
15* I2btaatan 
13b Bbtatar 
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13* 10* Hurt 
18* 11* federal Rta 
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056 69 a 16* 18* 18% 
192 14 19 802 53% 53* 53* 
198 75 18 B “J '3 

190 13 a 1841 30* X 30 
1 173 ft * ft 
032 17 M 1(08 Sb 6$ 8b 
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156 01 S 19 20* 20* Z>* 

044 49 10 2S6 10% 10* 10% 

020 15 21 K 13b IS* 13* 

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038 15 16 IS 21% 21* 21* 

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194 52 18 3556 20 18b 18% 

on 15 18 1488 34* 33b 34* 
058 45 13 S2 22\ 22b 2* 
024 05 89 m$ 49 <8* 48b 
19 311 31* 30b 30* 
040 19 & 2a 21 20b 21 

1.12 26 14 152 4S* 44* 44* 

140 14 12 179 41% d*0* 4i 

212 45 54 2S4 46% 45b 45% 

on 01 X 574 8* Bb 6* 

154 82 ZlOO 17* 17* 17* 
232 89 14 lOt 34 S3* 33* 

156 04 18 I7t 30* 30% 30* 

058103 15 78 9* 9* 0* 

008 1.1 18 12 5* 5* 5* 


M2 99 13 1096 14% 14* 14* 
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17 574 33* 32* 33 

006 05 182011$ ft (ft ft 
024 08 a 2877 30* 29% 28% 
M2 49 14 1444 33b 32* 32* 
024 19 15 75 24b 84* 24* 
048 15 X 258 28* 28* 26* 
224 21 21 1138106* 105* IK 
m 27 13 708 44b 48* 44% 
190 M 18 3077 81* 00* SI 
044115 D 144 3% 3* 3% 

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083101 in 6* 6* 8* 
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0*8 18 » 942913* 12 13* • 

057 15 X 324 30 38* 38* 

9 430 2D* 20* 2D* 
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194 1.1 49 113 83* 92* 82* 

012 03*40® 42* 

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005 04 31 2512 13* 13% 13* 

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238 99 Z 28* 26* »b 
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020 07 X 41 28* 28* 26* 
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035 55 11 141 8* 0% G* 

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32* 1B*HtfMB*k 
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39* 33% tone tap 
29 25%m*t42 
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21* 12 *MoiRM 
15* 12*Mbcd 
41% 32b hffW 
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19% ISHRcca 
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25* 21* KNfenrgy 096 
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28* 24*KtartPPrx 220 
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183 Ml 23ft 24ft 
2% 


2 % 


CL72 

132 

om 

400 

am 

144 

058 


15% ft WOMB 

a%*uo« 

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23 $ iftHtstftitao am 

34$ 27$ wan Rea irn 

lftlO$WdB0x 120 

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‘ 17% 


14 1 207 2% 

U 16 135 16% 

65 27 811 38% 

65 14 sea io$ 

25 15 92 25% 

35 11 892 ft 

05 19 2981 u24 23% 

17 18 679 148% 145% 14 

15 23 1546 18 17% 1 

15 16 21 23% 

55 12 512 17% 17$ 17% +lj 

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152 


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$£2%tmiB 

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j muatciUSv 1.78 
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3S 27%tol1coCorp 150 
23% 22% WMXT 050 
24% 1ft todwtinx 118 
2ft 1Z$WKMhx 1.16 

1ft 14%WMdtoldn im 
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53$ 43% HMfllay 148 
20% 16$ WyklUr am 

22$ 18% Wynns 01 144 


am 


0.10 

054 

nr* 

1.44 

1.41 


4*2 

12 3101 12 11% 11$ 

65 3567 1ft 16% 1ft 
17 21 30 27 2ft 26$ 

15121 25 10% IB 19% 

19 10 297 2B% 2ft 28% 

15 1829645 13% 12% 13 

7.1 0 2B 4% 4% 4% 

25 519 Ift 17% 17$ 

13 S 30 Ift 18% 1ft 
IS 40 303 31% 31% 91% +% 
19 18 3889 42% 41% 41% -% 

13 22 2313 1ft 1ft 19% 

11 17 814 57% 58% 57 

17 4 11%dll% IT* 

15 15 1014 15% 15% 11 

18 40 14% 14% 14> 

55 14 533 27% Zft 27 
15 13 201 ft 6 6% 

10 12 8658 2»% 28% 28% 

05 14 IB B% 6% ft 

18 1519 U10 9% 10 *1% 

IT M 202 4ft 45% 45$ •% 

25 «m 12% 12 12 -% 

55 13 337 25% 25 25% 

10 11 100 30 29% 2ft -% 

15147 43 16% 1ft 1ft -% 

14 63 598 29% 29% 29% 

12 m 5745 26% 2ft 26% +% 

17 14 9B 23% 23 23% 

69 44244 17% ift lft -% 
7.7 55 15% 15% 15% 

17 887 4% d4% 4% +% 
19 34 847 51% 5ft 51% -% 

15 20 13 19% 19 19 

11 13 528 21% 21% 21% 


- X - Y - 2 


io*$ 87%Xem 

SOX0H4.12S 
j 40XbnCDrp 
25% 21% YartseEgy 
40 33$VnkH 
1ft 72MB 
24% 20% 2*101 ltd x 
7$ 6%Z»hhc 
19% 12%2toD 
29% 20%Zun tad 
13$ 12% Mb find 
10% 9% Mg Ted 


190 10 
4.12 75 
056 1-2 
1.16 63 
116 14 

1.00 4.4 
052115 
040 10 
058 42 
1 1B 13 
154 89 


43 2447101% 
3 54% 
21 793 © 

12 12 21$ 
10 277 37 

3 995 8$ 
8 3 22% 

99 7% 
16 135 13% 
56 165 21% 
228 12% 
990 ft 


99% 101% +% 
54 54% 4 % 
47% 47% -1% 
21% 21% -% 
36$ 37 

8% 8% 

22$ 22$ 

7 T% 4% 
13% 13% -% 

20 $ 21 % 4 % 

12 % 12 % 

ft ft 4% 


| ta H puna* cr mm bn I 



AMEX COMPOSITE PRICES 


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Sto 

Stock 

Dto. E 100s 

AduMagn 

458 

64 

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3 

7 

Alpha ted 

11 

10 

Am te Pa 

1.04 13 

2 

AmMateeA 164943x100 

Amdahl 

105 2 

956 

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4 

745 

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MM 

ASRbm 

172 1 

262 

Asbwwa 

25 

Id 

Start 

6 

369 

ASasCMS 

0 

20 

Aodtare A 

13 

438 

BW Ocean 155 0 

2 

BaanartWr 

0X816 

3 

BaktwnTA 

004 32 

24 

BaryflG 

18 

154 

BAT tad 

128 12 

314 

Basra! 

6 

6 

SMoMan 

140158 

31 

BHWMA 

51 

140 

Btaunt A 

ISO 39 

124 

BowVaBfly 

337 

3 

BtfMTOI 

34 

12 

Bawma 

am 11 

17 

BreocanAxlX* 13 

BB 

CMprop 

1 

20 

Camlnc: 

02013 

6 

Can Man 

omsixioo 

ChrobrsA 

101 7 

196 


Mgh UwCfeaaCtay 

14 13% 13% -% 
1$ 1% 1$ -% 
3% ft 3% -% 
46 48 46 -% 

18$ 18$ 18$ 

" 7 7% 

T% 1% 


Mas 

QwapMi 

CMOS 

Prtfti 

CrarifdA 


7 18 

49 219 
209 268 
091 28 685 IT 
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5% 5% 5% 



Fab tads 054 12 10 34% 34% 34% 

FtnaA 3m 16 4 U 72 72 72 

FMgfiae 020 13 5 >0% 1ft 10% 

HntoUx 052 70 24iC8% 28% m% 

1 ,0 S ISIS'S 

RBjuency * u sis Jf* J({ 


ten 

GURU 

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BokBWd 

Gmonnan 

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KmDr 

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180 8 8 27% 27 27 

072 141160 21%<£1% 21* 

OTO 33 462 15% IS' 


3 156 


30 166 IdA 
03( 20 78 3% 3it 3% 

» 835 6% 6% 6% 
028 152763 34% 33$ 34% 


rumen 

Mount 

run 


( CHCnt p 

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M. Coras 


?I Sb 

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4 39 
3 313 
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18 37 12% 12 12 

1 938 5% 5% 5% 

112 28 2 ift 1ft 1ft 

42080 U5% 5% “ 

89 257 17$ 17% 17 
106 196130 20% 18$ IS 


3 485 ft Oft ft 
19 29 13% 13 13% 
22 14 4% 4% 4% 
24 313 "" " "" 

63 233 


4% 4% 

21$ 21 21% 
7$ 7% 7% 


Mr 

Jan W 

Katana 

NnerhCp 

KftyBp 

KogrEq 

image 
loser tad 
iMpTann 
Luna Inc 
LyncbCp 


Manarn 2 10 

MadaA 144 23 29 

Mora CD 120 4 5 

HHL5 56 

Mono A 14 m _ 

tCfiExpi 16 644 i4; 

NtoPntf E 380 3A 3% 3% -% 

IffTfllA 056364 2144 25% 2ft ZS* 2 *% 

WiCnH 120 11 17 ft 9% ft 

ten f 122 16 6% «% 6% +% 

Mffl 12 10 8% ft ft 

OdettcsA 34 135 nfl% dft 9% 

OkU 124152 410 32% 31% 32 

FooasusG 140 88 414 lft 15$ 15$ -% 



PM HUP 
PM ID 
FWmy A 
RyGem 
PMC 

PiesUtaA 

FtoganBrad 

HSEWCp 

teddEnr 

SJWCOpx 

S8MUDM1 

SlsdB 

Hind • 

Tab Prods 

TMSDMa 

Therandn 

Tterootra 

TMPHA 

TownCnlry 

Trtua 

Titos Me* 

TwxBrA 

TumrfltB 

IMFbodsA 

UBffdnfcS 

UnhPna 

USCMhd 

VtscomA 

vtcm 


P 1 Sto 

Ml E 100s Mgb LnrCftnCtng 

180 H 45 12% 12% 12% 

154 50 113 Z7% 26$ 26$ 
im 181152 69% 87% 67% -3% 
150 10 12 1136% 36 38% -ft 

112 27 62 21% 21% 21% ft 
190 16 290 IS 14% 14% -% 
aio i 47 i% ift i% +£ 

29 20% 20 


31 2 

3 311 

0 0 


«R£T 

Wtan&en 

Xytaabt 


Hi 

2 TO 10 4 37%d37*2 37% 

17 38 18$ 1ft 1ft 

10* 15 180 13$ 13% 13% 

21 67 3}4 3% 3% 

020 56 2 10% 10% 1ft -% 

056 55 545 37% 36$ 36$ -% 

69 32Bu15% 14% 15% ft 
33 53 31% 31 31% 

120 23 577 17% 16% 16% -% 

0 33 2.1 2% 2% 

9 259 1% 01% 1A 
17 X100 4H 4H *H 

107 70 33 19% 19 19 

007 SC 283 19% 19% 19% 

4 5 1% lij 

120 87 20 1% 14 

17 17 6% 5? 

» 232 28% 25^ 

21 784 28% 28^ 

4028 27% 

24 588 10 

160 24 313 28% 

1.12 IB 51 12$ 12 . 

160 10 » £2% 22% 

4 70 4 3$ 


8 


-A 

-% 


8% ft 

20% ft 



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y -*s 'T 


39 


NASDAQ NATIONAL MARKET 


4 pm dose Mar 5 


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Addon Cp 
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AlanPti 

AfldCapA 

Add Cap 

AtaolteC 

AKaBoM 

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p/ a 

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am SO 80 14% 14 14% ft 

112 89 BZ7 21% 20% 21% +1% 
18 5899 14% 13% 14% ft 
21 468 25% 54% 24% -% 
29 79 20% U2D 20% 

15 1644 1ft ift 16% 

36 2728 143% 41 43 
14 348 15% 15 15% 

116 21 B5 36 35% 36 
AOtoeSp 120 21 3713 27% 26*4 26% -$ 
Adwncac 9 454 13 12% 12$ ft 

B M 5% 5% 5% 

7 282 5$ 5% Sli +J, 
27 574 15% 15% 1ft ft 

am 19 14Q2tQ9% 38 38% 

10 683 14% 19% 14 

20 906 13 12% 12% 

110120 804 11 10% 10)2 

am 14 514 21% 20$ 21% 

280 211322 60 5ft 5B% 

41 308 2ft 29% 29% 
am 131400 25 24 % 25 

17 861 u0% B)| 

152 13 7100 u34 34 

8 20071112% 

im 12 S3 14% 

am 12 221 14% 

132 45 14 * 

am 5 285 1% 

36 41Z7 37 35$ 3ft 

Am Banker 068 81689 22% 21$ 22% 

Am Cly Bu 13 53S 15 14% 14% 

AalAnao 2D 4« 20$ 20 20$ 

Am Mad B 13 505 9% ft 9% 

AmSoOwa 132195 664 5$ ft 5$ 

AmlMxiys 31 49 lft 1ft lft 

AmGrtA 150 16 3154 28% 28 28% 

AmflDP 2 721 lJi 1ft 1ft 

And4ta 220 7 40 49*2 48 48$ 

AmPraConv 42 3068 23% 22% 22% 

AmTiw 10 81 12% 12% 12% 

Amgen tac 16 4875 44 43% 43ft 

Airmen Cp D06 28 2253 Zft lft Zft 

AmvFfei 4 55 lft 10 lft 

Analogic 14 102 16 15% 15% 

Analyse x 148 14 21 17% 16% 1ft -% 

AimgelAro 1X0 14 121 17% 17% 17% +% 

Andrew Cp 21 1288 30 37% 37% -1% 

Andros An 10 242 1ft lft 19% +% 

Apogee En *030 24 260 12011% 11$ -% 

APP BIO 104293 U7% 7% 7% +% 

AppidMat 29 7541 44% 42% 43% +1% 
AppleC 148 2S2B10Z 33% 32% 32$ -% 
AppMnes HIM 4310(80 17%dlft 16H 
Arte Dr 1» 39 44 17% 17% 17% 

AroTOo 128 20 280 27% m% 26% 

Atgorautx 1.15 8 71 28*2 28 28% 

AranrAI 184 20 50 20% 19% 20 

Arnold In 140 17 1822 19% 19% 19% 

ASX ftp 21009 9% 9% 9% 

AspectTU 27 435 3ft 30 30% 
AseocComm 330 1406 23% 22% 23% 

12 X15 19 1ft 18% 

22 38 8ft ft ft 

132 21 4450 29% 2B% 28% -% 

148 21 3800 55 52 54% +2% 

11 38 3% 3% 3% *% 

192 15 5440 7% 7% 7% 


+2 

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14 14 -% 

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AUdrsan 
AH SEAT 
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AidnHD 
Awndala 


■A 

•% 

-% 

ft 

-% 

ft 

-% 

ft 

ft 


- B - 

BEI B 108 102100 6% 6% 8% 
Babbages 7 226 9% 9% ft -% 
BskErtJWt 7 % % % 

Baker J 0X8 13 113 21% 21% 21% 

BktraiLB 020 3 512 14% 14% 14% 

tectac 16 215 22% 22 22% 

BrtfouSi 044 12 1222 19% 19% 19% -% 
BariaenCp 040 10 57 16 18% 19 
BMoxxlh 0X0 11 11 1ft 19% 1ft ft 
BaritWoroa 020 28 22 33H 33% 33ji 
Baida Gao 052 17 14 38% 35% 36 ft 
BassatF 080 14 21 28% 2ft 26% 

Bay View 060 12 113 21% 21 21% ■*% 

Baytmnks 1.40 13 256 5ft 57% 68% ft 
BMI Rn 1X8 9 191 ?9% 29 29 ft 
BE Aero 201 7252 8% 07% 8% -1)1 

BeaiBCos 028 29 140 lft 13 13 ft 

Benueny >6 268 17 16% 19% 

Baddeywn 044 15 5034 u4t 30% 40% +3$ 
SHARP 112 14 152 10 d9 10 ft 

Okie 95 30 5 4% 4% 

BtgB 11216 941' 12 n% 11% 
BMayW 100 13 160 12% 12 12 ft 

Btogsi 371871 38 35 35% ft 

Dome! 171180 10% 9$ 9$ -% 

Stock Dig 1X4 11 17 31% 30$ 31 ft 
BMCSottw 1715591 57-’a 5ft 5ft -% 
Boatmen S 1X4 106023 31% 31 31ft *& 

BDbEasu 127 19 250 21% 21% 21% ft 
Boole & B 14 372 27% 26% 27% ft 
Barton) 221358 12% 12% 12% ft 
Boston Bk 175 5 256 33*2(01% 32 -% 

Bouton Tc 62 539 13% 13% 13% ft 

tadyWA 168 18 4 46% 48% 46% 

Bronco 020 23 101 10% 10 10 
BrunoS 024 16 921 7% 7% 7% ft 
176 8 69 24% 24% 24% 

148 0 44 3% 3% 3% 
311153 22% 20% 21 -2 

24 137 14% 13% 14 +% 

30 576 9% 8% B, 1 } ■& 

84 145 34% 33% 34 


PI 

Stock to* E 100i Mgk Law Int awp 

DekaliEn 132 21 11 14% 13% 13% ft 

DetaAGa 180 48 2 32% 32% 32% *1 

Dektismpsxa44 n 54 21% Zi% 2i% ft 

Del Coup 252YI7D 777 s 2B% Z5ll 
DeBaQStm 11B 18 8 15% 15 15 ft 


EMmy 
Dap ay 
Damn 
OH Tech 
DUMB 
Dlgl tab 
DtgUcro 
Dig Sand 
DfgSy* 
tkm Cp 
ObdeYm 
DMA Plant 
Mw&i 
Dordite 
DrecoEngy 
DreraBam 
Drey GO 


1X0 

020 


172 


32 131 37% 37% 37% -% 

7 71 28*2 28 28 -% 

2 63 UB 7% 8 4$ 

15 87018% 18% 18% ft 

7 311 15% 15% 15% ft 

12 877 13% 12% 13 +A 

51480 lft ft 10% ft 

B 588 2 111 2ft 

0 359 3% 3% 3% ft 

10 3 34 34 34 

020 25 186 10% 9% 10*4 -ft 

2 2972 4$ 4% 4ft ft 

120 26 4278 28% 25% 26% ft 

0X8 14 84 13% 13% 13% ft 

12 5 9% 8% 8% ft 

13 1367 12% 12% 12% ft 

024 23 882 26*2 2S% 28% ft 
Drag Enron 0X6 46 172 4% 4$ 4% 

DS Bancor 1JB 17 357 u31 29% 30*2 +% 

Durtroox Ofi 12 109 1B% 18% 16% ft 
DunFB Om 24 81133% 32% 32% 

Dynabcb 11 443 IB 17 17% 


EagtoFd 
Easel Cp 
EaalEmim 
HSTel 


BacxSd 


EJactAits 

EmcmAss 


EogylMra 

EnrtrSve 

Enron tac 

EqukyOl 

ErtcsnB 

and 

Evans Stb 

Exabyte 

EUro 

EudeSec 

Expect I 

EzcopAm 


9 105 

2 326 

3 11 
118 27 1406 

71 722 

2 778 
9 834 

175 55 20 

21 SEED 
21 256 
271442 

49 35 

50 ID 

3 445 
110 20 301 


- E - 

5% 
4% 
1 % 


22 

8% 

Il3 

10 

55 

18 

7% 

B% 

14 


1*2 (t1*2 
3% 3% 
4 3% 


-% 


5 5% 

4% 4.46 +.21 

m i% 

21 21 % 

8*2 aft 

2i£ za 

9% 9$ 

55 55 

018 18% 

7 7% 
dB 6% 

14 14 

1*2 
3*2 
4 


ft 

ft 

ft 

ft 

-A 


0571282427 46% 45% 46% 
81 8% 8% 8% 
781078 17 16% 16% 

24 2579 19$ 18% 18$ 

14 7 10% 10% 10*2 

18 739 22% 22% 22% 

110 18 55B 16% 15% 15$ 

22 514 13%(H2 , 2 13% 


ft 

+1 


RfH 

Fumades 
RWiTlxd 
Fifty (BI 
Rggto A 


GTShlpng 

Bodete 

BridaTOT 

Burr Bmn 

Busmessfl 

ButtortHg 


5 91 22% 22 22% 


- c - 

CTac 182 354 25% 25% 25% -% 

tera Mod 10 490 u8$ 8% 8% -ft 

Cad5cbwps 1X1 16 232 287 a 28% 28$ ft 

CadrnusCOmOm 17 1851115% 14% 14% -% 

Com Cp 141 BZ7 8% 7% 8% ft 

Cstoene ZJ5 71782 12% 11% 11% -$ 
Cal Mod 18 166 21% 20 2>£ ft 

Candxfito 2 523 1% 1% 1% ft 

CandebL 2 35 3 % 3% 

Crate 0 17 2 drift 1% 

Canon tac 0X0111 24 80 79% 80 

Canada 0 294 3% 2$ 2$ ft 

Cartel 112 2S 144 46*2 48% 46% 

CtoltonCm 183 22 41 27% 27% Z7% ft 

ade 160 19 riOO 21 21 21 -1 

Casey Sx 008 17 115 11% 11% 11% ft 

ns 5 121 8% 6,'* 6% 

CMUar 8 334 19% 18$ 19% 

Cp 19 40 12% 12 12 ft 

Cantorial 362 7970 IT 10% 10$ 

rar 6 7466 11% 9$ 10% ft 

CoblFU 1.12 11 689 31% 31 31 ft 

OttlSpr 22 7 12%tfll% 11% -1% 

QandDr B 20 4% d4% 4% ft 

Qapter IxOfO 7 771 21 20% 20$ 

OnaSh 109 13 5163 10% 9$ 10 

Orandsgn 42 47 u8% 8& 9% 

OkoUD 15 100 Kfttflft *<*% -1% 
Ctarnto 1 290 % d% % 

Gharapomr 15 3 4% <% 4% 

Qxps&Te 9 688 4$ 4% 4% ft 
CrtronCp 82 5883 65% B3% 64% ft 
Qtm Rn IJB 12 2122 53 51% 52% -*% 

■ Cp 117 30 374 31$ 31 31% ft 

OTuaLgc 392074 37% 36% 35% -% 
OS Tech 158 288 3% 3% 3% 
CecaSyi 1748380 32% 31 31% ft 

CbBancp 1X8 16 20 29 29 29 

CbaiHbr 24 181 7% 7 7ft 

CURS a 44 209 13 12% 12$ ft 

CUhOtn 10 807 8 85% 5$ ft 

CmCtfefi 1X0 16 294 27% 27 

Bn 97 715 S% 4$ 4$ 
CodeAbnn 29 589 11$ 11% 11% ft 
C0(p»Cp 30 618 19% 19 IB 

CogpifB 107 777 12 11$ 11$ ft 

CoharM 18 27S 13% 13 13% 

CMagan 91 707 23% 22% 22% -*2 
CtMGas IJB 13 40 21% 20*2 20$ ft 
QM&pX 160 9 3 24% 24% 24% 

Comarx 024 13 835 18% 18% 18*2 ft 
CracsA 108 IB 1131 18% 17% 18 ft 
CmcslASp 109 38 6581 18% 17% 17% -% 
ComnOBhaOXB 11 618 32% 32 32% 

ComroD OJO 93 10 18% 17% 17% 
CmplAlH 420 17BS 12% 12% 12% ft 
CDaMre 51 34 11% 11 11% ft 

OrastocM 34 530 3A ft ft ft 
ConPapx 128 25 445 39 38% 39 ft 

Cons&D 11 473 8% 7% 7% -% 
Oonstra 1.44 18 51061111% 10% H 
ComtoCei 20 839 15% 14% 15% ft 


- F- 

FalGrp 12 3 5% 5% 5% 

Far Cp 124 14 9 5$ 5% 5 % 

104 53 878 34% 33% 33% 

152144 25% 24% »% 

3 174 3% 2$ 3 

1X8 16 315 i£3 52% 53 

7 243 4% 3$ 4 

034 0 165 9% B% 9% 

381817 27% 25% 25% -1% 
MAIrara im 121652 35% 35% 35% 

FkstAm 184 8 105 31$ 31% 31% 

FdBcOhfo 0X4 11 123 25 24% Z5 

RtOCk 0X0 21 456 25 23*2 24% ft 

FslSsoy 1X4 10 726 26% 28 28 

Fat Tam 1X8 91055 42% 42*4 43% -% 

FdWesta 136 7 110 9 0% 8$ ft 

FUMflc 052 10 274 24% 23% 23% -% 

Fisher 1X6 11 2 45% 45% 45% 

HrobM 43 10 7£ 7* 7 h 

Ftoerv 2S 1470 21% 20 20% 

FkaaM 14 759 S% d5*a 5*a 
FcodLA 1X9 156&56 5$ IS% 5% 
FoodLB 0X98001922 6 5% 8 

Fbraflud 1X0 10 59 31%d30% 30% 
Rndrar 13 153 14% u% 14*2 -% 
FlmaBanc 030 54 93 32% 32% 32,% ft 
Foster A 41 404 3$ 3% 3% ft 

Fite Rn 1X4 11 848 u29% 38% 28% ft 
Fatten 1.12527 14 26% 28% 26% ft 
FSFM 040 8 508 16% 16% 16% ft 
FSHUOI 1.18 10 584 27 26% 27 ft 

FMarHBx 056 22 89 
FUbafti 0X8 14 25 

Finn 024 19 8 

AnmedADR 80 


ft 

-% 

ft 

ft 

ft 


ft 


ft 

ft 

ft 

ft 

ft 


35 34% 34% ft 
UZ7 26 28% ft 
16 15% 15% ft 
6% 5$ 5$ 


- G - 

GIIApp 9 12 5 4% 5 

GSKSecv 107 21 3BZ 15% 14% 14% 

Gantos 0 5 3$ 3$ 3$ 

Garnet Rs 14 X100 4% 4% 4% 

Geld Co 116162 395 6*2 6*4 6*2 

GsdBhd 140 16 174 17% 17 17% 

Gerlyte 17 155 4*2 4% 4% 

GensWte 5 1435 12% 12% 13% 

tem Cp 4X0 40 507 28% Z7% 20% 

Genus he 141 271 4% 4% 4% 

Gercyme 681171 30 29% 29% 

GBnxiGi 140 11 675 19% 18$ 18)2 

Odfingst 112 17 584 ZS 23*2 23% 

EBxxlA 180 18 18 17 17 17 

GUiBiara 12 8 5% 5% 5*2 

Goad Guys 1518470 14% 11% 12 

Gatedd’aro 180 191864 22% 21% 21$ 
Gndmsys 35 4 2% 2% 2% 

Crams 020 72 134 21% 21 21% 

teao AP 124 11 B 18% 17% 18% 

GnMchPh 
Gtosstosb 
G mdWTr 
GT1 Qxp 
GbNYSvg 


1 1543 1i% 1 1 

1 229 3$ 3% 3$ 

725 18 14% 14% 14% 

B 251 II 10% 11 

4 107 8 7% 7% 


•ft 

-% 


ft 

+% 

ft 

ft 

ft 

ft 

-A 

ft 

ft 

ft 

- 2 % 

+% 

ft 

ft 


n 

Ml E 


m Mph uw Lar day 


- K - 

K Surtsa QX8 12 27 23 23% 23% -% 

Karon Cp 044 5 *C3 9% 9 9 

KarofaerC 106 34 477 12% 11$ 12% 

KaydonCp DAO 14 193 23% 23*2 23*2 -% 

MeyOB 5 599 5$ d5* 2 5% ft 

Kelly Sv 184 23 197 27% 27 27% +% 

Kenucky 111 11 5 6% d6 6% ft 

KknbM 0X4 13 183 24 d33 23 -I 

KrocMr 12 2100 6 6 6 

KLAInstr 54 1747 42% 40*2 40% -1% 

Knowledge 5 844 11% 1Q7 fl io$ -% 

WA 1 27 J3 U » ft 

Knmglnc 211 ZS76 24% £3% 23% -1,» # 

KilBckfiS 7 465 12% 12 12 -% 


- L- 

LaOdFtan 0.12 51 472 ft 8% 8% -% 

LaaRsdi 34 6667 31 29% 30% *1% 

Lancaster 160 19 21 M 4ft 43% 45 e-1% 

Lancs hex 096 181660 18%d17% 18% 
Landmktel 43 Z669 u 3S i 4 33% 33*4 -% 
Umopdca 11 191 B% 8% 8% -% 

Lasencpo 63 33 6% 5% 5% ft 

UOtoeS 13 5S0 18% 16% 16% ft 

Lawson Ft Q48 17 37 24 23% 24 

LOOS 342 5461 24% 23% 24 ft 

LDI Cp 116 8 195 5% 5% 5% ft 

Ledran 15 710 12% 11% 12% ft 

Lagen cp 18 2788 30*4 30% 30% +% 

LUyMSc 078 13 221 28%d27*4 2S -% 
LU Tech 020 15 20 17% 15% 17% ft 

LHekne 22 10 4% 4% 4% 

UlytadA am 24 327 26*4 25*2 25$ -% 

UnBr B* 914111% 110 111 ft 

LxicotaT 052 15 97 15% 15 15% ft 

Undsayw 15 9 34% 34 34% -»% 

LhaarTec x 124 39 3503 d 49% 47% 47% ft 
UquStox 040 18 7 37 35% 36% 

Uoron Gp 106 26 4285 23.B3d22$ Z2$ -1% 
LnneStar 23 182 7% 7% 7% ft 

LotusD 51 9134 54*2 61% 63% *1 


LTXCp 

LVW 


035 


2% ?$ 
33 32$ 


33 +n 


Id Cm 
HScars 
UacIM 


0X5 20146SO 23 22$ 23 <-% 

19 1018 23 21% 22+1% 

160 45 61 14$ 14$ I4& -A 

1X8 14 24 33 32% 32% +% 

Magma Pwr 14 4io 31% 31 31% +% 

Magna Grp 178 12 87 18$ 18% 1B% 


Mai Box 
MncamCp 
MadneDr 
UaiKdCp 
Manjussr 
MuntaUa 
MaehSn*A044 11 
MtestBd 0X0 (1 


15 120 9$ ft 9A 

28 344 1ft 10 10 

13 569 5% 4% 5% 

9 237 41% 41% 41% 

0 2 1 $ 1 $ 1 $ 

19 370 9% 8$ 9 

S3 10$ 10$ 10$ 

311 20% =0% 20$ ft 


Master; 9 876 8% 7% 7)2 +£ 

Kaxftn hi 41 904 54% d5% 54% +1% 

Cp 03193 6% ft 6% ft 

McGrath R 144 11 167 15*2 15 15 -$ 

McCorndc 148 175477 22 21% 21% ft 

McCawC 466429 50% 49% 50 

Madlmao D 880 ft n’ t ? t ft 

Made? he 116 19 647 16*2014% 15-1% 

IMttwS 148 14 477 23% 23 23% +% 

Matandna 124 7 129 5*2 5 5% 

Menu Cp 116 46 180 14*2 14 14% -% 

MankG 0X4 22 3230 11% lift 11$ -ft 

MoroanLB 0X8 10 Z20 19$ 19$ 19$ ft 

ManaayG 170 7 1663 28% 28ft 28ft •$ 

1X6 11 616 30$ »$ 30% ft 

Mattel 181205 18% 17$ 18% 

MeteadeA 008 18 19 16% 15% 16 

MUtnal F 120 15 179 10% 10% 10% ft 

MtelMBx28aa05 1551 UB7% 66*2 67% ft 


McroHte 

Manage 

Mcrooom 

Mcrgntx 

Mopois 

MraR 

MU A3 M 


4$ 
26 
5% S% 
6 Bft 
Bft 6% 

94 94$ 


ft 

ft 

ft 

ft 


- H - 

toning A 54 5 6 6 6 

tarievyvl 0X4 8 171 21ft 21% 21% ft 
Harps 1 Gp 120 14 790 15$ d15 15$ ft 
ffflO 5 CO H6 23 2771 29*2 2B3& 28*4 ft 
Haancar 1811064 20% 18% 19% +1% 

HaaOhoa 0X6 IB 765 11% 10% 11 ft 

Heafltidyn 10 681 7% 6$ 7% ft 
FkSdteM 12 310 117$ 7$ 7,« ft 
HechtegvxlIB 27B2MirlG$ 15$ iBA ft 
Hakted B 10% 10% 10% 

HetonTroy 8 2203 14% 13% 14% -% 
Harttox 072 141685 22% 21 21 H ft 

HogaiSys 115 28 28 9$ &% 9$ ft 

HotoKc 40 408 9% 8% 9 

Hama BanI 180 B riOO 21% 21% 21% 
tone IMr 258 9 7% 7% 7% 

Home Ofba 172 25 251 u2l 20 20% 

Hon tads 144 24 289 n34 33 33ft 

HBroback 16 451 15% 14$ 15 

Honahflra 144300 9 3% 3 3 

tore JS x om 21 871 22 21% 21% 

Hudhga 0X0 10 1582 24$ 24 24 

ttnoCa 0X8 0 318 2$ 2% 2% 


tottHTadi 

HjcorBto 


57 1392 35% 34% 35% 
19 234 5% 4$ 5 


♦$ 


ft 

-% 

-% 

■*% 

% 

ft 


DB Conna 
■Stand 


SB 65 
49 2233 
7 150 
32 72 
4 198 


ufl B% 9 
17 16% 16% 
8% 8% B% 
8 5% 5*2 
5 4% 5 


Imparl Be 140 31 112 17% 16% 16% 
tad Bmp 1.16 19 333u38% 38% 38$ 
hdktox 024217 20 15$ 15% 15% ft 

MRea 191453 17 15% 16% ft 

Wnrmtx 2Q45W T7 16% 15% +% 

hglesMd 0X6 17 2*5 12$ 12$ 12$ ft 

nsgrftou 3413633 30% 27$ 28,% -itf 
RgtoSys 27 18S 11% 1* 11% 

tatfteMM 22 54 4$ 4% 4$ ft 

W«x 1X4 1139555 59% 58 59,% ft 

tahdl 12 95 3% 3 3% ft 

132 3530S3 21 20% 20% 

maria 23 73 10$ 10$ 10$ ft 

kdnfcrt 1X4 16 364 13$ 13$ 13$ 

ngpft 31356 9% 9$ 9% ft 

tended 9 034 7% B$ 7% 

madia 250 58 12% 11% 12% ft 

Herata 21 5170 11$ 11% 11$ ft 

NDabyQA 14 5 17% 17% 17% 


CnHDtaa 

W 405 6$ 

9% 

BA 

-A 

ttfee 

0X6 20 

11 3 3 3 

ft 

CdusA 

050 24 163019% 10% 

19 

ft 

H Total 

425 

96 8% 0% 8% 

ft 

dwmb 

tt 835 11% 11$ 11$ 

ft 

nracara 

0X1 182470 28% 27% 2B 

+% 

con&cp 

201466 46*2 44% 44$ 

-$ 

JomgggQp 

I 

43 2A 2A 2ft 

A 

Gap Of A 

43 376 15% 15$ 15% 


tooraodb 

16 

61 17% 17% 17% 


Cracker B 

0X2 30 5528 35% 

25 25$ 

ft 

noTokado 

im 38 X100 »0%?10%210*2 

ft 

Cray Comp 

11341 l)i 

1.6 

iA 

"A 





Crown flee 

41 40 5$ 

sn 

5% 

-$ 






23020 4 

3 $ 

3A 

A 



- J- 







Jll Snack 

17 380 15$ 15% 15$ 







Jason Inc 

026 20 

144 14 13 13 



- D - 




JLGH 

HO 24 

10 27% 27% 27% 

+% 

osc cm 

395063 62% 

50 60$ 

- 1 $ 

1.^ . . . . ni 

JomEwi w 

53 

38 22 % 21% 21% 

-$ 

Dart Dm 

113 20 Z100 83 

63 

83 


Jones tat 

10 

55 13$ 13% 13$ 


DouSwUi 

9 83 2% 

2 

2 

ft 

Jons Med 

110 17 346 12$ 11$ 11$ 

ft 

nmaw 

28 22 8$ 

8$ 

6$ 


JkxtynCp 

im 11 

28 24% 23% 24% 

+1 

□aosrara 

13 526 14 13% 13$ 

ft 

jssnax 

064 14 

79 22% 22$ 22$ 

ft 

DHuMlMp IBS 11 244 25 24% 

a 


JanftUg 

om is 

17 18% 18% 18% 

ft 

Deb Shops xiaO 20 Id uft 

0% 

6% 


Justin 

116 9 456 13d12% 12*2 

ft 


11 100 5$d4$ 

20 159 28% 28 

5 11 5% 

11 375 6% 

3 582 5% 

2714737 108*4 

455308 52% 50% 50$ -1% 
MUandcx 140 11 4894 29$ 3 29/* ft 

Mandate OSD 28 31 32% 31$ 32 

MIorH 1H 19 207 26% 25% 26% +% 
Mfcm 377 22$ 21% 22ft ft 

Itonteeh 14 570 11% 11 11 -% 

MobBeTd 44 2493 18$ 17% 17% ft 

Modem Co *020 17 B 7 7 7 ft 

M 146 21 2048 30 25% 29$ +4$ 

004 128 35% 35*4 35% 

Motex he OM 28 325 37% 35*2 37*8 ft 

Moscom 004 18 268 11$ 10$ 10$ ft 

H9SMeePx036 21 4 28% 28% 28% 

MrCoRae IS Z3S 13% 13% 13> z ft 
MTS Sys 156 11 7100 Z7%dZ7% 27% -1% 
Mimed 13 1722 29% 29 29% +% 

Mycogan 5 272 11% 11% >1% 


MAC Re 116 12 1749 29% 28$ 29$ ft 
Nash Fnch 172 11 76 17 16% IB$ +% 

NU Pizza 13 570 5% 5$ 5% +% 

Naiconrot omea 135 11$ u n ft 

WTOBun 120 23 101 15% 15 15% ft 

Namgstor 10 42 19 18 18$ -1$ 

ICC 146 94 129 54 % 54% 54% -$ 
Heioor 17 745 27% 27 27% +% 

Neto* Gw ZG 1078 18*2 18% 18*4 

totwkS 94 671 7$ 6$ 6$ -$ 

Namgen 25 3 7$ 7$ 7$ 

Mrgna 027 18 243 18$ 17% 17% ft 

towEBus 080 23 299 21% 20% 20% ft 

Htorhnaga 71041 9*2 8$ 9*4 


F> Sto 

Bn* Ih. E tek U to lot Crag 

PurtanB 112 8 317 21% 21% 21$ ft 

Pyramid 12 482 8% 7% 8% +% 

Ehadralxg 12 155 7% 7 7$ 

Oudkottm 162 73 58 18% 17% 18% ft 

Dual Food 120 16 50 23 22% 22% -% 

annum 77 8244 17$ 17 17,% -A 

ttjtCWto 20 81 14$ 14% 14$ 4% 

OVCNetwfc 23 1933 35*2 34% 35*2 ft 


- R- 

13 345 14% 014 14% ft 

61165 6 5$ 6ft 

4 516 5$ 5$ 5$ ft 

25 2271119% 18% 19% ft 

29 B96u32% 30% 31% ft 

17 11 10$ 18% 16% 

3 119 5*4 44. 5% 

412415 3$ (E% 3 

15 19 9*4 0% 8% ft 

124 152395 44$ 44% 44$ ft 

I 326 &A 8$ 6$ ft 

IM 10 5 35 35 35 ft 

im 22 993 69% 68% 68% ft 

112 14 12 7$ 6% 7$ ft 

156 4 368 17$ 16*4 17$ ft 
144 9 1122 47% 46% 47 ft 

020 12 1469 16 15$ 15.i -12 

24 375 20% 19% 19% -% 


dataflow 

Rdys 


Raymond 

Becotm 

R0L80 A 

Hepeaan 

RepWDsK 

Rasrahtad 

Reuters 

Reran toe 

RtowFsl 

HcndwS 

toNgd 

HoctdDk 

tooGewit 


RotocflMed 
Rouse 
Ml Inc 
RSRnv 
RyanFMy 


0X8 70 303 19% 19 19 

052 20 731 18% 17% 17$ 
148 12 43 20$ 20% !D$ 

14 1071 7% 7% 7% 


- s - 

Sateen 1.96 8 1666 54$ 54$ 54$ 
Sanderson xflJO 13 22 17% 17% 1?% 
ScbfcnbgiA xfl30 181175 25% 24% 24% 


ft 

-$ 

ft 

ft 

-% 


ft 

ft 

-1 

ft 

-% 

ft 

-% 


Sd Med L 610491 30 % 28 % 29 % 

50 spam 12 1558 147 a ift 14$ 

SOOs 7 1554 7 % 7 % 7 % 

ScnexCp 152 8 4666 19 $d 18 % 18*2 -hV 
Scare ftd 8 3262 8 % dS 8 $ -A 

SrafcU im 46 16 38 % 37 % 37 $ 

S' Bate 1211505 27 $ 26 $ 26 $ 

SB Cp 112 27 237 22 %d 21 % 21 % 
5 etetoB 136 1 116 l}S 1 % 1 % 

Satecdns 1.12 15 100 26 % 25 % 25 % 

Saraiem 63 414 13% 13 $ 13 $ 

Saauota 31 89 4 $ 4 )i afj 

Sera Tech 14 655 10 % 9 % 9 % 

Semfract 20 56 u 4 % 4 $ 4$ 

Serena* 16 35 18 17 % IB ft 

SMCed 0 X 4 18 4223 24 $ 23 $ 24 $ +$ 

SHLSfsbn 3 699 B$ 6 $ 6.74 -.15 

Shonmod 23 511 14 % 14 % 14 % 

9 owbtzP 9 554 10*2 dio 10 $ 

Stem On 201317 26 % 25 % 26 $ ft 
Sksraluc 2 14 3 A 3 $ 3 A ft 

StgmAI 033 21 2922 47 45 % 46 -1 

SlgmaDes 1 2 B 23 8 % 75 8 % ft 

SUaMc 006 52 105 10 % 10*4 1 ft 

Stocnvto 30 613 ioii 10% io% 

Sknpann 056 25 81 20 % 20 20 % 

Smnnfld 34 207 25 24 % 25 ft 

aappiaBv GS 3609 25*2 25 25 ft 

SonwateP 1 496 5*4 5 5*4 ft 

Software! 81 258 u 15 14 $ 14 $ 

Sauco 050 142201 20 %d 19 % 19 % ft 
SotohU 166 B 1808 18 $ 18 % 18 $ ft 

Sptegri A am 50 515 24 $ 23 % 23 ) j ft 

St JDdefflxOm 112400 27 26*4 27 +% 

StPwficx am 108714 22 % 20 $ 2 % + 1 $ 

SfcyH 2 064 3 % 2 JS 3 -A 

Stapes 42 Ml 28 % 27 % 27*2 ft 

Star tone 1 X 0 11 252 39 % 39 39 ft 

State Sir 058 16114501139 % 38 $ 39 ft 
Sto Micro 121136 18 $ 17 % 10 ft 

SM Regis 066 14 S 21 21 21 -$ 

Steel Tacx 0 X 0 19 305 17 % 17 17 % ft 

SmhiyUSA am 21159 9 $ 9 $ 9 $ 

SWW 150 6 21 $ 21 $ 21 $ ft 

Sbraua 1.10 12 22 21 20 % 20 % 

SmcdDy 25 758 12 $ 11 $ 12 $ ft 
Stryker am 21 3459 27 % 25 % 27 +1 

SdtanD 21 227 14 % 14 14 ft 

5 uatDmoB 180 25 9 22 % 

tomdlBc 0 X 4 14 812 U 22 % 


22 22 
22 22 $ 
23 23% 
8*4 6$ 


ft 

ft 

ft 

-A 


Mrigeftal 38 8345 53$ 50% 50$ -1$ 
Nawprt Cp 104 12 153 u6$ 5% 5*4 -$ 

Noble Dd 205310 6% 8% B& -A 

Nontooa 156 26 9B 58$ 57% 50$ ft 

Miami 134 34 2404 42% 41 % 41 % 

Horaani 12 237 16*4 16 16A ft 

N suite 3 2 4$ 4$ 4$ ft 

NorthnTa 0X8 13 399 41% 40*4 40% ft 

MW Air 6889 u18% 15$ 15$ ft 

Nani 21121229 19$ 18$ 19 ft 

toredus 28 3862 33% 31 31% -1$ 

NSCCorp 9 2 u4% 3% 3% 


- O - 

OCtarieys 2B 667u18% 17% 17% -$ 

Odd Con 153211 20 19% ZD -ft 

tMWwLfl 14 316 M$ 13$ 13$ ft 

Otfebay N 180 8 51 25% 2«% 25$ ft 
(Moca 1.46 B 238 30*2(09% 30% ft 
OU Kent 1.16 10 567 u34 33% 34 ft 

OU NaOB 192 16 93 35% H36 36 -'4 

Onfaancap 1X0 7 257 30% 30 30% 

One Price 15 459 19 1B% 19 ft 

Optical R IB 135 »% 20*4 20% 

OracteS 4431BSC 30% 29$ 29)2 ft 

0rt)5cn» 57 2179 23% 22% 22% -% 

Odniacn 0X9 26 7 9$ 9$ 9$ 

OrcMSUpp 10 233 15% 14% 15% 

QrogonMel 131 10 19 5*4 5 ft ft 

Ostap 4 128 3% 3% 3$ 

OahkBA 041 42 285 13% 13% 13% -% 

Oshkoeft 7x150 11 314 11% 11 11% ft 

OttarTM 1J2 14 45 33% 33 33 


- P-Q - 

1X0 14 311 53% 52% 52% 
PacOitaiop 162 13 329 73%d13$ 13*2 
PTabn 


9 

1X0 23 
SL2D 17 
172 15 


30 30% 
34 34% 
ft ft 
19 19 


ft 
ft 

1X2 15 21 24 23 23$ -$ 

23 870 56$ 54% 55*2 +% 
3513042 31% 28% 30% +1% 
124 461021 39 37% 39+1% 

25 11 10 9*2 10 ft 

050 46 16 10% 10 10% +%■ 

15 14$ 14$ 14$ -»$ 
70 33% 32 32$ 

85 30% 

94 34% 

161125 UB% 

FWMl om 21 34 20*2 
P«W Bane 1X6 1G15DOuS3% 52% 53% 
tocpfesHxam 12 1307 12% 11$ 12% 
PtWU 1.12 18 2100 33% 33% 33*4 

21 727 7% 6*2 7 

26 218 5$ ft ft 

048 4 141 12A 12 12 

m 7BZ 14*4 13$ 13% 

42 3&1 17$ me 16$ -1$ 

148 27 3437 4ft 38 39% 

158 25 2064 36% 35*4 36% 

1 M 15 507 28 26*2 27% 

5 2 8 8 S 

19 486 8$ 6$ 6$ 

UB 3 317 7% 7$ 7% 

65 204 23% 22% 23 

22 7DB9 1ft 14% 15$ 

42 452 5% 6% 5% 

16 174 uft 9 9% 

Prod Ops 024 24 H 26% 26*2 26% 


Pkancra 

Parametro 
Paychex x 
Payto Am 
Purina 
RareiTrty 
PeraiVhy 
Pemsytv. 
Pens* 
Perfect) I 


Pharmacy 

PluanTch 

(laMwB 

ruxanm 

ndmto 


PtaneraGp 


PtaneaSt 

Ponca Fee 

PoweB 

Pres LUe 

Pnsatek 

pwcdo 

PWePU 


-$ 

+% 

-% 

ft 

-1 

+1 

+A 

•it 

*h 

ft 

ft 


ft 

ft 

ft 

-$ 


ft 

ft 

-% 


SumdlTB 411147 24 

SUi Sport 16 348 7 

SuiMte 1 21 6313 23 22$ 22A 

SwfflTra 29 5 28% Z8% 28% 

^basatae 616219 53$ 52% 53 ft 

Symantec 42 2344 1ft 15$ 15% ft 

SynaBoy 138 18 120 10$ 17% 18 ft 

Synercom 68 154 3$ 34 3,’ ( -A 

Synergen 3M1B 10$ 0*2 10, 1 * ft 

Syndic 45 40 11$ 11 11 

Synoptics 196738 21% 20% 21 ft 

SystmSolt H2 18 491 lft lft 16$ ft 

Systems™ 32 389 20 19$ 19% 

Sysunol 19 835 5$ 5$ 5% 


- T - 

T-CdISc 81201 4% 4$ 4% ft 

T.rowe FT as 18 92 29 26% 29ft 

TBCCp 17 161 13 12$ 12,% -A 

TCACBUe 144 26 563 22$ 21$ 22 ft 

TocbOda 12 2718 19% lft 19$ +1$ 

Tecumaah 0X0 15 21 B 99 57 58% +1% 

Tekdec 2 100 9% 9 9% ft 

TctooSya 7 607 13$ 12$ ift ft 

TeteComnA TO® 5685 21% 20$ 20$ ft 

Tetebtt 16 468 10% 10$ 10% -$ 

Tdtabs 48 3828 67 63% 64$ -2% 

Teton Cp 001 171439 17*4 1B% 17 -$ 

Tatra Tec 69 227 u8% 3$ 8$ -$ 

TavaPnADR 0X7 26 3382 28$ 2ft 2513 -l£ 

Three Com 4114351 60 58 58$ -$ 

IJW 1C 37 430 25*2 24% 25 -% 
Totes Med 2 356 3$ 3$ 3$ -$ 

Tokyo Uw 037 37 IT 6T% 61% 61% -1% 

Tam Brown 87 240 12$ 12% 12$ ft 

Topps CO 128350 491 7% 7 7 

TFT Enter 51070B 9$ 8% 9A 

Tiraawld 10 146 limo*4 11 ft 
Tremdck 1X0 11 567 39% 37 39*4 +2% 

tdoae B 451 3 2% 2$ ft 

Trintte 55 621 10$ 10% 10% 

TmatnBkC 1XD 10 169 20 19% 19$ -$ 

Tseng Lita 1X0 141665 8$ 7$ 8A +A 
TjnfdA one 1520c 20 ift 19,*. -A 


- U - 

US Wo 168 1414145 39% 38% 39 ft 

UnSpb 2 3311 5$ 5% 5$ ft 

UCtoeaGE 1X0 13 22 16%d15% 16*2 
USTa 2X0 12 10S4 52% 51% 51% -1 

Unfed Si 140 11 57 14 1ft 13% -% 

Unkug 0X0 20 12 26 3% 26 ft 

ta 1.40 21 278 39% 38% 39$ +$ 

US Barep 0X8 10 207B 2ft 24$ 2ft ft 

l*S Energy 30 MOO 4% 4% 4% >21 
USTDorp 1.12 102324 13$ lft 13$ ft 
Utah Med 13 350 7$ 7$ 7$ 

Uto Teton ID 1C ii45% 44% 45% 

(Mx 15 70 ft 5 5 A -A 


Vafraocri 

- V - 

0X 33 193 15% 15 15 

ft 

VhpdCei 

85 120 33% 33% 33$ 


Vfcrthoe 

191186 IB 17 17$ 

-$ 

War 

41 SOI 27% 26$ 26*2 

ft 

WwpRat 

10 92 16% 15% 16 

ft 

Maariogie 

30 784 23% 23 23$ 

ft 

VLS Tech 

31 2428 14% 13$ 14% 

ft 

VWmB 

0X7 17 814 93% 92$ 93% 

-% 


- w - 

Warner Bi 11Q 21 570 27% 367j 28$ -$ 
n«h 68 125 4$ d3$ 4$ ft 
IfaMUSBiOGB 715470 16% 19 19% ft 
WashFMSLam 8 578 21$ 21 21$ ft 
WaasmiA 022 9 433 24023% 24 ft 

Wausau PM 124 17 557 28 26 28 +1% 

WD-40 2X0 16 45 43 42 42 -1 

Wdttk 361196 6$ 6$ 6$ ft 

WestOna 172 11 1282 28$ 27$ 28*2 ft 
WaPab 8 255 12$ 12% 12}J ft 

SA 1 419 16% lft 1B$ 
WdSaaiA 16 2 3% 3$ ft 

Wtaltt 0X6 22 2498 45 43% 44% 
WnMaww 61 413 36 35 35% ft 
WntahanL 020 12 230 I4%tfi4% i«% 

Id 136 25 574 19% 19 19% +% 

WPPGnwp 0X321 203 ft 3$ 3$ -$ 
Wytnra-GdflO.40 4 271 6$ 5% Bft 


- X - Y-Z - 

Mkn 34 J7S7 54 52% 5ft ft 

XoniQHP 2 949 4% 3$ 3$ ft 

VbImx 0X4 281207 19$ 18$ 19$ ft 
Yon. Rscti 611211 6$ 5ft 5% ft 
ZhndJtdi 112 9 27 36% 39 39*4 ft 


»r= 






40 


WORLD STOCK MARKETS 


FINANCIAL TIMES 


AMERICA 


EUROPE 


US stocks 
wary ahead of 
economic data 


Madrid rebounds after Gonzalez performance 


Wall Street 


US stocks improved yesterday 
morning, though many inves- 
tors were staying on the side- 
lines ahead of today's impor- 
tant economic data, writes 
Frank McGvrty in New York. 

By 1 pm, the Dow Jones 
Industrial Average was 8.93 
better at 3,706.68, while the 
more broadly based Standard 
& Poor's 500 inched 0.49 ahead 
to 452JU in uninspired trading. 

In the secondary markets, 
the American SE composite 
readied 1-35 to 442.44, but the 
Nasdaq composite added 1.67 at 
741.97. 

With the Labor Department 
due to release its report on 


NYSE volume 

Daily (mil Hon) 

400 



April 1804 


Mw 


April employment trends this 
morning, investors were gener- 
ally unwilling to makp fresh 
commitments. The data will 
give them the first comprehen- 
sive reading of the economy’s 
strength in the second quarter, 
and could suggest the timing 
and aggressiveness of the Fed- 
eral Reserve's next move to lift 
interest rates. 

Economists were expecting 
an Increase in non-farm pay- 
rolls of about 170,000, after 
March's surge of 456,000, the 
largest monthly gain since 
October 1987. The announce- 
ment of a Slig h t rise in claims 
for unemployment benefit last 
week gave reason to be opti- 
mistic that inflationary bottle- 


necks were not developing in 
the labour market 

Bonds were little changed 
during the morning, but equity 
investors in recent sessions 
bad tended to downplay move- 
ments in the Treasury market 
A modest rally by the dollar 
against the yen and D-Mark 
was generally ignored. 

With US chain stores report- 
ing their April sales, retailers 
were relatively active. Ana- 
lysts said the results, although 
mixed, were not a source of 
concern because the Easter 
Shopping period had fallen in 
March this year. 

Sears Roebuck gained $1 at 
$48% on a 12^3 per emit sales 
Jump for stores opened at least 
a year. Gap Stores, with no 
change in same-store sales, 
shed $% to $47%. 

FPL Group, the holding com- 
pany for Florida Power & 
Light, dropped $2 to $31% when 
Merrill Lynch lowered Us rat- 
ings on the stock. 

Among energy issues, British 
Petroleum ADRs jumped $2% 
to $71% after posting strong 
first-quarter results. Chevron 
added $1 at $37%. Texaco was 
up $1 at $64%. 

In financial services, Salo- 
mon climbed $2 to $91% after 
its board waived a restriction 
preventing Berkshire Hatha- 
way, controlled by Mr Warren 
Buffett, from raising its stake 
in the company to more than 
20 per cent before October. 

Canada 

Toronto stocks drifted lower at 
midday as investors awaited 
details of the Ontario budget, 
due later in the session. 

The TSE-300 composite Index 
was off 8.72 at 4^60.41 in vol- 
ume of 39.5m shares. 

The precious metals index 
was down 1 per cent at mid- 
day, pressured by lower gold 
prices. Lac Minerals dipped 
C$% to C$ll%. 

PanCanadlan Petroleum was 
down C$1 at C$43% after 
reporting slightly lower first 
quarter earnings on Wednes- 
day. 


Bourses recovered some 
ground in the afternoon, with 
political uncertainties offering 
a variety of effects, writes Our 
Markets Staff. 

MADRID got another pound 
of flesh as Mr Carlos Sdchaga, 
effectively the S panish Social- 
ist party’s chief whip, added 
his resignation to those of two 
oth er govennent ministers; but 
It enjoyed an unflappable per- 
formance from the prime min- 
ister, Mr Felipe Gonzalez, who 
refused to resign and pointed 
to support from the Catalan 
nationists. The currency, band 
and equity markets went up in 

Mr Salvador Martinez, of the 
international s a l es desk at Ase- 
sores Bursa tiles in Madrid, 
observed that e quititi es, down 
6 per cent since the latest boot 
of political scandals began, 
would probably have risen if 
Mr Gonzalez had. resigned, or 
called new elections. As it was, 
the market got an interim con- 
clusion and, after hitting a low 
of 307.57, the general index 
responded with a rise of 468, 
or L5 per cent to 31825. 

AMSTERDAM was easier, 
Binirwig h a sharp fall in PhDr 

ASIA PACIFIC 


ips, on profit-taking following 
strong results earlier in the 
week, was set against a good 
gain in Royal Dutch. The AES 
index slipped L01 to 410.73. 

The market remained 
slightly uneasy following this 
week’s general election. This 
resulted in a loss of power for 
the Christian Democrat/Labour 
party coalition, and necessi- 
tated the search for what is 
expected to be a three-way 
combine. 

Nat West Markets said that 
anew administration could be 
formed from the Labour party, 
the Christian Democrats and 
D68, a left-of-centre grouping, 
under the premiership of Mr 
Wlm Kok, of Labour. This solu- 
tion would be satisfactory for 
the Dutch financial markets, 
NatWest added, since there 
was likely to be a continuation 
of "the reasonably tough mone- 
tary and fiscal stance of the 
previous Lubbers government, 
with no threat to the strong 
guilder.” 

Philips foil FI 3.10 to K1 5850. 
while its Polygram subsidiary 
added FI L90 to FI 75^50. James 
Capel yesterday downgraded 
Polygram to hold, and said 


FT-SE Acrusnes Sn2 


M*y 5 

Hourtr 


Qpan 1030 1150 1250 


THE EUROPEAN SERIES 
13JOO VMM IBM Putt 


1438.08 1437.86 T438S1 144247 144839 144841 544037 1448.10 
1487% 1458JB S 149428 14CBA8 14«l 1«L» 


Jtt*4 


Maj 3 




Apr 28 


Apr zr 


FT-SE BlnWk 100 1447J3B 1 46835 146242 «8&98 

FT4JE Eonmft 200 145886 147107 147809 M84J5 148874 

bm iOM pamnoi «pmr. m - msube aao ■ voao mkv: in - i4SMi m - icua 


that tt preferred Philips an the 
basis that, in the short-term, 
cyclical stocks were likely to 
outperform the market _ 
Royal Dutch improved FI 2.70 
to FI 200.70 helped by a gain in 
crude oil prices. 

p arts took comfort from 
another slight easing by the 
Bank of Fiance in the interven- 
tion rate - the third in as 

many weeks - and the CAC-40 
index gained 2L05 or 1 per cent 
to 2062.62. 

Turnover remained weak, 
estimated at below FFrShru 
One of the day’s features was 
Rhjtae-Poulfinc, off FFHL20 at 
FFrl5L80, but up from a ses- 
sion low of FFrl4A20, following 
a sharp fall In first quarter 
profits. The chemical group's 
remits were in line with most 


analysts’ expectations. 

LVMH featured among the 
day’s risers, the shares advanc- 
ing FFr22 to FFr941, after it 
reported a 28 per cent increase 
in first quarte r turnover. 

FRANKFORT fell an the ses- 
sion, the Dax index losing 13.18 
at 2J235.84 undo: pressure from 
finning band prices and worries 
about the weakness of the US 
dollar. However, the afternoon 
sawa bounce in the bund 
future, <3* id Mr Edgar Benls- 
ffhek, fraad of trading at Bank 
Julius Bhr in Frankfurt, and 
the Ibis-indicated Dax went 
a lon g , reaching a post-bourse 
dose of 2^49.78. 

Turnover eased from DMBbn 
to DM7. Sbn. Lufthansa 
resumed trading after a day’s 
suspension to announce a 


rights issue and the privatisa- 
tion of the government's stake 
in the airirne; the share's out- 
performance over the past 
year, however, was reversed on 
profit-taking for a drop of 
DM13.80, or 6.3 per cent to 
DM206, and only s tightly 
retrieved with a rise to 
DM209.40 after hours. 

ZURICH focused on falls in 
shares influenced by Mr Mar- 
tin Elmer's BZ Bask as Swiss 
equities continued their gen- 
eral downtrend. 

The SMI blue chip Index fall 
to a new dosing low of 2.680R, 
down % L8 but up from an intra- 
day low of 2,667.3. Roche certif- 
icates, an Ebner target this 
year and an oasis of relative 
strength until recently, fell 
another SFx85 to SFtiL6265. 

Meanwhile, the BZ quoted 
investment offshoots, BK 
vision and PharmaVislon, fall 
by SFrlSQ to SFIA900, and by 
SFT60 to SFrL375 respectively. 
There was talk that the BZ 
group's ability to continue buy- 
ing its favoured stocks might 
be compromised by the recent 
ebb in e nthusiasm for interna- 
tional equity investment 

MILAN fell back as the mar- 


ket remained beset by uncer. 
tainty regarding the formation 
of the new administration. The 
Count index lost &15 or X per 
cent to 774JJ4. 

Elat went against the trend, 
adding 1450 to L6.790 on an 
increase In car sales during 
April. 

Fondiaria recaptured 
Wednesday's losses, up L935 to 
XJA505. 

STOCKHOLM was encour- 
aged both by a cut in interest 
rates and good first quarter 
results from Electrolux, whose 
B shares rose SKrG to SKrtffl. 
The Aff&rsv&rlden general 
index closed 10.2 higher at 
L52 3J5. 

ISTANBUL extended its tech- 
nical rebound, rising another 
5.1 per cent for a three-day 
gain of 12 per cent after a fall 
of 37 per cent since mid-April 
The composite index ended 
769.7 higher at 15J0O68. 

WARSAW saw a similar 
bounce, the Wig index rising 
389.1, or 35 per cent to 11,389.4 
after a fall of more than 20 per 
cent last week. 

Written and edfted by Wfflam 
Cochrans end John Wt 


Australia falls to 7-month low on job package worries 


With the exception of Hong 
Kong and Bombay the region’s 
markets were easier, partly 
affected by the overnight fall 
on Wall Street. Tokyo 
remained closed for Golden 
Week - the market reopens 
today - while Seoul and Bang- 
kok were also on holiday. 

AUSTRALIA fell as investors 
worried over what the govern- 
ment mi gh t do to finance its 
A$6.5bn job creation pro- 
gramme. The All Ordinaries 
index declined 30.3 to 1,9884, 
its lowest close since October 
1993. Turnover was A$58Lfim. 

The market has fallm 15.4 
per cent from its all-time high 
of 2^504 set an February 3. 

News Carp, which lifted its 
nine-month net profits by 54 
per cent to A$99L6m, retreated 
29 cents to A$9.22. Brokers 
remarked that the result was 
within expectations and that 
profits had been taken after 
the stock's recently strong per- 
formance. 

Speculation that Leighton 


Holdings could win the bid for 
Sydney's A$800m casino, to be 
announced today, left the 
shares 10 carts up at A$L30. 

The golds index declined 4Q.5 
to 2/lOLO, with Newcrest shed- 
ding 25 cents to AI&35- 

HONG KONG staged a late 
technical rebound to finish 
modestly higher, the Hang 
Seng inriey gaining a net 43.44 
at 8,412.88 after hitting an 
intraday low for the year of 
&3A9J2Q in morning trade. 

Sentiment remained weak, 
with the poor health of Deng 
Xiaoping, the Chinese leader, 
among factors overhanging the 
market Properties, regarded as 
oversold in recent sessions, 
rose 220.05, or 1.8 per cent, to 
14,405.71. 

Among smaller stocks, Sum 
Cheang jumped 26 per cent, or 
HK$1.25 to HK$5.90 on 
rumours, later denied, that its 
application for a Singaporean 
listing was being reconsidered. 

MANILA saw profit-taking 
after Wednesday's 4.3 per cent 


Nintendo shares no fun in 1994 

Emiko Terazono on reaction to the gamemaker’s revised forecasts 


N intendo, the Japanese 
leading video game 
maker, has had a bad 
time on the Tokyo stock mar- 
ket over the past seven 
months. 

Poor sales in Europe, the 
strengthening of the yen, the 
lack of new products and 
increasing competition have 
hurt earnings, forcing the com- 
pany to revise down its initial 
profits estimates for the busi- 
ness year ended last March. 

This year the stock has lost 
9.5 per cent, in sharp contrast 
to the Nikkei 225-share Index 
which. In spite of its recent 
weakness, is still UL3 per cent 
to the good. 

There has been turmoil in 
video game shares since the 
Nintendo sell-off started last 
October, following its down- 
ward earnings revision. The 
revelation that the company 
would be posting its first earn- 
ings decline in a decade with 
pre-tax profits of Yl21bn, 
against earlier expectations of 
YITObn. prompted panic selling 
of the stock and of other game 
makers' shares, including Sega 
Enterprises. 

Nintendo, hovering around 
Y9.400 before the announce- 


Share prices and Index rabased 



raent, plunged to Y7.000 by the 
end of the year, while Sega lost 
23 per cent over the two 
months to December. The 
sharp falls followed a spectacu- 
lar rise on growth expectations 
during the late 1980s. “Nin- 
tendo was overbought and is 
suffering an aftermath,” says 
Mr Jason James, strategist at 
James Capel In Tokyo. 

Many investors, too, had not 
expected the company to be hit 
by the global recession and by 
competition in Europe, where 
it faced increasing competition 


from Sega. Nintendo was also 
slow in responding to con- 
sumer demand in quality 
graphics, ami fall b ehind Sega 
in introducing 16-bit high qual- 
ity video game hardware. 

The unexpected appreciation 
of the yen has also hurt profits, 
since the company exports all 
of its products for the US mar- 
kets from Japan. Company offi- 
cials have hinted that the rise 
in the yen during the first 
quarter of this year may have 
done further damage. 

For the current year, ana- 


lysts are pessimistic. Nintendo 
wants to concentrate its 
resources on joint product 
development of a 64-bit 
machine with Silicon Graphics, 
the US computer company, and 
w01 not join the race with Mat- 
sushita Electric Industrial and 
Sony, the mu m mer electronics 
companies, and Sega all introd- 
ucing new 32-hit products this 
autumn. 

Over the lxmg term Nintendo 
may regain its innovative repu- 
tation due to high-tech 
advances from Silicon. Graph- 
ics. But in the short tom its 
failure to bridge the new prod- 
uct gap between now and next 
year fa expected to undermine 
its status as the industry 
leader. 

For investors, Sega may now 
be the pick of the video games 
industry. To minimise cur- 
rency risks and cut costs, the 
company has shifted 50 per 
cent of its production to 
Taiwan, Hong Kong and China, 
and is able to subsidise its 
earnings with income from Its 
arcade business. “At the 
moment, Sega seems to be 
looking best for Christmas,” 
says Mr Joseph Qsh a , an ana- 
lyst at Baring Securities. 


FT-ACTUAFWES WORLD INDICES 


Jotnay compiled by The Financial Times Ltd, Goldman, Sacha a Co. and NatWeat Securities Ltd. In cor fr mcrion wltti the Institute of Actuaries and the Faculty of Actuaries 

NATIONAL AMD 


REGIONAL MARKETS 

F'uuras in paemhe saa 

sho* number of Bras 

of a oc* 


WEDNESDAY MAY 4 1994 - — 

US Days Pound Local Locn am 

Dollar Change SMrtng Yen DM Currency % chg Div. 

mdw Index index Index Index on day Yield 


US 

Dolar Sterthg 
Index Index 


TUESDAY MAY 3 IBM DOLLAR MOEX 

Pound Local Yeer 

Yen DM Oxnancy 52 week 52 week ago 
index Index Low (approx) 


Australia (69) 16028 

Austria 117) 179.80 

BNgxjm (42). - ,...17443 

Canada 110®„. 129.13 

Denmark (321 253.21 

Finland 122) 150.92 

Franca (96) ... 174.69 

Germany [Sffl 144,79 

Hong Kong (56) .34129 


Wand (14). 

My (60) 

■Uoon (4591 

Matapti (38) . 


— 186.41 
—.91.56 
. -155.75 
-472.77 


Mbmco (IB) ... 1944.86 


Nwwriond (26). 
New Zealand (14)... 


201.04 

65.7? 


Nonray 63)—.. 19454 

Singapore (44) .348.02 

South Africa (59) 261.4? 

Spam (42) * 136.43 

Swmfcn (36) 22091 

Sweertana (48) 157.43 

UiWWI Kingdom (205) 189.46 

LSA <St0) — lit ^6 


-US 

-1.5 

- 1.0 

-0.6 

-la 

- 1.0 

-5L4 

-12 

-oa 

-3.3 

-4.0 

-0.9 

-17 

CL2 

-1.9 

-Q.1 

- 1.1 

- 1.1 

-3* 

-37 

-IX 

-2J 

- 1.8 

-02 


161 SI 
177.06 
173.04 
127.73 

258.40 
14929 
172. BO 
14022 

337.60 

184.40 
90.59 

1JS4JJ7 

487.66 

1923.B1 

198X7 

85X0 

182.24 

344X8 

25858 

mss 

224.45 

15572 

187.41 
182X8 


105.49 
116.16 
113,01 

83,4? 
167.46 
97 JO 

112.BG 

89.54 

220.49 
120/13 

69.17 

10082 

306.43 

125048 

1W.89 

4ZM 

125.55 

22434 

168.89 

58,14 

148.60 

101.71 

123-40 

119.04 


141 .OB 
15556 
151.14 

111.57 
223.96 
130.40 
160.84 

125.10 

294.89 

161.07 

79.13 

134.58 
408.49 

1680.41 

17371 

56.78 

187.82 

30070 

225L67 

«1758 

106.06 

138.02 

163.70 

1S&2Q 


152-37 

155.14 

147.51 

12952 

229,09 

170.02 

155.93 

125:10 

33855 

160.19 

10054 

100.62 

487.42 


171.15 

60.48 

19006 
2« 53 
97037 
141.S9 
258.28 
138.00 
187.41 
18420 


-1.4 

-08 

- 0.1 

-OS 

- 1.0 

ao 

-1.5 

-02 

-35 

-2.1 

-3.0 

0.0 

-15 

03 

- 1.1 

-0.4 

-02 

- 1.0 

-05 

-2.1 

-03 

- 1.6 

-OS 

-02 


080 

IjOO 

3.71 

250 

1.04 

027 

2- 85 

15S 

3.14 

324 

158 

080 

1.40 

o.Ta 

3- 28 
3.93 

1.75 

1.81 

2-29 

421 

1.54 

174 

385 

2-90 


184,16 

182.49 

176.67 

12954 

264.04 

152.43 
179-02 
148.48 
354.64 

192.73 
«57 

157.12 

481.05 

1940.99 

20552 

05.75 

1S052 

352.02 

271.28 

141.70 

229.73 
181.15 

182.44 
18458 


181-34 

17808 

173.64 

127.72 

25051 

14952 

170.95 

mss 

34057 

188:43 

03.74 

154.42 

472.81 

1907.70 

201,51 

64.6Z 

183.15 

34039 

26063 

139.27 

22S.7S 

15808 

189.14 

18t52 


105:13 

11807 

113.14 

mtw 

189.10 

97.62 

114.66 

8302 

227.13 

123.43 

81.08 

100.63 

308.08 

1243C0 

13100 

42.11 

12535 

225,45 

173.74 

60.75 

147.12 

10020 

123.25 

11828 


140.48 

156.17 

151.18 

11150 

225.95 

13045 

1S350 

12536 

30330 

16434 

81.82 

>3446 

411.68 
1001.02 

17548 
6037 
168.17 
301 38 
232.15 
12136 
19069 
13730 

104.68 
16835 


10453 

136.11 

147.60 

13033 

23133 

170.87 

16844 

12506 

361.74 

184.02 

nana 

10082 

40528 

8971.38 

172.97 

60.72 

19051 


272.73 

144.80 

2S0M 

14027 

189.14 

184.09 


189.16 
19541 
17857 
1453T 
275.79 
156.72 
18557 
1 47.07 
50650 
20903 

06-03 

lassn 

621.63 

2647.08 

20743 

77.59 

206,42 

378JE 

28028 

155.7B 

230,02 

17050 

21450 

19504 


130.19 

13943 

141-02 

121.48 

207-50 

05-54 

149.60 

10759 

27142 

15553 

57.68 

12454 

31251 

1431.17 

16340 

46.43 

15061 

238.82 

17503 

11633 

16356 

121.14 

17032 

17095 


134.79 
142.48 
147 JO 
127.19 
22451 
9750 
102-39 
11442 
27SJ33 
163.92 
7tL84 
148.7B 
31007 
146691 
16056 
4643 
16168 

240.73 
18030 
13254 

173.73 
12250 
17848 
181-23 


NQrih America jagg 


188.96 

-1.9 

187.15 

109.17 

146.00 

15855 

-1.1 

251 

17257 

16952 

11053 

147^2 

18089 

17058 


-15 

21254 

13851 

18653 

218.88 

-0.4 

155 

217.74 

21450 

13044 

18853 

214J6 

22050 



16156 

105.32 

14058 

tiana 

-0.3 

1.09 

164.74 

18152 

10051 

14090 

11046 


.155.35 

-1.4 

16358 

106.82 

14287 

129.14 

-0.7 

156 

187.72 

16454 

107^41 

14353 

12959 


.180.83 

-02 

17858 

11853 

15854 

18048 

-05 

259 

18159 

178.18 

116.10 

155.14 

18052 

102.73 

. — 153.90 

-2.1 

15254 

89.43 

13258 

14085 

-15 

250 

15755 

154.55 

10070 

13458 

14254 


— — 2J5.80 

-20 

233.05 

1S221 

203.57 

21557 

-85 

2.77 

24045 

23853 

16359 

205.78 

22018 

29651 




107.48 

143.72 

132.30 

-05 

157 

16072 

18S53 

10006 

14459 

13018 

17251 


-05 

187.88 

10952 

148.47 

144.71 

-06 

256 

171.12 

16019 

10959 

14&44 

14657 

17658 


-15 

188.90 

11051 

147.53 

147.83 

-05 

254 

17042 

168.48 

11042 

14755 

14857 


181 .58 

-1.1 

179.60 

11750 

15858 

178.51 

-07 

256 

183.49 

18055 

11751 

15753 

177.77 

10020 


14158 

15552 

134.79 

14158 

17067 

122-37 

18146 

14254 

16352 

15550 

186.70 


14750 

168.73 

14084 

14854 

17757 

12&11 

18146 

14940 

157.10 

15859 

16747 


unto *4ote nr an «nkn. Metot 


0 169.43 11Q5B 1465Q U856 -US 224 17351 17055 11050 14QQ0 14851 17857 15S.17 19957 


W Cft ara NHHtar SeeoHH UmmcL 18BT 

do*«4flV*4: Juan. 



rise, with Philippine Lang Dis- 
tance Telephone leading the 
sell-off. The composite index 
dipped 84.05 to 2,980.00 in turn- 
over of l.fon pesos. 

PLOT receded 3.5 per cent to 
1,925 pesos, largely on arbi- 
trage related activity, although 
a 13 per cent fall in its first- 
quarter net profits affected sen- 
timent. 

KUALA LUMPUR recorded 
its largest single-day fall since 
April 4, the composite index 
dropping 2L24, or 2 per cent, to 
1,007.01. Volume eased from 
146.8m shares to 13£Lfim. 

Golden Phis, an Investment 
holding group, relinqnished 60 
cents to M&1.40 on profit-tak- 
ing following a sharp rise last 
week on suggestions that it 
might establish a gaming ven- 
ture in China. 

SINGAPORE faU on light 
selling by foreign funds which, 
said brokers, could he switch- 
ing into the cheaper Hong 
Kong stock market The Straits 
Times Industrial index closed 


23£4 lower at 2^77.74. Volume 
stayed thin, at 121 .9m shares. 

DBS T-and eased 2 cents to 
S$4.68, although it denied that 
it was planning a share plac- 
ing. Seapower Asia Invest- 
ment to be taken over by Rich- 
ard Li, son of the Hong Kong 
billio naire Li Kah-shing, fell 31 
cents to SS2.03, with investors 
disappointed by a poor offer 
price, S$L45, and a weak 1994 
outlo ok. 

TAIPEI saw late profit-tak- 
ing and , after a high of 5&&03. 
the weighted index ended just 
9.23 up at 5,916.77. Turnover 
was T$89Rbn (T$8429bn). 

Plastics attracted late buying 
an expectations for the indus- 
try's improving profits. For- 
mosa Chemical Fibres surged 
T$L90 to T$3&40 and China 
Petrochemical moved ahead 60 
cents to T$27.60. 

The textile sector led early 
gains on reports that Hualon 
Corp, a leading textile com- 
pany, had been granted British 
loans for its investment in 


Northern Ireland. A Hualon 
spokesman declined to confirm 
the reports. Hualon ended 40 
cents higher at T$26-80. 

B0MBA7 recovered from the 
day's lows on buying by Indian 
mutual funds and brokers on 
expectations that the carry for- 
ward or badla trading system 
would be reintroduced in the 
near future. The BSE index 
rose 13.76 to 3J&M24. 

There was no immediate con- 
firmation from tire government 
of the rumour. The ban had 
been introduced by the Securi- 
ties and Exchange Board of 
India qq the grounds that the 
local system of forward trading 
bsd been leading to excessive 
speculation. 

WELLINGTON tumbled 2.9 
per emit to a 1994 closing low 
of 2,012.82, with the bearish 
tone set by Telecom, weaker 
In the US overnight and shed- 
ding 28 cents to NZ$4.65. Tele- 
com reports annual results on 
May 13. 

Weakness in Telecom flowed 


through into the other leaders, 
but their falls were not nearly 
as pronounced. Turnover, at 
NZ$60m, was at Its highest 
level so far this week. 

KARACHI dosed bi g hw on 
institutional support which 
erased early losses and took 
the KSE Index up 23.65 to 
2,405.37. COLOMBO put in a 
recovery after a bear run, tira 
all-shar e indwr improving 
26.09 to 1,017.17 after a 12 per 
cent fall in the previous four 
trading days. Turnover rose 
from Rsl42Rm to Rsl91m. 


SOUTH AFRICA 

Investors took profits in sub- 
dued trading as political ner- 
vousness continued to domi- 
nate activity ahead of the 
delayed final election result 
The overall index fell 22 to 
5^31, industrials 26 to 6,349 
and golds 40 to 1,819. Anglos 4 
bucked the trend, adding R1 at 
R220, while De Beers slipped 
RL75 to R105.25. 



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First Quarter 1994 Results 



1994 

firaudted} 

1983 

%ctig. 

Sales (00050(9 

525482 

5^4575 

7.7 

Ndtaraiooojooqr 

$357.7 


182 

EartoosperawB’ 

5059 

5050 

1&0 

Assets (000500) 

$24,085 

$345075 

15 

Access tires m 

13.416 

12551 

as 

CeteafCusanesfOOO) 

23» 

1*513 

465 



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lULLTel; (210)351-2044 or HR. Damon ft Co^Worid Trade Centre, London, England 9AAJ1K.TH: (071)588-2463. 




FINANCIAL TIMES FRIDAY MAY 6 1994 


RECRUITMENT 


I 




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W hy do recruiters 
place so much store 
on psychometric 
testing? It is a question puz- 
zling many would-be barristers 
who, In spite of sometimes daz- 
zling academic records, have 
failed to win a place at the Bar 
law school this year. 

One of the students who 
failed the selection system, 
which included the use of a 
critical reasoning examination 
- a type of ability test - was 
on Tuesday given leave to have 
a judicial review of the deci- 
sion. This will examine the 
revised entry procedure, used 
this year for the first time in 
awarding the 800 places on the 
one-year vocational course that 
is the main requirement for 
entry to the Bar. 

The irony is that the new 
system, devised partly to sift 
out perceived prejudices, par- 
ticularly against women and 
ethnic minority candidates, 
appears to have given minori- 
ties no better chance of 
entry and perhaps less than 
before. 

There may be question 
marks, it seems, over the 
design of the selection system 
which was intended to broaden 
the basis of recruitment to the 
Bar. The motive was laudable. 
But some believe the law 
school should no longer retain 


Jobs: The way that psychometric tests are applied is attracting renewed scrutiny 

Laying down the laws of selection 


its monopoly as the only route 
to the Bar. 

The Council of Legal Educa- 
tion, which runs the course, is 
now looking at the possibilities 
of making changes to the way 
the tests are implemented. It 
may not have been unreason- 
able, however, to Introduce 
additional selection criteria, 
looking beyond the possession 
of university degrees. 

Part of any new test might 
involve knowledge of the real 
world with multiple choice 
questions such as Ts Gazza (a) 
a city in Italy, (b) a place 
where Palesttoians hve, or (c) a 
footballer?" It is only two years 
ago, yon may recall, that the 
High Court judge. Sir Jeremiah 
Harman, asked “Who is 
Gazza? 1 ” daring a court 
bearing. 

Sometimes the way that 
tests ate applied can make lit- 
tle sense. British Rail was last 
year found to have rtiarHrm. 
noted against Asian rail guards 
who wanted to be train drivers. 
They were given verbal tests 
which they failed. When it was 
pointed out that verbal skills 


were ranked higher in the 
requirements for the jobs they 
were already doing than the 
jobs they had applied for. the 
industrial tribunal had no hesi- 
tation over ruling in their 
favour. 

The problem with psycho- 
metric tests, as in many selec- 
tion procedures, is probably 
one of balance in the way they 
are used. Finding that balance, 
given the continuing debate 
about the effectiveness of test- 
ing, is proving difficult and 
causing confusion among man- 
agers Interested In exploring 
such methods. 

Psychometric testing is 
divided into two areas - ability 
tests and personality tests or 
questionnaires. While ability 
tests in themselves appear to 
have widespread support 
among psychologists, there is 
dissenting opinion about the 
use of personality testing to 
measure performance (person- 
ality criteria were not used for 
the bar exam). 

Steve Blinkhom ami Charles 
Johnson, occupational psychol- 
ogist at Psychometric Research 


and Development, a St Alban’s 
consultancy, earned the oppro- 
brium of many of their fellow 
practitioners three years ago 
for casting doubt on the use of 
personality testing to predict 
job performance. They accused 
those who applied some tests 
of using pseudo science which, 
they said, “bamboozles an 
unsophisticated public”. 

It was strong stuff, particu- 
larly since It criticised same of 
the leading tests on the mar- 
ket In the April edition of The 
Psychologist magazine they 
buttressed their arguments 
with further claims that “pro- 
ponents of the use of personal- 
ity tests for occupational selec- 
tion continue to play fast and 
loose with statistical methods, 
and to make claims which do 
not stand up to close 
inspection.” 

Their latest critique in The 
Psychologist concluded: “There 
is no body of public knowledge 
relating scores on personality 
tests taken as part of a selec- 
tion procedure to objective cri- 
teria of later performance suffi- 
cient to form a basis of routine 


use of the tests, despite 40 or 
more years of research. Yet 
their routine use is widespread 
and growing." 

Their argument is contra- 
dicted by leading test publish* 
ers such as SavQle and Hold- 
sworth. Roy Davis, the 
company's head of marketing, 
said the value of personality 
questionnaires as a predictor 
of success in a job was “statis- 
tically proven” but, he added, 
“they must be used with other 
evidence”. 

No wonder some recruiters 
have reservations. Many, how- 
ever, do not. Employers appear 
to be placing mcreasing trust 
on the recruitment skills of 
their personnel departments 
who in turn are often eager to 
embrace the latest testing 
methods. "Going on tests and 
training courses is like getting 
a badge in the boy scouts for 
personnel officers,” said 
Blinkhom. 

He suggests that psychomet- 
ric testing is being comman- 
deered by personnel officers in 
order to better define their pro- 
fessional expertise. If this is 


true there may well be a dan- 
ger of too much weight given 
to testing in selection. It 
chnnTri not become the altar on 
which budding careers are 
sacrificed. 

Whatever the outcome of the 
judicial review in the Bar 
selection case, the argument 
for a more considered 
evaluation of tests seems 
convincing. 

• A report released by KPMG 
Peat Marwick last week 
showed that companies still 
had some way to go to bring 
their recruitment of non-execu- 
tive directors into line with the 
requirements of the Cadbury 
report on corporate 
governance. 

The finding that some 51 per 
cent of appointments were per- 
sonal selections of the chair- 
man might have raised a few 
eyebrows among Cadbury dev- 
otees but would have caused 
little surprise in many board- 
rooms more versed in the real- 
ity of selection. 

That reality was underlined 
by other EPMG finding s which 


showed that 12 per cent of 
appointments were on the 
recommendation of an Invest- 
ment institution. 12 per cent by 
another non-executive director, 
11 per cent sourced indepen- 
dently through a recruitment 
consultant. 13 per cent from a 
nominations committee and 
just six per cent through Pro- 
Ned. the search specialists for 
non-executive directorships. 
The reason the percentages 
add up to more than 100 is that 
some replies gave multiple 
sources. 

The fact that EPMG had 
done no specific analysis of 
women will have dismayed 
those who have been champi- 
oning women as an important 
source of fresh blood for board- 
rooms. 

Other findings of the report 
suggest that, while many com- 
panies may be attracting the 
quality of non-executive that 
they deserve, it might some- 
times fall short of being the 
quality they require. 

Nowhere is this more evident 
than in non-executives' use of 
information sources. When 


they were asked from which 
sources they sought informa- 
tion prior to their appoint- 
ment, many relied heavily on 
information from the company 
itself. Even after their appoint- 
ment few of them did much in 
the way of contacting external 
sources beyond talking to the 
auditors. 

Less than a third of them 
said they consulted the press, 
spoke to brokers, bankers or 
institutional shareholders. 
Less than 10 per cent bothered 
to consult ProNed and hardly 
anyone got in touch with the 
Confederation of British 
Industry. 

The only group of non-execu- 
tives more likely to look out- 
side for information both 
before and after their appoint- 
ment, it said, were those who 
had been recommended by an 
investment institution. 

The report says rather deli- 
cately: "This inward focus 
when seeking information 
prior to the appointment could 
suggest either a high degree of 
existing knowledge, compla- 
cency or lack of faith in exter- 
nal advisers.” It could also 
reinforce the jaundiced belief 
that a non-executive director- 
ship can be money for old 
rope. 

Richard Donkin 


worries 


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SOUTH AFRICA 

3 x : - > - • . 7. 

<'■■■< ■ ■ • ■ 

* : < • ■ . , • - : 


EMERGING MARKETS 



SEARCH & SELECTION 


A recently formed Securities Division of a well (mown Latin American Group, with msponaUUty for trading 
and new issuance of Emerging Markets hutnimanis, wishes to SD the following positions: 


HEAD OF TRADING 


This would suit either a Head or Senior Trader, currently part of an existing team, with 
experience of trading Emerging Markets instruments, or someone who might be trading 
in parallel markers btu have the necessary skills and desire to enter this growth area. 
The successful appointee w HI be involved with proprietary trading; the p ricing of new 
issues, market making and trading in secondary markets, and will build his own 


HEAD OF SALES 


This would suit candidates who have sales and syndication experience, ideally g aired 
within the Emerging Markets. Applicants should have knowledge of these markets and 
proven contacts with securities houses and corporate or private in vest ora. Candidates not 
currently involved with the Emerging Markets, but with strong UK institutional contacts 
and good work experience of Sales and Syndication or candidates with an excellent sales 
backgrou n d and in-depth knowledge of the Emerging Markets ate also encouraged to respond. The 
successful appointee wfH also be responsible for building their own sales umm- 

These positions require applicants with dedication, en t re p reneurial flair and a strong 
desire for success, and who are excited by the opportunity to join a start-up operation. 

An ability to speak Portuguese or Spanish would be advantageous, but not 
mandatory. Our Client is prepared to offer attractive remuneration packages to the 
right people- In the first instance please send your CV in complete coofideaoe to: 


IKiM'd illiiiili'-: hiiui^ii]- U;iiKvK V.urli Si lei lion 
, Vu-niif I uihIhii !•'.(. 2 \ ?lt'l 

\ l>i\ imiid ni ( ;toh;il M.ii'nvK Rmniiimm i.ul 
111 'Cl M'.li -T44 I , 1 N 1)7 1 c,n<) 47 ; 7 





EUROPEAN INVESTMENT BANK 


The EIB, the financial Institution of the European Union, 
is currently seeking for fts headquarters in LUXEMBOURG 
or office in ROME: 


Loan Officers w 



Qualifications: □ good university degree, or equivalent In economics/finance; 

□ several years professional experience, acquired hi a CREDIT DEPARTMENT 
OF A BANK, FINANCIAL INSTITUTION OR RATING AGENCY, in examining and 
carrying through credit operations (preferably long and medium term lending), 
in particular analysis and assessment of company performance and competi- 
tiveness, financial position, prospects and investment decisions; risk assessment 
negotiation and definition of loan conditions and security structure; □ alternatively 
experience in assessing the credit worthiness of banks and financial institutions, 
with good knowledge of the banking industry and its specific risks; □ knowledge 
of quantitative tools and ability to make qualitative judgements on credit risk and 
guarantee; a experience and aptitude in direct contact with clients and negotiation of 
contracts; □ ability to draft dear and concise financial reports and recommendations; 
a sufficiency in computer applications. 

Languages: As the working languages are French and English, excellent 
knowledge of one and a good command of the other is essentbL 
Knowledge of other Community languages would be an advantage. 

The Bank offers attractive terms of employment and salary with a wide range of 
welfare benefits. It is an equal opportunities employer. 

Applicants, who must be nationals of a Member Country of the European Union and 
preferably not over 35 years of age, are invited to send a DETAILED curriculum 
vitae, written hi French or English if possible, together with a photograph, quoting 
the appropriate reference, to: 


EUROPEAN INVESTMENT BANK, 
Recruitment Division (Ref.: PM 9401) 
100 boulevard Konrad Adenauer 
L-2950 LUXEMBOURG. Fair. 4379 3380. 



Applications will be treated in strictest confidence and will not be returned. 




Corporate FinancefM&A Executives 
£35,000 - £45,000 + banking benefits 

Due to overwhelming levels of business a number of 
leading international corporate finance houses need 
talented, committed individuals to further enhance their 
enviable pan-European reputations. 

This is an ideal first career move for people keen to 
demonstrate their commercial awareness in a fast moving 
environment where excellence is rewarded with early 
promotion and responsibility. 

You will be: 

• 24-28 yeara old with stunning academics (2:1 minimum}. 

• An ACA or strategy consultant or MBA graduate from a 
topsdiooL 

• Able to demonstrate an entrepreneurial spirit and an 
assertive personality. 

• Preferably fluent in one other European language. 

Call today to discuss these superb opportunities. 

Risk ManagementJEquity Derivatives 
£24r£40,000 + benefits 

This energetic derivatives group continues to expand to 
meet growing business demands. As a team, thev manage 
risk exposure, create and present solutions to dients and 
provide strategic advice to traders. 

As a potential candidate, you will have a quantitative 
background and be educated to degree level (minimum 2:1 J. 
At least 2 years financial sector experience is essential - 
preferably with exposure to derivative instruments 
including swaps, options and futures. 

You wiO also possess commercial acumen, excellent written 
and Interpersonal skills and be able to demonstrate the 
ability to think laterally in order to add value to this 
innovative team. Prospects are excellent for the right 
candidate. 

Plant ceatact Zac Ide or Richard Pooky an (071) 583 0073 (day) 
or 081-W9 6450 (mnfqgs and weekend*) or write to ns at J6-18 
New Bridge Street, London EC4V fiAU Fax N« 171 3533988. 


BADENOCH 8^ CLARK 

recrui tment specialists 



r 


1 



UK EQUITY 
PORTFOLIO MANAGER 

Scottish Widows Investment Management is Participation in portfolio construction and 
one of the leading investment institutions in the UK management should follow in due course, 

with £22 billion funds under management. We offer This position requires a high and clearly 

a career appointment to an 
accomplished individual capable of 
demonstrating flair, originality of 
thought, and a high ..level of 
commitment to performance. This 
appointment is to the UK Equity 
Desk. 

It requires a minimum of 12 
months’ current experience as an 
Analyst covering the UK Market. 

The appointee will be looking now to 
build and develop his/her career 
interest and skills in stock and sector 

research and selection by making this move to work remuneration) to Raul Adams, Assistant Manager 
with a mainstream fond management group. (Personnel Administration) , 

Scottish Widows Investment Management Limited , 

15 Dalkeith Road, Edinburgh EH16 5BU. 



SCOTTISH WIDOWS 



A Member of LAUTRO 



Looking Good For Your Future 


demonstrable level of professional 
ability, and a strong educational 
background. It is probable that 
the successful candidate will have 
completed or be involved in the 
Institute of Investment Management 
and Research programme. The salary 
package will be competitive, 
commensurate with the level of 
qualification and experience to date. 

Those interested should send a 
comprehensive Curriculum Vitae 
(including details of current 


RECRUITMENT CONSULTANTS GROUP 

2 London Wall Buildings, London Wall, London EC2M 5PP 
Tel: 071-588 3588 or 071-538 3576 
Fax No. 071-256 8501 


Opportunity to become an established Fund Manager with a growing list of private clients 

PRIVATE CLIENT 
FUND MANAGER 

£25,000 - £30,000 + BONUS 
INVESTMENT MANAGEMENT ARM OF LEADING EUROPEAN BANK 

Our client is an expanding, progressive firm managing funds for private clients with substantial 
assets and retaining the traditional values of top quality service. The fund managers work in small 
teams with full administrative support. We invite applications from candidates with at least 3 years' 
experience advising private clients, gained with either a private client stockbroker or a fund 
management house. Applicants must be Registered Representatives preferably members of The 
Securities Institute and have good PC skills. On joining, the successful candidate will service 
advisory and discretionary dients. Initial remuneration is negotiable £25,000 - £30,000 + bonus and 
good company benefits. Applications in strict confidence under reference PCFM4969/FT to the 
Managing Director, CJA. 




theToronto-Dominion bank 


ID 

Corporate Banking 

The Toronto Dominion Bank has an enviable reputation for providing a broad range of financial 
products to major corporate entities throughout the UK and Continental Europe. After considerable 
success and in order to fortber enhance the Bank's profile in these markets they now seek to recruit 
two exceptional bankets to develop new and existing business in the region. The roles are: 

European Relationship Manager Associate, Corporate Banking 


■A graduate, ideally with a minimum of 5 years 
exposure to Continental European corporate 
clients. However proven market ing skills are 
more important then sectoral knowledge. 

• Be familiar with a broad range of financial 
instruments encompassing lending, treasury and 
capital markets products. 

• Possess the credibility, adaptability and maturity 
to market and liaise with senior corporate 
executives throughout Europe. 

• Fluency in Preach is essential and German 
would be advantageous. 


•A young, credit trained graduate with a minimum 
of 2 years banking experience. 

•A track record of s up port to marketing officers, 
servicing the UK and/or Continental European 
corporate sector, is highly desirable. 

■Must be highly numerate, PC literate and 
capable of independent thought and action. 

■Fluency in French ts preferable, although those 
with another European language may be 
considered. 

■Excellent communication skills are 
prerequisite. 


Both posts represent outstanding opportunities to develop your career with a dynamic bank, 
committed to relationship management in Europe. Remuneration will include a highly competitive 
basic salary, potential for a performance related boons coupled with the foil range of banking benefi t s. 

Interested candidates should write to Niall Macnanghton at BBM Associates Ltd on 071-248 3653 
or write enclosing a full Curriculum Vitae to the address below. 

AD applications unfl be treated in the strictest confidence. 


76, Wading Street, 
London EC4M 9BJ 



r SaLBCTlOW I 



YOU CAN ADVERTISE 
YOUR SKILLS IN THE 
FINANCIAL TIMES 
RECRUITMENT PAGES 
FROM AS LITTLE AS 
£90 + VAT. 


Looking for 
a Career 
Change? 


Fflfl FUflTHffl KTHLSPIEAK 
comer 

PKPWMraai 
Ta: 071-873 3391 Fee 071 - 
8734331 OR IT MOTHS TO EH 
at Fhuhcuu. Times, 
RHMunaBffAmranBW, 
Nona Ore Swmiwuut 
Bridge, UnmSE19HL 


EMERGING MARKETS 



SEARCH & SELECTION 


SOUTH AFRICAN INVESTMENT STRATEGIST 


Oar Client wishes to appoint a well qualified, investment analyst / strategist with a mmimmn 5 years 
experience of die SA Mate. 

The appointee will be responsible for the production of a quarterly review of the SA equity market for 
nag-national investors, a biweekly bulletin of updates and reco mfTww tartnng, and nurer nmW rrgnrf jm wwi-w 
strategy, the modelling of equity portfolios md be able io present these concepts to the Bank's diems. 
Candidates rant have a financially oriented degree and ideally be a qualified chartered 
financial analyst, able to interpret investment trends with a global overview of lire 
Emerging Markets in order to provide c om para ti ve analysis between SA awniiiw and 
other Eroding Markets securities. “Boy” ride e x p eri e nce would be advantageous in 
nn dm«ari ing rirentsnewk.anddreaiMttymepaglc 

An attractive remuneration pac&a^: wflj be offered ta (he right person. Pfcase send 
yourCV in cotuptae coafidaxs to: 


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HiiKTiunp M.irki l 1 - S<. ani> Svlci 
Mjvm*. \ \ riuir 1 ■mi !. hi K( ' 2 \ 5 I> T 
\ DhiMiin i>l'< liniial Marki.-l'. Uivnuluivnt J.tii 
I VI <17 I Mill 4^44 Fax 11 " | film 4717 










II 


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FTNANCIAJL TIMES FRIDAY MAY 6 1994 




QUANTITATIVE RESEARCHER 

Global Proprietary Trading Company 


Central London 

The Company 

• Created by a team of experienced Investment Managers 
with premier reputation and supported by a worldwide 
network of institutions 

■ Seeks to maximise expected total return bn a risk- 
adjusted basis, by combining sophisticated mathematical 
modelling with efficient execution; over $1 billion of 
capital currently committed to long-term, leveraged 
investments in the Fund 

• Employs complex convergence and relative-value trading 
strategies, primarily in fixed-income securities of various 
currencies and associated derivatives; also hedged positions 
in equities, debt-eqaity hybrids, and equity warrants and 
swaps 

• Offers state-of-the-art financial technology - at the 
anting edge in the latest research techniques - together 
with a unique integration of the research and trading 
functions to optimise the benefits from that technology 


from £50,000 + incentives 

The Person 

• Strong quantitative skills with advanced academic degree 
in mathematics, engineering or the sciences, especially 
statistics, optimization, numerical methods or econometrics 

• Good programming skills (Fortran Or Q 

• Preferably famil iar with financial modelling, including 
quantitative hedging concepts (delta, gamma, vega) and 
forecasting 

• Ideally aged 25-30 with financial market experience 

The Prospects 

• Exceptional earnings potential with open-ended team and 
individual performance bonuses 

• Opportunity to develop models and to help implement 
them in the hi-tech and innovating environment of a major 
new institution in the international market 

Please write with full CV, including salary history and 
daytime telephone number quoting reference 3049/FT, to 
John Sleigh, Phillips <& Carpenter, 2-5 Old Bond Street, 
London W1X 3TB. Tel; 071-493-0156 (24 hours). 


Phillips & Carpenter 


Selection Consultants 


DISTRESSED INVESTING OPPORTUNITIES 

Cargill is one of the world's largest privately held companies, specialising in 

hmstnwnt Group (EIG), part of the Financial Markets Division, wests in distressed and non-performu%aebty 
annpiurittand real esteteTfcisgnWip is already very successful th* US and Juts **** 

out opportunities throughout Europe. This creates opportunities for two people tojom this small team. 

Analyst/Investor 

To analyse and recommend investments of under- 
performing assets. This position entails: investigating 
opportunities, information gathering, cash flow 
projections and evaluating debt/assets. The successful 
applicant will be fam iliar with macro-economics and 
industry analysis, corporate finance with particular 
ability to evaluate strategic and business plans. Proven 
financial analysis and excellent PC (spreadsheet) skills 
is a must, but experience with Insolvency and the 
Bond and Equity markets is desired. 


Originator 

Responsible for sourcing debt/product through 
financial institutions oarbrokers throughou t Europe. 

This calls for an individual with a bank syndicate or 
debt broking/trading background who has the 

ability to develop an extensive network of European 

financial institutions and intermediaries for the 
purpose of originating: potential investments. 
Excellent communication and analytical skills are 
essential, and trading experience a plus. 


Both positions will be based in Cobham and involve some travel throughout the UK and Europe. 


O 


Please write with full cv bo: 
Lorraine Wrafter 
Cargill He 
Knowle Hill Park 
Fairmile Lane 
Cobham 

Surrey KT11 2PD 


Our client is a London based multinational group which trades in metals and chemical products. With 500 staff, wodkmgin nine 
of the Trade Finance market to provide their cheats with an exceptional service from sourcing andshipping^^es 

♦ft WMp lny hi g h oa|ftiri» lncli vSiiw«1w whft tun de n m ny trattt nw npp mnch ta trihteh Is proactive, reSOOtcefill and innOVHtive. C andidates COp IQjprOVmg 

operational effectiveness of dep a rtment and supporting the Group in consolidating its position in emerging markets. 


Finance Director 
c£70,000 


This is a newly created position reporting to » Boanl Director and taking strategic 
responsibility for the entire finance function. You will need the drive and initiative 
to align the function to support and address the varied and intricate business 
needs of this company. 

The successful candidate will have: 

• An ACA qualification and up to 20 yean experience of accounting, within 
both a corporate and trading environment. 

• Extensive trade finance experience including securing loans and credit 
farilifwMi from banks far foreign transaction deals. 

• A strong track record in developing and maintaining; banking relationships. 

• Excellent leadership skills until the abiHry to motivate staff. 

• In-depth knowledge of financial management and ra<h t mmi p m Mir 

This challenging role includes giving direction to and controlling the accounting 
and treasury departments of the com pa ny . You tviU be responsible for p rop osing 
and implementing systems to i m prove management reporting to the Board. 
Creativity, professionalism and die ability to get things done are prerequisites. 


The flnmiy function is central to the evolution of the Company. 
These positions offer long term career prospects where you can 
make an impact on a culture which aspires to be the best. 


Financial Controller 
c£45,000 

Reporting directly to the Finance Director, you will recognise that this is more than just a 
frmi-rirmni roie and requires a motivated individual with exceptional manag ement skills. 
You must have exp e rien ce of complicated transactions and be able to motivate your staff, 
as procurement from emerging mark^ra expands and transactions, such, as various types 
of counter trade, become more predo minant . 

You must satisfy the following criteria: 

• An ACA, 15-20 years experience of accounts within a trading house. 

• Experienced in various types of counter trade and multi-currency transactions. 

m Able to make method recommendations for improvements and implement them. 

• Proven experience in all aspects of fin aw rial managi»m«it and cash management. 

• Computer literate. 

• Five years effectiv e team management and the ability to communica te co n fidently 
with staff! 

You will be responsible far the daily operation of the accounts department and for group 
level budgeting. You must be able to demonstrate a proactive approach to the 
management of the dep artm ent and work dosdy with the Finance Director. 

BADENOCH 8XLARK 


recruitment specialists 


Management Accountant 
c£32,000 

As a key member of a team of five, you will have die potential to stand in for tiie 
Financial Controller and guide other accounts staff. You will be responsible for 
the preparation of quarterly management accounts for the Group and will 
contribute in the development and inqilcmeataxion of new systems. 

You will have; 

• An accounting qualification with 5 years e xp e rie nce and exposure to 
accounting within a trading environment. 

• Strong computer stalls. 

• In-depth experience of both financial and management' accounting and 
budgeting. 

• A track record of successfully supervising a team. 

In this fast moving environment, you must be accurate and flexible, able ro meet 

deadlines »"d capable of malting a significant contribution to the development of 
the Group. 

Contact Caroline Foley-Comer or Carole Edmunds on 071-583 0073 (Day) 
081-455 7064 (Evenings) or send your CV In c omplete con fl d mo e to: 

16/18 New Bridge Street, London EC4V 6AV. Fmtr 071-353 3908. 



PEGASYSTEMS is looking for high-calibre 

Business Process Consultants 


to 


re-engineer and automate 
customer service operations 

Up to £45K plus Bonus and Benefits - Based Thames Valley 


Fegasystems is the leading provider of automated customer ser- 
vice solutions for tire financial services community. Our focused 
approach has enabled us to build a reputation as a visionary mar- 
ket leader that delivers quantifiable business process improve- 
ments to our clients. Using expen systems technology .our 
software solutions intuitively support our diems’ business and 
provide a personalised architecture that addresses each institu- 
tion's unique needs. To help build our growing business within 
the UK and Europe, we seek BPR Consultants who will use their 
business and technical skills to analyse our clients’ workflow 
requirements and then design and Implement our advanced soft- 
ware solutions. 

Pcgasyscms' BPR Consultants must possess the following: 

• Two to five years' financial operations experience, In either 
booking, credit cards, mutual foods, or securities 

■ Solid experience implementing software solutions. 
Including pre-sales consulting, project management, 
and high-level post-sales support 

■ The range of interpersonal, leadership, and cocnmonkatioa 
skills (bat are needed to manage and coordinate the activities 
of effort teams usually comprised of experienced project 
managers, business experts, and software engineers. 


For us. -Business Process Re-engineering" is not a recent fashion. 
It is what we have been doing successfully for over a decade. Our 
success is reflected in a client base that comprises tbe most presti- 
gious financial institutions in the world. 

If you believe that yon have the talent and experience to help us 
and our clients, please send your CV to: Peter Watson, 

General Manager, Pegasystems, Ltd-, Tbe Atriuxo Court, 
Apex Plaza, Reading, Berkshire RG1 lAX,or 
phone 0734-591 15a 


INVESTMENT STRATEGY 

Ttie opportunity for an Economist to take key responsibility in the 
development of asset allocation strategy within a leading investment 

management house. 



The company Is an established fund management house 
with an excellent long-term investment record founded 
On its expertise in UK equity stock selection. With the 
rise in die proportion of funds under management 
invested in international equities and bonds, the 
company is building a small strategy team with the aim 
of providing an objective basis for global, in vestment 
strategy. This appointment is to head up that team. 

The appointee will be a member of the executive 
investment committee which determines global strategy. 
Your principal function will be to provide the company’s 
global economic outlook as a result of monitoring and 
analysis conducted by you and the members of your 
team of economic and monetary data and activity. You 
will participate In asset allocation decisions which 
apportion weightings between all asset classes; you will 
work alongside the fond managers investing in bonds 


and currencies, and have a dose involvement on a 
strategic level with the equities teams. 

To be a candidate, you must be an economics 
graduate with at least 5 years professional experience. 
You must have experience of forecasting the effects of 
international economic and monetary activity on 
securities markets. Ideally, this will have been obtained 
within fond management and covering both equities and 
bonds, but we will also, consider candidates from a 
dosdy related business. We offer a competitive and 
attractive compensation package, and above aH the 
opportunity to gain increasing responsibility for global 
strategy within a respected house. To apply in strict 
confidence, please write to: John Sears, Managing 
Director, John Sears and Associates, 2 Queen Anne's 
Gate Buildings, Dartmouth Street, London SWIH 9BP. 
Fax: 071-222 3445 or telephone: 071-222 7733. 


John Seats and Associates 

Executive Search & Selection in Investment Management 

■■■■■MAmemBBR of the CsmcC) croup 


PROJECT FINANCE 
TO £45,000 

As a result of its ongoing commitment to 
international project finance, our client, a leading 
European Banking Institution, seeks to further 
strengthen its highly regarded project finance team. 
The successful candidate will be a graduate 
with a minimum of 2 years relevant experience, 
gained within either a commercial or merchant 
banking environment Responsibilities will Include 
identifying, negotiating and completing big ticket 
transactions. Particular knowledge of the utilities, 
cable/communications and infrastructure sectors 
would be advantageous. 


SENIOR CORPORATE BANKER 
£40'£60,000 

In order to further capitalise upon their established 
presence in the UK corporate market, our client, a 
highly respected and substantial European Bank, 
seeks to appoint an experienced corporate banker to 
take responsibility ter an existing portfolio of blue chip 
clients. The successful candidate is likely to be in 
his/her late 20’s to mid 30’s and to have gained at 
least 3/4 years experience in handling major UK 
corporate accounts, across a wide industry spectrum 
which will have included the utilities sector. A sound 
understanding of capital market products and a credit 
background are also essential for this rote. 


Please contact Scan Carr or Richard Lyons 
Carr Lvons Search and Selection Ltd 
Astral House, I 25-1 29 Middlesex Street 
London Li 7JF 

Tel: 07 1 '62 5 949 > Fax; 07 1 -626 i 26 » 


W il I la m > M in u ifofd 
/ .1 I'Cttlirr 


JAPANESE EQUITIES 

An opportunity for a young fund manager to head up the 
Japanese desk in a successful pensions 
Investment management company. 


The company has grown to become one of the 
largest fund managers in its market. Its growth 
has been founded on consistent, above 
median investment performance, in turn 
achieved as a result of the company's rigorous 
and objective approach to selection of 
markets and stocks. 

Funds under management in Japan 
currently exceed El 70 million. The company's 
overseas equities team has recently been 
reorganised which has given rise to this 
appointment \bu will have responsibility for 
sector and stock selection and will aJso 
contribute to determining asset allocation 
strategy in international equities markets. 


lb be a candidate you should have at least 
5 years professional experience in investment 
management, and you must currently be ■ 
managing Japanese equity portfolios. Wa are 
looking to appoint a candidate who has 
achieved above average investment returns 
and whose approach to stock selection is 
based on thorough analysis. 

The company offers a folly competitive 
salary and benefits package, including 
company car and substantial bonus 
opportunity, lb apply, please write with foil 
CV to: John Sears and Associates, 2 Queen 
Anne's Gate Buildings, Dartmouth Street, 
London SWIH 9BP. 


John 5ears and Associates 

Executive Search & Selection in Investment Management 

i^^hha mama of the croup 




* Wilt . 

' A! 


FINANCIAL TIMES FRIDAY MAY 6 1994 




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n Paribas 

CAPITAL MARKETS 

Credit Risk Management 

Banque Paribas is a leading international banking group operating in over fifty countries worldwide, with particular expertise 
in four core activities: capital markets, corporate banking, advisory services and asset management. 

Paribas Capital Markets is a significant part of the bank's global operation, and as a genuinely international business, draws 
on the expertise of over 1300 staff in London, Paris, New York, Tokyo, Frankfurt, Geneva and Singapore, It provides a 
comprehensive range of products and services in the bond and equity markets, currency and interest rare swaps and options, 
fixed income and equity derivative products and specialised financial instruments. 

The Capital Markets Credit Department is responsible for conducting the entire credit and risk management process for all 
capital market transactions, with teams in London, Paris, New York. Tokyo and Singapore. As a result of continued growth 
the Capital Markets Credit Department is looking to strengthen its reams in both London and Paris, 


Paris 


London 


Based m Banque Paribas' Head Office, you will be 
responsible for establishing relationships with the senior 
management involved in credit decisions, determining 
trading limits and supporting credit applications through 
the credit committee. In addition, you will undertake 
analysis on a financial, country and products basis. The 
successful candidate, likely to be aged 28-36, will have a 
minimum of four yean credit experience and display a sound 
knowledge of capital market produces. Candidates should 
have rhe gravitas and maturity, combined with excellent 
communication skills, to command credibility at senior 
leveL Fluency in French is essenriaL 


Working in a small team, you will be responsible for 
analysing UK and Scandinavian companies to establish 
trading limits for all types of counterparties. You should 
have a minimum of two years credit analysis experience 
gained within a leading financial Institution, strong 
communication skills and a reasonable understanding of 
capital market products- 

Candidates for both positions must be professional, 
confident, articulate and able to deal effectively with a 
range of complex financial products. The salary packages 
will reflect the importance attached to these positions and 


level- riuency m rrenen « essoin.- will be commensurate with experience. 

For information on either of these positions please contact our retained consultant Tim Smith on 071 831 2000 or 
write to him with full career details at Michael Page City, Page House, 39-41 Parker Street, London WC2B 5LH- 
Fax 071 405 9649. All enquiries will be handled in the strictest confidence. Please quote reference 176912. 


INTERNATIONAL CAPITAL MARKETS 
SENIOR FIXED INCOME ANALYST 

COMMERZBANK AQ, London Branch 

Commerzbank AG, one of the three major banks in Germany and an active participant in global 
financial markets is developing further its capabilities in the International Capital Markets. Specific 
emphasis is being given to the role of London Branch, which will be the Group’s European trading 
centre for most non-Deutschemark fixed income products. As part of this planned and co-ordinated 
growth an opportunity has been created for a Fixed Income Analyst to work in London. 

The ideal candidate is likely to possess an Economics Degree with a good understanding of fixed 
income related mathematics and have several years experience working in an analysis-orientated area 
of a large investment bank or securities house. Particular emphasis will be given to applying theory to 
practical aspects of the market, geared towards servicing major institutional customers and generating 
business flows. 

The remuneration package will consist of a competitive salary plus the usual benefits associated with a 
large bank and a performance related bonus. Fluency in German will be an advantage, not a 
pre-requisite. 

Individuals who consider themselves to have appropriate qualifications and who would like the 
opportunity to discuss the matter further should write to our Personnel Manager, Miss Vanessa 
Lewiston, Commerzbank House, PO Box 286, 23 Austin Friars, LONDON EC2P 2JD enclosing 
a copy of their CV. All applicants can be assured of complete confidentiality. 

COMMERZBANK A§j* 

German knowhow in global finance ••• 





Michael Page City 


UK Capital Markets Origination 


/<■ .<* rr ■* . ?><■ ■ * ^v-v.T ' * T- ' 


DERIVATIVES 
ASSOCIATE / TRADER 

£neg plus Banking Benefits 

Global derivatives arbitrage team seeks an MBA graduate or strong undergraduate 
to start as an associate/trader for the London Desk. The candidate needs to be motivated, 
analytical, highly assertive, and in possession of strong interpersonal skills. 
Training or experience in derivatives is a plus. 

If you think you have all the necessary qualities to succeed, 
please send your curriculum vitae to: 

Nicky Garrod, Recruitment Manager 
Canadian Imperial Bank of Commerce 
The Cottons Centre, Cottons Lane, London, SE1 2QL 


London 

Our client is a leading US investment bank, with a 
high profile in Derivatives, Treasury and Capital 
Markets. They are currently seeking an outstanding 
senior marketing professional to enhance their 
presence at a strategic level within the UK Corporate 
community. 

The position will Involve originating business from 
UK corporates across a broad range of capital market 
products including private placements, eurobonds, 
asset securitisation, tax efficient structures and 
restructurings. The successful candidate will be 
technically and analytically strong and be capable of 
contributing to the creation of new products across 
assets and liabilities with a focus on developing 
highly structured transactions. 

Ideal candidates, probably in their raid 30s, 
will have the following attributes: 


£ Excellent 


• At least six years experience of marketing to UK 
corporates; 

• A proven track record of new business 
development; 

• Instinctive understanding of derivatives, treasury 
and capital market products; 

• Outstanding interpersonal and presentation skills; 

• Strong academic qualifications. 

This is an important and high profile role. The 
successful candidate will be rewarded with an 
excellent remuneration package. 

Interested candidates should in the first instance 
write to Karina Pietsch, enclosing a full curriculum 
vitae, at Michael Page City, Page House, 

39-41 Parker Street, London WC2B 5LH. 
Please quote reference 188363. 


Michael Page City 

Inimvooral Recruitment Consul rant* 


'WA \ .\*V 




■ yv&c . ■ 


Risk and Relationship Management 

Our diene is a major US Bank providing a full and innovative range of services to its several different areas. Candidates must be proactive team players, able to reach and 
clients throughout the world. It is now looking to add to its team of risk managers defend decisions while balancing risk constraints with revenue potential. These are 
providing risk assessment covering Europe’s financial institutions and related excellent opportunities to work for a highly prestigious Bonk in a fast moving and ever 
transaction services. They now seek to recruit a number of professionals to focus on changing business environment. 


Investment Management 

Focussing on the investment management sector, this 
role involves a high level of relationship management 
and client contact in addition to risk analysis- The Bank 
offers a range of credit products to its clients, including 
FX, futures, options, derivatives, custody services and 
securities lending. The appointment entails analysing 
the risks associated with counterparties and structuring 
and negotiating credit proposals. You will also be 
responsible for developing new business relationships 
based on understanding customer requirements and 
translating these to product specialists. A graduate with 
at least 5 years experience of developing and 
maintaining relationships, ideally with financial 
institutions, should have excellent presentation and 
communication skills and the ambition and motivation 
ro succeed in this growth area. 


For information cm these appointments, please contact 
our retained consultant Tim Smith, or write to him 
with full career details. Please quote ref. 155682. 

AH enquiries will be handled in the strictest confidence. 


Insurance 

Covering designated sectors of the insurance industry, 
you will conduct financial analysis and structure, 
recommend and manage credit facilities through review 
of companies from both an individual and sectoral 
perspective. You will identify and assess risks as they 
arise within a substantial portfolio, liaising with clients 
to gather information as required. A graduate, you 
should have formal training from a high calibre bank 
and at least 5 years credit experience with a proven 
analytical track record. Previous knowledge of the 
insurance sector would be useful but is not a prerequisite. 
The insurance industry represents a key franchise for 
the Bank, which has a large market share in each of 
the broking, reinsurance, direct prope rry/ casual ry and 
life sectors. 


Michael Page City 

International Recruitment Consultants 
London Paris Amsterdam Dusseldorf Sydney 


Securities and Trade Services 

The Bank has developed a strong business in the 
provision of securities and trade related services to 
financial and other major Institutions. Two. positions 
now exist to focus on each of these areas. Key 
responsibilities include: establishing the risk criteria 
specific to each product; analysing and quantifying these 
risks; developing and enhancing methods to monitor 
product risk; conducting training sessions with various 
areas in the Bank to increase awareness of specific risks 
related to securities and trade products. Candidates need 
knowledge of relevant products such as trade services 
and structured trade finance, global custody and other 
securities products, with the capability to conduct wide 
ranging risk assessment, and the ability to work effec- 
tively in a team forming strong relationships internally. 
Individuals with analytical, systems, operations or asset 
structuring backgrounds would be of interest. 

Michael Page City, Page House, 

39-41 Parker Street, London WC2B 5LH. 

Telephone 07 1 831 200a 
Fax 071 405 9649. 


_■ y>- **• . 


' Economic Development and Property Department 

Northern Gateway Project 
Manager 

£19,950 -£21,783 

Two Year Fixed Term Contract 

The Ctty Councfl i» looking to appoint a Northern Gateway Project 
Manager as port of its major initiative to develop HuB as a major 
European port, business, and Investment location. You wfll develop, 
implement and manage the CouncB*s Northern Gateway campaign, 
playing a leading role in realising one of the most exciting 
opportunities lor buBcfing The future prosperity of the City of Hd. 
Other main duties are: 

■ Developing the commerc ia l and public policy credibility and 
effectiveness of the campaign, butt on trade, logistics, 
investment; and Hun rats and location m the new Europe. 

- Focusing the Council's efforts to achieve the benefits of the 
Northern Gateway concept 

• Bufcflng effective coalitions and partnerships to boost trade aid 
lobs tn HuB and to tackle key trade and development issues In 
the British teles and the rest of Europe. 

You must have; 

• A good understanding of commercial realities In the private 
sector and puMc poBcy making and implementation at a senior 
leveL 

• Woa developed and effective abilities in project development 
and management goal oriented networit building, team 
working, negotiation and deal-making, and getting other people 
to defiver. 

• Enthusiasm, commitment initiative, focus, stamina and goad 
oral and written communication aidlls. 

• A fuH driving Rcenoe and a reliable vehicle for business use 
(a lease car may be avwBnbto) 

• Compliance in at least one other European Union language 
other than English, prefer a bly French or German. 


swhutTt 


JpfjS* AppMc n to n tanas and turthsr 
dataHs ara avaOaMa tarn As 
^ A W CHaf Psreamwl and Management 
9U8, Senricas Ofltaar, Mwi l olp U Officas. Trtppott 
TJTL G * orfl * S*®* Hufi, HU2 BAA, 

Njuuhl- ' M aphona (0*B2) 585287 (24 hour a naw at la fl 
Mntaa) to whom they mould baretumsd by 
^ THURSDAY 2ND JUNE, 1 W4, 


? rnmmm 




An Equal Opportunity Employer 




Outstanding appointments in Marketing Support 

+ 

Global Bond products in a truly global environment 
London and Paris to £50,000 + bonus 

rw Hr* Aicxtt Management ano of an inte rnati o n a ll y respected and highly profitable lirvfaUiucnt Bank, continues to 

grow apace. . 

Firel dass front fine sales and marketing teams require equaDystrong professional support md these two key roles are prvotal in 
hirtherotpaMion to both Inndoo and Parfsionrstringerasclectiaoeritiaia wiD reflect dte bnportaacerrf the posititaia. 

Sucwsriul candidates wiD epjoy fend we use the word advisedly) a broad variety of work including new product dwriopmeatand 
product Uum^ aawrilBaihcrfoiwraogeofniarioetiiigifl8dii l i n es.lt fallows flat c a ndidat e s (probably in then- hte twtntiea/eariy 

-nr h-™ ,-taed a rigorous knowledge of the Bond martcetswitMn either a fixed income portfolio management area, researcher 
SSJSSSoSrafooror Use year period. Working with wrirWdc offices, an ab£t^ 
fanportanee. In the case of the Phrifrbased potitioo, written Fhmcb language sldfls are a prerequisite. 

Other pereoaal traits required indude first dose presentational aldHa, energy, dete r mi na tion, and die ability tn lake advantage of 
«ni « taiiti|il autonomy. 

Career advancement rg»portuiHflesareexi*ptioiMl and the aalaiy package has been designed to attract the be*. 

Pitas* send foD career details, quoting Refc A2Q40. cfedaty iadteatfag yonr pre fe rred locatiaa to Maicohn Lawaon, at 
Codd Johnww Harris, Homan Resource Consonants, 12 New Burlington Street* L o n d on W1X IFF* 

l. im 'W77m7<farf>ur the wnrldnirdav or 0323485566 in the emnnes. 


elH 


OM •Johnson • Harris 


APPOINTMENTS 

ADVERTISING 

appears in the UK 
edition every 
Wednesday & Thursday 
and in the International 
edition every Friday. 
For information on 
advertising in this 
section please call 
Gareth Jones on 
071 873 3779 
Andrew Skaizynski on 
071873 4054 


CORPORATE TREASURY/STRATEGIC PLANNING 

c£50K + Excellent Package 

Our dientisahighly prestigious USmv^stmcnthoiisewithcuirerUiicedsfora person to jointheir 
corpora te treasury, to be responsible for various strategic financial planning functions. You will 
provide solid analytical support to theFlnance Committee liaisingwith both senior management 
and business units. Capital adequacy planxung for the Firm's European subsidiaries will require 
monitoring of regulatory capital developments in several jurisdictions thus requiring traveL 

You will be in your late 20’s/30‘s and wiD have intelligence, exceptional analytical, conceptual 
and presentational skills. Ideally, you will have worked in either a corporate treasury, or a 
financial planning consulting position or with a major financial institution. In addition, you will 
de muiBtia tededkationandbe very keen to advance to higher levels ohnanagement responsibility. 
The candidate with fluency in more titan one European language wiD be given preference. 

For further information, please contact MuAele MacPherson on 072-623 1266 


Jonathan Wren Se Co. limited. Financial Recruitment Consultants 
No- 1 New Street, London EC2M4TPTeL 071-623 1266 Fax 071*626 5299 


JONATHAN WREN 











FINANCIAL TIMES FRIDAY MAY 6 1994 


ill 



A WORLD OF OPPORTUNITIES 

AT NIKKO EUROPE 


KB Financial Services (Ireland) 

Shipping Finance 
Senior Executive 

KB Financial Services (Ireland) (KBFSl) is the 
international asset and structured finance arm of 
Krediecbank N. V. and is based in the International 

Financial Services Centre in Dublin. 

It is expanding and upgrading its involvement in 

shinning finance and is seeking to recruit an 


Nikko Europe Pic is the European headquarters ofNikko Securities, one of 
the world’s leading securities firms and investment banks. Established in 
London in 1964, Nikko Europe provides brokerage and investment banking 
services in equities, bonds and derivatives, serving institutional clients 
throughout Europe, Africa and the Middle East. 

Nikko Europe is at the forefront of the Group 's global strategy to enhance 
its reputation and range of services in the international financial markets. 

Capital Markets - Originations 

As a result of an internal promotion a marketing officer is now required 
for capital markets originations in Germany and Austria. In addition there 
are opportunities for an experienced marketing officer within our frequent 
borrower group, and for a privatisation specialist within our equity 
origination team. 

Corporate Finance (Mergers and Acquisitions) 

Applications are invited from people with 3-4 years corporate finance 
experience including a strong M+A component, to join our busy and 
successful group. Marketing and transaction skills are essential A professional 
qualification in law or accountancy would be an advantage. 

Japanese Equity + Equity Derivative Sales 

Sales staff with at least three years experience are required to sell to 
institutional investors. Nikko has outstanding research and product 
facilities in London to add value to stock recommendations. 

Derivatives 

As part of our commitment to the development of a comprehensive equity 
and fixed income derivatives department we require traders and marketers 
with experience in options of DAX, Nikkei, CAC, FTSE, etc. or JGBs, 
Bunds, DATs, T Bonds or other fixed income products, preferably in the 
OTC market. 


As part of a planned programme of major expansion of our London 
based operation, we are offering exceptional career opportunities to 
market professionals in a number of key business areas. Prospects for 
career progression are excellent as the company is committed to a policy 
of placing responsibility for future growth and success on the skills and 
knowledge of locally appointed staff. 


Equity Analysts 

Our group of analysts work closely with our sales team and also provide 
support for equity originations and M+A We require additional analysts 
to cover a variety of European Sectors to include food manufacturing, 
banking, property and construction, telecommunications, conglomerates 
and southern European country analysis. 

Institutional UK + European Equity Sales 

Energetic and successful brokers are sought to develop our institutional 
client business. Applicants should be active in the market, selling UK or 
European equities to clients throughout the UK or continental Europe. 
At (east five years experience is preferred. 

Business Planning 

To further the company's business expansion, an experienced business 
planner with a securities background is sought to join a small team reporting 
directly to the chief executive. 


Appropriate salaries will be negotiated individually for each 
successful candidate and a fuB range of booking benefits are provided. 
Please apply in writing to Alastair Wood, Nikko Europe Pic, 55 Victoria 
Street, London SWIH OEU. 


Nikko Europe Pic 


to assist in this regard. 

The position will involve responsibility for die 
development ofKBFSIs business in this sector and for 
marketing, sourcing and completing 
appropriate transactions. 

The person appointed n> the position is likely to have 
had significant experience in die banking industry 
i nc luding a minimum of 5 years in shipping finance and. 
to hold's, professional qualification / university degree. 

Age level is likely to be in the mid to late 30s and the 
position is based in Dublin. 

The remuneration package will reflect die importance of 
the position and will be attractive. 

Please unite in strict confidence enclosing details to: 

Mr. L. Donlon 
Executive Director 
|TR Bwaiwwl Sc g vi cc i (Ireland! 

91 Merrion Square 
Dublin 2 
Ireland. 


Merrill Lynch 
Asset Management 


MI AM, the investment management division of 
Merrill Lynch & Co, with over $125 billion of 
global fixed income assets, is seeking a London 
based fixed income product manager to expand our 
European and Middle Eastern institutional business. 
As the position will interface closely with portfolio 
managers and marketing specialists, we are seeking 
a candidate with a solid background in fixed income 
portfolio management as well as possessing 
excellent communication and teamwork skills. 
Advanced University degree preferred. Please 
respond to Mr Richard C. Kilbride, Merrill Lynch 
Asset Management, P.0 . Box 9011 Princeton, NJ. 
08543-9011 USA. Fax # (609) 282 3991 . 


'Merrill Lynch 



FVWCULSEMCB 1 SUCTION IKCU1BB 


PROJECT FINANCE EXECUTIVE 

Challenging Role in Growth Environment 


Our client, a successful and profitable 
FTSE top 100 UK pic, is continuing its 
international expansion via joint ventures, 
capital investment and acquisitions 
overseas. 

As a result of this continued growth, 
there is a need to strengthen further the 
Project Finance Team under the Project 
Finance Manager. 

Working as a key member of this small 
flexible team, you will be involved in all 
aspects of financing overseas projects 
from the early stages through to 
completion. Specific responsibilities will 
include provision of advice on and co-- 
ordination of the development. 


arrangement and negotiation of debt 
facilities on behalf of die Company. 
Suitable candidates are likely to be 
graduates aged, between 25 and 35, who 
ideally have direct experience in project 
finance. Strong analytical and spreadsheet 
skills axe required. 

Excellent ' communication and 
presentation skills combined with a 
confident and credible manner, will be 
necessary to handle the many inter- 
relationships at senior level both internal 
and external to the organisation. 

Although London based a proportion of 
time wul be spent travelling to overseas 
locations, often at short notice. 


C I \ r RAl. 
I ONDGN 


K 30-CW.iHW 


LAWYER 


\Jalotnon Brothers, one of the world's leading international investment bouses, is 
seeking an additional Lawyer for its London Legal Department. 

The Lawyer urtll provide advice on a broad range of European financial services 
issues (arising out of litigation and corporate affairs) with a European Community 
dimension. Tbisis abtgbty visible position that will involve regular contact uHtb a 
wide range of internal departments and individuals within the Firm along with 
external counsel located throughout the world. 

Ca n di d ates should have a strong academic background and familiarity with UK 
law and regulations ; as well as a general understanding of relevant US law and 
regulations. At least four years' relevant experience (ideally more) is desirable 
either with a comparable securities firm or with a leading law firm. Fluency in at 
least one other European language would be a. strong advantage. 


1 1 ipb/ v 
compel it ire 

Sc iid/')' 


Individuals who feel they have die skills and experience to rise to the challenge of this role 
should send a copy of their CV, together with a note of current salary, to Shidey Knight at 
FMS, 5 Bream's Buildings, Chancery Lane, London EC4A 1DY. 


Salary and benefits will be commensurate with experience. “ *• 

Interested applicants should write enclosing a complete curriculum vitae to 
Isabel Doveriy, Salomon Brothers International Limited, Victoria Plaza , 
111 Buckingham Palace Road, London SW1W OSB. 


Salomon Brothers 


A MEMBER OF THE PSD GROUP 


1 .WT..S i MI'A'T MANAGE MEN! MARK 1,1 I\i. 


AMP Asset Management is a major City-based fund management operation, having £18 billion 
in fluids under management , invested in equities, bonds and property in over 20 countries 
worldwide. We are part of the worldwide group of the Australian Mutual Provident Society. 
Our nice css has led us to expand our marketing team and we are now seeking a Marketing 
Executive lo assist in obtaining further UK pension fund and institutional business. You would 
he involved in the acquisition of new business by answering petitions consultants* investment 
management questionnaires and assisting in the research and preparation of presentations to 
potential clients. You will also liase with print, public relations and advertising suppliers. 

You must have at least 18 mouths’ experience of pensions consultants' question- 
naires; and will be computer literate, possess good organisational and communications skills 
and be able to work to deadlines. You will be of graduate calibre and probabty aged between 
23 and 30. A competitive salary- is offered together with attractive benefits. 


Please apply in writing with your CV’ to Roger Hunt, Director of 
Marketing, AMP Asset Management pic, 55 Moorgafr, London 
EC2(UPAbv 18 Mav 1994. 


Samp] 


ASSET MANAGEMENT 


The FT can help you reach additional business readers in France. Our link with the 
French business newspaper, Les Echos, gives you a unique recruitment advertising 
opportunity to capitalise on the FTs European readership and to further target the 
French business world. For information on rates and further details please telephone: 

Philip Wrigley on 

071 873 3351 


VENTURE CAPITAL 

RESIDENT DIRECTOR 
Eastern Europe 

Excellent Package 

European Development Finance Ltd is a company 
recently established by a small group of professionals 
who are applying their considerable experience in 
investment In developing countries to setting up 
development capital funds in Eastern Europe. 

The first find of not less than USD 20 minion Is being 
established with the support of international agencies. It 
will make equity investments in newly privatised 
businesses. 

Working with British based directors, the successful 
candidate will be responsible for the full range of 
venture/development capital activity from initial analysis 
of prospective Investments through to securing 
successful exits for the fund. 

The ideal candidate will be commercially minded with 
substantial experience gained from leading deals and 
managing a portfolio in a venture or development capital 
organisation. Experience of working abroad wodd be an 
advantage. 

An attractive salary and bonus package Is envisaged. 
Please write to Michael Wood enclosing fun CV at the 
address below. 

EUROPEAN DEVELOPMENT FINANCE LTD 

Qravtnor House, 141-143 Drury Lane 
London WC28 STD 


OPTIONS TRADER 

c£60,000 plus Banking Benefits 

Our client is a leading international investment bank looking to 
develop theirpresence on the IJFFE market, particularly with reference 
to single US stock options. Your task will be to develop a market 
making service in single US stock options with particular reference to 
the Pacific time zone. Candidates must be degree educated and must 
have atleast four years experience of trading on the Pacific exchange. 

Please send cos to Ron Bradley, Head of Executive Recruitment 


Jonathan Wren & Co. Limited, Financial Recruitment Consultants 
No. 1 New Street, London ECZM4TPTeL 071-623 1266 Fax. 071-626 5259 


JONATHAN WREN EXECUTIVE 


TREASURY 

OPERATIONS 

Finest German £Uk + Bkg Pkg 
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join ifae Vcrbond Dak Ihfa 

p redgk w Ectopan Banfc. Varied rate 
madding, direct comopct 
coacaa tod presaattkoa. hGa 12 mSa 
txp. ofWM/TX tad a rood knowledge 

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THE TOP OPPORTUNITIES SECTION 

For senior management positions. 
For information please contact 

Philip Wrigley 
071873 3351 




DEPUTY 3 !Rt:C I 










11 S 'H|h Vi 



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FINANCIAL TIMES FRIDAY MAY 6 1994 


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HEAD OF FIXED INCOME 

HONG KONG 

Highly Competitive Package + Banking Benefits 

O ur client ranks internationally as one of the largest and most prestigious securities houses. It is currently 
planning to expand its fixed income operation in Hong Kong and is seeking to recruit a highly motivated 
and ambitious individual who will head this sector. 

The role would suit a leading debt professional with a proven track record in fixed income trading, sales or 
syndication from a major securities house in London, New York or Hong Kong. Candidates must have a thorough 
knowledge of all aspects of the international bond market. They should have the ability to think strategically about 
the future growth and direction of the debt business and ways in which market opportunities may be exploited. 

Ideally aged 30-45, candidates will have excellent presentation and marketing skills and be able to demonstrate the 
drive and determination to succeed in this fast-moving and exciting market. 


Interested candidates should send or fix full curriculum vitae, including details of current remuneration 
package, to Carol Jardine, Managing Director, Whitney Selection, 17 Buckingham Gate, London 
SW1E 6LB (fax 071-233 9334), quoting reference WS/69/1. 


W H I T N E Y 


SELECTION 


\l\il/f MMM // it// / 



THl 

WHITNEY 

GBOUP 




Bloomberg 

BUSINESS NEWS^ 




Editors 


Global News Service 


Based London 


Bloomberg Business News, a 24-hour global news service, seeks 
experienced editors for its London bureau. 

Qualified editors will have at least three years experience at a top 
financial news service or newspaper and will have in-depth knowledge 
of the business world and financial markets of at least one major 
European country. 

Candidates with strong knowledge of London's financial markets 
and U.K. companies are especially sought. 

Depending on experience, responsibilities will range from line-editing 
copy to making assignments and managing a reporting staff that files 
from 12 European bureaus through a central editing desk in London. 

Interested applicants should send or fax resumes and any clips to 
The Freshman Consultancy, quoting reference FT/6/M. 


FRESHMAN 


L. 


The Freshman Consultancy, Coppergarc House, 16 Brunt Street, London El 7NJ. 
Telephone: 071-721 7361 Facsimile 071-721 7362 


_1 



ACCOUNT EXECUTIVE - 
GLOBAL CUSTODY 
to £40,000 

One of the world's most promi- 
nent global custodians is cur- 
rently expanding its market 
penetration in Europe. As a 
result it has an outstanding 
opportunity for a Senior Account 
Manager to concentrate on 
delivering a high quality service 
to is clients. Candidates are 
sought from a highly customer 
driven background with a strong 
technical understanding of 
securities operations. Language 
skills would be especially attract- 
ive as managers will be expected 
to build and support rela- 
tionships in Europe. 

Please contact Elizabeth Williamson 

Fax 

071-626 9400 


MARKETING MANAGER 
-UK CORPORATES 
£40,000 

Our client is a successful City 
bank with an impressive portfo- 
lio of contacts amongst major 
corporates both UK and over- 
seas. An increase in profitable 
lending activity in the UK has 
created a need for an additional 
Marketing Officer. Candidates 
should see themselves as entre- 
preneurial bankers, able to 
develop opportunities from 
widely differing sources. How- 
ever an ability to display strength 
and depth in credit and rusk 
analysis will be a factor in the 
selection. Ideal age 27 to 35. 
Please contact Stephanie Devine 


CREDIT ANALYST - 
INSURANCE INDUSTRY 
£30,000 

Our client is one of die strongest 
European Banks. Its financial 
institutions division has been 
particularly successful in gener- 
ating business from the UK 
insurance sector. As a result of 
this recent growth there is a 
requirement for an additional, 
well trained credit analyst, to join 
the team. Candidates, in their 
mid to late twenties, should be 
eager to take on a wide range of 
duties, including supporting the 
marketing and product develop- 
ment effort 

Please contact Brenda Shepherd 



Cleary Court, 21-23 St. Swiihin’s Lane 
London EC4N 8AD 

Rnanctei RacnjKmont Confoimnta 

SHEPHERD LITTLE 


QUANTITATIVE 
ANALYST -SPECIAL 
PRODUCTS 
£30,000 to £40,000 

This is an outstanding career 
opportunity with a major inter- 
national banking organisation. 
You will require a degree in a 
numerate discipline, preferably 
enhanced by a post-graduate 
qualification and some invest- 
ment banking experience Your 
responsibilities will be to 
research new capital markets, 
cash management and derivative 
products to provide the bank's 
clients with sophisticated, 
systems-driven solutions to their 
Hedging problems. 

Please contact Tony Tucker 


Telephone 
071-626 1161 


M 


tad 


DEPUTY DIRECTOR - INVESTMENT 


MONTE CARLO 

My client, a worldwide group, with interests in finance and shipping is 
looking to recruit a high calibre manager to support their international 
Investment activities. 


Teaching and Counselling 
Opportunities (part-time) 


Reporting locally to the Director responsible for Investment and Shipping, 
you will provide the Interface with external fund managers, brokers and 
investment specialists, and be responsible tor their overall control and 
direction. 


Ybu wili maintain an up to date knowledge of the global economic and 
political factors likely to impact on the group's investment performance, 
and ensure that this knowledge Is shared, and acted upon in the most 
appropriate fashion. 

A graduate, preferably in a business related discipline, you win have a 
sound professional knowledge of investment strategy and financial 
markets, gained either in a senior line role, or as a consuftant/adviser. 

You must have the maturity and stature to build a long term relationship 
with the key 'clients 1 of the group, and be able to respond quickly and 
concisely to their needs. Above all, you must have the personality, 
attitude and approach to fit quickly into a small, well balanced, senior 
management team. 

Although the office working language is English, French would be a 
distinct advantage. 

If you are interested in this career opportunity, please send your 
application to the address below, or alternatively, contact me on 
Lmeembourg (352) 40 63 58 for more information. 

Ail applications will be treated In the strictest of confidence, and should 
be accompanied by a full Curriculum Vitae, together with current salary 
details, and a contact telephone number. 

Nigel Plumpton, Senior Partner, Phunpton, Morgan & Partners 
BP 2740, L-1027 Luxembourg 


WUli WE OPEN BUSINESS SCHOOL 

An you interested in wotting with highly motivated maoagas who ore muling n 
considerable peroral ■nresfment hi studying fora management quafiflootion in 
their spare time? 

The Open Businsss School has approwrwtBly 20,000 repstrations a year from 
such monogec on its CertfentB, Diploma and MBAprognnnresaadhas 
wanaes for part-time tube in mmy beds but parfialsrty finona throughout 
tire UK rad in mojor European cities. In portioda, we are looting lor tutors 
resident near Borcelonn, Brussels, Dusseldtsrf, Frankfurt, Geneva, Hamburg, 
Lisboa, Luxembouqj, MH aa, Munich, Pans, The Hogue, Vienna and Zurich. 

Jhe tutor's role is to ran o limited number of group tutorials, rook and comment 
on assignments, provide occasional telephone support and teach of residential 
schools. These activities generaBy lake place outride normal waiting hours. 

The idsd tutor hm araderabfa roonogement experienca, toothing or Homing 
experience and a relevant mow^^ qudffication.Keorsbe 

has stills It foeffitoting snwB group learning raid 
enjoys developmg monogeo. 

Appointments wfi be mode in early Autumn fix 
causes commencing November 1994 (Certificate 
and ffipfoma) and February 1995 (MBA). 




your nantg and address on a pcstrord to: 
The rotas' Office flW: 0BS/FT), 

The Open Urn/asty, P0 Bax 473. 
Walton Hd Mon Keynes MK7 6BJ. 


The 



As part of the University's Equal Opportunities Action Plan 
we are striving to provide a barrier-free working 
environment ana we therefore we/come applications from 
disabled people. 

Equal Opportunity is University Policy 


FLEMINGS 

COMPLIANCE 


Flemings is a leading private merchant bank with 
extensive domestic and international interest in fund 
management, investment banking and securities broking. 

■ 

The Group is committed to setting and maintaining the 
highest standards of compliance. Due to promotions, internal 
transfers and the significant growth of Flemings business, 
there are now a number of opportunities within the Group 
Compliance Department 


Applicants should be self-confident and are unlikely 
to be under the age of 25 and probably professionally, 
possibly legally, qualified with some regulatory or other 
relevant experience. Excellent long-term career prospects 
exist within Flemings for those able to demonstrate their 
potential 

■ 

The salary and a first class benefits package will be 
commensurate with the skills and experience of the 
successful candidates. 


Please apply in writing to: 

■ 

Ann Marty, 

Personnel Officer, 

ROBERT FLEMING & CO. LIMITED, 
25 Copthall Avenue, 

London, EC2R 7DR. 


BANK RISK MANAGEMENT 
CONSULTANT 

! A leering Arm as aaeurity conaritana is seeking to oqjand te team 
which undertakes risk surveys of banks and other financial 
instlMlons.prtnekmBytotroLflncxmktturaxemarkBL 

The consultant selected wH have wide tepwrienee of the banklnfl 
industry, efthar as an Internal auditor or In operational management. 
It would be a conaWeratto advonttfle W haw worked M a number 
MdHkwnttypaeoflnBnurntwrofdBteronttypescrflnsHuaonsand 
some international experience, though not esseniiai. Is deshabie. 

flemuneraikmsviriBbeonattaifrt60bre*ttd^ w, ^^ som *l* s *ty 
who already has a taste <# oftor wo* as a consultant or a recently 
retied Executive. The ww* te »c*y to Involve conskfaratatetrav*. 

Ptaas* send your Curriculum vta* to BtH A2020. Rnancia! Tknws, 

One Souihwaric Bridge, London SEt bhl, 


BUSINESS 

OPPORTUNITY 

A lading edge US band trading floor 
nunueioa cea^uqr ^uciiUzng la 
em-titte tiaSc mnagfettmt mdefcc- 
tronic deal capture ■ sedriag nder 
independent sales remnowivBs tar 
the global financUauilDeqilK 

We Jure offering a mourn 
| conmlinen based coiaponndan padt- 
agA wfth no np-finaa investment. 

Rto uiiti B ta u are a tboropgh working 
knowledge ol be financial nadxtx 
tncbMting equities, derivatives and 
| Fonx muting Vulegiea and global risk 
management Experience in docnonic 
deal capture, pdcbg services, regula- 
tor# 

ttetnotogka la »pte? ^ Ml ”‘ 
_ nqp frwttCV _ 

Id m i fl iV jCB TO npl er fif i liid lui 
, X7 SCrem • Bur #135 
New York, NY 10004 DSA 
ftwsfaaBei 2UJ0&3435 


MERCHANT BANK TTAUANA 

ricerca un 

CORPORATE FINANCE EXECUTIVE 

per il proprio settore Mergers & Acquisitions di 
Londra, che parteripera' direttamente nell' 
a nalis i ed implementazione di operaziorri 
’’cross-border'' di M & A. 

II Candida to possiedera’ uxia la urea ed avra' maturate 
un esperienza di 1-2 arrni nei settori M & A, revisione, 
consulenza, o analoghi, di primarie strutture. 

II candidate dovra' essere fluente in 
Italiano ed Inglese. 

Siprega di inmate un C.V. e dettagii di retribuzione 
attuaJe a Box A2018, Financial Times, 

One Southwark Bridge, London S£Z 9HL 


Performance Analysis - 
Specialised Managed Funds 

c. £20K + attractive benefits package City 

HE judgement and skill that has made Rudolf WolfT a leading player oo die London 
Metal Exchange has enabled the successful creation of a fund management operation, 
designed Co meet the specialised investment objectives or our clients. 

The performance of these funds (which now total some S250M1 depends not just on (be instinct 
and flair or the individual traders to whom they are entrusted, but on our ability to track and 
analyse lengthy and complex trading programmes, to make sure that investment performance is 
optimised, and to take corrective action if it is not 

Using regression and other advanced statistical techniques, and a growing range of powerful 
Excel based PC packages, you would analyse all aspects of fund performance, from transaction 
costs to full trading history, with the objective of identifying those traders who consistently 
produce the best performance. Working with other members of your team, you would also 
develop systems to ensure that the mass of raw data relating to contracts and cash transactions 
can be built to form a powerful, valuable database. 

You will already have one to two years experience in the quantitative analysis of equity or bond 
markets, and your analytical ability will stem from your degree in Mathematics. Statistics or 
Economics. You will be totally at home using Windows PC software. Your work will bring yon 
into telephone contact with traders, so the ability to develop relationships is important - as is the 
energy and strength of personality that always has you looking beyond the immediate task in 
band. 

For further details, please contact the Human Resources Manager. Rudolf Wolff and Co. Ltd, 
Plantation House, 31-35 Fenchuicb Street, London EC3M 3DX, Telephone 071 626 8765. 



R^udolf Wolff 


CHIEF EXECUTIVE 
FINANCE DIRECTOR 


THE ABOVE TWO POSITIONS 
SOUGHT FOR EXPANSION INTO 
UK BY U.S. PUBLIC COMPANY. 


Please reply to Box A2021 , Rnancial Times 
One Southwark Bridge, London SE1 9HL. 


Portfolio Management 


Do you enjoy client contact and managing your 
own department, but hate the train journey? 

Leading East Anglian Solicitors require experienced 
40+ person to run new portfolio management division 
and ancillary financial services. 

Please write to Box A2022, Financial Times, 

One Southwark Bridge, London SE1 9HL 













PSYCHIATRISTS 
II BKLCKAVt SQDAKK 

London -swixsfg 
tkV—a TOSUffil 
MAi ttiifliai 


Royal College of Psychiatrists 

FINANCE OFFICER 

Salary c. £30,000 

The Royal College of Psychiatrists plays a 
crucial role id establishing and promoting 
the highest standards of psychiatric care and 
training in the United Kingdom and Ireland. 
The College is seeking a Finance Officer 
who wSI be required to be fully conversant 
and compliant with all relevant financial 
procedures, particularly those relating to the 
regulation of Clarities under (tie Charities 
Act. Reporting to the Honorary Treasurer 
and College Secretary, the Finance Officer 
will play a leading role in the development 
and maintenance of financial systems, the 
provision of management information and 
the effective administration of all finances 
including budgets, IT systems, investments 
and appeals. 

The successful candidate will be of 
graduate calibre and a qualified accountant 
with several years post qualification 
financial management experience. He or 
she will have proven ability to develop and 
enhance finance systems and the 
management skills to lead and motivate a 
small department Good writing skills and 
the ability to communicate effectively are 
essential. 

For further details please telephone 
Miss Sue Duncan on: 071 235 2351. 
The closing date for applications is Friday 
20 May, 1994. 


ACCOUNTANT REQUIRED 
FOR PACKING COMPANY 

Practical hands-on approach, with knowledge of computer 
systems. Preferably a finals student of a recognised accountancy 
qualification. Applications with current CV and salary 
expectations to: 

Box A2Q19, Financial Times, One Soutbwaric Bridge. London SEL 9HL 


FINANCIAL TIMES FRIDAY MAY 6 1994 


ACCOUNTANCY COLUMN 


Industry’s cost-cutting pains US firms 

Richard Waters reports on KPMG’s attempts to cope with the malaise which still exists in the sector 



I f accounting firms in the devel- 
oped world have had a tough time 
of it so for in the 1990s, then those 
In the US have suffered more than 
most And if you were to pick a firm 
that exemplifies the pain of the past 
four years or so, yon could hardly do 
better than KPMG Peat Marwick. 

In 1993, Peat reported revenues in 
the US of roughly $L8bn, the same as 
it has in each of the past four years 
(the firm's fiscal year runs to the end 
of June.) 

In real terms, income has been foil- 
ing at a time when costs have been 
rising steadily. To sustain partners' 
earnings, the firm baa slashed partner 
numbers during the period by around 
20 per cent, to Just under 1,600. (It 
started c ulling partners soon after the 
1987 merger between Peat Marwick 
and Main Hindman.) 

Feat is not alone, of course. Of the 
US firms, only Arthur Andersen and, 
to a lesser degree. Price Waterhouse, 
hare managed to keep a degree of 
top-line growth. The products of the 
late- 1980s mega-mergers hare suffered 
more than most; Ernst & Young and 
Deloitte & Touche have also been 
forced to cut back partner numbers, 
though not to the same degree as 
Peat 

US accountants blamed the malaise 
for a long time on their country’s 
early 1990s recession. Such claims 
have sounded Increasingly hollow: the 
US economy came out of recession 
more than two years ago, at first fit- 
fully and more recently with undenia- 
ble vigour. But the fortunes of the 
accounting firms have not responded 
as fast Their fees have become just 


one more of the items that US indus- 
try, bent on squeezing out every 
unnecessary cost has put under the 
microscope. 

The experience has been a sobering 
one. Accounting firms spent much of 
the 1980s talking about becoming 
more useful to their customers, and 
less reliant on compliance products 
like dnitig audits and f iling in tax 
returns. They are still talking about it 
- but there is little indication that this 
approach has reinjected any growth 
into the accounting business. 

The man with the unenviable job of 
reinventing Peat in the US is Jon 
Madonna. Elected chairman in 1990, 
be has already presided over a painful 
downsizing. Be could now be set to 
lead the firm into the next century. 
His 51st birthday is today, leaving 
him plenty of tfrne to serve a second 
six-year term as chairman (should he 
be re-elected) before reaching Peat's 
retirement age of 60. 

According to Madonna, the turning 
point has come: “What we went 
through In the last few years was a 
downsizing. Now, it’s a growth strat- 
egy" 

If he is right - a big “if" - the rest 
of the 1990s will be a more -pleasant 
time for the accounting firms than 
the first part of the decade. 

The starting point is a difficult one. 
“We've got productivity issues, we've 
got growth- issues, we've got profit- 
ability issues. We’re no different from 
any other industry here,” says 
Madonna. 

The US firms are reeling from the 
effects of cost-cutting already under- 
taken, and have yet to rebuild morale. 


The cost-cutting is unlikely to be at 
an end, though. 

Technology has revolutionised the 
way companies and the investment 
community collect and analyse finan- 
cial information. Accountants hare 
long realis ed this, and have struggled 
to reinvent their role as an intermedi- 
ary in the information chain: rather 
than collectors and collaters of finan- 
cial fa formation, they have tried to 
become interpreters and strategists. 

Yet the cost structures of the big US 
firms suggest that they have not 
made the sort of productivity gains 
that might be expected from this 
information revolution. 

S fane the middle 1980s, the ratio 
of partners to professional staff 
- one of the best indicators of 
productivity in any professional part- 
nership - has hardly budged at sev- 
eral of the biggest firms, at around 
eight professionals to each partner. 
Nor has the ratio of non-professional 
(largely administrative) staff fa l len. 
Cutting people has at least lifted the 
average revenues per partner, though. 

"We’re not as good as we should be 
[at measuring productivity!,” admits 
Madonna. Productivity may be one of 
the biggest issues facing the profes- 
sion, yet it continues to be overshad- 
owed by an obsession with growth. 
Reinvigorating the top line is the first 
objective of all firms. 

Peat’s response has been to take a 
strategy common among all account- 
ing firms in recent years one step 
further. “Industry specialisation” has 
been the mantra of the profession for 
at least a decade. Peat has now ele- 


vated It to become a raison d'etre. 

By last summer, the firm had, in 
the US, scrapped its traditional func- 
tional groups - audit, tax. consulting, 
and so on - and reorganised itself 
al o n g industry lines. 

Madonna says: “We’re measuring 
ourselves by market - we will be 
able to tell you how much we gener- 
ate in financial services, for 
instance.” 

That approach enables the firm to 
reward Its staff according to how wen 
their partic ular industry group does. 
Audit staff, the theory runs, will be 
more inclined to think creatively 
about other services that could help a 
customer if their own pay Is more 
closely tied to the outcome. 

Does fiddling with organisational 
structure in this way get to the root 
problems of the accounting firms? It 
is hard to argue against the approach: 
if the ac co untin g ft**™* find growth in 
the future, it must come Erom selling 
new services to their customers. 
Organising around customers, rather 
than around their own functional 
divisions, is a logical step. 

Yet on its own, industry specialisa- 
tion is not the answer. It did not pre- 
vent the problems of the early 1990s, 
and is unlikely to be a panacea in the 
future. 

“On the face of it, it seems a good 
idea. But the world doesn't compart- 
mentalise that way, it’s too dynamic,” 
says Bruce Marcus, a consultant on 
marketing for professional firms. 
More seriously, he adds, accounting 
firms hare still not adapted to the 
competitive era ushered in as long 
ago as 1977, when the ban on advert- 


ising in the US was first lifted. 

There are other, more serious man- 
agement problems that hang over the 
a m mrtin g firms, notably the partner- 
ship structure itself. Having taken the 
Brst steps in the eariy 1980® to setting 
up quasi-corporate g over nance 
arrangements, accounting firms have 
foiled to carry the process to its logi- 
cal conclusion. 

Madonna makes the most of the 
partnership system, even going so for 
as to suggest that the corporate watt 
has moved closer to the partnership 
structure, rather than the other way 
around. 

H A lot of corporate America is try- 
ing to manage itself as a partnership," ., 
he says. He suggests it is “very much 
in line with the stock option frenzy* 
which has seen companies increas- 
ingly offering senior employees an 
equity interest 

In reality, though, there is still & 
huge gulf between the consensual 
style of a partnership and the stan- 
dard corporate management struc- 
ture. Tackling this issue remains one 
of the basic challenges that account- 
ing firms have shied away from. 

If there is a model for the accoun- 
tants to follow, perhaps it is the us 
investment banks. Small partnerships 
until the 1960s in most cases, they 
managed the transition to Mg, public 
corporations with spectacular suc- 
cess. 

The most profitable of them all, 
Goldman Sadis, remains a partner- 
ship. But in its strong leadership and 
management structure, it has for 
more* in common with a public com- 
pany than an accounting firm. 




Chief Financial Officer 


To £60,000 + Benefits 

This client is a leading specialist investment manager 
with an excellent portfolio of well established blue-chip 
clients, While small, rt is undergoing considerable change 
as the result of growth. 

Reporting to the Chief Executive, the appointee will 
build a strong finance function and develop the strategic 
planning process. Key mandates include; enhancing the 
reporting and control systems, setting objectives, 
monitoring performance, managing the contribution of 
the finance function and ensuring its integration. 

Candidates will be in their mid 30s. They must be 
qualified accountants who have worked in a small 
dynamic business management team where they 
contributed to direction and performance while 
establishing effective systems, controls and procedures. 

THORNTON FAHEY 


SEARCH AND SELECTION 


City 

It is not essential to have a financial services background 
but quick learners with an interest in and an ability to 
understand investment products are sought. They must 
come from highly customer focused businesses. Above 
all, as part of a small expert management team, they will 
need to be practical, proactive and have a strong sense 
of responsibility. 

There is a bonus and first class benefits but the package 
does not include a car. 

If you have the requisite drive and experience, please 
reply in confidence by quoting Ref. 61 0 and sending" ” f 
your Resume to Michael Fahey at Thornton Fahey, 

1 Manson Place, London SW7 5LT. Tel. 071 584 6028, 
Fax. 07 i 823 7688. 


Group Finance Director 


Lancashire 


c&50,000 + bonus + excellent benefits 


Our client Is a profitable S30ra+ turnover 
carpet manufacturing pic. With significant 
capital Investment In place and a diverse and 
growing product range, the company Is well 
placed to take advantage of the economic 
recovery. 

Reporting to the Group Managing Director 
you will be responsible for the financial 
control and direction of the Group pic 
and its four trading subsidiary companies, 
and providing a company secretarial 
service. 

A Chartered Accountant, you should have 
significant experience In the manufacturing 


sector and be familiar with the requirements 
of a pic including the production of statutory 
accounts and dealings with the Stock 
Exchange and Institutional investors. 

Commercial awareness, an enthusiastic and 
proactive approach, excellent communication 
skills and a willingness to contribute to the 
general management of the business will be 
highly valued. 

Please write with full career and salary 
details - In confidence - to David Mather, 
Ref: 34D38, MSL International Limited, 
Sovereign House, 12-18 Queen Street, 
Manchester M2 5HS. 


M5L International 


Consultants in Search and Selection 


Financial Controller 

South Wales £30K+Car 

Onf cbmt is etfablhhing a hrevltbearr botineu 

operating fnm S ou t h Walao and bm looking foe a Pmaacsal 
Onnlfolia- reporting to the Managing Director. 

■pH! appointment is hay to the company '• raceawfal 
i n tlul It trill embrace: 

"•dvMng an Qnandal strategy 

• M-Cotlatimi mad linboa with banka and oedltora 
■ tm nln il Hint! l ie «rfBd,mt prag nchw mnA «wiitnil« 

* f*y wM *"* p™etfc*L nWnwt <um 1 tinMly nuMgenuni 

uuoranUon 

(tfbjfam that curfdaM matt he able tntMnkstr&tcgkalhj'vt 
he alert to Um detail of daj--t«Hlayop8ran«a.Weaniki pate that 
the wcr caaful candidate will haw a high degree of pcmnal 
wgarfMUon. CTUaranalnaand iiueromnrinnnfifatri «nX mill 
he a lurid and pcmuuivo (mumnicator. 

You wm be n qualified a e cau nt a n t in your eariy 30 a 

pw wen t rack record of achievement in a commercial 
pntfrrably manufaetunng, who h looting tor a 

swr CV to Komi Hagen. Grant 
nwmlon, li-xa Panbill Bond. Cardiff. CF1 8UP. All 
tPPumtinnB «in he treated in the mnetattaiiifiileiue. 

Grant Thornton* 

MANAGEMENT CONSUTANIS 
TV UK member firm of Grant Thomtmt International 


GERMANY 


Directo r of Finance Ex patriate Packag e 

An exceptional opportunity for a talented Chartered Accountant who cut 
demonstrate strong technical and Interpersonal skills In a highly visible 
industry. 

The Company German subsidiary of £300m UK PLC operating in 
d istribution sector, with significant growth pkaimod over the next 5 yearn. 

The Role Reports to local managing director and UK finance 
department and is responsible for all finance and administration 
functions, liaison with professional advisers, treasury dudes and other 
ad hoc alignments. 

You will be a qualified ACA with a minimum of 5 years post qualification 
experience gained in a dynamic commercial business, highly computer 
literate, and skilled m formulating new Ideas with an ability to plan and 
manage a growing business. Fluent German is essential, and previous 
experience gained in Germany would be an advantage, although not a 
qualification. The remuneration package: is flexible and generous, and will 
be based on previous experience, but includes a fully expensed prestige 
company car and usual expatriate benefits. Including relocation to an 
attractive part of (Vest Germany. 

To apply, please send a full CV, including current remuneration r^rbrn. to 
the Pcwconel Manager. Box A2Q24, Financial Times, One SouthwadtBddee. 
London 5E1 9HL. 


Finance and 
Admin Manager 

Attractive Package to include options 

New position in innovative, fast growing, profitable business. 



SPORTING 

INDEX 

London 


THE COMPANY 

♦ Unique, SFA regulated, trading operation dedicated to 
sports spread betting. 

♦ Established 1992 by a group of private investors. 

♦ Remarkable growth to date. 

♦ Young, lively, fun, hard working atmosphere. 

THE POSITION 

♦ Responsible for back office: financial and management 
accounting, administration, computer systems. 

♦ Produce regulatory reports, liaise with SFA. 
Implement internal compliance procedures. 


♦ Develop processes, controls and performance 
indicators to support exponential growth. 

QUALIFICATIONS 

♦ Qualified accountant, late 20s/early 30s with 
experience of regulatory reporting and compliance in 
trading or /ending' environment. 

♦ Management experience, computer literate. 
Ambitious and entrepreneurial 

♦ Interested' in sport with the personality, commitment 
and style to fit into fast moving trading culture. 


Please send full cv, stating salary, ref N 1728, to NBS, 54 jermyn Street, London SWI Y 6LX 


LONDON 071 493 6392 
Aberdeen 0224 £38080 ■ Bunringham 021 233 4656 
Bristol QZ72 291 14Z * Edinburgh 031 229 2250 
GbagmrOtZ 30 * «3+- Leeds 0532 453830 
Manchester 0625 539953 • Slough 0753 819227 



EXPERIENCED 

RECRUITMENT 

CONSULTANTS 

LONDON • READING 
GUILDFORD • ST. ALBANS 
BRISTOL • BIRMINGHAM 


£ 25 - 60,000 


& 


Package 


REGIONAL 

FINANCE 

DIRECTOR 


£32,000 - £ 36,000 
+ car, bonus, pension 
and private health insurance 

Bristol 



"A demanding and dynamic industry'that calls for 
energetic team players". 

Harrison Willis is a leading independent recruitment 
group specialising in Accountancy, Legal and Gty 
appointments. We have expanded rapidly since an 
MBO in 1 983 and enjoy an enviable reputation in this 
highly competitive industry. 

Our financial independence gives us the ability to react 
quickly to ever-improving market conditions; resulting 
in current opportunities across the Group for outstanding 
consultants with relevant permanent or temporary 
recruitment experience. 

If you need a fresh challenge, this exciting and 
innovative company can provide it In return for your 
commitment and skills, we offer our consultants high 
earnings potential and access to a long-term career in 
an acknowledged leader in recruitment 

To talk informally about these openings, call Fiona 
Birt-UewdUn, Director on 071-629 4463 (evening s 
081-542 2159} or write to her at the address below. 

All enquiries will be treated in the strictest confidence. 

HARRISON pH WILLIS 


FINANCIAL & LEGAL RECRUITMENT CONSULTANTS 


Cardinal House, 39-40 A/bemarie Street, London WIX3FQ. TW: 071-629 4463 
IONDON - READING - GUILDFORD - ST ALBANS - BRISTOL * BIRMWGHAM 


As one of the nation' 9 finest homebuilders, we have an enviable 
reputation for producing high quality homes and providing outstanding 
levels of customer service. 

For a qualified Accountant with exceptional business acumen, this 
is an exciting opportunity to join the Board of our Southern Region. 

Reporting to the Regional Managing Director, your prime role 
be to coordinate all areas of our business to ensure profitability 
levels remain on target. This will mean taking a creative approach 
in toraiulating and revising realistic plans and budgets for a market 
which is dynamic and constantly changing. You will also need to 
ensure that all accounting functions are carried out to meet legal 
requirements and Group accounting policy and that staff are Informed 
on performance and profitability issues. 

A* well as a professional accountancy qualification, you should 
have broad commercial experience, gained from both management 
and financial accounting, and ideally, experience of the housebuilding 
mdustiy. You will also need to be a confident and influential communicator 

with accomplished man-management skills. 

For the right person, the benefits will Include a quality car, profit 
related pay and bonus scheme, pension scheme and private medical 
insurance. r 

You should write a letter of application and enclose a curriculum 
vitae outlining your skills and experience, and send it to: Christine 
Young, Personnel Secretary. Westbury Homes (Holdings) Limited, 
Southern Region, *. 40 Asstec West , Almonds bury, Bristol BS12 4TA> 

Closing date: 20th May 1994. 











FINANCIAL TIMES FRIDAY MAY 6 1994 


VII 


c. £80,000 + bonus 
+ benefits 


Electronic Stystems and Services 


North 


Finance Director 


Rapidly expanding and successful c. £50m pic with dominant positions in its market 
sectors seeks a mature, commercial finance professional to provide real authority and 
direction. Key member of a small executive team focused on achieving significant 

profitable growth. 


THE ROLE 

■ Reporting to the Chairman, responsible for 
enhancing the performance and profitability 
of subsidiary companies by providing tight 
financial guidance and control. 

■ Close involvement with both UK and overseas 
operating management In commercial 
negotiations and business reviews. 

■ Support the Chairman in enhancing City 
relationships. Active contribution to 
strategy; evaluating capital expenditure 
programmes and acquisition opportunities. 


THE QUALIFICATIONS 

■ Qualified accountant, 40+, with broad 
senior level experience in a decentralized 
manufacturing Group. High-technology and 
international exposure an advantage. 

■ Strong financial management, costing and 
analysis skills gained in a growing, 
opportunistic culture. 

■ Energetic, open style with excellent 
interpersonal and communication skills. 
Used to acting as a business advisor and 
facilitator. 


Leeds 0532 307774 
London 071 493 1238 
Manchester 061 499 1700 



FbMM rcpjj vta taH 4cnb wc 


c. £60,000 + bonus 
+ banking benefits 


Financial Sendees 


London 


Head of Projects, Treasury Operations 


This innovative and rapidly growing Treasury Services subsidiary of a leading UK financial institution seeks to 
appoint on outstanding prefect director with e background in treasury operations, finance or systems. Responsible 
for a programme of multi-disdpUnary, cmss-faoakmal projects designed to meet the rapidly developing needs of 
the business, unique opportunity for a talented change manager to make a major Impact on a dynamic, high 

profile company. 


THE ROLE 

■ Reporting ro the Director of Operations, responsible for 

devising, directing and controlling major development 
protects with a significant IT component, maximising 
benefits whilst minimising risk and disruption to 


Establishing dear lines of communication between all 
functions within the company, as well as with other key 
areas in the Croup, to support the process of change. 

Setting standards and methodologies for con [rolling 
development projects. Providing Internal project 
management consultancy to ail business areas in the 
company. 


THE QUALIFICATIONS 

■ Educated to degree level or equivalent with a successful 

track record as a project manager, line manager or 
management consultant specialising in the 
development of comple\, business -critical treasury 
processes and systems that cross functional boundaries 

■ Strong interpersonal and communications skills, able to 
control through influence and win support for new 
developments. Strong negotiator who can resolve 
conflicting demands for resources and manage external 
relationships. 

■ Mature self-starter with the stature to win respect from 
all levels in the company. Pragmatic problem-solver and 
fadlitator. willing to take responsibility and instil 
accountability in others. 


Leeds 0532 307774 
London 071 493 1238 
Manchester 061 499 1700 


Selector Euro pe 

Spencer Smart 


Ptew, reply wWa Ml dcOdto to 
Wmor Europe. «rf. F2 1 1 10S4M, 

H rfllm i u ii Conn. Oiwo n ui t a Dn«lnc«» tot. 

nyal «ma Mjmcfcamx «aa klg 


Our client: is a London based multinational group which trades in metals and chemical products. With 500 staff, working in nhn> countries, they apply an in-depth knowledge 
of the Trade Finance market to provide their clients with an exceptional service from sourcing and shipping, to sales and finance. The Group's Finan ce Department is looking 
to employ high cafihre individuals who can demonstrate an approach to business which is proactive, resourceful and innovative. Candidates must be capable of improving 
the operational effectiveness of the department and supporting the Group in consolidating its position in emerging markets. 


Finance Director 
c£70,000 

This is a newly created position rep o r tin g to a Board Director and raking strategic 
responsibility for the entire finance function. You will need the drive and initiative 
to align the function to support and address the varied and intricate business 
needs of this company. 

The successful f nrfiifar^ will have; 

• An ACA qualification and up to 20 years experience of accounting, within 
both a corporate and trading environment. 

• Bw e n t i w trade finance experience including seeming loans and credit 
facilities from banks for foreign transaction deals. 

• A strong track record in developing «i«l wumwining hgnfcmg relationships. 

• Excellent leadership skills with the ability to motivate staff 

o In-depth knowledge of financial management and cash management. 

This ei»aliw<gttip role includes giving i i iw iinn to mil controlling i* 1 * accounting 
and treasury departments of die company. You will be responsible for proposing 
and implementing systems to improve management reporting to the Board. 
Creativity, pmfr<dnnali«m and the ability to get things done are prerequisites. 


The finance function is central to the evolution of the Company. 
These positions offer long term c a re e r prospects where you can 
make an impact on a culture which aspires to be the best. 


Financial Controller 
c£45,000 

Reporting directly to the Finance Director, you will recognise that this is more than just a 
functional role and requires a motivated individual with exceptional management skills. 
You must have experience of complicated transactions and be able to motivate your staff, 
as procurement Gram emerging markets expands and transactions, such as various types 
of counter trade, become more predominant. 

You must satisfy the following criteria: 

• An ACA, 15-20 years experience of accounts within a trading house. 

■ Experienced in various types of counter trade and multi-currency transactions. 

* Able to make method recommendations for improvements and implement them. 

■ Pmp m experience in all aspects of financial miwiagwnwif and ra«h muggim 

■ Computer literate. 

8 Five years effective team management and the ability to communicate confidently 
with staff 

You will be responsible for the daily operation of the accounts department and for group 
level budgeting. You must be able to demonstrate a proactive approach to the 
management of the department and work closely with die Finance Director: 

BADENOCH 8XLARJK 

recruitment specialists 


Management Accountant 
c£32,000 

As a key member of a team of five, you will have the potential to stand in for the 
Financa! Controller and guide other accounts staff. You will be responsible for 
the preparation of quarterly management accounts for die Group and wfll 
contribute to the development and implementation of new systems. 

You will have: 

8 An accounting qualification with 5 yean experience and exposure to 
accounting within a trading environment. 

8 Strong computer skills. 

8 In-depth experience of both financial and management accounting and 
budgeting. 

8 A track record of successfully supervising a team. 

In this fast moving environment, you must be accurate and flexible, able to meet 
deadlines and capable of making a significant contribution to the development of 
the Group. 

Contact Caroline Foley-Como 1 or Carole Edmunds on 071-583 0073 (Day) 
081-455 7064 (Evenings) or send your CV In complete confidence to: 

16/18 New Bridge Street, EC4V 6 AU. Fax: 071-353 3908. 


GROUP FINANCE PROFESSIONALS 


CENTRAL LONDON 


& EXCELLENT 


This substantial quoted UK Pic has recently restructured its Group Finance function. As a result, two outstanding finance professionals are required to undertake redefined and 
heightened group responsibilities. The positions, outlined below, present first class opportunities for individuals to take significant strides forward in their already successful careers. 


GROUP FINANCIAL ACCOUNTANT C. &50K+BENS 

Reporting to the Croup Financial Controller, this role carries overall responsibility for the 
preparation and presentation of the Group’s consolidated financial statements and reporting. The 
scope of this position includes supervision of the head office accounting department and direct 
responsibility for all aspects of UK and US reporting. Additionally the incumbent will take a leading 
role in major ad hoc projects. 

This is a senior role having considerable impact on group finance matters and high level liaison 
points throughout the group's operations. Applicants must be graduates, ACA qualified and possess 
the highest degree of drive, ambition and energy. It is likely that the successful candidate wflj have 


GROUP MANAGEMENT ACCOUNTANT C. &35K+BENS 

The purpose of this role is to provide quality financial and operational information to ma n ag em ent. 
Reporting to the Group Accounting Manager and with one direct report, the primary responsibility 
wfll be to ensure the prompt production of group man ag em ent accounts. Additionally there will be 
involvement in all forecasting and budgeting including the continuing development of group 
systems. Experience of Micro Control will be an advantage. 

You will be a qualified accountant with at least three years’ post-qualified commercial 
experience, preferably gained In a group environment and in the management accounting area. There 
will be considerable scope for input into the improvement of the management information 
disciplines, and candidates must possess initiative, organisational ability and strong interpersonal skills. 


had significant commercial exposure and at least five years' post-qualified experience. 

Interested applicants should contact Jon Boyle aca on 071-379 3333 or send a full Curriculum Vitae to him at Robert Walters Associates, 25 Bedford Street, London WC2E 9HP. 
Fax 071-915 8714. 


ROBERT WALTERS ASSOCIATES 


Whitechapel Corporate Services Limited 

SENI OR EX ECUTIVE - 
COMPETITIVE PACKAGE 

Whitechapel Corporate Services Limited, aa expanding financial services 
subsidiary of Sedgwick Group pic, ate seeking ro appoint a Senior Executive to 
play a leading role hi ibe company's development. 

The company has been highly successful in developing a range of financial 
products and anticipates a period of significant growth. 

The ideal ca ndidate should be a qualified accountant possessing several yean 
project marugeinefl [/consultancy experience involving taxation, treasury and 


The role represents a unique opportunity to join a dynamic new business 
venture with salary and benefits to reflect the position. 

Please apply in writing, in strictest confidence, enclosing full curriculum vitae 
lot 

Managing Director 

Whitechapel Corporate Services Limited 
2 Myrtk Street 


Isle of Men 
IM1 1ED 


APPOINTMENTS 

WANTED 


LOOK! 

ACMA. 9 years Post Qualification 
Experience seeks role as Financial 
Director/Controller. Any locations. 

Far OS 1 7631 187 or write to 
Box A2023, Financial Tanas, One 
Sonthork Bridge. London SEI 9BL 


Manager 

International 

Tax 


Cambs 


£35-^40,000 pa 
Plus Bonus and Gar 


Our cflent, a multinational group. Is one of the world's leading names In 
Its sector. Its mission is to be the best and the most profitable in this first 
moving and changing service field. It sees the route to this as staff 
excellence, the effective application of technology and the creation of 
long-term relationships with business partners. 

The growth of the group and its fixture plans make It essential that there 
Is a high level awareness of the tax implications in each country of 
operation. This new rote is therefore an excellent career opportunity for 
the tax-specialist to contribute to the bottom-line. Repenting to the Head 
of Group Taxation, the key responsibilities of the rote will Include: 

- Control of and proactive planning for international tax. 

- Ongoing review of the group's tax structure and operation. 

- Management of a prog ram me to Increase international awareness of 
tax issues. 

- Managing the VAT position of the Group particularly in the single 
European market. 

The successful candidate should have 

- An Accounting Qualification (ACAMCCA) with a minimum of 5 years 
Corporation Tint experience. 

- A thorough knowledge oflntematianal taxation and VAT. 

-An up to date knowledge of relevant legislation with the ability to 
Interpret and apply this to the business. 

- RxcHignt mterpenawial and co mmunicati on skills with a high level 
of self-motivation and a strong commercial aw ar eness. 

- Proven negotiation skills. 

You win be leading a small team, hence people management skills are 
Important 

A foil relocation package win be available if required. 

If you have a keen interest in thin ever progressing environment you 
should write to Karen Wilson. Hoggett Bowers. George V Place, 
4 Thames Avenue, Windsor, SL* xQP enclosing a recent CV and a note 
of current salary quoting Ref WKW/ 4080 /Fr. 

Ho££ett Bowers 

EXECUTIVE SEARCH AND SELECTION 


RECENTLY QUALIFIED 
ACCOUNTANTS 

Opportunities in Treasury and 
Business Support 


Salomon Brothers is one of the world's most powerful and 
profitable financial institutions and a preeminent force in 
global securities markets. We have a number of 
opportunities for talented, recently qualified accountants 
who wish to develop their careers in the financial 
management teams which work closely with the traders. 

Previous financial institutions experience is not necessary; 
strong quantitative abilities, along with well-developed 
interpersonal skills, are essential. You will demonstrate 
high levels of academic and professional achievement, the 
wtUtngness to work bard and the determination to succeed. 
For individuals needing to move to London, relocation 
assistance can be made available. 

If you want to progress, as far and as fast as your 
talents allow , seize the initiative by writing to our 
advising consultant Janet Bullock, quoting Ref: 280, at 
BBM Selection, 76 Walling Street, London EC4M 
enclosing a full curriculum vitae, which should include 
contact telephone numbers. Any applications sent 
to Salomon Brothers will be forwarded to BBM. All 
applications will be bandied in the strictest confidence. 


Salomon Brothers 




.£ e.xcelleni 
-f bonus 
-r benefits 


FINANCIAL 
CONTROLLER 
London 
c £35,000 + car 

This 13 an exrionq opportunity 10 
join the management of an active 
and highly profitable. Property 
Development company and to 
contribute to a number of 
substantial new projects. The 
position requires a business - 
odantated Chattered Accountant 

aged 28 - 35 with the personality to 

fit into a small, dedicated and 
enthusiastic team. (Rel DES) 

rTTTPTT 

ACCOUNTANT 
North Kent 
To £35,000 + car 

Our client Is a substantial and 
growing media group which now- 
seeks an amhitimia qualified 
accountant aged 30-10 to take 
responsibility for a small central 
team producing consolidated 
monthly management accounts, 
statutory accounts, budgets and 
forecasts. Candidates will have 
strong interpersonal and 
technical skills and the ability to 
grow with the group. (Ref. DEIS) 

FINANCIAL 
ANALYST 
West London 
£28,000 + car 

A household name Pic in FMCC/ 
Manufacturing has identified the 
need for an outstanding young 
Chartered Accountant age 25 -28. 
for a broad role encompassing 
capital expenditure appraisal, 
acquisitions and disposals, 
budgeting, planning, manage- 
ment and fiwaiv-ioi accounting. 
Prospects are excellent for an 
individual with a first class 
academic record and a blue chip 
cflent portfolio. (RfitKJI 
For further information please 
telephone on 071-831-2323 or 
sand your CV to Hudson 
S hr i bm a n , Verncm House. 


Sicilian Avenue. London WCl A 


2 OH. (Fax No. 071-404-5773). 

HUDSON SHRIBMAN 










VIII 



FINANCIAL TIMES FRIDAY MAY 6 1994 




Financial 

Controller 

Dublin 




Biotsin/Syncor is a young, dynamic and highly successful company 
specialising in the development, manufacture and distribution of novel 
itiagnnsiM * pattens fofihc iwiBniarin aalmaricgL 

The Jon entails the day to day financial management of the business, 
production of management information, responsibility fox maintaining 
relations with the company’s banks and overseeing all contractual aspects. A 
key element of the position is the development and implementation of 
effective financial and co mmer ci a l grangtet 

The Candidate will be a high calibre university graduate, ACA with a 
minimum of 4 years POE. Experience in all aspects of accounting in the 
manufacturing and export business and preferably having worked with a 
foreign subsidiary and on acquisitions. The successful crafidato will be a 

bright quick learner able to uadeatand brood business issues and eujoy 

operating with total commitment in a relatively informal style. Good 
leadership, motivational and communication kHHb and the ability lo work 
closely and productively with the President will be essential The candidate 
will be pan of the management team and wflj be expected to play a strong role 
in the growth of the business and in the international aspects of the 

company business. 

Remuneration win consist of a competi t i v e basic salary phis the normal 
benefits of private health insurance, pension and life insnranoe. 

Please reply in confidence to: 

Michael Taylor, Pharmaceutical Recruitment, 4 Priory Hall, Stifiorgan Road, 
StilJagna, Co. ItaHia Tel: OJU 353 1 2884S6 7, Fwc P1P353 1 2883310 





Financial Management Opportunities in 
a Diverse Investment & Trading House 


Our diem is a long established financial services group providing fund management, has deyelopeda i^^^^^evolving financial world. As 

money markets, equity and gilt edged market making, derivatives broking and « deal with the ^ 

consultancy to a broad range of Institutions and corporates. A new management team a result of these changes, three new appo 


Deputy Group Financial Controller 

Key aspects of the role will be monthly management 
reporting, budgeting, co-ordination of statutory 
accounts and consolidation, tax computations, 
liaising with subsidiaries, and ad-hoc project work. 
Candidates will be qualified chartered accountants, 
aged 26-30 with a good knowledge of accounting 
standards, report writing and corporate tax with the 
ability to work on their own initiative and work to 
right deadlines. Ref: J/071. 


Assistant to Divisional Controller 

Working in the core money markets business the 
appointed person will be responsible for daily manage- 
ment reporting including trading profitability and capital 
usage, trade support covering bond trading, off balance 
sheet and customer dealing and compliance issues. 
Candidates will be qualified accountants or graduates 
with a minimum of 2-3 years relevant experience. They 
should also have good communication skills and be a 
flexible team player. Reis J/07Z. 


Internal Auditor 

Reporting to the Croup Internal Auditor the appointee 
will be responsible for assisting in performing tech- 
nology. operational, financial and compliance audits to 
ensure group assets are adequately protected. This will 
include all aspects of the A5400 computer system. 
Candidates should be qualified accountants with 
relevant financial services audit experience or 
alternatively may be qualified by experience. 
Reft J/073. 


EXECUTIVE APPOINTMENTS TO £150,000*1 

JOB SEARCH r.‘ADE EASY IV/ r*. OUP EXPERT Hr l P§>- 




For over 14 years the larges! network of 
career centres In the UK Has specialised 
in identifying unadverdsed vacancies 

for top executives. Ring now for a Britain s muuber one 

confidential mooting without cost: executive career service 
32 Savfe Row, London W1X1AG Tafc 071 734 3879 fine 071 734 2620 


In the first instance, please contact 
Jonathan Williams or send foil career details, 
including remuneration to him, 
quoting the appropriate reference number. 


v- • "< * 

ZjS'.r 


Michael Page Finance 

Specialists in Financial Recruitment 
London Bristol Windsor St Albans L em heAcad Birmingh am 
Nottingham Manchester Leeds Glasgow & Woddwide 


Michael Page Finance, Page House, 
39-41 Parker Street, London WC2B 5LH. 
Telephone 071 S31 2000. 

Fax 071 405 9649. 


- . • ’' r - • 


Finance Director 


W Yorkshire 


c £35,000 + Bonus + Car 


Our client is a highly autonomous £7 million 
turnover engineering subsidiary of an 
acquisitive, rapidly expanding UK Pic and 
operates through four divisions. Following the 
promotion of the present incumbent they seek 
to appoint a Finance Director. 


Reporting to the Managing Director, you will 
assume full responsibility for the financial 
management of the business. More specifically 
your duties will encompass management and 
statutory reporting, the development of 
computerised information systems and the 
maintenance of strict financial disciplines 
and controls within the company. 


Candidates, aged 324- will be graduate qualified 
accountants with strong experience of financial 
management gained in a component 
manufacturing environment along with a high 
degree of computer literacy. Well developed 
communication skills along with a high degree 
of personal presence and maturity will be 
essential to make a significant contribution to 
the profitable development of the company. 

Interested candidates should forward a compre- 
hensive curriculum vitae to Stephen K Banks, 
ACMA, at Michael Page Finance, 6th Floor, 
Aquis House, Greek Street, Leeds 
LSI 5RU. Reference 188158. 


Michael Page Finance 


SpecUl*ta In Financial Recruitment 
London Briwl Winiteor 9t Alboni Lcnfhcrivrad 


•*< ..v. -• ... v* .*«. "I* — 


Group Accountant 

Hong Kong/London £ Excellent Package 




Our client is a powerful, global investment manager with 
offices in the world’s key financial centres. It currently 
manages over US $30 billion of funds for a wide range of 
both retail and institutional clients. With the 
polarisation of the fund management industry between 
global providers and small niche players, our client is 
uniquely positioned as a multi-market, multi-product 
business able to deliver tailored investment solutions. 

Due to the ongoing development of the business a 
requirement has now arisen for a Croup Accountant. 
This role will be initially based in the Hong Kong office 
with a view to transferring back to London after 
approximately six months. The special challenges will be 
to successfully migrate the non statutory functions back 
to the UK and to become actively involved in 
transferring the group reporting from the current Lotus 
based package to the new global general ledger system. 

Other responsibilities will include: 

•Analysis of local management accounts for ft JH 

Senior Group Management. 


■ Consolidation of group management reports, quarterly 
reforecasts, annual operating plan. 

• Staff management. 

The ideal candidate will be a graduate qualified 
accountant aged 26 to 32 with around 2-3 years post 
qualification experience. They must have detailed 
knowledge of Lotus and general ledger systems coupled 
with consolidation and management reporting skills. 
This is an exciring opportunity for a well motivated, 
adaptable and proactive individual who thrives on 
change and challenges. 

This role will not only offer the immediate challenge of 
working in a dynamic city but the future prospect of 
progressing within one of the world's largest financial 
institutions. Remuneration will include a competitive 
base salary and ocher banking benefits. Interested 
applicants should forward their CV to 

Stephanie Warren, Michael Page Finance, 

P Page House, 39-41 Parker Street, 

London, WC2B 5LH. 


Michael Page Finance 


Speculaa in Rnaocial Reavitmenc 
i Bristol Windsor 9t Albans Lcatherfaead 




Financial Accountant 

South West London c £35,000 + Bens 


Our client is a new joint venture sec up within the 
sen-ice sector between three large international 
groups. The operation has already established sites in 
four locations in three European countries. The 
projected turnover in the first foil year is in excess of 
£40m and as part of the plan to establish a head 
office finance team in London, the company is 
seeking to recruit a Financial Accountant. 

Reporting to the Group Financial Controller, the 
responsibilities will include: 

■ Establishing financial controls at all four 
international sites. 

• Establishing systems and models for monthly 
reporting of group operations. 

• Statutory reporting for UK & Belgium. 

• Tax reporting for UK, Belgium and France. 

• Co-ordinating multi-currency treasury 
matters. 


• Co-ortdinatipg contracts with third parties. 

• Co-ordinating all financial accounting aspects for 
France, UK and Belgium. 


The successful candidate will be a qualified 
accountant with excellent communication skills, 
able to speak french fluently and have extensive 
experience of international accounting from both a 
professional and commercial aspect. Exposure to 
French or Belgian accounting will be preferred 

This is a rapidly growing business and it is essential 
chat the individual has a flexible and enthusiastic 
approach ro the work. The opportunities lie within 
both the business and the shareholding companies. 


- 


If you are interested in this position please send your 
curriculum vitae, to Peter Gerrard, Michael 
Page Finance, Page House, 39-41 Parker 
Street, London WC2B 5LH. 


Michael Page Finance 


SpccLilba in Fmancul Rccniumcm 
Lo n don Bvktol Windtor St ASm LcidicihMd Bindagfaim 
Mowing tram Manchester Leeds Glasgow & Worldwide 




Finance Director 


London 


c £60,000 + Car + Bonus 


Young Ambitious Accountant 

£30,000 Package 

Surrey 


Lombard 


BUSINESS - MOTOR - PERSONAL 

FINANCE 


Our diem. Lombard North Central PLC, is one of the country's premier finance bouses, 
providing a diverse portfolio of quality financial products to afi areas of the economy 
through their Business, Motor arid Personal Sectors. 

The size and diversity of the Lombard group, combined with the increasingly technical 
regulatory framework within which it operates, has lead to a vacancy for a voung, recently 
qualified chartered accountant to work dosely with the Assistant Director "of Financial 
Control to provide technical expertise to the group. This broad based role will also involve 
quarterly consolidations, US GAAP analysis, competitor comparisons and ad-hoc projects. 


Suitable candidates for this exciting opportunity within a major subsidiary of the National 
« cstminster Bank group will have an excellent academic record and a ‘Big 6’ background. 


combined with the ability to communicate effectively ar all levels. Experience of leasing 
and instalment credit would be an advantage. 


Please send or fax details to Keith Tracy, 

Heathficld Hargreaves Ltd, Chaucer House, 6 Bolero Road, Haywards Heath, 
West Sussex, RH1 6 IBB. Tel: 0444 416636 Fax: 0444 416002. 


Applicants with a disability will be guaran 
“v provided they are suitably qualified/ exper 


uaramood an interview 
’experienced. 


Lombard -Working to Achieve 
Equal Opportunities 


heaxhfield HARGREA’ 


Limited 


London North .imp U 



Our client is a profitable, autonomous £150zn 
turnover subsidiary of a prestigious pic. The 
business is international, has a dynamic, quality 
driven culture and is recognised as a market leader 
in its field, providing services to a wide customer 
base which includes many blue chip organisations. 

The Finance Director, reporting to the Chief 
Executive, will be expected to make a significant 
personal contribution to profitability and to the 
growth of the business, which will be both 
acquisitive and organic The Board works as a 
team and the support: provided by finance is 
fundamental ro the continued development of 
existing product lines, added value services and 
unparalleled excellence in customer satisfotion. 

At die operational level, responsibilities 
include die leadership and motivation of a raft 


large ream whilst constantly improving the quality 
of management information, planning, working 
capital management, financial control, statutory 
reporting and systems development. 


We seek an ambitious, qualified accountant aged 
35-45, with demonstrable success in all the above 
areas, gained within an organisation of similar 
culture and high professional standards. 
Flexibility, excellent interpersonal skills, 
self-motivation and a desire to make an 
impact on the business are essentiaL 


Applicants should send a foil CV quoting 
reference 187000 to Diane Forrester ACA, 
Executive Selection Division, Michael Page 
Finance, 39-41 Parker Street, 

3 London WC2B 5LH. 


Michael Page Finance 

Spedalbo in Financial Recruitment 




DENBY 


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FINANCIAL TIMES FRIDAY MAY 6 1994 




Finance Director 


Horsham, West Sussex 

Our diem is a fast growing player in the rapidly 
expanding and exciting business of direct telephone 
insurance broking. A subsidiary of a Pic which has 
strong institutional backing and specialist interests in 
niche market insurance services, the company is 

currently experiencing significant growth. 

As a result of this expansion, they wish to appoint a 
Finance Director. This is a key role in devdoping the 
full potential of this business. Reporting to the 
Managing Direct or, you will take full responsibility for 
the finance function with a strong emphasis on 
implementing financial systems and stringent controls 
ro ensure chat the back office performs a highly 
effective support function for the front office. Direct 
reports include a Finance Manager and 6 staff. 

This is a highly proactive role which requires an 
assertive and determined characcerwho can 
demonstrate the ability to initiate and manage 
change in a challenging and progressive business. 


to £35,000 + Car 


The successful candidate will be an ACA, probably 
aged 28-35, with a good exam record preferably gained 
within a Big 6 environment. You will have a minimum 
of 3 years post qualified experience probably gained in 
a commercial environment. Candidates from practice 

will be considered but will have to demonstrate 
significant financial management and commercial 
ability. Experience of the insurance industry would be 
an advantage. 

On offer is not jusr a position with significant growth 
and hence high earning potential, but the opportunity 
to genuinely influence the development of an exciting 
and growing business. 

If you feel you have the background and ability to 
satisfy these requirements, send your curriculum vitae 
to Jonathan Ross, Michael Page Finance, 

Cygnet House, 45-47 High Street, 
Leatherhead, Surrey, KT22 8AG, quoting 
reference J 1 884 1 2. 


Michael Page Finance 

SpcctaliMs in Rruuvdai Rccruicmcnr 
lifted Winebar St Albans Leatheffaead Bsnungha 
jfaatm Manchester Leedi Glasgow & Worldwide. 


Head of 
Group Audit 

East Anglia 


Package up to 
Cj£6o,ooo pa 


A truly international group which has operations in iio countries 
worldwide and continually demonstrates strong financial performance. 
Our client operates within a rapidly changing consumer product and 
service env iro nment where the energy and enthusiasm of Its management 
team ensure that It Is at the forefront of new developments In Its markets. 
As a result of an Internal promotion dlls major career development 
opportunity has arisen. Reporting directly to the Chief Executive with a 
dotted line to the Finance Director you will be responsible for the 
effective direction and development of a number of teams of specialist 
Auditors. 

The worldwide audit of the group and the development of audit 
procedures and processes are the main objectives but additionally you 
will provide a wider consultative and advisory service to line 
management and ensure audit input to Performance Engineering 
projects. 

In order to effectively perform this rote you will have broad experience 
of general business management as well as Internal audit and will be a 
Qualified Accountant and/or MBA. You win also demonstrate: 

- A balanced view between commercial reality and essential financial 
control. 

- Excellent Interpersonal and relationship management skills, with an 
ability to identity and respond to the needs of line management 
worldwide. 

- An ability to devise audit sch e dules which reflect strong risk 
management awareness foon-flnandal as well as financial) with an 
ability to prioritise accordingly. 

- A high level of perception, able to assess new business risk. 

- A lively Independent mind with the ability to debate sensitive, 
complex issues at the highest level 

- international experience with cultural sensitivity. 

The role necessitates regular international travel. 

A lull relocation package wQl be available if required. 

If you would like to discuss further how this opportunity could fit with 
your career plans, you should write to Karen Wilson, Hoggett Bowers, 
George V Place, 4 Thames Avenue; Windsor, SL4 iQP enclosing a recent 
CV and a note of current salary quoting Re£ WKW /4079/FT. 



Hoggetf Bowers 


EXECUTIVE SEARCH AND SELECTION 


tant 

silent Package 

I jp-k }-, f>! 

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INTERNATIONAL FINANCE OPPORTUNITIES 

MAJOR FMCG GROUP 

Former Soviet Union 


THE COMPANY 

Formed a little over 7 years ago, this highly successful trading organisation 
operates within a number of rapidly expanding FMCG markets. The group is 
enjoying a phenomenal rate of growth in emerging markets of the Former 
Soviet Union. The company now needs to make a number of strategic 
appointments to strengthen the financial management team. 

FINANCIAL CONTROLLER 

ST PETERSBURG £35, 000-£40, 000 EX-PAT 

This role will assume full financial responsibility for an operation turning over 
in excess of £l5m and expanding rapidly. Key challenges will include the 
production of accurate information for operational management, implementing 
budgeting and strategic planning routines and the development of a proactive 
finance department 


PROJECT ACCOUNTANT 

MOSCOW £30,000 EX-PAT 

This is a key role to help establish and run a bottling operation in Moscow. 
The responsibilities will be all encompassing to include a significant element 
of ad hoc projects. Previous experience of FMCG operations would prove 
advantageous. Significant commercial liaison can be anticipated in this role. 

FINANCE MANAGERS X 3 

VARIOUS LOCATIONS £25,000 EX-PAT 

These opportunities are a direct result of the continued growth in the business 
activities. Ideal candidates will be newly/recently qualified accountants with 
strong commercial acumen, and well developed communication skills. This is 
an excellent entry point for accountants who wish to gain international 
experience in a truly dynamic environment 


In addition to the salaries indicated above, a comprehensive ex-pat benefits package will also be provided. Interested candidates should contact Jane Braith waite or 
Michael Shoebridge on 071-408 1312 or 081-993 0639 (eves/weekends). Alternatively said your CV to the address below, indicating why you feel you are able 
to make a contribution in the above roles. 


MARKS ♦ SATTIN 

FINANCIAL RKCRl ITMLNT CONSULTANTS 
IS HANOYLR STRLI-T. LONDON NY 1 R 9IIG. TKL: 071-408 1312. FAX: 071-335 1301 


Manager - Management 
Accounting 

DUBAI 

The Emirates Group 

The Emirates Group comprises Emirates, the 
award-winning international airline of the 
United Arab Emirates, voted Executive Travel's 
‘Airline of the Year 1994'. and DNATA. Dubai 
National Air Travel Agency, a major travel 
agency and handling agent ax Dubai 
International Airport. 

The Job 

Reporting to the Finance and Information 
Technology Director at senior management 
level, the Manager - Management Accounting is 
responsible for developing the Group 
management accounting support for the 
business: coordinating financial planning and 
budgeting; identifying and providing for the 
ongoing requirements of business managers. In 
addition, the Manager - Management 
Accounting will be required to coordinate the 
activities of the business Management 
Accountants and provide financial analyses to 
managemenL 

The Person 

We are looking for a person with an MBA 
majoring in finance, who should also be a 
qualified ACMA or equivalent With experience 
in major multinational industries, and at least 10 
years' working experience in Finance including 
extensive line mana g ement experience, 
applicants should be familiar with the latest cost 
management concepts and have an in-depth 
knowledge of financial systems. All to be 
combined with a strong customer service focus 
and excellent interpersonal and communication 
skills. 

The Package 

This position is based in Dubai, the 
cosmopolitan hub of the Middle East which 
provides an excellent way of life, a demanding 
work environment with extensive leisure and 
recreation facilities. 


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Growth 

isthe Challen 


REVENUE ACCOUNTING CONTROLLER 

An established leader in the UK's telecommunications and cable TV industries, 
NYNEX Cab la C o n ima has already brought better cable TV and telephone systems to 
hundreds of thousands of homes and businesses throughout the UK. It's a highly 
successful high transaction volume business involving complex multi-site cash receipt 
and revenue reconciliations. Due to massive expansion we are now looking for a 
qualified accountant to join our Revenue Accounting Office in the Wimbledon 
Headquarters, shortly moving to Tohvorth. 

Your rule will involve the management of the revenue accounting section which not 
only tracks all revenue, cost of sales and aged debt but also controls the AR 
reconciliation process. You will be expected to Deputise for the Head of Department 
and appoint line managers for key functions. 

You wilt supervise and plan RAO activities For our North and South divisions. 
Controlling franchise accounting procedures, you'll review franchise and retail outlet 
cash security arrangements. 

ACA, ACCA or CIMA qualified, you should have a minimum of 5 years experience 
gained within a similar high transaction volume business preferably telecom or public 
utility experience. Relevant practical experience of both financial and management 
accounting would also prove highly desirable. An achiever, who is able to 
demonstrate the initiative required to lead us through this growth phase, you will 
need to prove totally reliable under pressure. 

in addition to a salary of C.34K you will enjoy benefits including company car, pension 
scheme and private healthcare. What's more, you'll find the prospects for professional 
and career development hard to equal anywhere else. 

To apply, please send your CV, day and evening telephone numbers quoting reference 
Roc 176 to: Alison Townhill, Senior Personnel Co-ordinator, NYNEX CabteComms 
Ltd., Wimbledon Bridge House, 1 Hartfidd Road, Wimbledon, London 5W19 3RU. 



NYNEX CabieComms. 

Your Voice, Our Vbkm. The Right CoonectJon. 


APPOINTMENTS WANTED 








Young Dynamic ACA 

Seeks position with expanding smallAnedium sized company/group. 
Excellent communicator, big 6 background, 
commercially aware. 

Please apply to Box A20L5, Financial Times, 

One Southwark Bridge, 

London SEI 9HL 


DIRECTOR OF FINANCE 

INFORMATION AND COMPUTING: ROYAL HOSPITALS NHS TRUST 
SUBSTANTIAL SALARY PACKAGE 


St Bartholomew's, die Royal London and the London Chest hospitals have a combined 
budget of £210 million, and employ over 6,600 staff. We were awarded Trust status on the 
1st April 1994 and are now part of the Royal Hospitals NHS Trust and seek applications for 
the Director of Finance, Information and Computing with the Royal Hospitals NHS Trust 

THE POST 

The postholder will be responsible to the Chief Executive for all aspects of the Trust’s 
financial activities and will act as Financial Advisor to the board. In addition, die 
postholder will be required to contribute to the development of the Trust's strategic plans 
and in the formulation Implementation and review of the Trust Financial Information and 

Computing Strategies. 

THE PERSON 

To succeed in this post you Mil need to be a progressive qualified accountant with senior 
financial management experience in the NHS or a comparable large organisation 
preferably at board leveL In addition, you should demonstrate excellent leadership, inter- 
personal and communication skills and an ability to work under pressure and as part of a 

team. 

If you think you match the specification above and would like an informal discussion and 
job Information pack please contact 

Gerry Green, Chief Executive, The Royal Hospitals NHS Trust, 5th Floor, Alexander House, 
Whitechapel, London E! IBB. Teh (071) 377 7422. 

Application is by CV and the dosing date for receipt of applications is the 19th May 1 994. 

Working Towards Equal Opportunities 


Assistant Controller 

PARIS 350 KF± 

■ THE COMPANY: A medium-sized international French group (TiO 650 MFl, world leader 
within a specialised niche in industrial supplies with 20 subsidiaries worldwide. 

■ THE POSITION: Reporting to the group controller, you will be responsible for implementing 
a new monthly consolidation and reporting package, for analysing ike results af several operating 
uniu and for assisting the group in its internal and external development worldwide. 

■ THE CANDIDATE: A qualified accountant {ACA, G7M/L.J with an initial experience in a 
public accounting firm, ideally followed by financial experience within a multinational, you speak 
French and are looking to develop a career in continental Europe. 

■ Interested candidates should contact Ivor ALEX in Paris on f 33.1 1 42S9J59.I7 or send their 
curriculum vitae quoting reference I67S/IAFT by fax on f 33.1) d2.89.09JI5 or to NORMAN 
PARSONS. 6 rue Paid Baudy. 75008 PARIS. 

fffil 

SSI GROUPE ROBERT HALF 


WORLD LEADER iN FINANCIAL RECRUITMENT WITH OVER T 50 OFFICES ON 3 CONTINENT- 


An attractive lax-free salary will be paid, 
together with fringe benefits which include folly 
furnished accommodation, company car, 
medical / accident / life insurance cover, school 
fees contribution, free annual leave travel and 
concessional travel usual 10 the industry. 
Applicants should send a folly detailed resume 
to arrive not later than 15 days from pub I icaii on 
or this advertisement, quoting the reference 
code 'MMA / FT* to : 

Personnel Manager (Commercial 
& Service Departments), 

Emirates, 

P. O. Box 686. 

Dubai, United Arab Emirates. 


if 

Emirates 


THE fINEST IN THE SKY. 


FINANCE DIRECTOR 

designate 

PROPERTY area £35,000 + benefits 

THE COMPANY 

We are a weS established design company based In London's 
West End. The company seeks a new Finance Director to 
complete Its management team. Consolidation of recent gains 
and expansion of market shore ore strategic objectives. 

THE JOB 

Reporting directly to the Group Board the candidate. Initially FD 
designate to the main operating company, win have overall 
responslbOtty for group finances, administration and company 
secretarial duties. Key tasks are profit forecasting, treasury 
management and improvements to the budgetary control 
system. 

THE PERSON 

You should be a qualified accountant, preferably educated to 
degree level, with a minimum of 3 years POE. Strong hands-on 
management, interpersonal skffls and a need for achievement 
are mkitmum personal pre-requisites. 

PtoaM send, In confidence, a comprehensive career resume and 
wJary history to: 

Manootog Director, 27 Queen Anne Street, London W1M9FB 


The Top Opportunities 
Section 

For Senior Management 
Appointments 
For advertising Information call: 
Philip Wrlgley ora 071 873 33 G 1 






FINANCE DIRECTOR 


FINANCE DIRECTOR, CENTRAL EUROPE 


Based in Barking, Essex 


AHracrtvm Salary 


Germany 


with overall financial control 
(turnover In excess of ElOOm) 

The UK activities comprise 
international transportation 
and inland purchase of 
road haulage, together 
with forwarding and 
related activities. 

The position requires 
a person of proven 
management skills and a 
recognised Accountancy qualification. 
A reasonable fluency in German 
is essential 


The ideal candidate would be 
35/45 years of age. Remuneration 
will be circa £40k plus bonus 
and usual fringe 
benefits for this 

senior position. 

If you wish to 
be considered please 
apply with a full CV 
and current salary. 


DA Computer Corporation is amandy the £& 

The DeUbnmd is one of the pre-eminent names m the industry. Founded ml 984 m AiconTexas, 

i Lrtand potion in die UK in 1987. The company 

and its international businesses now represent about 40% of the company S $2.9 button 


; 


The Role 


The Person 


to: Personnel Manager, 
Hapag-Lloyd (UK) Ltd. 
.Hapag Uoyd H 


.-lapag Uoyd House, 
Cambridge Road, Barking, 
Essex IG11 8HH. 


The Company operates a no-smoking 
policy. 


MM Hapag-Lloyd (UK) Ltd. 

The Symbol of Reliabffity 


The internal promotion of the present FD baa resulted in dus wy recent 
opportunity: 

■ Re portin g to the Managing DirectPt, Central Europe and the European VP> 
finance you will have total rggpooabUity far all financial analysis, acc o u nting 

credit related activities fix Germany, Switzerland, Austria Kid Eastern 
Europe. 

■ As a key member of the Carnal European Management ream, will be 

involved in the development of future business plans, and be expected to 
provide strong and influential cancributkxi ip dcaaca making |yedot n i nan dy 
in the seas of saleaaad *r*nrtr*c<ng. 

■ fa n if nr * * * fay 6™*****"*! polk****! T y ,TyrrBi controls to ttupotate 

eranrip^ r ^ ^ip pnff ImWa lmfrx (mJ channels DO Optimise GlUiJCial pfilfolDftaOOe. 


■ A nffl - 10 yean nose qualification axperimeg. Ac most 

recent Within an international, fast moving, commercial environment. Hands 
on experience of managing a muld-ste, multi-country team. In^emive track 

reood of survival and cjita piogrtraion in a dynamic, roulri- 


cultural company- 

■ Ideally aged between 35-40 years old, yon should he a qualified 
accountant of graduate calibre, preferably with an MBA. Solid grcundfog of 
US (GAAP) and local staaaatyieqiutcmena are prerequisite, perfapa gained 
in a US c* “Kg 6” firm. 

■ f wa-nr^Hon . coupled with wrong inWi^mcKial skills and a 
highly self-motivated maimer. Fluency in English and, ideally. Goman. 

French language skills would also be of interest. 


The FT can help yon reach additional business readers in France. Our Link wilh the French business newspaper, Les 
Echos, gives you a unique recruitment advertising opportunity to capitalise on the FTs European readership and to 
Amber auger the French busin e ss world. For iafomtatian on rates and Anther details please telephone: 
ftuBp Wrigkyoa 071 873 3351 


Assistant 

Group 

Financial 

Controller 


This is an exceptional career opportunity for a qualified accountant 
with at least 5 yean post qualification experience. 

You will need a strong and broad finanriai background with an 
ability to see die wider perspective as well as an appreciation of 
technical and detailed Issues. 


More Importantly however this is your opportunity to demonstrate 
that you can be credible at the highest level You must also have 
owiiwit interpmonal «iriiis gnahiing you to be firm but diplomatic 
with senior financial and line management around the world. A 
sensitivity to International cultural differences is likewise essenriaL 


Oitr Hlonf, q maj or tatetnaMCPal group and airil lencwm name in the 

service sector, has a strong policy of divisional autonomy and 
empowerment. This in turn generates the need for this position 
which will act as a key liaison point between group and regional 
controllers to ensure that financial integrity is consistently 
maintained to the highest level during a period of major growth and 
change. The role offers great scope for initiative and new ideas, and 
therefore demands that the successful be a self-starter 

with strong influencing skills and commercial maturity. 


East of England 


Additionally you will lead a small team and have certain line 
accounting responsibilities at Group level 

Our cUgnt has a philosophy that the customer comes first and all 
company policies are formulated with customer service in mind. 
Having the best staff is a crucial factor in delivering a demonstrably 
better service to customers than competitors. Training and 
development of staff Is therefore a main objective and the individual 
who succeeds in this role can expect further personal development 
opportunities. The role will include a limited amount of 
international traveL 


c£35,ooo pa 
Plus Bonus and Gar 


A full relocation package is available if required. 

If you fed that you utxdd like to discuss this outstanding opportunity 
further please write to Karen Wilson. Hoggett Bowers, George V Place, 
4 Thames Avenue, Windsor; SL4 iQP enclosing a recent CV and a 
note of current salary quoting Ref WK.W/4081/FT. 



Bowers 


EXECUTIVE SEARCH AND SELECTION 


H • I • L • L • M • A • N 
S*A*U»N»D»E»R»S 


FINANCE DIRECTOR 


30-40 


Salary: to £50,000 


Our client, a major Lloyd's pic broking group is launching a direct marketing/service company 
based in Northampton. This new, automous business will have substantial financial backing to 
support its ambitious growth plans in motor and personal lines insurance. This is a superb 
opportunity to join the senior management team at Director level at the start of this exciting 
venture. 


Reporting to the Managing Director, you will have full accounting responsibilities, including cash 
and taxation management The successful candidate will be a qualified chartered or certified 
accountant with experience in a high volume transaction service business, ideally gained within 
insurance/financial services. Experience of setting up nominal ledger and other accounting 
systems is also desirable. 

A team piayer, with strong interpersonal skills, the appointee must have the ability to liaise 
effectively with external advisors as well as colleagues. A "hands on" approach is essential for 
the new start-up culture. 

The position also offers an annual bonus, profit share, executive car plus excellent benefits. To 
apply please write with a full CV to Peter Hillman quoting reference V5460. All enquiries will be 
treated in the strictest confidence. 


78/79 Leadenhall Street, London EC3A 3DH 
Telephone: 071 929 0707 Facsimile: 071 929 1666 


Financial Controller 


SOUTHERN HOME COUNTIES 


^^Wurdienib a significant subsidiary of a major Financial 
ISA Services PLC with total asset! in excess of £15 biffion. 
With a commitment to an impressive growth plan over the 
next five years, it is now wiring to appoint a Financial 
Controller. This individual will contribute significamlv to the 
strategic planning and day to day commensal derision making 
process affecting the business. 


The position reports to the local head of the business and 
will be pivotal in the formulation of the hwiness in a rapidly 
developing market. Responsibilities cover all aspects of 
Finance. Key tasks will be to bring a dear financial focus to 
(he management of the organisation and to develop an 
efficient finance team. 


- FINANCIAL SERVICES - £45,000- £ 50,000 package-Ecar 

or Financial The successful candidate will be a graduate qualified ACA, 

£15 billion. aped early thirties to early forties, with a record of 
a over the achievement probably, although not necessarily, joined 

inrial within a Fin anc i a l Services institution- Ex r rlle n r mmapim n« 

candy to the and interpersonal skills are essential aa is the ability to 

ision making influence at a senior management leveL 

This is a first dass opportunity to connfome to the future 
urines and success of an ambitious and high growth company. The 
in a rapidly remuneration parkagr will inrhidr a company tar and other 
sea of benefits. 


Interested applicants should write, enclosing a full CV, 
indudinc details of current remuneration, co Fiona Jobaoa Or 
Judl Bearcroft at the address below. 


Alderwick Rsachell 


■ ' * PARTNERS LTD 

Mdenvkk PcathcU &. Partner limited. R«niitnvent Cotwifant*. 125 High Hotbom, London WC1 V 6QA- Tefc 071-404 3155- fteo 071-404 0H0, 


Pksse respond, in complete confidence, with full career details, including renwnerarice*, CO: 

Patrida Lyac, European Ree nritm enc Manager, 
Ddl Computer Oxrporation Lid, PO Bo* No 3S17, Bracknell Berkshire RG1Z IGY 
' Telephone: 0344-723481 ft* 0344-360058 


oeu 


ACCOUNTANTS 


GRADE 7 LEVEL. Salary: £25,900+. 

Posts are based in Birmingham and Bristol 

SENIOR EXECUTIVE OFFICER LEVEL. Salary: London £23,551 - £29,161 

Elsewhere £21,711 -£26,881 

Posts are based in Birmingham, Bristol and London 

The aim of the Employment Department is to support economic growth by promoting a competitive, efficient and flexible labour 
market We work in partnership with the network of 75 Training and Enterprise Councils in England, which deliver programmes 
and services contributing to (his arm. 

We are seeking to appoint Accountants who will become members of local management teams responsible for negotiating, 
monitoring and controlling contracts with TECs. 

Ideally, you must be a professionally-qualified member of one of the CCAB bodies, but people with IIA or AAT qualifications who 
have the experience and can demonstrate the competencies required of senior accountants will be considered. You should have 
experience in audit and accountancy, working with senior management to overcame problems identified in audit, and in 
managing the finances of your own organisation. 

Grade 7 salaries are in the range of £25,900 to £34,469 with increments depending on performance. 

Starting salary will depend on qualifications and experience. 

For Anther details and application form (to bo returned by 26 May 1994) please contact Mrs D Parish, 
Employment Department, Personnel Branch, Room N209, Moorfoot, Sheffield SI 4PQ. 

Tel: 0742 593269 (24 hour). 


G 

EMPLOYMENT 


DEPARTMENT 



CROMWELL HOSPITAL, LONDON 


FINANCE MANAGER 


£45,000 + Benefits 


The Cromwell Hospital is a leading hospital in the independent sector and excels in technology 
and patient care. The successful candidate will report to the Chief Executive Officer and 
implement the objectives and financial targets of the hospital There will be involvement in 
corporate and financial strategy with development and implementation of financial policies to 
achieve the business plan. 


The successful candidate will be a chartered accountant who has worked in a senior management 
position for at least 5 years. Skills in communication and teamwork would be essential. 
Candidates who will apply are unlikely to be under 30 years of age. Clarity and objectivity in 
planning with the ability to instill credibility and conference are important Candidates who have 
knowledge and experience of working in hospitals would be preferred. 


Please send your Curriculum Vitae and a current photograph to: 


Personal Assistant 
to the Chief Executive Officer 
Cromwell Hospital 
Cromwell Road 
London SW5 OTU 


Applications for this position unll close by 10 May 1994. 


Group Chief Accountant 


C«£3 0,000 + car + benefits 


Northern Home Counties 


Our dax is a UK pic at the head of a very successful muliMiarianal 
group with an expanding and diversified portfolio of industrial 
activities. Annual armorer is approaching .TOT) mflfon 

Inte rn al pronmiuu has erased lira cxccficnr opportunity co join the 

headquarters ww 

Reporting to the Financial Controller and heading a small 
department, you wiH have primary responsibility for statutory and 
maimgan em consolidations and For die group's budgeting and 
forecasting exercises. In addition, you win control the aorramring 
and tax compliance for a mimhef of hotdkig qnmpnn* 1 **, provide 
technical asswanre to group operating companies and be irxvcdvod 

in acquis i tio n reviews pks otha - project work. 


A Chartered Accountant, ideally aged under 30, you should have 
at least two yeans’ post-qualification experience and be skilled in 
computer modelling. You mua be able to demonstrate first dass 
technical and communication Aflfo and have the ambition and 


ahiliry to progress. 

To apply, please send your CV and current salary to Barkers, 
Berwick House, 35 Livery Street, Birmingham B3 2PB, quoting 
rrfer e n oe M767. 


Four Cl' vnO be forwarded to this client onfy. Please 

indicate any company to vahich your details should not 
be sent. 


BIRMINGHAM TEL DZUUttra 
BRISTOL * LONDON 
NOTTINGHAM - MANCHESTER 
GLASGOW - EDINBURGH 


RESPO 


RECRUITMENT ADVERTISING 
RESPONSE HANDLING 
Candidate ASSESSMENT 
graduate recruitment 
EMPLOYEE COMMUNICATIONS 


'7'%: :.rft 










<51 - C29.T61 


ndon 



An aerial view of the Folkestone terminal looking towards the entrance to the tunnel 


Peaceful invader one of the qu»ter-mfle long Eurostar trains which will run between London and the European mainland 


grftiac! RS:-- Is PjimSi, 


O ne more barrier in 
Europe has fallen, of 
supreme importance, 
though neither the largest nor 
the last 

In 1987. when Britain and 
France ratified the Channel 
Tunnel accord, few would have 
predicted that it would come to 
fruition seven years later with 
east and west Europe reunited 
by the end cf the cold war. 

The tunnel to be opened 
today by Queen Elizabeth H 
and President Francois Mitter- 
rand forges a further link in 
the chain of contact and coop- 
eration across a continent that 
again is whole and free. 

“It was the best of times, it 
was the worst of times." After 
months in which elation over 
the tunnel's prospective open- 
ing has been tempered by frus- 
tration at delays and financial 
overruns, Charles Dickens' 
classic line aptly describes the 
mood at Eurotunnel the opera- 
tor of the 32 mile (50km) link. 

Dickens* introduction to A 
Tale of Two Cities - now sepa- 
rated by a mere three hours’ 
rail journey between London's 


Step that meets the spirit of the age 


Waterloo and the Gare du Nord 
in Paris - «isn sums up the 
state of Europe. The walls and 
the watchtowers of east-west 
division have disappeared- Yet 
the continent is beset by 
strains engendered by reces- 
sion. deep-seated changes in 
economic structure, the 
break-up of the Soviet empire 
and German reunification. 

The continent must now 
manag e an arduous transition. 
The momentous of tunnel- 
ling beneath the Straits of 
Dover symbolises the chal- 
lenges Europe faces and the 
trials it has yet to overcome. 

The stretch of water between 
Britain and France has a cen- 
tral place in the history and 
folklore of the two nations, 
both m peace and at war. Dur- 
ing the past 200 years, the idea 
of joining Britain and France 
has sporadically occupied the 
minds of engineers and admi- 
rals, financiers and function- 


The opening of the Channel Tunnel strengthens the argument that the 
destiny of Great Britain lies in and with Europe, writes David Marsh 


aries, schoolboys, prime minis- 
ters and madmen. 

The problems of constructing 
the world’s longest undersea 
tunnel cannot be gainsaid. 
Accomplishing this ambitious 
infrastructure project without 
recourse to government funds 
has been more exacting than 
Qie optimists forecast 
The t unne l's overall cost has 
grown to £10bn. This is more 
than double Eurotunnel's esti- 
mate when construction 
started six years ago. a time 
when buoyant economic condi- 
tions spurred wishful thinking 
As a result of tortuous teeth- 
ing troubles, a full freight and 
passenger service will not start 
until October, causing a large 
financial loss in the first year 
of operation and exacerbating 
pressure on hanks and share- 


holders. Yet when the overall 
assessment of the enterprise is 
drawn up, these burdens 
should not be allowed to weigh 
too heavily in the balance. If 
the skill, ingenuity and per- 
serverance deployed in build- 
ing the tunnel can be turned 
towards fashioning the new 
Europe, then the continent's 
salvation is assured. 

The historic rapprochement 
between the UK and the rest of 
Europe advances one more 
pace. Britain remains tied by 
formidable bonds of blood, her- 
itage and shared experience to 
America and the Common- 
wealth. Yet the tunnel makes 
more evident and more accept- 
able the reality that Britain's 
destiny lies with and in 
Europe. 

The French President and 


the British Queen will today 
turn a new page in relations 
between two countries joined 
and separated by a rich vein of 
turbulent history. In 20 years, 
the chronicler?; of the century’s 
final decade may speak of a 
new heading. In 50 years, with 
luck, they may be able to point 
to a new chapter. 

In psychological and geo- 
graphical terms, today's event 
is unquestionably of greater 
magnitude for the UK than for 
the French. Britain's land con- 
nection to the rest of the Euro- 
pean Union has hitherto been 
limited to the troubled border 
between the Irish Republic and 
Northern Ireland. 

France is already joined 
physically to Spain, Belgium. 
Germany, SwitzerlancLLuxem- 
bourg and Italy. From now on. 


all these countries will appear, 
to British hearts, a small but 
perceptible degree closer than 
before. 

Construction has marked an 
effort of colossal technical. 
financial and political complex- 
ity. Environmentalists' objec- 
tions have had to be acted 
upon, politicians' egos mas- 
saged. bankers' nerves calmed, 
terrorists’ ambitions (with 
luck) thwarted. 

The tunnel sets a milestone 
for many reasons. Achieving 
such a project without public 
sector funding has necessitated 
imaginative and controversial 
financing techniques. 

The venture has literally 
unearthed new ground in con- 
struction and civil engineering 
technology. It has spurred sal- 
utary competition on a much- 


travelled route on which sea 
operators up to now have 
enjoyed natural dominance, 
and has opened new perspec- 
tives for rail transport and 
freight haulage across Europe. 

The tunnel has intensified 
Anglo-French cooperation in 
areas ranging from handlin g 
equity Dotations and harmonis- 
ing railway signal equipment 
to commissioning boring 
machines and providing fences 
against rabies-carrying foxes. 

More than anything, it is a 
project both in line with and in 
advance of the spirit of the 
times. The two governments 
were able to reach agreement 
on a project embodying many 
of the concepts of economic 
policy that have come to domi- 
nate the agenda of the 1990s: 
competition, the primacy of 
private sector finance, the 
drive to complete the barrier- 
free single market. 

For all the commonly-held 


belief in the constancy of 
national characteristics, the 
tunnel illustrates what has 
changed in Europe. The British 
were once renowned as a race 
of railway-builders, the French 
- at least in the popular imagi- 
nation of the English - as a 
people incorrigibly wedded to 
time-honoured preservation of 
tbeir forefathers’ paysage. 

In the latter part of the 20th 
century, these roles seem to 
have been reversed. Ludi- 
crously yet endearingly. 
Britain has failed to construct 
a high-speed train link to join 
the tunnel to London. By con- 
trast. the French engineers of 
the Potytechnigue and the Bcole 
des Mines have unswervingly 
pressed new lines into service 
to ensure Eurostar trains race 
across the Nord-Pas-de-Calais 
plain before ambling through 
the hop groves of Kent. 

The tunnel, by itself, will 
make neither France less 
French, nor Britain less Brit- 
ish. It represents a step 
towards European conver- 
gence, but also illustrates the 
continent’s abiding diversity. 









The 160 mph train is coming down the track, says Charles Batchelor 

All aboard the ‘bullet’ 


T here are few more potent 
symbols of advanced 
technology in the 1990s 
than the high speed train. The 
fast rail networks being devel- 
oped throughout Europe prom- 
ise a remarkable reversal of 
the steady decline of train 
travel which has been under 
way since the end of the Sec- 
ond World War. 

High speed rail services have 
their origins in the Japanese 
bullet train or Shinkansen 
which first went into service 
between Tokyo and Osaka in 
1964. But it has been in 
Europe, with its scattered cen- 
tres of population and its 
crowded transport routes, that 
the idea has taken off. 

A growing awareness of the 
the potential of rail travel 
prompted the European Com- 
mission in 1990 to launch a 
programme to bring together 
national initiatives. Detailed 
studies are being carried out 
by a high speed task force 
while the scope of the pro- 
gramme has recently been 
extended to include the coun- 
tries of eastern Europe. 

The programme, which 
envisages the creation of a 
European network of high 
speed lines by 2010, involves 
the construction of 5,600 miles 
of new track, the upgrading of 
a further 9,400 miles of track 
and the creation of 750 miles of 
linking tracks. 

The new lines are to take 
trains running at 160 miles per 
hour and more, while the 
upgraded lines will handle 



A Eurostar train In Waterloo station: slow hi Britain, fast in Europe 


speeds of about 125 mph. The 
aim is to make rail an attrac- 
tive option for business and lei- 
sure travel on journeys of 
between 125 miles and 625 
miles. Even longer journeys 
would be realistic overnight. 

Journey times across Europe 
would roughly be halved with 
Brussels to Madrid failing to 
just over eight hours from 
nearly L6K hours: Brussels to 
Milan to five hours 15 min utes 
from 10 hours 20 minutes and 
Brussels to Berlin to six hours 
15 minutes Cram nine hours. 

The benefits of high speed 
train travel over airplanes and 


cars are that it delivers passen- 
gers into city centres, it can 
handle large volumes of traffic, 
is less polluting than other 
m parts of transport and makes 
more efficient use of energy. 

In addition, high speed trains 
boost passenger numbers on 
connecting slower inter-city 
and suburban linns , increasing 
the financial return to the 
entire network. They also 
make an important contribu- 
tion to regional and economic 
policies. Improving links with 
peripheral regions. 

Choked European airports, 
crowded skies and congested 


motorways have combined to 
make East rail travel a viable 
alternative for many travellers. 

The costs of creating a pan- 
European high speed rail net- 
work have been estimated at 
more than £60bn though it is 
thought that it could lead to a 
quadrupling of passenger mile- 
age travelled. Passenger 
growth coupled with improved 
productivity could lead to the 
rail companies achieving a 10 
per cent rate of return on the 
project, it has been calculated. 

It is France where high 
speed trains have made the 
biggest impact and where the 


most comprehensive network 
has been established although 
Germany, too, is creating an 
ambitious network of high 
speed services. 

The French railways began 
operating its first high-speed 
trains - trains d grande vitesse 
(TGV) - at up to 170 mph 
between Paris and Lyon to Sep- 
tember 1981, halving the jour- 
ney time to just two hours and 
doubling the volume of passen- 
gers using this route. The TGV 
Atlantique followed in 1989 
linkin g Paris with Bordeaux, 
Biarritz, Toulouse and Brittany 
at speeds of up to 185 mph. 

The imminent opening of the 
Channel Tunnel led to the con- 
struction of high speed fines 
north from Pails to Lille and 
Calais while work Is also under 
way on a section to the east of 
Paris Uniting the northern and 
southern routes. 

Germany began developing a 
high speed network of Inter- 
City Express (ICE) trains in 
1988 and now has three routes 
to service including a link with 
Berlin. The ICE trams are built 
by a consortium headed by Sie- 
mens while French high speed 
technology has been developed 
by the Anglo-French company 
GEC- Alsthom. 

Both Spain and Italy are 
working on ambitious plans to 
establish high speed networks 
but both currently run just sin- 
gle lines. The Spanish AVE 
high speed train, built by GEC- 
Alsthom, came into service in 
1392 on 270 miles of specially 
built track between Madrid 
and Seville. 

In Italy the Direttissima ser- 
vice runs between Rome and 
Florence although plans for a 
larger network have been stal- 
led for several years. However, 
a consortium of international 
banks and the Italian railways 



is now putting together propos- 
als for a vastly expanded net- 
work linking Turin, Venice. 
Milan and Maples. 

At present no high speed ser- 
vice crosses a national border 
thou gh this wQl change once 
Eurostar trains, which are a 
modified form of TGV, start 
r unnin g between London, 
Paris and Brussels. But it will 
not be before about 2002, that 
high-speed services will be 
available on the British side of 
the tunnel because of delays in 
beginning work on a 
high-speed line through Kent 
to London. 



rhu task was awesome. Harnessing the skills of 

1 0,1X10 pen] i)i- on site, plus tens of thousands of engineering specialists 
from I he four turners of the idnlie. 

Hie project Ls :il ready legendary. The longest underwater tunnel 
over constructed. The world's most advanced transport system. A 
tmijert unparalleled in civil engineering history. 

I wing Uvlmnlugy at the cutting edge. Pushing luck the fmuiiers 
»l engineering know-how, logistics, financial ingenuity and human 
determination. 



A unique combination of management excellence, engineering 
genius, logistical expertise and technological innovation. Bom out of 
the 10 contractors who form TML. Contractors who can bring those 
same skills to bear on any projert, anywhere in the world. 

All that's left tn say as a big thank you to the whole team and 
best wishes to Kurotunnel Tor the Tuture. 

From TMI S the people who huilt the Tunnel, 

Transman chu- Link, 

Ross House. Ross Way, Folkestone. Kent CRM 3UR. Tel: 0303 220217. 


m 

Balfour 

Beatty 

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The main barrier to cross- 
border links is the varying 
technologies used by the differ- 
ent national railways. The 
Eurostar trains have been 
designed to take account of 
three different electricity net- 
works and four signalling 
systems (including the one in 
the Channel T unne l). 

Track gauges, the distance 
between the rails, are not a 
problem in most of Europe 
though Spain, Portugal, 
Ireland and Russia differ horn 
the standard gauge. 

A problem Ear Britain is its 
smaller loading gauge which 
means continental European 
locomotives and rolling stock 
are too broad and high to fit 
between British station plat- 
forms or under many bridges. 

Technical harmonisation is 
one of the biggest tasks of the 
task force working on the high 
speed pan-European network. 
A priority is to create a unified 
“’command and control” sys- 
tem, combining the latest 
developments in electronics, 
computing, telecommunica- 
tions and avionics, to replace 
the incompatible national 
systems. 

A potentially worrying devel- 
opment Ear the European task 
force is the development by 
Germany of magnetic levita- 
tion technology whereby trains 


run on a magnetic cushion 
above a monoraiL The German 
government gave its approval 
two months ago for the world’s 
first commercial “maglev* 
train to run between Berlin 
and Hamburg at speeds of up 
to 250 mph. 

Maglev technology has yet to 
prove itself In large-scale com- 
mercial use but it does raise 
the prospect of a competing 
system which cannot be fitted 
into the continental network. 

Elsewhere in the world con- 
ventional "wheels on rail'’ 
technology is being used for 
the development of high speed 
links. The South Korean gov- 
ernment last month gave the 
go-ahead for the construction 
of a high speed line between 
Seoul and the port oT Pusan by 
a consortium headed by GEC- 
Alsthom. Taiwan has plans Ear 
a high speed line between 
Taipei and the southern city of 
Kao-Hsiung. 

In North America, mean- 
while, European manufactur- 
ers are attempting to win con- 
tracts for high-speed lines in 
Texas and between the cities of 
eastern Canada. To date high 
speed rail links have made 
their biggest impact in Europe 
but they clearly have the 
potential to revolutionise medi- 
um-distance travel around the 
world. 


■ WHAT THE USER GETS 

High speed 
and comfort 


For the regular air traveller 
between London and Paris, the 
Channel Tunnel rail service is 
the answer to a jet-lagged 
dream. Farewell to the inter- 
minable London Underground 
journey to Heathrow airport 
Goodbye to the air passenger 
in front whose seat is pushed 
back against your nose. No 
more confused wanderings 
around the circular terminal 
one at Paris Charles de Gaulle. 
Adieu to FFr250 taxi rides into 
Central Paris. 

While many travel agents 
expect the Eurostar railway 
service from London's Water- 
loo station to Paris and Brus- 
sels to take business away 
from the air fines, they say it 
will not appeal to everyone. 
And they are less optimistic 
about the chances of the Le 

Shuttle car ser- 

vice taking 
business from 
cross-Channel 
ferries. 

The Eurostar 
service is 
expected to win business from 
the airlines, particularly 
amon g business travellers. 
European Passenger Services, 
which will run the trains, l«s 
indicated it will charge fares 
which undercut airline prices. 

Hr Simon Beeching, manag- 
ing director of Wexas Interna- 
tional, a club organising busi- 
ness and leisure travel for its 
members, believes Bnrostar 
could win business even if it 
charged slightly more than the 
airlines. “Everyone I've spo- 
ken to has said they like the 
idea of going by train. It takes 
yon from the heart of London 
to the hearts or Paris and 
Brussels.” he says. 

Mr Mike Platt, director of 
commercial affairs at Hogg 
Robinson Business Travel 
International, says many of 
his customers have mentioned 
the attractions of being able to 
sit around a table on trains 
between London and the Con- 
tinent, running through pre- 
sentations or preparing for 
meetings - something which is 
difficult to do on an aircraft. 

For anyone living reason- 
ably close to the centre of 
Paris or London, travelling by 
Enrostar could take about the 
same amount of time as flying. 
Door-to-door, a journey from a 
London suburb to central 
Paris is about four hours. The 
Bnrostar train journey 
between the two cities is 
expected to take three hours* 
door-to-door travel will also be 


‘Everyone I’ve spoken to 
has said they like the idea 
of going by train' 


about four honrs. 

Mr Platt points out, how- 
ever, that the Channel Tunnel 
rail service will not be conve- 
nient for everyone. Many busi- 
ness travellers from London 
live in tiie Home Counties and 
they might not be travel ling to 
the centre of Paris. Mr Platt 
says: “If yon’re travelling 
from your office in London 
SWl and going to downtown 
Paris, the train is WeaL But 
it’s not if yon’re going from 
your home outside London to a 
factory outside Paris." 

The train service will also be 
up against one of the airlines' 
principal attractions: frequent 
flyer points. Accumulating fre- 
quent flyer points has become 
an obsession with many busi- 
ness air travellers, who use 
them to take their holidays. 

Business 

travel agents 
say that Euro- 
pean Passenger 
Services should 
have no diffi- 
culty develop- 
ing attractive customer loyalty 
programmes. Paris and Lon- 
don are popular tourist desti- 
nations for the British and tbe 
French respectively. The 
opportunity to collect points 
towards a family visit to 
either capital would be a 
st rong incentive for many 
Enrostar customers. 

If the attractions of the 
Eurostar services win be obvi- 
ous to many, those of Le Shut 
tie will be (ess so. Cross-chan- 
nel ferries have succeeded In 
recent years in malting the 
journeys they offer more pleas- 
ant, with bright decor, chil- 
dren’s play areas, cinemas and 
better restaurants and shops. 

Car shuttle services are 
expected to be relatively spar 
tan, with travellers remaining 
with their cars daring the 
journey and the price of trav- 
elling by shuttle will be higher 
than crossing by ferry. 

But Mr Peter Shanks, retail 
commercial director at travel 
agents Thomas Cook, points 
out the time advantage to 
travelling by shuttle. From 
motorway to auto-route, trav- 
elling time by shuttle will be 
60 minutes. By ferry, it is SO to 
90 minutes. 

Mr Shanks expects that by 
next year Le Shuttle will have 
40 .Per cent of the non-air, non* 
rail traffic, compared with 60 
per cent for the ferries, and by 
1996, 50 per cent 

Michael Skapinker 






FINANCIAL TIMES FRIDAY MAY 6 1994 


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THE CHANNEL TUNNEL 3 


T he opening of the tun* 
nel creates enormous 
opportunities for rail 
freight transport in the 
UK. 

With few freight journeys 
economical at distances of less 
than 300 miles, the land-locked 
British rail network has in the 
past been unable to compete 
with road. 

The completion of an 
undersea rail link with France 
changes all that. The 10,000 
miles of British railway track 
will be joined to the tnatofan d 
European network of 150,000 
miles. 

Transit times of just 26 hours 
between Manchester and 
Stuttgart and of only 30 hours 
between London and Milan 
should now be achievable. 

"The opening of the Channel 
tunnel will give us a very large 
railway to sell," said Mr Ian 
Brown, managing director of 
Railfreight Distribution (RID), 
the British Railways’ freight 
arm responsible for container 
and other shipments to the 
Continent 

Freight is expected to take 
up an important chunk of the 
50 per cent of tunnel capacity 
which has been booked by the 
national railway companies, it 
is also forecast to account for a 
large part of Eurotunnel's 
revenues from r unning shuttle 
trains between Folkestone and 
Calais. 

RED hopes that the opening 
of the tunnel will increase 
current train freight volumes 
from 2m tonnes a year to 6£m 
tonnes within two years and 
9m tonnes by about 2000. At 

Freight will take a big 
chunk of the capacity 
booked by the railways 

present railborne freight, 
which goes by train, ferry from 
Dover to Dunkirk or by fifbon, 
lift-off container ship between 
Harwich and Zeebrugge, 
accounts for just 7 per cent of 
cross-Channel shipments by 
container, closed rail wagon or 
lorry. 

RfD hopes to develop Its 
container business and 
conventional bulkier 
shipments of cargoes such as 
steel, paper and wood products 
and white goods. 

It has contracted to carry 
Ford vehicle components to 
Spain and completed Rover 
cars in specially built 
double-decker wagons to Italy. 

Success will depend, to a 
large degree, on RfD 
persuading potential customers 
that it can provide a high . 
standard of service. Many 
shippers have given up on BR 
in the past because of the 
unreliability of its freight 
deliveries. 

An important advantage of 
road transport is that the 
driver stays with his truck to 


A i 

* *.. , v 


- - ~infX7* 

Potential 
rail freight i 
services i? 
via the 
Channel 
Tunnel 




The undersea crossover between the north aid south rail tunnels Picture: Q.A. Photos 


British Rail expects a boom in freight traffic, writes Charles Batchelor 

Volume could treble by 1996 


ensure that the cargo reaches 
its destination on time and in 
good condition. 

To overcome this suspicion 
RfD has promoted the creation 
of three joint venture 
companies in which road 
hauliers and shippers also 
have a shareholding . Combined 
Transport (CTL), Allied 
Continental Lntermodal (ACI) 
and Unilog will sell freight 
capacity to hauliers and freight 
forwarders. 

increasing rail freight traffic 
will also involve a change in 
attitudes in the UK towards 
what is known as inlermodal 
or combined traffic, the 
shipment of goods by more 
than one means of transport, 
in this case road and rail. 
Because of the long distances 
involved in mainland Europe, 
lntermodal traffic is much 
more widely established on the 

Continent 

Apart from containers, it can 
take three main forms: 
piggyback shipments which 
involve standard truck trailers 
being carried on specially 
designed low platform rail 
wagons; swap bodies which are 
effectively truck trailers 
without the wheels; and 
roll-on/roh off transport where 
the complete road vehicle, 
including the tractor unit and 
cab. are loaded on to the train. 

lntermodal shipments within 
Europe rose to 20.1bn tonne/ 
kilometres in 1903 from 19-lbn 
the year before and 15.4bn in 
1988. according to the 
International Union of 
Rail-Road Transport (UIRR), 
which groups 17 companies 


throughout Europe. 

The European Commission is 
keen to promote the increased 
use of lntermodal shi pmen ts to 
relieve pressure on busy 
transport corridors, to reduce 
exhaust emissions by trucks 
and to increase road safety. It 
has enabled combined 
transport operators to claim 
financial support from their 
national governments for 
investment in equipment. 

Some continental European 
governments have granted 
concessions on road tax for 
vehicles involved in combined 
transport activities. 

Germany, for example, has 
given 100 per cent refunds for 
vehicles which carry cut a 
specified number of journeys 
in a year. 

The UK meanwhile is raising 
the weight restriction on 
trucks serving regional rail 
terminals from 38 to 44 tonnes. 

But despite the continuing 
growth of intermodal 
shipments, the UIRR is 
concerned at what it sees as a 
bias towards roads in the 
European Union's policy of 
liberalising transport. 

With the exception of 
Switzerland and Austria, 
which are not EU members but 
which are keen to get lorries 
off their roads and on to rail, 
no country has made 
satisfactory efforts to promote 
inlermodal transport, it said in 
its 1993 annual report 

That further investment in 
intermodal capacity is needed 
was confirmed by a study by 
consultants AT. Kearney. This 
revealed that a shortage of 


S ir Alastair Morton, co- 
chairman of Euro- 
tunnel, is pugnacious, 
blunt to the point of 
rudeness and can be a bully. 
At other times he can be 
charming and humorous. He is 
undoubtedly charismatic and 
commands a grudging respect 
even from his critics. 

No one has dominated the 
construction of the Channel 
Tunnel quite like Morton. Over 
the past six years he has anta- 
gonised contractors; battled 
with BR and SNCF; and critic- 
ised government ministers, 
particularly British, for hold- 
ing back the project 
Joe Dwyer, chief executive of 
UK construction group Wim- 
pey, when Morton last su m m e r 
was simultaneously threaten- 
ing to sue for damages contrac- 
tors, BR and SNCF and the 
British government, sighed: 
"Surely, we cannot all be in 
the wrong." 

Morton's detractors insist 
that the row with British and 
French contractors over their 
claims for extra payments 
could have been settled and 
the project opened earlier but 
for bis stubbornness and bellig- 
erence. 

But his aggressiveness may 
not have been a disadvantage 
as for as the banks were con- 
cerned. They needed to feel 
confident that they were giving 
their money to a tough client 
who would fight to protect 
their interests. 

The banks on several occa- 
sions supported Morton 
against attempts by contrac- 
tors to unseat him- It is also 
doubtful that Morton could 
have persuaded the banks 

His pugnacity may have 
been no disadvantage 
in handling the banks 

much earlier to accept the set- 
tlement finall y agreed with the 
contractors. 

Even his fiercest critics 
among the construction com- 
panies admit that the project 
would never have started but 
for the energy and determina- 
tion displayed by Morton in 
persuading banks and financial 
institutions to part with their 
money in the first place and 
then to stick with it when the 
going got tough and costs 
started to rise. 

His sharp mind and previous 
experience of working to the 
City gave them comfort that he 



Sir Alastair Morton: tough and charismatic Picture: Ashley Aahwood 

■ Profile: ALASTAIR MORTON 

Eurotunnel’s 

strongman 


would keep a tight rein on the 
project’s finances. 

Morton, 56 last January, was 
bora in Johannesburg. His 
father was a Scottish oil execu- 
tive and his mother a member 
of an old Afrikaner family. He 
has never shrunk from speak- 
ing his mind whether to jour- 
nalists. fellow executives or 
supposedly recalcitrant con- 
struction companies. 

It appears that he almost 
delights in rubbing people up 
the wrong way. He has been 
described as a man who cannot 
pass a calm pond without 
throwing a large rock into it, 
just to see what happens. 

He will fight fiercely, not 
shrinking from personal 
attacks, to defend his judg- 
ment He is a busy sender of 
letters and faxes to editors and 
others who have taken oppos- 
ing views or have offended. 

For such an outspoken char- 
acter. he harbours surprisingly 
few grudges. 

One French contractor 
involved in the long running 
battles over costs said: “After 
th e storm there Is the calm. 
Alastair having argued until 
he is red in the face that you 


are wrong, will suddenly say 
‘OK you win’ and he will be 
absolutely charming." 

Equally, he has not been 
afraid to back his judgment 
when he feels he Is right He 
resigned as managing director 
of the British National Oil Cor- 
poration after clashing with 
BNOC's chairman Sir Philip 
Shelboume over priva t isation. 

The Bark of England subse- 
quently prevailed upon him to 
take the helm at Guineas Peat, 
the ailing banking group. He 
publicly rowed with the bank’s 
founder and major share- 
holder. Lord Kissin, over asset 
disposals and resigned after a 
successful hostile takeover by 
Equiticorp of New Zealand. 

Chancellor Kenneth Clarke 
has now appointed Morton 
head of a working group to 
encourage greater private sec- 
tor investment in infrastruc- 
ture. 

He will not shrink from crit- 
icising government if he thinks 
this necessary and contractors 
may yet be glad to see their 
former adversary lining up up 
on their side. 

Andrew Taylor 


road/rail terminal capacity and 
the lack of a standard loading 
gauge (which determines the 
width and height of wagons) 
on Europe’s railways were 
constraints on growth. 

On many journeys combined 
transport could compete with 
road on price but an average 

More freight will involve 
a new UK attitude to 
inter-modal traffic 


road/rail journeys were slower 
than those made solely by 
road. 

Intermodal shipments 
travelled at an average of 37 
kilometres /hour while road 
shipments went at 69 km/hour, 
the survey fomul 


Improvements in the quality 
of the service, more active 
marketing and the creation of 
a standard loading gauge could 
lead to a trebling of intermodal 
shipments, which were just 4 
per cent of total shipments at 
the time of the survey. 

The cost of introducing a 
standard loading gauge would 
be enormous, as Rfli has found 
with work involved in 
upgrading just a small part of 
the British network. Modifying 
even a limited number of 
routes from the Channel 
tunnel to the Midlands, the 
north west of England and 
Scotland to what is known as 
the Berne gauge would cost 
more than £3bn, it has 

ralwilatari 

RfD has compromised by 
designing a new fleet of 


low-platform wagons, which 
avoid the need for a full-scale 
conversion to the Berne gauge, 
and by renewing bridges on 
key routes. 

Even so. its total investment 
in preparing for the Channel 
tunnel has amounted to £450m. 

This has created a freight 
network which links into nine 
regional freight terminals 
which are owned by the 
railways as well as a number 
of privately owned terminals 
which are currently being 
developed. 

If all goes well RfD hopes to 
have six trains a day travelling 
through the tunnel this 
summer rising to 16 trains 
each way by the spring of 1995. 
Britain would then be finally 
plugged into the European rail 
freight network. 



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FINANCIAL TIMJES FRIDAY MA\ 6 1994 


THE CHANNEL TUNNEL 


T he French, with their 
natural panache, 
describe it as the prof 
ect of the Century- 
History will recall that they 
were connect The Channel tun- 
nel by any measure ranks as 
one of the world's great engi- 
neering feats. 

The success in completing 
the 50km (32 miles) crossing 
beneath the sea bed, in three 
tunnels, under one of the 
world’s busiest waterways 
compares with the construe* 
tion of the Suez and P anama 
canals. 

Memories of the bitter squab- 
bles over costs and delays 
punctuating more than six 
years of construction will dim 
as future generations take 
pride in achievements of the 
British and French builders. 

It has been a massive feat 
150km of t unn els have been 
bored and lined with more 
than 800,000 concrete segments 
weighing anything up to nine 
tonnes each. 

Into these have been 
installed more than 22,000 
tonnes of railway track, accom- 
panied by more than 1,000 km 
of power cables and Tor signal- 
ling and co mmunications . 

Jack Lemley, chief executive 
of Transmanche Link, a con- 
sortium of five French and five 
British construction companies 
which designed and built the 
project, says: “In six and a half 
years we have created Europe’s 
longest tunnel, the longest 
under-sea tunnel and the 
world's most advanced trans- 
portation system." 

Rail traffic and engineering 
management constantly moni- 
tor 30,000 separate locations in 
the network - one of the larg- 
est systems of its kind outside 
of the space programme. Infor- 
mation is relayed through 
these fibre optic cables carry- 
ing 700m bits of data every sec- 
ond. 

At either end of the tunnels 
are electricity sub-stations 
each of which is capable of 
powering a city the size of 
Lille. Fifteen thousand sup- 
ports had to be installed inside 
the tunnels to carry the cate- 
nary powering the trains. This 
involved the handling of about 
lm separate components. 



It’s a roll-call of engineering achievements, writes Andrew Taylor 


The longest subsea 


Michel Barbler, responsible 
for the early stages of the 

installation of nrafthaniral and 

electrical equipment from 
France, described the process 
of transporting such a vast 
quantity of equipment and per- 
sonnel through the narrow 
aperture of the tunnel mouth 
as like “force-feeding a goose 
in a very short space of time to 


The squabbles will be 
forgotten as posterity 
marvels at the feat of its 
French and UK builders 


produce the best ever pdte de 
foie gras”. 

The goose has now been 

Stuffed and T rnnsrnanrhft says 

the volume of mechanical elec- 
trical equipment Installed is 
equivalent to building 10 
cement works. 20 sugar refiner- 
ies or two large nuclear power 
stations. 

The concrete lining s of the 
tunnel have a crushing 
strength approaching twice 
that of concrete used in pres- 


sure vessels of nuclear power 
stations. They were manufac- 
tured at two purpose built fac- 
tories, one at the French termi- 
nal and the other on the Isle of 
Grain in the Medway and 
Thames estuaries. 

All of this is a long way from 
where the consortium started 
In the summer of 1987 when 
the British and French parlia- 
ments approved legislation 
allowing construction to com- 
mence. 

On the site of the completed 
terminals near Folkestone, 
Kent and at Coquelles near 
Calais in northern France it is 
difficult to remember that this 
was once open countryside. 
The French site now contains a 
development the size of Heath- 
row airport It was previously 
a marsh which had to he 
drained before work could 
start. The te rminal now has its 
own water treatment plant 
capable of serving a town with 
a population of 20,000. 

The ground of the Folkes- 
tone terminal, the size of 
Heathrow's Te rminal Four, 
had to be raised by up to 12 


metres. This involved pumping 
2.6m cubic metres of sand 
dredged from the Goodwin 
Sands, thereby avoiding half a 
million lorry movements. 

Construction of such a vast 
venture had many problems. 
Ten lives were lost during the 
bmldiiig - eight on the British 
side and two in France - 
requiring Transmanche to 
improve its health and safety 
standards, particularly train- 
ing for tunnel workers. 

Tunneling initially was very 
slow and cost more than 
planned. Ground conditions 
under the British coast were 
much worse than expected. 
Salt water, percolating through 
fissures in the rock, affected 
the delicate controls on the 200 
metre-long tunnel-boring 
machines. 

Attempts to insulate equip- 
ment caused overheating, peri- 
odic «m gtae fixes anil man y 
breakdowns. At one stage prog- 
ress under the Kent coast was 
less than 20 metres a week, 
compared with more than 300 
metres a week later. 

Mr John King, director 


tunnel 



Jack Lemtey of Transmanche: a 
list of superlative statistics 


responsible for the British tun- 
nelling, later admitted: “There 
were several times when I 
thought we might not make it 
One of the worst moments was 
when, with water still pouring 
through tiny fissures in the 
roof of the tunnel, we had to 
decide whether the modifica- 
tions we had made to the 
machines would be sufficient 
to let us proceed. If they had 
not worked I do not know what 
we would have done; fortu- 



added to delays and increased 
costs. In one instance, the com- 
mission demanded that fire 
doors connecting the shuttle 
wagons be widened by just 
10cm requiring substantial re- 
engineering of the wagons. 

The enormous air pressure 
created by large trains travel- 
ling through the tunnel at up 
to 160km per hour meant that 
every component installed In 
the tunnel had to be designed 
within specific aerodynamic 
coeffi c ients creating aHHitimm ] 
problems for designers and 
contractors. Supports for pipe- 
work caused serious problems 
because they were too fragile 
even though they satisfied 
aerodynamic standards. 

In total, 20,000 tight fittings 
have been installed in the tun- 
nels, of which has to be 
taken into consideration in 
terms of their effect on the 
temperature and aerodynamic 
efficiency of the system as a 
whole. Given the problems that 
have had to he overcome it is a 
wonder that the project did not 
take even longer and cost more 
to complete. 


palely, they worked.” 

At peak production. 2,000 
tanTifls of nhahe marl an hour 
were be taken out of the Brit- 
ish gnd of the tunnel alone to 
be deposited into lagoons at 
the base of Shakespeare Cliff, 
between Folkestone and Dover. 
The spoil contained within a 
purpose-built sea wall added 73 
acres to Britain's land mass. 

In total more than 20m 
tonnes of spoil were removed 
from the tmmels along a nar- 
row gauge construction rail- 
way totalling more than 
300km. At the same time as 
spoil was being removed, con- 
crete lining s and equipment 
were being brought into the 
tunnels. 

The biggest problem facing 
contractors was that work was 
taking place before detailed 
designs for many parts of the 
project could be completed. It 
was not until plans started to 
emerge for the trains and 
transport system that it 
became apparent that a cooling 
system, which had not been 
Included in the original pro- 
posal, would need to be 


installed. Friction caused by 
the passage of some of the larg- 
est trains in the world together 
with heat generated by the 
sophisticated signalling, com- 
munications and other 
installed equipment would 
have increased the tempera- 
ture inside the tunnels to 
SOdegC. 

To compensate, a cooling 


Given the problems, it's 
a wonder that it did not 
take longer and cost a 
lot more to complete 


system was installed, involving 
pumping 220 litres of water a 
second chilled to 3degC 
through several hundred kilo- 
metres of pipes. The capacity 
of the cooling plants is equiva- 
lent to 25,000 domestic refriger- 
ators. 

Design changes, imposed by 
the Inter-Governmental Com- 
mission established by the two 
Governments and responsible 
for granting Eurotunnel an 
operating licence, also have 


Bronwen Maddox describes the environmentalist backlash in England 


■ Profile: GEORGES-CHRISTIAN CHAZOT 


Fierce clashes all the way 


Mission: start making money 


“ When they came to build the 
Channel Tunnel they told us 
they didn’t need the line. So we 
let them build the Channel Tun- 
neL Surprise, surprise - this is 
tchat vx find. " 

Those are the opening lyrics 
of Joan of Kent, a new musical 
now touring Kent and London 
which protests against the con- 
struction of railway links to 
the tunnel 

The environmental impact of 
the tunnel has caused some or 
the fiercest debates daring its 
planning. Most of that heat has 
been focused on the size of the 
te rminate , and the route and 
design of the new rati lines 
between London and the tun- 
nel mouth in Kent. 

While the tunnel debate has 
been underway for years, in 
recent months the government 
has shown Itself to be worried 
about public opposition to the 
encroachment of development 
on the countryside. U has 
announced a scaling- bock of 
road building, partly on envi- 
ronmental grounds. 

Conservative backbenchers 
suggest that the desire for 


more conservation may play a 
part in the forthcoming local 
and European elections, partic- 
ularly in the Conservative 
strongholds in the south of 
England. However, in the case 
of the Channel Tunnel the 
consortium argues that it has 
gone to great lengths to minim- 
ise the impact on the environ- 
ment In butiding the Folkes- 
tone terminal the construction 
companies transplanted a 12- 
acre of woodland called Big- 
gin’s Wood, the size of Heath- 
row’s Terminal 4, to a site 
nearby when it was clear that 
the trees were at risk. 

Environmentalists have also 
welcomed some features of the 
railway route that has eventu- 
ally been chosen. It avoids the 
marshes near the estuaries of 
the Thames and Medway, 
which are rich in wildlife, par- 
ticularly migratory birds. 

They have also supported 
the decision to lay much of the 
new track alongside existing 
road and rati routes, thus min- 
imising the Impact on previ- 
ously unspoiled countryside. 

But some campaigners are 


The island 
race is a myth, 
n'est-ce pas? 



disappointed that more of the 
lines are not buried in tunnels, 
and accuse the government of 
underfunding the project 
Mr Robert Baxter, chairman 
of the transport group in the 
Kent branch of the Council for 
the Protection of Rural 
England, says that part of the 
line will pass through sensitive 
downland on either rid e of the 
Medway river, and ancient 
woodland near Cobham. 

Local pressure groups are 
also concerned about develop- 
ment, as yet unplanned, which 
will be precipitated by the tun- 
nel In particular, the mooted 
construction of an othe r 
ger station in Kent “will mean 
large amounts of carparks and 
infrastructure”, Mr Baxter 
says. “Those will bring more 
commuters into Kent and 
increase the pressure on its 
enviro nm en t " 
Environmentalists also point 
out that the rati lines may 
have difficulty in carrying 
large volumes of freight 
because the gradients on sev- 
eral stretches are steep. 
Freight trains may need two 
locomotives to overcome the 
gradient they suggest Freight 
traffic, they fear, may oonrimie 


to use the roads, thereby 
Increasing air pollution. 

Further concern about the 
tunnel’s impact centres around 
the problem of disposing of the 
spoil from the tunnel borings. 

The solution has been to 
deposit the rock and sand at 
the foot of the White Cliffs of 
Dover. A platform, reinforced 
with concrete, has been built 
from the waste, extending lkm 
along the cliffs and a third of a 
kilometre out to sea. The top of 
the platform has been made 
into a picnic area. 

However local conservation- 
ists have been concerned that 
the platforms, which are about 
a quarter of the height of the 
cliffs, spoil the view of Shake- 
speare Ctiff which was named 
after a scene in King Lear. 

They also fear that the plat- 
form could alter tidal flows 
and affect the wildlife on the 
site of special scientific inter- 
est at the head of the cliffs. 

Despite these concerns, 
many environmentalists 
acknowledge that the impact of 
the tunnel is considerably less 
than was first feared. 

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Georges-Christtan Chazot of 
Eurotmwfc a baptism of Iho 


The past four months have 
been a baptism of fire for Mr 
Georges-Chrlstian Chazot, 
Eurotunnel's chief executive. 
Appointed in January to torn 
a large construction project 
into a profitable transport 
undertaking, he has been 
faced with a succession of 

postponements to the start of 
commercial operations. 

As passenger and freight 
services on both tunnel shut- 
tles and the long-distance 
through trains come on 
stream, revenues will start to 
flow hot up to £100m of feres 
have been lost 

Steering the £10bn project 
into profitability represents an 
enormous challenge. Covering 
interest charges alone will 
cost about £650m a year and 
the success of the whole ven- 
ture depends on Eurotunnel 
both appealing to existing 
travellers and persuading new 
ones to cross the ChaimeL 

At the time of Hr Chazofs 
appointment Eurotunnel said 
it did not want him to be over- 
whelmed by the problems of 
the past bnt Inevitably they 
have cast a long shadow. 

The move to Eurotunnel rep- 
resented a high-profile move 


E Interview: Pierre Mauroy on the wooing of Mrs T 

It had to be ‘oui’ 


Mr Pierre Mauroy, the mayor 
of Ulle, is a man whose large 
unflappable features remain 
undented by his trouble-torn 
spell in 1981-83 as the first 
Socialist prime minister of 
France’s Fifth Republic, writes 
DAVID MARSH. 

In his splendid office in 
Lille's beifryed town hall Mr 
Mauroy recalls with consider- 
able pleasure his part in ensur- 
ing the tunnel’s construction. 

“With coal textiles and steel 
we were a traditional indus- 
trial region, a subcontractor 
for the Paris region. I said you 


need something to strike the 
imagination - above all to spur 
the service sector and create 
additional employment.” 

He says he brought up the 
subject of the tunnel with Mrs 
Margaret Thatcher, then Brit* 
ish prime minister, at an 
Anglo-French meeting in 1982. 


“It was me who spoke to her 
about it for the first time. We 
were at a Scottish castle, twwr 
the loch where the monster is 
found. She arrived early. She 
didn't want to be too disagree- 
able. But she said, Tm not giv- 
ing you a penny.’ I wanted to 
talk to her about the tunnel 


and she kept insisting on 
Britain’s rebate [from the 
European Community budget]. 
But I pushed hen tunnel, tun- 
nel tunnel, tunnel." At the EC 
summit in Fontainebleau in 
1985, Mr Mauroy says proudly, 
“We cama to agreement." 

Mr Mauroy sees Lille's new 


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for a manager, who, for all his 
long experience of both Indus- 
try and the service sector, was 
little known outside his native 
France. Nevertheless, Mr Cha- 
zot’s career in international 
companies makes him well 
suited to handle the challenges 
facing Eurotunnel commented 
one French banker. 

Educated at the Ecole Poly- 
technique In Paris and at the 
University of Florida, Mr Char 
not acquired a degree in dec- 


Since being appointed in 
January he has faced a 
series of delays in the start 
of commercial operations 


trical engineering and a 
diploma In marketing. 

He then spent 14 years each 
at Schlumberger, the interna- 
tional engineering group, and 
CGE (now Alcatel Alsthom), 
the telecommunications com- 
pany. Although both are large 
industrial concerns, Mr Chazot 
counts as one of his achieve- 
ments the transformation of 
Safe, Alcatel's battery subsidr 
iary, from a company with “a 
culture of high-tech arrogance 


links to northern Europe as a 
vital means of giving the 
region new life. Unemploy- 
ment, around 12 per cant in 
Lille, is however a black spot 
He points out that the region's 
electorate voted by a majority 
of 56 cent against the Maas- 
tricht treaty in the referendum 
in September 1992. “The region 
is European. But the people are 
starting to lose hope.” 

“There is a link between 
development of the region and 
the idea of Europe. If Europe is 
able to offer them a perspective 
for improving their situation, 
they are European. If unem- 
ployment rises, and they see 
no way out, they become anti- 
European." 

A great supporter of Euro- 
pean economic and monetary 
union. Mr Mauroy says, “if 
developments in Europe con- 
tinue as they have done during 
the past few years, It will lose 
the support of its citizens.’’ The 
tunnel is Mr Mauroy’s stron- 
gest hope for keeping the peo- 
ple of Lille on the main line to 
Europe. 


to a sendee-minded corpora- 
tion". 

From Alcatel Mr Chazot 
went to Adia, a Swiss tempo- 
rary employment agency, run- 
ning its French subsidiary for 
18 months. This, he says, 
broadened his experience of 
working in the service sector. 

It also exposed him to a mar- 
ket place where price and mar- 
gins were particularly impor- 
tant Eurotunnel and the ferry 
companies say they are keen 
to avoid a price war bat the 
huge increase in cross-Channel 
capacity represented by the 
tunnel makes fierce tariff com- 
petition almost inevitable. 

Mr Chazofs recruitment at 
the age of 54, to Eurotunnel 
followed a search by teams of 
headhunters in London and 
Paris. Nationality was not a 
factor, according to Euro- 
tunnel which says it was 
looking for the best person for 
tiie job regardless of origin. 

Mr Chazot denies that he 
regards himself as particularly 
French. “My basic business 
education was in the US for 
the first three years of my 
business life,” he says. 

Mr Chazot has not only bad 
to cope with the problems of 
commissioning the tunnel’s 
systems and its rolling stock. 
He has also had to ubiIm a 
mark for himself in a post pre- 
viously filled by Sir Alastair 
Morton. Sir Alastair it was 
who brought a project riven by 
conflicts between contractors 
and customer back on course. 

He has stayed on as co-chair- 
man, alongside his French 
counterpart, Mr Andrd Bfin- 
ard. to resolve outstanding 
disputes and to prepare for the 
raising of another £lbn-£1.5bn 
of equity and loan finance. 

Professionally, Mr Chazot is 
devoting his time to a project 
w hich may put some ferry 
operators out of business. At 
the very least the tunnel will 
capture a large part of the fer- 
ry’s market share. 

There Is a certain irony 
therefore in the feet that Mr 
Chazot is a keen amateur 
sailor, though he has never 
sailed his 35-foot racing yacht, 
Eloisa, across the ChaimeL His 
present job has involved more 
journeys under the Channel 
than over it. 


Charles Batchelor 


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FINANCIAL TIMES FRIDAY MAY 6 1994 


THE CHANNEL TUNNEL S 


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Charles Batchelor looks at Europe’s changing map 


The periphery draws 
nearer to the centre 


T he opening of the 
Channel Tunnel and a 
fixed rail link between 
Britain and the Conti- 
nent will provide a welcome 
boost for the European. Union's 
transport policy. 

Previously fragmented pro- 
grammes were brought 
together in a white paper pub- 
lished in 1932 which set out 
proposals to promote the use of 
rail and sea and renal sh i ppin g 
transport and to rein in the 
rapid growth of road and air 
journeys. 

In physical terms the Chan- 
nel tunnel represents a Anther 
link In the transport chain 
which seeks to connect periph- 
eral regions with the centre 
and reduce geographical barri- 
ers to travel. 

Elsewhere in Europe road 
and rail l fofrs are hAfrig estab- 
lished between Denmark and 
Sweden, additional rail tunnels 
are planned to link northern 
and southern Europe through 
the Swiss Alps and Spain and 
France through the Pyrenees. 

After many years during 
which planning for road, rail, 
air and sea transport took 
place in isolation, the Euro- 
pean Commission produced its 
outline of a common transport 
policy in December 1992. The 
creation of the single European 
market on January 1, 1993 had 
given additional impetus to the 
project. 

One of the main problems it 
sought to overcome was the 
imbalance between the diffe r- 
ent means of transport. The 
rapid growth of road transport, 
in particular, had led to a 
decline in the use of other net- 
works, notably rail, increasing 
congestion and damage to the 
environment 

Passenger travel within the 
EU has risen by 85 per cent 
over the past 20 years, mostly 
in the Iona af private car jour- 
neys, which account for 79 per 
cent of all travel. Freight ship- 
ments have increased by half 
but road transport now 
accounts for 70 per cent of 
goods transported while rail 
and inland waterway transport 
have declined in relative 
terms. 

One way of encouraging the 


use of rail, particularly for 
freight purposes, is to encour- 
age the development of inte- 
grated transport systems so 
that goods can be moved by 
road for part of the journey 
and then transferred to rail, 
ship or barge for the long-haul 
section of the route. This 
requires investment in special 
rail wagons to carry trucks and 
trailers and in terminals for 
handifegr the transhipment of 
containers and the like. 

Speeding up journeys can 
also make rail attractive to 
both passengers and freight 
High-speed trains running cm 
dedicated or upgraded tracks 
are reducing inter-city times 
for business ami leisure travel- 
lers while improved track and 
handling facilities can speed 
up freight shipments. 

At the same time the com- 
mission is keen for travellers 
to bear the foil cost of their 
journey through the use of 


road tolls and the harmonisa- 
tion of duties on the different 
types of fuel. Car travellers are 
rarely made aware of the cost 
of their journey at the point of 
use while rail travellers are 
very aware of the price of their 
ticket. 

The International Union of 


Two last Alpine rail 
tunnels are planned to 
link Basle with Milan 


Railways (UIC), which groups 
railway organisations from 
around the world, believes that 
the active promotion of rail 
transport and substantial 
investments to modernise the 
network would result in a 
healthier transport balance. It 
believes the growth in rail 
travel in western Europe could 
increase to 3 per cent a year 
compared with a 1 per cent rise 


in road transport and a 4 per 
cent rise in air traffic. 

If nothing is done rail travel 
growth would remain stuck at 
1 per cent a year while road 
transport would grow by just 
over 2 per cent and air by 6 per 
cent, a recent report by the 
UICs strategic p lanning com- 
mittee calculated. 

Switzerland, which is not a 
member of the EU, has 
Increased the pressure for a 
shift towards rail freight A ref- 
erendum last March produced 
a vote in favour of a complete 
ban on transit lorry traffic 
through the Alps to take effect 
in 2004. 

This added urgency to plans 
already under consideration to 
build two new high-speed 
north-south rail lines through 
the Alps connecting Basle with 
Milan. Two new tunnels would 
be drilled at a low altitude so 
that trains would not have a 
steep gradient to climb and 


Andrew Baxter studies the special rolling stock and who has built it 


Europe wheels out its best 


The supply of trains for the Channel 
Tunnel - locomotives, rolling stock, wag- 
ons for cars, coaches and freight - has 
been a remarkable pan-European effort, 
even if there have been plenty of delays 
and arguments along the track. 

Technical challenges and the sheer scale 
of the project - and hence the size of the 
contracts - are partly to blame for time- 
tables slipping. 

On top of that, however, the contracts 
were awarded, and are on their way to 
completion, during a period of Intense 
upheaval in the railway equipment indus- 
try, whose overcapacity problems are forc- 
ing it to consolidate across Europe. 

In summary, the main contracts are as 
follows; 

• Eurostar trains. TTansmancbe Super 
Train Group, led by GSC Alsthom, is 
building the 31 Eurostar trains for the 
inter-capitals day service - London to 
Brussels and Paris - at approximately 
£24m apiece. 

• Kuroetar trains beyond London. The 
same consortium is building seven slightly 
shorter Eurastar trains for the daytime 
services from Scotland and from Manches- 
ter to Paris and Brussels. 

• European night services. Metro-Cam- 
mell in Birmingham, which is part of GEC 
Alsthom, is building the 139 units