Skip to main content

Full text of "Financial Times , 1994, UK, English"

See other formats


I1L- v. .. . 



-V i 



u.. 




.feg»1£ 



Theshapeoftke 

newpartumenr 



lesfcasejbr 
good government 

Sunny, Section B1 


FINANCIAL TIMES 


*-o~ 


; • ■>/ 

■ 7 ;:t 

: ■ •••. 

. ‘‘yi 

: ’- v 

«v5 r 


Europe^ 'Business Ne wspaps 


Japan’s current 
account surplus 
| falls to $15.76bn 


TUESDAY MAY TO M 994' 





ackpco-- 


* ower of n!. 


> PA t 


*r.4r : ; 7 


en#* . 






/ 






•7>1 


ifte"-- 






.js/i'S*'* 


Japan’s current account surplus, the source of 
friction in relations with the US, could be peaking, 
Japan's ministry of ftnanre predicted. 

The surplus fell 16.1 per cent to $35.76bn for 
March, with exports np 5.3 per cent at S35.6bn 
and imports up 10.3 per cent at $20.4bn. Also, 
both the current account and trade surpluses 
fell in yen terms during the 1993 financial year, 
the first drop in three years, according to the 
ministry. Page 16 

Yemen oil h wh ia ti y ‘at risk 1 : Yemen's civil 
war, which has prompted the emergency evacua- 
tion of most foreign oil company expatriates, 
is severely threatening an industry long seen 
as central to the country’s economic prospects, 
oil executives said. Page 16 

Gonzfilex draws support from left wing: 

The left wing of Spain's ruling socialist party, 
headed by deputy party leader Alfonso Guerra, 
has come to the aid of the scandal-hit government 
after months of ostracism. The move came as 
judge Baltasar Garztin, the best-known magistrate 
in the country, said he was resigning his socialist 
seat because Mr Gonzdlez was not doing enough 
to curb corruption. Page 16 

Bankers Trust replaces Wife Bankers Trust, 
the US-based bank, has replaced the long-time 
chairman of WM Company, its performance mea- 
surement subsidiary, with a senior banking official 
The move is aimed at building a “global” business 
selling its services to other bank clients. Page 18 

Major under pressure on referendum: 

The UK’s r uling Conservative party was in turmoil 
as prime minister John Major fought a rearguard 
battle against intense pressure for a referendum 
on the next steps towards European integration. 
Page 7; The right question time. Page 14 

AB Foods plans share reorganisation: 

Minority shareholders 
of Associated British 
Foods, the milling, 
baking, sugar and 
other food products 
group, wiB be offered 
equivalent shares in 
a newly quoted company 
and a lOp a share special 
dividend, as part of 
the reorganisation 
of the group’s ownership. 
The plan will release 
£130m (6190m) to the founding Weston family. 
Chairman Garry Weston (above) said the family 
intended to retain control of AB Foods. Page 
17: Lex, Page 16 

US healthcare r ef or m In trouble: US 

president Bill Clinton’s proposal to require employ- 
ers to provide health insurance for their works’s, 
a central element of his healthcare reform plan, 
is running into difficulties in Congress. Page S 

Delay In naming Italian cabinet: Italy’s 
president Oscar Luigi ScaKaro was reported to 
be delaying confirmation of Italy’s 53rd postwar 
cabinet headed by media magnate turned politician 
Silvio Berlusconi. Page 2 

African development bank weighed down: 

Mounting arrears from borrowing countries and 
the need to make greater provisions against loan 
defaults cut the African Development Bank's 
net income by 31 per cent last year to $112m. Page 4 

Daimler-Benz, Germany’s biggest industrial 
company, is planning to place $250-$300m worth 
of new shares in Singapore when it holds its long- 
awaited rights issue, as part of the automobile- to- 
aircraft group’s strategy of internationalising 
its shareholder base. Page 17 

Swiss bid values Cedes* a* PFr2.6bn: 

Holder bank, the Swiss-based international cement 
and aggregates group, is making an agreed bid 
for the cement, ready-mixed concrete and aggre- 
gates operations of Cimeuts et Engrais de Cannes 
et de I'Est ( Cedes t), for FFriL6bn ($456m). Page 17 

Kemper seeks higher bid: Advisers to 
Kemper, the US investment group, were contacting 
other possible bidders for the company to try 
to elicit a higher price than the $60 a share offered 
by GE Capital. Page 17; Lex, Page 16 

AGF to forge link with SocGen: Assurances 
Generates de France, one of France’s largest insur- 
ance groups, is to forge closer links with Soctefo 
G6n&raJe after its privatisation, rather than Credit 
Lyonnais. Sod£t£ Generate and Credit Lyonnais 
have for some months been competing to become 
AGFs strategic partner in the banking sector. 

Page 20 



m STOCK MARKET MMCES 

■ STERLING 

FT-SE IDO: . 3*37.8 (-83 

YMd 382 

FT-SE Eumfaadc 100 -lA&J (-13-33) 

FT-SE-A MStefB — 1,5043 (*«) 

Iftt* 19.786U6 (-7151) 

Hen York: taBftfoB 

Dow Jones M An — 154689 (-32.61) 

SAP Composite .. .44492 (-280) 

■ US LUNCHTIME RATES 

New YbA luncMfme: 

S 1.497 

London: 

$ L4S6 (1.492) 

DM 2L4801 (2.4859) 

FFT 14396 (8.5227) 

SFr 2.1164 (2.1132) 

Y 153896 (151348) 

£ index 7&4 (79.5) 

■ DOLLAR 

Federal Fuxte 3}J% 

3-tnoTreas Be YU — 4323% 

Long Bond 84£ 

YlakJ . 7W% 

M LONDON MONEY 

New YOrk luncMJme: 

DM L65S 

FFr &6705 

SFt 14137 

Y 18Z.7 

London: 

DU 18579 (1.6661) 

FFr 58817 15.7123) 

SFr 1*147 (1.41B4) 

Y 1 02875 (102.78) 

$ Index 65 2 (65.4) 

Tokyo ctaeY m«i 

3-rao HotBDk 5k% (5 

Lite tong gBt Mure: .-Jw 1B3A UmlQ3,y 
■ NORTH SEA OIL (Algos) 

Brent 15-day (June) — $1621 06,17) 

■ Oold 

New York Cura $3823 (3812) 

London $381.25 (3713) 


fcOH 

Balm 

EWgtan 

BJprtl 

Cvptjs 

CMdlRp 

Smrnarfc 

Finland 

Ff*w 

Qamany 


ScM2 

DM.250 

QMS 

Lwffifl) 

CC1.10 

CZKS0 

CMri6 

EEUX) 

mu 

moat 

DUU0 


Greece 0450 
HongKong HK$W 
Hrgay ni85 
betafd Kfitt 
Ma Fbffl 

end SHA90 

Mr L3000 
Atm vsoo 
Jcnfen JD1.50 
Kum* Ffc.6K 
Lemon ussi-50 


Lux 

kfefta 

Munxro 

KWh 

ttgata 

Norway 

Cam 


mend 

Portugal 


Lftffi 

UrilS) 

MDM5 

Rim 

NakaSD 

MQ1700 

emm 

ft* 

PaoSO 

331000 


Qa Cftiaoo 
&An tea Sftii 
amn SMJ30 
Sbvefeffc mso 
SojnMHci R110O 
Spain PM25 
SMd« SKrtfi 
SM? SRO® 
Sym 3*000 
Juntas On15» 
Twtoy 130000 
UAE DM 100 


Yeltsin upset by plans for forces’ Berlin farewell 


By Leyta Boulton in Moscow and Judy 
Dempsey in Beilin 

President Boris Yeltsin yesterday 
appealed to the west not to humiliate 
Russia after a row blew up in Germany 
over plans to exclude Russian troops 
from a farewell parade of Allied forces 
from Berlin. 

American, British and French troops 
are due to mark the departure from Ber- 
lin with celebrations organised by the 
city authorities on June 18. nearly 50 
years after Berlin surrendered to the 
Red Army. 

But the Russians have been told they 


cannot take part, and Chancellor Hel- 
mut Kohl has excluded them from the 
federal government’s send-off due to be 
held in Berlin on September 8. 

The German government and western 
allies have agreed on separate ceremo- 
nies on the grounds that the role of the 
Russian troops as an occupying force 
was very different from that or the 
west 

The planned farewell celebrations will 
be discussed by Mr Kohl and Mr Yeltsin, 
who arrives in Germany tomorrow for 
an nffirial visit, and final de tails are due 
to be settled this week. 

Russia has been offered two civilian 


ceremonies, in Berlin and in the 
southern dty of Weimar on August 31, 
which Mr Yeltsin will attend. Moscow 
has made clear it sees plans for a sepa- 
rate send-off as shabby treatment. 

President Yeltsin, reflecting hurt 
national pride, said yesterday during 
Victory Day celebrations in Moscow: “It 
Is Important to remember just one thing. 

“Russia must always be addressed in a 
tone of respect because our people will 
never accept anything else from any 
country, such is the will and testament 
of those who died defending the honour 
and independence of our Motherland. " 

On a more conciliatory note. President 


Yeltsin added that disagreements with 
the west were also accompanied by 
“unique opportunities to end our mutual 
distrust". 

It is clear from the differing reactions 
in east and west Germany that the Rus- 
sian role is seen differently in both 
halves of the country. 

Divisions erupted yesterday within 
Germany's opposition Social Democratic 
party, which split along east-west lines 
on how to say good-bye to the remaining 
46,000 Russian troops, who will officially 
leave on August 31. 

East German leaders of the opposition 
Social Democratic party want the Rus- 


sians to be included in the ceremonies 
with the three western allies in the 
name of peace and friendship. Tbe Cold 
War. they say, is over. 

But the west German SPD leadership, 
including Mr Rudolf Scharping, the SPD 
leader, says the Russians must march 
alone. Mr Scharpui? yesterday kicked 
Mr Kohl's government, arguing that a 
joint ceremony would confuse the role of 
western troops with Moscow's virtual 
occupation or east Germany. 

The Red Army played a crucial role in 
the defeat of Nazi Germany. An esti- 
mated 27m Soviet citizens died during 
the war. 


Mandela sets his priorities 


Eruption of joy for S Africa’s 
first black head of state 


By Michael Holman and 
Patti Waldmeir in Cape Town 

Mr Nelson Mandela yesterday 
completed his journey from 
prison to tbe presidency when 
South Africa's newly elected par- 
liament chose him as the coun- 
try’s first black head of state. 

The characteristic sounds and 
symbols of Africa echoed through 
the legislative chamber. Women 
ululated with joy from the Afri- 
can National Congress benches 
and a traditional Thembu praise 
singer, clad in s kins and beads, 
chanted the new president’s hon- 
our. 

Erstwhile rivals embraced and 
apartheid's former defenders 
saluted their new chid Men and 
women convicted of treason 
swore an oath of loyalty to the 
new state. 


They’re all in this 
h>9ether....„...... m ..Page 15 


Mr Mandela stood hand on 
heart as a military band played 
“Die Stem” (The Voice), anthem 
of apartheid South Africa. A 
white policeman saluted as the 
same band played tbe liberation 
hymn, “Nkosi sikele i'Afrika” 
(God bless Africa). Both are now 
official anthems. 

Mr Ronnie Kasrils, newly 
elected ANC member of parlia- 
ment once known as tbe scarlet 
pimpernel for his efforts to elude 
the law, spoke for many when he 
said of the spectacle: “1 have to 
keep pinching myself." 

Shares on the Johannesburg 
Stock Exchange welcomed the 
event with a 2.5 per cent rise as 
political euphoria dominated 
market RantimaTit - 

For the day at least, old enmi- 
ties were set aside. Mr Mandela 
appeared delighted to spot 
fakatha leader Chief Mangosuthu 
Buthelezi in the chamber, and 


crossed the floor to embrace him 
He also went out of his way to 
greet General Constand VDjoen, 
leader of the rightwing Freedom 
Front, and Pan Africanist Con- 
gress leader Mr Clarence Makwe- 

thii 

The government of national 
unity neared completion with tbe 
announcement of six ministers 
from the outgoing National party 
government Mr Pik Botha, for- 
mer foreign minis ter, becomes 
minister of mineral and energy 
affairs, Mr Roe If Meyer, chief 
constitutional negotiator, was 
named minister of provincial 
affairs and constitutional devel- 
opment and Dawie de Villiers, 
Cape NP leader, was appointed 
minis ter of environment 

Mr Mandela made his first pub- 
lic address as president from the 
spot where in February 1990 he 
spoke after his release from 27 
years in jafl. 

He told thousands outride Cape 
Town city hall: “Today we are 
entering a new era. Today we cel- 
ebrate not the victory of a party, 
but a victory for all the people erf 
South Africa." 

He said: “We place our vision 
of a new constitutional order on 
the table not as conquerors, pres- 
cribing to the conquered. We 
speak as fellow citizens to heal 
the wounds of the past with the 
intent of constructing a new 
order based on justice for aH.” 

In a section of the speech 
aimed at minority communities, 
Mr Mandela pledged a social 
order “which respects completely 
the culture, language and reli- 
gious rights of all sections of our 
society and the fundamental 
rights of the individual". 

While the majority rule princi- 
ple was vital since the “vast 
majority had been systematically 
denied their rights . . . democracy 
also requires that the rights of 
political and other minorities be 
safeguarded." 



J'wA ■ 

Brothers In arms: Nelson Mandela embracing Chief Buthelezi in parliament yesterday 


Germany 
considers 
unilateral 
ban on beef 

By Quentin Peel in Bonn 

The German government will 
tomorrow consider a unilateral 
move to ban tbe import of British 
beef because of public concern 
over “mad cow disease", in defi- 
ance of the European Commis- 
sion and tbe rest of the European 
Union. 

A draft regulation to control 
beef imports will be submitted to 
the German cabinet by Mr Horst 
Seehofer. health minister, on the 
grounds that a form of the dis- 
ease - bovine spongiform 
encephalopathy (BSE) - may pos- 
sibly be communicated to 
humans. 

The German government is 
pressing ahead with the ban in 
spite of warnings from Brussels 
that it will face injunctions and 
legal action in the European 
Court of Justice. 

Its own experts have also 
expressed doubt that any unilat- 
eral ban can be effectively 
enforced because of the open bor- 
ders in the EU. But health minis- 
try officials insisted yesterday 
that the measure will be enacted 
and can be put into effect 

In London, Mrs Gillian Shep- 
hard, British agriculture minis- 
ter, said a unilateral ban on Brit- 
ish beef by Germany would be 
unjustifiable and illegal under 
the Treaty or Rome. 

Britain would take court action 
if necessary against Germany for 
creating an unfair trade barrier, 
but it looked to the European 
Commission to take action in the 

Continued on Page 16 


Mr Mandela was followed by an 
ecstatic Mr Desmond Tutu, Angli- 
can archbishop of Cape Town 
who flung his arms wide and 
declared “we are free today, all of 
us, black and white together. We 
are the rainbow people of God”. 


Bond prices fall after Fed 
leaves US rates unchanged 


By Patrick Harverson in New 
York and Ptrifip Gawfth 
aid Sara Webb in London 

Long-term US Interest rates rose 
to their highest levels for IB 
months yesterday as Wall Street 
expressed its disappointment that 
the Federal Reserve had decided 
not to tighten monetary policy to 
cool the US economy. 

After last Friday's stronger - 
than-expected April employment 
report, concern deepened on 
Wall Street that the US economy 
was growing too fast and bond 
market investors had hoped that 
the Fed would raise interest 
rates to prevent a revival of Infla- 
tion. 

However, when the Fed foiled 
to signal a rate increase yester- 
day morning, bond prices quickly 
fell. By ljun, the price of the 
benchmark 30-year bond was 
down almost three-quarters of a 
point, and its yield - the best 
measure of long-term interest 
rates - had risen to 7.61 per 
cent 

The rise in bond yields 
npset the stock market where 
the Dow Jones Industrial Aver- 


age was down 24J39 at 3,645.11 by 
lpm. 

The European government 
bond markets opened on a weak 
note in response to the decline in 
the US Treasury market on Fri- 
day afternoon, and spent most of 
the day “Fed-watching", as did 
tbe foreign exchanges. 

With the Fed holding a $29bn 
quarterly refunding auction over 
tbe next two days, there were 


Lex Page 16 

Government bonds — Page 23 

Currencies Page 34 

World markets Page 38 


expectations that it would lift 
rates. 

Mr Avinash Persaud, head of 
global currency research at JP 
Morgan in London, suggested 
that without such a move “they 
will be Furpfl with a falling bond 
market and a collapsing cur- 
rency. and that will not Induce 
foreigners to participate in the 
auction". 

In these circumstances, Mr 
Persaud predicted that the 


CONTENTS 


Naan 


1 m 

16 

Eurapmn Nam — 

-as 



hamatlaidl New— 

4 

Law* Paga 

16 





Wortd Trade Mens 

6 

| A hi .. i i i ■■ 

ranagemara. - 

8 



ObMVff 

15 

Paocto ....... 

-10 

Tochndogy 

—.12 

H Eawxrie tadettn 

_10 

Buan«&tte Law —— .11 

VHwSw 

-18 

Ma. 

a 


Arts Guide. 


QummjiJ . 


UK 24.35 

HL Cap MU* 23 

hfl. Companies 1020-22 


Canmot M e g < 


dollar would fall to the levels 
at which central banks were 
forced last week to intervene in 
support. 

Figures released in Japan yes- 
terday gave encouragment to the 
dollar. The unadjusted current 
account surplus for March fell 
16.1 per cent to $l5.7Gbn, from 
$L&.79bn a year earlier, suggest- 
ing that the huge surplus that 
has supported the yen might be 
starting to shrink. 

Figures released by the minis- 
try of finance also revealed a 
long-term capital surplus of 
J2L92bn in March, the highest on 
record. This was the result of 
Japanese companies selling US 
and European bonds ahead of the 
March financial year end, and 
foreign buying of Japanese 
stocks - 

Mr Persaud said these capital 
figures, which explain the recent 
strength of the yen. were a 
one-off and unlikely to be 
repeated. 

The combined effect of rever- 
sals in the upward trend on 
Japan's current and capital 
accounts would be to weaken the 
yen and strengthen the dollar. 


TqtfoitfOpaoni 38 

UndonSE 27 

WaBSttMl 35-38 

Bouses. 


-Sectfcnl 



Kenya. 


& THE FINANCIAL TIMES LIMITED 1994 No 32,362 Week No 19 LOHPOH - PARIS • FRAMKFUHT - NEW YORK • TOKYO 


About 

to 

prepare 

your 

1995 

budget 


The KPS System 


<dr> 

.V VV/f ttl 


Save months processing your budgets 

► corporate wide budgets in days 

KPS provides a complete distributed application 
in days eliminating months of effort preparing 
several versions of the budget. 

► KPS Interfaces with your GL 

KPS eliminates time spent manually re-entering 
data from your GL and cost centre returns 
removing the likelihood of re-keying errors. 
Budgets con then be posted back to your GL. 

► Fast response to change 

Changing spreadsheet structures involves 
extensive effort. KPS enables managers to change 
account codes, cost centres and complex 
organisational structures without reprogramming. 

►Budgeting from any perspective 

KPS supports budgeting from a top down, bottom 
up or mixed perspective. 

►Ad-hoc and Variance reporting 

Windows Reporter provides comprehensive 
graphics, ad-hoc and exception reporting. 

►Working Management 
Accounting model 

KPS provides links between your financial 
schedules enabling you to run the company from 
a Cash Flow, P&L or B/S perspective. 


For a FREE Colour Brochure contact Adaytun Systems, 
13 Great George Street. Bristol BS15RR. 

t«i 0272 21 55 55 fox 0272 22 77 49 


Name 

Company 
Address 


Telephone number, 

1010594 


Position 


. Rsstcode „ 


ADAYTUM 

— if item 


, c * 


.Y 




-« y ' 1 





FINANCIAL TIMES TUESDAY MAY 10 1 9*1 



NEWS: EUROPE 


Strasbourg awaits a change of guard 


By Dav« Gardner in Brussels European parffament 



EUROPEAN 
ELECTIONS 
June 9 and 12 


Strasbourg 
airport at 
dawn is a deso- 
late place at 
the best of 
times. But for 
many Euro- 
MPs, flying out 
early last 
Thursday from 
the final ple- 
nary session of 
the European 
parliament 
before next 
month’s Euro- 
elections, this is not the best of 
times- The forlorn expressions 
on some MEPs’ faces bore elo- 
quent testimony to widespread 
predictions that between half 
and two-thirds of them are not 
coming back. 

When the Parliament reas- 
sembles in July - as 567 mem- 
bers rather than 518 now, to 
reflect adjustments triggered 
by German unification - there 
will be a lot of new MEPs. Less 
clear is how much of the 
1994-99 intake will represent 
genuine new blood. 

Party barons in Strasbourg 
say there has been more 
intense competition for Euro- 
seats than at any time since 
the parliament became a 
directly-elected body in 1979. 

But they acknowledge that, 
as in the past, many new mem- 
bers will be refugees recycled 
from national politics, and 
same party lists will beheaded 
by figures who have no inten- 
tion of setting foot in the par- 
liament. except to collect their 
credentials. 

In France, for instance, a 
host of former Socialist minis- 
ters have emerged at the top of 
two lists, one headed by by Mr 
Michel Rocard and Ms Elisa- 
beth Guigou, and another non- 
aligned list led by business- 
man-politician Bernard Tapie 
and environmentalist Brice 
Lalonde. But this looks more 
like an attempt to salvage 
something from the wreckage 
of last year’s Socialist defeat 
In Italy, by contrast, where 
past list leaders such as the 


Powers 


Tte parliament can 


•Amend or veto most European measures passed by quaSfled majority voting, 
•Reject the Commission's draft budget end ask tar ft to be, revised 
•Help detam*» fcrtrire Commission tfrough endHctf-yearaW 
•Dfcmfes entire Commission with censure motion 


It cannot 


•Initiate (agMadon 

•Dismiss fecfiYidu^ Comrressfcjn members 
•Decide BJ revenues 



Breakdown of MEPs 


Age groups 


Background^ 


Average attendance' 


20-35 

5 

Mate. • 

4t& ■ . Industry 

30 

•s&sai.'* i*r, 




V; 

‘As • ■ 

50-65 

251 

•-Total 

518 . MPa* \ 

• 124 



: .*r : r =-* ...v 

. '<iVV r 


-fer. 

Unknown 

6. 


Misc, 

20 






January 1994 

February 

March 


3S5 685% 

348 67-2% 
372 71.8% 
378 726% 


Sou-oo: in’ baaed ooW>dMctoibtag rao N«a fci 1?»aropopnCorop<pioo* (taa^ 'Mombem or former inaptm of ration* pwtamert 


— nm>iw«rt far amtora. 
Not al ngMad flttnbm 
otMxiaB sessions 


disgraced former Socialist 
prime minister, Mr Bettlno 
Craxi, or the former Commu- 
nist leader Achilie Ochetto, 
hardly ever turned up, the vic- 
tor of the March election, Mr 
Silvio Berlusconi, is contem- 
plating heading several lists 
for Strasbourg. 

It can be safely predicted 
that the new parliament will 
be more socialist in complex- 
ion and more German in 
accent Germans will almost 
certainly lead the Christian 
Democrats and the Greens, and 
could lead the Socialists too. 

As witnessed in recent 
months, notably over ratifica- 


tion of EU enlargement the 
Strasbourg assembly will also 
become more assertive of the 
new legislative rights it won 
through the Maastricht treaty. 

The Socialist Group, already 
a dominant force with 197 
MEPs. is expected to gain 
beyond 220 members. Its main 
rival, the Christian Democrat 
European People's party group, 
is likely to see its representa- 
tion fall from 162 now to about 
15a 

In the outgoing parliament, 
the two big blocs collaborated 
closely, parcelled out the key 
positions, and even shared the 
presidency. The current incum- 


bent, German Christian Demo- 
crat Egon Kelpsch, succeeded 
Spanish Socialist Enrique 
Baron halfway through the 
five-year tern. 

But this bipartisan approach 
looks less assured with a prob- 
ably larger and more cohesive 
Socialist bloc, and a more frag- 
mented right. 

The mam axis of the Social- 
ist Group will be Anglo-Ger- 
man. The UK Labour party, 
already the largest national 
group at Strasbourg, with dis- 
proportionate influence, 
appears likely to win 60 or 
more seats from 46 now. With 
the increase in Germany's allo- 


cation from 81 to 99 seats, the 
SPD should get around 45. “An 
Anglo-German deal in the 
Socialist Group is vital” says 
one senior parliament official, 
not only for the cohesion of the 
Group, but for the smooth run- 
ning of the assembly. 

The leadership of the social- 
ist bloc is the single most influ- 
ential position at Strasbourg, 
and both Labour's Pauline 
Green and the SPD's Klaus 
Hansch want iL A possible 
compromise might see the job 
go to Ms Guigou, European 
affairs minister in the last 
French Socialist government 

The group leaders as a 


whole - assembled as the Con- 
ference of Chairmen - have 
become the driving force of the 
parliament, with increasingly 
professional staff and a cadre 
of experienced rapporteurs to 
steer legislation. But the other 
great prizes are the chairman- 
ships of the most important 
committees. 

Parliament has the right to 
veto most legislation passed in 
Council by qualified majority 
vote, and to reject the new 
European Commission due to 
take over next year. The abil- 
ity to turn these blocking pow- 
ers into legislative influence 
will depend on the skills of 
committee chairmen and secre- 
tariats and on the apparats of 
the political groups. 

Bodies such as the parlia- 
ment environment committee, 
headed by UK Labour MEP 
Gen Collins, already wield real 
legislative influence, and are 
among the most heavily lobb- 
ied units in the EU power 
structure. T he struggle to con- 
trol them will be fierce, but the 
parliament as a whole Is begin- 
ning to set store by having 
experienced people in charge of 
them. 

As a condition for approving 
entry for new members Aus- 
tria, Sweden, Finland and Nor- 
way, the parliament has won 
political pledges that MEPs 
will have a voice in the 1996 
review of EU power-sharing. 

As a body, Strasbourg Is 
moving closer to the centre of 
EU decision-making. If all four 
applicants join next year, 
increasing the parliament’s 
size to 639 members, MEPs 
may even get their wish to 
move to Brussels, the seat of 
EU power. 

France has persuaded its 
partners to make Strasbourg 
the assembly's permanent seat, 
but the existing parliament 
building there is too small. 
Building work on a new cham- 
ber in Strasbourg has started, 
but parliament has alsoac- 
qufred a huge building in Brus- 
sels that could fit in everyone 
-an environment of vaulted 
prominence matching the 
assembly's new ambitions. 

• • 


Bonn fears a low turn-out Greek minister 

says poll crucial 


Voter apathy could help the extremists, writes Quentin Peel 


T he leaders of all Ger- 
many’s main political 
parties are watching 
the outcome of next month’s 
European elections with con- 
siderable foreboding. 

They fear that the general 
mood of political disaffection, 
compounded by a widespread 
feeling that the European par- 
liament lacks real power, will 
lead to a low turn-out That in 
turn would boost the chances 
of the extremist parties, such 
as the far-right Republicans, 
of gaining the necessary 5 per 
cent of the votes required to 
win seats. 

In speech after speech across 
the conntiy, both Chancellor 
Helmut Kohl and Mr Rudolf 
Scharping, his Social Demo- 
cratic challenger, urge their 
audiences to go out and vote, 
to keep the extremists out. 

The government’s federal 
information office has joined 
forces with the European par- 
liament, the German Bundes- 
tag and the European Commis- 
sion to finance and launch a 
publicity campaign to encour- 
age the maximum turn-out 
Every conceivable publicity 
gimmick, from a Roger Rabbit- 
like figure in a cinema car- 
toon, through specially-printed 
telephone cards, to mobile 
vans tonring through towns 
and villages, has been roped in 
to galvanise the electors. 

And yet most political 
observers remain convinced 
that many voters will either 
stay at home, or vote for pro- 
test parties, come Jane 12. 

“People are saying they can 
vote again [at the general elec- 
tion! in October,” says Dr 
Karl-Rndolf Korte, of the Ger- 
many research group at the 
University of Mainz. ‘There is 
so mnch bad feeling on so 


Opinion poH standings: 


European elections 


Result 



1988 

1994* 

CDU/CSU 

37.8% 

38% 

SPD 

373% 

41% 

FDP 

5.6% 

6% 

Greens 

8.4% 

8% 

Republicans 

7.1% 

1% 

Others 

3.7% 

3% 


■ Srrttf Oar Sphq* pot Uy m* 

many domestic political 
issues, I am sure people feel 
that this time they can let off 
steam.” 

His gloomy forecast is not 
entirely borne out by the lat- 
est opinion poll (see table), 
which suggests a big swing 
back to the main “establish- 
ment” parties, and only a mar- 
ginal l per cent voting for the 
far-right Republicans. But no 
one quite trusts the polls. 

Last time round, die Repub- 
licans won no less than 7.1 per 
cent of the national vote, con- 
siderably better than the Free 
Democratic party (FDP), the 
minority partner in the ruling 
coalition. 

All the main parties have a 
big interest in reversing that 
trend, not least by ensuring 
the largest possible turn-out 
overall. 

Apart from overcoming apa- 
thy, the established parties 
share an obvious problem in 
limiting the protest vote. All 
of them - Mr Kohl’s Christian 
Democratic Union (CDU) and 
Its Bavarian sister party, the 
Christian Social Union (CSC), 
Mr Scharplng’s Social Demo- 
cratic party (SPD), and the 
FDP -are more or less com- 
mitted to the cause of Euro- 
pean integration. The German 
public, however, has been 
growing gradually more cau- 


tious, above all about die pro- 
cess towards economic and 
monetary union, and the 
exchange of the D-Mark for a 
single European currency. 

Restrictions on the import of 
cheap bananas from central 
America have not helped. 
Those who feel strongly 
enough about ft have little 
alternative but to vote for a 
protest party. 

An extraordinary array of 
no fewer than 23 different 
groups has been given the 
go-ahead to stand in the elec- 
tions, ranging from the Pro- 
gressive Democrats (FDS), the 
former East German commu- 
nist party on the left, to the 
Republicans on the right 

T here is also the Alliance 
of Free Citizens, 
founded by Mr Manfred 
Brunner, once chef de cabinet 
to Mr Martin Ban genian n, the 
senior German commissioner 
in Brussels, to mobilise the 
anti-Maastricht vote. 

The best thing for the big 
parties will be if all these 
smaller ones pick np a few 
votes, but none succeeds in 
crossing the 5 per cent thresh- 
old. 

Mr Kohl, Mr Scharping, and 
Mr Elans Kinkel of the FDP, 
are refusing to panic. All have 
restated their pro-European 
commitment 

The CSU, on the other hand, 
has dearly shifted towards a 
more Euro-sceptical stance, for 
fear that it will lose its seats 
In the European parliament 

altogether. 

It has to win around 40 per 
cent of die poll in Bavaria in 
order to gain 5 per cent of the 
national vote, and Bavaria is 
the home base for both the 
Republicans and Mr Brunner. 


Mr Edmund Stoiber, the CSU 
strongman and Bavarian 
prime minister, has expressed 
open doubts about the ambi- 
tion of creating a European 
“federal state”, and about the 
Maastricht timetable for mon- 
etary union. 

The other great unknown for 
the major parties is how the 
east Germans will vote in 
their very first European 
election. 

Germany will have 99 mem- 
bers of the 567 in the next 
Strasbourg parliament, includ- 
ing 18 extra for the new east 
German states. 

Most east Germans appear 
to regard the European Union 
with suspicion. 

Their greatest concern is 
that it should be rapidly 
opened to include their eastern 
neighbours - Poland, the 
Czech Republic and Hungary 
in particular - to help them 
revive old trading ties. 

It is an open question how 
their doubt will translate into 
votes. 

The big parties have also 
signally failed to mobilise 
European, as opposed to 
domestic, political themes. 

Dr Korte cites the case of the 
European parliament’s own 
campaign poster - a scantily- 
clad Europa riding a sturdy 
bull through a flaming ring of 
European stars, with a motto 
urging voters to the polls. 

The poster was withdrawn 
after vehement protests from 
feminists, over its lack of 
taste. 

“As usual, there was no con- 
troversy about European pol- 
icy. It was about women’s 
rights,” he said. “Even the 
European parliament could 
only stir up a domestic quar- 
rel” 



QUESTIONS 
ON EUROPE 


Theodore 
Pangalos. 56. 
Greece’s Euro- 
pean affairs 
minister, pres- 
iding over the 
EU’s foreign 


ministers council until June. A 
former lecturer in development 
economics at Paris university, 
he has practised law and edited 
a left-wing journal in Athens. 
How important are the elec- 
tions? They are a fundamen- 
tal test of the European pub- 
lic’s interest in European 
unification. They are the first 
elections allowing European 
citizens to participate what- 
ever their place of residenca” 

Should the parliament be 
given greater powers? “The 
parliament will actively partic- 
ipate in preparing the 1996 con- 
ference to reform EU institu- 
tions. We should aim for an 
increased role for the only 
directly elected body for Euro- 
pean citizens.” 

What should be the EIPs pri- 
orities in the next tew years? 
"Employment and migration 
flows will be the main eco- 
nomic and social problems for 
the next decade. If we don’t 
answer these two challenges 
positively, we will have a seri- 
ous political and social crisis.” 

Should the EU give priority 
to deepening integration 
among the 12, or to widening 
it towards eastern Europe? 
“The enlargement to 16 has 
almost entirely exhausted the 
limits of the EU’s capacity to 
absorb new members. Two 
small countries like Cyprus 
and Malta could start negotia- 
tions in the immediate future. 
Further enlargement will 
entail radical reform of EU 
structures." 

Are you worried that Ger- 



Pangalos: sees social priorities 

T Ufip unification and an east- 
wards shift in the EU’s centre 
of gravity could harm Greece’s 
Interests? “ ‘ Germanisation’ of 
the Union can be an irrational 
anxie ty. Strengthening the EU 
is the best way to avoid such 
dangers. Loose co-operation 
limited to economic or com- 
mercial interests could produce 
or increase domination.” 

Will assistance for poorer 
EU states eventually have to 
be cut? “What you call 'assis- 
tance' is structural action 
aimed at increasing social and 
regional cohesion and helping 
recovery. “Such action is 
essential if we want more than 
a simple free trade zone.” 

Is the aim of economic and 
monetary union by 1999 still 
practicable? “The Maastricht 
treaty provides the route to 
Emu. Some countries might 
not satisfy the criteria In 1999, 
and Greece might be one of 
them. Such countries will have 
to wait and make further 
efforts. The world wDl not end 
in 1999.” 


THE FINANCIAL TIMES 
PubfctaJ hr Tte firancaf runs (Europe) 
GmbH. NibdmpMpbtz 3. 6QJIS FranUnn 
un Main. Geramy. Tefcpfcone *-*45 W 156 
850. Fu *+49 64 5%W3I. Tcka 416193. 
Remaned in Frankfort by i. Waiter Brand. 
Wilhelm 1 . Brunei Colin A. Keaton! as 
Ge-KtaflsflUuer and in London b) r David 
G.M. Befl and Abo C Miller. Printer DVM 
Drnck-Vertrieb and Marketing GmbH. 
Adminl-RosendaM- Sirane 3a. 63263 
Nea-tccnbnre (owned by Hdrriyet 
bUtnutmun ISSN: ISSN 0174-7363 
Responsible Editor Ridnrd Lambert, cfo The 
Financial Times Limited, 
Number One Soubwuk Bridge. London SEI 
9HL, UK. SJurcbulden of ltK Framrial Time] 
(Europe) GmbH are: The Financial Times 
(Europe) Lid, Loud oo and F.T. (Gam any 
Aihmamgl LuL London. Shareholder of the 
above awflUiHMi) mo companies ic The 
Financial rows Limited, Namber One 
Southwark Bridge, London SEI 9HL Tte 
Company is nuorpuneed under the law of 
England and Wales. Chairman: D.C.M. Bed 

FRANCE 

PuhMuag Director. D. Good, Its Roe de 
R«oS, F-7SW4 Puts Cedes 01. Tefepfeme (01) 
W-OC1, Fk (Oil 4297-0629. Prate: $A 
Non) Eds*. (J/ZI Rnc de Chile, F-fllflO 
Ronhsut Cedes I. Editor Richard Lambert. 
SPJ-ligN I14M753. Ctaanbricm Parita ire 
No tTBWX 

DENMARK 

2SS* 1 'Tin** (Scandinavia) Ltd. Vtamd- 
S™ .^A- DK-II61 Copenhagen K, Tek- 
|dw*S3l3 4Ml.Fii)jfc5r?5 


Surge in Euro-polls has party big guns aiming at Marseilles’ favourite son 

Tapie’s recovery unnerves Socialists 


By Alice Rawstham In Paris 

Mr Bernard Tapie, the 
controversial French politician 
and businessman, yesterday 
sought to quash speculation 
that he might contest next 
year's presidential election by 
claiming that his wain politi- 
cal ambition was to become 
mayor of Marseilles. 

“The next election, the only 
one that interests me, is the 
Marseilles election," be said on 
French radio. “None of the oth- 
ers interests me at all." 

Mr Tapie, who holds a parlia- 
mentary seat near Marseilles 
and was briefly minis ter of 
urban affairs in the last Social- 
ist cabinet has come under fire 
from the Socialist establish- 


ment because of the success of 
MRG, his radical left group, in 
the campaign for nest month’s 
European elections. MRG, 


tary elections by building on 
their gains In this spring’s 
local vote. 

Ms Martins Aubry, a former 


Mr Tapie has come under fire from the 
Socialist establishment because of the 
success of MRG, his radical left group, in 
the campaign for next month’s elections 


recently dabbed Les Tapistes 
by the French press, has risen 
steadily in the opinion polls. It 
now commands the support of 
around 10 per cent of the elec- 
torate, thereby jeopardising 
the Socialists' hopes of repair- 
ing the damage caused by their 
defeat In last year's paritamen- 


Socialist nriwiBter who is the 
daughter of Mir Jacques Delors, 
president of the European 
Commission and a mntemfor 
for the Socialist presidential 
candidacy, on Sunday accused 
Mr Tapie of having “no con- 
crete ideas” to offer voters and 
of “showering people with Illu- 


sions'’. Her criticism was ech- 
oed by Mr Michel Rocard, 
Socialist first secretary and Mr 
Defers’ chief rival for the presi- 
dential candidacy, who said 
that he was “in complete intel- 
lectual agreement" with Ms 
Aubry on the Tapie issue. 

So far the opposition of the 
establishment appears to have 
enhanced Mr Tapis's popular- 
ity with the French public, 
rather than detracting from It. 
He has always cut a flamboy- 
ant figure in the elitist world 
of French politics as one of the 
few self-made men ever to have 
made it to the top. 

His popularity has even sur- 
vived a series of scandals over 
his business dealings. Mr Tapie 
has not only been implicated in 


the allegations of match-rig- 
ging against Olymplque-Mar- 
seille, bis football club, bat is 
under investigation in a fraud 
trial He was last week final 
FErlm (*170,000) by the French 
stock market authorities for 
releasing misleading informa- 
tion about one or his old busi- 
ness interests. 

These revelations, coupled 
with the recent decision by 
Credit Lyonnais, his bank, to 
cal in his loans, have served to 
reinforce Mr Tapie’s maverick 
reputation and have helped 
fuel Les Tapistes' rise in the 
opinion polls. The French 
media has been swift to draw 
parallels between Mr Tapie and 
Mr Silvio Berlusconi, the new 
Italian prime minister. 



EUROPEAN NEWS DIGEST 

Delay in naming 
Italian cabinet 

President Oscar Luigi Scalfaro was last night reported to be 
holding up confirmation of Italy’s 53rd post-war cabinet 
headed by media magnate turned politician Silvio Berlusconi. 
The president was said to be holding reservations over the 
compromise arrangement worked out for two key posts, into, 
rior and justice. This had been agreed by Mr Beriuanonl earlier 
in the day with his two main in the Freedom Alliance 
- the populist Northern League of Mr Umberto Boss! and the 
neo-fascist MSI/National Alliance of Mr Gianfranco Flni 
Berlusconi had to allow the League's number two to take the 
Interior Ministry on the basis that the Justice Ministry vas 
earmarked for Mr Cesare Previti, a newly elected senator for 
Forza Italia and Mr Berlusconi's principal lawyer. 

President Scaffkro has previously been critical of the inte- 
rior portfolio going to the League, which is rooted solely in the 
north and has strong federalist demands. He also was said to 
have been concerned that Mr Previti was too dose to Mr 
Berlusconi's Fininvest media empire at a time when magis- 
trates are investigating it 

Matters were complicated over the week-end by the refusal 
of Mr Antonio Di Pietro, Italy’s best known anti-corruption 
magistrate, to take the pest of interior minister as an indepen- 
dent. The issue is expected to be clarified today. If notit wffl 
be almost impossible to fit into this week the necessary 
mnfidwy-p motions in the two bouses. Robert Graham, Same 

French regional finance reform 

French prime minister Edouard Balladur has agreed to early 
reform of local government finance after his interior mbdstsr, 
Mr flhuriAs Pasqua, threatened to resign if he did not Mr 
Balladur had wanted to delay, until after the presidential 
election in a year's time, action on an issue that divides the 
two components of his coalition government -the UDF centre- 
right, which believes in regional autonomy, and the RPR 
Gaullists, who believe in a more centralised state. 

But Mr Pasqua, the RPR interior minister, has championed 
the need for France's central government to step in to reduce 
growing regional fiscal disparities over the past decade, and as 
one of the most popular and populist ministers he was 
strongly placed to insist, a David Buchan, Paris 

Schneider in tax evasion probe 

Mr Jtirgen Schneider, the German property magnate whose 
comp an y went bankrupt with debts of up to DM5bn (ElJBShny 
after he disappeared last month, is now under investigation 
for tax evasion, the Frankfurt prosecutor’s office said yester- 
day. Mr Schneider is already under investigation for falsifica- 
tion of documents and is the subject of bankruptcy proceed- 
ings. A warrant has been issued for his arrest Mrs HUdegard 
Becker-Toussaint, spokeswoman for the prosecutor's office, 
said the new investigation had been triggered by numerous 
Schneider employees reporting income on which they had not 
paid taxes and information from the tax authorities. Mrs 
Becker-Toussaint was unable to comment on newspaper 
reports that Mr Schneider had transferred DM242m to 
accounts in the Bahamas via London. Reuter, Frankfurt 

New plan for Olympic Airways 

Greece is due to present a revised plan for restructuring 
Olympic Airways, the loss-making state carrier, to the Euro 
pean Commission today. The government wants peratissuzi 
from the Commission to write off more than DrfOObn (ELlbn) 
in accumulated debt and provide a capital injection for tbs 
company. The restructuring calls for cutting over 1,200 jobs, 
Eliminating almost all long-banl routes and reducing the size 
of Olympic's fleet In addition, wages would be frozen for up to 
four years. Olympic’s unions have accepted the need for 
restructuring; including some job losses, but oppose the wage 
freeze. The airline’s operating losses last year were Dr23bn, 
and are forecast at Dr24bn for this year, while accumulated 
debt is projected to reach Dr550bn- The Commission rejected 
as “unrealistic" a five-year restructuring plan for Olympic 
submitted last summer. Kerin Hope, Athens 

Lot, American Airlines in pact 

Lot Poland's state-owned national airline, and American Air- 
lines, one of America’s biggest carriers, are to sign a memo- 
randum of understanding today on a co-operation agreement 
According to Lot sources the agreement will involve no finan- 
cial links between the two airlines but a sharing of ticket and 
communications networks. Lot which has a modem fleet of 
Boeing airliners, carried 1.4m passengers last year, io per cent 
more than in 1992. Last year the airline reported a modest 
Zloty 42bn (£i-25m) net profit compared with a Zloty 84bn net 
loss in the previous year. Christopher Bobtnski. Warsaw 

Serbs ‘still have heavy weapons’ 

The commander of United Nations troops In Gorazds said 
yesterday he believed the Serbs still had heavy weapons 
within the 20km weapons ea uduai on zone around the Bosnian 
Moslem town, in defiance of a Nato ultimatum. Lieutenant 
Colonel David Santa-Olalla, the UN commander in Gontzde, 
said, "I am quite certain that there are still heavy weapons 
being held within the zone.” He added that the Sabs still had 
between 100 and 150 police in the 3km zone. UN officials say 
the police are in feet soldiers who have just changed their 
uniforms. UN Protection Force spokesman Eric Chaperon said 
Bosnian Serb leader Radovan Karadzic had assured Mr Sergio 
Vieira de Mello, the UN’s bead of civil affairs, that the troops 
would pull out of the Moslem enclave but nothing happened. 
Reuter, Sarajevo 

■ Croatia is reviving the kuna, the currency used by the Nazi 
puppet regime of the second world war. It will replace the 
dinar, inherited from Croatia’s days in the old Yugoslav feder- 
ation. from May 30 - Croatian Statehood Day. Reuter, Zagreb 

ECONOMIC WATCH 


Greek inflation edges to 10-4% 


C wbco s WhHon . 

Annual. % change in CPI 
.18— ^ 



Greece’s annual inflation rate 
rose to 10.4 per cent is April 
from 10J2 per cent the previ- 
ous month, according to fig* 
ures released yesterday by 
the national statistical Sffl> 
vice. Monthly consumer 
{Rices were up by 1.5 per cent, 
the result of a new tax on 
hftatmg fuel hi ghe r food 
prices. Rises in household 
rents and petrol prices also 
contributed to the rise. Lest 
month’s rise reverses a year 
long trend that has seen infla- 
tion fell steadily from a peak 
<afta of 16.4 per cent in March 1993- 

WJW '' . However, Greece’s inflation 

scxwmGmastroam. ' rate is still more than three 

times the EU average. The government. Imping to meet the 
target of single-digit inflation by the third quarter of 1984, has 
avoided price rises for electricity and transport, despite pres- 
sure from public utilities. Kerin Hope. Athens 

■ West German insolvencies rose by 29,7 per rep* in February 
from a year earlier to 1,710 cases, the Federal Statistics Office 
said. The total included 1,283 insolvent r-nmptmfr* up 32.0 per 
cent In the first two months of 1994, west German insofeen* 
cies totalled 3.287. up 24.4 per cent, of which 2,418 were 
companies, up 27.5 per cent 

■ The number of insolvencies in Austrian companies rose 
sharply in 1993 to 5,082 from 3,658 in 1992, the Austrian 
credit-watch agency Kreditschutxverband von 1870 (KSV) said. 
Outstanding liabilities in the insolvencies rose to Schlffi. 9 *” 1 
(£i J2bn) from Sch23.6bn. 

■ Swedish Gross Domestic Product growth was forecast at 1-8 
per cent in 1994 and 2.5 per cent in 1995 by the Swedish 
commercial banking group Svens ka H»mtei<toinirw> 





.’.1.4 


U i 






FINANCIAL TIMES TUESDAY MAY 10 1994 


3 




=■*■ iif 


II pr(d 


( >: 




NEWS: EUROPE 


Estonia protests at 
‘invasion threat’ 


By Bnxde dark 

Mr Juri Luik, the Estonian 
foreign minister, yesterday 
accused Russia of threatening 
to invade his country by issu- 
ing veiled namings that the 
former Soviet garrison in the 
Baltic republic might be 
reinforced. 

He told a meeting of the 
Western European Union in 
Luxembourg the Russian state- 
ments were "unacceptable if 
not ludicrous” and said they 
should be denounced by the 
international community as 
open intimidation. He was 
referring to a statement last 
Friday by General Pavel 
Grachev, the Russian defence 

mini ster, that MOSCOW COIlld 

“provide reliable security*' for 
its bases in Estonia if political 

Circumstances nhanged- 

Estonia was one of nine 
nations from the former east- 
ern bloc admitted yesterday as 
"associate partners'* in the 
WEU, the loosely-knit defence 
grouping which is gradually 
acquiring strength. 

The new status will give the 
ex-communist countries con- 
sultation rights at the WEU 


but no defence guarantees. It 
marks an important step for 
the European Union as it tries 
to strengthen its political and 
military ties with eastern 
Europe and the Baltic states 

Without alienating Russia. 

All six states - tnnimting the 
Czech Repnblic, Hungary, 
Poland, Slovakia. Bulgaria and 
Romania - as well as the Bal- 
tic trio are being treated as 
future EU members. 

Talks between Russia and 
Estonia about withdrawing the 
2,600-strong garrison broke 
down last week and Moscow 
said it would not name a date 
for renewing them until the 
Baltic republic came up with 
more "constructive” proposals. 

Earlier, the two sides had 
agreed in principle cm a with- 
drawal date of August 31. 
Estonia says a formal agree- 
ment was ready to sign at the 
end of March, but Russia unex- 
pectedly started reopening old 
questions. 

The main sticking point has 
been the rights of "retired” 
Russian officers in Estonia, 
seen tor the Baltic republic as a 
potential cover for the reten- 
tion of a covert military and 


intelligence presence. 

According to Estonian esti- 
mates. the 10.600 residents of 
the republic who draw Russian 
military pensions include 1,000 
people under the age of 50, mid 
360 who are below 45. Among 
the latter group are paratroop- 
ers and counterintelligence 
officers in their 30s. 

Estonia insists it will not fol- 
low the example of Latvia, 
which secured a troop with- 
drawal deal by passing up the 
right to vet the military pen- 
sioners on its soil and granting 
Russia access to an important 
radar station. T allinn is resist- 
ing new Russian demands for 
the retention till the year 2000 
of 200 military personnel at the 
sensitive naval and nuclear 
reactor base of PaldiskL 

The three Baltic republics 
have set up a joint peace-keep- 
ing battalion which uses 
En glish as a working language 
and is receiving help from 
Britain. Other providers of mil- 
itary knowhow to the region 
include Sweden and Finland, 
which yesterday backed away 
from their traditional neutral- 
ity and joined the “Partnership 
for Peace” devised by Nato. 


Hungary’s left in poll uprising 

Only the liberals can prevent a landslide by ex-communists, writes Nicholas Denton 


H ungarian liberals yes- 
terday began an uphill 
battle to stop the for- 
mer communists translating 
their victory in Sunday’s par- 
liamentary elections into a 
landslide in the second and 
decisive round of voting on 
May 29. 

With 32.5 per cent of the 
vote, the Hungarian Socialist 
party, the successor to the 
communist regime, won 55 
seats, took the food in a further 
158 and cnnm wi thm reach of 
an outright majority in Hunga- 
ry’s 386-seat parliament 
The Hungarian elections 
establish as a firm trend the 
resurgence of former commu- 
nists in the region on a tide of 
public disillusionment with the 
pain of economic transition. 
Socialists are back in power in 
Poland and Lithuania and only 
in the Czech Republic have the 
ruling conservatives main- 
tained their popularity. 

The Socialist surge came at 
the expense of the governing 
conservatives. Voters, bitter at 
the decline in their living stan- 
dards, gave the Hungarian 
Democratic Forum only 12 per 
cent of the vote. But the liberal 
Alliance of Free Democrats, 
whose 19.4 per cent of the vote 


Hungary: return of the left 


Hungarian SodaEst Party MSZP 
- Mfanee of Rve Democrats SZOSZ 
Federation of Young De m o crats RD63Z 
. Chitaten Democratic KDNP 
Hu n garian Democratic Forum MQ F 
Indepe nd e n t S ma BroMere Party WOP . 

Other ■ 

Baaed on let found v*r 



put it in second place, called 
on voters yesterday to switch 
to it in the run-off election 
later this month to avert a 
Socialist political monopoly. 

A Free Democrat comeback 
would deny the Socialists an 
outright majority and make 
the most likely outcome of the 
election a coalition between 
the two parties. As in Poland, 
the Hungarian ex-communists 


may offer the premiership to 
the leader of their smaller 
coalition partner, the Free 
Democrats', Mr Gabor Kuncze. 

Hungary’s stock market bad 
discounted a strong Socialist 
showing in the elections but 
the prospect of an outright 
majority for the former com- 
munists caused consternation. 
Only one transaction took 
place in the first 45 minutes of 


Budapest SE Inde* 

1,900 — 



1-500' * ' * 

Mar 1994 May 

Source; FT GrapMa 

trading yesterday. But when 
activity did begin there were 
few price movements and the 
BSE index closed down just 
1.56 on 1619.22. 

Compensation coupons, the 
vouchers issued by the conser- 
vative government to owners 
of property confiscated by the 
former communist regime, fell 
to an all-time low of 19 .5 per 
cent before recovering slightly. 


These special securities can 
be used to buy state property, 
and while the Socialists have 
said they will continue with 
this privatisation programme, 
the market doubts they will be 

as generous as the current gov- 
ernment in offering state com- 
panies for coupons. 

A public offering for compen- 
sation coupons of shores in 
Danubius Hotels, one of Hun- 
gary's three large hotel chains, 
was massively oversubscribed 
as investors sought to reduce 
their holdings of the securities. 

Mr Laszlo Bekesi, the former 
and likely future Socialist 
finance minister, also said in 
an interview that he would 
Immediately halt the small 
shareholder programme, n 
Hungarian variant of mass pri- 
vatisation which allows small 
investors to pay for public 
issues on an instalment basis. 

But Mr Bekesi, who repre- 
sents the strong technocratic 
wing of the party, reaffirmed 
the Socialists’ overall commit- 
ment to privatisation. He 
indeed suggested he would 
open the economy further to 
foreign investors, who have 
already Injected more than 
S7bn (£4.7bn) into Hungary in 
the last five years. 


Ex-communists embrace a half-capitalist Bulgaria 

Virginia Marsh on an emerging private sector dominated by the bright young party and intelligence officers of the ‘perestroika’ years 


I n Bulgaria's transition to a market 
economy - as in other former east bloc 
countries - it is former senior commu- 
nists and secret police officers who have 
been among the quickest to embrace capi- 
talism. 

"There is little doubt that communist 
capital is behind many of the leading 
entrepreneurs one sees in Bulgaria today,” 
says a western observer. "They will tell 
you they founded their media empire with 
two typewriters in a one-room office. What 
they don’t tell you is that the sett week 
they somehow managed to raise a couple 
of million dollars.” 

Many of the self-styled "Group of 13”, 
the name given to the business lobby 
recently founded by the country’s largest 
private companies, started business this 
way. Between them, the G-13 control a 
large part of the country's emerging pri- 
vate sector. Their empires include banks, 
insurance companies, stock exchanges, 
large trading and finanrial companies, real 


estate developments, television channels, 
and newspapers. Some G-13 companies 
already have annual turnovers of more 
than $lbn (£685m). 

Several G-13 executives were among 
those sent abroad in Bulgaria's "peres- 
troika years” of the 1960s by the Bulgarian 
Intelligence Service, the former regime’s 
secret police. Bright young officers were 
sent to top business schools in Europe and 
the US or to work in foreign trade compa- 
nies which were often used as conduits for 
Communist party slush funds. 

The BIS aimed to step up its Industrial 
espionage activities through a network 
ran g in g from Liechtenstein. Austria and 
Switzerland to Silicon Valley in the US. 
These included the diversion of embargoed 
high technology equipment and informa- 
tion to the then east bloc. 

Once communism collapsed, former BIS 


prime position to go into private business. 

The G-13's kingpin is Mr Ivan Pavlov, 
head of Multi-Group, considered the most 
powerful of the G-13 companies. A former 
professional wrestler, Mr Pavlov married 
the daughter of the head of military count- 


er-intelligence and worked with deposed 
dictator Todor Zhivkov’s son-in-law as an 
art dealer in the 1980s, before moving to 
Malta. There he traded scrap Soviet sub- 
marines with, he says, Turkish financing . 

Once back in Bulgaria he expanded into 
metal and oil trading, agrob usiness es and 


inrimHng a hank insurance company, the 
country’s most act i ve stock exchange and 
a sugar plant recently purchased from the 
state in one of the country’s biggest priva- 
tisation deals to date. 

Mr Pavlov is also believed to control 


nine casinos, seven in Bulgaria and two in 
Paraguay. Until recently, one of Multi- 
Group’s "consultants” was Mr Emil Doy- 
nov, a former business associate of the 
late British publisher Robert Maxwell and 
brother of Oguyan Doynov, a senior com- 
munist-era minister. The Doynov brothers 
are widely held to be behind Multi-Group. 

Many consider thaf Multi-Group' and 


other similar G-13 companies operate on 
the fringes of the law, gaining positions 
through their contacts in political circles 
and in the state enterprise sector, which 
still accounts for 90 per cent of industrial 
production. 

One well-used scam is for privately- 
owned trading companies to over-charge 
state companies for raw materials or buy 
products cheaply and sell them on with a 
big mark-up. Another common practice is 
for mmpanlfts to operate through offshore 
subsidiaries to avoid local regulations and 
to qualify for tax and other benefits 
reserved for foreign investors. 

The government is belatedly taking 
steps to crack down on fraud and to 
strengthen tax administration after a 50 
per cent shortfall in expected revenues 
last year. However, Mr Dimitar Rostov, 
the deputy finance minister, says: "There 
are suggestions that not all the methods 
used by G-13 companies are legaL We do 
not have facts that they are avoiding tax. 


Rather, they are finding legally-based 
incentives." 

He also denies that the G-13 are as pow- 
erful or as dangerous as they are made out 
to be. But many in business and diplo- 
matic circles fear that their activities set a 
bad precedent in a country which is 
already lagging behind in implementing 
reform and where many are ambivalent 
about the transition to a market economy. 
There is also concern that G-13 companies, 
which, fearing foreign competition, have 
started a campaign to protect "national 
capital”, are prepared to sabotage efforts 
by foreign companies to participate in pri- 
vatisation or invest in Bulgaria. 

A western banker in Sofia says: “These 
companies have the power to poison the 
scene, the ability to buy politicians. There 
is clearly a need for regulation before it is 
too late. Today these guys work in broad 
daylight; in five years* time it will be 
much more difficult to trace their tracks 
and connections.” 


employees with a foreign education and 
contacts, and alleged access to the providing security services. Multi-Group 
regime’s foreign bank accounts, were in a now employs 3,500 in 50 local companies 


The self-styled Group of 13’s empire includes banks, 
insurance companies, stock exchanges, large trading 
and financial companies, real estate developments, 
television channels, and newspapers 


i \ 


V 







SOMETHING 
WE DON'T 
HAVE THE 
TecHNOL-oov 
TO MAKE. 



TECHNOLOGY THAT 
WORKS FOR LIFE 




Through commitment. 

Innovation and an emphasis 
on total quality, 

Samsung has become one 
of the world’s fastest 
growing technology resources. 
Samsung Is not only on 
the forefront of electronics, 
but has received world- 
wide recognition for advances 
In engineering as well. 

Below are Just a few examples 
of how Samsung quality 
and technology are working 
for everyone. 

For more, write Postfach 
5803, 85733, Eschborn, 
Germany. Phone 06196-570100. 
Fax 06198-74646. 

ELECTRONICS 
199-gram cellular phone 
Hlgh-deflnltlon TV 
64M DRAM semiconductors 
Notebook PC 
Home service robot 

ENGINEERING 

Offshore oil and gas platform 
Aerospace 

Dozers, excavators and loaders 
Chemicals 

Double-hull oil tankers 


) 


V 



NEWS: INTERNATIONAL 


Debts from troubled countries compel cut in lending for third year and tougher sanctions 


Mounting arrears weigh on African bank 


By Leslie Crawford, 
Africa Correspondent 


Mounting arrears from 
borrowing countries and the 
need to make greater provi- 
sions against loan defaults 
reduced the African Develop- 
ment Bank's net income by 31 
per cent last year to SI 12m. 

The AfDB's financial results, 
presented yesterday at the 
bank's a nnual general meeting 
in Nairobi, are only marginally 
healthier than the sickly conti- 
nent it was set up to help- 
Arrears owed to the bank and 
the African Development 
Fund, its soft loan arm, rose to 
$700m in 1993, against dis- 
bursed and outstanding loans 
of $8.4bn. Most of the arrears 
are chronic debts from broken 
countries such are Zaire, 
Liberia and Somalia. 

Others are from AfDB mem- 
bers who are sinking deeper 


into poverty. Excluding South 
Africa, the continent’s gross 
domestic product grew by only 
L4 per cent in 1993, less than 
half the rise in population. 

To keep its international 
credit rating, the AfDB cut 
tendi ng for the third year run- 
ning and began to apply 
tougher sanctions against 
defaulters. As a result Gabon 
and Kenya have brought then- 
interest payments up to date, 
while the Cameroon, which is 
$95m in arrears, is negotiating 
an assistance package from the 
IMP a pd Paris Club which will 
allow it to clear its outstanding 
debts with the AfDB. 

Bank governors say they are 
concerned with two main 
issues: how to deal with the 
mounting arrears and the seri- 
ous managerial and policy 
shortcomings which plague the 
bank. In addition, some gover- 
nors have begun to question 


African Development Bank 


Not Income <M UW) " Average return (%} 



Total loon a r mors (UA* 40 van} 

fexefcxSnp arrears to ADf=) 


m 





UA'm 

44J2(T1D%) 


67J9ft&8%) 


80.1 (17-2*) 


GEJ On loans 




2 


80.7(20.1%) 


1991 1992 1998' 
-UfetMtof AccauNfrpftM „ 


WT :• < C T'V.- 

ML ■: V-’i 1394(34.8%) 

1993’. 


the bank’s continued ability to 
provide long-term development 
finance when most of its cli- 
ents can no long e r afford its 
commercial lending farms. 

“The arrears have piled up in 
part because the bank contin- 
ued to lend on hard terms to 


countries which had no credit - 
worthiness,” says Mr Eberhard 
Kurth, Germany’s representa- 
tive on the board of governors. 
“We are toning the bank that 
Germany's future support will 
depend on better lending poli- 
cies and increased efficiency." 


Africa’s growing impoverish- 
ment is placing greater 
demands on the African Devel- 
opment Fund. But its coffers 
are empty. Industrial coun- 
tries , which own one third of 
the AfDB and donate funds 
every three years to the bank's 


Palestinians await policemen’s return 


Julian Ozanne in Rafah watches preparations for a heroes’ welcome 


Thousands of Palestinians 
waving their national flag and 
singing traditional songs about 
the orange and olive groves in 
the land of Palestine lined 
roads to the Egyptian border 
yesterday and waited anx- 
iously to give Palestinian 
policemen a heroes’ welcome. 

The arrival of the policemen, 
many of them former soldiers 
and veterans of wars with 
Israel, is seen fay most Arabs as 
the first real change on the 
ground after the Palestinian 
self-rule agreement for Gaza 
and Jericho, signed in Cairo 
last week. For hundreds of peo- 
ple waiting in the midday heat 
yesterday, the arrival of the 
policemen marks the begin- 
ning of the end of 27 years of 
Israeli occupation. 

More than 100 policemen 
were expected to cross the bor- 
der before nightfall and take 
over a former army base in 
Delr al-Balah. Another contin- 
gent of 270 policemen is 
camped on the Jordanian bor- 
der waiting to cross into Jeri- 
cho, the future seat of the Pal- 
estinian administration. 

Israeli police in Jericho yes- 
terday loaded desks, filing cab- 
inets and kitchenware on to a 
flatbed truck in preparation for 
handing over the police post 

Eventually the Palestinian 
police force will number 9,000, 
7,000 of them from outside the 
occupied lands. 

Donkey carts and cars 
draped with the Palestinian 



■ ' 'i '■ : V’*v k V /• 

* *r> 



illfi 





V. 


An official Danish observer from the Temporary International Presence in Hebron, on the first day 
of a mission to promote security, holds a list of complaints from a Palestinian yesterday ap 


flag and pictures of Mr Yassir 
Arafat, chairman of the Pales- 
tine Liberation Organisation, 
choked the road to the cross- 


Drivers honked their horns 
and children waited on sandy 
dunes for their first glimpse of 
their exiled countrymen’s 
homecoming. 

Near the crossing Palestin- 
ian men heat drums, women 


ululated and PLO activists 
chanted praises of Mr Arafat 
and Abu Jihad, the former PLO 
number two who is believed to 
have been assassinated by the 
Israelis. 

As the policemen were 
delayed several hours in cross- 
ing the border terminal, frus- 
tration overtook the festival 
spirit and Israeli police and sol- 
diers fired rubber bullets, per- 


cussion grenades and tear gas 
to push back unruly young 
men. 

Throughout the afternoon 
soldiers chased exerted youths 
through almond orchards and 
brought jeeps and a truck with 
two water cannons to clear the 
road which will carry the 
policemen, dressed in olive 
drab uniforms, into Gaza in a 
fleet of buses. 


“The whole world is here 
watching you," shouted one 
marshal in a camouflage 
jacket “People are going to 
judge us by how we behave 
here. This is a historic day for 
celebrating, not for throwing 
stones," PLO officials urged 
the crowd by loudspeaker 

But at least 10 Palestinians 
were wounded by Israeli sol- 
diers in incidents across the 
Gaza Strip, despite the offi- 
cials’ efforts. Young people, 
who remain suspicious and 
hostile to Isra el , clearly i ntend 
to ta unt and ~harags departing 
Israeli soldiers who are set to 
evacuate the Strip within days. 

In a sign of defiance one 
teenager yesterday set about 
bringing down a road sign in 
Hebrew with a hacksaw. 

I srael i officials blamed the 
delay on PLO in-preparedness 
and said they had wanted Mr 
Arafat, to namg his 24-member 
“cabinet" before allowing 
police into Gaza-Jericho. Pales- 
tinians said part of the delay 
was caused by difficulties air- 
lifting policemen from conflict- 
torn Ye men . 

Older Palestinians, however, 
were less impatient “We have 
been waiting years for this 
happy day; a few more hours 
won’t hurt," said Mr Abdel 
Malik el-Masri, 42, a farmer. 
“The policemen are our sol- 
diers and they will bring us 
safety and security and end the 
occupation. Things will start to 
change.” 


Laurie Connell found guilty of conspiracy 


By Nikki Tart in Sydney 


Mr Laurie Connell, the West Australian 
businessman and former bead of Roth- 
wells bank, which backed a number of 
the nation's “entrepreneurs" in the 
1980s. was yesterday found guilty of 
conspiracy to pervert the course of jus- 
tice. 

The jury in the Perth district court 
acquitted Mr Connell of another count 
of conspiring to fix the LS83 Bunbury 
Cup. a regional horse race run about 
140 miles south of Perth. 

But they decided Mr Connell was 
behind payments worth more than 
A3500.000 (£238,000) to Mr Danny 
Hobby, the former jockey who was rid- 
ing one of the favourites in the race but 


allegedly jumped from the saddle before 
the race ended. Mr Hobby left the coun- 
try and the payments were supposedly 
made to him to stay out of Australia 
and the reach of police for nine years. 

The verdict came after a 106-day trial, 
and evidence from more than 100 wit- 
nesses. The jury deliberated more than 
35 hours over six days before reaching 
its verdict. Sentence will be passed 
tomorrow; the maximum penalty for 
the charge on which Mr Connell has 
been found guilty is seven years' jaiL 

Lawyers for the businessman said he 
would appeal, adding they believed the 
jury, which returned a unanimous deci- 
sion, had reached a compromise to 
release themselves from further deliber- 
ation. “I have a suspicion in my mind 


that the jury had spent so long in delib- 
eration that they had to find a way 
out,” Mr Alec Shand, QC, acting for Mr 
C on ne l l, said. 

Mr Connell, now 48, is the son of an 
Irish bus driver and the great-grandson 
of West Australia's longest-serving 
police commissioner. He became a 
prominent figure in the 1980s, when he 
was an important business contact of 
Mr Brian Burke, then Western Austra- 
lia’s Labor premier, and a dose associ- 
ate of Mr Alan Bond, the Perth-based 
former tycoon. 

In its heyday, Kothwells, Mr Connell's 
merchant bank, presented itself as an 
aggressive financial institution. He 
became known as “Last-Resort Laurie” 
for taking on clients others were reluc- 


tant to deal with. 

But the bank proved heavily bor- 
rowed and ran into difficulties immedi- 
ately after the 1987 stock market crash. 
Mr Bond tried to organise a rescue 
package, with backing from business- 
men such as Mr Kerry Packer, Mr Rob- 
ert Holmes & Court, Mr John Elliott, 
and Mr Brian YuIlL But the effort was 
doomed and Rothwells was liquidated 
in 1988. Five years ago, Mr Connell was 
charged with a series of Rothwells-re- 
lated matters, due to be heard in a 
Perth court later this year. 

Mr Connell won fame for making the 
biggest bet in Australasian history, 
winning A$3m after badring the win- 
ners in the Melbourne and Caulfield 
Cups. 


Memory fails Bond in asset hearings 


Nikki Tait on the court questioning of a bankrupt Australian tycoon 


For the past week Alan Bond 
has sat in a packed Sydney 
courtroom {facing a barrage of 
questions about the where- 
abouts of his former assets. 
The questions have come from 
the former tycoon's bank- 
ruptcy trustee, appointed by 
the court to act on behalf of his 
creditors, and from the liquida- 
tor or Dalihold Investments, Mr 
Bond's privately-owned invest- 
ment holding company. 

These are the hearings 
which the Perth-based entre- 
preneur had long sought to 
avoid, saying that illness, 
depression and brain damage 
resulting from open-heart sur- 
gery rendered him unfit to 
take the stand. Now that he Is 
under oath in the witness-box 
in terms of Australia's bank- 
ruptcy procedures, his perfor- 
mance has ranged from that of 
a sorrowful amnesiac to a 
feisty barracker. 

Starting with a one-man 
painting company, Mr Bond 
built an international media, 
brewing and property business 
led by Bond Corporation Hold- 
ings. a quoted flagship with 
assets of about ASlobn 
<E4Sbn). 

It all began to fall apart with 
the stock market crash of 1987 
and ended in bankruptcy in 
1992 with debts and contingent 


liabilities of more than 
ASTOOm. 

The main contention of Mr 
Fronds Douglas QC, acting for 
the bankruptcy trustee, is that 
a series of companies or trusts 
were set up in the Channel 
Islands during the 1970s and 
1980s to hold Mr Bond's per- 
sonal assets, but that these 
were never declared in the 
statement of affinrs when Mr 
Bond went bankrupt In 1992. 
The names of the entities 
included Kirk Holdings, Icarus 
Trust, EngetaL Piaonla, Bit- 
tern. Lindsay Trading, and 
Panamanian-registered Juno 
Equities, which supposedly 
operates out of Switzerland. 

According to the trustee, 
Kirk Holdings was used to buy 
property in the UK. paintings 
from Neville Keating Pictures, 
art consultants of London, 
shares (including shares in 
Bond Corporation) and horses 
for Mr Bond’s daughter, Suz- 
anne. According to Mr Doug- 
las, it eventually became too 
well-known as a “Bond com- 
pany” after Suzanne's divorce 
proceedings in 1987 and was 
wound up. its assets being 
transferred to Juno. 

Mr Douglas has produced 
enough paper work to suggest 
that Kirk Holdings was dealing 
in large sums. In late 1986. for 





Bond: few recollections 


example. Kirk allegedly 
instructed Touche Ross's Jer- 
sey office, via Allied Irish 
Bank, to transfer US$2.75m 
(£l.S8m) to Mr Band's account 
at Arbuthnot Latham, the Lon- 
don merchant bask, to early 
1987, $541,700 went to James 
Capei, to buy shares on b ehalf 
or Kirk, Mr Douglas said. 

The trustee’s problem is that 
Mr Bond says he cannot recall 
anything about most of these 
entities. He cannot remember 
Touche Ross in Jersey, which 
organised and administered 
the offshore companies. He 
thinks he might have been to 


Jersey once, but only to the 
airport, to sign some papers. 

Where evidence to the con- 
trary has been presented- for 
example, bank payments or 
letters signed by Mr Bond - he 
has modified bis response. 
Without admitting any know- 
ledge of the Channel Islands 
vehicles, he has tended to sug- 
gest that they must have been 
related to other entities in the 
complex Bond group. 

When Mr Douglas produced 
a deposition (the result of a 
question-and-answer session 
with lawyers) from Mr Geoff 
Davies, in which the Touche 
Ross partner said that he 
believed Kirk was for the ulti- 
mate benefit of Mr Bond, his 
wife and his family, Mr Bond 
said simply that he had never 
dealt with Mr Davies. 

Mr Bond has also insisted 
that certain assets which the 
bankruptcy trustee believes 
were the former tycoon’s, 
belong (or belonged) to Mr 
Jurg Bollag. Mr Bollag, Mr 
Bond acknowledges, is a Swiss 
b u si n ess m an and friend, who 
was one of the four people per- 
mitted to give instructions to 
Touche Ross on Mr Bond’s 
behalf. He has also helped pay 
Mr Bond's legal fees. 

Included in the Bollag cate- 
gory of assets was a house in 


Chelsea, in which Mr Bond's 
son lived tor several years, and 
which was sold last year for 
£610,000, and a London apart- 
ment sub-leased to Diana Bliss, 
Mr Bond’s former girlfriend. 

Mr Douglas asked. “Was 
there any reason why Diana 
Bliss should be able to per- 
suade Mr Bollag to buy and 
sub-lease" a property? “I don't 
recalL Z don’t think we were 
seeing each other at the time. 
She met Mr Bollag separately," 
Mr Bond replied. 

But while the hearing have 
constituted a public forum for 
the discovery work done by the 
trustee, and will, perhaps, per- 
suade creditors that efforts are 
still being made on their 
behalf, what happens now is 
not clear. 

Pursuit of more information, 
via Mr Bollag in Switzerland, 
is a possibility and a task 
which the trustee has begun. 
But it will be time<ansuming. 
And even if the trustee's sup- 
positions are correct, there is 
little guarantee that assets win 
be sitting in a Swiss bank 
waiting to be returned. 

Meanwhile, hearings on 
behalf of the liquidator of Dal- 
lhold, which began late yester- 
day morning were adjourned 
after Mr Bond reported dizzy 
spells and pains in the chest 



Israel lifts 
rate by 
half point 


By Juftan Ozanne 


Israel raised its prime interest 
rate 0J> percentage points yes- 
terday as the central hank con- 
tinued to try to damp prices to 
meet this year’s 8 per cent 
animal inflation target 

Mr Jacob Frenkel, governor 
of the Bank of Israel, sought 
to allay fears among Israeli 
manufacturers and Finance 
Ministry officials worried 
about the impact on sales and 
economic growth from interest 
rate rises. 

“This is a moderate change,” 
Mr Frenkel said. 

Yesterday's increase, the 
second this year, raises the 
Rank of Israel lending rate to 
commercial b anks from HW to 
11 per cent Mr Frenkel said 
the adjustment was necessary 
to tighten monetary policy 
after the bank assessed that 
inflation was 10 per cent on an 
annualised basis 

Mr Frenkel blamed housing 
prices, increasing at 20 per 
cent a year, for the govern- 
ment’s problems with infla- 
tion. “Privatisation of govern- 
ment land and changing the 
designation of land to allow 
more residential building wiB 
help. But the policy is not yet 
fully implemented and the 
fight against inflation cannot 
watt.” 

He would “not hesitate” to 
increase interest rates further 
if necessary. 


Australia 

boosts 

business 

immigrants 


By NBckf Tatt hi Sydney 


Australia is significantly to 
broaden Its business immigra- 
tion programme, in the hope of 
attracting wealthier individu- 
als prepared to invest in the 
country. 

Individuals will be asked to 
make a three-year investment 
of at least A$760,000 (£357,000), 
to be placed in government 
securities, although applicants 
will still have to demonstrate 
“business or investment 
achievement” and pass a 
points test, in which age and 
English language ability will 
be examined. 

Temporary residents who 
have “a record of substantial 
financial commitment to their 
own business in Australia, and 
who have been actively 
involved in its operation and 
management for at hast one 
year, will have the opportunity 
to remain in Australia perma- 
nently from 1995," for example. 

The new class was dHRigngrf 
for business people who did 
not want to commit themselves 
immediately to hands-on busi- 
ness activity in Australia as 

r ious rules had stipulated, 
Nick Bolkus. immigration 
minister, said. 

Immigration levels have 
been the subject of heated 
debate in Australia, (hie school 
of thought argues that the 
additional supply of labour is 
detrimental when the country 
is feeing doubledigit levels of 
unemployment. However, a 
number of academic studies 
have suggested the additional 
demand within the economy 
tends to offset this negative 
factor. 

Yesterday, the opposition 
attacked the business skills 
changes as questionable, "fids 
is nothing more than a buy-a- 
visa scheme to enable the gov- 
ernment to fond its budget def- 
icit,” Senator Jim Short said. 
Total number of permitted 
Immigrants will rise by 10,000 

to 86JW0 for 1993-94. 


1 Xt£l 


FINANCIAL TIMES TUESDAY MAY IQ 1994 




*.ir< 


Syrians turn to i^ssio 


concessional window, are ref- 
using to replenish the ADF 
until the hank streamlines its 
bureaucracy and tightens its 
lending policies. 

Governors rgTT1P to the Nai- 
robi meeting armed with a 
damag in g report of external 
consultants that depicted the 
bank as a top-heavy institution 
with little control over its lend* 
mg projects. “We have had too 
man y promises of reform in 
the past." Mr Kurth says. “This 
time we are seeking legal safe- 
guards to tie the release of con- 
cessionary funds to improve- 
ments in the bank's 
governance and lending poli- 
cies” 

US Treasury officials say it is 
unlikely new fends will match 
the $3.4bn pledged three years’ 
ago. despite Africa’s increased 
need for concessionary finance. 
With luck, they behave donors 
might pledge $2bn soon. 


entrepreneurs 
for big returns 


E very month, thousands 
of Syrian investors 
make their way to the 
centre of Aleppo, the second 
largest city in Syria, to collect 
substantial dividends on their 
savings. They pass the empty 
and dilapidated state-owned 
Commercial Bank of Syria, and 
enter plush and computerised 
offices of Anas Trading Corpo- 
ration, run by a private sector 
entrepreneur, Mr Mohammad 

T ifaHac 

There they receive a hand- 
some yearly interest rate of 
between 30 and 40 pa* cent, 
paid in monthly instalments. 
Sums invested range from 
SE5.0Q0 (about 3108) to S£10m 
(about $217,400) and Mr Kallas 
has more than 4J0 00 individual 
investors on his books. 

While the Syrian govern- 
ment talks limply about open- 
ing a Damascus stock 
exchange and reforming the 
banking system, Mr Kallas' 
thriving business is already 
fulfilling such services. 

Few Syrians deposit tbeir 
savings in the government 
banks. Although interest rates 
are between 5 and 12 per cent, 
annual inflation rates of over 
15 per cent means they would 
lose in real terms. Since it is 
illegal to take local currency 
out of the country, ordinary 
Syrians frequently complain 
they have few places to put 
thrir money. 

Mr Kailas says he has a capi- 
tal of more than S£2bn from 
people of all walks of life. He 
explains that depositors' 
money is invested In the corpo- 
ration's export-oriented indus- 
tries, such as its clothes and 
cotton processing factories, 
fruit juice plants, and engineer- 
ing shops. 

The interest paid on 
accounts is based on profit- 
margins and while a provi- 
sional rate is paid each month, 
the final dividends are calcu- 
lated at the end of each year. 

Unlike a bank, however, 
there are no government guar- 
antees against losses. There 
are no shareholder meetings, 
company reports, or regula- 
tions to protect investors from 
fraud. Aleppo remembers only 
too clearly a number of seem- 
ingly successful operations like 
Anas Trading which collapsed 
overnight in the late 1980s. 
And there are plenty of others 
offering the same kind of ser- 
vice as Mr Kallas who could go 
under anytime. 

Thus, predictably, tile mar- 
ket is ultra-sensitive to 
rumours. Mr Kallas recounts 
that two months ago. specula- 
tion that Anas Trading had 
gone bust spread through 
Aleppo like fire. In one morn- 
ing. depositors demanded the 
return of S£60m which was 
paid the same day out of the 


export payments account am 
Mr Kallas' own pocket Once 
people realised they could m 
their money back, however 
most of it was re-deposited tha 
next day. he says. 

At the root of Mr Kallas' suc- 
cess is widespread frustration 
among Syrians at the slow 
pace of economic reforms. Lib. 
eralisation of the economy 
began in the 1980s, but the 
essential pillars of a command 
economy - a massive public 
sector, over-valued exeV 
rate, trade restrictions and for- 
eign exchange controls - 
remain intact 

Although in many areas the 
private sector is doing well - 
benefiting especially than fee 
Encouragement of Investment 
Law No 10 of 1991 which often 
tax and import incentives - 
the regime remains cautious 
about relinquishing too much 
control. 


Frustration at 
the slow pace of 
economic reform 
is forcing 
investors into the 
private sector, 
writes James 
Whittington 


Privatisation of state assets 
is firmly off the agenda. The 
government says tt prefers to 
“reform" the banking system 
rather than open up to private 
and foreign banks, and the pos- 
sibility of a Damascus stock 
exchange remains in the bal- 
ance. 

Mr Rateb Shallah. president 
of the Syrian Chambers of 
Commerce, argues that open- 
ing a stock exchange would 
not only ease the current 
liquidity problem but allow 
more people to invest in the 
private sector. 

With over 950 projects 
approved under Law No 10 
there is no shortage of private 
companies to enter a primary 
market. Mr Kallas says he 
would be the first formally to 
float his company. Further- 
more. a bourse would proride 
the private sector with the 
kind of capital resources which 
domestic hanks cannot. 

The draft bill for a stock 
exchange has been ready since 
last year for presentation to 
the People’s Assembly [or 
approval. Problems of regula- 
tion and control are cited as 
the main sticking point. Bid 
until the government makes 
up its mind. Individual inves- 
tors will have no choice but 
risk trusting their money with 
tire hfrpg of Mr Kallas. 


t 

4 *' 

# 






Al-Hariri: sought four new cabinet ministers 


* ***** *** 


Lebanon PM and 


president disagree 


Lebanese prime Minister Bafik 
al-Hariri and President Elias 
Hrawi locked horns yesterday 
over a planned government 
reshuffle. Beater reports from 
Beirut. 

The billionaire prime minis- 
ter put off all appointments, 
stayed at home and cancelled 
tomorrow' a regular cabinet 
meeting; emerging only to 
greet hundreds of supporters 
who flocked to his Beirut resi- 
dence In a show of solidarity. 

The two men agreed last 
week during a visit to Syria, 
the main foreign power broker 
in Lebanon, to strengthen 
Christian representation in the 
cabinet but have since dis- 
agreed over the extent of the 
reshuffle and the new namg; to 
be brought in. 

Relations between the Syri- 
an-backed government an d the 
once-dominant Christian 
minority have been tense in 
recent weeks and the proposed 
changes appeared an attempt 
to improve them by bringing in 
more representative Christian 
politicians. 

Political observers said Mr 


Hariri wanted to bring four 
new ministers into the 3 bmoo- 
ber cabinet -two beavywdgW 
Marontte Chri s tian potttidaiE 
- representing influential Chris- . 
tian political parties, a Sunni 
Moslem and a Shiite Moslem. 

He also wanted to swap sev- 
eral portfolios, including infe- 
rior, rtafonrn and informs tfoP, 

among the present ministers 
Hie observers said Mr Hrswi 
objected to the names Mr Har- 
iri was proposing. He was 
pressing for a broader reshuffle 
amounting to a change in 
eminent that would reduce the 
strength of Mr Hariri’s SUP" 
porters in the cabinet whife 
increasing the Christian rep*®- 
sentation. 

Complicating, the dispute. - 
parliament Speaker Nabih 
Bern rejected Mr Hariri’s sug- 
gestions and insisted that a 
Shi’ite should be nanfe“ 
finance minister. 

Mr Hariri, a Sunni Mostem 
currently holds the finance 
portfolio with Sunni Moste® 
Found Slntora, a cloj 
aide, as minister of state 
for financ e 


;\arn>" P r 


ipaminiii 




Mfs 






FINANCIAL TIMES TUESDAY MAY 10 1994 5 

NEWS: THE AMERICAS ~~ 


Healthcare reform hits 


Clinton fails to still Haiti fears 


congressional troubles 



By George Graham 
in Washington 

President Bill Clinton's 
proposal to require employers 
to provide health insurance for 
their workers, one of the cen- 
tral elements of his healthcare 
reform plan, is running into 
difficulties in Congress. 

Congressional committees 
working on healthcare legisla- 
tion are baulking at the 
employer mandate, which is 
opposed by Republicans and 
centre-right Democrats who 
fear the financial burden it 
would place on smaller busi- 
nesses. 

Congressman John Dingell. 
chairman Of the House of Rep- 
resentatives energy and com- 
merce committee, remains a 
few votes short of persuading a 
majority of his committee to 
accept the employer mandate. 

Congressman Dan Rosten- 
kowslri, chairman of the House 
ways and means committee. 


By Edward Orfebar 
in Panama City 

A millionaire h ncin p ccman 
from a discredited party which 
was the political instrument of 
two milit ary dictators has won 
a narrow victory in the Pana- 
manian presidential election, 
considered the country's clean- 
est for a quarter of a century. 

Mr Ernesto P§rez Balladares, 
47. of the Democratic Revolu- 
tionary party, won 33 per cent 
of the vote on Sunday, four 
points clear of Mrs Mireya 
Moscoso de Gruber, of the gov- 
erning Amuffista party. 

In third place was Mr Ruben 
Blades, a salsa singer and Hol- 
lywood actor with a Harvard 
law degree, who bad been 
expected to come second. 

Mr Pferez Balladares's victory 
confirms the remarkable resur- 
rection of the PRD, which was 
thrown out of power by the US 
invasion at the nnd of 1988 to 
oust the strongman General 
Manuel Noriega. 


also appears not to have a 
majority for the employer man- 
date, though he has warned his 
members that the alternative, 
if a comprehensive reform is to 
be financed, would be a broad- 
ly-based tax increase. 

In the Senate, meanwhile. 
Democratic Senator David 
Boren has signed up with the 
rival plan produced by Repub- 
lican Senator John Chafee, 
which would place the obliga-. 
tion on the individual to secure 
health insurance, rather than 
on the employer to provide it 
That could mean that the 
Senate finance committee, of 
which Ur Boren Is a member, 
ends up using the Chafee plan 
as the basis for its legislative 
drafting, rather than Mr Clin- 
ton's proposal 
The Chafee plan would 
impose a fine on anyone who 
did not have health coverage 
by 2005, just as motorists are 
now required to ob tain car 
insurance. It would also, like 


Party officials who went into 
hiding or were arrested by the 
invaders will return to govern- 
ment. Gen Noriega himself is 
serving a 40-year sentence in 
(he US for drugs offences. 

“Now we will begin to build 
together the future of the 
nation, without party political 
differences,” Mr P6rez Balla- 
dares declared in a victory 
speech on Sunday night. In 
Congress, the PRD is expected 
to foil well short of a majority 
after the congressional election 
on Sunday. 

In his camp ai g n, he played 
on memories of the party's 
founder, the late Gen Omar 
Torrijos, who is fondly recalled 
by many poor Panamanians for 
his populist social policies, and 
for negotiating a 1977 treaty 
with the US for Panama to 
take back the Panama Canal. 

Hie victor promised to cre- 
ate jobs and increase social 
spending to alleviate condi- 
tions for the poor. But the 
bulky former banker with Citi- 


the Clinton plan, prohibit 
insurance companies from ref- 
using to cover someone 
because of their health, or 
from charging them more, and 
would offer vouchers to help 
those with low incomes pay for 
insurance. 

It would thus in theory meet 
the goal of guaranteed, univer- 
sal coverage that Mr Clinton 
has said is his only unnegotia- 
ble demand. 

In practice, however, it 
would leave the government 
with a large bill if adequate 
subsidies are to be given to 
those who cannot afford health 
jnsiTTsm^ premiums. 

Hie advantage to the govern- 
ment of the employer mandate 
would be to leave intact the 
current system, in which mast 
people already get their health 
benefits from their employers, 
while shifting most of the cost 
of covering the uninsured on 
to employers who do not now 
provide health benefits. 


hank has said he would honour 
Panama’s foreign debt obliga- 
tions, main tain tight fiscal pol- 
icies. and attempt to attract 
foreign investment so as to 
improve infrastructure. 

IBs government, which is to 
take office on September I, will 
oversee the handover from the 
US, by 2000, of 34,000 hectares 
of prime real estate in the 
C anal Zone. It is unclear what 
it plans to do with the area, 
estimated to be worth several 
times P anama 's GDP of $2.4bn 
(£1.6bn). 

Many analysts speak well of 
Mr Pdrez Balladares but the 
prospect of the return to gov- 
ernment of certain characters, 
known as the “herd”, has 
raised concern. “All those 
nasty creatures are going to 
come out of the woodwork and 
ask for a place in the sun,” 
said Mr Victor Bulmer- 
Thomas. director of London 
University's Institute erf Latin 
American Studies, who was 
observing the election. 


By Jurek Martin in Washington 
and Canute James in Kingston 

President Bill Clinton’s 
weekend change of policy on 
Haiti brought some imme- 
diate respite from domestic 
criticism, but fresh comments 
yesterday by a senior White 
House adviser on the number 
of refugees who might be 
admitted to the US threatened 
to reignite controversy. 

Mr Sandy Berger, deputy 
national security adviser, said 
that only 5 per cent of about 
1,300 Haitians recently inter- 
cepted on the high seas have 
qualified for political asylum. 
“That Is not a very high num- 
ber,’’ he added, in an apparent 
attempt to calm fears in 
Florida of a new influx of 
refugees. 

But this was immediately 
disputed by Governor Lawton 
Chiles of Florida, and Demo- 
cratic Senator Bob Graham, 
who predicted a new wave of 
5,000-10,000 potential immi- 
grants each month in the 
immediate future. Florida has 
already sued the federal gov- 
ernment to recover some of the 
costs of sustaining the wave of 
immigrants, mostly from Haiti 
and Cuba. 

The new Clinton policy, out- 
lined on Sunday, has two main 
elements: first the temporary 
appointment of former Con- 
gressman Bill Gray, a 
respected black politician, as 
special envoy to Haiti, succeed- 
ing Mr Lawrence PezzuHo, who 
had been criticised for being 
too soft on the military junta. 
Mr Gray, it is hoped, win blunt 
some attacks from the congres- 
sional black caucus that US 
policy towards Haiti has been 
quasi-racist 

Second, the US is to provide 
asylum pro cessing fa c iliti es on 
its ship6 and. it is hoped, in 
third countries in the Carib- 
bean. rather than sending all 
boat people back to Haiti for 


hearings on the island. The 
new procedures, involving 
larger naval vessels, will not 
be in place for some weeks, 
however. 

Several prominent critics of 
US policy, Including the exiled 
Haitian President Jean- 
Bertrand Aristide and Mr Ran- 
dall Robinson, a Washington- 
based activist, described the 
new moves as “steps in the 


right direction”. Last week, the 
UN security council, at US 
request, imposed tougher eco- 
nomic sanctions on Haiti. 

Over the weekend, Mr Robin- 
son ended a 27-day hunger 
strike over the forcible US 
return of boat people. But, in 
interviews yesterday, he 
remained sceptical that on- 
board asylum hearings could 
meet “internationally recog- 


nised standards” for refugee 
processing. 

He continued to favour a 
“constructive” military inter- 
vention under UN or Organisa- 
tion of American States aus- 
pices but. he said. ‘It shouldn't 
be a force whose sole purpose 
is to knock down the Haitian 
military". 

Meanwhile, Haiti's military 
leaders have dismissed the UN 
plan to tighten economic sanc- 
tions. Having survived previ- 
ous sanctions, army leaders 
are increasingly confident they 
will survive the new UN mea- 
sures, and are encouraged by 
what they see as waning sup- 
port for Father Aristide, diplo- 
mats in Port-au-Prince said 
yesterday. 

The UN will impose tougher 
sanctions on Haiti on May 21 
unless the military hands over 
power to Mr Aristide by then. 
The army leaders, who have 
refused to honour earlier 
agreements for Fr Aristide's 
return, feel the US and other 
countries advocating tougher 
sanctions will lose heart if the 
new measures do not work, 
and will end their support for 
the exiled president. 

The military rulers’ apparent 
confidence in riding out sanc- 
tions is also based on the 
uncertain situation at Haiti's 

border with the Dominican 
Republic, which has been a 
loophole in earlier efforts to 
impose an economic blockade. 

Despite repeated public com- 
mitments to increase military 
patrols at the border to curb 
smuggling, mainly of fuel. 
President Joaquin Balaguer of 
the Dominican Republic is 
against tougher sanctions. 

Mr Balaguer. who is opposed 
to Fr Aristide's return, is fac- 
ing a close election in a week 
and is unlikely to take mea- 
sures. such as sealing the bor- 
der, which would also ruffle 
the military officers who are 
benefiting from smuggling. 


Strikers win above-inflation pay accord in Bolivia 


Bolivia’s trade union confederation 
emerged strengthened at the weekend 
after a 23-day public sector strike which 
forced the government of President Gon- 
zalo SAnrhei; de 1 jozada to concede above- 
inflation pay increases, John Barham 
reports from Buenos Aires. 

The COB labour confederation mobilised 
Bolivia's largest protest movement in 
recent years and won pay rises of 6-12 per 


cent for public sector employees. Even so. 
public sector wages remain very low. 
Teachers, for instance, earn the equivalent 
of $90*200 (£60-£134) a month. 

Bolivia's unions hold strikes almost 
every year as the government prepares its 
annual budget and negotiates a new mini- 
mum wage. The strikes this year were 
very bitter. Protesters blocked roads in the 
interior of the . country and demonstrated 


often in the capital. La Paz. Union leaders, 
beaded by three women from the teachers' 
union, went on hunger strike. Security 
forces broke into COB headquarters to 
take them to hospital for force-feeding. 

Mr Sanchez de Lozada. a US-educated 
millionaire businessman, was elected last 
year and is committed to continue Boliv- 
ia’s market-oriented reforms, which he 
began as planning minister in 1965. 


Narrow presidential win 
in Panama for ex-banker 


Brazil 
names day 
for new 
currency 

By Angus Foster in Sao Paulo 

Brazil will introduce a new 
currency. Us fifth since 1965, 
on July 1 as the final step of 
the government's latest effort 
to tackle inflation, now near 
50 per cent a month. 

President Itamar Franco yes- 
terday confirmed the date for 
the switch to the new cur- 
rency, the real. However, sev- 
eral important details - for 
example, future policy on the 
real's exchange rate with the 
US dollar - will not be 
announced until next month- 

Mr Rubens Ricupcro. the 
new finance minister, said 
final decisions on monetary 
and exchange rate policy were 
still being finalised, ft is 
expected the real will Initially 
be backed by Brazil’s more 
than S30bn (£20bn) of foreign 
exchange reserves. 

Mr Ricupero said be and Mr 
Pedro Malan, central bank 
chairman, would also examine 
bow state and federal banks 
would be affected by the intro- 
duction of the real. Several 
such banks rely on profits 
from high inflation to remain 
solvent. There are fears that, 

before presidential and con- 
gressional elections in Octo- 
ber, the government will have 
to support these banks and 
thus put tight monetary policy 
at risk. 

The confirmation of the 
advent of the real provided a 
welcome lift for Mr Fernando 
Henrique Cardoso, who 
resigned as finance minister in 
March to run for the presi- 
dency. The success of the anti- 
innation plan, which he nego- 
tiated, is semi as very impor- 
tant to his campai gn. 

Opinion polls late last week 
show Mr Cardoso's support at 
15 per cent down nearly five 
percentage points in the last 
month, against about 40 per 
cent for Mr Lois Indcio Lula 
da Silva of the left-of-centre 
Workers' Party. Mr Cardoso 
has been damaged by bicker- 
ing with his election allies, the 
right-wing Liberal Front and 
by the choice as running-mate 
of a lesser known senator, Mr 
Guilherme Palm eira. 



We call it the Global Digital Highway/ 
It’s our competitive advantage. 

It could be yours. 




eMifiMnimnic 


$ # 

- Hongkong Wettim Mga*y 





SfjmMcX war 



CABLE a WIRELUS 
WUHHlDIMWUfl 
imrOttAiM 
anwwii n w a 


When a company communicates more effectively than its competitors, it has a critical advantage. This is 
how Cable & Wireless Business Networks will help you achieve that. Using the Global Digital Highway, 
we will design a communication network to your exact requirements, offering a single, coherent service to 
your people worldwide. That way, you can spend less time thinking about your communications, and more 
time thinking about your business. To find out more, contact your local Cable & Wireless company. 



I 








FINANCIAL TIMES TUESDAY MAY 10 1994 


NEWS: WORLD TRADE 


fo f > 


Hungary takes 
bulk of foreign 
investment 


India aims 
for sharp 
growth in 
exports 


US delays patent move over Argentina 


By John Barham 
in Buenos Aires 


By Frances WHRams fc> Geneva 


Hungary is much the most 
successful eastern European 
country in attracting foreign 
direct investment, accounting 
for a third of the $18.3bn. 
(£l 2 JJtra) total at the twgiwwing 
of this year. 

More than SXObn, or over 55 
per cent, went to just three 
countries - Hungary, the 
Czech Jtepubhc and Poland - 
according to the United 
Nations Economic Commission 
for Europe* (ECE). 

The figures relate to the 
foreign component of paid-up 
capital, and do not include 
sums committed hut not yet 
invested. 

The bulk of foreign capital In 
the region comes from western 
Europe, which accounts for 
about 77 per cent of overseas 
investment in Hungary and 92 
per cent in Slovenia. Just over 


half the total has been invested 
in the manufacturing sector. 

The ECE says only Hungary 
has managed to attract 
substantial foreign investment 
into the important financial 
services sector, where it 
accounts for 11 per cent of all 
international investment in the 
country. 

Over 17 per-cent of all 
Hungarian enterprises now 
have a foreign capital 
component, giving overseas 
investors a big role in the 
economy. By way of contrast, 
foreign -owned enterprises in 
the Commonwealth of 
Independent States account for 
a tiny 0.2 per cent of total 
employment. 

* East-West Investment News, 
No.l Spring 1994, available 
from UN sales section. Palais 
des Nations, CB-1211 Geneva 
10, annual subscription 

m 


By Stefan Wagstyi 
in NewDeflri 


Brussels under fire 
over rum quotas 


By Canute Janies in Kingston 


European rum importers have 
been cancelling orders from 
Caribbean suppliers because 
the current import quota will 
soon be filled according to 
Caribbean exporters. 

The European rum market 
faces two months or dislocation 
because the European Union 
has refused to increase the 
quota to meet growing demand 
for the product, producers say. 

The exporters have failed 
several times to have the Euro- 
pean Commission increase the 
quota of 224,000 hectolitres by 
25,000hl to meet demand in 
Europe. The quota year expires 
in June. 

An increase in the rum 
quota is not a priority for the 
Commission, Mr Philippe Sou- 
bestre, deputy director general 
for development, said in Barba- 
dos. He said it was paying 


more attention to the EU’s 
political problems. 

Conditions for access to the 
European rum market come in 
a protocol of the Lome Conven- 
tion, a trade and aid treaty 
between the EU and the Afri- 
can, Caribbean and Pacific 
Group of countries. Rum pro- 
ducers have criticised the EU 
for being slow to honour com- 
mitments to react automati- 
cally by raising access for rum 
to meet a growing demand. 

“This is a disgraceful situa- 
tion,'’ a leading producer said 
yesterday. ‘There is paranoia 
in Europe over this matter. No 
one wants to upset the French, 
who are leading the campaig n 
against an increase in quota to 
protect their domestic produc- 
ers in their Caribbean depart- 
ments. The EU is renegingon a 
solemn commitment and will 
renege on other commit- 
ments.” 


India is planning to set a 
target of 24-25 per cent for 
export growth in the financial 
year which started last month. 
Mr Pranab Mukherjee, Tndfam 
commerce minister, said 
yesterday. 

Mr Mukherjee hoped exports 
would rise to $26bn-$27bn 
(£17.4bn-£18.1bn), from 
$2?..2bn in 1993-94, when they 
rose 20.4 per emit 
The Commerce Ministry is 
looking to rapid Increases to 
make up for the ground lost in 
tiie early 1990s when export 
growth was lrit by a collapse 
in sales to the former Soviet 
Union, once India’s biggest 
market. Also, economic 
reforms launched in 1991. 
which include incentives for 
exporters, have taken time to 
have effect 

Even though exports are 
growing fast, Mr Mukheajee’s 
target is ambitions, finance 
Ministry projections suggest 
exports may in fact grow by 
about 15 per cent. 

Mr Mukherjee said he expec- 
ted farther growth from indus- 
tries which were already con- 
tributing to exports - textiles, 
computer software, motor 
vehicle parts, engineering, 
agricultural goods, gems and 
jewellery and leather. 

He also forecast an import 
rise, after growth of only &£ 
per cent last year to 622 . 11 m. 
There was a sharp pick-up in 
March when imports were 62 
per cent higher than in March 
1993. Mr Mukherjee said that, 
with signs of industry recover- 
ing after three years of stagna- 
tion, imports could grow by 
11-12 per cent in dollar terms. 
Imports of machinery ami of 
Industrial raw materials 
would account for much of the 

ii 

gram 

Mr Mukherjee said the 
recent signing of the Uruguay 
Round accord of the General 
Agreement on Tariffs and 
Trade would benefit India and 
other developing country 
exporters by opening np 
markets in industrialised 
nations. 


Washington has postponed for 
60 days its threat to start 
proceedings against Argentina 
for its failure to enact new 
laws for the protection of intel- 
lectual property. 

Mr Mickey Kantor, US trade 
representative, said last month 
he would investigate damage 
to US companies in Argentina 
caused by inadequate patent 
laws. 

The investigation could then 
have led to the imposition of 

trade sanetifliTMi. 

Pharmaceutical companies 
are said to be the most 
affected. Estimates of damage 
vary between $50Qm (£335m) 
and $S00m a year. The Argen- 
tine drugs market, has grown 



Cavallo deft) and Kantor want Argentine intellectual property law updated iwwQiynoaMkMT j 


rapidly in the last three years, 
with annual sales of J3bn. 

However, the US embassy in 
Buenos Aires has said the post- 
ponement was a “positive ges- 


ture which, the United States 
hopes, will give Argentina suf- 
ficient time to pass adequate 
and effective patent reform 
legislation". 


The US has been in the fore- 
front of developed country 
pressure on Argentina to intro- 
duce new patent laws. The gov- 
ernment introduced legislation 


into Congress three years ago 
to upgrade the current 1864 
law, but the bin has made little 
progress. 

Local laboratories, together 
with the nationalist wings of 
both the governing PerouLst 
partyand the opposition Radi- 
cal party, have obstructed 
debate. 

US and European multina- 
tional companies complain 
that the government has been 
giving the bill a low priority. 

However, both Preside 
Carlos Menem and Mr 
Domingo Cavallo, economy 
minister, have said they would 
press the Congress to pass the 
bill as soon as possible. Mr 
Cavallo said this was “not due 
to US pressure, but because it 
is necessary to attract invest- 
ments’ to Argentina. 


Programme to increase tourist arrivals 


Ga" I ,n 

stress «'*■ 

on P rici 


By Shiraz Skftnta in New Delhi 


The Indian government baa 
fannrhpri a tourism' promotion 
programme to increase the 
number of foreign visitors from 
1.76m to 5m over three years. 

A calmer political climate 
anA further opening up of the 
economy have led to an 
increase in tourist arrivals, to 
1.76m from L5m the previous 
year. Foreign grahang o earn- 
ings from tourism increased by 
14 per cent to 61.47bu for 
1993^94, according to figures 
published by the Ministry of 
Tourism and Civil Aviation. 

Mr flhnlam Nahi Arad, tour- 
ism minister, said Bombay air- 
port, the country's prime entry 
point, alone handled 164.000 


domestic and international 
flights, an increase of more 
than iso per nmt in a decade. 
Liberalisation of domestic 
routes last year helped ease 
both congestion and non-avail- 
ability of seats on flights 
within the country. 

Tourism is India’s third-lat- 
est foreign exchange earner, 
and has more of a range of 
d estinations to offer than most 
countries in the world. But the 
country accounts for 0.2 per 
cent of internati onal tourism, 
largely because of inadequate 
infrastructure. 

Officials in the Tou rism Min- 
istry say a big constraint is the 
lack of middle-level hotels in 
the country. “The choice we 
offer the foreign tourist is lim- 


ited,” said a senior official. The 
foreign tourist must choose 
between expensive five-star 
comfort or small hotels that 
cater to backpackers and lack 
the most basic of amenities. 
“Our plan is to offer something 
to the tourist between the 
very wealthy ones and the 
business travellers, an d those 
who have very little money to 
spend.” 

Foreign hotel c hains are 
enthusiastic about the more 
relaxed investment rules after 
liberalisation (the hotel indus- 
try has always been dominated 
by private companies), and are 
flocking to India with joint 
ventures. The government 
estimates that foreign 
investment is worth at least 


$250m (£i68m) in the hotel 
industry. 

The Australian Southern 
Pacific hotels plans to start a 
series of three-star travel 
lodges in main cities. The 
Oberoi group is linking with 
Accor of France to start a net- 
work of motels across the 
country- Kainate, a chain of 
south Indian restaurants, is 
linking with the Japanese Dai 
Id and Pearl Hotels, to offer 
budget accommodation at Bud- 
dhist pilgrimage destinations. 

The Indian Taj Group, winch 
operates some of India's finest 
hotels, plans a 350-room hotel 
in Bombay to supplement its 
famous Taj Mahal, and a series 
of Club Med resorts in associa- 
tion with the French company. 


And a group of non-resident 
Indians has got together with 
the Irish company, Deltic Man- 
agement, to buUd a Rs8.7bn 
(£IS6m) 600-room floating lux- 
ury hotel in Bombay. 


OECD Export Cractt Raima 


Co-o pTMtl oa 


ut rates {%} for nfffntslty 
su pported upon orsdHs, for 
May IB to June 14 1BB4 (Apr* 
18 IMS to May 14 IBM to 


Australia assails US trade barriers 


Australia's trade deficit with 
the US is widening because c f 
import barriers Washington 
has erected to protect its own 
producers, the Australian 
government said in a report 
published yesterday , Reuter 
reports from Canberra 
The deficit was now 
proportionally bigger than the 
US trade deficit with Japan, 
according to the report by the 
Australian Department of 
Foreign Affairs and Trade. 
“The fact that a number of 


major Australian exports are 
subject to stringent US import 
controls has contributed to the 
growing imbalance in trade,” it 
said. 

The report said there were 
long-standing concerns over 
access to the US market 
particularly for such key 
Australian agricultural 
products, as beef, dairy 
products and sugar. 

It said there were also 
concerns over the impact of US 
farm export subsidies on 


Australian exports to third 
countries, particularly of 
wheat barley, malt and dairy 
products. 

In the year to June 30, 1993 
Australian exports to the US 
were worth A$49Zbn (£296bn) 
while imports from the US 
were worth A513.01bn. 

Australia's resulting trade 
deficit of A68.09bn with the US 
is its highest deficit with any 
one country. 

“It is also larger, 
proportionally, than the US 


trade deficit with Japan,” the 
departmental report said. 

The im pl<»manfa|Hnn of the 
North American Free Trade 
Agreement (Nafta) had not 
raised specific barriers against 
Australian imports, but had 
increased the potential for 
trade diversion through origin 
rules and tariff harmonisation 
tactics, the report said. 

The report did not specify 
what Australia would do to 
push the US to remove its 
barriers. 


D-Mark 

7.12 (MS| 1 

Ecu 

7JN(aasj 1 

Ranch franc 

GuUar 

T* (7.MI | 

i 

up to 5 years 

are (&aq 

5 to an ywn 

7M(TJS) ; 

more than &5 yaara 

aio (79Q| i 

Nairn Bra 

MAfMQI j 

Van 

420(420} . 

Paaata 

araiasj) 

Sterflng 

am (793) 

SvrtM franc 

US doflar for cra<Bts 

878(591) 

up to 5 yarn 

428 (MG) 

S to an yaara 

7.82(594 

more than as yaara 

790 (7-28) 

TIMM mtm an putapmn momHf b/ tpa Ham- 
dP Thma. mtmfy a to n**Ma et fm ma 

A pramtai of 02 par csX h la M addad la 
am oadt mtm Mian efqp at Ml MM ta 


SDR-bmad mm of tiM an tha mm tar 

at axrendm. For p**x/ font January *5 to 
My 1* ton S TU D— tt tala m* Cm &BB 
par tmnt B mpmemm m mtaim mm et am pm 
cant Vta SOMmmd m> «rif aga* ttiaaga on 
Mr tsim*. 




Trial n\w 
for 

POViVw 

diesel .• •> 


: ^•ays Seen me heart 

•- "v- ■ • 

;^v • .of/ yew: irr the 

" t TAJfs ■.ig4.Stip9^& Deatmo^strca:;-' 

’,y • t .X - ; v •• • 

choosing the 

v v i-. . ~ 

v. or the si'- 

Z • 

7 Z you can tt 

f - 


**» Yt- ’ 

'• 

t-V.-v 

P!*i 


i . 


instantaneous 

^ 7;- : 7 .• 

V ’ • . smooth. 

' ■ ' , ’ on 



■ T . could de- 

"7 

fceC • 0S. - vvftr: 


Jos;...', 
ft]'.';. ; 

H-,7 

<W ' 

;^7; 
- M , 

'Up! . 


77 $3 

7: 

tssray features o' 


5:061 'hst 
" ifltSpr^s. ft the 


:■ • 

toi'i, < 

SI'- 

ffcpk ” 




^7-7. 

ity. 4 ’*.. 

- 



FINANCIAL TIMES TUESDAY MAY 10 1994 


7 









\ ■ V . 

■'.i :• 


( ■ -v. .. * 

i" i " * *** 

' M ,.l 

• * '**. * 
% 

•I ' c, ‘ *' 

■ l i:' v ’ 


rrivals 



I** ^twniwi*, 

Cuw, m« HU Q-”? 

-■« ™ STj 

;-n «£ 

77” ' " Cp J jn e u 

^.;s? ■-■ - 


C' Mr 
l>-. 


<«.r>Vnr 

:. v .:.. Ill 

■f 

Tjl. I - ■ 

M 
c 
l* 


-.••.■* s; 


tr" 

•i- 


-• t ■ 


U 

• ir.-. 'y 


NEWS: UK 


Tory turmoil over referendum on Europe 


By Kevin Brown and Philip Stephens 

The Conservative party was in 
turmoil last night as Mr John Major 
fought a rearguard battle against 
intense pressure for a referendum on 
the nest steps towards European Inte- 
gration. 

Amid a frantic round of factional 
meetings at Westminster. Downing 
Street insisted that the prime minis- 
ter remained opposed to a referen- 
dum, but refused to rule out the idea. 

Officials said there had been “huge 
exaggeration and tremendous hyper- 
bole" in reports of divisions between 
cabinet ministers on the merits of a 
referendum. 

However, senior ministers said Mr 


Major must end the impression of dis- 
array by making the government’s 
position dear at prime minister's 
question time in the Commons today. 

The prime minister is expected to 
consult senior colleagues before tak- 
ing a final decision on how to respond 
to growing pressure for a referendum 
from backbench MPs. 

Leading members of the 1322 com- 
mittee of Conservative MPs said that 
the promise of a referendum in 
advance of any further integration 
was now the only way to unify the 
party. 

The idea was also being pressed 
energetically by leading members of 
the right-wing Euro-sceptic 92 group 
of MPs. However, the smaller Positive 


Europe group decided to oppose a ref- 
erendum in most circumstances. 

Friends of the prime minister said 
that a referendum would be fraught 
with political dangers for Mr Major 
because of bis repeated insistence in 
the Maastricht debates that only par- 
liament was competent to decide the 
issue. 

The Conservative party opposed 
both the referenda called by Labour - 
on Europe in 1975 and on Scottish and 
Welsh pa rliaments in 1978 • on consti- 
tutional grounds. 

Senior cabinet ministers such as Mr 
Kenneth Clarke, chancellor of the 
exchequer, and Mr Douglas Hurd, for- 
eign secretary, continue to argue that 
it would be wrong for the Conserva- 


tive party to call a referendum. 

Mr Major also has to decide 
whether the offer of a referendum 
would appease the Euro-sceptics suffi- 
ciently to paper over the split until 
the vote. 

One leading Euro-sceptic said that 
the offer of a referendum would 
immediately be followed by campaign- 
ing to ensure that the result ‘tied the 
government's" hands in the IGC nego- 
tiations. 

There was disagreement about the 
impact of a referendum on the cam- 
paign for the European elections. Mr 
David Hunt, employment secretary, 
said there was no point in “trying to 
take people's min ds away from the 
critical European elections-” 


Mr Hunt's co mm ents reflected deep 
unease about a pledge by Mr Paddy 
Ashdown, the Liberal Democrat 
leader, that his party would support a 
referendum on the outcome of the 
1996 intergovernmental conference. 

The announcement was seen as a 
significant blow to the Conservative 
campaign for the European elections 
because It will weaken the party’s 
attempts to portray the Liberal Demo- 
crats as in thrall to Brussels. 

Mr John Smith, opposition Labour 
party leader, sought to avoid the issue 
yesterday by claiming that the out- 
come of the EU’s 1996 intergovern- 
mental conference - the next review 
of the union's Institutions - was too 
far ahead to require a decision now. 


Gas proposals 
stress restraint 
on price rises 


By Robert Corane, Deborah 
Hargreaves and James Blitz 

The government yesterday 
published its long-delayed gas 
industry consultation paper 
outlining how foil competition 
will be introduced to 18m 
households by 1998. 

The report, prepared jointly 
by the industry regulator 
Ofjgas and the Department of 
Trade and Industry, went to 
some lengths to allay fears 
about possible price increases, 
saying price pressures which 
might prnpr gp in the transition 
to full competition could be 
limited by regulation. 

The standing charge which 
household consumers pay will 
remain under a capped formula 
at least until 1997. In addition 
British Gas tariffs are not 
expected to “increase by more 
than the rate of infla tion” in 
the transition period between 
April 1996, when 5 per cent of 
the market will be opened to 
competition, and the foil mar- 
ket opening two years later. 

The report conceded, how- 
ever, that regional prices could 
vary by plus or minus 2 to 4 
per cent because of different 
transport costs. 

Independent gas suppliers 
eager to take an British Gas in 
its most lucrative market sec- 
tor expressed disappointment 
that the document did not go 
further in explaining how com- 
petition will be achieved. 

"For aU the agonising that’s 
gone into it, it’s a bit thin. It 
addresses the major issues but 
doesn’t sketch out in any detail 
what the public gas supply 
licence might look like,” raid 
Mr John Astrop. commercial 
director at Kinetica, a joint 


venture between Conoco and 
PowerGen. 

The independent companies 
are keen to see the follow-up 
report to be published shortly 
by Ofjgas which win contain 
details of the costs to be 
charged for using British Gas's 
pipelines system. 

Mr Cedric Brown, British 
Gas chief executive, welcomed 
the recommendation that "the 
industry as a whole.. should 
underpin the special needs of 
the more vulnerable groups In 
society.” But he warned "time 
is short” to implement the gov- 
ernment's programme, the 
scale of which has “never 
before [been] attempted any- 
where in the world.” 

British Gas shares yesterday 
closed at 285p, up lftp. 

The document was originally 
due to be published in Febru- 
ary. Mr Tim Eggar, energy 
minister, said yesterday he 
would make "no apology” for 
the delay. 

Government critics had 
charged that the document was 
being held up for political rear 
sons, and implementation of 
the deregulation proposals 
would lead to sharp price rises 
for less well-off consumers. Mr 
E ggar dismissed such claims as 
"rubbish”, and said the docu- 
ment formed the “framework 
for delivering the benefits of 
competition" to all consumers. 

But Ms Claire Spottiswopde. 
director general of Ofgas, said 
it was impossible to "guaran- 
tee that prices won’t rise." She 
said she was confident that 
deregulation would deliver 
benefits across a broad range 
of consumers, and not just to 
those which consume large 
amounts of gas. 



Eighty-five year old Commodore Bill Warwick (right) the first Captain of the Queen Elizabeth 2. with Us son. Captain Ron Warwick, 
who took command of the liner in 1990, on the bridge at the start of the 25th anniversary voyage to New York. The QE2’s owners, 
Trafalgar House, are to carry out e x t e ns i v e refurbishmeuts this autumn to extend her service life into the 21st century pe&m: opioonm 


Reuters plans financial TV service 


By Raymond Snoddy 

Reuters, the news and 
financial information group, 
next month plans to launch a 
new form of specialist televi- 
sion by satellite to computer 
screens. 

The service, an example of 
multimedia In action, is aimed 
at foreign exchange, debt and 
treasury financial markets, 
and will be Car removed from 
conventional television. 

Mr Mark Wood, editor-in- 
chief of Reuters Holdings, said 
yesterday extensive research 
showed City professionals "did 
not want television. They want 


video information that is use- 
ful." 

Usually Reuters Financial 
Television will only go on air 
when there are events or com- 
ments capable of driving mar- 
kets. There will be a 15-minute 
morning briefing at 7.15, and 
possibly a second at lunch 
time. Apart from that there 
will be five minute bursts of 
live television when justified 
by the news. 

The service will be available 
on adapted Reuters dealing 
screens. A screen ikon will 
□ash two minutes before a 
transmission the television 
picture can either be a small 


square in the corner of the 
screen or be enlarged to 
occupy the full screen. 

Charges will be between £80 
and £100 a month per screen. 
Mr Wood said yesterday he 
hoped 1,000 screens would be 
receiving the service across 
Europe by the end of the year. 

Apart from news and instant 
live commentary from ana- 
lysts, Mr Wood said the service 
would provide the opportunity 
to communicate directly with 
the markets for the first time. 
"It will show the' furrows in 
the brow and how people react 
to questions and how they give 
information," said Mr Wood. 


A pilot item carried an inter- 
view with Mr Kenneth Clarke, 
the Chancellor talking about 
his discussions with Mr Eddie 
George, the Governor of the 
Bank of England. 

Reuters Financial Television, 
which will be delivered to for- 
eign exchange dealers across 
Europe, will use the digital 
video compression system 
developed by NTL, the priva- 
tised engineering division of 
the former Independent Broad- 
casting Authority. 

Reuters said yesterday it 
hoped launch a separate televi- 
sion service for equities deal- 
ers. 


Trial run 
for seed- 
powered 
diesel cars 


By Chris Tighe 

Farm way, a 2,500 member 
north eastern England farm- 
ers' co-operative, will this 
week begin running some of 
its cars and lorries on bio- 
diesel produced from rapeseed 
grown on set-aside land. 

British Bio-diesel, a consor- 
tium formed by a group of 
East Durham farmers, 
together with Farmway, spe- 
cialist seed crusher Unitrition, 
and Chemoxy, a manufacturer 
of ester (an organic com- 
pound), has produced 4,000 
gallons of biodiesel, believed 
to be the UK’s first 

The trial by seven Farmway 
vehicles, normally run on con- 
ventional diesel, will test 
vehicle emissions. A North 
Yorkshire Peugeot dealer’s 
courtesy car wfD also use the 
fuel to gauge public reaction 
and engine performance will 
be evaluated by Perkins 
Engines and Lucas. 

The consortium believes bio- 
diesel is an environmentally 
friendly fuel which also offers 
farmers a productive use for 
set-aside land, on which food 
crops are haired. Farmway Is 
paying members £98 a tonne - 
about one acre’s production - 
for tiie rapeseed. This does not 
affect set-aside payments. 

The Initiative was instigated 
the East Durham Bio-Diesel 
Working Group, formed by 
arable farmers in the Easing- 
ton area. They say bio-diesel 
produces lower emissions of 
sulphur, hydrocarbons and 
particulate matter and, if spilt, 
is 95 per cent biodegradable 
within three weds, and folly 
within five. 

Farmer Mr David Cowton, a 
Group member, said the quan- 
tity of bio-diesel which could 
be produced from UK set-aside 
land would not supplant ordi- 
nary diesel, hut would be 
attractive in enviro n mentally 
sensitive areas such as pol- 
luted urban locations. 


Accountancy profession 
set to probe Polly Peck 


By Andrew Jade 

The accountancy profession is 
poised to launch a high-level 
disciplinary inquiry into Polly 
Peck International, the 
collapsed conglomerate 
formerly controlled by Mr Asll 
Nadir. 

The Joint disciplinary 
scheme, the most senior 
regulatory body within the 
profession, is expected to 
announce an Investigation 
within the next few days. 

It is likely to concentrate on 
the role of Stoy Hayward, the 
accountancy firm which was 
the principal auditor to Polly 
Peck. Officials may examine 
the conduct of any member 
firms or individual 
accountants connected to the 
company. 

The development comes just 
over a' year after Mr Nadir 
broke his bail ■twntitimg and 
fled Britain for his native 
northern Cyprus while- facing 
charges for theft and false 
accounting totalling £3fen. 


The joint disciplinary 
scheme, which represents the 
Institute of Chartered 
Accountants in En gland and 
Wales, the Institute of 
Chartered Accountants of 
Scotland and the Chartered 
Association of Certified 
Accountants, only examines 
the most serious and public of 
incidents. 

It received a substantial 
blow last month when the 
House of Lords ruled against it 
and in favour of accountants 
Price Waterhouse, under 
inquiry for its audit of the 
collapsed Bank of Credit and 
Commerce International. 

In a setback for 
self-regulation, the Lords 
supported the court of appeal’s 
ruling that any inquiry by the 
profession must wait until 
after cm! litigation on the case 
is completed, which could be 
into the next century. 

Just four other 
investigations are currently 
underway - into Barlow 
Clowes, the disgraced fund 


management group; Ferranti, 
the electronics group; the 
Maxwell business empire; and 
War on Want, the third-world 
charity. 

Stoy Hayward and. Coopers & 
Lybrand, which is under 
investigation for its audit of 
the Maxwell companies, are 
believed to be among several 
firms which might defer 
responses to the joint 
disciplinary scheme’s inquiries 
as a result of the House of 
Lords’ ruling on BCCL 

The Institute of Chartered 
Accountants in England and 
Wales in 1992 fined two 
accountants at Coopers & 
Lybrand for accepting 
appointment as administrators 
to Polly Peck in breach of 
ethical rules after their firm 
had conducted work for Mr 
Nadir and his companies. 

However, Stoy Hayward has 
not yet been sued in 
connection with the audit 
since Polly Peck entered 
administration under English 
insolvency law in October 1990. 


Lloyd’s agencies 
examine new 
type of funding 


By Richard Lapper 

Leading agencies at Lloyd's of 
London are examining the cre- 
ation of a new type of corpo- 
rate investment fund which 
would give them more control 
of their capital end mpan that 
they could eventually become, 
in effect, limited liability insur- 
ance companies. 

Unlike the dozen Lloyd's 
investment trusts created last 
year, which raised more than 
£800m and support a range of 
syndicates across the Lloyd’s 
market, the new vehicles will 
supply capital exclusively to 
insurance syndicates managed 
by one particular agent giving 
the agent more control. 

The Hiscox Group, headed by 
Mr Robert Hiscox, Lloyd's dep- 
uty chairman, is the only 
agency so far to have formed a 
so-called "dedicated" vehicle, 
but this week both Brockbank, 
an agency which manages one 


of the market's biggest marine 
syndicates, and Kiln, another 
highly rated agency, said they 
may follow suit 

Lawyers and financiers 
advising Lloyd's businesses on 
their capital raising plans say 
that many other managing 
agents are now examining this 
option. Mr Cliff Hampton, of 
Phoenix, the specialist securi- 
ties house, said that managing 
agents were becoming more 
concerned to secure their 
sources of capital, at a time 
when another year of large 
losses at the market is likely to 
lead to a reduction in the 
amount of capacity supplied by 
individual Names, whose 
assets have traditionally sup- 
ported Lloyd's. 

Interest in the new type of 
structure Is likely to lead to 
pressure on the Stock 
Exchange to lift its current 
restrictions on listing such 
vehicles. 


Britain in brief 



-‘a rW ** 

Up to year 
delay for 
Eurostar 

It could take between nine 
and 12 months before a full 
service of Eurostar trains is 
winnin g through the Channel 
tunnel from London to Paris 
and Brussels. European 
Passenger Services (EPS), 
operator of the through trains, 
said. 

The service is expected to 
start with only two trains a 
day running to each 
destination rising to 15 trains 
to each destination at 
half-hourly intervals. 

Delays in deliveries and the 
time taken to test each train 
will mean there will be a 
gradual build-up of services 
from their starting date in 
July or August, EPS said. 

The specially designed 
400-metre long trains will take 
three hours at speeds of up 
to 186mph to travel between 
London and Paris and three 
hours 15 minutes between 
London and Brussels. 

It was in Eurostar trains 
that the Queen and President 
Mitterrand travelled to the 
naiait te rminal of the Channel 
tunnel to inaugurate the £10bn 
project last Friday. 

Ticket prices will be 
announced three weeks before 
start of the service. First class 
fares are expected to be 
slightly lower than the 
airline’s premium rates with 
a range of discount fares for 
leisure travellers as well. 


Scots’ drug 
problem seen 

Drug-related crime could be 
costing Scotland up to £936m 
a year, a House of Commons 
select committee said. 

The cross-party committee 
of MPs said official figures on 
the drugs problem represented 
“the tip of the iceberg” and 
called for anti-drugs education 
to start in primary schools. 

One Glasgow GP told the 
Commons Scottish affairs 
committee that nearly half the 
children who attended one 
secondary school class in his 
area had injected drugs. 

The MPs’ report calls for the 
painkiller Temgesic to be 
added to the list of drugs of 
addiction notifiable to the 
Home Office, and for all GPs 
to review regularly their 
prescribing of drugs with 
potential for abuse. 

It also calls on the Scottish 
Office to rethink its policy on 
research into drug abuse and 
take a more active role in 
fighting it. 


Credit at 
5-year high 

Net lending to UK consumers 
rose to its highest level for 
almost five years in March, 
while new borrowing reached 
record levels. Indicating that 
consumer confidence remained 
high before April’s tax rises 
began to actually bite. 

The net level of consumer 
borrowing recorded in credit 
card transactions, building 
society loans excluding 
mortgages, and finance house 
lending was a seasonally 
adjusted £5l6m, the Central 
Statistical Office said. 

This so called "narrow" 
coverage compares with a 
figure of £336m the month 
before, and £217m the 
previous March. The total 
level of consumer lending for 
the first quarter of 1994 was 
£ 1,087m, slightly up from the 
£1,04 6m recorded in the last 
quarter of 1993. 

New credit extended rose 
to £5£18m in March, of which 
£3, 041m was a c counted for 
by credit card purchases, the 
CSO said. This Is the biggest 
monthly rise in consumer 
lending ever recorded by the 


CSO - higher even than in 
tiie consumer spending boom 
of the 1980s. However 
economists yesterday warned 
the surge in the credit card 
figures, which only record 
credit card purchases in the 
Visa and Mastercard system, 
was partly caused by seasonal 
factors and shifts in consumer 
Spending. 

Rail up-date 
for 2005 

The £500m modernisation of 
British Rail’s west-coast main 
line may take until 2005 to 
complete, the government has 
disclosed. 

Work on the 480-mile link 
between London and Glasgow 
was expected to start next year 
and take between eight and 
10 years. 

The government said a 
competition would be held 
"early next year" for the 
contract to design, build and 
maintain the improvements 
to the line. 

This would follow a 
feasibility study by a 
private-sector consortium 
working with Rniltrack, the 
organisation set up to run BR's 
track and signalling. 


Low pay unit 
targets North 

Income for Northern 
households is £36 a week less 
than that of the average 
British household, a report 
said today. 

A Low Pay Unit report, 
commissioned by the NUCPS 
public service union, found 
that northern incomes were 
among the poorest in Europe. 
14 per cent below the 
European average. 

The report said that more 
than a third of people working 
full time in the north earned 
less than the Council of 
Europe's decency threshold. 

Low pay rates, however, had 
not ted the region to attract 
jobs, said tbe report. It still 
had the highest unemployment 
rate in Britain and the gap 
between women's and men’s 
pay rates in the north is wider 
than in tiie rest of the country. 

The report says the problem 
has been made worse by the 
collapse of manufacturing and 
contracting out of public 
services. It said that the 
abolition of the wages council 
left 132,000 of the poorest 
workers in the region without 
protection. 


Glasgow loses 
gallery plan 

Mr Ian Lang, the Scottish 
secretary, has vetoed the plan 
by the National Galleries of 
Scotland to establish a new 
national gallery of Scottish 
art in Glasgow. 

Mr Lang said the plan, which 
had aroused intense 
controversy in Scotland, did 
not enjoy "the broad general 
support appropriate to a major 
initiative of this kind." 

Mr Lang's decision is a 
rebuff to Mr Angus Grossart, 
the merchant banker who is 
chair man of the trustees of 
tbe National Galleries of 
Scotland, and to Mr Timothy 
Clifford, the director of the 
galleries, who were the 
proponents of the plan. 

Glasgow made a successful 
bid for the new gallery to be 
located in the city but the plan 
caused outcry when it was 
announced late last year. 

Paras hurt in 
Sardinia jump 

Fifty British Paras were 
injured when mass Nato 
airdrops on the Mediterranean 
island of Sardinia went wrong. 
The accident prompted an 
urgent call at Westminster 
for all British military 
parachute drops to be 
suspended without delay. 

Taking part in the ironically 
named Exercise Dynamic 
Impact the troops hit 
rock-hard ground on the 
sunshine holiday island after 
jumping out of RAF Hercules 
aircraft from 800ft 


Channel tunnel could be gateway to British milk market 

Deborah Hargreaves on the big European players with a new interest in the UK 


T rains loaded with -fresh milk 
could be running through the 
Channel tunnel when it opens 
next year, according to Mr Andrew 
Smith, managing director, of the 
B earner group's UK offshoot. 
France's Besnier group - one of the 
largest dairy companies in Europe - 
is looking to triple its dairy sales in 
the UK over the next three years to 
£10Qm. 

Britain is the latest battleground 
for Europe’s large dairy companies 
as they move into the £8bn sector. In 
November, tiie government plans to 
abolish the Milk Marketing Board’s 
60-year monopoly on the wholesale 
purchase and sale of milk in 
England and . Wales, unleashing a 
free market in the £3.3bn fresh milk 
bumness. 

The Uberahsation of the mfik mar- 
ket will leave dairies to buy their 
supply direct .from fanners or 
through Milk Marque, the milk 


board’s successor, which is being 
organised as a formers' co-operative. 

“We’ve get a great deal erf experi- 
ence of buying milk directly in oar 
other markets which gives us a com- 
petitive advantage." said Mr Rory 
O’Mahony, chief executive of the 
dairy group at Ireland's Avonmore 
Foods. 

Avonmore invested £20m last year 
in expanding their foothold in the 
UK market where it now supplies 7 
per cent of liquid milk. 

The opening up of the market will 
not eliminate the UK’s shortfall in 
milk production however - Euro- 
pean Union quotas rest r i ct output to 
B5 per cent of the UK’s needs. The 
rest of the EU produces a dairy sur- 
plus of 15 per cent 

Same of the European dairies are 
hoping to import raw milk from 


countries such as Denmark and 
Ireland which produce twice and 
three times their own requirements. 

“European dairy companies are 
under pressure from falling product 
prices and cuts in European Union 
intervention," Mr Michael Lan- 
dymore, food analyst at Henderson 
Crosthwaite Institutional brokers. 
“They are targeting the UK in the 
hqpe of a higher return.” 

The introduction of the European 
single market last year and the 
interests of some retailers in. expand- 
ing overseas have further fueled the 
internationalisation of Britain's 
dairy business. 

“We can follow the UK retailers as 
they expand across Europe.” said Mr 
Roger Clarke; commercial director of 
MD Foods, the UK offshoot of Den- 
mark's large dairy company which 


is partly owned by a formers' co- 
operative. 

MD Foods has spent £l50m on an 
acquisition programme in the UK in 
the past three years, gaining a 10 per 
cent share of the milk supply mar- 
ket. The company which is best 
known internationally for copying 
brands of cheese such as feta, is now 
looking to match its success in milk 
with a drive to boost Its share of the 
UK cheese and dairy products sec- 
tors. 

Innovation in the fresh dairy prod- 
uct sector has been led by European 
players which are now hoping to see 
the margins for their products 
improve as a result of the scramble 
for milk in November. 

Mr Smith says the privately-owned 
Rflgnier group is planning to launch 
a large marketing campaign to push 


some of its cheese, butter and other 
dairy products in the UK. In March 
it consolidated its UK operations 
into one company. 

Cheese and buttermakers have 
been a low priority in the current 
arcane system for allocating supplies 
and have had to run their plants at 
well below capacity because of the 
problem of getting hold of milk. 
“Now, efficient producers will be 
able to go out and pitch for it” said 
Mr O’Mahony. 

The abolition of the pricing and 
supply system will also remove pro- 
duction constraints from dairy pro- 
cessors enabling them to cut costs. 

MD Foods plans to cut its costs by 
20 per cent over the next three years 
by buying most of Its supply direct 
from farmers and running its pro- 
cessing facilities at closer to capac- 


ity. Last month, tbe company split 
its UK operations to form two units 
one of which will concentrate on 
doorstep service. 

Doorstep delivery and the British 
consumer's appetite for fresh milk 
makes the UK market different from 
the rest of Europe. Northern Foods, 
one of the biggest domestic suppli- 
ers, believes competition will still be 
restricted by the limited milk pool. 

"Even with the Channel Tunnel, 
transport costs will probably make it 
prohibitively expensive to bring In a 
lot of raw milk from the continent." 
said Mr Neil Davidson, group execu- 
tive at Northern Foods. 

Northern is taking a different 
approach from some of its European 
competitors. The company is threat- 
ening to invest £50m in a dairy prod- 
ucts plant on the continent if the 
government does not ensure there is 
enough competition in the milk sales 
market in the UK. 




■ik itv ri lESPAV MA^ I® 1994 
financial times t 


MANAGEMENT: THE GROWING BUSINESS 



Banking gloom for 
small businesses 

Britain's smallest businesses 
are unlikely to have an easier 
tiwm dealing with their banks 
in the coming years. 

Their loan applications wiQ 
be more carefully scrutinised; 
the interest margins they pay 
may well rise; and they win 
increasingly pay a commercial 
and visible level of fees for 
services like arranging loans. 

&nal] businesses wID remain 
a core market for most banks 
already focusing on the sector 
but customers must expect to 
pay more realistic rates for the 
service. 

These predictions emerge 
from a report* into the hanking 
industry’s appetite for servicing 
small businesses with sales of 
op to £lm, commissioned by 
National Westminster Bank and 
compiled by Graham Bannock 
& Partners, the consultancy. 

“The lending decision is going 

to have to involve a toller 
exchang e of fatform atton 
between banker and customer," 
says Terry Bryan, of NatWesfs 
small business service unit. “We 
increasingly will want to laid 
against the viability of the 
business plan. Progressively 
there is recognition that the 
lending has been underpriced 
in this sector,” he says. 

Prom a macro-economic point 
of view, the report recognises 
that banking has become closely 
linked to the prop ert y cycle, 
with a high proportion of 
lending to companies and 
individuals secured on property. 
“Tliis accentuates the tendency 
of bank lending to fuel booms 
and deepen recessions,” the 
report says. 

The wfliii challenge hanks 
face is to reduce bad debts. 

* The Future of Small Business 
Banking - Available from 
NatWest Small Business Services. 
Tel 071 454 6925 


Correction 

Baffo Design is designing a 
mechanical garden product for 
Snapper of the US and not a new 
bottle cap as described on last 
week's Growing Business page. 


P BR Solutions, a supplier of 
office electrical systems, 
went bust last year, its 
bankers calling in receivers 
after IS yean of successful trading. 

The story is a familiar one; with 
sales of £7m, PBR’s bank had con- 
firmed an o v erdraft of £800,000 in 
late 1991 only to cut it six months 
later. The owner-managers, ffin aytri 
Jane Pickering, refinanced the com- 
pany with funds they had tacked 
away for their retirement. 

Six months later, one of PBRs’ 
large contracts was cancelled, 
another postponed and the directors 
foresaw a sharp foil in sales that 
would last for two months. To avoid 
trading whi te insolvent, Bicker- 
ings the KanV anij wM for 
receivers to be appointed. 

Last October the Department of 
Trade and Industry decided this 
might not be the best way to deal 
with companies in difficulty. Invit- 
ing suggestions on changes to com- 
pany voluntary arrangements and 
administration orders, the DTI 
mark> g number of proposals that 
could improve the company rescue 
provisions of the 1986 Insolvency 
Act 

For the Pickerings, any changes 
to Insolvency law will come too 
lata But if the changes are adopted, 
many other companies - and their 
unsecured creditors - may stand a 
better chance of rescuing their 
assets if they get into trouble. 

One of the DTTs proposals relates 
to company voluntary arrange- 
ments between companies and their 
creditors that have been used very 
tittle since they were introduced in 
the 1986 Act One obstacle has been 
the lack of a moratorium on credi- 


Richard Gourlay looks at plans which may improve the 
company rescue provisions of Britain's insolvency laws 

Floating charge 
hits rough sea 


tor’s rights; the DTI suggests introd- 
ucing a moratorium of 28 days, 
extendable to three months, that 
would bind all creditors. 

But the DTTs consultative docu- 
ment has raised the hd on a much 
bigger hornet’s nest by questioning 
whether the long-established rights 
of floating chargeholders - nor- 
mally bn)” - s ho ul d be curtailed 
to give administration orders mure 
chance of success. The floating 

rft argp jg fho nr^igifal Tnw»lw^ifim 

by winch banks can take a charge 
over a company's rftanpiry assets, 
such as its inventory. It is only used 
in the UK, Australia and Canada of 
the. industrialised countries. 

The. trouble with administration 
is that directors of companies wUdh 
seek its protection know their 
hart Ire have the whip hand As the 
law stands, a floating chargeholder 

wm veto an a tlinintiri T atlnn order 

and appoint an administrative 
receiver. 

Under present rules, an adminis- 
trative receiver is not obliged to 


ta ke into account the interests of 
unsecured creditors or sharehold- 
ers. The recovers are often accused 
of being concerned with mfnfmisring 
losses for the banks rather than 
looking at whether there is a viable 
future for the company. 

Taking an altogether more radical 
approach, the Small Business 
Bureau has raped for ty total abo- 
lition of the flo at in g charge. In a 
reply to the DTTs consultative doc- 
ument, Barry Baldw in , of the 
policy unit at the SBB, says aboli- 
tion would change the emphasis of 
insolvency. “The objective of any 
insolvency process should he to 
make the company as valuable as 
possible for the benefit of all credi- 
tors, secured or iw | *wir | i^ l ^>wd the 
shareholders,” he says. 

“The UK urgently needs to find 
some form of cultural structure 
which would at least give finan- 
cially distressed companies a fight- 
ing Stance of survival. 

“Elimination of the floating 
charge may well lead to a reassess- 


ment cf landing criteria, with less 
reliance on security, and increased 
pin piia^ oq the ability of compa- 
nies to achieve the cashflows nec- 
essary to sustain the costs of sup- 
porting debt" 

Not surprising, the banks have 
rigorously rejected file DTI sugges- 
tions that floating chargeholders’ 
rights might be dihtted. If the value 
of hank security, and in particular 
the fi rating charge, was under- 
mined, It would “lead to increased 
costs to cover *hp add^d risk, a r<i it 
could al so discourage landing gener- 
ally, especially to smaller busi- 
nesses and for company start-ups”, 
the British Banking Association 
says in a submission to the DTL 

“The proposals set out in the con- 
sultative document would change 
fundamentally the current legal 
environment by shifting the bal- 
ance of power towards debtors [the 
borrower]! at the expense of secured 
creditors,” toe BBA says. 

The agairfgtion says the DTI in 
any case is placing too much 



ftm phagjR on rescuing corporate 
frnHtjp* rather than the underlying 
businesses. And it says the biggest 
single contributory factor leading to 
insolvency is that companies lose 
their markets. 

Groups like the Association of 
British Chambers of Commerce are 
reluctant to tinker with the floating 
charge if banks consequently 
become more reluctant to lend. 

But one of the underiying weak- 
nesses of smaller corporate Britain 
is its reliance an overdrafts. The 
floating charge may be partly to 


blame. By mortgaging everything 
that moves, companies have 
avoided operating from an adequate 
equity base and banks have fre- 
quently paid too little attention to 
the underiying strength of their cli- 
ents’ businesses. 

At least reducing the value of the 
floa tin g charge might result in bet- 
ter quality lending to sounder busi- 
nesses. 

The names of PBR Solutions and its 
directors have been changed as lega l 
proceedings continue between direc- 
tors and the receivers. 


T he UK government has high 
hopes for venture capital 
trusts. By creating “condi- 
tions for new businesses to become 
established and for small busi- 
nesses to grow", VCTs are seen as a 
key to cutting unemployment 
The strategy - offering tax 
breaks to channel longer-term capi- 
tal into unquoted companies - 
makes sense. Everyone accepts now 
that unquoted companies rmA to 
create more jobs than quoted ones. 
But snccess depends on answers to 
t wo qu estions. 

Will die YCT rales attract inves- 
tors to come up with the money? 
And will the money Sod its way to 
dynamic businesses? 

Of coarse, the viewpoints of 
investors and of managers of 
dynamic businesses are not always 
identical. There is a lot of squaring 
of the circle to be done before the 
VCT scheme, still at the discussion 
stage, takes final form. 

A strength of the VCT scheme is 
to draw on the skills of those with 
experience of investing longer-term 
capital in unlisted companies. 
First, however, there is a basic 


Will the bait be tasty enough? 

Ewen Macpherson asks whether venture capital trusts, launched last 
November, can encourage private investment in unlisted companies 


question to be asked about the pat- 
tern of shortage of longer-term cap- 
ital. 

Ask an e nt re p reneur looking for 
£250,000 to set lip a high-tech busi- 
ness, and he will tefl you that capi- 
tal is in very short supply. On toe 
other hand, go to the managers of a 
substantia] subsidiary company 
where there is going to be a man- 
agement buy-out from a large 
industrial group and they may tell 
you that several venture capital 
companies are vying for the privi- 
lege of backing them. 

There is no case for tax conces- 
sions to attract iii TOtiinwit to mul- 
ti-mUhon-poand buy-outs, which in 
the past decade have been a profit- 
able market for the venture capital 
industry. The Inland Revenue’s 
consultative document on VCTs 


addresses this point by suggesting 
a size restriction. VCTs would be 
allowed to invest only in companies 
with gross assets of less than, say, 
£10m. A £10m limit seems high if 
the aim is to help new and smaller 
companies. 

But one can see the government’s 
reasoning. Allowing a trust to 
invest in fairly large as well as 
small companies might achieve a 
portfolio mix more attractive to 
investors. It can be argued that a 
better bait would be more substan- 
tial initial tax advantages for 
in vestors, rather than encouraging 
the trusts to move away from the 
core of the scheme - to provide 
funds for entrepreneurial busi- 
nesses. 

A more appropriate limit on the 
size of eligible companies might be 


gross assets of c*m- But s ize is not 
the only issue. If the VCT scheme is 
to achieve its full potential for 
encouraging economic growth, 
those drafting the rales should 
recognise that there are two quite 
distinct categories of investment in 
tiie private equity market 

One ca te go r y finances growth - 
directly. This includes the funding 
of start-ups and provision of capital 
to fledgling businesses trying to get 
established. 

It also indndes - though it is 
sometimes overlooked - the scope 
for i nv es tin g in companies already 
established. They need capital to 
enable than to re-equip, enter new 
mark e ts or expand in other ways, 
which often simply cannot be 
financed by overdrafts. Such 
growth calls for risk capital - the 


private company’s equivalent of the 
quoted company's rights issue. 

The second category consists of 
investment in changes of owner- 
ship. This includes management 
buy-outs, management buy-ins and 
other restructuring operations. 
Restructuring - a feature of the 
“enterprise revolution” of the 1980s 
- can bring about a valuable shake- 
out in the economy, but there is a 
significant difference between that 
and specific investment in immedi- 
ate growth plans. 

Change of ownership represents a 
“churning” of existing assets, and 
already there is enough capital 
charing these deals. 

It could he stipulated as a condi- 
tion of VCT status that the trust’s 
portfolio should contain a majority 
of the first type of investment. 


There could be a minority of the 
second - “churning" - type if the 
trust’s managers wanted a more 
balanc ed portfolio. MBOa are per- 
ceived to be less of a risk, which is 
why they already attract so much 
investment 

Arguably, though, toe problem Is 
not so much overall lack of capital 
as lack of demand. V small compa- 
nies are held back for want of 
long-term capital, the reason some- 
times seems to be that they are 
unaware that such capital exists - 
or that they are reluctant to use it 
Directors of family businesses, for 
instance, may refuse to dilute their 
equity. 

IT more of Britain’s smaller com- 
panies strengthen their competitive 
edge by strengthening their bal- 
ance sheets with capital from the 
VCTs, it could contribute signifi- 
cantly to job creation. But if VCT 
money goes largely to management 
buy-outs and buy-ins, the govern- 
ment will not get what it Is hoping 
for. 

The author is chief exe cutive of Si 
Group pk. 


BUSINESS OPPORTUNITIES 

READERS ARE REOOMIBSIGD TO 8^9CAPPR0PHM1EPnQreSSH)KAL ADVICE BEFORE EJfTERWG BfTD CQMETMEJfTS 


Investment Bank 

"ZERICH" 

- your adviser for practical access to Russia.. 


■ Corporate finance 
Credits and borrowings 

■ Trust operations 

■ Mergers and acquisttons 

- Voucher auctions and investment tenders 


Wb can assist you to becoming part 
at the keamaOng Russian privatised industries 
tomstatmacNnasetc. 


T«L (7-095) 

287-8215, “ZERICH* Investment Bank I 


287-8219, 

129085, Mira prospect. 


287-8234 

101, Moscow, 

Fax 

287-8506 

Russia, CIS. 

E-man 

zarlch®zerictunslLsu 



Management Buy-Out 

What is your company worth? 

PC spreadsheet valuation model, as used by venture capitalists. 
£49.93 + VAT. 

For further details contact BIAS (Loudon) LftL 
28 Grosvcnor Sum. London W IX 9FE 
Tel: 071-917 9711 Fa* 071-9176002 


NOVELTIES 

Australian Co. requires 
distributor. 

Computer-generated, 
colourful, different, 
novelty maptet. 

Andrew Gee 
Star-Une Products. 

Fax: 61 2 939 6486 


\1 A I OK BUSIN fcSS 
O r P O K r UNITY 

ix oxy Oi T) IL Uiv > i \s 1 1 s r 
CKOIHXC i\/H/.<rR/i> 

M li.KSAinr \1 / I'd. I\7 


DEVELOPMENT 
FINANCE SOUGHT 
by newly registered 
PROPERTY COMPANY 
initial funding of approximately 
£1 million required. Strong 
profcs&kxui icam with 
considerable experience and 
exciting development 
opportunities. 

For mote information please 
TELEPHONE 0959 561114 


Ti'l: S*. 7 250 It: 
:.;sS7. - 22C'h.-- 


InnovatNc Property Investment 


Equity and loan funding for 
yield and capital growth. 
Preferred mintunum 
investment £l00k. 


EXPERIENCED BUSINESS 
ANGEL SOUGHT 
Enwqreoeur has derignedAfcvelopcd 
■nd maifcct tested (IS months) a unique 
and cwrenriy nmappod service far UK 
BHtonfe UK expansion require* 
wo thtag c apital of fl70jQ00 from a John 
rattan partner. European canasta 
anticipated late 1993. 
nensemply Ah 63634. 
Fmaocia) Times, One Southwark 
Bridge. London SSI 9HZ_ 


Businesses Wanted 


MOVIES INTERNATIONAL 
2bne Avenue 

L3U7 VITRO LLES, 

France setting a worldwide Detwork 
of distributors f« a product with high 
profit potential: a pat-sized detector 
of couicifeit banknotes. 

For farther i nfor m at ion, phase calls 
MrsTenean3391 35 41 47 


I VonntayBeanMDotadivMmiif ftS^ ' 
finance to do an MBO or a holding 
conmy wanting to dwsst of adrana 
which no longer fits or be a family 
company owner looking a «£*. 
CONFtDENTUdirr ASSURED 
To obtain detail* either far ar telephone 
Baity Cortxtt of Corbett Reding LM 
Telephone: (Ml &75 1919 

Pastel 875 1920 
MattraTOtSaAtarel tantaoi 


DO YOU WISH TO IMPROVE YOUR COMPANY’S CASHFLOW? 

We are an independent, service orientated company who will sbow you a 
flexible alternative to inflexfcte bank fariljtirai 
MBOa AND ACQUISITIONS A SPECIALITY 
TURNOVER C50QKP-A. AND ABOVE ONLY 
Write or tekpboae in tbe that Instance: 

Scott Bradley or Brian Snmner 
Causeway Invoke Discounting Company I imbed 
Kings Court, Exchange Street. Manchester M2 3AX 
Telephone: 061-832 4442 ft* 061-832 4050 
Richard Ingotdby 

Cao sew ay Invoice Dis countin g Co mp a ny United 
7 Hanover Square, London W1R 9HE 
Telephone: 071-495 2525 Fax: 071-491 2050 


JUST STARTING ? 


Do you really need u office? 
Tty a Virtual Office®. We 
offer a professional London 
presence. Wh ere t er yon work, 
we will answer your rails, pur 
them through to you or take 
messages. 

All u Zll Piccadilly • offices, 
secretarial services ana vofcxnniL 

X Virtual 

Office 071 917 2917 


Fully furnished offices 
Trafalgar Square 


<X) 

. d 



Secretarial services • Conference faeflftira 

r. Fax, W.P. • Flexible Lease Terms 

i Telephone Answering • Immediately Available 

Tel: 071 872 5959 

Your Partner m over BO Imcnuiiomd Bnrincn Locidom 


FUNDS AVAILABLE 
TO PURCHASE 

• Letters of Credit 

• Bank Guarantees 

• Otter Acceptable Collateral 

• Backed by Private Investors 

THUD MAJOA WTL. BANKS 
CAPITAL SUPPORT COUP. 
U& (714)757-1070' • Fnc (714)737-1270 


FM FSC 6 LTD. 

is engaged in arranging true lease 
financing for United States 
manufactured Boeing 747-400 
aircraft equipped with Pratt & 
Whitney PW4056 engines, for use 
outside of tbe United States. 
Interested lessees contact: 

L/SL Capital Corporation 
agent for 

FM FSC 6 LTD 
733 Fhoat Street 
San Francisco. Cl 94111 USA 
Attention: Mr Han McCan 


CHANNEL ISLANDS 

Offshore Company Formation 
and AdaHuhtnnfam. Abo Liberia. 
Panama &BYI etc Total offshore 
fadikies and services. 

for 


2-6 Bdaoot* Rd,Si FfeUc^Jeocy.GL 
T«fcQS3* 78774, FkQS3* 3540 1 
Us 4192227 COPOBM C 


WOULD Y OU LIK E TO DO 
BUSINESS WITH CHINA? 
If you wovld like to aeD, buy or 
m a nuf a c ture with China, we have 
tbe contacts: Travelling to Qmra on 
6/5 please contact ns 

Tel: 081 3S5 04<S2 
Fax: 081 385 0463 


MEDIA INDEX LIMITED 
seeks small companies requiring 
capital for growth. Turnover 
currently at least £lm pins. 
Multimedia sector only indndittg 
anisic, screen and publishing. 
Principals or Accountants tefepboae: 

0628 76116 

HARUCY-OAVfOSON HUB Emoftjoncy - 

Mooting teglna 1st Juna. Amiri winning 
production mm maMig a gram iw* & ml 
•m - FM Boy In Paadtoa - moot ■ a rtto 

on a Mviay to Bangkok from BeO- an 
Easjooo abort on Mr faudgtt Wat being let 
down M tho last minute. One or more 
V wo Wb wqrirsd. ALL h irn rtnort meed— 
beck Mkra ratM toem ore paid. Gram 
prok pohSH as erty «ni EVBt aoppvtad 
o f cM y try U ts y D srideon and loading 
magazties. For dotata rtng Mho Ofr on 
0908 583 Boc Q9C0283 196 MoMo 
Qtt» TUBS 0031 S2BH1 


COMPUTER SERVICES 
CONTRACT BASED 
WANT ED 

A major CM fl y n m Service* Group 
wishes to acquire contract bases. 

If yea areimermed please reply to : 
Boa B2787. RundalTfoia, One 
SocU wad r Bridge, Landau SE1 9HL 


TOR SALE PROFITABLE QUARTERLY 
■aqazwe A mn *i ro d oa mblui iad 
controOod etreu lotion bade publication 
riodand tastnmtaraay to a apeemw 
vstoe mariatplace. Ptedpata only, Box 
B3812. FhencH Tbim. Ona Souttmertr 
Bridge, London SBl 6HL 


ITALIAN VKMISm UKc 
Famous Duomr aaats me|or dMbutts tar 
Mr Mtfi taeBytem sdecSorL TeNgbeno: 
O BMlZi a 


CONFIRMABLE DRAFFS 
BACKED BY CASH 

A lined In Your Name 

* Confirmed by Majw hrfl Banks 
lo Prove AvaSabBuy of Pmxb 

* Backed by Pthate Investors 

CAPITAL SUPPORT CORP 
US. end) 757-1070 - ft* (7K) 7SM2J0 


COMMERCIAL FIRAR CE/VENTU R t 
CAPITAL . s e na fcio rates, aoMHa Haas. 
Angle Amwfean ro n&rt* See OBasgnsrr 


Item tari aaw seed equity eapitaTT 
/sffg\KtehB»rd miwMm hlB W M ii * w » 4 
k-rro/aad mpowio bwotTctWl S7»» 


SPAMSH EXPORTER eatatAM fal Vfctfft 
regional Bserrodws, nukiM cortacts 
•bead, not quo^r toorWttdo enWda 
M maptewt pricn. Afl bwSrop aontEb 
offered. Afl quarto a welcomed contact 
Antonia Rodriguez Teh 34-Z7-231116 
Fme 9S-Z7-Z3QB31. 


BUSINESSES FOR SALE 


Appear in the 

Financial Times on Tuesdays, 
Fridays and Saturdays, 

For further information 
or to advertise 
in this section please contact 

Karl Loyntoii on 071 873 4780 or 
Melanie Miles 071 873 3308 


FINANCIAL TIMES 

inwri uiwuyiprtMnt 


BUSINESS SERVICES 


CALL USA 
ONLY 17p/nun 

First 30 mins FREE 
Dial Int. Telecom 
Tel: 081 490 5014 
Fax: 081 568 2830 


ROADSHOWS/HOSPITAUTY UpaUMal 
Ibnousira hire to strictest schedules. 
E22 par hour. ItoiHMatan 081 7484840 


OFFICE 

EQUIPMENT 


OFFICE FURNITURE 

We tme available high quality 
executive and system range 
- conference and receptions. 

Large choice of veneers: 

(Walnut, Rosewood, Ash etc.) 
wBhdiwwat of up to 

40% fromRJUM 

London Showroom for viewing 

Phil caaxad planning services 
if required. Please contact 

UNEABURO LTD 
0992 503313 


AUCTIONS 


NEXT AUCTIONS 

of life assurance policies for 
investment wiD be held 
onUM^faEdUnHgb 
and 19 May and2 Jtreeia London 
Telephone: 

H.E. Fester Sc Cnafieli 
071-608 1941 tor catalogue 
A Mabsr ofHMBttA 


UQUIDAXIONS & 
RECEIVERSHIPS 

TOE PAGE I REPORT 

The No. 1 bdairifablcor lii rj LMinwaj tat tey« tow 6pdJM>»iftiuiwntUp EVERY 
«ccfc ♦ ALL IVINDiNa UPrermOMS + dorem Of AUCTIONS & BUSINESSES TOR SALE, 
lbrprelantRndlhtiMViwatwtedtonpMsfatepaidMwIaa 
Itekboco aod jcodwos eoano. 

TSEPASClRtrOST 

Raitreiiimiaidwte 

TV* tW72»37U* F«oc (MT2>371 458 

■ 

ASSEMBLY FACILITY 


EXPANDING INTO 
GERMANY? 

You want the ri£tt partner. Wtttt 25 years 
mperianeo In Se buMnaw wb M you Be 
right Company. Sbatngfc maritat anUyitt, 
MSA aMatay asnricaa 

SCHWABE CONSULT 

D45183 Wtaabadan, WbtiergartsnMr. 12 
Ftoc 448-81 1-847398 

Secure, flsxfote and highly 
sfcflfed organisation oflare fight 
Industrial electronic, surface 
mount and precision 
electro-mechanical assembly 
capacity, for commercial 
and Industrial products. 

Contact: 

Jane Jenkyn 0932 561181 



FREE INITIAL 
CONSULTATION 

Company and personal taxation, 
iochidlog VAT. IHT and Will 
Planning. J.PJB Harris & Co. 
Registered auditors 

Tel: 0708 472911 


U& FINANCIAL 
CONSULTANT 

Assfataac* avataUe fa tbotc aeckini 
to aaparetoter into US Madcet 
Baaore Miccm & oio. risk by oriug 

US baaed. UK tramed fiiU PisrecU 

Coiwiltam for yoar project 

CaBMJBfc 

Ttfe US 214441 5M8 teilt-MflW 




TRAFALGAR SQUARE 

Vour busaiess address and 
datficated telephane line. 

Call regus Business Centres on 
071 872S959. 

London, Paris, Frarttfiat.. 
over 80 top tocatlans worldwide. 

PROBLEMS THAT WONT CO AWAY? 
Unhurried MtW considtatan. then cost- 
Bffectfva guidance and *ctton by 
reperiencad and practical eoOdior. Onto 
Erona LLB. {Bon). LLM (Lo*«$, np. Low 
CCBConJTeiOTi 830 2143 Fax 071 2448081 
P«n-8|*l0. 


BUSINESSES WANTED 


US PUBLIC COMPANY 

Establishing itself in 

UK European market looking 
for further acquisitions and wiff 
pay attractive profit multiples. 

Write to: 

Box 62849, Financial Times, 

One Southwark Bridge. London SE1 9HL 

SOUTH AFRICA 

Large UK based group recks 
to purchase the foUowingt- 

f. Motor Vehicles Distribution 8uine» 

2- torestmenr Ptopcny 

3. Light Manufacturing 

Afl replies in strictest coofidenco. 

Write to Bcu B2S27. Kbutncutl Time*, 

OupSoutbwmk Brit%c. 

Lna *reSEl 9HL 

„_1 

Up to £1,000,000 TO BUY 

A 

Financial Software Development 
Company 

Based in the South of England 
(Principals Only) 

Send details to Bax B2608, Financial Times, 

One Southwark Bridge, London SE1 9HL 

| PUBLIC UM2TED 

I COMPANY 

1 Requires companies in Fiowctal 
| ® er ™*9 and Sctvioe faduttties *o 

I add Co its portfolio. Companies 

I “‘akingilOQk.jCm pre-tax vrid, 

B 5,ton 8 committed management 

8 te^Prindpals^jjypiejg^ 

I Please reply to; 

1 BoxB2810 ' F i*» o o«nw 1 

I Bridge, LnadnaSEl9RL. 








FINANCIAL TIMES TUESDAY MAY 10 1994 


9 



Sfev*- . ‘ 


I. . 


. i? 

" V- 




4T" .> f 

tw* 


>t 

*<,■ 

>. * 

i; ■ N 

r \ • 

w “t 

N 

\ \ ' 
V; 

ST 


V ~ : - 


l •* 

V* 

. ••' 

{‘■‘ru-: 

fMW* : 

T Ft«V? • 

TV 

« I1S-A 
,» *t-,* k • 
W* I* n 
* n fc»* 

iAK- 1 ?’-' - 
t*a *■.•■• 

W • - ■ 

0 VS.-r-’i 

f ■ 

ffif "• 
S»- 


CMVtcs v 

v*. i • ■ 

Jen i'* - 

AM l * • • * 

its?- •■ 

_.« . . . 

'i: --*A • 


rAt*v 


i.-s -Kv !•• 


«& -VAT 


rl 1 1 AI 

lATH*' 


■ -•> 
v- ; 

. « * /-» ■■ 

W«j» 3^ ■.'■'• 

■*-T f a '• * 
s ' 

*»«■*• ■■’ 

:• a 


♦ W** 1 


tJ 



BUSINESSES FOR SALE 




CONSUMABLE TOOL 
MANUFACTURERS 

The Joint Administrative Receivers otter tor sale the 

business and assets of Coipro Engineering United 

♦ Manufacturers of consumable tools for the 
fasteneriiade and UKogente foroverseaspunch. 
cSe and machfoery manufacturers 

♦ Freehold premises of 11 .000 sq ft In South 
Birmingham, dose to the M42 

♦ FuflrangeoffoofrTKJkmgand general engineering 

equipment with a value of £200.000 

♦ Stock of cold heading machinery and trim dies 
with a book value of £210.000 

♦ Turnover of approximately £700.000 p.a. 

♦ Ski Bed workforce of 15 

♦ Established and extensive customer base within 
the fastener Industry 

For further Information please contact 
NeH Tombs or Andrew Menzies 


ROBSON RHODES 

^^■■1 Chtirterod A mmi aun ts HBi 


RSM 

T55i«i«w 


Centre City Tower, 7 HU Street, Birmingham B5 4UU 
Telephone: 021-543 1936 Fax: 021-643 4993 

Regtaterod to cany on aucft work and authorised to canry on 
toestment business by iho tosfltute of Chartered Accountants 
in England and wares 


LINCOLNSHIRE MARKETING 
ORGANISATION LtMITED 

LINC0LNSHRE MARKETING 
ORGANISATION (POTATOES) UMTTED 
(B0THW ADMINISTRATIVE 
RECEMERSHP) 

The business aid assets of the abow Boston based potato 
and anon packing and marketing business are avaiable for sale 
as a going concern as a consequence of recawrshfc 

• Modem potata'cnian nesting grading and padmgtadbes 

• 10 acre stench cold storage for approx 3£00 tomes of 

produce 

• Ambient temperature bukfings in excess of 50£00 sq H 

• Tivnover in the region of £4An pa. 

• Established high street customer hese 

• Experienced local wutforee of 34 

Parties nlsrestad ia an early acquisition shouUL nthefint 
instancy contact Richard Rees or Paid Harrison at the ad&ess 
beta 

ftoce Waterhouse Victoria House, 

76 MAon Street Nottingham NG1 3QY. 

Tet {0602J 419321 fax: (0602) 475225. 

IhiceWjderhouse • 

Pnce Waterhouse is autbonsod by the Institute ol Chartered 
Accountants In Eng»nd and Wales to carry on Inwstmenl busneat 


Geological & Oil Held 
Service Consultancy 

Geoffrey KinUn And Peter Copp. the joint Mminitmrrwe 
Receivers, offer for sale as a going concern the business 
and assets of Palco Ltd e/a Paleo Services. 

♦ Turnover is in the region ofjCtJm pa 

♦ Clients indude mom t major oil companies in die wodd 

♦ Extensive experience in the North Sea. Northern 
Europe, Africa, Middle East, South America and Far East 

♦ Multi-disciplinary geological capability 

♦ Premises available to purchase or lease in Watford 

♦ Vase geological database and library 
Further information may be obtained from Geoffrey Kinbn 
or Warren Epstein at Stoy Hayward. Tel: 071-186 5888. 
Fax: 1)71-935 3944 

STOY HAYWARDI ^^H-s 



.-tmriiuMim and Business Advises 


A member of Horwath International 


Authorised by 
the Iitsdcure of 
Chartered Accountants 
in England and Wales 

to carry on investment bum*" nz2B7 

8 Baker Street. London WtM IDA. Tet 071-486 5888. Fax: 071-935 3944. 



FOR SALE 

COLLECTABLE GIFTWARE COMPANY 

Growing Turnover and Profit 
Strong Cash Generation 
Well Established • Wide Customer Base 

Current pre-tax profit £700,000 + pA 
Exceptional potential 

Write to Box B2813, Financial Times, 

One Southwark Bridge, London SE1 9HL. 


Contract Catering 
Business For Sale 

As going concern. Established ongoing business with turnover 
of +£300 K. Good profits. Premises with folly fitted 
modem kitchens. Based in East England. 

Interested parties write to:- Robertson, Craig A Co Chartered 
Accountants, 3 Oabmont Gdns, Glasgow 03 7LW. 


FOR SALE 

Exclusive 
West End based 
menswear shop. 
Superb location. 

Contact Paul Weavers 
on 

071-213 1178 for 
farther information. 


0# 


MAGAZINES FOR SALE 
Two regional business to 
business controlled 
circulation titles for sale 
based in Southern Counties. 

u, 82S3 H-i^ Jto. 

Bridge. U»h»iSEl 4HL. 


SCOTTISH GROUP 
WISHES TO DISPOSE OF 
NON-CORE HAULAGE 
SERVICES 

Fled consist* ol spptos. 20 very 
modern articulated units with TWIer 
fleet of approx. 60 comprising 
refrigerated noils, curtalnsdcn and 
data. 

£3jQ million anneal amoves. 

Luge dfeni horn throughout 0 k UK. 
Modem office and maiotonanco 
fodllrica can be included is lease if 
defend. 

Fw tether daafls coniacc 

Box B380L FloaneW Ttaiea, 

One Southwark Bridge, London SBl 9HL 


WHOLESALE BAKERY 8,000 a* ft. eon 
London Part equipped. OBm tar Laaso 
enqbr Box 82G04, mencW TYnm. 
One Staatawifc Bridge. London 8E1 BHL 


100+ LIVE BUSINESSES POR SALE 
■alaaleanlaae wtbi m tf a v on 2saiiea 
Rk 071 7009484 



The Savoy Bingo Club 

Kettering 

The Trustee In Bankruptcy In relation to The Savoy Bingo Club, offers the 
business and assets as a going concern for an earty sale. 

Salient features include: 

■ large freehold property including fully fitted 750 seat bingo club; 

■ gross annual receipts In excess of £5 million; 

■ computerised cash bingo with 196 playing positions; 

■ 1,200 admissions per week, and 20 gaming machines; end 

■ fully licensed bar. 

For further Information please contact Tony Thompson, KPMG Peat Marwick, 
Norfolk House. 499 Silbury Boulevard, Central MUton Keynes. Bucks, MK9 2HA. 
Telephone 0908 661681. Fax 0908 660299. 


kkh/t h^ Corporate Recovery 


Dept Enc:jnkkrs 

(In Administrative Receivership) 
The joint Ariministrative Receiver., M. J. D argon and P. H. Bexulall, 
offer for sale the business and assets of Weldon < UK) Limitevl. 

■ Wcll-cquippcd workshop. 

■ Skilled workforce of 22. 

■ Circa 1 1 million turnover per annum. 

■ Freehold property 12,000 sq It near the centre of Wigan. 

■ Nationwide Local Authority and PI.C client base. 

R>r further details, please contael Nick Dargan or Bill Dawson 

louche at Touche Ross & Co., Abbey House, PO Box 500, 74 Mmlev Street, 
Ross Manchester M60 2 AT. Tel: 061 228 3456. Fax: 061 lib 0720. 



Purse Plus Limited 

The joint administrative receivers offer for sate, as a going concern, the business 
and assets of Purse Plus Limited operating as high quality leather goods retailers. 

Principal features Include: 

■ Annual sales ol some £1.2 million. 

■ Four leasehold, fully equipped, shops In Bayswater, Wimbledon. Bromley, and 
Hatfield. 

■ A substantial quantity of high quality leather goods and fashion accessories. 

■ Full and part-time staff of 16. 

For further information, contact the joint administrative receiver. Tony Thompson. 
KPMG Peat Marwick, Aquis Court, 31 Rshpool Street, St Albans, Hertfordshire 
AL3 4RF. Telephone 0727 B43000. Fax 0727 864423. 

Corporate Recovery 


<3 


n— I W *r bun, .JCtoW-l 


Advertiser S.W. Scotland 
offers for sale a complete 
water bottling plant newly 
installed and ready for use. 
Premises included and 
ample supply of E.H.O. 
Approved spring water 
capable of being uprated to 
National Mineral Water. 

Great potential especially 
for "own label bottling." 

Ill health reason for sale and 
terms considered to suitable 
purchaser. 

RING 0988 403404 


HILLARY 


NORTH EAST ENGLAND 

EXISTING HOTEL 
AND GOLF RESORT 

140 BED HOTEL WITH SUBSTANTIAL CONFERENCE, 
BANQUETING AND LEISURE FACILITIES 

18 HOLE CHAMPIONSHIP GOlf COURSE IN 
MATURE WOODLAND SETTING 

9 RQ GOLD AWARD T1MESHARE LODGES 
LODGE & 8 DORMI STUDIOS 

PLANNING PERMISSION FOR ADDITIONAL 1 8 
HOLE GOLF COURSE AND 61 RESORT PROPERTIES 

OFFERS IN THE REGION OF 
£4 MILLION FREEHOLD 

BROCHURE FROM SOIE SBUNG AGOITS: 

WUIAM HILARY LEISURE & HOTELS 
123 CANNON STREET, LONDON EC4N 5AX 

TEU 071 623 3233 FAX: 071 929 0681 


LEISURE & HOTELS 


SOUTHERN ENGLAND 
/SOUTH COAST 

For Sale 

Powder Coating Company 

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

Box B280Z, Financial Times, 

One Southwark Bridge, London SE1 9HL 


CAPE AND DALGLEISH 

CHARTERED ACCOUNTANTS 

BISHOP PIPEFREEZING SERVICES 
LIMITED (IN ADMINISTRATION) 

GCA MORPHITIS AND F F A WESSELY THE JOINT 
ADMINISTORS OFFER FOR SALE THE BUSINESS AND ASSETS 
OF AN ENGINEERING COMPANY BASED IN LONDON SE16. 

Market leader in the commercial pfpefreezlng industry 
Large blue chip customer base 
Provisional orders of £1 50,000 
Turnover for the year prior to Administration £912,000 

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

401 ST JOHN STREET, LONDON EC1V4LH 
TEL: 071-833 2333 FAX: 071-837 7347 


For Sale 

MANAGED OFFICES BRISTOL 

as going concern plus freehold producing 13% £575,000. 

Write to Box B2800. Financial Totes. 

One Sonibwaik Bridge, London SEl 9I1L 

APPOINTMENTS 


SENIOR ANALYST 

- FIXED INCOME RESEARCH 

LeacBng International City-based Investment Arm requires Sonia- Analyst to 
support corporate bond trading, sales, and new issue syndication working 
efcisaty with sales and (rating professionals to cany out markec-sensttve credit 
research covering a wide variety of European risks. Education to at least MBA 
level, with specialisation in Finance and/or Economics, aged 35-40. Language 
proficiency In French, German, Italian and Spanish. Minimum B years' 
International and U.S. experience in: Credit Analysis, Corporate 
Finance/Banking, end Derivative Capital Market Products. Marketing 
experience fci Commercial and/or Private Banking, a other related experience 
demonstrating ability to develop and maintain client relationships 
advantageous. Salary negotiable. Please write confidentially, enclosing fufl 
C.V. to Box A2029, Financial Times. One Southwark Bridge, London, S£1 BHL 


LEISURE BUSINESS 

SuccsasU large capacity dfaootheque 
- North west - tor sate. Good track 
record w«i Btdy profit figure year end 
March 1884 £340000 WITHOUT 
benett of brewery tiscounL 
Banefage 710 pa annum. 
Principals ortywlte to 
Box 82807, Financial Times. 

One Southwaric Bridge. 
London Set 9HL 


PUB CHAIN 

Small chain of 38 pahs in Midlands 
and North available as a single 
package. All held freehold or long 
leasehold. 9,500 barrels (1993). 
Offers anjond £6 million. 
Contact Andrew WatL 

OLIVES KITCHEN & FLYNN 
TEL 9532 450681 FAX BS32 434241 
PRINCIPALS ONLY 


Instructions Joint Roceivars 

THE WINTER GARDENS 
HOTEL, WEST CUFF, 
BOURNEMOUTH 

Amalgamating the former 
Grasvenor Court Hotel to provide 
70 e/s letting bedrooms, 
restaurant (96). lounge/bar. 
function suite, leisure suite 
(indoor pool, sauna, solarium 
etc). 10 staff bedrooms, garden, 
car park. Net T/O £392.836 (run 
under management). 

Offer* invited freehold complete. 

ROBERT BARRY & CO. 
(0285)641642 


INVESTMENT BANKING 

The Financial Institutions Croup of this leading international investment 
firm requires an investment banker to specialise in mergers and acquisitions 
and equity transactions emanating from Southern Europe. The successful 
candidate, aged 25-30, educated to MBA standard and fluent in Spanish in 
addition to English, will have minimum 2-3 years' relevant experience, 
preferably gained in Southern Europe, strong analytical abilities and full 
understanding of Sooth European economy. Salary circa £34.000. 

Please write in strictest confidence, enclosing fall curriculum vitae, to 
BoxA2030, Financial Times, One Southwark Bridge, London SEl 9BL 






EXCEPTIONAL 

OPPORTUNITY 

TO ACQUOS EXPANDING UK 
FRANCHISORS BUHNESS 
■Mr 


Price «M» <»e*prf 1» I Kyar} 
Rcptj 9m B28US, Ftamtlm, 
One SaOmmk Bridge. Latere SEl 9HX- 


FOR SALE SraiptftaHnacnrfnyelh 
Aixnfcer fif profesMs Bade toes. Owner 
seeks retirement, Prtndpata only, Bax 
Brail, Fhandri Tknea. One Seutteeric 
Bridget London SEl 9HL. 


LEGAL NOTICES 

MARTW THE NEWSAQJTT LOUTuT” 
IN i PeUm peamfed Id Ike Oewi el Sorioe as 
M May 1944 at ih iMne of Uartie Ike 
Ncaapx 11m to d, a Corapaoy le co rporatcd 
nader the Conpooks AcsvUi to No. 13840 
i mi hntoc to Bcgbtacd OOk* it 36 fctouv 
Ptoee, Ctago- G13 TUP. far caOmdoa ol 
rt4eetles ef apitBl mi icrisctiM of ifan 
pRsuDB aeeomt, tto Conn tax | 
toflcinag h ierit n' i vw 

■BfcbaJKkSOMaT 1W 

He Leeds appotot (be Friilin la to ■ 

Or Wito and In bs aivenbad act ii adl ol the 
edtabBisb Gantt, Iks fettnu, Tto llenU 
Md The Rmncbrrtxa acw^npet* tJo« aay 
panf dainlng u isterest io lodge Aon era 
I tou e. it « advbed. wilhEa rwmty-ooc fep 
iflcr mdi iaiienilB ii and adwatacaean. 

Dosald M. Boa LPJX* 
of ill write lattoarioa b hereby pea. 
BHrifaiWS 
If Athefl CieKesr 
Hfetaiigh BHl IHA 
Sefleta far rin Mtoaoen 





The survey will review the taxation system 
worldwide and examine the chaHenges It will face 
In 1994 and the Implications for the International 
business community. The survey will reach an 
estimated international readership of 1 minion. 


For an afBnrial synopeto awl MmmSm on adveittetag opportunities 
ptorau contact HELAMEMLESob Tel: 071 873 4874 Fax: 071 973 3064 


YORKSHIRE SPORTS 
LIMITED 

The shareholders of Yorkshire Sports Limited are considering 
retirement and offer lor sole the shores In the company, or 
the whole or either pari of its business. 

♦ The company Is based in Harrogate. North Yorkshire. 

♦ Long leasehold site with further development 
potential adjacent to the Yorkshire Showground. 

♦ Established dry-slope ski centre with an annual 
turnover of £160k and membership of 300. 

♦ Leisure centre including 4 squash courts and modem 
fitness centre (recently refurbished), function room, 
catering tocStttes and licensed bar. Turnover £190k. 
600 members. 

♦ Well known for quatffy of tuition with miema tonally 
respected cooc. res and British team members in both 
siding and squash. 

♦ Committed, enthutiasllc workforce comprising 
19 fij] and part time employees. 

For further information please contact 
Chris Marshall, Corporate Finance Manager 

ROBSON RHODES RSM 

' mtenuUond 

■■■■I l Juutisnl Anninlmk BHMH 

SI George House. 40 Great George Street, Leeds LSI 3DQ 
Telephone: 0S32 459631 
Fate 0632 436129 

the dkedoa of Yortetee Sports Untod accept MaponsfeHy tor tno 
contarto of ttto adverttament wtven Ks boon approved by a Ikm 
authoitod by the nstituie of Chartered Accouiionts In Eixpand and 
wrens to cany on tnveetrnent txJSteMt 



Um Ihr lunAa ol Uwrt 

ttart a«|> Rftrtwt 


FOR SALE 

AS A GOING CONCERN 


*• a n i/ 

PUBLIC HOUSE & HOTEL 
Saltcrhcbble If ill. Huddersfield Road 
Halifax. Weal Yorkshire 

_ - . *kljr In aee+tWm m abrftvlnii 3-loM Ij i mm c Mtfoylrtif « erlmr main ndil 

•umlfort. -f mMcw Iruni JIM. MA! nwiurway. SgBt FierfoMleewhuU *«le Mimpnamr 
CK 1 T»*o hAflc llnware ami rar parklmc fopfeun 
(Li Jt HotiiOutWKt IbMtiH BUl Utar llouar. Ory 
iVx*. Smlrve pta AhtakiMl car jniiitii 


XlHWi'ANTlAl. OPPRRS aic m(UPMU>d lor ll 

=S«'2S^3L , ^r” , ‘" 01 3 “ ,,n - 


I met: Mlctwrllei FreiwU 



BUYING • SELLING 
A BUSINESS? 


Network 

atda mmit aanlea tor 
far salt 


fee Ninon b • eouo ol acauadans. 
sotieHors. warmadarto. broken and 
company oanara who are id tog o< 

Omung UuMwaoes vc 

HaBObtoutm • Eaglanatao " Itonuy 
CoadracthM • Cmhmrs • Sanricu 
r.cunv wnnviraaiMi Men* 
on M lUMBrt M W MHRlr Mob Cjl 
071 4341 9992 
K uw*v kerne. Lnoon wiv me 
Racelte mm MB tmsknssm torsate 


SECURITY COMPANY 

For vale in Fucnginob, Spain. 

Full permissions obtained Tor 
installation, distribution etc. Company 
has ceased (ratting but remains properly 
CDRstlroied with issued and payed-up 
share capital. 140 xqamr. warehouse and 
offices optionally available. 
Skyguerd SA. Tel: 34-S-2SJ266C. 
Fax: 34-5- 2836734 


SPECIALIST 
RECRUITMENT/ 
EMPLOYMENT AGENCY 

London bused 
* Existing management 
Annual sales - £3m * Nell profit - 
5 J'"’. IntL-rcstcd purchasers 
please contact 

Box B2806. Financial Times, One 
Smtornt Bridge, London SH I 9111- 


PLANT HIRE BUSINESS 

A well established Plant Hire 
business is offered for sale doe to the 
impending retirement of the owner. 
Turnover JBSOJOOO.OO 
Bxcclieni Profits. 

Well established clientele to include 
Council and British Gas contracts. 
Write to Box B2809. Financial Times, 
OneSemhwaek Bridge, 
London SEl 91IL 


CONTRACTS & TENDERS 


FT Surveys 


SUGAR & INTEGRATED 
INDUSTRIES COMPANY (S.I.I.C.) 

12 GAWAD HOSNY STR. 
CAIRO/A.R.E. 

R MRC H ASIN fi- SECTOR 

Announce for the International TENDER NO. 1/6 BELKAS 
for importing steel & St St. longitudinally welded tubes for 
BELKAS PROJECT financed by the SAUDI FUND FOR 
DEVELOPMENT according the following: 

1. Offers will be received & opened on 15/6/94 at 12 
O'clock Cairo local time. 

2. Tender documents can be obtained from above 
address against a stamped application and paying 
LE.1000 for one set to be increased by 10% in case of 
It Is requested by MAIL 

3. Offers should be submitted through registered 
EGYPTIAN AGENT and accompanied by the following: 

a. Original of agency form 14C for review & copy of It 
attached with the offer. 

b. Copy of receipt of Purchasing the tender documents. 

c. 2% at least (bid bond) unconditional bank guarantee 
issued from a first class bank & endorsed from a first 
class EGYPTIAN BANK to be increased to 10% in 
case of awarding contract 

4. Offers not comply strictly with terms will be rejected 
without response. 


•;iKt **: \ 


























10 



THE AIRCRAFT 

^ rmi.ua FOR YOUR 
V ' CSOXUSSL BUSINESS 

CHARTER • SALES • MANAGEMENT 


ALG AEROLEASING 


:a • ruR:cH • l-sa:;:. • >,e;; rcs.>; • .-.clSt:;. 
5 • S^SSSLS • BERLIN • Hif.'CvRO • VAC‘15 - 
r.iE'V ’ KINSHASA • SiNSAPOAt * CEIJ'HCi 


Cl/CJm 


Geneva 41-22/798 45 10 Zurich 41-01 /314 37 00 


DOING BUSINESS 
IN RUSSIA? 

Save time, effort and money at the start 

All foreign companies wishing to conduct 
business in Russia need to register there. In 
Moscow, registration is handled by the Moscow 
Registration Chamber Fortunately, this process 
■can be relatively quick and easy, thanks to 
Financial Izvestia which is now offering the 
Moscow Registration Chamber's own Guide to 
Registering Companies in Moscow. Written in 
English and in collaboration with die 
international law firm. Safaris Hertzfeld & 
Heilbronn, this invaluable Guide 

■ Enables you to select the most suitable legal 
structure for an enterprise 

■ Supplies checklists so you avoid common 
mistakes when registering 

■ Prorides sample registration forms and letters 
to obtain the relevant authorisations 

■ Lists addresses and contact details of key 
agencies in Moscow 

Much of this information is simply unavailable 
elsewhere and will be of real practical everyday 
use to anyone intending to do business in Russia, 
as well as legal, financial, accounting and other 
advisors. 

The Guide to Registering Companies in Moscow 
is available exclusively from Financial Izvestia — 
to order your copy, see below. 


FINANCIAL IZVESTIA 


Financial Izvestia is a weekly business newspaper, 
produced by the Financial limes in partnership with 
Izvestia, Russia's leading quality daily. 

FuMiAtd far fiMMM IcvcMfa hjr PT Borin*** EataqpfaM Ltd. Rcgklmd Otflefc 
NuaUxr One Soo»ww* Brtdg^LnoOoH SE1 9HL. Rcglmred ta Eogtod No. 980896. 


REGISTERING COMPANIES IN MOSCOW 

cnbanK tu49eq.uk rax." +44 (0) 209 612811 

Srionqrirk* +44(0) 209 71I9U Ml 

EriKorU mi Mnritrtb* oqeirfcs +44 (•) n 7»» 2002 


NAME 


TITLE 


COMPANY 


ADDRESS 


POSTCODE 


COUNTRY 


OBrrUarOrfT 





RO« 


■ 

D 



FitYMEhTncwiioKeMp^rneMMMMcoapinranfar.MaelKlB<(apAi» 

n ynW : 

O lcedkee on cheque tolheialaeefl/lJSS. 
dem os ■ UR but h 

□ 

CMNonbcr 


4em os > UK but vnd nfe pipMe to FT Bunsen Infcnnvdo*. 

"■*"* -y«*c«d Q Q D&, OM 


i jziz d 

card expiry mere 


SIGNATURE 


DATE 


itaK „ 

rfTWBTWiWOKSAtWST/TVi 

L TI CTZl 1, 


fcsdadiagitKUK) i 


* •'•JWh VAT idcaiilyiflg 


PtaieAMateitoMiui 

7 dm<* man Hw urimneii lot . 

m tmw>w>p 


riwvon r iMai e— «d IvienlMMc ran d rta wdmVt, 

■M ktMibt nM MjkcMlwkar HAnwdof 

I QiilllTimwiiluteHtoM* !■»«■«*• 



Tropical l un frvo u d Bra uc 
vataabk to loggia (fan other met in Ac 

High price* fin hadnoodt ensue due 
logger* tax do qnbe ihosr dBB ny mg 
other oca dot mnd iv their w*y. 

So a WWF p ny x t bo Con Rica s 
naanMns'nfa offtOas* nee vrirfma 
bringua dm snail adiro nuod t 
And how to ndow it iriibow hdUaring 
apshchtongb ffct w t rmiwMng crccs- 

Iftfce ■■*■'<«■■■ ■« UC nod wisely, they 
can be seed finewaL Hdp WFpanc 
dn in iroend the wadi, by 

writing to the Mt nhm h i p Officer m the 
nUias Wow. 


& 


WWF 

V\torid Wide Fund For Nature 


LOW COST Wi » AM,: 

SHARE DEALING SERVICE 08 , -'' 44 1 1 


'MMlSsloN KU!M -L0 M1MMI M T* 1 
r-n ><<» .ia ’ k - iii\Pr 


Forex or Futures prices from £49 per month 
For 30 second updates on your Windows PC Screen or 
Pocket Financial Monitor call 0494 444415 

QuoteLink from SPR1NTEL 



INDEXIA 

Technical Analysis JcTraded Options Software 

IN DEXIA Research, 121 High Si. Boritharoaiod. HP42DJ 
Tel (0442)878015 Pto (0442) 876834 



Are you dealing in over $lrn? 
Fast, Competitive Quotes 24 Hours 
on 071 815 0400 or fax 071-329 3919 


INVESTORS -TRADERS - CORPORATE TREASURERS 
SATQUOTE™- Your single service for real time quotes. 
Futures * Options * Stocks * Forex * News * Via Satellite 

LONDON +71 3293377 NEW YORK +212 2696636 FRANKFURT + 4969 44Q071 





38 DOVER STBEBT, LONDON W1X3SB 
TEL: 071 629 1 133 FAX: 071 0500X1 

I; 


FOR TRADERS ON THE MOVE 

Watch the markets morc with Che screen In your pocket that receives 
Currency, Futures, Indices And News updates 24 hours a day. For your 7 day 
tree trial, cafl Futures Pager Ltd on 071-395 9400 now. 

1 FUTURES PAGERi 




Don’t miss the IG Index Seminar 
May 27 on Politics, the Economy, 
Markets and Sport. 

1 Speaker*: Alan Cbric, Pwrick. Minfortl, David RjDct 

B and Chris Cowdrey. Cafl OTl 823 7233 tor brodwre. 


Duff Forecasts and Market Myths for 1994 

ifie Jj dollar vvli; soar; doliclicn will conl-nuo, go'd * mosi cc-mmccJi!:c-s 
v.on t r'iso. Japan s oconorr.y S jtec'< maikM be weak. ' You did 
NO! rood thet :n FulloiMoncy - !!-, 0 !ccncc!ac.tli fnvcs'rr.ont lellor. 

Cu -«"v :, :^«Lil-or:or! 'y> c •--•r ;■? (c-’so cr.y) c: C"c^ ;-r LU, 

> ;*s:'o'*3"cf l . :^aj t 7-o. - j< L °'- on - r ' 


FOREXIAFAX $ £ Dm ¥ 

A 9 YEAR POBUC RECORD OF AOCUM7E SHORTTERM HORBOI EXCHAMGE FORECASnin 

DAILY FOREIGN EXCHANGE COMMENTARIES, 
CHARTS, FORECAS TS ANO R ECOMMENDATIONS 
Tb£+ 44 81 948 8316 ^J385Tor Fax: +44 81 948 8489 
FOREXIA FAX - by ushq handset on yow (ax machine Ad +44 8t 332 7426 


? Currency Fax - FREE 2 week trial 


* c *« x Chart Analysis Lid 

xcx 7 Swallow Sl:«-t, Lcodon ‘.VlR 7HD. UK - 

' o cichenge ta;e sp?cij|;s;s lor gw 20 ym 


■;;L Anne Whitby 
Tci 071-734 7173 
Fc* 07 1-439 4944 



24 HOUR 

CURRENCY MANAGEMENT 


CORPORATION FLC 


FOREIGN EXCHANGE 

WtadaKTHaeM 

/vV ^ 


TfLaidreWtf 


London 

London EC2M 3ND 


Dealing Desk 

Td: 071-182 97*3 

Rue 071-3839487 




TREND 


•FOREX *METAIS ‘BONDS ‘SOFTS 

Objective analysis for professional invosfors 

0962 879764 . 

Fionr.cs Hwte, 32 Southgate S‘/iet, Wlrc^stor. } 

Hants SC23 2 EH Fm 0424 774CS7 


IF YOU GO DOWN TO THE WOODS TODAY — 

One thing is certain as & when bear markets arrive, the vast majority of investors 
will suffer whil3t the knowledgeable will pick np the bargains of a lifetime.' Avoid 
the pitftilsaf investments to tho 1990s & ring 061 474 0080 to book your FREE 
place at the IDS Gann Seminar. 


Daily Gold Fax - free sample 

... , d:4: Anno Wh.lby 

l.cn i.noil Ar-jlyvi-, Ltd T . iri7 , 7 7 , 

7 Svmkow Street. Lon-don wjr 7MD. UK • ' 0 n . . (O, ao 7 c 

commodity specuSisii lor over 22 ye.irs rox ‘ ' J ' 


FINANCIAL TIMES TUESDAY MAY 10 W 

PEOPLE 


Prime movers give clout 
to Chinese exploration 



Sir Michael Palliser, 72, 
(above), a former head of the 
British diplomatic service, has 
joined the board of the Explo- 
ration Company of Louisiana, 
a small loss-malring US oil 
company which it as been rais- 
ing money in the London mar- 
ket. 

Sir Michael, vice chairman 
of Samuel Montagu, is a for- 
mer director of BAT Indus- 
tries, Bookers, Eagle Star, 
Shell and United Biscuits. 
Given his age, there Is some 
surprise that he is taking on 
additional directorships. How- 
ever, he is two years younger 
than Arthur Hummel, a for- 
mer US ambassador to China, 
who has also joined the board. 

Henderson Crosthwaite, the 
UK brokers to the company, 
which has a substantial UK 
investor following, played 


down the age of the new direc- 
tors. Exploration Company of 
Louisiana, which has until 
recently been exploring for oil 
and gas in the US Gulf coast 
area, has started looking for 
oO in fHilna. 

It raised 825m earlier this 
year to help finance the dril- 
ling of three wells in the Zhao 
Dong block in China’s Bohai 
Bay. The recruitment of a cou- 
ple of well-connected septuage- 
narians is designed to give the 
company some boardroom 
dout in a part of the world 
where businessmen often do 
not reach their prime until 
they pass their 70th birthday. 

Sir Michael and Hummel 
join a board which already 
includes an ex-mayor of Hous- 
ton and a descendant of the 
New Orleans banking family 
which invented Tabasco sauce. 


■ One of the side effects of the 
change of control of 
OSBORNE, the grain trading 
and pig production company 
whose Chairman Is Lord Cecil 
Parkinson, is that chief execu- 
tive David Frame has stepped 
aside rather earlier than his 

pinimwi retirement on reach- 
ing GO in July this year. 

Michael Adams, the director 
responsible for the group’s 
grain trading operations, has 
taken over as group managing 
director. 

Frame, who last week sold a 
36 per cent stake In the com- 
pany to David Thompson, a 
shareholder, is staying on as a 
director of the company until 
July and thereafter will act as 
a trade adviser to Usbornc 
Grain- 

Financial problems hit the 
group early in April, forcing 
the suspension of its shares. 
Thompson’s company, Thomp- 
son Inve stm e n t s , now controls 
just over 50 per cent of 
Usborne’s equity. 

■ Downie Brown, formerly 
commercial director of RTZ 
Pillar, has been appointed 
group finance director of 
HARLAND AND WOLFF. 

■ Derrick Broomfield, 
formerly group finance 
director of Jeyes, has been 
appointed finance director of 
POWERHOUSE RETAIL. 

David Callear, formerly group 
chief executive of TIP Europe, 
replaces Broomfield as group 
fd and deputy group chief 
executive at JEYES. 

■ John Legg is promoted to 
md, product support division 
at SMITHS INDUSTRIES 
Aerospace on the retirement of 
Zan Newton; Nicholas Wilton 
is promoted to md defence 
systems division on the 
retirement of Derek Jackson. 

■ Peter Owens has been 
promoted to finance director of 
FIN A, part of Petrofina. 

■ Nigel Walmsley has been 
appointed chairman of Carlton 
Television; he succeeds 
Michael Green who remains 
group chairman. 


New editor for Investors Chronicle 


Ceri Jones, 35. has taken over 
as editor of the Investors 
Chnmicle, a weekly magazine 
owned by the Financial Times. 
She replaces Gillian O'Connor, 
one of the longest serving edi- 
tors of the Investors Chronicle, 
who became the FTs personal 
finance editor earlier this year. 

Jones, who read English at 
Liverpool University, started 
her career as a graduate 
trainee with Midland Bank but 


a year later switched to finan- 
cial journalism. After stints 
with Planned Savings and Pen- 
sions Management, she has 
edited Financial Adviser, 
another FT weekly magazine, 
for S'A years. 

The magazine, which has a 
free circulation of 44,000, 
claims that It Is the most 
widely read title among finan- 
cial intermediaries, and Jones 
has been given the task of sub- 


stantially increasing the fC's 
circulation. Last year it rose by 
24 per cent to 564)00 and by 
more than doubling the pro- 
motional spend, sales have 
increased to around 65,000 
copies a week. Mark Van de 
Weyer, publisher of Financial 
Times Magazines, says that 
with additional Investment an 
ultimate target of 100,000 
copies per week “should not be 
regarded as over-ambitious 1 '. 


Bodies politic 

■ Angela Robinson, chief 
executive of the Yorkshire 
Regional Blood Transfusion 
Service, will become medical 
director of the NATIONAL 
BLOOD TRANSFUSION 
SERVICE on the retirement 
of Harold Gunson at the end 
of June. 

■ Sir Frank Lampl. chairman 
of Bo vis Construction Group, 
has been appointed first 
Chancellor of KINGSTON 
UNIVERSITY. 

■ Simon Arnold, chairman 
of Bain Clarkson, has been 
appointed chairman-elect of 

the BRITISH INSURANCE 
AND INVESTMENT 
BROKERS’ ASSOCIATION. 

■ Sir Michael Checkland. 
former director-general of the 
BBC. has been appointed an 
independent trustee of 
REUTERS FOUNDERS SHARE 
COMPANY. 

■ Mike Short, Cel l net s 
director of external affairs, 
has been appointed 
vice-chairman of the European 
committee on GSM networks. 

■ Stephen Watson, director 
of the Judge Institute of 
Management Studies at the 
University of Cambridge, has 
been appointed dean of 
LANCASTER UNIVERSITY 
Management School. 

■ John Thurston, md of the 
Watts Tyre & Rubber Group, 
has been appointed president 
of the NATIONAL TYRE 
DISTRIBUTORS 
ASSOCIATION. 

■ Michael Pickard, chairman 
of London Docklands 
Development Corporation, and 
Mark Wood, md of AA 
Insurance and Financial 
Services, have been appointed 
to the committee of The 
AUTOMOBILE ASSOCIATION. 

■ Robbie Gilbert, director of 
employment affairs at the CBL 
has been appointed a member 
of the council of ACAS, In 
succession to the late Richard 
Price. 

■ Peter Foreman (below left), 
md of Sun Alliance 
International, has been 
appointed chairman of the 
Loss Prevention Council on 
the resignation of John Carter. 

■ Roger Carson (below right) 
has been appointed president 
of the INCORPORATED 
SOCIETY OF VALUERS AND 
AUCTIONEERS. 



INTERNATIONAL ECONOMIC INDICATORS: PRICES AND COMPETlTiVEWESS 

Y«8rty Sgues are sftown In indax form wmi tfx> common bt*so year of J98& The real «wchw»B» rate b an hd«t throughout ottwr quarto* and monthly figure* Awlw patcontega 
change over the corresponding period In the previous year and are positive iriess otherwise stated 


■ UNITED STATES 


■ JAPAN 


■ GERMANY 




INtoM 

Emhg* 

u* 

Mar 

cam 

M 

>rire» 

ne» 

flan—ii 

ptBM 

teahmr 

frieoo 

Ben* 

UP 

Me 

cave 

H-i 

ni» 

1965 

1004 

100.0 

1080 

1004 

1004 

ioao 

1004 

1004 

1080 

1080 

1986 

1015 

988 

1022 

99.4 

86.0 

100.8 

854 

1014 

1084 

1184 

19B7 

1Q5.6 

1087 

103.8 

96.7 

782 

1014 

925 

103.1 

1005 

1225 

1988 

1095 


1085 

99.1 

71.1 

1022 

825 

1075 

964 

1314 

1988 

116.2 

1085 

1180 

101.1 

745 

1045 

944 

1144 

981 

1235 

1990 

1215 

1134 

1134 

1044 

724 

1084 

987 

120.1 

964 

1084 

1991 

1285 

1164 

1172 

1074 

742 

111.8 

965 

1244 

1014 

11 44 

1992 


117.7 

■KiLfl 

E£51 

742 

1135 

988 

1286 

111.0 

1184 

1993 

1344 

1194 

123.4 

1055 

786 

1154 

944 

1254 

1184 

1344 

2nd qtr.1993 

32 

24 

25 

-25 

75.7 

14 

-1 A 

0.7 

54 

1334 

3rd qtr.1993 

24 

87 

25 

-24 

765 

15 

-14 

0.4 

4.4 

140.7 

4th qtr.1993 

2.7 

83 

34 

-34 

787 

14 

-21 

-0.1 

81 

1374 

lstqtr.1994 

25 

82 

34 

-1.7 

774 

1.4 




1374 

May 1993 

82 

2.1 

25 

-15 

75.6 

1.1 

-15 

23 

83 

1324 

Juw 

34 

14 

25 

-27 

75.9 

14 

-15 

-05 

84 

1365 

JtaJf • 

24 

14 

25 

-25 

774 

14 

-1.7 

-14 

84 

1387 


24 

05 

25 

-28 

755 

24 

-14 

25 

26 

1444 

September 

2.7 

84 

25 

-27 

75.4 

14 

-24 

15 

84 

1384 

October 

24 

82 

25 

-29 

755 

14 

-21 

86 

75 

1385 

November 

21 

0/1 

34 

-22 

774 

05 

-21 

1.7 

3A 

138.7 

December 

24 

82 

35 

-34 

77.4 

14 

-24 

-1.1 

42 

1855 

January 1994 

25 

02 

25 

-14 

774 

1«4 

-2.1 

45 

42 

1345 

February 

25 

02 

34 

-15 

77.0 

1.4 

-24 



138.4 


25 

02 

34 

-14 

784 

14 




139.7 

Apr! 





784 

88 




1414 






■ ITALY 









IMt 

M 




m 

HM 


Ownr 

Mar 


Mw 

crimy 

Cover 

'nOxm 



■menu 


Ota* 

priew 

Eentag* 

com 

MB 

W« 

trio M 

tote, 

MV 

m* 

1985 

1004 

1004 

1080 

1004 

1080 

1004 

1004 

1080 

1080 

1004 

1988 

1025 

87-2 

1045 

1074 

1024 

108.1 

1004 

1044 

1027 

1015 

1087 

1054 

974 

1074 

1034 

1044 

1114 

1034 

1114 

1086 

1020 

1988 

1088 

1028 

111.1 

1034 

1022 

1165 

1088 

1184 

100.7 

1005 

1989 

1124 

1084 

116.4 

1054 

994 

1244 

1181 

125.8 

1123 

1034 

1990 

1185 

107.1 

1286 

1095 

1035 

1314 

1175 

134.7 

118.8 

1082 

1991 

120 2 

1054 

1254 

1134 

1022 

1483 

121.7 

1475 

1315 

1055 

1992 

123.1 

104.0 

1383 

1154 

105.7 

147.7 

1244 

1555 

1364 

1014 

1993 

1255 

101.1 

1387 


1085 

1635 

128.7 

1614 


875 

2nd qtr.1993 

24 

-34 

n.a. 


109.7 

4,1 

35 

21 

24 

804 

3rd qtr.1BS3 

2 2 

-84 

IUL 


1065 

45 

44 

4.1 

21 

875 

4th qtr.1993 

2-1 

-22 

tua. 


107.7 

4.1 

35 

88 


687 

let qtr.1994 

1.7 


ruL 


1075 

44 




85.1 

May 1893 

2L0 

n.a 

- 

aa 

109.8 

4.0 

35 

28 

aa 

89.7 


15 

aa- 

26 

aa. 

1094 

44 

4.1 

4.1 


981 

Jiriy 

2.1 

no. 

- 

aa. 

1086 

4A 

44 

4.1 

aa 

887 

August 

22 

ni 

- 

aa. 

106.4 

4.4 

4.4 

4.1 

aa 

875 

September 

24 

rm 

24 

aa 

1075 

44 

44 

44 

aa 

874 

October 

22 

rui- 

— 

aa 

107.4 

44 

4.1 

35 


888 

November 

22 

IUL 

— 

aa. 

1074 

44 

3.9 

35 

n^L 

888 

December 

2.1 

no. 

22 

a a. 

1085 

44 

87 

86 

aa 

84.7 

January 1994 

14 

tua. 

- 

ns. 

1075 

44 

35 

44 

aa 

85.1 

February 

14 

aa 

- 

aa. 

1089 

42 

34 


aa 

854 

March 

14 

IUL 

20 

aa 

1081 

42 



aa 

845 

Apr! 


aa. 

- 

aa 

1084 

4.1 



ruv 

874 


100.0 

99J9 

100.1 

101.4 

104JZ 

1070 

110.7 

115.1 

lisa 


10Q.0 

97.5 

85b 

9&2 

09a 

101.0 

1Q3A 

104.9 

1048 


100.0 

103 a 

1000 

113.0 

117.3 

1208 

I3T.fi 

1308 


100.0 

103a 

107.1 

108.9 

108.0 

110.3 

115.0 

121.5 

125.6 


toon 

107.4 

1109 

1100 

1Q7.fi 

1107 

108.1 

108.8 

IIOI 


4J2 

42 

3.7 

03 


-02 

-02 

-02 

02 


08. 

m. 

ruL 

rUL 


5£ 

1.8 

-5L4 


1095 
1095 
109.7 
107 Ji 


42 

42 

42 

42 

4.0 

3-9 

3j8 

8.7 

3J5 

3.4 

3.2 

3£ 


-02 

-OA 

-02 

-02 

-03 

-02 

-02 

- 0.1 

OO 

02 

0.3 


as 

3.4 
2 2 
02 
15 
-02 
-05 
-03 


109.4 

108.4 
1091 
1005 
111.1 
111.1 

109.4 
109.0 
107.2 
1084 
1074 
106.8 


■ UNITED KINGDOM 


100.0 

103.4 

107.7 
113.0 
1215 
7303 
141.2 

140.4 

148.7 


100.0 

101.4 
104JS 
1087 
113J9 
12U3 

127.5 
1315 
1387 


100.0 

107.7 

1165 

1282 

1375 

150.1 

162.4 

1781 

180.9 


100.0 

1045 

107.1 

110.0 

1188 

1235 

1314 

1345 

1344 


15 

44 

5.0 

-05 

654 

1-8 

44 

4.4 

12 

97.1 

14 

35 

35 

1.7 

97.1 

2.4 

34 



984 

14 

4.0 

44 

-24 

955 


44 

45 

1.1 

981 


42 

54 

0.7 

97.4 


44 

34 

1.0 

974 


45 

4.5 

14 

987 


4.0 

34 

20 

982 


34 

4.0 

15 

97.1 


4.0 

4.0 

1.1 

97.8 


3.7 

44 

21 

99,8 

24 

3.4 

2.7 

4.4 

22 

983 

974 


StaUsMcs tor Germany apMr only to western Germany. Data «Wed by OaMatwm and WB=A tram naflonm gownmant and IMF . .. .. . _ 

prices: not seasonely atfluatad. Producer prices not seawrwlly adjusted, US - ertamd floods, Japan - manufactured good#, 

poods. Ita* - tatoi produce prices. I* - marx^^prodi^ Bm^ngs Index: not se asonal adjusted, rate* to 7^ 

industry hourly ewept Jepul frnonWy) and l* (vreeMy l. tWI Mioar ccsfar gaaonBay aHuated, mttgJred m 

countries - nWaoturfng Industry- Red taa^mgo rUK JP Mwgm real Relive exchange rate Index vwaua IB kidualrU 

HdKeessto price Ot doweiic tnanufactuws. A bl Yi the Index InJcWee hnprewed fcitematlorari corrpetHlweneasL ^ curoncies. a<*ustod lor chmge |n 



the sarvey wffl review the taxation system worldwide and examine the challenges It wffl taco in 1994 anri 
for the International business community. The survey win reach an “B'nated hrteniatftiiw 

For* ayoopBfc and Infomtation on advwUstag oppoitunWea pfoi»e contact 

MELANIE MBJES on Tel: 071 873 4874 Faxr 071 873 3064 

FT Surveys 



























FINANCIAL TIMES TUESDAY MAY 10 1994 


1 


I 




OEC3 C:purt 

TI*C Ot.31 
Opr a: 


Cfe*^ 


Hn -- ■ 

1 .j 

*w»» lt.l« 


: • w- ■. 
r-~, • .. 

• ..»!• n. 

u 

n ■ "f 

* - - tt 

M 

\ »■- 

’ f ; ■ j- 

f *• • »-* • ■ „ 

' r : * -■ 


r L= 

' *r - 



BUSINESS AND THE LAW 


Legality of an 
obligation to buy 



EUROPEAN 

COURT 


An exclusive 
pur chasing obliga- 
tion, forcing local 
electricity distrib- 
utors to purchase 
all their electricity 
from a regional 

company, could be 

lawful provided 
such a restriction was necessary 
to allow the regional company to 
ftflfil its public service obligations, 
the European Court of Justice 
ruled recently. 

Local electricity distributors in 
the Netherlands brought a case 
against their regional electricity 
company. Under Dutch law, elec- 
tricity Is distributed by regional 
companies to local distributors, 
which in turn ensure the supply of 
electricity to individual clients in 
their areas. However, certain end- 
users, notably those in rural 
areas, are directly supplied by the 
regional wwnpawiag- Regional dis- 
tributors have a non-exclusive 
statutory right hi distribute elec- 
tricity in their region. 

Between 1985 and 1968, the 
regional distributor concerned 
prohibited the local distributors 
from purchasing electricity from 
any other source. There was a cor- 
responding obligation on the 
regional company to sell electric- 
ity only to the local distributor 
companies. These companies, in 
turn, imposed an obligation on the 
final wmaimw to pu rchase elec- 
tricity only from them. The 
regional companies also bad to 
purchase their electricity from the 
national generators. 

From January 1 .1985, the 
regional company imposed a sur- 
charge on the local companies in 
order to compensate for the differ- 
ence between the higher cost of 
distributing electricity direct to 
rural consumers and the lower 
costs of distributing electricity to 
the local companies for use by 
urban consumers. 

The local companies made a 
complaint to the European Com- 
mission. The Commission ruled 
that the restriction imposed by the 
national generators on the 
re gional distributors was unlawful 
under the Rome treaty. It also 
held that the restrictions on the 
end-users breached competition 
rides and could not be justified 
under Rome treaty rules on public 
service undertakings. The restric- 
tions between the regional and 
local companies were not explic- 


itly dealt with by the Commission. 

However, before complaining to 
the Commission, the local compa- 
nies bad started arbitration pro- 
ceedings to decide the legality of 
the surcharge imposed by the 
regional companies. A tribunal 

found that the surcharge was law- 
ful The local companies appealed 
to a national court which sought a 
preliminary ruling from the ECJ 
oai, among other things, whether a 
prohibition on the importation of 
electricity such as existed in the 
present case was contrary to 
Rome treaty rules covering state 
monopolies and competition. 

The ECJ first held that Euro- 
pean state monopolies rules were 
not relevant to the present case, 
as the regional distribution com- 
pany did not have an exclusive 
right to distribute electricity in 
the relevant territory. 

The ECJ thon found that fli« 
import prohibition restricted com- 
petition and affected trade 
between member st a t e s, as it par- 
titioned Dutch market from, 
other European Union markka 

Bat the ECJ left it to the 
national court to determine 
whether a collective dominant 
position actually existed between 
all fh<» regional companies in the 
Nether lands. The ECJ said if it 
did, the tytng-in of electricity pur- 
chasers in the way described 
would con stitut e an abuse of that 
dominant position. 

The ECJ finally examined the 
Rome treaty provisions on public 
service undertakings which pro- 
vide that restrictions on competi- 
tion imposed by such companies 


are lawful to the extent which 
they are necessary for the perfor- 
mance of the relevant services of 
general economic Interest carried 
out by those companies. 

The ECJ said it was for the 
national court to determine 
whether the import restriction 
was necessary for the regional 
company to distribute electricity 
in its territory. It stated that, in 
determining this question, the 
national court should take into 
account the costs borne by 
the company, in particular regula- 
tory costs relating to the envi- 
ronment. 

C-393/92: Commune d’AJmelo ea v 
NV Enerffiebedrijf Jjssehnij. ECJ 
FC. April 27 1994. 

BRICK COURT CHAMBERS, 


BRUSSELS 


T he Norton Rose/M5 group 
of English law firms 
recently surprised the legal 
services market by decid- 
ing not to merge its operations into 
a single natio nal partnership. 

The trend in recent years has 
been to extol the merits of national 
law firms, such as Bversheds and 
Leeds-based Dibb Lupton Broom- 
head, which say their geographic 
spread and structure make them 
more flexible to client demands. But 
a review carried out by the Norton 
Rose/M5 group revealed no “busi- 
ness case" for merging its seven 
firms. 

According to Mr Peter Smith, the 
group's chief executive, clients of 
the individual firms could see no 
significant advantage in their law- 
yers becoming a nati onal partner- 
ship with offices in the main com- 
mercial centres of England and 
Wales. What mattered to them was 
the continuation of the relationship 
they had built up with a law firm or 
individuals within it. 

The question is whether this find- 
ing was specific to the Norton Rose/ 
MS group, or whether it is the typi- 
cal reaction of business rfiante 
Mr Barry O’Meara, deputy group 
solicitor for ICL the UK chemicals 
group, says that whether a firm has 
a national network of offices is not 
a factor in choosing outside law- 
yers. Two years ago ICI “out- 
sourced”, or contracted out. its liti- 
gation and conveyancing work. For 
the litigation side, it needed a firm 
well represented in the north of the 
flft untry - which is Id's hwwtlanil - 
and in London. Mr O’Meara says. It 
chose Hammond Suddards of Leeds. 

For conveyancing, the company's 
view was that, while most of the 
work was in the north, it could be 
done from anywhere. It chose City 
solicitor Field Fisher Waterhouse. 
The rest of the group's company 

and mmmoTf yigl work IS handlwl by 

the in-house team. Only for specific 
jobs, such as the Zeneca demerger, 
would it instruct outride lawyers. In 
such cases, its policy is to instruct 
the best firm for the job. For the 
demerger, ICI used Linklaters & 
Paines. 

S imilar ly % fliTTian Budd, group 
senior legal adviser at Cadbury 
Schweppes, the food and drinks 
group, can see no significant advan- 
tage in a law firm having a national 
network. Her company would not 
choose a law firm just because it 
had one. The different divisions 
within Cadbury Schweppes tend to 
use lawyers they know at a local 
level 

Mr John Elliott, a senior legal 
adviser at Si, the UK’s largest ven- 
ture capital company, says he 
believes some national law firms 
“overestimate the importance to cli- 
ents of their networks". 

Nevertheless, it can be a factor 
when choosing a firm, says Mr 


Borderline 


cases 


Robert Rice on the pros and cons 
of becoming a national law firm 



Th® Scotsman 

Cairns: the same law firm worked for his company in Scotland and England 


Peter Bevan, British Petroleum’s 
group general counsel but it is not 
usually decisive. On rare occasions, 
BP has used a firm because of its 
spread of offices, but in general the 
company’s worldwide policy is to 
choose firms for specific jobs. 

According to Mr Julian Collins, 
solicitor to the British Coal Pension 

Funds and chairman of the Law 
Society's commerce and industry 
group, there is no significant 
demand from commerce and indus- 
try for the legal profession to follow 
the accountancy model and set up 
national networks. 

Such c omments suggest the Nor- 
ton Rose/M5 decision not to merge 
its firms was a sound one. While its 
group relationship allows the indi- 
vidual firms to co-operate in train- 
ing recruitment, exchange of infor- 
mation and in marketing at an 
international level there seems to 
be no demand for a single partner- 
ship. 

However, there may be demand 
for firms that offer high-quality ser- 
vices an both sides of the Scotland/ 
England border. By failing to 
include Scotland in their networks, 
the P-TiRtmg English national law 
firms may have missed a trick. 


Scotland is a distinct jurisdiction. 
Although most company and com- 
mercial law is the same as in 
England, differences in litigation, 
prope rt y and bankruptcy laws may 
have dissuaded a number of En glish 
firms from focusing on the Scottish 
legal market 

Scottish firms have not been slow 
to recognise the potential demand 
for services in both jurisdictions, 
but few are big enough to do so, or 
prepared to risk losing referral 
work from En glish firms by compet- 
ing south of the border. 

M cGrigor Donald of 
Glasgow may be the 
exception. A number 
of Scotland's leading 
romwiPitrial firms do have offi ces in 
London, but in the last five years 
McGrigors has built its City office 
into a full-service operation. This 
arguably makes it the only true full- 
service national law firm in the UK 
According to Mr Robert Glennie, 
thp partner in charge of the London 
office, its strategy of building a full- 
service operation in London is 
hpginnhig to pay dividends. He cites 
the firm’s role in helping to turn 
round Scottish Metropolitan Prop- 


erty, Scotland's biggest property 
investment company, as an example 
of work which could not have been 
done by any other law firm in the 
UK acting on its own. 

Two and a half years ago, Scot- 
Met was on the brink of collapse, 
having reported an unexpected pre- 
tax loss of £&37m, including a write- 
down of £9. 4m on a site in Bourne- 
mouth, Dorset, and incurred a 
£&2m cost on renegotiating banking 

covenants. 

The loss followed a badly timed 
increase in the company's property 
development activity, particularly 
in the south of England. At the 
beginning of 1992. Mr Gordon Milne, 
the company's long-serving manag- 
ing director, stepped down and was 
replaced by Mr Scott Cairns. 

Mr Cairns announced a strategy 
of returning the company to its core 
activity of property investment, and 
set about reducing ScotMet’s bor- 
rowings, which stood at £20Im in 
September 1991 - a gearing ratio of 
140 per cent 

After renegotiating the company's 
hawking facilities and executing a 
controlled programme of property 
disposals. ScotMet has achieved pre- 
tax profits of E7.lm in the six 
months to February. 

Company borrowings, which bad 
already been reduced to £144 Jm by 
August last year, had fallen to 
£67 Sm. This was thanks largely to 
the sale last October of Saltire 
Court a prestige office development 
in the centre of Edinburgh, for 
£S3.lm - a £6 ,5m surplus on book 
value. 

In November, the company 
entered into what Mr Cairns called 
a "voluntary refinancing” with a 
one-for-three rights issue to raise 
approximately £26. 8m. It is now 
back on the acquisitions traiL In 
March, it announced the purchase 
of McNeils, a private company with 
a portfolio of retail investment 
properties in Berwick-upon-Tweed, 
for about £4.5m. 

Thanks to its London office. 
McGrigors was able to provide a 
complete service for ScotMet, says 
Mr Glennie. Five years ago. any 
work in England and Wales for 
ScotMet was handled by Linkl aters 
& Paines. 

This ability to provide overall 
legal services within the UK has 
proved attractive to retail compa- 
nies. McGrigors now handles all the 
UK employment and litigation for 
Gap, the US clothes retailer; it acts 
for the Sock Shop chain; and has 
picked up all UK banking and prop- 
erty work for Seagrams, the dr inks 
company. 

While there may be no “business 
case" for national law firms in 
England and Wales alone, firms 
might be wise not to ignore the 
opportunities that the provision of 
legal services throughout the UK 
could bring. 


LEGAL BRIEFS 



Supreme Court 
to review high 
punitive awards 

T he US Supreme Court has 
accepted another products 
liability case for review, 
giving It a further opportunity 
to set constitutional limits to 
excessive punitive damages 
awards. US products liability 
lawyers were disappointed last 
year when in the TSO case the 
justices upheld the constitutional 
basis of a punitive damages award 
526 times the amount of the 
compensation awarded. 

Since the TXO case, state courts 
have bad to rely on other grounds 
for curbing excessive punitive 
awards which. In most products 
liability and tort cases, arc still 
exceeding compensatory damages 
by multiples of 10 or more. 

In March, however, the Supreme 
Court accepted for review the 
Oberg case from the Oregon 
Supreme Court, concerning a 
products liability award against 
the maker of an all-terrain vehicle. 
The jury awarded the plaintiff 
$900,000 in compensatory damages 
and S5m in punitive damages. The 
Oregon constitution. In preserving 
the right to trial by jury, appears 
to prevent any court from 
interfering with jury verdicts. The 
defendants, Honda Motor Co, argue 
this, in effect, prevents any court 
from reviewing a jury damages 
award and therefore violates 
federal due process. Lawyers hope 
the Supreme Court will use the 
case to set out constitutional limits 
to punitive damages awards. 

All signed up 

F oreign companies can execute 
documents in the UK without 
die need to apply a common 
seal, following the introduction 
by the UK government of new 
regulations under the 1989 
Companies Act This will mean 
anyone eligible to sign documents 
under the foreign company's own 
domestic law will also be eligible 
to sign them under British law. 



It is people's imagination that makes the world go forward. 


The creations of Leonardo da Vinci reveal lhat 
every leap in progress begins with a leap of the 
imagination. 

By applying imaginative, tailor-made solutions to 
communications, energy and transport, we 
anticipate evolving needs in each of these 
fundamental areas. Together with our customers in 
over 1 10 countries, we're inventing a future in 


which people are more mobile, share information 
increasingly, rely on deaner and less expensive 
energy, and travel at ever-faster speed. 

Each year, we invest 10 % of our sales in research 
and development. Through common research 
programs in areas such as software development, 
opto- and microelectronics, superconductivity and 
materials, our 20,000 experts bring advances to, 


and create synergies across our three core 
businesses. 

By taking imaginative solutions ofF the drawing 
board and applying them to communications, 
energy and transport, we're helping customers 
around the . world to reach new heights of progress. 

To progress through communications, 
energy and transport 



ALSTHpM 


Alcatel Alsfhom, 54, rue La Bo&te 75008 Pane. Franca 













12 


TECHNOLOGY 


FINANCIAL TIMES TUESDAY MAY 10 1994 



W hether it is to 
make mashed 
potato Oakes at a 
top-secret weap- 
ons installation or simulate 
aero-gravity tor tourists, Rus- 
sia is bursting with plans for 
taming its cash-strapped space 
and defence industry into a 
source of lucrative civilian pro- 
jects. 

Some are capital-intensive 
and have yet to attract Invest- 
ment, others are a reality. 

One is the bizarre experience 
of weightlessness training, 
originally designed for astro- 
nauts and now wiflrfo available 
to anyone who can pay. “Mili- 
tary pilots - you zaust always 
remain in a state of combat- 
readiness,'' reads the faded bin- 
board at an airfield outside 
Mhscow as a busload of Japa- 
nese travel agents and US jour- 
nalists arrives for a gravity- 
suspending flight 
“Welcome on board this 
Ilyushin-76,” says Victor Rein, 
chief of the Russian Space 
Agency’s microgravity unit as 
his 15 foreign, passengers clam- 
ber on to a transport plane spe- 
cially equipped for simulating 
weightlessness. They are about 
to sample a 90-minute out-of- 
mind experience on offer to 
any potential “space- tourist" 
With $4,000 (£2,740) to bum. 

With an individual trainer to 
instruct and watch ova- each 
“tourist”, the seatless aircraft, 
complete with padding for a 
soft-landing after each hurst of 
zero-gravity, simulates weight- 
lessness by performing undu- 
lating flight manoeuvres in the 
shape of a parabola. 

It is the movement of passen- 
gers relative to that of the air- 
craft at the “apogee” of the 
parabola which creates the 
feeling of free floating. Some 14 
parabolas are flown, generat- 
ing as many weightlessness 
sessions, each lasting 30 
seconds, during which passen- 
gers can pretend to fly like 
Superman, or simply hang to 
the handrails while the rest of 
their body goes up in the air. 

While Nasa and the Euro- 
pean Space Agency have only 


la Boulton examines Russia's attempts to convert space 
and defence projects into civilian money-spinners 

Weightless, but 
gaining ground 




Superman for 90 nsnutes: ‘Spaco-taurratt’ wtth $4,000 to bum get to grips wfth the Joya of weightJessnses In 8 converted Russian transport aircraft 


one such aircraft each, the 
Russians have three but a 
dwindling number of astro- 
nauts to train in them. A cut in 
the once-lavish state subsidies 
means the agency is eager to 
use the space programme’s 
excess hardware to generate 
extra revenues as well as 
advertise Russian technologi- 
cal prowess. 

In an attempt to reach a 
wide audience, the agency is 
marketing the weightlessness 
nights in the west through a 
Florida -based company called 


MKk; Etc, which already has a 
track record offering tourists 
the fthnnrg to fly OVBT MOSCOW 

on MIG-29 fighter planes. 

The same financial crunch 
has hit the Russian defence 
industry which for decades 
produced masses of weaponry 
for the state without regard for 
its cost 

But after more than five 
years of talking about the need 
to convert excess defence 
capacity to civilian output, 
industry has experienced 
mixed successes in its efforts 


to carry out so-called conver- 
siya. 

The main obstacles have 
been not so much the cost of 
such projects but Russian 
authorities' inability to create 
a welcoming investment cli- 
mate managers’ dearth of 
maricwttng skills Many manag- 
ers have trouble both selling 
existing output and putting 
together attractive investment . 
opportunities for would-be 
investors. 

“Our people have golden 
hands." an official from the 


Tigers ar< 
could servi 




captive audience. 

or we could serve 


tWem bland. What we do serve every 
tirt^e, according to passenger surveys, is the 
very Jbest airline food. Haute cuisine? 

At 33,000 feet, ysfhat-etse could you call it? 
rtiil now. swissair + 




_ • * ' 




■~v'5!xs* 


atr* 


• vA.'i •< 'ilfH' :V V. : L. ' . -f' jri ^ jj j a 

: \ . ■z&a-V, 




mm 


f 


t. - 










M 


m 


.1 ' v r ;• 


■ - -MWA 


nm\ 

Kg* 


defence-dominated Urals indus- 
trial region told western bank- 
ers last month in what was 
meant to be a serious pitch for 
western investment “They can 
make everything except 
money.” 

In a self-interested attempt 
to help, a group of Russian 
entrepreneurs and bankers 
recently put together a consor- 
tium called the Russian Aero- 
space Corporation. Konstantin 
Borovoi, one of the organisers, 
says the aim is to match Rus- 
sian investment resources with 


promising opportunities in the 
defence and space industries^ 

In a renewed attempt to 
attract western capital to pre- 
viously top-secret reaches of 
Russian industry, Russia is 
presenting 14 investment pro- 
jects at the Central and East 
European Technology and 
Investment Exhibition at 
Earl's Court in London this 
week. 

Yuri Tichkov, the deputy 
atomic energy minister in 
charge of helping 1 part of the 
Russian nuclear weapons 
industry switch to peaceful 
purposes, will he heading the 
delegation. “We are trying 
openly to describe directions of 
corwersiya in this sensitive 
area,” he says. 

He believes that the projects, 
five of which are based in 
“closed cities" where nuclear 
weapons are made, are attrac- 
tive because of the high-quality 
workforce and technology 
available at the plants in ques- 
tion. 

The government is offering 
foreign investors a 50 per emit 
stake in joint ventures which it 
sees as important for creating 
jobs and restructuring industry 
to the needs of consumers. 
Using the big numbers of 
which Russian officials and 
old-style factory managers are 
fond, be says one project 
requires $100m to set up manu- 
facturing facilities for Ebre-op- 
tic cable on equipment 
designed at the closed city of 
Chelyabinsk-70. 

Other projects are aimed at 
producing special materials 
such as pure aluminium, sili- 
con and gallium arsenide for 
the electronics industry. At a 
plant in Tomsk-7, a closed city 
which was the site of a small 
nuclear accident last year, the 
aim is to make high-energy 
magnets instead of weapons- 
grade plutonium. 

Also on display in London is 
“Project Potato” - a pilot proj- 
ect launched with a US food 
processing company called 
Concord - to produce machin- 
ery to save Russia's potato har- 
vest foam going to waste by 
converting surplus potatoes 
into instant mashed-potato 
granules. 

A first example of successful 
car m ersiya in a dosed cUy la 
Krasnoyarsk-45, which last 
year set up production facili- 
ties to make 30m video-cas- 
settes and 25m audio-cassettes 
with some help from the Rus- 
sian government and from. 
BASF, the big German chemi- 
cal group. 

But recognising that Russian 
officials ami managers had so 
far done a poor job in attract- 
ing investors - “we are still 
lousy as market operators” - 
Tichkov hopes that the Rus- 
sian government wifi make the 
projects irresistible by attach- 
ing special tax breaks to them 
in a few months’ time. 

Acknowledging that many 
western companies were not 
interested in projects in which 
they could not have the con- 
trolling interest, he also said 
the government would let for- 
eigners have control if they 
offered “really good terms”. 

He shied at the question of 
why Russian investors had not 
already flocked to take advan- 
tage of the projects, saying 
their “mentality was geared 
towards shart-term profits”. 


Tapping in to 
third world 
telecoms 

The market is waiting to be 
exploited, says John Barham 

T he developing world world was being left behind 
is becoming a holy In the telecoms revolution 

grail for the global had no effect. Between 1983 


■ l 


T he developing world 
is becoming a holy 
grail for the global 
telecommunications 
industry. The potential of 
untapped markets in the 
poor but populous countries 
of the third world Is 
enormous. 

iwj<a alone has unsatisfied 
demand of at least 10m lines. 
Some countries such as 
Nepal or Burkina Faso have 
bought state-of-the art fibre 
and digital systems that rival 
those in the US and Europe- 
Economic liberalisation 
is sweeping the developing 
world, tearing dawn the 
regulations and trade 
barriers that once kept 
multinationals out. In many 
countries the cost of 
inefficiency and corruption 
is becoming too heavy to 
bear, and governments 
cannot afford to upgrade 
networks alone. 

New lines installed by 
state companies to Africa, 
for example, cost 16,200 
(£4,300) on average, 
according to the 
International 

Telecommunications Union. 
In Latin America, the figure 
is $2300, although 
privatisation baa lowered 
this figure in some countries. 
But a multinational can 
install a new line for less 
than $1,000. 

Ministers take 
liberalisation seriously 
because the link between 
telecommunications and 
development has become 
incontrovertible; the better 
a country’s 
telecommunications 
network, the wealthier It is 
likely to be. This single 
theme dominated a recent 
Buenos Aires conference 
organised by the ITU and 
sponsored by the United 
Nations. 

It was the ITU's first 
conference aimed at the 
needs of the developing 
world. Seminars drove home 
the lesson to industry 
executives and ministry 
officials that prtvat&sector 
participation and 
liberalisation are the only 
way poor countries can 
modernise and expand 
telecommunications. 

This is easier said than 
done. Edward Salta, Ghana’s 
transport and 
communication minister, 
agrees the era of 
state-controlled 
telecommunications is over, 
but says: 

“Telecommunications are 
national assets. Are we going 
to allow u nr estric te d entry?” 

Previous warnings by the 
ITU that the developing 


world was being left behind 
in the telecoms revolution 
had no effect. Between 1983 
and 1992, telephone lines per 
head in the industrialised 
world rose by 10 per cent. 

But the rise in the rest of 
the world was only 1.4 per 
cent. The ITU says glob®! 
telecommunications swvtce 
and equipment sales last 
year rose by 8 per cent to 
$535bn, but threequartert 
of this was spent In the 
developed world. 

While heavy investment 
in telecoms will not atone 
spur economic growth, 
privatisation and 
liberalisation have had 
positive results. Latin 
America Is in the forefront 
erf telecommunications 
privatisation. Argentina, 
Chile, Mexico, Peru and 
Venezuela have all privatised 
their networks. 

Only Brazil seems to have 
no tune for liberalisation. 
Brigadier Adyr da Silva, 
president of the Telebras 
state telecommunications 
company, says; “Brazil, in 
terms of plant. Investment 
and technology, is in the Brat 
world. If 

(telecommunications] are 
such a good deal for us, why 
should we give it to the 
Americans? There is an 
immense campaign going . 
on. Everyone is trying to 
force their way into [foreign] 
markets. Those who are hi 
are fighting to keep the 
others out” 

The introduction of - 
technologies such as cellular j 
telephony, digital systems J 
and data networks passed ; :J 
the poorest countries by in ■•..-a 
the 19806. But the (Mart of -j 
some new technologies could l 
depend on demand in third 1 
world markets. J 

Inmarsat, the international j 
communications satellite .i 
organisation, already has - ..id 
briefcase telephone systems =4 
that can provide lowneost S 
satellite phone services for 5 
every village In apobr . 
country. It says the future 1 
of mobile satellite 
communications wifi depend^ 
to a large extent on take-up ^ 
in poor countries. .j 

fo afarch, i t successfully • ^ 
tested a cellphone-sized v 
handset that transmitted a 
taped Wilbur Smith novel 
to one of its 
satellites. 

However, it admits this : 
system teat least four years . 
from becoming commercially 
operational and wifi require 
a new generation of 
satellites. US companies such 
as Motorola, AT&T and 
Microsoft plan to introduce -•* 
similar technologies. 


INTERESTED IN THE 
DANISH FINANCIAL MARKET ? 

2*- 

CONTACT THE 
BANK THAT MAKES IT! 


GtroBank’s very strong market position in 
Denmark, combined wrttn a wide Inter na tional 
network, makes us your Ideal partner In me 
Danisti money market 

GiroBank is also a marketmaher In most Danish 
products. IncL equates, bands and foreign 
exchange. Wa are both a martetmr*er and a 
marhetfeader In Danisft Bond Repos offering 
continuous price quotation. 

GkoBank was established in 1991 when the 
7Qyaar-«id Postgro was converted fans a bank. 

tha Danish government stiff owns 49% of 
SiroBar*. 

GiroBank is listed on the Copenhagen Stock 
Exchange and holds posWor as the fourth 

largest bank In Denmak. 



D|-; 


4 

iQf GiroBank 


GiroBank A/S 

Gkostroeget l 

DK- 0800 Copenhagen 

THephone +45 43 58 20 61 Stfft: GIGOOKKK. 

Reutefdeaflng: GIRO, Indeap^e GH3A 









FINANCIAL TIMES TUESDAY MAY 10 1994 


l g in ~t 0 

World 


ARTS 


<*-"n ^ 

1 ‘""li* l,v 5 

«>:: .'/ 

Su 

,fl - Ml 

|Vrt|, nc!o 

*»! .. ... V 1 ■* , i* l - , ii(ft 

,. 1,1 th>- ' 

u 111 

hS*«:: '■ n " ! ->1 dd> 

fin^ ' “ t ' r ' w Hi. 
■‘■*d 

Viiu . 7 1,n 

‘•fin.., '" (,,ri ^ 

t-itilr M,.,' 

Xca. 

Jlu-j -i.su. " lprUa tB? 

U-;:;; . ., Urjii » 

.V-.J 

* . ... .. ' ‘'wihfc 


tu'-n ^ 

'J«- u... •«. 

*nv- i. • 
’**•:« • .!■ 
|M* I . .... 

• : ;.T , 

r: i * 


jj. 

■■ 1 l;ir a* 

n •.« i.v 
1 1!- *' 5 :■ <*. 

' jr: ;iii^ 

ls:n ^if 
|i, irT 
will-® u 
•• k-.ijrtfy 


'■s*' . 


• •• 

i • • • ”'i* *ler 

. -.t- • ■ .i t .. ;i-«r 


* .il it-i« 
■ <:l l. Vv 


. > . mi*: 

y- 'C 


Committed to reality 
rather than concepts 

F ive Protagonists is a some- then, and retain now, their commit* that it is precisely because its heroes 
what portentous title for meat, drawn from Coldstream, to the were never protagonists at all tha 
what is, in the event, a direct response to the visible world, they suffer their present compare 
long-overdue and salutary Since then they have gone their tive neglect. Successful they may b< 
exercise in critical rehabfl- several wavs: Aitchison withdrawing in the urivate and local market, bu 


F ive Protagonists is a some- 
what portentous title for 
what is, in the event, a 
long-overdue and salutary 
exercise in critical rehabil- 
itation. Indeed, modest in scale 
though not in scope, it offers a gen- 
tle and timely rebuke to our curato- 
rial masters for their enduring 
neglect of so many of our most dis- 
tinguished artists, for no greater a 
crime than their failure to toe the 
official avant-garde line. 

Here Is a show by its very nature 
more appropriate to a public institu- 
tion than a private commercial gal- 
lery: and here are painters at least 
as serious in their address and 
rewarding in their accomplishment 
as any post-modern, neo-dada, car- 
cass-celebrating conceptuahst, still 
wet behind the ears. And would 
Euan Uglow ever be offered the Brit- 
ish Pavilion at a Venice Biennale 
ahead of. shall we say, an Antony 
Gormley, or Patrick George be given 
a first retrospective at the Tate in 
place of Richard Hamilton's third, or 
Myles Murphy be asked to choose a 
show at the Serpentine instead of 
Damien Hirst? No comment. 

But Protagonist! Here perhaps lies 
the problem. The Shorter Oxford 
Dictionary gives protagonist first as 
“the chief personage in a drama; the 
principal character . . . etc”: its sec- 
ond, and more indefinite, moaning 
as “a leading personage in any con- 
test; a champion of any cause.” And 
here we have these five painters, aQ 
of whom were taught one way or 
another by William Coldstream - 
Patrick George and Anthony Eyton 
at Camberwell just after the war, 
Euan Uglow, Myles Murphy and 
Craigie Aitchison at the Slade in the 
early 1350s. All were friends, united 
by shared houses and common inter- 
ests. Above all they maintained 


then, and retain now, their commit- 
ment, drawn from Coldstream, to the 
direct response to the visible world. 

Since then they have gone their 
several ways; Aitchison withdrawing 
into a private and idiosyncratic sym- 
bolism; Eyton moving towards a 
more directly gestural and expres- 
sive response; George developing a 
delicately measured impressionism; 
Murphy reconciling the monumental 
and descriptive to the painted 
flatness of the canvas; and Uglow 
ever measuring and looking, and 
measuring, looking again with pre- 
ternatural precision. It is erne of the 
delights of the show that we may 

William Packer 
reviews five fine 
artists who have 
shunned the conceits 
of the avant-garde 


follow such individual development 
by the erempies sho wn, early, mid- 
dle and late. 

But where is the drama of which 
even one of them should be chief 
personage, where the contest, where 
the common cause to champion? The 
short answer is that there never was 
one, and each artist was only ever 
the chief actor in his own play. 
Would their story have been differ- 
ent had they made common cause, 
issued manifestos, proselytised and 
campaigned - In short persuaded the 
powers that be they were a force to 
reckon with and take seriously? The 
Young post-art-school Turks of today 
hardly "pad the telling The uncon- 
scious irony of Five Protagonists is 


that it is precisely because its heroes 
were never protagonists at all that 
they suffer their present compara- 
tive neglect. Successful they may be 
in the private and local market, but 
on the scale of international critical 
values they scarcely register at alL 
Better after all to have been hung 
together than to hang alone. 

And yet an artist such as Euan 
Uglow remains what he has mani- 
festly been these 20 years, and 
always was in prospect, one of the 
best and most interesting artists of 
his time. His painting s fralfp on the 
ambition not of current notoriety or 
fad, but rather of the great humanist 
tradition in western art of which he 
and his kind represent the enduring 
vigour. His work is important and, 
forgive the jargon, relevant to us 
now, not because it proposes some 
trivial conceit or intellectual by- 
play, not because it is about fashion- 
able ideas of process or identity, not 
because it is about anything, but 
only because it is what it Is, as it is 
achieved on the canvas. Here is the 
human figure, scrutinised long and 
hard in its physical reality, for us to 
contemplate in our turn, in the light 
of oar own experience of the world. 

What may be said of Uglow may 
said as well for George, Murphy and 
the rest of them - and they are not 
alone. In the generation at least of 
artists now over 50, who had the 
hick to train before the study of the 
figure was abandoned for the study 
of ideas and concepts, there are any 
number of truly serious, figurative, 
modern painters, more and of a 
higher quality perhaps than any- 
where else in the world. The only 
scandal is that we do not celebrate 

than as We should 

Five Protagonists: Browse & Darby, 
19 Cork Street Wl, until May 21. 



'Girl Against the Light 1 , 1974, by Myles Murphy 


:„ll ,,i 

-i'rtihfe 
• .■ vui^ 

•• ■•'••• ?iwt 
. . i.s- : rn-% bi b 
■ • i 

■ !. ■.■in-ii-nvn: 

•: T.‘.r tat 


' • . .. n . j\ to 



Theatre/Alastair Macaulay 

Business abounds 
in ‘The Rivals’ 


Fringe theatre/David Murray 

Darwin's Flood 


G hichester has launched its 
season with a robust, 
energetic, and strongly-cast 
production of Sheridan's 1775 
classic. The Rivals. It has been too long 
since En gland had a major acco un t of 
this play - few of us have semi it since 
Peter Wood’s illustrious 1383 National 
Theatre staging (with Geraldine 
McEwan, Michael Hordern, Fiona Shaw, 
Edward Petherbridge, Tim Curry) - and 
everything about it delights the 
Chichester audience. So much so that 1 
hardly like to add that this production 
is over-busy and, in several respects, 
vulgar. 

Mrs Malaprop, the play's most 
celebrated character, is affected, so 
Patricia Rontledge plays her as an 
18 th-century version of her own famous 
TV role. Hyacinth Bucket But the main 
joke about Mrs Malaprop is that she is 
i n tellectually affected. Yes, she muddles 
her words, but both the words she 
means and those she says reveal that 
she is trying to be clever. 

Rontledge, though she brings the role 
an appealing energy, plays it as a silly 
old harridan. An undisciplined 
performance, marked by exaggerated 
facial reactions and an excessive range 
of vocal effects. And disappointing: 
Rontledge has often been a most stylish 
comedienne. 

What a relief to turn from her 
to Timothy West, who plays the 
explosive Sir Anthony Absolute with 
perfect economy. Self-contradiction 
is the keynote of The Rivals’s main 
characters; and it is West who 
catches this best, ftoiously attacking 
his calm son for displaying fUry, 
stonily nosing out his son Jack's tricks 




Patricia Routledge plays Mrs Malaprop as an 18th 
century version of her TV role. Hyacinth Backet 


and stratagems. When Jack's efforts to 
woo Lydia I .anguish as two different 
suitors are being uncovered, it is West’s 
way of barking out (stock still) “Who 
the devil are yon?" to his son that 
provides -the evening's great comic - 
pay-off. 

Abigail Cruttenden brings to the 
pettish, proto-romantic Lydia languish 
just the right hothouse over-cultivation. 
She has porcelain prettiness, an 
absurd (school of Sara Crowe) laugh, 
and all the necessary spoilt charm, 
so that you laugh at her without 
taking against her. Emily Raymond, 
however, as her cousin Julia, the 
play's most rational and touching role, 
is a lovely bore who loses one's 
attention daring her every extended 
speech. Adam Goldley is a lightweight, 
puppyish Faulkland; the role’s 
ludicrous Romantic agony has little 
force. As Jack, James Simmons has 
mischief and virility nicely 
compounded. 

The director is Richard Cottrell, 
who paces everything with a welcome 
briskness. But he has allowed, or 
encouraged, several actors to overdo 
things. Characters keep pacing four 
yards away (torn each other amid 
intimate conversations for no good 
psychological reason. Lucy l Caroline 
Holdaway) nods her head rapidly 
whenever she is listening. The music, 
by Mark Warman, Is not only cheaply 
scored, but is introduced, distractingly, 
to underline certain big speeches, as If 
in a movie. Business, in the most literal 
6ense, abounds. 

In repertory at the Chichester Festival 
Theatre, xmtQ June 23 


S noo Wilson’s comedies - far- 
fetched, scatty-intellectual, 
black and often scabrous — ran 
hardly be an “acquired taste", 
for one cannot imagine anybody 
acquiring it Either you find that you 
already had it, very possibly to your 
surprise and embarrassment; or you sit 
there stony-faced; or you veer queasily 
this way and that The press-night 
audience for Darwin’s Flood at the 
Bush represented the entire spectrum. 
A few people, perhaps scandalised, did 
nothing but wince; some others 
flinched and guffawed; still others - a 
few at a time, never quite the same few 
- went into sudden spasms of uncon- 
trolled hilarity. 

No critic could tell you where you 
might fit (J laughed a lot). Here are 
the premises: - we are in Sir Charles 
Darwin’s retirement home on the 
Downs, soon to be i nun d at e d by the 
second Great Flood. The year being 
1885, Sir Charles is already dead, bat he 
carries on bravely (in the person of 
John Kane, disarmingly a-tremble with 
scientific detachment and decent con- 
cern). though he doesn't want visitors. 

Visitors come nonetheless, welcomed 
by his lusty young widow Emma (Alex 
Kingston). First the philosopher 
Nietzsche, with his monstrous sister 
Elisabeth (Rosemary McHale. fault- 
lessly Teutonic and intense) and her 
husband (Paul Ben tall), who set out in 
1890 with 150 dogged Swabians to found 
a pure German colony in South Amer- 
ica. Nietzsche (Bob Goody) is already 
mad, speechless and virtually legless - 
Elisabeth wheels him in a barrow - but 
since they are time-travelling back- 
wards there is hope of a retroactive 
recovery. She wants to verify the agree- 
ment of Darwinianism with her broth- 
er's will-to-power, devil-take-tbe-loser 
philosophy before pressing on to Para- 
guay. 


Concert 


Russian 
weight and 
brilliance 


T he stormwinds of 
Soviet change blew 
the Russian National 
Orchestra into being 
in 1990 - the first orchestra to 
be wholly separate from the 
state In Russia since 1917 - 
and already it sounds as sea- 
soned In style, as effortlessly 
well-balanced and accurate of 
ensemble as one of the great 
orchestras of the world. That 
is not so surprising since the 
players count among the coun- 
try’s best, many of them solo- 
ists in their own right, all 
ready to muster at the found- 
er-conductor Mikhail Pletnev's 
call, even if this meant aban- 
doning prestigious positions. 

Pletnev wanted to create an 
orchestra with the highest 
ideals and free from bureau- 
cratic imposition; one, you 
might say, that would restore 
Russian musicians to their 
purest native musicality, 
untainted by ideology. Once 
Gorbachev gained power, the 
dream became a possibility; 
and the combination of 
Tat’yana Snkhachcva's busi- 
ness skill and Pletnev's 
immense musical authority - 
he won the Gold Medal of the 
Moscow International Piano 
Competition when only 22 (In 
1978) - proved galvanising. 
Soon the new orchestra was 
travelling the world. Three 
years after playing Tchaikov- 
sky's Manfred Symphony In 
Moscow at its first concert the 
RNO was recording it for Deut- 
sche Grammophon. 

For its Festival Hall concert 
on Sunday night the orchestra 
offered Tchaikovsky and 
Weber and secured a large 
audience. Romeo and Juliet 
overture was a fine advertise- 
ment for their sound, which, 
like that of the best Russian 
orchestras, is a compound of 
weight and brilliance. The 
stormy passages for rushing 
string octaves and crashing 
chords had all the decisive 
Russian despatch you would 
expect and the lyrical music 
was mellowly, thoughtfully 
executed; but the true delight 
of the performance was per- 
haps the exact weighting of 
inner parts such as the roving 
thirds of the slow Introduction 
or the throbbing woodwind 
triplets - just sufficiently 
audible in their own right - at 
the glowingly expansive 
reprise of the lyrical tune. 

For all its quintessential 
Russian virtuosity, the orches- 
tra refrains from exaggera- 
tion, and such sensible musi- 
cality is made visible in 
Pletnev’s unshowy, hugely 
effectual platform manner. 
Wonderful pianist though he 
may be, he seems a natural as 
a conductor. In a brilliant and 
discreetly tongue-in-cheek per- 
formance of Weber's vapid 
KonzertsiUck in F minor he 
came before ns in both roles. 
In Tchaikovsky's fourth sym- 
phony he conclusively demon- 
strated that colour and archi- 
tecture are one. The recurrent 
fateful brass fanfare can 
rarely have sounded so blind- 
ingly brilliant, and thus as 
structurally effective, as this. 
And what cello resonance 
(near the close of the Andan- 
tino)! what flute agility (for 
the descants in the finale)! 
what violas! In the encore of a 
Dvof&k Slavonic Dance, the 
latter sounded every bit as 
sharply characterful, as needy, 
as the oboes they were playing 
with. 

Paul Driver 


Meanwhile Jesus Christ drops in, a 
chunky Ulsterman in biker’s Lycra 
(James Nesbitt) who performs the odd 
miracle between offstage sessions of 
prayer and comfort with Mrs Darwin; 
and then red-leathered Mary Magdalene 
(Barbara Barnes) with a mobile call- 
girl’s phone, who soon finds herself fla- 
gellating scra ggy old Nietzsche in cruci- 
fixion pose and loincloth, to his hungry 
satisfaction. Some viewers might find 
this in dubious taste. As one loopy epi- 
sode succeeds another. Robin Don’s 
witty set disgorges surprise after 
extravagant surprise, exceeding the lit- 
tle Bush arena’s limits beyond anything 
one might have imagined. 

Though it must plainly be admitted 
that Darwin’s Flood is a very very silly 
piece, its special kind of silliness is 
worth appreciating. Not silly-intellec- 
tuaL because Wilson never pretends to 
elevate the central idea - the validity of 
“social Darwinism", I suppose - into a 
Shavian debate; instead it keeps pranc- 
ing off into comical quicksand. Not sil- 
ly-facetious either (as the above sum- 
mary might suggest, like aimnst any 
summary of a Wilson play); because the 
undergraduate snook-cocking is just 
scaffolding for ins inspired flights of 
cogent, deadpan craziness for every 
character. 

They may not extend Ear - construc- 
tion is not a Wilson strength, and his 
second act falls short of the riotous 
climax of the first - but they keep 
coming, knitted neatly into the airy tex- 
ture and never far from the point. 
Stokes’s cast carry them off with 
unabashed bravado, abetted by Chahine 
Yavroyan’s hi-tech Ughting and Simon 
Whitehorn’s apocalyptic -Romantic 
sound as well as Dan's sensational 
designs. The morning after, you may 
find the details lost beyond recall but a 
delighted glow still lingering. Do not 
take a maiden aunt 


| International 

A 

R 

TS 

Gl 

JI 

T>F 





■ AMSTERDAM 

MuzMcttwater Tonight: Sankai Juku 
presents Yuragl. play by Japanese 
author Ushio Amagatsu. Thurs: 
ballet gala wftti Atessandra Ferri 
and JuDo Bocca. Fri, next Mon: 

Peter Schat’s new opera Symposion 
(020-625 5455) 

Concertgebouw Tonight Philippe 
Entremont conducts Netherlands 
Chamber Orchestra In works by 
Mozart, fbert and Safnt-Sasns, with 
piano soloist Stefan Vladar. Tonight 
(Kleine ZaaJ): Raphael Oleg, 
accompanied by Barry Douglas, 
plays violin sonatas by Grieg and 
Richard Strauss. Fit Jean Foumet 
conducts Rotterdam Philharmonic 
Orchestra in Beriioz, Saint-Saens, 
Debussy and Ibert, with piano 
soloist Jean-Yves Thibaudet Sun 
afternoon: Vassiii Sinaiski conducts 
Netherlands Philharmonic Orchestra 
in Debussy, Saint-Saens, Bart ok 
and Kodaiy, with cello soloist Janos 
Starker. Sun afternoon (Kleine Zaal): 
Kenneth Montgomery conducts 
concert performance of Walton's 
The Bear. Sun evening: Murray 
Perahia piano recital. Next Tues: 


Sergiu Celibidache conducts Munich 
Philharmonic (020-671 8345) 

Beurs van Beriage Tomorrow: 
Vassiii Sinaiski conducts 
Netherlands Philharmonic Orchestra 
in Debussy, Saint-Saens, Bartok 
and Kodaiy, with cello soloist Janoe 
Starker. Thurs, Fri, next Mon: Janos 
Starker masterclasses (020-627 
0466) ' 

■ ANTWERP 

de Vtoamse Opera Tonight, Thurs 
afternoon, Sat Stefan Soltesz 
conducts Willy Decker's production 
of BiUy Budd, with cast headed by 
Michael Kraus, Nigel Robson and 
Odon Saks. The production can 
also be seen in Ghent on May 20, 

22 and 27 (03-233 6685) 

■ BRUSSELS 

Montale Tonight Antonio Pappano 
conducts final performance of Willy 
Decker's production of Peter 
Grimes, with WUfiam Cochran, Susan 
Chilcctt and Gregory Yurisich. Sat, 
Sun (Palais des Beaux-Arts): Michael 
Gfelen conducts Schoenberg’s A 
Survivor from Warsaw and 
Beethoven's Ninth Symphony 
(02-218 1211) 

■ CHICAGO 

Orchestra HaH Tonight Daniel 
Barenboim conducts Chicago 
Symphony Orchestra in Boulez's 
Notations V-VHI, plus works by 
Beethoven and Bruckner. Tomorrow: 
Barenboim Is conductor and soloist 
in a programme including SHott 
Carter's new Partita and a Mozart 
Piano Concerto. Sun afternoon: 
Brigitte Engerer piano recital. Next 


Mon: Wolfgang SawalHsch conducts 
Philadelphia Orchestra (312-435 
6666) 

■ GENEVA 

Grand TMfldtre Tonight, Thurs, Sat, 
next Mon: Bruno Campanula 
conducts Robert Careen's 
production of I CapuJefi e I 
Montecchi, with cast headed by 
Laura Clsyoomb and Jennifer 
larmora Sun: Thomas Moser song 
recital (022-311 2311) 

TMfttra da Ca rouge Tonight fast 
night of new production of 
Corneille's Le Cid, directed by 
Simon Ena In designs by Ezio 
Frigerio and Franca Squardapino. 
Daly except Mon tBI June 7 
(022-343 4343) 

■ UTRECHT 
Vredenburg Tomorrow: Philippe 
Entremont conducts Netherlands 
Chamber Orchestra In works by 
Mozart, Ibert and Saint-Saens. Sat 
Vassal Sinaiski conducts 
Netherlands Philharmonic O rc h es tra 
in Debussy, Saint-Saens, Bartok 
and Kodaiy, with cello soloist Janos 
Starker. Sun: Relnbert de Leeuw 
conducts Schoenberg Ensemble 

In Schoenberg and KageL Next 
Mon: Jack Brace, Ginger Baker and 
Gary Moore (030-314544) 


■ VIENNA 

OPERA 

Staatsoper Tonight Prokofiev’s 
ballet Romeo and JuEet Tomorrow, 
Sun, next Wect Ptecido Domingo 
conducts John Dew’s new 
production of I Puritani, with Edita 


Graberova, Mario Giordani and 
Dmitri Hvorostovsky. Thurs: Cofin 
Davis conducts tdomeneo, with 
Siegfried Jerusalem and Anne Sofie 
von Otter. Frfc Kenneth MacMiHan's 
ballet Manon. Sat Die ZauberfkSte. 
Next Mon and Thurs: Der 
Rosenkavalier with Gwyneth Jones, 
Arme Sofie von Otter and Kurt Moll 
(51444 2955) 

Theater an der Wien Sat, next Mon 
and Wed: Thomas Hengelbrock 
conducts Achim Prayer’s Vienna 
Festival production of Iphig6nie en 
Tauride, with Carota Hfihn, Keith 
Lewis and Grno Quilico. May 26, 

28, 30: Abbado/MiBer production 
of Le nozze di Figaro (586 1676) 

CONCERTS . 

Musfkverein Tonight, tomorrow:. 
Claudio Abbado conducts Berlin 
Philharmonic Orchestra. Thurs: 
Martin Hasetbfick conducts Wiener 
Akademie in works by Mozart and 
Schubert Fri, Sat Vaclav Neumann 
conducts Vienna Symphony 
Orchestra in Beethoven, Berg and 
Bruckner, with soprano Edith Wiens. 
Sun morning, next Tues evening: 
Carlo Maria Giulrni conducts Vienna 
Philharmonic Orchestra in 
Beethoven. Sun evening: Simon 
Rattle conducts CBSO in Tippett 

and Bruckner. Mott. PhQippe 

Entremont conducts Vienna 
Chamber Orchestra In Mozart and 
Haydn, with piano soloist Stefan 
Vladar (505 8190} 

Konzerthaus Tonight: Jukka-Pekka 
Sarasta conducts Deutsche 
Kammerphaharmonie in works by 
Sandstrom, Handel and Brahms. 
Tonight (Mozart Saaf): Angel Romero 
guitar recital (712 1211) 
Mnorttenldrche Tonight Dvorak 
opera concert by soloists 


from Bratislava (985 5252) 

THEATRE 

A new production of Goethe’s 
Torquato Tasso, directed by Cesare 
Lievi, has just opened at 
Akademletheater (51444 2959). 
Repertory at Burgiheater indudes 
Claus Peym arm's production of 
Ibsen's Peer Gynt and 
Hofmannsthal's Der Schwterige 
(51444 2959). There Is a final 
performance tonight at Theater an 
der Wien of Shakespeare’s Antony 
and Cleopatra, directed by Peter 
Zadek (586 1676) 

■ WASHINGTON 

DANCE 

• Washington Ballet is in 
residence at the Kennedy Center's 
Terrace Theater from tomorrow till 
Sun, with a programme fodudkng 
a Graham Lustig world premiere 
and choreographies by Ghoo-San 
Goh and Monica Levy. May 17-22: 
San Francisco Ballet (202-467 4600) 

• Mikhail Baryshnikov's White 
Oak Dance Porject is in residence 
at Warner Theater from May 18 to 
21 (202-432-seat) 

MUSIC 

• Christoph Eschenbach is 
conductor and piano soloist with 
National Symphony Orchestra 
tonight at Kennedy Center Concert 
HaS, bi a programme of Beethoven 
and Tchaikovsky. Thurs, Fri 
afternoon. Sat next Tues: James 
DePrfest conducts Beethoven 
programme with piano soloist 
Awadagin Pratt. Sat afternoon: 

Daniel Barenboim conducts Chicago 
Symphony Orchestra (202-467 4600) 

• Sergiu Commlsstona conducts 
Baltimore Symphony Orchestra on 
Thurs, Fri and Sat at Baltimore’s 


Joseph Meyerhoff Symphony HaH, 
in a programme including Haydn’s 
Trumpet Concerto (Hakan 
Hardenberger) and Debussy’s La 
Mer (410-783 8000) 

• fvo Pogorellch gives a piano 
recital on Fri at George Mason 
Center for the Arts (703-993 8886) 
THEATRE 

• The Winter's Tate: Britain’s 
Royal Shakespeare Company Is 

in residence at Eisenhower Theater 
till May 22 (202-467 4600) 

• The Misanthrope: Moitere’s 
comedy is transposed to Hollywood 
in tills production at Roundhouse 
Theater, opening on Sat (301-933 
1644) 

• Wings: a new musical by Jeffrey 
Lundan and Arthur Perlman, based 
on a play by Arthur Kopitt Opens 
tonight at Signature Theater 
(703-820 9771) 

• The Baltimore Waltz: the 1992 
Obie Award winner by Paula Vogel 
takes us on a grand tour of Europe 
with an ailing man and Ms 
resourceful sister. Opens to mo now 
at Studio Theater (202-332 3300) 

• Ghosts: Ibsen’s play about 
social and religious hypocrisy. TUI 
June 5 at Center Stage (410-685 
3200) 

■ ZURICH 

Opemhaus Tomorrow, Sun, next 
Wed: Lamberto Gardelli conducts 
Andrei Serban’s new production 
of Adriaia Lecouvraur, with Mara 
Zampieri and Nall Shicoff. Thurs, 

Sat Nikolaus Harnoncourt conducts 
Fidel io with Gabriela Benackova 
and Peter Seiffert Fri, Sun 
afternoon: choreographies by 
Bienert, Ek and Van Marten (pi-262 
0909) 


ARTS GUIDE 

Monday; Berlin, New York and 
Paris. 

Tuesday: Austria, Belgium, 
Netherlands, Switzerland, Chi- 
cago, Washington. 
Wednesday: France, Ger- 
many. Scandinavia. 

Thursday: Italy, Spain, Athens, 
London, Prague. 

Friday: Exhibitions Guide. 

European Cable and 
Satellite Business TV 

(Central European Time) 

MONDAY TO FRIDAY 
NBC/Super Channel: FT Busi- 
ness Today 1330; FT Business 
Tonight 1730, 2230 

MONDAY 

NBC/Super Channel: FT 
Reports 1230. 

TUESDAY 

Euronews: FT Reports 0745, 
1315. 1545. 1815. 2345 

WEDNESDAY 

NBC/Super Channel: FT 
Reports 1230 

FRIDAY 

NBC/Super Channel: FT 
Reports 1230 

Sky News: FT Reports 0230. 
2030 

SUNDAY 

NBC/Super Channel: FT 
Reports 2230 

Sky News: FT Reports 0430. 
1730; 





10 






Sa 

All 

bus 

Mo 

Re* 

•can 

Fin 

Mo 

Rq 

Enj 

intc 

Hci 


Mu 

else 

use 

asi 

ad> 

Th< 
is a 
toe 


Fhu 

pro* 

Izve 

Fttbto 

Numl 


RE 


rtm 

FTC 

Ctml 

S*s 

EAtt 


NA 

CO 

AO 


PO 

On*' 

R 


PAY 


□ 

a 

Cud 


c 


Ca 

SK 

Corai 


»«■»* 

>Tbb 


E ast Germany’s city 
councils have had 
enough. For three 
years, they have 
watched large west German 
retailers invade the east, set- 
ting up furniture, home 
improvement and liquor stores 
in out-of-town outlets which 
occupy vast tracts of land 
miles from the urban streets 
full of cranes used in building 
refurbishment 

It was a golden opportunity 
to escape the rigid west Ger- 
man planning system. Depart- 
ment stores and city retailers, 
supported by Germany’s Asso- 
ciation of Retailers, as well as 
a battery of planning legisla- 
tion and the city councils, 
made it virtually impossible to 
build on “greenfield" sites. 
These are out-of-town develop- 
ments on unused land which 
are often subject to strict envi- 
ronmental controls. 

“The entire retailing sector 
is under-developed in west Ger- 
many,” said Mr Guy Barker 
from Knight Frank Immobilien 
Consulting in Dusseldorf. 

East Germany offered scope 
for expansion. Before unifica- 
tion in 1990, retailing in the 
east had been monopolised by 
the Konsumgenossenschaft co- 
operatives, comprising super- 
markets and small shops; and 
the Handelsorganisation, the 
state-run department stores. 
Compared to west Germany, 
which has maintained a level 
of 1-12 square metres of retail 
space per person for several 
years, there were only 0.3 sq m 
per person In east Germany 
before 1989. 

Once the unification treaty 
was signed, west German 
retailers rushed in. But, unlike 
in the west, they found city 
centre sites unsuitable for 
development - many were too 
expensive, and many were sub- 
ject to labyrinthine property 
claims stretching back 
decades. 

So they snapped up plentiful 
rural sites which had invest- 
ment incentives in the form of 
tax writeoffs and state grants 
of up to 50 per cent The 
result? “The expansion has 
been quite incredible," said Mr 
Hubert us Tessar from Ger- 
many's Association of Retail- 
ers, who reckons there are now 
3 sq m of retailing per person 
in east Germany. 

The retailers had hungry 
customers. East Germans dem- 
onstrated an insatiable 
demand for consumer goods, 
especially for home improve- 
ment i tems Mr Tessar said 
turnover in east German retail- 
ing last year totalled about 
DM120bn. compared with about 
DMSSbn in 1992. For instance, 
Hombach, the do-it-yourself 


Courting the 
customer 


Judy Dempsey says city centres 
in east Germany are fighting 
back to attract western retailers 



Ton ft 


East Germans have an insatiable demand for con su mer goods 


west German chain store, this 
year expects its four outlets in 
east Germany to account for a 
quarto: of its total turnover, 
which last year was DM750m. 

However, Mr Tessar expects 
only 1 per cent retailing 
growth this year largely 
because the attraction of 
greenfield sites may be dimin- 
ishing. There are three rea- 
sons. The city councils are 
beginning to adopt a strategy 
aimed at correcting the imbal- 
ance between 

retailing out- 
side city cen- 
tres and in 
cities. The cur- 
rent ratio is 
about 85:15, 
unlike in west 
Germany where 
it is about 50-.50. 

Berlin and the surrounding 
state of Brandenburg, for 
example, have already adopted 
strict planning regulations for 
anybody wanting to develop 
retailing outlets on greenfield 
sites. Leipzig, in the southern 
state of Saxony, h as followed 
suit and may try to block plan- 
ning permission for Tima , the 
Swedish furniture store, to 
build a plant in the region. 

City councils are not primar- 
ily interested in the consumer. 


‘There’s no 
doubt that the 
giant retailing 
outlets are here 
to stay 1 


however. Rather, they want to 
recoup lost tax from the retail- 
ing sector. 

Under current legislation, 
tax on a percentage of stores’ 
turnover goes to the local 
councils on whose land the 
shops are located. For example, 
the small local council of 
Gttathersdort, west of Leipzig, 
which has a population of 650, 
can expect to flourish hum the 
revenue derived from from the 
100,000 sq m Saale Park shop- 
ping complex 
which is expec- 
ted to achieve a 
turnover of 
DM850m next 
year. Mr Ralph 
Kausch, a 
retailing expert 
at Leipzig's 
■■“ —l Chamber of 
Commerce, reckons that the 
city of Leipzig is substantial 
losing tax income from an esti- 
mated annual DM90 0m turn- 
over by retailers on greenfield 
sites. 

“A struggle is taking place 
between the city government 
and local councils. That strag- 
gle is about how to win back 
consumers to the inne r cities," 
he said recently. 

Pressure on out-of-town 
retailers is building from 


another quarter. As property 
disputes are resolved in city 
centres, so more buildings will 
become available. Mr Barker of 
Immobilien Consulting 
believes department stores and 
small supermarkets geared 
towards convenience shopping, 
are poised to take on the giant 
retailers. 

Finally, the retailers in 
greenfield sites confront eco- 
nomic problems that are a 
long-term result of unification. 
Although the east German 
economy Is expected to grow 
about 7 per cent this year - 
after a fall in gross domestic 
product of about 30 per cent 
between 1991 and 1992 - con- 
sumer spending is slowing 
down as more east Germans 
save to provide a cushion 
against potential unemploy- 
ment. Some retailing experts 
believe that as shops in city 
centres improve, consumers 
will reduce their out-of-town 
expeditions. 

The cities, however, have 
some way to go to make shop- 
ping in the centre attractive. 
There is a dearth of parking 
facilities, and entering most 
city centres Is like negotiating 
the gateway to a fortress. 
Roads are blocked by bulldoz- 
ers being used to modernise 

thp i nfrastnirlnm. 

More crucially, in their 
attempt to fight hark , east Ger- 
man cities may be starting to 
adopt the outmoded practices 
of west German retailers. For 
example, instead of introduc- 
ing more flexibility, restrictive 
shopping hours are being intro- 
duced; and instead of a compet- 
itive pricing policy, many 
stores are accepting the 
Rabattgetesz. a law dating 
back to 1933 which prevents 
retailers lowering their prices 
by more than 3 per cent except 
at designated sales times. 

"Us all very well the cities 
trying to compete with the 
greenfield sites, but perhaps 
they could start thinking about 
the consumer for a change 
said Mr Barker. 


Until they do, any resur- 
gence in dty centre shopping 
will get off to a slow start Con- 
sumers have acquired a taste 
for choice in products and a 
range of services which dries 
are struggling to fulfil. Mr Cy 
Schluter, a Frankfurt-based 
retailing expert, said: "That 
was the great thing about the 
initial expansion of the green- 
field sites in eastern Germany. 
Retailers tried to break the 
old-fashioned pattern of the 
west German p lanning system. 
Even if the cities in east Ger- 
many fight hack, there’s no 
doubt that the giant retailing 
outlets are here to stay." 


I’d travelled on other airlines, 
and Fit •W'V enjoy it. 



; r q'.n Atl° nt ie 






I i » 


' T X>° ' 


■ fiKaasm ssiaacmamaef 


JMW 



FINANCIAL TIMES TUESDAY MAY ZO iOQ.< 


Joe Rogaly 


The right question time 



Yes. there 
should be a ref- 
erendum on 
Europe. It 
could be held 
in 1937, if in 
the preceding 
year the Euro- 
pean Union 
acquires central control over 
its member states. Alterna- 
tively, it might come on a 
hypothetical date in the wild 
blue yonder - say the day 
before a British government 
concludes that storting should 
be melted down into a single 
pan-European currency, if 
there is one. There is no princi- 
pled case for a poll now, and 
even less for a ballot in which 
the question would be, as Mr 
William Cash puts it, "Do you 
want a federal Europe?" That 
would be as sensible a barome- 
ter of opinion as "Should we 
eat the firstborn?” 

A quickie summer referen- 
dum whose purpose was to 
save the Conservative party 
would be pointless. No consti- 
tutional precept would justify 
it Beyond possibly buying a 
little time, it would not save 
the Tories. It is true that the 
than Harold Wilson achieved a 
(temporary) ceasefire in the 
Labour party by calling a plebi- 
scite cm Britain’s membership 
of the "common market” in 
1975. bat four years later a 
sorely divided Labour govern- 
ment was out of office. It has 
not been bade since. 

Mr John Major may be 
tempted to try his luck, but he 
will be aware that any give on 
a referendum today might legi- 
timise the already open Eaction 
fi ghting in his cabinet Suppos- 
edly disciplined ministers 
thump their own tubs quite 
emmgh already. Heaven help 
the Tories if they are freed to 
answer questions cm the single 
currency. The riposte canvass- 
ers axe meeting on the door- 
steps - “which Conservative 
party are you from?" - would 
became universal 
Yet there is a practical case 


for promising a plebiscite in 
certain circumstances- Promis- 
ing because nothing is about to 
ha pp en this year or next Such 
a long-tern undertaking would 
be of limited value, since no 
party leader can bind his or 
her successor. Against that 

statements by leaders can act 
as markers. 

The Conservatives should 
say, and mean it that a com- 
mitment to hold a referendum 
on n» ng th«>ning the EU will 
be in the next general election 
manife sto. They should do this 
on principle, not expediency. 

Such a strategy would be 
forced on them anyhow, if 
substantive, centralising, con- 
stitutional changes were 
agreed at the intergovernmen- 
tal conference “ 

of 1996 - or, as There is no 

Mr Norman 


pan- European rules for this 
and that After the 1996 confer- 
ence, it could become an 
embryonic super-state, the 
stuff of English nightmares 
and continental fantasies. 

As Mr Paddy Ashdown has 
pin, that would be the time to 
consult the people. In such a 
circumstance, as Mr Ashdown 
has not ^><d, a general election 
would be an insufficient 
method of gauging the popular 
verdict since the character of 
the EU would he permanently 
altered. There is no problem 
about what question should be 
qskpd. The leader of the Lib- 
eral Democrats has this one 
right. The entire package 
agreed by the member states 
should be put before the pub- 
tic. “Do you 
accept it?" they 
would be asked. 


ELm" getting away from 
mates, if it. Important whBn a chang * 
constitutional 
proposals should 
be submitted 
to the voters 
for a decision 


Britain's mone- 
tary policy was 
about to be con- 
trolled by a 
European cen- 
tral bank. 

An unconsulted 
public could 
not be expected 
to support the government in 
either endeavour. 

There is no getting away 
from this. Important constitu- 
tional proposals should be sub- 
mitted to the votes for a deci- 
sion. The establishment of the 
European Union on the basis of 
the Maastricht treaty was 
endorsed by the general elec- 
tion of April 1992. That was 
tfuan Next time might be dif- 
ferent. Suppose that in 1996 the 
EU crosses the ling laid down 
by its nation states, and 
acquires self-sustaining sover- 
eign powers. That would be a 
huge alteration in the way in 
which people are governed. As 
presently set up, even after 
Maastricht, the EU is a conge- 
ries of states, in constant 
debate about an almost infini te 
series of treaties and sub-trea- 


is significant 
e nou gh to war- 
rant mass con- 
sultation, the 
question usu- 
ally sets itself. 
Should Scot- 
land have its 
own parlia- 
ment? Should the first-past-the- 
post system of voting be 
nhang gd? If so, to what? Should 
Maastricht II be enacted? 

This last proposition is 
acknowledged by passionate 
British advocates of a federal 
Europe, such as the European 
Movement You will appreciate 
the flavour of the EM if you 
reflect on the choice of Sir 
Edward Heath to deliver the 
keynote address at its weekend 
“rally for European democ- 
racy". The meeting was called 
to debate a text for British 
Europhiles, published last 
week under the title “Reform 
of the European Union". 

We may rest assured that Mr 
Major will not take up this 
package. He will be aware that 
the EM'S proposals could only 
be put forward by a Conserva- 


ties, ever trying to agree on tive prime minis ter on his last 


day In office. There is nonea) 
to go into detail Just note tS 
the movement would sbS 
then the European ParBaw 
and place the administrate 
justice, as well as foreign and 
security policy, under tie cen. 
tral control of an evolvhg 
si-state. Whoa there. Jnsfe. 
and security are the sapa™! 
"pillars' 1 for which MrUjfa 

fought so hard at Maastricht 

On one point, however, 
EM might find all rides fe 
agreement It proposes that fl* 
new constitution should m 
come into force until It w 
been approved ... “in refold* 
to be held simultaneoatij 

throughout the Union". Ask 
says, "such a constitute 
requires a large consensus 
among the ri tiraB s, as will a 
very thorough preparation far 
its drafters". The EM dog u# 
believe this wfil be achieved to 
1996, so we can assume ffaatks 
proposed referenda might ng 
take place much before the 
dose of the century. 

This prolonged timetabb has 
been used as camouflage by Ur 

John Smith, the Labour hate, 
as it has been by mi&iqten 
who seek cover while the Bak 
files all around them. Scarred, 
perhaps, by bis experience of 
the Scottish referendum of 

March 1979, Mr Smith has been 
consistently against a Maas- 
tricht ballot "Normally deci- 
sions are taken by Parlia- 
ment” he said yesterday. "Bat 
this is a decision that is so Ear 
ahead that we can consider all 
these matters carefoUy nntfc 
nearer the time." Translated, 
that means: "Pm still kmpbg 
my mouth shut, and watering 
the Tories destroy them- 
selves.” Some Conservatives 
admire this Trappist strategy 
but the voters may not rewad 
him for it Mr Smith has prof 
fered a referendum an propor- 
tional representation, to Iraqi 
his party together. He should 
think about promising one on 
a centralised Europe, trash 
gle currency. Why? Because it 
would be right 


LETTERS TO THE EDITOR 


Number One Southwark Bridge, London SE1 9HL 

Fax 071 873 5938. Letters transmitted should be dearly typed and not hand written. Please set fox for finest resolution 


Three-point 
solution to 


Turkey’s ills 


Prom Professor S. Theofomdes. 

Sir. There is a pragmatic 
solution to Turkey's economic 
problems (“No defight at Turk- 
ish central bank plan", April 
28): 

L Reduction of the unproduc- 
tive military expenditure to 1 
per cent of gross national prod- 
uct - the level of nearly all 
countries. This will be the best 
therapy for budget deficits and 
chronic inflation. The reallocar 
tfon of resources for productive 
uses will speed up growth - 
another important national 
goal 

2. Withdrawal of Turkish mili- 
tary forces from Cyprus follow- 
ing the United Nations plan. 
This will give Greece the green 
light for freeing EU funds to 
Turkey which are needed far 
the external economic stability 
of the country. 

3. Offer complete autonomy to 
the Kurds in the framework of 
a federal organisation follow- 
ing the Treaty of S&vres (1920). 
This will promote domestic 
and international stability - a 
necessary condition for prog- 
ress. 

Athenian. Lysistrata. could 
teach Mrs Tansu (filler, Tur- 
key’s prime minister, it is bet- 
ter to make love and not war. 
S. Theafanides, 

Pantedon Ordoersity, 

Athens 176 7U Greece 


Short- termism a political fault 


From Mr Philip Turner. 

Sir, A future Labour govern- 
ment "would seek to reform 
companies law to counter the 
culture of City short-termism 
which the party believes is 
harming industry”, according 
to David Owen’s article, 
"Labour vows to combat City 
'short-termism’" (May 3). 

The Conservatives, too, it 
seems, have identified “short- 
termism” in the City as a 
weakness. 

Is this not a case of the pot 
calling the kettle black? All too 
often, politicians’ horizons 
seem to be limited to the next 
election. Expenditure commit- 
ments made to court 


short-term popularity lead to 
an excessive tax burden in the 
future. Cheese paring today to 
keep the expenditure numbers 
down only results in higher 
spaiding later. 

What is seen as short-ter- 
mism by company manage- 
ments is often a response to 
their owners’ wishes. Is this 
such a bad thing? It Is cer- 
tainly better than allowing 
Tnanagmnenfe to become unac- 
countable, as the record of the 
public sector shows. If inves- 
tors seem to place too much 
emphasis on the short term, 
this is in part unavoidable: 
after all, the near future is 
more foreseeable than the dis- 


tant future. Managemapfecan 
help the many investors who 
do try to take a longer view fay 
taking care to keep than prop- 
erty informed of future prim. 

For both managements and 
investors, long-term planning 
is more difficult than it should 
be because of constant changes 
in government policy: the 
stop-go economy and the ever 
shifting taxation rules. Major, 
Smith nnH Co should deal with 
their own shart-termism beta 
they blame the City. . 

Phffip Turner, 
deputy chief ex ecut ive. 

Wassail, 

39 Victoria Street, 

London SWlH QBE 


Decisions are for others to make 


From Mr Stephen Pierce. 

Sir, In his excellent article 
“On the road to procrastina- 
tion” (May 4). Adrian Furnham 
details the six most Savoured 
methods of avoiding decisions, 
all of which are important 
techniques for the up and com- 
ing manag er. 

However, there are three oth- 
ers well worth a try. 

• The ‘Haven’t got time/tear 
jerker* method. Here, the deci- 
sion-maker will state plainly 
that he/she hasn't got time to 
consider the problem, but clev- 
erly manages to come up with 
a reason which makes the 
requester feel a schmuck For 


example: “The CEO has just 
asked for a report. Fm proba- 
bly going to have to work the 
whole weekend as it is." 
Absence or resignation of a 
key member of staff also 
works. 

Failing any internal excuse 
to latch on to, a close relation 
just admitted to intensive care 
is usually a winner. 

• The Tass the buck' method. 
For example: "Do ask John, he 
has the latest figures" or "that 
will have to go before the 
board. Pity you’ve just missed 
the last meeting, next one is in 
a couple of months." 

• The ‘I’m glad you called’ 


method, followed by a swift 
change of subject and ending 
with the requester bring#*® 
something to investigate. The 
decision-maker should speak 
quickly and, where fitted 

should turn down his/her tear- 
ing aid. It works best ante 
telephone so that persistent 
requesters can be cutoff*™. 
“I must go, John’s just antvad 
for a meeting,", or as- a hst 
resort, a phone maffimetioo^ 
It would be interesting to 
hear other experiences from 
your readers. 

Stephen Pierce, 

70 Quarry HSI Road, - 
TOnbridge, Kent TN92PB/ 


Lloyd’s short on information for Names 


From Mr R. Ian Wood. 

Sir, I think Lex (May 4) is 
somewhat premature In con- 
gratulating Lloyd's an its pro- 
posals for a market in syndi- 
cate participations. 

In order to have an efficient 
market, all the participants 
must have access to the rele- 
vant information. If Names are 
denied information on their 
trading, then we shall have a 
false market At the moment, 
for instance, only a limited 
number of syndicates Issue 
interim reports, and some of 


them only produce them after 
the year is over. To add insult 
to injury my agent informs me 

- in the nicest possible way - 
that I have no right to see the 
interim reports, such as they 
are. and that he only sends 
them to me (when he nan find 
the time) out of the goodness 
of his heart From time to time 

- and particularly about now - 
one hears or reads in the press 
that syndicates have Issued 
profit warnings. 

The Individual Name is not 
sent these warnings, but has to 


wait for his agent to send the 
annual consolidated statement. 
It is all very reminiscent of the 
situation of the small investor 
in the stock market 40 years 
ago. No, Lloyds has got a long, 
long way to go yet! 

Finally, it is intrig uing , u it 
not, to see that (single) corpo- 
rate syndicates will be allowed 
one-year accounting. So it can 
be done after all? 

R. Ian Wood, 

Greystones. 

Great Rolhight, 

Chipping Norton, Oxon 


Quandary 


From MrRoh&Shah. 

Sir, Jancis Robinson states 
in the Business Travel cbbnjn 
(May 9): . .together wtthj®* 

generally dehydrating effect®; 
air traveL . it is essential » 
alternate non-alcoholic dnw 
with alcoholic ones." ' 

As a teetotaller. I am 
quandary; or does Jancis Rob- 
inson mean “it is essential 
alternate alcoholic drinks 
non-alcoholic ones." 

Rohit Shah, 

11 Maddox Street, 

London WlR 9LE 



\1 



ientiv io 


i f 
* * 


Women in management is also a little-understood issue for men 


From Ms Susan Clayton. 

Sir, Is it not time to face the 
fact that “women in manage- 
ment” is not just a women's 
issue? The male-dominated 
working practices that Lady 
Howe refers to (“Resources 
must not be wasted". May 6) 
are created by men, not out of 
anti-feminism, rather out of a 
different way of relating to the 
world (Hedda Bird's letter of 
May 6). "Women in manage- 
ment” is as much a men's 
issue! 

There is very little inquiry 
into understanding how men 


really view women coming into 
management, or the issues this 
throws up for men. What 
efforts are there to support 
and challenge men on the new 
position that they find them- 
selves in? 

For e x ample, can men a dmit 
to feeling threatened, do they 
understand the skills that 
women bring into manage- 
ment, do they actually want to 
understand these skills? Do 
men trust the intuitive skills 
that women can bring into 
management? in getting to 
grips with strategy, do men 


appreciate the strengths that 
women bring; their abilities to 
identify the values of the 
organisation and its commer- 
cial environment? 

When we begin to foce up to 
the real problem, there are 
many unanswered questions 
and many questions never 
asked. 

One way of dealing with the 
problem is to encourage men 
and women to ask questions 
and express their positions 
foce to foce; to dispel myths 
about each other and gain a 
real appreciation of their differ- 


ent ways of operating; to dfr 
cover their complement**? 
qualities as well as those tW 1 
conflict , 

Only then will aw-jgf 
women executives engage 
each other at a level titftcsn 
make a positive and permahri” 
difference to men and woo® 
together in management- 
Susan Clayton, 
managing director, .. . - 

Feedback, 

‘abnitm\ 

54 James Orchard, ■■■ 
Berkeley, 

Gloucestershire GUS 9TP 


V 

'I:?.-. 




8 £ 


School 


tc 




s 




fife: - 

i*. : 


Iff 






KS J 







l 

• fc.;. 
«•>{ 

•nh'r 

• *» 

Mi.' 

mh«-. 

U r, 

W 1.. 

%*h .» 
Uitvn 
•iitu: 

'! m 
iliiv 
jfPJij 
ii !«■ 

Ul> 

•.•i« 

»«K" 

■tilir 

1>*JV 

* Ol! 

e.Va 

hi':! 

.ft*”" 

iti;?: 

‘■jhI 

ft L>1 
!Hf! 
»».' 
i*ll 

ii«\f 

ir- 

hi 

itu* 

Iw* 

‘iilrt 


!*• 

it,; 1 , 


H'ilil 

Uii 

ii-;: 



r;,i 


M; 






‘ M ' 3 


lit icai fan) 






?i i 





FINANCIAL TIMES TUESDAY MAY 10 1994 


15 


FINANCIAL TIMES 

Number One Southwark Bridge. London SEI 9HL 
Tel: 071-873 3000 Telex: 922186 Fax: 071-407 5700 

Tuesday May 10 1994 


Rules of the 
new gas game 


Had ii not been so long delayed, 
yesterday’s consultation paper on 
the Mure of the OK gas market 
would probably have earned only 
routine comment Most of it con- 
tains technical proposals for flesh- 
ing out last year’s decision to abol- 
ish British Gas* monopoly; it is 
about detail rather principle. 

Instead, the Department of 
Trade and industry spent modi of 
the day fending off accusations 
that its plans will trigger sharp 
increases in gas prices, and result 
in the poor and elderly being cut 
off from supplies. It has only itself 
to blame for this. But now that the 
consultation process is finally 
under way, the pace must be 
maintained because there is not 
miinh time if KhcrallrnHwi is tO be 
achieved by the 1998 deadline 

The test of the document is 
whether it points the way to a 
competitive market without sacri- 
ficing safety or diluting the social 
obligations that go with a domes- 
tic gas supply. 

The basic organisational propos- 
als look sound. There is to be a 
transitional phase during which 
competition will only be intro- 
duced in small measure, and some 
regulatory controls, may continue 
beyond 1998 to prevent abrupt 
changes. BriHuh may wd up 
playing a special part for some 
years yet because of its market 
dominance and ownership of the 
transportation system. But it 
would be compensated for this. 

New suppliers would have to 
demonstrate financial strength 
and access to gas supplies before 
they could be licensed. They 
would also have to take on British 


Gas-style obligations to supply all- 
comers in their eh wen franchise 
regions. A new Network Code 
would ensure that the players in 
the new game behaved. If one of 
them failed, the rest would pick 
up the pieces under a proposed 
bonding or insurance scheme. 

Where the document is less 
clear, and therefore less convinc- 
ing, is over pricing. It acknowl- 
edges that, as the cross-subsidies 
in British Gas's present prices are 
squeezed out, there will be a pro- 
cess of •’rebalancing”. Further- 
more, consumers who live a long 
way from the gas terminals could 
end up paying more because of the 
greater role that transportation 
costs will play in the new regime. 

The government’s answer to 
these concerns is its faith in the 
market's ability to drive prices 
down. That faith win be strongly 
challenged in the nonfrnntati final 
climate which has greeted the doc- 
ument, and the government 
appears to have anticipated this 
by hinting that published tariffs 
may be required and that price 
controls coukl be extended. 

It is reasonable for the govern- 
ment to be concerned about pre- 
venting the entry of unreliable 
operators into the supply of a 
basic fuel, but the tone of the doc- 
ument betrays a worrying ner- 
vousness about price liberalisa- 
tion. Independent gas suppliers 
were less than enthralled by w hat 
they saw yesterday. As it firms up 
the rules, the government will 
need to ensure that they are suffi- 
ciently attractive to draw in the 
new competitors without whom 
deregulation will fafl. 


Centre left 


Hungarian voters shrugged off 
attempts to revive bitter memories 
of the 1956 Budapest rising against 
Soviet-imposed socialism as they 
voted ova the weekend, hi the 
first round of a complex two-part 
election they deserted the conser- 
vative Hungarian Democratic 
Forum which steered the country 
through the first four painful 
years of post-communist readjust- 
ment Instead, like their counter- 
parts In Poland and Lithuania, 
they voted heavily for a revamped 
socialist party led by men who 
received their political training 
and wielded power in the former 
communist regime. 

In three weeks the electorate 
will return to the polls for the 
final round at voting which will 
determine shape of th« next 
government This win most proba- 
bly be a coalition between the 
Socialists and the Free Democrats. 

But three weeks is an awfully 
long time in politics. The Free 
Democrats, a liberal grouping 
which emerged as the second 
party with just under 20 per cent 
of the votes against the socialists' 
32 per cent, have made clear that 
they win use it to attract the votes 
of those who want to ensure that 
the socialists will be constrained 
by a strong coalition partner. 

Such a coalition, with a secure 
parliamentary majority and basic 
co mmitmen t to con tinuing the 
market-based economic reforms 
which have attracted J7bn in for- 
eign investment to date, would be 
wen placed to benefit from aris- 
ing tide of economic prosperity 
which is now in prospect after the 


sacrifices demanded over the last 
four years. 

The slow pace of recovery for an 
economy saddled with more thaw 
$20bn of foreign debt inherited 
from the former communist 
regime was one of the main fac- 
tors leading to the loss of support 
for the ruling Forum. The party 
saved Hungary wefl. It provided 
political stability for the entire 
four-year life of Hungary's first 
postcammnnist parliament 

But now that Moscow no longer 
projects its shadow over central 
Europe, a substantial vote for a 
party that rafls itself socialist and 
promises more professional gov- 
ernment and a slightly greater 
depee of income redistribution 
raises no fears. The important 
thing is that voters have chosen to 
keep to the centre ground, albeit 
shifting it slightly to the left. 

Participation in the vote was 
high, voting took place calmly, 
and above all voters avoided 
alarming their neighbours in Slo- 
vakia and Romania by voting far 
those who talked of regaining 
Hungary's former dominant posi- 
tion in the Carpathian region. 

By ignoring the siren songs of 
both the nationalist right of lstvan 
Csurka and the hardline commu- 
nists on the left, Hungarians have 
helped the cause of stability in the 
region. They have thus improved 
their own chances of doing what 
Hungary's rulers failed to do dur- 
ing the 50 years when socialism 
was imposed from outside: nar- 
rowing the gap between their liv- 
ing standards and those of their 
western neighbours. 


School testing 


he government’s proposals for 
treamlirrmg the national currlcu- 
am in English schools, published 
esterday, have been welcomed by 
eachers and educationalists. Mr 
ohn Patten, education secretary, 
as broadly accepted the reforms 
Bcommanded by Sir Bon Hearing, 
is astute curriculum adviser, ft 
emains to be seen, however, 
whether he can deliver the other 
tail of the package: comprehend 
ive and objective testing to 
□sure that all children achieve 
igher educational standards, 
hi line with Sir Son's recoin- 
laudations, the new national cnr- 
iculum aims to fill no more than 
D per cent of school time for most 
hildren. ft is closely focused on 
asic skills such as literacy and 
umeracy. The controversial tech- 
ology curriculum has also been 
»vised to emphasise the impor- 
mce of work skills and specify a 
oherent body of knowledge. 

There remain, however, dispu- 
ting signs of Mr Patten’s recur- 
int desire to harness schools to 
opuHst causes. The streamlined 
urriculum gives greater weight to 
;am games and competitive 
ports, even for older children 
ho might prefer fitness activities 
r individual pursuits. And Mr 
atten’s repeated interference in 
at education has irritated health 
rofessionals who say that his 
hWpHbw will do nothing to curb 
ie growth in teenage pregnancies 
tid sexually-transmitted diseases. 
This penchant for publicity- 
rabbing initiatives alienates 
sachets and alarms parents. And 
: unnecessarily draws education 


into short-term political contro- 
versy. That makes it harder to win 
acceptance for the curriculum pro- 
posals which are essential to rais- 
ing the quality of education. Suc- 
cessive reports have indicated the 
failure of English schools to equip 
a large minority of school-leavers 
with even basic skffls. Inspectors’ 
reports too often find that pupils 
are not sufficiently challenged by 
the teaching they receive, particu- 
larly in inner-city schools. 

Getting the curriculum right is 
only one step in addressing these 
shortcomings, however. It is just 
as important to ensure that 
schools are teaching the new cur- 
riculum property. The new inde- 
pendent schools inspectorate can 
contribute to that with its more 
frequent inspections and weR-pub- 
Zirised reports to parents. Equally 
important is the regular testing of 
schoolchildren to see whether 
they are reaching satisfactory 

Tet testing remains disrupted 
by a boycott by the National 
Union of Teachers, the largest 
teachers' union. The boycott is 
largely ideological in motive - it 
is against the principle of objec- 
tive, external testing. Unlike last 
year, it is opposed by unions rep- 
resenting the majority of teachers. 
Tet this year's tests appear to 
have been severely disrupted by 
the minority's action. Mr Patten’s 
priority now. must be to restore 
momentum to the testing pro- 
gramme so that parents and 
employers can have confidence 
that the national curriculum is 
more than just good intention. 


They’re all in 
this together 

How long will South Africa’s spirit of 
reconciliation last under Mandela, ask 

Patti Waldmeir and Michael Holman 



S outh Africa has been 
stunned by its first brush 
with democracy. For citi- 
zens of mature nations, to 
whom democracy is an old 
and devalued friend, voting is a 
banal political act uninspired by 
higher emotion. But South Africans 
came to the polls as political vir- 
gins: with their naivety and their 
faith, they cast their ballots over- 
whelmingly for the ideal of one 
nation, undivided by race. More 
than anything else. South Africa's 
future will depend on the success of 
efforts to realise that ideal. 

Nelson Mandela, who will today 
be inaugurated as the first presi- 
dent of a united South Africa, has 
devoted his life to that goal. He 
never lets the subject drop: every 
speech, including yesterday’s 
address In Cape Town after he was 
elected president, stresses the need 
to reconcile South Africans to a 
common destiny. 

Constantly, he repeats the words 
he first uttered from the dock dur- 
ing the Rivonia treason trial 30 
years ago: *T have fought against 
white domination and I have fought 
against black domination. I have 
nherinhe ri the ideal Of a rtomnwa tf c 
and free society in which all per- 
sons live together in harmony and 
with equal opportunities, ft is an 
ideal which I hope to live for and to 
achieve. But if needs be, it is an 
ideal for which I am prepared to 
die.” 

Mr Mandela did not have to die; 
outgoing President F.W. de Klerk 
had the wisdom and vision to pre- 
vent such a disaster. But it was a 
close-run thing: Mr Mandela Is 
nearly 76, and without the adren- 
alin and excitement of his release 
and the subsequent four years of 
political chang e, he might well have 
begun to faiL But Mr de Klerk knew 
that no Other him* lewder would 
offer whites a better de el , «nd ho 
desperately feared a race war. So he 
took the first inevitable step to 
racial r mwiriHaHnn; the rest is up 
to Mr Mandela. 

The legacy of the recent elections 
will be no amall help to him in thin 
task. For as the chairman of the 
discredited Independent Electoral 
Commission, Judge Johann Krie- 
gler, pointed out, the exercise had 
more to do with reconciling people 
than reconciling votes. (A conve- 
nient excuse from a man who 
proved completely unequal to the 
job of running a modem election, 
but true even so.) 

So ballots were not reconciled, 
and their legitimacy could not be 
proved. Perhaps that was just as 
well, for it gave political leaders the 
excuse to do their own kind of rec- 
onciliation: sharing out power more 
as they thoug ht the voters ought to 
have done, than as they probably 
did; providing what one political 
insider called a “designer outcome” 
to a messy and chaotic election. 
One local newspaper called it “a 
dream come true”; those less given 
to hyperbole nonetheless thanked 
God (who pops up often in South 
African political discourse) for such 
a neat and happy outcome. 

For despite the electoral bungling 
and administrative farce which 
atten d ed the birth of South African 
democracy, the politicians have 
delivered a result which stands a 
good chance of guaranteeing stabil- 
ity in years to come: a deal winch 
binds all the major parties to the 
constitution, and leaves only the 
tiniest fringe to the left and right in 

anlfA- paHiairwrijiir y opposition. 

The African National Congress is 
strong, but not dominant it did not 
gain the two-thirds of the national 
vote which would have made it sim- 
pler to force through its ideas on a 
new constitution. And crucially, it 
did not win control of two impor- 
tant provinces, KwaZulu Natal, 
with a fifth of the country’s popula- 
tion, and the western Cape. True to 
form, Mr Mandela welcomed his 
party's failure to pass the two- 
thirds thrushnW, hoping this would 
allay white fears of black domina- 
tion. That was an essential part of 
the "designer outcome”: the ANC 
could not be allowed to win too 
many votes, or national reconcilia- 
tion would be jeopardised. 

The National party passed the 20 
per cent psychological barrier 
needed to give the party the power 


base from which to argue for minor- 
ity Inter est)! within the gnvp mmpnt: 
of na tional unity. And the inkatha 
Freedom party won the province of 
KwaZulu Natal with a fraction 
more than 50 per cent of the vote, 
giving the party a one-seat majority 
in the 81 -member provincial assem- 
bly. 

The ANC surrendered Natal - 
where some 15,000 people have died 
in the past decade in fighting which 
the ANC blames on the IFP - in the 
interests of peace. This was almost 
certainly the wisest course: for with 
Inkatha running well ahead in the 
polling (however crooked the 
results), the party of Chief Mango- 


Mandela welcomed 
the failure to pass the 
two-thirds threshold, 
hoping this would 
allay white fears of 
black domination 


suthn Buthelezi would never have 
accepted defeat Inkatha is likely to 
prove much less belligerent within 
government than outside; and it 
now has a vested interest in the 
success of the new order. 

The result has left South Africans 
in a pleasurable state of shock The 
unimaginable is constantly made 
fact; sad old truths have been for- 
gotten and the twin burdens of guilt 
and oppression lifted from the 
national spirit 

The momentousness of what has 
happened - long foreseen but not 
quite grasped - strikes home in the 
images of the new South Africa. Mr 
Mandela addresses the media from 
the steps of Tuinhuis, the elegant 


Cape Dutch mansion which houses 
the presidential offices; in this 
building five years ago, he took tea 
as a prisoner with outgoing Presi- 
dent P.W. Botha, returning to his 
cell after tea was served. He poses 
for photos on the steps of the tri-ca- 
meral parliament constituted 
expressly to exclude blacks, and 
places his hand over his heart in 
allegiance as an official hand plays 
Die Stan, the anthem of apartheid 
(now one of South Africa’s two 
national anthems). 

hi the historic Raadsaal (council 
chamber) in Bloemfontein, capital 
of the Orange Free State (last used 
at the turn of the century to house 
the parliament of the Orange Free 
State Boer republic), Patrick Lekota 
of the African National Congress is 
sworn in as premier of the new 
province of the same name. Five 
years ago, Lekota was serving a 12- 
year sentence for treason against 
the South African state. Now he is 
one of the most powerful men in the 

land . 

This scene is repeated throughout 
the country, as former prisoners 
take the salute from their captors. 
And every provincial premier con- 
veys the same message: the need for 
racial reconciliation and investment 
to build a new South Africa. That is 
Mr Mandela’s virion: the miracle is 
that his subordinates seem truly to 
have taken it to heart 

Perhaps the spirit of reconcilia- 
tion will not survive the new gov- 
ernment’s first five-year term in 
office; perhaps it will expire long 
before. But to hear the new ANC 
premier of the Johannesburg-Pre- 
toria region, Mr Tokyo Sexwale, 
plead with the white right wing to 
join in the new South Africa - and 
not to closet themselves away in 
some forgotten comer of an arid 


new government's intentions are 
good. Mr Sekwale has even said he 
will forego the traditional trium- 
phal act of African liberation: 
chang in g the names of streets and 
buildings to deny the European 
past. He understands the impact 
this would have on the white 
psyche, and seeks to avoid it 
It Is hard to see how such gener- 
ous impulses could have survived 
the depredations of apartheid, but 
they have done: only 1.25 per cent 
of the electorate voted for a party 
whose appeal (though not its offi- 
cial platform) is based on black 
revenge, the Pan Africanist Con- 


Surety the best is 
oven the ANC must 
now dirty its hands 
with the politics and 
not just die rhetoric 
of nation-building 


grass. And though 400,000 whites 
voted for Gen Constand Vfljoen and 
his dream of an Afrikaner home- 
land, this is far more a cultural 
than a racial concept. Overwhelm- 
ingly, South Africans voted against 
racism. 

But surely the best is now oven 
Nelson Mandela’s inauguration 
brings to an end the era when the 
ANC was unquestionably on the 
right side of history. It must now 
dirty its hands with the politics and 
not just the rhetoric of nation-build- 
ing. Mr Mandela’s good intentions 
will be sorely tested in this phase. 
For there is a contradiction inher- 
ent in the twin goads of his new 
government: reconciliation and 


improving the living standards of 
the black population. If blacks 
advance too rapidly at the expense 
of whites, whether in terms of job 
opportunities or government spend- 
ing, racial relations will be strained; 
if they continue to lag behind, the 
same will happen. 

In the end, race relations will 
worsen or improve as the economy 
fails or prospers, within parameters 
which may be set by the World 
Bank or the International Monetary 
Fund. For once equality is achieved 
at the ballot box, economic equality 
becomes the next target: no new 
nation can be built if the whites nil 
leave because of economic decline, 
or if blacks languish forever in pov- 
erty. That is why Mr Mandela con- 
stantly appeals to whites to stay in 
South Africa, or return if they have 
left. 

Despite bis best intentions, how- 
ever, strains could quickly develop 
within the government of national 
unity. Though Mr Mandela tried to 
include several parties in his cabi- 
net - even those who did not qual- 
ify for seats under the power-shar- 
ing constitution - this could work 
more to his advantage than theirs. 
In government, collective cabinet 
responsibility will force them to sti- 
fle criticism except in matters grave 
enough to provoke resignation. 

I n his victory speech last 
week, Mr Mandela made dear 
that his definition of a gov- 
ernment of national unity is 
one in which he gives the 
orders and others obey - especially 
when it comes to implementing the 
ANC’s plan for black upliftincnt. 
the Reconstruction and Develop- 
ment Programme. Under the consti- 
tution. Mr Mandela is required to 
try to seek consensus on cabinet 
decisions; but if he cannot find it, 
he may act alone. When faced with 
a conflict of interest between his 
core constituency, blacks, and white 
privilege, he will have a hard choice 
to make. 

The carefully crafted gestures of 
reconciliation which marked his 
election campaign will then be 
tested for content as well as form: 
the hand stretched out to Mr de 
Klerk in their televised debate, the 
embrace for Chief Buthelezi on the 
floor of the new national assembly', 
provided the visual equivalent of 
sound bites. The next few months 
will tell whether they were indeed 
genuine, if not quite spontaneous. 

In the months and years to come, 
he wfl] be called upon to implement 
the promises made from the dock 30 
years ago: “U is not true that the 
enfranchisement of all will result in 
racial domination. Political division, 
based on colour, is entirely artificial 
and, when it disappears, so will the 
domination of one colour group by 
another. The ANC has spent half a 
century fighting against racialism. 
When it triumphs it will not change 
that policy.” 

Perhaps these will go the way of 
all politicians’ promises, and be 
withdrawn by a President Mandela, 
toughened and strengthened by 
power. And ironically, racial rela- 
tions could actually worsen rather 
than improve with the end or apart- 
heid, as heightened black expecta- 
tions are inevitably frustrated and 
affluent whites take the blame. 

But luckily for South Africa, rec- 
onciliation does not in the end 
depend on the good intentions of 
one man and his organisation. 
South Africa's disparate peoples 
may share nothing in the way of 
race, language, ethnicity and ideol- 
ogy, but they recognise a common 
danger which unites them: the risk 
of mutually assured destruction. A 
capricious history brought them 
from Holland, India, England, Scot- 
land, France and other parts of 
Africa; but over the past two weeks 
they have finally come to ac- 
knowledge that they share a com- 
mon fate. 

As the benevolent glow of the 
past two weeks Fades from memory, 
that fact will remain. Mr Mandela, 
the statesman, Mr de Klerk, the 
pragmatist, Gen Constand Vfijoen, 
the soldier, and Mangosuthu Buthe- 
lezi, the chief, all accept a common 
truth: they cannot live without each 
other. They may not like the new 
South Africa, but they are stuck 
with it There is no turning back. 


Observer 


Large giblets 
and fries 

■ So there is an after-life for 
spit-roasted chief executives. James 
Robinson, former boss of American 
Express, has resurfaced - on the 
board of a rotisserie riiiefc»n rhain 
From a renowned southern family 
himself, Robinson should know 
all about finger- lickin' chicken 
The job complements Robinson's 
other directorship, at GocfrCofa. 

In business for 2% years, 
Robinson's new interest - the 
Kenny Rogers Roasters, named 
after the country music star - has 
144 outlets. Its aim? Why, to become 
the US’s biggest rotisserie nhnin 
- in competition with Boston 
Chicken, of course. 

Robinson rubs shoulders with 
some alluring names gq the 
Roasters’ board: JJP. Bolduc, chief 
executive of WJL Grace; Drew 
Lewis, a former Reagan transport 
secretary; and Darien facocca, wife 
of former Chrysler bees Lee. 

He could also pick up a few tips 
from another board member, 

Harvey Mackay, who lists among 
his book credits “Swimming with 
sharks without being eaten alive". 


Dial- a- stick 

■ Britain’s Foreign Office can 
perhaps be forgiven for drawing 
a blank in trying to contact British 
nationals by telephone in Aden, 


southern Yemen, where a confusing 
battle has been raging. 

For the southern Yemenis, in 
a highly effective “communications 
offensive" against their northern 
enemies, have changed all 
telephone area codes to their 
pre-unification digits. They have 
also declined to tell anyone what 
the new/old codes are. 

This cunning plot fell foul of a 
nan -digitalised fabyhiwp exchange 
worker in Aden. He informed a 
British Airways employee, who 
in turn contacted London. There, 
the news spread swiftly to the small 
community of Indians originally 
from Aden, one of whom informed 
the Foreign Office. 

The moral? You never know 
when you might need your deft 
stick. 


Orders are orders 

■ Old lags never forget Nelson 
MyndpJa has invited two of his 
former jailers and an ex-prison chef 
to be his personal guests at today’s 
presidential ir mu gii ration 
ceremony. 

James Gregory, who became a 
c ombina ti on of friend, confidante 
and valet during the 25 years 
Mandela was in his charge, retired 
from the prison service last year. 
Alongside will be the head chef 
of Victor Verster prison, Jack 
Swart. 

Gregory had one problem with 
the invitation, which includes a 
chartered flight to Pretoria - he 



can’t stand flying. But he is going 
none the less: T have to view this 
sudden invitation from the 
president-elect as an order . . .1 can’t 
say no." 


Beastly fortune 

■ What's the connection between 
Pope John Paul ITs broken hip and 
the governor of Hawaii’s broken 
date? 

No joke this, but high-level 
diplomacy, ft turns out Hawaii's 
governor was due to attend a 
beatification ceremony in Rome 
on May 12 of the Belgian priest, 
Damien de Veuster, who established 


Hawaii’s leper colony on the island 
of Molokai in 1873. 

But now the pontiff has mobility 
problems he has cancelled the 
ceremony, costing some London 
hacks a promising lunch at the 
Hawaii Visitors Bureau in London. 
The governor had hoped to brief 
them on his domain t but decided 
to abort his mission after the Pope 
cried 021 


Rhodes Colossus 

■ With the round of debt 
restructuring deals triggered by 
Latin America's debt crisis coming 
to a close - well, for the time being 
- perhaps Citicorp's vicechairman, 
W illiam Rhnripc should make 
himself known to the compilers 
of the Guinness Book of Records. 
He has negotiated with 41 finance 
ministers, 35 central bank 
governors and 35 chief debt 
negotiators. Those deliberations 
have collectively restructured 
$500bn of debt - some of it more 
than once. 


Knightmare 

■ The troubles of the UK Tory 
party may have helped paper over 
the cracks in Britain's opposition 
parties. 

But a brief skirmish at 
yesterday’s annual meeting of MSF, 
Britain's fifth biggest trade union, 
suggests that Labour party leader 
John Smith ought to enjoy his 


honeymoon while it lasts. 

The MSF rescued Smith last year, 
when he was in danger of losing 
his battle over one-member, 
one-vote in selecting parliamentary 
candidates. Yesterday, “Red" Ted 
Knight, once Labour leader of the 
rebel Lambeth council, along with 
a comfortable majority of MSF 
members, passed a motion 
condemning the MSF delegates 
who had helped bail out Smith at 
the last moment. 

Standing up and being counted 
alongside Red Ted was Dave Nellist, 
the former Coventry MP expelled 
from the Labour party, and Jim 
Mortimer, the Labour party's 
former general secretary. 


OK Okie 

■ A tip for society hostesses 
preparing for the arrival in London 
of Admiral William Crowe, the new 
ambassador to the Court of St 
James. President Bill Clinton's 
recent problems mean that 
Arkansas jokes are in poor taste, 
but jokes from the neighbouring 
state of Oklahoma are perfectly 
acceptable - provided they are told 
by the admiral, a native of that 
state. 

Here’s one of Crowe's favourites. 
A widow attending her husband’s 
funeral is taken aback by the 
enthusiastic eulogy the preacher 
is delivering. 

She turns to her son and says: 
“Just take a look in the casket and 
see if that really is Daddy in there." 





r 


mtm 


Win. 13 S}*Pem_Sp>«U!:j:* 


Ethernet ■ IBM Cabling S/slem • LAM 
fibre Optics ■ AT&T's FDS * Nevada Western 
Delden - Digital'* DECccnnect 
Tel. 0753 656584 


FINANCIAL TIMES 

Tuesday May 10 1994 

US pressures set to ease as trade figures peak Left wing 

Japan’s current account pledges Choice 
surplus falls to $ 15 . 76 bn S^°££ or ■Se'ES&s b 


[World 
1 Leader 
| in rolling 
0 bearings 


THE LEX COLUMN 


Choice in the pipeline 


By Paul Abrah ams In Tokyo 


Japan's current account surplus, 
the source of friction in relations 
with the US, could have reached 
Its peak, the Ministry of Finance 
predicted yesterday. 

The surplus fell 16. L per cent to 
$I5.76bn in March, with exports 
up 5.3 per cent at $35.6bn and 
imports up 10.3 per cent at 
$20.4biL In addition, both the cur- 
rent account and trade surpluses 
declined in yen terms during the 
1993 ffrijiTifliai year, the first drop 
in three years, according to fig- 
ures published by the ministry 
yesterday. 

“Japan's current account sur- 
plus appears to be peaking now,” 
minis try officials said. “The 
downward trend is obvious in 
yen terms, and seems to hold 
true even in dollar terms if fig- 


ures are compared on a quarterly 
not monthly basis, which is more 
susceptible to fluctuation..” 

But officials warned that the 
politically charged dollar figure 
was dependent on exchange rates 
and the price of oil, which has 
been rising in recent weeks. 
Japan is an oil importer, and 
higher ofl prices in recent weeks 
have been a reason for the 

shrinking surplus. 

The figures will provide some 
relief for the US in the struggle 
over Japan's current account sur- 
plus. This climbed to another 
record during the year to March, 
from $125Jbn in 1992 to $130bn. 

Tokyo has come under sus- 
tained pressure from Washington 
to boost its domestic economy 
and deregulate to generate 
increased imports. Exports last 
year rose 6.1 per cent to $355bn. 


outstripping imports, which 
dropped 6J per cent to $213bn. 

ha yen terms, the current 
account surplus fell from a 
record Y15,600bn (£101bn) to 
Y14,000bn, with exports down 8J2 
per cent at Y38,300bn and 
imports down 7.6 per cent at 
Y22JK)0bn. 

The ministry also released 
details of Japan's customs- 
cleared trade surplus during the 
first 20 days of April, which wid- 
ened to $4-75bn from a revised 
$4. 61 bn surplus in the same 
period a year earlier. 

The continuing weakness of 
the US currency played an impor- 
tant rote in the rise, with the 
dollar at Y104.7 over the period, 
against Y115.9 a year earlier. 
Imports increased by 11.8 per 
cent to $15.26bn, while exports 
rose by 9.6 per cent to $2Qbn. 


By Tom Bums bi Madrid 


Oil companies evacuate 
staff from war-torn Yemen 


By Marie Nicholson in Cairo 


Yemen’s civil war, which has 
prompted the emergency evacua- 
tion of most foreign oil company 
expatriates, threatens to deliver a 
serious blow to an industry long 
seen as central to the country’s 
economic prospects, oil execu- 
tives said yesterday. 

As BP, Shell, Lasmo, Clyde, 
British Gas and other western oil 
groups yesterday completed the 
evacuation of their staff from 
Sana'a in the north and Aden in 
the south, executives at many 
company headquarters said that, 
whatever the outcome of the 
fighting, there was a growing dis- 
illusionment about ofl prospects 
in the country. 

A large number of foreign 
countries entered into explora- 
tion contracts with Yemen after 
its unification in 1990. 

Optimism peaked two years 
ago, when more than 20 compa- 
nies rushed to conclude explora- 
tion deals. These were mostly in 
the south, after Canadian Occi- 
dental discovered viable fields in 
the Masila area, the north-west 
comer of former South Yemen. 

CanOxy says it is now pumping 
150,000 barrels a day from the 
area, production which the com- 
pany says will continue despite 
evacuation of its staff. 

CanOxy’s find followed the dis- 


Fledgling industry faces setback 
from which it may never recover 


cover! es in the mid-1980s by Hunt 
Oil, the Dallas-based group, in 
North Yemen. Yemen Hunt Oil 
produces most of the rest of Yem- 
en’s present output, about 320,000 
b/d. It has alsb said production 
would continue. 

Despite heady predictions that 
Yemen might eventually be capa- 
ble of producing lm or even 2m 
b/d, Yemen’s rugged south has 
failed to deliver on its apparent 
promise. 

“There's been a very signifi- 
cant spate of drilling, " says the 
head of one western ofl group 
active there. “But the results 
have been singularly disappoint- 
ing." 

Another oil ccAnpany managing 
director, who said the war might 
prompt many disappointed com- 
panies to pack their bags, added: 
“It’s now likely, particularly with 
this setback, that Yemen will be 
left only with Hunt and Can- 
Oxy” 

At least two companies said 
privately yesterday that they 
expected to dose their operations 
before the end of this year, given 
disappointing results and the 
country’s heightened political 
instability. 


CanOxy, which is continuing to 
explore around Masila, has 
already scaled down any expecta- 
tions of further big finds. Shell, 
which has completed dr illing in 
its concession, would say only 
that it would “need to took at 
where we go from here". 

Clyde, the UK-based oil com- 
pany, said yesterday it had 
received “some encouragement” 
from early drilling in its Masila 
concession and had no intention 
of leaving. “We're still optimis- 
tic,” a Clyde spokesman said. 

Nevertheless, diminish ed pros- 
pects for Yemeni oil are a serious 
blow to whatever political 
arrangement arises from the 
fighting in the Arabian Peninsu- 
la's poorest and most populous 
land. 

It perhaps most seriously 
undermines the economic hand 
of Mr Ali Salem al-Beidh, the 
embattled southern leader, who 
would have depended heavily on 
oil to support greater economic 
independence far the south, fol- 
lowing his disfllusiomnent with 
the four-year-old union with the 
north. 


Observer, Page 15 


Germany considers ban on British beef 


Continued from Page 1 


first instance, she said. 

“We have always said we 
would prefer to find a common 
solution for this BSE problem,” 
Mr Dieter Vogel, German govern- 
ment spokesman, said yesterday. 
“If that is not possible, then we 
have to find a unilateral solution. 
It may be that the cabinet will 
decide on this on Wednesday." 


EU agriculture ministers con- 
sidered further measures to 
restrict the ciroulatioc of British 
beef at their last meeting in Lux- 
embourg, but EU members other 
than Germany were satisfied 
with Britain's response. 

The ban being proposed by Mr 
Seehofer would affect the import 
of all British cows more than 
three years old, and any younger 
animals which come from herds 


which have not been certified 
BSE-free for at least four 
years. 

The German health minister 
argues that scientific research 
cannot exclude human infection 
with BSE. "No responsible politi- 
cian can allow even the slightest 
risk to occur, given the awful 
consequences of a possible infec- 
tion of human beings with BSE," 
he said. 


The left wing of Spam's ruling 
socialist party has come to the 
aid of the scandal-hit government 
after enduring months of ostra- 
cism following prime minister 
Felipe Gonzalez’s narrow election 
a year ago. 

Mr Alfonso Guerra, the deputy 
party leader whom Mr Gonzalez 
hag tried hard to isolate, haa per- 
sonally signalled his support for 
the embattled prime minister. 
The astute Mr Guara timed what 
may mark the return of the left 
to greater influence in the party 
with the dramatic departure from 
parliament of judge Gar- 

z6n, the best-known magistrate 
in the country, who said he was 
resigning his socialist seat 
because Mr GonzAlez was not 
doing enough to curb corruption. 

Mhring sorrow and ang er in his 
resignation statement, Judge 
Garzfin said he had been prom- 
ised support and responsibilities 
to combat corruption but that 
neither had materialised. An 
Independent who was personally 
coopted by the prime minister to 
stand an the socialist ticket in 
last June's election. Judge Gar- 
zdn bitterly said he bad been 
used “as an electoral ploy”. 

His agreement to stand as a 
so cialist candidate alon gside Mr 
Gonzalez last year played an 
important part in the prime min- 
ister’s successful bid for a fourth 
term to office despite widespread 
public ttisrrmtenfr 

The prime minister was, mean- 
while. seeking a candidate for the 
key job of socialist parliamentary 
leader to replace Mr Carlos Sol 
rhagq . a former finance minister 
and the most prominent of the 
party’s free marketeers, who 
resigned from the job at the end 
of last week. 

Mr Solchaga, with Mr Gonz- 
alez’s backing, had cleared left- 
wingers from many positions of 
influence in the parliament last 
year but his successor Is now 
likely to-have to be acceptable to 
Mr Guerra. 

The drive towards consensus, 
following the departure of Judge 
Gandn and of Mr Solchaga, both 
of wham were equally controver- 
sial in the eyes of the deputy 
prime minister's supporters in 
the party apparatus, effectively 
means the return to the political 
centre stage of the guenista fac- 
tion . 

The resurgence of Mr Guerra’s 
supporters in the midst of the 
scandals surrounding the govern- 
ment was further evidenced at 
the weekend in regional socialist 
party congresses in Madrid and 
Aragon. In contrast to similar 
congresses in recent months, 
which marked a guerrista retreat, 
the left wing was able to negoti- 
ate a strong position at both oanr 
ventions. 

Tn a tell-tale si gn that the pen- 
dulum has swung back, Mr Jose 
Maria Benegas, a leading guer- 
rista, has been entrusted with 
running the party's campaign in 
the European elections next 
month. 


FT WEATHER 


Europe today 


High pressure ova- northern Europe will 
extend over central and western Europe. As a 
result, Sweden and Finland wfll be mainly 
sunny wtth above normal temperatures. 
Germany, the Low Countries and France will 
be sunny with only an isolated shower In the 
Alps. Spain and Portugal will be sunny, 
except for north-west Portugal where doud 
WH prevail and rain Is likely, England will have 
sunny periods, but Ireland will have doud and 
showers from an Atlantic low pressure 
system. Parts of south-east Europe, including 
Greece and southern Italy, will have some 
heavy showers, especially during the 
afternoon. It wfll be unseasonably cool, with 
maximum temperatures below 20C in some 
areas. 




m 




FWe-riay forecast 

High pressure in the north will persist, 
resulting In dry conditions in Scarxfinavia and 
much of central Europe. Low pressure from 
the Atlantic will draw much cooler air into 
Spain and France, giving rise to thundery 
showers over Span. France and the Low 
Countries. South-east Europe wfll become 
warmer and sunnier. 








Warm trait Cold front AA Wind SftoatJ In KPH 


TODAY’S TEMPERATURES 


Situation at 12 GUT. Tomperthtm maximum for dsy, Foraeiala^MofooConxultofthBNeltml^ 



Maximum 

Ba*ng 

fair 

26 

Cvacas 

cloudy 

28 

Edinburgh 

fair 

15 

Madrid 

Abu Dhabi 

Celsius 

Belfast 

rain 

15 

Cardiff 

far 

18 

Faro 

fab 

23 

Melorca 

sun 

36 

Belgrade 

fair 

23 

Casablanca 

fair 

20 

Frankfurt 

Mr 

23 

Mena 

Accra 

Ur 

33 

Berlin 

sun 

S3 

Chicago 

sun 

19 

Genova 

fair 

21 

Manchester 

Algiers 

fax 

26 

Bermuda 

fair 

26 

Cologne 

Mr 

21 

Simitar 

fair 

26 

Manna 

Amsterdam 

fair 

18 

Bogota 

Mr 

18 

O' Salaam 

Mr 

30 

Glasgow 

fair 

17 

Melbourne 

Athens 

shower 

22 

Bombay 

lair 

33 

Dakar 

sm 

25 

Hamburg 

Cloudy 

20 

Mexico City 

AtlarHa 

sun 

28 

Brussels 

fair 

19 

Dates 

thund 

27 

Helsinki 

sun 

23 

Miami 

B. Aires 

lair 

17 

Budapest 

Mr 

21 

Delhi 

sun 

41 

Hong Kong 

rain 

30 

Mian 

BJham 

fair 

19 

C.hagen 

sun 

18 

Dutxa 

BUI 

38 

Honolulu 

sun 

31 

Montreal 

Bangkok 

Bund 

32 

Cairo 

sun 

33 

Dublin 

rain 

14 

Istanbul 

rafa 

18 

Moscow 

Barcelona 

sun 

22 

Capo Town 

Mr 

26 

Dubrovnik 

Mr 

22 

.Jersey 

Karachi 

Kuweit 

cloudy 

SU1 

sun 

16 

38 

34 

Munich 

Nairobi 

Nantes 


Quality flights made in Germany, 



Lufthansa 

German Airlines 


L Angelas 

Lao Palmas 

Lima 

Lisbon 

London 

Luxiiourg 

Lyon 

Madeira 


Zt Nassau 
23 New York 
22 Ntoa 
21 Mcas$ 
20 CNo 

20 parts 

21 Penh 
21 Prague 


28 Raigoan 

24 Reykjavik 
22 Rb 

19 Rome 
33 S. Freoo 

14 Seoul 

25 Singapore 
31 Stockholm 
25 Strasboug 

9 Sydney 

15 Tangier 

21 TN Aviv 
25 Tokyo 

22 Toronto 

29 VSneauver 

20 Venice 
19 Vienna 
25 Wtaaw 

21 Washington 

22 Wellington 
24 Winnipeg 
21 Zurich 


cloudy 33 
Mr 10 
shower 24 
lair 21 
sun 23 
shower 24 
shower 30 
fair 21 
Ur 22 
cloudy 18 
for 20 
sun 28 
sun 26 
fair 10 
cloudy 18 
fair 23 
sun 23 
fair 18 
sun 24 
fat 14 
rain 13 
fair 20 


Ms Clare Spottiswoode, the gas 
regulator, has been true to her word. 
Not only has she put an end to the 
government’s dithering over publish- 
ing their joint consultation document 
on how the domestic gas market 
should be opened to competition. More 
important, the framework set out in 
the document constitutes, as prom- 
ised, a level playing field. British Gas's 
rivals will not be able to “cherry Pick” 
the best customers. The company will, 
of course, have to cut costs even fester 
if it is to earn reasonable profits from 
this market once its monopoly is abol- 
ished. But rivals will not be given the 
same regulatory assistance that they 
received when the contract gas market 
was opened to competition. 

At the heart of the document is a 
political fix: Gas’s transportation arm 
will levy on both Gas's supply arm 
and its rivals an annual standing 
charge of £25 per customer. This level 
has been chosen so that, once the sup- 
ply arm's fixed costs are taken into 
account, it win not have to put up its 
standing charge to customers of £37. 
So ministers do not need to worry 
about granny feeing a higher gas bill. 

I But the fix also tnparuj that the marg in 
on supplying all classes of customer 
will be the same rather thin one. If 
there is any cream to skim, rivals will 
have collect it with skill rather than 
scooping it up in ladles. 

All players will have to meet the 
same regulatory requirements as Gas 
on matters such as security of supply 
and disconnection. That should keep 
the quick buck cowboys out of the 
market. And though Gas’s transporta- 
tion arm may retain back-up roles for 
safety and security of supply, it will be 
paid a commercial rate for doing so. 
Gas’s prospects still depend on a fur- 
ther Of gas document setting out the 
price formula for transportation. But 
the bull is unlikely to al ter . Ms 
Spottiswoode has shown herself to be 
rational and fair once. She can be 
expected to do so again. 


FT-SE Index: 3097.8 (-3.21 


Associated British Foods 


Share price relative to the 
FT-SE-A All-Share Index 

120 — 




105 * 


95 7 


90 ’ 11 1 1 
Jun 1993 
Soucck Datastown 


ABF 

Perhaps it was because the market 
was expecting an appetising deal from 
Associated British Foods - in the 
form, say, of the acquisition of 
Affied-Lyons’ food business - that its 
shares fell more than 2 per cent yes- 
terday. The restructuring of the Wes- 
ton family holding has no bearing at 
all cm the company’s operating perfor- 
mance. Outside shareholders are being 
offered a lOp sweetener from the fami- 
ly’s coffers to persuade them to read 


and act on the thick documentation 
that accompanies the deal. Admit- 
tedly, the ultimate effect on the share 
price may be marginally negative. 
After two years, family members will 
be free to sell their shares and the 
overhang may reduce their rarity 
value. 

Yet all this is stfll a long way off. 
Similarly, the recognition , that the 
family ownership structure needs to 
be adjusted to meet the needs of a new 
and younger generation also serves as 
a reminder that Mr Garry Weston will 
not be at the helm for ever. But there 
is no question of the family relinquish- 
ing control. The long term approach 
which has characterised management 
decision-making in the past seems set 
to continue. 

Mr Weston was keeping his own 
counsel yesterday on the subject of 
acquisitions. ABF itseff though, will 
have just as much, cash after the deal 
as It did before: the cash which Is 
flowing back to family members 
comes from their GWH holding com- 
pany rather than ABF. 

Having already accumulated £5QQm, 
ABF cannot afford to keep on piling 
up cash indefinitely. On the basis of 
April’s purchase of Bibby’s feed mills, 
the US agribusiness looks more 
enticing than Allied's food business 
which would make ABF more vulnera- 
ble to margin pressure from 
supermarkets. 


US bonds 


Kemper 

Kemper’s decision to open its books 
to bidders looks wholly pragmatic. 
Management must have reasoned that 
it would be better to bow out grace- 
fully than run the risk of being evicted 


Having failed to tighten monetary 
policy yesterday, the Federal Reserve 
has little leeway before the end of the 1 
week. Barring a rate increase first 
thing today, it could not act without j 
disrupting the Treasury’s $29bn bond 
market refunding operation which i 
takes place over the next two days. I 
Concern about the impact on the bond 1 
market of another rate Increase may 
have held up any move yesterday, but 
the Fed is between a rock and a hard 
place. If the dollar falls because 
the authorities have done nothing to 
back up last week's intervention, the 
bond market will probably weaken 
anyway. 

Indeed, the nervousness of both cur- 
rency and bond markets argues 
increasingly for a substantial tighten- 
ing when it finally happens. At cur- 
rent yields, US bonds offer fundamen- 
tal value, but overseas investors are 
reluctant to jump in because of the 
Fed's gradualist approach. Only when 
the tightening process is perceived to 1 
be complete are overseas buyers likely 
to return in force. The resulting capi- 
tal inflow might help the dollar too. 


The art of success. 





Coomngcr 
£435 millfetn o i femor 
debt ocipnanaa fadHba 
Cor ihc DO million 
OUnjgrfllcfH buy -oaf of 
SLD Pump gunpui 

rompink* faMi 

llWKOff PLC 


Samsung 

Electro- Me ch a ni cs 
Aciol -a lead fltuufcr jmJ 
bookivcnocf in comcniMc 
bond I**ue, raning 
5Fr 70 euRkm 


VbdjJbft* 
Vendor placitl * 
' t4j.9fa.IM 

anliMlf ituKP 
aiMftp 


f- -s.’* ■ 

i 


Halifax 

Building Society 

tMO tnllua, IQ I'd* 
aS'i bond.' 


Majesty die 
Queen in die Right 


of New Zealand 

US*1 union * .Of FKN 


j: ' 

Lirj, 


Capital 

Sh o p p i ng Centre. 

Pining and fob&v 
r+o of tlJXlS.000 
ordinary (hare. 
«ZMp 


Re-opening 
of local authority 
bond TBartunx 
City of Salford t J 00 million 
25 year 7% booth . 
Loeencr City Cornell 
UQ mzlliaa 2S rc*r 7% bond. 
Dudley MczropoBbm 
Borough Council 
Et09 mi Win n IS (tar 
7% bomb 


United Carriers 
Pljriflg id 
bWAM ordinary 
<lur>.-« at iSJp 


TiraiuAiLmtic 

Holdings 

fcSO mi lb. hi 83% 

IJyejr tonimniblt 
b..nd 



Nomura 
Internatioaal 
Arranger 
US$230 million 
revolrinp credit 
facility 


Her 

Majesty the 
Queen in Right 
of Canada 
USVbilbra 


undcr*mtr 
for the 

The pmalltKWM 

Kingdom 
of Sweden 
USSZbdbun 
7 war ftpl 





77 yx ;t* v£yv *S>v- a > ■» 

k< ,w.' c". Sv.v. 


In international transactions this year, UBS has shown it has the newer jnrl oL-;H« . , . 

Y ana SKIIls to ensure a successful outcome- 





-■ : 


by supporters of GE Capital’s bid at 
the shareholders meeting originally 1 
scheduled for tomorrow. Yet it Is diffi- 
cult to see where a white knight wfa 
come from. 

Mr Sanford Weill’s Travelers would 
have been an obvious suitor. But its ■ 
recent acquisition in Insurance and 
sagging share mice most have dulled i 
Us appetite for big deals. Kemper’s 1 
business mix complicates matters. < 
Any US bank interested in mutual I 
funds would have to divest the life 
insurance operation for regulatory rea- 
sons. Neither is there a long list of 
potential European bidders. Banco 
Santander, which already has a smaiT 
stake in Kemper, has its hands fen 
with the rescue of Banesto. Most Euro- 
pean insurers with ambitions in OS 
retail savings are either too small or 
have other strategic priorities. 

It is always possible that the invest- 
ment bankers will find a way of dis- 
membering Kemper, especially if a 
buyer for the troubled property portfo- 
lio can be found. But splitting the 
group is unlikely to release, much 
value for shareholders. The breadth of 
Kemper's product range may actually 
be an asset, allowing it to sell both 
mutual funds and annuities depending 
on market conditions. On that reason- 
ing. the group is worth more to GE 
Capital than the sum of its parts. 




Corporac tiiHtKC Jnd cjpual nuffcws irworuuns in LooJoo ire unjvrtilicii b» UBS LimirrJ, 4 mcmhrr . c ,. 

hAl no *rre,. 1 .mu i:c:m jrh- 







„ i i n a 






BRIEF 


CS Holding goes 
cold on bank deal 

It is unlikely that CS Holding, the big Swiss 
international financ ial group, will pursue its 
interest in buying from the Austrian finan ce 
ministry a large part of its controlling stake in 
Credftanstalt-Bankverein, the country’s 
second-largest bank. Page 18 

State sells 70% of Air Jamaica 

The Jamaican government has sold 7D per cent 
of Air Jamaica to a consortium of local and Cana- 
dian investors for US$2&5m - a further 5 per 
cent will be offered to employees with the govern- 
ment retaining 25 per cent Page 20 

AQF to forge link with SocGsn 

Assurances Generates de France (AGP), one of 
France's largest insurance groups, is to forge 
closer links with Soctefo Generate after its privati- 
sation, rather than Credit Lyonnais. Page 20 

Berliner Bank to raise divided 

Berliner Bank, now Germany's sixth largest bank 
following its merger with two other banks, has 
said it will raise its dividend by DMT to DM9 on 
last year’s high partial operating profits and operat- 
ing results. Page 21 

Tough year for Traub and Hecfcert 

Last September’s union of Traub and Heckert, 
two German machine-tool makers, took place 
against the background erf one erf the worst reces- 
sions in many years - but nobody said it was 
going to be easy. Page 21 

Meridien Biao plans African expansion 

South Africa’s transition to democracy is encourag- 
ing at least one pan-African hanking network 
to expand through the co ntinen t. Page 22 

Rise of a Malaysian businessman 

Since relatively modest beginnings of a corporate 
career in bicycles in the early 1980s, Mr Tajudin 
Ramli now plans to take over the running of 
Malaysia Airlines (MAS). Page 22 

N Brown profits increase 18% 

N Brown, the UK's Manchester-based direct mail 
order group which specialises in clothing for 
older women, yesterday reported an 18 per cent 
increase in foil year pre-tax profits. Page 24 

Babcock ends year with £4 1m deficit 

Babcock International, the engineering contracting 
and materials handling group, hag announced 
pre-tax losses of £4L2m ($60. 15m) for the year 
ended March 31, compared with a profit of £2Llm 
($30 An) last time. Page 24 

Pausing for breath at B&J 

Shareholders in Brown & Jackson, UK owner 
of the country's loss-making Foundstretcher chain, 
have several weeks to weigh rival offers for the 
group, following an adjournment of the egm called 
to approve a capital injection. by millionaire couple 
the Weisfelds. Page 25 

Costain shares fall on US profits news 

Shares in Costain, the UK construction and mining 
group, fell almost a tenth yesterday following 
a warning that US coal profits had been hit by 
bad winter weather and operational problems 
for the first three months of this year. Page 25 


Companies in this issue 


AB Foods 17, 24 

AGF 20 

API 24 

Ahold 18 

Air Canada 24 

Air Jamaica 20 

Automotive Precision 24 

BCP 18 

BPC 24 

Babcock Inti 24 

Banesto 20 

Bankers Trust 18 

Berliner Bank 21 

Brit Midland Airways 24 

Brown & Jackson 2S 

Brown (N) 24 

Bums Phflp 22 

COIR 17 

CS Holding 18 

Cedest 17 

ChortwaQ Land 26 

Cornwell Parker 25 

Costain 25 

Credit Lyonnais 20 

Creditanstalt 18 

DCC 26 

Daimler-Benz 17 

Dreyer's tee Cream 18 

Ban Corporation 25 

Section House 26 

Exptrtn Co Louisiana 10 

GE Capital 17 


Market Statistics 


^Annual reports sendee 28-29 

Benchmark Govt bomb 23 

Bond lutuvs end options 23 

Bond prtcs8 aid yields 23 

ComnxMes prices 26 

Dnratotas announced. UK 24 

a*S currency rates 34 

Euubond prices 23 

fixed Interest Indices 23 

FT-A World trices Beck Page 
FT Sold (fines Index Back Page 
FT/1SMA hfl tart sue 23 

FT-SE Actuaries Indices Z7 


Hambro Countrywide 
Heckert 

Hindustan Motors 

Holderbank 

Kemper 

Kingfisher 

| 

Lufthansa 

MEEPC 

MMT Computing 
Maid 

Meridien Biao 
Nest& 

PG&SI 

Pa r k land Group 

Pearl Group 

Pepkor 

Prowtfng 

FUR Nabisco 

Royal Bank Scotland 

Skflaw 

SoctetA Generate 
Sotheby's Holdings 
Swiss Lite 
Tabocaksra 

Technology Resources 

Tongaat-Hutett 

Transamerica 

Traub 

Usbome 

Volvo 

WM Company 
Winterthur 


Foreign exchange 34 

GDts prices 23 

LUfe equity options Back Page 

London stare service 28-29 

London trad opHono Back Page 

Managed lunds sanies 30-34 

Money markets 34 

New bid bond Issues 23 

Recent issues, UK 27 

Short-term kit rates 34 

US In tera ct rates 23 

World Stock Mteketa 35 


Chief price changes yesterday 


FRANKFURT piq 


GoUadnUt 

HAS 


650 + 10 

450 + 15 



Vila 935-20 

NEW YORK (S) 

Rises 

Kemper 59H + 2k 

McKesson 76 * 4 

Scnering-flouglt ETW + k 

Fade 

Gw 8* 96K - IK 

Mlp Morris S0H - lA 

AA Natan 6—1* 

New York prices at 1230. 

LONDON (Panes} 

Nfem 

Nphamric 42+4 

Body Shop 244 +7 

DA 140+9 

CtiyeaBt 172+6 

Beam Hmn 154+9 

Hot paagni 325S + 80 

Johnston Op 217 + 13 

Lpn HUge 52+3 

IMD 74 * 4 


pars cm) 

Mm 

GsopilpiqM 990 + 22 

fioc Generam 634 +7 

353 - 36 

512 - 13 

604 - 28 

MCMnB VD - 106 

TOKYO (Yen) 

Rbw 

General Sddm 1250 + 30 

Shorn Shefl 1410 + 30 

Suntano Motel 901+5 
Fane 

taUeN IQagp 1030 - 20 

Sony 5610-90 

Toyota MOW 1960 - 20 


Gnadtai pea iD7 - 6 


HoyM Bk Sect 426 + 


CBS0M1 30 

EuroDtanay S43 

EuMUHflMM 422 

Hantoptan KM) 138 

JonaonFry 246 

Kefer 122 

Ntnctaner IU B» 

Psddaid 220 


3W - 2» 

M3 - 20 


Daimler in $250m Singapore placing 


By Davfd Waller in Frankfurt 

Daimler-Benz, Germany’s biggest 
Industrial company, is planning 
to place S250m-$300m worth of 
new shares in Singapore when it 
holds its long-awaited rights 
issue later this year, the group's 
finance director said yesterday. 

Speaking before Daimler-Benz 
was today due to become the first 
German company to acquire a 
listing on the Singapore stock 
exchange, Mr Gerhard Liener 
said the planned share planamant 
would be part of the car to air- 
craft group’s strategy of interna- 


Kemper 
advisers 
seek higher 
offer 

By Richard Waters in New York 

Advisers to Kemper, the US 
investment group, were contact- 
ing other possible bidders for the 
company yesterday in an 
attempt to elicit a higher price 
than the $60 a share offered by 
GE Capital. 

The company’s board bowed to 
pressure over the weekend from 
GE Capital to agree a sale, after 
the financial services arm of 
General Electric raised its bid 
from $55 a share. 

“We axe hoping that we will 
get more than $60 a share - pos- 
sibly much more.'’ Kemper said. 
It added that it had received 
“several approaches” from 
potential bidders after GE Capi- 
tal first announced in March its 
interest in acquiring the com- 
pany, though it was premature 
to judge whether or not any of 
these companies would make a 
formal bid. 

However, Kemper's share price 
failed to rise above $60 yester- 
day, a sign that few traders 
think the investment group will 
attract a higher offer. The price 
reached the level of GE’s bid 
early in the morning, before slip- 
ping back to $59% - a gain on 
the day of $2%. 

The mix of Kemper’s business, 
and the fact that GE Capital has 
offered $2.4bn in cash, has left 
many traders convinced that the 
GE financial services arm will 
win controL 

Kemper's prize assets are its 
life insurance business and its 
mutual funds. Its $L.7bn prop- 
erty portfolio and a struggling 
retail stockbroking network, 
however, make it unattractive to 
many financial groups, which 
are still shaking off the effects of 
the late-1980s property crash. 

Other bidders could find it 
hard to match the all-cash ele- 
ment of the deal, and Hie share 
prices of most US financial 
groups have been under pressure 
since the Federal Reserve began 
raising rates in early February, 
undermining their stock as a 
takeover currency. 

Travelers, the acquisitive 
financial services group headed 
by Mr Sanford WelD, has been 
seen as the most likely rival bid- 
der. Hr Weill recently foresaw 
further consolidation among 
insurance companies and fond 
management groups in the US, 
and did not count out Travelers 
out as a buyer. However, the 
company (formerly known as 
Primerica) is still digesting two 
big acquisitions made recently - 
the takeover of the Shears on 
retell broker and the shares it 
did not already own in the Trav- 
elers insurance company. 

Lex. Page 16 


tionalising its shareholder base. 

Last year Daimler overcame 
German industry’s traditional 
objections to US-style accounting 
disclosure and became the first 
Ge rman company to obtain a foil 
listing on the New York Stock 
Exchange, the world's largest 
capital market 

The group plans farther list- 
ings in Madrid, Milan ar| rf Shang- 
hai, Mr i.ienpr said in Singapore 
yesterday. “With Singapore we 
have decided to introduce our 
stock on the most dynamic capi- 
tal market in this region of the 
world." he said_ 


Mr Liener explained that 
Daimler-Benz hoped to raise up 
to $2bn from the issue of new 
shares, of which at least 10 per 
cent would be placed in Singa- 
pore. The cash is required to 
finance the group's growth and 
the issue would take place later 
this year. Daimler disclosed 
recently. 

While 30 to 35 per cent of Daim- 
ler's shares are owned outside 
Germany, the group is pursuing 
further internationalisation 
partly in order to support geo- 
graphical expansion of its core 
car business. 


Mr liener hoped that the list- 
ing would support its rapidly 
growing sales in south-east Asia 
- revenues in the region rose 36 
per cent to DMl.Sbn ($S30m) last 
year. 

As part of its expansion, Daim- 
ler Is planning to open a Regional 
Parts Centre in Singapore. This 
would provide support for the 
group’s commercial vehicle activ- 
ities in the region. 

Mr Liener said the group expec- 
ted to double its sales of commer- 
cial vehicles in Singapore, Thai- 
land, Malaysia, Taiwan, Hong 
Kong and the Philippines this 


year. The group has also received 
nffirial permission to start assem- 
bling buses and commercial 
vehicles in Vietnam, said Mr Lie- 
ner. 

While Daimler has been 
roundly denounced in Germany 
by other large companies for Its 
unil ateral move in listing its 
shares in New York, German pri- 
vate and public sector institu- 
tions are making increasing use 
of foreign investors as a source of 
finance. The most recent example 
is Dresdner Bank's international 
placing of new shares to raise 
DMl.l4bn, concluded last Friday. 


David Waller reports on state-owned Lufthansa’s privatisation plans 


T here is nothing Mr jftrgeo. 
Weber, chief executive of 
Lufthansa, dislikes more 

than h parin g tha flo rman airWn p 

described as “state-owned". 

“It suggests that we are inflexi- 
ble and bureaucratic,” he filmed 
as he explained his privatisation 
plans In Frankfurt last week. 

After a massive reorganisation 
over the past two years, with fur- 
ther rationalisation to come, the 
airline no longer deserves the 
stigma of state ownership, Mr 
Weber claimed. 

Indeed, his dream of a private 
sector Lufthansa will shortly 
become a reality as a result of a 
complex deal with the govern- 
ment over pension arrangements 
for the airline's past, present and 
future employees completed last 
week. 

The mechanism for the move 
away Dram state control will be a 
long-awaited rights issue in 
which the government will not 
participate. By forgoing its rights 
to new shares, the government's 
stake wiQ fall from 5L42 per cent 
towards 40 per cent 
The rights issue is likely to 
take place soon after the airline's 
annual meeting in early July. 
Later in the year, the govern- 
ment will start to sell off its 
remaining stake, Mr Theo Wai- 
gel, finance minister, said last 
week. 

Mr Weber says the transition 
to the private sector will allow 
T Lufthansa to undergo a metamor- 
phosis as spectacular as that of 
British Airways, the former UK 
state-carrier which has evolved 
into one of the world's most suc- 
cessful airlines since it was priva- 
tised in 1987. 

Mr Weber, an anginaM who 
became the airline's chief execu- 
tive in 1991, believes that the 
world airline industry, still 
groaning with overcapacity as it 
emerges from years of heavy 
losses, is due for further rational- 
isation and concentration. By the 
end of the century, the industry 
will be dominated by a small 
number of internationally com- 
petitive airlines. 

A private sector Lufthansa will 
be one of the survivors, Mr 
Weber maintains. 

Although the stock market did 
not appear to share Mr Weber’s 
optimism last week — Lufthansa’s 
shares dropped 6-5 per cent on 
Thursday to DM206.50 - this fol- 
lowed a long period of outper- 
formance for the airline's shares, 
which have more than doubled 
since the beginning of last year, 
reflecting investors' enthusiasm 
for Mr Weber’s rationalisation 
plans. 

The restructuring began in 
1992 after the airline incurred a 
pre-tax loss of DMSOOm ($175m) in 
the previous year. “We were an 
the brink of running aground, " 
Mr Weber said. “It was essential 
to put the ship back on the right 
course”. 

Mr Weber explained the three- 
pronged strategy for guarantee- 
ing the airline's survival: 

• Cost-cutting. Lufthansa 


Germany’s airline ready 
to spread its wings 





Taxiing into position 


Recant performance and outlook Lufthansa group 
ProAtfleos (DMm) 

300 



Jargon Weber chairman 
Passenger revenues (PMnfl 

3500 : 

3600 
2500 


ftoraonmi expenses (DMm) 
1200 




Q1 02 Q3 Q4. 

1998 

Sauce; KfeMMorf Beoaoft 

reduced its costs by DMlbn in 
1992 and by a further DM500m 
last year, leading to a 15 per cent 
increase in productivity. 

The airline trimmed its work- 
force from 48.000 at the beginning 
of 1992 to below 40,000 now and 
reduced the cost of materials by 
DM350m a year. The aim is to cut 
costs by another DM500m a year 
by 1997. 

• The airline introduced new 
measures to boost revenue, rang- 
ing from encouraging higher 
standards of customer service to 
introducing products such as the 
Miles and More frequent flier pro- 
gramme. 

These measures helped the air- 
line Increase the number of pas- 
sengers carried last year by 3.8 
per cent and the volume of 
freight by 5.4 per cent This offset 
falling prices, and turnover for 
the parent company was Oat at 
DM15bn, the same as in 1992. 

• A new approach to partner- 
ship arrangements with other air- 
lines. 

“Rather than seek to do every- 
thing on our own we decided to 
grow in co-operation with other 
airlines,” said Mr Weber. 

The most tangible example of 
the new strategy was the link-up 
with United Airlines from the 
beginning of the current year 
which gave Lufthansa a long 
sought-after transatlantic part- 
nership. 

The full impact of these mea- 
sures on the airline's financial 
position will become more clear 
next week when Lufthansa 
releases its 1993 group-wide fig- 
ures. A hint of what is in store 
was provided in March when 
Lufthansa announced that the 


02 03 

1992 


parent company cut its losses 
last yearfram DM296L9m in 1992 
to DMSOm last year while net 
losses dropped from DM372.8m to 
DM1 10m. 

As for the current year. Mr 
Weber said that the airline 
enjoyed better than expected 
results in the early part of 1994 
and was on course to break even 
at an operating level for the full 
year. 

The spectacular share price 
performance over the past 18 
months bints at greater things to 
come. “With the government as 
majority shareholder, the airline 
is still operating with one hand 
tied behind its back.” said Ms 
Nuala Corry and Mr Graham 
Moynes at NatWest Markets in 
London. “One gets the feeling 


that they are itdnng to do a lot 
more to reduce costs." 

Mr Andrew Barker at SG War- 
burg in London says further cuts 
are necessary as costs are still 
high by international standards - 
at $54,440, labour costs per 
employee are 15 per cent higher 
than BA and 19 per cent higher 
t ha n at klm_ 

Aware of the political sensitivi- 
ties of cutting jobs. Mr Weber 
says that the main impact of pri- 
vatisation will be "the psycholog- 
ical effect on employees and cus- 
tomers”, not the opportunity to 
cut costs. But he is acutely aware 
of the harsh competitive environ- 
ment in which airlines operate 
and a private-sector Lufthansa Is 
likely to make further swingeing 
job cuts. 


Swiss bid 
values 
Cedest at 
FFr2.6bn 


By Ian Rodger In Zurich and 
Alice Rawsthom in Paris 

Holderbank. the Swiss-based 
international cement and aggre- 
gates group, is making an agreed 
bid for the cement, ready-mixed 
concrete and aggregates 
operations of Ciments et Engrais 
de Dannes et de I’Est (Cedest), 
for FFr2.6bn (S456m). 

The takeover, which Is subject 
to approval by the French and 
European Union authorities, 
would double Holderbank's 
cement capacity In France. It 
wonld also raise its market share 
in northern France from 25 per 
cent to 35 per cent. However, it 
would still leave the group 
ranked third after Ciments 
Lafarge and Ciments Fran pais. 

Hie plan is for Holderbank to 
acquire 84.1 per cent of the share 
capital of Cedest from Compag- 
nie G4n£rale d' Indus trie et de 
Participations (CGIP), at 
FFr2,000 per share ex-dividend 
for a total of FFr3.6bn. 

Holderbank would simulta- 
neously sell the abrasives and 
fertilisers business units of 
Cedest back to CGIP for FFrlbn. 

Then, once official approval 
was achieved, it wonld make an 
offer on the Paris bourse to 
Cedest minority shareholders at 
the same price. 

Holderbank said the acquisi- 
tion wonld “round off” its hold- 
ings in France. Cedest is 
France's fifth-largest cement pro- 
ducer with a total annual pro- 
duction capacity of 2.7m tonnes. 
It also owns a cement grinding 
station on the island of La 
Reunion with annual capacity of 
400.000 tonnes. 

In 1993, it sold 2.1m tonnes of 
cement, 1. 7m tonnes of ready- 
mixed concrete and 3.2m tonnes 
of aggregates. 

For CGIP, the Cedest deal 
forms part of a programme of 
asset sales. The French group 
has for some months been frying 
to generate capital to replenish 
its resources, following a deal 
last year which lifted its holding 
in CarnaudMetalBox, the 
Anglo-French packaging group. 

CGIP has a string of other 
investments, including a stake in 
Cap Sogeti Gemini, the computer 
services concern. The group ear- 
lier this year raised FFr994m 
from a convertible bond issue. 

The Cedest disposal has left 
CGIP with a “war chest" worth 
around FFr3bn, according to the 
company. It said it planned to 
use its cash to “further develop” 
its role as an “entrepreneur 
investor” in manufacturing 
industry and the service sector. 


This announmnmt appeals at a mattrr nrvrd only 


Weston family plans big 
share shake-up at AB Foods 


COMNIERCIALBANK OF GREECE 

Commercial Bank of Greece S A. 

US $200,000,000 
Sale and Repurchase Facility 

Arranged and Lead Managed by 

The Mitsubishi Bank, Limited 


Co- Arrangers and Lead Managers 


ING Bank 


Standard Chartered Bank 


Bank of America NT&5A 


By Maggie Urry In London 

Minority shareholders of Asso- 
ciated British Foods are to be 
offered equivalent shares in a 
newly quoted company and a IQp 
a share special dividend as part 
of the reorganisation of the 
group’s ownership. The milling, 
baking, sugar and other food 
products group is controlled by a 
hierarchy of private companies 
5mrt trusts ami a charitable foun- 
dation. 

The reorganisation is part of 
the Weston family's desire for 
better long-term financial plan- 
ning. Much of the family ’s sub- 
stantial wealth is tied up in two 
unquoted companies, Wlttington 
Investments and George Weston 
Holdings, the latter having £238m 
($335m) in cash which cannot be 
passed to family members In a 
tax-efficient manner. 

The plan will release £130m to 
the family and give its members 
some shares in the new quoted 
company which will replace AB 


Foods. They have promised not 
to sell shares for two years, 
except in special circumstances. 

The Garfield Weston Founda- 
tion, a charity which is the ulti- 
mate controller of AB Foods, will 
increase its indirect stake in the 
company from 36 to 40 per cent 

AB Foods was founded after 
the First World War by Mr Gar- 
field Weston, son of Mr George 
Weston, a Canadian business- 
man. Mr Garfield Weston had 
nirm children, all of whom are 
stiH alive. The fourth of these is 
Mr Garry Weston, chairman of 
AB Foods, and himself the father 
of six children, three of whom, 
work for AB Foods. About 40 
family members are involved. 

Mr Garry Weston has just 
turned 67, His younger brother, 
Mr Galen Weston, 53, heads 
George Weston Foods, a separate 

fianattian rnrnpany 

Apart from Mr Garry Weston 
and his children, vi rt u ally an the 
family Is resident in Canada or 
the US. The increasing ages of 


the nfap siblings have mad e the 
need for financ ial planning more 

urgent 

Mr Garry Weston said yester- 
day the family intended always 
to retain control of AB Foods. 

Analysts expect him to remain 
chairman for at least another 
four years, by which time he will 
have served 50 years with the 

mm parry anrl 31 as nhalrman. 

They believe he will be suc- 
ceeded by Mr Guy Weston, his 
eldest son and currently manag- 
ing director of Ryvita, the job Mr 
Garry Weston had at 23. 

The plan did not meet a warm 
reception in London and AB 
Foods shares fell 15p to 584p. 
Some ascribed this to disappoint- 
ment that AB Foods was not 
ftrmrarnrrng 1 a large takeover deal 
to use its substantial cash hold- 
ings. 

Mr Garry Weston admitted the 
group was looking at an acquisi- 
tion in the US, and "other things 
in other places”. 

Lex, Page 16; Details, Page 24 


Lead Managers 

Deutsche Bank Luxembourg S-A. Generate Bank S.A./N.V. 

Nomura Bank Nederland N.V. 


Credit Industrie! et Commercial 
Gulf International Bank BSC. 


Managers 


Co- Manager* 


BACOB Ireland p.Lc. 


Credit Suisse 
Sod£h§ Generate London Brandi 


Den Danske Bank 


UBAF Bank Limited 


Portia pants 

Banes CRT SpA. Loudon Branch Lyonnaise de Banque 

Rabobank Nederland, London Branch 


Facility Agent 


The Mitsubishi Bank, Limited 


Staraink 









18 


FINANCIAL TIMES TUESDAY MAY 10 1994 


INTERNATIONAL COMPANIES AND FINANCE 


Nabisco buys out partner 
in Spanish joint venture 


Frustration as Austrian government stalls on Creditanstalt stake sale 

CS Holding goes cold on bank deal 


Erste Oesterrrichische Spar-Casse (First Austrian) has joined the 
local consortium formed to bid for a large minority stake in 
CreditanstaltBaiikverein from the Austrian government, writes 
Ian Rodger. 

Earlier this month, CS Holding was confirmed as the finanre 
ministry's preferred buyer for a large part of its 49 per cent 
holding of Creditanstalt’s capital (with 70 per cent of foe voting 
rights). 

This sparked renewed efforts in Vienna’s business community 
to prevent Creditanstalt, foe flagship bank of Austria’s “black" 
(Conservative) partisans, from felling into foreign hands. 

First Austrian, the country’s fourth-largest and also a “blade" 
bank, said yesterday It was ready to buy “a few per cent" of the 
Creditanstalt shares as part of a consortium led by EA-Generali. 


for Tom Bums In Madrid 

RJR Nabisco, the OS food and 
tobacco group, yesterday exer- 
. cised its option to buy the 
remaining 50 per cent of RJR 
Alimentackm, the Spanish food 
company that it has managed 
for the past year as a joint ven- 
ture with Tabacalera, Spain’s 
state-controlled tobacco corpo- 
ration. 

The purchase of the stake, 
which values the company at 
Ptal7.25bn (9125m). signals the 
end of an ill-fated attempt by 
Tabacalera to diversify into 
food production. 

The US multinational had 
until March 31 1995 to exercise 
its option for the rest of the 


By Ian Rodger 

Nestle, the world’s largest 
foods group, is buying a sub- 
stantial minority stake in 
Dreyer’s Grand Ice Cream of 
Oakland , California, for 9106m. 

Nestle has agreed to buy 3m 
Dreyer’s shares at 932 a share, 
plus warrants to purchase a 
further 2m shares at foe aam* 
price later. 

The 5m shares would give 
Nestle a 22 per cent stake in 


for Norma Cohen In London 

Bankers Trust, the US-based 
bank, has replaced the long- 
time chairman of WM Com- 
pany, its performance measure- 
ment subsidiary, with a senior 
banking official. The move is 
aimed at building a “global” 
business selling its services to 
other bank clients. 

In particular, it would like to 
offer performance measure- 
ment to clients of its global 
custody operations, which offer 
safekeeping for securities. WM 
could expand its client list by 
offering performance measure- 
ment to US and European pen- 
sion funds, for whom it is the 
global custodian. 


joint venture. Its decision to 
act now is part of a plan to- 
strengthen its European food 
businesses. 

RJR Alimentaci6n markets 
Royal Brands products in 
Spain. These include leading 
biscuit and powdered puddings 
brands. 

The core Royal Brands prod- 
ucts were bought by Tabacal- 
era from Nabisco when the US 
conglomerate sold off extensive 
operations, among them its 
European businesses, in the 
late 1980s. The sales were 
designed to pay off debts used 
to finance a leveraged buy-out 
by Kohl berg- Kravis Roberts, 
the Wall Street investment 
firm. 


Dreyer’s, which is quoted an 
the Nasdaq over-the-counter 
market 

The first part of the transac- 
tion would cost Nestfe 9106m 
and give it foe right to name 
two Dreyer’s directors. 

The two companies have 
agreed that Dreyer’s will dis- 
tribute Nestle frozen novelties 
and Ice cream in selected mar- 
kets from next year. 

Dreyer’s, which sells under 
foe Dreyer’s and Bely’s brand 


Mr Charlie ESley, manag in g 
director of Bankers Trust Com- 
pany and vice-chairman of 
Bankers Trust International, 
will be chairman, replacing Mr 
Dougald Eadie, who will 
remain as a non-executive 
director. Mr Eadie, who has 
been with WM since 1968. was 
chiefly responsible for develop- 
ing its computer systems. 

Mr Kfley will be dividing bis 
time between WM and other 
duties. 

Bankers Trust, which has 
been reviewing its London 
operations, has a strategy of 
pursuing businesses along 
global lines. “We made foe 
changes because we would like 
to use WM more globally, and 


Tabacalera spent some 
Pta53bn building up a food 
division around Royal Brands, 
taking on canned vegetable 
units, processed meat Anns 
and juice companies, before 
dat-iding that it was more prof- 
itable to concentrate on 
tobacco. In July last year, it 
transformed its Royal Brands 
units into RJR Alimentacidn, a 
Nabisco-managed joint 
venture. 

Having disposed of its food 
division earlier than planned, 
Tabacalera, which is 38 per 
cent owned by foreign institu- 
tions, is expected to step up a 
stream linin g programme 
involving staff cuts and the 
closure of three of its 14 plants. 


names, had consolidated net 
sales for the 13 weeks to March 
26 of 9112m, 9 per cent higher 
than in the same period last 
year. Net income was down 
25.7 per cent to 91.58m, or 11 
cents per common share. 

Dreyer’s said it was embark- 
ing on a five-year plan to accel- 
erate foe sales of its branded 
products. It was increasing its 
consumer marketing efforts 
and ex panding its distribution 
system. 


knit it into services such as 
custody more than it is," the 
company said. WM Company, 
whiCh it acquired in 1987. has 
remained largely a UK busi- 
ness, and is a leading provider 
of performance measurement 
services to pension 
funds. 

Bankers Trust bought WM 
partly in the hope that its cli- 
ents would use the bank’s 
index-tracking fund manage- 
ment services, which are 
among the largest in the . US. 
However, the desired synergy 
did not matpriah»» and Bank- 
ers Trust sold its UK-based 
index-tracking fund manage- 
ment business to Invesco ear- 
lier this year. 


Winterthur 
lifted by 
non-life 
business 

By Ian Rodger 

Winterthur, the Swiss 
insurance group, has reported 
a 31-3 pa- cent jump in 1993 
consolidated net income to 
SFr324.4m (9281.7m), due to 
vigorous growth in non-life 
business and substantial prof- 
its on investments. 

The directors are recom- 
mending a 14 per cent rise in 
the dividend to SFrl6 a share. 

Consolidated gross premi- 
ums rose 5.6 per cent to 
SFrl6.4bn in spite of the 
appreciation of foe Swiss 
fame. 

Pre-tax profit soared 29.5 
per cent to SFr5ll8m. 

fix the non-life business, 
gross premiums grew by 8 per 
emit and pre-tax profit jumped 
308 per cent to SFz346.1m. 

Premiums in the life busi- 
ness advanced only 1.6 per 
cent, due to foe recession and 
exchange rate effects, but foe 
pretax profit surged 278 per 
cent to SFrl.65.2m, doe to an 
“excellent financial result" 
and an improved expense 
ratio. 

• Swiss Life, a leading Swiss 
life insurer, said its consoli- 
dated surplus income in 1993 
rose 1.4 per cent to SFn.4bn. 

Earned premiums were up 
10.4 per cent to SFr98bu and 
investment income advanced 
15-2 per cent to SFr48bn. 

Swiss Life is a cooperative 
joint stock company and by 
statute must use its surplus 
income to improve or reduce 
the cost of insurance cover. 

The directors have agreed to 
raise the dividend on the 
quoted participation, certifi- 
cates to SFr7 from SFrfl. 

Kingfisher chief 
in 52% pay rise 

Sir Geoffrey Mulcahy, 
executive chairman of UK 
retail group Kingfisher, a 52 
per cent increase in pay to 
£18im (9185m) last year to 
make him one of the UK’s 
highest-paid directors, writes 
Neil Buckley in London. 

Sir Geoffrey, has gamed a 
reputation as one of the UK’s 
most astute retailers through 
bis stewardship of Kingfisher. 


By [mi Rodger 
in Zurich 

Mr Rainer Gut, chairman of CS 
Holding, foe big Swiss interna- 
tional financial group built 
around Credit Suisse, may well 
be wondering if he has been 
used by Austria’s financial 
establishment 

Speaking In London earlier 
tins month, Mr Gut put an mid 
to months of speculation in 
Vienna by confirming that his 
group was interested in buying 
from ihp Austrian finance min- 
istry a large part of its control- 
ling stake in Creditanstalt- 
Bankverein, the country’s 
second-largest bank. 

He went further, saying that 
if CS bought, say, a 28 per cent 
stake initially, it would ulti- 
mately fik* to tak»» fail control 
of the bank. As he put it “I do 
not like to be half pregnant" 

That brought a dusty 
response from Creditanstalt’s 
chief executive, Mr Guido 
SchmidfrChiarL “We would be 
the only i«»rirng commercial 
bank in the developed world 
that would be controlled from 
abroad,” he said. 

The hank ’s new supervisory 
board chairman, Mr Walter 
Fremuth, chimed in. “We do 
not need to find a partner. We 
can live without one." 


By Ronald van de Kroi 
In A n i sim da m 

Ahold, the Dutch-based food 
retailer, has forecast an 
improvement in first-quarter 
net profits against last year's 
result. The prediction follows 
the release of figures yesterday 
showing that sales, excluding 
value added tax, rose by 8 par 
cent, to F188bn (94.6bn), in the 
first 16 weeks of the year. 

The company, which is due 
to publish quarterly figures on 
June 16. said its supermarket 
operations in the US, the 
Netherlands and other parts of 
Europe were expected to post 
higher operating profit 

Sales in foe US, which 
accounts for about half of turn- 
over, rose by 55 per cent in the 
quarter. In the Netherlands, 


It has long been known that 
Mr Schmidt-Cbiari would like 
the finance ministry's stake to 
be widely dispersed among 
domestic and foreign investors. 

He and his colleagues put 
together a proposal to do just 
that last autumn, when Credi- 
tanstalt shares were still 
among the most popular on the 
Vienna stock wrhangpi 

Mr Ferdinand Ladna, the 

fmanr* minister, rejected the 

proposal, even though he 
needed funds from privatisa- 
tion to prevent foe public defi- 
cit from reaching unacceptable 
levels. 

Mr T ^cina has little confi- 
dence in Creditanstalt, and 
believes that a strong partner 
is needed to prevent it from 
g a lli n g info trouble a gain. 


turnover was up 3 per cent, 
while sales in the rest of 
Europe, which are small com- 
pared with US and Dutch turn- 
over, jumped by 488 per cent, 
reflecting recent acquisitions 
in Portugal. 

Mr Cees van der Hoeven, 
president, speaking ahead of 
yesterday's annual sharehold- 
ers’ meeting, said two of the 
group’s five US chains, Finast 
Ohio and Edwards, were expec- 
ted to return to profit in 1994 
after losses in 1993. Ahold’s 
three other chains , Bi-Lo, Tops 
and Giant, were profitable last 
year. 

The company recently 
acquired a sixth chain. Tennes- 
see-based Red Food Stores, for 
9124m plus S5m in debt Red 
Food will not contribute to 
Ahold’s 1994 profits. 


The bank has suffered huge 
losses twice in the past 15 
years. 

Standard & Poor’s, the inter- 
national credit rating agency, 
seems to share Mr Larina's 
view. It said last week that loss 
of government control of Credi- 
tanstalt, if not replaced by a 
strong controlling shareholder, 
might have a negative impact 
on the bank's rating. 

Creditanstalt directors, 
aware of Mr Larina’s view, 
have tried in recent months to 
rally an Austrian consortium, 
built around EA-Generali. the 
insurance group, to buy a large 
part of the government’s 
holding. 

This is an outcome that 
could also satisfy Mr Larina, as 
it would eliminate complaints 


By Christopher Brown-Humes 
In Stockholm 

BCP, the Swedish consumer 
products group which Volvo is 
to sell, yesterday announced a 
SKi296m (938.44m) profit after 
finaTiriai items for the first 
three months. 

The result compares with a 
profit of SKr333m in the samp 
period last year when the 
result was boosted by a 
SKr350m gain from a disposal. 

BCP was formed in late 1992 
after foe break-up of Procordia, 
a drugs- to-f oo d group jointly 
controlled by the Swedish state 
and Volvo. Volvo owns 74 per 
cent of the company and has 
launched a bid for foe balance. 
It then intends to sell the 
gro up - to focus on transport 

BCP includes Swedish Match 


of a foreign sell-out 

However, as with other 
recent attempts to mobilise 
Austria’s conservative finan- 
ciers to action, progress has 
been slow, to say the least. Mr 
Gut’s intervention may have 
been just foe thing to galvan- 
ise them into action. Tbe word 
from the EA-Generali camp 
yesterday was that a formal 
offer would be made at the aid 
of this week. 

Even if an Austrian offer 
does not materialise, it is 
unlikely that CS will pursue its 
suit An official said foe group 
would not want to get involved 
with a bank whose manage- 
ment did not want it. 

CS's recent acquisitions In 
Switzerland, including the big 
SFrl.6bn (9Ubn) takeover last 
year of Swiss Volksbank - 
which, coincidentally, is only 
slightly smaller than Creditan- 
stalt - have shown that Inte- 
gration can be difficult even 
when the top management of 
both sides are fully supportive. 

Without that support, a take- 
over can be disastrous. 

Again, Standard & Poor’s 
seems to share that view. It 
said on Thursday that an 
involvement by CS with Credi- 
tanstalt would probably have 
an adverse effect on the rating 
of Credit Suisse. 


and many of Sweden’s best- 
known food and drink brands. 

BCP’s first-quarter group 
income fell 4 per cent to 
SKr4-85hn, reflecting foe sale 
of Swedish Match’s confection- 
ery activities. Operating 
income dropped to SKr322m 
from SKr-UOm. 

Swedish Match saw sales fell 
to SKrl.77bn from SKrl96hn, 
but profits from continuing 
activities more than doubled to 
SKr255m from SKrll8m. The 
improvement stemmed from a 
recovery in Swedish tobacco 
sales. 

Procordia Food & Beverages, 
the group’s other main divi- 
sion, saw sales expand to 
SKr284bn from SKi284bn. but 
profits from continuing 
operations fell marginally to 
SKr59m from SKrfi2m _ 


Nestle pays $106m for stake 
in US ice-cream maker 


Bankers Trust replaces WM chief 


Sales rise expected 
to lift Ahold profit 


BCP tops SKr296m 
for first quarter 


SKF at the cutting edge 



The world leader in rolling bearings, SKF breaks its own record for 
manufacture of the heaviest single-piece slewing bearing. 

Weighing 45 tonnes - some 20% more than the last record breaker - and 
7.2 m in diameter, this giant bearing manufactured by SKF, RKS S.A. 
(France) is for the cutting head of a shield tunnelling machine being built 
by Hitachi Zosen Corporation in Japan for the 14 m wide and 10 km long 
Tokyo Bay road twin tunnel project. 

A major supplier of high performance bearings for tunnelling machines, 
SKF has also been at the cutting edge on projects in; Switzerland, 
Denmark between the islands, the Anglo-French Channel Tunnel. China 
(Shanghai), Portugal (Lisbon), Greece (Athens), and France (Lyon, Lille). 

SKF Interim Statement 

SKF's consolidated income after financial income and expense for the 
first quarter of 1994 amounted to 306 million Swedish 
kronor (£26m), an improvement ofSEK 661m (£58m), 
compared with the first quarter of 1993. Compared with the 
last quarter of 1993. the improvement was SEK 266m 
(£22mf Group sales during the period totalled SEK S 052m 
(£673m) against SEK 7 205m ( £654m ) for the first quarter 
of 1993. This reflects a volume increase of approximately 
10 per cent. 

The improvement in demand for the Group s products noted 
in Europe during the second half of 1993 continued during 
the first quarter of 1994. The recovery in the European 
economy means that SKF's most important market is now 
on the way up again efter four years of decline. 

The automotive industry, including cars, buses and trucks, 
accounted for a significant portion of the increase in volumes. 

SKF noted increased sales particularly in the German, Swedish. Italian 
and Spanish markets. Sales to manufacturers of heavy trucks showed 
highly favourable development. SKF sales to the automotive industry in 
the North American market also developed positively 

The Group’s inventories amounted to 29.6 percent of total sales, meeting 
the Group’s goal of reducing the inventory to sales ratio to below 
30 per cent. Accordingly, the Group has now set a new goal of 25 percent 

Forecast 

Based on current economic conditions, the SKF Group estimates that U 
will achieve income afier financial income and expense of approximately 
SEK 1 billion (£S4m) in 1994. 

Average rate of exchange 

JMi - March 1994 I GBP= 11.96 SEK 

Jan - March 1993 1 GBP = 1 1.02 SEK. 


For a copy of the 1993 Annual Report, please contact SKF Group Public Affairs. S-415 50 Gfiteborg, Sweden. Tel: +46-31-3710 00 





• ' V 


s S’Kr2 


t : *: 


uii ier 


FINANCIAL TIMES TUESDAY MAY 10 1994 


19 



Afui ro ml by Mnrgm Sordty £r Ca. I m p muum J Liratni a aml«r oi ihr <<oirtaa axj f 


''V • ***••** . ■ • . 

by Mmym Sunlry rtarr p v cr rcd frr^f mt >4 Morcm Semin Cin«r Inc 


And the bond market thought you were dead in the water. 




A few months ago that might well have been right. 

Your credit rating had been lowered. Your spreads were twenty basis points too wide. And the 
market could not appreciate your true value. 

Trying to raise capital with a laige new issue at that point would have been far too expensive. 

That’s why you turned to an investment bank known for innovative thinking as well as for 
market power. 

They advised you to be both cautious and bold. 

The strategy: Before coining out with a new issue, re-establish your presence — and your true 
standing — in the marketplace. 

To make that strategy work, they used the firm’s considerable resources. Scores of professionals 
personally contacted hundreds of your bondholders around the world. 

They listened carefully, then designed a programme to provide investors with an attractive 
alternative to their illiquid bonds. 

The success of the programme tightened your spreads and created a new benchmark. More 
importandy, by going to the extraordinary measure of approaching these institutions and individuals, 
the firm was able to identify the potential investors for your bonds and determine the market level for 
your credit. 

Armed with this extensive intelligence, they helped you establish the precise structure and 
price — as well as create demand — for a large new bond issue. 

Which you are about to surface. 


MORGAN STANLEY 


Chicago 


Frankfort Hong Kong London 


Los Angeles Luxembourg Madrid Melbourne Milan New York Paris San Francisco Seoul Singapore Taipei Tokyo Toronto Zurich 



















20 


Redemption at the Option of the Noteholders 

St George Bank limited 

( incorporated in New South Wales) 

(A-C-N. 055 513 070) 

(Previously known a a St- Gcocge ftlik fi ng Society Ltd.) 
{AJt-B-N. 051 508 313) 

U.S4 100,000,000 
Floating Rate Notes due 1998 

(the “Nora') 

NOTJqE IS HEREBY GIVEN in acconlnncc with CunJltinn 6(3) of the 

Tema and Coftjltions of' the Notes, any Noteholder may require the issuer 
co redeem any Note heU by judi NocehoUer ac its principal amount: 

On the Interest Riymctu Date fulling In Auguff 1994 or August 1996. To 
require rhe Issuer to redeem Notes on any Inrenat Payment Date as pro- 
vkfcal above a Noteholder should complete, sign and deposit u Redemption 
Notice together with the Notes with oil unmaturai coupons appertaining 
thereto at the specified office of any Paying Agent, nut less than 30 nur 
morc chan60thrys' prior to such Interest ftrynunu Date. Any such exercise 
of the opdon shall be irrevocable. and any Note once so deposited may not 
be withdrawn, in each case without the prior written consent of the Issuer. 
P rinci p a l Paying Agmtt 
Bankets Trust Company 
t Appold Street 
Bnad&te 
London ECZA 21 IE 


Swiss Bank Gxporaciun 
1 Aeschenvorsait 
□ 1-4002 Basle 


Bankers Trust Luxembourg S A. 
14 Boulevard F.D. Roosevelt 
L-Z450 Luxembouig 


□ Banker* Trust 
Company, London 
(Och May; 1994 


Agent Bank 


3i International B.V. 

£150.000,000 
Guaranteed Boating rate 
notes 1999 

The notes will bear interest at 

SJS0% peranmm for the interest 
period 6 May 19D4 to 31 May 1394. 
Interest payable on 3! May 1994 
taiU amount to S37.67per 
SJO.OOO note and S376.71 per 
SI00,000note. 

Agent: Morgan Guaranty 
Trust Company 

JP Morgan 


The Republic of Panama 

U5S408.036.000 
Floating rate serial notes 
1996-2002 

The notes win bear interest at 
5.9375* per annum for the 
interest period IQ May 1994 to 
to November 1994. Interest 
payable on K) November 1994 
will be USS30.35 per 
US$1000 note. 

Agent; Morgan Guaranty 
Trust Company 

JPMorgan 


TEMPLETON GLOBAL {STRATEGY SICAV 
SodftldT m w figMU tttl Capital Variable 
2, boulevard Royal, Luxembourg 
RX1 Lasanbotng B - 35117 

DIVIDEND ANNOUNCEMENT 

TEMPLETON CHjOBAL STRATEGY SICAV will pay on May 13. 
i 1994 the following dividends against presentation of the respective 
coupons: 


Te mp leton Global Income Bind: 
Templeton DM Global Bond Fund; 
Templeton Emerging Markets 
Fixed Income Fund: 

I Templeton Haven Fund: 

1 Templeton US Government Fund: 

Paying Agent in ] 


USD 

DEM 

USD 

CHF 

USD 


0.14 

0.14 

0.17 

0.08 

0.04 


coupon no 10 
coupon no 10 

coupon no 9 
coupon no 8 
coupon no 30 


. , jtf L 

Luxembourg 

j The funds are traded ex-dividend as from May 6, 1994. 

For a ny qu eries, shareholders are invited to contact Templeton 
investment Management Limited - Edinburgh, Tel: 031-469 4000. 

The Board of Directors 
Luxembourg, May 1994 


FINANCIAL TIMES TUESDAY MAY 10 1994 

INTERNATIONAL COMPANIES AND FINANCE 


h 


State sells 70% 
of Air Jamaica 


By Canute James in Kingston 

The Jamaican government has 
sold 70 per cent of Air Jamaica 
to a consortium of local and 
Canadian Investors for 

US$ 26 J 5 m. 

The disposal is the first of 
what is expected to be a 
series of skies of several 
of the Caribbean’s loss-making 
carriers. 

A further 5 per emit of Air 
Jamaica will be offered to 
employees with the govern- 
ment retaining 25 per cent. 

The government will take 
responsibility for all liabilities 
which exceed the value of the 
current assets, said Mr 
P. J. Patterson, Jamaica’s 
prime minister. 

“Liabilities far outweigh 
assets and the government will 
be writing off a significant 
amount,” said a company offi- 
cial 

The consortium taking con- 
trol of Air Jamaica says the 
carrier will be capitalised at 
$52L5rn, and that the funds will 
be raised from Jamaican and 
Canadian sources. 

The government has been 
trying to find a buyer for 
Air Jamaica for four years. 
The airline has recorded 
continuing losses, including a 
deficit of just over $20m last 
year. 

The deal coincides with a 
move by several other Carib- 
bean governments to merge 
their airlines. They have 
Invited British Airways to take 
a 25 per cent stake in the 
venture. Regional, officials say 
that BA is carrying out a feasi- 


bility study of the schema 

The governments intend to 
start with the merger of the 
operations of Air Jamaica and 
Trinidad and Tobago Airways 
Corporation, which runs BWIA 
International. 

The new regional company 
will later be expanded with the 
inclusion of Bahamasair, the 
Guyana Airways Corporation, 
and Leeward Islands Air 
Transport (LIAT), an island- 
hopping commuter airline 
which is owned by several gov- 
ernments. 

Regional governments will 
have a minority stake in the 
new company which will run 
the airlines. The plan is for 
large airlines and regional pri- 
vate business to hold a major- 
ity of the new company’s 
equity. 

A study commissioned by 
the Caribbean Community 
indicated that a rationalisation 
of the region's air transport, 
with shared services and a sin- 
gle company running the five 
airlines, would lead to savings 
of 860m a year. 

None of the airlines has been 
an attractive proposition, 
mainly because they have no 
record of financial viability. 
There is little to indicate that 
their operational efficiency can 
be significantly improved. 

Air Jamaica has a fleet of 
eight It plies routes between 
the island and several eastern 
and south-eastern US cities. 
BWIA has a fleet of 11. Its 
accumulated losses over the 
past six years have been put by 
company officials at “about 

$165m”. 


Transamerica in $200m 
share buy-back move 


By Richard Waters 
in New York 

Transamerica, the San 
Francisco-based financial ser- 
vices group, is planning to buy 
back 45m of its shares in a 
deal worth more than $2Q0m. 

Like other financial services 
stocks, Transamerica has been 
hit by rising interest rates in 
recent weeks. Its shares sided 
last week at ¥51%, down from a 
high of $62%. 

News of the buy-back 
spurred a rise in the stock in 
New York yesterday morning, 
to $52%. 

The company announced a 


Dutch auction for the stock, 
under which holders are bang 
invited to tender their shares 
at between $48 and $55. 

Transamerica will then pay a 
single price for the stock it 
buys, set at the lowest level 
which allows It to reach its tar- 
get of 45m shares. 

The offer r emains open until 
June 6. 

Standard & Poor’s, the rat- 
ings agency, said the compa- 
ny's capital structure would 
remain strong even after pay- 
ing out cash for the shares, 
and reaffirmed its singie-A 
senior debt rating for the 
group. 


Pay revelations raise eyebrows 

Bernard Simon examines Canada’s latest corporate governance move 


#* 

& 


■:f 


C anada’s corporate 
gossip-mongers are hav- 
ing a field day. $ince 
the beginning of this year, they 
have been fed a juicy diet of 
proxy statements which for the 
first time disclose the pay 
packets of the captains of 
Canadian commerce and indus- 
try- 

Barely a day goes by without 
the business press carrying a 
prominent story about the sur- 
prisingly high or surprisingly 
modest remuneration of some 
or other chief executive. 

Corporate governance and 
executive compensation con- 
sultants expect that the dlsdo- 
suzes will not only be good to 
their business, hut could have 
significant repercussions in 
boardrooms, among outside 
shareholder s and even in the 
political arena. 

Mr Richard Finlay, a Toronto 
consultant, describes the new 
rules as the biggest advance in 
corporate governance in Can- 
ada since the start of securities 

regulation. 

“We're paying a lot of atten- 
tion to it," adds Mr Bob Sfllcox, 
head of investments at Ontario 
Municipal Employees Retire- 
ment System (Omars), one of 
Canada’s biggest pension 
funds. According to Mir Sifloax, 
Omers has already raised the 
question of excessive compen- 
sation with a flftmpwny (which 
he declines to identify) in 
which It has an in vestment. 

At least one large institu- 
tional Investor, the Ontario 
teachers’ pension fund, has 
decided to publish details of its 
own executives’ compensation. 
The chairman of the fund’s 


board said recently: “Since we 
sort of bug other people about 
this and they are now required 
to do it, the question arises, 
why shouldn’t we do it?” 

The new rules were Imposed 
last year on a reluctant and 
notoriously clubby business 
community by Ontario's sodal- 
democratlc government. The 
government over-ruled the 
advice of the Ontario Securi- 
ties Commission, which had 
recommended that companies 
reveal only the aggregate com- 
pensation paid to their top five 
executives. 

The new guidelines closely 
follow rules applied by the US 
Securities and Exchange Com- 
mission. Every company regis- 
tered in Ontario (which In 
practice means all those listed 
on the Toronto stock 
exchange) must disclose the 
annual salary, bonus, share 
options and other compensa- 
tion paid to each of its top five 
executives for the past three 
years. 

N o Canadian, executive 
comes close to the 
USI203m reportedly 
to lean hnmfl last year by Mr 
Michael Eisner, chairman of 
Walt Disney, the US entertain- 
ment group. Nonetheless, sev- 
eral of the dozens of compensa- 
tion statements published in 
Canada over the past three 
months have raised eyebrows. 

Qy Car the most contentious 
has been the C$4m to C$6m 
awards - all in the form of 
bonuses - paid to each of the 
three top officers of First Mara- 
thon, a medium- sized Toronto 
securities firm. 


First Marathon’s net profit 
more than doubled last year to 
C$44.5m (0S$32.3m). But the 
mmhined pay packets of the 
top three officers amounted to 
more than a third of bottom- 
line earnings. First Marathon’s 
senior manag ement, long 
fampd for their swashbuckling 
style, control the company 
through multiple voting 
shares. 

At the other end of the spec- 
trum, Mr Peter Godsoe, Bank 
of Nova Scotia’s chairman, has 
been singled out as one execu- 
tive who might legitimately 
ask for a raise next year. BNS's 
earnings of C$714m and its 144 
per emit return on equity were 
the highest among Canada's 
big six banks in 1993. 

But Mr Godsoe’s total remu- 
neration of C$786,400 was rela- 
tively modest compared to his 
counterparts. Mr Matthew Bar- 
rett, B a nk of Montreal’s chair- 
man, earned C$1.75m. 

In many cases, bonus pay- 
ments appear to bear Uttle 
relationship to a company's 
performance. 

Royal Trust, the loss-making 
fmanriai institution which col- 
lapsed into the arms of Royal 
Rank of Panada last August, 
paid its top five executives 
C$3 .2m, including a raft of 
bonuses and consulting fees. 

Bramalea, the troubled real- 
estate developer, paid its chief 
executive a C$285,000 bonus as 
part of his C$971,000 earnings. 
The company justified the 
bonus on the grounds that 
its losses narrowed to C$91m 
from more than C$900m in 
1992, and it posted positive 
cash flow after negotiating a 


debt-restructuring agreement 
Some executives have paid a 
tangible price for their compa- 
nies’ lacklustre performance. 
Mr Red Wilson, chairman of 
BCE, Canada's biggest public 
company, took a 35 per cent 
pay cut last .year to just under 
C$750,000 in the wake of (he 
heaviest losses ever suffered by 
the company. 

Nova, the Calgary-based 
pipeline and petrochemicals 
group, has taken the ultimate 
step In Unking compensation 
with performance by paying Its 
chief executive entirely in 
common shares. 

T he barrage of publicity 
on executive pay “te 
waking shareholders up 
to [compensation] issues”, says 
Mr Bill Mackenzie, vice-presi- 
dent at Fairvest Securities, 
which specialises in corporate 
governance. 

It will take some time, how- 
ever, before the foil repercus- 
sions of disclosure can be 
assessed. Mr Stllcox notes that 
the bald numbers published In 
proxy statements do not teO 
the foil story. He says Omers 
needs to examine such ques- 
tions as the composition of 
boards of directors and their 
compensation committees 
before it can draw any firm 
conclusions. 

One safe bet, however, is 
that many directors will think 
much more carefully at the 
end of this year not just about 
how much senior management 
should he paid, but also about 
how the decisions should be 
explained to Increasingly vigi- 
lant shareholders. 


-n 

J 1 ’ 




Royal Bank of 
Scotland buys 
Banesto stake 

Royal Bank of Scotland is to 
acquire 2 per emit of the share 
capital of Banco Espafiol de 
CrMito (Banesto) from Banco 
Santander, the Spanish bank 
which last month won the auc- 
tion to take a controlling stake 
in Banesto, writes John Gap- 
per, Banking Editor. 

Royal Bank, which has had 
a strategic partnership with 
Santander since 1988, when 
the Spanish bank acquired 
9.9 per cent of its equity, 
said, it would pay £46m 
($67. 16m) to acquire 12.25m 
shares at a price of Pta762 
each. 


AGF to forge link with SocGen 


By Afice Rawsthom In Paris 

Assurances Gfinfirales de 
France (AGF), one of France’s 
largest insurance groups, has 
chosen to forge closer links 
with Soctetfi Generate after its 
privatisation, rather than 
Crftdlt Lyonnais. 

Societe G6n£rale and Credit 
Lyonnais have for some 
months been competing to 
become AGF’s strategic part 
ner in the banking sector. Both 
hanks have cross-shareholding 
agreements with AGF, which 
yesterday confirmed it had 
plumped for Sod£te Gfenferale. 

The news is blow to Credit 
Lyonnais, which is still reeling 


from controversy over its 
recent announcement of a 
FFr449bn ($7.7bn) government- 
backed rescue package. Mr 
Jean Peyretevade, the bank’s 
new pH airman had made no 
secret of wanting a closer liai- 
son with AGF as part of his 
long-term recovery strategy. 

Societe G6n6rale yesterday 
affirmed plans to raise its 1.7 
per cent stake in AGF when 
the insurer is privatised later 
this year. It has yet to decide 
how big its eventual stake will 
be. Societe Generate increased 
its stake in. the Rhhne-Poulenc 
chemicals company from. L8 to 
5 per cent at the time of its 
recent privatisation. 


Soctete Generate said it was 
still considering whether to 
develop operational links with 
AGF. The bank has ruled out 
the possibility of joining forces 
in life Insurance, as it already 
has interests in that area, But 
it said AGF might form part of 
its eventual expansion into 
damage insurance. 

The Liaison between AGF 
and Societe Generate forms 
part of a trend in French 
finance. Union des Assurances 
de Paris has used its privatisa- 
tion (now nearing completion) 
as an opportunity to 
strengthen its long-standing 
links with Banque Nationals 
de Paris. 



eita in 1993 


SEITA is proud to be one of the leaders In the manu- 
facture and marketing of cigarettes, cigars and matches In 
France and abroad. We supply retailers throughout France 
thanks to an efficient and complex logistical organization. 
Our research and development department innovates 
constantly in the tobacco growing process, from seed to 
finished product, as required by today's discriminating tastes. 

Every day, our brands are purchased by millions of 
consumers. They are our best advertisement. 

Our figures speak for themselves. 


CONSOLIDATED STATBABiT OF NCOMB 


to melon trench tents 

1993 

1992 

Afef safes 

14137 

13872 

Net income 

585 

447 

Net margin 

4,1 % 

3,2 % 

Cash Sow 

794 

567 

Total assets 

14026 

12123 

ShareMders's equity 

4298 

3845 




Teollisuuden Voimansiirto Oy 

U.S.$45, 000, 000 Senior Debt due 1999 


Funds provided by 
L-Bajik 

iMdolwdldwok Baden- Warttembccy; 

The Long Term Credit Bank of Japan, Limited 
The Nippon Credit Bank, Ltd 
Nordlinanx Bank Zurich 


Agent 

The Nippon Credit Bank, Ltd 


Arranger 

J.P. Morgan Securities Ltd. 


This announcement appears as a matter of record only 


AB Svensic Exportkredit 

(Swedish Export Credit Corporation) 

Equity Linked Notes 
Skr 150 000 000 
1994/99 

Issued under the Programme for the Continuous Issuance of Debt Instruments 

Enskilda Corporate 

SkancfinaviskaEnskOflaBanken 


April 1994 


GERMAN CITY ESTATES N.V. 

established at Amsterdam 

Notice of the extraordinary meeting of shareholders of German 
City Estates N.V. to be held on Tuesday 24 May 1994 at 10.30 
a.m. at the Company's offices at Johannes Vermeerplein 5, 
Amsterdam, in connection with the change of Articles 3a and 
1 6, Paragraph 1 of the Articles of Association. 

Holders of bearer shares as wen as usufructuaries having the 
right to vote, who wish to attend the meeting, are required to 
deposit their proof of ownership at Internationale Nederlanden 
Bank N.V., De Amsterdamse Poort, Bljimerpieln 888, 
Amsterdam, or at WesseTws & Co. B.V., Nieuwa Doelenstraat 
10, Amsterdam, or at the office of the Company, Johannes 
Vermeerplein 5, Amsterdam, not later than 17 May 1994. 

Shareholders who wish to be represented by power of attorney 
can also deposit a written power of attorney at the banks 
mentioned above, or at the Company, where proxy forms can 
also be obtained. 

The agenda for the meeting and the text of the proposed 
amendments of the Articles of Association are available and 
may be obtained as of today by shareholders and others 
entitled to attend the meeting at the offices of foe Company. 


Thu announcement appran tu a matter of recant only. 


V. 

I .V' 


V 


Petroleum Argus Daily Oil Price Reports 

.va.: _ Petroleum Argus - 

CALL ••iOVV :or TRIAL C44 " i : 350 375;; 



barclays bank plc 
U.S.$330,830,000 

Junior Undated Floating Rate Notes 

***2*8™® that the Rate of Interest 41 

Wrh^L^IS!? £2°? from 10th May, »94 W.oP 

lOfo November, 1994 is 5V» per cent, per annum p® 
and that on lOrh November, 1994 the amount ? 
afwterest payable in respect of each US^5,000j 
praapal amount of the Nows will be U5J132^7 

Barclays de Zoetc Wedd Limited • 

Agent Bank 



Market-Eye 

r 

cv 


London stock exchange 










ebr 


FINANCIAL TIMES TUESDAY MAY 10 1994 


ith S 


!*!« i ' «* • 


INTERNATIONAL COMPANIES AWP FINANCE 

Berliner Bank to raise dividend 


By Judy Dempsey In BerHn 

Berliner Bank, which earlier 
this year merged with two oth- 
ers to form Germany’s slxth- 
biggest bank, will increase its 
dividend by DM7 to DM9 fol- 
lowing last year’s high partial 
operating profits and operating 

results. 

At the same tune, Mr Wolf' 
gang Steinriede, spokesman far 
the board, said the the group's 
net profits before risk provi- 
sions would total about 
DM1.2bn ((612m), similar to 
last year. 

S African 
glass group 
advances 

By Mark Suzman 
In Johannesburg 

A strong performance by 
offshore operations helped 
Plate Glass and Shatterprufe 
Industries, South Africa's larg- 
est glass company, to a 71 per 
cent increase in after-tax prof- 
its for the year to March, to 
R207£m ($58m) from R121.9m. 

Attributable Income more 
than doubled to Rl58.6m from 
R79.1m, and a dividend of 5&8 
cents was declared, up from 
37.1 cents in 1993. 

Mr Ronnie Lubner, chief 
executive, attributed the 
results to offshore subsidiary 
Be Iron International, which 
serves the automotive glass 
replacement industry in 11 
countries, and which contrib- 
uted 36 per cent of earnings. 

Belron benefited from a 
strong showing from Auto- 
glass in the UK. Continental 
Europe (except Germany and 
Italy) and Australia also did 
well. 

Mr Lnbner was particularly 
pleased with the group’s 
American operations. Wind- 
shields America. 

Group turnover increased by 
17 per cent to R3-2bn from 
R2.77bn while net financing 
costs dropped to R2&5m from 
R32.6m on strong cash flow. 

Mr Lnbner was "cautiously 
optimistic” about the South 
African economy in the new 
political climate. 

MIM to sell 
coal projects 

MIM Holdings, the Queens- 
land-based metals group which 
is trying to prune its invest- 
ment portfolio and discard 
assets deemed "non-core", is 
putting three undeveloped coal 
projects up for sale, writes 
Nikki Tbit in Sydney. 

Two are in Queensland - 
Rolleston in the Bowen Basin 
and Chinchilla in the Surat 
Basin - where MIM holds 100 
per cent interests. The third is 
the Denman project in New 
South Wales’ Hunter Valley. 
This is a 50-.50 joint venture 
with Agipcoal Australia. 

MIM said the deposits were 
in “an advanced state of evalu- 
ation” and contained around 
lbn tonnes of coal resources, 
suitable for domestic and 
export steaming coal markets. 
It said it would consider out- 
right purchase or joint venture 
arrangements. 

ANI ahead at 
nine months 

ANL the Sydney-based heavy 
engineering group which owns 
Aurora in the UK, has 
reported a 1341 per cent rise to 
after-tax profits for the nine 
months to end-March to 
A$434Sm. Revenues were op by 
25.8 per cent to A$l.lbn. 
writes Nikki Tait. 

Operating profit after tax 
rase by 19.3 per cent in the 
third quarter to ASld.lm and 
ANI said the trend should con- 
tinue for the rest of the year. 



Partial operating profits, 
without trading, for 1993 rose 
by 60.7 per cent to DM372.4m 
(S223-5m), while toll operating 
results rose by 120 per cent to 
DM303.2m. Net profits rose by 
71 per cent to DMUUlm. Net 
interest receipts rose by 3L3 
per cent to DM1.33bn, while 
commission tees increased by 
213 per cent to DM2516m. 

Last year's results confirm 
the bank’s miwgi in integrat- 
ing the Berliner Stadtbank, its 
east Berlin counterpart The 
takeover of this bank after Ger- 
man unification included 


DM7bn of government-guaran- 
teed loans and an additional 
capital of DM550 hl 

However, this year's perfor- 
mance will be anchored an the 
new structure, called Bank 
Gesdlschaft Bolin, which for 
the first lime in German bank- 
ing brings together the private 
and public sector. 

BGB includes Landesbank 
Berlin, which owns the saving 
banks, Berliner Hypotheken 
und Pfandbriefbank (a prop- 
erty financing institution) and 
Berliner Bank (a commercial 
bank). All three institutions 


are owned by the State of Ber- 
lin. Currently, Berlin bolds a 
78 per cent stake in the BGB. 

But Mr Steinriede yesterday 
said the Berlin Senate intended 
to reduce its stake in BGB by 
about 10 per cent in 1995. By 
the end of the first quarto- of 
this year, BGB’s total share 
capital amounted to DM&Sbn. 

Berlin’s decision to reduce 
its stake was partly prompted 
by financial reasons - the city 
had a budget deficit of DM7bn 
- as well as the need to push 
Berlin towards becoming a 
financial centre. 


Difficult first 
year for Traub 
and Heckert 


The union of two German machine-tool makers 
was never going to be easy, writes Jndy Dempsey 

» Difficult first 

-L N German machine-tool L AAA J C 

manufacturers would be easy. p p-p -« 

Not only had it taken place \7PQ-T T /'’x f* I K 

against the background of one V CL JL A A A. A CL LA L-J 
of the worst recessions in 

recent years - late last month _ _ J T T ^ ^ 

Deckel Maho, another Qtlfl H PP K Pm 
machin e-tool group, filed for C-vAX V»*- X- AvvlVvl 1/ 
protection from its creditors. 

But the marriage involved around the clock. It was east DM17m, are expected to stal 
Traub, the west German tool- Germany’s flagship. lise, while turnover this ye 

turning manufacturer to Stott- But the ship could hardly will reach DM97m. 
gait, and Heckert, the east Ger- sail once these markets col- 
umn tool-milling enterprise in lapsed after the introduction of "T" nevitably, there wDl he 
Chemnitz, once the heart of German monetary union. The I time lag before Hecke 
Germany's machine-tool indus- Kombtoate was broken up. The A can reap the benefits 
try before the second world 4^00 workers in the milling- Traub’s capital investments 
war. tool section was reduced by a DM60m. Since Traub acqirir 

When the two enterprises tenth to 430, while the Treu- five of the 11 manufacturh 
joined forces last September, hand pumped money in, pick- halls last . September, thn 
both companies bad undergone tog up losses, environmental have been completely moder 
radical restructuring pro- liabilities and redundancy ised. 
grammes. Traub, saddled with costs totalling DMIOOm. Like "Heckerfs union with Trai 
losses the previous year of Traub, it was now lean. All it has many advantages. Hecke 
DM47.9m ((28.75m) and a tom- required was a new owner. gains management know-hc 
over which had fallen 8 per “We had been looking for a and can ride on the back 
cent to DM270m, had cut its company like Heckert for some Traub’s worldwide marketii 
workforce from 1,800 to 1,000. time,” said Mr Zimmer. “We network," said Mr Sitti 
“Our labour costs were too wanted to have turning and Exports account for 35 per ce 
high. The only way we could milling under one roof, without of Traub’s turnover. In retur 
save money and become more any overlap.” With the acquisi- Traub gains more products 
efficient was through shPthHng tion of Heckert. along with and capacity space, potent! 
jobs," said Mr Theodor Zim- that of Hermle, which manu- markets to the east and - f 
mer. a board member of Traub. factures milling machines for the moment - lower wa( 
“We are slowly coming out of use in mould-making and small costs, 
the tunnel,” he said. series production. Traub’s new However, the workers j 

Pressure from its banks also strategy was to place. Stuttgart, still reding from tl 

forced the company to adopt a “We now have an attractive affects of the redundancie 
leaner and tougher strategy, site for production purposes show little solidarity with the 
Last year, they agreed on a and sales activities,” explained east German brothers. 
finanrial package aimed at Mr Zimmer. “We are afraid of intern 

reducing Traub 's debt by competition,” said Mr Manfrt 

DM8 0m, while the family- ut the marriage has had Suss, 50, a member of tl 

owned company wonld |-v difficulties. Mr Wolf- workers' council. "How can * 
increase its share capital in gang Sittig, the man- be sure that Traub will m 

1993 by DMIOm to DM47m. ager at Heckert, says one of shift some of the products 
"The business culture is the greatest problems facing from Stuttgart to Chemnit 
changing. You can no longer the Chemnitz plant is finding especially since the wages ovi 
rely on producing and expect ways to finance sales to the there are about 30 per cei 
orders to follow. You have to former Soviet Union which lower than over here?” 
work harder to find your continues to have a huge The workers at Heckert, wh 
markets and keep costs down demand for Heckart’s products, regard themselves as fortunal 
at the same time.” said Mr “Because of [Russia's] finan- to have a job, are not surprise 
Manfred Hekeler. head of cial problems, we have to about such views, 
marketing. finance the whole production “We know the Stuttgart pe 

As part of the restructuring until we receive payment on pie are a hit worried,” said M 
plan, Traub wanted to cample- delivery. Our problem is not Dieter Kupsca, a 40-year- ol 
ment the turning-machine divi- cash flow. It is revenue,” he engineer. "But through wori 
sion with a milling-tool produc- explained, adding that he ing for this western firm w 
tion unit Heckert seemed to fit either depends on Hermes. Ger- just have to be flexible. The ol 
the bill. But the Chemnitz many’s export guarantee meeb- days of sticking to the month] 
enterprise was also to trouble, an ism, or on counter-trade. production plan are over. W 
For some time, the Treuhand "The point is that we cannot have to respond quickly to ne 
privatisation agency, which in throw away the markets in orders and a new way of doin 
1991 had taken over the giant eastern Europe or Russia. They things.” 

Kombinate, or state-owned will have purchasing power The marriage between th 
enterprise, had been searching sooner or later. This firm has workers' councils in Stottgai 
for a buyer of a plant which built up contacts over .the and Chemnitz may take tin 
since 1951 had had a monopoly years and we want to maintain to consummate. But for Messi 
in supplying the east European them.” Zimmer and Sittig, the unio 

and Russian markets. More than 35 per cent of of two of Germany’s machim 

T hen called the Fritz-Heck- Heckerfs 'turnover, which last tool manufacturers, forge 
ert-Werk. it had employed year amounted to DM70m, is after difficult restructurin 
27,000 people spread over 17 backed by Hermes. The programmes, may help hot 
workshops, and had been prod- remaining sales are now tar- ride out the recession an 
ucing 2,500 milling-tool units a geted at western markets, emerge stronger when it I 
year with production r unning Losses, which last year totalled over. 


around the clock. It was east 
Germany’s flagship. 

But the ship could hardly 
sail once these markets col- 
lapsed after the introduction of 
German monetary union. He 
Kombtoate was broken up. The 
4J300 workers in the milling- 
tool section was reduced by a 
tenth to 430, while the Treu- 
hand pumped money to. pick- 
ing up losses, environmental 
liabilities and redundancy 
costs totalling DMIOOm. Like 
Traub, it was now lean. All it 
required was a new owner. 

“We had been looking for a 
company like Heckert for some 
time,” mM Mr Zimmer. “We 
wanted to have turning and 
milling under one roof, without 
any overlap.” With the acquisi- 
tion of Heckert. along with 
that of Hermle, which manu- 
factures milling machines for 
use in mould-making and small 
series production. Traub’s new 
strategy was to place. 

“We now have an attractive 
site for production purposes 
and sales activities,” explained 
Mr Zimmer. 

B ut the marriage has bad 
difficulties. Mr Wolf- 
gang Sittig, the man- 
ager at Heckert, says one of 
the greatest problems facing 
the Chemnitz plant is finding 
ways to finance sales to the 
former Soviet Union which 
continues to have a huge 
demand for Heckerfs products. 

“Because of [Russia’s] finan- 
cial problems, we have to 
finance the whole production 
until we receive payment on 
delivery. Our problem is not 
cash flow. It is revenue,” he 
explained, adding that he 
either depends on Hermes, Ger- 
many's export guarantee mech- 
anism, or on counter-trade. 

"The point is that we cannot 
throw away the markets in 
eastern Europe or Russia. They 
will have purchasing power 
sooner or later. This firm has 
built up contacts over the 
years and we want to maintain 
them.” 

More than 35 per cent of 
Heckerfs 'turnover, which last 
year amounted to DM70m, is 
backed by Hermes. The 
remaining sales are now tar- 
geted at western markets. 
Losses, which last year totalled 


DMTTm, are expected to stabi- 
lise, while turnover this year 
will reach DM97m. 

I nevitably, there will he a 
time lag before Heckert 
can reap the benefits of 
Traub’s capital investments of 
DM60m. Since Traub acquired 
five Of the 11 wmnirfiir ftrriTi g ' 

halls last . September, three 
have been completely modern- 
ised. 

"Heckerfs union with Traub 
has many advantages. Heckert 
gains management know-how 

and ran ride on thp hark of 

Traub’s worldwide marketing 
network,” said Mr Sittig. 
Exports account for 35 per cent 
of Traub’s turnover. In return, 
Traub gains more production 
and capacity space, potential 
markets to the east and - for 
the moment - lower wage 
costs. 

However, the workers in 
Stuttgart, still reefing from the 
affects of the redundancies, 
show little solidarity with their 
east German brothers. 

“We are afraid of internal 
competition,” said Mr Manfred 
Suss, 50, a member of the 
workers’ council. “How can we 
be sure that Traub will not 
shift some of the production 
from Stuttgart to Chemnitz, ( 
especially since the wages over 
there are about 30 per cent 
lower than over here?” 

The workers at Heckert, who 
regard themselves as fortunate 
to have a job, are not surprised 
about such views. 

“We know the Stuttgart peo- 
ple are a hit worried,” said Mr 
Dieter Kupsca, a 40-year-old 
engineer. “But through work- 
ing for this western firm we 
just have to be flexible. The old 
days erf sticking to the monthly 
production plan are over. We 
have to respond quickly to new 
orders and a new way of doing 
things.” 

The marriage between the 
workers' councils in Stuttgart 
and Chemnitz may tnk« timp 
to consummate. But for Messrs 
Zimmer anil Sittig, the union 
of two of Germany’s machine- 
tool manufacturers, forged 
after difficult restructuring 
programmes, may help both 
ride out the recession and 
emerge stronger when it is 
over. 


Recovery at Hindustan Motors 


By Kunal Bose In Calcutta 

Hindustan Motors, India’s 
second largest carmaker and a 
GP Birla group company, can- 
firmed its recovery from reces- 
sion for the year to March 31 
by making a net profit of 
Rsl76m ((5.6m), against a loss 
of Rs305m to the previous year. 

With higher car sales and 
improvements in the earth- 
moving equipment and power 


products division, turnover 
rose to Rs6.44bn from Rs5.04bn. 

The company, which is to 
talks with General Motors of 
the US about a possible joint 
venture in India, said it had 
been able to reduce costs dur- 
ing the year and there would 
be further savings with the 
ongoing modernisation of car 
production facilities. 

• MRF, India's biggest pro- 
ducer and exporter of tyres. 


recorded a 15.1 per cent 
increase in net sales to 
Rs5.38bn for the six months to 
end-March from Rs4.68bn in 
the same period last year. 

The company's tyres met 
with greater demand from 
motor vehicle manufacturers 
and also in the replacement 
market. However, because of 
h ighe r input costs, gross profit 
was up only 24? per cent to 
Rs420m. 







END OF CONVERSION PERIOD: MAY 20, 1994 

On January 21, 1994, Lafarge Coppee announced the prepayment 
of its 6 1/8% Convertible Bonds due 1997. The Redemption Date 
was February 21, 1994. However according to the Terms and 
Conditions of the Bonds, they may be converted into Lafarge 
Coppee ordinary shares within three months, following the 
Redemption Date. 

Consequently Bondholders are reminded that they may convert 
their Bonds into Lafarge Coppee ordinary shares until May 20, 
1994 at the latest 

Bonds not converted on such date shall be redeemed at a price of 
FRF 10,383.37 (i.e. a theoritical equivalent of FRF 358.7/share). 

The closing price of Lafarge Coppee ex-dividend share on May 5, 
1994 was FRF 451. On the same date dose to 84% of the Bonds 
were already converted. 

Fiscal Agent Kredietbank SA Luxembourgeoise. 


This Information appears as a matter of record only. 


May 1994 


o 


Bayerische Motoren Werke Aktiengesellschaft 

Munich, Federal Republic of Germany 

BMW Finance N.V. 

The Hague, The Netherlands 

BMW US Capital Corp. 

Wilmington, Delaware. USA 

BMW Coordination Center N.V. 

Mechelen, Belgium 

US$ 1,000,000,000 

Euro Medium Term Note Programme 

unconditionally and irrevocably guranteed by 

Bayerische Motoren Werke Aktiengesellschaft 

Munich, Federal Republic of Germany 
Arranger 

Dresdner Bank 

Aktiengesellschaft 


Co-Arranger 

Merrill Lynch International 

Limited 


FF-Arranger 

Merrill Lynch Capital Markets 
(France) S.A. 


Dealers 


Barclays de Zoete Wedd 

Limited 

CS First Boston 


Bayerische Vereinsbank 

Aktiengesellschaft 

Deutsche Bank AG London 


Commerzbank 

Aktiengesellschaft 

Dresdner Bank 

Aktiengesellschaft 


Goldman Sachs International J. P. Morgan Securities Ltd. Lehman Brothers 


Merrill Lynch International 

Limited 


Merrill Lynch Capital Markets Morgan Stanley & Co. 


(France) S.A. 
Swiss Bank Corporation 


International 


UBS Limited 


Programme Agent 

Dresdner Bank 

Aktiengesellschaft 


Paying Agents 


Dresdner Bank 

Aktiengesellschaft 


Morgan Guaranty Trust 
Company of New York 


The Programme has been admitted to the Official List of the London Stock Exchange and application 
for admission to the Regulated Market of the Frankfurt Stock Exchange has been made. 

A Securities Prospectus will be filed with the Frankfurt Stock Exchange. 


New Issue 


All of these securities having been sold, this announcement appears as a matter of record only. 


1,400,000 Ordinary Shares 


bhr 


BELIZE HOLDINGS INC. 

(Incorporated under the laws of Belize) 


Copies of the ftn^xetus may be obtained in any Stale or jurisdiction in which thisannuuixemcnt is circulated from only 
such of the undersigned or other dealers or brokers as may lawfully offer these sccurilics in such Stale or jurisdiction. 


Merrill Lynch & Co. 


Bear, Stearns & Co. Inc. CS First Boston 

Lehman Brothers Morgan Stanley & Co. 

Incorporated 

Smith Barney Shearson Inc. UBS Securities Inc. 

Arnhold and S. Bleichroeder, Inc. Doley Securities , Inc 

Monness, Crespi, Hardt & Co., Inc. 


CS First Boston Goldman, Sachs & Co. 

intej&Co. NM Rothschild and Smith New Conrt 

UBS Securities Inc. S.G.Warburg & Co. Inc. 

Doley Securities , Inc. Janney Montgomery Scott Inc. 

Tucker Anthony 

Incorporated 



e BOO 


For more IrrfounBtion 




Fa* +45 4587 8773 



t-ey 


a * ■ 








22 



ATLANTAS SICAV 


FINANCIAL TIMES TUESDAY MAY 10 1994 { 

INTERNATIONAL COMPANIES AND FINANCE ’ .,^1^ 


20, Boulevard EnnninaeJ Servii# 
L-2535 Luxembourg 
ItC Uocanbaug B39 188 


AVIS AUX ACTIONN AIRES 

MeseieinslMataionnwres sent OTrroqafe parleprfeenlavisa 

L'ASSEMBLEE GENEKALE ORDINAIRE DES 
ACnONNAIRES 

qoi x tiertdra an si&ge social a Luxembourg le 19 Mai 1994 A 14h30, 
avec l'aidie du Jour suivanfc 

ORDRE DU JOUR 

1. Rapport de gesticn du Consefl d 'Adm inistrati on; 

2 . Rapport duR£nseurd'EftterpA3£$ 

3. Adoption da bilan et des comptes de profits et pertes de 


SA group 
ahead as a 
result of 
shake-up 


Rise and rise of a Malaysian businessman 

Tajudin Ramli is set to take over the controls at the state airline, writes Kieran Cooke 


M r Tajudin Ramli started his 
corporate cares in the early 
1980s in bicycles, baying a 
«mtmTHng stake in the Malaysian 
of the British Raleigh group. 

Now Mr Tajudin is one of Malaysia's 
leading en trepreneurs, with mnltt-mlD- 
ion dollar Interests in twipwwupiniiiwi. 
Sons, tourfan and transport. 

Last week Celcom, a unit of Mr Tajn- 
din's listed Technology Resources com- 
pany (TRD, announced it had won a 
licence to set up intematirmal telecom- 
munications flnltx. 

Celcom already has a more than 60 
per cent share in Malaysia’s fast grow- 
ing cellular c omm n nicati on s market 
A p rivate company controlled by Mr 
Tajudin is also in the satellite business: 
it has bought and launched two Rus- 
sian communicatums satellites with the 
idea of leasing space to regional users. 

Now, Mr Tajudin’s Malaysian Heli- 
copter Services (MBS) a locally listed 
company, has plans to take over the 
running of Malaysia Airlines (MAS), the 
country's vinHrmal carrier one of 
south-east Asia’s biggest airlines. 

Mr Tajudin is one of Malaysia’s most 
closely watched b usinessmen rife activ- 
ities are the talk of Koala Lumpur 
boardrooms. However, there are grow- 
ing concerns that Mr TaJttdm is trying 
to expand too fast. 

“No one can keep control over such, a 
fast growing business empire,” says one 
Kuala Lumpur analyst. “He's fa»k«n on 
too much - hardly a day goes by with- 
out some new deal being announced- ” 

Malay sia and Thailand are the fastest 

g ro w i ng tnobj la plume markets in the 


By Mark Suzman 
in Johannesburg 


rot e rdee au 31 EKoanbre 1993; 

4. Affectation du n&wiUat de I'exerooe; 

5. D&harge rax odminishatcure et au R£viseur d "Enterprises; 

6- Nomination des organra sodaioc 

• Nomination dee administrafceurs; 

• Nomination du Rgvjgeuz d "Enterprises. 

7. Divers. 

Leo resolutions des actumnaires Ion de V Assemble G£n£rale 
Ordinaire seront vot£es 1 tine majority simple des action twines 
presents et votants. 

Chaque action a un droit de vote. 

Tout actlonnairepeut voter par mandataire. 

Pourlaiociiti, 


BANQUEDEGESTION EDMOND DE ROTHSCHILD LUXEMBOURG SlA. 
20 Boulevard Emmanuel Servais 
L-2535 LUXEMBOURG 


U.S. $250,000,000 


Credit Lyonnais 


Subordinated Floating 
Rate Notes Due August 1997 


Tongaat-Holett, the South 
African food, industrial and 
consumer products group and 
the largest company In Natal 
province, reported a strong 
second half as a result of suc- 
cessf nl ra tionalisation and 
restructuring. 

After-tax profits for the year 
ended March rose l&g per cent 
to R159m ($3 2.1m) from 
R137-3HL, 

The results were helped by a 
decline in net flnancmc costs, 
to R55J2m from RTMm and a 
drop in taxation to R52.1m 
from B55.3m. 

The balance sheet was stran- 
ger as overall borrowings were 
down to R364.6m from 
R388£m, while total net bor- 
rowings dropped to R25.3m, a 
reduction of R 107.9m, larger 
due to proceeds from the sale 
of 50 per cent of the group’s 
Consumer Foods operation to 
CPC International. 

Turnover increased 2.7 pm 
cent to R&STtm from R3JB7bn 
and a final dividend of 58 
cents was declared, making 
the ftaD-year dividend 13.7 per 
cent up on last year, at 83 


Interest Rate 
Interest Period 


per annum 


Interest Amount per 
US. $10,000 Note due 
8th August 1994 


9th May 1994 
8th August 1994 


U.S. 912&39 


CS First Boston 

Agent 



BStam 


Hw wwy w> nportwitti Imp o rta nt cam 
by «th* minority bnrtnwn— In Iht Unttvd I 
ttaalr Mora pwt p i cti «R ba affected by o 
ab road, and bear they we wp owte s to tba d 
the UK. 


Far mere I nanim a tion on editorial o en ta nt and rtataSn of adwartMag 
mpaal i adllaa ai to rt li hi tida auropy. plaaaa oontact 


ANTHONY B HAYES 

Tab 021 4M 0992 Roc 091 405 0809 


FT Surveys 


Mr Cedric Savage, manag ing 
director, said the improvement 
held across aJQ divisions and 
improved liquidity and cash- 
flows would allow the com- 
pany to take advantage of 
expected infrastructural 
spending by the new govern- 
ment 

He singled out the group's 
brickmakixig and aluminium 
divisions as particularly well 
placed for growth. The sugar 
division, recovering from a 
two-year drought, is expected 
to benefit from deregulation 
later in the year. 

Tongaat has also continued 
with capital expenditure, 
spending RISOm on various 
irrigation, glucose and alumin- 
ium projects. 1310 group is also 
undertaking feasibility studies 
for a proposed R1.6bn hot 
rolling aluminium mill expan- 
sion. 

Mr Savage also said antici- 
pated growth and higher 
liquidity left foe company well 
placed for new investments, 
pohaps in foreign markets. 


world. In spite of competition from new 
system ope rator s, the number of sub- 
scribers to TKTs Celcom unit network 
is expected to increase by between 8,000 
and 9,000 a month over the next two 


Brokers and investors seem generally 
optimistic about TRL HU maria a pre- 
tax profit Last year of M$103m 
(USS3&9m) compared with M$16£m in 
1992. Over the last 12 months TRI 
shares have risen from Mgl.46 to 
M$ 11.50 on the Kuala Lumpur 


t hen m ar ket price of M$16 a share. But 
the iTnaja Lumpur stock market has 
fallen by more than 20 per cent since 
the beginning of the year and UHS 
shares have dropped to around M$1L 
With underwriters shying away from 
the deal there is folk of a restructured 
MAS takeover pa ck a g e. 

mhs is a relatively small company 
spedalisizig in support services to Mal- 
aysia's oil «nd gas industry. Pre-tax 
profit in. the year to end-1993 was 
Mffnwi . down from M$31m the previous 
year. 


‘No one can keep control over such a fast 
growing business empire - hardly a day goes 
by without some new deal being announced 9 


However there are doubts about Mr 
Tajudin’s move into Malaysia Airlines, 
“like t el ec ommunications. aMhiaa are 
primarily about service,” says Mr Taju- 
din. “There is a big shake-up rrantng at 
MAS. 1 win be concentrating on the 
atrlina fmm now on.” 

In what was one of the biggest deals 
in Malaysian corporate history, it was 
announced late Last year that Bank 
Negara, the country’s central bank, 
would sell a 32 per cent stake in MAS to 
the Tajudin-controIIed MHS. The cost of 
the stake was estimated at MfLTSbn. 

However, final clearance for the 
MHS /MAS deal seems to have been 
delayed. The original purchase proposal 
was to have been funded through the 
issuing of 112m new MHS shares at the 


Recently mhs has been on an aggres- 
sive acquisition hunt. Last year it pur- 
chased a 33 per cent stake in the Schri- 
ener Aviation group of the Netherlands 
for $4L8m and a 25 per cent stake in 
World Airways, the US charter opera- 
tor, for $27-4tn- It has hem involved in 
protracted takeover negotiations with 
Bristow, the UK helicopter operator. 

While Mr Tajudin says he wants to 
build MHS into an international avia- 
tion. company, doubts persist about its 
financial strength and its ability to 
manage such a large and complex oper- 
ation as MAS. 

The Malaysian canler has recently 
been flying into some financial turbu- 
lence. An over-ambitious fleet expan- 
sion programme in the 1991-96 period. 


involving the purchase of 72 aircraft 
costing a total of M$l0.6bn, has placed 
severe strain an the balance sheet At 
tfae time passenger numbers on 

many routes have dropped. 

Pre-tax profit for the six months to 
September 1993 was M3&4m, a 93 per 
drop on the equivalent period the 
previous year. 

There is also a political dimension to 
Mr Tajudin’s business dealings. Ur 
Tajudin is a protege of Mr Daim Zainod- 
din, Malaysia's former finance minister 
nnri a dose confidant of Dr Mahathir 
Malaysia’s prime minister. 
Mr paiin is known as one of Malaysia’s 
wealthiest businessmen and a corporate 
wheeler dealer. 

Mr Tajudin’s business rivals say Ur 
Tajudin used his political connections 
to win lucrative telecommunications 
licenses. In return, the government 
asked the entrepreneur to reorganise 
MAS. 

Mr Tajudin shrugs off such rumours, 
saying be merely responded to opportu- 
nities offered to Mu. 

Mr Anwar Ibrahim, the present 
firamrp minister , has become Involved 
in increasingly public wranglings with 
the influential Mr Daim, while Malay- 
sia’s regulatory authorities are said to 
be unhapp y with some aspects of Mr 
Tajudin’s business activities. 

But Mr Tajudin insists everything is 
fining to plan. “At various times people 
have said I was mad, putting money 
into companies like Celcom and MHS. 
But I have proved them wrong. You 
have to have vision, that is very 
important" 


Meridien Biao plans African expansion 


By Lesfie Crawford in Nairobi 


South Africa’s transition to 
democracy is encouraging at 
least one pan-African banking 
network to expand its business 

ttimngh tha ffl ntjnwnt 

Mr Andrew Sardanis, chair- 
man of the Luxembourg-based 
Meridien Biao, yesterday estab- 
lished a commercial holding 
company in the US as a vehicle 
for raising additional capital to 
extend his chain of commercial 
hanks and insurance compa- 
nies in Africa. 

The holding company. Meri- 
dien Corporation of the USA, is 
capitalised at tBOm. "We are 
hoping to attract new share- 
holders to Meridien Corpora- 
tion at some future date,” 
Mr Sardanis said yesterday in 
Nairobi. 

Mr Sardanis is wnthumasHn 


about the potential expansion 
of regional trade following 
South Africa's multi-racial 
elections. He hopes his net- 
work of banks in 20 African 
countries wm act as co-respon- 
dents for South African banks 
in financing the expected 
increase in trade. In the future 
he says, he may apply for a 
banking licence in South 
Africa. 

For many years, the Cypriot- 
bom businessman was banned 
from entering South Africa for 
being a Zambian rftfagn and a 
one-time member of former 
president Kenneth Kaunda’s 
government, which actively 
supported the African National 
Congress. 

Meridien Biao is a newcomer 
to the African banking scene. 
The h anking group is the 
result of a merger in 1991 of 


Meridien hamim hi an g lo ph one 
countries and much of the 
Banque Internationale pour 
I’Afrique Occidental, a trou- 
bled network of banks in fran- 
cophone Africa. 

Its assets, following the 
devaluation of the CFA franc 
in January, are valued at 
8950m, down from $1.45bn 
before the devaluation. Net 
income in the year ending Sep- 
tember 1993 was a meagre 
$3 .am, which the chairman 
attributes to reorganisation 
costs. 

The establishment of the 
Meridien Corporation holding 
company has effectively sepa- 
rated Mr Sardanis* banking 
interests from the mining, 
trading and construction com- 
panies grouped under ITM 
international. 

“Alter tiie 8CCI affair." says 


Mr Sardanis, “I decided it was 
important to separate the 
banking operations from the 
rest of the group In the inter- 
ests of greater transparency.” 

To date, however, neither 
British nor French banking 
regulators have granted Meri- 
dien Biao a banking licence. 

“Most OECD countries are 
reluctant to undertake supervi- 
sion of a large network such as 
ours; they are concerned at the 
remoteness of the continent 
and have adverse perceptions 
of Africa." Mr Saniants wrote 
in his amrnal report However, 
he hopes this state of affairs 
might be redressed by seeking 
a listing for Meridien Corpora- 
tion in one of the US stock 
exchanges, brin g in g his group 
of companies under the Securi- 
ties Exchange Commission 
rates. 


Burns Philp 
lifts profits 
to A$46m 


By Nikki Taft 

In Sydney 


Burns Philp, the Australian 
group which has been 
disposing of non-core assets to 
concentrate on its food 
ingredients business, said it 
maria a profit before interest 
and tax of A$46-4m (US$32Am) 
in the third quarter to 

OTiH.Mnrrh 

This compares with A$39m 
in the same period a year ago, 
but includes A*l2m profit on 
asset sales. Without those, 
earnings would have declined 
12 per cert. 

After-tax profits for the 
quarter were A$8L5m. against 
Af21.4m, and for the nine 
months, A$96.8m, against 
A$75£m. 


f ABN-AMRO Holding N.V. 

established in Amsterdam 


New Issue 
May 10, 1994 


This announcement appears 
as a matter of record only 


At the annual general meeting of shareholders held on 6 May 1994, a dividend of NLG 3.05 
per ordinary share of NLG 5 nominal value was declared for 1993. Part of this dividend has 
already bean made payable in the form of an interim dividend of NLG 1.45, which might be 
taken at the shareholder's option either entirely in cash or as a cash payment of NLG 0.25 
together with ordinary shares chargeable to the share premium reserve. In the ratio of one 
new ordinary share for every fifty ordinary shares held. 


Baden-Wurttemberg 
L-Finance N.V. 


Amsterdam, The Netherlands 


The final dividend of NLG 1.60 per ordinary share of NLG 5 nominal value may be taken at 
the shareholder's option either entirely in cash or as a cash payment of NLG 0.40 together 
with ordinary shares chargeable to the share premium reserve , in the ratio of one ordinary 
share for every fifty ordinary shares held. 


The new ordinary shares rank fully for dividend for 1994 and ensuing financial years. 


DM 2,000,000,000 
6% Global Notes of 1994/1999 


Payment in the form of ordinary shares chargeable to the share premium reserve is exempt 
from Dutch withholding tax and income tax. 


Furthermore, the Managing Board has announced that the preference dividend of NLG 0.475 
per preference share of NLG 5 nominal value, for the financial year 1993, will be made 
payable after deduction of 25% withholding tax. 


unconditionally and irrevocably guaranteed by 


Holders of preference in ordinary shares convertible shares will receive their dividend of NLG 
0.63 per preference in ordinary shares convertible share of NLG 5 nominal value, for the 
financial year 1993, being 1/6 of the statutory dividend, which will be made payable after 
deduction of 25% withholding tax. 


1LBANK 

LandeskretStbank Baden-WQrttemberg 


As of 18 May 1994, the final dividend on ordinary shares will be payable at the following 
addresses: 


DEUTSCHE BANK 

AICnENGESaxSCHAfT 


J.P. MORGAN GMBH 


SALOMON BROTHERS AG 


in the Netherlands: 


any office of 

ABN AMRO Bank N.V., 


in the United Kingdom: National Westminster Bank PLC, (Crawley), 


DHE5DNER BANK 

AK71ENGESEUSCHAFT 


WDUSTMEBANK VON JAPAN 
(DEUTSCHLAND) 

AICnENGESELLSCHAFT 


In connection with the above, NLG 0.40 and NLG 1.20, less 25% withholding tax, will become 
payable in exchange for dividend coupon nos. 16 and 17, respectively. 


MORGAN STANLEY GMBH 


SCHWBZER8CHE BANKGBSEUSCHAFT 
(DEUTSCHLAND) AG 


Shareholders opting for payment in the form of ordinary shares chargeable to the share 
premium reserve will receive one new ordinary share of NLG 5 nominal value in exchange 
for every fifty dividend coupons number 17 of the ordinary shares. The closing date is 15 
June 1994. After this date holders of dividend coupons number 17 can obtain payment in 
cash only. The new ordinary shares in respect of unexercised stock dividends will be sold. 


ABN AMRO BANK 
(DEUTSCHLAND) AG 


BANQUE PARIBAS 
(DEUTSCHLAND) OHG 


BAYER1SCHE VEREINSBANK 

AKtiENGESELLSCHAFT 


The dividend on the certificates of preference shares will be made payable only with 
ABN AMRO Bank N.V. in Amsterdam. 


COMMERZBANK 

AKTIENGESELLSCHAPT 


CSFRST BOSTON 

EffECTPBANKAICnEN QESELLSC HAPr 


generalebank 


MERRILL LYNCH BANK AG 


Holders of preference in ordinary shares convertible shares will receive their dividend - less 
25% withholding tax - as from 18 May 1994 against surrender of dividend coupons number 1 
at any office of ABN AMRO Bank N.V. in the Netherlands. 


NOMURA BANK 
(DEUTSCHLAND) GMBH 


SCWVEgBgSCHER BANKVH«N 
(DEUTSCHLAND) AG 


TRMKAUS & BURKHARDT 

KOMMAMSTTGESEILSCHATTAUFAKTEN 


S.G. WARBURG & CO. GMBH 


Holders of registered ordinary shares and registered (convertible) preference shares, whose 
names have been entered in the ordinary share register and (convertible) preference share 
register, respectively, will be notified individually by the company of the amount of dividend 
payable to them. 


WES1DEUTSCHE LANDES8ANK 
QROZSVTRALE 


Amsterdam, 10 May 1994 


ABN AMRO Holding N.V. 


Stichting Administratiekantoor 
ABN AMRO Holding 


ABN*AMR0 


Christiania Bank og Kreditkasse 


U.S. $200, 000, 000 

Primary Capital Undated Rooting Rate Nofw 


NoSoa >• Wwdpy gtan that (Ht Rate of Intenut hat bean fixed at 
5.125% and that Interest payable on Aw reinmt biteretf Payment 




Services), Agent Bank emBANi o 


German City Estates N.V, 
estabUabed at Amsterdam 
mml BBaezti 


to ipayabfe fan 17 Miy 1994 « any office of Iflicnitdooilo Nakriuto But 


Id K form will bo paid in acduage tor floupee aa»W 1- 
25EEJ CP -torot nay 


Amatonhm, lOMty 1994 
TTw Boerri of Ofatcton 


K«*in 


' •/: ..i -it?. 












U ' s Ki ^a n ( 


" 'fir** > . 


“■s 

•:n . 


; 1B 


i*. 


M.u 


‘ I:.,.' ■'>, 
:• ,.. Vr 

• -• r*- k- 

' v t(V 



, V * HVljr 
|,:;, 'il i- ■ 


*S- 


... . iV. 


• • r, " ‘^.t - 

• ■■ :!lr 
•: ~ . 

: ' ir * 

•• •‘•’UliK 

■ . 

PK^l 

. . ‘ K ' l ' 'Vtc Jijl 

• • ' *flr 

. ‘ ‘ : hn lieu 


Kurils Philp 
,ir l" profits 
1° V$46m 

»r *.*►• T:“» 

-• :.v. 

' V. - .rii .; ; 

' '•.*«■ ;j..r 


FINANCIAL TIMES TUESDAY MAY 10 1994 


23 


INTERNATIONAL CAPITAL MARKETS 


Treasuries fall after Fed decides not to tighten policy 


By Patrick Harverson 
In New York and 
Sara Webb In London 

US Treasury prices fell across 
the maturity range yesterday 
morning as traders 
and investors expressed 
disap poin tment at the Federal 
Reserve's decision not to 
tighten monetary policy. 

GOVERNMENT 

BONDS 

At midday, the benchmark 
30-ysar government bond was 
down £ at 84ft, yielding 7.607 
par cent. Prices were also 
lower at the short end of the 
market, with the two-year note 
down ft at 98ft, yielding 6.199 
per cent 

Under normal 

circumstances, a tightening of 
Fed policy would trigger a 
sell-off. However, the bond 
market plunged late last week 


after signs of a strengthening 
labour market had deepened 
concern that an overheating 
economy would eventually fuel 
a revival of inflation, 
and over the weekend markBt 
participants were looking to 
the Fed to raise interest rates 
early this week as a measure 
to slow the pace of economic 
growth. 

Consequently, when the Fed 
funds rate inched up from 3% 
per cent to 4 per cent yesterday 
morning in anticipation of a 
policy tightening, the market 
expected the Fed to signal that 
it was happy with the new, 
higher rate. 

The Fed, however, did just 
the opposite, intervening in 
the market to push the Fed 
funds rate back down to 3% per 
cent 

Once it clear tha 
Fed had not tightened, prices 
fell Anther, although analysts 
were still convinced that rates 
would be raised soon, probably 


before or cm May 17, the date of 
tbe next open market 
committee meeting at the 
Fed. 

■ European government 
bonds opened on a weak note 
in response to the decline in 
the US Treasury market on 
Friday afternoon, and spent 
most of the day “Fed- 
watching'’ in the expectation of 
seeing a hike in short-term US 
interest rates. 

European bonds ended down 
from their previous close, and 
dealers said the focus this 
week was likely to remain the 
strong likelihood of a rise in 
short-term US Interest rates 
and the prospect of farther 
declines in the most 
keenly-watched German 
interest rates at the repo today 
and at the Bundesbank council 
meeting on Wednesday. 

hi Germany, the Bundesbank 
issued DM3bn of the 
Treuhand's new 10-year hood 


which has a GV* per cent 
coupon The bonds were placed 
at an issue price of 100.40, 
yielding 6.69 per cent 

Dealers reported switching 
out of existing 10-year 
Treuhand and Federal paper in 
response to the cheap pricing 
of the new issue, but added 
that there were no signs of 
new cash coming into the 
mnrfcat 

The focus for the bund 
market today will be 
the announcement of the 
Bundesbank's weekly repo 
result The market expects to 
see a further 5-10 basis points 
shaved off the repo rate - 
which is currently at 5.41 per 
cent - with the prospect of a 
follow-up cut in the discount 
rate (now at 5.00 per cent) on 
Wednesday at the Bundesbank 

ry irmf-il TnnnHng 

The bund futures contract 
opened at 04.15 and touched a 
low of 93.96 early in the 
session, then climbed hack 


up to 94.34 and traded at 
around 94.26 by late after- 
noon. 

In France, the central b«nit 
left key rates unchanged at 
yesterday’s repo, but dealers 
said that if the Bundesbank 
cuts at today’s repo this 
could pave the way for a 
further cut in French interest 
rates. 

■ UK government bonds 
opened sharply down in 
response to Friday's US 
Treasury bond sell-off, but 
then clawed back sn»ip of their 
losses leaving long-dated gilts 
to close about V. of a point 
lower on the day. Trading 
volume was relatively thin, 
however. 

The release of strong US 
consumer credit data for 
March yesterday showed that 
the economic recovery remains 
healthy, dealers said. With a 
£516m rise In net consumer 
credit, they point out that the 


chances of another cut in the 
base rate in the Immediate 
future have diminished still 
further. 

The main focus for the gilt 
market on the domestic front 
is the release today of the 
Bank of England's Quarterly 
bulletin and inflation report. 
This Is expected to show that 
inflationary pressures remain 
subdued. 

■ Japanese government bond 
prices held up well and 
closed higher on the day, 
helped by domestic buying as 
Investors returned from the 
Golden Week holiday 
yesterday. 

While cash bond and futures 
prices suffered losses initially 
on the back of Friday's US 
payroll figures, the market 
later made up for lost ground. 
The June futures contract 
opened at 11226 and fell to a 
low of 112.13, then ended at 
112.73. 


Warm welcome for Toyota Motor Credit Corp Y50bn issue 


By Conner Mddebnarm 

Primary activity was subdued 
and most investors r emained 
nn the sidelines as t he markets 
continued their tense vigil for 
the US Federal Reserve’s next 
monetary tightening move. 

INTERNATIONAL 

BONDS 

Only the Euroyen sector saw 
a spurt of activity, prompted 
by the return of Japanese 
investors from last week's 
Golden Week holiday and arbi- 
trage opportunities. 

The largest of the day's four 
new issues, YSOhn of 3% per 
cent bonds due September 1997 
for triple-A rated Toyota Motor 
Credit Corporation, received a 
positive market response. Most 
traders said the bulk of the 
deal would likely be placed in 


Japan, but lesxt manager Mer- 
rill Lynch also reported good 
demand from non-Japanese 
accounts. The issue was 
deemed to be generously 
priced. “They paid due respect 
to current difficult market con- 
ditions,” said me trader. 

Other yen ige™*? included 
YlSbn of four-year far 

De Nationale Investeringsbank 
Via IBJ Tntgmfltimial YlObn of 
two-year paper for the Urban 
Mortgage Bank of Sweden via 
Nomura, and YlObn of three- 
year braids for Sony Capital 
Corp ora tion via IBJ. 

In the French franc sector, 
Credit Local de France, the tri- 
ple-A rated French municipal 
financing agency, issued 
FFriim of 7V4 per cent nine- 
year bonds via Caisse des 
Depots et Consignations arid 
UBS France, which took about 
three-quarters of the Issue. 
According to UBS, the deal saw 


strong demand from French 
institutional investors. Yield- 
ing 21 basis points over the 
9929 re-offer price, the issue 
was deemed to be fairly priced. 

Landesbank Schleswig-Hol- 
stein decided to tap recent 
retail demand for short-dated 
dollar paper by issuing $200m 
of two-year bonds. T.eari man- 
ager . Lehman Brothers 
reported good demand from 
Benelux and Swiss retail inves- 
tors a ttracted by the 6% per 
cent coupon and the short 
maturity, but other dealers 
said the issue would be slow to 
place amid uncertain market 

nnnrWHrmc 

The sterling sector today is 
expecting a £400m braid issue 
for Lloyd’s Bank, split into 
a 15-year fixed-rate tranche 
and a floating-rate tranche. 
Goldman Sachs, Salomon 
Brothers and S. G. Warburg are 
tipped as joint leads. 


NEW INTERNATIONAL BOND ISSUES 


BontMMT 
US DOLLARS 
LB ScNeawIg-HreAsfc Lux. 


Amount Coupon 
m. % 


Ifatimfty Fm 


200 


1375 9949R Jim 1906 a-rSR *20 {5*96-90} Lehman Bros. (EurJ 


YEN 


Toyota Motor CradltM 

De NaUonafc kwaattnoabei* 
Urban Mortgage Bk of Sweden 
Sony Capital OorpuM 

50bn 

15bn 

IQbn 

lObn 

3.5 

3B5 

3.10 

305# 

98.80750 

10000R 

loaoaR 

100T30 

Sep. 1087 
June 1998 
May 1886 
Aug. 1887 

81875R 

82S1 

undad. 

WKfiad. 

- Men* Lynch ML 

BJ Mamatlonal 

Mamn kitsmatianal 

- IBJ Memattortre 

FRH4CH FRANCS 

Cretflt Local de FrencefeKd) 

Gov. Aesot-Bkd Secs. LuxjaJ 

Ifan 

Ibn 

725 

7.625 

99.69R 

99JB9R 

rw-t anna 

Sap^0Q2 

CL32SR 

untfiscL 

+21 COCAJ 8 S France 

- UBS France 

ITALIAN URE 

ABB ML Financed 

ISObn 

9.62S 

10852 

Jurat 2004 

2-00 

CARIPLO 


Rnri terms and non-cdUMe unless statnd The yield spread Cover relev a n t governme nt bond) at tarnch Is suppled by Vie lead 
manager. * Private plac ement. §Corwertbie. $WWi equity w anar ea. t fl oaring rate note. Wnnti amml coition. R: fixed readier price: 
teas are shown at the m-otler leveL 4 Short 1st coupon. b| Coupon pays 35596 until 11855 then 35596 therea fter Cetabia on 
18555 at per. c) Ca— Me on I0.fl.as ■ par and annuafiy thereafter, d) Spread relates to OAT*. 


Otherwise, palmary activity 
is expected to remain thin this 
week, overshadowed by ner- 
vousness regarding US interest 
rates and Thursday’s Ascen- 
sion holiday in most parts of 
Europe. 

• Caja de Madrid, Spam’s sec- 


ond-largest savings bank, 
today is to sign a Slbn debt 
programme, arranger Morgan 
Stanley said. The flexible 
multi-currency facility will 
allow Caja de Madrid to issue 
both public transactions in the 
Euromarkets as well as gmafl 


private placements. The dealer 
group will include Caja de 
Madrid, Chase Investment 
RanV Citibank, First Chicago, 
Goldman Sachs, J. P. Morgan, 
Lehman Brothers, Merrill 
Lynch, Morgan Stanley, SBC 
and UBS. 


Schroder Ventures 
raises $100m for 
healthcare fund 


By Daniel Green 

Schroder Ventures has raised 
SiOOm for a venture capital 
fund to specialise in life sci- 
ences including biotechnology 
and healthcare services compa- 
nies. 

The International Life Sci- 
ence Fund is Schroder Ven- 
tures' first fond to invest in 

several countries and in a spe- 
cific industry, said Dr Henry 
Simon, a partner and head of 
the investment team. 

The vehicle is a 10-year 
closed-end fond. About 60 per 
cent of investors are in the US, 
27 per cent in the UK and the 
remainder in continental 
Europe and the Middle East. 

Hie SiOOm was raised over 
an 18-month period. This was 
longer than expected, conceded 
Dr Simon. He said that US 
investors had been cautious 
about an international fund, 
and Europeans were wary of 
venture capital vehicles. All 
had concerns about the impact 
of healthcare reforms on the 
profitability of the sector. 

Nevertheless. Schroder Ven- 
tures succeeded in raising 
almost twice as much as last 


month's Rothschild Asset Man- 
agement's International Bio- 
technology Trust which 
secured less than £40m. com- 
pared with a target of £100m- 

Tbe Schroder Ventures trust 
will Invest in several sectors 
within healthcare in Europe 
and North America. 

Pharmaceuticals and bio- 
technology should take about 
40 per cent of the total. The 
fond will seek companies 
researching into disease areas 
such as cancer and virus infec- 
tions, and those involved in 
technologies such as gene ther- 
apy and transplants. 

Between 5 and 10 per cent 
will go into each of: 

• Healthcare services, such as 
specialised clinics: 

• diagnostics, such as home 
tests; 

• medical devices including 
scanners and monitoring: 

• and environmental products 
and services such as biochemi- 
cal waste treatment 

The fond will invest a signifi- 
cant proportion of its capital as 
seed money and early stage 
investment. 

UK companies will be a high 
priority. 


Czech paper to support trade 


EGAP (Czech Export 
Guarantee and Development 
Corp) is p lanning international 
bond issues to provide 
long-term funds which 
companies can draw upon to 
support international trade 
operations. Renter reports 
from Prague. 

“We will definitely issue 
bonds on the international cap- 
ital markets.” Mr Amost 
Bohm. EGAP vice-general-di- 
rector said. 

EGAP is to launch an export 


credit bank this week. The 
hank. Ceska Exportni Banka, 
was expected to begin with 
KcslJjbn ($51m) in basic capi- 
tal, two thirds provided by the 
National Property Fund and 
one-third by the Czech 
National Bank. 

A change in Czech banking 
laws, to allow for the operation 
of an export bank, has yet to 
be passed. Mr Bohm said gov- 
ernment ministers would prob- 
ably send the law to parlia- 
ment by the end of this month. 


: »'C. 


•LBS 


&1*J 






. *• • iV* ’ 

■Jfi* 

•tyt-!-' * 1 
, A ;i I*--’''* 

* . ; 


1^“ ^ 


, i . 
it " 


a.H* S 


■tf 4 


V 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 

Red Day's 

Coupon Dole ftlca. change 


Yield 


_ago_ 


Month 

■6° 


Italy 

■ NOTIONAL ITALIAN OOVT. BOND (HTPJ FUTURES 


FT-ACTU ARIES FIXED INTEREST INDICES 


Plica Mces 


Mon 


Day's 


Accrued xd a4 


-Mgh coupon yield — 



Austrafia 


9-500 

08X73 

1035800 

-0-900 

892 

8X5 

803 

, . . 

Baigken 


7.250 

04X74 

975800 

-0520 

759 

750 

7.16 


r^marta • 


6£00 

08X74 

85.4000 

-0500 

871 

834 

759 


Denmartc 


7.000 

12X74 

982500 

-0X50 

752 

756 

657 

' ' 

France 

BTAN 

BAOO 

05/96 

1065300 

-0220 

832 

822 

5.76 

•, ■ 


OAT 

5500 

04X74 

887700 

■•0510 

7.11 

893 

655 

"■ 

Germany 


6.000 

06X73 

655500 

-0040 

850 

848 

ft 3ft 

- - 

Italy 


8500 

01X74 

880000 

- 

awt 

9.06 

656 

r -•!; - 

Japan • 

NO 119 

4J500 

06/99- 

108S81D 

<•0130 

354 

353 

3X6 



No 157 

4500 

08X33 

1035840 

-0070 

396 

3.89 

4.00 


Nethalanda 


6.750 

01X74 

925800 

-0X00 

885 

864 

840 

— 

Spafci 


18500 

10X73 

4045000 

-0500 

9.71 

8 X 8 

893 


UK Gita 


8000 

08/99 

01-25 

-12/32 

755 

755 

7.19 




8750 

11X74 

88-10 

-802 

829 

806 

754 




9.000 

10X78 

105-02 

-12/32 

859 

817 

752 


US Traaewy 

• 

5.875 

02X74 

89-05 

-27/32 

7X8 

7.12 

890 



8250 

08/23 

84-05 

-2502 

751 

757 

7.28 


ECU (French Gov4 

8000 

04/04 

895400 

-0020 

758 

755 

893 


(UTTET Lira 200 m IOOBib of 10 OK 





UK Gita 

May 9 

change % 

May 6 

interest 

ytd 

May 9 

May 6 

Yr. ago 

Moy9 

May 8 

Yr. ago 

May 9 

May 6 

Yr. ago 

Open 

Sett price Change 


Low 

Est voi 

Open M. 

1 Up to 5 years (22) 

12157 

-016 

122.17 

152 

454 5yra 

800 

7.92 

758 

823 

812 

757 

831 

653 

7.61 

Jun 111.00 

111.12 -057 

11155 

11056 

33853 

78523 

2 5-15 years (23) 

141X1 

-0X6 

142.10 

155 

552 15 ym 

832 

823 

855 

841 

833 

846 

872 

8.62 

872 

Sep 11010 

11034 -030 

IIOXO 

110.10 

315 

2882 

3 Over 15 yeora (9) 

158.79 

-080 

16007 

2X2 

456 20 yra 

832 

823 

828 

8X1 

833 

856 

856 

848 

877 







4 Inedaemablea ( 6 ) 

17843 

-080 

17956 

033 

012 kred-T 

650 

832 

882 













5 Al docks (00) 

13897 

-044 

13859 

1.72 

452 










■ ITALIAN GOVT. BOND (BTPJ FUTURES OPTIONS (UFFQ Lka20Ckn lOOtha Of100% 







_ 

— Motion 6 % — 

- 

— 

-Motion 

1 1044 — 

— 



Strike 

Price 

Jun 

■ CALLS 

Sap 

Jun . 

- PUTS 

Sep 

11100 

• 091 

' 2.17 

0.79 

253 

1115D 

006 

154 

1.04 

3.10 

11200 

0X6 

1.72 

154 

358 


Em. voL total Cast 1605 pm 1568. Previous day's open nu CBfc 81008 Pula 75575 


London dotaig, Warn York Md-dey 
T Qnas fncfcjfine wkNuMkig tm M 12£ per i 
ntcas US. UK ki aSnOs, ctaKni ta daeknai 

US INTEREST RATES 


YtaidM uwai mM etandtad. 


■ MOHOWAL SWUW 8 H BOND FUTURES (MB=F) 


Open 

94-90 


UnhttnM 



Tierney Bfib and Bond Ytekte 

489 Tan nor 

4.11 TbaayiM 

4X3 Rtayor 

480 IQ-jnar 
&4B anew 


SoM price Chongs 
95.23 -O.0S 

9485 


Ugh 

95,25 


LOW 

94.60 


EflL vcL Open kit. 
46.478 113.783 

215 lass 


6-16 

681 

783 

743 

788 


BOND FUTURES AND OPTIONS 
France 

■ NOTIONAL FRENCH BOM) FUTURES (MATTF) 


Jun 

Sep 


UK 

■ NOTIONAL UK GB.T RflUREB (LlFFg* £50,000 32nd» ol 100% 

Open Sett price Change Htfi Low EM. Ml Open tax. 
Jun 102-28 103-02 -0-12 103-08 102-18 51731 124408 

Sep - 102-08 -0-11 0 398 

■ LONG «LT FUTURES OPTIONS (UFFEJ ESO.OOO 64tha of 10046 


Open Sett price Change High Low 
Jui 11888 118.84 -080 11984 11880 

Sep 11788 11788 -0.48 11804 117.82 

Dec 116.98 11686 -0.48 117.08 116L80 

■ LONG THTM FRENCH BOND OPTIONS (MATT) 


Est mL Open kit 
160865 128.441 

3878 16889 

1861 3807 


Sdwb 

Price 

Jun 

, CALLS 

Sep 

Jun 

- PUTS 

Sep 

103 

1-12 

2-27 

1-08 

3-15 

104 

0-47 

2-01 

1-43 

3-63 

IQS 

0-27 

1-42 

2-23 

4-30 


Eat. Ml total Cans 1466 Put* 278a. Pitafeus dB/a open It. cab 100243 Pin 82414 


Strtce 

FMco 

Jun 

— CALLS 
Sep 

Dec 

Jun 

— pure — 

Sep 

Deo 

119 

060 

152 

- 

055 


- 

120 

040 

1.11 

154 

094 

250 

- 

121 

0.14 

070 

- 

157 

- 

- 

122 

054 

050 

- 

251 

- 

- 

123 

- 

- 

- 

817 

- 

- 

Em. voL total Calls 47X73 

PUS 38,812 

Previous day's opsn taL COta 474537 Pub 368X81. 


Ecu 

■ ECU BOND FUTURES (MAtiq 


Germany 

■ NOTIONAL GERMAN BUND FUTURES (UFFET DM250800 IQOOw 100% 



Open 

Sett price 

Change 

Fflgh 

Jun 

94.15 

9454 

-059 

9455 

Sep 

9860 

9873 

-028 

9878 

■ BUM) RJTURES OPTIONS QJFFE) DM280500 pi 


Low 

9386 

9380 


EaL ml Open kit 
112007 181821 

2610 17809 


Jwi 


US 


Open Sen price Change 
8586 8582 -038 


Hgh 

8582 


Low 

8&44 


EaL ML Open kiL 
1821 8893 


■ US TREASURY BOND FUTURES tear) SI 00800 32nd» of 100% 


Strike 

Price 

Jui 

■ CALLS - 

Sep 

Jun 

■ PUTS 

Sep 

9400 

076 

1.45 

052 

1.72 

9450 

050 

152 

076 

158 

9900 

030 

151 

1.06 

228 



Open 

Latest 

Change 

High 

Low 

Eel voL 

Open rt. 

Jun 

102-11 

102-02 

-0-13 

102-14 

101-27 

687554 

393548 

Sep 

101-12 

101-08 

-0-13 

101-15 

100-29 

9552 

61562 

Dec 

100-24 

100-16 

-0-17 

100-27 

100-11 

729 

2585 


Em. voi cool CMS 11082 Pub 7013. Pimuteua day's cpsn taL CMta 315782 Puis 204839 

■ NOTIONAL MEDKJM TERM OSMAN OOVT. BOND 

(BOBLXUFFET DM250800 IQOths of 100 % 


■^NOTIONAL LONQ TERM JAPAMSE OOVT. 
(UFFE) YlOOm IQOths of 100% 


BOM) FUTURES 


Jun 


□pan 

9985 


Sett price Change 
10083 -088 


Low 

8085 


EeL vet Open lot 
48 1789 


Open Ctoae Change High Low EaL ml Open km. 
Jin 112.76 - - 11285 11286 1879 0 

* UFFE uw ta a cts sactad on APT. Al Opsn kasMst qgs. srs tar previous dor- 


„UK GILTS PRICES 


_Md_ ■_ 19M_ 

h Rad Pitas £ + or- >«» Lo* 


Shom“ OHM oats Hm Vsont 

Trent. IltaCtn.1»4fr_ 9-35 

Oar 12 ’xk taw rzzt 

Tisa>Bpc1W4t» 683 

1!peiW 11.47 

Ettt&a* 08-95 386 

HHtpcISK 0.78 

IneiTZtocIBStt 1180 

14k 1806 1280 

15^pciam 1380 

5dimpcl900U 11 -B! 

ftnanhalfecIM-. 941 
Tt«3» lavpc 1867# — 1180 


Each KPspc 1007. 
IrtNUiKl997#. 
EtdM5*100? 


1Vw7ye»9ML- 
rrass61|pc 1005-68#- 

llpew^i 

TrealStjpcVBtt 

EahUpcim. 
TiaaS^cir 


Rm UFOnsaTMa 

Mi lHapc 

Tre» iflJjps i860.™— 

Traafipc 10M42 

Omental lO^pc 1909- 

TiasRgfttaVO 



Tress I3pc ffloa 

ICW 3301 

Twmtt 

?pcm *_ 

eVpc3302 

ftpf WVWff 

3 Ope 3X33 


ft 78 

&a 

1234 
9Xt 
7.40 
687 
1188 
12.1S 
1030 
a in 


1058 

070 

084 

045 

ftTO 

ian 

927 

783 

78* 

9.1D 

022 

ftlfi 


SJMIOOBN 
£09 K 2 Ps 
520 101 BN 
532 104U 
482 98 

584 105 

521 109AM 
£44 112 

0.71 115& 
&73112&N 
7221082N 
7-36 114* 
7.43 1077. 
782 UBA 
777 121 li 
781 1058 
784 90 

788 96tJ 
8.12119% II 
880 127*8 
8.14114AD 
0.10 KBA 


US 1154* 
B22108LN 
784 91 IS 
&291Q8&9 


121 IQS 1 * 
147 121B 
145 107B 
125 S3)d 

128 tn 
431 1074 
&40 07 W 
152 109,1 


iazd 
,-ii 10 « S 
-i 103fi 
107* 
91 

-v. von 

-A ns*, 
-A «7A 
-A ink 
-A 117B 
-k 112A 
-A 121H 
-A 114* 
-* .no* 
-* ma 

-A 114S 
-* 100 * 
-* 102 
•**» 131* 
-It I40A 
-L 12® 
-tt »ft* 


->• 126* 
-1% 121* 
-A ioiD 
121B 
— ■ 00B 
-U 11M 
-il 13« 
-B 122* 

iS 

-ii i»ft 


Trees 11 > 2 PC 2001-4 — 

1008 Rndhg 3*2i>c VO-4 

lOAr CaawtaB«ti>ca»4_ 

ima Tress04,pc2DO«$t 

^ CWr 9*2 pc 2005 

"2 Trees i21ppc 2003-5 — 

™ 7*pc20QBtt 

U2 0 W 200 MB 

us* 2225S25R?— 

Ill* teasft^aw#— 

106* IftlaSCW-O — 

114* TOM Spc 200044 

107* 

103* 

121U 

1D5S 

c&l OreHnesTtai 

1«5 710* OP 6 2000 

4*7* TTW6 Wpc 2010 

114* Bars* la 2011 — 

105A Tnta0pca«» 

Tiw 5^002000-12^. 

Trees Spc 2S13U 

7%pc 2912-15# 

Tims 6St pc 2017# 

7158 Eaai2pc 13-17 

106*4 

01B 

I09A 

i 

loa _ . . . 



St 

gm GDn»3JjflCei«. 

107^ TtamflK'BBM — 

07* OxeokZkCC 

109* Tnm2*2pc. 


U Hat McsE 


— 1004 — 
is- Wl Low 


d_ — 1994 — 

B Meat for- H# law 


1080 

484 

887 

787 

185 

1X14 

ai4 

12B 

1101 

MS 

1036 

887 


187 114* 
7A0 72JJ 
844 157* 
128 89*11 
144 107* 
&B1123*ri 
885 95>4 

184 888 

182 117* 
887 100% 

aa iso* 

887 105 


-a iBB 
- 1 * 88 * 
-a 735* 

-ft W5*» 
-li 

-fi 143* 
-H 113B 
-ft 111% 

-ft weft 
n« 

^1 1BT* 

-M 134R 


114ft 

72* 

W 

Oft* 

1071, 

95>| 

90B 

117B 

100B 

130* 

104% 


M 

lists. 2PC94 T 1 tEJ» 

SaeV fZ7J$ 

2<zW01 (783 

2 %WW- pan 

4%peW# — (138® 

a*U8 {Baa 

2»a*YB 

(744 

npc-ra 008) 

skpe’je Bill 


akfcntt (0 77} 154 106 112* 

4 J wta'3cS (135.1) 35B 380 Hlfl 



SrS . 


129 

138 

96% 

-H 

iuA 

785 

Ban 

Bind 

-a 

084 

852 

838 

1063 

-H 

1283 

150 

135 

106B 

ft 

127% 

750 

111 

754 

-B 

«% 

827 

132 

06V 

-II 

1176 

a an 

U1 

044 

-*i 

114% 

138 

850 

1044 

-a 

120% 

984 

&52133BM 

-i& 

190% 


9BB 

B1H 

IDS 1 } 

105B 

75ft 

9ft 

94* 

104* 

132* 


raal led w ii p aon rata on pnlsetad Mtaden of p) ION 
and P) ML M Rare in pannBwen show RPI Base tar 
tadareng pa 8 monhs prtor to laaual and ha*a Bean aefustad to 
raOact rabeWig of ffi>l to 100 ki JiniiBy 1987. Comoreon tactor 
3A4S. Rrt tar August 1993: 1418 and tar March 1884; 1428. 

Other Fixed Interest 


153 

- *% 

ft 

99% 

851 

- 42%ai 

-a 

«H 

BJM 

- sm 

„„ 

71 

180 

- 34% 

ft 

44% 

8X7 

- 23% 

-A 

36% 

158 

- 29% 

ft 

37% 


46% 

41S 
67U 

34% m*Js*vb3V:2C21. 
20% 44tKL2D2l. 

280 WltartataelS 


tfctWe.Spe'B'- 


_ Ytoid _ 



_ll 

H 

fed 

Price E+»- 

Mgh 

173 

RBQ 

ia»f 

-ah 

1424 

903 

168 

icij 

-sS 

138% 

852 

123 

lift 

-4^ 

142 

143 

— 

101 

■A 

116% 

MB 

— 

100*4 



103% 

1157 

_ 

109% 

- 1 % 

113% 

1040 

1038 

95S 

144*4 

130 


raw* 

149% 

953 

— 

37% 

-1 

44% 

in 

— 

S3 

-l 

40% 

1052 

956 

114% 

-4 

136% 

4X4 

855 

67% 

- 1 % 

n 

_ 

431 

135 

-Z 

150% 


42B 

120 % 

-Vt 

145% 

11.72 

- 

1«V 

- 2 % 

156% 


JWun Dor 11% 2010 

Mtai Das HAtoc 2009— 

81*511^62012 

tatadap8i»cno 

NeCwlflBB 

13peV7-2 T187 - !0S»j —1*4 11» 109*2 

BWoIMk 15pc2D 
Iaadii3^reczai6_ 

Ueoaal^BfeiaL. 

LCC3pB*20ML 


May 9 May 6 Yr. ago 


May 6 S Yr. ago 


6 Up to 5 yeera{2) 

7 Owr 5 yserofll) 

8 Al socks (13) 

Debentures and Loane 


184.49 

17585 

17595 


-002 

-au 

- 0.12 


18454 

051 

253 

Up to 5 yra 

356 354 

2.74 

253 

250 1.94 

176.19 

052 

159 

Over 5 yra 

352 160 

3.59 

3.44 

3X3 3.42 

17117 

057 

1.77 


S year yield — 

_ __ 

15 year yMd — 

25yeer yield 


May 9 May 6 Yr. ago May B May 6 YT- apo May a MayS Yr. ago 


9 Dabs 1 Loane (76) 129.19 -0.18 129-43 2-33 

Aareg. gtisi loda n rettan yMda era tanon sbowa. Coupon BtndK Loon 0H-7WN; 


4.17 980 9-51 902 046 9.45 

MaduK SK-10K%: Htah- 11H aid ova. r Rai ytakL yld Vow ta data- 


9-55 943 


8.39 


9.70 


GILT EDGED ACTIVITY INDICES 

Mays May 5 7*jy 4 


May 3 Apr 28 


FT FIXED INTEREST INDICES 

May 8 May 6 MayS May 4 May 3 Yriqo Hgr Low 

Govt Sees. (UK) 93.20 83^8 9L27 94.08 95.18 94J6 107.04 9320 GBt Edged bargatas 104.6 103^ 95.1 B&O 88.0 

Raed bitaraet 112.15 112L91 11298 11257 114^45 11095 13397 112.15 5-ctay average 95.4 97.4 100.1 1029 103.1 

• lor 1 BB«. GwammaH fiaewtaos ores cnnpirelore 1Z7-40 R7V3S. tow 48-18 gn/75). Hoad tatareot htfi otaca co mpaa U on: 133-B7 . tow 5053 p/1778 . Baata 100: Qotammwtt Sacxlboa 1S.H1V 

36 wta Fbed karat teal 8 E actMy tadeao raeoaad 1974 


FTASMA INTERNATIONAL BOND SERVICE 


ureadtaattatatareH a nMonre Bondi far whtah BireetaanadaquataaacondaymaritaLLateatprioaaatTJOpoionMayB 
taauad BM OOre Chg. YMd tared BM Otfar Chg. 


Issued BU OOar Chg. 


US. DOUAR 5TRNQH1S 
Abbey Treasuy 6 *| 03 . 

10% 85 

18*100 . 


aw* ol Trego 8 % 96. 

BeKMnflS|9B 

WCE7?*97 

MtaiG»021 

1096 


ISO 


Cheun Kong Hn5*j 06 ■ 

09*6*9 04 

duel Bmps 6 96 

QaS Fonder 9*z® 

DsnakftX 

HSC 6 *sM 

EEC8**« 

EB7*9B 

10*4 07 . 


1000 


.1000 


.193 

too 


EtacdsFonaOSe. 

Eucftne9*a 06 

E»4n Bank Japwi 6 02 . 


E*xst D&t Cup 0*j 96 _ 

FWwd7%97 

%nreib¥*l0J|® 

Rxd Motor Craft 6 *« 08. 
Qoi B*| 06 _ 

GMAC9*8 9E , 


500 


1500 


tad Bk Japan Fta 7^ 97 . 
MwAnwDsk7isM_ 
Hdy6%23. 


Japan Dav Bt 8 *« 01 

Kama! Bee Par 1086 _ 
Krese &c rc wrft 03 . 
LTC 8 Fnfl B7 


.3500 


.350 


:7*4 02 — 
rtaponCredaiO*iBS. 

No I*w7*4 97 

0ntano7>i03 


1000 


Qatar KonboKank 8*2 01 . 

Mre-Canadi 7*4 08 

Pomgel5*» OS 

Qu4boc Hydo 86 

Quebec nw99B 

Eanet*iy9*i 08 

SAS 1095 

58*69*2 86 

SNCFStiBB 

e*tl 6*2 00 i 


200 


1000 


8 k NSW 6*2 90. 
5*tS. 


1500 

.200 


SaafahEqxitftB 6 _ 
TreqoBsc Power 8 V 06. 
Te^eiMrepetaS^®- 

Ti^cta Moto 5*. ® 

Lifted a^son 7*4 02 _ 

Wtakf Bank 8^98 

Wwd Bar*&^ 97 


2000 


1500 


. aooo 


DBI1SCHE MMK snuons 


AutataS *2 24 
CWIFcncta'7%0g^_ 

2000 

~_3)Q0 

bnnk A*j BA 

3000 

Dapta Ftaancs 0 % 03 

1500 

Dotaha Bk Fh 7*1 03 

3000 


700 

mnAl 7 m 

2900 

ntflUno .... 

1500 

tani 7 % nn 

3000 

a^.A.aa 

5000 


1500 

rtaBrinft na 

1500 

MiAi« 

4000 

9MdtnaB7 

2600 


00% 

90% 

-% 

ao4 

104 

104% 

-% 

837 

104% 

104% 

-% 

752 

102% 

103% 

-% 

178 

108 

100% 

-% 

752 

102 

102% 

-% 

103 

1ft 

1ft 

-% 

164 

104% 

104% 

-% 

6X7 

89% 

00% 

-% 

146 

85% 

85% 

-% 

897 

102% 

raft 

-% 

174 

108 

raft 

-% 

7X4 

06% 

06% 

-% 

640 

103 

108% 

-% 

690 

103 

raft 

-% 

887 

102% 

102% 

-% 

655 

raft 

106% 

-*2 

7.19 

105% 

raft 

ft 

728 

104% 

104% 

ft 

653 

101 

W1% 

ft 

753 

107% 

107% 

ft 

754 

102% 

raft 


682 

104 

104% 

ft 

637 

96% 

9ft 

ft 

75} 

105 

W6% 

ft 

171 

W3% 

10ft 

ft 

750 

W1% 

102% 

ft 

7.14 

101% 

102% 

ft 

676 

aft 

aft 

-1 

170 

103*4 

raft 

ft 

723 

108 

raft 

ft 

151 

85% 

86% 

-1% 

654 

102% 

102% 

ft 

753 

0ft 

9ft 

ft 

105 

1QS% 

raft 

ft 

an 

W1 

101% 

ft 

688 

90 

96% 

ft 

118 

t03% 

104% 

ft 

724 

KM 

101% 


520 

85% 

85% 

ft 

110 

107% 

107% 

ft 

722 

105% 

raft 


7.« 

104% 

104% 

ft 

7.16 

106% 

187 

ft 

B!» 

103% 

104% 


623 

M7% 

108 

ft 

7JT 

05% 

06 

ft 

7X7 

W3 

109% 

ft 

633 

09% 

Oft 

ft 

60S 

103% 

103% 

ft 

151 

103% 

104% 

ft 

684 

100% 

103% 

ft 

652 

95% 

05*2 

ft 

757 

90% 

07% 

ft 

725 

104% 

«5% 

ft 

7X0 

W5% 

raft 

ft 

653 

8ft 

8ft 

ft 

750 

101% 

102% 

ft 

609 

10ft 

100% 


&m 

95% 

56 

ft 

658 

102% 

102% 

ft 

7.14 

106% 

10ft 

ft 

554 

100% 

«0% 

ft 

6X2 

90% 

9ft 

ft 

8X0 

t®% 

T 04 


855 

103% 

raft 


630 

100*2 

100*2 


UB 

33% 

9ft 

ft 

7.16 

100% 

101 

ft 

7.13 

106% 

10ft 


110 


Llftal Ktagdcm 7*a 97 _ 
\WraganMRn703. 

Worid Bar* 0 15 

Wbrtd8ark5%03 

WcridBHrfcS3|00 


SUBS FRANC STRNQKTS 
Aotai Qw Bar* 6 10 

Ausbta4*2 00 

Couid Euope 4\ BB 

DrerakA^ 99 , 

IftW 


Bac da France 7^* 06 . 

RntadTV®- 


>VnM Motor Fta 8*2 97. 

fcetand7^0D 

Kobe 6 *| 01 , 


6*« 03. 


Qiebec Hytkti 5 06 . 

S4CF704 

WUdBwft503— . 
Wodd Bar* 7 01 — 


5500 

103% 

103% 


552 

Abbey Nta Traesuy 8 03 £ 

1000 

03% 

93% 

ft 

050 

1000 

98 

Wft 

ft 

7.15 

Aloes Lake 11% 97 £_ 

100 

W8% 

108*4 

ft 

708 

2000 

2ft 

25% 


670 

&8hh Lred G% 23 £ 

190 



-% 


3000 

03% 

03% 

ft 

652 

BB ID 07 £ 

637 

106% 

105% 

ft 

722 

1250 

112% 

112% 

ft 

654 

Kara 10% 07 £ 

100 

106% 

105% 

ft 

754 






Honan 10% 97 C 

500 

105% 

106% 

ft 

830 






HSBC Haklngs 1159 02 £ 

153 

111% 

112% 

ft 

963 

-100 

103% 

104 

-1 

556 

tally 10% 14 £ 

400 

100% 

109% 

ft 

M3 

1000 

95% 

99% 

ft 

450 

JtareiD*rBk700£ 

200 

93% 

93% 

ft 

838 

_2SO 

100 

101 

-1 

4.74 

Und Secs 9*2 COE 

200 

89% 

100 

ft 

057 

1000 

BB% 

96% 

ft 

45* 

CWeto11%01£__— 

■ TOO 

109% 

110% 

ft 

059 

-300 

106 

106% 


520 

Fovagen8% 03 E _____ 

20 

0B% 

98% 

ft 

aw 

w 

110% 

111 

ft 

607 

Sown Trent 11% 99 £ — 

150 

110% 

11(ft 

ft 

857 

.300 

100% 

110 

ft 

613 

Tokyo Bee Power 11 01 C ISO 

110*4 

110% 

ft 

607 

IDO 

107% 

106% 


50* 

WreM Bo* 11% 05 £ 

100 

104% 

105% 

ft 

615 

100 

110% 

111 


552 

Athey toanel 0 96 NS — 

— — 100 

83% 

6*% 


850 

_3M 

106 

106% 


535 

TCNZfin9%0ZNB 

75 

105% 

106% 


131 

.<00 

raft 

TO* 


6GB 

CEPME 10 95 Hr 

rewn 

104% 

104% 


SSB 

.100 

95 

96 


6S2 

Or da Race 8% 22 ffr_ 

3000 

108% 

108% 

ft 

101 



111% 

-% 



jmn 

107% 

107% 


6l35 

-ISO 

08% 

99 

ft 

621 




GOO 

110 

110% 


622 

FLOATING RATE NOTTS 







YEN 8TRAIQKTS 

Bft9tan5S9 

EBB 5 * DO 

FktandB^® 

tato/tner Dw 7*, 00 . 
lay 3*2 01 . 


Japan Dev B(S69 

Japan DwBk 6*2 01 . 
Nppan Td Id 5% 96 . 

No tm*5hB7 

8NCF6%00 

Spata 51*02 

Sudan 4^ so 

Wrt Bank 5*4 02 — 


.75000 
WOOD 11A 
.50000 108% 
- 30000 116% 
95*i 


IG5*| 

113 

10ft 

lift 


4 in Abbey Nomaewy-i®. 
BanooRreneO® 


Oder Cqa 


.WO 

.200 


100000 105*2 
120000 114*a 
.50000 106*2 
.150000 10ft 
113*2 


95*. 4*4 

10ft 4*4 


.125000 10ft 
, 150000 10ft 


lift 

10ft 

10ft 

lift 

10ft 


ft 

ft 

ft 

ft 

ft 


250000 raft 


CITHER STRAIGHTS 
Abed 7*2 951ft. 


.600 


100 

(tartan Uk ft 69 lit 1000 108 

WattBfffcBKLFT 1000 101*2 

Baft*tarNedGeoift02R. 1008 102% 

Erw^BSWareft SBR 500 lift 


Afawtaftnrewe 1ft «C5. 
BdCwadalftWCS — 

a«taiQ9cnetat09SCS- 

BS 10*i 08 CS . 


Bbc ik Race ft 39 C$ . 
OanBacCopM 106BC5 . 

WWKRnlQOICS 

ftfeprei TdTal 1D*a 09 CS . 
Onta* 8 CO CS. 


_ 500 103% 
-150 105% 
.500 103 

.130 105% 
.276 10ft 
.300 102% 
-400 104 

-200 105% 
1500 Oft 


CMa*t*aoio%»c$ 500 raft 

feta KaMai* 10% 09 CS_ 150 105% 

OjabacPmlObsaCS 200 104*2 

BdgtanftOBEoi 3250 loft 


Qand Bat* 0 01 Ecu . 
CrafllL)Oi«b996GBJ. 
11007 Ecu 


FomcMSbi 10*gB8Eai . 

Idy 10% 00 Ecu 

Spain 996 Ecu 1000 104% 

Un9ad Nngdren 9% 01 Ecu 2750 109 


.run ia7% 

- 125 104 

1125 106 

-500 100% 
.1000 lift 


ADC 10 WAS 


100 100% 
100 107% 
lift 
106 


BPAmarica12%96A5 _ 

Conan ft Aotafe 13% 99 AS _ 100 

BopOflfctas 12% 86 AS 75 

HBDBnd*fena*i5BbAS U 0 10 ft 

IOV Treasury 2 bo 020 AS — 1000 ft 

R&IBar0(?%<BA$ 125 86% 

S8lAWQMRl9Q2AS 150 W 

12 96 AS 150 lift 


10ft 4% 
107% 4% 


101 

109 

102 % 

103% 

111 % 

104% 

106% 

10ft 

10ft 

raft 

103% 

104% 

k6% 

9ft 

W7% 

106 

105% 

104% 

106% 

104% 

100 % 

109% 

1M% 

105 

109% 

10ft 

107% 

lift 

106% 

10ft 

ft 

«% 


7.14 


-% 
ft 
ft 
ft 
ft 
ft 

ft 
ft 
-% 
ft 

ft 
ft 
ft 
ft 
ft 

ft 
ft 
ft 
ft 

ft 
ft 
ft 

96% -1% 
110% ft 


Begun ,*, 07 DM 

RFTF J1IB 06 

-500 

atari* 0.10 96 f 

- 150 


2000 





lkaBharHnancs £9B0M 

Fern dd Sot 6KJ 97 

1000 

-420 







LKB BatavWkMl Rn -% SB 

UoydB Bank Pop SOW 

1000 

.800 

Nov Tfectand ft SB 




MaDflB ... 




StoaWtaftEtati-tUSPBPM _ 
Stale OiVtotarta 056 99 


Sarafan 098 

1500 


0021 

09.75 
10026 

93.78 

0094 

9040 

0180 

naan 

9050 

nant 

W.13 

0991 

99-97 

9981 

10Q38 

99-54 

83.75 
9070 
BQ.78 
0034 
9038 
9047 
9095 


017 

&S6 CONWBnmX BONDS 
035 

ace 

B93 a nantagf e uta6%05 - 

02 CNMCWNBOO, 

Easkrai Kodta 6% 01 _ 
757 Gcta KatgoorlB 7*2 DO _ 

MO Ham 0% QBE 

today Prrefl 02 

1S& Lmd Saca 6% 02 £ 

7-62 Lasno7%05£ 

537 MSU Bar»2% 03 

7jM Moat laa Fin 6*2 07 

&OT Ned Ftaaer 6% 0B £ 

7ta OgdanBOB. 
ore, - . 


.4000 0079 


fin 


9034 
9993 
10014 
op on 

10005 

9040 
8906 
9036 
9061 

10004 

10027 

anno 

10006 
9072 
10044 

0064 
0010 
10002 
an an 

9041 
B955 
aaia 
ME® 
9092 

loom 

9U5 


07856 
06750 
5J750 
34175 
■jump 
431 25 
02500 
50000 
37500 
54888 
40375 
34141 

aamn 

34400 

4.1250 

4662S 

4.1000 

52500 

36126 

Mm 

33750 

4J3312 

£9040 

35344 

X7500 

36250 


uyiMO Q u< 

a*» Parraui 4% 03 - — 

634 StntonD Ba* 3% 04 — 

Sul Atones 7% G6 £ 

&44 Teats Cap* 0 05 £ 

925 Tensh*unaA2%m. 

870 ■ »> tara *- — 

aw 1 0ta ana i 


Inred 

Price 

M 

OHre 

Plant. 

400 

S2% 

90% 

01% 

WAS 

250 

95 

102% 

103% 

*5351 

300 

4152 

107% 

100% 

-150 

_ S5 

15564 

108% 

110% 

43652 

500 

25875 

113** 

TM% 

*1020 

40 

111 

135% 

138% 


84 

622 

101% 

103% 

+4.13 

-80 

564 

87% 

«l 


200 

23328 

88 

SO 

*14.12 

100 

226 3 

101 

102 

+1727 

250 

453 

106% 

107 

467 

-85 

30577 

07% 

88*? 

+8868 

500 

117% 

03% 

94% 

*2356 

300 

36085 

68 

BB 

+1680 

155 

39 

100 

<00% 

♦17.12 

200 

251 

116% 

117% 

+31.14 

an 

B-ii 

104% 

105% 

+1450 


rdag^iaba 
i pan 


rjoatmg Rare 


taThe>Mdt 
■OlEs Dar 


i*avta taWni tewwi Worei • nitam SresreMMsta abma aram cAbm neo (Uiee iiuali Staove mean sad tar US dobra. Cqa^lte nma 

Qw. pacwMBM wdbus Ik Hnd par alrere e^mad m Bunncy re Oiaie at tamowai Bta tod re teue. Praiki 


onere aeaedva pnoa re areetaB anares ire 9 b 0 M o«r Bre moat reeere pdoa re tae 
0 17a Rnandd Ttaea lal. 18B4. fttaatowin ta oMta ar irt pan at My tarn am pamtaad Mires raan eravt. a* aresM by kaamretata SaortlES Masse Aontaan. 


flags psnium re toe 


y 


Tm" ateato tj TeaJtae n nonnaredwra rei anreBaam C Ausdan baata. ad Et tAndand- Cfataig niiiFpiieae era anean m peinlB. 






24 


FINANCIAL TIMES TUESDAY MAY iO 1994 


COMPANY NEWS: UK 


Babcock 
ends year 
with £41m 
deficit 


N Brown rises 18% but 
cautious on recovery 


By Paul Taylor 

N Brown, the Manchester* 
based direct mail-order group 
which specialises in clothing 
for older women, yesterday 
reported an 18 per cent 
increase in full-year pre-tax 
profits. 

For the 52 weeks to February 
28 profits were £22.5m. against 
£19m, on turnover ahead 9.3 
per cent to £18&8m (£170 An). 

Earnings per share were 17 
per cent higher at 20.83p 
(I7.74p), and a final dividend of 
5.75p makes a total of 8p (7p). 

The company also 
announced plans for a l-for-l 
bonus share issue to improve 
the shares’ liquidity. 

The shares closed up 2p at 
477p. 

Sir David Alliance, chair- 
man, qfl iri the current finanraai 

year had started wall but he 
remained cautious about the 
rate of general economic recov- 
ery and Its impact on the busi- 
ness. 

The profit improvement 
reflected sales gains by the 
core home-shopping business 


and a tnmround In the finan- 
cial and property services 
operations. 

Overall operating profits 
grew by 12 per cent to £24.7m 
(£22. lm). The home-shopping 
business increased its contri- 
bution by 8.5 per cent to 
£24Sm (£22 An) on sales up 9.4 
per cent to £179 An (£164 An.) 

Mr Jim Martin, nWaf execu- 
tive, said the sales increase 
reflected a 2 per cent gain in 
the total number of customers 
and a 7 per cent increase in 
their average spending. 

, The group's long-established 
catalogues for older women 
accounted for 77 per cent of 
group turnover, while Fashion 
World and Candid, both intro- 
duced four years ago and tar- 
geted at the growing number 
of consumers in the 35-50 age 
range, increased their turnover 
by more than 43 per cent. 

Financial and property ser- 
vices reported a £427,000 oper- 
ating profit, compared with a 
£273,000 loss on turnover up 7 
per cent to £7X5m (£6-59m). 

The pretax, figure was also 
helped by a sharp decline in 


interest costs to £2J5m (£3An) 
reflecting lower interest rates 
and reduced borrowings. 

Year-end gearing foil from 37 
per cent to 28 per cent 

• COMMENT 

Despite the chairman’s cau- 
tious remarks Brown's results 
were at the top end of analysts’ 
forecasts and the core mail-or- 
der business continues to per- 
form well by emphasising prod- 
uct range, value and customer 
service. The group claims 23J 
per cent of the £336m a year 
direct home-shopping market, 
and ranks sixth in the com- 
bined £4.4bn agency and direct 
home-shopping market, leaving 
plenty of room for domestic 
organic growth. Demographics 
are working in the group's 
favour and this, coupled with 
the introduction of new cata- 
logues aimed at a slightly 
younger customer, should keep 
sales moving ahead. Pre-tax 
profits of about £25 25m look 
possible producing earnings of 
about 23.4p. The stock's 20.4 
prospective multiple looks 
high, but it is deserved. 


Prowting land price warning 


By Andrew Taylor, 

Construction Correspondent 

Sharply rising land prices are 
threatening to undermine 
returning profitability of 
housebuilders, Mr Terry Roy- 
don, chief executive of Prowt- 
ing, warned yesterday. 

The south of England house- 
builder has only just returned 
to the black making pre-tax 
profits of £4. 12m during the 12 
months to the end of February. 
This compared with losses of 
£4Jftm during the previous 12 
months. 

Mr Roydon said that land 

prices in SOUthem ff.n glanrt hart 

risen by an average of 20 per 
cent in the past y ea r Much of 
this increase had occurred 
since January 1 as builders 
had begun to spend proceeds 
from rights issue. 

Increased land costs could 
only be justified if house prices 
were to rise more rapidly. 

Prowting owned 6,000 hous- 
ing plots with planning permis- 
sion equivalent to six years' 


supply at current rates of 
b uilding The company, which 
last year sold 664 homes at an 
average price of £88,000, plans 
to increase sales to about 1,100 
In the current year. 

Recovery, Mr Roydon stated, 
had been aided by the acquisi- 
tion last September, for £22.6m, 
of GaUiford Homes, which con- 
tributed gross profits of £5 .51m 
from the sale of 284 homes dur- 
ing the second half. 

Overall gross profits rose 
from £6 An - before excep- 
tional debits of £4Xm - to 
£!0.4m as the group’s existing 
housebuilding operations bene- 
fited from the housing market 
recovery. Profits from holiday 
homes in Portugal rose from 
£205,000 to £278,000 in a diffi- 
cult market 

The absence of provisions, 
following write-downs of 
£4.93m in 1992-93, and lower 
interest charges of £2.23m 
(£4m) also helped the group's 
return to pre-tax profits. 

As promised last September 
the company is pairing a main- 


tained final dividend of 1.7p 
making a same-again total of 
3.4p for the year. This is just 
covered by earnings per share 
of 3.5p (7 ip losses). 

• COMMENT 

Pro wring’s land bank, includ- 
ing 2,000 plots acquired with 
Galllford, is in the books at an 
average cost of £11,400 per plot 
or £130,000 an acre - a slightly 
higher price than 12 months 
ago but enough to provide a 
more than healthy margin of 
172 per cent To replace this 
land would cost £250,000 an 
acre at current prices. Few 
housebuilders will achieve bet- 
ter margins. The company’s 
virtues, however, are already 
recognised in a share price 
which has outperformed the 
sector by a filth during the 
past 12 months. Pre-tax profits 
of £9m would put the company 
on 21 times earnings which is 
high enough given Prowting's 
justifiable concerns over the 
mismatch between land and 
house price increases. 


By Andrew Baxter 

Babcock International, the 
engineering contracting and 
materials handling group, yes* 
terday announced a pre-tax 
loss of 241.2m for the year 
ended March 81, compared 
with a profit of £2l.lm last 
rime. 

The result is exactly hi line 
with preliminary estimates 
announced' on April 21, when 
Babcock unveiled a 4-for-7 
rights issue to raise abont 
£78. 6m, a new three-year cor- 
porate plan and a major 
restructuring of Its energy 
division. 

The shake-oat, Involving 420 
more job cuts at Babcock’s 
Renfrew plant In Scotland, 
produced a £25m provision for 
restructuring, the main reason 
for the sharp fall into loss. 

There was also a £7 An pro- 
vision cm discontinued busi- 
nesses in South Africa, offset 
by credits totalling £3w4m. 

Before the exceptional 
items, the pre-tax loss was 
£ll.7m (£34.lm profit). Turn- 
over rose from £748m to 
£805m, of which all but £3.7m 
came from continuing busi- 
nesses. 

As stated last month, Bab- 
cock is not paying a final divi- 
dend - it paid no interim 
either. The board said it would 
resume payments once the 
group’s performance has 
improved in line with the 
expected benefits of the new 
corporate plan. 

After tax and minorities, the 
retained loss for the year was 
£45-5m, compared with a defi- 
cit of £2.02m In 1992/93. 
Losses per share, on a net 
basis, were 8.46p, compared 
with earnings of 1.72p. 

Babcock also yesterday 
issued a pro-forma balance 
sheet showing the effect of the 
rights issue as if it had been 
received on March 31. This 
flKBnTnM that £4 1.3m of the 
proceeds has been set off 
against borrowing and the 
remaining £37. 3m has been 
added to cash and bank bal- 
ances. 

Net assets mi the pro-forma 
balance sheet are £128m, com- 
pared with a reported £47 An 
at March 81 and £92.9m in 
1993. 




'-■<j 

CO- 

P 


M 


fy.; 

I 

r.3 


* :i 

• ? 
■_ T 


-.Hi 
*. . « 


if ; 


The 

opportunities 
are unlimited, 
but they do 
not last 
forever! 


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



The State Property Agency and the State Holding Company welcome their guests at 
theCEETEXSM ^Central and Easlexa European Technology and lavesuneni 
Exhibition), held in London. Earls Court between the 9th and 12nd of May. 


Ba# i&rr* 1 







Hungarian State Holding Company 

H-l 1 15 Budapest, Bdnk bdn u. 17/b. Phone: (36)- i -267-6600 


STATE PROPTIM V Alii ACT 


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





All change on the Weston front 

Maggie Urry looks at the reorganisation plans for AB Foods 


T he complexity of the 
rearrangement of Asso- 
ciated British Foods’ 
ownership belies the simplicity 
behind the plan. 

The need of the majority 
owners - the 40 or so members 
of the Weston family - is to 
mniffl their tax planning easier, 
while the minority sfrare h oM - 
ers of AB Foods, with 37.3 per 
cent of the company, need to 
be assured that they are not 
being disadvantaged in any 
way. 

The answer will be to trans- 
form George Weston Holdings, 
the current immediate parent 
of AB Foods, into an exact rep- 
lica of its subsidiary, get a list- 
ing for its shares and eha "g * 
its name to Associated British 
Foods. 

Minority shareholders will 
end up with exactly the same 
number of shares in a com- 
pany with exactly the same 
assets, and exactly the same 
board of directors. One layer of 
the hierarchy of ownership will 
have been removed. 

The deal requires approval 
from 75 per cent of those 
minority shareholders who 
vote at a special meeting on 
June 20. For their trouble, 
shareholders will receive a lOp 
a share special dividend, which 
compares with AB Foods I5p 
total payment last year. The 
entire cost of the exercise, 
which runs into millions of 
pounds, will be borne by> the 

family . 

Lazard Brothers is advising 
the Weston famil y and Robert 
Fleming is advising AB Foods 
and Us minority shareholders. 
Fleming said yesterday it was 
sure that these shareholders 
would be no worse off through 
the deaL 

One difference that the rear 
rangement may make, thoug h , 
is that trading in the shares 
could become more liquid. Part 
at the Weston family’s holding 
will in future be a direct 11.8 
per cent stake in the quoted 
company. 

Another is that AB Foods 
will in future comply with the 


AssocfaMfrWah Foods: ownership structure 

Present v " V ******* 



Cadbury code on corporate 
governance. Two ncm-executive 
directors are to be appointed 
anrt audit and remuneration 
committees set up. This sug- 
gests at least a fo rmal bow to 
institutions' desire to see a 
board shaped more in the "nor- 
mal” public company mould. 

However, Mr Garry Weston, 
r-hainnflTi of AB Foods, appears 
to have a dim view of the Cad- 
bury guidelines. He says the 
two non-executives would “do 
the job the Institutions want 
done. The KGB job”. 

He says that AB Foods “has 
been run for the benefit of 
shareholders because the fam- 
ily are the shareholders. There 
are no Rolls Royces, no chauf- 
feurs. I don’t think we need to 
be taught anything about cor- 
porate governance.” 

And he insists the family 
intends to retain control of the 
quoted company. He believes 
that family ownership has 
given AB Foods a long-term 
investment timescale, and 
allowed it to grow organically 
from a market capitalisation of 
£91m when he took the chair in 
1967 to £2.7bn now. Over the 
same period the family has 


increased rather than cut its 
stake, and no new shares have 
been issued. 

But the reorganisation could 
be a small step on the road to 
an eventual reduction in the 
family stake below 50 per cent 
If that happens, AB Foods 
could lose the advantages Mr 
Weston sees in fondly control 
for the sake of a becoming a 
company with which institu- 
tional investors feel happier. 

The reorganisation will 
make the ownership structure 
slightly less complex than the 
one set up by Mr Weston's 
father. 

A t present, GWH holds a 
62.7 per cent stake in 
AB Foods, and holds 
other assets worth about 
£300m. These comprise £230m 
of fash, mainly dividends accu- 
mulated from AB Foods over 
the years, plus a controlling 
stake in Fortnum and Mason, 
the Piccadilly department 
store, and some property 
investments. This company 
has been regarded as the “fam- 
ily money box” but the family 
has been unable to get its 
hands on the cash. 


The plan is for GWH to sell 
the non-AB Foods Investments 
mainly to its parent, Wltting- 
ton Investments, and buy in 10 
per cent of Its share capital, 
paying £l00m In cash to fomll; 
members in the process and 
increasing the stake in GWH 
held by Wlttlngton and by the 
Garfiel Weston Foundation,, a 
charity. GWH will also pay a 
dividend to its shareholders 
and sell its non-AB Foods 
assets to Wittington. 

That will leave GWH with its 
stake in AB Foods and about 
£60m in cash, which will cover 
the £45m cost of a lOp special 
dividend to shareholders, and 
the costs of the reorganisation, 
i nr. hiding Stamp duty. 

The share capital of GWH 
will then be reorganised to rep- 
licate that of AB Foods, and 
GWH will make its 1-far-l 
share offer to AB Foods share- 
holders. 

AB Foods listing will termi- 
nate on Friday July 29 and the 
renamed GWH will obtain a 
listing with the shares due to 
start trading the following 
Monday, August 1. The special 
dividend will be paid on Octo- 
ber 14. 


Disposal helps API to 
54% interim growth 

sold in February for £1.5m 


Sidlaw shares fall lip 
as margins are squeezed 


and operating profits 


By David Blackwell 

The disposal of its heating and 
ventilating business helped 
API Group, the packaging, 
coatings and office products 
company, to lift Interim profits 
by 54 per cent 

Pre-tax surplus for the six 
months ended April 2 rose 
from £L97tn to £3.01m, while 
turnover improved 14 per cent 
to £37.4m (£32 An), with £L3am 
(£l.78m) from discontinued 
activities. 

Mr Michael Smith, chief 
executive, said he was pleased 
with the growth adding that 
the second half was tradition- 
ally stronger. The group had 
the capacity to make sales of 
£100m “with very little capital 
expenditure”. 

Operating profits were 
£2. 81m (£1.97m), including 
£185,000 from Diffusion Envi- 
ronmental Systems, the heat- 
ing and ventilating business 


cash, giving a profit of £815,000 
after expenses. 

RarniTig H per share rose from 
6.4p to 9-55p. The interim divi- 
dend is lifted from 3.35p to 
3.7p. 

The foils ft™! laminates divi- 
sion, which, makes packaging, 
reported operating profits up 
from £L37m to £2.11m on turn- 
over of £24m (£20m). Mr Smith 
said the division had benefited 
from new products and growth 
in market share. It had also 
worked hard to keep stocks 
down and to speed up response 
times. 

The coatings and office prodr 
nets division improved sales 
from film to £I2m, with oper- 
ating profits Just ahead at 
£1.17m (£L14m). The division 
suffered from the volatility of 
the Swedish krone, which had 
a negative effect equivalent to 
£230,000 on Tanza, based In 
Sweden. 


By Andrew BoJger 

Shares in Sidlaw feQ Up to 
338p after the Scotland-based 
packaging, oil services and 
textiles company said it was 
suffering margin pressure. 

Turnover leapt from £7i.5m 
to £ 150.4m in the six months 
to March 31, thanks mainly to 
a frill contribution from the 
flexible packaging business 
which it bought for £79m from 
Courtanlds last July. 

Group pre-tax profits rose 49 
per cent to £8.9m and operat- 
ing profits were 68 per cent 
higher at £8Xm. 

Mr Digby Morrow, chief 
executive, said be was pleased 
with the progress made by all 
three divisions. In particular, 
the recently acquired flexible 
packaging business had met 
expectations so far and had 
been com fo r ta bly integrated. 

The packaging division's 
sales rose from £20m to £83m 


increased from to £5 .Sin. 
Although sales and orders 
held up well, the group said 
price pressure was relentless 
and affected profits perfor- 
mance. 

Oil service s increased sales 
to (£34m) and operating 
profits by 2 per emit to £3m. 
The results included a loss of 
£274,000 in the Supplylink 
joint venture set up In 1992 to 
offer logistics services Interna- 
tionally. 

Mr Morrow said that he now 
expected Supplylink to break 
even next year - a year later 
than expected. Withont that 
loss, the division would have 
shown profit growth of 7 par 
cent 

The textiles division 
increased operating profits by 
9 per cent to £326,000. 

Earnings per share rose to 
9.1p (8-8p) and the interim div- 
idend was 4.5p (4J25p). 


BMA links 
up with 
Air Canada 

By Jenny Luesby and 
Ivor Owen 

British Midland Airways 
yesterday announced a com- 
mercial link-up with Air Can- 
ada, which will allow the air- 
lines to offer seats on each 
others* services. 

The code-sharing arrange- 
ment which will require gov- 
ernment approval in Canada 
and the UK, is due to start on 
June L 

BMA’s announcement fol- 
lows the deal last month 
between Virgin Atlantic Air- 
ways and Delta Air Lises, the 
third-Iargest US carrier, based 
on a similar code-sharing 
agreement However, Virgin 
and Delta also announced 
their intention to take ap 
block bookings of each others’ 
seats, which BMA and Air 
Canada will not be doing. 

The link will allow Air Can- 
ada to connect with BMA from 
Heathrow to Glasgow, Belfast, 
Edinburgh, Leeds, Bradford 
and Teesside. Passengers will 
be able to collect their con- 
necting flight board passes 
and select seats at the point of 
departure. 

BMA began similar code- 

sharing arrangements with 

United Airlines of the US in 
April 1992, and with American 
Airlines in November 1993, 
and yesterday said tt would be 
pursuing further such deals. 

Meanwhile, Mr John Mac- 
Gregor, the transport secre- 
tary, yesterday confirmed to 
the Commons that he had 
recently put new proposals to 
the US in an attempt to break 
the deadlock in talks over the 
liberalisation of air services. 


BPC joins market 

By Paid Taylor 


British Printing Company, the UK's largest 
commercial printer, confirmed yesterday that it 
planned to come to market via a placing and 
public offer this summer, which Is expected to 
value the group at £250 hl 
BPC, known as BPCC before its January 1989 
manag ement buy-out from the late Mr Robert 
Maxwell’s business empire, claims a 20 per cent 
share of the UK magazine printing market 
It prints more thaw lbn ma gasriiw; earh year 
including eight out of the top 10 weekly maga- 
zines. Among its titles are the Radio Times, TV 
Tunes, Bella and Woman’s Own. 

The group operates three main printing busi- 
nesses, magazines and catalogues, cartons and 


with £250m tag 

labels, and books and journals. It produced oper- 
ating profits of £19m last year on turnover of 

£3l7.6m. 

Commenting on the flotation plans, Mr John 
Holloran, the chief executive who led (he man- 
agement buy-out, said now was the right time to 
come to the market because of the recovery in 
the priming market 

He said a listing would enable the group to 
take full advantage of improving economic con- ' 
ditions and reinforce the group's reputation in 
the markets it serves. 

Since the buy-out the management has. 
restructured the group which now operates 
from 25 main locations and has a workforce of 
5,1QQ. A £110m capital Investment programme 
has been undertaken. 


APH listing this month 


By David BtadkweR 

Automotive Precision 
Holdings, a precision engineer- 
ing company that exports SO 
per cent of its products to 
North America, is planning to 
come to the market later this 
month with a valuation of 
around £60m. 

The company was bought by 
the management four years 
ago for a total of 25.7m from 
Hunting, the defence, aviation 
and oil group. Mr Stefan Pet 
szaft, managing director, said 


the team of five managers in 
the buy-out team were expect- 
ing to retain 50 to 55 per cent 
of the equity after flotation. 
The company would receive 
only £2JSm of the new money, 
which would be used for costs, 
repayment of borrowings and 
additional working capital 
APH was breaking even on 
turnover of H4m at the time of 
the buy-out. Last year profits 
before non-recurring items 
were £4.9m on turnover of 
£17m. Pre-tax profits were 
£L9m. 


DIVIDENDS ANNOUNCED 




Current 

payment 

Data of 
payment 

Cones - 
ponding 
dividend 

Total 

for 

year 

Total 

last 

yew 

ADI 

kit 

3.7 

nfl 

July 1 

4 QC 


8.25 

Babcock _____ 

fin 

OxKl 

1.1 

nil 

Himm Ml 

fln 

5.75 

July 29 
July 8 
July 1 

Jllkj IQ 

R AC 

101 

8 

2.1 

Jnfi HoUSnoe .... .kit 
MMTCompudng § _mt 
PMictmd *i 

2X73 

IX 

3 

9.UO 

155 

4 

7 

11X5 

4 

riuwony — 

fln 

1.7T 

4X 

u '*7 IQ 
Jldu M 

1 

4 7 

S 

3.4 

a 



we mj | | 

OcSy 15 

imf 

4-25 

3.4 



- 

iox 




Maid shares 
rise on bullish 
statement 

By Paul Taylor 

Shares in Maid, the business 
information supplier, row by 
4p to 74p yesterday after the 
group. Which came to market 
via a placing In March at UOPi . 
issued a b ullish trading- state- 
ment 

Maid’s board said trading 
results for the current yew 
“are ahead of budget and sig- 
nificantly ahead of the same 
period In IMS'*. 

The statement added that, 
“new clients have • been 
acquired at a rate considerably 
in excess of last year and the 
high rate of renewals has-been 
maintained.” 

Mr Dan Wagner, the ehafr- 
man, said that the statement 
had been issued in response to 
a broker note forecast, issued 
by Hoare Govett, the group'* 
stockbroker, which he stated 
forecast a £im profit this year 
and a £5m profit for 
1995. 




FINANCIAL TIMES TUESDAY MAY 10 1994 


25 





1,ru «ure 






'■■'S 





cs 


•< . . 

i I I 



lire Noiicea 


• .''ii 



i n. 




n 'i 1 ’- 


£250ni tif 


\ 


-.h.li 1 '. 





V 






COMPANY NEWS: UK AND IRELAND 


Pausing for breath at B& J 


By Andrew Bolger 

Shareholders In Brown & Jackson, owner 
of the lossm airing Poundstretcher chain of 
discount stores, will have several weeks to 
weigh rival offers for the group, which 
yesterday revealed a further recent deteri- 
oration in sales. 

An extraordinary general meeting called 
to approve a capital injection by the Weis- 
felds, the millionaire couple who created 
the What Everyone Wants discount cloth- 
ing chain, was yesterday unanimous ly 
adjourned so that shareholders could also 
receive details of the latest rescue pro- 
posal. from Pepkor, South Africa's biggest 
retail group. 

The Weisfelds had offered to inject an 
initial £6m, in return for a 19 per cent 
stake and two seats on the board. If their 
investment bed reached its maximum of 


about £28m, their stake would have 
reached 42 per cent Pepkor has proposed 
injecting an initial £20m, but will receive a 
63 per cent stake if it puts in the full 
£56.2m proposed. 

Mr John Jackson, B&J’s chairman, said 
yesterday's meeting was being held in 
"slightly unusual circumstances”, in that 

the board initially recommended the 

Weisfeld scheme, but had then switched 
its support to the Pepkor offer, which was 
only agreed late on Friday. 

Mr Gerald Weisfeld said: "What this 
company needs is not just cash, but exper- 
tise and individual experience in this sec- 
tor." 

Mr Weisfeld also said that B&J had not 
given satisfactory assurances that Mr 
Philip Green had not and would not 
become involved with the Pepkor offer. Mr 
Green was chairman of Amber Day Hold- 


ings when it bought WEW from the Weis- 
felds in 1990. but the couple resigned 
the following year after policy disagree- 
ments. 

Mr Jackson said be had received cate- 
gorical assurances from Pepkor that nei 
ther Mr Green, not any other third party, 
was involved in the South Africans' pro- 


Yesterday’s egm was adjourned until 
May 31, when the Weisfeld offer seems 
likely to be voted down. Another egm to 
consider the Pepkor offer will be called 
three weeks after a circular detailing the 
South African offer is posted, which is 
likely this week. 

B&J said that its current financial diffi- 
culties had led to some creditors delaying 
supplies and in the last four weeks like- 
for-like sales were 10 per cent below last 
year’s level. 


Confident of adding some pep 

Mark Suzman on the rationale for Pepkor’s interest in Brown & Jackson 



Christo Wiese (left) and Arthur Louw, Pepkoris vice-chairman: confident they can do the job 


Costain’s coal activities 
in US hit by bad weather 


P epkor believes the strat- 
egy which has built it 
into South Africa’s larg- 
est retailer will help it turn 
round Brown & Jackson, the 
troubled British retailer which 
it is seeking to control. 

“We've felt for a long time 
that our ’Pep retail formula 1 
would be applicable anywhere 
in the world with a large, low- 
income mass market," says Mr 
Christo Wiese, Pepkor’s execu- 
tive ^hairmam 

"We have a lot of experience 
in running a large number of 
relatively small retail outlets 
over a wide geographical area 
with a highly simplified and 
effective distribution system 
that we think will be applica- 
ble to the UK market," notes 
Mr Wiese. 

Building off its domestic 
base, Pepkor has been focusing 
on overseas expansion for sev- 
eral years, and by the end of 
last year its Scottish chain. 
Your More Store, had grown to 
45 outlets. 

Operations have been rela- 
tively successful to date, with 
13 new stores opening in the 
first half of financial 1994 and 
nnnthar three in the second. 
Despite the costs of the expan- 
sion programme, the group has 
managed to break even and 
states that most of its stores 
are profitable. 

However, Pepkoris manage- 
ment has long had its eye on 
expanding into England, espe- 
cially th6 ; north, with a 
declared long-term target. for a 
200-store chain. 

The acquisition of Brown & 
Jackson, with its 230-store 
Poundstretcher chain, would 
more than satisfy that goal and 
turn Pepkor into the biggest 
player in this sector of the 
British retail market 
Turning Poundstretcher 
around will be a tall order, hut 


Mr Wiese and his team are con- 
fident they can do the job. And 
although there is some concern 
over whether the company has 
sufficient management breadth 
to digest these acquisitions 
without diluting management 
for its domestic questions, the 
company is sure this will not 
happen. 

“We have sufficient manage- 
ment depth to help Found- 
stretcher return to profitability 
without any problems for our 
southern African operations," 
says Mr Wiese. 

Pepkor, which Is Africa’s 
largest retailer with annual 
sales for R&24bn, (£L13bn) has 
been a star stock over the past 
five years, posting annual 
earnings per share gains aver- 
aging nearly 20 per cent 
despite a four-year recession in 
Its home market 

It owns 1,700 stores and has 
40,000 employees throughout 
southern Africa. It focuses on 
mass-market retailing in food. 


clothing and business materi- 
als industries, and has some 
manufacturing of semi-durable 
goods related to its own activi- 
ties. 

The group’s main division is 
Pep stores, with more than 
1,100 outlets. It is a mass mar- 
ket retail group that primarily 
targets the country's black 
consumer base. 

In this area of down-market 
retailing the company’s 
long-term performance has 
been spectacular, and no other 
South African company has 
been able to match it 

A nd although its most 
recent year was a diffi- 
cult one. as operating 
profit declined 8 per cent due 
to a combination of low con- 
sumer activity and destabilisa- 
tion in the black townships in 
the run-up to the elections, this 
is expected to improve signifi- 
cantly over the next year. 
Through much of the 1970s 


and 1980s Pepkor was regarded 
as something of a backwoods 
group, reflecting its origins as 
an Afrikaaner dominated com- 
pany concentrating on small 
towns. But over the past few 
years it has catapulted over 
some of its blue-chip competi- 
tors with a string of acquisi- 
tions. 

In addition to taking over 
Cashbuild, the building materi- 
als company, and Smart Cen- 
tre, the clothing group, it has 
also bought Shoprite/Checkers, 
the supermarket chain, and 
managed largely to turn 
around the ailing company. 

Its manufacturing operations 
have long worked at full capac- 
ity, and profit growth has been 
dependent largely on produc- 
tivity increases, which the 
company has consistently 
achieved. It is this kind of 
management attention and 
marketing skill that will be 
transferred to Poundstretcher 
if the deal goes ahead. 


Parkland 
returns to 
black 

with £2.2m 

By Simon Davies 

Parkland Group, the 
Bradford-based textile com- 
pany, yesterday announced its 
return to profitability in the 
year to February 27, helped by 
the write-back of provisions 
and a 19 per cent increase in 
sales from continuing 
operations. 

Pre-tax profit amounted to 
£2^m. compared with a £1.6m 
loss a year earlier. However, 
the 1993 figure was hit by a 
£704,000 provision, of which 
£694,000 was written back m 
the latest results, following 
the disposal of Maitland. 

The management is predict- 
ing more modest sales growth 
in the current year. It expects 
to achieve farther reductions 
in Its cost base, but In the lon- 
ger term ft could be affected 
by increasing raw material 
costs, primarily wooL 

The share price foil 18p to 
220p, as a result of yesterday’s 
cautious trading statement 



Last year Parkland disposed 
of its remaining garment man- 
ufacturing businesses to refo- 
cus on its core area of spin- 
ning and fabric production. 
Total tnrnover for the year 
was down from £58. 9m to 
£54. 8m, bnt sales from con- 
tinuing businesses increased 
sharply from £44. lm to 
£5&5m. 

Parkland has made a sub- 
stantial posh to expand its 
export markets, and export 
sales increased by 24 per cent 
to £11.4m, representing 22 per 
cent of total sales from con- 
tinuing businesses. 

Gearing has been reduced 
from 31 per cent to 16 per 
cent, and Mr Bryan Lodder, 
chief executive, said the com- 
pany would increase capital 
expenditure from £2.6m in 
1994, to maintain its position 
in an increasingly competitive 
market 

The company is proposing a 
final dividend of 3p, making a 
total of 5p for the year, com- 
pared with 2p in 1993. 

Earnings per share on a net 
basis amounted to 19.7p, 
against losses of 19.3p last 
time. On a nil basis they 
emerged at Zl.lp (18.7p). 


By Andrew Taylor, 

Construction Correspondent 

Shares of Costain, the 
construction and mining 
group, fell almost a tenth yes- 
terday following a warning 
that US coal profits had been 
hit by bad winter weather and 
operational problems during 
the first three months of this 
year. 

Sir Christopher Benson, 
chairman, told the annual 
meeting that it would not be 
possible to recover the profit 
shortfall during the remainder 
of the year. 

Costain's share price fell 
from 33p to SO'/ip. The group 


By Tim Coone in Dublin 

Elan Corporation. the 
Athlone-based pharmaceutical 
company, reported a pre-tax 
loss of I£49.5m (£48J3m) for the 
year to March 31 alter excep- 
tional charges of I£85.1m relat- 
ing mainly to goodwill write- 
off of an acquisition. The previ- 
ous year there was a profit of 
l£22.5m. 

Operating profits were ahead 
by 47 per cent from I£19.8m to 
I£29.lm on turnover up 19 per 
cent to I£l07m (l£89.8m). A 
breakdown of turnover showed 
the main growth occurred in 
royalties up from I£12.6m to 
I£l9£in, licence and option fees 
from I£5.72m to I£13-5m, and 
manufacturing and distribu- 


By Tim Coone 

DCC, the private Dublin-based 
industrial holding company 
which plans a public flotation 
at the end of this month, has 
reported a 49 per cent increase 
in pre-tax profits to l£22.2m 
for the year ending March 31 
1994. 

The advance was achieved 
on turnover up 36.7 per cent 
from I£246m to I£336m, includ- 
ing associated undertakings. 
The 1993 results are restated 
putting the accounts on a fully 
consolidated basis. 

The company has spent 
I£33.4m m acquisitions in the 
past year, making a total of 
I£76.8m spent on its acquisition 
programme over three years. 


said later that it had suffered 
from some minor geological 
problems which now had been 
resolved. 

Costain returned to the black 
last year malting pre-tax prof- 
its of £68.?m compared to a 
£2Q4.6m loss in 1992. All but 
£200,000 of the 1993 figure arose 
from the sale of the group's 
Australian cool mining busi- 
ness to Peabody, part of Han- 
son, the industrial conglomer- 
ate. 

The sale, together with pro- 
ceeds from last autumn's 
£S3.9m rights issue, enabled 
Costain to reduce net debt 
from £33 lm to £83m and 
gearing to 37 per cent of 


tlon income from I£S7.3m to 
l£5S.9m. 

Losses per share came out at 
144p, against earnings or 67p. 
No dividend is payable, as 
under New York Stock 
Exchange rules, where the 
company has its primary list- 
ing, Elan is classified as a 
growth stock and not permit- 
ted to pay dividends. 

It has I£l48m in cash and 
short-term investments, I£95m 
of which was raised in an issue 
of subordinated loan notes in 
October 1992. 

Mr Tom Lynch, financial 
director, said: “This gives us 
the strength and leverage to 
fund acquisitions and organic 
growth." He added, however, 
that the company had no plans 


In addition, capital invest- 
ment of l£37.1m has been 
undertaken over the same 
period. Net debt at the 
year-end is reported as I£1.5m. 
representing 1.8 per cent of 
shareholders' funds of 
l£100.8m. 

Mr Jim Flavin, chief execu- 
tive, said “This has been 
achieved without any recourse 
to shareholders in the past 
three years, and demonstrates 
the profit and cash generative 
quality of the business”. 

The company has not given a 
detailed profit and turnover 
breakdown by division, but its 
flotation prospectus is due out 
this Thursday. 

A 5-for-l share split was car- 
ried out last March, making a 


increased shareholders’ fund of 
£228m. 

Since the year-end the group 
has sold its remaining Austra- 
lian property interests for 

A$27.lm (£12.Sm), making a 

small profit on the deal. The 
engineering and construction 
division had also won some 
valuable new contracts. Sir 
Christopher said. 

Nonetheless, conditions 
remained very difficult in the 
UK and overseas. UK construc- 
tion margins, in spite of 
reports of increased orders 
won by the industry, remained 
slim. As a result Sir Christo- 
pher said short-term profitabil- 
ity remained under pressure. 


at present to make an acquisi- 
tion. 

Elan has built up a niche 
market in the development of 
dermal patches and by extend- 
ing the patents of estabUslied 
pharmaceutical products 
through their further develop- 
ment in making their gastric 
absorption more controlled, 
facilitating once-a-day dosage. 

Elan has 19 products 
approved for distribution in 44 
countries, which focus on the 
treatment of chronic ailments 
such as cardio-vnscular and 
arthritic diseases. 

It plans to have a range of 
new electrical trans-dcrmal 
drug delivery devices on the 
market before the end of the 
decade. 


total of 71m shares in issue, 95 
per cent of which are held by 
institutional investors. Bank of 
Ireland sold off its 20 per cent 
stake in the group last Decem- 
ber for I£l0 per share, before 
the share split 

The company expects to 
raise less than I£25m in the 
flotation, its main purpose 
being to obtain a listing in 
London and Dublin. A flotation 
price in the range of I£2.50 to 
£3 range is anticipated, which 
will give a post-flotation mar- 
ket capitalisation in the region 
of I£250m. 

Earnings per share were 
I9.56p (16.82p) and a second 
interim dividend of 3.896p 
makes a total for the year of 5p 


NEWS DIGEST 


(2Jp). 

Unit trust sales help Pearl to £130m 


Exceptional goodwill charge 
puts Elan I£49.5m in red 


DCC advances 49% to I£22.2m 


40% rise 
for MMT 
Computing 

MMT Computing, the 
USM-quoted computer services 
company, enjoyed an excellent 
first half according to Mr Mike 
Tilbrook, chairman. Pre-tax 
profits advanced 40 per cent 
from £865,000 to £L21m in the 
six months to February 28. 

Mr Tilbrook said that the 
comparative period had bene- 
fited from profits on the sale of 
investments of £225,000, 
against £55,000 this time. Tak- 
ing out that effect, profits 
showed ' an improvement of 
more than 80 per cent 

Turnover was 52 per cent 
higher at £4.82m (£3.l7m). 
Earning s per shar e advanced 
from 4.8p to 6.4p and the 
interim dividend is being 
increased from lJ25p to L5p. 

The shares rose by 5p to 
close at 180p. 

Sotheby’s incurs 
$5.1m first quarter 

Sotheby's Holdings, the parent 
company of Sotheby’s New 
York-based auction, finance 
and real estate operations, suf- 
fered net losses of $5.lm 
(£&5m) for the first quarter of 


1994, against 65.2m. 

Auction sales amounted to 
616l.3m (6129.6m). 

Electron forecasts 
year-end upturn 

In a trading statement the 
directors of Electron House, 
the electronic components dis- 
tributor, forecast sales for the 
year ended May 31 1994 to 
exceed £100m, compared with 
£78.4m for the previous year. 

The shares responded with a 
rise of 9p to 154p yesterday. 

With demand for micropro- 
cessors particularly strong, 
"the rate of growth of sales in 
the UK components companies 
has accelerated”, the directors 
stated. 

They anticipated having no 
debt at the year-end and added: 
"Overall we expect our perfor- 
mance for the year to be in 
excess of current expecta- 
tions." 

Logica buys US 
software provider 

Logica, the computing services 
concern, is acquiring the assets 
and some liabilities of Preci- 
sion Software Corporation of 
the US for an initial 63.3m 
(£2.2fim). 

Precision, founded in 1984, 
provides loan syndication and 
administration software to 


more than 100 banks and finan- 
cial services organisations. 

The consideration will be fol- 
lowed by a further 62m upon 
certain targets being met And 
there are provisions for $7m to 
be paid on a performance-re- 
lated basis running until June 
1998. 

MEPC in £16.5m 
Australian deal 

MEPC yesterday announced a 
A$34-5tn (£16-5m) acquisition of 
an office building in Brisbane, 
which is the first of a series of 
planned Investments in Aus- 
tralia. 

The 111,442 sq ft building at 
60, Edward Street, Brisbane, is 
occupied by a number of com- 
panies including Santos Aus- 
tralia, Com care. Placer Indus- 
tries and the Queensland 
Mining Council. 

MEPC said that its Austra- 
lian acquisitions, which will 
focus on Queensland and New 
South Wales, will be funded 
partly by last June’s mww 
rights issue. 

Chartwell £22m 

property swap 

Chartwell Land, the property 
arm of Kingfisher, the retail 
group, has swapped £22m of 
property with Shell Pensions 
Trust 


Shell Pensions Trust has 
bought six industrial estates 
from Chartwell Land. In part 
exchange, Chartwell Land ban 
bought Brislington Retail Park 
in Bristol and a retail ware- 
house in Fareham. It has also 
received a cash payment of 
about £4m. 

Cornwell Parker 
makes £1.1 m buy 

Cornwell Parker, the furniture 
and fabrics group, has acquired 
certain of the assets of Minty 
Design Furniture from Mines & 
West Holdings for about El.lm, 
payable in cash. 

Minty designs and makes 
chairs and settees and had 
sales of £L9m (£2m) in the year 
to March 1994. of which about 
40 per cent were to co n ti n e nt a l 
Europe. 

Hambro 

Countrywide boy 

Hambro Countrywide, the 
estate agent and finan cial ser- 
vices chain, has acquired 
Nationwide Relocation - the 
relocation arm of the Nation- 
wide Building Society - for 

Cl -7m wish. 

The purchase includes the 
occupational lease on Nation- 
wide Relocation’s headquarters 
b uilding in Basingstoke, Hamp- 
shire. 



Portando 

international merqerbrokers 
CORPORATE: PRIVATE Ltd. and WUVOUAL transsefiemo 
ta^COMRAMra-ubjeaweon^ 
iiHi mrv > rwiii FdiiMir nimfiriP mtatnuun rummer or less If mebe cams. 
tMJi Dept. Smrk £l5m/£30niGBP min luravw; Specialty nores indmted. 

Magazines, niche, subscription btted, fi amn il punting, 

£I3m mWCOaGBP auz. rnniowx. . 

Unstetote Any product line, f?? W»BP utiil turoowL 
Mr £75.lSnCBP mm. w* is. Suck Bnkcnfcs: fISuCBP min. turnover. 
Vkolettie DMMtc ny product, £ 2 UmOBP min. tnraowr. 

fjprriclijj CMUftp tg. Phunbing. H earing. Ventilation. 
Aii-Comfitioauu etc. £2UaGBP min. turnover. 

ImJ rm^r FhB/vommn prop, (not new*K9in) min. nine £7 JmOBf or 200 ante. 

pj p-tiWi of production, LbOmGBP mumum in mower. 

“ i with Marketing Database. 


£ln +/- fSOmGBP nuuowc , „ 

B t cm a I tn ca ri a p Parmer required; Area: former SOVIET UNION. 

Kteeac-ro-taUen DMakaac Ark Equity partner required 
rat emriUa nRy consider B attmi a ra around £7 jmCBP turnover. 

■/* Principal* or Authorised perron* on beliair of Princiiuis la rwpood in writing. 
to sarr-apsV Commission required: by Mroement vrtth ftnunda 
layer »«i Pannewfcip Imna w c li oni and Negotiation a our bua ut e c t . 


Pteaan write to: Pbrtnto House. Swa Norton, 













'I ' 1- J 


FUTURES a OPTIONS BROKERS 

flr ROUND 

TRIP 

5*£C.UT:0N ONLY 


SUMITOMO FINANCE 
INTERNATIONAL pk 
LONDON 

US*JtMMty»0 Grurubnd 
Floating to fixed rale wofes doe 
2002 

In accordance with danse 5(c) 
the issuer has exercised its 
option to redeem all seasides at 
par an 3 lime 1994. 
Sumitomo Finance 
International pic 
(Agent Bank) 


* 15 % 

off electricity 

021 423 3018 

Powerline 


FUTURELINK 


TEL: 071 972 9772 


; yes %v:!! testes? real-cme ?£0d. 7c 

vet. ■; rri’.tor.'j yCu nfi&ci toft IsrEs: Eppl:Cfllior.s. 


FAX: 071 972 9770 


Ely Alison Smith 

Pearl Group, the life and general insurer, 
achieved a 40 per cent increase in pre-tax 
profits to £130 .3m for the year to end-De- 
cember, helped by a steep rise in unit trust 
sales which offset a sharp fall in single 
p remium business. 

Mr David Gordon, chief actuary, said the 
prime cause for the foil in single premium 
products was the closure of Pearl’s inter- 
mediary sales unit, as the company 
focused on its core business areas 


of the home service operation - selling 
products through branches and home col- 
lection. 

The fall in new single premium business 
had a sharp impact on the total premium 
income or the ordinary branch business 
which fell from £942m to £786.4m . Indus- 
trial branch business held up rather 
better, slipping only from £203.2m to 
£195J5m. 

Mr Gordon said the group had made 
"appropriate” provisions in respect of its 
possible exposure to compensation as a 


result of mis -selling of pension transfers. 
Pearl, a part of the Australian Mutual 
Provident Society, has a large share of the 
pension transfer market, with an esti- 
mated 50,000 cases. 

Total premium income fell to £98SL3m 
(£1.15bn), with new single premium busi- 
ness dropping to £407Jlm (£619.8m). New 
annual premium business stood at £107. Im 
(£109.7m). 

Profits from general insurance rose from 
£7.4m to £21 .3m while profits from unit 
trusts rose from £400,000 to £6 -3m. 


tor rioancar UnM tor aw 

■■ tf N itooro PQ»* H wl 
to 

MtoMimiB HMkb 


ISIn 

w 

IMltlUN 

puttaM 

PM 

«•» 

P«U 


in 

*ito» 


mm 

MHI 

BHWb 

0030 

1090 

11.13 

11.13 

moo 

IOlTS 

1086 

io» 

0130 

1090 

1090 

iow 

(COO 

1Q95 

2081 

32.11 


toss 

4000 

90J30 

0300 

1045 

4000 

5030 

0330 

1006 

4040 

4088 

0400 

1006 

3147 

3428 

0(30 

1085 

2081 

32.11 

tvavi 

1095 

2346 

2SM 

0930 

1086 

ioro 

1070 

0000 

nun 

1076 

1075 

0030 

11.15 

ion 

1035 

0700 

1120 

2010 

3142 

0730 

2083 

3442 

37.34 

oeoo 

2100 

44.12 

4070 

0030 

22*1 

56*4 

B1J82 

0000 

Wffi 

son 

6068 

0030 

22*a 

SOM 

BIOS 

1000 

22.ro 

8107 

S7J4 

1030 

22.ro 

4171 

4766 

nOO 

2072 

41.87 

4563 

1130 

24.14 

40 M 

4364 

1200 

24.15 

3045 

43.17 

1230 

24.12 

3004 

41.47 

1300 

34JB7 

3015 

nan 

1330 

21.48 

3434 

3763 

1400 

21.44 

33.28 

3077 

1(30 

21/0 

31.72 

3410 

1G00 

2143 

31.06 

3406 

1630 

21.43 

31X1 

3402 

1000 

21-44 

31,79 

3(26 

1030 

23.18 

4055 

4010 

1700 

3024 

4071 

4829 

1730 

moo 

4041 

45.91 

1000 

3019 

41.34 

43.73 

1030 

ei sa 

31.13 

3348 

1800 

2004 

31.1* 

33.42 

1630 

3083 

31.12 

33.41 

2000 

9006 

31.12 

3341 

2030 

1742 

4003 

4243 

2100 

17.42 

88.72 

5003 

2130 

3059 

5072 

5003 

2200 

3033 

6008 

67M 

2230 

2048 

4010 

4209 

2300 

1731 

2008 

31 M 

2330 

13P0 

MM 

MM 

2400 

11.10 

18.70 

1070 




BIIFINGER+ BERGER 

BAUAKT1ENGESELLSCHAFT 

Mannheim, Federal Republic of Germany 


Subscription Offer for New Shares 

Acoonfing to the authorization of § 4 Section 3 and 4 of the Articles of Association (Authorized Capital) the Board 
of Management has, with the approval of the Supervisory Board, resolved la Increase the share capital of 
DM 150.000,000 by DM 30,000,000 lo DM 180,000.000 by issuing new shares made out to bearer. The now shares, 
600000 shares of DM 50 nominal value each, will carry the entitlement to dividends from January t, 1994 [Le. luH 
tfividend for the 1994 (fecal year). The Issue price fs DM 590 tor each share of DM 50 nominal value. 

A banking syncBcate under the lead-management of Dmsdner Bank AG has underwritten the new shares subject to 
the provisa that the shareholders be oflered these new shares for subscription at a ratio oil for 5 in accordance with 
the terms of the Issue. 

F6I towing the entry of the capital increase In the Ttede Register, we request our shareholders to exercise their 
subscription rights and. In order to avoid exclusion from participation, to do so In the period 


from May 17 up to, and Including, June 1, 1994 
at any ofthe following subenption agents' offices Airing customary office hours: 

Dresdner Bank AG 

Bayerische Landesbank Glrozentraie 

Berliner Handels- und Frankfurter Bank 

Commerzbank AG 

Deutsche Bank AG 

Landesbank Sachsen Girozentraie 

Merck, Fine* 5 Co 

B. Metzter seel. Sohn & Co. KGaA 

Bankhaus Reuschal A Co. 

SOdfceskfciuteehe Landesbank Girozentraie 

In accordance with tho subscription ratio one new share may be subsetted at an issue price oi DM 590 for every flve 
trid shares upon presentation d dividend coupon no. 24. 

The subscription rights associate d with the old shares (German security code no. 580908] w&l be traded and 
offleMy quoted at the stock exchanges of Stuttgart, Barlln, Bremen, Dtisaofdori, Frankfurt am Mate, 
Hamburg, Hann over and Munich from May 17 up to, and Including, May 30, 1994. The subscription agents are 
prepared to arrange, as ter as poaattrie, for the purchase and sale at subscription rights on such stock 
exchanges. 

The issue price is due for payment upon subscription, at the latest, however, on the last day of the subscription period. 

Normal banking commission win be charged fair subscription, unless the subscription right is exercised by the 
subsetter agatist presentation of the aforementioned dMdend coupons during customary office hours at the counter 
of one of the subscription agents' offices and no additional correspondence is knoJved. 

The new shares (German security code no. 590901) will be made available to the shareholders under a collective 
security account on the basts d a tfobal share certificate lodged with Deutecher Kassenvergin AG. 

At present, no arrangements have been made to have new share certificates printed. For the new shares, oU share 
certificates with dividend coupons nos. 26 to 40 and renewal talon win be made available on request after the Annual 
General Meeting to be held on July 13,1 994 (toUowing payment of the dMdend (or the 1993 fiscal year]. No cfaims ter 
the Issue of hdMdual certificates may be lodged prior to that date. 

The new shares have been admitted to trading on the stock exchanges in Stuttgart, Berlin, Bremen. DOssektorf 
Frankfurt am Main. Hamburg, Hannover and Munich; trading and official quotation of the new shares are setedutod to 
c ommence in due course after the end ol the subaription period 

Mannheim, May 1994 The Boanl of Management 







FINANCIAL TIMES TUESDAY MAY 10 1994 


COMMODITIES AND AGRICULTURE 


Copper boosted 
to 13 -month peak 


Further reform of common agricultural policy ‘inevitable’ 


By Alison Maitland 


By Kermeth Gooding, 
Marring Correspondent 


Speculative buyers boosted the 
copper price to a fresh 13- 
month peak in late London 
trading yesterday. Copper for 
delivery In three months 
touched $2,078 a tonne, nearly 
10 per cent ahead of the price 
only a week ago. 

The market also moved into 
a modest backwardation, 
where a premium baa to be 
paid tor metal tor immediate 
delivery - evidence, according 
to some analysts, that physical 
metal is not as freely available 
as present high stock levels 
would suggest 

Three-month copper earlier 
closed in London at $2,056.50 a 

tnnnp , up $29. 

Mr Ted Arnold, analyst at 
Merrill Lynch, says in his lat- 
est Weekly Futures Report 
that, "everyone we speak to 
wants to buy [copper] at 85 
cents a pound [$1,874 a tonne] 
which means in reality that 


prices are most unlikely to 
move that low”. 

He says there is evidence 
that some consumers are giv- 
ing up Just-in-time policies and 
building modest stocks. And 
one week of stock held by 
American and European semi- 
fabricators would be equiva- 
lent to 180,000 tonnes Of cop- 
per. If end-users also added a 
week's stock, that would be 
another 180,000 tonnes. 

However, Mr Stephen Briggs 
at Metals & Minerals Research 
Services, said today's copper 
price could not be justified by 
the fundamentals MMRS fore- 
cast a supply deficit of 75,000 
tonnes this year following a 
surplus of 200,000 tonnes in 
1993. Next year there would be 
big increases in copper mine 
output, a legacy from, the last 
recession when prices also held 
up reasonably well and encour- 
aged new production. With 
456,400 tonnes still in LME 
stocks, "consumers don't have 
to panic”. 


Further reform of the 
European Union’s common 
agricultural policy Is inevitable 
in the next tow years, although 
it is unlikely to be radical, 
according to the chief eco- 
nomic adviser to Lloyds Bank, 
one of Britain’s big four high 
street banks. 

Writing In the May issue of 
Lloyds Bank Economic Bulle- 


tin, Mr Patrick Foley argues 
that the fanning lobby will 
grow weaker as more agricul- 
tural Jobs disappeared. This 
will encourage politicians to 
take action beyond the 1992 
MacSharry reforms. 

At the same time , increasing 
cereal yields are likely to wiftpn 
that subsidised exports from 
the European Union remain 
too high to meet the require- 
ments of the Uruguay Round 


world trade deal, necessitating 
further internal CAP reform. 

He says pobfic pressure tor 
change will also grow because 
the current reforms have 
Increased the t ransparency of 
subsidies to fanners. CAP sup- 
port in one form or another 
accounts for half the gross 
income of a typical 100-hectare 
cereal farm. 

Mr Foley points out that the 
1992 reforms encourage produc- 


tion to remain high - the oppo- 
site of what was intended. 
"Because compensation is per 
hectare, there is an incentive 
for formers to keep the maxi- 
mum possible amount of land 
in production, subject to set- 
aside." 

Land prices are also likely to 
remain buoyant for the next 
few years, because of the set- 
aside programme and flnandal 
incentives for less intensive 


livestock production. 

"It Is poss ible that the 15 per 
cent set-aside could increase 
land prices In the short term, 
as some formers may choose to 
buy more land to enable them 
to maintain past levels of pro- 
duction," he says. 

"Equally, beef formers wish- 
ing to change to a more exten- 
sive type of farming would 
need to buy more land.” 

Evaluating the routes that 


further reform could take, Mr 
Foley says a bond compensa- 
tion scheme may be politically 
unacceptable, even if eamonti. 
rally justified, because of the 


sharp fall in land prices that it 
would entail. 

He suggests there will be a 
mixture of more price support 
cuts and more set-aside, 
together with greater limits on 
inputs such as fertilisers. 


Crop worries put wheat market through the mill 

World stocks remain tight and harvest prospects now seem less bright than they appeared at first 


MARKET REPORT 


Coffee gains consolidated 


COFFEE traders had a more 
subdued day than of late, as 
markets on both sides of the 
Atlantic consolidated recent 
gains. 

Futures prices opened firm, 
boosted by Friday’s strong 
close in New York, and then 
light trade and fund buying 

pushed a Him mo rning markup 
up $58 to a high at $L848 a 
tonne for three months metal. 
But New York’s failure to 
break 105 cents a pound 
prompted scattered profit-tak- 
ing and the London price eased 
to $1,812 at the close, up $22 on 
the day. 

The London COCOA market 
had a positive morning but 
trading remained t<»chnfeal and 
lacked the underpinning of 
solid Industry buying. The July 
delivery position at the London 
Commodity Exchange closed at 
£933 a tonne, up £4. 

At the London Metal 
Exchange ALUMINIUM capi- 


talised on copper’s strength 
(see story above), working 
back above the $1,330 a tonne 
level for three months delivery, 
and setting itself up for 
another test of the resistance 
in the mid-$l,330s. 

The PRECIOUS METALS 
retained most of their weekend 
gains after New York opened 
modestly lower in line with 
expectations. 

The GOLD price closed in 
London at S38L26 a troy ounce, 
up $5.95 from Friday’s close, 
while SILVER ended with a 21 
cents gain at $5.41% an ounce. 
PLATINUM was up $7.65 at 
$397.15 an ounce. 

Dealers said there was some 
follow-through buying in New 
York by the investment that 
had sparked the late rally on 
Friday. Some dealers had been 
concerned that New York 
might sell-off if it opened at 
more or less unchanged levels. 
Compiled from Reuter 


I f the ash comes out before 
the oak, they'll be a soak. 
But if the oak comes out 
before the ash, they’ll be a 
splash. 

This year, in Norfolk any- 
way, the buds on oak trees 
came out first, indicating, 
according to that usually reli- 
able sore that the coming sum- 
mer may be characterised by 
occasional light showers rather 
than steady downpours. 

Should that turn out to be 
the case cereal yields will be 
adversely affected. For in spite 
of the freshening rain of last 
weekend - which was Itself a 
crop-saver on many farms - 
soils will quickly dry out as 
temperatures increase and 
plant transpiration rates rise. 

Add to that the Legacy of the 
wet winter, which left many 
arable fields scarred and bare 
in places, where lakes of rain 
water stood for weeks on end 
and it is hardly surprising that 
optimism in this area is in 
short supply this spring. 

But it is very easy for a 

farmer to nnaka judgments On 


FARMER'S VEWPOBfT 



By David Richardson 


prospects for the entire harvest 
on the basis of the few fields 
around his house. Last week I 
travelled south and west and 
was surprised to find that in 
Hampshire, Wiltshire and Dor- 
set winter sown cereals were 
looking a lot better than those 
at home, with growth about a 
couple of weeks further for- 
ward. Perhaps the UK harvest 
will not be a total disaster after 
alL 

These days, however, as the 
reform of the European 
Union’s common agricultural 
policy progresses and guaran- 


teed prices decline, the value of 
UK cereals is wwrifog to rely 
for more on supply and 
demand both in the EU and the 
rest of the world. Current 
trends suggest that the gap 
between these factors is nar- 
rowing. 

Last week, tor instance, the 
UK ex-form spot wheat price 
increased by £4 to £U9 a tonne 
and that for June by a gtwdlar 
amount to £120. Both levels 
were a few pounds above the 
EU buying in price - and that 
In spite of recurring stories 
throughout most of last winter 
of sizeable, unsaleable sur- 
pluses in British barns, which 
were likely to have to stay 
there through the next harvest 

Some of the bearish senti- 
ment was undoubtedly 
inspired by merchants talking 
down the price. But there was 
apparent evidence to support 
their case and many cereal 
growers who sold early must 
now be frir-lring themselves. 

Forward prices for next har- 
vest have also risen above sup- 
port levels. The November 


intervention price for feed 
wheat, for instance, is £97 a 
tonne delivered to the store. 
But last week it was possible 
to sell forward to merchants at 
£S&S0 a tonne ex-form. Bread 
wheat, or common wheat as it 
is now known, could be sold 
for November at £112.50 a 
tonne, compared with an inter- 
vention price of £107. 

So, why the turnround? One 
reason must be that EU-wide 
domestic demand has 
increased now that guaranteed 
prices are lower. It must be 
assumed too that estimates of 
the outturn of last years EU 
harvest were exaggerated. 

But it must also have some- 
thing to do with the tightness 
of world cereal supplies. 
According to the April report 
from tiie Rome-based Food and 
Agriculture Organisation, a 
decline in world wheat output 
this year may be countered by 
a recovery in the maize crop. 
And although availability 
should be adequate to meet 
demand stocks will remain 
ckxe to minimum safe levels. 


The report shows that stocks 
as a percentage of world cereal 
consumption are expected to 
decline to 18 per cent this year 
having been between 19 and 21 
per cent during the previous 3 
years. Moreover the 1994 figure 
is similar to the stock level of 
1990 and indicates that sup- 
plies have been bordering on 
tiie critical for at least 4 years. 

The FAO has the responsibil- 
ity to tell of starvation risks 
around the world so might, 
perhaps, be accused of stress- 
ing potential problems. The 
International Wheat Council, 
however, has more commercial 
priorities and its forecasts 
coincide with those of the FAO 
for wheat while painting a 
worse picture for maize. 
According to the IWC world 
maize stocks are set to decline 
by about 5 per cent this year. 

There are reports, moreover, 
of poor growing conditions for 
winter-sown cereals in Russia 
and Ukraine, while shortages 
of Inputs have also caused 
problems with spring sowing. 
Canada China are both 


expected to produce lower ton- 
nages this year and there sre 
frost problems across the high 
plains of the US, which may 
have damaged spring plant- 
ings. A useful guide to future 
world prospects for wheat can 
usually be gained from the 
USDA’s decision on the level of 
set-aside, or acreage reduction, 
it imposes on formers wishing 
to qualify for crop loans. T5* 
decision for 1995 Is expected 
within the next two to three 
weeks and rumours from 
Washington are already sug- 
gesting that the set-aside for 
wheat will, as last year, be 
zero. 

Meanwhile, in spite of obvi- 
ously tightening supplies, most 
British and European arable 
formers will again have to set- 
aside 15 per cent o( their cereal 
land. But they are now becom- 
ing reconciled to it, and as long 
as they continue to be compen- 
sated for leaving land uncrop- 
ped and the market for die 
crops they do grow stays as 
lively as in recent weeks they 
should not complain too much. 


India expected to miss its foodgrain target despite good monsoon 


By Shiraz SMhva 
in New Delhi 


India’s foodgrain production 
during 199344 is expected to be 
179.1m tonnes, foiling short of 
the target of 188m tonnes, and 
marginally lower than last 
year’s record production of 
180.01m tonnes, despite a good 


monsoon for the sixth consecu- 
tive year. 

The ministry of agriculture 
said in Its annual report 
released yesterday that an 
uneven distribution of rainfall 
with very wet periods at the 
beginning of the monsoon sea- 
son followed by long dry spells 
in August over north-west 


India, had resulted in most tar- 
gets not being met. 

Production of some oilseed 
crops has been affected, with 
the groundnut crop in the 
Saurashtra and Kutch regions 
suffering from a deficient 
south-west monsoon. But a 
bumper soyabean crop is 
expected to boost oilseeds pro- 


duction to 20foL tnrmM from 
2027m tonnes last year. 

Floods in nftifl Indian statog 
in the north and the east, and 
inadequate rainfall in Bihar 
and Uttar Pradesh at the begin- 
ning of the season have a!«m 
played havoc with cash crops. 
The production of jute and 
mesta during 1993-94 is expec- 


ted to foil to 8.3m bales (of 
laqkg each), from 9m hal es last 
year. Cotton production is also 
expected to be lower than last 
year’s, failing to 10.6m bales 
from 12.5m bales. Sugar-cane 
production is likely to remain 
at last year’s figure of 231.01m 
tanws, felling short of the tar- 
get of 250m tonnes. 


The ministry has initiated & 
series of programmes to help 
state governments to increase 
crop productivity, for wheat, 
maize and millet, rice, cotton 
and Jute. 

Farmers are being encour- 
aged to use new, high-yielding 
varieties and environment- 
friendly pesticides. 


COMMODITIES PRICES 


BASE METALS 


CROSSWORD 


LONDON METAL EXCHANGE 

(Prices from Amalgamated Motel Treeing) 

■ ALUMINUM, 99.7 PURITY (S per tome) 


Precious Metals continued 

■ GOLD COMEX (100 Troy oz^ SAigy ozj 


GRAINS AND OIL SEEDS 

■ WHEAT LCEff par toma) 


SOFTS 

■ COCOA LCECBHotW 


MEAT AND LIVESTOCK 

■ UW CATTLE CME fjOgM Wjj C WM** 


No. 8,449 Set by CINEPHILE 


Ctosa 1301-2 

Previous 1307-08 

WgMow 

AM Official 1300-1 

Kqrb dose 

Opan ire. 246*18 

Total daily turnover 38,116 
■ AlUlftNIUM ALLOY (* par tonnffi 


3 ruths 
1328-8 
1322-3 
1337/1324 
1328.6-7.6 
1333-4 


set 

oafs 

Mgb 

Opn 



M 

Dafs 



Opra 



Salt 

Oaft 


Opra 



San D*k 

Opra 


priea 

dtega 

im U 

YoL 


pa*BS 

tkaage 

Mgb 

LOW 

H 



Prim ebaga 

Mpi 

LOT tat 

iM 


price dwoga Htfi Lot 

W 

VM 

3819 

-22 

• 

- 

- 

May 

11626 

•290 

11725 11525 

330 

48 

K>r 

890 

-4 

909 

899 377 

37 

Jan 

08300 +0273 68J25 87525 27218 

8283 

3829 

-22 

3839 

381S 77924 83,886 

Jua 

11599 

-195 

11775 11350 

1939 

101 

JM 

933 

44 

844 

925 22,196 3200 

Aug 

67260 +0760 87200 66275 16.748 

4.484 

3839 

-22 

- 

- 

- 

Sag 

9925 

• 

9999 

9925 

532 

45 

Sap 

B49 

+2 

962 

943 14295 1270 

oa 

70375 +0200 70900 00526 

12262 

2240 

385.1 

■22 

388* 

3849 17980 

4280 

Bov 

ioai5 

-025 

10120 

10025 

1.535 

a 

Dae 

970 

- 

984 

909 22,707 

770 

DC 

71275 +0500 71JQ0 70400 

8254 

1284 

3889 

-2.1 

3889 

387.7 5,022 

35 

Jte 

10230 

-0.10 10390 

10230 

1,1*1 

68 

Mar 

991 

- 

1002 

BOB 27273 

947 

Feb 

71250 +0600 71275 70800 

3.182 

295 

3919 

-70 

yfl.O 

3919 14^85 

969 

Mar 

104-00 

- 

10925 

104.00 

294 

75 

•tor 

1006 

+•1 

1018 

1004 10257 

too 

AW 

72225 +0325 72250 72273 

1282 

92 




141964 90212 

Tote 





W 72 


Total 




188278 7282 

Total 


70U074 17294 


P1AHHUM NYMEX pOTroy Srtroy gzj 


■ WHEAT car (EJOOEu n*t; canteftOfo bushaQ H COCOA CSCE (10 temaa: Stomp) 


■ LIVE HOPS CME WMOabac Qtete/M 


CfoM 

Pravfaua 

HlgMow 

AM Official 

Kerb clom 

Open W. 

Tote) dally tumavor 
■ LEAD (* par tanm} 

1M0-5 

1285-300 

1285 

1295-7 

4.157 

681 

1305-10 

1305-10 

131671310 

1310-1 

1310-20 

Ctoaa 

481,6-22 

478-8 

Previous 

4682-815 

4842-62 

HgMow 

463 

485/475 

AM Official 

4622-3J) 

479-7 

Karta dou 


43-4 

Open W. 

36,467 


Tool daby turnover 

4,052 


H NICKEL (* par nnna) 


Ctosa 

5780-70 

5835-40 

Provtaua 

6706-10 

6775-80 

HgMow 

5720 

5820/5880 

AM Offlcfal 

5705-10 

6790-5 

Kerb ctoso 


5870-78 

Opan W. 

55.405 


Totel da8y turnovar 

M TM (S par txxvw) 

13211 


CfoM 

5346-55 

5420-25 

Previous 

6445-60 

5505-10 

Wgh/taw 

5360/5355 

5490/5320 

AM Official 

5355-85 

5420-6 

Kerb ctosa 


5480-70 

Opan ire. 

18283 


Tote daOy turnover 

6,280 


M ZMC, apodal high gradaffi per coma) 

Ctaae 

9552^2 

977-8 

Provtous 

958.6-72 

977-72 

HJgMow 

» 

988/974 

AM Official 

953-4 

076-7 

Kerb ctosa 


977-8 

Opan tot 

101206 


ToW dafly turnover 

18,817 


M COPPER, grade A (S par tormd 


Close 

20562-62 

2056-7 

Previous 

2019-20 

2027-8 

Mgh/tow 

2041 

2078/2037 

AM Official 

2040-1 

2048-9 

Kerb dose 


2077-8 

Open ire. 

1662*7 


Tote dally turnover 

91200 



JM 

4009 

+12 

4022 

3982 17.113 

4212 

Oct 

4011 

+Z0 

4032 

4012 2.481 

151 

Jra 

4042 

+22 

4022 

- 838 

8 

Apr 

405.1 

+22 

4082 

4052 928 

5 

Tate 




21288 

*77* 

■ PALLADIUM NYMEX (100 Troy at; S/tray azj 

Jan 

13820 

-Z75 13050 137.^ 3219 

1213 

*sp 

13725 

-2.75 13000 13TJ5 1201 

440 

Dae 

138.10 

-220 

- 

. 462 

2 

Bar 

13720 

-220 

• 

8 

- 

Tate 




5288 

1(484 

M SILVER COMEX (100 Tray azj Cents/troy oz.) 

•to 

6409 

-22 

5422 

5372 1228 

732 

Jra 

5412 

-32 

• 

3 

8 

JM 

5442 

-10 

5482 

5405 82244 38,196 

*ra 

5482 

-22 

5510 

5452 8270 

538 

Oao 

557.1 

-22 

5802 

5542 11,757 

880 

Jra 

6592 

-22 

- 

- 32 

• 

Total 




177,248 40214 


•to 

319ft 

-M 

321/4 

31W4 1,196 1.415 

May 

1190 

-10 

. 

50 7 

M 

325/4 

-1/4 

327/8 

325/0146,086 87.790 

JM 

1215 

■2 

1225 

1207 3826812240 

sap 

328/4 

-IM 

330/4 

328ft 34.740 9295 

lap 

1240 

+3 

1249 

1230 14289 2,178 

one 

338ft 

-Oft 

340ft 

338ft 38,185 19250 

Dra 

1280 

+8 

1284 

1289 8247 820 

Mtar 

342ft 

+0/2 

342ft 

341/4 2210 536 

Mar 

1314 

+8 

1318 

1307 I020B 20 

•to 

Total 

837ft 

+0/2 

" 

- 160 

222255 98,760 

•to 

7MM 

1343 

+10 

1345 

1340 4289 220 
82,19815203 


4&3SD +QJJ75 49:700 40873 14.743 4.787 

50250 +0850 50325 40350 6.179 2J2S4 

40625 +0900 48*25 47.625 3J80 968 

443S0 +0875 44880 40800 2851 353 

45.125 *0878 45.150 44.160 2£S2 236 

44900 +0900 45050 4X080 528 82 

30,722 0718 


■ MAIZE CBT (5J00 bu certa/56g3 bushel] ■ COCOA QCOO) gORWjonnjj 


■ PORK BHJJB8 CME (4QJ)OOtoa; canta/toa) 


266/2 -» 258ft 255ft 35,455 11820 
267/0 -8» 259/0 2600888,410130880 


2400 -2ft 2500 3486)160680 14816 
241/0 -243 2438) 2404385840 81830 


249/0 -2/0 250/6 2400 38880 3800 
253/4 -2/4 254/4 253/4 4*440 880 


Mt 

■to* 

10 day average 


ENERGY 

■ CHUDe on. NYMEX (42.000 us I 
latte Bays 


■ BAHUEY LC£ (£ per tPono) 

Mai 10000 -290 

0* 8790 +040 9796 

No> 9990 +025 

Jan 10025 -038 

M» 10196 

May 10175 

Taw 

■ SOYABEANS COT (580QW ate; i 


58 

138 5 

177 
30 
5 
5 

411 8 

Mbtteie* 


■ COPFm LCE 9flan* 


■to 

1890 

+2 

1900 

1878 2201 333 

JM 

1013 

+23 

1848 

1795 17213 2200 

to 

1789 

+38 

1790 

1746 14219 2,160 

■Of 

1739 

+31 

1780 

1715 5241 1242 

Jra 

1737 

+39 

1740 

1709 6223 384 

Total 

1708 

+23 

1701 

1700 2208 24 

<8,184 1223 


46960 +0700 47.100 44900 308 174 

40100 +0850 46900 44600 0773 2,170 

43925 +0675 44950 42950 1908 423 

90700 +0400 50750 40750 275 118 

50100 +0800 50100 48800 23 5 

51/450 +0450 51.450 51900 12 3 

8802 2988 


iKTCeCE P7.5008*; oanta/fca) 


latte Day’s Open 

pika dungs MB Lot M Pol 

JlU 17.74 +094 1795 17.45122.487 64850 
Jo! 1794 - 17.45 17.14 78290 36804 

Aog 17.18 +091 1795 1790 38,789 13.151 

Sap 1798 -091 17.16 1892 26832 9938 

Oat 1794 +091 1796 1890 18.166 5868 

NOV 1791 +091 1794 1690 12,103 4981 

TaW 438982148862 

■ CRUDE OU.1PE (8/toand) 


**» 863/4 -4ft 8884) 681ft 19810 12840 

Jd 862/4 -5« 683/4 660/4330^5194,190 

Ana 858/4 -5ft 880ft 663/4 82.370 115B0 

to 832/0 -5 ft 633/4 832ft 34810 2825 

Rw 812ft -8ft 816ft 812ft 21 8920 71875 

Jm 819ft -4/8 622/4 819ft 21.480 896 

TMM. 708,736296980 

■ SOYABEAN 00. CBT (60900K>k oarta/fc) 


May 10840 +490 10740 10296 383 296 

Jd 10860 +4.70 10820 10290 3490114888 
*9 10840 +486 10850 10180 13.488 3905 

Dee 10805 +495 10880 10180 4.104 1,712 

mu mn +485 10790 10290 3.130 1925 

May 10800 +590 10890 10280 402 09 

Total 6198328129 

■ correE QCO) (US canta/pounffi 


LONDON TRADED OPTIONS 

Strike prica S tome — -CeOa— —Puts — 
■ ALUNBNIUIII 

(99.754) LME Jii Oot Jul Oot 

1300 62 85 22 35 

1325 38 71 S3 44 

1350 27 58 47 56 


Latest Day's Open 

pika cfeanga ffigli Lot lot Vd 
1821 -807 1833 1808 82540 28964 

1598 -008 1810 1890 53878 188D4 

1888 -099 1598 1881 17.482 3874 

1878 -013 1892 1573 12842 2841 

1879 -007 1888 1878 5852 1910 

1879 -809 15.90 1878 4873 720 

1S3.T81 57,120 


Hay 28<0 • 2832 2830 4852 1,419 

Jut 2828 +092 28« 2809 36905 9944 

Abo 2792 +091 2808 2780 12996 1858 

Ski 2794 +0.03 2746 27.19 10832 682 

Oct 2835 +098 2840 2820 8129 285 

Oao 2582 +802 2585 2588 15916 1,704 

TaW 95827 14*48 

■ SOYABEAN MEAL CST flOO tone; S/tor$ 


LME AM Official C/S ram 1.4880 
LME Clodng CAS rate: 1.4968 


Spot 1 .4983 3 metis: 1.4967 6 mtt* 1.4806 9 rrrths 1.4965 
■ HUH GRADE COPPER (COMEX) 


■ MEATMQ Ott. KYMBC (42,000 U5 gate; cftB grita) 

Lated Dayk Opra 

price cfcanga Mgb Lot tot W 
Mo 4825 +815 4855 47SS 47834 13883 

M 4895 +820 4880 47.90 319«9 8318 

tag 4986 +810 4830 4880 13878 2.786 

S«P 5800 +820 50.15 4880 11938 1,215 

<M 3080 +095 9190 5099 7938 158 

Noe 61.79 +810 5191 5190 5.426 1T2 

MMB 



Ctan 

■lain 

draw 

Mgh 

taw 

Opra 

tat 

W 

•to 

9720 

+«5 

9720 

94.90 

4,191 

40 

Jra 

9725 

+115 

9726 

9620 

1216 

21 

Jui 

9725 

+110 

9720 

9420 

371 

874 

to 

97.15 

+110 

- 

- 

417 

23 

to 

9670 

+105 

flflJO 

MTS 

7223 

30 

DM 

98.45 

+225 

- 

- 

208 

15 

Total 





22289 

1213 


May 1682 -18 1879 1881 2924 1881 

JH 187.6 -18 - 1874 38.445 15,123 

Ana 1889 -19 187.7 1888 13,128 2970 

Sep 1859 -1.1 1888 1848 8408 848 

Od 1814 -14 1834 1819 3.110 787 

Dec 1886 -1.7 181.7 1800 16939 3,144 

Taw 87,171 23968 

■ POTATOES LC6 tC/tarrw) 


HQASOtLPE (Stent 


Jui 2824 ... 2 

Her 009 

War 1059 .... 

Apr 1386 -1.1 1385 1359 535 

May 1409 .... 

Jen 1074 .... 

TOW 535 

■ FBEWHT (BfEEX) LCE ftlQ/bxfeot point) 


May 7 Pika Pun. to 

Comp. Mr 9837 9499 

16 day Manga 8580 8488 

■ No7 PHBMffJM RAW SUGAR LCE (cents/tba? 

JM 12.15 +08S - - 2801 

Oct 1199 +0.17 - 563 

Jui 1182 

Uar 1180 

Tdd 3,164 

■ WHITE StUAB USE (S/tome) 

Aog 33540 +890 33800 33240 11818 1,130 

Oct 315m +240 31800 313J0 78*2 139 

Doc 30740 +1.70 30800 30820 402 SO 

Mv 30830 +280 30840 30440 1.154 82 

May 30830 +290 - 200 

Ida 30980 +100 - - 218 

ToW 20805 1891 

H 8UOAB 'll 1 C8C6 fn2,000a>a; cantejbft 
Jd 1194 +092 1198 11.73 5043*14413 

Oct 11.72 +0.16 11.72 1185 35.112 8148 

Mu 11.40 +0.14 11.41 1198 18883 981 

May 1188 +0.12 1185 1183 2800 35 

Jd 1183 +0.12 1185 1191 1804 13 

Oct 1182 +0.13 1182 1181 479 33 

ToW 108882 21 J21 

H COTTON NYCE (SQuOMbaj CffHW 


(aerie A) LME 

2000 

2050 

2100 

■ COFFEE LCE 

1500 

1650 

iaoo — 

■ COOOALCE 

875 

900 


JM 

Oct 

Jul 

Oct 

62 

85 

22 

35 

39 

71 

33 

44 

27 

58 

47 

58 

Jul 

Oct 

Ad 

Oct 

101 

121 

23 

48 

69 

92 

41 

89 

44 

68 

68 

98 

JUI 

Sap 

JU 

Sap 

317 

209 

4 

20 

270 

248 

7 

29 

228 

211 

13 

42 

Jul 

Sap 

JU 

to> 

84 

92 

6 

18 

48 

76 

13 

28 

30 

60 

22 

38 

Jte 

Jd 

Jun 

Jul 

72 

88 

4 

32 

27 

54 

14 

62 

6 

34 

- 

- 



Solutions to duos marked * are inhtatty equivalent to padflsta 


across 

*1 A force used on another's 
name and address (4^) 

*4 Instead of love in Asian capi- 
tal I have a South American 
country (8) 

9 Fierce wild South American 
port (6) 

10 Fowler's work is sure to foil 


LONDON SPOT MARKETS 

H CRUDE OIL FOB (par barrat/Jun) +or 


DdW* S1444-4.78y +0.14 

Brant Blend (dated) $1832-884 +804 

Brant Bland (Jun) $1820-822 +804 

W.T.L Opm as* $1788-7.70? +G 04 

■ OIL PROOUCT8 NWE prompt deSrary OF (tonne) 


Sett De/e Opeo 

price change MW Low M Vd 

104.75 +290 16540 15125 19440 4,481 

15340 +195 15425 15225 27.172 8791 

15178 +190 15440 15250 18398 1838 

15590 +040 15540 13440 6A36 398 

16875 +9.75 15790 195S0 82A0 530 

15025 +080 15840 18690 5,606 367 


PRECIOUS METALS 

■ LONDON BULLION MARKET 
(Prices euppBed by N M Rothacttaffi 


GoldfTtoyazJ S price £ squtv. 

Close 381.00-38140 

OpdUnfl 38195-38225 

Morning fbt 381.40 256237 

Afternoon fix 38120 254.879 

Day's ugh 36228-3827$ 

De/s Low 380.90-381.40 

Previous dose 37440-37440 

Loco Ltki Mean Odd Lending Rates (Vs USS) 

1 month 340 6 mo nt h s 4.47 

2 months 4.02 12 month s 494 

3 months 4.18 


■ NATURAL QAS HHlCt (10.000 mmBta; S/tenftBi) 
Latest Bay's Open 

prise dungs Ugh Lou W Vd 
MR 1985 -0.052 2945 1960 16424 7923 

<M 2930 -0939 2975 Z925 14,438 £374 

/k« 2. OSS -0929 2085 2990 10947 920 

«*P 1035 41X525 2.110 2480 10*43 293 

Oct 2.130 -0933 2.150 2135 7.482 245 

Mg* 2225 -0015 2245 2230 9.728 488 


Bay 

1490 

+20 

1493 

1484 

887 

52 

JW 

80.12 

-am 

81*0 

80.12 imi 

3 

Jra 

1385 

+11 

1400 

1380 

872 

74 

Oct 

74J5 

-1^2 

7180 

74JZ5 Z7,*87 5865 

JM 

1235 

+20 

1295 

1278 

608 

a 

□ea 

7150 

■037 

74.10 

7185 4,669 1^11 

Oct 

1381 

+13 

1380 

1374 

ZB7 

87 

Nkr 

74.45 

■183 

■mss 

73J90 18327 3,43 

jra 

1397 

+l« 

1400 

1384 

148 

71 

1 ftxy 

74.73 

-1.15 

7535 

7430 1.770 

461 

to 

1398 

+13 

1400 

1394 

40 

18 

JM 

7525 

-124 

780)0 

7800 873 

135 

Total 





1803 

to 

Total 




8*38211 fill 

BH 

Gtara 

1463 

Pra» 

1443 





M ORANGE JUJCE NYCE (IShOOto: cente/fto) 








•to 

94J5 

-180 

9830 

9438 487 

148 








JM 

98.70 

-38Q 

9920 

96.10 11529 2,138 








to 

88J0 

-40)6 

10150 

97J5 1507 

349 








Saa 

10030 

-345 

10200 

9976 1,182 

37 








Jra 

10100 

10*00 

-135 

-335 

10150 

10840 

10130 2321 
10430 BBS 

124 

35 


Premium Gasoline 
Gee CM 
Heavy Pud OR 
Naphtha 
Jot Fuel 

/’•mean Argut adnetea 
■ OTHS1 


5179-181 +2 

SI 64-156 
*79-82 +1.6 

*154-100 +1 

*108-170 +2J5 


18467 2429 


114,432 (3409 


■ UNLEADS) GASOLINE 
HYM6X (42X00 US gait; tffiotoj 


SBnr m 

Spot 

3 months 
6 months 
1 year 
Gold Colne 
Krugerrand 
Made Last 
New Srnmtgn 


p/troy cel us cts eqtev. jn 


360.60 

36540 

389.70 

aanfts 

9 price 
386-389 
391.90-39445 
89-02 


late* Day*! Open 

Prise «*a«ge Hgh Lot M M 

50.75 +0.65 31-25 48.70 *5,52* 14,987 

51.10 +042 5190 5090 34,873 7,912 

6195 +032 5140 5040 12,468 1/00 

9045 +0.12 5086 3090 9930 1.447 

4000 +012 4015 4080 2919 554 

4895 -093 4820 4890 2,133 141 

87972 0933 


Fair gnu demand, reports The Tea Bratatf 
Association. Best Best Africans and cefeuy 
mediums saw a firm market but brighter 
medtura were often 4 to Bp lower. PHner 
AMeans eke landed easier where sold. Cey- 
<ona moved lower, prededariy pkfeur types. 
Brighter Ceytaro end ZhibuLwu sold we# but 
prices for Bahta. plainer types texted easier. 
Best evsfebfc 2l0p/lqj norn figop/hg, nont 
good ISOp/hg (ISOp/kfO. good medum I30p/ 
kg (I34p/kg), medlun Hfip/kg (IISpAgj, low 
mecteim 80p/kg (84p/Kg) and the Mghaat pries 
reatend this week was 211p/tcg ter a Rwanda 
pf.1. NB Last weds' flgtma shown in brack- 
ets. 


VOLUME DATA 

Open Wared end iteteme data shown for 
contmete traded on COMEX. NYMEX CST, 
NYCE. CME. CSCE and IPE Crude 08 are one 
day in a rea s . 


INDICES 

■ RBJIERa (Base: IB/BOIalOq 

M«y 10 May 8 month ago year ago 
1887.1 187S9 18002 1867.4 

■ cub Rrturas (Saaa: 4ftft6-loq 

May 8 May 5 month ago year ego 
226.61 224,11 223.78 208J9 


QoM (per tray ag* 
S*rar (per troy ok)^ 
Platinum (per troy oz.) 
Pafiadkjm (pv tray oz.) 
Copper (US prodj 
Lead (US prodj 
Tin (Kites lumpu) 

Tin (Not York) 
ano (US Prims W.) 
Cattle (Ira ete^rtfr 
Sheep (Ive weight^ 
Pigs Ohra weight) 

Lon. day sugar 
Lon. day sugar huts) 
Tate & l^e export 
Barley (Ertg. feed) 

Metes (US No3 Yteow) 
Wheat (US Date Noitr^ 
Rteiber (Jwi)f 
RutearfMf 
RybMUKLRSSNol Jun) 
Coconut OD (Rtffi§ 

Pttn Ofi (Matey.)§ 
Copra (PNQ§ 

Soysbws (US) 

Cotton Outtool c A Index 
WuoH opa (B4e Supa) 


X2 Wobbly? Take about a second 
to acclimatise (8) 

*13, 27 On Monday steer car and 
stay outside: there's poison 
gas(6£) 

15 Ineffectual individual gets 
intravenous feed (4) 

16 Revulsion causing breach 
with Nero (10) 

IS Interior model In coin, so the 
gong says (6,4) 

20 It takes hours in the pictures 
(4) 

*28 It’s colourful, as Lithuanian 
is to Estonian etc (6) 

25 It could be a monster going 
into operation (2,0) 

27 See 13 

28 Some grammar in action in 
the boat yard (6) 

29 The last place left with dis- 
patch (53) 

*30 Hundreds were posh (0) 


DOWN 

*1.5 Transferred to next page, as 
bride at threshold (7,4) 

2 Niche I take on when times 
are bad (9) 

3 Not skating to post (6) 

5 See 1 down 

6 Love would briefly vex the 
devil (3^ 

7 Description on iacket to 
weaken impression of book? 
(5) 

8 Request an establishment 
obliquely (7) 

11 Will need to take in bead (7) 

14 TEH fish to swallow male per- 
son (7) 

17 Natural in relation to togs, 
not applicable to tbe undent 
spring of inspiration (9) 

15 Engineers with electric wins 
produce knee-jerks etc (8) 

19 Falsely claimed: it could baa 
fraction (7) 

*21 Visitors to mflitaiy unit (7) 

22 Ancient geographer turned to 
bars (6) 

24 High, peak in African bight <S) 

26 River of paradise? (4) 


J® Sa *””ky'? vrixe puzzle on Saturday May 2L 
Solution to yesterday’s prize puzzle onMonfctfMhy 23. 


g par tetete iteara oOTra te e Mated, p praeakg. o rantfu 
r itegs/Ueg. m Iktek terin z AteU * Jwl w Mb. 
* ApriMay. y Item tetyriral g OF Ratniwni A Btetei 
mtete dose. 4 Swap *Jw nift* pnea^. • Chang* on 
■ask praririn ral ptes- 





<^ re 


I I"!-,, 

*•— :i I; % . 


\ - 

V *•> 



GO-63 






1 






i i . . ■ W f 

" ! -“Ms*- 

‘■'•in tup. 
■ -rrjh#!. 



monsoon 


SWORD 


i!i I 


■ m ■ 


v 
■' ■ 


i 

■i 


1 V 1 

■ A» 

■ ■ *' 

r - ' 



FINANCIAL TIMES TUESDAY MAY 10 1994 

• ' LONDON STOCK EXCHANGE 


MARKET REPORT 


FT-SE-A All-Share index Equity Shares Traded 


Concerns over US rates depress share prices 


By Terry Byiand, 

UK Stock Market EcGtor 

The UK stock market staged a 
successful rally towards the close of 
a depressed session yesterday 
which was dominated by weakness 
in British government bonds and 
also in sterling as political tensions 
Increased. Markets kept a dose eye 
on the US dollar, worried that any 
renewed setback might prompt the 
US Federal Reserve to tighten credit 
policy more harshly than previously 
In the present cycle. Yesterday’s 
money market action by the Federal 
Reserve came after the London 
close. 

The disclosure that domestic con- 
sumer credit had jumped by £51 6m 
in March, Ear above market expecta- 
tions, gave a further blow to any 
lingering hopes for a cut In base 


rates but brought little relief to 
either bonds or sterling. 

The FT-SE 100 Index was 25.3 
down at the day's low when Wall 
Street had opened sharply off and 
global bond markets were drifting 
easier. Bnt London rallied as the 
loss on the Dow Average was cut to 
9.5 in early trading. At its final 
reading, the FT-SE 100 showed a net 
decline of &2 at 3,097.8. 

The late recovery in the blue chip 
leaders was fuelled by the expiry of 
two over-the-counter option con- 
tracts believed to have been oper- 
ated by leading houses. These 
houses were thought to have been 
operating heavily in the Footsie 
future towards the close of the trad- 
ing session as the share option con- 
tracts expired. 

Trading volume in UK equities 
was not heavy yesterday but the 


Account Dealing Dates 

*Hrat Daatega; 

Apr 25 

May 16 June 

Opdan OadaMoa: 
Mqr 12 

Jun 2 Jun 16 

Lot Doaenga: 

Ltey l3 

Jun 9 Jun 17 

Aeoount Day: 

May 33 

Jim 13 JU1 77 

yaw ttau dateby 

mar taka plan* Iran two 


concern over US interest rates over- 
shadowed all other considerations. 
Markets across Europe were con- 
cerned that the Federal Reserve 
might take action ahead of this 
week's refunding of US government ■ 
securities. 

UK equities crumbled in early 
trading iwhinii a fail in stock inrinT 
futures and also in gilt-edged securi- 
ties. There were suggestions from 
political sources that Mr John 


Major's Conservative government, 
hard hit in the opinion polls follow- 
ing last week’s UK local elections, 
was under pressure to hold a 
national referendum on policies 
towards the Kmnnmfe Union. . 

Unimpressive trading volume 
indicated that share losses reflected 
cautious marking down operations 
by marketmakers rather than any 
undue selling pressure. The loss of 
the Footsie 3,100 mark yet again 
was unhelpful and the consumer 
credit data underlined the market's 
resignation to the fading of base 
rate hopes - as well as raising fears 
that the next move in domestic 
interest rates might be upwards. 

However, the day’s Seaq trading 
volume total of 4S0.Bm shares was 
nearly 27 per cent down from Fri- 
day’s figure, which was worth 
£1.24bn in retail worth, at the lower 


end of recent daily averages. 

The picture among the second- 
Une stocks was much the samp as 
in the Footsie-listed issues. The 
FT-SE Mid 250 index failed to share 
in the late rally and closed with a 
fall of 2&9 points at 3,742.1. 

The setback in the UK equity 
market was less than those 
recorded by other leading European 
markets, although UK gilts were 
significantly weaker than other 
bond markets because of the politi- 
cal factors in London. 

Weakness in gilts has continued 
to undermine UK equities for the 
past two months, and there was lit- 
tle sign yesterday that share prices 
were yet ready to disengage from 
the gilts market and to respond 
more confidently to the growing 
indications of recovery in the UK 
economy. 


1.675 



Yranover by wrfumo (mfflon). EwAiding: 
tntm-markat Business and overseas tumov« 



1994 


■ Key Indicators 
Indices and ratios 


FT-SE 100 3087.8 

FT-SE Md 250 3742.1 

FT-SE-A 350 1573.8 

FT-SE-A AS-Share 1566.43 


FT-SE-A AB-Share yield 3.71 


-a .2 

FT Ordinary index 

24775 

-3.8 

-28.9 

FT-SE-A Non Fins p/e 

20.36 

(20.43) 

- 6.0 

FT-SE 100 Fut Jun 

3101.0 

- 2.0 

- 6.02 

10 yr GUI yWd 

8.40 

(8.361 

(359) 

Long 0 flt/equ«y ytd ratio: 

2.31 

(2 JO) 


Best performing sectors 


1 Spirits, Wines & Cider +1.9 

2 Oil Exploration & Prod +t _5 

3 Oil, Integrated + 1.2 

4 Mineral Extraction +1 .0 

5 Gas Distribution +05 


Worst perfor mi ng sectors 



-1.7 



.-15 

MecUa - — 

-15 



under 



The latest slide in gilt-edged 
stocks, plus renewed worries 
about the forthcoming regula- 
tory reviews, brought renewed 
pain to the electricity and 
water sectors. Last month the 
utilities provided 14 of the 20 
worst performers in the FT-SE 
Mid 250 Irwin* ami the seven 
worst performers in the FT-SE 
100 Index. 

Both sectors closed well 


above tin day’s lowest levels 
after a modest rally in gilts 
triggered bargain hunting: 

In the Tecs'*, Eastern fin- 
ished 714 off at 577Vip and 
Southern 17Vi weaker at 54ft4p. 
The generators were equally 
punished, with more US selling 
hitting PowerGen, finally 15 off 
at455p. 

RBOS hopes 

Growing optimism in the 
market that Royal Bank of 
Scotland will be the next big 
FT-SE 100 constituent to 
deliver a 20 per cent-plus divi- 
dend increase saw the bank's 
shares produce the leading 
index's best individual perfor- 


mance. They settled a net 21 
higher at 428p, a rise of L9 per 
cent, following relatively large 
turnover of 3.1m shares. 

RBOS's interim results are 
expected tomorrow, with ana- 
lysts looking for pre-tax profits 
at least double the £91 m 
achieved last year. A big rise 
in earnings from Direct Line, 
the bank’s insurance by tele- 
phone business and one of the 
jewels in the bank's crown, is 
expected. 

But it will be the size of the 
dividend increase that will 
determine the market ’s 
response to the results. Most 
bank sector analysts are 
looking for an interim rise of 
at least 20 per cent and there 


win be some disappointment if 
the increase does not match 
the 25 per cent increase in the 
payout total last year. 

C&W alert 

The revival of rumours that 
Cable and Wireless could be 
considering a flotation for its 
Mercury telecoms subsidiary 
triggered a strong rise in C&W 
shares. largely at the expense 
of its two UK telecoms rivals, 
BT and Vodafone. 

Dealers said the Mercury flo- 
tation story was one that 
cropped up regularly and had 
been circulating In the market 
late last week. They also 
pointed out that C&W shares 


EQUITY FUTURES AND OPTIONS TRADING 


TRADING VOLUME 


Stock index futures rattled off 
the bottom towards the dose 
to finish above the June 
Footsie 3,100 support level, 
after a session dominated by 


weakness in gilts and further 
political uncertainity, writes 
JoeHQbazo. 

The first trade in the June 
contract on the FT-SE 100 


index was struck at 3,095. 
Goldman Sachs executed an 
order for around 400 contracts 
shortly after the opening, and 
June fall back after its 
completion. 

The release of higher than 
anticipated UK consumer 
credit figures led to a further 
retreat as lingering hopes of 
a reduction in interest rates 
faded. June then traded In a 
tight range of 3,074 and 3,080 
for the next few hours before 
renewed selling followed the 
opening on Wan Street 

However, firmness in US 
bonds, together with reports 
of a big trade in 
“over-the-counter” options 
brought a rally just before the 
offidai dose and the June 
contract finished at 3,101, just 
ahead of Its fair value premium 
to cash of about 3 points. 
Volume amounted to 12,394 
lots. 

Traded options saw business 
of 35,436 contracts in total, 
of which 10,806 were dealt 
in the FT-SE 100 option and 
3,585 In the Euro FT-SE. 

A big trade in the Guinness 
calls and puts made it the 
day’s most active stock option 
with a total of 5,312 lots. Argyll 
Group and BP were also busy. 


■ FT-SE 100 IWEX FUTURES (LUTE} 225 per Ml Max pokd (APT) 



Open 

Sea price 

Ctiraige 

Hgh 

Low 

Eat vol 

Open tnt 

Jun 

3095.0 

31171.0 

-AO 

3103-0 

3074.0 

12394 

51987 

Sep 

- 

3118.0 

-25 

- 

- 

0 

920 

Dec 

- 

3130.0 

-2.0 

- 

- 

0 

201 


■ FT-SE feBP 290 M36X FUTURES (UFFq CIO pgr futhdex point 


Jun 3750.0 3735.0 -304 37504 37504 10 3788 

■ FT-SE MB 250 INDEX WTURES {OMLX) £10 per M Index point 


Jut - 3757.5 .... 891 

M open titareat toms are lor pmtaa day: t Exact odune shown. 


■ FT-SE 100 MDEX OPTION (L1FFE) p«BS» eiO perfUMe* point 


2900 2950 3000 3050 3100 3150 3200 3250 

CPCPCPCPCPCPCPCP 
Hay 2M>z 2>j 167»j Uj 113^ 8>z 70 18 » 351a 17 SPs 8 100* Z ISO 

Jun 212 13 171*2 22 132b 33 97% 48^ Tffe 71 48 87»z SfelZfelSfe 168 

JU 230b 24^ 188b 34^ 153*2 40 120b 64 92 85^ BBb 112b 4Bb 141*2 SP 2 180 

Aug 252b 36 215 51b 177b 64b f« 83b 119 104 91b 130 70b 159b 52b 193 

Dacf 299 79b 233b 11 2b 174 ISO 127 202 

CHS MR Ms 7.884 

■ amo STYLE FT-SE 100 INDEX OPTION (UITC) 910 perfid Max port 


2925 2976 3025 3075 3128 3175 3226 3275 

Itay 17Bb 3 132b 6 88b 13 51 24b Mb 47b 10b 82b 3 127b 1 173 
Jun 191 18 150b 25 114b 39 83b 57b 58 82 38b 112 24 147 14 187 

JU 208b Z7 138 54 80 97 42 157b 

Sap, 240 50b 172 81 H8T23 73 178 

Dart 281 82b 215b 114 160 1SS 114 206 

Crib 1,348 Pm £129 * Undatytag beta wk* Pnahne Hum are tend on saBtanM prion, 
t long nun e**y mate. 

■ EURO STYLE FT-SE 9W7 260 WDEX OPTION (OMLX) £10 per fat Max petite 


3780 3800 3880 3000 3950 4000 4060 4100 

■*9 49 35 3 62 12 98 5 141 

Cato 0 Pun a StHknn prims and Moms m tea d 430pn 


FT - SE Actuaries Share- Indices 


The UK Series 



May 9 

08y*8 

cftgeK May8 May 6 May 4 

Year 

ago 

Dl v- 
ytek«6 

Earn. 

ytaldN 

P/E 

ratio 

Xd ad), 
ytd 

Total 

Return 

FT-SE 100 

30975 

. -05 3106.0 31060 30705 

2829.8 

352 

643 

1857 

3856 

115057 

FT-SE MW 250 

374X1 

-05 37715 37705 3757.7 

31255 

359 

550 

2X14 

TSTfl 

1372.12 

FT-SE tSd 250 ex Inv Trusts 

3759.0 

-05 37885 3787.7 3775.8 

31665 

X41 

552 

20.73 

3642 

137455 

FT-SE-A 350 

157X8 

-04 15735 15707 1564.7 

14004 

X77 

. 021 

1039 

1750 

119026 

FT-SE 8mflCap 

183X40 

-04 194053 194158 194256 158629 

X90 

4.15 

2950 

1610 

148055 

FT-SE SmaBCap ex Inv Truote 

191X29 

-03181X42 1821-31 192251 1989.41 

606 

458 

27.15 

1624 

146858 

FT-SE-A ALL-SHARE 

158X43 

-0.4 157X45 157X46 155650 1394.42 

X71 

608 

1958 

17.11 

121151 

■ FT-SE Actuaries All-Share 










Day's 

Yfior 

OK. 

Earn 

P/E 

Xd acX 

Tata! 


May 9 

chge% May 6 May 5 Mny 4 

ago 

yleMM 

yWd* 

redo 

ytd 

Return 


10 MINERAL EXTRACTION tIB) 27353X3 

12 Extraatw Industries^ 3878.88 

16 OR, Inragratedp) 2667.38 

18 OR Exploration & ProdfMl 2029-29 


+1 33 2707.93 2681 54 201 8j40 2137.1 0 X40 4M0 27.91 31-85 1083JB 

-0.2 3885.04 3873-64 387X80 2906.10 324 5.10 24.60 42.75 106830 

+1.2 2866.18 2824.71 254537 2066.60 3.43 4.70 2X44 3258 1088,71 

+1-5 2000.22 198X30 1983.70 1944.00 X32 1,22 80.007 1526 1162-85 


20 GEN MANUFACTURER5f2Se 

21 Bidding & Conetruction(31> 

22 BuWrtg Mods A MerctatfCQ 

23 C>wntteato(2l) 

24 DtaraMed InduaWatefie) 

25 Bectrerdc & Boa EqUppQ 

26 Bigin6erfng(71) 

27 engineering, \fehtetoe(12) 

28 Printing, Paper & Pckg(Z7) 

29 Taxtdio X ApparatgO) 


208075 

-05 208758 210048 208558 1759.70 

352 

438 

2851 

2X14 

104X47 

1301.70 

-15 1321.17 132457 131457 107150 

257 

X71 

3451 

1257 

100078 

202X90 

-1.1 204558 205643 205620 168X10 

n«a» 

X73 

34.43 

2658 

94054 

250351 

-08 253648 2S42.03 263357 21 67. BO 

357 

4.55 

27.47 

2859 

100158 

207954 

-05 209854 209653 206453 194850 

4.42 

AM 

9U99 

3045 

104550 

207258 

*03 208559 204649 204359 193X00 

354 

624 

1959 

1X72 

991.74 

194X74 

-1.1 196X42 198690 198694 148950 

254 

352 

3X48 

1677 

109458 

244621 

-05 246625 244944 244356 178060 

439 

XII 

8633 

3X42 

115951 

2907.12 

-05 2921.15 2941.07 2964.66 232050 

256 

450 

2454 

2659 

1129.05 

179946 

-02 1B0XB9 161158 1807.72 181640 

X87 

657 

2X08 

2045 

1004.91 


30 CONSUMER 00008(96) 2744.98 

31 Breweries* 17) 229527 

32 Sptrtte. Wines ft CtdaraflO) 302522 

33 Food Manutacturers(23) 2388.07 

34 Household GoodoflS) 2727:93 

36 Health Care<20) 1724.80 

37 Phamtmeuifcab(1i) 2777.59 

38 Tobaccotl) 3687.00 


♦03 2737.27 273927 2732.46 275140 
♦06 2284433 229024 2285.31 2131.90 
+U9 296066 297030 285093 2841.70 
-02 237022 236JL94 233424 2324 JO 

272705 273011 2721.90 2288.10 

-03 173082 171072 17134W 167070 
+03 276034 2784.75 278072 312420 
-1.7 374082 3745.73 3B1XB4 378050 


40 6ERVICES{220} 

41 aatribuorapi) 

42 Letau-e ft Hexeta(23] 

43 MedtafSS) 

44 HetaBere. FoodftT) 

45 ReteBers, General) 

48 Support ServtoaoWO) 

49 Transport e d) 


203092 -07 2045.17 20SOSS 203220 175720 

3059.03 -02 306836 305130 3042.77 280820 

2226.74 -03 2234.76 223624 222927 170060 

302071 -1.2 30B320 308828308128 2244.70 

183060 -05 163827 1843.73 168921 192220 

175058 -OB 178091 178220 174020 140780 

1B58.11 -06 166024 160039 1663.14 150920 

246022 -1.0 2486.72 250021 249622 199080 


453 

759 

1661 

41^ 

92958 

357 

7.49 

16.41 

11.01 

100659 

q W 

640 

1618 

41.70 

100664 

452 

7.46 

1671 

39.68 

88352 

a» 

853 

1611 

3857 

97610 

&20 

650 

2156 

1600 

96950 

451 

750 

1457 

41.70 

86752 

672 

956 

1X45 10255 

821.02 

257 

668 

2155 

1354 

881.73 

256 

552 

2X78 

3150 

104753 

351 

451 

2756 

1683 

1D8450 

X13 

452 

2454 

3X88 

104353 

358 

0.78 

1X67 

1X03 

95454 

2J57 


»!W 

646 

91X67 

2.32 

750 

1655 

958 

99X82 

X43 

4.11 

27.78 

1614 

94957 

4.42 

250 

ao.oot 

551 

102450 



217956 

-1.1 220X98 221458 219665 206680 

458 

850 

1643 

680 

81615 

62 BactridtytlT} 

203458 

-15 207450 210157 207557 188750 

4.07 

12.17 

10.10 

1X85 

821.74 


190655 

*63 189753 188154 1871.10 196450 

628 

* 

* 

050 

B4X41 

06 TatottrtttiunittttonaM 

194621 

-1.0 196751 197650 1957.42 1897.10 

455 

621 

1665 

059 

81027 

68 waietiia 

193608 

-1.0 186641 166613 167058 172X90 

666 

1653 

757 

648 

787.18 

69 M0M-FINANCULS(B31) 

189670 

-04 170613 170753 169660 162618 

XfiB 

696 

2058 

1649 

117951 

70 RNANC1ALSU03) 

218649 

-05 217359 216X58 212X98 189750 

4.14 

7.54 

1X68 

3957 

84648 

71 BaniolllS 

271559 

-02 272674 270606 2625.12 231670 

357 

7.43 

16.98 

5688 

80X95 


132045 

132043 130679 129352 1289.40 

454 

1051 

1050 2754 

88X28 

74 Uft AseiianceCQ 

2380.40 

-63 238651 237757 237X21 250X80 

622 

7.88 

1611 

6658 

90X66 

75 Merchant BantoW 

293X0) 

405 292642 288612 288631 242450 

355 

1059 

1151 

2X28 

887.78 

77 om» nwcupiq 

187958 

-05 189453 188758 189152 141950 

352 

664 

1611 

1956 

88752 

78 Property m 

160058 

-15 1622.19 162643 162031 121150 

351 

357 

3X43 

621 

897.18 


80 MVEBTMEMT TRUSTSf122j 

89 FT-SE-A ALL-SHARE{8S6) 


281078 

1568.43 


-07 283026 282008 ZB1X0B 2242,00 
-04 157X45 1572.46 166829 138422 


2.16 122 
3.71 008 


6522 1924 935.72 
1088 17.11 121121 


■ Hourly movements 



Open 

950 

1050 

1150 

1X00 

1350 

1450 

1600 

1610 

Mghfttay LowUsy 

FT-SE 100 

FT-SE Mid 250 
FT-SE-A 350 

3097.1 

3782.2 
157S.S 

30875 

37515 

15767 

30660 

3747.8 

1589.7 

30664 

37468 

16766 

wsa 

37425 

1568.1 

30860 

37395 

15665 

30645 

37364 

15664 

308X6 

37367 

15675 

3099.1 

37375 

15735 

30967 

37822 

16755 

3080.7 

373X4 

15665 


Time a FT-SE IDO Htf> 4.12em LOW 329pm 


■ FT-SE Actuaries 350 Industry baskets 



Open 

950 

1050 

1150 

1250 

1350 

1450 

1600 

1610 

Clone 

PreeloMi Change 

Bldg & Cnstrcn * 

12595 

12675 

12S67 

126X3 

12467 

12495 

12495 

1241.7 

12415 

12415 

12625 

-215 

Ptiarmeceutkds 

27435 

27315 

27266 

27305 

27363 

27315 

27305 

2727.4 

275X8 

27466 

27405 

♦63 

Water 

16405 

163X5 

16275 

16215 

16185 

16175 

16195 

16161 

16261 

7631.7 

16461 

-175 

Banks 

2729.6 

27266 

27185 

27267 

27295 

2730.1 

27361 

Z730.B 

27461 

27461 

275X9 

-55 


i on ttw FT-3E I 


1 SET SHL Th* FT-3E f 


.Usts of cemduna era eMKHedom The PtancUTUna 

t Santa, which coma rang* sfctocmlc and peperteaed prataas 


The n -xxr res bosn 


ThSnra^Ttato Untied, Bate to < 
O Tin Hmdonol Sex* Eubmoe of eh* tinted I 




. Hie FT-SE 100. Bt# FT-SE MU 280, FT-SE Actuate 3BD ns me FT-SE ACSteW tahaay 
Mi end RapuOlc a federal nd me FT-SE Actuates AS-Ona Mb B 
a ruiaire nd dw FeaAy of fledretae imdw a stodsd ate el vmnd idea, 
erf Intend Linked 1H4. 0 "Ih* Hnendd T 


I Tkiue UmlW 1004. JU Vts maned. 

e Exempt aid The HneneM mw UmRoeLTIwFT-96 Acbmlas Stem 
in snosn. t Vteues are noaaaro. 


■ BAaJor Stocks Yesterday 

VOL Ctodng Day’s 

oeg» prioe chenps 

AaOAOwpt^. 
nbtey Nadonitt 
AtoeitHahtr 
MeeHsonst 
mpM"ntetr 
fitgoa 

Araac^*SrLF<»cWt 
Aaooo. Brtt Ports 
BAAf 
SAT kids, t 
BET 
acc 

BPBMa. 

BTt 
BT C 


2500 

% 

-a 

Moo 

67 


2500 

S63 

♦n 


44ft 

-« 


364 

-e 


248 



302 

-i 


964 

-19 


270 

•ft 

■ 1 

963 

-ft 


Bonk of Scodwiist’ 

Beast 

BkjsCkriot 


Boost 
D o— lert 
Bnt Arrapacat 


British Oast 
BriBstl Land 

BriM StiMif 
Bund 

Bumah Casoeit 
ami 

Catifi 4 Wket 


Carttor Conme.t 

uarm umonj 

Cootaoti 

Coueaddst 

S »ftet 

[too 
C a s tom Boot 
East Mc£ard BacL 
EngCMnel 


•Emtauinal 
FtO 


Foreign & Cat LT. 
Farter 

Gan. Aaddantt 
Qanarsl BoetT 

GSyrowad 

Gmadsf 
Grand Motf 


3.40Q 43Bb 
2^00 128 
orem 4S0 
425 688 

12200 4Wb 
790 329 

X500 364b 
4400 248 

2200 389 

1200 188 
2200 523 

1.100 300 

d300 30O 1 2 

197 400 

1200 663 

670 461 

883 473b 

2.100 408 
*000 288 

300 301 

4200 14»b 

366 178 

347 883 

378 66 

2.800 444 

1200 480 

204 337 

1.500 333 

2SO 908 
4200 226 

804 674 

1.100 273 

1200 333 

60 *53 

288 807 

837 205 


GXH 

( te i mt 

HSBC (TSpahrft 


I Ml 

ot 

JSSltataioy 

see: 


Land Sseurktaef 
Lspons 

LsgM 4 asnerad 

^=3 

Londwi Beet 

Lucas 

MEPCt 

un 


Maries 8 SpsnoarT 
MkasndsBsat 
Mdfrison (Vtav) 
NFCt 


a 


1.100 


-10 


■ ot 


-16 


'^^olmant 


■■if 

IMLt 


nttii RNear.t 
LHvdro-Sea. 


i m Treat , 

ITtMpUTf 


1200 m 2 

862 S05b -4b 

S00 480 -12 

4.100 739 *T 

676 STB -14 

(2 Eats IE® 261 S 

h(WJt) A 829 618 

h 8 Nepl iawf 3200 147b 

I B aee n amt 1600 397 +3 

1 D as chsa i Uts.| 1.688 883 t? 

hskata. . 897 *00 -4 

1,400 548b -17b 

308 — 

630 
190 
142 
1200 
136 


DMlBSCLt 
hWmaBacL 
nwwwnr 
h Wart. Bsc. 
ham WM* 
dteaCharid-t 


-11 

-2 


817 
481 

EG8 _ 

489 -2 

232 -0 

213 -i 

339 43 

1208 242 -4 

1200 . 391 -7 

1200 2i3 -1 

2,700 183 -2b 

1200 439 *1 

2200 164 -6 

4200 225b 43 

838 4S7 -1 

577 1149 443 

1,400 237 -ft 

1.100 too -a 

727 409 *3 

1.100 1074 

S90 349 s 

579 639 *3 

2200 537b -7b 

883 729 *3 

813 577 46 

381 BBS .10 

170 693 -41 

178 561 +3 

1200 380 -a 

BOB 234 -2 

inn in -a 

394 840 42 

176 638b -17b 

97 472 -8 

1200 702 -a 

on trwSng vokrnn far a grisetinn el major 
aadsrtt enough tea SEnOa inwm 
« ink 4.30pm. Tlaefai of one irteonev 
m ranMd down, t mde sfaa an FT-SE 


Utetcet 

opt 

act 

JwSSctaw 

inmer 

)V House 

da 

sart 

dBbcteet 

ton*T . 
-BtBGrf 

WO| 

nWner 


had underperformed the mar- 
ket by almost H per cent since 
the turn of the year, as part of 
a general unde rp erformance by 
UK telecoms. BT shares have 
underperformed by some 15 
per cent sinna the year-end. 

Adding to C&Ws woes have 
been the marked weakness of 
the Hang Kong dollar, which Is 
linked to the US currency, and 
the steep decline in the Hong 
Kong stock market 

“C&W were due a bounce 
and the press reports have 
given the market an excuse to 
do it,” said one trader. The 
stock closed 8 up at 444p. BT 
fell‘714 to 364 Vip and the partly- 
paid 8K to 245%p. Vodafone, 
unsettled by press comment, 
slipped 7% to 537%p. 

Drinks active 

With the results season 
about to get under way, the 
drinks sector attracted plenty 
of speculative buying but little 
overall volume. NatWest Secu- 
rities attempted to pre-empt 
proceedings, reiterating its pos- 
itive stance on AIlted-Lyons, 
ahead 11 at 583p, and Scot- 
tish & Newcastle, up 9 at 530p. 

Another NatWest favourite. 
Grand Metropolitan, was once 
again the subject of specula- 
tion over the fate of Its Inntre- 
preneur pub subsidiary, run as 
a joint venture with Courage. 
Suggestions that GrandMet 
will use its results on Thurs- 
day to announce that Inntre- 
preneur may be broken up, or 
even floated, were not believed 
by all analysts. GrandMet 
jumped 16 to 483p. 

Guinness, subject to persis- 


NEW HIGHS AND 
LOWS FOR 1994 

NEWMGXSfSU- 

BHEWEMES (1| Hoti W. BUM MAILS 4 
MCHTS (1) Jotmmon. M81MBUTORS (1) 
S8P.ELECTTWC 8 ELECT EQUP |3) Data. 
Etfothonn. Prion. ENQINEBIMO M Conan |AL 
Unmedi Ranaomoe, Do SHp Pit. ENd, 
VEHICLES HI Own Mbor. EXTRACTIVE IMD8 
(1) Cuban Omp, FOOOKANUFIQ kteaiit 
Pbrcoo's. M8UHANCC (1) LEISURE ft HOTELS 
N C l wyrt H . OH. EXPLORATION ft PROO (1| 
Oft, MTEQRATB) (3) OTHER FUUMCML CD 
tetaa. PRraa. i'aiui s packo r 
KtoarioM. nreMy Robor. Wynao ha m. 

PR OFfcH i r (1) ConfH. RETAILERS, OEMBML 
<Q aigntt. Do BNp Pit SUPPORT 8ERV8 R 
MMT CornputinQ. Poos (MJ. TEXTftES ft 
APPARS. H) AtaomriB WOrinnw. SOUTH 
AFTECAHS 03 
NEW LOWS CZB4L 

GILTS |R) OTHER FIXED MTEREST (11) 
BANKS H BUBJXNO ft CNSTRM (7) Atorakte 
Omta R. Biyant CoumiyiMi ftopa, 

Porakimon. Wortfawy, VAm Bcxtam. BUM 
kMTLS A MCHTS n An^tan. BontaL Caradoa 
Do rwp PiL, Hepwonh, Hoiciaa, BMC, Racaand. 
ftjgby. OBTTH8UTORS (1) Doncnport Vsmon. 
OlVERSmED U40LS (B) ELECTTBCTTY (t^ 
ENOSBBNO n HM. Km»«8Hpc. Prf. 
Vntw Enargy. ENO, VEHICLES (I ) bigharn, 
EXTRACTIVE INDS (I) Manama, FOOD 
MftHUF P> Ctem— i Pteft NaoMft HEALTH 
CARE (S) kiWfOWO. Sahm, HOUS&IOLD 
ROODS 93 Atapnang RmRwo. SNrtnlgw. 
INSURANCE (13| INVESTMENT TRUSTS (401 
EA7ESTMENT COUPAMES OR LBSURE ft 
HOTBS r«l Fortft LffE ASSURANCE (3 
IBM M EMAP, Ftartsch, Hsi*von KRMft 
Minor, MERCHANT BANKS (Q Oft 
EXPLORATION ft PROO P) Aminas. Gopta 
n mourere. OTHBI 1SIAHC1AL |B> 
PHARMACEUTICALS fl} Plotoua koL. 
PROPERTY (14) RETAILBB, FOOD (4) Brtfta 
Braft, Oaky Fmv S hcprt o , Tosco Css. 9pc. Bd 
2005. RETAEXRS, 0B48IAL A Aim. 

OiueK Gouts. 08. SollMbys A. Wysstes 
GanMn CmM, SUPPORT SBTVS (Q HsnttM. 
VktuNiy, TBJB0 0MM W EC ATI0M8 Q Bntirii 
TsMeom, CN Orasl NorBo, Security Services. 
TEXTILES ft APFWRB. (3 Stem. Comport HL 
TRANSPORT (B| WATER (HQ AMBSCANB 93 
CANADIANS 93- 

tent activity on inter-dealer 
broking screens, was in focus 
with a big order in the options 
market The stock edged up 2Yt 
to 484p. 

Market gossip circulated 
around Wembley, the indebted 


stadium group, with talk of a 
predator waiting in the wings. 
Speculation that the company 
would be willing to sell its 
Wembley stadium showpiece 
was denied by the company. 
The shares added l‘/i to 12p. 
Rank Organisation was one 
name linked to Wembley. The 
shares slid 9 to 4Q8p with 
Hoare Govett said to be mak- 
ing negative noises. 

There was disappointment 
over the share reorganisation 
at Associated British Foods, 
where some in the market had 
hoped for either a share buy 
back or a big acquisition to put 
the company's large cash pile 
to work. Instead, the company 
is offering a special dividend of 
10p to shareholders. The shares 
retreated 15 to 584p. 

Pharmaceuticals group 
Glaxo was easier in early trade 
on speculation in the Sunday 
press that it was poised to take 
a stake in or buy McKesson, a 
US drugs wholesaler. The 
shares rallied later to close a 
penny lighter at 562p. Both 
companies refused to comment 
on the rumours which have 
been fuelled by the latest deal 
between SmithirUiiR Beecham 
and DPS of the US. Smith- 
Kline, which filed a suit 
against a US group, saying it 
would violate trademark laws 
with a launch planned fix 1 next 
week of a form of Tagamet, the 
ulcer drug, added 3 at 397p. 

Healthcare company Smith 
& Nephew held firm at 147‘/,p 
after announcing a US joint 
venture deaL 

British Gas rallied to end the 
session 1% firmer at 285p after 
the joint report on gas pricing 


prepared by the Department of 
Trade and Industry was pub- 
lished yesterday. 

Oil shares made strong prog- 
ress buoyed by recent gains in 
crude oil prices and ahead of 
expected good results from 
Royal Dutch/Shell tomorrow. 
BP touched a record 412p 
before closing 6V) up at 409Kp, 
Shell added 7 at 739p and 
Enterprise 13 to 444p. 

Courtaulds fell 16 to 533p os 
one leading securities house 
issued a sell note. 

A broker's recommendation 
boosted Avon Rubber ahead of 
tomorrow's interim figures. 
The shares put on 8 to 637p, 
with Panmure Gordon urging 
investors to buy the stock. 

Bus company Go-Ahead 
made an impressive market 
debut The shares were issued 
at I20p, opened at 126p and 
closed at 125p. 

Weekend press reports sug- 
gesting Channel tunnel opera- 
tor Eurotunnel is planning to 
build anothe r tunnel through 
which travellers will be able to 
drive cars hit the shares and 
they tumbled 28 to 422p. 

Coats Viyella saw heavy 
turnover of 4.3m shares in the 
run up to an auction of around 
£llm of scrip dividend shares 
by BZW. The shares fell a 
penny to 228p. 

USM-quoted Phone link, the 
computing services company, 
fell 46 to 384p on profit taking. 

MARKET REPORTERS: 

Steve Thompson, 

Christopher Price, 

Pater John, Joel Kfoazo. 

■ Other statistics. Page 23 


LONDON EQUITIES 


LIFFE EQUITY OPTIONS 




— 

cals 

— 


Puts 

— 

OpHoa 


Jri 

Oct 

Jm 

J \i 

on 

Jan 


550 

- 

- 

67 

- 

- 

30 

rs« 1 

GOO 

— 

— 

32ft 

- 

— 

57 

Aigyl 

240 

17 

22 

2BH 

14 

16 

22ft 

ra«) 

260 

7H 

12 

17ft 

27 

30 

34ft 

A30A 

» 

an 

10 

11 

2 

3ft 

4ft 

rss) 

60 

3 

8 

8M 

7 

101* 

10ft 

MAtwys 

390 

28H 

40 

4614 

13ft 

21ft 

27 

r«6) 

420 

13H 

25 

31 

31 

371* 

42ft 

MBda* 

390 

204 

33ft 

40ft 

19ft 

29 

30 

r»e) 

420 

lit* 

21 

29 

35ft 

471* 

53 

Boos 

550 

24 

351* 

441* 

24ft 

32 

98ft 

rsw ) 

600 

BV4 

IBft 

2414 

80 

G5 

70 

BP 

390 

33ft 

42 

48» 

10ft 

16 

20ft 

1*411 ) 

420 

17 

28ft 

3314 

24 

31 

35)4 

BrtMSM 

140 

M 

29ft 

23ft 

6 

9M 

12 

P48 ) 

ISO 

8 

11 

14ft 

16ft 

20. 

22ft 

Ban 

550 

39 

45 

SI 

24 

31 

44 

rsaj 

600 

lit* 

23ft 

9 

57 

63 

75ft 

BrfMftHta 

425 

33ft 

_ 

_ 

15ft 

_ 

_ 

T443 1 

450 

20ft 

— 

- 

29 

- 

- 

Qutautda 

500 

41ft 

82ft 

60 

14 

23ft 

28 

rs3i > 

550 

14 

27ft 

3514 

42 

50 

56 

Commutes 

550 

42 

48 

86 

12 

21» 

25ft 

(*572 ) 

600 

15 

23ft 

3114 

371* 

48ft 

S3 

Id 

800 

59 

71ft 

85 

20)4 

35ft 

45ft 

rxn i 

850 

30 

48ft 

a 

44 

61ft 

70 

KtegMnr 

650 

46 

57 

n 

16ft 

a 

33 

net ) 

600 

21 

32ft 

45 

43ft 

B2J4 

59 

Land Star 

BOO 

S3 

57 i 

61ft 

Bft 

15 : 

aw 

F848 ) 

650 

I7t*: 

27ft 

34ft 

33 

39 , 

44ft 

Maris ft S 

420 

15ft 

24 ' 

38ft 

19 

23 

27 

T420 ) 

460 

4 

191* 

15ft 

50 

51 . 

531* 

wnM 

<20 

44ft 

61 

68 

Bft 

17ft 

19 

r45i ) 

460 

21 

29 : 

37ft 

26ft 

35 

38 

Sakstuy 

360 

33 

42 

49 

lift 

19 : 

12ft 

(*388 ) 

390 

14: 

zsft : 

33ft 

25 

31 

37 

&>c9 Trans. 

700 

58ft 1 

17ft 

75 

8M 

19»: 

24ft 

rmi 

750 

2B 

38 

47 

26 

41 * 

47ft 

Stsatuuaa 

200 

am: 

si*: 

29ft 

5H 

9 

12ft 

r212 ) 

220 

8ft 

is 

19 

16ft 

19ft 

23 

UteSBer 

97 

tOft 

_ 

_ 

7 

_ 

_ 

noo) 

106 

• 

- 

- 

12ft 

— 

- 

Uola*ar 

1050 

561 

Mftl 

96ft' 

21ft 

31 

39 

nore 

noo 

29 1 

53ft 

67, 

47ft 

SB 1 

53ft 

Zesca 

700 

37 1 

nt*i 

lift 

26 : 

37ft 4Bft 

C702 1 

750 

19 i 

ten: 

Bft 

65 1 

59ft 

75 

We 


tor. 

ft— 

8o« , 

to 

AOfl 

No* 

( tart Met 

480 

23 

38 

49 

i 

14ft 

22 

r«i i 

500 

1 1 

171* 

29 

22 

38 

43 

Ladnta 

1B0 

71* 

18 

25 

1ft 

7ft 

15 

nas) 

200 

1 

8 1 

151* 

151*' 

IBft 

Z7 

IWfitactea 

830 

33 

36 

46 

1ft ' 

10ft 

IB 

r3M) 

360 

IH 

19 

a ' 

12ft 

22 

30 

Option 


Jm 

to 

PH 

Jn 

to 

OK 

naans 

140 

12 

21 

25 

5 ' 

lift 161* 

n4€> 

160 

4 lift 

16 

17ft 

24 26ft 

Option 


**> ‘ 

teg i 

Mm 1 

to 

to i 

MW 

Brt Aero 

480 

17 

52 86ft 

3 

32 

45 

1-473 ) 

500 

IH 

32 48ft 

30 52ft 

67 

BAT MS 

4 2D : 

Oft 

38 

48 

1 ' 

13ft 

22 

T439) 

460 

1ft 17H 

28 

24 33M 44ft 

BIB 

390 

5ft 

22 301* 

4 

17 24ft 

ran ) 

420 

1 

9 17ft 

31 

9 42ft 

01 Tacos 

360 

8ft 21ft 

27 

2 17ft 23ft 

(T84) 

390 

1 

B 14ft 27ft 38ft 

43 

CatnySte 

453 

39 

- 

- 

1 

- 

- 

P«0 ) 

493 

3 

- 

- 

6 

- 

- 

tednBec 

950 2SH4SH53U 

1 

26 34 ft 

rs7ij 

BOO 

1 19ft 3214 31ft GBft 

0< 

Gtemsn 

460 zm 

959ft 

1 1 

12ft IBft 

r«<) 

500 

1 

17 

29 21ft 

32 39ft 

GS 

300 

5ft 15ft 21 ft 

2 15ft 19ft 

P303) 

330 

1 

4ft 

9ft 28ft 

9 40ft 




_ 

Calls 

_ 

— 

Pds 

— 

Option 


to 

to 

■M 

to 

to 

Nov 

Hanson 

260 

5ft 

15 

19ft 

in 

10ft 

15ft 

T264 | 

280 

I 

B 

11 

17ft 

23ft 

27H 

I CTCTTM1 

134 

Tflft 

25 

27 

1 

a 

ah 

H49) 

154 

3 

13ft 

16ft 

7ft 

14ft 

IB 

Lucas kids 

200 

5 

17 

23 

2 

lift 

18 

C203 ) 

220 

1 

8 

13ft 

19 

24 

30ft 

P& 0 

660 

4SM 

67 

79 

1 

151* 

30V* 

eras) 

700 

4ft 

38 

Sift 

1214 

361* 

5614 

P®fag*n 

180 

14ft 

20 

29 

1 

7 

11 

n«» 

200 

1ft 

10ft 

16V* 

Bft 

17 

21ft 

Prudaneal 

300 

4ft 

20ft 

8*ft 

3 

13ft 

19 

raw j 

39 

1 

7ft 

12 

31 

33ft 

38K 

mz 

BOO 

44 

73ft 

89 

1 

20ft 

X 

(-843 1 

850 

5 

44 

m* 

12ft 

42 

50ft 

Rfldard 

500 

17 

38ft 

Sift 

T ft 

19 

30 

rsia> 

550 

1 

16 

28 

40 

471* 

59ft 

Royal tecs 

260 

71* 

25 

32ft 

2 

13ft 

19 

("285 ) 

280 

11* 

18ft 

23ft 

17 

2S 

30ft 

Team 

220 

6 

181* 

26 

IH 

10ft 

IS 

F2251 

240 

1 

8 

18 

16% 

22 

27 

Vodtera 

SCO 

401* 

67 

70 

1 

14% 

24 

rS38 ) 

so 

214 

ZB 

45 

14ft 

37ft 

48 

wu*tb 

354 

4 

20 ft 

a 

4 

16 

23 

rass > 

384 

1 

8ft 

18 

31ft 

3SH 

41 

Option 


JM 

Oct 

Jaa 

Jal 

Oct 

Jan 

BAA 

950 

55 

78ft 

89ft 

23 

34ft 

43 

(*883 } 

1000 

28H 

48 

83 

49ft 

30ft 

07 

T1BBMW 

420 

39ft 

43ft 

45 

10 

17 

24 

C4S4 ) 

460 

131* 

22ft 

34ft 

32ft 

a 

«S1* 

Option 


Jm 

to 

DSC 

Jun 

Sap 

Dec 

Abbey MU 

390 

29ft 

40 

47 

B 

14 

17 

(*413) 

420 

ns* 

» 

31 

ISM 

SB 

31 

Amstjad 

30 

5 

7 

8 

1ft 

3 

4 

(*33 } 

35 

21* 

4ft 

8V* 

Sft 

4ft 

Bft 

BvcUya 

500 

Mft 

48ft 

a 

7ft 

20ft 

29ft 

rS23) 

580 

9 

24 

35ft 

34 

471* 

56ft 

Bbs ads 

300 

13 

28 

31 

11 

19ft 

25 

(*300 ) 

330 

4 

!3ft 

Bft 

33 

aa 

43ft 

Brffioh Gas 

2B0 

10 

17ft 

Oft 

12 

17 

24 

(*285 ) 

300 

4 

91* 

2ft 

Z7 

30 

37 

Diracs 

200 

UK 

Oft 

34 

7 

17ft 

91* 

(-3H ) 

220 

3ft 

lift 

16 

20 

29H 

32ft 

MBadbao 

ISO 

IBft 

a 

SB 

2ft 

8 

Bft 

(-175 > 

160 

8 

14 

7ft 

11 

15 

5% 

Lonrtn 

130 

U 

30 24ft 

4 

10ft 

14 

(140 1 

140 

754 

TO 

raft 

Bft 

15ft 

19 

Nail P0»r 

390 

23 

32 

a 

12ft 

22 26ft 

("405 1 

420 

7 

IB 25ft 

31ft 

38 431* 

Scot Powtj 

330 

26ft 

35ft 

40 

5 

1714 

21 

raw j 

380 

OH 

» 25ft 

8ft 

33 35ft 

Seers 

120 

■ 

12 

4H 

3ft 

Bft 

B 

H26) 

ISO 

a 

7 

Bft 

9ft 

2ft 14ft 

Forte 

220 

12 

22 23V* 

7ft 

14 17ft 

PZ24 1 

240 

4 

13 14ft 

21 

a 29ft 

Taraac 

155 

12 

_ 

_ 

5h 

ra 

ra 

(-163) 

174 

4 

- 

- 

7ft 

- 

- 

Thom 31 

noo 

58ft 91ft 

Ill 

15 

Bft 

61 

ni«) 

1150 

41 62ft 

84 

6ft 

73 86ft 

T50 

200 

18 25ft 

S3 

3% 

Sft 

13 

<*213 J 

220 

6ft 

14ft 18ft 

13 

20ft 

24 

Tartans 

220 

21 28ft 

a 

3ft 

9 12% 

P256 1 

240 

7ft 

15 

T9 

11 

19 22ft 

tedcoaB 

50 

42 

84 73ft 

2ft 

30 

38 

CS77 ) 

600 

Sft 381* 90ft 

a 

57 64ft 

Opikn 


Jd 

Oet 

tel 

JU 

Od 

Jan 

ton 

SO 

41 56ft 

64 

24 4514 

52 

rSB3 1 

GW 

19 331* 

43 531* 751* 81ft 

OC75P9B 

850 78ft 

96 

11 

24 41ft 49H 

r©5 ) 

TOO 

« 89ft 87ft 44ft 

54 

75 

Beutere 

4625 

33 42ft 

- 

15 2SM 

_ 

[*47H3 

4760 29ft 

a 

- Z1H 31ft 

_ 

Option 

May teg 

few Iky 

teg 

•te 

tots- tores 

160 14H 22ft 27ft 

1 

7ft 

12 

H92) 

200 

1 lift 16ft 

9ft 

16 

23 


a LMflriyte Mcurity pin. Hwiibni Jum n 
bated on CM4MB oner prtoaa. 

M« 9. ToU contacts; 34237 Crfte 15287 Pute 
19,070 


FT GOLD MINES INDEX 


K 2 > « BhB Miy May rear Bond* 52 mak 

8 on day 3 * apo paid % BtfB Low 


ScM Ntete Max (3$ 1S5&2D +32 178828 1829119 1541 JO 224 238720 152228 


2525.79 +2-3 247022 2559.82 200223 

21 71 SB -02 217437 221883 187096 

161125 +5.7 1527.10 156426 1381.48 


«C9{iq 

Auirium w 

North Amoks (11} 

ComtgN. Ttio Ftaancte Timas Limnad iBBL 
Hoie In ta tma l a <w» nmfler of caipute BarfaUS 
Pibdteaaaor Sold l*rtB IndaK Ma» 9 : rw i dasra dianga: +108 po«^ Y4#r ago: 1633 1 Itefte 
LteaaC prteaa wan inaMk lor 04a etSkn. 


4J8 3440.80 186150 

218 301X89 1669J9 

060 203945 196340 

1000 .W sin ast 


RISES AND FALLS YESTERDAY 





Rteai 

Fate 

Sams 







Other Fbced Interest 



0 

14 

1 

Msrarts ms action — . — 



95 

38 

68 

General Manufacturers 




68 

228 

373 

Consumer Goods 




35 

47 

110 



















Investment Trusts 



5 

222 

245 




30 

68 

32 




Totals 



340 

1,017 

1331 


Dtfa bated an 8n» compete* Mad on IM London 9ara Samoa. 


TRADITIONAL OPTIONS 

First Oaaikigs May 3 Last Dadaradons Aug 11 

Last Daalngs May 20 Fix settiement Aug 22 

Cate: Bolton. Bn Dianay, MAID, Ransoman, Signal, Yariuhka Food. Puts: Euro 
Dtawy, JF PeeUe WL 


LONDON RECENT ISSUES: EQUITIES 


Issue Amt 
price paid 

P UP 

MkL 

cap 

(Ent.1 

1994 

PBgh Low Stock 

Ctoee 

price 

P 

*/- 

Net 

<9v. 

Dh. 

cow, 

Gra 

_»w_ 

P/E 

nd 

too 

F.P. 

40-4 

102 

9B Abbust Mgh Inc 

101 


. 

_ 

_ 

_ 

- 

FJ>. 

1.34 

10 

9 AbtiUBt Scot Wits 

10 


_ 

_ 

_ 

_ 

- 

FP. 123X8 C14% ewj Ashanti Gold 

ei4Aa 

*h 

te 

_ 

_ 

_ 

100 

FP. 

AIM 

115 

110 DBS Data & Asa 

115 

42 

LN2.8 

1.1 

xo 

27.4 

- 

FP. 

ioa 

30 

2812 Edlnbgh. Inca Wts 

27 


- 

_ 



- 

FP 

20.5 

42 

41 F & C Grltl Writs 

41 


. 

_ 

_ 


160 

FP. 

81.1 

171 

160 GRT Bus 

171 


RN3j9 

X3 

XB 

132 

120 

FP. 

41.7 

128 

125 Go-Ahead 

125 


MMX) 

1.6 

4.0 

1X0 

- 

F.P. 

1042 

483 

479 Qoves Gtobd So* 

479 


m 

_ 



185 

F.P. 

41.6 

196 

182 Hamtoya 

182 -3>2 

W4.7 

22 

X2 

17.5 

180 

FJ». 

4202 

191 

178 House of Fraaer 

183 

♦1 

LN2L0 

22 

X4 

1X5 

- 

F.P. 

- 

« 

95 mu Biotech 

95 


- 




- 

Fi>. 

- 

40 

30 Do. Warranto 

40 

*1 

re 


_ 

_ 

130 

F.P. 

8X3 

138 

122 Kefar 

122 

-6 WN04.7 

23 

xs 

14.1 

155 

FP. 

8X5 

164 

152 Nottingham 

157 

-2 

U5.52 

1JB 

4.4 

15A 

80 

FP. 

27.7 

87 

73 Oxford Mctotainr 

75 


_ 




200 

F.P. 

71.1 

241 

218 PSrtco 

241 


L&35 

22 

28 

208 

160 

FP. 

212 

181 

160 Pareona 

181 


LNXB4 

XB 

X7 

162 

- 

FJ>. 

X53 

60 

63 Sean Retirement 

5G 

-4 

- 

- 



120 

FP. 

2X5 

133 

131 St James Bch Hot 

131 


RNia 

1.7 

X6 

152 

198 

FP. 

1X6 

261 

198 Superscape VR 

235 

-3 

_ 

_ 



100 

FP. 

4X7 

33 

91 Templeton Lai Am 

92*2 

->2 

- 

_ 

_ 

_ 

- 

FP. 

188 

50 

42 Do Mis 

42 

-2 

. 

_ 

_ 

_ 

- 

FP. 

141.4 

104 

100 Tampferton Emg C 

101 

-1 

te 

_ 

_ 

_ 

100 

FP. 

012 

102 

99 Undanaknd Asia 

10Z 


- 

- 

- 

- 


RIGHTS OFFERS 


Issue 

price 

P 

Arraus 

paid 

up 

Latest 

Renun. 

rtrtn 

1994 

High Low Stock 

Closing 

price 

P 

■KIT- 

- 

w 

- 

3pm 

1pm Abmret Scodand 



390 

M 

17/6 

79pm 

28pm Aktom 


fO 

62 

Nl 

m 

4«pm 

l^pm Atari Fteher 

3pm 


8 

M 

1X6 

I'zpm 

'4Pm ABed Rado 

Tjpm 


65 

M 1 

- 

16pm 

5pm Dais Beetle 



500 

Id 

205 

63pm 

58pm Derwent VaOey 

58pm 


5 

Nl 

3115 

4,pm 

1 2pm Famun HWgs 

1 2pm 


133 

HB 

15ffi 

27 pm 

14pm Hunters Amitey 

14pm 


26 

M 

- 

4pm 

iVpm Pentoa 


Jj 

2 

M 

24/5 

5tpm 

4pm Tamario 



24 

ra 


11pm 

11pm Unit 

11pm 


330 


A/B 

■43pm 

25pm Wttans HUgs 

26pm 

-6 

FINANCIAL TIMES EQUITY INDICES 





May 9 

May 8 

May 5 May 4 May 3 Yr ago 

■High 

“LOW 


Onflnaiy Store 2477.2 2481.0 24815 24835 2484,1 2217.8 271 XB 2439 
Orel. tfv. yield 4.« 4J)1 4.01 4 m 3.99 4.18 -LOS 3-43 

Earn- yW- X tufl 5.48 5.47 5.47 549 5.42 a .30 ftfil 382 

P/E ratio not 1988 1980 1982 1988 19.79 19.88 3X43 19.48 

P/E ratio nS 2047 2049 20-61 2045 20.69 1838 3080 2037 

Ta > 1994. gani y Shea Mdax ten conpfc U oi v M* 771X0 24Ut; tom 49.4 SSAV40 
FT (Mkny 8tn» Max MM dm I/7/3G. 


OrtBnary 3ftara howly ct w ng M 

Open ftflO lOOO 11-00 1X00 13J0 14JX) ISjOO IftOO Htfi Low 
2473J 2486.9 248*9 24854 24«fl 24655 2466.7 24845 2473.0 2479.1 2482.5 


May8 Moy8 May 6 

SEAO baigakn 24.930 25.404 23592 

EquKy tumom (Onjt - 1241.1 148S.Q 

Equity tagainst - 28545 27*42 

Shares traded (mQr 570,8 5853 

t Exdudng teHteW bateau and man tomr. 


May 4 May 3 Yr ago 

22364 24332 29,340 

12245 1248.4 10833 

25,966 27.406 33JJI3 

434.7 307.3 504.7 





















































FINANCIAL TIMES TUESDAY MAY 10 1994 


29 


LONDON SHARE SERVICE 


Piper Em SB* □ 

na □ 


a* 

44 

04 1354 

102 

91 

79 

- 1005 

- 054 

•u 

387 

232 

SS 

170 

70* 

70 

153 

440 

111 

20 3104 
04 2503 

00 2105 
14 

- 750 
74 - 

3.1 543LS 
84 - 

31* 

- 401 

13 

a- — 

121 

01 1T77 

a 

_ _ 

112 

_ _ 

n 

05 - 

a 

- 37.1 

142 

34 1474 

47 


114 

07 

122 

- *H" 


OB 

106 

T02 - 

04 

4* 

- 1605 

13* 

290 

121 

34 3323 
112 

184 

-2607 

14*2 

88 

90 

- 880 

Co 

170 

«0 I 

103 

94 

-13124 
- 9 tU 



■nr 

1994 

Us 

YU 

Prta 
32 i 


% 

kM 

Mi 

CKtZm 

BO 

arc 

24 



* 2 * 

i* 

MB 


Mt 


■207 

224 

174 

1,839 

363 

42 

34 

M 

- — 

B 

48 

643 

15 

54 S 

- 

596 

519 

3.181 

24 

270 * 

- 

224 * 

19 B 

2636 

44 

ft 

- 

*n* 

a* 

142 

- 

ft 

-1 

ft 

92 

414 

01 

Win 


ZM 

in 

154 

54 

3 * 

p - , 

S 

3 * 

677 

- 

at 

, ,-n. 

MS 

IK 

as 

14 

148 * 


MB* 

142 * 

564 

43 

a* 


18 * 

11 * 

XJ 

- 

83 

-1 

119 

96 

367 

108 

ISBbI 

-1 

217 * 

IQ* 

2.122 

40 

E 



IM 

91 

5 l 34 

01 

esc* 

-23 

702 

530 

743 

18 

»* 

+* 

108 * 

78 * 

6562 

45 

4 


*«* 

3 * 

124 

— 

68 



SI 

34 

162 

_ 

ta 

-1 

130 

B 1 

1868 

34 

2 U 



221 

161 

824 

56 

147 



171 

132 

167 

33 

a 



a 

TO 

404 

IS 

124 

i 

Ml 

111 

662 

04 

178 



183 

173 

108 

25 

34 

. 

48 

34 

124 


47 *f 

_ 

47 * 

< 7 * 

4 M 0 

— 

TOC 


TM 

IM 

27.1 

14 

858 


a 

85 

1604 

11.0 

as 

— 

2 B 5 

205 

227 

21 

408 

-fl 1 

* 447 * 

377 

3474 

18 

184 

- 2 h 

a* 

144 

551.1 

6.7 

2 

— 

2 

1 * 

134 

- 

27 * 

— 

31 

18 * 

160 

46 

ion 


its 

790 

3074 

04 

219 


344 

166 

47 J 

40 

720 

, . . 

720 

420 

874 

34 

89 a 

- 1*1 

■82 

60 * 


1.4 

305 


■350 

296 * 

1824 

2 2 

7 

- 

14 

t>> 

& 7 B 

_ 

2 * 


2 * 

1 * 

017 

_ 

200 

_, L 

845 * 

280 

1450 

1.1 

1149 

+13 

1166 

679 

0894 

34 

2 



2 * 

1 * 

nj 

- 

10 


17 

10 

141 

_ 

93 


99 

75 

109 

27 

IS 



140 

120 

574 

34 

Ml 

-1 

140 

112 

mi 

14 

12 

4 Hj 

18 

6 * 

309 

- 

IS 



120 

110 

622 

60 





ME — M UBa 

CMW-MD ISH 
gp*IW>_jfN «7 


■=aa 


iv. 


a 

— «n 

S7 -2 363 

TH T77* 

1M -3 SB 

M 431 

4B* -* 614* 

271 IM 

MI tn 

-5 tO 
-io ns 


-e 964 
-12*536* 
150 


-a uo 
— no 


— 22 

IS* 

*-*2 33 

am +4 «i7 

m — aw 
xn *z m 

442 472 

6 K 4 760 

nd +3 131 
106 -2 170 

IIS -1 *» 

3 TO 

3 TB — 375 

ffi -T *1 


*ar ii 

** % 
-* 137* 
-2 *29512 
-3 473 

-I 191 

443 

-2 603 

77 

*5 1460 
-2 £» 

TM 

+0 1012 


M 

HU 

YU 


to* cues 

Ort 

P* 

340 22348 

27 

348 

811 

1,717 

OO 

162 

B6U 

10372 

42 

_ 

fl 

X43 


- 

1* 

&4S 

- 

- 


bust 

48 

- 

£4m} 

MBS 

48 

— 

£1^| 

0581 

1.4 


Cl CP* 

ms 

5.7 


1B34 

u 

08M 

30377 

1823 

2S 

42 

04 

IIS 

202 

651 2*487 

4.1 

224 

79 

680 

7.7 

- 

a 

7,483 

1J75 

22 

18 

* 

4 

Md 

W 


few CacEa 

ft* 

WE 

78 

728 

22 

332 

65 

KM 

24 

68 

41 

238 

25 

1CLB 

£14* 

Til 


42 

48 

4 

86 

_ 

— 

_ 

BB 

338 

1.7 

128 

102 

198 

68 

— 

m 1 14« 

26 

- 

118 

647 

U 

4* 

a 

448 

45 

114 

a 

677 

28 

71.1 

623 

5528 

28 

247 

£19 

E29 

15 

04 

13* 

258 

— 


533 

1358 

63 

- 

IS 

1(08 

42 

154 

7* 

201 

— 

- 

63 

192 

— 


60 

161 

51 

_ 

B4* 

779 

98 

— 

65 

322 

27 

87 

74613375 

05 

* 

45* 

168 

17 

126 

513 

1168 

05 

163 

SO 

600 

— 

- 

4 

IS 






668 

152 

— 

2581 

08 

— 

184 

3768 

27 

318 

395 

1678 

61 

* 

367 

2712 

48 

78 

27* 

1305 

_ 

ft 

105 

wi 

60 


915 

1958 

57 

311 

GO* 

4174 

26 

160 

£179 

264 

48 

— 

450 

&S3 

38 

_ | 

a 

s 

1175 

118 

12 

OS 

io5 ' 

165 

638 

48 

168 1 

14* 

tin 

IB 

ft 1 

243 

366 

- 

- 1 

246 


50 

116 

132 

Ip 

7.4 

- 1 

24 


25 

ft 

IS 

95 

903 

FI 

68 

38 

35 

106 
163 1 
169 1 

260 

581 

r* 

52 

34 

148 

148 

6* 

218 

— 

04 1 

S 

428 

_ 

— ■ 

1C 

129 

IS 

108 < 

51 

OB 

18 

ft 

978 

E3 

15 

256 

79 

450 

7.7 

4.1 

108 , 
153 

IS 

787 

48 

441 

278 

B7 

13 

14.7 

21* 

058 

48 

128 

310 

*7.7 

42 

ft 

a 

2X5 

69 

_ 1 

131 

4078 

25 

61S 

588 

825 

13 

158 . 

■0 

112 

59 

Ill 

306 

518 

18 

222 

343 

1562 

24 

15 

BB* 

1067 

4.7 

_ I 

119 

800 

44 

M2 ! 

40* 

203 

4 4S 
322 

23 

27 

at 

34 

U5 

58 

IIS 


I uu 
few Cadi 
SB TZJ 
34 (L6S 
577 265.1 
243 110.1 
26 ia 
72 9531 
213 3402 
B07 
031 
1,168 


■TO* 16* 112 

1766 1456 2502 2.1 

a* 5 us? - 

34 16 2.15 - 

17 10 507 

156 123 S24 33 

m 167 303 2LS 
126 119 mi X4 

•804* 555 803 20 

41 29 602 - 

31* 17 301 

•65 S3 202 
63 15 119 

*1* 1* 27.1 

*47 37 174 17 

460 370 204 30 

47 18 7JB 

tH 8S 032 
132 100 1454 27 

m 50 IM Oi 
43* 34* 364 12 

MS* £113* 264 04 

60 72 354 - 

113 103 274 

37 30 202 03 

78 66 025 17 

51 *1 WL9 <j 

■S36 440 2364 43 

325 22B 9BJ 22 

•260 198 6SB4 07 

2136 2114* 034 84 

K 72 545 122 
170* 137* 63.1 33 

TO* 16* M24 - 

•4 B 227.1 1.4 

*4» 347 1,126 31 

378 216 SU 24 

95 SOLB 64 
33* 674 \A 


BUSINESSES 


19M K 

YU 


% 

U* Cfefin Gts 
2* 253 

WE 

97 

75* 223 24 

ft 

105 

73 160 - 


165 

108 3664 51 

- 

11 

6* 157 - 

- 

208 

195 417 21 

St 

44 

30 640 65 

11.9 

T24 

M 387 


13 

5* 643 - 

264 

43 

20 108 

_ 

217 

IBB 561 48 

ft 

47* 

33* 408 - 


10* 

4* 154 

— 

a 

» 168 24 

- 

01 

65 S78 50 

200 

157 

IK 168 54 

- - 

*16 

13 788 08 

ft 

IS 

686 13IJ 27 

ft 

7U 

188 61 

3 09 

378 

114 

79 815 

A 23 

268 

487 

452 S 

I 1 1 

157 

94 

78 « 

8 1.7 

ft 

a 

33 6 

1 22 


no 

66 421 

1 48 

t 

200 

234 91 

0 11 

T7J 

13/ 

95 sn 

2 17 

161 

W 

190 143 

8 4 2 

203 

193 

14S 9J 

3 53 

- 

50 

43 U 

5 13 

- 

274 

314 X 

3 25 

261 

Jtt 

230 IS 

B 26 

MS 

110 

85 05 

1 50 

oS 

39 

28 7J 

I 25 

12* 

7 t. 

1 

- 

SI* 

11 IS 

3 

— 

H0 

77 3t 

8 11 

67 

120 

TO IS 

4 68 

- 

88 

75 Oi 

3 48 

158 

€6 

54 X 

t 

- 

23b 

IK S 

1 01 

228 

nw 

533 2K 

S - 

- 

72 

63 11 

3 - 

268 


t ClDf 

iRS 



» 1»4 

MU 

fld 

i X 

mar Capim 

Bri 

540 

5.182 

48 

t KB 

359 

WUI 

33 

140 

IB 

87* 

55 

B 500 

427* 10860 

34 

* 5* 

460 

9.742 

82 

3 457 

3U 

SI5J 

?t 

161 

127 

MBS 

12 

- 43 

365 

flfLfi 

25 

_ *595 

548 


41 

S 280 

125 

U3 

68 

t, £20*3 

n/i 

7,ia 

19 

- 190 

142 

1718 

42 

J 1994 

Md 

YU 

- btgli 

bn CjtSa 

( 4 - 1 . 

1 187 

137 

3228 

38 

5 740 

683 

B40.1 

- 

5H 

4 78 

611 

14 

4 42 

34 

11 J 

- 

1 MB 

BZ* 

t35J 

as 

i 102 

120 

1,196 

22 

IBS 

115 

SB 

3J 

. 29 

IBS 

SOS 

17 

IK 

152 

488 

44 

1 * 

1 

687 

- 

£11 

£7* 

241* 

- 

228 

m 

42S 

38 

TO 

a 

8.78 

76 

US 

101 

£18 

38 

III 

98 

6 U 

13 

5 238 

205 

106.1 

IS 

1 118 

93 

308 

2 * 

1 423 

361 

1862 

1.7 

3 IK 

128 

238 

_ 

268 

223 

tu 

1.1 

IS 

104 

41 J 

1.7 

173 

108 

ua 

- 

1C 

105 

H7 

1 1 

61 

41 

218 

05 

97 

B 1 

228 

- 

•83 

47 

5.70 

- 

zre 

236 

2428 

42 

IM 

78 

378 

- 

S3 

76 

933 

50 

194 

119 

242 

45 

199* 

175 

497 

IJ 

114 

01 

225 

OS 

82 

46 

481 

- 

3M 

2 C 

*227 

23 

ZB 

MS 

1808 

12 

as 

26 

118 

- 

TO 

1 » 

905 

28 

IS 

try, 

907 

_ 

£3*31 

EfXf 

6398 

08 

1035 

804 

1918 

35 

141 

99 

457 

28 

!XM 

2 CT 

32 3 

- 

35 

19 

187 

_ 

MB 

05 

790 

09 

0 

4 

491 

- 

1 314 

270 

1848 

17 

1 St 

44 

218 

10 

1 110 

63 

B02 

- 

163 

143 

292 

ID 

216 

IK 

117.7 

33 

264 

MO 

25S8 

31 

723 

618 

1458 

30 

£13 

tn a 

6S78 

10 

IIS 

178 

795 

145 

m 

62 

•S48* 

478 

7332 

19 

3/S 

283 

42 8 

1.4 : 

35 

31 

188 

44 

83 

64 

792 

42 

St 

62 

422 

37 

82* 

65 

493 

12 

ZB 

1B4 

122 

13 ; 

115 

108 

526 

92 

5* 

3* 

1.75 

- 

•vu 

60* 

678 

61 

1 426 

405 

34* 

0 * 

415 

355 

422 

48 

a 

27 

628 

1.7 

118 

73 

7*2 

15 : 

MB 

104 

71.7 

08 

65 

34 

103 

- 

131 

105 

268 

4.7 : 

279 

224* 

2208 

1.6 

201 

163 

511 

45 ■ 

368 

295 

162 

io : 

610 

507 

1282 

?1 ■ 

38Z 

254 

7382 

19 ' 

350 

310 

367 

36 ' 

17* 

B 

332 

- 

413 

310 

3768 

os : 

*307 . 

253* 

1720 

18 : 

139 

75 

90S 

13 

in 

IM 

778 

n : 

43 

r 

1*3 


254 

210 

502 

4.7 

43 

31 

G83 

43 : 

MO 

100 

298 


278 

203 

SI 

15 i 

381 

2B4 

890 


a 

22 

32* 

12 1 

3a 

ft 

79* 

28 1 

71 

a 

118 

Z.1 


1994 

I4U 

NSC 

few 

caotm 

913 

803 

3872 

TO 

r 

412 

228 

138 

468 

327 

239 

3588 

132 

9S 

303 

« 

ISO 

508 

tSIi 

S2* 

662 

148 

132 

1813 




ac 


MB 

— 

m 

IDS 

21 

88 1148 

74 



883 * 

S 3 


ni 

” 

“ 



811 * 


28 

" 



1 

654 

■SS 

ns* 

as* 

28 



DM* 


KB 1 

Efi* 

28 

- 

— 



440 

476 

28 

— 

- 

M 41 J 


£ 48 * 

sri 54 ft 

1.7 

— 

— 

448 


483 

4 * 

17 

— 

- 

IM* 


IS 

a 

“ 

” 

“ 

O'l 

niA 

218 

U 1 * 


£li 

168 * 

SS 

83 * 

02 


\ 

BBS* 

578 * 

-a* 

u 

tan 

8 H* 

873 * 

514 * 

(W* 


l 


sa 


I- .TO 

sS 

08 

- 

- 

m 

Eg 


901 * 

387 

JMS 

- 

- 

- 

HOTELS 







1984 

IM 

YU 

AE 

Pitot 


Mgh 

34 

few 

» 

°a 

ft* 


+4 ' 878 * 

«r 

6 Ub 

24 

160 

3 *ff 

s 

•sa 

153 * 

2517 

827 

178 

40 

114 

8.1 

178 


177 

163 

2010 

28 

ft 



11 

6 * 

280 

— 

— 



131 

Bb 

223 

37 

114 

387 


333 

287 

300 

41 

138 

TM 


663 

543 

60.1 

27 

70 

1 IM 


T 52 S 

1155 

388 

Z.I 

180 



n 

St 

921 

— 

7.6 

4 * 


7 * 

4 * 

167 

— 

— 

118 


149 

100 

7.16 

— 




7 * 

4 

402 

— 

— 



IM 

80 

478 

34 

21.1 

IM 


Mr 

248 

18.1 

48 

I/O 

172 

+B 

172 

114 

492 



8 M 


M 

TO 

MAI 

20 

111 


+5 

*374 

.m 

B 1 U 

28 



TO 

15 

2 S 

— 


MS 


H 8 

IS 

MAS 

88 

ft 



SB 

709 

TMB 

10 

22 * 


*7 

* 7 * 

348 

mo 

10 

— 



2 SS 

232 

334 

w 

115 



A 

2 * 

SO 

— 

— 



416 

306 

128 

10 

MO 

B 


1 * 

B 

187 

" 

“ 


i=a 


♦ or 
Price - 

3 "3 

2 T 5 

284* 

87 +1 

678 -* 

S *2 

24M *2 

3 

70 

a +i 
36 * - 2 * 

K 2 

it* -a* 


i* -* 

23 * . 

23 -* 
13 — 
4404 +13 
501* -34* 
84 -1 

230 — 

“IS E 

an -i* 

74 d +i 

a _ 

** -1 
i» — 

a 

47 

MBT +1* 

89 

IDS* -* 
« _ 
68 * ♦* 

3 

2 M 

UU 

A - 

7 ♦* 

M2 

350 -1 

26* +* 

iza 

151 -6 


22 

22* 

MO 

■s = 
21 — 
72* -* 

5 * — 
K — 


•7* 5* 848 

63 SO 174 
>1* 24* 794 

S3 35 285 

£74* £6314282 

67 80 UO 

760 556* 3608 
31 22 1774 

347 TOO T117 
3* 1* 224 

70 58 «4 

62 45 

*61 33 1454 

35 24 602 

IS* 6* 032 
M 17* 200 

a IS* 027 
61* 37* 302 

ii *5 » 

2* 1* 254 

27* 17 on 

44 23 207 

*17 10* 012 

« 366 2,104 

72D* 451 240 

88 S WL7 

do* £30 as 
a* 21 602 

8* 4* S02 

2* 1* OK 

684 429* 

74 54 902 

41 31 434 

B 36* 

*177 146* 1604 
W* 60* 

56 40 724 

*ta 119* 1(437 
73 53 4,18 

IK SB* 423 
0* 2 031 

60* 55 4594 

7* 4* U4 

a a Isa 

156 141 000 

0* 7 104 

a* w* 

9 I 134 
183 153 «U 

CO 326 B9J 

32* 21* ms 

IB III 324 
174 143 274 

4B 325 4214 
4* 4* 4.12 

**W £34d 0227 
B 43 143 

m 54 204 

a ie ou 

■29* 14* . 344 

167 T» 341 
28* 19* 408 

2 * 1 * 6.12 
a IB 747 
69* 64 202 

P, 4* 


— *» 14* 174 


a 

l — 

233 

20B 

MU 

- 

- 

is 

1 . 

in 

113 

BU 

— 

— 

£21i 

+4 

E30A 

£21* 

88U 

— 

— 

14/8 

-i 

157 

113 

101 

17 

— 

KS 

-1 

728 

549 

17,135 

50 

113 

1941 


IK 

154 

W7-E 

40 

6*5 

SS 



£10* 
ci wi 

2043 

4133 

40 

40 

t 

BE 



151 

S3 

87.7 

30 

116 

£35(5 

-4 

SU* 

£32* 

1009 

17 

— 

MS* 


■U7 

ia 

3990 

20 

ft 


*£ 

E72A 

£E2i 

Z0Z7 

00 

♦ 

2S 

-7 

*462* 

2a 

7X4 

— 


S 

__ 

SB 

49 

7.71 

5.4 

140 


-16* 

fiSKJ 

£381 B 

2014 

WI 

10 


AX 

389 

+3 

03 1 

443 

•P+C 

357* 

Iffti 

6048 

30 

161 

3C 

♦7 

407 

322 

4 055 

30 

140 

577* 

♦8 

704 

4K 

fit® 

46 

122 

70S 

-3 

no 

681 

6033 

19 

141 

PAPER A PACKAGING 



♦ or 

ISM 

M4 

YU 


Price 

— 

% 

tow Cap£m 

07 

FIE 

IB 



IK 

702 

11 

140 

303 

~ 

444 

385 

ms 

20 

214 

SOM 


3M 

Z37 

« 

8.7 

507 

17M 

, . . 

206 

16 

10 

ft 

43M 

- 

TO72 

414 

MM 

14 

J 

ts 

-1 

MB 

105 

8X4 

1.4 

145 

C1U 



*ffl4 

430 

2050 

30 

17.1 

uo* 

-t 

•219 

172 

1810 

84 

— 

274a 

-a 

287 

257 

750 

10 

170 

40IU 


CIS 

435 

T370 

11 

190 

225 


252 

210 

320 

40 

— 

125 


TIB 

120 

2X7 

40 

114 

MAH 

-2 -M2* 

137* 

013 

10 

216 

T7BU 

-2 

06 

1*5 

7*6.1 

Z 9 

210 

MM 


178 

129 

38.7 

— 

110 

620* 

A 

°Si 

Z19H 

XK* 

20 

ft 

273* 

+* 

267 

1710 

22 

1X4 

23 

35 

a* 

SM 

50 

87 

122 

. , 

16 

122 

480 

17 

166 

359 


438 

304 

320 

1.0 

380 

887 


1821 

86 

1,731 

17 

216 

107 


m 

BB 

807 

20 

144 

130*1 


137 

104 

387 

40 

ft 

13* 


15* 

12* 

Z70 

12 

ft 

<77* 


898* 

433 

447J 

10 


60 

-1 

Ml 

75 

280 

47 

I8J 

4T0 


430 

363 

1383 

33 

1U 

144 


16 

135 

T90 

U 

- 

S3 


Sit 

253 

7502 

30 

2X1 

ZB 


30 

IS 

UO 

— 

— 

ms 



•20 

175* 

520 

20 

300 

216 



23S 

1C 

nsi 

20 

ft 

378 

-2 

290 

273 

BO 

20 

2S0 

172 

+5 

118 

63 

15.1 

10 

4 

EI3U 

677 


at 

667? 

1,108 

mi 

30 


433d 


*438 

384 

4240 

20 

119 

SB 

-i 

TO 

45 

4M 

3.4 

135 

2J1U 


271 

223 

1780 

2.1 

210 

a 



a 

18 

183 

— 

— 

110 

— 

MB 

115 

61.1 

10 

170 

114 

-i 

141 

114 

370 

15 

— 

122 

-i 

129 

110 

384 

IT 

240 

215 


258 

214 

1020 

41 

180 

EX 



6SS 

513 

Arts 

30 

162 

IB 

-a 

IB 

157 

10X7 

20 

21.1 

ms 

1121* 

-1 412 

£10)2 

010* 

322 

8320 

& 

10 

26 

20 

J 

«H 

-11* 

681* 

484* 

07X1 

50 

114 

Z7* 


*30* 

16 

ZM 

— 

— 

3a 

^iT 

*35B 

300 

1050 

40 

1B0 

£33 

-i 

573 

KB 

BIO 

20 364 

sn 

♦1 

311 

299 

1508 

1.7 

7.4 

w 


110 

103 

2M 

26 

430 




aoti 

£32* 

441 2 

10 

ft 

+i 

33 

23 

805 

— 


asr 

~ 

■37* 

18* 

2J8 

— 

- 

2M 


284 

1C 

1830 

10 

220 

120 



733 

118 

470 

63 

— 

2C 



300 

2*4 

19X0 

11 

184 

63 

-« 

911 

409 

8011 

10 

287 

118 

♦2 

118 

88 

16.1 

10 

240 


♦ or 

1991 

100 

VH 


Rice 


Hg» 

bn Qnaa 

&-J 

WE 

mu 

♦1 

no 

m 

TU 

40 

190 


-* 

127 

a 

109* 

17* 

430 

406 

68 

“ 

lie 


*M4 

109 

920 

24 

190 

in 

“ 

OI 

106 

M.1 

63 

- 

33 

29 


97* 

Si 

14 

K* 

400 

403 

_ 





Price 

- 


ton CacCra 

at 

*4* 

-7* 

486 

362* 22039 

5-5 

444 

*8 

543 

424 

8.701 

27 

Oil 

*4 065* C2B3* 

06X1 

30 

zm* 

-1 tati 

£51* 

2010 

20 

1195 

-5 

1201 

11« 

4X0 

03 

853 

-8 

103B 

M3 

055.1 

X4 

713 

-12 

888 

713 

7010 

10 

537* 

-7* 

637 

496 

SASO 

10 

l APPAREL 





♦ «r 

1994 

Ml 

VU 

Rice 

- 

m 

lew Canto 

or* 

«5«d 



IM 

61 

722 

47 

IK 

♦S 

MB 

101 

IK 

4.7 

TBVrl 

42 

236 

192 

770 

30 

568 



817 

514 

1970 

26 

144 



169 

126 

400 

70 

248 

-1 

270 

226 

27X2 

40 

ESnJ 

41 

n 

56 

701 

70 

80s} 


62 

74 

602 

15 

IM 

__ 

22B 

ID 

TOO 

S4 

19* 


*14* 

10* 

408 


60 



a 

46 

505 

21 

43 

-1 

74 

41 

447 

- 

9* 

- - 

• 

5* 

1.16 

- 

343U 

-3 

385 

330 

1812 

10 

228U 

-1 

287 

Z 25* 

10K 

4.4 

6* 



B* 

4* 

4.16 

- 

6*4 

-1 

583 

451 

54X4 

13 

20 



-35 

11 

359 

- 

164 



MB 

134 

36X2 

58 

I7i 2 a 



122 

07* 

14X1 

1.5 

« 

_ 

52 

36* 

503 

18 

32 



36 

31 

XB 

- 

73 

+t 

a 

72 

153 

14 

276 

. 

308 

275 

409 

9.7 

710 



713 

680 

1X4 

20 

2B 

-1 

20 

24 

292 

- 

118 

-1 

128 

94 

130 

30 

87U 


73 

66 

212 

12 

a 

. 

113 

04 

M4 

*7 

ISO 

43 

178 

140 

448 

40 

94 

- 

•2 

48 

5X9 

- 

ts 

- 1 ! 

34 

26* 

3X4 

XI 

MD 


MS 

222 

390 

24 

wn 



*29 

24* 

170 

38 

72 



91 

68 

906 

41 

« 

*1 

a 

48 

2X6 

X? 

175 

__ _ 

211 

173 

1X9 

25 

88 


73 

a 

406 

10 

333 



3BB 

333 

BOD 

14 

32S* 



405 

315 

1618 

57 

443 


485 

3B 

13X3 

30 

310 



*340 

309 

BJ 

23 

74 


a 

74 

2X7 

60 

67 

_ . 

a 

S3 

939 

02 

3 



■ 

2 

101 

— 

61 



101 

78 

504 

40 

in 

r 

212 

125 

411 

10 

TO 



•a 

19* 

3X9 

50 

a 



43 

33* 

UO 

14 

14 



17 

14 

2 a 

— 

730 

-18 

266 

ID 

1X4 

20 

m 

+1 

123 

84 

3728 

16 

BOH 

-3 

75 

53 

111 

10 

96 


112 

BB* 

1804 

44 

a 

_ ri . 

a 

74 

132 

10 

TO 



a 

78 

181 

48 

a 



TO 

51 

233 


io 



IB 

162 

733 

11 

139B) 



no 

ia 

15X7 

28 

ID 

-2 

Mi 

138 

902 

ZJ 

WM 



MB 

IM* 

8X7 

X3 

ia 

. 

IB 

122 

111 

13 

57 



64 

54 

460 

42 

MU 



ZB 

21 

5X5 

57 

459* 


466* 

343 

6023 

10 

122 


122 

1C 

2.74 

— 

63d 



67 

57 

242 

57 

tie 

— — 

IS 

111 

803 

68 

4W 



44 

34 

220 

18 

64 


84 

«2 

AM 

40 

a 

_ . 

Tt 

54* 

«0 

Ii : 

267 



260 

229 

2X7 

2.8 





r™" 










LVr 1 , 




Price 

_ 

a 

-2 

989 * 

- 10 * 

ia 


330 b 


an 

-5 

ia 

-7 

n«u 

-A 

408 

-6 

191 * 

- 3 * 

96 * 

- 1 * 

TO 

-1 

n 



383 d 

*3 

* a 

-£B 

ts 

-2 

M 


CM 



EZ 7 A 

-A 

IM 


426 

— 

Win 

♦1 

57 » 



94 


406 * 

♦3 

441 

♦1 

2 tbd 

-2 

Si 2 d 



laid 


TOW 



63 



as 5 d 

-1 

IB 



138 * 


an 

-1 

non 

16 * 

* 

IB 


703 

+2 



MU 

YU 

kw 

capos 

Gria 

a* 

11541 

X 7 

IX'. 

56 X 4 

105 

365 

2079 

10 


Md 

YU 

b> Capon 

Bi-j 

63 

19 

7.1 

16 * 

1 X 030 

06 

IM 

417 

30 

270 

663 

1,021 

*rm 

27 

21 

m 

ion 

47 

£12 

99 X 9 

Xb 

2 fl 

18 SZ 

10 

168 

9140 

XI 

n* 

2726 

-19 

76 

170 

20 

142 

214 

26 

359 

HR fl 

15 

47 ? 

1,138 

- 

19 

1010 

- 

5 b 

KO 

- 

450 

13 X 9 

20 

A* 

51 X 2 

1 / 

125 

1020 

15 

Vh 

1877 

as 

26 * 

4 X 6 

16 

a 

1 U 

77 

94 

68.7 

10 

!W> 

1716 

19 

440 

3 X 14 

28 

? 1 ft 

1010 

40 

M 5 

040 

30 

ID 

1 X 4 

79 

263 

4411 

62 

71 

330 

XO 

2 * 4,170 

X 5 

153 

1 K 0 

45 

132 

780 

XI 

68 

M .7 

29 

os 

10 X 0 

44 

i* 

103 

- 

158 

23 X 7 

25 

35* 

SB 20 

- 




































































































































« 


FINANCIAL TIMES TUESDAY MAY 10 1994 


FT MANAGED FUNDS SERVICE 
























































































































































32 



HHB 





























































































































































































CURRENCIES AND MONEY 


F INANCIAL TIMES TU ESDAY MAY 10 1994 

I MflNEY MARKET FUNDS 


MARKETS REPORT 


Markets ponder dollar 


POUND SPOT FORWARD AGAINST THE POUMD 


Dog** Md 


Foreign exchanges spent 
yesterday in fruitless anticipa- 
tion of a tightening of US mon- 
etary policy that never arrived, 
writes Philip Gmoith. 

The weakness of the dollar 
last week, combined with 
stronger than expected April 
jobs growth, has convinced the 
market that it is a question of 
when, rather than If, the OS 
Federal Reserve raises rates 
again. 

Many had expected a move 
yesterday, ahead of the $29bn 
quarterly Treasury refunding 
that takes place today and 
t om o r row. A weak dollar and 
unstable US assets markets 
were seen as obstacles to for- 
eign participation in the 
refunding: 

The dollar finished nearly a 
pfennig lower in London at 
DM1.6579 from DM1.6661. 
Against the yen, it closed at 
Y10Z875 from Y1Q2.780. 

Elsewhere sterling fai led t o 
gain any support from strong 
April credit figures, and slid 
lower against the background 
of political uncertainty. It 
closed in London at DM2.4501 
from DM2.4859. 

In Europe, the D-Mark fin- 
ished mostly weaker. It closed 
in London at FFr3.427 against 
the French franc from FFr3.429 
on Friday. Against the Italian 
lira, it finished at L95&9 from 
L96L 

■ The release of Japan’s 
March capital account figures 
shed considerable light on 
recent dollar weakness. The 
$21 .92 bn capital surplus was 
the highest on record. The Min- 
istry of Finance said it was the 
result of Japanese companies 
selling US and European bonds 
ahead of the March year end, 
as well as foreign buying of 
Japanese stocks which hit a 
record high in March. 

Combined with a large cur- 
rent account surplus, this pro- 
vides a key explanation for 
recent yen strength - although 
figures for March show a 16 
per cent fall from a year earlier 
in the current account surplus. 
If the capital account figure 
proves to be a oueoff phenom- 
enon, as some analysts are sug- 
gesting, and the current 
account surplus falls in the 
second half of the year, the 
combination could prompt the 
revival of the dollar against 


Sterling 

Against the D-Mark (DM par fij 

Z86 


ISM May 


Source: OaWiwn 


■ Pomf to New York 


ter 9 

-UM — 

-Prei don 

£*ot 

TA963 

1.4935 

1 mti 

IwMSB 

1.4324 

3o* 

1.4950 

1.4916 

in 

1.4849 

1A912 

the yen. 




Analysts said that the failure 
of the Fed to act yesterday 
merely meant that the market 
would continue each day to 
await a cut, expected at the 
latest after next Tuesday's 
meeting of the Federal Open 
Market Committee. 

What the market is hoping 
for from the Fed is that it will 
act sufficiently boldly so as to 
be able to declare that rates 
have reached the “neutral” 
level. This should stabilise 
asset markets as it will allow 
investors to re-enter equity and 
bond markets without the fear 
of another policy tightening 
hanging over them 

■ Some clarity will emerge 
today on what sort of succour 
the dollar can expect from the 
Bundesbank. Decisive confir- 
mation that German rates are 
on a downward path is seen as 
one way of supporting the dol- 
lar. 

The Bundesbank will 
announce the terms of its 
weekly repo operations. Ms 
Alison Cottrell, international 
economist at Midland Global 
Markets, is expecting a 4-6 
basis point cut in the repo rate 
from its current level of 5.41 
per cent Call money yesterday 
was trading at 5.35/50 per emit 
which suggests a fairly small 
cut is likely. 

There has also been specula- 
tion that the Bundesbank 
might lower its discount rate 
when the council meets on 


Wednesday. Ms Cottrell said 
that, on balance, she did not 
did expect a move. The spread 
currently between the discount 
and repo rate is standard, and 
will not complicate money 

manflgwnmf 

■ Sterling started the day 
weaker with the exchange rate 
index opening at 79.2 compared 
to Friday's dose of 79.5. Ana- 
lysts said sterling's opening 
level of DM2.4750 was the low- 
est this year. 

Analysts attributed the 
pound’s weak perfo rmance to a 
delayed reaction to the Conser- 
vative’s poor showing in last 
week’s local elections, aggra- 
vated by negative weekend 
press coverage. 

Mr Mark Geddes, treasury 
ecnomist at Midland Global 
Markets, commented: “On the 
basis of recent economic data, 
which has almost uniformly 
been stronger than expected, 
the pound should be signifi- 
cantly stronger. In spite of this, 
the extent of Tory party losses 
do now, however, tend to rule 
out a significant rally in ster- 
ling Over tha onrwiog month at 
political considerations con- 
tinue to dominate.” 

fn the money markets, the 
Bank of England provided 
£36Qm of assistance after fore- 
casting a shortage of 2350m. 
The overnight rate traded in 
the 3Vt5A range. 

Sentiment soured in the ster- 
ling futures market, with con- 
tracts losing 1 ground across the 
board. In light trade, the June 
future closed at &L56 from 
94J59 on Saturday. The Decem- 
ber contract fell ten basis 
points to dose at 83.66. 

Mr Brian Durrant, head of 
research at brokers GNL com- 
mented: “Although the market 
is in principle oversold, there 
is nothing for buyers to bite 
on." Buoyant consumer credit 
figures failed to help sterling, 
or interest-rate markets. The 
Central Statistical Office (CSO) 
reported March net consumer 
credit up £51 6m, ahead of mar- 
ket forecasts of about £350m. 


MeyB 


Cteeteg 

rtd-goirtt 

Change 

Bfdfotfer 

spread 

Eanpm 





Austria 

(Sch) 

178406 

-00792 

339-472 

Belgium 


618418 

-0-1458 258 - 578 

Denmark 

(UKr) 

9.7050 

-08293 

396' 103 

ra_i j 

i um 

(FW) 

88606 

-00065 GT7-6B3 

Ranee 

(Ffi) 

04896 

-08231 

969 - 032 

Germany 

m 

34801 

-08058 791-810 

Greece 

p» 

366338 

-0881 

801 -671 

bated 

m 

18241 

•OOQ23 233 • 248 

tody 

04 

2377.70 

-1002 

644 - 898 

Luxamtwurg 

(LFr) 

618418 

-01488 

250 - 578 

Nethartands 


27837 

-0806 

827-847 

Norwsy 


107606 

-0025 

672 - 638 

Portugal 

» 

256863 

-0839 

316-850 

Spain 

(Pfrrt 

203821 

-188 

848-882 

Sweden 

(SKrJ 

118016 

-(08017 940-091 

Swtaodand 

(Sft) 

2.1164 

+00032 

164 - 173 

UK 

O 

- 

- 

_ 

Ecu 

— 

12869 

-0804 

884 - 874 

SDRt 

- 

98453S2 

- 

. 

Amarlcta 





Argentina 

(Fteo) 

1.4931 

+00043 

927 - 934 

Brazil 

fen 

2147/48 

+4027 

708 - 783 

Canada 

(ca 

28650 

+08026 

842 - 667 

Modes Blew Peso) 

43816 

+0843 

732 - 898 

USA 

W 

1/4860 

+0804 

957 - 962 

Plcfllc/MlfMh 

RaatMMca 



Auetrafta 

(AS) 

28782 

-08101 

781 - 772 

Hong Kong 

CHKS) 

118600 

+08316 

573 - 628 

tedte 

Pa) 

483242 

+01201 

089 - 385 

Japan 

M 

153896 

+0548 833 - 969 


Malaysia (MS) 09067 -00352 045 - 088 09348 08900 

NewZatiand (N2S) 25821 -05044 801 -841 25859 25755 

PMppinas (Peso) 405899 +0.1074 587 - 211 409225 403451 

Seucfi Arabia (SR) 55102 +00148 090-113 551S8 55838 

Singapore (S$) 23184 -00032 17B - 191 25196 23085 

S Africa (Com.) (T9 65981 +00583 957-005 5/41*9 50289 

S Africa (Rn.) (R) 7.1058 +01008 896-219 7.1228 65373 


Soutti Korea (Won) 1207.88 
Taiwan (IS) 395447 

Thailand PQ 37.8980 

tSDR ita far MW 5. BUM* Wri* 
but an knpMd by cum* hm mi 
Sm Data Spot teat drived (Ran 1 


One month ' 

Three months 

On* fmar 

Bank of 

Rat* 1 

KPA 

tea 

KM 

Rata 

KM Eng- Index 

17/4368 

03 

17/4312 

02 

* 

. 

1128 

51.0368 

0.1 

614)688 

-02 

508668 

03 

1152 

07127 

-05 

9,7208 

-07 

8.7382 

-03 

115.0 

. 



- 

- 

- 

82.0 

05054 

-08 

0511 

-05 

8.470 

03 

107.7 

2/4808 

-03 

- 

- 

2468 

OB 

1234 

142248 

-08 

14)28 

-07 

1.028 

-04 

1024 

2364.15 

-03 

2393^5 

-2.7 

242525 

-24) 

725 

5142368 

0.1 

514)968 

-02 

508608 

03 

1152 

2.7833 

02 

2783 

01 

2.7601 

08 

1188 

107540 

06 

10767* 

-03 

10,7586 

04) 

85.1 

250558 

-i£ 

250803 

—LB 

• 

- 

ra 

204.466 

-32 

205.381 

-29 

208.196 

-21 

05.0 

11.5231 

-22 

11.6536 

-12 

11.8426 

-12 

772 

2.1145 

14) 

2.1089 

12 

245784 

12 

1172 

. 

- 

- 

- 

- 

■ 

78/4 

1.2S7B 

-07 

12682 

-04 

12841 

02 

- 

20871 

-12 

2072 

-12 

20947 

-1 A 

MU 

1/495 

02 

1/4844 

04 

1/4938 

Ol 

662 

24)747 

08 

2.0723 

07 

20704 

03 

_ 

71.547 

U 

114)415 

08 

11/1826 

06 

- 

153518 

30 

152788 

29 

140111 

21 

167.7 

2686 

-12 

25893 

-1.1 

25978 

-06 

- 

- 

- 

- 

- 


- 

- 


Money Market 
Trust Funds 

taw m W W* 

SSSffiS a -\ S Hs 

DaMMaaMI 4JB “ • 

fiML u. <rf nj-WO-g. of w . 

Money Market 
Bank Accounts 


m 

Coufistco 

SSBStraS Ti T - 


e3o3-«icu*»- 


« fists 

a al ssl | 


Mkan HoRMBafcj*: 

90 G« toad, um K3T 3 

7 — | 4 il ni -re-wa* 


M M MR 


eaxoa on-maw 1 M O m “ 

P ** I £ 

DB(MD-£N.aW *00 MO 


UBbK£ 19L Ml si % 

BDtflhIIMMObkaanai 

union— I ^1111 MB UB j U3| » 
mm biwi — UB ajH) Sail 5 
490 uol Mol S 

bSmo ww « *■«*! Iffl £ 

sssssryts" o*i i*i * 

££SS£g£2=:£ K S * 

tunottM — «9B ml 5 

MSS'** to* U4 

|O«MM0rM»CMMGFI*K Riff JtgM 


tftat Trust Bark Ltd 
artotpMM. 

RMMtaOOI-l 


17.68 +251 718 - 818 120853 120221 - - - - - 

8447 +0247 305 - 588 39.8898 39.8000 - - - - 

8980 +0107 787-192 37.7240 375230 - - - - 

re— * h ta tend Spot RHo ilxw arty On M 0— docinri pttcea. Fotwk I a— ore W IMtP quoted *> tM mortal 

M MM. State kite cMatitod by tie tank of Beta* Bara avenge IMS -TOOakL Otar and Ititrata In bodi Ml and 

tan THE WMfflEUTBS CLOSMQ SPOT RATES. Soma takae ho ro u nded by fee F.T. 



| DOLLAR SPOT FORWARD . 

4.GA1MST THE DOLLAR 


_J 

May9 Cfoting Chong* 

mid-point on day 

Btitate- 

asned 

Day's mid On* month 

Mgh tow Rata %PA 

Tta*a roorrtha 
Rata KPA 

One year JJP Morgan 
tea KPA Max 



Off -030 0070 

are iw tare 

as +*£"£ 

BOO 497 MR 
5.15 *47 tall} 


*75 190 Ml 

*03 390 MM 

ui are mm 
300 407 MR 

21* 423 MR 


3MMtaOreMMe|*7B 431 I 5*1. . 

IMMMtaiBtteatal * 7 * 4 JU 1 9*1 

aae w w iH w w jB O 

C30.000+ -I »25 2M I S*l £ 

LHHM JMNpO ft SOM IWW 

SSSlMMlMpnilBI *71-0*351 

teMfiViMMiDvgtiiiiirt 

B*00i-*10QJBBO (49* 49006 bjHeY * 

nOMOKta • 475 404 * 5 **! 3 

MS— Ugw . lg ^ 

m immiimhm uam awsar .wi-wn* 
KlXAffZK»+) — I «■» 2197B I 4331 Mr 


aoreoaiiMniuHLijMiaiMinr tn-apM 

H1CA. (E2900-) I4S *11*1 4*1 B* 

U3«a 

enoLOOOMdMta _Tua u* uahS* 

[50900+ I *15 *00 *K| |S 

B+O0B+ at *71 4dS 

riSfflW- -- -* <n *5* 479 IS 


Austria 

Belgium 

Danmark 

FWond 

Franco 

Germany 

Greece 

botsnd 

Italy 

Luxembourg 

Netherlands 


May a e s 

Hunger 153249- 153375 102460- 102510 
tan 251200 - 261 BOO 174300 - 1750110 

KilMtt 04447-24456 02073 - 02075 

tend 33330.1 - 334101 222900 - 223308 
tadi 277059 - 278255 155290- 185080 
UAL 54321 - 58034 38715 - 38735 


Portugal 

Spata 

Sweden 

8 —tand 

UK 

Ecu 

SORT 


Argentina (Peso} 09981 
Bred (Ci) 1436-51 

Canada <C3) 1.3804 

Mexico (NevPaao) 03300 

USA W 

PadSe/Mdde Eaat/AMea 
Australia (A3) 13878 

Hong Kong (H<S) 7.7275 

India (Ra) 313675 

Japan (Y) 102875 

Malaysia (MS) 28115 

New ~Z retard (NZ3) 1.7281 

PhSppinaa (Peso) 272000 
Saxf Arabia (SR) 3-7503 
Singapore (S« 18498 

S Africa (ComJ (R) 3.6095 

S Africa (Rrv) (R) 4.7500 

South Korea (Wop) 807.300 
Taiwan (T$) 26.6350 

Thaiand (Bt) 262000 
tsm nts lor Mre e. BhPoflH remadi 
WailniMlirctairwMfta 


114S6B5 

-04)84 

560-810 

11.9950 1145425 

11.607 

-09 

11-8642 

-02 

11JB68B 

04) 

1C&J0 

34,1200 

-0168 

160 - 260 

KSMB3UH0 

34.156 

-1. 2 

34.19 

-08 

34.155 

-Ol 

104J 

0A87S 

-00388 

850 - 900 

25135 

24796 

24867 

-1.7 

2505 

-1.1 

24965 

-Ol 

103.7 

23882 

-00186 

832 - 932 

5.4004 

23820 

SSBM 

-09 

54)992 

-08 

5.4094 

-04 

727 

26817 

-00306 

8Q2 - 832 

5.7040 

545727 

S4S882 

-18 

58854 

-14) 

5.0737 

Ol 

1044) 

18578 

-00082 575- 582 

1.6600 

1/8555 

1/8585 

- 1.1 

1.6803 

-OB 

1J5504 

05 

104.7 

244.150 

-07 

900-400 

245/800 244.200 

2474) 

-12* 

255/275 

-122 

284/15 

-124 

701 

1.4008 

+00072 

600 - 617 

1.4828 

1/4538 

1/4583 

2.1 

1/1545 

1.8 

1.4464 

14) 

— 

1668143 

-1092 

885 - 000 

1597.55 1687.97 

159*78 

-4.0 

18DL83 

-3.1 

1623.43 

-21 

729 

34.1200 

-0188 

150 - 250 

342440 344)850 

34.155 

-1^ 

34.19 

-08 

34.165 

-0/1 

1044S 

12609 

-00102 

605-612 

1.8678 

1.8582 

1JB24 

-09 

13824 

-03 

1J478 

07 

1IXL9 

7.1831 

-00368 

921 -941 

7.2214 

7.1826 

7.1978 

-oa 

7.1996 

-0.4 

7.1806 

02 

954) 

170:850 

-068 

700-000 

171/400 170700 

172.085 

-27 

1744)5 

-7.5 

178.05 

-4.8 

83^ 

136215 

-1.065 

290 - 340 

1374)50 132150 

136JB5 

-44) 

137/44 

-03 

139805 

-23 

800 

7.8885 

-00192 

847 - 922 

7.6927 

7.6593 

7.7075 

-34) 

7.7315 

-23 

7.7835 

-1.4 

808 

1/4147 

-00017 

143 - 151 

1.4176 

1.4118 

1.4144 

03 

1.4118 

03 

1-3812 

1.7 

1009 

1/4980 

+04)04 

957-962 

1/4875 

1^888 

1.485 

03 

1/48*4 

0.4 

1.4838 

Ol 

620 

1.1625 

+00067 

622 - 627 

1.1630 

1.1570 

1.161 

13 

1.16 

09 

1.1615 

Ol 

- 


Bank of Irataad Mob intarata CfraniAoc 

ta. oraaf 

ei*0D0+ Jataco » m«| 

BWMM 1 771 1979 I 292*1 

Bank al Seated 

M TMukind* BC B3P2IH Cff-BOl 


iSSre £>■ 

I *32*1 » 


KtoAStaaaf B7«; 

is S a 

E23JJOO*-— — • 9W ITS &JV, 

15 ta - t5 ! 


sasrasci is is is £ 22 

CWLOTO* *79 *T2 •» fctaAltaraiM; 


MiMItlACMHI . Haw reoioo 


S2S *M A2S WWl7 
419 1 UDIXital 


^PrtnreAte-dKIhX 

t180B424re 290 190 202 1 Ot 

BlgBfa= lB ial m £ 

ss,afflAa,ts».B= »™-» 

SSss=*=:l 


+0.0002 980 - 881 05981 (X897B 

+23.18 550 - 652 143583 143580 


-0-0105 873 - 883 1.39SS 1-3873 

+00008 270 - 280 7.7280 7.7270 

-0.0025 625-725 31J725 31.3825 
+4L09S 850 - 900 103JXX1 102.300 
-00305 105 - 125 28400 28105 

-00075 250-271 1.7322 1.7247 

- 500 - 500 278500 27.0500 
-08001 501 - 504 3.7504 3.7502 

-00082 495-500 1.5553 18480 

+08302 075 - 095 3.6225 38715 

+0055 400-800 4.7000 48500 

-025 100-500 808800 807.100 
+0895 300 - 400 288400 266000 
+0.005 900 - 100 258100 25.1900 
la lw Dotar Spot M* ta only Ore laar On 
. UK. Mta * ECU M <Mta* n US oxm* 


1.3827 

-24) 

1.3860 

-16 

1.4022 

-16 

802 

0331 

-04 


-03 

03402 

-03 

986 

1388 

-1.1 

1-3937 

-1.7 

1.4043 

-16 

866 

7.7305 

-06 

7.7365 

-06 

7.7812 

-04 

- 

31.43^ 

-26 

316675 

-26 

- 

- 

- 

102.67 

04 

10222 

26 

99.73 

01 

148.7 

26045 

02 

2689 

04 

26515 

-1.5 

ra 

1.7274 

-09 

1.7319 

-16 

1.7538 

-16 

- 

0751 

-02 

07533 

-03 

07848 

-04 

_ 

16491 

06 

16486 

06 

16472 

02 

- 

3R?*; 

-25 

OKI 

-4.7 

0744 

-08 

ra 

4.78* 

-28 

4.84* 

-7.9 

- 

- 

- 

8106 

-46 

8108 

-02 

8326 

-Ol 

- 

227005 

-34) 

22801 

-26 

- 

. 

- 

2528 

-08 

22406 

-03 

2S62S 

-26 

- 


asl jsi s 


■tatetaSjaas te f M— Beef .uisreans 

MCA I *.73 UQl -I tad[ 

CBtarAteLM 

Bframaitataim uff-anaorn 

MCA *79 291 } 391 1 M 

Ft»wesaoco. — * re - 4*1 mb 

0MnreM£B(U»O- 1 49a -I 497 1 MB 






gaasz=: a Hslssis 

1I0.DU0-+2+.9W | 480 US 4971 5 

E2MOO-C4SUBB 490 SH 491 * 

a5BB» — 1 **o *aat Mil * 

Porfmaa BUg Soc ftetajoaCtma 

wnnm. I MO 4.19 

nQjOOO-CrejMB 

moofrCTJW 

tttU)00-Ct*B» 

tUOMSM- 

(taa BNBrec* IMdMn 

M9MMi-«WMk.iHwnBaHXBi an-auim 

ntatadf CtaHta* | W 9*1 49ll I* 
rea— ata«B*aat 1 4g *aa 43* «i 
nua-a ta taa ttare. I 425 *»1 4*1 * 

IM Bade of Seated pk PMnta 

taltMM»Sq.trereta>e&zrE. mi+aan 

C9U0B+ 1*79 291 I 39*1 *- 

B5.m-C48.nB *90 291 159 Or 

nom-CABM 1279 209 I 2*1-5 

n/XN-rem am u» 2*1 re 

ara-cun I uo 1.11 1 ml re 

Saw s PmpKffMMrt naadna 
iB-^wreitaiiAitaMreri i* rereamn 

aretawt. -I *n 391 1 a*l o* 

tcssa read 1 law «* - un Na 

ILSSAtaHM I 441 -I 4*1 Ml 


B71 -2494000 
2*1 3* Mk 

990 4 07 MB 

3.19 4-33 MR 

4* 9* 4* MB 

1* 1.19 191 M» 

2 00 190 202 MR 

23 I* 227 Mk 

2* ra * 


x 3SftSf.es., 


. Ftawwd rata mw not <*acDtf qnoHd to ta mm 
ad Mca Mary * te a inatvioa 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 


EMS EUROPEAN CURRENCY UNIT RATES 


May 9 


Bn- 

DKr 

Fn- 

DM 

K 

L 

R 

NKr 

Em 

Pta 

SKr 

SFr 

t 

C9 

S 

Y 

ECU 

Belgium 

(BFr) 

10 

10.01 

16.65 

4669 

2006 

4659 

5455 

21.08 

5008 

3996 

gg*g 

4.146 

1659 

4.046 

2631 

3016 

gJP2 

Danmark 

PKr) 

5269 

10 

0.750 

2656 

1.056 

2450 

2869 

11.09 

263.4 

2101 

1165 

2180 

1630 

2128 

1641 

1566 

1628 

Franc* 

FFr) 

6005 

11.42 

10 

2.918 

1-205 

2798 

3275 

1266 

3007 

2396 

1363 

2489 

1.176 

2429 

1.760 

181.1 

1614 

Germany 

PM) 

2068 

0913 

0427 

1 

0413 

9586 

1.123 

*638 

103.1 

8222 

*637 

0663 

0403 

0633 

0603 

6206 

0618 

Ireland 

TO 

4964 

9.478 

8601 

2-422 

1 

2322 

2718 

1051 

2496 

1801 

1123 

2066 

0977 

2017 

1461 

1503 

1257 

My 

<U 

2.146 

0408 

0357 

0104 

0043 

100 

0117 

0452 

1075 

8674 

0484 

0088 

0042 

0087 

0063 

0472 

0654 

NnltiailMHfa 

P) 

18-33 

0486 

3663 

0891 

0388 

8546 

1 

3665 

9161 

7324 

4.131 

0780 

0 659 

0742 

0637 

55/28 

0482 

Norway 

(NKO 

47/43 

8620 

7600 

2305 

0652 

2210 

2687 

10 

2376 

1896 

1069 

1667 

no?fl 

1619 

1690 

1436 

1.196 

Portugal 

(W 

1087 

0787 

0326 

0670 

0401 

830.4 

1.08S 

4210 

100. 

79.77 

4.499 

0628 

0691 

0608 

0685 

9021 

060* 

Spain 

(Pte) 

25.03 

4.760 

4.169 

1616 

0502 

1186 

1.385 

5277 

125.4 

100. 

5640 

1638 

0490 

1613 

0734 

7548 

0631 

Smarten 

{SKrJ 

4468 

0*39 

7691 

2157 

0690 

2008 

2421 

9667 

2223 

1776 

10 

1640 

0870 

1.796 

1601 

1336 

1.119 

Switmrtand 

(SFr) 

24.12 

4688 

4.017 

1.172 

0484 

1124 

1616 

5.085 

1208 

9666 

5.435 

1 

0473 

0676 

0707 

7273 

0608 

UK 

» 

51.04 

9.705 

8600 

2480 

1624 

2378 

2784 

1076 

2556 

2036 

11.50 

2116 

1 

2065 

1496 

1536 

1287 

Canada 

(CS) 24.72 

4.700 

4.116 

1601 

0.496 

1152 

1646 

5211 

1236 

98,74 

5669 

1.025 

048* 

1 

0.72* 

7463 

0633 

US 

P) 

34.12 

8.487 

5682 

1.658 

0684 

1590 

1661 

7.183 

1709 

1386 

7687 

1414 

0668 

1680 

1 

1029 

0880 

J*»n 

m 

331.6 

6006 

56.23 

16.11 

0654 

15452 

1869 

6962 

1881 

1325 

74.72 

13.75 

0498 

1342 

9.721 

1000. 

8683 

Ecu 


39.66 

7641 

6606 

1627 

0796 

1848 

2163 

8681 

1986 

158.4 

8636 

1644 

0777 

1.805 

1.162 

1196 

1 


*ter 9 

Ecu can. 
rates 

Rote 

agtinat Ecu 

Change 
on day 

W+Aftom 
can. rate 

hated 

0608628 

0786183 

+0001055 

-164 

Netherlands 

219672 

2-16660 

-060147 

-167 

Belgium 

*02123 

39.7206 

-0.0343 

-122 

Ganiwny 

164964 

162960 

-000146 

-163 

Fteica 

663833 

661254 

-000594 

1.13 

Danmark 

743679 

765282 

-000276 

166 

Spain 

154250 

158668 

-0232 

280 

Portugal 

19266* 

199.115 

+0248 

325 

NON STM MEMBERS 




Orasce 

264613 

284662 

+0075 

760 

•ter 

1793.18 

185046 

-3.74 

019 

UK 

0786748 

0778486 

+0.006319 

-165 


1 Knxnr, Franan I 


1 Nonaagll Kroner, : 


■ P-MAWt WITUim (IMM) DM 125.000 par PM 


I gMM)Yon 128 pw Van 100 



Open 

Latest 

Change 

High 

LOW 

Eat rat 

Open bo. 


Open 

Latest 

Change 

Hoh 

Low 

Eat voi 

Open bit 

Jrei 

0.0016 

06018 

+0.0001 

06035 

06096 

63630 

115684 

Jun 

09768 

09740 

•00048 

06788 

0-0729 

22653 

8Q685 

Sep 

0.6026 

06020 

+00003 

0.61127 

06020 

364 

5.728 

Sep 

09794 

09610 

-00039 

09850 

09794 

784 

3672 

Dec 

06038 

0.6008 

+00007 

06038 

06038 

10 

621 

Dec 

06906 

09885 

-00033 

06906 

06885 

26 

856 


486 10 

488 

482 S 

482 

2.10 -8 

186 -11 

0.43 -20 

0-00 -22 


Orem 264813 284862 +0.075 780 -3.96 

Hair 1793.18 1850.46 -3.74 3.19 0L05 

UK 0.706740 6776486 +0.006319 -185 484 

Ecu tatal ram are tv 8w Eirapaai Oonwtaloa Qnaneta ore n deacwidtag ntata abangdi 
p Ho enageita no Hta tor Ec u; > pooitaitangedBnotaa e roM curre ncy. C Riwaanoa dwta Bw 
raflo tMRaoan rare aprands: 0 — paoHafla dtanca botwean the ocUM nila and Ecu certral lau 
kx a anarcr, ad the ii wii mi panrwtad p a r w ia Qa dotation of Ra oatancy^a rnariasc raaa born ba 
Ecu contrd rta. 

HT7B/9S tetag tod tbte Um maftmOmi tan 39*. AdMbnM edataad by me nmcMlha* 
■ P I ■LAPreUPMA 8* tmOTTIOIBI £31^50 (cants per pewd) 


OyterttaBteRaiMaSotatoAcc 

3oaHnmrFlaca,StaiMrOia* 041-446 IWO 

RMOHSaM fire 2*1 179 OR 

raOOOM90J)OS__ 3-75 2* 1 1*> Or 
tioSm-cia*SM— I *90 2*1 las I or 


TfraCO nparathaBaak 

m nm irn. nmw i mi , 

TBfiA. -I ATS 


ta<fr-lBMR 

cianu-irereal 


MHM9MB I Mtattaa 9923 2719 I XB* l bt 

arao 34i3 1 uni re 

HMACsan>+ 34* 2909 in re 

MHAC100DDO+. 4*0 9*0 40nl re 

TynMTCSSA 49* - 1 44471 re 

DEC Treat Ltadtad 

i —I cwiaarew PLinrere wtw ial off -are cm 
cuLoao-Wdreaearen an 900] arela-Hh 
tttureinavata- 75o *03 7* a-M 

[2*000- 1 tar I 723 *44 I -I IM* 

IMtatf Dorekdn IM LM 

ra tail. m. moor eti-Ataaoi 

C^MfkiCiewiAcBeM 

rijODO*- .14.79 999 I 4*1 » 

orr-aKaore 


1 1 *01 1 MB 


ilttMaa 


A2S 

SM 

522 e-Mtl 

*50 

3JS 

<5H1 

440 

540 

CM Ml 

MO 

225 1 

Mzle-taa 

us 

225 

SJ1 

2/M 

inlHti 

UI FW 

ije 1 

zaltra 

450 

sj« 1 

45S|S-Ma 

loo 

240 

UtFM 

2.75 

200 

2J7 e-te 

225 

1JS 1 

22ila-M 


ire ci nima . unta cca bps crr-sceooo 

SpecM Acc 1 3.119 2* I 3.19 Ml 

nOmwOMM 1*9* Z9ll X4ll MB 

Weitani Treat Mgb Mamt Ckagao Hat 

ire Mmirerea. wtbmwi w.1 ise erazxaiMi 

£15*0+— 479 **| 4*| * 

£S*0-€l4»a 4» *98 I 499| re 

n*o-c4*a 1 429 aia I 4*1 re 


neaowdMta — i *** 
Waatara Treat M8b Manat 


ite 

arazBiMt 
4*| » 




*nM Mr. m Cr Rta) 
IMMMM. 


I PBAWC FUTUHP (MM) SFr 125.000 par SFr 


I wmm— flMM) £62800 par £ 


Jun 

07080 

07080 

•00021 

07080 

07068 

17.133 

40604 

Jw 

1/4892 

1-4942 

+00010 

1/49S4 

1A880 

14.605 

46619 

Sep 

07100 

07087 

-00016 

07100 

0.7085 

164 

624 

Sep 

1/4826 

1/4940 

+00020 

1.4940 

1/4926 

108 

1,172 

Ok 

- 

07137 

- 

■ 

- 

2 

340 

Dec 

- 

1/4940 

- 

1/4840 

- 

1 

37 


Strta 

Plica 

May 

- CALLS - 
Jrei 

Jti 

May 

— PUTS — 
Jun 

Jti 

1/485 

661 

662 

662 

. 

004 

004 

1/460 

4.42 

465 

465 

- 

027 

027 

1.475 

2.08 

2.71 

2.71 

006 

081 

061 

1600 

038 

1/34 

164 

087 

160 

168 

1625 

- 

055 

065 

262 

363 

363 

1650 

- 

017 

017 

568 

5.64 

5.84 


Pratauf d**« w U Crta 19.140 Puts 8,117. Prw. doy^apan It. Cta 488*5 PW» 414*9 


WORLD INTEREST RATES 


MONEY RATES 

May 9 Over One Three SU One Lomb. Ota. 

niflm month mtha mtha yBor inter. rare 


II UK INTEREST RATES 


Satt price Change 
95.03 -tun 


i (UPFST DMlm pejnre of 100% 

HH*1 Ijjw Eat. wl Open fnt 
9584 9581 14540 195270 


Balgltei 

8ft 

5% 

5% 

5ft 

5% 

7 AO 

4.75 

- 

weak ago 

5a 

5% 

6« 

55t 

sg 

7/40 

4.75 

_ 

Franca 

&s 

5H 

sg 

61* 

5% 

5.70 

— 

7.75 

week ago 

5H 

sg 

sg 

5* 

sg 

5/70 

- 

7.76 

Germany 

6.54 

560 

5.15 

5.08 

564 

660 

5,00 

5.47 

wetie ago 

5.65 

560 

568 

562 

S2S 

860 

560 

5X7 

Inland 

sa 

aa 

6 

Oft 

8ft 

- 

- 

660 

week ago 

51* 

sa 

6 

64 

64 

- 


860 

Italy 

ay 

8 

7B 


8 

— 

7.60 

8.10 

week ago 

8H 

a 

8 

8 

8ft 

- 

&00 

827 

Nattmrtands 

S 32 

520 

513 

511 

511 

- 

525 

_ 

week ago 

5.46 

520 

529 

528 

527 

- 

525 

- 

Swtoatted 

-4 

4i 

4 

4 

4 

8.825 

360 

_ 

week ago 

33 

** 

4 

J 

*ft 

8.625 

360 

- 

US 

4 

4M 

«4 

51* 

6H 

— 

3.00 

— 

week ago 

35 

4H 

4M 

4H 

5K 

- 

360 

- 


Sep 

9522 

9521 

•062 

9523 

95.19 

19932 

183944 

Dec 

95.13 

95.15 

aoi 

95.18 

95.11 

14109 

177471 

Mv 

ok m 

9563 

-061 

9663 

9660 

8116 

193550 

■ TteU MONTH mOUU ■fTJtATI NlUte (LiFF^ LlOOOm points at 1005* 


Open 

Sett price 

Change 

high 

Low 

Est vol 

Open M. 

Jrei 

9261 

ruga 

-002 

9261 

9225 

2189 

43592 

Sep 

82.40 

9243 

-061 

92-44 

9268 

2185 

30102 

Dec 

02-27 

9261 

- 

8263 

9227 

862 

35010 

MV 

S268 

92.15 

+002 

92.15 

92-00 

170 

12081 


1 IUFFQ SFrtm polnta oMOOH 


Japan 21V 2tt 

week ago 2tt 2« 


■ SUBORPT London 

t ntab enk Ffrdng - 4i 

weeh ago - *i 

US OoSar CDs - 489 

weed ago - 485 

SDR Linked Da 3ft 

week ago - 3% 

ECU Unfead Da ndd ralta 1 ntfli 6.3 
r«— we oMtad cram (or SlOm quolM * 
on. The beta •* Bankee True. Be* 
Mid nm an «Homi lor ms dommoc Me 



Open 

Sett price 

Change 

Hte 

Low 

Eat. uol 

Open int 

Jrei 

96.16 

9018 

- 

9018 

0012 

6118 

21505 

Sep 

9014 

9016 

- 

9017 

9013 

383 

10914 

Dec 

98.01 

0004 

. 

9004 

9001 

236 

5180 

MV 

9565 

9085 

- 

9085 

9565 

S 

883 


btabank Staring 
Sterling CDs 
Treasury BBi 
Bank BRs 


UK deartng bank I 


Certs of Tsc dtp. (£100800) 


kTES 

7 days 
notice 

One 

month 

Threw 

months 

Six 

months 

yev 

5%-4% 

5%-5 

5ft -Sft 

5%. 5% 

eft -53 

• 

5ft - 5 

5A-5ft 

5% -5% 

Sfi- 5B 

- 

43-4« 

4U-4S 



“ 

*n-4ji 

4«-4fi 

5% * Sft 

- 

4S-4fl 

5ft-5 

5ft - 6i'« 

5% -5% 

sft -5ft 

5-4% 

- 




1 5% per CM from February 8/ 1994 


Up to 1 

1-3 

36 

6-9 

9-12 

month 

morth 

months 

menths 

maths 

1»2 

4 

3% 

3% 

3% 


NOTICE OF PREPAYMENT 

Salara Finance Australia Limited 

(formertir /Vtoui JarjO Kobe AusBoSd Urmed) 

US$50,000,000 

Guaranteed Hoatmg/Fbced Rata Notes due 2000 

UrrandiiionafyandiTOiAxably 

The Safcura Bank Limited 

In aooordanoa with paragraph 6 entitled Redemption and Purchase 
of the Tams and Conditions of the Notes, notice is hereby given 
that the Issuer will redeem, on May 31. 1994, the total anount 


! MOWTH ECU FUTURES BJR^ EoTIm pobrta Ol 10094 


4 H S4 58 

43 43 53 

486 4.99 580 

4.10 481 5.10 

4 4J 44 

3ft 3ft 4 - - 

romte: S3; S rnths. 5ft: 1 yaw: 5fi. S UBOR Wwto 
o «» rasai by tar reftrenoe bnrta at 11am aae 
of Tokyo, Bntare and National W mjm a am. 
on«y Fftrea. U3 9 CDs and SO« Unlwd Capos* l 






Opon 

Sett price 

Change 

Mgh 

Low 

Est. vol 

Open kit 

" 

“ 

" 

Jrei 

94.44 

9444 

- 

94.45 

9443 

954 

11354 


"" 


Sep 

9463 

94.54 

- 

9464 

9463 

429 

11882 

“ 

- 

- 

Dec 

94.43 

9444 

-061 

9444 

94.43 

125 

6999 

- 

- 

- 

Mv 

9460 

9421 

-062 

9420 

9420 

35 

2277 


Cart* of Tree dtp. undw £1 00800 b 1 ^poOreadB wldidtan lor cash Mpc. 

Are. tond* rta rt taooutt 4*9frpc. 6CGO tad rare sa» Lupart Flnane*. MMa up day Acrt 29. 
1894. Agraod rta tor pwtod May 25. IB* W Jwi 26, 1904, Scnwna D ■ • 0*pc Rtaranc# rare 9 
patodAprl. 19* la 29, ISM, ScMnwa W « V S28Bpc. Fkunce Houma Baa Rta S*ipc tan 

May i. :9* 


noaai mouth siwure fuiubss (uffq £500800 points or 100% 


Open Sett price Change Hgh Low Est. vol 


■ UFFE um traded an APT 


Jun 

Sep 

Dec 

Mar 

Trtaad an 


9486 9488 
9485 9423 
93.73 9387 
93.14 9386 


-an 


Kgh 

Low 

Est voi 

Open kit 

9*67 

9465 

8404 

80697 

9426 

9420 

11988 

83275 

93.73 

9365 

13427 

128873 

93.15 

8365 

79*7 

50397 


EURO CURRENCY INTEREST RATES 

M*y S Shan 7 days One Throe 

term notice month months 

Belgian Franc 5A - 5,1 6£ - 5,', G> 2 - 5* 5»j - 5% 

Danish Krone BU - Si* 6 1 * - 54a 6>a - 5}i 6>+ - 6Q 

EfrM-K 6^-5«2 5* -5.1 5A - S,i 51,-6 

Dutch Cuter 5’i • W 5A - 5A S’* - 5*8 5ft - ^‘a 

French Fnaic 5^ - Sti 5^ - sit 5U - 5(4 SfJ - 6,1 

Portuguese Esc. 12 - 11% 12^ - 12 12* - 12>a 124 - 11^ 

Spanoh Peseta 7{J - 7{J ?5 - 7fi 7Q - 7fi 7» - 7» 

Stwtng **t • 4li 5.V - 4|| 5 1 , - 5,1 5^4 - 5,1 

Sons Franc 3k -Sh 4 • 3^ 3{| - 4-3% 

Can. Data 5% - 5*B 5|J - 5|1 5Q - 5U 6,1 - 6& 

US Data Va ■ 3\l 4,1 - At, 4,1 -AH 4a-4ft 

ILftr Lira 9 - 7«j 8-7^ 8 - 7^ 8 - 7lj 

Yen 2ft ■ 2*9 2^ - 2ft 2k ■ 2ft 2U - 2ft 

Awn SSna 3‘t - 2*2 =»!* - 2 ^ 3*2 - 2*2 4-3 

Start wnn ratal are cal <ar Sw US Data and Von. othore.- lire days' no 


5ft - 5,1 

6.1 - 5» 

5.1 - 413 
5ft -V. 
5N-51 2 

11>«- 10H 
m-7H 

5»z-5^ 

4-3% 

tlk-6\ 

5.1 ■ 5ft 
6-7% 

ih’ZA 

4-3 


One 

yea 

5% -5*1 
fl>a -5U 
5ft - 4B 
5ft -6ft 
S%-6% 
10 % - 10 % 
a-7* 

6 - 5% 
4-3* 
7% -7% 

SI -aft 

8%-7ft 

2ft - 2h 

4% -3% 


■ THBB H9ITH HHOOOtUIB (MM) tiro points of 100% 

Open Latest Change High Low Eat. uol Open M. 
Jun 95.00 84.9? -088 95.00 9480 188885 420888 

Sep 9482 9482 -a 06 9482 9480 248844 430^97 

Dec 9381 93.74 -<3.07 93-81 93.71 297.122 381843 

1 US TKEASUBY BOL FUTUBMS (1*0^ Sim par 100% 

Jun 9338 9534 -086 8636 9538 3806 25.272 

Sep 94.78 84.73 -008 94.78 94.71 929 11886 

Dec 9437 9433 -006 9437 8432 1837 6379 

Al Open htweot Hga. are tor previous itey 

■ awoatateC*mMte(UFFE)QM1mpolntB of 10096 


Strike 

Jin 

- CALLS ~ 
Sep 

Dec 

Jun 

— PUTS - 
Sep 

Dec 

9500 

Oil 

028 

032 

008 

007 

0.17 

sees 

063 

0.13 

0.18 

025 

017 

nw 

9550 

061 

065 

OIO 

048 

064 

045 


APT. Al Qptfi htata Bga. are Ccr pretatrt day. 


r SimJM OPTKM»(UFFE) £500800 polnte of 100% 


CALLS — PUTS — — 

jun Sep Dec Jun Sep 

0-12 ai3 089 a06 040 

a 03 088 a 06 032 088 

081 0.03 O.dZ 0/45 080 

4. Cl* 1001 Pitt m. Ptatea dw> open Ire. CMa 170708 Putt 157806 


BASE LENDING RATES 


CALLS - 
Sep 

Dec 

Jun 

— pots - 

Sep 

Dec 

013 

068 

0.06 

040 

no o 

068 

006 

022 

058 

1.13 

0.03 

062 

045 

080 

165 


! MONTH PBOT WTUKS (MATIF) Parts WerbanK ottered rate 



Open 

Salt price 

Change 

rtgft 

Low 

Est ml 

Open int 

Jun 

94.47 

84/44 

-0.03 

8*47 

84.44 

11,376 

69/840 

Sep 

94 72 

94.88 

-004 

94.73 

9468 

8.447 

45668 

Dec 

94 06 

94.84 

-OJK 

94 .ee 

94.63 

3.474 

37.017 

Mar 

9460 

8*50 

-0.02 

9164 

94.48 

3614 

32646 


E MOtmi ■URQOOLLAB fUTO)' glm points o< 10096 


EM. vdL toul. CMS 809 Puts 2736. ReuoiB dny^ opon ml. Ce* 232926 Pi* 168920 
■ BUBO SWISS WUU«C09m09tS(UFFg SFr Impctrts of 10096 

satka " CAUS — PUTS 

Price Jwi Sep Dec Ju. Sep 

sago aia Q 2 & 037 o.Q 2 aio 

8625 ao4 ai 2 ais aia 021 

9850 081 006 0.07 036 040 

EM. -reL tact CMs Q Puts a PtrettB c*r W, C«4 5« Pub «54 


Jrei 

- CALLS - 
Sep 

Dec 

Jrei 

— POTS - 
Sep 

Dee 

018 

02S 

027 

0.02 

aio 

023 

064 

012 

015 

013 

021 

038 

OOI 

006 

0.07 

036 

040 

a$3 



Opon 

Sett price 

Change 

High 

Low 

EsL wti 

Open kit 

Jrei 

94-33 

94.88 

-0.13 

8*93 

9*89 

488 

5106 

S«P 

9423 

0421 

-014 

9424 

9423 

32S 

2151 

Dec 

- 

33.72 

-013 

- 

- 

0 

1372 

MV 

- 

93.46 

-015 

- 

• 

0 

966 


Adam& 0 anpar 5 r.„M. 52 s 

ABedTiustBenk 525 

AB Baric 535 

•Henry Andtateer 53S 

BarkotBaipda 5JS 

Ba*oBfc»Vaeaya^535 
Bar*o( Cyprus OS 

Ba*cJ Ireland 535 

Bark at Ma 525 

Bank of Scoted 535 

Barclays Brek 52S 

MBccTMUEast 535 

•Brown SNptay&CoUd 83S 

CLBartcNodarland... 525 

OtokNA 825 

CtyttescaSoBar* _3_25 

Tiia CcxperaBw Bank. 525 

CouHsSCo _526 

CrerfcLyamafe ..523 

Cyprus PcpctaBft*„82S 


□mean Lame sa 

Eicetar Bmk limited _ 53S 

FhanoBI & Ore, Bark _ 6 
•Robert Honing & Co _ 525 

GWank, 525 

•Gremesc Mahon $2s 

HM* Benk AG Zteieh . 526 

• Ha H bus Bft*..,. 525 

HertOWe a Gen krv Bk 5.25 

•M8amuaL 3-25 

C-MOBre&CO 525 

Han0rang 5 Shanghai 525 

Jtei Hodge Bank 625 

•UapdU JK4* & Sans 625 

UoydSBenk., 525 

Medial Bank Ud 52s 

MdandBank — 525 

*Momt Banting 6 

mwes te ai a 525 

• n d aP wth aa — 525 


*RwtwgheG*wantee 
Ccspataten Urrted b no 
tangoreuthensedao 
a bertaig nsttutba a 
AojefBk at Seated.. 525 
•Sm* 5 VMrrsn Sere . 52$ 

Standard Chateau 525 

TSB Sag 

•Unte Be at teat _ $2$ 
Unty Trust Bar* He — 535 

Western Tub! 625 

Wteraosy liddbw .... 535 
Yatattra8aMc _52S 

• Members or British 
Merchant Banking & 
Secretes Houses 
AsnxMon 

f Iw u-fc-rejlr r_ Firm 






* 









‘‘■K. 



FINANCIAL TIMES TUESDAY MAY 10 1994 


35 





WORLD STOCK MARKETS 




+ /- ■* Law no FA 

*/- Hkri IWTU M 

♦ /- wai Law no we 

♦ /- W UWIU K +?- «ri> Low tit PfE +/- hhb Um TH HI 

• /- MOB Low na HE Saw. 

+ 7- Hal Law Saha 

♦ /- Mab Low 


. . .IJ..' i U - , 


•• 'r-r* 1 .Teat 


A.»tr. s .i.i Lim^ 

\\Y 

. ... '.•!••• »!‘ h 

> i : ..’ •• • 


i\ t U 



<j<h 


,U 



« 


'CL r :*rf-s‘ . 



EUROPE 

Ati&nufMays/sem 


Link 

UM 

Lagmo 


' . -II 

•; ' u >*\ 

' ' 

- .■ - ' • r 

I....,.- , " ■" ■ n 

. ' s-TV™**. ^ 




■ ■ 

r- 11 < ■. « - ? 

' •- "i 

is "*’■■'» 

■■* •* ~ 

■■- J,>l« 

‘*-r* 1..* . ‘ ■* •’ 


" 1 %> 

■ • • , S? 

- ■njl* »’'V- . tr-j- 

•.".."„ l ':^fns e 


Amur 

1X60 

-19 £200 1.750 

£6 


BhAual 

1X2S 

-6 1270 

995 

OJ 


Crodfli 

sao 

-15 834 

63S 

1J 


EA6W1 

£600 

-100 «J90 3X00 


. 

EVN 

1X00 

’48 1.713 1J88 

IX 


tonzng 

1X55 

-36 1X87 1,050 

fX 


OeMv 

882 

-13 1X71 

BBS 

IX 


taiZn 

660 

-IS 1.050 

335 

£1 


RooaxH 

«TO 

-4 480 

403 

£1 


StnyiO 

234 

-8 at 

171 

£6 


venMg 

VMM 

350 

-0 406 

3E6 

1.7 


592 

-10 79! 

592 

£7 


uiuir 

487 

-8 BOO 

4S7 

1.7 


Wtxnoo 

3X20 

-95 4X40 3X20 

IX 



IbdEat 

than 


— Roritft 


PmRfc 

ssr 

PmV 


Harm 

RhonPA 

RUdri 

sue 


(May 9 /Fra.) 


aggto 


zsra 

4,120 

mam 8,070 

Mtd 5,180 
881. 4JBOU 


Cofaepa SXIOxd 
iTctJP IBS 
Q»ye (WOO 
On* 070 
EbKto 6JG0 
auwv 
EflnflC 
GBL *,<30 

a* 

SEGp 
GwiBnQ 8JQ0BI 
Smart 0.050x1 


-lOlMblHO ZB 
+13 4,2503.706 1J 
+30 9660 7,600 10 

+10 6J00 4X00 
+30 4J70 4.130 4 J 
BMlX T7.SOO +SM1SM0 17.150 ZB 
BGrfJ’t 2*200 -3.100 28X102UOO 25 
toqMB 40JJ75 +375 42^754003 04 
(Mai Z7.300 -1007730070*60 
CSflOm 12,750 — 176 TU/311.BZE ZB 
CUB 1820 +S2J2012D013 

+108.200 MID 10 
-S 202 154 6.7 

+30 8200 8,100 12 
+4 1230 1,330 2-0 
+20 WJ20 6.000 BJ 

BAD -100 BJJOO ejxn 52 

1880 _ 3^801210 X6 

+40 42801870 44 
_ 4.400 32U 4J 
-5 1280 1.430 22 
-30 8.180 8200 _ 
+4010200 8240 1.7 
5280 -120 ISO 4.160 £2 
3240 —8285 3270 42 

-50 8200 6.7E0 1.7 
-30 7250 8.770 12 

— fjmn 6200 

+2S 1230 1235 62 

— 17200 16200 0.1 
-60 10275 8.870 22 
+30 3260 8275 42 


Wtodr 

Set» 


9mu 

jH 


. SarnmcA 


nmdSF 

TririB 

U«> 

UFBLK 

UnBal 

iMmFr 


14320 -1 J» 167.70 13530 — 
1/290 -11 1295 1.150 02 

5210 -110 6.700 5280 0.7 
278 -5 2BSZ1U0 — 

GIB *5 BIB 546 22 
840-1080 27427.10 02 
13320 -1 157 10020 42 

1.110 -1013481.088 52 

15020 -SJOlSKi 148 62 
237 _ 2E0 1B0 _ 

33320 _ 52B 3G7 42 

431 +3 53S 421 52 

16820 -420 234 15510 05 
38140 -3,40 44520 373 5.8 
80S J BW 753 17 
1.038 -28 1284 901 __ 

1222 -31 1.150 1200 32 

M3 -7 804 JKLlij 
927 -21 1.125 838125 

148.70 -2.70 157.40 ttBfei 25 
E42 — 7EE 6B1 12 

B80 — 945 880 82 

2207 -23 3280 2.710 1 J 

TOE -3 734 STB 3.1 
1.710 -10 1.760 1227 22 

426 -94046930 384 — 
570 -10 600 B19 22 

475.20 -3.70 610 471 62 
530 -1 700 510 52 

£000 -6 2.470 1.978 _ 

£34 +7 782 587 82 

2210 -00 2200 2200 12 
423 -3 52S 412 _ 

310.40 -620 877 30250 42 
2286 -5S.12B2JB1 12 

1SCL2Q -6.70 714 18021 5.8 
34720 +40 354 293.10 3X I 
156.10 -2023*5015360 22 
420 — 404 420 32 

490 +10 650 475 62 

804 -2 800 600 65 

1882 -18 1235 1272 OJ 

31680 -20 335 240 33) 
281 -&40 555 Z7117 


NCTtffftLAMDS (Mey 9 / Ftej 


AStMmrOl.lOal 
AG80H 87.10 
MOM 47 
AK20N 21850*1 
AimOpfl 7220 
BobUn 3920 
BoADR 43 
CSM 8533 
DSM 138.70 
DKhPo 102.10 
Bnr ie&d 
H*OpR 1820 


W»R4A7M 

B nn 14120 
Ml 236a1 
HMB6 32620 
8850 
70 
40.10 
100000 7420x1 
MU B7 
SLH 5220 
KHPBT 482001 
HWpfi 40.40 
Ngdyd 79.10 

5120 

78 

IM 6120 
PUi&- 74.T0M 
IttBED 11820 

Rodmco 0040 
Rairc IIS 
Ftorerfl 9120 
RDUX^l 2 0 3.80 
S&XhM 4810 
UnOp 1I8L70X] 
VMI 178x1 
VW30pR E220M 
WMDpfl 1061Q8J 


-Tan Bi.io 47 

+20110208020 89 
+.10 53204820 — 

-5 22816720 10 
-20 8840 0020 42 
-JO 4733 3840 — 
+20 57 42 2.1 

+.10 7790 6420 — 
-420 14810560 1.1 
+20 33120 17110 22 
— 1883816270 1.6 
_ 25 1180 42 

-1UUQ 66 44 
+3358204833 22 
-42015720 123 — 

-1 24U02M.70 12 

+1 3365D 264 3JD 
-1.80 73 4820 83 

-20 0320 7320 14 
+20 45 3720 10 

-30 0*70 74-20 02 
-120 3060 81 22 

+20 5440 4040 12 
-1.16 62 44 02 

-.405720 4820 32 
-20 6320 6820 42 
-AO inn .11 83 14 

+20 S3 BS.75 — 
-1 8920 6520 22 
-20 5720 40 14 

-20 8420 7320 12 
—JO 131 11848 10 

+20 S 58 52 
-20 13540 11R30 2J 
-JO 10020 9120 42 
♦20 2164018839 42 
—40 5020 4020 1-7 
-420 238 18430 22 
-1 30020 10 24 

-.70 6850 4520 12 

-jo ma loun 12 


AMI 12,100 
ncoeai 8300 
SB Br 3460 
SMH 8r 780 
SMHRg 160 
SMzSr 3260 
Sn&PC 3280 
SndzflD 3270 
Sehrtl,750ri 
Sutzfio 900 
SnBA XU 
SwSUtalKUQM 
S«ne6r 810 
SwfkAg 500 
SWI 738 
urBhfir 1455a 
Wtafta 610 
ZulRB 1420 


-600 1UU 11200 02 
-150 7270 525 08 
-85 2200 1 400 2J 
-301, DM 773 _ 
-8 227 160 _ 
-80 4.440 3260 12 
-46 4J2B0 3255 1.6 
-60 4260 3270 12 
-50 1250 1.460 ZA 
-18 1.100 846 14 
-a SSI 358 42 
-320 258 160 — 
-17 815 610 — 
-0 770 566 — 
—7 885 735 — 
-231203 1.055 2.7 
-10 833 610 .> 
-27 1415 1420 — 


KnaUi 

tank? 


Mrdcrt 


PACIFIC 

annul {Hay 9 /Ten) 


“ GEBMAHY (May 9/ Dm) 


■OfMAYpOsy 3 /Kronen 


mu* B4*M 
mwvajsoMi 
Mow 8.130 
Um 1285 
PanLim 17200 
Plflnx 10435 
FW>I I486 
tfcUd 600 

m ss 

SocGffi Z.700 
SttlflFV 2.700 
Soflra 15.450 
SOMK 1245 
Samar 15225 
TTOM 
IKS 


+501200 5200 16 
— 5480 5200 32 
+10 2200 2275 42 
+5 2.780 2240 4.4 
-6016*014^25 32 
+15 1265 148? 84 

-75 17.350 1/ J60 42 

11400 +22511400 9210 4.1 
24250 +450 38.1 DO ZUM 2A 


2200 — 2430 Z/Oa 44 — CnmtK 


(Mayfl/KO 


640 — 730 SB 24 

223 -4 281 215 2J 

CKIA 287 -3 333 284 14 

Codon 1200M — 7400 6200 04 

IVE12A 128200 -2.000 0U» IS* 04 
945 -81,140 930 13 

338 _ 427 329 15 

EMM? 178 _m?fi 782 5.1 

H£B 615 +5 015 _ 

5150 -10 643 446 24 

238x1 — 278 234 — 

350 -8 426 3E0 22 

LnznB 1,18240 —7.10 1450 1.150 02 
licnvs 271 -8 385 28* 3.7 

BvtlnS 6550) -10 TSUI 698 02 

RadbB B90 +6 737 557 02 

ScvtoA 57840 +40 615 539 02 

SoptaB 567 -5 075 473 02 

Sum* 486 -6 665 385 24 

Tefflem 322 -43315030349 — 

TopOatl 880 ... 1272 IP T- 1.1 

UBUM 211 -7 26720788 43 


BMH 

B&dv 

BP** 


387 13 — Mn*e 


nun (Moys/Mca) 


AraerA 134 

car 142 

HDnA 90 

EnM R 3190x1 
H*t I 211 

KOP 12 

Kmtot 5140 

Kona B 820 

Kyrraon 70S 

IntraA 182 

173 



+1 15418250 14 

-2 178 130 1 4 

— 105 80 — 

+204640 9640 16 

. -1 228 181 12 
-.10 17.40 1030 _ 
+40 66 46 2.1 

— 7D6 S61 14 

♦1 182 100 - 

-8 247 180 14 

-2 250 172 14 

— 268 200 — 

+2 260 1BO 04 

— 465 287 04 

+140 8840 89 — 

— 104 BO 1.1 

-90 102 71 14 

-JO 120 88.10 0.7 

+3 218 180 24 
-.10 81 20 — 

— 2040 14 — 


AGO 177.10 -140 IA7D 153 04 
AOndU 68240 -2 612 544 1.8 

AOMifla 1.180 —301,446 1,120 1 9 

Aflnz 2400 -35 2413 2470 04 

Adana 64740 -740 670 STS 14 
font 931 nr -191.181 887 — 

M«Pt 818s- -1 1 BB> 7E7 04 

BASF 31840x1 -40 MUD 276 22 
*03 -6 610 435 1 4 

388 -2 *88 377 1 4 

37840 -4J040440 330 29 
BoyorH 467 JO -640SJ150 432 11 
BICHBr 825 -350 930 862 1.4 
BaoVfiHSOsI -1150 575 466 Z4 
B'odor 980 +10 960 615 15 

Bacwr 283 -2034150 236 1 J 
BWBk 440 — 528 42D 13 

8WBb 86140 -181405 525 1.4 

CdflliB 1230 +30 1430 1,140 0.7 

00 OteP 925 +5 1430 840 1.1 

355 —340 308 33*91 1* 
comm 260 -3 2SG 239 V4 

DLW 881 -3 60048550 14 

879-1240 914 77150 04 
514 -1 596 443 14 

25040 -12D29150 235 — 

n+*0fc 781 JO —4.10 B8740 747 2.1 
DfdHkh 181 JO +1.70 188 132 12 
Doivta 59040 -840 607 531 14 
Orv* 29340 -640 310 200 1J 
* “ 383 +40 *840 36140 14 

609 -1 518 405 1.1 

290 -6 307 27*30 1 J 

950 +10 605 590 12 

240 +4 245 188 17 

1200 -10 12801.180 04 

IMUP 63040 -140 881 802 1 4 
l*9tz 404 b- -12 *52 395 24 

KdEM 1.118 -10 1 J82 1440 1 J 
35140 -440 38740 M+JB 10 
866 -24 1.099 B30 12 

243 -240 253 222 24 

_ KB am -6 32* 285 33 

“ hdWk 41640 -2 433 383 14 

“ KMISS 14170 -130 16014140 — 

Keefe* 634 +6 639 515 14 

— mud 536 +1 508 451 24 

— KM) 151 -401814011110 _ 

— HfccKW 10840 +40 179 10270 10 

Lamp 6B5 -16 800 673 14 

Lean 760 -20 BSD 695 14 

Linda 93340 -1440 BOO 830 1 4 
UnH 385 +5 410 358 11 

U«n 20640 -222050 165 ._ 

— UdHY 187 -2 218 156 12 

— MAN 450 +840 470 378 14 

— MAN PI 340 +7 387 302 2.4 

— HUMBI 46940 -54048^0 387 1.1 _ . - 

ESI 

— FWA »6 -B 287 210 _ 

— PWOmm 515 -2 53050*50 34 

— Porsdi 860 _ 880 588 04 

— Pma 481 -12D 498 427 2.1 

— RWE 46840 -2205950 420 24 

— RWEPf 370 -240 424 335 32 

— mate 1.440 —41 122D 1 J40 OJ? 

= 

— IWH 301 -1 813 232 23 

= BK tJ "5S+iS l S Si 1 ! 

= B 


Marti 88b) 
BIBS* 181* 
OrtKf 1180 
Dpxaa 156 
amfr 9040 
HUM? 11340 
Wmrl 33740X1 
LfltfH im 
0NO«|] 23940* 
HUOtt 168 
OrtU 238 
RDttA 257 
SaoaA? 7520a? 
SOBO« 78* 
Seta* 480 
Stmt 10720* 
Utter 141 
VMI 39 
W 65x1 


-2 112 
-2 188 
+.10 1840 
_ 157 
+2 114 
-40 148 
-5 
-1 II 



1410 
Bnxrv 875 

CSX 3,080 

Catata 1,090 

C«n 635 

Unan 1470 

Canons 3.170 

CKttC 1J60 

CvAi S41 


8540 1.4 
' 122 14 
31 — 
63 84 


- SPAfll (May 9 / PfeJ 


OOrt* 

Qmdca 

EbraAg 

BVtoS 


ftftrf 

HdCan 


5490 

9480 

3.110 

2260* 

4J40 

14260 

*100 

1.180 

2290 

4200 

101480 

2J9& 

1200 

2405 

1430 

961 

540 


~ Krtpe 


PMW 

sssk 


6JOO 

5,700 

4^0* 

9280 

4275 

183 

613 


Tudor 

lln Fan 


1.728 

1J8S 

841 

1460 

1205 

2286 

2246 


_ 6J90 32D0 11 
-1401700 5200 _ 
-80 3239 2280 84 
-60 3^00 2490 7J 
-10 4JS0 3273 42 
-100 17.706 I on 24 

-eor^saiffio 18 

-10 1235 70017 4 
-7OU731410 IS 
+150 4470 1400 34 

-im rifle 1&20 2.1 

-io 1719 loan *4 
-SO 1,775 1280 1.7 

— 32B014S5 10 
-120 1100 1140 22 

-81,100 855 _ 
-1 719 418137 
-351140 8200 14 
-171.210 921 — 

— 1300 4200 22 
-100 7230 1400 24 

-5 82001510 10 
—220 1 UEO 0,710 14 
+20 4200 3260 IB 
-4 217 102 _ 
*12 622 351 12 
-8 815 810 IS 
—46 4260 3200 14 
-60 2.165 1486 34 
+10 1,415 850 14 
-8 739 678 72 
-60 2.400 1. *15 84 
-fl 1.425 1.190 5.7 
-40 3.120 2315 22 
+6 1160 1250 12 


_ D'OSBU 


UTcAtfM 


OaavJp 

Doomha 


R£Bk 2J28D 
FdOB sm 
FlE 2.170 


- swaioi (May 9 / Krooal 


HUNCE (May 9 / Fn) 


604 


678 




s 

Au 1253 
BC 1*90 
BSN 848 
BNP 2S7 
Ucafe 550 
Sonom 1300 
873 
1J38 
canot+ 960 
ConGon 109.50 
CnMUa 18020 
Crtour 2248x1 
Casino 18520 
Dram 12 17 
CUMM 440 
CCF 24120 
CrfonF 1.157 
DLyQ 512 
Crtocf 40140 
OKtt 674 
Omul 5260 
OocW 710 
oatun 403 
fflF 900 


-4 079 
+2 ms 
+3 BOB 
-8 813 
-361249 
-61.435 
— 1202 
-4028860 
-11 683 

+30 1760 
-12 787 
+431.480 
-81.155 
-soctsn 
+40213M1 
-23 2.195 
-140 205 
-371270 
-5 448 
_ aoaso 

-1 1265 
-13 B56 
-5 488 
-6 737 
-001160 


482 _ 
505 13 
778 £4 
855 10 
1.280 22 
1254 12 
830 £4 
240 — 
537 17 
1045 24 
882 22 
1,111 34 
935 34 
15640 62 
1(6,10 — 
1413 11 
181 44 
1221 34 
348 24 
2SU0 14 
14B4 44 
600 24 
400 _ 
5*8104 
5220 0l7 


ssr 

— VWPf 


525 — 

288 -1 
34440 -540 
52040 -140 

373 —2 367 

305 +3 415 

467 +1 51140 

51840 -420 954 
412 — 443 

933 -2D 055 

240 _ 270 



ABAA 

aoeri 


485 

381 £5 


ASAB 

38781 

-1 

465 

385 £6 


AsoaA 

645 

-7 

660 

540 1 J 


Asm a 

843 

-11 

860 

438 1 J 

_ 

AatraA 



700 

127 _ 


AotraB 

193 

-3 

104 

145 _ 



AOaaA 

51 Sal 

-18 

543 

400 1 J 



AttMfi 

515ri 

-15 

5*7 

406 1 J 

mmm 

BT»B 

42Sm 


<77 

282 IX 

— 

EdcaS 

346 

-S 

368 

200 1 J 


EsWlA 

120 


134 

101 £1 

-*■ 

EUCflS 

120 

-1 

134 

IDT £T 

— 

EkittruS 

374 

-2 

440 

340 IX 

— * 

HSUS 

406TO 

+12 

410 

2S1 IX 


- nmurfltoyB/Urej 


BOMB) 5J30 
BNUAB 5,185 
Bftxne 2.100 

Bnxt 205 

BnSn £7.700 

Bugo 11450 

cn 1050 

B I5§ 

CU=ta 1470 
era 2486 
DnM 






Ecco 
BIAqu 41840 
BIACt 342 
BBan 843 
ErBSay BOB 
EfDCU 771 
Efedb 741 
B» 3215 
EuoTr 2-030 
Ert&CS 675 
BxOM 30 
Rrnfl 148 
FonOLy 805 
Ffinflol 1180 
GTlflrt 450 
SillJf 2478 
EBOfl 787 
G-pnya 609 
Havas 44740 
lmoM 602 
ftwrfr S56 
Immtaiq 870 
InPIra 9545 
mu 507 
sane 094 
LWH 884 
LolCap 45140 


+720 439 381 12 
+2 980 760 24 
-10 2284 2220 22 
-28 760 630 Z1 
-2 43*5038520 4.7 
-140 302 328 _ 
-27 1.127 838 34 
-21488 BSD _ 
_ 865 740 _ 
+8 830 885 U 
-5140)2.750 24 
-ZQ 2280 1465 32 
-B B07 584 24 

-1.85 3175 28.75 £3 
-1 182 135 12 

_ 838 800 14 
-20 8420 *.M» 04 
__ 578 442 13 
-20 2.754 2492 06 
.-1420 783 14 
+22 645 556 24 
— 1.10 4SHB0 420 2J 
+7 880 568 22 
_ 718 550 _ 
-101478 851 54 
-146 118 94.10 12 
+3 570 500 86 
+5 701 500 5.1 

-28 954 72T 24 

—£60481.90 436 34 


Farffn £ 

FM 7410 
Ftwrr 4J2S 
FMfe 7J30 
FOTSOO 17250 
GmM 14*6 
GenAss 47460 

4415 

28.100 

— moo 

Wkfe 10415 
HOcoi 18420 
ttnoa 5450 
uNfe 17^0 
MadBnc 11200 

Mortaa 1256 
UK 
6470 

er 

FSnaac 11.480 
sraroa 8480 
4430 
876 
8420 
8400 

4.100 

SPoata 11450 

sn 11*60 
BMaBP 2470 
ToraAs 35200 
Tctft 24^0 
UrtEom 11600 


+30 1405 4410 
+185 5473 3J510 
-30 2JS5 1.778 
+1150 211 76 

+400 2&190 25400 
-M0U18D 1110 
+90 3486 1484 
+B03J001450 _ 
+10 2495 1492 — 
+ 514201498 — 
-26 2420 £140 12 
_ lieoo iojqo _ 
_ 2430 1 JOO _ 


34 

: ■‘3 

I 14 
14 


8CAA 

SCAB 

8KFA 

SKFB 



Pnitnlifl 

EEBr* 


sytflaA 

fSF 


cum 

rep? 

1*0 


— Ptaeu 


SB* 

8*8 

8TET 

SatlaA 


-20 7496 4471 
-55 4420 £.118 
-60 72801679 
+34on.75o lucn 

— 1485 1438 
+850 47 JSD 3730 
+165 4445 2475 
+100 2840015200 
-100 ttJG0 12.100 
-155 linn 1300 

+5017400 10JJTO 

— 1440 4471 
+520 lADflO ISJ* 
+200 19.700 13,410 

-1414*9 870 
+403.140 1416 
-301100 3410 
+25 3485 1470 
+I4ED3U00 23400 
-1012.160 BJ86 
+4010300 7400 
-100 1195 3483 

+4 1430 490 
-120 1350 4485 
+70 7 JOO 4,145 
+190*480 2476 
—40 11JC0 1CL000 
+70 11900 9jm 
+45 £700 1462 
+1400 S300 SJW 
+350 28(30 2QJE0 
-000 11700 lOJOO 


3flid — 69 4430 24 


200 

200 

300 

1Z7 

128 

12H 

125 

15B 

158 

126 
125 

52 
128 
188 
420x5 
428*1 
106x5 
101 ir 
Bfbr 
112 
712 
710 


108 1.7 
108 1.7 
121 £7 
119 £7 

130 ... 
133 £7 
. 108 _ 
-6 142 640 — 
-50 734750 _ 

-1 19620 124 11 
-3 233 171 1.7 
+4 475 384 14 
♦2 460 360 1 5 
-1 144 8750 44 

-a no »i 34 
-a 112 93 34 

♦1 114 7B 18 
-3 728 330 1.1 
-4 726 525 1.1 


{Msy9/FH| 


2*3 
645 
AUJ?a 646 

Be? Ha £450 
BrfMr 1J7D 
Brflufln 240 
CSBf 558 


cuofia mao 
a*ar 366 
QvM 1475 
F5KXB 1.420 
ftboBr £740a 
UdbW) 885 
Hvrta 886 
Jrfen* 790a 
JoUnRg 152a 


1400 

1485 

148 

1430 

4500 

210 

1J2D 


-4 292 191 — 
-10 890 588 14 
-18 688 567 14 
-» 3465 2^40 14 
-6512401415 14 
-B 260 190 14 
-26 763 558 32 
-10 9711 BIO 1.7 
-16 942 776 1 4 
-2 422 383 — 
-15 2400 1,875 — 
-801410 1400 24 
—10 2432 £535 ZB 
-as 1400 S75 1.7 

— 460 386 24 

-40 S71 782 14 

-2 172 14340 14 
-16 981 875 12 
-20 1400 1.400 24 
—45 1,437 1485 £3 
-3 17313040 — 
-101.720 1,430 42 
-300 5440 4.470 — 
-16 283 207 17 
-012401,170 — 


— 1,429 1 JOO ._ 

-0 610 488 ... 

— 1 JOO 991 04 
+10 1260 97B — 

+10 1 JOO 891 

1.760 1470 — 

-18 744 583 12 
-101,410 9*C—_ 
-4 S34 402 14 _ 

— 1500 4200 — - 
-TO 5480 4470 04 _ 
+40 1.190 1430 ... _ 
-10 ijso 1.100 _ _ 

+9 7B2 sao T J _ 
+101220 1440 _ _ 

+2 E75 410 05 — 
-7 487 380 1.1 
-10 879 SSO _ _ 

-3 986 BS 

-20 1410 1J50 14 _ 
+2 881 416 _ 

— 3270 £410 _ _ 

-10 1.180 842 3.7 _ 

+5 633 438 _ _ 
-20 1.730 1530 _ _ 
+20 3.220 7590 —408 
+10 1 .300 1420 14 — 
-I 500 315 „ _ 

-8 *22 337 12 _. 
-1 960 841 _. _ 

-10 1.440 14*0 05 _ 
+2 600 571 14 _ 
+50 2470 2420 _ _ 
-TO 1230 1.170 _ _ 
+10 £730 £510 ... ._ 
+10 1.450 1210 _ _ 
-8 960 804 04 — 
+1 886 788 — — 

— 60S 410 _ _ 

-6 618 307 — — 

-20 1479 1.420 — _ 
+3012201460 14 — 
-20 2420 1.720 — — 
+10 1510 1.400 — — 
-7 885 580 ._ — 
-30 1,120 800 — _ 

-14 910 S61 — — 
-6 540 415 — — 

— 1J7D 933 — — 
+40 1440 1560 — ._ 

-3 400 345 _ _ 

— 1280 979 — _. 

— 815 697 04 — 
-3 1470 951 — — 

-10 1.710 1290 — 70.4 
-101420 1230 04 — 

-58 i m i non si 

-8 706 546 14 — 
-1 588 408 

— 1480 1JS0 _ _ 
-10 1480 1.720 — — 
+101.160 883 ... — 
-80 4440 3400 — - 

♦9 686 521 04 — 
-10 2270 1420 — — 
+3 S28 448 — — 
-10 2480 2400 — — 
+8 700 595 14 — 
-5 42S 27S _ — 
-Z 564 360 _ — 
-2 1440 719 — — 
—10 1270 980 — _ 
+50 £600 1480 — — 
-101.110 841 _ _ 
-14 740 614 — — 
-0 933 787 — _ 

+30 1290 1.150 — — 
-IS 906 429 08 — 
-20 1260 938 -- 
-10 639 440 — 

-1 72B 602 1.1 — 

-1 640 585 — — 

-6 52S 438 _ _ 
40 7B0 650 — — 
♦101.120 785 _ — 
-7 SCO 397 1.7 — 
-IB 919 678 _. _ 
-6 9*0 B28 — _. 
-00 0250 5.700 — - 
—1 666 566 — — 
-6 8B2 812 — — 
+4 869 712 — — 

-23 980 820 — _ 

— £260 1.510 — — 

-10 1.180 830 

—4 734 502 

—7 509 497 

34*0 £550 _ _. 

^ 484 423 _ - 

13 ^ais - r 

+281400 1420 — — 

Z 

+101400 1460 _ _. 

— 473 383 — — 
+34 965 52S 04 — 
+21 HZ5 723 — — 
-30 1.140 972 — — 
-20 3470 £790 _ _ 

-0 421 £51 — — 
-10 1490 1270 ._ 

-6 441 292 — — 

— 506 346 — 

-1 714 522 — — 
-1 810 792 12 — 

-1306.150 3460 — — 
-8 741 420 _ — 
-60 1430 1.730 _. ._ 
-1 780 528 — — 
+3) 1J27 1210 04 — 
-9 418 284 — — 
-10 733 60S 17 — 

— 484 388 — — 
+18 886 478 — — 

— £110 1410 _ _ 
+3 386 288 — — 
+3 848 690 — — 
+2 828 431 — — 

+101,140 822 04 — 
-10 £500 2250 09 — 
— 13.400 ltMO — — 

— 1280 1210 04 — 
-3 1430 825 — — 

-3014801480 — — 
-10 £482 1418 — - 
+8 405 348 — — 
-4 700 518 14 — 
-4 517 430 — — 
-24702480 — — 
-4 515 4ZS — — 

— 1210 1,160 — — 

-9 442 338 — — 
-1 380 Z71- — 

+7 388 303 — _ 

-8 720 801 — — 
-2 816 SIB _ __ 

-19 970 825 04 — 
-10 1438 1403 04 — 
+1 877 804 — — 

— 1JBO 1.130 — — 


UM 910 — 650 740 — — 

KtfCBa £020 -002,160 1.700 — — 

KBkuyo 2220 —£480 £150 — — 


1460 

1440 

1250 

1.160 

3220 

892 

640 


— MMCC 1420 


iISS 


SET 


P*TrB 1450 
WJWisa 1430 



-11 875 732 — 
+11 713 BOS . - 

-*840 846 — 
-3 704 581 — 
-4 630 423 14 
-2 470 318 — 
-101.1601410 — 
+16 5M 408 — 
+ 10 £730£2H1 
-10 7.030 5480 ... 
-fl *81 373 1.1 
-6 868 7B9 — 
-31450 905 
+10 £860 ££20 — 
-7 782 638 — 
-10 1480 788 — 
-201240 see 08 
-10 758 512 — 
-10 £160 1480 — 
-1 533 428 — 
+11 870 780 14 
-1 408 371 — 

-20 1460 1,420 12 

— 1420 1 JOO ... 
-101480 1200 _ 

— 1220 090 14 
-30 3290 2J20 — 
-10 850 711 _ 

— 544 397 — 

— 882 885 — 
-1* 873 567 _. 
-13 780 582 17 
+10 1240 1400 0.7 

♦1 750 480 — 
-7 533 aaa _ 
-10 1J30 790 0.7 
-20 2.010 2200 _ 
-10 1200 1420 _ 
-1 628 620 — 
+10 1,190 BOS — 


-1 721 603 _. — 

-2 523 42S — — 
-S 525 304 — — 
-1 809 796 — — 
-31410 842..— 
-4 070 407 — _ 

-3 719 560 — _ 

-3 527 407 — — 
+8 418 318 ._ ... 
-IB 640 395 ._ _. 

-10 1420 1.140 _ _ 

♦10 1.51D 1.450 — .. 
-5B48 4M__ 
-0 005 S72 — _ 

-1 36* 301 — — 

+20 1,420 1.100 OJ 
-BB80 755aB_ 
♦1 429 378 — 

-1 401 3*7 — — 

-12 889 578 ... ... 
+12 940 770 a? — 
-4 415 310 —714 
-101200 Mfi — _ 

-6 1430 790 — 

-20 £230 IJOO 03 _ 
-1 782 810 — — 

+0 1450 859 — — 

-40 £349 1483 04 

+2 824 495 04 — 

— £4602400 — — 

— 4440 £820 — — 

-10 1.100 850 — — 
-101.170 986 ... — 

— 12701420 — _ 

-0 665 395 — — 

— £74 231 — — 

-19 798 SOS — — 

-3 754 528 12 — 
-1 70S 403 — _. 

-3 474 315 — __ 

-S 900 711 

-4 973 781 04 — 

-4 see 500 _ _ 

—20 £0801450 — — 

— 1450 1.430 — — 
-14 81 5 680 — — 

+9 788 828 

-12 507 400 04 — 
+10 725 579 — — 

-3 485 412 _ _ 

— 1,420 1.060 0.7 _ 
-181.100 856 — — 
-40 7.500 6.1 50 _ _. 

— 5430 4.680 — — 

-ID 4fl2 318 _ — 
+20 2400 1610 — — 
-20 1440 1 J30 .. _. 

— 1.110 837 ... — 
-6 779 702 14 — 
-9 B20 460 — — 

+20 £180 1450 04 — 
-14 850 328 — — 
-11 700 478 — — 
-101.680 1.480 04 — 
+7 780 663 — 

-4 703 508 — 

♦12 665 484 _. 

-20 1290 1480 14 — 
-6 617 450 — — 
_ 1J00 147D 0.7 - 

— BIS 441 — — 
-4 1.110 808 — — 

— 1420 1420 — — 

z :: 


Statu 

gnu 

snwuu 

ShwOan 

srwBW 

Station 

snwsns 


983 


— Town £010 


J5? 


YmTrtti 


1,050 


-S1JM0 840 — — 
-10 12801.140 ._ _ 

— 12601.120 — — 
-8 635 505 04 _ 
+5 548 411 „ — 
+4 372 256 — — 
-5 700 &00__ 

— 623 481 — — 
+3012001,110 — — 
+30 24202240 — ... 

._ 750 700 04 — 
-90 0.*6O 5.440 ... - 
+0 787 618 — — 
+1 673 425 — 

+20 £290 1400 — — 
-5 573 432 _ _ 

-2 510 404 _ — 

-31X170 837 - - 

1480 1280 _ _ 

-7 *38 360 - . 
-3 412 288 - — 
-5 1.010 851 OJ _ 
-6 308 292 - — 

*5 963 864 _ — 

-1 730 611 1.4 — 

1,030 BI5 — — 

+50 1 400 1,090 — — 
_ 814 674 _ _ 
+20 1.480 1460 — — 
+«0 4.790 £780 — ... 

+2 748 810 - ._ 
-40 £210 1470 14 — 
+3 7E 571! _ 

-8 862 679 OJ — 

-50 1.4801470 — ._ 
-1012+01490 - - 
-3 14*0 887 _ — 
-5 506 400 — — 
+8 7G8 618 14 — 
-8 1.100 705 0.8 — 
_7B0S86 0J_ 
—3 555 397 14 .. 
-1 720 602 — — 

-12 831 670 — — 

-7 907 533 — — 

+1007120017200 — — 
-JO 3230 2480 — — 
-1D12B0 1.1T0 — 

-11 50* 328 — ... 

— 612 415 — 

-20 1480 1.190 04 ... 

+3 682 421 .... — 
♦301.720 1.460 — _ 

+30 £020 1410 — _ 
_ £200 1.570 — — 

+10 3.5*0 3.050 .. ... 
-80 3.480 £740 _ _ 

+1 670 *91 — — 
-6 700 520 — — 
+30 £720 £200 — — 
-10 1450 l.BSD 0.7 — 
-4 860 450 — — 
+0 B29 887 — — 
+9 730 686 ... _. 
._ 1450 1.480 ... — 
_ 1,4001.180 — — 
-8 714 STS — — 
-t 611 870 — — 
-3012601450 — - 
-3 588 433 — — 
+157* 800 — — 

— 400 285 — — 
-10 £090 1.770 — ... 

-0 570 421 14 — 

— 1410 1.430 —624 
-3 659 513 — 

-10 733 524 — — 
-no £300 £880 — — 
-ao £120 1760 — — 
_ 448 330 — — 
+101200 965 — — 
-1 505 330 — ... 

— 9W 432 — — 
-2 510 345 ._ — 

+10 333 285 __ ... 

-4 385 272 

+20 1 .800 B35- — 

+10 1J30 1.170 1.1 — 

+40 1410 830 — — 
-36 MS 820 — — 

+1 930 692 04 — 

_ £2301400 — _ 

— 1410 1450 — _ 
-3 1490 800 — — 

+20 14*01.110 — — 
-10 £290 2410 04 — 
-10 14S0 1.180 — — 

— 463 350 12 — 
-3 848 727 04 66.1 

-?S**734__ 
+5 see 780 _ _ 
+1 909 850 — — 

-1 854 628 — — 
_147D 860 — — 

+10 1.15D B21 — . — 
♦1 725 442 _. — 
-0 858 488 — — 


Mrilne OB -42 £50 646 14 __ 

WtMd 745 — 842 7.40 IX __ 

VWTTr £42 + 02 £8& £31 34 . 

Witaac 4.75 - 545 449 £5 ... 

MbmB‘1 438 +43 4.73 £70 14 ... 

£04 + 03 352 23* £0 - 


HONGKONG (May 9 /H.K5] 


ArooyPr 


WhoOn 


-45 13.60 945 £6 84 
-23 502840 £3 21.7 

-.10 15.70 1040 34 ... 
-1 52 33 JS 24 . . 

-125 57 37 11 362 

-2 81 58 £7 674 

-.40 14 645 

-.JO 2720 1840 1.9 - 
-.10 18.10 18,70 34 144 
-.40 1620 1040 04 ._ 
. . 80S 4.17 £7 .. 
-26 45 2940 1.7 __ 

-140 131 80 £1 .. 

—40 21.90 1120 44 344 
-1 8040 47.75 3-6 17.8 
+.10 13.30 ia40 04 £8 
-.10 840 5.10 4 8 
-40 6050 3526 58 _ 
--30342914.40 £4 214 
-.40 1640 1040 14 7.1 
-1 54 37.75 2 A 184 

-.30 35.50 2040 4.1 — 

-40 31.75 19.10 04 — 
-40X25 19.40 £3 22.8 
-40 17.70 12 3.4 _ 

-JO 1040 845 64 ... 
-JO <240 2740 £4 _. 
-.*0 3£2£ 1SJJO 42 _ 
+.10 13.10 740 44 _ 
-1 8440 4B.7S 0 * _ 

-1 38X0 2440 OA 
-.10 25 1280 216 232 

-05 12.50 920 OX -- 
-40 4£50 21.10 44 7a 1 
-40 X X _ 01.1 
-a 77 42 34 5£7 

-JO 16,50 11 £4 *5.0 

-43 615 3 75 32 142 
+.10 16X0 945 114 37 X 
+43 £45 £80 64 ._ 
-45 7.00 £73 BX 
_ 71 50 £2 194 

-.151120 a £7 144 
+40 35.75 23 £7 __ 

-40 41 26 24 _ 

-40 23X0 1* 90 — _ 

-JO 1640 11 JO £0 _ 
- 40 17.40 10.70 7.4 


34175 I 
820 I 
23300 , 
49100 1 
1X850 ' 
6515 1 
2*SW ' 
528348 I 
404842 I 
457181 I 
4000 I 
118396 1 
29176 I 
1600 I 
16300 1 
8920 1 
2*00 I 

IDO I 
103 I 
6HM0 I 

31066 I 

07515 I 


66 -4 89 06 

400 -1 410 400 

?*j S7J? 7* 

235 -S 2*0 235 
IT 7 * -IjSIWe 171* 
15*» -!« Srt dlMi 
22S — *o 823 Hia 

2B»i -1 5295 «E9 
2* 1 . 

201* -iciieWa 
15 SI 5 14k 

12 -J+Sifli llS 
24 -1**341* 2* 
24*? -*i S25C4IJ 


21 

185 


snk <ri 

185 IX 


83 

X 

445 

20 \ 

29J.' 

ISO 


13686 GudC 
200 HarSM 
100 HowkSd 


MALAYSIA #lay0/MYRI 


344 -28 840 344 22 

Oentng 2BX0 +X0 38XO 25 04 

HLtfead 18X0 __ 1740 1340 OX 

1460 -XD 1840 13JD 04 

£70 -.14 630 £40 14 

MuPup 4 -JO £20 £58 0-4 
*42 -46 645 £52 £0 

820 -45 8.40 540 32 


328872 rmPa 
84022 WnpvP 
7120 IMKB 
121538 HiotG 
122635 hacaA 
3442 Jnrack 
50 harrAd 

171 Ltvae 
13200 lom 


-1 SE*? 32 
$63 83 
-5 X » 
-5 450 440 

Wins 
-!Wh » 
. — t 150 150 
247« -ivsnl, a?M, 
7** -kS*i 7S 
15 15 16 

485 495 485 

18k -Ik SCI AM, 
7 ->a 57 0-» 
7 -kS7k U7 
53k +2k ftik 52 
)0k -1* ElOk 10 
16k SlEk 16k 
15k SWi 15k 
10 SID 10 
37k -kS37lj 37 
Bk — k *6k 8k 

22k -k*Ek22k 
14k Si4S 
25 k -1 srnnk 
71 -kSTIk 71 
8k -k»*0 »k 

ta5 ^>1 (ni 1QU 
Bk S8k Bk 
J60 -20 075 360 
B>) S22W 22k 
12k -kSUkOT?i 
17 617 17 

46 46k 40 

19k -kSIBk 18 
425 -: 43u 42s 

11k Ilk 

22k -kSEVSEV 
<5k -kSIHi 15k 
12k -kiin* 12k 
151, -k SI5U 15 
18k -k SITS IBk 
il< 18k 
,»k 
. j as 

41k -ktckdiis 

32k -1 »k 32k 
-k£ii 7> : 


3+00 
30500 
23130 
8352 
1406 
1220 
148350 
3825 
08100 
271674 
78815 
182000 
3540 
101500 
22500 
21484 
11700 
113031 
223471 
204 

298826 

378804 

198131 

217021 

400 

2987150 

1500 

17X 

X13 

300 

45500 

1350 

200135 

1750 


Scrip 

3AC 

Sanaa 

SHIN 

SU.WA 

Scaptfl 

SeaaH 

Scqpm 

Same* 

SM0A • 

SWlO 

SHLSy 

scram 

Safe 

SWCO 

71008 

Twa£ 

Tockb 

Ten® 

lean 

Tana 

Thuntji 11 

TioOtyn 

TracnP 

Titat 

Timac 

troca 

IMP A 

UCtop 1 

IndOom 

Unto 

Wcorp 

WCB 


WOGBlG 


11k *»% Hk 

20 SSO 20 

22 -1 22 22 
14k tflCj 14k 

loi —a. nn ion 

13 -k P3 13 
?k ♦kt^k 7k 

* A 

41 +*0 Hlk 41 

Ilk -k Silk 10V 

8 -k $9k a j 
18k +k Sin 18k 
i7k P6 irk 

■a =%S9SaC 

31 k -JjOtVJik 
23k -kCOUZSk 
19k -kSWk 019 

17 -k 61 7k 17 
10k +kSlOV 10k 

-cSiS 

18 -knik 17k 

13% -k SMb 13% 

16 pfi 10 

X -18 42 025 
22k Sell 22k 
34k -l«EUk34k 

Ti 

18k -k Slfl 18k 
23% +k S24 73k 
»j -iksak seii 


MONTREAL (May 9 /Can 9 
4 pm close 


83708 BntXdB 1 
16010 BUCKP 
39825 ConUD 
24808 Csoxta 
300 CnMm 
100 G7CB 
40230 JCoubJi 
B350 MIF+ctl 
70113 NttBAC 
1400 ODCOTA 
13852 UnM 
6712 Vutm 


21 

17 

% 

11^ 

e t5 

.53 


+ k SIS Ilk 

an ick 

-k ^ 
Silk 11k 


IB 1 : — k SUk 


AFRICA 

SOOTH AFRO (May 9 / tend) 


56% E\ 


SDEAPOBE (May 9 / SS| 


77 La 


DBS llJOsi 
fWJTv 18*0 
£72 
£18 

. Sji 

Kogpri 10.90 
oafc 13 x 0 
OUD 7.15M 
SAfeF 12J0 


CflOT 9.48 


4.18 

1030X1 


__ 1£70 
-.10 19X0 
-.08 £46 
-.02 358 
-.15 CX5 
+.10 1240 
-JO 1870 
-.15 9X5 
-.10 14.10 
-JO 15X0 
-.04 346 
-.12 4Jfi 

+42 520 
— I£10 


1050 1,4 
IS 0.7 
£40 3L1 
£98 £5 
442 52 
9 14 
11 IX 
5X0 04 
1040 14 
1X10 £1 
£14 ._ 
£16 £8 
IBS 14 
9 £7 


402807 LacMn 
2050 IdarM 
138050 idnSi 

88800 LOttaw 
353475 Madau 

281720 Martdts 

56195 MUST 

50000 MXOCA 

1800 MadnH 


Bk 

29 - 

30 tanask 

14 +k P4 13k 

18 -kSIH 016 
7k -k V‘l 7k 
16k — k Silk 15k 
23k CVi 73k 
3ok sap. 30k 
15k SUkdlSk 
20k -k SSI SOk 
11% -ksi:<( ilk 
Bk -k$8k 8k 

Bi. — k Bk 


224451 

12980 

33004 

*5090 

380*4)0 

15065 

40010 


EKf? 

UKMoIX 


NORTH AMERICA 


TDKlNn>(MBy9/Can9 

4 pm dun 


37772 

S181D 

1800 

12200 

3 13467 

27877 

663191 


Mhgto 

nnc 

S3? 


nSm 

Fragol 
. . Goncor 
13k GFSA 
28 htamviv 
17 HdM 
•k HiM 
57 ECOR 

sss 

55k 6 llwfc, 

lOJMk 
a 525 24k 
118 115 
8% -k 59 dB 7 i 
71 -IkSTTk 70 
5k S5k 5k 

12k -kS13k 12S 

24k — k SHk 24k 


»*■ — k aS 

»K -"FA * 

30 +2 30 

57 -2% BSk S 
12k -kSITjdITk 

10S 


ABSA 740 
AEO =8 

Aided 110 
AmcoM 1C1 
AngAm 227 
AmgaM 388 
«D<04 125 

BortaW 4025 
Bonn 2£50 
Buttol 42 
OMGM 4.10 
DoBCon 106J5 
Doola 760 
Dnem 56 
Ergo 9 75 
EfendC 24 
39JSOI 
115 
80.50 
0.55 
too 
2325 
20 TO 
29 
£39 
0650 
91 
74 


*10 


♦ITS 


HUM* 

Nedcot 


AUSTRALIA (May 9 /AlsS) 



isSS 04 Z 


K 


+s 


JpXfcd 1,130 

7?fJT 

KDO 11,800 

r i s 

KMoflll 1^30 
Knfedo £290 


2J9? 


£120 


-1 505 385 _ _ 

+10 1,370 1460 04 _ 
-1 530 349 _. 

+8 334 7Z7 „ 

-50 1470 1240 — _ 
-2D 1X20 14170 _ _ 
-is 9oz aoa _ _ 
-5 461 323 _ _ 
+20 1,140 815 _. _ 
-2 500 401 _ _ 

-13 1. MO 810 _. 

-40 3000 2X90 04 _ 
-201.710 756 _ _ 
-6 342 264 — — 
-10 1.540 1230 _ 

+20 £410 1.790 OJ _ 
-9 «7 ESS _ „ 

-T 809 711 _ 

+3 773 562 — ._ 
+11 1020 887 — — 
-10 6S0 533 _ _ 

-» 885 575 _ _ 
-141.110 655 12 — 

1,140 880 ._ ._ 

-» 1420 1^60 _ ._ 

-6 620 <80 _ 

-TO 5X10 4J70 OX _ 
_ 1X30 1,060 IX _ 
—7 740 060 — _ 
+30 3480 £800 0 A 610 

_ 536 468 

-£ 779 604 1.1 _ 

♦10 32*0 £410 _ _ 
_ 5*1 390 IX _ 
-14 528 440 14 ._ 

-S 880 T05 _ ... 
-2D 4J30 £230 ._ — 

♦aixsoijwo _ _ 

-1* 629 447 _ 

-101X40 1J30 — _ 
+3 6S5 515 _ 

-*02X602210 04 _ 
-10 1X40 1X10 _ _ 
+20 £350 £010 _ _ 
-5 ixoo aes _ _ 
-8S28 41S__ 
-0 901 870 _ .. 

_ 7J80 6JS0 08 — 

_ 9X40 7X10 _ ._. 
_ 4J50 3J70 _ _ 
+20 1,640 1X80 04 

-10 1X40 1XBO _ _ 

-201X10 1260 _ — 
+301,130 950 _ _ 
-20 1.490 1 200 IX _ 
-3 483 Ml 1.1 _ 
— 8X80 7,460 — — 
_ 1.700 1X20 _ _ 

2JB0 3 ww 

+7 945 775 _ _ 
-2022101410 — — 


tss. K2 

Anuta 4jo 
Ml8 920 
taaoo 2X5 
AICBA 4X4 
AuaBLI 4X0 
AM £12 

BMP 16.1 Sal 
BTRNy £B3ri 


s & 


-48 545 £70 
-4411.12 £18 
+.10 £10 £78 
-.1011.90 £10 
-40 £33 240 
-45 5.72 4X1 
-44 441 4.11 
- £55 149 
-.101940 18 

-JM 3X8 £82 
-42 442 £41 
♦XI 7X8 0.64 
-.18 1048 1240 
+45 0X9 0X7 
—42 1.11 0X4 
♦43 5X3 348 
+42 £46 4.40 
+JO 18X2 1540 
-42 3X0 2X5 
♦ 41 3X5 £60 
-03 12X0 8X0 
+48 £70 42$ 
£75 4 2D 
-46 BJB 6X0 
-XT 122 0.76 

n m n Vk 

-.10 B42 4X5 

— 142 125 
-43 1X0 0X4 
+46 £45 2X2 
+46 £98 230 
+43 1-47 1.14 

+ 240 £33 
-42 £60 2X0 
+45 1.76 1.12 
-41 1.78 1.40 
-41 245 £30 
._ 20Z 1.12 
+.17 2X2 1XS 
♦42 11X0 £76 
+X4 3X6 £B3 
-.14 15X4 18.78 
-4* £40 £58 
♦48 1J0 2X5 
+.0210X4 7.7D 

4J1 £70 

_ 13X6 11.12 
+30 740 525 
-.101080 BJB 
_ BJB 4.71 
+.05 zn 145 
+48 4.16 345 
+46 5X2 4XS 
-41 £15 06 
+.11 £43 142 
+41 £42 240 
+.16 ISO £49 
♦20 BJ6 BXO 
+.1S *XO 2X5 
-48 6X6 5X6 
+ 43 1.74 1.10 
-45 S2S 4X0 
+.10 7.13 6X0 
+43 4X2 3X8 
* 7.10 B 
+43 9X0 £10 
+42 3X0 104 

- 3.TO 345 
... 2X2 141 

4X0 £42 
-04 £98 £10 


84 ._ 
£3 944 

12 __ 
32 35.4 
24 ._ 
43 — 
£7 _ 

42 84 

14 2SJ 
34 7X 
62 — 

4X354 
£3 — 
£8 _ 
4219J 

e E 

M 

1J 

52 _ 

15 z 

43 22-7 

Z 14 
1.7 _ 

4X .... 

OX 124 
54 _ 
24 £3 
72 _ 

44 84 

£8 _ 

24 *04 

4X»4 
52 
14 70X 
34 24X 
£7 — 
4X 1£5 
£2 _ 
02 84 
24 

34 _ 
£4 224 
*X — 


52 114 

12 — 

£4 Z 
42 _ 
74 — 
OX _ 
OJ £9 
62 84 
4X — 
54 _ 

7X224 


B87D4 

64660 

30800 

573055 

3140 

113856 

4*0313 

2800 

22800 

12100 

1B423 

52(831 

8848 

1Z770 

5100 

422929 

185284 

$4167 

69758 

1B346 

803510 

80978 

5038 

79370 




EW* 

BCE 

bce m 

869 A 


Oeii d u a 

BracnAe 

Bmcsr 

CAE 


_ +/- Mob Low 

15k -kiiK 15k 
in -k re isk 

15k -4 *18 disk 

26k -Ik KBk 281) 
32k -kS37k »k 
14k -k »4k 1*k 
20k -kCWtCOk 
Bk n% 8k 
25k -kSlrfESk 
48k -k?Wj 44 
37k S37\ 37k 

14k + J «*1*\14k 

2B —4 STBk 02Sk 

2XS —6 235 234 
20k -Clk 2DJ 
13% -k B14 13% 
30k -3 33k 30k 
17k -k S17S 17k 
24% +k $26 94% 
7% — k S7k 7k 
ACTIVE STOCKS: 


14400 

12500 

13100 

7150 

25040 

4D 


PWA Dp 
PfenMi 
PoeoP 


Jg=i:S3i^ 

A 

20k -ksrotfiDk 


3* 

71 

7 

42X0 

32 

23.75 

80.75 
120 

18 


PonCnP 


PetCan 

PMBi 

PDoma 

PowrCp 


7020 

910 

162280 

81780 

118800 

536160 

27750 

3800 


900 FtobmS 

100 Ramon 
183500 ItagOI 
3000 RoadSI 
41824 Ran En 
*7350 Hagap 
5280 Rita 
8950 Rl ‘ 
122490 

716463 fl 

14300 RoiOak 
Monday. May 9. 



Prontip 
flandfei 
RntoOp 
RntoOi 
itariPI 
SnfBoi 
SmDiCG 
SABivm 10126 
SAMlWUn 30 

saw 137 

BOOM 54 

IngMJ 45 

Warife 386 

WAroa 41 

IV Deep 164 

WMdn 06 


+ /- MW* Im M M 

+.30 8 £70 £7 ... 

.. 20 17X0 £2 _ 

110 8350 2 9 .... 
183 115 2.0 . .. 
+5 246 182X0 1.5 ... 
+ 13 425 3*4 14 .._ 
+3 12$ 102 OB .... 

♦ 126 57 26.50 

+1 31 20.75 33 

_ 55 42 74 . . 

4 JO 3 56 — .„ 
. 118 87X0 OX 

« 45 1025 £80 I 3 _ 

.3 50 82 48 2.7 

♦40 1125 7.25 51 
.1 31 240 4 2 — 

+.76 *025 JO J.B — 
+7 115 8*40 DX ... 
+2 75 80 53.75 30 - 

+40 1025 7.94 4.7 
+ 1 1 1B 87 50 £0 __ 

. 2750 2325 .. 

+.75 28 1B.75 4 6 _. 

+40 29 16 1.7 .. 

+41 3.60 220 1.8 — 
+X0 72 55 2.1 

+2 96 78 IX 

+1 41 8350 3 3 . . 

+.50 58 50 41 £4 

♦5 S5 75 1.4 ... 
.. 22 15.50 ... _. 

♦ X0 3450 26 1J _. 

._ 71 58X0 74 

-. 7.75 5.80 ... ... 
- J5 53.50 37X0 £4 ... 
-25 3475 2025 1.1 ... 

+1 24X0 18X0 1.1 _ 

+125 90X0 72 £0 _. 

— ISO 87 £0 _. 
+J5 1925 15X0 74 — 
+£2510125 79 2X — 

.... 40 26.50 12 

+4 164 IDS £1 — 

.... 68 *3X0 1.3 ... 

.... 45X0 28X0 14 _. 

+10 490 384 £8 _. 
+1 4250 33 ... _. 

+1 215 155 £4 ... 
+1 BO 45 42 — 


>jjj 

415 -20^3^ 4^5 

mi 

6 -k 56 B 


M01B - Wets <oi Bdi pag* wo ■> outod aa na 
MOMnWgaitniadibaMH 
■afcas TOtcAjM n (a im. aaa TmmB 
Moiwt iDMft a nuriap uynUd m E» 
■Mowd ic U u* tan » brnpai a b M 


FT FREE ANNUAL RS’ORTS SERVICE 
Huaa aWi taaml mud npatifd caaua 
nawM f up wi 7ig onoar w on tm 

J0Z£ tMUi n Xobl 0 rtfeig knw eWMb W. ttd 

*44 II no 0770 a to -44 01 710 X2Z. OWg PI 

AMlBiMmMHWiaNMviMidO 

dtataoa 
ana ana 


1904 



Stocks 

Ctosbig 

Champs 


Stacks 

Closing 

Chengs 


Traded 

Prices 

on day 


Traded 

Pricss 

on day 

Brother Ind 

4.1m 

675 

+2 

NKK Corp 

1.7m 

259 


Kawasaki Steel . 

2Sm 

377 

+7 

Mppon Paper 

1.7m 

665 

♦12 

Nfc)pon Steal Carp „. 

£3m 

349 

-2 

Japan MU A Cham — 

1.7m 

662 

♦16 

WakachBa? Const — 

Z2m 

667 

-3 

Itochu Corp .... 

1.6m 

689 

-1 

Nippon Chendcai — 

1.8m 

805 

+61 

Japan Steel Works ... 

1.6m 

359 

♦3 


1 INDICES 






|us INDICES 











9 6 5 

Ntfi 

tow 

9 6 5 

w low 

6 5 4 90 Lm 


Ganaol (29712/77) 

M 

1903126 1957251 25470X0 16/2 

1775590 2W4 

Anferik 

A* 0nfemk^l/1)80| 

wra.i 

2004-3 

19861 

294900 3 IZ 

19B£10 SIS 

MMW«1/V80| 

931 X 

9134 

9045 

TU610 3/2 

99(00 » 

Oh* AflfienO(yiaB4) 

41144 

42045 

421 J3 

486X6 32 

41364 06 

Ttaad todBOTUm 

105186 

107621 

10940 

T2Z22B 1/2 

T0S3J8 05 

BBJDflflAli 

1S2M2 

152689 

1533X5 

1542X5 912 

14BZ7R SOP 

Brad 

Bnama (2971283) 

« 

15103J 

144790 

17257X0 35 

3BOO.RO S/I 

era 

**aas Mto4(i975) 

M 

3541X2 

35203$ 

367859 1W3 

329006 2DM 

Qri4*raa+p97S 

M 

4254.10 

4259X1 

460990 230 

4MB60 2V4 

PDntltt)§S (4/1*3) 

M 

1957X9 

197356 

218250 1/2 

191337 18/4 

am 

PGA Gm PI/12 m 

M 

41201 

41 KX 

4667X0 4/2 

380120 4/4 

OapanhagaiSYI/Bq 

37544 

377.10 

377X4 

41GJ9 2/2 

37074 3 fl 

fUad 

HEX Gaaanipanzm 

1B0BJ 

180B5 

1607.7 

1912X0 4 12 

1661.10 3/1 

Ranee 

&F ISO (31/1280) 

142297 

143483 

1490SS 

IGBUO 2/2 

1462X9 2 W 

Ctt 40P1/1287) 

213942 

215622 

218202 

236693 20 

2681X4 310 

Irmndiqr 

FHflfcHanBifWSn 

63667 

MBJBO 

&4SJ3 

KBJZ M 

77EL3S 20 

Cnmaeatatl/i2S3| 

2«Efl 

2433,6 

2430X 

346MB 2S 

222120 20 

DAXP0fl2A7)f 

221968 

2237X3 

2Z35X4 

238865 2/5 

2029X3 ZP 

Ugaoe 

Mm SQ31/12/80I 

962X5 

96092 

987.17 

H945B IB/I 

95439 1ZW 

tkag Kaos 

Kip Seng(JU7*4) 

0421 JO 

882027 

041088 

12201X9 4/1 

8309.44 4S 

MU 

BSESOBfl97S| 

37525 

37100 

^ens 

4ZB7JB 28/2 

345(09 S/I 

tnili—nh 

Jakam CotapjKrate) 

46426 

463,12 

48258 


454X2 26M 

triad 

BED OwSSVI®) 

18QG2B 

151649 

1824X8 

2082.16 am 

1901X9 5/4 

a* 

Bra On M (1972) 

80637 

60094 

774X4 

81363 27/4 

96X5 ion 

UB brad M/1/94 

12990 

12920 

12400 

van 27/4 

B4400 ion 


FC(ttV 187B| 

CBS T*Wen©H 83) 

CMAflaaetira 

Sp!«(V7A9 


OPoSEWPfl«3| 


IMaCnpCZ/UQ 


PA (1977) 


W 

2T7EJD 

id 

2B8L17 8/2 

4315 

276J 

4342 

2791 

4320 

277J 

«498 3V1 
2M30 31/1 

2D43L49 

2D4&41 

2012X2 

20054 30 

1091.44 

1097X5 

110252 

OJtTO 29 12 

H 

36023 

2BBOOO 

3308X7 4/1 

2941/ 

2S6£4 

3012.1 

3BU0 IBP 


195723 20H 


41740 SM 
31/3 


20082 55 


250723 95 


hUM 

369950 

389557 

3697.75 

307938 

01/11 

abhw 

WO 

397U9 

pin m 

41X2 

an/xa 

Hare Bondi 

9753 

9923 

9757 

10961 

Bih) 

97X3 

INS 

1BJ7 
n vures 

54XB 

(incm) 

TtsBpon 

160952 

1632.76 

1642X3 

188229 

wa 

154GX2 

SOW 

18822 

BPM 

12X2 

C/7/325 

uaoea 

188X3 

182J9 

1M50 

227X9 

pn) 

188X3 

W9 

ISM 

tsiitm 

1059 

OW3N 


3/1 


CU tact Day’s N01 3702X1 0731X7 ) Law 3825.77 f387£*6 ) (T7«oredcri4) 
00/0 Ngn 389527 (8712X2 ) Law 3641X3 £081X0 ) lActuaMf 


48240 

wm 


CBitaflB t 


44782 45128 451.73 

m m 

522X0 5ZB47 S2U1 56059 5 HUB 


4.40 

0*33 

£62 


Staomra 









(W» 

Bl/fl 

02/94) 

PI *93 

SS/W-SlmCM/TSt 


56901 

SBRBH 

641X1 4/1 

62929 *14 

rtardd 

43X8 

43X8 4371 4951 

41X0 

4941 

994 

Soatt AMoa 









01/1) 

(4/4) 

(28M95 

onewp 

JSE fife) (2BB/79 

1B920V 

182GX 

19190 

23SUD 4/1 

174906 14/2 

NYSE 0M0|L 

24947 250*3 250.75 267.71 

24114 

8(7.71 

446 

JBEM.0Bfl/7S 

66090V 

6514X 

03495 

66000 05 

544500 1*1 




03 

m 

(Z®99 

pswa 

Sorib Kara 






AmoaMUlM 

43973 44t7D 44179 487 J8 

427X0 

487J9 

29X1 

KoRaC»g£(4/U80r 

040.15 

827X4 

W 

■TUB 2/2 

855X7 2/4 




(23 

CW4) 

00194) 

(3/12/73 

4ek 






5ASW6 Op 

732X6 740X5 74030 80993 

79551 

MU> 

54X7 

Mafet) SEP0/12/55) 

31441 

3ia22 

31925 

35951 31/1 

30933 a¥4 




HNS 

BOM 

(1WW) 

01/10/72) 

MrannMmtUZPT) 

14885 

15DBX 

152350 

W990 31/1 

148980 31/3 

■ RATIOS 







... 








May6 

Apr 29 

Apr 22 Year ago 

SMS BK hd 01/1268) 123975 

1Z75X4 

128982 

142334 31/1 

T23BJ3 86 

Dow Jonss ind. Dtv. Yield 

2.77 

£78 

£79 

3.04 

SBCaamriflMPT) 

917X3 

941.12 

962X1 

MS929 31/1 

917X3 96 



May 4 

Apr 27 

Apr 20 Year ago 

Tatoanc 






S & P ind. Ok yield 

2.48 

£46 

£56 

£52 

MptodTjaUMET 

589990 

595927 

59I6J7 

646*52 VI 

519453 19P 

S & P Ind. RZE ratio 

23X9 

2994 

232* 2622 







■ STANDARD AND POORS BOO MO 

MX FUTURES 6600 Ones index 

BSB(to*SET 0QM/7SI 

1222.72 

1240.71 

to 

179973 4/1 

TI9G5B 4M 

Open 

Latest 

Change 


LOW 

Eet-vcL OpenlnL 

1M^ 






Jun 446X5 

445X5 

-1X5 

44625 

444.70 

64.765 

193,440 

btortafl Oappm 1906) 165D40 

171399 

159005 2B88350 13/1 

1299970 24P 

Sep 446,80 

447X0 

-2.15 

447.60 

446X0 

1X23 

11X06 

MMX 






Dec 

450.10 

• 

■ 

450.10 

227 

7.027 

ISGBpUttfl/OTDff 

6099* 

6104 

8094 

641X0 1/2 

SUO 4M 

Open Intorari tom ore tor pmtoua day 





CBOSMOBOB 













Burnt 1DOBWOSP 1437X0 

M5DXS 

144910 

1540.19 31/1 

UB3X0 2/3 

■ n£W VORK aOttyi stocks 

■ TR/UXKQ ACTIVITY 


Broltp-IOOPBCSOI 

13C.74 

125(51 

1254X7 

isnxi 2/2 

12Q223 2P 



- ■ — ■ 






JCNNttMl PVI2PQ 

W 

30206 

2B&GB 

se&tt an 

ana zip 

Frkter State Ctase 

Change 

• VdtiTw (mao4 



Bstogs BreroXT/IPg 

84 

147.10 

14928 

18232 14/2 

141X5 21/ 4 

feadnt pita 

cn da » 


It? 6 (toys 

iitor 4 


■ CAC-40 STOCK WPEX WJTWn (MATff) 


WW22S(IBS49 
mtas 300 (1/1WEJ 
Topta (VLAS) 

2m SoMan «VUBSt 


197BGX6 T96GL47 
2B4JM TflS ff l 

181084 1615X9 
229091 229191 





Of**) 

Set: Price Change 

Ugh 

Low 

Est. voL Open ait 

W2D677J7 160 

1738B74 4/1 

May 

2135.0 

2135.0 -15J) 

21400 

21205 

17,764 

21.710 

(0 30425 1/3 

28822 4/1 

Jiai 

2114X 

J11TX -15X 

712£0 

21095 

1X27 

30X13 

p) 196927 IBP 

144597 4 n 

Jul 

Z111X 

2114X -15X 

2111X 

21115 

1 

220 

£ 2293X1 615 

1839X3 An 

open rang tana tor pwrair day- 






OtysW 
Most Bee 
Synw 

swamms 
R ffl NaUKO 
FM Motor 
Tattoos 
ran Refe* 


431x00 


+K 

■H 


Now York SE 285X00 rffiXS 267X41 


3X83J00 12k 

3X97J00 73V, +V, 

3X40X00 Z7H -1% 

3,177,700 614 

a -i 


Am 

BR5M0 

RISE 


17X02 14.141 1S2B1 
248X12 275X73 278X24 


AM 


KLSOn Bt/usm 990X3 1911X7 1007X1 131448 W 

“Sot htoy 7 :Tri«mWoWiMFHr» 6881.73 ; Kom Camp & WMi- Bm "*ao«* « 
Mtang - t». Auttrw Traded, BOBO. KX Gwu MB Qrn. 3»2 Sft CACTO^Bm 
monk Wld DAX - ol 1X00: JSE Getd - 286.71 JSE 28 OUraUs - 
MornaaL ♦ Teranta. te) Ctanad. M ltaOM6ai)io..l BBrOAtaftortarrttaoicMiKrB 


GW MMn 


3.154.700 

3.105.700 am 

2X52X00 UH 
£477X00 44k 

£413X00 5444 


-VS 


Uctragad 

NnH9l» 


2.784 

2.773 

2,780 

545 

1JB0 

913 

1X» 

1X80 

1.108 

543 

673 

681 

11 

34 

35 

128 

62 

52 


■ ko$coo m in ocoDC Aumta M CMtay md 
Top-1 DO, B&Q Ovooft Tbrorso CompAtalria B 
Comal - 50 end Standon) and Poor’* - 10. 65 

- 2218.77 -14.78 


T Conte m n. - flrintmid at 15X0 GMT. • EacttWO twa t ketaaw, pbe UUfttaa, flta wKfel and Danaponotti. 

♦ 71)o DJ ln£ Index Bm u mU lo I Oar’s itpa and Idwb av *e mages a? *e Nym and taroao t prices readied rfeitig ihe day by aodi 
stsds wtaaw tia oouW (toy's Mgha and tora (aiatAad by T i ta to ori m paawt « M gha u? and bans vabaa M On Max has laarind 
during 0 m day. (Tha Igni h bn riwto an poviera defy, f to rifloM rasakrialtan. 


If this page gets your heart racing, you need a Pulse. 


: . pijisc brings you rnoie news from more cf the world's markets than any , j ^ |-, 

--■ other information paqer, updated every rrrinuLe by Dow tones Teierate. * Jr v* L jE 

’S CALL NOW FOR YOUR FREE TRIAL ON 0800 28 28 26 EXTENSION 1154 ptTVv'd. VVDvb 


Hutchison 

Telecom 


To conquer the EC 
information mountain, 
you need 
expert guide. 


Get the information advantage by reading the 
Financial Times every day. We cover (he latest European. 
US and International news and analyse the implications 
from a truly European perspective to help you understand 
whar it means for you and your business. 

It is no surprise then that the Financial Times is 
read by more top business executives in Europe than any 
other publication.* Make sure you are one of them by 
getting your own copy of the FT delivered daily to your 
home or office. 

To order simply complete the attached coupon 
and return it to: Gillian Han. Financial Times (Europe) 
GmbH. Nibelungenplatz 3. 603 IS Frankfurt/Main. 
Germany. Tel. +49 69 156 850. Or better still fax your 
order back to us on +49 69 596 4483 and enjoy the first 12 
issues of the subscription completely free. 


■Sluv, EBKS IW 


FT 


SUBSCRIBE NOW AND GET THE FIRST 12 ISSUES FREE. 

To: Gillian Han. Financial Time* i Europe i GmbH. Nihclunfcnplalz 3. 60.1 1 K FnnLfun/Main. German*. 
TeLt40tM 156 850. TU. 4 1 6193. Fax. + 49 69 5% 44K3. 

YES. I would like to ttibscnbe io (be Financial Timck and enjoy m> firu 13 iwues free. I Hill aJlou up to 2 1 dayx 
before delivery of m> fira copy . Ptaaw enter m« tut&cnjxicn for 1 2 manihi jt Car fnllon mg rale - . 

Auttria 0ES 5X00 
Befgnitn BFR IJJ«' 

Denmart. DKK 3JtO 
Finland FMX2JXXI 

fiar uilacri|BiHb in TnrLey. Cypnn. Greece. Mala, please ixoiaa +32 2 5 1 3 28 lb. 


France 

FFBKMO 

Nclher lands DFLK75 1 

Germany 

DM 750 

Norway 

NOK 3 J20 

Italy 

UTbOOXOO 

Prarupal 

ESC {«,(*« 

1 Lmrmboury LFR 13X00 1 

Spain 

m M.ono 


Sweden 

Switzerland 


5EK 

SFR7IU 


□ 


Bill 


j | Onjpc my American ExpreWDincr. Oub? 


Eurocani/Visa Account. 


Expiry Dole 


'CarMrr nim air rvrfy wlulfia r hr mwn mu huh Ihrr air qmHrd. Subu-npium Pmvi .irr iwM J? htht rf 
xm*g la pms. Pricei are e.wluirr of t'i4T in all EC cuunirics rirrpr Grrmanr and Frame fTKf.Vn 
DE 114220192. 

ToadxeribetoiteFTlia Norm America eonuci New Yu* Tet 7524509. Fm 3062397. Far East eootect Tokyo 
Trt 32051711, Fa* 3Z95I71Z. 


□ 


PIok ikV bee ra»e nfwmfeJwi X>«« 6 and M nondi ubcnpOa iwcc nr run fm 

a oamD} nal liricd cfpo<K. 


ifkv fewr^rl . 


Nnne- 


Camjrary . — . 

AdAnto+feidil wnD lArm Fmncsl Trite, ddwcreii 


SlpBBOC. 


ATa infer amfer? ailbnar a npwvr 


Financial Times. Europe’s Business Newspaper. 




FINANCIAL TIMES TUESDAY MAY 10 1994 


4prnctoxMty9 


us* 

an larSMc 
17% U%AAflx 
18% 13% alls 


7Z%S2%Al« 

5 3 s ! ARK 
58*8 38% ASA 
30% 25%AtiidL 
13% IlkHSKPr 
13% 11%Acptah 
3124$ARU0 
12% 1B*g ACM GWZ 
10k 7%WMCMR 
10% 8% ACM GK Si 


ACM Got til 1.09102 
ACMGtigpz OflO 96 
KM6KSBI OS6 11.1 


«« 11 10% 10% 
X 6% Bk B% 


5% ten Qn Sa » ixvu 
8% MM Manx IX 122 


206 8% 6k 6k 
233 9% 9% 9k 


11% 6% Mil Manx 1.08 122 32B 9% 8% 8% 

9% SMNMBHtfi 072 06 101 B% 9k 8k 

15% 6% AasaQr* 044 as IS 891 12% 11% 12k 

8% 7% Acme Beet 33 26 7% 7k 7k 

28% 23tanfe OJSO 2.1 14 29u28$ 28% 26k 

Bk Aht> OX 4.4 2 BIB B$ 8k 8k 

14 11% ACBBOn 108 467014% 13k 14% 

IBk 16k Aitos Ew 048 £8 D 124 17% 17 17% 

64 *6$ AOtBcro 3S0 07 63 S3 52k 82% 

31% lftAMfc 100121 10 5233 24% 24k 24% 


6% SkAftrtflSra 0.16 11 6 33 6% (Sk S% 
ZD 10k WwtC 010 0B1 16 7 17k 17$ 17k 


20 iBkAftQK 010 06 
57% 49kAcgvMMX 255 5 S 
66% 48% AetaL * 2.76 62 

32k 25k ASec 0.46 IS 
20% itkMmnaix OB8 18 
4 1% Alteon he 

49k 40% AtM 092 22 
36% 31 1 2 Artne Frt x 030 06 
26 19% Atges be 
16% UkAKfease laill 

24% 21% AkTdi 
mb 181 AtaPtaLIB 116 7S 
18% i3k«a*a» 020 12 
21% l8Ata*ht 035 1.9 
16% 13% Atari 020 1.4 
25k ZOADCttx 026 U 
21% 18k ACUbrA 028 1.5 
30k 25kMB6nx 044 1.7 

25k 19% NerM 030 13 

58k 43k AlonSr 130 13 


010 081 16 7 17k 17* 

235 S3 11 37 51k SO 1 

2.76 62 81886 S3% sA 

040 13 13 633 31k 3M 

038 5.8 11 531 18 173 


032 22 22 1158 


37 131 21% 21% 21k -% 
iai13 12 28 016k 16 16 +% 

8933 a 23k 23% -k 


020 13 8 179 I^b 15% 
(US 1.9 32 53 19 m 


020 1.4 703 14k 14* 

028 U 14 40 3J5 20* 

028 1.5 14 27 18% 018* 

044 1.7 21 2758 27 X* 

030 13 38 1798 21k 20* 

130 13881 683 52% 51* 


104 

3 | 
3 i 

18% 4% 

3j( % 


58k 49k«niSr 130 13131 683 52% 51k 51k -1% 

30% 23k M£nm 060 23 4 434 28% 26% 25% At 

22% 14% Abtal 1.00 73 X 511 14k 014% 14% -% 

24k 17Me0nUld 048 26 17 930 


14k 614% 14k 
18% 18k 18k 


2B$ 22% AtagP ia 7.4 11 900 22% 422 22k 

16% 13k Mw Con 016 09 14 148 17 16k 17 

25% 20AfesgHJi 040 1.7 14 1787 23k 23 23k 

4% 2 ATNM 8 U 2% 02 2k 

27k 13k AJ&caCepr I .« 83 20 358 20% 19% 19% 

10k SAkns 018 13 as sk Ok 9% 
27% 21% Aklk&i ia 5.7 13 47 22% 21% 21% 

40% 33% AU9g OCT 10 7 5888 34% 633$ a 

29k M AM Op 088 34 18 H7 26k 25% 25% 

5% 4% Alma 19 183 5k 5 5k 

27% 21% Ataax 7 1306 23k 23 23% 

82 64% Alcoa x 1.80 14 01 2832 68k 87% a 
30% 20*4 Ala Oi A 45 2958 24% 23% 24k 


27% 21%AfelkSl 
40% 33% Ah9g 


27% 21% Atom 
82 64% Ataax 
30% 20*4 Ala Qi A 


11% BkAff&xtacx 09811.0 541 

8k 6k MnPmctt 02 14 S 103 
8k 6%/Vnafid 008 1.1 6 2478 


29k a AM Op 088 14 16 717 26% 25% 25% -k 

5% 4% ABaaoe 19 IB 5k 5 5%+% 

27% 21% Ataax 7 1306 23k 23 23% -k 

82 64% Ataax 1.80 14 01 2832 68k 87% B8 -% 
30% 20%AfcaQlA 45 2958 24% 23% 24k -A 

Ilk BkAmtotac* 09811.0 541 0 8% 8% -% 

8k 6% Am Precis OS 14 25 103 7% 7% 7% -k 

8% 8% AfBffldM On 1.1 6 2478 7% 7k 7k -% 

2% Zi Areas fad 048 11 15 60 23% 22% 22% -% 

51% 44 total* 080 13 21 3a0 51% 50% 51 

9% 8% Am Ac) Rx 034 2.7 177 9k 9 9 

31 20k Am Btnkdt 010 0.4 3111511 23% 23% 23k J 4 

35% 29%AmBrnlx 100 02 9 4254 33k 31% 32k -1% 

19% 17% AmSuH M 052 19 12 6 17% 17% 17% 

25% 21k Am Bn* ftp 080 17 13 459 21$<E0$ 21% -% 
8 6% Am Cap hex 065 06 89 8% 6% 6% +.52 

20k 17k Am Cap Bd IS* 66 31 99 18k 17% 18 

22k 19%MnapCV 1.08 52 0 X 20% 23% 20% 

50% 42% AmCfBl 1.85 17 X 2588 48% 49% 40% ♦% 

37% 29% AnBPwi 2.40 02 15 3707 30% 029% 29% -% 

33kX%Amev IDO 14 12 9568 29% 29 29$ -k 

29% 24% AmGanlx 1.16 4.5 22 1535 26% 25% 25% +% 


22k 19% MnQvC 
90% 42% AaCfai 
37k 29% AbHPwi 
33% ZkAltfirt 
29% 24% AmGanlx 


0% 7 A® Gout fa « 0-77102 348 7% 7$ 7% 4% 

27% M$ Am toft* 130 07 9 408 28% 25% 26% 

20% l7AmHeriMe 006 19 10 12 17k tf17 17k +% 


20k l7AmHattge 066 19 1C 12 17k 017 17k +% 

65% 57Arttaax 192 5.1 12 2751 57% cE7 57+2S5 

2% 2% Am Hottb 075 31.6 B 120 2% 2% 2% -k 

93k 81% AoM 048 05 14 3067 SB 06k 86% -1% 


4% 3k Amo he 
32% 29%Anram 
4% 3% Anacnoqi 
58 42k Aradatai 
31k 23%Amto0 


ass 

■7% 57% -% 


57% 57% -% 
26% 20% 1% 
»? 3*5 ■% 

51% 51% 


11% 8%A«apphc*1S01T.6 833 9 Bk 8% 

Z7%23%An«km OB8 3.4 S6l 2E% a 26k 
34 19 Am Praafi i 040 20 7 833 20% 20k 20k 
6% 7% Am taX E* 044 08 5 45 7% 7% 7% 
27% 21 AmStor 048 1.0 7 1B38 25k 24% 24% 

22k 18AnWW9Sxi;S 02 3 20% 2D% 20% 

32% 27k Am Bar IK 18 12 112 28% 28% 28% 

43% 36% Amriefl IX 02 13 2062 38% 37% 37% 

43k 35% Amaran Inc 1.2B 15 5 132 36$ 36% 36$ 

14% 11% AmeMc 024 1.7140 283 14% 13% 14 

57% 50% tom x 120 18 15 7780 57% 58k 57% 

9% 7Ampa«t 010 12 6 38 Bk B% 8k 

4% 3% Ametac 012 14 a 74 3% 3k 3k 

32% 29% AmouBi IX 45 10 95 31% 31 31$ 

4% 3% Anaranp 13 5130 4 3% 3% 

K42%Aradarto 030 05 B1 343Sn58k 57% 57$ 
31k 23%Amta0 X 1007 27 k 28% 29% 

29% 24k Angelica 094 18 22 39 25% 24$ 34$ 
54% 47% Actadl ( 1.44 18 233422 51% 51% 51% 

a% 25$AHRPpePtz 2S7103 zlOQ 26 2S 26 
34 24% Arnhem 16 382 24% dZ3% 23% 

18% 14% Anttaiy kl 044 29 15 51 15 14% 15 

52k 45AoiCpx 1.92 4.1 11 282 40% 46% 46% 

29 22% Aparin Crp 028 1.0 X4804 X 27% 27% 

10% gkAputtliF 0.73 71 K1 10 9$ 10 

18k 14% AM 39 131 17% 16% 16% 

7% 5AppMMag 1 119 5% 5$ 5$ 

22% 16% An* Pvt A 012 06 33 8 20b 19% 20$ 

27% 22% AttiOl X 010 O4 10 31W 22% 22% 22% 

50k 43% Amo Oram x 250 5.4 20 13 46% 40% «6% 

9 6k Artis OX 4.4 M 1295 6k 6% 6% 

40 34ArttaP1 100 06 18 35 34% 34% 

51% 47 Annco 4. GP 490 92 3 48% 48% 48% 

6% 4k Anna 1 2441 5k 4% S 

28 23% Aram HP no 07 15 24% 24% 24% 

57k 49%AnasW* 12B 24 40 1023 54% 53 53% 

46% 33% AraxBac 16 1164 37 X 36% 

7% 4% Mm Grp 2 465 5% 5k 5% 

33% 25% Arvfei M OX IS 14 400 28% 25% X 

27% 21% ASM) » 040 1.7 71 814 23% 22% 23 


14 *% 
57% +k 


&& 
22 % 22 % 
40% 46% 

A A 


48% 48% ♦% 

..5 % 


46k 33% AroxHac 
7% 4% Mm Grp 


7% 4% Ann Grp 
33% 2% Arvtakxt 
27% 2l%Asaroji 


Z7AMCOM 040 n ID 0 27% dZ7 


44k aAsMK 190 16 13 31X 38% 37% 37% 

25% 16%»alaPBB7 027 n 83 18k 18k 18k 

3% 1% AsmkNT 020 62 1 1309 u3k 3% 3% 

38% 31% AssNtta 012 03 23 2= 34% M% M% 

57% 48kATST 112 28 16348 52k 51k 51% 

263k 226% A8RWI 2 180 U 3247%ai%ai% 

38% MAMfin 108 58 15 159 X 36k 35% 

Bk BkAOnbSns 028 13 7 4 7k 8$ 7$ 

21% 19% AMcEqp ia 79 10 1179 20k 019% 19k 

112% 92k AWen 550 63 62 2541 103% 102k 103k 


Bk BkAOnbSns 
21% 19% AiHcEaf 
in% 92k AtMl 
10 4% ABB 


30% 25%AamEogr 088 39 13 16 
12k 8k Altai ADR 0.46 48 4 in 


24% i7k Am® 
12% 9 AlBStlFd 

55k 47%A4bb 
20% 14k Anna 
19 14 Arid 

45 33% AV&M 
Bik 48% AHnPr 
14k 11% AyrinCnrp 
7% 57g Am 


040 U 25 217 

aio 1.0 16 

052 1.0 22 1473 5 
044 18 11 81 

004 09 3 110 1 
080 1.8 18 903 3 
180 30 17 2187 5 
10 121 


>41 103% 102*2 ifflk 

16 29k 2S% :»% 

80 9% 9k 9% 

17 21 20% 20% 

16 B% 9k 9k 
53 50% 50% 50% 

81 16 15% 15% 

10 1*k 14% 14$ 
03 34% 033k 33k 
87 59% 59k 59% 
21 12011% 11% 


24 450 5% 0% 6% 


38% 34% BCE ZB» 

9k 7 SET ADR 0.15 

3% 3 BSknco 020 

17% 16% BJter TW* Q40 

22$ 17B*«Mx 0 46 

27% 22% Battr Be 040 
30% 24% BdCp 080 
15k11%BWd 005 

9% 6%8aB» 

25 k 22%03BGE 148 

19k 13%BgRBnka 020 
35k 30% BacOns ia 
28% 19k8sncfHx 
25k 20%8anco6IV ta 
11% OkBsmCmti 072 
32 27BOTMMI ia 
1% (k BoneTtas 


7.723! 345 35% 
20 31 4 7% 

65 5 X 3% 
14 X 17 
14 45 5703 19% 
18 23 X 24% 
12 23 419 27% 
04 17 95 12k 
17 2257 7 


89 II 5984 22% 
19 29 370U19% 
4 0 10 6747 31k 
10 127 X 
07 8 193 23k 
69 5 M 10% 
3 4 7 296 31 

45 79 1% 

1 3 18 127 62% 

3 5 9 9013 44% 

63 4 88% 

35 10 1959 25k 

64 10 47% 

4 0 9 1451 55k 

68 a 40k 

69 4 88% 

5 5 5 2887 68% 

49 88 200 31 

13 20 609 a 
4.1 48 16 a 

13 10 9B4 44k 
08200 5600 10% 
21 17 2841 46% 
41 a 4630 24% 
69 14 X 2 
63 X a 
39 5 2364 19% 
5.7 2 49% 


63k 4Bk0amno 
48*5 38%Efef*Affl 
96 B7 Bank Bom 
» k 22% Obtain* 


40% 47%BiBosmP 304 


59k 497, BanUff 120 
50k 48% SsnfcAm A x 125 
95 B6B0ttAnBi 600 
84% 66k BWTst an 
38% X Briars i.a 
30k 22% BridlC R)x 056 
a% 29% Banes Bp i.«0 
48% 38% BanCk 1 44 
12k 8% BalM D05 
53% 42% BMCll 0.98 
a% 21% Bata 1.00 


26% 23% Bay St Gas 1.J6 
sfik IBkWHIOX 1.72 

»% 18k Best SOns x 057 
50 48k BeriSW* 293 


34% 34% 

| g 

16% 16% 

19% 19% 
24% 24% 
27% 27% 
12 12$ 
6% 0k 
d2ik 21k 


«J4 e,-a 

«2ik 21k 
19% 19k 
130% 31 


H30% 31 

a? 

1D% 1D% 
30% 30% 
’% 1 % 
52k 52% 
44 44% 
88% 68% 
24% 24% 
1147% 47% 


55% 55% 
147% <7% 


«7% 47% 

86% 88k 

(09 66 


SSSJ 
«k 25 

9% 10 

45% 40 

a a% 
24% a% 


19% 18% 19k 
49% 49% 49% 


NEW YORK STOCK EXCHANGE COMPOSITE PRICES 


til pf at am rm 

Start Hi % E IDBs Hrt low tata Gta 

AAflx 048 32SD0 323 15% 14% 15 •% 

ALlaUiA 0.18 18 32 116 14 14 14 

AMP* 1.68 26 22 GOB 04% 63% 04 

AMR S 1378 58% 57% SB% +k 

ARC 14 300 4% 4% 4% At 

ASA 100 4 7 » 894 43% 42% 42% ■% 

A&HL 0« 17 1610144 28 27% 27% -k 

AtMhiPr 050 %3 9 S 11% «$ «% -k 

Aqrtmki 2 25 «k 12% 12% *h 

ACE lb (M4 18 4 266 X% 27% 28 +% 


^a&eUotel 

/l A V Q L U d e 


When vou mov taiih us in 

BRUSSELS 

Ma> in (ouch - with 
jour complimenury copy 
of (he 


1W V N 9) Gta 

Wrt ImrBtaek Dto « E lOBs 1%^ Uri tata 

37k 27% Bnrtigs 0.64 18 23 2 33% 33% 33% 

28% aBsdmgntix 040 1.7 19 478 24% 024 24% 

40% 34% Bead) 0.74 n 13 391 38% 37% 38% 

7% SBedfPr 0.32 48 3 21 6% 6k 9% 

59% 498dM 176 58 14 2954 51 50% 50% 

19% 14% fief b 040 15 14 42 19% 16 16 

63k SJBeBfi 178 4.8 27 2920 58% 67% 57% 

53 45k Seta A tj.80 U 22 208 50% 48% 5Q 

24% aOkBrinta 084 13 a 303 23% 23% 23% 

69 59% Benef 43P 480 78 2 59% 0SB% 39% 

40% 34k Briwf (82 4.1 11 l3Z 37% 36k 3B% 

35 k 29% Benesen A 042 18 20 36 34% 34 34% 


1864 TM. W Be Baa 

H+ (an Start 11 K EX w Urn M 

12 9%QM 116118 13 452 10% 10k 10k 

8% 5%CJ4LtaR» 082 9.0 6 18 5$ 5% 5% 

24% 18%QmptaiK4a48 28 19 874 19$ 19% 19% 

41% SCta nCS 16 888 35% (04 % 35% 

13% S%CRSSkr 0.12 1.0 32 2Z1 Ilk 11% 11$ 

Jj %CnMBr 008188 0 48 % k k 

X%26kCUCM 41 2887 29% 26% 29% 

17k 12%c*ra an 58159 9 14% is% i4% 


74k ffiCUta&AS ISO 52 16 69 67k 87 
57% 40% cannE0 on 18 si« 4i% 4i$ «i 


liBmBMfB 004 48 5 164 1 1} 1 +& 

14%tmprx a« 18 22 367 17% 18% l6% 

SSenjPeS' 040 48 62 64 8% 8$ 8% 

19 BeriBey 19 7608 a 30% 3\ -a% 

2B% BediStlx 150 ftS 20 H)% <28 % 26% -% 

52k Mum PI x 5.00 98 33 52% (EZ 52 -* ? 

lakBenSI 040 22 B SIX 18% 018 18 -% 

0%6eCL 1.40 3.1 22 2000 48% 45% 45% -1 

12$Be*Ent X 1304 12% 12k 12% -% 

13% Bnoaft O10 06 X 267 17 18$ 18k 

SBbidvmS 040 1.4 01 3a 28% 27% 27% % 

T7% BSeck 040 11 19 1286 19% is 19 -k 

20% 6tadcHH.x 1.32 68 12 « 21k 20% 20. +£ 

BkBrtRMOr 0.73 02 63 8% 8% 8% +% 

7 Bfctaridne 075105 400 7% 07 7% 

8% BfcfcrtTgt 070 7.9 1189 9 8% 8% ■% 

Xk Barit 1.12 17 24 1S71 42% 41% 41% -% 

23%BbcUl HO 04 22 BS79 25% 25% 25% -$ 

s^auecMp ai2 n ia 6% ds% s% ■% 

19% BMC tad 16 58 27% 26% 28$ 

42% Bntag x 180 12 12 4271 44% 44% 44$ +% 

20% BabeC 080 28 5 2247 20% (Q0% 20% -% 

IlkfiritBSN 006 05 29 814 12% 11% 11$ -% 

9$ Banh One x 084 85321 1100 13% 12% 12$ 4% 
UkBoramx 030 14 18 3960 12% 12$ 12$ -20 

IBkflWtnCah 116 03 8 13 20% 19$ 18$ -% 

20% Bowalr 080 18 11 909 21$ 21% 21% ■% 

iflkBnrtM 017 1.4 546 19$ 018% 18% -1% 

30k BRE Prop 140 7.7 7 95 31% 30% 31% +% 

79k OrtpSt 184 21 14 in 82% 81$ 81$ At 

»%M*V»it 20 2688 2B iE4% 24$ -1% 

SO%BM)Sq 182 M 14 4872 63% 83% 53% 4% 

SekBrAta 1.18 18 14 623 81 6OI2 60$ -<% 

42% BUGS 2a 5.7 X 429 43% 42% 42k •% 

55% BP 181 18 a 5073 073k 72% 72$ 

10% BP Pittance 091 41 7 152 21$ 21% 21% -% 

108&M 019 08 22 388 22$ 22% 22% -% 

55% 61 381 54 14 1096 SAi SA\ S6% -$ 

23% BtamU 1^ 58 13 24S 23% 023 23% -% 

32$ BnenGp 1.00 4 2 87 112 38% X X -k 

6 Bremen 032 4j 4 12 Bk 0% S* 2 

91k83kMmS 284 31 14 52 B8$ tB 08% -% 

30% 24%B0taT 060 15 22 4390 27$ 27 27% -1 

4% akSRT 8 4 3$ 3% 3% 

25% 17% enMk 044 18 41 3113 23$ 23% 23% 

17% 13% Entail Writ 020 1.3 X 343 16 15$ 15% 

41 35% Buckare Plx 280 78 10 83 37 36% 36% -% 

16% 14% BudcarW 1.7211.4 0 133 18% 15 15% 

16% 15% Bop* K I 180 98 18 12 16% 10% 16$ 4% 

Xk 18 an Cota 17 364 24 23% 22% -% 

86% 52% BriM 110 13 17 867 54% 52$ 53% -1$ 

49% 41%ButaRese 055 11 22 1988 44% 42% 43% -$ 

19% 17aumHamPc 1.40 7.7 23 MS 18% 18 18% 


FI KANCIAL TIMES 


X -3% 
28% -% 


tfiz a 
010 16 
45% 45% 
12 $ 12 % 


17$ 

51 +1% 
53% -k 
30% -% 
17% J* 


191388 19% 19 19 J9 61% 

12 3 ss* 


23% BkxAB 
6% BXjb CMp 
19k BMC tad 
42%Bntagx 
20% BotauC 
11%So»S3N 


ma 


13k Iikcmmn 
37X$CHMT 
11k 9CVRef 
11 % 

V% 


086 43 13 S 11$ 11$ 11% 

no ao sa 2 33% 33% 33% 

188103 8 6 10k 10k 10k 

7 X 10% 10% 10% 

751103 16% 15$ 15$ 

ago 19 15 944 X 27% 27% 

11X017% 16% 16% 


art Uw Start 

6$ SUBnHH 
16% nkSeatm 
n% nk ana 

B% SGeeWrx 
36$ 27k6idUi 
«%31$0rttet(x 
31% 27% GriflXx 
«%H)1%6erf% 
X30 %6(>Gte 
51k 41% GriKdKII 
5% 3%Gown 
21% 13%6«aSB 
7% 5k6miibc 
39% 33%G«retft 
^2 21%BQBP 
77% 57% &S*P 
1(8% 100% Qs&TJt 
I 104 S$ &cfc772 
33% 28% Eerfift 


MHO Ctaai 

Start Db « E am art mm 

Bnwa OX 63 2 150 Bk 8 6 

Sea Was 032 16 13 2 12*2012% 12$ 

(MB 188 17 15 17X 51% 50% 50% 

GerMri 080 18 25W21 54% 53% 53$ 
fiitUi 046 1.4X4688 34% 33k 33% 
Qrttarix 080 13 22 1060 35% 35 X 

GerfW* 180 65 10 5H2 28% dZ7k 37$ 

Me 152 15 153084 125122% 122% 


nt N Sk . Btajt 

Bb % E mi Mrt im mm 

1.78 8.1 5 20% 20% 20$ 


090 35 30 3341 fik 30k 3D$ 


22 19% KsmG 1.7 1.70 01 S 20% Mg 

48% ->0 Krirlic 152 34 28 822 44$ 44% *4*1 -% 

X%29%KqOi 116 *3 4031 30k d&k S$ -% 

12 loKeranCen 2 Jt 11*5 

ak 20%Kqafibti 074 UIS ^ ^ 

U% 51% testa 1.78 32 17 1781 53$ Bk 65% 

2% 2kHnrta£n 083 1.5 6 IK 2k « 3 

42% 33%WrtBd 13 *81 X% 36 »k 


XH 

me Lta« Start 
7$ 4%ttW 
25% 22% NEU8 
437, 39*2 KSSW 


ML Pi Sta 
ON % t 180* 


S Urn artok art - 1 * *1 *2 i 


4 131 7% 7k 7$ . 

176 7 7 I4 1TO 23% 23 g 

1S8 63 13 533 41$ a\ 48% 3 

i 15 J-J J i 


33 8882 49% «% __ 

1 45Q 3% 03% 3% •% 

3 322 15% 15 15% 

2 498 5% 05% 3 % 

1.15 3 A 16 1733 34$ X$ 33$ At 

27 2877 29% 2B% X% -% 

180 17naX46 60k 5S% S3 -1 
780 78 z29 WOkflTOOk 100% 

7.72 88 250 96 98 96 

086 25 181X71 035% 32$ 34 +% 


21$ 15k Knurr x 
61 5*$ ttfifcb 


083 1.9 8 IK Jk « * -Ji 

13 481 38% 36 Xk •% 
056 68 20UK7 15*2 0*Sk 15% 
in 14 21 402 58k 57% 57k T* 


27% 22% Monssts 074 2.9 11 4147 74$ 25% 

8% tlilMOni 024 SI 21 fOI <3 7% 7% 
18% i4Hnmaie 15 Jik >6$ lb% 

27$ a% MMaNB IMS 06 4 X »j% 25 25% 


12% 8% 14*09 C<P1 
9k 7% Kefemger 
26% 18% KanFd 
25% (Okxagv 
29% SKUBtecgr 


KtaegBCap 010 09 17 45 11% » «*• 
^ 008 09 56 X4 Bk ■ ■ 

002 0.1568 568 23k 22% 22% 
131016 21% 21% 21% 


21% ISkOn-Hrtte* 1-18 02 13 3320 19% dIO 19k 


39% 26% EeitPr 086 25 iBUSJl u35% 32$ a 

15k I3kGert*rSci 02* 18 27 70 15% 14% 14$ 

12% 10% Grimiy Fd 056 45 130 11$ 11% 11% 

173 T m% 8% 


XKUBiecBT 164 03 12 W26*; 
18% I5%nmm0a 060 34 01 13 17* 

134$ IWKjoemCP 084 08 55 4123*; 

iSKysorbtb 052 li 10 3 I6*i 


17k 17k -k 

ia ia . 
16% 18% *k 


20 15k Odn 
1% 53 Dart 


19 224 18$ 18% IBk 
158 01 IB 1041 54% 33% 53$ -Ik 


18% littMOR re I'M w» ib% 

27I1 a% MMeNB 015 0 6 4 20 20% 3 3% _ 

i7$l4%Su&Min» 1M 69 g 15% }* H$ ^ 

18% 15% MuriyMuix 1-13 »3 W ,S 15;i t& J 

66 48% Nucor Crip 013 03 41 580 58-t 58k 58% 
28%22%JMC« W a 

i7ki4k(hNCMx 14*3 08 84 15% 15k <5k 

{TkiSSmiClx 07? 68 X UJ, 11$ 1?? 

13*2 11%RBwenMl»0« £6 J |;f£ *2$ U% 

17 14%Buw»M0«».K 'S » '5$ »4$ 

IS gkttomiKMs 067 03 *3 10-j 10% 10% 

w$ itf»mre»*p* 1 12 52 M ,5 5 15$ 


84 15% 15k <5% *n 

a »% Ilk 11$ 

8 tsk 12% 12% jj 

298 15k MV U$ 2 

43 10% 10% 10% tl 

47 15$ Kk 15$ <1? 

145 15 14% 14$ ,S 


X U% nk 
a tsk 12% 

Hi • 


XOrtriD) 012 03 21 161 40k X$ 

0% Dotal M 018 18 29 5 11k 11% 

BkOriafiB 2 480 7$ 7% 

rilDawM 4 2X 5k 5 


iDBteWSW 020 £5 78 


IO$M$miM( 
2 IDOLS 
Bk 8 DeSoto 


188 22 18 IBS 77% 76k 
2 8 1 01 
014 22 3 40 8$ 6$ 


7% 7% +% 


: X% Data Foods 084 28 17 280 
31%DoaflWD 0» JJ 10 2473 
, 7kDsanNGux 080 75 2587 


ia$0osinCan 
20% Bomb- 
19k 8rnS Fnd 
3O$0REProc 
79$ attest 
!4% Brtteltf 

SOkBM)Sq 
nkBrAb- 
42k are Ob 
5SkBP 


71 Deere 
VDtartJfta 


37% 37% 37$ 
7k 07% 7k 


X%01 
23k StafflU 
X$ Btwrrita 
6 Brema 
91$ 83$birtn8 
30% 24%Bdtair 


“J‘2 -1*1 

42V -V 

as * 

$ 


57% X$ DtaAirx 020 Q4 
12$ 9k Drita «ms 040 3J 
2% % Drtone 

X X% Deluxe I.a 03 

101 90000785 785 03 

102 91$ 000786 758 84 
30% a$ 0O6d 286 82 


280 28 17 51X 72k <170% 70$ 

154 8.1 10 BOB JOfflSk 19% 
020 0 4 8 1405 40k 48% 45% 
040 38 15 1M 12k 11$ 12k 
0 4 1% 1% 1% 

l.rt 03 15 3n 27% Z7k 27% 


12k 10% Germany Pd 056 45 180 

12% Bk Start 8 173 

i6%i2%Ge(nrm (UB 04 n Gt 

14% 10% Ganl Op 22 2X 

Kk SkSatrmde 030 35 6 171 
I 67% 57% 62Bsx 180 15 9 3337 

S iV Barn Op 0 1205 

16% Sea 091 5L5 11 9988 
I 15% 12kanM0Ce*O4O 13 » 25 
7% 5% SoMGor 048 7.7 Z» .. 

9k 7% Gkeritac are 07 88 0 

1 4$ 3%SaUlbr X4033 4% 

8% 8$80MYb 044 S3 454 7 

46 37% GXlFB 030 08 8 831 38% 

46% X Start 220 4510 70S 47 

51% 48% On3c 35 in 75 a 50% 

49% X Gflyrar 080 2.1 11 2607 38% 

12$ 7$ GaBrir* 43 12 

46% 38%GBM*R* 1.40 35 27 1515 


MV Uh 
11% 11% 

Bk 6% 


U% •% 
8k *% 
64$ -1% 
‘ 2 


4 -% 
7 4% 
9 -% 
46% ♦% 


43 12 1f% 11% 11% 


27 Z7»* 


16 15$ 15% 
37 36$ 36% 
5% 15 15% 

6% 18% 16% 
24 23% 23% 


53% -1% 
43% •$ 


101 90DrtQ17A5 7A5 S3 4 91$ a 

>02 91$ 0rtO7£8 758 84 HTO 91% 81 

)% 25$ Ortfid 286 82 7 2905 26% 024 
ik 22% Door Op 088 17 18 IX 24% 23 

)k 17% Hepnddex 040 2.1 it 74 19% ib 

r$ 38$ OaSM 1.12 24 17 1914 48$ 45 

30 24% Otanond Eh OS 28 25 35B 35$ 25 

S B% ObctaCctp 21 45 12% 12: 

a DMxXd 0X12 X 356 40% < 

3S%ia%U0£ 121810 22k 21' 

37$ 32% DM 088 02 15 13X 33% 

9% 7% Otari fie Wf 59 2562 8$ 0 

48% 39% Disney 030 07 X 4812 41% 4tf 
X$ 26% OdePdx 04C 14 » 1300 27k W 

45% 30% Qxaftae 284 68 12 1516 40$ X 

6$ 5% Doom Inc 025 48 9 4 5% 05> 

25% nkOorattm OX 13 9 a 22$ ; 

31k 26$ Dandy x 086 10 Z3 1293 Z7$ 27i 

96% 54% DOM- 092 1J 19 842 SBk 54) 

0B$ X$OohQi 250 45 Z7 93® 66% 63* 

41$ X% DaUrax 084 12 X1474 38% 381 


46k 38%GacSMIx 140 34 271515 Xk 39$ 39k $ 

68 X$GmarWI 080 14 21 517 62% 81% 61$ -% 

27% 22%GWPT 080 12 X 308 24% X 24% ♦$ 

17%12%&etaGEu 031 18 213 14 Uk 13% -% 

SG1%airteeC OX 08 18 66S S% 060 60 -2$ 

43% 35% KMlKd 120878 16 37X%36k<% 

20% 15% BOfHnl 052 60 M 2016 16$d15% 15% -% 
31% 27$GmealBP 112 7.6 12 2* X$ Z7$ 27$ -k 

58 <3 Green Tree 048 07 14 1840 53k 52$ 53% -% 


- L - 

10% S%U6ttr 4 407 ft 8% 6% 

41 34%l£SEBi 288 55 14 917 36 35% 35% 

23% 15$ LB Lp 182257 X% 21% 21% 

32% 19% Li Ooeii 0.10 03 9 »7 36% 30% 30% 

40 X% LeZBoy 058 25 17 S 33k 33$ X% 

8k BkUcMris 012 1.4 21 2230 Bk 8$ 8$ 
25% 21k LederieGe 122 58 7 48 22$ 22k 22% 

27% 19k Utarge OJO 1.4208 709 21% 20k 20k 

7% 4klrtta0ri&S 18 48 6$ 0% 6k 

55$ 44 Lotte Ead 020 04 22 315 48% 45k 45k 

13% 10$ Lamer It 0.40 18575 2W 11% 11$ 11$ 

15$ 14%LaraM 082 14 14 15 1S% 15% 15% 

38%33$UtaBmp 054 24 19 51 35*3 35% 35% 

S% >8% Leggiman 040 12 6 4a lBdiSk 18$ 
49$ X% LeapPI 080 15 19 620 41% 40% 40$ 

25% 1B$UensjOpl 008 O * fi 714 21$ 20% 21% 

4% 2% Letisy Ft? 0 IX 3 (C$ 2% 


asesspAia « 


25% 21k LadedeG* 
27% 19k Lamps 
7% 4k LtMOAlS 


6 % -% 

a i 

8 $ ^% 

4Sk -i% 


a%i5$WM0te 

41%33%«rnrt 


an :j n 33* *7% tg% 171; 

2JG 6.4 « SCI 36k 3E$ B% 


% 15k 15k .% 
71 X$ 20$ 4 

t 21% 21% -i2 

$ 17% 17$ “ 


20% 17% Omar XL * 048 28 10 27 18% 18$ 18$ 
IX 97 OA 7875 738 72 M0 101% 101k 101% 

J4$ 30% DOE 188 44 11 234 31% 30$ 30$ 
28% 21%0ritap71te 16 881 X 24$ 24% 

13% 10 Dim OS2 5j4 5 87 11% 11$ 11% 

24$ Xtaer 060 19 12 509 23$ 22% 23% 

51 44% DrayAtaz 078 18 17 1058 48 47% 47% 

10% 8%DrtasIdSz 056 72 407 9% 8% 8% 

11 9% DrtaStGx 090 94 100 9% 9% 9% 


»$ 25k 2B% +% 

a ® ^ 

a *5 "S i 

Ok 96$ 26k -k 
W$ 39k 40% -% 

STi s t 

g» § wl -% 

6k 63$ 64% 4-1$ 
8% 36% Xk -% 
8% 18$ 16$ +% 


17% 13% Mo&g 028 11 15 X 13% 13% 11% 4% 

18$ 14$ Qok OX 18 18 254 18 15% 15% -k 

12$ OkGRMhSrtl 015 15 287 10% 10 ID 

40k i9GrT<&HR 12B 23% 23 23 k 

16% 11% &an*HB» OX 28 19 12 11%011$ 11$ 

24% ZlkOlAzdMi OX 17 15 183 22 22 22 


4k 2$ Idler Frt 
2% 1$ Uberbta 
ilk 9k UbertyAS 154 95 
X 23$tberiy4> 082 14 
61$ 47%LMyz 280 4.7 
22k i6kuma OX 15 
44% Xk UnenN 154 42 
20k 16$ Linen MR) 096 55 
70 ST LondLPfB 550 8 2 
74k X$ Ltaco 


6 4a 19018% 18*2 
19 620 41% 40% *0$ 

8 71* 21$ »$ 21k 

0 IX 3 «$ 2$ 

0 M 1$ 01$ 1$ 

235 10$ 10% 10$ 
12 X 28*2 Xk 26% 


154 95 235 10$ 10% 10$ 

062 14 12 X 28*2 26k 26% 

150 4.7 31 4813 53% 52 53% 

036 15 17 7055 19 Ifik IS 

154 42 BIOS X$ 38% 38k 


81(09 39$ 30% 38k 
8 17% 17% 17k 
2100 61 961 61 

7 445 31k 30% 31 


2Q%lbCtax 046 15 151107 »k 23$ 24% 
4kU8ERte* 046 98 X X 4% *% *k 


19$ 14% MU Hon 098 01 147 

65 48WITMA0R 152 14 13 981 


16 13*2 HRE Prop* 1X78 17 
3k 2% Kadstzi 1 

a% 27%Hddn IX 13 21 
5% 2% HataaOM I 


% A CP heUB 
X20%aMSGn 


X 2Q%OMSGn 
82% 62$ CNAfti 
50*2 45% CPC 
17% 14 CPI Carp 
82% 74% CSX 
25% 19$ CIS Crip 
24$ 18%CrirtMRK 
1*2$ 94% Ctftatnn 
56% 49CrtatC 


040 1.7 27 713 29$ 28% X 

100 07 14 255 296267% 289 
016417 0 X H % % 

072 15 IQ 2225 20$ 020% 20% 

14 IX S3% S3 S3 

IX 35 15 2178 45% 045% 45% 

056 10 IS IX 14% 14% 14% 

1.76 14 21 2811 74% d73% 74 

0.40 15 19 CTU25$ 24% X 

020 1.4 16 235 18$ 19% 19$ 

X 558100% X X 

IX 11 2* 101 GO 048$ 48$ 


IX 78 17 X 14% Wk 14k +$ 
1 X 2k 2k 2k 
IX 13 21 3380 30$ 23$ 29$ -% 
I 68 3 2$ 3 


68% G0% (JOriM 112 16 6 660 61 05B% 59% -T* 

44 3S Loots Co OX 15 21 250 42$ 417, 41$ .7, 

1(Bk 67%laeMZ 1.00 1.1 9 930 K$ tJS7k B?% -2* 

31% 25$LOBtaaa OX 15 10 6 28% 25% 28% 

Ok 7ktamftaC0 1 *443 Bk 9k Bk -*< 

akrkUSBll 1.76 6.7 9 3104 2t% d20 20% - 

30$ 31% LretaOr 1.12 15 13 » X% 32k 32% A 

23% WklragrimF 062 10 3* 1002 17% 17% 17% -* 

42% 35% Uml 056 18 11 9X X$03«% 35% A 


19$ 11% OHM Op *5373 >6% 15k 15% X 

22%l5%0rtBdt 13 942 21 30$ 20$ j* 

2g% 19$ BJoceetai aos ai is 357 uk 21% 21% .jc 

rekrekoertr in s?5*s*05 17$ i?$ 17$ ’ 
S5aio l£ot» 51 2X7 3Sk Mi ., 

24% 20k 000*1 13 6.1 14 755 71$ 03% 20% .1 

17% 14k OgdeoRal 13 2X15$ 15 15% 1 

Xki7k0rttt ISO triasr ir$0i7% i?% jl 

OSgliUdtM 4.« 83 ^00 53 S3 S3 

62$ S5XHHKZ IS 15 3 53k 053k 51% **H 

97 B30ntaC7a 72* M 26 6J BB3 C .‘ 

97$ 87(MoEiX 7X 63 GO 68$ 68$ 66$ 

37k33kOM*GSE 266 BO 10 S» 33$ 33% 37% .$ 

53% 48% OtnCpx 2X 4 5 11 421 50% « « .<1. 

35% 26$ (tamtam 01B OS 30 105 23$ 18% 23 

49$4ak»0*sn 184 26 17 149 47% 47% 47% 

1? 13% Onetta Ltd 046 31 15 6? 15$ 16% 1S$ .% 

20% KkOnartz 1.K 70 10 173 16% die 16 % 

28% Osoenli Cap * 200 85 11 58 23% 23% 3$ 

11% B$aepMMS( 1X 98 163 10% W 10% 

8$ 7% Oaceril tU K 0 62 66 U 7% B7% 7% .% 

6% 5kaaaatOB 14 49 5$ sk 5% 2 

41% XOcanaeMi 252 7 2 ii i?3 3S% 34% 34$ 2 

27% 20% Oregon SS X 056 IBS 130 20% 019$ 19$ 3 

3% i%0HeriEa 4 5 2% 2% ;% 

a 20$ Orion Clp 072 12 B 2M X% 31k 32 +% 

2015k(kV*B> OX 12 7 3201 16 1?k 18 

25$ Isamus ax is 3 7* 22k n% 22 m 

26% IBkOttSfcX OX 29 41 75 20% 20% 20% j; 


8? 15$ 16% 15$ 
173 16% 016 16 

58 23% 23% 23$ 
1 83 10% TO 10% 
G2 7% 07% 7% 


W 10$ 41 

07% 7% .$ 
Sk 5k 2 


20 15k Orel 

a lBOMMi 
iskOnShd 


27% 21% Owen &M 021 09 X 1523 24% 


*% 6%DHasaMx 073 7A 
6% 7D0uPtA48 450 03 
43 15k DrtePriz IX 58 


IX 68 12 5424 


26 2D% Dttte fby* 180 78 27 760 25k 34k 25%+231 


15% 10% Cahceonjn 
59 42% Gesso W1 
2% iVOSEtaME 
15% 11% Caban Qn 
19$ 15% CSngy 
15% 9% CM Red 


25% 19% CafmaCD OX 11 53 348 
42% 36k CmpUS 1.12 10 15 SGI 


42k 36k CmpbS 
n aCarspURs 
16$ MkCBrite 
740 G03 CapCS 
38% XkOplid 


1.78 14 21 2811 74% d73% 74 -1% 

0.40 IS 19 67 025$ 24% X +% 

OX 1.4 16 235 18$ 19% 18$ -r$ 

X 558100% X X -1$ 

IX 11 2* 101 GO 048$ 48$ -% 

18% CaMQ&G 016 07222 IX 22$ 22% 22% -$ 

10% Cartmtagn 700 Ua 14% 14 14 -% 

11 1657 45% 48 45% -% 

020 9.4 2H00 2$ 2$ Zk 

016 1.3X11X 12% 12% 12% -% 

16 ai 17$ 18$ 16$ -% 

0 2138 10*2 10% 10% 

OX 11 53 348 19$ 018% 18$ -$ 

1.12 10 15 SGI 38 37% 37% -$ 

= «8 l $ $ -£ 

032 11216 1333 15k 15% 15k -% 
020 OO X IX 738 724724% -11$ 
OX 17 01170 30% 29k 29% 


mn 


CBlEtaME 020 9.4 2x100 2% 
CabonCta 016 1.3X1106 12% 
b£ngy 16 Ml 17% 

CafPed 0 21X 10*2 


a XkOptid OX 17 01179 30% 29k X% 

12% Cpeu IX IX OS IX 12$ 12% 12k 


15% 4%HXM 
IB 14% ESSO 
46k 38kE5yst» 


056 17 10 674 15% 15 15 
IX 10 11 455 39k X% 33% 


27% 24% Eari USsi IX 68 9 275 24%d23$ 


37% 24% CapstQ IS IX 6.7 7 24$ tB4 

QkSkCepaUMge 132114 7 464 27% 28% 


Z7k XkEBzp 


22$ 15% Cammed! 
35% 30% canco 


19k 1G% CnmSteQ 
H % CriOttiPc 


18 2832 20 19% 

072 12 16 38 33% 33% 

12 172 16% 18$ 
0 201 A d% 


48$ 39$ EaelOi 
56% 40% BCodik 
62% 48$ Eaton* 


13 OkCanheR- 020 18 10 122 


’S ia ?1 
11% 10$ 11% 


35% 24$ Eritan 
23$ 19% Eotali 


7A0 58 23 342 25% 
IX 38 1186 44$ 

IX 16 31 5913 45$ 
IX 13 X 1449 52% 


078 28 16 2340 


X 24$ CaTOl. 1.70 7S 11 722 24% d24% 2 

66% 56$ CprtfT* 140 4.1 14 X 59% 58$ 5 

2B% IBCaWMx 033 18 X 46B 22% 22% 2 

16% 15% Case* N 6 OX 68 14 74 16% 15% 

10% 7%CartAmer OX 06 17 194 8% 8% 

121% 68$ Cat* OX 06 15 5074 106% 104$ Id 

15 10% CO Cap 35 1020 14$ 14% 1 

36% 32% Cam Fair 2X68 12 93 33% 33% 3 

•3% lD%Cen£n OX 75 11610 I0$d10% 1^, « 

45% 25% Onto 0X 06 10 5889 Xd25$ 26k -% 

30% 27% CridrWsn 10B 7.6 10 IX Xd27% 27k -k 

25% 21% Cant Lori* 1.46 6.1 13 57 24% 23% 23$ -% 

15 11% CBdrUaln 090 B.1 6 532 llkdllk 11$ -% 
29 24% CenCrNKV 046 1.7 23 81 ZB$ 20k X$ +$ 

22 17% Coot Wild 1.42 15 10 221 17$ fflfik II 

30$ 23k CentSW z 1.70 7.4 14 1305 24 <122% Z 

27$ 21$ Camay D 032 18 19 682 X% 25* 2 

24$ 18$ Carton M 1603 23$ 23% 2 

38 XOeap&l OX 07 17 1107 29k 3$ 2 


19% Entail he 044 11 17 683 21% 21 21 

28%EdtaaiOd IX 43 13 272 29 26$ 29 

16$ EftaOi 086 13 6 B57 17% 17 17 

6$ BnsBart (S3 6 7 6$ 7 

- 1B%0torQzp 022 OS 14 416024$ 24% 24$ 

4$ 1% tet Art 2 a 4% 4% 4% 

9*4 6%4ri 122 51 7% 7% 7% 

- 2$ Bsctat 8 1254 2% 02% 2$ 

16$ arc Core 052 ia 3? s*a 16 % ib% ia% 


5 2$ Bscht 
23 16$ arc Core 082 la 37 5*2t 
9% 7k Emm airily 012 18 
65$ 66% Earns IX 18 
7k 6% Empr0473x 047 &S 
20$ 16% Entire Os IX 68 


1f0J “V 

Ben X 4994 u14$ 14 14$ +$ 

ADR 094 10 16 121 <7$ *7 47% -% 


27$ 21$ Century Tl 
24$ 16$ CerWn 
36 aorapfn 


12% OkQtaWnl* OX 11 68 


«$ -j 

29k +% 


50k 49$OHseMPIF IX SO 


30%3a$OBMM* 1X19 17 2948 


36%3a$aaHMz 
3% 1% QtaSeB 
15k 10% CtaSt^r 


X 383 13$ 13 

XoSOk 50*2 
17 2948 a 33$ 
1 IX 2k 2 
X IX 15 14% 


23$ 19% Enerpen Co* IX 53 11 97 20$ 20 20$«-1 

31$ 23% EtrebO 044 1.7151 1070 26% 25% 2S% 

16% 13Ereta8mi 056 41 11 IM 13k 13% 13% 

450376% Enrw 108 1050 14 10 *31 k 431 k 431 k 

34% 27% Ere* Ore 15 22 3631 30 29% 29% 

49 X%EreniOK 012 02 X SX 48$ 46% 48% 

51 SOErarilAJE 175 78 1100 60% 50% 50% 

101$ 97EmrilAJPE 7X0 7.1 5 98% 90 B8% 

18% 12% Emrcn OX 1.4 X 288 14$ 14% 14% - 

10*2 5% EflSrdl Bt - - - - 

37% 31% Bnpy 
71$ 18$ BdenaCa 


OX 46156 2 6% 

IX 58 12 5X S% 
25 IX 20% 


12Cbem»C OX 14 0 656 U1 2% 12% 12 


34$ 30% Owmed 104 62 16 30 

42% M% Orimeh IX 44 6 6340 
11% TkCBriPWesb OX 14 5 411 
27% 22% Owaperiai 072 10 S 227 
94% K$ QMH z 170 41 2210021 


2M 02 16 30 33% 33 33 

IX 44 6 6340 35 104% 34% 


56$ 41$ (Me find 1.45 14 114 4 

ink ii%a*$r ax is i*a i 


Bk 6% Charii Pul X 48 

37 SOOfl 6 IX 

29$ 24% Dettori X 61 

B3$44kOzjs* OX 18 617524 

83$ 70k aWH! IX 2A 18 7S 

70$ CTCtpri 3.04 5.0 IB 2545 

9% 7%a»aHI 09011.1 394 

37$S%(Scngh 146 78 12 121 

16$ 15% CtnBeB OX 4S16 ia 

27% 22 Che tee x 1.72 78 72 724 


IS? 12 3 n A . 2% EDKFtart: 

III ^ 

1 % 'S % 1S.SS, 


Ok 9%BXteaen 1.10106 74 a ID 
2k 2%GDKRmt7 1.10403 10 2100 2 


6% 6% •*% 

32 32% 

1B% 19$ 

10% 10% 

>C% 2% 

v -U 


30% 27$ Ctneo 
23 16%ctadtct 

40% 26% £>0*5 Or 
44k X%CBfcp 
26$ 2508cp9.12 
naakCtapPOu 
lSOk XCtapPOAd 
17k 14% Cm IMS A 
16 14CBIXB 
10% 7% ore Nan* 


00 48 7% 7% 7% -k 

8 IX 35% 34% 3*k -k 

43 61(130% 29$ 30% +% 

OX 18 817524 45$ 444% 44k -1% 

IX 2A 16 7S 77k 77% 77% -% 

3S4 58 18 S46 Bik 61% 61% 

09011.1 394 8% 8k 6% 

146 78 12 121 33% 33 X -% 

OX *8 16 ia 16k 16$ 10% -k 

1.72 78 72 7X 22% 021% Zlk -% 

OX 1.7 15 2S7 20k 20$ 20% +% 

325 1549 3% 3% 3% 

100 7.2 11 242 29$ dZ7% 27% •% 

(LX 0* 14 1778 19k 18% 19% 4$ 

2020*61 28 <ES$ X -2 

OX IS 9 7396 37% 36% 37% -$ 

128 BS 14 25% 25% 25% 4$ 

6.00 SS X 68 87$ 37$ -$ 

78 7,1 2 98 99 96 

22 252 15% 15% 15% ♦% 

IS M 7 372 15k 15% 15% -% 


062 13 31 2228 27% 27 27% -$ 

0X171 0 82 1% 01$ 1% +% 

1.14 31 15 281 36 35% 35% -% 

1 7 7k 7% 7$ *% 

OX 4.1 18 IBK 12% 12% 12% 

075 02 S 12% 12% 12% -% 

a 70 14$ 13k 13k At 

1.00 68 0 15% 015$ 15$ -k 

2X 4.7 14 63*4 S% 61% 61$ +1% 


4% 3% FAJha* 


16% 13% FTOeatn 
18% 14% teMCent 


18% 14% FaMCrid 
38*2 35$ Frriiad 1 
6 7% Fanaeel 

21$ io% Ftarttae 
7% BkFeyeDuo 


007 13 44 230 3% 03% 3$ 
1.12 &0 a 14% 14 14 

012 08 25 121 14013% 13% 


040 13 » ax 7$ 


1Q$ Fried toe 926 IX is 

b% Pey* Due ox ii i3 a s$ 

46% Fad Eta In IX 18 13 2501 X 

45FriK2875 166 04 17 48 

23 Fed ftty IX 6.4 41 201 24% 

6% Fedris 0.46 81129 753 7k 

XkFriSo ZS 2048 74 


IX 6.4 41 an 24% a 24% 
0.46 61129 753 7k 7% 7k 
S 2048 74 73% 73% 

OX 1.7 S 1027 20% 28% 28% 
14Q 30 10 8436 61$ 70% 79k 


X 54% 54% -1 
« «5 « -1 
i% a 24% -$ 
rk 7% 7k *k 
74 73% 71% -$ 


064 6.4 X 1558 10% 


23k 13 Cates Six 0 12 1 0 10 2372 13% 01 


69% 50%Ctari£q _ 

26% 19% Ojytofl Etn 19 586 Sk 

11$ 9%CtamenteQ 057 58 X 10k 


a 740 60% 837 
19 588 Sk 21* 


J$ Peered IX 4.7 82 400 
IkFedririSdX 042 13 16 240 
J% FeritaBS 16 7300 

ffitenoapz 0S4 10 14 1223 


X WCtaw7X 7.58 98 2 82 81 81 

45$ 34% <?«<* IX 33 7 382 38% 35k X 

66 XOevUBx 7.X OO 2 X 83 X 

55k 47Ctaro>* IX 16 151275 50% 48k X$ 

3% 22% OuB MW 030 11 12 14 26% 25% 25k 

13 10% OU mams 1.X 99 a 10$ 10$ 10$ 

16% 14$ Ooeriinen 024 lS B 31 15$ 15 15 

17% 13 Coaster OX 19 14 SK 13$ 13% 13% 

33k 27$ Coasd OX 18 X 982 31% Xk 30$ 

44% 38% Coca C 078 10 231773 39k 39% 39% 

19% IriCDcaBl OK 0313 7K 16k 16% 1S% 


10% +k 
61 -$ 


34k a% RfiCen 
8$ 6% Ftatrtz 
33% 25% nigertici 
3B 33%FMtan 8 
38k 29% FsIBeS 
B% 7%FMB(fltl 
8% FriBosa 


OX 18 31 17 9% 9 

016 06 18 12S2 29% 27% 
IX 41 10 en 38% 37% 
1.16 as 14 777 35% 35% 


8% 7% FM SMI 072 06 214 7% 07$ 7$ -% 

9k 8% FriBoeax 081 94 203 Bk «% 8% -% 

37% 32k Hal rind 032 OS 13 96 34$ 14% 34% 

S8 67% PsdMCPB Z 8X 68 2 88067% 86 +$ 

51% 50FWhACPC 380 68 10 50$ 50$ 50$ 


23$ 16$ Cow Brin 015 08 22 383 19$ 
28% 25% Cabman 21 332 Z7$ 

05%S3%Cri0Pa 144 16 16 2334 57% 
11% 9% Cotan hr 070 7.0 54 10% 

6k 7%Qtardririx 063 7.8 163 8% 

7% 8%Co*nalU 070107 X 6% 

" 7% CotantdM* 056 7S 40 7$ 

21$ CalOn 132 88 91017 28$ 

37% COHCA 012 0 3 47 37Q2 40% 

ISkComdbCo OX 1.9 91379 19% 

K% Comertca 1.12 4.1 9 562 26 

iBConriritc OEB 10 17 IX 22$ 


55k 55$ 
10 10 

4 S 
&& 
39% 30% 
16$ 19 

27% 27% 


60% 51% AriFeM 
85 62% FiW* 


44$ 44$ 

*k 35% -k 
13 13% «% 
96 56 -Jj 

80$ 80% -< 


23% IBkfriRlIF 
46% 38kFstureen 


45% 37% CrtCA 012 03 47 3702 40% 39% 39% -1 

24% 1S%CsmdU0a OX 1.9 91379 19% 16$ 19 -% 

26% a% Comertca 1.12 4.1 9 5BZ X 27% Z7% -% 

3* IHCartTritC 066 10 17 IX 22$ 22$ 22$ -% 

a 22k Canal IM OX 2.1 14 31 22$ d22k 22k -k 

3% ao awwirtw 0 510 3% 03 3 

28% 24% COenfill *2 1.43 5 6 2 25% 25% 26% 

25% 22% ComrtllS IX &4 12 22$ 22% 22% «% 

K 23 CtnmGlCin 100 04 3 7 23k 23% Xk 

28k ak CoonEd 1 W 8.3130 2184 24% 023% 23$ -$ 

1B13kCMRWil%yOX 16 23 495 14d13% 13k -% 
im 72$ Compta 19 8886 llOKKk 107-1$ 

1% kContzelNra I 110 % d% % 

44$ 27% CnpftV 014 04 15 4268 X 31 31% -1 

*2% 3T%CripSd a 875 40$ X% 36$ -k 

8$ SkCemwIGp* 010 11 3 222 B% 8% 8$ •% 

MM% Corneal* 074 33 12 3217 22$ 22$ 22$ +SA 

20%2S$CnApa* 0 72 IS 17 S39B X 28% X$ *% 

31 k 23$ CcmacrNG 1.X 58 14 18 2fi*j S% 25$ 

35 MCtznwEn IX 5.9 15 27 21$ 21% 21% -% 

20$ 13$ Cnmofler I 2811 15% 14$ 14$ -% 

71 k 60*j Coosf 4 65 4 85 7.7 2 60$ (*£$ 60$ 

35% XkConeEd 1» 09 10 17X 20% 28k X$ At 

75 67% Cana Ed PI 5.00 74 16 X 67$ X -rk 

29% £1% Cntfrt X 1652 24$ 24$ 24% -% 

47 37$ CnriBG l» 52 10 5042 38% 037 37$ -$ 

60%M%Cnftjfl 1 X 14 19 3206 55% <S« 54-1% 

20% 15k Caro Size 17 4450 15% 15% 15$ -% 

66% 49$ Consort 050 09 5 I7X 56% 55 55$ -% 

60 55 CPnr 4.16 4.15 7S Z 55 055 55 

100 B7CPtn7J5 7.45 SB 8 07$ dS7 87 -i$ 

100% 88% Goa P7J8 7 68 06 200 B9% X% 89% 

12% 7$ Com Ifcdfc a 1463 9% 9% 9% -$ 

Xk 49$ CtMBkPI 375 75 II 80% 50% 50% 

27$ Z7Coiwn US U 153 27% 27% Z7% 

35% 25k CO«Sk (UO 1 J 8 2545 35 34% 34k •% 

23$ 18k CaniCD IX 53 B 1994 19k 18$ 19 -$ 


48% 38kPsturean 
53$ SlkFMUPI 
10% 8$FriUd1 


51% nFdCMCPC SX 19 10 50% 50$ 50$ 

1in$S8$F«DfcrtCz OSD 06 Z100 98$ 060$ 96$ 

S4%41kWO*0 IX 11 6 1762 53% 52% 52% 

47$ 42% FeM z IX 17 9 554 45% 44$ 44$ 

37% 33$ Fit Fd 11 115 01 X 35% 35% 35% 

18% 11%FfcaFol OK 04 116 13% 13 13% 

60% 51% ArifeM 010 02 X1252 58% X 66 

85 62% Frtrdx 100 3J1221K B1$ 80$ B0% 
17 12k FriMb OX 11 59 107 14% 14% 14$ 

23% IBkHIFnlF 076 40 127 19 IBk 18$ 

46% 38k FstUtan IX 18 9 21 K 44$ 44$ 44$ 

53$ SlkFMUPt 3S3 7S 19 52$ 52$ 62% 

10% BVFriUdl 040 54 8 293 7% 7% 7% 

38% 32% first Hm IX 13 10 2X 87k 37% 37% 

askakrtam-oi* ix ib io sx x$ x% x% 

40 31k FtariF IX as 13 3053 37% 36% 30% 

XISkFMEn OX 14 15 2» 20$ 20% 20% 

25$ 23$firi®0fc IX 47K1945 2fi 25*2 3$ 
2*51*7 OX 1.1 17 2BI 35% 35% 36% 

33% 28% FtaPTg 1.96 12 12 1971 28% (C7$ 27$ 

20k 18% Fktaridz 079 45 17 380 17$ i7% 17k 

58%40%fbar 052 1.1 24 2014 48% «% 48k 


XiBkFtaCn 
25$ 23$ firinOR 
*4% 33$Figimar 
33% 28% FtaPrp 
20% lB%Ftomz 
58% 40kfhar 
50$ 45$ FUCCp 
7% 5kWC« 


42 400 47$ 47 47$ +$ 


20k 25*2 cnAgia z 
3i k X$ ConnecrK 
35 X Connect En 
20$ 13$ Cnemfei 
Tlk 60*2 Coosf 4 65 
ak 28% Comte 


20’ 2 13$ UOlrifTOr 1 2811 15% lit 

Tlk 60*2 CotefJ 65 4S5 7.7 2 80$ (JSC 1 , 


31 31% 

|| 
a? § 
21 % 21 % 


48 41$ Rtote CSS 
1$ 12k FgaUIBG 


17$ 12k FeamB 
7D 53$ Forte 
10$ 9 Fonb 

45% 32$ FOriWh 


OK OS 9 a 8% 6 8$ 
IX 18 IB 61 42% 42$ 42$ 
OX IS 12 582 13% 13% 13% 
IX 11 4110628 56% 57$ 57$ 
OX 94 58 9k 3% 9% 

074 10 2 1544 37% 38% 36$ 


Rmneyer* OX 21 IS IS 12 


si HI. 248 OO 1120401 31k U27% 27$ 

iD% France So 004 04 80 IT iDk 10$ 


75 67% Cana Ed PI 5.00 74 16 01 

29k ilk CngFrl X 1652 24t 


47 37$ CWIIG IX 12 
69% 54%Difbfl IX 14 
Xk 15k Cana Stn 
56% 43$ Consort 050 09 
« 55 CPnr 4.16 4.16 76 
IDO B7CPnr7a 7.45 18 


9 BFrarddPrz On 7.5 224 3$ <S 

51 33% FrtlMRs 032 09 15 <44 36% 35$ 

G 2 34$ FiriSloyer 18 *8 40$ 30% 

6$ 4kFWwlA OK 1.0 7 1$ S 

5$ 4%FrttadB 006 1.1 e 2 4k 4k 

<8$ 37k FreapMCMPr IX 44 17 x 38$ 

21% 17FMKM IX 12 B 3314 17$ 17% 

24$21$FnmQl 0.72 10 7 112 23k a$ 

X X Rlflom 11 2900 30% X 

78% eOWAmei 068 U 4 X Slk G1$ 

10*2 13$ Finn Gmy OX 05 191 15$ 16% 


S 5 

4k 4% +% 
3S$ 39 -1 

17% 17% At 
23$ 33M -% 
» 30% +$ 
81$ 81$ -$ 
16% 15k ■$ 


27$ Z7DBnWH 
35% 25k COrifflk 
23$ 18k conffle 
10$ 8k Com M8S 004 05 583 9 B$ 

11% 10% CorWHPI 1.21 11.0 464 11 10k 

7% 5%ConHxGM 1 IX 5% 5$ 

1$ ii Cooper Cos * 1824 ui% *% 

52% 35$ Coatm 152 16 13 866 36k 36$ 

29$ 23% Cooper T5R 122 QS 71 1342 25$ 25% 

15$ 11 Coe hd OX 12 11 IX 11$ 010$ 

Z7% 24$ Grata IX 45 102924 2Bk 2S% 
X$ZT%Conrt0 068 li4SS12S 32% 31% 
19% 12% Caret Tm 012 1.0 30 I2%012% 

l9 13% Country W 032 12 4 7715 14$ 14% 
Ilk 7$Caunyl»t 004 01 X308Z 8 d7k 

1 7% 15$ QutHfV * OX 5 5 34 291 16% 15$ 

12$ Ilk OX 8 70 11$ 11$ 


i 52%GATX33T5 166 7.4 
i 39SATX IX 3.7 


a s 

as 

aio$ li$ 

a 3?s 


57% 51% GBCO 
11$ 7% GRCht 
X% 29% GTE IX 6 X 

33% 29$ GTE 1415 146 86 

19kW$6TEF1X 12 75 
12% fO$GrteMBl 1X00 
30% 25$ Qrtorr OS IS 
15k 11% 3*0bL» 1J014S 

4% 3k Grivttti 004 09 
nnktoriR IX IS 
48%3T$tept* m OS 
38$ 30%8CC0S 
11$ 11G4DH1IZ 1.40116 


3S6 7.4 22 52% 52$ 52$ 

IX 17 13 77 41% 40$ 40$ 
IX 1.8 13 352 56k S5% 55$ 
17 74 11$ 11 11 


IX 00 X 8878 31% 30k 31% 


65 IX 00 IK 11% 11% 11% 
as 2S 18 18 33% »% 33% 

Lri 1J0 149 5 llkdllk 11k 

*1 004 09 17 69 D4% 4$ 4$ 

IX 28 18 I3tt E$ 61% 51% 

(LX OS X 3322 46% 4S% «% 

43 18 30$ 030% 30% 
lie 1X116 121 11% ill 11$ 

I ax 1.7 7 177 18% 18 18 

* OS 44 10 638 13% 013% 13$ 

01Z OS S Z1$ 20% 20% . 

l IX 3S 413S5 40$ 40% 40$ ■$ 

J IS 10 181 1748 96$ Hk 04$ -Ik 


29$ 24$D«n are 29 16 833 27$ 26$ 
17 MkOartJrtz 050 13 14 3 15014% 

3M*a$Dtlto 82E81 21% ZD$ 

47% 39% Crafn l.n 18 12 ZS 44k ««% 


; 1B$6mHI 
; 13%tariP* 


as 


22k 19% Mm 
57% XGriBfll 
MM WGritoe 



g$ +x 
71$ , 

34 +% 


10 BifrackFrt OX IS 32 74 8% 8% 8% 

17$ 14$iradttae 1X8.4 19 im 15014% 15 

24$ 18% (feacUrizi IB US 41 21% Xk 20% 

14 1D$ HandriBrii 044 <i 10 306 io$ 10% 10% 

16% 13$ Hriey Harm *028 IS X 116 13% d13 13 

38$ 32$ Haora 075 IS 25 200 37% 38$ 37 

26% 21 Krinatrid 038 IS 16 413 22 21% 21% 

4$ 1$ Hanson WT 1402 2$ 1$ 2 

22$ 18$ Hriiaa ADR 1JM SL3 18 4043 IBk 19$ 19$ 


23$ -% 
3 

8% •% 
15 f% 


32 29$umiia 
*3% 35$ Lous. 


SaOHlndrt 
37k 28k Lome 
18% 14 LTV 

S% 3$LTVWb 


8.16 104 14 30*i 

IX 15 X 455 41 

050 IS 14 3520 Si*; 
018 05 19 2822 SSL 
3918S1 15>i 
178 33 


S3 


46 32$ OeevaC 
xk 2*$ (Mart tad 


072 £4 15 (X 


13 1504 X$ Sk 


38%32$Udzrix 00 15X527 
24% 21% LrtpCsta OX 15 17 X 24: 
••* skLrtmtncxTX 13 X m X 


013 13 

36$ 37 

"A 


, X% 2S% UMnzin 
I 35% 27% bflotfca 
1 28k 2D%lydrthc 


x 

34k -1*2 

’s 4 
a I 


- P- Q - 


OX 11251248 
24 6 


38% 30% terete 
24% 21$Htttod 


HtaSDOAOR IX SL3 18 4043 19k 19$ 19$ 
tbnSi OX IS IE 1113 34% 33% 33% 

OX 4.4 13 *45 3$ ‘ 


I 25% BfialfoMtf 090 1641? 964 


(% X% S% -1% 
X Sk 27k -% 
25 24% 2«k -% 


43% XPW IX 13 10 S3 38$ 35$ 35$ X 

30% a% PNCFn IX 4.7 8 1219 27$ 27$ 27$ .£ 

S% 59% PPG hx £24 31 a 170 73$ 71$ 71$ .2% 

14% 10 PS Gns OX 56 1 81 11 10*4 10k -% 

26% 20% PS* « 1£4 6.0 II 99J 21020$ -U 

11$ 14$ tec AD be IX SI 33 15 14% 14$ *$ 

26% 21%P»:SCtan 012 05 17 76 34 23% 33% J. 


50% *3% Hartay DB> OX 05 96 SX 


64 SDudM 2X 4S 23 1(05 88% 57$ 87$ -% 

a 46% (tfortz ire 10 6912047 50$ 57% 58 +1% 

27% DUQL4.1 IK 72 2 28$ X$ 26$ 

r$ 25$ Oajaneire IX 7.4 2 25$d2S$ 25$ 

1$ 27% Duqano4X 2X 7.1 2 28$ 28% 2B% 

X 27Du0.il 110 75 Z20 Z7% 27% 28 tk 

29 26% DuqsU*.15 208 72 2 l£9 S 3 

IX 930UOL7.2 7X 7.7 2 94 93*, 94 

44% SDureceB 08 11 371847 42$ 41% 41$ +% 

10k BXIHtote 28 3D 9 S 9 -$ 

16 13 Dyrandce OX IA 19 33 14$ 13$ 14 -% 


33$ 26% Herman hd 
25% X$Haida 
5Z% 42 Hants 
46% <0$ Heart 
53% «3%>bni0S» 


S 5$ Hanna 
10% Hatter* 


Harman hd 19 76 30% 

KxidS 040 1.9 32 323 20k 

Harts 1.12 16 14 693 43$ 

Kamo IX 15 12 m <o% 

HuttoS® 112 4.7 53 171 45$ 

Hanna 060 11 33 62 6% 

Hamm IX 85 36 17% 


33% 33% 
22 % 22 % 
<7% <7$ 
29$ 23$ 
X$ X% 


43$ 42$ 42k -1$ 
<0%d<0% 40% -% 


9% 4$ MACan 
85% 52kU8Mhe 


36*2 32towfiar0 232 75 13 72 335 
32 27% Hetobtez IS 6? 18 236 31 = 


9k 9HHSErei 0X102 16 46 

6% 4$nntmo* ox 1.1 ig ire 


16$ V4 Hearn FM IX 10 13 4040 14% 


44$ X$ 
6*2 E% 
17 17 

X% 32% 
31% 31$ 
9*2 9% 
5$ 5% 


65% 52% HBUhc 
4Q33kMCMz 
7$ 5MDCM0I 
^^MOORea 


33% 29% PTetaa 

6 151 6% 6 6% *»% 15 %?S« 

IS IS 8 1307 55k 6^8 54k -% , n l E ^*, ll r 

1.72 45 15 IX 38% 37% 37$ +» 

12 729 5*2 5% 5$ •$ 


iS A 
Jl ^ 

4$ 


23% H friea a 


02D 0143 546 MB 15$ 15% ♦$ 


15 9% HK&M 
38% 25 HsfigUey 
36% SOkHrinz 


29$ ZZkHBtaneCorz 024 1.0 IS 5 23= 
30% Wk KetvP OX IS 26 X 26* 


24 1302 32$ 30k 30$ -1% 

16 sex 32 30$ 31 -1% 

OK 05 2D 4520 10k 10% 10$ -% 

Oli 09 26 1120 29 27$ 28 -1$ 

IX 4.1 1(2087 32% 32% 32$ +% 

024 1.0 IS 5 23$ 23% 23$ 


121% IDZHrcnhs 
53$ 43%Hrenay 
83% 74 HaeTOc 


224 12 20 2434 104*. 
IX 26 13 1723 44f 
1.X IS 1546X 7B*| 


2k Httto Dp 0.44 111 0 IS 


6% 4%Kaear 14 206 6 5$ 6 

7% HbennaAZ 016 21 13 5S 7$ 7k 7k 

5$Hriitae« 0X104 248 5$ 5k Sk 

6H*hBlZ 063 103 967 6% 8$ 0$ 

7k Hind be 057109 « 8$ B 8 


7 -$ 
24$ ~% 


■Si 


9$ 7k M YU be 057109 « 

9% 7% HI Hd ike 087 105 84 

n%n$KMn0w 049 ua) n 


81254 2% d2% 2$ 

17 5421 16% 18% ■*$ 

IK 6$ 8% 8$ 

15 23S 80% S% 5S% ■% 

IB X 19% 16$ 16$ ^% 


43% 37% Htotaril 
22$ 1&%Wnr 
74 51% itonH 
'96% 72HBact* 

7% 6% Ktenuahc 

44% 29% Hmrihp 
15$ 10$ HaawSBcp 
24$ l7%HMkM 
1$ IHnptattl 

34$ 27$ Hotobltd 
35$ 30$ HiyweE 


057109 « 8$ 8 6 -$ 

067 IDS 84 6$ 8% 6% -$ 

049 ua) n 12$ 12$ 12$ -% 

057 IS 20 S9 36% 37k 37% -$ 

9 2167 X 19$ 18$ -% 

IX 32 a 251 56$ 55 55 -1% 

IX 1.1 X 104 33% 32$ 33% -f% 

381 07 7% 7$ 7% 

012 03X5330 41$ 40$ 40% -1$ 

612614 11$ dlO$ 11 
OlO OS 51 6486 IBk 19% 18$ *% 

OX <4 0 X 1% 1% 1% 

02B 03 73 131 33% 33$ 33% 4% 


a Haines IX 5.4 14 IS 29$ (06$ »$ -% 

WSCham 072 8.1 308 8 6$ 0$ 

eHFSGOiHr 046 IA 9 629 6% ■$ 6$ •$ 

§ MS Prep 084 6.6 10 153 15 1<k 14$ »$ 

MGUGnmd II 8*3 28 27 27 -$ 

3$ Matfrfl 13 W 16$ 16% 16% -$ 

2$mrentC 322322 l5$ 14% 15$ 4$ 

3$bbgeri* 9 856 14 013$ 13$ -$ 

7%Mri3rrt>F 002 01 4X 21% 21 21$ -1$ 

0$ltota 060 IS S 637 32$ 31% 31k 

4$rt*wc IX 16 22 IK 26% 25$ X 

3% UancrCz OX 03 23 2273 27k X% 27$ +JJ 

6$ btanpmnr 0.10 05 54 224 19% 19$ 19$ -% 

4 ItanueLoe OX 11 X 35 4% 4% 4% -$ 

7% AheMa 1X212 K X 7$ 7k 7k 

4k MMBaPI 270108 IS X 24$ 24$ -$ 

g bepcD 1.X IS 14 229 63k 63% 63$ *$ 

MnNer IX 17 13 1228 17% 17% 17$ -$ 

4 Urtms 1.15242 5 74 4$ 4k 4k -$ 

6$ Mat nr 011 07 13 1551 17% 016$ 16$ •% 

4% Mam OX 1.1 X 182* 28$ 26$ 26% -k 

D%HMtoL 170 11 181228 67$ 88$ 87 -k 

S Marital 8 IX 25$ 25% 25$ 4% 

MHtar OX 11 10 1620 44 43% 43$ -$ 

7$ KaiCOC 0S6 13 20 JIM 30$ 28% 29% At 


OU 

5$ 5*2 5$ 
X$ 43% *3% 


( 3$ 3 PritanCrp 

i 23% 25$ PeceEn 


42$ 42% 42% 

=5 2 2 $ 

8k S% 8$ 


A A ? 


29$ t7%Mebrstal 
»$ 30% ms 
32% 24$ IMmc 
29% 23% MantzC* 
19k 16$ Ihnpom 
5% 4 Mznue Lo 

10$ 7%MieMB 
Z$ 24k MieriePI 

64k 56$ Mna 
18$ 15% MnNer 
5$ 4 Urtms 

X% 16$ MM; nr 
32$ 2*%Manlt 
XBOkMtMtaL 


24$ -% 

53$ ♦$ 


*a % 


»% -% 


47% 40$ Mbdtar 
39k 27$ UatcoC 


Z7$ 15k KbsaTsch OX 05 IB 5081 1 
6$ 7% Manat Pt OX 8S 47 
33*4 2S$Uureutx £60 19 S 3 3 


33% 29$ Hunutx £80 19 6 3 31% 31% 31% 
26%21%MriSd 22 X 24$ 23$ 2S$ 

176134k Mrieuririi UO OT1X 4 1G2 161 462 

20$ ZakMrita 024 IS 32 20® 34$ 34% 24$ 

45k 30 WZUSPHX 4X102 7 39% 39% 39% 

5$ 4$ MtansE OX 14 62154 4$ 4% 4% 

45$ 37$ MreOSl 1.04 17 13 6663 38% » 38$ 

3D l6Mqril 0 OX 17 39 IBM 18k 16$ IBk 

25$ 19% MBNA Con) 072 IS 18 XT* 24$ 24 24% 

24% 21% McQaKhy 032 1.4 a 141 22$ 22% 22% 

33% 29MeOriml2 230 75 8 28*2 29% 20$ 

31$ 31$ MeOemlB 2X 63 nOO 31% 31% 31% 

16$ 13%ma»hr 030 22 5 X 13k 13% 13% 

62% 54$MdMd OX 06 10 3245 57% 57% 57$ 

122% 102% MtOnDg 1 AO 1 2 12 8*1 118% 115% 115% 

73 B2$ McOmH 232 15286 304 K 85*2 85$ 
72$ 52$ Mritaai IX 12 22 6311 U78 78 78 

48$ 38% MeXCpx IX 14 19 11K 42% 41% 41% 

20*2 17% MeariiBZ 044 14 X 118 18% 17$ 18 

25% 22% MadCmAm 8 235 23$ 23 23$ 

35% 31%Mritturix 267 7S 16 234 34% 34% 34% 

87*2 06% Mdtoc OS 08 19 697 74$ 73 73% 

38$ 20$MaimaDp OX 11 21 963 a 23$ 23$ 

28$ 26$ Mefoe 6kH x 2X 9S X 27% 27 27$ 


6 5061 16% 015% 15* 
47 7$ 7% 7* 
6 3 31% 31% 31* 


OX 11 13 917 31% 31$ 31% -f% 


22% Hrtitarfd 029 1.1 10 311 27% 27% Z7% 


26$ 18% Hera Mb 
22$ 18% Harm* OX 

15% 12% Kansas 0X 

13% akrtrtfcr OX 
2$ 1% Hotel he 
53 38$HeastanMz OB 


25 X 23 
OX 16 13 132 19$ 
OK 04 32 2052 13% 
OX 11 17 1702 9% 


73 22$ 22$ 
($018% 19 


8$ 5$ Kaon Fab 048 7S 2 72 6% 6$ 
35% 28$Hribl. IX 4.1 11 1532 30% 29% 


27$ 26$ Htadlhg 238 OS 15 26$ 26% 28% 

13% 10$ Ho-el 015 1 j* 24 3 11$ 11% 11% 

$ Horton Frt 012 06 14 IX 15% 15% 15$ 

17 (tify Carp 034 IS K 84 18% 18% 18% 


32% 19%HtfwStp* OX 07 2A IX 28*2 
22% 16%Minm KB75S 3* 4389 18% 19 


19$ irPcrtp in 15 111633 17% 016$ 16$ -% 

24$ 20 PacSd IX 58 10 1467 22$ 22 22% -$ 

35 23k PtcGE IX 14 10 K18 24 023% 23% $ 

33% 29% PTem £18 73 K BBSS 30$ X X -1 

& )5%PablH OX 3? 3S2SB 15*2 015 15 -% 

»% 16 Mi 037 23 X 1341 76%d15$ 16% -k 

5$ 18%PriieCx 064 44 14 5326 19% dra 19% 

X$2rfPMfcEta« OX 1.1 21 X .10 29% 29% -1 

6% 4$ Psrtdk 137 45? 5% 5*2 5$ •% 

43$ 34 Partoh IX 24 31 3210 «$ 42% *3% -% 

2$ 1$ PaMdtPt 3 37 2% 2 2% 

10% akPstam ox I* 200 8k s% 8$ -% 

S 3 PzttanCrp 6 » A 3$ 3$ -% 

S$PBGeEn 1.52 5.6 10 4389 38$ 25% 26 4 

66 57%PtreflAS 4.X 72 1 63$ 62% 62% ' J* 

9 XPspney m 3J 14 6430 52$ sok M$ -2 
r% 22% PeczfL 157 7.3 11 1422 X% 22$ 22$ .$ 

)% 45k FnzQI 3X 12 12 444 46k 49% 48% b 

!% 26% Pstrite IX 17 II 405 27$ 26$ 27 -1% 

% 2S% PepBoreM 01? 06 3 3231 30% 29$ 29% -% 

>%35%P«taCO 0.72 26 18 9053 35% 05% 35% -% 

1$ Z7PUtea OS 24 51 2S78 28% 27% 27$ ♦% 

k ISfWdmfm IX 7.3 14 47 1807% 17$ -% 

$ 4$ Pemtan Be z 01 1 23 10 197 4% «»; 4% 

Ik 5%ltany Dim 4 23 5% S% S% -% 

Ik 16$ Prihe 032 18 161330 17$ 17% 17$ 

% 27%ltadm OX £7 X X 29% 29% 29% *% 

1% 23% Prirte OX OS 23 473 24% 24% £4% -% 

1$ 53% Ptezx IX 32 X 4612 X% 58% 59$ *1$ 

$47%PlriteO IX 30 X 2102 55% 55% 55% -% 

$ 54FME43 430 8.0 ^0 54 054 5* 

B2 54PMEL4 4.40 11 2 54% 54% 54% 

i$ 96% PME7.7S 7.7S 10 1 97 X6*4 97 

% 17%MSmm IX ID 14 33 18% 18 18 

n 47%PMtor £76 55 1221180 50$ 49% SO -2 

33 25$ PtfPtX 1.12 35 32 6493 32$ 32$ 32% -$ 


27% 22% FerzfL 
58% 45kPina 


32% 26% Peq£n 
1 31% 25% Pep Bo, 


*1% 35%Prttol 
39$ 27Puan 
21k lOFWriritei 
6$ 4$ Pemtan ft 
6% 5%nmfDni0 
i9k 16$ mm 
30% 27%PStae 
29% 23% Petrie 
69$ 53%PSazx 
69$ 47% PtnteO 
80*2 54 PME4J 

B2 54PMEL4 


Ittfj 96% PWC7.75 

19% 17% PreSdUh IX 56 14 33 18% 

61 47% 819400 £76 55 1221 IS M$ _ .. _ 

X 25$ PtfPtX 1.12 15 32 6493 32$ 32$ 32% -$ 

39 32% RriVH 015 05 20 110 32% 1130*4 30$ -1% 

23% 19%PMdranMS IX 5.1 13 39 M$ 2D% ffl% -** 

10% 7%PMr1 top* 010 \2 14 2117 8% 


24$ ♦% 

lii 

S’- 

ts ^ 


11$ akrtomm 
9% B%Pt0rimaP 
22k 19%PMHCpz 


Z7$ 25% non £13 £12 13 
14% lanonmte 015 u 


033 II 236 11% 10$ 10$ -% 

OK 07 0 82 8k 8$ 3% 

OX 4.4 0 2885 16$ 018 16 -2% 

£12 13 3 25k 25$ 25k *% 


122% 102k McDaQg 
73 B2$ McGraH 
72$ 52$ Mribrii 
48% »% MeadCpx 
28*2 17% Mennig 
25% 22% MsdCBton 


*3 


41% -1% 
18 


18%l5$HariMteC OJG £3 16 Z7 16$ 15% 15% -% 
11$ Sfnsbgdoa OX 5.7 11 47 6$ 6% 6% 

10$ 9$HHta1aaz 1X106 240 9% S$ 9% 4% 


59% S2$MlMk 
4i% 3&%Uekfc 
10k io%ttrti 
41$ x$itoca 

38 28% Merek 
10% 14kMricvy 


10% 14kMricvyFta 028 IS X 440 1: 
45% 38k Mrttl 0J2 1.7 24 IX 41 


2B$ 22% BP he 020 06 15 1600 25% 24$ 25 -% 

10% 8% CXPharra 14 246 9 6$ 8% -$ 

31% 34k IPTbe* 2X11.4 * S 25k 25% 25% 

11$ g$R1PrepV 084 7S 13 2*2 10k 10$ 10k *b 

5 2%CFKa 31 67 2% 2$ 2$ -% 

30% 25% Brin Per IX IA 11 IK 25%dS% 25% -$ 
39*4 33$ Ua Carp 19 IS 38% 37k 38% 

28 25$MPis442 £21 65 2 28 26 26 

49$ 45XW756 178 13 *100 45$ 45$ «$ -$ 

28 24$ B H4S ZX 12 130 24% 24k 24k 

2fi 24k ■ Pr*2 210 15 Z1K 24k d24% 24k -% 

S2% 471P1&24 4.12 6£ 5 <7% <7% <7% -% 

38%32%toataDl 064 25 15 848 34% 33% 33% -% 

47% 42K%AFFA 100 7.1 Z1 00 42 042 42 

51k 49VHARK ISO 6.7 JlOO u52 (Q 52+1 

22% 19$ X# 0X 40 20 1470 21 20% 20% -$ 

50k 440 252 11 13 829 49% 40% 40% -% 

46% 30 1IC Fvri IS 28 19 10T7 36% 36% 3B% 

10k 6kbriM 050 4S 3 7BB 10% 10% 10% -$ 

18% IBHAtBriri IX 10 23 16$ 16% 1B$ 

23*? 21 % hco x 040 1.7238 2093 24% 23% 23% -1 

CT$ 04 hUMPTX 746 U 3 93$ 089 B9 -5 

30% iBbtfeGrth IS 10 231 19$ 10% 19$ +% 

23% l6%taJB IX S3 14 71 10% 19% 19% +37 

21$ 12% hdanFbta OK 04 52 13% 13% 13% *$ 

15$ 12%takeeco 14 5S 14 13% 13k -% 


SiSK 


2X 9LS S 27% 27 27% 

£24 40 12 806 56 55$ 56 

IX 3S 13 1365 40$ <0 40% 

OX OO 15 10% 10% 10% 

IX £8 15 14X 37% 30% 36$ 

1.12 17 1818298 30% 29k 30 

020 IS S 440 15$ 15% 15% 

ore 1.7 24 IX 42$ 42 42% 

OX 28 8 6406 38% 35% 35$ 


14% 13 nanh 

388 303Rmy21Z 
46% 37 RDoyB 

31% 2l%P(Bta 
28% 19% nemOuB 
27$ 20% PWa Pel 
13 BneytoB 
32$ XPbreDsak 
21$ i5%ngaRud 
35$ 29%Pl*d 

3BkKknc)Mi 
4S% 37% Ponton 
32% 23$ Pop* A Tail 
14% 10% Portae Zn 
15$ i2$tattgriF 


S 197 11$ 11$ 11% 
II 13% 13% 13% 


Z100 303 B303 332 *29 


PttoeyB IX 28 IB 1581 37$ 37% 37$ *% 

PBb 020 08 18 1381 X$ 23$ 23% -$ 

PMCriOm 026 12 47 7005 22 21$ 21$ •% 

Ptto Pet 024 1.1540 28 21$ 21% 21% -% 

PStaMB 7 99 6% 6% 0% *$ 

Me Dart IX SS 13 495 26% 25% X -** 

rtfloProd S 3415 20$ 10$ 20% +$ 

POM OX IS 22 570 32% 31$ 32% +% 
Pistol 11 191 29% 28% 28% -k 

Ponton OX 1.0 41 119 40% 39$ 39$ +% 

tepaSIrix 070 32 13 72 24% 24 24% +% 

Portae ta: 12 48 14% 14% 14% •% 

Paring* f OX (LS IS 13 12% 12$ -V 


29% 22% Pawn See 072 £9 20 1220 23$ 


10$ 8UeshkM 
55 51MSE3S0 


□fid OX £7 Jin? 2% 
2 853 6% 
TNz 0X113 16 4* 3 


49$ 39% POOl 
28% 21% M£P 
19$ 16% Ptto 
36% ZBPrectatan 

88% S7%Praartt 

»% 20% Pram 
15 11 Murk 


$MneMolP 2X237.7 2 


IX 19 X IK 40% 39$ 40 

IX 11 10 3881 ?1$<E0% 20% 
028 1.5 17 3435 ID 18% 18$ 
024 08 17 IS 31% 31% 31% 
IX 21 14 7T6 75$ 74 7*$ 

040 IS M IS 22$ 22% 22% 
26 132 14 13% 13% 


15 16 9$ 


60 51%Pn*3G IX 23 7D 6013 54% 53* 

0$ 27$ Row OB 020 07 9 2111 31% M 


w 


ISO 7S *70 
ax it 7 i« i 
__ 049 IS 7 4® 2 

6k 7%W 8 143 7% 7$ 7% 

3% 2% Mrtrinr OX £0300 20 3 3 3 +% 

10% ^e MWWtob 002 03 28 400 B$ 6% 6% -% 

10% OkMilAinn ax 11 79 9$ d9% 8% -% 

5138%Mto 066 1.1 *413S 50 «% »% 

56$ 46%MMI 1.78 IS 8 3828 49$ 46% 49% 

27 181*001 Re* 32 3312 19$ 18k 18% -% 

22$ 16% MtariBlA 048 £5 24 16 18% 19% -19% -% 

23% 17% UKHES 053 26 15 19 18$ 19 

7$ aiBUCrip 14 8X 3k 3% 3% 

2B ZJHttabBk OX 03167 B 28% 26% 26% 

32$ 72 Matrix 3.40 *3 18 3354 79% 78 78% +24] 

20% l*%Mehatar 13 S42 16$ 15% 15$ +% 

12$ 9% ManMrt 020 IS S 13 10$ 10% 10% -% 

18% 15% MaftAurin 019 1.1 12 17 16% 16% 16$ 

83$ 72%Mrafltox £52 11 18 2862 62$ 80% 60% -$ 

10$ 5% Ukx( Edso 078 13 2 IS 9% 9$ 9$ -% 

25$ 23% Montana PO IX BS 11 62B 23$ S% Z3$ -$ 

20$ 17UontanSi IX SS B 117 17$ dl7 17 -% 

20$ 17k Moore top OX S3 22 283 18$ 17$ 17$ -% 

p XUmndP £72 4.4 7 4845 63% 62% 02% -% 

11k SkMageefirrii 1.16 1U 167 ifl% ID 10 

68 78% ir^ndPPI UB 82 2 K)% 90% 80% +% 

13$ !2 Morgan tin OX £3 S 54 12% 12% 12% 

9 5% Morgan* 54 25 6% 6 6 

60k a% Mpfi IX £0 6 1840 G0$ 59k 59k -k 

29$ 22 Mtnbl QX 17 IB SO 22% tfftk 21% -% 

111$ 79$ Mrtnh 1.12 IS X 1426 M 81% 81$ -3$ 

55 42$Htnta OX OS 1213804 44% 43$ *3% -$ 




7$Agiriltt 
23 Promu* 


50 49% W 
4 40% 49 
ft* 18k 18 


OX 15 24 16 1B% 19% -19% 
053 26 15 IB 16$ 19 


16k 16$ 
23% 23% 


14 8Q2 Sk 
QX 03167 fi 28% 
IX 43 16 3354 79% 
13 242 16$ 
020 IS » 13 10$ 


: 32kbtfM 
23$k*Sl 

skharsrri 
, lOkHSNrt 


070 £0 22 10K 35 34% 34% •% 
OX IS 16 1205 32$ 31% 31$ -% 


OX 2S 
020 1.0 16 


4 9% 9% 

5 Z0$ 20$ 


HegraRiz IX 36 9 48* 48% 


5% merit* 16 16 Sk 5$ 5$ -% 

mmehert 2 81 1% 61% 1% 

_ . 24% WerHsgx 064 27 * 78 24%(Q4% 24% •% 
20$ 17$ Uerctaz is 83 41 18 017% 17% -% 

3% 2kMrta 2 K 2$ 2% 8% 

60 5T% SMx IX IS 15785 S7% 50$ 57 +% 

22% 15% HFuS 23 70 16% 1» 16k -% 

38*4 35k hJ FF IX 3S 21 917 38% 35$ » -% 

18% T5% Wtt OX 43 22 IX 16k 16% 16% +% 

775 60kWX IS £7 a 2828 63% 82k 63+% 

- 27$htpuj OX IS 16 783 31 30% 30$ +$ 

BkUrilUhtx 0.12 1J S 22 9% 9 9$ 

26% nsPN 2X 7.7 18 20 Z7% S$ 27 -$ 

4% hfTAM 0 231 6k 6% 6% 

22% kritoseTz 012 06 24 80S 23$ 022% 22$ -1$ 




21% 18% Prep Tr Are* IX 02 a 962 V 
4% 3%Presp9t 042 112 321 : 


40$ProtLf 

25%P1zUB 


79% 76 

io$ iok 
16% 16% 


10 % -% 

a -j 


1%PuUrtar 
24% PUB 


026 10 16 79 6% 6$ 8% +% 

30 3708 37% 35 35 -1% 

IX 12 3 962 19% 19 18% +% 

042 IIS 321 3$ 3$ 3% 

1.12 £6 11 44 42$ 42 42% 

- IX 4J 12 91 25% H24k 24% -$ 

% JtHudKre 0.16 853 0 135 A 0-18 A 

X 51% PbSenMX <X 7S 1 53$ 53$ 53$ +$ 

102 91$ PdSstvT.40 7.40 BS 3 92$ dBI 32$ +1 

99 KRSrnCnlx 7.15 7S 2 91$ OX 91 +74 

103 98%RCen7S 7X BS 2 98% tttS 06 -% 

32 XPhMBG £16 85 10 3779 Z7d26% 26% -% 

13% 11 Ph S Mea M B JL 10 1636 12$ 12*2 12$ -$ 


23$ -$ 
17 -% 


28$ ZMtaibi 
111$ 79$ Mrtnh 
55 42% Iflrtta 

k jlubiRm o ire $ % % * 

6$ 7kMnh0pz 063 73 75 6 7$ a 

11% 9% MriPBdTx 072 7J 338 9% 9% 8% -% 

9% OkMUtatptl K5 73 IS 8% 8$ 8$ -% 

13% 10k todrihe* 077 7S 613 10$ tntft. io$ -$ 

46 31% UnbyO IX 3S 22 640 44% <3$ 44 -% 

i2% iok mare IS ox IS is xiw 12% 12% i2% +% 

25%15kMto*Sbi 016 0S19 3BK 18$ 18% 18$ -$ 


I Z7$ Ittptdj 

i 6k kdereil 


63 +% 
30$ +$ 


ilk 9%naniBaeb ore 7 b 
10$ a% PutrenHgar otb 7S 
8$ 7% RriwriaGv ax as 
14% llkPrtartNGr OK 7.5 
n$ fikPumnMn ore 7J 
8% 7%naxtMash QX OS 
Bk 7%FUnandlM 075 92 
8% 7% PatanPran 072 9A 
71% filkataOl) 212 33 
14% 12% (ttart St 040 3S 
22% 17 Qnen 056 £81 
24% 21% (toestVri D ix S3 
13$ 12QueriVaiP ix 9.7 
35% 29% Doezra i.tO 35 
38% 24$QUetRny 048 IS 


10 1836 12$ 12$ 12$ -$ 

0 4 1% 1% 1% 

1X104 613M 18% 17% 17% -% 

058 IS 19 5 38$ 36k 36k . 

024 1.1 6 2167 24% <122$ 22% -1$ 


07B 76 119 10 9$ 

076 78 03 9$ 9k 

OX as 624 7$ <0% 
OX 7.5 133 13 12$ 

07B 7J 212 10*2 10% 
OX as 389 7k 7% 
075 92 216 6% 8% 

072 O* 558 7k 7% 
212 3S 14 649 B4% 63% 
0« 3S 27 119 13% 13$ 
056 £6109 704 20% 19% 


63% 64% +% 


13$ 13$ 
19% 18$ 


1.10 35 14 468 31* 
04B IS 6 IX 26^ 


112 23 22% 22% 

38 12% 12% 12% 


31 31 

Z5% 25% 


M 22% MtooeTx 01Z 06 24 90S Xk d22% 22$ 

19% 13 hi tad SO 416 15% 14$ 16 

3$ 2 H Torn 104 IS 3% 3 3%+% 

Sk 43% tab 22 82 44% 44$ 44$ -% 

24% 22%btalBIE< 1.73 BS 11 IX 22$ 621% 21% -% 

35% 30k bam Bd £12 7S 15 374 31%lOO% 30$ -$ 

11% 8$ ttal bee 007 06 S 9 B% 8$ 

12$ 9$rtlrPim 007 07 161 11% 10$ 11% +% 

X 23$ KM top S 107 27$ 26$ 28$ At 

104% 00% ITT* IS £3 11 35*6 BB$ 85$ B5% +S1 


•% , 

X * 

22 $ - 1 $ 


82:8384 8$ Sk 5k •$ 
27%2ikRUtop 0S6 25 9 IM 22% 22% 22% +*a 

15 8$R0CTtoai 015 IS 3M7 0% 9% 9k -% 

.*% .ly*?**^ 032 SJ 55 634 3$ 3% 3$+% 

15? S5 S**" 1 1054 15$ 15$ ISk -Jl 

553" 22? RIKrf ’ IX 36 10 487 33% 34% X% "V 

40% 33% Ftayrtnz 032 09185 Ml 35 34% 34% -% 

16$ 14% ReyJaoeeF 032 £2 a 179 15614k l*k ■% 

6SJ 60$ltarfel IX 22 12 1688 62k 61$ 62k +$ 

<7% aakReaoereOA 1.40 14 17 1276 41 40k 40$ ■% 

. I ? IS 9 8 5$ 6 . 

Jfk IBkHetridllV IX 7S 14 31 17% 16k 16k At 

15% 9$tert«Kq 18 386 9$ 09$ 9$ J .2 

35k ZSkReriwA 030 IS 11 12M 30k 3$ 29$ +% 
A Oil Rag* ha 14 67 A 015 015 , 

B% 5% Retwcs 032 53 B 1653 6% 6 6 -Je 

35 28$Rop«<ADR 073 £2 18 2478 32$ 32$ 32$ +k 

M%45$RepubHY IX £9 B 732 47% 46 « -lk 

29% 16$ HaxStr 19 35 ,7$ 77$ 17$ -% 

?$ 3Re*n*to 4 246 6$ 5$ 6 -k 

25 XRayiflA 034 IS 8 270 21$ 21% 21$ •$ 


45% 88% JltarerPF 3SB 07 
463B%JnraL £50 OS 
14$ Bk JeehtaEn 032 £2 
26$ 19k JacooeEng 


14*? tr%Jri>Ota 019 IS IS 

50$43$JeRPx 172 £5 11 956 

1D3 101 Jtap>7S 7S 7S Zl« _ .. 

61% 47k -tBBDl 144 £1 14 BS 47$ 446$ 46$ 

45k XJmU 1.16 2S 14 4615 41% 40k *0% 

18k 0$ Jodtaanz OS 4S 12 * 8$ «$ ’ 

K 15% Jotoreh 088 5S 25 1523 16 15$ 


Bk JiiaiaD OS OS 


£38 07 a 38$ 638k 38% 
£50 90 47 38$ 036% 36% 

032 £2 16 386 10% 9$ ID 
17 836 21% 20$ 20$ 


OS OS B4 8$ 9% 9% -$ 

0 135 jfi d$ A 

019 IS IS 12$ 12k 12$ 

ire £5 11 956 49% 49% 46$ +1ii 

7S 7S zioo 1D1 mm 101 


J? iS0 U 14 ‘WZ «% «k 46-2% 

g 65k 56k NK top IX IS 15 59 81 58$ 60$ ♦$ 

45%KeCrt (LS 14 39 S 51$ 61% 51$ ■+% 

32% NriCOOl OX £9 16 1875 34% 33 33 -1$ 

25%toJ« 072 29 7 17 25$ <B6 25 -$ 1 35% 

HkKto-Ul 032 £8 81511 IlkdlDk 10$ -k A 

IX 1B11381B 61$ 51% 51% -$ 8% 

«% K%»nrtdeHtt £K05 16S38k 38 38 %+% “ 

48% 39% NSAuSia 1.72 4.1 14 57 41% 41% 41% +% 

S J*"£SL 1 - 16 <- 4 10 780 26% 28$ 26$ -% 

fbzlz '““SSS'S'Sl 2 

*2 nCUE** 1J4 14 13 71< JSkdZBiJ 284* 

SStt a*8 £8156 3915 £ R S ^ 

g«}»NBPlW IX 44 17 19* 44% 43% 4^g -% 

_ 52 53$ HriSaOJ PI 4 00 OS 15 ffi$ S% S 
M$ lEkKfieni 1410167 20% yt% wft. *z, 

“"i «Sa i 


a 24 war 1.16 4.4 

23 16% WDm ox £5 
7k 4$ Net Ettacn 
{t inator 
M% 28$HaiFtari ix 5.4 
17% 13% HMfi 

18% UkNHNK 046 £8 
S 42% NS Plato ix 44 
82 53$ totem PI 4 00 OS 
24$ 16$ NzSend 
28k 24$PIOen« rx 4.1 
re% 7kwama 
26k 16$ Nentr 
54% 5)% Natori G 6X11.7 
30% 77% WDX IX 4.1 


J* 

16% -% 


7% 5%ReadBak 
18% iBkHeetom 

A £11 RegrihB 


S2% 45$ ItapubHY 
23% 16$ Rtafiri 
7k 3 RnmO 

S WBoynBA 034 IS B Z7B 21$ 21$ 21$ 

B*k 40%ReynM IX £3 8 1SS 44$ 43 43 -1$ 

21$ 16% HhonePAOS £tn 1£B 3 16% 016% 16% , 

37% SOkltansPitarz 1.12 04 11 365 33$ 33% 33% *% 

20 15% ItoAU OX 12 13 832 10k 19 19 -k 

227* _ * #15% 015 15 

38 336 036% Sk » -J 

I- 7 ® 7 A 11 in 24$ 23% 23k ? 

0 20% Hart Tel OX £6 6 935 21^ 21% 21% -V 

.ffi .5^ Rertta PP O7D110 5 304 5k 5% Sk 

44% 35$ Mata IX £7 13 2708 37$ X 38% -% 

1 * jjaHadaMriri a 170 B% C% 5k V 

60 53% HahnHi IS U 33 7S 58$ 57% 57k +*8 

11$ Bktoir 10 413 Bk 8% 8% -V 

Jk 4% IMUBN 010 22 » 191 4% 4k 4k ‘J* 

30% 26k »»•« 050 IS 21 215 »$ 03*2 »$ 

21$ 16$ fiorinsTrl* OX U 16 499 17*> 17% 17% 

9% 6k Am 93 2141 7*2 7% 7$ . 

Z7kWeRorafiMr i.« s* x a% a sk 

lllk W$ KMrt 411 £6 19 G1S ink IK 109% ♦% 

1,5 14 us 12V 18% 12% ■•v 

35k23kFWamdz 0*6 1.7 19 2137 a% » » 

0J8 1S15 103 18$ 18% 16% ♦V 
16k 12% Aoefienta OX 4J 23 370 14k 14% 14% , 

.c^ 5 ,bI ^* 0.X 1.4 ZJ 191 27$ 27% 57$ 

2^ 16$ tot 18 IB 16% 18% Wk +V 

W$a%RydeiS OX £6 18 316* 23% <C3% »% T* 


30% 27% WO Hi IX 4.1 11 715 29% 29 2B 

18% IfitorttalMu 1.1 26 27 15$ 015 15 

» » 7% 7% 7 k 


29 2T%AU(Racti 0J2 IS 33 3ffi a% 27% 28% +$ 

25$ 21% KNEearu 0.* 42 14 415 3 22$ 3 $ ^ 

68 82$KanCK5z 4 SO 72 f 82$<S2$ 63$ 

28% 24%KaneU>Prz 220 17 11 s 25% 25% 25% +% 

9k fl% Karen Sr 082 £5 O ft ft A ^ 

4 % 3toriMw 7 419 3 3 

23% 20% KriiCjP \J& 7.1 12 2082 21% d20k 20% .1 

16$ 14KenCyS4% 1.0D 7.1 16 14$ fl* 14 

52k 37 KriBBsSh 030 08 17 37ST 3»% 937 38% A 

0.10 IS 16 208 8$ <£% 6% -% 
26$24kKWbto £29 IS 24 43 K$ Zk Sk J+ 

“$ 17 1B18 « 17% 17$ 17$ -M 

10 9HBMAUZ 072 BS W 8$ £ 1 

5 3S& 18 ! 17 « i«a so% 49$ 48% 


SVSJltoJtalta 1X62 13 31 

20$ He* FISH U2 SS 34 134 
30*2 a%WSEG 220 87 12 1487 


KkakNYSEG _ 

3 !?"*- 072 IS 19 780 40$ 2B% ~40 

17% 13$ NetaX 0« ZS 41 81 14% 14% 14$ 

90 37% mums 0S5 £1 37 54D 40$ 39% 40*1 

5 0.48 1JZ 35 361T 41 40^ 41U. 

rn SISSSS ^ 15,852 S’% 50% 50k 

K SHriMteyPI 3X £8 Z1X 86 98 06 

£» £4 £100 41 43 fl 

2!«l 7 E5h 1,2 M B5B66 77016% 16$ 

kffiKkea OX IS 12 15« 54% 33% X 


as .+ 

es% 25% -1% 


gala s si 11 ! a a a + 


7k skRoduaRm 
60 53% HoiinHi 
11$ Bktor 
6% 4% RottaBtr 
30k 2G% Rotas* 


lllk 98$ mmai 
13% 10$ RoynKd 
35k 23% Rthnudz 
ZMBktottri 
16% 12% tosfietrfc 

31 »toaltez 
2Ah 16% tot 
23%RydgiS 


Rov9£cnt 1.41 54 

mmai *n i* 




19$ Rytand to OX £i 38 ' u 191 


I 27k !?$ 

I 16% Wk +V 
I <C3% Z% ■? 
! IBk 19k *$ 


E% 35% Kemper* or? is anna 3 53% 69% *1% 

10% BkKaowHi 090100 2K 9% a g j! 

JS 7% KWtoa r Be z QX SS ®i 7% i7$ 7$ 

3% iltotariNM 087 7.4 202 11? lit 11? 

i^a njnK Bcreg Sriz os2 gs bz 12 11% nk 

58% 42%Kcsawz i.« £3556 217 5l$ K »% -i§ 


« « 77 « »% 29% 29k -T% 
^ W 020 25 4 382 6 7k 7* JZ 

22$ HobMJI* 016 05113 4247 29k 29% 2^ ^2 

7% .4% tod to 8 271 ZS 12 t? 


are 05113 42*7 29k 29% 29! 

7% 4% tod to 8 271 6% ^ 

fJi’teWfib ix £1 I3 1H3 82% 81$ All 
M6 1.4 2* 1BOO 33$ X3% 33. 

lia 2 ,^1 Sr?** °- 10 10 112 9 8% a- 

13*4 12$ HBi Fartt* OX £2 16 121 13% ,3$ ,3: 


a a ■si ji 

2$ " I 81% -k 


“V f Mb W IX 72 13 187 19% 19 ' W 

73 038 ai B 4 11$ 11$ 11$ 

24$ 18% BPS Te IX £7 3 55 22k 22% 22% ... 

14% 13% Sri** fl* 1.07 £1 8 209 13%dt3% 18$ ^ 

wsmead ox 1.1 16 438 17% 1?% It 

35 22$ Satee'dSc 13 71 32% B% K% 


Contbued on md 




v- ‘ 


Otaett 
m lotSS 


AMEX 


\ i N • j 

‘1)1 

^ ] \\ \\ % 


*K-:, 




FINANCIAL TIMES TUESDAY MAY 10 1994 


37 


NYSE COMPOSITE PRICES 


NASDAQ NATIONAL MARKET 


ipmeaseMayS 


IBM 

mil Ian Stott 


tu n 

Db % £ 


»0* 



Continued from previous page 

ia%iJ$stiyia ojp z<t b an i<% u% n% a 

27 19*4 Salftey 23 1330 243# 231* 231* -l 1 * 

6* 4%SaeMfW6 10 558 55 b 55# 

57$ S0% SUMftper 020 04285 17 56% 

30% 23SU0SUPX 1 B0 54 14 14 25% 

90 75% Stffeul 300 18 7 514 Tty 

9% &%SttrtPp 9 17 ft 

49% 38% SafleMae 1.40 15 8 2025 40% 

13% 11$ Salomon Brr 028 13 783 12' 

52% 44% Satan 064 U 6 1703 
25 19% SoOgCE 1-52 7 & 10 729 
10 ?%5rtaF«B6 0.16 18 9 197 
40 34$Satfefcc» 180 7 6 17 04 

28% 20*2 SuftP 010 05 11 3809 21 

28 20% SSd«e 064 10 14 7992 
50% 44% Seam cwp 
20% 15% Snap 
40% 34% SdwrarW 
69% 51% Scnrplx 

61% 50% Sdinto 120 21 23 38T9 57% 56% 

33 25% SO*ntl(Q 4 028 14) 13 tin 27% 27 27 

10% ^Setattw 26 14 9% 9 

36% 24% ScUH 012 04 67 3031 23% 

16% 13% Soman 0.10 0.7 12 51 13% 

46% 37% SctHf 080 1^101227 43% 

28% 1B%SoittWtf 021 14) 62 21% 

12% 9% SeuAOrtEuF 016 16 27 II 

18% lBSooCnB i 070 4/4 7 5 16% 

16% 15% SttCl 4825 IA 9.1 8 16 15% 

31 20% Stt^m 056 10 36 4453 28% 28% 28% 

29% 23 Sapid En 37 646 29% 28% 28% 

31% 26%S8BtodMr 21 172 28% 27% 27% 

56% 42% Scmfl I JO 14 7 6126 47% 48% 46% 

13% 11% SefigmSel 084 7.1 63 12 11% 11% 

3B% 30SMwnrawtx 022 07 33 1681 33 32% 33% 

39% 27% SequaA 080 10 5 10 30% 30% 30% 

40% zaScqwB 050 I* 16 8 31% 31% 31% 

28 22% SanCp 042 1.6 19 963 24% 23% 23% 

28% 22Srtltt 092 17 13 304 25 24% 24% 

25 17%Sta»M* 022 16 25 2659 21% 20 21% 

24 19% Samwltt 080 17 19 2470 22 21% 21% 

14% 11% tatty W>« 028 23 26 2 11% 11% 12 

66% 58% SMTr 107 4.7 20 619 66% 65% 66 

~ 29% Shark OS6 13 18 2487 30%d29% 28% 

17%Sboneys 12 832 18% 017% 17% 

15% Showboat 01 0 OS 23 301 22% 20% 20% 

T.T2 62 10 1830 18% 18% 1, ' 

1 3 87% 


162 OS 11 218 45%<M3% 43% -1% 
1.42 97 10 9380 15% *4% 14% -$ 
Z7 13 36% 35% 36% -% 
104 12 15 9795 64% 62% 64+1% 

' " ' -1 


Walk loasaek 
18% IGTWErmp 
77% 62% IBWx 
11% 7%T2Medd 
29% 22$TaMnRJ 
7% 5$1afeytod 
12 % 10 Tam « 

44% 34% Tmbrds 
16% 10% Tandem 
<9% 30% Tour 
12% 9% Tans Mat 072 7.4 56 

22% 18% Tam tog x 1.0! 53 14 1734 


33% 23% TWan 
4 2% Ttoasr 
26% 14% Tefelyn 
46% 34% TetaEsaSA 
76 50%Tcfeeex 
54% 43% TBprt 


GNpe 

». Pf Sk Eta* Pk>. 

Dto to E tab Hob Law ibato Ooca 
1.63 917 16 96 17% 16% 16% -$ 
169 11 19 890 »$dG1% 61% ♦$ 
OIO 09 10 2861 11% II 11% +% 
274 28% 27% 23% A 
042 7.4 9 108 6 5% 5% -% 

1-00 95 3 10% 10% 10% A 

168 4J 18 874 35$ 35% 3S% -% 

2 2595 11610% 10% -% 

080 1 7 14 1445 35% 35% 35% -% 

' 69% 9% -% 

19% 19% -% 
29 29 


060 21 18 255 

2D 17 3% 

aso 5.7 54 1196 15% _ . 

1.05 18 7 1792 36% 37% 37% 
1.53 IB 1117010 55% 54% 54% 
1JD 22 36 1100 45% 44% 444 



3<£s 19% Tmguifinlt 017 06 297 22% 21% 21 


*% 


-1 




9pMBttx 1.00 24 13 1439 41 


24% 17% SkUm 
5 3% SLMs 
5% 4%Sa8hCora 
13% 8%Safltti 
32% 26%Sma» 
10% 23% SKBEqU 


: 36%SnpOnT 
21% 17% SnyttrOi 
34 2S%Sohdran 
33 383ml 
81% 46% Sm, 

19% 15% Sofcaby* 
vPt Sara cap 
45% 36% SB8C4S5 150 09 2 

24 19% SOUaatod 1.44 7.1 12 22 



31 3325 
1JB 8.4 34 120 

016 14 47 123 

048 15 17 45 19 

006 1.6 13 73 3% 

020 4J) 83 115 5% 

99 3161 13 

122 4.1 14 61 28% 29% 

. 121 4 J 2953 27% 26% . 

34% 1B% SmOnRf/ 052 16 13 3459 16% 018% 18% +27 

26 20% Bunker J 050 22 17 112 22% 22% 22% 

44% 36% SnpOnT 1J8 10 181048 37 38% 36% ■% 

21% 17% Snpfer 08 024 12 25 434 20% 19% 18% -% 

28 2527 28% 27% 27% -1% 

1.08 3.7 0 4244 29% 23% 29 -% 

047 09123 157 54% 54% 64% -1 

034 1.6 76 5811 16% «14% 15% -1% 

320 08 23 42 41% 41% 

036% 36% 

_ 20 % 20 % -% 

050 11114 1284 24% 23% 24 -% 

120 62 10 24 19% 19% 19% +23 

088 3J 8 112 18% 19% 19% -% 

1.18 85 5 9275 18% die 18% 

1-85 5J 11 72 29% 28% 28% 

1.76 60 51 818 30% 2974 29% 

024 01 28122(1 27% 28% Z7% 

078 48 10 191 16% 16% 16% 

57 16$ 16% 16% 

318 27%dZ7% 27% 

116 8% »% 9% 

11 6% 8% 6% 

21 15% 15% 15% 


30 22%S8tttt 
22 17% sewn* 

20% 16% StfWCp 
22 18%S0toC0x 
33% 28%Sa8M6E 
36*4 28%9ETd 
39 26%SWUr 
19% ISSaffiWSK 
<8% 1S$SdUBWB0 024 14 16 
30% 27% SouTWW’S* 120 8.1 10 
12% 9 Spain Find 048 4-9 

7% B Spann cp 
18% 14$$toeraD 
®% 31% Spriog 


012 08 


II 


38% 32% SprW 
18 14% 


SPX 
<4 Sal Com 
14% I 


121 38 II 45 32 831% 31% 

1 00 17 26 3180 37% 36% 36% 

040 17 19 413 15% 614% IS 

040 13 9 32 18% 17% 17% 

032 10 11 150 1B% 15% 16 

12% 7% StandPedAx 012 13150 410 9% 8% 9 

38% 28%afW 084 11 14 496 30% 30% 30% 

056 10 17 29 20 26% 28% 

1J» 18 2D Z79 34% 34% 34% 

38% 38% 

a 


30% 24$Sbntaii 
37 3t% Sbnflom 
44% 37% sarnie 
25% 23% Stamm 
11% 10% State MA 
20% 24%SUfaO0k 
7% 6$SM0op 
b% a^saapowp 
35% 28% SMuSara 
10% 7$8MFtax 
31% 27% StonaBNhb 
18% 9% Stone Cm) 
27% 19% Slop Shop 
16 13% ShEqu 
41% 26% SfeTrt 
r 22% Stratus 
18% 12SMWto 
32% 23% Stem Roto 

4% 2% Suas tan 
10% 10% SuiDfeAx 


5% 

7% 

43% 33%Sunamrx 
49 41 Start 

11% SSmttwM 
3% l$SuwMI 
47% 43% SU« 

14% 11% Si*Mf Food 
46% sosramr 
40% 30% Supd 
20 11% Surg Cm 
23% 18% SMStMi 
25% 15%9|mBqlT« 
1D% 7% SyrnsCrau 
19% uASynmnFn 
23% 12$Syiteix 
29% 24 Sysco* 


1JB 16 18 145 
068 10 21 17 
088 86 22 1L . 

080 24 6 100 25% 24% 24% 

020 19 6 4 6% dB% 0% 

(LOB 1J9B 1772 7% 7% 7% -% 

24 554 31% 31 31% A 

012 1J 4 22 8 8 8 -% 

060 19 33 331 31 30% 30% 

071 4J 3 1806 14% 13% 14% +% 

23 1406 27% 26% 27% A 
084 55 16 205 15 14% 14% 

38™ 26% ' " 1 -^ 

038 10 11 1522 l3% 

1.20 17 18 357103% 32% 

030100 1 6 3 3 

1.10 105 7 42 


4SOID18BF 024 48 4 151 
5$ Sui Energy 020 48 58 42 

040 1.1 12 174B 
130 26 18 100 
1.19 116 105 

4357 

138 18 12 383 
038 11 13 103 111. 

012 04 21 764 31% 

088 18 12 1314 31% 

016 11 15 340 13 

008 04 704 10% 

50 3806 25% 24% 

W 30 B% 7% 7% 
045 16 15 130 17% 17% 17% 
134 45 1236417 28% 3% 23% 
036 15 21 1853 25% 24% 24% 



- T - 


6% 5 TOY Enter 02D 3.6 22 153 5% 

34% 28% TCF Rime *1410 3.1 10 59 33 

9% B$ TCWComS OB4 9J? 658 9% 

48% 34% TDK Carp A 047 1.1 45 30 44% 
2% 1% TJ5 Mm 02011.4 0 51 1% 

29% 21 TJX * 056 25 13 4969 22% 


3zjj *% 


I 

U22 22 -% 


TenpttAAe 050 07 166 6% 

8 6%THnp8GF8 DiO 86 2245 7% B% 7 

58%48%7M0» 150 35 17 3251 47% 045% 45% -1% 

30 25% Topped PS V 240 8111 7B 29% 29% 29% -% 

23 313 2« 23% 23% -% 

OK 08 1 84 7% 7 7% 

050 10 23 285 T% 7% 7% ,% 

21 221 11 % 11 % 11 % *h 

ISO 45 M STM 65% 65% -% 

023 03 16 50% 50% 50% 

0.3 05 45 1070 37 36% 38% -% 

072 15 14 312S 78% 73% 73% -2 

040 2.0 24 11 20 19% 

JOB 04 19 6200 34% 032% 

1.10 335 2 70 3% 03% 

1.40 16 12 1876 55% 54 

206 5 4% 4% 

035 23 — — 

02B 1.1 


31% 20%Tndma 
9$ 6% Term 
8% 6%Tmlnos 
12% 5%T«sara 
38% 61 Taan 

51$ so loan c 

38% 20% Taos Me 
B9% 31 Trtrcn 

21% 18% Tam Pic 
43% 34TMU 
4% 3% Tod has 
60% 50% Toon 
4% 4Thacfeoar 
24% 14% The! cep 
37% 24% TM Find 
44% 36 Thenao&c 012 03 21 

29 22%1MoW 068 18 7 

68 58% ThBrt 124 36 21 

18% 1 3 1 ! Thomas M 040 27 38 
41% 29% Hoorn M x 240 69 14 
23% 19% Tktotox 
34% 28%TBenr 
44% 34% Todtan 
37% 28%Tntt» 

37% 32Th*en 
B 2% TKanOp 
13% 11 TtoeiPlx 

4tj 4 Todd SBp 


20 *h 
^■1% 

. .*a ^ 

298 15% 15 15% -% 

ltn9| 25 25% -1% 

5B5 38% 37% 37% -1 

135 24% 24 24% -% 

192 62% 62 62 -«* 

1(0 14% 143} 14% -% 

54 35% 34% 35 -$ 

040 10 33 424 21% 20% 20% -% 

018 15 44 533 30 29 29% -1 

032 08 68 8368 39% 38% 38% -% 
168 35 24 248 31% 31 31 -% 

1.00 36 78 362 33$ 33 33 -% 

7 206 6% 6% 6% *% 

150 81 Z100 12% 12% 12% +% 

S 65 4% 4% 4% 


15^ 11 % Ttomttn'Co 05B 45 33 27 11% 011% 11% 


_ _ 26% TataCZJl x 181 109 
19% 11% TglBras 
75 62%TaotofcM 
40% 38%Tdnek 
SO 1 ! 25 Tam cap 
X 2S%Toscn 
28% 22%TottoSra 
40% 32%TpfiU» 

25 22%TnBttK 
57% 48$DnaOB 
53% 45% Traasdan 

16$ UTcneau 

14$ 12% Traracre B 
17% 11 Trenstedii 
43 33%7lettx 
15% 13% Trudapa 
37% 34TICHK15 
26% 16% Trtac 
64% 55Trtw» 

2412 21% Tricon 
47% 33Trtr*r 
40 Si%Thon 
32% 24% Dten 
4% 3% Tucson B 
7% 4$ Tutor Op 
14% 6%TieHshln 
28% 14% Twtt Com 

£1% 18% TtotoBocx 

S% 44 Tyco L 
W 8 Tyro T 
6% 5 Tyler 


14 701 13% 13% 13^ -% 

038 06 IB 77 83% 661% 81% -2% 

1.T2 19 11 870 38% 38 38% ♦% 

048 15 18 57 26% 2% 26% -% 

060 10 12 717 30% 30 30% +% 

014 06 38 16 23 22% 22$ 

21 3338 33% 32% 32% -% 

152 82 10 4 23% 23% 23% -% 

100 S.B 9 1114 S$ 52% 52% +1% 

036 07 13 385 51% 50% 51% -% 

060 39 11 700 15% 15% 15% +% 

3 3 14% 14% 14% 

024 15 13 10 16% 76% 16% ♦% 

060 16 6 7326 34033% 33% -% 

014 1.7 14 47 14% 14% 14% -% 

250 7.1 8 35 34% 35 +% 

5 ffi3 1B% 17% 17% -1% 

1.04 1J 23 1077 60% 58% 58$ A 

078 14 349 22% 22% 22% 

068 15 20 470 35% 34$ 34$ -$ 

068 20 92 502 34% 34% 34% A 

0.10 03 50 613 29% 29 29 -% 

32 2057 3$ 3% S% A 

020 3.7 33 499 5% 5% 5% A 

012 15 226 7% 7 7%+% 

064 17 51055 17% 17 17% 

070 35 18 6 10% 1B% 19% 

040 08 27 B20 48% 47% 48% 

0.10 12 4 305 0$ 8% 8% 

73 IS 5% 5% 5% 


im 

me Lew Stott 

30% 25% tkffn 
17% 15% USUGD 
10$ 9% USLRtac 
1B% 15% UK M* 
45% 32 USX US* 

17% 12% USX Deft* 
31 27%UiEp1.775 
31% 26% U9urp 


53% 44% VFCp 
24% !9%Wan£x 
12% il%vwereNCas 
7 4% van tac 

8% 7%ftwampWr 
10% 9%ltotttt4Kri 

12% 10% nnwpniu 
T 5% vemoha 
39% 2S% Vtotui 
S0% 33% Wray 
15% 13% tetour 
78% 64% UK8PS60 
40 32%Vfcnsykt 
25% 3J%«aaRa 

2B% 20% Mwatoc 

94% 73%VMdvw 
14 I^VMolHr 
16% 16 Von Cos 

as% pHm 
51$ 45% VufcflM 


KH ft 
Ob % E 100* 

56 13 S7W 
024 6 67 

0.84 B8 0 S 
IBS 44)421 7873 
1J» 31 7 2932 
020 1.4 IE 59 
1.76 &2 19 

169 57 15 552 

- V - 

12B 26 12 1165 
062 25 
050 42 38 
008 15137 
059126 
150 112 
OB4 7.8 

X 

014 07 12 

28 2385 
1.12 62 0 45 
500 7 6 

17 
10 
20 

163 16 25 976 
IB 31 
17 366 
100 50 40 45 
112 10 18 IB 

- w - 


30 28% 
17% 17% 
9% 9% 
17% 18$ 
32% 631 % 
14% 14% 

3^ 


CVpa 
Eton free. 

(tom OMe 


17% 


0 % -% 
a -4 

29% -1 


50% 46% 48% 
20% 20% 20>2 
12 12 12 

a a 
,a 
A 

38 
13% 

3 

, n% 

24% 24% 
18% 80% 
11 $ 11 % 11 % 
17% 16% 17 

33% 33% 33% 
45% 614% 44% 



-1 

+% 


*$ 


-% 

A 

*% 

I 

*% 


29% 21 WHS ho 20 137 

32$ 27% WPL KttSax 162 8.7 13 151 
20% i31Mankc 
35% 30%ttHnn» 

14% 12% Utottattut 
5$ 3% Ktotocco 
37 wapn 


36% 31% 

29% 23% 

5% 2% WtonerkB 
71 GOmxLiini 
18% 15% Htttrwgj 
42% SSmshGL 
25 % 21 % I 
284221%! 

32% 19%WCBJh 


+.70 


28%23%IUBFh 
8 5% ins 

61% 48USF3S (.1 

36 »use 

29% 23% UST 
51% 49% USX Cwto’l 
150 122 UW. 

10% 6% UDCKra 
24% 20^2 UGi Cop 
11 % OUStc 
27 2D%IHRftCX 
17% T4%U*M 
74% aOIMw 

128% ioiun*Wx 

50% 42%LtoCxnp 
27% 21% IkiClrt 
13% t0% Won Cap 
54)2 48UnBS60 
87 BO UnS 450 
38% 33%UAc 
67% 55%IHtoc 
27% 23%(MmRUi 
22 16% LUmTexas x 
2% !|lMfti 
16% UAUntays 
J 2%UMQxp 
41% 31$ UdAsael 
15% 12% UannWy 

22% 18%UjOon*et 
4S% 37%UHM8ra 
40 35% UhBumn 
A 5%Uhftehnix 
13$ 10% UHKoaeFal 

% awd%nai 

15% 6%U5tt 
16% ll%USFBfi 
23% 16% IE mar 
29% 19 %USHoom 
41% 36% USUCp 
18$ 11% USShM 
32% 15$ ussag 
46% 88%USW0et 
72 5BUMTBC 
’4% 12J 
16% 133 

j 2H%Unl»Foodsx 
17% 15$Ur*r«Ti 
% AUMML 
12% 0%uniHrCip 
26% 17%UMDp 
30 24% Unocal 
SB 48% UMM Carp 


. u - 

054 3.1 18 836 
38 8 

4.10 83 12 

6 1700 
1.12 43 15 3788 
3.75 7.4 3 

STS 1716 
1.68 27.4 5 214 
T.38 04 23 292 

13 51 

058 13 15 330 
OIO 06 17 9 

280 43 9 3 

454 43 15 1150 
136 33 80 2SB 
075 29 2S 4425 

16 25 
150 73 200 

450 7.4 tSD 
23B 73 11 034 
180 23 18 2886 
064 33 9 <30 
020 1.1 S3 146 
0 287 
277201 7 3746 

23 90 

096 12 16 888 
OTB 5.4 72 279 
020 1.0 18 3 

003 01 18 8760 
176 7.7 10 127 
028 47 6 70 
015 13 23 

14 15 

012 1.6 01220 
020 15 13 170D 
37 232 
3 55 
124 33 8 375 
022 1.7 62 034 
006 05 S 1845 
114 53 34 71S3 
130 18 18 8140 
092 63 13 111 

24 65 
082 10 14 69 
1-90 103 11 145 

0 129 
030 2 9 32 21 
OBB 52 10 730 
080 IS 21 5262 
096 10 11 1887 



10 j! 

3% 3 3 

32d29$ 29$ 
14% 14% 14% 

36% 35% 35% 
6 5% 6 

r% 


13 13 

20 % 21 % 
19% 


7> 

133 

Zfi 

19$ 10% 19*2 
37%' 27% 37% 
16% 18% 16% 
17% 17% 17% 
39% 38$ 38$ 
63% 64 

14 14% 
14% 

10 % 10 % 
27% 27% 27% 
47% 46% 47% 


33% 

17 

$ 


1 

| 

& 


<0% 36%IMngRn 
11 6%«tt*tnSI 
2B 24% Wetoftx 
10% 7%We8ca 
24 17% MMIsan 
150%127% HMfeFx 
18% 16%Nmdysx 
25% 23% toes Co 
18% 15% WetttoE 
44% 39%WMa 
15% 9% WstfUn 

20% 6%«ano 

2S% MtottlEBB 
_ . 16% IFassiMng 
34$ 27$ WsOlBdS 
15% 10$«ttoB> 
5$ 4% toomOxX 
19% 13%9Wnimte 
20% 15% Mtesac 
38 29% team 
51% 30% wynsri 
21% i7%1NNzlatin 
73% 52%W**I 
14% 11% WhltoM 
17 14% Whfcui 
17$ 13%WM»or 
32% 25% Meaner 
8% 5$ VAcoAE 
30% 22% Mn. 

7 B% Wtohtre 

10 6% fttanean 
58% 45% 9ftn0e 
13$ 0%Mntoago 
27% 24YltaEnx 
33% awtotfios* 
18$ ISDtaO 
35 27% WBca Clap 
30% 22% iftBCT 
24% I0%m«enm 
28% 12$ WaoMhx 
18% 14%WaUHUl 
6% 4% tfertdcap 
53$ 43% VMoley 

20% lfl$W)(alabv 
22% i8%*yimH 


25 24 24 

S 2B% 26% 
16% 16% 
1JB 3J 11 1967 32 31% 31% 

0J6 17445 8 13% 13% 13% 

48 551 5% 4$ 4$ 

088 1 6 29 559 41$ 41% 41% 

084 10 16 118 33 32% 32% 

017 07 2410628 24% 24% 24% 

004 1.4 7 45 3% 2$ 2$ 

144 15 S3 8070 70% M 70% 

1410 68 2 163 15 15% 1512 

122 5.7 14 72 40 38% 39% 

14* 4J 8 191 22% 22% 22% 
4J0 18 17 233 238% 231% 231% 
048 18 21 47D 31% 30$ X$ 
2 % 2 % 

Si Si 

9% 9% 

24% 25 

0% 

23 


_ _ 170 31% 

3% ZWoeaanM 04* 38 0 37 2% 

18% 14%Mtt>CDa8x 020 18 IB 139 15% 

128 BO 27 142 37% 37% 

084 6.7 13 120 10 A 

073 28 15 80 S 24% 

032 37 11 1311 8% 6% 

020 09 181205 23% 22% 

480 28 18 689 143% 142% 1 

024 1.4 21 788 17% 16$ 

044 18 16 B 23% 23% 

088 &1 12 432 17% 17% 

237 43$ 42% 

12 30(8 12 11% 

. . _ 62 2292 16% 15% 

35% 25% WMiEBS 020 08 21 S3 27 26% 

23% 18% Mam Ittig 013 12124 17 20 19% 

186 7.1 10 285 78% oZ7% 

020 1.8 18 S605 12% 12% 12% 

032 68 0 24 4% 4% 4% 
25 667 17% 17% 17% 
030 23 5 35 17 16% 15% 

1 10 35 40 XI 3 31% 31% 31% 
120 19 15 3214 41% 40% 45% 
04* 03 21 505 18% 18% ' 

122 22 17 431 56% 54% 

17 11 11% £01% 11 . 
OM 12 15 1180 15% 15% 15% 
17 X 14% 14% 14% 
156 B7 14 208 27% 27 27% 

OIO 1.7 12 467 6% (S% 5% 
084 30 12 7130 28% 27% 27% 
005 08 14 16 8% 8% 6% 

16 T720 U10 9% 10 

184 11 14 264 45$ 0(5% 45% 
24 50 12 11$ 11$ 

181 5.8 13 450 24$ 24% 24% 
1.78 62 11 181 29% 26% 26% 
040 24150 29 15% 16% 16% 
1.00 35 62 1076 2B% 28% 2B% 
080 13 27 5386 26% 25$ 26 

018 07 13 98 23% 22% 22$ 
1.16 57 4 7088 17% 17% 17% 
1.20 77 71 15% 15% 15% 

i6 m 4% «% +% 
048 1 0 33 720 50$ 40% 40$ 
020 15 20 X 18$ 18% 18% 
044 21 13 118 21% 21% 21% 




-X-Y-Z- 


101$ 87% Xentr 
54% 50 Xatn4 125 

50$ 40XXaDxp 
25% 21% YonkM Epy 
40 33$YtnW 
6« 5 Zapata 

13% 7zme 
?4% 20% Zanfti Natx 
7$ 6% ZenCr he 
16% 12% Zero x 
28% 20%Zianhd 
13$ i2%zwtogRna 
10 % B%MgT«lx 


380 31 
412 78 
056 12 
1.10 55 
018 04 



90% 96% 
54% 54 

47% 46$ 
21% 021% 
30$ ' 



AB> ton mptod 1 9 Tetotoo 


warty Mto* "4 lew* to WSE totox Bto paW fen Jm 1 1IM. 

Warn 1 s** or ad Atone x m nto*i n 25 pwm cr on ka one 
am. la joofe Utfvwtt ranpa m ddmd m toon to *• an tttt oft. 
laim (toentta end. im* to ttttod m and dttewnrk hato ■ 


li+nn paly toe fetoMdtod dKtoto er pad 
ptoadad a fttoa tom. aam to m 
a dattnd toto kto+* or nxx tttoato H**+ 
■hod ptog tor par, BtoBto. defend, or « atta xdaa m fern omm 
aeetop. k ttl ifend itoeton or pad an jaa. ai nwitott o tow all 
iMfenfe ■ oiton iHwe aaa n da ra 52 eattk. Tta M0+fea range 
tophi ato M Itoi to aatoop toaat dto dtttoy. ML nrt ce mnp itoa 
itttoad todato a pdg k paak# 12 eatow tts ttitt dHoad 
Md fed. CMBBd* tagti Wto tm to qtt tt+xtaa tdadato ptol h 
■feck b pModfep 12 rada. otoafefl to eda m »*Hdwd or 
ar-dtofeoBan Ode. iraa letoy enfeg Mtod. «-fe to aiu p c y a 
to ea Badoipky fa. or koaluo 


racta iwMU a o+tVto oton il Uiagi w+JhM 
1 to™ to ka. po-ytoe iwa to ml 


AMEX COMPOSITE PRICES 


4 pm dose May 9 



B4H Ocean 

BadpoWr 

BafdwnT A 

BanyRS 

BATM 

Beard 

BMeMai 

Bto-R*d A 

BhunA 

BtwVafar 

Bowmar 

Bonne 

BrassnAx 


055 0 26 

066 16 Z100 
004 31 325 

17 120 

029 12 314 
B 6 

040157 20 
48 56 

056 38 9 

333X100 

30 33 

030 10 10 
184 13 85 


Zji 2% 2H +A 
21 % 21 % 21 % +%. 
5% 5% 5% A 

16% 17$ 17$ A 
7% 7% 7% 

1{ * T P ’2 , 
22 21% 22 ♦% 
17% 17 17 A 

35 34$ » -% 

10 10 10 -% 
3% .3 .3 -A 




12% A 


0*nV 1 

Candrar 020 13 

CanUarc 028 
DanoraA 001 

Chambers t » die 

Chsitoan 46 103 32% 

0*5 212 928 ^ 

CfecRi 004 57 243 t 
CntnfdA 001 450 


27 22^ 21 if 22^3 +.70 



iy 9i 

Stock DhL E 100s tflflh U* Ctoae Ctoq 

Oanhco 030 20 IS 15% 15% 15% 

Caaptonc 0 70 $ d$ $ 

Coned FM 4 3 7% 7% 7% 

CraesATA 064525 380ul6% 15% 15% A 
QnMiCA 040 46 10 21$ 21% 21% -% 

Crown CB 040 16 20 19% 19% 19% 

Coble 053 91 10 21% 21% 21% A 

Cunomadb 15 13 2K 2$ 2$ -* 

El kits 12 270 1 $ 1 n », 

27 50 16$ 16% 16% A 
8 36 4% 4% 4% +,£ 
51 76 0% 9% 9% +% 


Ducamnun 
Diatai 048 


Eaton Co 
Eadamp 
Eton Bay 
EcolEn A 
EtostaRs 
Ban 

EngyServ 

EpBape 


046 15 16 16% 16 16 

1J22PS 42 20$ 20% 20% 

007375 4242 11% 11% 11% A 

020 10 5 12% 12% 12% A 

6 41 8% 8% 8% 

13 851 33 31% 31% -1% 

47 27B2 3S 3% 35J A 

101133 17$ 17% 17% A 


Febhids 064 12 
RmA 320 15 
FsTOyBne 020 13 
lU(e(J)x 052 70 
ForutU 26 

Frepueocy 2 

earn 080 7 

QsdFdAx 072 13 
GtotRfe 070 32 
GoUMd 2 

Groorann 3D 

GtotCda 034 20 


15 34% 34% 34% 

11 71% 71% 71% 

10 11 11 11 +% 

83 S$<W% 25 -1 
747 21 d20 20% -A 

740 15%tH5% 15% -M 

4M ^4 5^ A 
60 3£ 3>« 3% 


1 v as 

Ob. E 10b High LnaCtoea drop 

HmShCh 4 301 3% 3% 3% A 

3% 


HEtttmt 

Hflco 

ttmaotgcA 

jCHCorp 
UnhunCp 
k*. Corns 


3 313 

H 31 ii%'iii| 


102 

11% A 


Jar Bel 
Ketome 
RnarfeCp 
Wray Exp 
KogrEq 


1 832 5% 5% 5% 
012 26 18 10% 10% 10% 
4 405 5% 5% 5% 
90 392 18 17% 18 

OK 17 4070 18% 17% 17$ 

3 937 5% 04$ 

20 39 13% 13% 1 
22 20 4% " 

24 448 21 

63 459 7% 

a *0 in 1i» 1 

158 7 0% 9% * 

7 17 24$ 24% 




MatPtnt 

KYTmA 

KBCenOI 

Nnik£ 

NYU 

OdetksA 

OWan 


7 671 iU 
0583801508 25% 
17 0% 


020 11 



> 0f2 0TJ 9*2 

IS . 8 6% 6% 6% 
12 10 6% 8% B% 

34 135 t*% d9% 9% 
024144 351 31% X 30% 
040 952733 17% 17% 17% 


14 


paw 
PM LD 
many A 
Ply Gam x 


n sk 
Dk. E lOb 
080 51 69 

184 50 113 

023 18 400 

050 19 15 

012 27 E 

090 18 272 

OIO 1 44 

31 2 

3 194 
0 45 

SJVCcrpxll0 10 5 

SbnUekn 17 15 

Start B 094 15 190 

TIM 
Tan Pro* 

Ti 


R8SWQ) 


ToMA 

TomCntry 

Trton 

TiftosUex 

TtnaftA 

Turryflrfi 


21 87 

020 56 3 

036 55 525 
84 421 
34 158 
020 23 2348 
0 107 
8 100 
151639 
007 68 162 
0.071 BB 843 


■gb tawCkml 

12% 12% 12% 
27% 25% 25% 
66% 56 06% 

363+ 36 36 

21% 21% 21% 
14% 14% 14% 

1% 1ft 1% 

29 26% 29 

6 $ 6 % 6 $ 

2 m% 2 

37% U37 37 
10 % 10 10 % 
13% 12% 13% 
3ft 3% 3% 

10% 10% 10% 

37% 36% 87% 
14% 14% 14% 
31% 31 31% 
17 16% 17 

a% aft a% 
1% m% 1% 

4% d4% A 
iBdlBt# 18% 
1B%tf18% 18% 

|% 2^ 
5% B 
28 28 28 


A 

A 

+% 

3 


a * 


UMFWffiA 5 S3 

lAffboftS 020112 30 

IWHe 17 27 

USC8U 88 32 

22 528 20% 28% 28$ 
4226 27% 28% 27% 
252827 10$ 10>4 10% 
Weomw (L60 24 313 28% 28% 28% 
1.12 18 03 12$ 12% 12% 
090 10 74 23% 22 22 


4 

4 


Maoris 


5 


MKT 


Xytranb 


4 105 3$ 3% 3ft -ft 


GET YOUR FT DELIVERED TO 
YOUR HOME OR OFFICE IN ATHENS. 

A subscription hand delivery is available in Athens. 

We will deliver your daily copy of the FT to your home or to your office at nd extra charge to you. 
If you would like more information atom subscribing please call our local importer. 
Hellenic Distribution Agency, on (01 ) 991 9328 or fax your requirement to 01/99 36 043. 





~r=a_ 




ASS kins 

acc goto 

Acdarn E 

Acme Mas 

action Cp 

Aaanetoi 

AfiCTet 

Adatngfcn 

AdaServ 


pi ax 

Dh. E lOa 
020 2D 8 14% 14% 14% 
012 88 3181 I9%816% 16% 
198278 15 14% 14% 


tow un 


2 % 


21 264 24% 23% 24% +% 
28 97 20% (CD 20 
15 1673 16% 15% 1552 -ft 
33 1889 42% 40% 40% 

14 206 15% U% 14% 

016 21 53 76.05 35% 35% 

Adobe Sys 020 20 8880 ZB 24 24% -7% 
Ad«n»C 0 110 12$ 12% ij% 

Ad* Logic B 60 5% 1$ 5% +% 
AttMym 7 140 5% 5% 5% A 
AOvTtoidb K 287 15% 15 15 

Adttnla 020 19 2023 38% 38 38 

Artymai 10 335 14012% 14 

ApencyftB 21 617 12% 12% 12% 
AonfcoEe 0101ZT1088 11% 11% 11% 
ABExpr 020 14 144 21% 20$ 21 

AMOA0R 250 71 3* 59 58% 58% 

Aldus Cp 38 2660 28% V 27% 
AbBdi 088 17 532 24% 24% 24ft 
AletoiSW 16 473 8$ 6% 8% 
AfcnOrg 052 12x100 £ 22 X 
Alton Ph 6 951 11% 10% 11% 

Atad*p 180 12 215 14% 13% 14 

Afld Cap 080 12 160 14% 13% 14 

Aketts C 032 48 73 4% 3% 3$ +% 
AtQGtod 085 61111 1% l£ 1/, +& 

AfiaraCa 34 5328 35% 34% 35 -% 

Am Banker 068 8 52 22% 22 22% 

AmCtyBu 14 40 IS 15 IS ■.% 


• 1 % 

A 


A 

A 

+% 

-A 

A 

A 

-i% 

*A 

-% 

•2 

A 


22 +1% 
9% 

•% 
-1 
A 

♦% 


Am Uanap 21 1177 u22 20% 

Am Med B 131107 9% 0% 

AmSodwa 032183 264 5% 5% 5% 

Am Frtwys 30 S3 19% 18% 18% 
AflfinA 050 15 6383 28% 27% 27% 
AirWP 2 724 ift 1* ift 

AmNtti 220 7 6 48% 4^2 48% 

AoPtarCom 41 2730 S% 21% 22% +% 
Amirov 9 466 12% 12% 12% A 

Amgen he 16 8877 44 42% 43% •% 

Anted! Cp 088 26 2447 19% 18 18% -% 

Annfh 4 475 10 9% 0% -% 

Anatoglc 14 60 15% 15% 15% +% 
Anatyetsx 048 13 6 17 16 18 

AnanpeHm 180 14 239 17% 17 17ft +ft 

Andrew Cp 201365 37 36 36 A 

Afkfe»%i 9 414 18% 17% 17% -1 

Apogee En» 030 23 27 12% 11% 11% A 
APPBto 9 565 7% 6$ 6$ A 

AppUMti 28 8323 45% 42% 42% -1% 
ApprnC 048 2712701 32% 30% 31% -1ft 
Aoptobees OM 40 4234 1 0%m5% 15% 

Arbor Dr 024 3B 18 17% 17% 17% 

ArettO 028 20 993 27% 26% 26% 
ArponaulX 1.16 6 198 28% 27% 28 

Amur* 064 20 13 20% 19% 20% 

Aimed In 040 17 177 20% ^ 20 

A9(E>p 2 829 9% 9% 9ft 

AspedTel 24 2017 29% £^4 V 
AssocCBtnra 324 97 23 2% 22% -1% 

ASTRsrtoi 114142 18% 17% 17% A 
AOdneon 21 205 8% 6% 8% 
AUSEAfe 032 20 1627 28 27% 27% 

AuUtt 048 21 2393 53% 52% 53% 
Mskdo 11 45 3% 3% 3% 

Avondale 002 15 170 7% 7% 7% 


■1 

A 

A 

♦% 

A 

A 

-A 

•2% 


A 

■A 


BEI B 


Bekerti Wt 
Bate J 
BWwrlB 
Banctoc 
Bidfoubi 
BattenCp 040 9 
BkdmorSi 080 11 


- B - 

008 10 22 B% 6% 6% 

8 273 0% 9% 9% A 
30 % Oft ft -ft 

086 12 807 2D% 20% 20% A 
024 3 177 14% 14 14 

16 120 22% 22 22 A 
044 11 2333 19% 18% 18% -1 

35 18$ 18% 18% 

22 19% 10% 19% 


■A 


% 

-1% 

A 

A 

A 

+% 


-$ 

571877 13% 12% 12% A 
088 15 10 45% 48% 46% -1% 
02D 22 147 9% 8% 9% J 4 
024 15 1760 7% U7% 7% 

076 8 139 34% 24 24% 

048 0 40 3% 3ft 3ft 

28 5294 20%mB% 19 

22 163 lS%tf12% 12$ 

29 315 8% 6% B% 

50 24 31% 31% 31% 

5 15 22% 22 22% 


BaftWoo 020 28 151 33% 33% 33ft 
Santa Geo 082 19 762 35% 33% 33% 
Basse! F 080 14 598 26% 26 26 
Bay Mew 060 11 248 21 20% 20% A 

Bayttttox 1.40 13 480 SB 57% 58 +1j} 

B8ST Rn 188 B 2D1 20% 28$ 28$ A 
BEAm . 20 222 B% 7% 8% 
BffiuttK 028 28 85 13% 12% 12% 
Ben&Jerry 14 682 I5%d14% 14% 
Botteywn 044 14 1272 39% 37% 37$ 

BHA 6rp 012 13 117 9 dB% 8% 

Bine 97 94 5% 4$ 4$ 

HgB 012 18 349 11% 11% 11% 
BhdkyW 006 13 563 12% 11$ 11$ 

BO0* 37 2924 35% 34 34% 

Bona 171117 10 9% 9ft 

Block Dig 1JM 11 5 30% 00% 30% A 

BUCSeftw 17 5439 55% 51% 54% +1% 
Batmen S 1.24 101186 31% 30% 31% +% 
Bab Evans «0Z7 19 234 21% 20$ 21 
BoolaSB 14 31 27% 26% 27% 
Borland 23 3707 12% 12% 12% 

Beaten Bh 075 5 207 32 d30 30% 

Baton Ik 
BradyWA 
Bronco 
Bruns x 
BSBBnqi 
BTSttpnp 
Buffets 
BMSnbT 
BurBnwi 
Bueeweefl 
BuOertHg 


n sk 

Bfett Bta. E IBOx Hgtr tow tod Cknp 

DefeetoEn 032 22 30 14% id 14% 

DekpftGe 060 45 72 31% 30% 30% •$ 

Wcfamps e044 11 33 2l7« 21% 21% 

Dab Camp 24 8(69 26% 25>2 25ft -ft 

DcttaOStm 016 IB r 15% 15 75 

DnCXy 32 833 37% 36% 36$ A 

Ddpay IK 7 103 28% 23 23 -% 

Dwa» 020 2 3 7% 7% 7% 

DMTetoi 15 43 ulB 18 19 ~1 

DftrelB 072 7 290 15%d14% IS A 

Dlgl HI 13 600 13X4 13% 13% +% 

OgMSD 51234 10 9% S% 

Dig Sand 6 1547 1% ift 1% 

DfgSjst 6 34 3% 3 3 

Okra Cp 15 37 32% 32% 32% -% 

Dcnerm 020950 317 10% 8% 9% A 

DNAPM 22005 4% 4% 4% -ft 

Dote-Gn 0J0 25 1228 26% 25% 25% +% 

Darcfi Kn 068 15 229 13% !3 13% <■% 

Dnafngy 12 64 8$ 8% 9$ A 

DreseSam 12 329 11% I1>2 11% 

Drey GO 024 1932827 24% 22% 22% -5% 

OrugEm® 008 46 191 4% 4% 4% A 
DS Bancor 1X8 17 228101% 31 31 

Durfern 1 042 12 918 16% 15% 15% ■% 

Durr fin 030 24 8u33% 32% 32% 

Dynatecn 11 304 ib% 17% 17% 


- E- 

EapleFd 9 164 5% <M% 5 

Eased Cp 21(06 4% 4% 4% 

EsoEnvnn 2 59 1% dl 1% 

ED Tel Q16 24 4247 19% 018% 19% 

Eptonad 70 183 5% 8% 8% 

BPaaoB 2 3530 u3 2ft 2ii 

BacfeSd 9 230 9% 9% 9lj 

Bedtttx 075 55 20 55 55 55 

EkOArtt 2216615 20 18% 16ft 

EmanAsx 22 389 7% 7% 7% 

Eaton Cp 271442 6% dS 6% 

EngyVmra 40 31 14% 14 14 -% 

EnvfeSw 50 10 1% dl% 1% 

Enron me 2 1973 3% 3% 3ft -ft 

E®tytM 010 19 87 3$ 3% 3$ A 

ErtcsnS 057123 4460 45% 44% 44ft -ft 

End 30 8% 6% 8% 

Evens Sk 75 10 17 16% 16% A 

Exabyte 21 2783 I7$ai6% 16% -1% 

Exttxr 13 142 10% d9> 2 9% -% 

EtideSec 10 834 23% 22% 22% 

Eve® I 010 18 359 16% 16 16 

E2axpAm 20 572 12%d11% 13 


-% 

A 

A 


Fefi Grp 

EorrCp 

Fesitnl 

Rhlttl 

Ftoonks 

FMiTM 

Rfly Off 

Bgple A 

Benel 


- F - 

11 1163 4% 
024 14 3 5% 

004 51 803 33% 
IS 690 24% 
3 174 3% 
II* IS 750 
8 742 


4% 

5% 


4% 

5% 

32 32% 
24 24 

2$ 3 

b 53 52% 52% 
<U3% 3ii 


•ft 


l» K« Lm Ik Owe 


- K - 

KS«1K 003 11 132 22% 21$ 21$ A 

tenant* 044 5 734 9% 3% 9% +% 

KxrtowrC 0I»W 477 12% 11$ 17% 

KaydonCS 040 14 1072 33% 22% -% 

KtotoyOU 5 465 6 5% 5% A 

KeSySv 064 2? 634 37 26% 26% -% 

Koieckv 0.11 10 3 6 D6 6 

famnafl Qfl( 13 45 23% <C3 2J% 

Kbsdner 12 2 6 6 6 

KLACSr 52 5129 42 387+ 39% -2% 

Knotledgf 5 90 11 10% 10% 

tel A 1 3*2 J! j! J! 

temaginc 209 U30 23% 22% 2? 

KitcteS 7 1272 12% 11% 12% 


-i'r 


Ladd Fun 012 52 145 9% 8% 9 
tom Ren 34 4958 31 29 30% 
Lancaster 060 19 9*7 45% 44% 44% 
lance he t 056 17 74 1B%d17% 17% 
tandowCpn <2 2056 33* 32% 32% 


I j HP lrtrtrl 

Lrancpe 

Lattices 

Lawson Pi 

IDDS 

UMCp 

Ledtera 

Legencp 

LicyMBc 

bh Tech 

L1WBW 

LfiytnOA 

UnBr 

UncatoT 

UittoyM 


11 


A 


92 8% 8% 8% 

G3 63 6 5% 5% 

13 1651 16% 15% 15% 

D4B 16 195 23%d21% 21% -1% 

24B47210 21017% 17% -3% 

DIG 7 E9 5% d5 5 % 

15 311 12% 11% 12% -52 
17 1665 29% 29 29 ■% 

078 13 293 27%d2E% 26% -1 

020 14 70 16% 16 16% 

21 27 4% 4% 4% 

Oa 24 28 26% 25% 25% -% 

04 116111% 111111% -% 

052 14 73? 15d14% 14% -% 

14 87 33>2 32% 33 »% 

LswarTeex 024 383072 <6% 46% 47% -% 
LKju&n 040 18 9 36% 35% 36% 

toewenGp 006 26 2153 22% 22% 22% -% 


-% 


Lone Star 

LTX Cp 
LVMH 


22 298 
48 8647 

2 251 


7% 7 7.05 -JOS 

63 59% 59$ -3% 
J% 3% :% 


035 4 13 31% 31% 31% -% 


- M - 


A 

♦% 

-A 

-1 

A 

+% 

A 

A 


- C - 

Glee 180 631 25%rES% 25% -1% 

Cabtotted 10 94 8% 6% 8% A 

CadScbwpe 1J1 18 119 29% 29% 29% A 
CadnusCunO20 18 108(115% 14% 15 A 
Caere Cp 133 131 8 7% 8 +% 

CBJgene 225 7 1140 11% 10% 11% A 
Cdtecro 17 274 19% 16% 19 A 

Cambrflto 14112 1% 01 ift -ft 

CendetaL 2 19 3% 3% 3% 

Cnflee 0 353 1$ 01% 1% A 

Canon he 060112 24 61% 61% 81% A 
camxita 1 105 3% 3 3 a 

Carttal 012 2 144 46% 46% 48% 
CertunCm 083 23 61 27% 27% 27% A 
Cascade 060 19 4 21 21 21 

CaseyS* 008 16 404 11%d10% 11 A 

Cdgu 4 178 8% 6ft 6>2 

CtoUar 8 334 1 9% 18$ 1A 

catcp 19 10 12% 12% 12% A 
Catered 358 396 10$ 10% 10% A 
Ceniocor 5 3027 10% 10 10ft -ft 

CrtrtFkJ 1.12 11 510 31 30% 31 ♦% 

CntrtSpr 22 406 11% dll 11 -1% 
Chamber 8 6 A A A +% 

Qoptxrlx 060 7 460 20% 20 X -% 

QrraSh OOB 131818 10% 0$ 0$ -ft 
ChanxSgn 42 47 1*% ^ 8% 
Chemtab 17 148 i2mi)% 12+1% 
Chen* 1 290 % A % 

Cheenpower 13 192 AAA 
CKps&Te 0 612 A <$ 4$ A 
CMronCp 636609 66% 63% 85 A 
CSmfln 126 12 340 52% 52% 52% -% 
Onto Cp 017 30 533 31% 31% 31% A 
OmeLpc 38 781 B 37% 35% 35% -$ 
OS Tech 153 530 3% 3ft 31% 
CtscoSye 1632038 31% 29% 30 -1% 
CtzBanep IJB 16 34 2S 23% 28% -% 
aeoiHa a 343 7% 7 A +% 

□ns Dr 44 105 12% 12% 12$ 
□otheetm 9 640 5% d5% 5% A 
CocaCtoaB ijb 15 131 a%d24% 24% -1% 


CntaEngy 100 835 A 4$ 5 

Codtftonn 27 150 11% 10% lA 

CtonxCp 3 216 18% 18% 18% 

G(QWS 106 23 12 11% 11% 

CtoOTH IB 143 13% 13% 13% 

CoHapan 81 534 21% X 20% 

CebkGto 128 13 13 21% 20% 20% 


1 % 
-1 

Cab Grp* 0£D 9 55 24% 24% 24% A 
COmafe ( 024 11 14a 18% d17 17% -1% 
CmeflA 009 18 1369 17% 17% 17ft -ft 
CncstASp 008 37 8070 17% 17% 17ft -ft 

QsamBWBflJS 11 210 32% 33 32ft 

ConmCI 070 94 96 18 17% IB A 

Complete 404 546 12% 12 12% 

Cunebae 53 208 11% II 11% A 

Com&ctfl 32 S3 3ft dffl 2fi A 

ConPapx \2B a 317 39% 38% 39% 

11 104 B% 7% 7% A 
1.44 18 SQ26u11% 10$ u 
20 500 15% 1 A 15 A 
15 24B 10 9% ID A 

050 24 40681119% 18% 10% A 
92 058 11% 10$ 11% A 
19 569 44% 44 44% 

40 506 15% 14% 14% A 


024 0 583 9$ 9% 9% 

34 12Z7 25% 24 24% 

FSIMIama 120 121652 35% 35% 35% 

FW Am 004 7 601 31% 31 31 A 

FtoBcOuo 094 11 270 25% 24% 24% ■% 

FstCtoBk 060 21 209 24% 23% 24% 

Fa Seay ijK 11 3574 20% a% a% -% 

Fsl Teen 108 9 781 42 41% 41% A 

Fa man 038 7 188 Bj2 8$ 8$ 

FUkffe 052 10 142 23% 23% 23% +,ft 

fksber 156 11 174 45% 45% 45ft +ft 

Fkstmtae 44 792 A 7% A A 

Ftoenr a 395 20% 20% 20% A 

Row lot 14 491 A <M% 5 A 

FoodLA 000 152306 5% A 5ft 

FoodLB 000800 IK2 6 5% 6 A 

Foemost 108 10 21 31% 31% 31% A 

Fndns 13 54 iAdi3% 14 +% 

FtuneBanc 030 31 5 32% 32% 32% +ft 

Fester A 40 516 3$ 3% A 

FrtbRn 104 11 735 » 28% 28% A 

FetEaebi 1.125a 58 25% 26% »% A 

Fsl FW 040 8 W 1 A 18 16 

HIM 1.18 TO 581127% a% 28% 
FUkrfBx 058 22 427 35 34% 34% 

Ftototfln QOS 14 8 26% a 3% 

Fun 024 19 3 14$ [114% 14$ +% 
FtfcnaMDR 132 6 5% 5$ A 


- G - 

G H App B 16 4% 4% 4% 

G8A Berv 007 21 27 14% 1 A 14% A 
Gentos 0 103 3% A A A 

Bxmalto 13 217 4% 4 4ft +ft 

Sett CO 016162 67 A A 6% 

GW Bind 040 17 2 17% 16% 16% 

Gadyte 17 176 4% 4% 4% 

51181 13% 12% 12% A 
Cp 400 46 1(08 28% 27 27% -1 

Gens be 137 287 4% 4% A 
Genzyme 08 1043 29% 28% 2B% A 
Bison Gt 040 11 1173 19% 1B$ 1B$ A 
GUdhgsL 012 17 517 23% 22% 23% +% 
abort A 080 18 15 17% 16% 16% 

GhhBlom 11 31 5% 5% 5% 

Gotti Guys 143853 11% 11 11% A 

Gotodto’mp 080 18 353 21% 20$ 2D$ A 
BakaSyi 31 65 IS 1$ 1$ -ft 
Bute 020 a 150 21% 20% 20% -% 
Green AP 024 lOzlOO 17% 17% 17% A 
Gmwdi Pti 1 1620 1ft d$ U A 
Sroaoron 1 441 3% A A A 
GmdWb 737 150 1 A 14% 14% ♦% 
GTICorp 8 270 11% 10% 10% A 

arWTSvg 4 BB 8 7% 8 


- H - 

rtartonp A 54 27 A 6 6 

Heriny* 064 8 433 72 21% 21$ A 

Harper (*) 02D 13 X lAd14% 14% A 
ICOSCd 016 2 5848 29% »% a% -1% 
Kealtexr 1B4B89 20% 18% 19$ A 
Keeoncre 006 18 183 11 1 A 11 +ft 

Hextodyn 10 ra 7ft 8$ 6$ 

HeaftftM 12 264 A 7% 7ft +ft 

HeWnget x 016 X 4670 lA >5% lA A 

HBktaH a 10% 10% 10% A 

Helen Troy 6 16 14% 13% 14% A 

Hartto 072 14 735 21% 21 21% +ft 

HogenSye 015 » 438 9 6% 8% +% 

Hotogt 441088 ulO 9% 9% A 

Home Ban! 080 9 14 21% (CO 21% A 
Home Otoe 072 a ai u2i X 20% 
FfcnkdS 044 S 121 33% 32% 32% -I 
Humbert 16 549 15% 14% 14$ 
HrnehftoB 04(300 55 3 3 3 

Hunt JBX 020 22 1082 22 21 22 A 

Hotopn 080 10 1242 24$ 24% 24% A 

rtraGo OJB 0 129 2$ 2% 2% 


KtotiTecft 

HyorBto 


FflSys 

DBCunme 

BIMf 

Xnmucor 

knoux^n 

bnperiBc 

HBmp 

Mksx 

MRS 


57 101 35% 
10 243 5% 


a 

A 


52 19 
416074 
7 279 
33 351 
4 240 


00 B% 6% 
16 di4 14 
8$ 8% B% 
6 5% 5% 
5% 4% 4% 


hgiesiftt 

HBgrDw 

“sWys 


Coosflurn 
Ceneten 
MU 
CMDto 
COoraA 
Ovykto 
Oonfii Cp 
CDrpOfA 

Crocker B 002 a«7( a%(C3% 23$ -1% 


CnyConp 
Crown Ras 


13228 
42 40 


1 % 1 % 1 % 
6 5$ 6 


ktex 
IM 

MpntB 
war Tel 
MerfccAx 024 17 
no* 


Itassfw 

kitenak 

bxDebyOA 

BKRnx 

H Total 

kwacare 

lamsacp 

humrxto 

JoTokado 


040 31 521 1G% 16% 15% 

1.16 19 56 38% 38% 38% 
02(217 4 15% 15% 15% 

1716Z2 16% 14% 14ft -1ft 
10 8050 17 16 16% -tJ 

(LGB1B STu!2$ 12 12 
3312S9 S 25$ 27% 
a X 11% 11 11 

a 18 A 4 A 

034 1122368 56% 58% 58% 

12 342 3% (C$ 3% 

032 355(02 20% X 20% 

21 85 ID 9% 0% 

08 13% 13% 13% 

3 558 9% 9% 9% 

8 291 7 6% 8% 

2 S X 12 % 11 % 11 % 

X 3392 11% 10$ 11% 

14 TO ill 8% 17% 17% 

006 20 35 3 3 . 3 r.Q9 

400 268 8% 8 8 A 

001 18 377 23% 27% 3% A 
1 89 2% 2% 2% +% 

18 fl 18 17% IB 
1J0 3B 0 213 212 213 +% 


A 

•$ 

A 

1ft 

A 

A 

A 


-ft 

A 


Qffn&si 

2 

337 

3% 

3% 

3% 

A 



_ I _ 


Dbdf^jOiwi 

np«nM 










m ll * 

-A 

n®euQ> 








JU tart 

16 1487 15$ D14 14 

Ploneutfl 








Jason he 

026 20 

10 13 12% 13 

+ % 

PkrovSt 



» D 

■ 




JLGbti 

010 23 

17 26% 261- 26% 


Pfii*ii*^ C J 

rw 

DSC Cm 

3915782 62% 59% 60% 


John® W 

53^00 21% 21% 21% 

$ 

PoweB 

Dart a® 

013 20 

G 

02 

02 

82 

-1 

Jones W 

ID 

as 13% 13% 13% 


Pros Lbs 

DeroSutsn 

9 

30 

2% 

2 

2% 

A 

Jonas Itod 

OIO 17 

07 11$ 11% 11% 

A 

*80** 

DBtoMx 

29 

45 

7 

A 

7 

A 

Jetoyncp 

120 11 

5 24% 24% 24% 


Pt/ooa 

Dtoaecope 

13 

222 

14 13% 13% 

A 

JSSFtox 

OB4 14 

50 22% 22% 22% 

A 

Pride Pei 

DeurbCp 092 11 

476 

25 »% 24% 

A 

Joe Ltg 

028 19 

443 18% 18% 18% 

A 

Plkrtratt 

Deb taps XQ20 20 

63 

6$ 

6% 

6% 


Juffei 

016 10 

137 13% 12% 13% 

A 

MOps 


MQ On 

005 1921205 22$ 21$ 22% 

-% 

MS Cars 

18 

591 21% 20$ 20$ 

A 

Mac TOx 

060 42 

193 U%d13% 13% 

•% 

MuaronGE 

166 14 

49 33% 32% 33 


ktagntiPwr 

14 

48 X 31% 31% 

-% 

MegnaDbx076 11 

407 18%dlA 18% 

*52 

MsdBro 

14 

120 9$ A 9% 

A 

MfeCHUCP 

27 

110 lA 9% A 

A 

Marine Dr 

12 

55 5% 4% 4% 

A 

Matte Cp 

9 

4 41% 40% 40% 


Marquest 

0 

11 1$ 1$ 1$ 


bbrana 

19 

480 9 8% 8$ 

+% 

kklrtSmliA044 11 

3 11 lA 11 

A 

Marshal 

060 11 

559 20% 20% 20% 

A 

Mastac 

9 

147 A 7$ A 


Matimrt 

40 

686 54% 53 53% 

-1 

Maxtor Cp 

0 

938 A A 6% 

-% 

Mc&atoH 

044 12 

TO 1 A 15 15% 

A 


McCumic 048 173255 21% 2121% 

UcCowC 45 4522 40ft 48% 48% 

Hod (mag 0 3ft Aft ft 
MedKkw 016 17 1258 14% di3 13% 

UetefeieS x 048 13 385 23% 22% 22% -27 

IWkitoe 024 8 BG 5% 5 5% A 

Mote Cp 016 44 311 14% 13% 13% 

UanfeG 024 223068 11% 11% 11% 

MocartS OE8 10 153 19% 19% 19% 

MereuyG 070 72215 28%<B5% 26% 
Itottanx 1-36 11 1766 30% 29% 20% 

Merteel 171612 17% 17% 17% 

UeOwdeA 006 15 187 15 14% 14% 

MciiaWF 020 15 850 11 10% 10% +% 

Ucil NOB a 200305 106(1168% £7% 67% 

11 34 A 04% A 

19 1153 26% 3 a% 

5 432 5% 5% 5ft +ft 

10 421 5% 45% B% A 

31334 A 6% 6% -% 

2715114 93% 01% 02% 

44 4766 52% 50% 50% A 

X 040 11 2030 3$ 3 28% A 

WdwGfam 050 27 3S8u33% 31$ 32$ +$ 
IWerH 052 18 472 26% a% 25% -% 

Mfcm 505 22% 22% 22% 

AfcntBCh 14 487 11% 11 11 

HobfcTei 42 1057 17% 16$ 16$ 

Modem Co xO^O 17 86 7% 7 7 

Mottle Id 046 19 253 X 27 27 

note 004 713 35% 34 34 

Mole* toe 004 271000 36% 3% 36% 


IHrmajP 


% 


% 

A 

A 

-$ 

+.68 

-ft 

A 


A 

A 

A 


lUM M 


.«» 


it 

A 

A 

-1% 

-% 


Mascara 004 X 23 11% 10$ 11% 

M0WMP(O3621 108 29 28% 3 A 

Mr Coffee 183045 15% 13% 15*1% 

MISSys 058 11 89 27% d27 27 •% 

«mtd 12 199 3% 3% 28% -% 

Myroeen 5 239 11% 11% 11% -ft 


- N - 

N*C Re 016 131448 31% 30% 31% *1 
NasftFWi 072 11 46 17 16% 17 

NatPtsa 12 88 5% A 5% A 

NtiCcmpt 036 77 230 11% 11% 11% *% 

tors Sir 020 3 84 15% IS IS A 

10 139 19 18 19 A 

*C 046 95 a 55% 55% 55% 
Nefca 17 3578 28% 27% 27% -% 

NetwkGen 24 317 17% 17 17% -% 

NBMkS 9( 600 6$ A 6% 

Nbdtoobi a 3 7% 7$ 7% 

027 18 410 17% 17 17*4 +% 

HewEBus 080 22 353 X IB 19% A 

Newline® 71436 10% A 9% A 

MxdpeNet 381361 53% 50% 51% A 

Newpncp OM 12 265 u6% 5$ 6 +% 


PI Sfe 
E lath 


Stack Pk, (IBOi «d> bw Itt Beg 
PlrtenB 012 7 365 21% 21% 21% -% 

Pyramid 12 405 fl 7 j 8 

Qua»Ufl 1- M T% 7 "% 

OuakwChffl 062 70 Ml 16% 17% 1.*% -% 

QutotodxO 16 3SS X% 21% 


Quantum 

Qtocksly 

OuCNnwk 


Rainbow 

teDys 

RardnuB 

Ray raid 

hecoon 

Rd.dc A 

Hepfcgrti 

HepWKW 

ReuicMnd 

Radns 

Ren® Inc 

Hhw M 

RoaowS 

R&Ngm 

RocbSvBk 

Rooaevtoi 

AossStr 

Rtocowrc 

Roroe 

RPM Inc 

RSFxi. 

Ryaifnpy 


<6 6357 17$ lb$ 16% 
20 120 14% 13$ 14% 
22 4600 35%031% 33% 


- R - 

13 IK 14% 14% 14% 

7 3310 6 ti5ft 5ft 

4 422 6'e 5% 5% 

a 10 18% 18% 18% 

29 667 31% 30% 31% 

16 135 18% 17% 17% 

21411 5% 4% 

3% 

9% 

43 
&% 


-06 

-1. 

A 


4 ft 
15 11? 

024 153050 
1 79 


»■ 

-•% ->-3 
8% 8'n 
47 42ft 
6 6 


056 ID a 35% 34% 35 

1.40 22 1 218 58% 67% 67% 
012 14 33 e% 5% 6% 

05G 4 809 16$ 16% 16% 
044 91018 47% 46% 47% 
OTO 11 B91 14% 14% 14% 
23 305 10 % 19 19 

066 70 933 19% 19 19 

052 20 277 1fl% 17% 17% 
048 12 104 1120% 2(A 20% 
13 1532 7% P7% 7% 


. 1 - 


-% 

A 

A 

A 

-it 


- S - 

Salem 105 7 B7H 54 53% 53% ■% 
Sanderam *030 12 53 17% 16% 16% A 

SdemPgrA >030 1C 1198 ?3%d22% 22% -1% 
SdUedL 71976 DO 29% 23$ -1% 
SOSrstm II 575 14% 14% 14% ■% 

£du 7 1806 7% b~a 7% -% 

SrtttCp 052 84410 10% 16% 17]! -\i 
Score Brd B12D9G 8% d7 7% % 

Sated 130 4fi 146 33% 37 36% +% 

S pate 1118963 25% 24% 25% -% 

SEICp 012 27 615 21 %dZI% 2>% 

SetoctP 036 1 162 1% ift 1% -ft 
SetoORB 112 15 39 20% 25% 26 *% 

Sequent 6J 179R 13% <3% 13% 

5d0uub 29 1663 4{* 4$ 4ft -% 

SWVTech 13 43 0% 9 9-% 

Senfiad 23 233 iri$ 4$ 4$ *% 
Sevenstn 16 11 17J2 17J2 1?" *ft 
Shilled 004 17 1506 24% 24 24 

SHL Systm 2 62 6% 6% u% -% 
Shuenpod 23 332 14% 14% 14% A 
SnmbtrP 9 1586 10% 09% 9$ -% 
SienaOn 2D 647 25 % 24% 25% -% 

SerraTuc 2 MOO 3% 3% 3% 

SifxnAi 033 20 1628 45% 44% 44% -1$ 
StgmaDes 1 767 8% B% 6% -% 
StocnVBc 006 50 381 10% 10 10 -$ 

EttcnVGp 29 651 10$ 97g 97 fl .% 
Stmpeocr 056 24 145 20% 19% 19% -1 

SndWId 33 588 25 23JL 24 -% 

SnappteBv 63 5549 24 % 23% 24% ■% 
SnffwnP 1 220 5 4$ 4$ .% 

StohvarpT 81 30 14% 14% 143 4 

Sunoco 056 15 2972 20% 2D 20% A 
Sourtua 068 9 327 18$ 18% 18% 
Spiegel A 020 48 445 23% 22% 22% -% 

St JudeMd x(L40 11 3150 27% 26% 27% *1 

SIPUBcx 030 ID 1263 22% 21% 21% -1% 
SttyBI 2 109 2$ 211 =$ +% 

stroke 401348 27 26% 26% -% 

Star Banc 1.40 11 4 38$ 38$ 38$ 

stair Sfe 056 16SZ7SU39% 38% 39% +% 
SUHcni 11 1509 17% 17 l? A 

SURegts 058 14 85 21% 2121% 

Tec* OOB 18 125 17% 16% 16$ A 
StoMyUSA 020 2 160 9% 0% 9% +% 
SttoM 141 22 20% 19% 19% -1% 

Sfeawwa 1.10 12 37 20% 20% M% A 
SbudDy 231597 11% 11 11% A 

Stryker 028 20 931 26% 25% 25$ A 
StoterD 21 129 14% 14 14 

SumrtomoB 080 25 29 22% 22 22 

Summit 8c 064 14 599uZ2% 21% 22 


Sunn* To 

Sun Span 

SuMc 

SwtBTra 

Sybase Inc 

Symantec 

Syukoyx 

Synercom 

Synergm 

Sjredc 

Synoptks 

SystmStot 

SyswnBco 

System® 


t«4 

A 

A 

A 


33 935 24% 23% 24% 

15 TO 6% 5 6% 

12 5758 22% 21$ 21$ 

28 13 28 27% 28 +% 

59 8814 52% Si 51% -1% 
41 910 15$ 15% 15% -% 

038 18 9 18 18 18 f.Tl 

72 32 3% 3% 3% 

2 201 B$ 9% 9% 

46 111 11% 11% 11% 

17 8332 20% 19% 19% 

012 17 389 18 15% 15% 

29 2138 18% 17% 18 

20 609 5% 5$ 5% 


A 

■% 

-1 

A 

-% 

j 


f Drl 203213 6% d6$ 6ft 
056 25 170 58 56% 56% 

Ndsfem OM 24 4615 41% 41% 41% 
Nnrstarl 12 85 16% 16 16% 

StarUn 4 13 A A 5% 
NnrthnTa 088 13 613 (1% (0% 41% 
MttAV 7880 15% 14-% 15 

NoroO 20217188 18$ 18% 18% 
Notates 282257 32% 31 31% 

NSCCOro 9x100 A 3% 3% 


- O - 

OCharteys 28 126 17% 17% 17% -% 

Oar! Com 15 3741 20% 19% 19$ A 

OtfehreLo 14 09 14 13$ 13$ A 

OglabayN 080 9 4u26% 24% 26% +1% 

Owes 1.46 5 624 3044027% 27% -2% 
OUKentx 1.16 101309u34% 33% 34% +lft 
OdltaBB 082 16 2 36% (05 36% A 

(Mnoip 1-DO 7 48 30% 20% 23$ 

One Pit* 14 TO 16% 18 18% 

Optical R 16 121 20 19% 10% 

OrateS 4ZZ74TB 29$ 28$ 29ft 

OrbSoce 521341 21% 20% 20% 

OrtKBOl 099 25 256 A 8% 6% 

OrchdSiTOP 10 339 1$ 14 14% 

OregonlM 031 8 454 A 4$ 5 

Oshap 4 105 3% d3% 3% 

OsmfiA 041 41 (30 13%d1?% 13 
OettMhTxOSO 11 171 11% 10% 11% 
OUaTalx 1.72 14 78 32% 31% 31% 


A 

A 

A 

-11 

-$ 

A 

A 

A 

+$ 


- T - 

B 507 4% (% 4% ■% 

052 18 851 20% 28% 3% A 
16 71 12% 12$ 12% -% 
044 25 339 21% 20% 30% -% 
12 1022 19 16 18% -% 

080 15 18 56% 56 56% -1% 

2 26 10 9 9% A 

7 727 1 3% 13% 13% 

981 9329 20$ 19% 19% ■% 
151627 9$ 9ft 9% -ft 
46 2289 64% 63% 64 -1% 

001 171885 17% 16% 16% -% 

70 711 U8% 8% 8% -ft 
levto’hADR 027 23 7363 23%d22$ 22% -1% 
Time Cun 391290a 59% 57% 57% -1$ 


rouse 

T/OwePr 

TBCCp 

TCACabk 

ledrQao 

Tecunseh 

Tetetoc 

Telco Syc 

TekCumnA 

TekM 

TateW 

TdxroCp 

Tew Tec 


- P-Q - 

Poecr IJB 14 41B 51% 50% 51% +% 

Pacftrtop 062 13 175 13% 13% 13>2 A 

23 23 A 

55 56% +1% 

20 29% -% 

37 37% -% 

25 5 10 10 10 

050 42 36 10% 9% A -1 

9 4 14% 14% 14% 

1J0 23 179 33% 31% 32ft 4^ 
220 17 24 30% 30 30% 


FTtoOn 132 15 9 23 

PbcKre 23 802 57 

Paranefec 34 4028 30 

Payoiexx 034 48 963 37% 

PayeoRm 
Peertess 
PWiTrty 
PBmVIrg 
Perns)**. 


Proto® I 


072 15 359 34% 34 34 
17 278 6% 8% 6% 


020 20 28 
tap Banc 1J6 16 194 
Peoples H x 024 II 545 

pevsOM 1.12 ib 4 

21 40 

HwenxTch 26 507 


Ptn«® 


19 1 A 1 A 
53 52% 52% 
12 11 % 11 $ 
35 33 33 

7 0% 7 

5% 5% A 


048 4 50 11% 11% 11% 

27 652 13% 13 13 

42 202 10% 1A 16% 
060 271162 40% 39% 30$ 
056 24 1913 35% 34% 35% 
014 14 21GG 26% 25% 26% 

s 16 A a 0 


16 8 7 

009 3 749 7% 
BG 274 23% 
2113540 14% 
40 57 5% 
is rim 9 
034 23 2 26% 


6 % Oh 

B$ 7 
23 23% 
014 14 

A A 
9 e 
2fi 25 


A 


A 


A 


-% 

A 

A 

A 

A 

-% 

A 

-% 

A 

A 


Tjira 

022 37 

349 3 

24 24% 


Tokos Mart 

2 

88 3% 

A 3$ 

-% 

Tokyo Mu 

037 37 

206 62$ 

62% 62$ 


Tun Brown 

69 488u13$ 

13 13% 


Tapps Co 

028343 

488 7% 

A 6$ 


TP1 Enter 

41602 8$ 

8% 8ft 

-12 

TranswU 

10 

2 11 

11 11 


Tremnck 

100 11 

2731140% 

39 39% 

*% 

Idem 

B 

59 3 

2$ 2$ 


Tmnbta 

49 

161 A 

9% 9h 

A 

TrustcoBtt 7 JO 10 

233 20 

19% 19% 

A 

Tseng Lab 

020 13 

853 8 

7% 7$ 

A 

TysFdA 

OOB 15 

506 19$ 

19$ 19ft 

-ft 



u - 



US Hitter 

0 GB 1317287 38% 

37 r% 

-i 

IMab 

2 

713 5$ 

5% A 


UCttesQs 

1J0 13 

23 lAd!5% 18% 

A 

US 1st 

200 12 

254 51% 50JJ 51% 

A 

Unted Si 

0® 11 1098 13% 12$ 13 

.u 

Uhrtog 

020 20 

31 25iJ 25JJ 25U 

-A 

Unftrft 

1.40 21 

214 39% 

39 39 

-% 

USBancp 

088 103135 SA 2A 25i* 

♦ft 

US Energy 

X 

22 4$ 

4% 4$ 

+% 

USTCBrp 

1.12 9 

362 14 13% 13% 

A 

Utob Med 

12 

842 7$ 

7% 7% 


Ud Tate 

10 

29 44% 

44 44 

•% 

Utb 

16 

10 A 

A A 



- V - 

Vebnont 030 32 IBM 1 A d14 14% A 

VppdCefl 6* 531 33% 33 33 

talent* 18 536 17 16% ie% -% 

War 38 332 25% 24% 24% -% 

WMfpW 9 339 16% 15% 15% -% 

Vterdogtc 2B 699 22% 22 22 -$ 

VLB Tech 324884 14$ 14% 14.% A 
W»B 097 17 X 93% 92% 92% A 


- w - 

Warner EnxOTO 21 25 27 26% 27 

WarrWb 73 307 4ft 4$ 4ft -j' f 
WUMCBidLEB B 724 19% 19 19 

WadfcdSL 080 6 791 21% 21% 21% 
WanstodA 022 9 IDS 24dM% 23$ A 
Wausau PU 034 17 142 20% 27% 27% 

200 16 114 43 42% 42% A 

36 326 6$ 6% 6% A 
072 11 450 28% 26% 28% A 
6 568 12% 12% 12% .ft 
1 1588 16% HIS 15$ -% 
18 153 4% 3% 3% 

058 212899 44%d«% 43 -1% 

WiBSanm 782006 35% 33% 33% -1% 
WtortonL 028 12 S 1(% 14% 14% A 
Wmnpl 036 24 933 19% 19 19% -% 

WFP&oup 003 2D 359 A 3ft 3ft % 
•yroa+GitoOffl 4 29G 57 a 5% 5JI -ft 


WHO 
wesek 
West One 
WSPub 
ttHBStt 
Wet Seed 


-X- Y-Z- 

»R 34 2BE8 53% 52 52$ +% 

XorraCorp 2 441 4 3% 3% A 

Yttowx OM 2717W 18$d10% 18% -% 
Vufctah 801003 6% 5% 5ft -ft 
aonsUbh 1.12 9 23 40 39 39% A 




38 


WORLD STOCK MARKETS 


FINANCIAL TIMES 


Tuesday May 10 1994 ‘ 


AMERICA 


EUROPE 


Dow falls as Zurich and Vienna both hit new lows for year 
bond yields set 
a fresh high 


Wall Street 


US share prices fell across the 
board yesterday morning after 
bond yields had risen to a new 
18 -mouth high amid disap- 
pointment that the Federal 
Reserve did not, as had been 
expected, raise interest rates to 
cool the rapidly expanding 
economy, writes Patrick 
Harverson in New York. 

By 1 pm the Dow Jones was 
down 2439 at 3,645.11, near its 
low-point for the morning. The 
more broadly based Stan- 
dard & Poor’s 500 was down 
3.13 at 444.69 at the halfway 
mark, while the American 
Stock Exchange composite was 


Share prices rebased 

180 — 



Jan 94 

Source: Datastraam 


May 


off 2^0 at 436.93 and the Nas- 
daq composite 5.27 lower at 
727.59. Trading volume on the 
NYSE was 146m shares by 
lpm. 

Typically, a tightening of 
monetary policy by the Fed is 
seen as negative for stocks, 
because higher interest rates 
undermine confidence in cor- 
porate earnings and the attrac- 
tiveness of equities relative to 
other financial assets. How- 
ever, yesterday was different, 
because the bond market was 
convinced that the Fed would 
raise interest rates during the 
morning session to prevent the 
economy from overheating and 
fuelling a revival of inflation. 

When the Fed did not raise 
rates as expected, bond prices 
fell further from their morning 
lows, in the process pushing 
the yield on the benchmark 30- 
year issue up to more than 7.6 
per cent, its highest level in 18 
months- That increase 


prompted selling of stocks. 

Amo ng individual stocks, 
Kemper jumped $2% to $59% in 
heavy trading after the finan- 
cial services group put itself up 
for sale after GE Capital raised 
its bid to $60 a share. The reac- 
tion of the market suggests 
that investors do not believe 
that a counter offer will be 
made higher than GE Capital's 
$60 a share bid. General Elec- 
tric, GE Capital's parent, fell 
SI 1 /* to $95%. 

McKesson climbed $4 to $76 
after it was confirmed that 
Glaxo, the UK pharmaceuticals 
giant, was in talks to possibly 
acquire part or all of the US 
drugs distribution group. Drug 
stocks as a group, buoyed by 
the recent merger activity, 
bucked the trend, with Sche- 
ring-Plough adding $% at $63%, 
Pfizer firming $% to $59%, Bris- 
tol-Myers Squibb rising $% to 
$53% and Johnson & Johnson 
edging VA higher to $40%. 

Tobacco stocks were the 
most heavily traded sector of 
the session. 

RJR Nabisco feU %V< to $6 in 
volume of 1.3m shares and 
Philip Morris slipped $1% to 
$50% amid growing concern 
that a new round of lawsuits 
was likely to he filed against 
the tobacco industry in the 
wake of recent reports that 
company executives knew for a 
long time that cigarettes 
caused lung cancer. 

Canada 

Toronto was weighed down by 
interest rate fears and stocks 
sagged at midday in sluggish 
trade, the TSE 300 composite 
index losing 33.96 at 4220.10. 

Volume was Mm shares val- 
ued at C$224.9m, declines lead- 
ing advances by 389 to 153 with 
351 unchanged. All Toronto's 
14 sub-indices sank at midday, 
with precious m etals, financial 
services and forest products 
felling most. 

The oil sector showed the 
greatest promise, as oil jumped 
another 8 cents to $17.77 per 
barrel. Shell Canada climbed 
C$% to C$4l'/« while PanCana- 
dian Petroleum was up C$Vi to 
C$43. 

Trizec dropped 16 cents to 29 
cents as creditors continued to 
fight over the property compa- 
ny's restructuring plan. 


As bourses waited apprehen- 
sively for the US Federal 
Reserve to act on interest 
rates, yesterday was agonising 
for those of them, such as Zur- 
ich and Vienna, which are 
deeply influenced by attitudes 
to defensive stocks, writes Our 
Markets Staff. 

Both Swiss and Austrian 
equities hit new lows. The Zur- 
ich market held out until early 
February against the prospect 
of lower US Interest rates, said 
Mr Andrew Bell, director of 
European strategy at Barclays 
de Zoete Wedd, and even 
enjoyed a “bubble" in fhmnniai 
stocks early this year. 

Since than, Germany, strong 
in cychcals, has taken over the 
running and the Swiss correc- 
tion has been savage: “from 
bubble to rubble in three 
m onth s." said Mr BelL 

ZURICH saw heavy selling in 
Roche and growing worries 
about the weak dollar and the 
soft domestic bond market as 
the SMI index dropped 715. or 
2.7 per cent, to 2569.5, down 
195 per cent from its January 
31 closing high. 

Roche certificates fell SFrl50 

ASIA PACIFIC 


to SFi-6500, while the hearers 
dropped SFr500 to SFri2,100. 

Mr Frederick Hasslauer, at 
Bank Sal Oppenheim, said 
today's press conference and 
next week's analysts meeting 
would allow the company to 
justify the price it has paid for 
the Syntax acquisition in the 
US. Meanwhile, the takeover 
has been presented as defen- 
sive and this, In itself, has cast 
doubt on Roche's long term 
growth potential. 

Turnover was said to be 
high, close to Friday’s near 
SFrZbn leveL 

Representing dollar stocks, 
Nestte dropped SFr45, or 4 per 

«»nf | to SFtl,065; in finanrialg 
CS Holding finished SFr26, or 
4.45 per cent, weaker at SFr55a 

VIENNA also saw heavy vol- 
ume, and weakness in utilities, 
financials and construction 
stocks as the ATX index 
dropped 2255 to 1,053.6. 

Mr Frank Jonnschat at 
James Capel noted pressure on 
EVN and Verbund in utilities, 
the former dropping Sch48, or 
3.6 per cent, to Schl.300; 
domestic brokers said that 
investors were mahing room 


FT-SE Actuaries Share Indices 


May 9 
Hotdy riaaga 


TOE EUROPEAN S&UES 

llUO 1L0Q 1200 1200 KOO 16.00 Ora 


FT-SE Bartrat* 100 1441.06 M39L44 1430184 144066 1441.43 1*4040 143077 1437 JO 

FT-SE EnMH* 200 145041 145082 145099 145084 145071 1*54J3 148005 145204 


an »a 


FT-SE Burataek 100 14S063 1440110 1447168 146035 148282 

FT-SE Buttock 200 1465.18 1488.74 145836 147007 147880 

taa ton (Snaflft HUMtor KB ■ 144283; 2D0 ■ 1«UB LttMW 1DD - I437J9 200 - f«012 


for next week's VA Tech flo- 
tation. 

FRANKFURT lost a rela- 
tively modest 05 per cent, the 
Dax index closing 18-14 Iowa: 
cm the session at 2,21858, hold- 
ing its ground in the post 
bourse in spite of the morning 
decline on Wall Street 

Turnover fell again, from 
DM7J.bn to DMSbn, and trad- 
ers detected no great pressure 
to sefl. 

Daimler consolidated Fri- 
day's post-bourse drop on 
DVFA losses of DM70 a share 
for 1993, losing DM12.50 at 
DM879; and profit-taking in the 
engineering sector saw Deut- 
sche Babcock, amid a list of 
declines, DM350 lower at 
DM25950. 


PARIS managed to pick up 
some of the ground lost early 
in the day, but the CAC-40 
infer stjfl closed the session 
with a loss of 1850 to 2,139.42. 

The market has rewNniwifi to 
disappoint analysts, with a 
comment recently from Klem- 
wort Benson being typical. The 
investment hankers, recom- 
mending an underweight posi- 
tion within a European portfo- 
lio, noted that while the 
outlook for corporate earnings 
remained good and was 
improving, momentum had 
been stalled by the large num- 
ber of rights issues and privati- 
sations, both completed and 
forthcoming. 

Euro Disney featured among 
the active issues, hitting a 1994 


low of FFr29.75 at one stage 
before closing off FFrl.65 at 
FFr30.00 as investors awaited 
details of the capital increase. 

AMSTERDAM weakened as 
the market kept its attention 
focused on a possible interest 
rate rise in the US. The AEX 
index shed 552 or L3 per cent 
to 406.03, slightly above the 
session low. 

Among the day’s news items, 
Ahold put on 10 cents to 
FI 4750 as the retailer reported 
a rise in sales over the first 
four months of the year. ELM 
was another of the day's risers, 
Improving by 50 cents to 
FI 52.50 on reports, later 
denied, that cooperation talks 
with Swissair might be 
reopened. 

Unilever declined in line 
with the trend, finishing off 
FI 450 at FI 199.70: the multina- 
tional is due to report first 
quarter results later in the 
week. 

profit-taking was also evi- 
dent among some recent strong 
performers such as DSM, off 
FI 450 at FI 138.70. 

SOLAN continued to wait for 
the formation of the new gov- 


ernment and turnover was 
reported os moderate. The 4 

Comit index advanced 5.43 to 

306,37. * 

The insurance sector moved 
ahead with some investors , 

seen switching out of recently t 

strong areas, such as industri- 
als and finance. Generali, for 
instance, added LI ,850 to 
L47.950, following its 

nnnminw™*™* last Friday that 
it was to lift its ordinary divi- 
dend. Fondiaria put on L340 to 
Ll 7,550 »mid continued specu- 
lation that Generali might be 
planning to strengthen Its ties. 

MADRID fell again but it 
was almost a relief, in the 
afternoon, for the market to be 
concerned as much with weak- 
ness on Wall Street as with 
Spain’s political woes. 

The general index closed 3.81 
lower at 314.41 in turnover of 
ptal5.lbn. Banks, utilities and 
communications all suffered 
with BBV down PtaUQ at 
Pta3JiO, Iberdrola Ptal7 lower 
at Pta925 and Telefonica FtaSD 
lower at Ptal.725. 

Written and edited by WHflaoi 
Cochrane and John PKt 


Hong Kong leads regional declines in thin turnover 


Tokyo 


Uncertainty over fluctuations 
in the yen, US interest rates 
and the knock on effect from 
New York’s embattled bond 
and stock markets prevailed in 
Japan, and the Nikkei 225 aver- 
age lost moderate ground in 
very low volume, writes Ermko 
Terazono in Tokyo. 

Small-lot, arbitrage-linked 
selling left the index 75-51 
easier at 19,78696 after a day's 
high of 19,820.86 and low of 
19.721.04. Volume was 150m 
shares, a gains t Friday’s 175m. 

Investors looked for excuses 
to remain on the sidelines, said 
a Japanese trader. The settle- 
ment for index-futures options 
this Friday was cited as a fur- 
ther. domestic reason for the 
inactivity; and some market 
participants were said to be 
wary of the corporate earning 
reporting season, which starts 
this week. 

Fears over the US Federal 


Reserve’s monetary policy and 
its possible negative impact on 
US financial markets pushed 
down the dollar. The currency 
closed Y0459 off from Friday at 
Y102.67. Investors continued to 
be wary of the yen’s rise and 
its adverse affect an corporate 
earnings. 

The Topix index of all first 
section stocks slipped 485 to 
L61084 and the Nikkei 300 lost 
0.66 at 29494. Falls led rises by 
666 to 397. with 185 issues 
unchanged. In London the TSEf 
Nikkei 50 index eased 024 to 
1,308.06. 

Export-oriented, high tech- 
nology shares were lower on 
the rise in the yen. Sony fell 
Y90 to 75,610. Toyota Motor 
also declined, by Y20 to Y1290. 

Individual investors contin- 
ued to trade speculative 
favourites. Brother Industries, 
the most active issue of the 
day. firmed Y2 to Y675 and 
Wakachiku Construction shed 
Y3 to Y667 on profit-taking. 

Higher commodity prices 


MARKETS IN PERS PE CTIVE 


Brazil slips 3% after new 
currency is announced 


Brazil 


Equities were down 3 per cent 
at midsession as investors 
reacted to news that the gov- 
ernment Intended to introduce 
Us new currency - the real - 
from July 1. 

The Bovespa index was 
quoted off 642 at 14,461. 
Turnover had reached Crl36bn 
($947m). 

Among active stocks. Tele- 
bras weakened 52 per cent to 
0-1280 and Eletrobras 4.7 per 
cent to 0224. 

The new currency is being 
brought in as part of an 
attempt to tackle Inflation, 
which currently stands at 
around 50 per cent a month. 

Several details about the 
changeover - future policy on 
the real's exchange rate with 
the US dollar, for example - 
will not be announced until 
next month. 

Mr Rubens Ricupero, the 
finance minister, said final 
decisions ou monetary and 
exchange rate policy were 


being finalised. It is expected 
that the real will be backed 
initially by Brazil's foreign 
exchange reserves. 

The market has been 
depressed in recent weeks 
awaiting details of the govern- 
ment’s anti- inflation policy. 
Equities have fallen by some 10 
per cent in dollar terms so far 
this year. 

Mexico 

The market fell back in line 
with trading on Wall Street, 
but activity was described as 
moderate. 

At midday the IPC index was 
down 5.58 to 2.17L12 in volume 
of 1.2m shares. 

Telmex was 02 per cent 
easier at 9.16 pesos, affected by 
the fall of its ADRs on Wall 
Street. 

The market was awaiting 
April's inflation data, due out 
later in the session, and antici- 
pating Thursday's first ever 
televised debate by candidates 
for the forthcoming presiden- 
tial election. 


t Baeed on Her Bh IttM. Copyright 1M nwicW Tfenaa limaod. QoMnttn. Soda A Co. and 


The world would have looked a lot worse last week, in 


aggregate, but for a fragile 1.5 
equities on Friday. Later that 
267,000 rise in non-farm 
shuddered. In London, Mr 
gist at Kleinwort Benson, is loo 
ing up of US interest rates”. In 
March mutual fund data as “a disaster”, emphasising the 
point by lifting cash from 7 to 10 per cent of his recom- 
mended equity asset allocation. 


cent gain In Japanese 
the US announced a 
and global markets 
Edwards, global strate- 
ag for "a major ratchet- 
ion, he describes US 


helped some sectors. Petro- 
leum issues were higher on 
gains in crude oil. Shown Shell 
Sekiyu putting on Y30 at 
Y1.410 and General Sekiyu Y3Q 
at Y1250. The rise in gold bul- 
lion supported mining shares, 
Sumitomo Metal Mbiiwg rising 
Y5 to Y90L 

Arbitrage selling hurt bank 
stocks, Industrial Bank of 
Japan declining Y20 to Y320Q 
and Dai-Ichi Kangyo Bank Y20 
to Y1930. 

In Osaka, the OSE average 
receded 69.53 to 22,02723 in vol- 
ume of 18.7m shares. 

Roundup 

Uneven trading characterised 
the Pacific Basin’s markets 
yesterday. Manila was closed 
for a holiday. 

HONG KONG fell 22 per 
cent in lower than average 
turnover, although bargain 
hunting later in the day helped 
to trim the losses. The Hang 
Seng index shed 198.57 to 


8,421.70. Turnover amounted to 
KK$2.3bn, against Friday’s 
HK$3.6bn. 

Property and financial 
shares were selling targets. 
Brokers said uncertainties 
about plans to cool the over- 
heated real estate market 
deterred purchases. 

fThgvmg Kong was the day’s 
most active issue, losing 
HK$125 at HK$34, followed by 
HSBC, off HK$L50 at HK$81.50. 

SINGAPORE retreated a fur- 
ther 12 per cent as the market 
flrtntirmori to consolidate after 
testing the 2,300 level last 
week. 

The Straits Times Industrial 
index shed 33.79 to 2222.40 in 
turnover of S$43&&n. Brokers 
said weakness across the 
Pacific Rtm undermined senti- 
ment to push the rixiPT lower 
for the fourth session. Natsteel 
dropped 80 cents to 885JOO 
on news of a cut in domestic 
steel prices. SEOUL, in con- 
trast, rose for the fourth con- 
secutive day in increased trad- 


ing. The composite index 
added 3.74 at 940.15. 

TAIWAN performed strongly 
and the weighted index gained 
15.07 at 5,99620, but after a ses- 
sion high of 6,054. Turnover 
fell to T$66.5bn from Satur- 
day’s T$77.4bn. 

Ruentex Industries closed 
the day's limit up at T$3tfi0 on 
news that it could earn more 
than T$lbn in coming years on 
land development projects. 

KUALA LUMPUR was 
marked down by 2 per cent, 
the fells led by foreign selling 
of blue chips. The composite 
index shed 2024 to 990.63. 

AUSTRALIA closed higher 
on firmer commodity prices. 
The All Ordinaries index rose 
5.0 to 22092. Turnover totalled 
A$907.0m. 

Higher gold and base metals 
prices offshore helped to boost 
the prices of most mining 
issues, white Industrial stocks 
continued to be depressed by 
worries over a possible rise in 
US interest rates. 


WELLINGTON recovered 
from an early 20-point fall and 
the NZSE-40 capital index 
Closed Off 423 at 2,043.49. 

BOMBAY maintained Fri- 
day's momentum, with the 
BSE 30-share index adding 
4023 at 3,75520. Broken said 
that overseas fund managers 
had begun to pick up some 
blue chip stocks. 

KARAX3EQ lost 22 per cent 
as many investors unloaded 
stock to square positions 
before today’s clearing day. 

The KSE 100-share index fell 
58.84 to 2,307.42. with Lever 
Brothers off RS75 at Rsl.325. 


SOUTH AFRICA 

Equities in Johannesburg 
remained positive ahead of 
today’s closure for the inaugu- 
ration of Mr Nelson Mandela 
as president The overall index 
added 132 at 5,441, industrials i 
advanced 95 to 6,609 and the * 
golds index rose 66, or 3.6 per 
cent, to 1291. 


% change In local currency T 

Wdange 

■•"fcat 

Ketap 

taUSSt 


1 DM! 

4MN*a 

1 VMr 

Stator 

«4 

Mot 

im 

Start at 

IBM 

Austria 

-1.57 

-4.69 

+29.53 

-892 

-023 

-5.43 

Belgium 

+0.42 

+3.02 

+2024 

+1.06 

+5.61 

+6-50 

Denmark 

-3.13 

-1.67 

+22-09 

■059 

+2.98 

+355 

Finland 

-1.72 

+0.88 

+49.41 

+13.14 

+2017 

+21.18 

France 

-0.43 

+1.37 

+1023 

-350 

-159 

-056 

Germany 

-0-26 

+1.32 

+33.42 

-1.76 

+154 

+2-40 

Ireland 

-2.81 

-071 

+2258 

-3 JX 

-084 

+0.00 

Italy . — 

+0-22 

+5.85 

+4097 

+3012 

+3002 

+39.19 

Netherlands 

-0.54 

-0.42 

+25.43 

-2.31 

+056 

+1.40 

Norway 

-0.94 

-098 

+25.93 

+3.49 

+077 

+757 

Spain 

-1-33 

-1-96 

+26.42 

-3.65 

-062 

+023 


+254 

+i57 

+36.00 

+054 

+1425 

+15-21 

Switzerland 

-2-95 

-6.93 

+2451 

-8-38 

-4.74 

-3-93 

UK 

-054 

-0.31 

+12.89 

-750 

-750 

-7.02 

EUROPE 

-0.64 

-0J04 

+21.74 

-3.18 

-097 

-013 

AustraBa 

-2.69 

-3-13 

+1057 

-7.29 

-014 

-253 

Hong Kong 

-3-91 

-883 

+28.24 

-28.03 

-28.83 

-28.03 

Japan 

+0.85 

-003 

+058 

+1153 

+19.77 

+20.78 

Malaysia — 

-4.67 

+5-22 

+5251 

-21-80 

-2053 

-2027 

New Zealand — 

-3.06 

-2.70 

+28.62 

-7.76 

-5.67 

-457 

Singapore 

-Z38 

+7.08 

+35.10 

-10.91 

-8.65 

-758 

Canada 

-055 

-1-02 

+087 

-0.79 

-5-78 

-457 

USA _. . — 

-0.71 

+0.13 

+0.82 

-3.93 

-4.73 

-3.93 

Mexico 

-404 

-283 

+3630 

-13.88 

-1957 

-19.19 

South Africa 

-2.00 

+052 

+44.98 

+854 

-155 

-053 

WORLD INDEX 

-042 

-006 

+734 

-081 

+151 

+Z47 



I FT-ACTUARIES WORLD INDICES 1 

Jointly compiled by Tho Financial Times Ltd.. Goldman. Sachs & Ca and NaiWesi Setxrrttes Ltd. m conjunction with the Institute of Actuaries end the Faculty at Actuaries 

NATIONAL AND 
































Figures h porenthosm 

US 

Day's 

Pound 



Local 

Local 

Gross 

US 

Pound 



Local 



Yeer 

shew timber ot Hn«» 

Donor 

Change 

Storing 

Yen 

DM 

Ctarancy 

* chg 

□hr. 

Dollar 

Storting 

Yen 

DM Curency 52 week 52 weeK 

ago 

of stock 

Index 

* 

Index 

index 

index 

Index 

on day 

Yield 

index 

index 

Index 

Index 

Max 

Wgh 

Law 

approx) 

AustraBa (68) 

16299 

09 

161.B7 

105.90 

141.19 

151.59 

ag 

3.62 

161.46 

159.96 

104.83 

140.06 

15027 

189.15 

13019 

13754 

Austria (17) 

174.94 

-0.8 

17353 

11355 

151.53 

151.89 

-0.7 

1.02 

17855 

17456 

114.41 

16256 

15259 

19541 

13953 

14255 

Belgian (42) 

17322 

-05 

172.13 

11254 

150.04 

146.55 

-03 

3.73 

173.62 

17157 

11Z70 

16057 

14753 

17857 

14152 

14014 

Canada 006) 

129.04 

0.2 

12853 

83.B4 

111.77 

129.16 

-0.1 

Z61 

128.77 

12755 

8359 

11158 

12955 

14551 

121 AS 

127.79 

Denmarfc (33) 

256.72 

-0.1 

255.10 

166.79 

22256 

227 80 

-0.1 

095 

25094 

25450 

166.70 

22253 

228.11 

275.79 

20758 

22S54 

Finland <23.- 

149.29 

05 

148 35 

0099 

12951 

169.40 

a4 

0.88 

146.60 

147.19 

96.46 

128.87 

168.79 

158.72 

8554 

9953 

France (98) — — 

174.90 

-0.1 

173.88 

113.68 

151.57 

156.70 

-0.1 

2.0H 

175.11 

173.46 

113.07 

161.87 

157.03 

18557 

149.80 

16158 


143.00 

05 

142.70 

3350 

12438 

12-L33 

ao 

1-66 

143.3T 

142.02 

9357 

12434 

12434 

14757 

10759 

11557 

Hong Kong (56) 

352.17 

2.6 

348.95 

228.80 

305.05 

349.36 

2.6 

34)4 

343.17 

33952 

222.77 

207.83 

34a 40 

606.56 

271 M 

274.56 

Ireland (1J) 

185.21 

-0.4 

184.04 

12033 

16043 

179.53 

-414 

SM 

18559 

18454 

120.74 

18151 

18057 

2)953 

15553 

18075 

StBTy (60) 

95.47 

3.5 

94.86 

6252 

8256 

114.10 

ao 

1.54 

9250 

9153 

5036 

7637 

110.73 

9853 

6758 

7038 

Japan (469) 

157.17 

1.4 

156.18 

102.11 

136.14 

102.11 

1.5 

0.70 

15501 

15355 

100.62 

13444 

100-62 

16651 

12454 

14657 

Malaysia (98) 

471.66 

as 

468.09 

306.43 

40656 

479.93 

ao 

1.42 

46756 

46354 

303.70 

40958 

48004 

82153 

31251 

317.77 

Mexico (16) 

1929.57 

-0.1 

191758 

1253.81 

167156 

6963.07 

ao 

072 

1931.32 

1813.03 

1253.71 

167458 

868357 

2647.09 

1431.17 

149150 

Nothcrtmd p6) 

201.90 

as 

200.63 

131.17 

174.89 

172.42 

0.5 

026 

200.70 

198.81 

13029 

17407 

17152 

207+3 

16350 

18957 

New Zealand (14) 

£4.60 

15 

64.19 

41.07 

55.95 

59x18 

ao 

4.01 

63.45 

6255 

41.19 

55.03 

5852 

7750 

4652 

4756 

Norway (23) 

193.42 

-0.7 

192.19 

125.68 

16753 

189.78 

-0.9 

1.75 

194.80 

19196 

128.45 

188.94 

191+6 

206.42 

16051 

16651 

Singapore (44) 

-338.56 

-15 

338.43 

219.96 

29356 

242.77 

-1.4 

I.es 

343.01 

339.77 

22257 

297.49 

24022 

37852 

23852 

24159 

South Africa (59) 

264.94 

35 

26357 

172.13 

229.49 

271.88 

1.3 

237 

258.43 

234.01 

188.40 

222+0 

288+7 

28028 

17553 

167.74 

Spain (42) 

139.67 

aG 

138.76 

00.74 

12056 

14558 

0.7 

4.10 

130.88 

13756 

6014 

12043 

14455 

155.79 

11653 

131.08 

Sweden (36) 

22624 

-0.9 

224.82 

14850 

195.67 

258.15 

-1.1 

154 

22026 

226.13 

14020 

18000 

20059 

23052 

16355 

17024 

Swteortand (48) 

15355 

-1.1 

152.88 

99.96 

13358 

135.08 

-1 2 

1.78 

15553 

154.06 

10096 

13458 

138.79 

17858 

121.14 

12354 

United Kingdom 1205).- 

19055 

-0.3 

169.46 

12356 

166.14 

186.46 

o a 

091 

191.19 

189.38 

124.11 

18551 

18958 

21496 

17052 

177.71 

USA (519) 

18245 

-0.9 

18150 

1 18.53 

156.03 

182.45 

-03 

2.93 

18403 

18229 

11Bj47 

15951 

18403 

196.04 

178.95 

18097 

EUROPE (734)- 

,—,..169.35 

0.1 

16856 

11052 

148.69 

159.81 

0.1 

259 

16027 

16757 

10958 

14650 

159.68 

17658 

14158 

147.04 

Nordic (114). — 

313.63 

-05 

212 59 

138.79 

165.05 

21356 

-as 

iaz 

214.72 

212.08 

13058 

16652 

21461 

22060 

15552 

16090 

Paoac Basin (730) 

164.46 

14 

183.42 

106.85 

142.45 

111.52 

1 A 

106 

16251 

16058 

10550 

14088 

10096 

18850 

13479 

14954 

Euro- Pacific (1474) ..16654 

05 

16559 

10007 

14458 

130.41 

05 

1.85 

165.00 

163.44 

107.11 

143.10 

12031 

170.78 

14158 

148.10 

North America (625) . — 

179.13 

-as 

178.00 

11658 

155.16 

178.78 

-08 

251 

18060 

178.89 

11754 

1S853 

19026 

182.73 

17557 

17757 

Bmpe Ex UK (519)— - 

153.87 

02 

152-90 

99.97 

13358 

141.16 

01 

259 

15351 

152.05 

99.05 

133.13 

14152 

157X7 

12257 

12755 

Pacific Ex Japan p31)_ 

— ^3735 

15 

235 .75 

154.14 

20550 

215.97 

1.1 

Z70 

234.17 

23156 

18251 

203.10 

21057 

29021 

181.46 

182.60 

World Ex. US (1657)— . 

167.30 

05 

16654 

106.69 

144.91 

13353 

08 

1.88 

165.92 

164.35 

107.71 

14350 

132.44 

17251 

14254 

14082 

Wold Ex UK (1971) — 

169.45 

0.3 

18856 

110.09 

146.77 

144.04 

02 

258 

16097 

10757 

108.89 

14055 

14458 

17558 

15352 

15081 

World Ex SO. At. (2117) 

17a 77 

05 

169.69 

11054 

147.91 

147.99 

02 

254 

170.44 

16852 

11064 

14751 

14758 

17858 

15550 

16038 

World Ex Japan (1707) 

160-92 

-05 

178.78 

11754 

158.71 

17002 

-03 

258 

181.41 

17959 

117.76 

15753 

17057 

19550 

165.70 

187.12 

The World Index (2178). 

17153 

0.2 

17025 

111.31 

148.40 

148.93 

02 

254 

17054 

16032 

11097 

14855 

148.80 

17657 

155.17 

15047 


C / b 0 ( (A ( H J 


GROUP COMPANIES: 


CREDITSU tSSE 


SWISS VOLKSEANK 


LEU HOLDING LTD. 


CS FIRST BOSTON 


FIDES INFORMATIK 


ELECTROWATT LTD. 


NOTICE TO THE HOLDERS OF 

US$ 500,000,000 

CS HOLDING FINANCE B.V. 

(nraifonud wilh limited liability in ilw Netherlands 

478% Subordinated Convertible Bonds Due 2002 

Guaranteed on a Subordinated Basis by, 
and Convertible into Bearer Shares 
of CS Holding, Zurich 

(incorporated with limited liability in Switzerland) 


The Board of Directors of CS Holding will submit a proposal to the Annua] 
Meeting of Shareholders on 30 May 1994 to conditionally increase the capital 
by an amount not to exceed Str 204,974220 in par value to secure shareholder 
warrants issued to existing shareholders. 

If the Annual Meeting of Shareholders approves this proposal, holders of bearer 
shares and registered shares of CS Holding will receive per 6 June 1994 one- 
shareholder warrant series IA for each bearer share of CS Holding, and one share- 
holder warrant series NA for each registered share of CS Holding, free of all 
charges. 

The new shares, which will be issued as the shareholder warrants are exercised, 
are to be fully paid up in accordance with the terms to be announced for the war- 
rants on 30 May 1994. 

In connection with this year’s issue of shareholder warrants, CS Holding informs 
holders of the subordinated convertible bonds specified above that they may still 
obtain CS Holding bearer shares which entitle them to receive shareholder war- 
rants by exercising their conversion rights 

by 20 May 1994s 4.00 p.m. at the latest. 

Holders of these bonds who choose to exercise their con version rights roust deliver 
their conversion notice, the bonds and any payments required to the conversion 
agent (Credit Suisse) designated in the prospectus by the above date. 

In conversions carried out between 24 May and 26 May 1994 inclusive, the 
holders of the bonds being converted are not entitled to receive shareholder 
warrants and their holdings are not protected from dilution. No bonds may be 
converted from 27 May to 16 June 1994 (second date provisional). 

There will be a reduction in the conversion price, which is presently Sfr 442.45 per 
bearer share, or conversions which are carried out subsequent to 16 June 1994. 
It is anticipated that the reduced conversion price will be published in the news- 
papers designated for this purpose on 16 June 1994. 


Zurich, 10 Mav 1994 


For CS Holding: 

CREDIT SUISSE 


4 %% CS Holding Finance B.V. 
Sobordiiuned Convertible 
USS bonds 1942-2002 


Swi* Securities Number 
ISiN 

Eurorlcar 

Cedel 


536 802 
CH00O53A8024 
40461% 
X5 004046116-3 


CopyrigM The Fhonett Time* Untied, Gottmm. Sachs and Co. aid NttWett Securite Umtad. 1387 
Lettst press si* innkn lor Mg wMcn. 





£*•> Nt 


)r \ 


- si over 


• ;; X Tn AFRICA 


The government regards 
democracy as a bothersome 
foreign imposition: Page 3 


FINANCIAL TIMES SURVEY 


KENYA 

Tuesday May 10 1994 


An African test case 
for good government 

In spite of the legalisation of opposition parties and 
the implementation of economic reforms, Kenya is 
still very much on. probation, writes Leslie Crawford 


Kenya has undergone such 
radical changes in the 1990s 
that the image which It pres- 
ents to the world is often dis- 
cordant and confused. 

The one-party state legalised 
the opposition and contested 
elections in 1992, wh3e arguing 
it did not believe In democracy. 
President Daniel a rap Moi 
rebelled against the dictates of 
the International Monetary 
Fund last year, and then imple- 
mented a comprehensive set of 
ecaqomicreforms which have- 
woti plaudits from local and 
foreign investors! A new team 
at the treasury is attempting to 
stem the misuse of public 
funds, but the culprits remain 
politically powerful and above 
the law. 

The Kenyan. 'government 
shelters hundreds of thousands 
of refugees from conflict in 
neighbouring countries, but 
tolerates the practice of ethnic 
cleansing in its ownbackyard. 

It is not always easy to deci- 
pher there conflicts® signals, 
in part .bebausb- the interna- 
tional community’s relations - 
with Kenya have also changed. 
More than any other- Country 
in Africa, Kenya is being held ' 
as a test case far. new. donor 
policies linking aid to .good 
government 

Since November 1991. when 
the World . Bank, IMF and 
donor gcrmin n earts decided to ' 
withhold hundreds ofmiflions 
of doBars of fimm trial assis- 
tance as a protest against 
mounting corruption and 
against Kenya’s 1 , political and; 
spnnnmfc failings,* this lapsed* 
African role model has toeest oh ■' 
probation. • ■' • 

The aid freeze proved to be . 
the catalyst for much at the 
Change that ensued. A; few 
days after the landmark donor 
meeting in Paris,'. President 


Moi legalised opposition par- 
ties. In the elections which fol- 
lowed in December 1992. Presi- 
dent Moi and his Kenya 
African National Union (Kami) 
party defeated a divided oppo- 
sition. 

The elections, however, 
failed to deliver the promise of 
democracy. Kanu retains an 
absolute grip on power, which 
it wields arbitrarily. Since the 
advent of the new multi-party 
era.* police have developed a 
worrying fondness for arrest- 
ing and harassing opposition 
members of parliament Twen- 
ty-five MPs - almost a third of 
tiie opposition force - have 
been inside Kenyan jails in the 
past year. Their most frequent 
offence has been to hold meet- 
ings in their constituencies in 
defiance of police bans. 

y. • . i ■■ . 

; M IMS SURVEY 

The Economy, Page 2 
Politics, Page 3 
Companies fee) the effect 
;of reforms. Page 4 . 

. Privatisation, Page 5 
Agriculture, Page 6 
Export proces si ng 
. zones, Page 7 

fanpact of Aids, Page 8 

■ ■*■“•/*« . 

Kenya’s EveSy and indepen- 
dent press is also under attack 
for reporting on ethnic Hashes 
in the popiilousitfit Valley - a 
highly sanative conflict pitting 
President Mot's Kalenjin dan 
and other pastoral tribes 
against Kikuyu settlers, the 
largest athhfc group in Kenya. 
Hie dashes fmve caused 1,500 
.Seaths- ahd displaced 800,000 
people, since 1991, according to 
church 'and human rights 
groups.'" ' : . 

. The goverhinent, meanwhile, 
is trying to impose a blackout - 
on hews about the troubled 







iy- si*' ' • 


region by charging reporters 
with subversion. 

The government blames Ken- 
ya's recent social turmoil on 
the multi-party system it 
adopted under duress. Presi- 
dent Moi, a reluctant convert 
to democracy, believes west- 
ern-style political parties can- 
not work in Africa because of 
their tendency to fragment on 
tribal lines. 

But whereas the new politi- 
cal scenario in Kenya has 
thrown the tribal factor into 
greater relief, the fissures were 
already evident under one- 
party rule. Since 1978, Presi- 
dent Moi has governed with a 
coalition of minority Rift Val- 
ley tribes, who resented 
Kikuyu domination under the 
late Jomo Kenyatta, Kenya's 
first president, and fear a 
revival of Kikuyu power. 

While tribal arithmetic and 
mistrust have prevented genu- 
ine political dialogue between 
government and opposition, 
the arithmetic of dwindling aid 
dollars ha$ made talking with 
Kenya’s (hstrustful donors an 
absolute imperative. 

Kenyan officials are reluc- 
tant to spell out the cost of the 
* two-year aid freeze but it can 
be measured by the slump in 
economic growth, the decline 
in per capita incomes and in 
the collapse of social services. 
During the first year of the aid 
freeze, Kenya recorded its lcw- 

- est growth fate since indepen- 

dence: a meagre 0.4 per cent in 
1992. . 

The economy remained stag- 
nant in 1993. while the govern- 
ment ntn up $700m in arrears 
on its external debt repay- 
ments^. Unemployment affects 
27 per cent of the urban popu- 
lation Id Kenya's state hospi- 
-tals, operating theatres' lie idle 
because of the lack of essential 

- ■ • .. . 



After the storm: Nairobi ts shaping 
up for growth foRowring reforms 

drugs and surgical equipment 
Children are being denied edu- 
cation because parents cannot 
afford school fees. Roads, rail- 
ways, power and water 
sy st em s have fallen into disre- 
pair. 

In addition, the run up to the 
December 1992 elections saw 
some very curious financial 
transactions thought to have 
benefited some who were 
uncertain of their political 
future. New domestic banks 
were licensed to finance the 
camp ai g ns of Kati n politicians. 
Large quantities of gold and 
diamonds were allegedly 
exported in order to qualify for 
generous government rebates. 
Financial irregularities multi- 
plied after the elections, 
involving the Central Bank in 
the provision of billions of shil- 
lings of unsecured loans to 
“political banks”. 

By the time Mr Musalia 
Mudavadi, appointed finance 
minis ter in January 1993, was 






SUDAN 


PofMotian growth (%) 
HboI OOP growth (%) 
6DP(KomBkn) 


1881 1992 


227.2 268.4 


* WWV BQ annual MMIan (%} 19S 27 j 
Qovt rovonuo (Km bMonl SM 67.3 

Govt, agpondtura (Ko bBon) B5 l 8 708 


/ 

1 / 

LaUmjng 


Lodwar* 


Km 300 


ETHIOPIA 


Luke 

-. Turftam 


MflnoyppfrtKobBan) 
Exports (Ka MHon) 


imports (Ka bffilon) 


Machtnory 4 Transport 


Manufacture^ 

Trad* balance (Ks bfflkm) 
Current acc bafance g(e bn) 
Foreign reserves (Ks b»on> 


743 993 


UGANDA 


/ . 

J Kjpefl9i*ta 

Vl Qttfe 


W*J»r J 


SOMALIA 


KatMHgi 


- ' M ain . 

• -.--Mena 


S3 3 61.0 


jLbm Ktouma • ' Konya Oarteaa 

‘dctota . l L lil| l«»WI.' : >V'.«Ertu . *• 

Hone Bay" • SrS- .—iJ* L- _ 


idai! (bMe.H*! 

. - turnon* . 


-243 SB3 




Mf Kritnanftoo 


>reta (Ks/USS) 28.1 




tNOIAfi 


30.5 32.8 


\ . -'S-\ TANZANIA \ KwaW#*Monibree OCEAN 


Source. CarSral Bank ol Konya 

‘i r-'i- ’ 1 :. •. ? ? s? ; m 

able to stop the rot, the cost to 
the exchequer had been esti- 
mated by independent auditors 
at KsSObn ($43Qm), or approxi- 
mately 10 per cent of the coun- 
try’s gross domestic product It 
was the biggest sum to go 
twigging from public funds in 
Kenya’s history. 

Heads rolled at the Central 
Bank, but, to date, no-one hag 
been charged with financial 
wrongdoing. 

The enormity of the financial 
losses, however, appears to 
have jolted Kenya’s decision 
makers to their senses. A rap- 
prochement was sought with 
the World Bank and IMF. A 
new governor. Mr Micab Ches- 
erem, was appointed to the 
Central Bank. By mid-1993, 
Kenya was back on a serious 
reform track. Mr Cheserem. a 
former senior accountant with 
Unilever, concentrated on 
tightening hanking regulati ons 
and supervision. At the Trea- 
sury, Mr Mudavadi worked on 


the most rapid deregulation of 
an economy Africa has ever 
seen. Import licences were 
scrapped. The Kenya shilling 
was devalued and then floated. 
Exporters were allowed to keep 
their foreign exchange earn- 
ings. Restrictions on the repa- 
triation of profits and divi- 
dends were lifted. All price 
controls, with the exception of 
petroleum products, were abol- 
ished. The government opened 
to private traders the import 
and marketing of maize. Ken- 
ya’s staple foodstuff. 

The private sector, long suf- 
focated by government con- 
trols. is feeling rather giddy in 
the newly liberalised environ- 
ment Exports responded to the 
devaluation of the shilling, 
surging by 15 per cent last year 
to Sl.lhn. Local manufacturers 
no longer have to queue and 
bribe to obtain import licences 
and rationed foreign exchange. 
A majority of multinationals 
polled by the East Africa Asso- 


ciation are planning significant 
new investments. The reforms 
have won Mr Mudavadi and Mr 
Cheserem a devoted following 
among Nairobi bankers and 
businessmen. In November 
1993, Kenya's dynamic duo 
were rewarded with the resto- 
ration of fast-disbursing bal- 
ance or payments aid and 
encouraging words of support 
from a less sceptical donor 
community. 

Inside government, however. 
Mr Mudavadi is battling a for- 
midable coalition of opponents 
of reform, who resent the loss 
of patronage implicit in the 
finance minister’s agenda. 

So far, Mr Mudavadi has 
stayed the course, thanks to 
President Moi’s backing and 
the absence of any credible 
alternative economic policy, 
but his security of tenure Is 
not guaranteed. Neither is suc- 
cess as he prepares to tackle 
the daunting problems of a 
chronic budget deficit and par- 


as total reform. 

Donors worry that the 
finance minister's plans may 
be over-ambitious. Neither 
inflation, running at an ann- 
ualised rate of 50 per cent, nor 
government expenditures are 
under control. The cost of ser- 
vicing the government's bal- 
looning domestic debt leaves 
little room for investment in 
Kenya's dilapidated social ser- 
vices. Few of the 400,000 
school-leavers this year will 
find jobs. 

And yet, with elections not 
due for almost four years, 
there is hope that Mr Muda- 
vadi, backed by a strengthened 
private sector, may be given 
the chance to put Kenya back 
on to the growth fast-track. 

Perhaps a modem civic soci- 
ety will also be allowed to 
emerge as a generation of polit- 
ical leaders, whose authoritar- 
ian instincts date back to the 
struggle for independence. 
Anally retire. 


? s. D l 3 S OF 


A iV 


rv £E B.V. 


m 

; •?/- '• ^ 


A network that pulls more weight 
in financing world trade. 



‘;~v 



V*" - , •' XS j 





The fingering of international trade has been a con? business 
of Standard Chartered Bank for owr 240 you* It is one of the 
strengths on which our international network has bear built 
Tbday, that network operates through more than 600 group 
banking offices in over 50 countries — with particular strength 
in the developing economies of Asia and the Pacific, as well as 
Africa and the Middle East. 


Creating links between emerging markets, and making con- 
nections betwem than and the developed economic, Standard 
Chartered is ideally placed to help finance some of the world's 
fastest-growing flows of trade. 

Bur its not just a question of having people on the ground at 
both ends of a transaction. 

More than an international network, Standard Chartered 


offers you the benefits of international networking - pooling the 
skills, the local knowledge and the expertise of our people to 
deliver an outstanding service. 

As trade finance specialists, we aim to (Mirer the practical 
skills which ensure the efficient handling of routine documen- 
tary credits — and, at the same time, the technical and creative 
expertise required to devise innovative, sophisticated financings. 


Standard Chartered has a long-established reputation as a 
leader in financing international trade. By building on the 
strengths of our network and our people, we are building on that 
repuration still further. 

Standard I? Chartered 


INTERNATIONAL NET WORKING m 






FINANCIAL TIMES TUESDAY MAY 10 1994 


II 


ECONOMY: Kenyan business is emerging from a traumatic period in the doldrums, but reforms promise respectable growth, says Tony Hawkins 


The old guard can offer no alternative 


Inflation . 

Annual percentage change 
60% 


IF trig-business sentiment Is a 
reliable guide, the Kenyan 
economy has turned the comer 
and is poised to return to 
respectable growth rates in the 
latter half of the decade, 
though 1994 will be flat 

Kenyan business is emerging 
from a traumatic period in the 
doldrums - 100 per cent infla- 
tion, 70 per cent devaluation, 
an epidemic of damaging finan- 
cial scandals, record interest 
rates, drought, a freeze on 
donor funds and sudden, 
unpredictable shifts in macro- 
economic policy. 

Yet such is the economy's 
resilience that GDP stayed 
fractionally ah wad of the game, 
with real output rising 0.4 per 

cent in both 1992 and 1993 and 
forecast to grow by 2 to 3 per 
cent this year. 

But business sentiment is 
notoriously fragile and volatile. 
A teaming businessman admits 
to “a nervous feeling in the pit 
of fay stomach” that at least 
some of the sweeping reforms 
of the past 12 months will be 
reversed. Another believes that 
the scales are so finely bal- 
anced between reform and a 
return to controls that the out- 
come is too close to calL 

The most immediate chal- 
lenge is political. Clustered 
around President Daniel arap 
Mol is a clutch of oldrguard 
politicians for whom structural 
adjustment, deregulation, pri- 
vatisation, the World Bank and 
the IMF are dirty words. They 
are unlikely to acquiesce in the 
loss of privileged access to 
wealth and patronage at the 
behest of, ami under duress 
from, the donor community. 

That said, this anti-reform 
group does not have much 


Manufacturing production 

Volume (Index 1982=100) 

175 : — : 




1981 83 ‘85 8? 89 91 98 


160 


IS 


Souraaa: Vferid Sank, 


EK 


KMnjn Econoafe Swop and FToMbnetsa 

going for it, given the failure of 
its policies. However, it can 
point to failing living stan- 
dards and the limp supply 
response to reform, other than 
exports. With a population 
growing at 3.4 per cent annu- 
ally and stagnant GDP, real 
incomes have fallen some 8 per 
cent since 1990; unemployment 
has worsened and wage awards 
have fallen far behind infla- 
tion. Urban unemployment 
climbed from 16 per cent in 
1986 to 23-5 per cent by 1991, 
and Is now estimated to be in 
the region of 27 per cent, while 
rural unemployment is put at 
12 per coot 

The critics are on weak 
ground, however, when it 
comes to policy alternatives. 
The old guard has nothing to 
offer in its place. There is no 
constituency for a return to 
the bad old days of price and 
import controls, overvalued 
exchange rates and pervasive 
state intervention. With no 
elections due for almost four 
years, the reformers have a 
window of opportunity to get 


THE STAR PLAYERS 








P r T' 










ON THE AFRICAN CIRCUIT 


At Citibank we’re committed to drawing oo our 
international expertise to support African economic 
growth. 

We’re committed to deploying top ptofcssforni 
staff to expand and maintain an c {Ticket, modem 

banking infrastructure. 

And we're committed to creating innovative 
DnancraJ products specifically designed fo meet the 
needs of tlm continents evolving markets. 


Our pan- African netork includes all tire major 
markets from Algeria to Zambia and provides 
them with the capabilities and quality of service 
fix' which Citibank is renowned internationally. 

For more information on bow Citibank can 
help yon with trade finance or treasury, capital 
markets or correspondent banking, simply 
contact: Robert Annibale in London on 
(44) 71 438 1840. 


cmBAWtar 


i imal aad appmed by CUxuk. NLA. - a ■Katber oTSFA.* UUtO 


Money supply 

KsNUngsbriton - 



25 


J _L 


J L 


1980 85 90 95 

SAkcacIMorid Bo* S FT wttmta 

Kenya back on to a 5 per cent 
growth track - fuelled, this 
time, by a structurally healthy 
economy, rather than one 
dependent on aid and volatile 
commodity prices than 

A survey of multinationals 
by the East Africa Association 
finds that the majority of the 
37 respondents (to date) have 
significant Investment plans. 
Only me is disinvesting. The 
government's Investment Pro- 
motion Centre has had 120 
investment inquiries so far this 
year, and about 20 per cent of 
them have been translated into 
firm project proposals. The 
country's first privately-owned 
industrial park and export pro- 
cessing Zone (EPZ) is fully sub- 
scribed, while officials claim 
good support for Athi River 
EPZ, due to come on stream 
later in the year. 

This - largely anecdotal - 
evidence suggests that there 
are at least the stirrings of an 
investment supply response, 
while exports have already 
responded significantly to 
devaluation and 100 per cent 


1991 1992 1993 

Souncs Com art of Konya 

earnings retention. In dollar 
terms, exports surged 15 per 
cent last year to $Llbn. 

Industrialists attribute 
increased exports of manufac- 
tures to devaluation, strength- 
ening economies in (and 
improved trading ties with) 
Uganda and Tanzania, and 
some shift of commerce from 
Informal to formal channels. 
C l othin g, textile and footwear 
firms, some in the EPZ, or util- 
ising the ma nufac turin g-under - 
bond scheme, are penetrating 
European and North American 
markets 

Reform has done wonders for 
the financial sector, too - 
though not yet for insurance 
groups. Barclays Bank of 
Kenya doubled its profits last 
year, white share prices dou- 
bled on the Nairobi Stock 
Exchange in the first two 
months of 1994, though they 
have since fallen by a quarter. 

Business has also been 
encourage d by the opening up 
of constructive dialogue with 
the government, and especially 
with finance minister Mosalia 
Mudavadi and central bank 
governor Micah Cheserem. Pri- 
vate enterprise played a lead- 
ing rote in staging the Nairobi 
investment conference last 
week, and will be prominent at 
the London investment confer- 
ence scheduled for November, 
being organised with Confeder- 
ation of British Industry. 

Not everyone is upbeat. The 
donor community, marriihig to 
a different drum, is stuck in 
wait-and-see mode. Its caution 
stems partly from its under- 
standable preoccupation with 
political conditions, memories 
of having been misled by Che 


Kenyans in the 1980s, and cur- 
rent concerns about macroeco- 
nomic m-anagpnw nt. 

The challenges here are for- 
midable: per capita incomes 
wtQ fall again this year for the 
fourth successive year, infla- 
tion, which had fallen to 16 per 
cent on a three-month moving 

average basis by December last 
year, from a peak of 101 per 
cent in mid-year, is back above 
50 per cent; bank lending rates 
of 33 per cent are substantially 
negative in real terms and set 
to move higher; and the 
exchange rate, having overshot 
fit fell to a low of Ks70 to the 
dollar late test year), has now 
appreciated to the point where 
exporters are beginning to 
nrunplaiw tha t thair competi- 
tive edge is under threat 

This year, too, the economy 
will pick up the tab for the 
fiscal and monetary expansion 
associated with the December 
1992 elections and the subse- 
quent banking and financial 
scams that cost the country lit- 
erally hundreds of minions of 
dollars. The authorities man- 
aged to slow money supply 
growth to 26 per cent last year, 


.r-%V 

ijW, 



Musaia Mudavadi: a constructive 

dMogua wMi buikif 

from 33.6 per cent in 1992, by 
driving treasury bill yields 
above 70 per cent to drain 
liquidity from the system at 
enormous interest cost to the 
exchequer. The volume of bills 
outstanding more than quadru- 
pled daring 1993, to reach 
KsSSbn at the end of the year, 
and increased by a further 35 
per cent in the first quarter to 
KsSObn in early ApriL 
The high nominal Interest 
rates used to mop up liquidity 
now threaten to destabilise the 
economy, fuelling rapid 
monetary growth as capital 


flight is reversed, resulting in a 
substantial 1993 current 
account balance of payments 
surplus and a firmer shilling. 
Managing the T-bni mountain 
will tax the authorities' 
ingenuity, forcing them to 
lengthen borrowing maturities, 
or incur a budgetary surplus to 
repay debt 

The latter option is not on 
the cards. The budget deficit is 
forecast at 7 pm* cent of GDP 
this year (to June 30), due to 
heavy interest charges, 
external debt-restructuring 
notwithstanding. Interest costs 
account for 42 per cent of 
recurrent spending - 35 per 
cent domestic and 7 per cent 
foreign. 

It is clear that structural 
adjustment is not going to 
succeed without radical public 
sector reform. Civil service 
reform, in terms of freezing 
posts and retrenching staffi is 
on target, but this is only the 
tip of the iceberg. The real 
challenge is to improve 
accountability, transparency 
and efficiency right though the 
public sector, and especially 
the parastatals. Re-engineering 
the parastatal sector is 
arguably tire most formidable 
challenge facing the 
government, since public 
enterprise inefficiency and 
infrastructural decay are both 
a heavy burden on the budget 
and major deterrents to new 
investment 

Fiscal policy and the 
associated problems of 
monetary management and 
inflation top the policy agenda, 
and it is here that the scope for 
(and danger of) slippage is 
greatest, under pressure from 
big-spending ministers. The 
government Is caught in a 
fiscal bind - stagnant revenue, 
reduced aid inflows, 
expenditure overruns, 
escalating interest costs, and 
the need to write off debt to 
clean up parastatal balance 
sheets. 

Over the next two years, the 
deficit must be trimmed to 2 
per cent of GDP, implying both 
revenue enhancement and 
spending cuts. There are high 
hopes of the former, following 
the appointment of three 
pre-shipment import inspection 
agencies, whose prime task 
will be to monitor customs and 


W-- 


: 


! ; • r . 

UjL/r.„±.zL 

w • 

/Vr - • L ’ • 




1 I » ; • » - 7 

y~ 

i i : i ■ - ' ; • v- :: 

r. 1 : L 



1992 


1999 


1994- 


Foretanresenes 


KaNBnsUKMV 
80/ 



1992 

Exchange, cate . 

KshfBng par USS ‘ 

20 


1993 


1994 - 



-80 

19(» 

Sduc*OMtral B««e<K*ty« . 

VAT payments, thereby 
levelling the playing-field for 
local manufacturers facing 
competition from importers, 
paying bribes rather than 
duties to get their products 
into the country, while 
simultaneously boosting 
government revenue. 
Estimates suggest that 
anything for 25 to 50 per cent 
of taxes and duties are being 
evaded/ 

But it is impossible to 
reconcile heavy investment in 
the country's rundown and 
deteriorating infrastructure 
with fiscal stringency and 
domestic debt repayment, 
especially in a country forced 
to live with the withdrawal 
symptoms of reduced aid 
dependence. Traditionally, 
Kenya was able to rely on 
donor funding for 
development, with net 
disbursements of over $lbn 
annually in 1989-90. But those 
days have gone: Kenya's aid 
reliance ratio (aid as a 


1993 


1994: 


percentage of GNP) fell from 
13.7 per cent in 1989-90 to 7 per 
cent In 1991-92, when inflows 
declined to$780m. 

To achieve social stability, 
the economy must grow at 7 
per cent annually into the next 
century, creating 165 000 new 
wage-sector jobs each year. 
This is a tall order, given 
declining rates of investment. 

The reforms of the past year 
have created a platform for 
self-sustaining growth, but 
there is a long way to go to 
overcome the political doubts 
of the recent past, to 
rehabilitate the public sector 
and create the enabling 
environment necessary for 
Aslan-style growth rates. 

The jury is out on the 
sustainability of Kenyan 
reform, but with private 
enterprise markedly more 
bullish than . before, the 
investment response Lacking in 
so many parts of Africa may 
materialise in the latter half of 
the decade. 


A fter years of complain- 
ing that implementation 
of Kenya’s reform pro- 
gramme has been too slow, 
donors are now warning of 
“overload” and “indigestion". 

Overload is the consequence 
of weak public sector manage- 
rial skills on one hand, and 
pervasive political intervention 
and obstructionism on the 
other. After a year In which 
many of the constraints on the 
economy - especially those 
affecting prices, foreign trade 
and payments and the finan- 
cial sector - have been swept 
away, Nairobi Is now under 
pressure on two main counts: 
public sector reform, mchiritng 
parastatal restructuring; and 
macroeconomic stabilisation. 

The two are closely inter- 
linked; price and exchange rate 
stability will be restored only 
when the budget deficit and 
credit creation are brought 
under control. The current 
macroeconomic policy stance 
is the now-familiar counter- 
productive mix or fiscal expan- 
sion, partly offset by monetary 
curbs. As fast as the govern- 
ment pumps liquidity into the 
system, so the central bank 
mops it up with treasury bills 
and increased statutory cash 
reserves. 

As a result, the private sec- 
tor - the obvious engine of 
growth - is carrying the can 


The private sector is carrying the can for public sector inefficiency 

Indigestion inhibits growth 



for public sector inefficiency. 
Investment is being con- 
strained by parastatal ineffi- 
ciency and a weak infrastruc- 
ture, while government 
profligacy is crowding out cor- 
porate investment, forcing 
firms to pay higher nominal 
interest rates. 

This has to change. In the 
ambiti ous p olicy framework 
paper (PFP), agreed with the 
IMF late last year, the govern- 

Despite generous terms 
from the Paris Club, 
external debt is a burden 


ment has promised to cut the 
budget deficit to a targeted 6.1 
per cent in 1903-94, from 10 J5 
per cent last year, with further 
reductions to 3 per cent in 
1994-95 and 2 per cent the year 
after. When grants are 
included, the budget should be 
In balance by 1995-96. 

Some slippage is inevitable 
given the difficult political 
environment and the enormity 
of the task in the public sector. 
The signs are that Kenya will 
overshoot the deficit target by 
over 1 per cent in the year to 
June 30, and this could turn 
out to be optimistic as hitherto 
unknown public sector spend- 
ing commitments and borrow- 
ings c pntinuB coming to light 

The 1994-96 PFP targets 
increasing revenue from 22 per 
cent of GDP to 24 per emit by 
1996. Some maximum tax rates 
will be lowered, but the tax- 
base will be broadened by abol- 
ishing tax exemption for paras- 
tatals, improving revenue col- 
lections and ex panding VAT to 
cover sendees. 

Government spending is to 
be reduced from 29 per cent to 
26 per cent of GDP by 1995, by 
eliminating subsidies to the 
National Cereals and Produce 
Board, civil service retrench- 
ment, and cuts in security 
spending and interest charges. 
The latter looks a forlorn hope 
at a time when domestic inter- 
est charges are absorbing over 
a third of the budget and for- 
eign payments a further 7 per 
cent 

The civil service is shedding 
26.0Q0 fobs - over half of them 
unfilled posts - in the current 
year, reducing its workforce by 
some 5 per cent to 250,000. A 
further 48,000 jobs will go over 
the next three years at the rate 
of 16,000 annually. 

Price controls have been vir- 
tually eliminated, with one sig- 
nificant exception - fuel 
prices. These are due to be 


deregulated by July, though 
Important technical issues 
relating to the refinery remain 
to be resolved. 

Far-reaching reforms are pro- 
posed for agriculture, includ- 
ing strengthening research and 
extension services, the privati- 
sation of some government-pro- 
vided services such as tractor 
hire and veterinary services, 
increased cost recovery, and a 
new, much-diminished rode for 
the NCPB, to maintain and 
manage a strategic maize 
reserve of same 3m 90kg bags. 

The PFP programme is 
costed out at $2.4bn, of which 
3800m would come from exist 
tag grants and loans, leaving a 
$L6bn gap. The fact that new 
aid commitments over the 
1994-96 period are estimated at 
only $300m underscores the 
changed nnamriTig environ- 
ment that Kenya is now exper- 
iencing. No longer can aid be 
relied upon to dose the gap, 
and Kenya will need “excep- 
tional financing", Including the 
refinancing of arrears, totalling 
$1.3 bn over the next three 
years. 

The two-year politically- 
driven donor freeze on balance- 
of-payments aid, estimated at 
8700m, cost Kenya dear. Not 
only was it partly responsible 
for the 1992-94 slowdown in the 
economy, but because foreign 
interest payments were 
missed. Nairobi lost its posi- 
tion as one of the select few of 
African countries that has 
avoided debt restructuring. 

Although Kenya secured 
generous refinancing terms 
from the Paris Club of official 
creditors, its external debt bur- 
den remains uncomfortable, 
interest arrears will be repaid 
in seven instalments over eight 
years, with a one-year grace 
period. Five per cent of the 
arrears are payable in 1995, ris- 
ing to 25 per cent In 2001, and 
negotiations are to be held 
later with commercial credi- 
tors, with a view to obtaining 
similar terms for $l0Gm of 
arrears. 

In the three years to 1992. 
Kenya’s debt-service ratio aver- 
aged 82 per cent of exports; 
and, while it fell to around 25 
per cent last year, when inter- 
est was not being paid, and 
will remain in the mid-20s in 
1994-95, the respite will be 
shortlived. By 1996, debt-ser- 
vice will be absorbing 29 per 
rent of export and tourism 
earnings. 

Debt-service could be less of 
a burden If last year’s impres- 
sive balance of payments per- 
formance Is repeated. Strong 


export growth, sluggish 
Imports, as business ran down 
its inventories, the freeze on 
interest payments, and the 
return of flight capital as confi- 
dence recovered and residents 
took advantage of high yields 
in the treasury-bill market, 
gave rise to healthy surpluses 
on current, and especially capi- 
tal, account 

Provisional central bank esti- 
mates put the current account 
surplus at Ks7Jhn last year, 
compared with a deficit of 
Ks3.6bn in 1992. Healthy 
growth in tourism and service 
Income more than offset the 
wider trade gap. Capital 
inflows, conservatively put at 
over Ks20bn, pushed the over- 
all surplus to Ks27.5bn, with 
gross reserves up more than 
Ks45bn at KsSSbn or seven 
months’ Import cover. With aid 
flows down and almost certain 
to remain so, export growth 
and private capital investment 
from abroad are the keys to a 
healthy balance of payments. 


Once import demand starts 
to recover, as economic growth 
accelerates and investories are 
rebuilt, the shilling will come 
under selling pressure; and, an 
purchasing power parity and 
monetary considerations, the 
recent appreciation of the 
currency will reverse. Last 
year’s 15 per cent export 
growth is unlikely to be 
sustained for long, underlining 
the need for a new financing 
strategy, focusing on attracting 
the private capital necessary 
for steady growth, from 
abroad. 

Exchange rate stability will 
remain a mirage unto ” infla- 
tion is tackled. The single-digit 
target by end-1994 is unrealis- 
tic, but the rate could be 
brought below 20 per cent dur- 
ing 1994 if the necessary combi- 
nation of political will and 
improved public sector man- 
agement can be brought to 
bear. 

Tony Hawkins 



the symbol of 
reinsurance service and 
security worldwide 



KENYA REINSURANCE CORPORATION 

Reinsurance Plaza, 

P-O. Box 302771 
Tel: 332680 
Fax: 339161 
Cable: Kenyare 
Telex: 22406 kenyare ke 



i 




FINANCIAL TIMES TUESDAY MAY IQ 1994 III 

" KENYA 3 


The government regards democracy as bothersome, writes Leslie Crawford 


Aid donors find themselves in an uncomfortable role 







%J> W. 





Punch-ups in political arena 


The conditions get tougher 

October, on the eve of the 


One year into the new 
multi-party era, politics in 
Kenya is about punch-ups. 

In parliament at opposition 
conventions. Inside Nairobi 
city hall, the willingness of 
elected representatives to come 
to blows Is symptomatic of a 
broader malaise: the lack of 
political dialogue in Kenya. 

me government, from the 
president down, makes no 
secret of the fact it regards 
democracy as a bothersome 
foreign imposition with dan- 
gerous social repercussions. Its 
relations with the opposition 
are non-existent 

“Multi-party elections were 
forced upon us by the donor 
community.'’ says John Joseph 
Kamotho, education minister 
and secretary-general of the 
Kenya African National Union 
(Kanu) party. “Given the 
choice, we would have pro- 
ceeded more slowly.” 

Having ruled since indepen- 
dence, and won the December 


The ruling Kenya African 
National Union has had 
little cause to change 


1992 elections, Kanu has had 
little cause to change its ways. 
It l&s continued to jail critics, 
deny permits for opposition 
political rallies, ban indepen- 
dent trade on ions and Htifla the 
mprifa as in the days of one- 
party rule. Kanu makes no dis- 
tinction between the party and 
the state. It therefore regards 
all criticism as a treasonable 
offence. 

Twenty-one parliamentar- 
ians - almost a quarter of the 
opposition force - were jailed 
during 1993. The arrest and 
harassment of opposition lead- 
ers has intensified during 1994. 
The time spent in court fight- 
tag charges, not to mention 
time spent in jail, has been a 
si gnificant drain on the opposi- 
tion’s energy and resources. 

Journalists have been 
detained and charged with 
sedition or subversion for 
reporting on matters which the 
government considers inflam- 
matory. Books and Tnfl gaginftK 
are occasionally banned. At 
the state universities, lecturers 
havp been on strike for five 
m onths to demand the legalis- 
ation of their professional 


union. Mr Kamotho, the educa- 
tion minister, says the union 
will oat be recognised. 

“The elections legitimised a 
regime that does not believe in 
democracy," says Mr Paul 
Muite, an opposition member 
of parliament. 

And yet, the election results 
came as a rude shock to Kanu 
leaders. President Daniel arap 
Moi, standing for re-election, 
mustered only 36 per cent of 
the vote. Kanu also foiled to 
win a single parliamentary 
seat in Kikuyu or Luo land - 
home of two of the country's 
largest ethnic groups - under- 
mining Kami's f-l pT TP to be the 
only true national party in 
Kenya. 


arithmetic of 

majority ride because it would 

bring back Kikuyu political 

riomfriatinn- 

Happily for President Moi, 
the opposition is In disarray. 
Divided by personal rivalries 
in the run-up to the elections, 
the defeated opposition has 
continued to fragment on 
tribal fines. 

The Forum fat the Restora- 
tion of Democracy (Ford), 
which campaigned so effec- 
tively for the lHg»U«»Hnn of 
opposition parties, split into 
two camps after failing to 
agree on a single presidential 
candidate. The late Jaramogj 
Ogtaga Odinga, who died in 
January, took his Luo commu- 
nity into Foid-Kenya. Kenneth 
Matiba, a prominent Kikuyu 
leader, founded Ford-Asfli with 
Martin Shikoku, whose Luhya 
community forms the coun- 
try’s second largest ethnic 
group. 

NowMr Matiba is being chal- 


lenged by Mr SMkuku for the 
leadership of the Ford-Asili. 
The two men have exchanged 
ugly words in public. Their 
supporters have exchanged 
blows. 

Ford-Kenya was in disarray 
even before Mr Odinga 's death. 
Several parliamentarians have 
all but resigned from the party. 
A third opposition force, the 
Kikuyu-led Democratic Party, 
has foiled to make any impact 
in or outside parliament 
Having failed to dislodge 
President Moi from power, 
some opposition leaders have 
lost faith in a political game 
which they say is stacked 
against them. Mr Matiba, the 
runner-up in 
the presidential 
contest, has 
refused to take 
up his parlia- 
mentary seat in 
protest at an 
election which 
he believes was 
rigged. Mwai 
KObaki, the DP 
leader, appears 
to be absent in 
mind and 

spirit 

With so 
much political 
in-fi ghting , the 
opposition has 
foiled to make 
its mark on the 
two burning 
issues of post-election Kenya: 
the C o rrup tion c nanflalc Uniting 

“political banks” to senior 
members of the Kanu leader- 
ship, and ethnic conflict in the 
Rift Valley. 

A spirited anti-corruption 
campaign led by Mr Muite of 
Ford-Kenya fizzled into thin air 
when his leader, Mr Odinga, 
admitted to receiving dona- 
tions from the owner of one of 
the scandal-tainted banks. 

Tribal clashes between the 
president’s Kal enjin tribe and 
Kikuyu farmers have caused 
1,500 deaths and displaced 
more than 300,000 people since 
1991, according to church and 
human right groups. 

Although (he turmoil in the 
Rift Valley pales in comparison 
to the recent killings in 
Rwanda, church organisations 
say the clashes represent Ken- 
ya’s most serious crisis since 
independence. They are fright- 
ened by the underlying threat 


of chaos and social disintegra- 
tion in a country with more 
thm 40 ethnic groups and an 
acute shortage of farmland. 

Three independent reports, 
Including one written by a par- 
liamentary committee when 
Kenya was still a one-party 
state, pointed to government 
complicity or involvement in 
the violence. Government offi- 
cials and close associates of 
President Moi were named as 
the principal instigators of the 
Rift Valley dashes. 

The government denies any 
involvement in a conflict 
which recently began to take 
the form Of ethnic alaansang - 
the removal of all ethnic 
groups except the Kalenjin, 
Maa fw u, Torkana and Samburu 
from the Rift Valley. 

The clashes have brought 
church-state relations to an 
all-time low in Kenya. 

“We have buried the victims 
of tribal clashes. We under- 
stand the impact of financial 


The elections legitimised 
a regime that does not 
believe in democracy 1 


scandals on our dwindling 
incomes. We are with the poor 
every Sunday, not just for elec- 
tion rallies. How do you expect 
the church not to take a politi- 
cal stance?” says the Rev 
Mutava Musyimi, general sec- 
retary of the National Council 
of the Churches of Kenya. 

Church groups have also 
thrown their weight behind 
opposition calls for a national 
convention to redraft Kenya’s 
constitution. 

For while the advent of a 
multi-party system has 
brought the tribal factor into 
greater relief, Kenya's existing 
institutions, including an 
all-powerful presidency, have 
been unable to accommodate 
the aspirations of the country's 
disparate ethnic groups. 

“The culture of violence that 
is taking root has made real 
the alarming possibility of civil 
war in Kenya,” the human 
rights group Africa Watch 
warned late last year. 

Perhaps this very real dan- 
ger might make an intransi- 
gent government and a frac- 
tions opposition come to their 
senses. 


Six months after the 
restoration of fast-disbursing 
aid, Kenya's donors face an 
awkward dil emma 

Most are torn between the 
wish to continue supporting 
finance minister Musalia 
Mudavadi's economic reforms 
and growing alarm at Kenya’s 
deteriorating political environ- 
ment. A mid-year review of 
Kenya's overall progress is 
likely to be as difficult as a 
Solomonic judgment 

If the assessment leans too 
heavily on the government's 
political shortcomings, anti-re- 
formers could have fresh 
ammunition to im^towing 2ttr 
Mudavadi and his programme. 
Kenya's aid partners, however, 
have come to believe that the 
harassment and incarceration 
of opposition politicians, ethnic 
cleansing in the Rift Valley, 
and the government’s crack- 
down on the press are not ran- 
dom occurrences, but the 
actions of a regime which has 
not shed its authoritarian 
instincts despite the formal 
trappings of democracy. 

Since November 1991 - when 
donors suspended about one- 
quarter of Kenya's aid flows, in 
protest against official corrup- 
tion and human rights abuses 
- the policy linking aid levels 
to good government has trans- 
formed the donor community 
into the final arbiters of Ken- 
ya's political and economic 
progress. It is an uncomfort- 
able role. 

The government of Kenya 
dearly regards some aid condi- 
tions as an infringement of its 
sovereignty, while opposition 
parties think foreign aid «nw 
and should be used as a lever 
to extract more political 
reforms. 

It seemed no accident that 
President Daniel arap Moi 
legalised opposition parties 
only days after the suspension 
of balance-of-payments aid in 
November 1991. But having 
foiled to dislodge President Moi 
from power in the 1992 elec- 
tions. the opposition felt 
betrayed when donors restored 
balance -of- payments aid in 
November 1993. 

It was not, however, an 
unqualified victory for the 
Kanu government 
. Donors pledged $850m for 
1994 - significantly below aid 
levels prevalent before the 1991 I 


freeze - and the money is 
likely to be disbursed by drip- 
feed as the list of conditions 
gets longer. Donors expressed 
cautious support for Mr Muda- 
vadi’s reforms, but said they 
wanted to see a consistent 
record before considering more 
handouts. They also told offi- 
cials the government should 
prosecute corruption cases. 

“The government clearly 
expected a bigger trade-off 
from adopting a multi-party 
system and toeing the IMF and 
World Bank line,” says one 
ambassador in Nairobi. “The 
restoration of aid did little to 
ease the confrontational mind 
set between Kenya and its aid 
partners.” 

Some donors feel it is time to 
rethink the relationship. 
Japan, Kenya's largest bilat- 
eral donor, is destined to play a 
greater role in the shaping of 
aid policy. Tokyo's interna- 
tional aid charter shares the 
same goals as western donors 
- market-based economic 
reforms, the respect for democ- 
racy and human rights, good 
government - but its approach 
to reform appears to be infused 
with the millennial patience of 


The latest five-star hotel to 
open in Nairobi has been 
seized by the Kenya Central 
Bank In an attempt to recoup 
billions of shillings that went 
astray in the run-up to the 
December 1992 elections and 
their aftermath. 

Kenyans are only beginning 
to count tike cost of the finan- 
cial profligacy which linked 
senior Kanu politicians, Asian 
businessmen, a group of local 
banks ami the former top man- 
agement at the central hank. 

One confidential report into 
the complex series of financial 
transactions estimates the cost 
to the public purse was 
KsSObn 0430m). or about 10 
per cent .of gross domestic 
product 

The central bank began to 
lose its grip on monetary pol- 
icy when banking licences 
were liberally awarded in 1992 
as a vehicle for financing the 
re-election campaigns of rul- 
ing politicians. The “political 


the east 

“We understand the process 
of co-ordinating political and 
economic reforms can be diffi- 
cult and complicated,' 1 says 
Masahiko Horie. first secretary 
at the Japanese embassy in 
Nairobi. “There are no abso- 



Baroness Chatter: “we want 
action against corruption" 


lute yardsticks. We must look 
at the whole process and sup- 
port positive trends." 

Japan was the first country 
to resume fast-disbursing bal- 
ance-o f-paymen ts aid to Kenya 
last year. It released $77m in 


banks” engaged in dubious 
money-spinning ventures, 
relating to the construction of 
glamorous buildings in Nai- 
robi and claiming generous 
government rebates for 
alleged exports of gold and 
diamonds. 

Emboldened by their early 
success, some of these hanks 
tben obtained more than 
KslTbn from the central bank 
in exchange for a promise to 
repay the unsecured loan in 
dollars at a later date. The 
loan was never repaid. In addi- 
tion. the central hank is inves- 
tigating the theft of $li7m of 
foreign exchange bearer bonds 
from its vaults and the, possi- 
ble forgery of other ctififral 
bank certificates. 

Mieah Cheserem, appointed 
centra] bank governor last 
July, is trying to clear np the 
mess and recover as much 
public money as possible. 

Three commercial banks are 
under liquidation. 


donor consultative group meet- 
ing in Paris. The unilateral 
action, which melted the 
donors' two-year aid freeze, 
sent a strong signal of support 
to the Kenyan government and 
effectively set the tone for the 
Paris discussions. Mr Horie 
says Japan acted with the 
knowledge and approval of fel- 
low donors. 

It has not, however, been 
plain sailin g for the Kenyan 
government since then. In Feb- 
ruary, Britain's Overseas 
Development Agency cancelled 
a £ 12 m grant for forestry con- 
servation after failing to 
receive assurances from the 
Kenyan government that it 
would end the illegal allocation 
of protected forest areas to 
members of the ruling party 
and their acolytes. 

“What we are looking for.” 
says Baroness Lynda Chalker. 
Britain's overseas development 
minister, “is effective action to 
improve open and accountable 
government, including dealing 
with corruption, reducing 
tribal tensions, strengthening 
law and order... and enhanc- 
ing press freedom. These 
remain the benchmarks which 
we shall be employing when 
we come to review progress." 

Britain is not alone in cut- 
ting back aid. Denmark, aid 
partners since Kenya's inde- 
pendence, and the US, have 
curtailed projects citing 
increasing co-operation prob- 
lems with Kenyan authorities. 
Even the World Bank will only 
present one new .yam project 
to its board this year. 

Norway, which renewed dip- 
lomatic ties in February after a 
three-year break, has no plans 
to resume financial assistance 
“We have told Kenya that 
when we need to speak out, we 
will do so forcefully,'' says 
Annan Aardal. the Norwegian 
ambassador. 

Kenya broke off relations 
with Norway in 1990 over 
Oslo's criticism of the deten- 
tion and trial of-Kolgi wa 
Warn were, a prominent dissi- 
dent. Soon after the reopening 
of the Norwegian embassy in 
Nairobi, Mr Warn were was 
again being dragged before the 
courts. The irony has escaped 
few Kenyans. 

Leslie Crawford 


The election 
results crystal- 
lised what a 
one-party state 
could conceal: 
that President 
Moi, a member 
of the Kalenjin 
clan, leads a 
government of 
minority tribes 
which has 
deliberately 
marginalised 
the larger eth- 
nic groups. 
President Mai's 
coalition, in 
power since 
1978, fears the 



Prewtont Mot leads a 
gow nmo nt of minority tifl»s 


Financial profligacy 



THE DOLPHIN GROUP 
"Committed to developing business in Kenya" 


IMTHNATOMAL 





NABOBWAOMBASA«DIAN1 BEACH 


Tourist Paradise Investment Limited 
P.O. Box 45827, 

Nairobi, Kenya 
Fax: (254-2) 742620 






BANK LIMITED 


The Delphis Bank Limited, 
fcoinange Street, 

P.O. Box 44080 
Nairobi, Kenya 
Fax: (254-2)210661 




block 

hotels 



Block Hotels Limited 
P.O. Box 40075 
Nairobi, Kenya 
Fax: (254-2) 543810 


MIWANI 



SUGAR 


Miwani Sugar Company (1989) Limited 
20th Floor, View Park Towers, 

P.O.Box 41963, Nairobi, Kenya 
Fax: (254-2) 210691 


delphis Marshalls 


PEUGEOT- HONDA - VOLVO - TATA 

Marshalls (EA) Limited 
Marshalls House, Harambee Avenue, 
P.O. Box 30366, 

Nairobi, Kenya 
Fax: (245-2) 219146 


GuSD 

Destination Management in Africa 


United Touring Company Limited 
Fedha Towers 

Muindi Mbingu/Kaunda Street 
P.O. Box 421 96, Nairobi, Kenya 
Fax: (254-2) 331422 


The Dolphin Group, 8th Floor, Arbift Tower, P.O. Box 60851. Dubai, UAE. 
Tel: (9 71-4) 280222 Fax: (971-4) 280223 


Many banks are 
returning to their roots 



Thank goodness there’s one bank 
with its roots in the world. 


CREATING THE STANDARD IN BANKING 



ABN’AMRO Bank 


Nairobi Head Office 
Nyerere Road 
P.O. Box 30262 
NAIROBI 

Tel: (254-2) 710455/6 

710514/5,710623/4 
710714/6,710714/5 
Fax: (254-2) 713391 


Mombasa branch 
Nkrumah Road 
P.O. Box 90230 
MOMBASA 

Tel: (254-11) 311489/62 
215590 
228554 
Fax:(25411) 315005 




FfNANCIAL TIMES TUESDAY MAY 10 1994 


rv 


KENYA 4 


How is the private sector adjusting to the government’s economic reforms? FT writers provide four illustrations 


but Barclays shines 



Bob Bird (right) wWi treasurer Martin OduorOtteno inaxwWwn* 


Tough, 

Along with exporters, the 
financial sector has been the 
main beneficiary of liberalisa- 
tion - a development under- 
lined in the sparkling 1993 
results reported by Barclays 
Bank of Kenya. Pre-tax profits 
more than doubled in the year 
to December 31 with earnings 
per share up 88 per cent 

Three main factors account 
for this impressive perfor- 
mance at a tiVne of stagflation 
in the economy. Income was 
boosted by high lending rates 
- a net interest margin 
between overdraft and deposit 
rates, averaging 7.4 per cent 
(according to official Central 
Rank of Kenya figures), while 
lending was up 28 per cent 
over the year. 

More important was the 
return on money market 
operations - windfall gains 
from holding a substantial 
portfolio of high-yield treasury 
bills. Retail banks with a large 
customer base, were able to 
source funds Grom current and 
savings deposits at average 
rates of L&5 per cent and 14.75 
per cent, reinvesting them in 
treasury bills at an average 


rate of 87 per cent between 
April and December. This did 
not apply to banks forced to 
source funds from the inter- 
bank market, where rates were 
higher than on treasury bills. 

The third factor was the sub- 
stantial increase in the volume 
of foreign exchange business, 
arising from the liberalisation 
of exchange controls, the 
requirement for tourist opera- 
tors to make payments in for- 
eign currency and the scope to 
exploit profit opportunities in 
highly volatile market condi- 
tions. Barclays targeted firms 
with foreign currency reve- 
nues. There were windfall prof- 
its to be made, says Barclays 
Kenya managing director Bob 
Bird, “provided you got it right 
and didn't take undue risks". 

Even so, 1993 was a tough 
year. Most of the participants 
in the country’s 26 banks had 
never operated with market- 
driven exchange and interest 
rates. Barclays got Its tuning 
right, bringing In a foreign 
exchange dealer from London 
in November 1992 to prepare 
for liberalisation. 

Business volumes - and 


costs - expanded dramatically 
as the Central Bank delegated 
the Issue of import licences to 
the banks. At the saim* Hmn 
bank systems were simply not 
geared to cope with foreign 
exchange accounting forced on 
them by the introduction - and 
subsequent expansion - of 
retentions accounts. “We antic- 
ipated liberalisation," says Mr 
Bird, “but with the rapid 
growth m volumes and inwind 
inflows of foreign exchange, we 
ran up against infrastructural 
problems. We had to train 
managers and staff to be more 
market responsive, while alert- 
ing them to the pitfalls of for- 
eign currency exposure.” 

The nature of bank 
changed, too. The pre-reform 
period was one of 
hand-to-mouth reliance on 
scarce letters of credit (LCs), 
but as Kenya's short-term 
credit rating improved and 
reserves rose to reach four 
months import cover while 
customer demand fell, it 
became for easier to open LCs. 

At the same time, the «ama 
of the business game had 
changed. In a controlled sys- 


tem inventory management by 
importers and manufacturers 
was based on "just-in-case” 
principles. With long supply 
lead times, due to the cumber- 
some impart licensing process 
and foreign exchange scarcity, 
management was forced to 
cany huge inventories. With 
liberalisation, lead times short- 
ened dramatically and, faced 

with high borrowing rates and 
Galling domestic demand, busi- 
ness has run down its stocks 
and its bank borrowing. 

One might have expected the 
roller-coaster business condi- 
tions of the past year to result 
in a fair number of corporate 
failures, but that has not hap- 
pened. Mr Bird says there have 
been “remarkably few” corpo- 
rate failures and some surpris- 
ingly good results, given the 
difficult business climate. 
"Nobody from the top 200 
seems to be suffering too 
much, perhaps because a lot of 
them have switched heavily 
into exporting.” 

Barclays’ 1993 performance 
will be a hard act to follow. 
Money market margins are Ear 
slimmer today, and more tradi- 



Mcati Gheserem reorganised top 
management at me central bank 


tional overdraft lending is a 
better bet, with the spread 
between retail deposit and 
lending rates up to 16 per cent 
in February, according to Cen- 
tral Bank figures. But demand 
is relatively weak, and there Is 
the danger of befog caught by 
the reversal in the forex mar- 
ket if - later in the year - the 
shilling overshoots again, as it 
did last year, and starts to 
depreciate. 

Bankers say that one of the 
most important changes of the 
past year has been the rehabili- 


tation of the Central Bank of 
Kenya (CBK). Until the 
appointment of Mlcah Ches- 
erem, an accountant formerly 
employed by Unilever, as gov- 
ernor, the central bank, and 
with It monetary policy and 
hank supervision, was In disar- 
ray. There was little communi- 
cation between the banks and 
the CBK, bank supervision was 
virtually non-existent and the 
economy was rocked by a 
series of financial scams, esti- 
mated to have cost the country 
- and the government - teas 


of millio ns of dollars. 

Mr Chesercm changed oil 
that, revamping CBK’s top 
management, stamping out 
corruption, strengthening 
supervision and tightening 
monetary policy, first by 
mopping up liquidity through 
the issue of treasury bills and 
subsequently by raising the 
statutory cash ratio of the 
hanks from 8 per cent to 20 per 
cent of their deposits, thereby 
squeezing their lending capac- 
ity. 

Money supply growth of 26 


per cent during 1993 is still too 
high. Although lending to fi* 
public sector declined U per 
cent last year and private sec- 
tor borrowing was fiat, money 
supply grew strongly, Wed 
by the inflow of foreign 
exchange as exports increased 
and capital Right was reversed 
by the combination of forolgQ 
payments liberalisation and 
high nominal domestic interest 
rates. Kenya’s net foreign asset 
position swung from a negative 
glQQvn in April bo a plus num- 
ber of more than $330m by the 
year-end. 

Despite these gains, the 
imbalance between a loose fis- 
cal and a restrictive monetary 
stance means that the banks 
will remain in the frontline of 
the battle against inflation 
over the next year. Getting rid 
of the T-bill mountain, main- 
taining positive real interest 
rates - they are substantially 
negative at present - and man- 
aging foreign currency posi- 
tions In a year in which tbs 
exchange rate overshoot can be 
expected to reverse itself sug- 
gests that 1994 will be another 1 
busy, though almost certainly, 
less spectacular year for the 
banks. 

Tony Hawkins 


Brooke Bond’s lasting brew 



Brooke Bond tea plantations date back to Hie 1820s urOBW sw™ 

-1- 


Bamburi’s profits reinforced 


The changes in the Kenyan 
economy during the past two 
years have been good news for 
Brooke Bond Kenya, the Uni- 
lever subsidiary which pro- 
duces tea, coffee and flowers 
within the country. 

“The new financial regime 
within the government has 
done a superb job,” says Alan 
Wood, managing director. “I 
can’t think of anything more 
you could really ask for.” 

While political systems have 
come and gone - col onialism 
giving way to independence, 
Africa nisation, single-party 
and now multi-party rule - the 
plantations now controlled by 
Brooke Bond in Kenya have 
remained, Hating back as for as 
the 1920s. 

The company has three tea 
estates - the largest at Kericho 
covering 7,000 hectares - and 
altogether accounts for about 
14 per cent of Kenyan tea pro- 
duction. It has a smaller opera- 
tion - of about 500 hectares - 
under coffee cultivation. 

In addition, in the late 1970s 
it expanded into horticulture 
with the acquisition of Sulmac, 
which produces carnations, 
roses and other flowers at Lake 
Naivasba for export primarily 
to Western Europe. “The Euro- 
pean market has been able to 
absorb almost anything you 
send," says Mr Wood. 

One of the biggest challenges 
facing the company in Kenya 
in the past has been Inflation, 
which has been running at 
above 35 per cent a year. Until 
recently, the company has also 
bad to cope with the effects of 
devaluation of the Kenyan shil- 
ling. “Devaluation became a 
significant management chal- 
lenge," says Mr Wood. 

The effects were magnified 
because - like other exporters 
- the company had restrictions 


untif recently on the amount of 
foreign currency It could 
retain. “Tour costs are instant 
but there is a delay of some 
time between production and 
sate - we bave a 33-day target 
- during which you can incur 
an exchange gain or loss” he 
says. 

In response to inflation and 
currency problems, Brooke 
Bond and other businesses car- 
ried stock at what he calls 
“fairly high levels” with work- 
ing capital “more than strictly 
appropriate". 

The position has now eased, 
with companies allowed to 
retain their foreign earnings, a 
shift in the coffee auction 
prices from shillings to dollars, 
an apparent stabilisation in 
prices, and recently even a 
revaluation of the shilling 
against other currencies. 

As a result, the company had 
to develop treasury and cash 
management skills not previ- 
ously required. “We are deal- 
ing with a changing environ- 
ment where we used to bave a 
stable environment over the 
years," says Mr Wood. “We pay 


more attention now to where 
the cash is and how to use it to 
best advantage.” 

Other important changes 
brought by liberalisation that 
he highlights as si gnificant are 
the relaxation on distributing 
dividends, the introduction of 
market exchange rates, the 
removing of import licences, 
and the abolition of price con- 
trols on commodities. 

He says that Brooke Bond 
does not plan additional invest- 
ment in Kenya purely because 
of liberalisation, hut stresses 
that in no way reflects the 
company's lack of commitment 
to the country. “We have been 
here for 60 years, investing 
steadily throughout. We have 
confidence in the tea industry. 
Liberalisation has reaffirmed 
our commitment." 

He says the company’s main 
restriction has been acquiring 
new land for expansion. Conse- 
quently, its efforts have been 
focused on boosting yields and 
productivity through breeding 
programmes. 

Andrew Jack 


A mid the near-continuous 
and deafening noise of 
the kflns and grinders, 
there is suddenly an unusual 
silence at the Bambini cement 
plant A power cut has halted 
the heavy machinery. 

Periodic failures in the sup- 
ply are a costly, frustrating 
and frequent problem for the 
factory, which consumes the 
largest single share - up to 5 
per cent - of Kenya’s electric- 
ity generation capacity. 

However, Robert Brenne- 
isen, managing director of 
Bambori Portland Cement, 
who joined the company at its 
creation in 1954, \& more opti- 
mistic thaw he was during the 
previous decade. He welcomes 
a series of radical economic 
reforms that have improved its 
ability to make a profit hi the 
past three years. 

The company was formed as 


D ave Williamson gives 
short shrift to the 
“briefcase merchants" 
of the International Monetary 
Fund, and other advocates of 
Kenya’s recent switch towards 
the economic liberalisation 
which he believes has helped 
to undermine his company. 

“They are quite happy to 
travel here first class and sit in 
a five-star hotel In Nairobi 
where they can get good meals 
and draught beer without ever 
seeing the country," he says. 
“They're totally divorced from 
what Kenya actually needs.” 

It is a criticism he also levels 
at some Kenyan politicians, 
who he feels have often been 
reluctant to come and see the 
effects of their policies and 
practices on the operations of 
Associated Vehicle Assemblers 
(AVA), a part government- 
owned and entirely Kenyan- 
based vehicle assembly plant 
Mr Williamson is works 
director of AVA, based in 
Mombasa, which assembles up 


a joint venture of Cementia 
Holding of Switzerland and 
Amalgamated Roadstone of 
the UK, which was replaced to 
1964 by Bine Circle. The gov- 
ernment holds 16 per cent of 
the equity through the 
National Social Security Fund, 
and a farther 10 pa 1 cent is 
quoted on file Nairobi stock 
exchange. It now produces 
1.2m tonnes a year, modi of 
which is sold locally, and the 
rest exported to countries 
including Mauritius, Reunion, 
Sri Tanka and the Seychelles. 

“We were suffering for 
many years from price con- 
trol,” says Mr Brenneisen. He 
points to a six-inch-thick pile 
of documents on the shelf 
behind his desk. "All these are 


to 40 different types of car and 
truck on contract. The com- 
pany was founded in 1977 with 
shareholdings from the state- 
controlled Industrial Develop- 
ment Bank, the treasury, Lon- 
rho and Inchcape (which later 
sold its stake to Marshalls). 

Production volume peaked in 
1987 with just over 9,000 units 
assembled. Last year it had 
slumped to fewer than 1,500, 
with staff numbers cut from a 
high of nearly TOO in 1979 to 
152. “If we go any lower, we’re 
in serious trouble,” he says. 

Yet AVA says it is still mak- 
ing a profit It has done so pri- 
marily by cutting staff and 
maintaining a pay freeze for 
three years. In the past few 
mo nths the plant has aiqq been 
closed for weeks at a time to 
save costs. 

However, the company’s 
combined bill of corporation. 


submissions to the govern- 
ment to raise prices or remove 
price controL” 

Price control was introduced 
In 1972, and for several years 
the cap increased in line with 
rising costs. But by the early 
1980s, the rises came too late 
and too smalL “We were sub- 
sidising the building industry 
far years but it nearly crippled 
the company.” says Mr Bren- 
neisen. “We only jost sur- 
vived. It was only possible 
because we had very tolerant 
shareholders.” 

The controls were finally 
lifted three years ago, and he 
says the company has since 
been investing In capital 
expenditure and paying off its 
debts to make good the losses 


pay-as-you-eam, local author- 
ity taxes, duty and VAT has in 
many years equalled or 
exceeded the recorded level of 
pretax profits. 

What Mr Williamson most 
objects to is the foot that, while 
AVA produces locally with 
Kenyan staff and Kenyan 
investors cars tailored for the 
local market, what he calls 
“the disaster" of liberalisation 
seems primarily to have bene- 
fited car Importers. 

Hie resents the “privateers” 
in the informal sector who, be 
believes, avoid paying any 
duties or taxes on cars. Some 
claim imported cars are for 
personal use, and others that 
the vehicles are secondhand, 
making them subject to lower 
duties. “There are an awful lot 
of new-looking Mercedes driv- 
ing around with old number 
plates on," he says. 


of the 1980s. 

In comparison, Bamburi’s 
other difficulties are more 
trivial. Like many others, the 
company has benefited from 
the removal of restrictions on 
holding foreign currency. 
Since it construe ted its own 
port facility and has staff 
working full-time on customs 
clearance, it has had less trou- 
ble than many in handling 
imparts and exports. However, 
Mr Brenneisen still raises con- 
cerns over delays until 
recently in granting import 
licences and duties. 

“As a business we are impa- 
tient with the parastatab," he 
says. “We like to see things 
done yesterday. They take 
their business with a for too 


“On the day in the budget 
last year when they changed 
the duty structure to allow the 
importation- of commercial 
vehicles, the ro-ro ships started 
arriving," he says. “There was 
a dramatic change. The cake 
was suddenly divided into a 
million pieces rather than a 
thousand.” 

Equally, he says that very 
few Kenyans have sufficient 
income to buy cars, while 
those that can tend to favour 
anything built overseas to 
local manufactures. Attempts 
to export to African countries 
have proved equally frustra- 
ting with reluctance by its 
neighbours to buy from a 
direct rivaL 

AVA encompasses a number 
of low-technology approaches. 
It has refused to switch from 
packing crates to container 
boxes for parts arriving by sea, 


casual stride. They cant use 
excuses all the time.” 

The company has struggled 
to obtain sufficient rolling 
stock for internal transport of 
its cement from Kenya Rail- 
ways, and has bad to ship 
some cement at greater cost by 
road. It has also suffered from 
a lack of fresh water as a 
result of drought. 

Given an abundant supply of 
low-cost, motivated labour, the 
company has not seen the need 
to invest heavily In automated 
processes. It employs about 
870 staff, although a similar 
capacity plant In Europe could 
do the same job with, about 
150. Mr Brenneisen says: “The 
factory compares very well In 
performance with any In the 
world. We feel it Is not mor- 
ally justified to automate." 


for example. He says crates are 
more flexible, cheaper to 
freight, and can be simply 
stored outside at the foctory. 

To meet the demands of the 
car manufacturers, AVA has 
computerised storage of the 
40,000 components which 
arrive each day. “The only 
other thing computerised is 
payroll - and I still think we 
could do that as easily by 
hand,’* he says. 

Periodic electricity shortages 
during the afternoon means 
that the company has now 
shifted all working hours into 
the morning and lunchtime to 
avoid power cuts. 

While it takes five times as 
many staff-hours to assemble a 
car in Kenya than a western 
assembler, Mr Wil liams on is 
sceptical of the value of auto- 
mation - particularly when ha 
says he can obtain and train 
high quality staff to do the 
work unhurriedly. 

Andrew Jack 


Andrew Jack 


A spanner in AVA’s works 



IPC SB 


Investment Promotion Centre 


At 


IPC 

We make the right 
connections between 
investors and opportunities. 


IPC has all the facts at its fingertips manufacturing and mining, building 
when it comes to provid ing advice on and construction, tourism and trade, 
investment opportunities available to transport and communication, 
both foreign and local investors. among others. 


IPC has detailed up-to-the minute 
information on issues like Export 
Processing Zone (EPZ), Manufactur- 
ing Under Bond (MUB) and other 
potential investment sectors which 
include : agriculture and agro-busi- 


ness. 


IPC unveils the very generous 
investment incentives that Kenya 
offers such as guarantee against 
nationalization, repatriation of 
profits, investment and capital allow- 
ance, joint ventures, export compen- 
sation, duty exemption etc. etc 


For further enquiries contact: 

Executive Chairman, 

Investment Promotion Centre, 

National Bank of Kenya Building, 8th Floor, 
H.irambee Avenue, 

P.O. Box 55704, Tel: (254-2) 221401-4 
Telex: 25460 Biashara; Fax (2254-2) 336663 
Nairobi, KENYA. 


PROMOTING INVESTMENT IN KENYA 


4 / 

{1111 

11111 Cl 

I I T I I 



The Grand Regency Hotel, with Us unique 
spectacular central atrium. Is perfectly 
situated on a prime site overlooking 
Central Pak. and offers the 
ultimate in modem facilities, luxury and 
comfort. 

301 rooms, all with a berth/shower, bidet, satellite TV, 
video and telephone. 

34 exclusive suites, from Executive, through Deluxe and 

Presidential. 

A choice of four restaurants and three terraces offering 
a variety of suberb cuisine, as well as severed cocktail 
lounges and the Arcade Cafe. 

Nairobi's largest ba Broom /conference room equipped 
wtm the very latest audio video facilities - plus several 
meeting and pre-function rooms. 

Reuters-serviced business centre offering fuH secretarial, 
computer and translation foe# ties. 

Fitness centre with sauna steam, massage, Jacuzzi and 
great equipment for getting Into shape. 

Covered and heated aS-weattier swimming pool with 
snackbar. 

International casino and gaming room. 

Exclusive shopping arcade. 

Outdoor and underground parking tor 200 cars. 

Member of GRAND HOTELS MANAGEMENT GROUP 
GRAND REGENCY HOTEL* UHURU HIGHWAY 
P.O. BOX 57S49» NAIfJOSI • KENYA 
TEL' (254-2) 211199-FAX: (254-2) 217120 


s 




YOUR FINANCIAL LINK 
TO KENYA 

Kenya, is opening up to investments from international corpo- 
rations - and with the introduction of the recent investment incentives 
and the prevailing enabling environment, a new era of investments has 
dawned in Kenya. 

Whether you trade, do business or invest in Kenya, it pays to 
work with one of the country’s most progressive and dynamic banka - 
Trust Bank. 

A bank which is ideally placed to assist you with all your banking 
needs. A bank that offers a more informed, more flexible and more 
innovative approach to banking services which arc vital to make any 
investment a sound venture. 



TRUST BANK 

YOUR LINK TO SUCCESS 

HEAD OFFICE; TRUSTFORTE BUILDING - MOl AVENUE 
t . f Bo * 46342 - Nairobi • Kenya 
Tel: 226413/ 4/5. 216264 / 5/ 6 / 7 - Fax 334095 

Telex; 25143 TRUS8K 







I ■ ''I 

"••I,. 

.■.'.‘i'V 
•» •• 

••••« 

■ • 

' ' ' '..7 ►- 


■ — "v- 

1 1> 


\\ 

'* •iv*.' 

. >C. 

' ' • 

tlU-fc 

'■ "i:i ... 


' il.i 
l . 
•'il't • j' 


Ton V Ha# 


X ! hri «ai 

‘ilk-.* 
ha ^ 

irjjp 

h, T , 

' " hal 
>11 ■ 

. ■ 

- K " MjVjv, 
' : “h t.,-,' 


!i; 


*1, 


" '"“h-iiijj: 

J!i ^1 14 , 
* •:■*! mv b [».. 

5 «: ittz- 

C 

' :i ! u-cjr 
• • m;- . 
vr 

''it. 

• f .» ; 

’ :• S’; 

' 1 -Vrjr 




, . ( f / 

LtN^ 


JK 


Parastatal reform in Kenya is a 
many-beaded hydra. It has three 
dimensions; the technical and fmanniai 
the political and the manag e r ial Tforh & 
horrendoosiy challenging. 

Reform of public enterprise cannot be 
achieved without head-on confrontation 
with the political mafia, for whom the 
parastatals remain one of a 
number of sources of patronage. 

Nor can the problem be tackled without 
g ettin g to grips with the parastatal sec- 
tor^ endemic financial weakness and 
heayy indebtedness. Above all, reform 
reqpres far- reac h in g change in terms of 
corporate culture — finding a new breed erf 
suitably-qualified, experienced and appro- 
priately-rewarded public enterprise man- 
agers. Men and women must be appointed 
for their professionalism, and not 
they represent a particular ethnic group or 
powerful family. 

These are tall orders, and it is hardly 
surprising that parastatal reform is at the 
eye of the storm, given the impossibility of 


sustaining s t r u c tura l adjustment without 
root-and-branch parastatal restructuring. 

Kenyan officials agree that little prog- 
ress has been made in restructuring the 33 
“strategic" public enterprises - railways, 
ports, electricity, water, posts and telecom- 
munications - but the tumround at Kenya 
Airways and the remarkable transforma- 
tion of the Central Bank of Kenya, under- 
score the major contribution to reform 
achieved by personnel change at the top. 

Officials insist, however, that reform is 
ahead of schedule in liquidating and pri- 
vatising the 207 “commercially oriented 
public enterprises with direct or indirpH: 
public ownership'*. 

Three years ago, the government pub- 
lished a two-dimension rfasgfficatimi of its 

240 public enterprises: 


Privatisation is ahead of schedule 


Confrontation looms 



Strategic 

Non- strategic 

Viable 

Retan 

Sell 

Non- 

Restructure 

Liquidate 

viable 


and retain 


By April 1904, 31 companies had been 
liquidated, including 27 that were either 
dormant or insolvent. A farther seven 
had been sold by the receivers, five by 
competitive bidding and 15 sold under 

pre-emption rights, 

allowing other 
shareholders to 
increase their 
equity stakes. 

Heightening the 

public perception that the sell-off is 
going slowly, only five have been pri- 
vatised through the Nairobi Stock 
Exchange: Bambini Portland Cement 
(In 1991); partial sales of the govern- 
ment's controlling equity stake in the 


Uttie progress has been made 
in restructuring the 33 “strategic” 
public enterprises 


Housing Finance Company and Uchumi 
Supermarket (In 1992); and CMC Hold- 
ings and East African Oxygen last year. 

In total, 63 companies - about 30 per 
cent of the government’s □ on-strategic 

portfolio - have 

been divested, in 
four cases, par- 
tially. Another 33. 
pushing the num- 
ber to Just under 
half the total, are being processed, with 
15 having reached the point of sale. 
These include some of the better-known 
businesses in which the state has a 
stake that are being sold under pre-emp- 
tion rights agreements: Caraaud Metal 


Box, Chloride Exide (1JK), Everready 
Batteries, Associated Battery Manufac- 
turers and Firestone East Africa. 

By the end of this year, the govern- 
ment says, it w31 have sold another 25 
parastatals, including Kenya Airways, 
at least two sugar factories, all cotton 
board ginneries and the freight-han- 
dling services at Nairobi and Mombasa 
airports. Over half the remaining non- 
strategics will be sold in two roughly 
equal tranches in 1995 and 1996. 

The policy framework paper, agreed 
with the IMF last year, commits Kenya 
to “significant and irreversible public 
sector reform" - an armslength, trans- 
parent owner-management relationship 
between the government and the man- 
agement of strategic parastatals. 

The government has promised to elim- 
inate indirect subsidies to parastatals 
(which averaged 5.5 per cent of GDP 
during the 1989-1992 period) by 1997. 
Public utilities will be given tariff 
autonomy, subject to appropriate regu- 


latory controls for monopolies and indi- 
vidual performance contracts must be n 
place by mid-1995. 

A corporate plan has been approved 
for Kenya Railways, including the sale 
of peripheral activities, limiting freight 
services to 23 main-line stations, and 
staff retrenchment. The posts and tele- 
communication functions of the Kenya 
Posts and Telecommunications Corpora- 
tion are being separated, and a perfor- 
mance contract is due by mid-year. 

Given Kenya’s record, the temptation 
to write this programme off as hope- 
lessly ambitious would be overwhelm- 
ing, but Tor the success achieved - in 
remarkably little time - at Kenya Air- 
ways. But whether the politicians and 
other vested interests are willing to 
allow other parastatals to follow Kenya 
Airways through rehabilitation and 
eventual privatisation is problematic, to 
say the least. 

Tony Hawkins 


Kenya Airways may be privatised within the next year 

Consultants initiate recovery 


Eighteen months ago, 
privatisation of Kenya Airways 
would have been dismissed as 
sheer fantasy, bat with the air- 
line^ turning in a profit in the 
yea£ to March 1994, a sell-off 
year or next is on the 


The remarkable t u mround 
at Kenya Airways is reassuring 
evidence that parastatal 
reform is not as elusive as 
most African experience might 
suggest 

In 1991. the government 
appointed a new board, 
charged with commercialising 

thfi airliwn that had ntvrmin- 

lated losses to March 1993 of 
some Ks6.2bn (SliDm). Two 
years ago. the board appointed 
Speedwing Consultants, the 
inda pandant consultancy aim 
of British Airways, to advise 

hOW the airHna shnaild be COm- 

mercialised and prepared for 
privatisation. 

Speedwing produced a hard- - 
hitting report which recom- 
mended that the airime be run 
on strictly commercial lines. 
T his would mean eliminating 
political interference, sweeping 
mai&gement changes, a major 
overhaul of the commercial 
division with a new focus on 
customer service, and tight 
financial controls. 

The report was accepted, and 
three highly experienced air- 
line executives, who had 
worked for small, low-cost air- 
lines in the UK, were 


appointed on three-year con- 
tracts as chief executive, and 
to head the commercial and 
finance divisions. 

The new management team 
haa stuck closely to the consul- 
tants’ report. In classic turn- 
round mould, top imnwgpninwt 
was restr u ct ur ed, with political 
appointees being replaced by 
professionals. Eleven managers 
were retrenched and about 9 
per cent of the workforce 


rency costs were pared to the 
point where, today, the air- 
line’s foreign currency earn- 
ings exceed forex costs. 

Mgnagwmpnt. found it could 
provide 110 per cent of previ- 
ous volumes with 60 per cent 
of aircraft capacity. This was 
achieved by a combination of 
volume growth and increased 
market share - not higher 
fores in international marVete 
In the flmnpgt i r market, deval- 



Rytng htfe alter making a profB, Kenya Airways is set lor privato a flon 


allowed, or encouraged, to take 
early retirement Conscious of 
the need to develop a custom- 
er-first culture, in the course a f 
a month the entire workforce 
erf some 2 700 people was put 
through a day-long course, 
“Putting People First”. 

The new team targeted for- 
eign exchange costs, conclud- 
ing that it conld provide 90 per 
cent of the required services 
with just 60 per cent of the 
existing aircraft capacity. 
Accordingly, one leased air- 
craft was returned to the les- 
sors at a saving of some $18m 
over five years. Other hard-cur- 


uation and rapid inflation 
forced the airline to double 
fares over the past year; 
domestic services are now 
breaking even, while foreign 
routes are profitable. In the 
year to March 1994, Kenya Air- 
ways exceeded its break-even 
target, earning a surplus of 
Ks450m. “We were able to send 
the minister of finance a 
cheque for Ks280m, becoming 
the first parastatal to give 
money back to the govern- 
ment,” says chief executive 
Brian Davies proudly. 

Profitability is not every- 
thing Kenya Airways is also 


giving customers a for better 
service. Management set a tar- 
get of 80 per cent of departures 
leaving within 15 minutes of 
schedule, achieving an average 
of 75 per cent in 19834, com- 
pared with less than half previ- 
ously. “Indeed," says Mr 
Davies, “some weren’t depart- 
ing at all!” A recent travel sur- 
vey named the airhne as iun- 
ner-up (with BA) to South 
African Airways as the best 
carrier to Africa. 

With the airline in the black, 
the next step is privatisation. 
Mr Davies says this could be 
done by the end of 1994, in fine 
with the programme agreed 
with the IMF and the World 
Rank. For to happen, the 
government will need to clear 
op the halanra sheet by writ- 
ing off over Ks4-5bn of debt 
While no firm plans have 
been settled yet, the likelihood 
is that the government will 
bold on to a significant minor- 
ity stake, drawing a major 
European airline into a coali- 
tion. also with a sizeable 
minority holding 
The rest erf the equity could 
be placed among Kenyan insti- 
tutions; the airline staff, 
through an employee share 
ownership scheme; and a share 
issue on the Nairobi Stock 
Exchange. That would ensure 
that well over half the equity 
was bald in Kenya. 

Tony Hawkins 


Industry has been forced to look to export markets for growth 

Living with low consumption 


Manufacturing industry, emerging from 
three difficult years of sluggish growth 
and psfalaHng inflation, is restructuring 
to face the challenge of increased foreign 
and domestic competition. 

Kenyan industry has traditionally 
played second fiddle to agriculture in 
terms of employment and contribution to 
GDP, and been in third place tour- 

ism in foreign exchange earnings. 

Manufacturing accounts for more than 
13 per cent of GDP - about half that of 
agriculture - and 13 per cent of wage 
employment, compared with agriculture's 
19 per emit In 1991, its foreign earnings 
were estimated at $250m, wa y below ag ri- 
cultnre’s $620m and easily o u ts trip ped by 
tourism's $440m. 

The sector is dominated by food-process- 
ing, beverages and tobacco, which 
between them account for 40 per cent of 
value-added. Drought and weak agricul- 
tural performance impacts directly on 
manufacturing in two main ways - 
reduced volumes for processing, and 
depressed rural demand for locally manu- 
factured consumer goods. 

With gliding domestic living standards, 
mounting unemployment and depressed 
levels of invest m ent, industry has been 
forced to look to export markets for 
growth In 1992, manufac- 

tured exports accounted for Ires than 20 
per cent of the total, hut preliminary cen- 
tral hanlt numbers for last year suggest 
an increase to over 25 per cent. 

In 1991, more than 90 per cent of Ken- 
ya’s imports were raw materials, interme- 
diate goods and capital equipment. 
Almost 40 per cent of imports were indus- 
trial-supplies, underlining the extent to 
which industry was vulnerable to import 
carte. While liberalisation and devalua- 


tion have made these more costly, access 
to inputs has improved dramatically. As a 
result, production scheduling and inven- 
tory management are more efficient. 

Industrialists have two main com- 
plaints: in f ras t ruc t ural deterioration, and 
the absence of a level playing-field. The 
latter is chiefly a reference to corruption 
at customs - the evasion of tariffs and 
VAT by importers, wbo are able to bring 
in and market finished goods at prices 
well below those of Kenyan manufactur- 
ers wbo pay duty in the normal way. 

Industry has been forced to look 
to export markets for growth 
opportunities 

Government hopes that the introduction 
of pre-shipment requirements for imports 
win close this loophole. The Kenya Asso- 
ciation of Manufacturers (KAM) is also 
seeking a 25 per cent to 30 per cent duty 
differential between raw materials and 
imported finished prodnets. 

In a recent paper on die problems that 
deter investment in manufacturing, the 
KAM pinpoints in fra s t r u c t ural inade- 
quacy. It wants the management of Kenya 
Railways - like the airline - to be 
entrusted to “management experts” in the 
short term, followed by privatisation. The 
same formula is advocated for the ports. 

A third cause for complaint is the legis- 
lation precluding manufacturers from 
owning and operat in g their own distribu- 
tion networks. Bata, the multinational 
shoe manufacturer, says it conld bring 
down costs and prices in the Kenyan mar- 
ket if it were allowed to operate its own 
retail network. Bata is less critical of the 
infrastructure than other industrialists. 


“We’ve not had to stop working because 
of power cuts," says the managing direc- 
tor, Mr A. Fernandez, though he agrees 
that the roads are poor and that it's often 
easier to make an international telephone 
call than to get a Nairobi number. 

Other industrialists speak in similar 
vein. As market growth has slowed, so 
companies are finding new, more cost-ef- 
fective, ways of reaching customers. Out- 
put growth, which averaged 5.5 per cent 
annually in the late 1980s, fell below 2 per 
cent in the 1991-93 period, forcing indus- 
try to re-engineer its domestic market 
strategy as well as to seek export outlets. 

To succeed in a low-consumption econ- 
omy, says another manufacturer, is not to 
downgrade technology, bnt to make it 
more functional “so that we can deliver 
what people want at a lower price”. 

Some, such as Glaxco, investing £4m in 
a plant to manufacture its ulcer drug Zan- 
tac for the African market, also see Kenya 
as a favourable location for new invest- 
ment, infrastructural deficiencies and 
political imponderables notwithstanding. 

Interestingly, there is little enthusiasm 
among established industrialists for 
export-processing zones. “They are only a 
gimmick. " says one, adding: “If yon have 
a level playing-field and reasonable taxes, 
as we do here (profits are taxed at 35 per 
cent), free zones don’t add any value.” 

There is still modi to be done to create 
the necessary enabling investment cli- 
mate. A recent World Rank report notes 
that a company needs an average of 15 
licences a year, the processing of which 
costs an average of 233 man-hours annu- 
ally. Large businesses need 49 licences at 
a processing cost of over 800 man-hours. 

Tony Hawkins 


Sasini Tea and Coffee Limited 

Highlights of Results 
for the year ended 30th September, 1993 


resems 


Vi : ■ v >v- - i J ££*&**£ > - **•••: : iV.W AV- v /•': : V 



ter'taxfi^ori.-V, y •; -7 * 14,183.^9 * v* v V* . 3&&A 

• ‘ ; V, ■■ V-vV; 1 . 1 "-. 7. "«>•.• '■./.‘V- • • •• V\ ’’ 

\ f A te.n-’f 7 ; ? ^3 -• *'/; / •- 

•moiimb! iSbiiiafc^ 4’'^ ' -C. ' - 513^62^87 >. *. • : ,i>=« 

. ■■■: •: A— " • v • 1 

■ ' ^ 1>62£ 

■ yj : A; ^ ^ V .*^a2fc07,.- 'v ; W 


KShs. 7/40 


pmDjENDS 

An interim dividend of 100% was paid on 30th July, 1993 and a second interim dividend of 100% 
was paid on 15th November, 1993. The Directors do not recommend a final dividend. 

CAPITALISATION 

The following resolutions were passed at the Annual General Meeting held on Friday, 22nd April, 
1994:- 

(a) increasing the authorised share capital from K£2,50Q,000 to K£7,500,000. 

(b) authorising a bonus issue, subject to obtaining the relevant approvals where necessary, of two 
shares of KShs.5/- each fully paid for every one stock unit now held, increasing the issued 
capital from K£2 V 111,625 to K£6334,875. 


YEAR COMPA RATIVE STATEMENT 


RATIOS 


Net assets per stpekunit ; :C : 



1992 

1991;' 

■ i99p 

1989" 



•v.vS®: 

'■ ! 4/21' - 

. 2/74 i 


v- :a m : 





.1-48' ■ 



" 2L74 

3ilp”Sil 

4233 



'.'34/57. 


' . •: v“. - \ \ ; v • * • r •: ~ .... ?. : : f >*;• “ ; ' : ^ 7 

MEMBER OF THE SAMEER GROUP OF COMPANIES 


M. 




..A** 


WM 



'y.' r >■ ;; 

HtBfflgEagna $ ^ 7 . 

■ 7 • -I • • .*[' 

■ .''I • ■ 

VJ. *: . W V 

1 • •’ •, 


Ml,* 


EVEREADY 


Ur ’ 7 ’■ • ‘ : 





The Sameer Group of Companies 
7th Floor, Kenya Reinsurance Plaza 
POBox 55358 Nairobi 
Phone: 210540, 226042, 334046 
Telex: 22660 Sameer Ke 
Fax: Nairobi 218488 





















1 


VI 


FINANCIAL TIMES TUESDAY MAY 10 1994 


KENYA e 


vian Muriu, group man- 
ager far the central tea 
land coffee group of 
Brooke Bond Kenya, points 
proudly to a series of small 
rectangular pits recently dug 
in the ground between rows of 
tea bushes in a plantation in 
central Kenya. 

The staggered holes are a 
simple method that could have 
a powerful effect in preventing 
son erosion. Their creation is 
one of a number of rec en t mea- 
sures designed to boost produc- 
tivity at the Mabroukie tea 
estate, and on other plots con- 
trolled by many different farm- 
ers around the country. 

It is a reminder of the Impor- 
tance placed by growers on 
investment in tea, at a time 
when the drought of the past 
few months has threatened a 
sharp drop In productivity far 
one of Kenya's main genera- 
tors of foreign exchange. 

Last year, tea sales to other 
countries earned an estimated 
KslS.Gbn, or 28 per cent of all 
exports. 

It was second only to tour- 
ism at Ks2L3bn as a source of 
foreign exchange, and contrib- 
uted an estimated 10 per cent 
of the world's crop. 

In a measure of the tradi- 
tional gt gnifi<*flwrp of tea and 
coffee to the Kenyan economy, 
a national law forbids termers 
to pull up any bushes of either 
crop to convert land to other 
uses. The most recent National 
Development Plan - while call- 
ing for self-sufficiency in food 
- continues to urge the mainte- 
nance of the cultivation of 
export crops such as tea. 

Companies such as Brooke 
Bond stress their continued 
commitment to tea, and point 
to a new breeding programme 
for “the golden done" of high- 
yielding varieties. They say 
their main restriction is lack of 
access to new land to plant for 


Tea and coffee are crucial elements of the economy 

Brewing up new ways 
to boost production 



Fufl of beans: world coffee prices are beginning to recover 


additional tea crops. 

More challeng in g is boosting 
productivity in some of the 

smaTlar farms, which ac count 
for about 55 per cent of the 
crop spread between some 
200,000 producers. According to 
a recent report by the US agri- 
cultural attache in Kenya, an 
increase in monthly advance 
payments and elimination of a 
5 per cent presumptive tax on 
growers have helped boost 
Incomes, while a remaining 


problem is inadequate process- 
ing capacity dining peak peri- 
ods. 

Productivity - achieved 
through a combination of ris- 
ing yields and growing land 
under cultivation - has contin- 
ued to rise consistently in the 
past few years, increasing 
almost uninterrupted from 
56.7m kilos In 1875 to 211.2m 
Idles last year. In 1994, mouffl- 
on-month figures have been 
down sharply on last year fol- 


Uz CBben/Sfgma 

lowing drought, although rain 
in the past few weeks has 
begun to restore confidence. 

Liberalisation has brought 
substantial changes to the sec- 
tor. There are now no price 
controls an tea, factories can 
market their output without 
government involvement, and 
exporters can hold on to 
earned foreign exchange. At 
least half of all production 
must still be sold by auction, 
which has converted from shil- 


ling to dollar ofuft 

One challenge for Kenyan 
tei is to diversify its markets - 
something that marketing 
efforts have failed to achieve. 
About 50 per cent of tea con- 
sumed in the UK is Kenyan, 
and represented last year more 
than 39 per cent of all foreign 
sates. A further 26 per cent 
went to Pakistan and 15 per 
cent to Egypt, with little 
spread of market share in the 
past few years. Foreign sales 
have not grown as fast as 

increased production. 

While tea remains highly 
lucrative, coffee has until 
recently undergone a substan- 
tial slump which has forced 
many growers away from the 
crop - if necessary simply 
neglecting their bushes if they 
do not want to risk polling 
thgni up. Coffee output in 
1992-93 dropped to 73,000 
tonnes from 90,000 tonnes a 
year earlier. 

Once it was a mainstay of 
the economy responsible for a 
boom in the country, reflecting 
the high quality, premium- 
priced arabica beans it pro- 
duces. Then world prices col- 
lapsed. Last year it accounted 
for just Ksllm or 16 per cent of 
exports. 

Some observers are optinus- 
tic that thing s are now begin- 
ning to recover. Export earn- 
ings can now be retained in 
dollars, and producers can 
receive proceeds of the sales of 
their own crop rather than 
simply taking their proportion 
from pooled sales organised by 
the Coffee Board. 

At least equally important, 
world coffee prices are begin- 
ning to recover. But it will 
take several seasons before a 
consistently improved price 
will be reflected in higher 
yields. 

Andrew Jack 


Horticulture is a vital source of foreign exchange 

A garden of plenty 


“I doubt whether most people 
who buy carnations realise 
where they come from,” says 
Richard Falrtmrn. Indicating 
with a wave of his hand an 
expanse of greening stalks 
growing muter the hot son. 

Nor probably do many buy- 
ing green beans and Brussels 
sprouts from the shelves of 
Marks & Spencer in the UK 
know that the single hugest 
business supplying fresh pro- 
duce is based just a little far- 
ther up the same road. 

Tet the area around Lake 
Naivasha, in central Kenya, 
has been turned Into one of 
the largest areas of privately- 
owned floriculture and horti- 
culture in the world - and a 
vital source of foreign 
exchange for (he country. It 
fiaimg to have, for example, 
more roses under cultivation 
than in entire UK. 

Floriculture - a world mar- 
ket worth an estimated £l6bn 
ia«t year — hag traditionally 
been dominated by the Dutch. 
Dutch companies were among 
those that began growing 
flowers outside Europe to meet 
fast-expanding demand in the 
1970s and one of these, Qser- 
ian, is now among the largest 
Kenyan-based suppliers. 

Mr Fairborn is director of 
cut flowers for Sulmac, the 
other large Kenyan producer, 
which was bought by Brooke 
Bond, itself now ironically 
owned by a partly Dutch com- 
pany, Unilever. He highlights 
a number of benefits of grow- 
ing flowers in Kenya. 

Of primary importance is 
the eiiwiate. Year-round high 


temperatures mean that sup- 
plies are available outside the 
European growing season. Of 
course, it can also produce 
during the European summer 
- and Sulmac Is already culti- 
vating flowers for eight 
months each year. 

Growing in Kenya also 
offers low capital and labour 
costs, access to freight (which 
is full southbound and needs 
cargo for the return journeys 
northward Into Europe), a rel- 
atively stable political envi- 
ronment and no export tariffs. 

On the other hand, Mr Fair- 
born points out that interna- 
tional communication can be 
difficult, pests and diseases 
haunt the tropical climate, the 
infrastructure is poor, imports 
are costly, there Is no local 
research and development 
facility, and the image of Ken- 
yan produce is variable. 

Perhaps the most important 
hindrance is freight rates. 
Given the need to rush flowers 
and vegetables to market, they 
most be air-freighted, which 
accounts for half or more of 
total production costs. 

George Roy, finance director 
of Homegrown, which pro- 
duces and prepares both flow- 
ers and vegetables for UK 
supermarkets such as Marks & 
Spencer, says that the govern- 
ment reduced aviation tax in 
response to concerns from 
growers, but that the airline 
companies have yet to respond 
by lowering rates. 

In spite of the climate, culti- 
vation is still not easy. Flow- 
ers require water every day, 
and Kenya's supplies are 


erratic. 

The beat creates other prob- 
lems. Homegrown has intro- 
duced pink-tinted greenhouses 
- to keep out the sou and 
reduce the risk of cofours fad- 
ing. 

The heat also means that the 
flowers must be scrupulously 
protected ones picked, The cat 
tings have to be quickly chil- 
led and kept in insulated con- 
talners. 

A number of smaller suppli- 
ers, relying on shipping to 
move their produce, have run. 
Into difficulties, seeing their 
flowers rot on the quayside in 
Mombasa, or have been unable 
to negotiate arid storage aid 
rapid freighting. 

Many of the same issues 
apply to the production of veg- 
etables in the region. Home, 
grown is developing links with 
a number of the UK supermar- 
kets, However, demand Is 
much more specialised than 
for flowers. “British consum- 
ers like their vegetables pre- 
prepared,” says Mr Roy, con- 
trasting the position with 
those elsewhere In Europe, 
such, as the French, who pre- 
pare vegetables in their raw 
state. 

Equally, Alan Wood, manag- 
ing director of Brooke Bond 
Kenya, warns that, white a 
few years ago horticulture and 
floriculture were proving 
highly profitable, growing 
competition is now making the 
field far tougher for both new 
and existing growers. 

Andrew Jack 



COTECNA INSPECTION S.A. 


OUR TASK IS TO CONTRIBUTE TO 
KENYA’S ECONOMIC SUCCESS 


Cotecna Inspection S.A. is proud to continue 
to serve the Republic of Kenya by inspecting 
imports from designated territories. 

Services include independent pre-shipment inspection, product testing, 
laboratory analysis, transaction legality checks, tariff code and duty rate 
verification and customs assistance, conducted by our worldwide 
team of qualified professionals. 


UK Operating Unit 
Cotecna International Ltd. 
Hounslow House 
730 London Road 
Hounslow, Middlesex 
TW31PD.UK 
Tet (081) 577 6000 
Fax:(081)577 7191 


Details of these and other inspection services can be obtained from: 

Kenya liaison Office 
Cotecna Inspection S -A. 
Alico House, 2nd Floor 
Nyerere/Mamlaka Road 
P.O. Box 62526 
Nairobi, Kenya 
Tel: (2542) 726175/8 
Fax: (2542) 726057 


Head Office 

Cotecna Inspection SAL 

5S rue de la Terrassiere 

P.O. Box 6155 

CH - 1211 GENEVA 6 

Switzerland 

Tet (022) 735 83 68 

Fax:(022)7863920 

The Cotecna Group 


BANKING 
FOR BUSINESS 


For over 77 years, Barclays Bank of Kenya ha s been 
providing a wealth of financial services to Retail and 
Corporate customers in Kenya. 

Our strength lies on our solid foundation, strong network of 
over 90 outlets countrywide and a thorough 
understanding of the local and international markets. 

Our subsidiary companies include 
Barclays Merchant Finance Ltd. (BMFL), which provides full 
merchant banking services and 
National Industrial Credit Ltd. (NIC) which provides hire 
purchase facilities. 

For Property Management, Trust Administration and Provident 
Funds, consult Barclaytrust Investment Services Ltd. 

Please Contact either of the following for a copy of the Barclays 
Business Guide to Kenya. 


Inn Campbell 

Head of Marketing Services 
Barclays Bank of Kenya Ltd. 
P.O. Box 30120. Nairobi 
Tel: 254(0) 2 220666 


Andy Fair 

Regional Director's Assistant 
Barclays Bank PLC. 
Fleetway House 
25 Farrington Street 
London EC4A 4LP 
Tel: 44(0) 71 832 3114 



BETTER OFF 


TALKING TO 


m BARCLAYS 


Bad weather and low prices have hit agricultural production 

Self-sufficiency a remote goal 


Although agricultural production is 
expected to be a key beneficiary of the 
government’s market-based reforms, 
Kenya is unlikely to recover self-suffi- 
ciency in food production in the sear 
future. 

The population explosion and the 
scarcity of arable land mean that agri- 
cultural expansion will have to come 
from increases in productivity. 

Many believe it was the dismal per- 
formance of agriculture - mains tay of 
the economy and only source of liveli- 
hood for 20m people (80 per emit of the 
population) — that finally persuaded the 
government to implement reforms. 

Agricultural production contracted 
by more than 6 per cent between 1991 
and 1993, file worst darting sinc e inde- 
pendence. Unfavourable weather and 
low world prices for coffee, a significant 
export commodity, were partly to 
blame; but so, too, were policies which 
subsidised urban consumers at the 
expense of farmers, and the inefficiency 
and corruption within the state market- 
ing monopolies for staple crops. 

When change came, it was sudden 
and dramatic. Until October 1993, tt was 
illegal for private traders to import 
maize into Kenya; until December it 
was illegal to move it around the coun- 
try. Both are now actively encouraged. 
Price controls on maize were lifted at 
the end of 1393, raising the cost of this 


foodstuff by 40 per cent in Nairobi 
Contrary to government fears, there 
were no food riots. But economic hard- 
ship is severe, and is limiting what Ken- 
yans can afford to eat In the country- 
side, the US Agency for International 
Development believes most rural fami- 
lies are surviving on a diet of maim, 
tea, cabbage and potatoes or cassava. 
Sugar has become scarce, and when 
available is scarcely affordable. For city 
dwellers, maize flour now accounts for 
70 pm- cent of the -- 
daily caloric intake. 

Bread has become a 
luxury, while most 
families are strug- 
gling to maintain 
their consumption 
levels of vegetable oil, milk and sugar. 

The National Cereals and Produce 
Board, the former grain marketing 
monopoly, has begun to privatise some 
of its warehouses. Eventually, ita role 
will be confined to maintaining strate- 
gic grain reserves and acting as a buyer 
and seller of last resort But it will 
remain active in the import and mar- 
keting of grain, while the private sector 
finds its feat in the newly liberalised 
environment 

The price and marketing reforms 
were all the more remarkable, in that 
they were implemented during Kenya’s 
worst drought of the past 10 years. In 


Many befteve it was the dismal 
performance of agriculture that 
pro mp ted r efo rms 


the heavily populated Eastern Province, 
the failure of the December rains wiped 
out half the maiTp crop. herds- 

men in the Great Rift Valley have lost 
more Qian 275,000 head of cattle. The 
government says 5m people - one-fifth 
of the population - are in need of emer- 
gency food handouts. 

About l.7m tormes, or just over half 
the national maize consumption, will 
have to be met by a combination of 
commercial imports, government pur- 

chases and food 

donations. And 
although the rains 
returned in April, 
meteorologists say 
it Is too early to 
assess their Impact 
on the September harvest 
Other factors have depressed agricul- 
tural production. Ethnic dashes have 
forced an estimated 300,000 people or 
the mainly Kikuyu farming c ommunity 
to abandon their homesteads in the Rift 
Valley, according to church organisa- 
tions. Human rights groups have 
blamed government politicians for Insti- 
gating the conflict between Maasai and 
Kalenjin herdsmen and the Kikuyu. 
The repercussions of the conflict go 
well beyond a decline in agricultural 
output Many Kenyans fear the coun- 
tryside could slide into civil war unless 
the government undertakes greater 


efforts to restore peace. 

Agriculturalists are also concerned 
about the marked decline in the use of 
fertilisers since prices were liberalised 
in 1992. The government is considering 
the reintroduction of subsidies for fertil- 
isers and agricultural credit to reverse 
this worrying trend. The distribution ttf 
sub-s tandar d planting seed by the stale- 
owned Kenya Seed Company - another 
parastatal plagued by mismanagement 
and corruption - has also lowered pro- 
ductivity. 

All these factors are making self-fiuffi- 
ciency in food production an ever dis- 
tant goal. The government estimates 
that maize production would have to 
rise by 4 per cent a year to eliminate 
the need for imports by the turn of the 
century. Only significant improvements 
in yields could achieve this growth, as 
Kenya's marginal agricultural land 
offers only limited potential 

At the same time, the need to import 
increasing quantities of maize, wheat, 
rice, sugar and vegetable ail to feed a 
rapidly expanding population has 
eroded Kenya’s agricultural trade sur- 
plus. The positive trade balance fell 
from nearly 5500m in 1990 to $28&nin 
1992, and is estimated to have fallen 
farther in 1993. 

Leslie Crawford 


KIWAYU 



u If the present is killing you, 
go back in time, here Vasco Da 
Gama is still sailing, and the 
Green Turtle is still, tearfully, 
laying eggs.' 


Kfwayu Safari Village Lid., 

P.O. Box 55343, NAIROBI, Kenya 
Tel: (254-2)503030 
Fax: (254-2)503149 



to QU C 

Hard currency Remittances ?? No problem 
PTA Reinsurance Company (ZEP-RE) established 
by the PTA Reinsurance treaty encompasses 17 African 

countries. 

Take advantage ofthe ZEP-RE technical and regional 
strengths in the insurance and reinsurance business 

CortScir 

ZEP-RE 


PTA-Re-insurance Company ( ZEP-RE 
P.O.Box 42769 

Tel. 212792 Fax 224102 Telex 22106 
Nairobi Kent a. 



INVESTMENTS! 


LEADING 

INVESTMENT BANKERS 
IN EAST AFRICA 


We are expanding in the investment and merchant banking fields and the pace is 
increasing with the continued liberalisation of the regional economies. Kenyan 
liberalisation measures undertaken in the past year include liberalisation of (i) FX 
borrowings for Kenyan companies, (ii) removal of local currency borrowing limits for 
foreign controlled companies, (iii) elimination of restrictions on investment, capital gains 
and dividend repatriation, and (iv) the ending of import licensing. Some of the functions 
that we have performed in the corporate finance and capital markets areas are listed below: 


■ CORPORATE FINANCE 

• Commercial Paper Programmes 

• Accounts Receivable Financing 

• Inventory Finance Programmes 

• Term Repos & Acceptances 

• Mergers & Acquisitions 

• Equity & Debt Capital Raising 

• Structured Project Funding 

• ADVISORY SERVICES 

• Country Fund Managment 

• Pension Fund Advisors 
■ Agricultural Advisors 

• Investment Evaluation and Advisory Services 


CAPITAL MARKETS 

• Floatations 

• Privatisations 

■ Country Fund Managment 

■ Underwriting & Placement 
■Takeovers 

• Private Placements 


RESEARCH 

• Publishers of the Nairobi Stock 

Market Review and Company Data Sheets. 

• On-Line Research and Databases 
for Kenya, Zimbabwe & Botswana 

• Reuters Emerging Market 
Contributor for Kenya 


• RECENT TRANSACTIONS 

• Managment buy-in financing for pre-privatisation operations. 

• Export Financing fora European Multinational 

• Joint Venture structuring for South African companies 

■ Import financing for a European Multinational 

• Forfaiting for Kenyan Exporters 

• Commercial Paper financing for inventory purchases 

• Term financing for fresh horticultural exports 

■ Portfolio purchasing and sale for international institutional investors 

MTODIJE AFRICA INVESTMENTS LIMITED 

NATION CENTRE. 14th Floor North, Kjmathi Street, P.O. Box 34172. Nairobi. Kenya. 

Ta “" E J,i977 F “ »«* w-ESffiS*. 

SroNMRs. East African High Yield Bond Conference - Autumn 1994 
Directors: B. K. Smith, C.W. Hartland-Peeu R. T. Dunnct 




I.- 


■4 






fnioV if ^ 


I,:'- 


i. • • : 










FINANCIAL TIMES TUESDAY MAY 10 1994 


VII 


■ 




.. . ,>& 


llir 


!,! 'V 

: -ill 


•Ita.. 

'«fe 




Hi. 


"-Uiii, 


„. r 

... W 

‘ „ !,ri: "W 

i, , ' la «- 

, ' n *b. iv. 

ID fr. 




\un tv^ 
BlTRt: 
‘ fl:% tnai.-^ 
c " tiling 
" “Wf },, 

'• «ir. 

lort*. 

“WfTS 

‘v'-Gr-f, • 





. *.;ir v- 


J*tV> 

| j; \NKi^ 

! 'KK'A 


KENYA 7 


T o many observers, Richard Leakey's 
stormy departure from the Kenya 
Wildlife Service revealed the sinis- 
ter side of Kenyan politics. 

His success in saving Kenya’s wfldKfe 
from the clutches of ivory poachers, and 
his fund-raising efforts abroad, put Leakey 
on a collision course with those in govern- 
ment who envied his independence and 
coveted the aid dollars flowing into KWS 
conservation projects. 

Before Mr Leakey’s appointment in 1989. 
Kenya’s wildlife was bring decimated by 
gangs of armed brigands who roamed the 
country with impunity. Three-quarters of 
the elephant population and almost the 
entire rhino herd had been slaughtered. 
Attacks cut tourists were on the rise. 

Mr Leakey began the new regime at 
KWS by sacking i,640 staff suspected of 
corruption. He re-introduced a shoot-to-kfll 
policy against game poachers, and cam- 
paigned for an international ban on the 
ivory trade. He believed Kenya's wildlife, 
which underpins a $350m-a-year tourist 
industry, could be managed in a profitable 
and sustainable manner. Donors, includ- 
ing the World Bank and Britain's Overseas 
Development Agency, backed his plans by 


Conservation is about people as well as wildlife 

A fresh start after the storm 


pledging SSOOm for KWS projects over 10 
years. 

. To foreign donors. Mr Leakey repre- 
sented the new face of public service. He 
was a man who had taken over a corrupt 
and dispirited government department and 
transformed it into a dynamic parastatal. 
with the freedom to cut through red tape 
and resist political meddling. 

Suddenly, in January, he came under 
attack for arrogance, racism and corrup- 
tion. He was told he faced a secret govern- 
ment probe into the workin gs of KWS. 
Neither President Mai nor the KWS board 
of trustees rallied to his defence as senior 
government figures, led by WlHiam ole 
Ntimama. the minister for local govern- 
ment, called for his resignation. 

Mr Leakey believes the onpar camp ai g n 
was orchestrated by “land-grabbing” poli- 
ticians, whom the KWS had frustrated in 


their attempts to appropriate vast chunks 
of Kenya’s wildlife sanctuaries to develop 
hotel resorts or mining concessions. 

He left the director’s post in January, 
was recalled by the president in March, 
and resigned again barely two weeks later, 
saying the gov e rn men t bait pl aced impos- 
sible restrictions on his job. 

Mr Leakey's aczyxnonious departure dis- 
mayed conservationists in Kenya and 
abroad. It also raised alarm bells in the 
donor community, who began to fear their 
conservation grants might fall prey to 
political predators. 

The government appears to have 
acknowledged their concern, for i nste ad of 
naming a politician to head KWS, it 
appointed another white Kenyan with 
solid credentials in the field of conserva- 
tion. 

David Western has a tough act to follow. 


He must persuade the donor community 
that their conservation flmris are in safe 
hands. He must avoid charges of empire- 
hiriltiin g while being in control of an area 
the size of Northern Ireland. And he must 
maintain the trust of government to be 
allowed to command an irregular army of 
game wardens, reconnaissance vehicles 
and surveillance aircraft 

He is also aware of the political machi- 
nations which hounded his predecessor 
from office, and says land-grabbing politi- 
cians will have no better luck with him. 

Si gnificantly , Mr Western obtained the 
reversal of two presidential directives 
which caused Mr Leakey to resign: the 
armed Wildlife Protection Unit wOl no lon- 
ger be placed under the authority of the 
commissioner of police; and KWS will 
regain its Wmwiriai autonomy from the 
Tourism ^nd Wildlife Ministry. 



David Western: has a tough act to follow 

Mr Western, however, believes that, 
under Mr Leakey's stewardship, KWS bad 
laid itself open to charges that it was more 
concerned about animals than people. 

An acute shortage of arable and gracing 


loud, coupled with Kenya's rapid popula- 
tion growth, have brought communities to 
the borders of wildlife sanctuaries. Ele- 
phants trample crops. People are maimed, 
sometimes killed, by predators. A ban on 
culling means that wild animals and farm- 
ing communities live in increasingly 
uneasy coexistence. 

There was a lack of sensitivity to bow 
critical the issue had become." Mr West- 
ern says. He intends to redress the issue 
by focusing on the “people side” of conser- 
vation. 

He wants to promote landowners' associ- 
ations. and encourage them to present 
their proposals for community-based con- 
servation projects. He believes certain pol- 
icies, such as the introduction of culling or 
hunting licenses, might be less controver- 
sial if they came from local communities. 

But the bottom line is money. Local 
co mm u ni ties, and local politicians in par- 
ticular, feel they are not getting their fair 
share of wildlife revenues. For Mr West- 
ern, juggling the competing f inan cial 
demands of wildlife and people will be the 
toughest act of ail. 

Leslie Crawford 


Andrew Jack on the delights and frustrations of a tourist 

Enjoying the high life 


Travelling overnight by train from Mombasa to 
Nairobi, dining at dusk, sleeping In a first-class 
cabin and waking to breakfast as the central 
plateau trash rolled past seemed like an elegant 
way to traveL 

Doing so at the peak of the rainy season was 
the problem. Just a few miles outside Mombasa, 
through both sittings for dinner, die train sat 
for more than four hours. There was no air-con- 
ditioning or lighting. There was no explanation 
from staff either, simply a casual shrug as they 
prepared for a long delay. 

No doubt due in part to the presence of three 
politicians, the district controller from Mom- 
basa arrived by car a little before midnight to 
see what was happening, while the guard bad a 
chance to Marne the British for their railway 
tracks, which he said caused the delay because 
they were sinking as a result of the rain. 

It was the sort of small, quirky incident, 
endearing after the ev e nt, Oat a visitor .to 
Kenya mi gh t, come across during a holiday. 
And certainly there are many visitors now com- 
ing: more than 650,000 in 1992, and accounting 
for an estimated KsZlbn in revenues last year 
or nearly one third of aD export earnings. 

Fears over political turmoil, machinations at 
the Kenya Wildlife Service following the resig- 
nation of Richard Leakey, and reports of vio- 
lence against tourists - including a number of 
murders such as that of the British nurse Julie 
Ward - may all bare contributed to declining 
numbers from a peak in 1990 of nearly 900,000. 

But the government has responded with 
tougher security measures in the national 
parks. The appreciation of the Kenyan shilling 
in the past few months at a time of relative 
economic stability may now seem to be as great 
a threat to renewed expansion in the number of 
visitors. 

A tempting option for the mare adventurous 
visitor is to climb Mount Kenya, complete with 
porters, cooks and guides (a mandatory require- 
ment for entry to the park). Past the grazing 
buffalo and elephants, through the sticky 
delights of the “vertical bog” before the scram- 
ble through rock and snow begins, most rise 
early to avoid afternoon rains and stagger the 
trip over three or more days in moun tai n huts 
to alleviate the effects of altitude sickness. 

The final ascent of Point Lenana. the highest 
feasible trek without serious climbing equip- 
ment, at nearly 5,000 metres, typically begins 
by moonlight at 2am or Sam, to allow for 
arrival at toe peak for sunrise. 

In sptte of toe difficulties, a remarkable num- 
ber of trekkers make the attempt often inap- 
propriately dressed in loafers, while their 
guides gallop up in Wellington boots carrying 
only conventional umbrellas for rain gear. 

For an extra frisson of fear, do the trip to 
Mount Kenya by “matatn” or shared taxi by 
night, experiencing local driving at its most 



Export processing zones: have the benefits faded? 

Further sites are planned 


When it comes to enthusiasm 
for a government programme, 
Silas Ita is hard to beat The 
cbief executive of Kenya’s 
export processing zones (EPZs) 
authority enthuses about their 
likely success. “We have had 
more than 300 inquiries,” he 
says. 

EPZs woe created by Law in 
1990. The aim was to offer com- 
panies ready-to-occupy units, 
with aD necessary infrastruc- 
ture and a series of incentives, 
such as exemption for 10 years 
from income tax, value added 


tax, import duties and with- 
holding taxes on dividends. 

Other benefits Included: no 
exchange controls, on-site cus- 
toms clearance, unrestricted 
employment of foreigners in 
senior and skilled positions, 
and no restrictions on manage- 
ment or tpehninal procedures 
or the level of foreign invest- 
ment. 

Sameer Industrial Park, the 
first EPZ to open, is privately 
owned by Firestone East 
Africa. Clyde Tabor, manag in g 
director, says 12 companies 


have leased nearly aD the 
space on the 45-acre site, and 
that he expects to cover all 
costs within 10 years. “It's 
been a good investment” 

Firestone had decided to 
develop an industrial park in 
Nairobi beside its existing site, 
and took advantage of EPZ des- 
ignation once the legislation 
was mooted. Sameer provides 
security and maintenance ser- 
vices, for which it charges 
$3220 a square foot annually. 

Mr Tabor hi g hli g hts one of 
the principal benefits for com- 


The Han's share: hards of tourists trek across the 
game reserves in fair-wheel chive vehicles 

lights one cigarette after another in a petrol- 
reeking car while overtaking and tail-gating 
traffic without lights. 

These experiences are a for cry for those who 
seek' simpler forms of relaxation. To them, 
Kenya means little more than the beaches run- 
ning north and south from Mombasa, with 
hotels offering packages at prices more attrac- 
tive than in many other resorts around the 
world. 

At the more expensive end of the market are 
niche hotels such as Hemingways, named after 
toe novelist, which specialises In offering 
deep-sea fishing trips, or the equally luxurious 
Lonrfao-owned Mount Kenya Safari Club. 

For the urbanite, Nairobi offers a large range 
of cosmopolitan cuisines including French, 
Thai and Mongolian, as well as the more indig- 
enous grilled zebra and wildebeest 

For those tempted to sample a more distinctly 
African experience, there are safaris in abun- 
dance. Herds of tourists in four-wheel drive 
vehicles now trek across the country's game 
reserves each year in search of wallowing hip- 
pos, hunting cheetahs and mating Hons. 

At one extreme, visitors can arrange their 
own safaris or join organised groups to drive 
around and camp in toe country's parks. At toe 
other end of the scale, they can stay in high- 
priced “tented camps” where they deep under 
canvas. 


Why De La Rue located in Africa 

Noteworthy decision 


The decision by Thomas De La 
Rue, the security p rinting com- 
pany, to open a si gnifican t 
operation in Kenya was the 
c ulminati on of a liaison with 
Africa dating back more than 
130 years. 

The British-based company's 
first bank-note printing order 
was in 1860. from Mauritius. In 
1988. it finally resolved to shift 
production Into a continent 
that has long provided it with 
substantial business. 

Six years later, the first 
batch of 10m bank notes has 
just been despatched to the 
Central Bank of Kenya from 
the gleaming new marble-and- 
steel building on toe outskirts 
of Nairobi A second batch is 
under way, and notes for 
another East African country 
are also being printed. 

But why did the company 
decide to locate In Africa, and 
in Kenya, with a rite on which 
it has spent £10m - an invest- 
ment it expects to recover 
within the next four years? 

David Chapplow, general 
manager, says that growing 
world demand for the compa- 
ny's note-printing abilities 
from its factory in Gateshead, 
in the northeast of England, 
forced it to open a second plant 


in Malta in 1974. It gradually 
moved towards decentralised 
printing, opening other sites in 
Singapore, Hong Kong and Sri 
Tanka. “We realised in the 
mid-1980s that our printing 
seemed to moving to the Far 
East, but we had a major cus- 
tomer base in up to 40 African 

fin 1988, the company 
resolved to shift 
production into a 
continent that has long 
provided it with 
substantial business 

countries,” he says. “We 
wanted to make a significant 
investment to strengthen our 
commitment to our African 
customers.” 

Political stability, economic 
growth, geographical location 
and an educated English-speak- 
ing working force were among 
the temptations that drew the 
company to Kenya. “It had 
been quite a success story 
Since indeppnifgnre ," Mr Chap- 
plow says. 

In addition, the company 
then heard that Kenya was 
planning to develop export-pro- 
cessing zones, and applied for 


permission to obtain one, 
granting it access to a deferral 
on taxes and a series of other 
benefits. 

Mr Chapplow has no qualms 
about the results. Tve got to 
say that the nature of our 
product is recognised as of suf- 
ficient importance that the 
government recognises we 
require some special atten- 
tion," he says. “Delays have 
been kept to a Twinimnm, and 
we*ve been very impressed by 
the co-operation we've 
received.” 

He Is sensitive to concerns 
that other African countries 
may be reluctant to buy from a 
company based in Kenya. 
“Once people know we're here 
to stay, we hope there would 
be an African continent pride 
in having a De La Rue factory 
here. We hope to use it as a 
showplace for Africa.” 

The company’s bin] ding has 
been designed to expand easily 
by 30 per cent, and to have 
room to the existing space to 
house a second set of printing 
ma chine ry It already has the 
capacity to print lm illion 
bank notes a day, and employs 
about 100 Kenyan staff. 

Andrew Jack 


. ; M 

- 1 ' 


LOOKING FOR A LOCATION 
FOR YOUR EXPORT PROJECT? 

LOOK NO FURTHER! 


The Export Processing Zones in 
Kenya provide an excellent 
opportunity for the enterprising 
investor. 

As an investor In one of our zones 
you will be entitled to: 

♦ a 10 year corporate tax holiday 

♦ exemptionjmm. duty and VAT 
on inputs 

♦ unrestricted investment by 
foreigners 

♦ autonomous control of export 
earnings 

♦ access to foreign borrowing 

♦ freedom from exchange control 
restrictions on operation of 
convertible currency bank 
accounts 

♦ work permits for technical, 
training and managerial 
expatriates 

♦ on-stte customs clecvance of 
goods at zone 



We are looking for Investors with export- 
oriented projects. These may be zone 
developer/operators or exporting 
enterprises themselves. Enterprises may 
be In export manufacturing, commercial or 
service activities. 

Kenya provides Investors with a 
sophisticated communication and 
transport network, a pleasant living 
environment, an educated, industrious 
labour-force, and market access to the 
PTA. Africa and the world. 

Zones provide investors with secure, 
modem, serviced Industrial and office 
facilities. Already 9 zones have been 
designated and several are occupied by a 
variety of enterprises. The largest zone in 
Athi River was recently completed and is 
now leasing building and land to approved 
projects. 

JOIN THE LEADERS 
COME TO THE EXPORT 
PROCESSING ZONES 

We provide a one-stop shop service to 
interested investors. We look forward to 
discussing your investment project with 
you. 

For more information, contact: 

The Chief Executive, 

Export Processing Zones Authorit y, 

P.O. Box 50563, Nairobi 

Teh (254-2) 7X2800 Fox: (254-2) 713704 



East Africa Industries is a household name in Kenya 
just as our parent company Unilever 
is a household name in countries throughout the world. 

It’s hardly surprising, 
since we've been established in Kenya 
for more than half a century and now marketing a wide range of 
outstanding brands through our three consumer divisions. 


Van den Bergh # Foods 


We're committed to being foremost in understanding and meeting 
the needs of Kenyan consumers: to improving their well-being. 



LEVE 


We’re committed to the research, investment and innovation which 
underpin our ambition and give credibility in the market place. 

<5C> E L I D A POND'S 

And importantly we’re committed to doing all we can as an active 
partner in Kenya’s economic development. 

As Kenya grows, EAI grows with her: in short, 

KENYA'S FUTURE IS OUR FUTURE 



panics locating in Kenya as the 
quality and cost of the labour 
force; and the biggest problem 
as the infrastructure. 

A further five private EPZ 
sites have been planned, while 
a significant investment in the 
country has come from 
Thomas de la Rue, the security 
printer, which has been 
granted the status for a factory 
on the outskirts of Nairobi. 

Two large government EPZs 
are also under way with sup- 
port from the World Bank and 
the African Development 
Bank: the Athi River Zone, 
near Nairobi's international 
airport, which opens this year; 
and the Mombasa EPZ, in two 
phases, construction of which 
is expected to begin this year. 

A number of business execu- 
tives, who preferred not to be 
named, are rather more scepti- 
cal of the attractions of the 
government’s EPZ sites and 
bow rapidly or completely they 
will be filled. Some of the^nl- 
tial benefits have faded as lib- 
eralisation has reduced the 
advantages over operation in 
the rest of the country. One of 
them questioned whether the 
rents charged would be suffi- 
cient, or the level of services 
adequate. 

Another, from a company 
long established in the coun- 


try, said: “We looked at the 
idea of moving into one of the 
zones, but we found we would 
just be substituting high cus- 
toms duties for high rents.” 

Mr Ita is frank about some of 
the shortcomings. “We are still 
moving slowly on how we 
interface with other organisa- 
tions,” he says. He highlights 
goods to or from EPZs being 
delayed at customs, which 
should not be handling them. 
He says there are problems 
with VAT being charged on 
telephone calls and electricity 
bills, in spite of the exemption. 
Looking forward, he says he 

The aim of EPZs was to 
offer companies 
ready-to-occupy units, 
with all necessary 
infrastructure and a 
series of incentives 

wants to see the government's 
EPZs privatised, though this 
may fall short of a full sale and 
amount rather to handing over 
management, or possibly a 
lease on the rites, to the pri- 
vate sector. 

He says there are no plans 
by the government to develop 
additional EPZs, but that it is 
considering turning Mombasa 
into a free port, to compete 
with other centres, such as 
Rotterdam and Dubai, as 
“bulk-breaking" centres for 
repackages large consignments 
for re-export • 

Andrew Jack 



At Kenya Commercial 
Bank, we listen to you 
better and serve you just 
as well. 

Being the largest and 
oldest established financial 
institution in Kenya, we 
have the benefit of 
experience, and of 
unmatched resources to 
put ai your disposal. 

Throughout our vast 
country branch network, 
we offer a Full range of 
sophisticated banking 
services, from foreign 
exchange to private 
banking. 

No bank does better in 
Kenya. 

Making use of 
our global 
network of 508 



correspondent banks 
worldwide and our 
advanced computerized 
systems, we give you 
access to the unique 
investment opportunities 
and asset management 
services that renders 
business such a pleasure in 
Kenya. 

Your money will be 
worth much more with 
Kenya Commercial Bank, 
as we offer you:- 
- Competitive interest rates 

• Fast, efficient service 
•Personal and friendly 

attention 

• Peace of mind, knowing 
that you are with 
one of the most 
reputable banking 
groups. 


The Bank is KCB 

For more information contacti- 

Marketing Manager, Kenya Commercial Bank, 
Kencom House. P O Box 1 8-100. NAIROBI, 
Telephone: 3394-11, Telex: 23085. Fax: 338006. 

London Representative Office, 1 Hay Hill, Berkeley 
Square, London W1X 7LF TcL 071 493 4842, Telex: 
262537 KCB LON C, Fax: 071 408 1611 UK 





VUI 


FINANCIAL TIMES TUESDAY MAY 10 1994 


A report predicts a huge increase in deaths from Aids 


KENYA 3 

Asians have a powerful grip on many sectors of the economy, writes Andrew Jack 


Disease strikes at the 
heart of business 


It may not yet be as severe as 
In some of its neighbouring 
African states, but one of the 
most dangerous threats to eco- 
nomic growth and social sta- 
bility in Kenya is Aids. 

To the casual visitor, evi- 
dence of acquired immune 
deficiency syndrome is limi ted 
- a TV advertisement warn- 
ing, “Say no to unwanted sex- 
ual advances; say no to Aids”; 
a poster with a prostitute 
tempting a well-dressed Ken- 
yan, her face a grinning skull 
offering the prospect of death. 

To the policy-makers, the 
concern runs far deeper. A 
recent report prepared by the 
National Aids Control Pro- 
gramme of Kenya suggests 
that one In every 18 adults 
aged over 15 is HIV-positive. 
In urban areas, the proportion 
is twice as high at 10 to 11 per 
cent, or 220,000 people. 

It estimates that more than 

130.000 Kenyans have devel- 
oped Aids, and that two years 
ago about 730,000 people were 
carrying the human Immuno- 
deficiency virus that causes 
the disease - most of whom 
are expected to develop Aids 
and die within the next 10 
years. This includes 30,000 
children. 

The report projects that, by 
2005, there could be 1.9m HIV- 
positive Kenyans, and that the 
cumulative number of Aids 
deaths would increase from 

100.000 today to over 2m in 
the same period. 

A vicious corollary of Aids, 
not seen elsewhere in the 
world, is that the deaths 
caused by the disease may 
often be the result not of eso- 
teric ailments but of common 
and highly infectious tropical 
killers such as tuberculosis. 
This not only conceals the fact 
that Aids may be the root 
cause, but also risks engender- 
ing a national TB epidemic 
among those not infected by 
the disease as well as those 
who are. 

Equally, some researchers 
believe that the relatively high 
incidence of other sexually 
transmitted diseases such as 
gonorrhea and syphilis within 
Kenya may boost HTV-infec- 


thm rates by between 10 and 
100 times. 

One problem is that many 
who are HIV-positive do not 
know they are infected, since 
it can take several years 
before any signs develop. In 
the meantime, they may con- 
tinue to transmit the virus to 
others. 

There is certainly some 
stigma to the discussion of 
homosexually-transmitted 
Aids in Africa. However, ft 
appears that in Kenya most 
transmission comes through 
heterosexual contact, particu- 
larly in groups where the 
social structure has broken 
down: it spreads along truck- 
ing routes. In war zones and 


A recent report suggests 
that one in every 18 adults 
aged over 15 is 
HIV-positive 


among rural migrants to 
cities. More controversially, 
some academic researchers 
believe there is a higher inci- 
dence of infection among 
unrircomcised men - a grow- 
ing group representing about 
20 per cent of the papulation. 

A smaller proportion may 
come through blood transfu- 
sion where screening systems 
and equipment break down, 
although the government 
insists that most blood is now 
screened for HIV. 

More wonyingly, many chil- 
dren are becoming infected 
from their mothers - either 
during pregnancy or through 
breast-feeding. Up to half of 
the children of infected moth- 
ers in Kenya are estimated to 
be infected. 

Those children who are not 
infected do not escape the 
effects of the disease: many 
will become so-called Aids 
orpbans, being left without 
parents by the time they are 
15. Official estimates suggest 
there will be 600,000 such 
orphans by 2000 and almost 
lm by 2005. This will place 
additional burdens on 
extended families, boost 
demand for support services 


and trigger unstable social 
structures. 

Aids is beginning to have a 
fundamental impact on the 
economy more generally. 
Three-quarters of cases affect 
the most economically produc- 
tive group within the popula- 
tion: adults aged 2<M5. Com- 
panies may be threatened with 
survival, and agricultural 
systems disrupted. 

A study by ITS researchers 
two years ago suggested that 
the average cost of hospital 
care for an Aids patient was 
Ks27,200, and the average 
length of time in hospital far 
more than for other ailments 
at 60 days. Aids patients were 
estimated to be occupying up 
to 15 pm* cent of all hospital 
beds in the country. 

At current growth rates, this 
suggests total hospital costs 
on Aids Ks3.7bn by the year 
2000, and K&L8bu by 2005 - 
up to half of public expendi- 
ture on all health care, and 
about half of all hospital beds, 
in a threat to provision of ser- 
vices to the rest of the popula- 
tion. Separately, a 1992 World 
IBank study on AIDS in sub-Sa- 
haran Africa suggested that if 
Aids affects the better-paid, 
better-educated economic elite, 
and consumes medical and 
funeral costs from savings, 
investment and economic 
growth will suffer. 

As to the future, the govern- 
ment says it estimates “con- 
servatively” that adult HIV 
prevalence will stabilise at 
about 9 per cent by 2000. Some 
practitioners remain rather 
more pessimistic. Dr Francis 
Plummer, a visiting lecturer at 
the University of Nairobi over 
many years, says: “There is no 
evidence that infection rates 
are slowing. There is still 
exponential growth.” 

He says that surveys within 
Kenya suggest th at education 
has been remarkably effective, 
with a high degree of know- 
ledge of Aids. But tills has not 
been translated into changes 
in sexual behaviour, except in 
some limited groups such as 
prostitutes. 

Andrew Jack 


‘The filling in the sandwich’ 


What could sum up batter the powerful 
intermingling of Asian and African cul- 
tures on the east coast of Africa than a 
restaurant in M ombasa called the Swa- 
hili Curry Bowl? 

Long-standing residents, economi- 
cally indispensable but resided with 
suspicion and sometimes hostility, 
Kenya might best be seen for the 
Asians - to borrow an American phrase 
- as of a mating pot and more of a 
salad bowL 

Some observers talk about Asians as 
“the filling in the sandwich”, conve- 
niently providing a political buffer to 
prevent greater economic domination of 
the country by the Kikuyu. Stenya’s 
largest tribe. 

It does not take long to see the influ- 
ence of the group. The ubiquitous black 
African faces in many organisations 
frp Ke nitimata control by an Asian or 
white. Asians have a powerful grip on 
many sectors of the economy, notably 
in leisure and tourism, finance, con- 
struction and general commerce. 


The economic strength of the commu- 
nity is far out of proportion to their 
numbers. At the latest census Asians 
accounted for an estimated 59,000 out of 
a total population of more than 2&n: 
the largest single ethnic group but for 
smaller than the black majority. 

Yet take an internal flight, eat in a 
higher-priced restaurant or stay in a 
comfortable hotel within Kenya, and 
the proportion of Asian faces rises sub- 
stantially above these levels. 

: Given the proximity to the Indian 
subcontinent, the east coast of Africa 
was a logical entrepot over many centu- 
ries Cor Asians - who are often referred 
to as “In dians * by black Africans 
regardless of their country of origin. 

Many of the ancestors of today's set- 
tlers came from the states of Gujerat 
and Punjab, and arrived in Kenya as 
indentured construction workers to 
help build the railways in the country 
in the late 19th century for its British 
colonisers. Others came to settle with 
the encouragement of the authorities 


after the second world war. 

They tend to live in relatively closed 
co mmuni ties. There is little social mut- 
ing with other Kenyans and they rarely 
intermarry. “It would not work,” says 
one Sikh with an arranged Indian mar- 
riage whose father came to the country 
from Punjab in the 1940s. “We are from 
different religions, cultures, and back- 
grounds.” 

Many have shied away from politics, 
and often sought support from within 
their extended family and religious net- 
works for financial backlog rather than 
turning to the banks. “All the banks 
want is interest and charges,” says one 
Indian h nninwwniin 

As a result they are far more closely 
associated with business than any other 
aspect of Kenyan society. “They have 
set the moral tone for the government,” 
says one black Kenyan. 

The stereotypes can be overplayed. 
Yet the Asian community has certainly 
often proved the scapegoat at times of 
political crisis within Kenya. While 


escaping the severe persecution and 
mass flight that took place under Idi 
Amin in neighbouring Uganda daring 
the 1970s, many remember tense peri- 
ods. 

Asians point to the “AfHcanisation" 
taking place at that time, when Asians 

- particularly those without Kenyan 
passports - found it difficult to obtain 
licences and permits to trade. There 
was harassment of individuals, confis- 
cation Of property and Aslan-controlled 
businesses were taken over. 

More significantly, they recall 1982, 
the time of the attempted coup, when 
there were reports of riots, tooting of 
shops and rapes. U was this perception 

- as much as any real risk - that 
caused many families to send their 
women to relatives in Tanzania awl 
elsewhere during the elections in 1992. 

“We keep ourselves separator says 
an Indian Muslim. "The Africans are a 
very different people. They have the 
Intelligence bat don’t like taking the 
responsibility." 


M wangi drives his battered 
green Peugeot between Nyeri 
and Nairobi four times a day. 
squeezing in eight passengers - plus 
additional children wrapped around the 
gear lever - at KS200-250 each in his 
high-speed “matatn" or tar f. 

He pays a commission of about KslOO 
a trip to the office, which provides his 
customers, insurance of Ks24,000 a year 
and a road licence fee. He hopes in a 
few years to have saved enough to open 
a butcher's or a car repair shop. He also 
pays no tax. 

Mwangi is one of hundreds of thou- 
sands of Kenyans not readily visible to 
the authorities in their business activi- 
ties, and yet who are responsible for 
much of the heat of the economy. 

Drive around any city, and the pres- 
ence of the informal economy is ubiqui- 
tous: the presence of the informal econ- 
omy is ubiquitous: hawkers, hovering 
in the road at traffic-lights or street 
comers, offering flowers or magazines 
for sale; temporary lean-to shades in 
industrial areas selling food and drink 
at lunchtimes; sellers of secondhand 
clothes lined up in makeshift markets. 

There is even a Swahili phrase for the 
sector Jtia Kali. Literally, it means 
“hot sun” - a reference to the sheet- 
metal workers and car mechanics who 
traditionally have bashed away at rad- 
side stalls or under trees, hardly pro- 
tected from the heat. 

But there Is an enormous official 
ambivalence towards the sector. On the 
one hand , tiie government has recog- 
nised In TTinnmwahlp documents ar> d 
plans that the jua kali sector is an 
esspntiai element w ithin the economy, 


Andrew Jack on the 

Invisible 
from ‘the 

and one that needs to be fostered. 

On the other, there are innumerable 
instances in practice of the premises of 
jua kali workers being demolished and 
the individuals concerned driven away 
by city councils in response to demands 
by landowners to dear patches of land. 

“Most entrepreneurs see the city as 
their enemy, not as dty fathers. If you 
drive a dty van into the jua kali areas, 
everyone runs away,” says Kimanthi 
Mutua, manag in g director of the Ken- 
yan rural enterprise programme, a 
charity which has provided more than 
16,000 loans totalling over Ksl60m in 
the past four years. 

Fart of the problem is that the phrase 
is now used so widely - to encompass 
the original mechanics, retailers, the 
informal sector or black market, or aU 
“micro” or small and even medium- 
sized enterprises - that It is impossible 
to readily s ummarise its characteristics. 

“It is unfortunate that jua kali is 
sometimes used to mean something 
sub-standard," says Mr Mutua. “These 
workers serve a big proportion of the 
population. They are an important 
source of quality employment and a 
nursery for larger businesses.” 

However, it is a sector that Is little 


informal economy 

energy 
hot sun’ 

understood and defies easy enumera- 
tion. A study completed in March 
attempted for the first time to assess 
the significance of micro and small 
businesses within the country. The 
“Gemini” study ( Growth and equity 
through microenterprise investments and 
institutions) concluded that previous 
calculations had under-estimated the 
size by more than a third. 

I t suggested that there are 910,000 
such enterprises, occupying 2m peo- 
ple. many based in people’s homes 
and 99 per cent with one to 10 workers. 
Most are agriculturally-based and in 
rural areas. Nearly half are controlled 
by women, and few seek formal sources 
of credit They are adding 270,000 jobs a 
year, and 38 per cent are expanding. 

These figures are borne out by the 
work of a number of non-government 
organisations which have been provid- 
ing support to the sector. Promotion of 
Rural Initiatives and Development 
Enterprises (Pride) has been offering 
credit-support and training to the sector 
since the late 1980s. 

Jonathan Campaigns managing 
director, stresses that he sees himself as 
an entrepreneur first and that Pride’s 


activities are essentially commercial 
and profit-making. He despairs of the 
approach of some to encourage enter- 
prise. when he believes It is already 
available in abundance within the coun- 
try through the informal sector. 

An Increasing number of develop- 
ment agencies are now focusing atten- 
tion on the Informal sector, -including 
the US Agency for international Devel- 
opment - which helped fund the Gem- 
ini study - and the UK’s Overseas 
Development Administration. More con- 
troversially, the World Bank has 
approved a $24m programme 0! vouch- 
ers to assist training for the sector. 

“Recognition of the jua kali sector is 
overdone,” says Mr Mutua. “We are all 
crying for action.” He highlights three 
areas of greatest political need. T fee 
first is premises, and ways In which the 
authorities allocate and recognise land 
where workers can build workshops. T 
am convinced the shanties In the cities 
would disappear if they were given 
land," he says. 

The second is licensing. “There needs 
to be streamlining to recognise the 
needs of the sector, rathe* than two or 
three different departments with con- 
tradictory requirements,” he says, 
adding that licences are generally seen 
simply as a costly hindrance to marry 
traders. 

Third Is what he calls measures to 
develop as “enabling environment" for 
the sector incentives, financial support 
anti red-tape measures and legislation 
to tackle hindrances to the support of 
empn bu s i n ess. Other than that, he 
says, government might do best to 
“leave well alone”. 





Kenya has a lot to be proud of. 


Amongst African nations, Kenya has long 
been at the helm, taking initiatives which will create a worthwhile heritage for our 
children. Today, the National bank of Kenya is taking initiatives which will one day 
make Kenya a beacon of aspiration to all the peoples of this great continent. 
National bank of Kenya. We have a vision of Kenya’s future. 


Over 100 
branches in 
20 countries 
throughout 
Africa 


PRINCIPAL OFFICE AFRICA: 

MERIDIEN BIAO,*, Mcrkttci. Centre, 10S4S Ben Bella Road, PO Box 371SS, Lusaka. ZAMBIA. 
Teb I 229411/31. Fax: 1 236499. Telex: 40327 MIBAFZA 
BANKS IN AFRICA: 

BU r^— 

IN EUROPE: 

MERIDIEN BIAO BANK GmbH; HAMBURG 
OTHER UNITS: 

CREDIT CORPORATION LIMITED; LONDON 
MERIDIEN INTERNATIONAL FUNDING CORPORATION; NEW YORK 
SOFIMER KH PARIS. OTHER OFFICES-. ABIDJAN & JOHANNESBURG 


MERIDIEN BIAO 

The Pan African Banking Network 


: x i_-v 


-SIS