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Cable & Wireless 
on verge of joint 
venture Jn China 

UK talpminn^TmlrWlferiB grrrap Cable A- 

claims to be an fh&VBrge.Qf a breakthrough in 
its bid to enter ttoCbinese market Chairman 
Lord Youzig said the company bad been designated 
by China's mhristxy of poet and 
“preferred partner" for joint ventures, the first 
of which could be agreed this year. Page 17; Lex, 
Page 16 

Hong Kong d awl opvi bW tows Hong Kong 
property developers acted together to arrange 
low bids at a public land auction, RhaTipnging 
the colony's government which has pledged to 
bring down soaring prices. Page 16; Patten sees 
new Manchester, Page 4; BBC TV returns to 
Hong Kong. Page 9 - 

BrJ; JapaieM spmuBng dr op as Household 
spending in Japan slipped 45 per cent in March, 
the worst year-on-year dechne since 1981. Page 16 

UK factory orders hit five-year high: UK 

companies reported the highest monthly level 
of factory orders for five years in May, providing 
fresh evidence that the nation’s economic recovery 
is helping the manufacturing sector. Page 16 

Deutsche Bank, Germany’s leading h ank , 

■.;> Is Hkely to reduce its stake in motor and engtoeer- 
ing company Daimler-Benz to 15-20 per cent during 
the next 10 years. Page 17 

''ij Banea Co mm er cla te ftaUana shares fen 

by 4-4 per cent on news that the recently privatised 
■ <5- Italian h ank wants to raise up to LSL362bn (£L4bn) 

- : c through an issue of shares and warrants. Page 17 

7V Eurotunnel, operator of the Channel tunnel, 

V->! sealed its long-term future by signing up an £85&3m 
($L29bn) rights issue and c omplet ing gfflftn of 
bank financing . Page 17; Lex, Page 16 

ij} 

: >• Shares In Trafalgar House fell 10 per rant 
. : alter the UK diversified group reported lower 
-C‘ than expected interim profits and said wwrgrna 
remained under severe pressure. Page 17 

UK to lift embargo on Israel: Britain said 
it would lift its 12-year embargo an arms sales 
to Israel and would consider similar action on 
1 Syria if progress continued towards a Middle 

- East peace settlement Page 8 

South Africa looks to arms sates: South 
Africa hopes to double arms exports over the 
next year following the lifting of a United Nations 
. : arms embargo which spurred the development 
■“ of a sophisticated arms industry. Page 4 

r.'.*x Germa ny outlines EU presidency p i n na e 

-J Germany outlined its strategy for its fnr thmnrtng 
fiU presidency, sayiAgitdvould seek to extend 
~ its campaign for internatinnal competitiveness. 

Page 2 

Russia cool over stability pact: Russia 

has given. a cool response to a French-inspired 

- stability pact designed to defuse ethnic and territo- 
'. riad disputes among aspiring members of the 

• European Union. Page 2 

South Yemen launches offensive: South 
■ Yemeni forces said they had launched an offensive 
' V to reclaim territory lost to northern forces during 
' three weeks of fighting. Page 4 

. \ - 4 - V, 

Algeria to mood creditor*: Algeria will meet 

- its jehief western creditors to Paris next Tuesday 
... to discuss the terms under which it will reschedule'! 

the $145bn lit owes to foa-eigu governments. Page 4 

Chile seeks free t r ad e dcah Chfle has put 

- the issue of a freefradedeal with the US- either 
as part of the North American Free Trade Agree- 
ment or a bilateral accord - back on top of its 
international agenda. Page 7; Gradual freeing 

; of capital. Page 6 

Manuscript fetches record price: A volume 
c ont a ining handwritten compositions hy l Tttw en- 

- tury composer Henry Purcell was sold for £276*500 

. ($414,750) by Southeby’s auctioneers. The price 

is a world record for a British music manuscript 

■ MONDAY fajt-gt takyVi^ege' : 


FINANCIAL TIMES 



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Delors urges EU to strive for ‘democratic Utopia’ 


By David Garcfcierin Brussels 

Mr Jacques Delors, president of the 
European Commission, yesterday railed 
an Europe to lift its sights towards a 
“democratic Utopia”, capable of provid- 
ing minimum social rig ht s for alL 

He warned that attempts to use reces- 
sion, Europe’s co m petiti v eness problems 
and the jobs crisis as an excuse to dis- 
mantle “the European model" ctf «vHai 
protection would destroy centuries of 
striving towards “a balanced society”. 

However, in an elliptical speech, which 
centred as much cm public morality as 
on policy, Mr Delors was also dismissive 
of those opposed to any reform of 


Europe's social and welfare arrange- 
ments. 

“We have to get away from the battle 
between those who don’t want to change 
anything simply because of tradition, 
and those who want to do away with 150 
years of social progress,” he said. 

Mr Delors 1 unscripted remarks - made 
to a public seminar before the publica- 
tion of the Commission’s white papa: on 
the future of EU social policy, expected 
in July - were expressed with a force 
not used since before the December 1991 
summit which agreed the Maastricht 


The Commission president, who ends 
his turbulent 10-year tenure In Brussels 


next January, said those who say 
Europe’s welfare system Is holding hack 
growth have forgotten that the three 
recessions of the past 20 years could 
have degenerated into a 1930s- type 
depression if such protection had not 
protected minimum incomes and 

flgtTumrt 

“Don’t throw the baby out with the 
bathwater,” he said 

Neither was protectionism a feasible 
or defensible way of preserving Euro- 
pean standards from lower-wage compet- 
itors in Asia and Latin America. 

“How would they buy from us?” Mr 
Delors asked arguing that “trade is not 
a one-way street, it is a two-way motor- 


way”. 

He revived the idea raised after last 
year’s chaos in European currency mar- 
kets for a UN-style “security council for 
the economy”, to manage economic and 
monetary shocks, and even cross-border 
problems such as sudden surges in emi- 
gration. 

Mr Deters said Europe was struggling 
to adapt to technological progress in 
terms of job creation and organisation, of 
working time. It was failing to get to 
grips with difficulties ranging from an 
ageing population and healthcare costs, 
to youth unemployment, racism, the dis- 
integration of the frailly and loneliness. 
AD this, Mr Delors waffl , was “a problem 


of society's soul”. 

But “there is a European model of 
society”, he believed, ami it had to be 
developed more into “a system balanc- 
ing obligations and rights”. He implied 
that some payment of unemployment 
benefit could be linked to the provision 
of services which meet public 
needs. 

“We have to rehabilitate the idea of 
public service,” he argued and “we have 
to enrich our social system”. 

Mr Delors insisted: “It Is not by back- 
tracking on social policy that we will 
resolve our problems. I would call what I 
am suggesting a democratic Utopia, but 
it is not unattainable.” 


Pilkington bows 
to US pressure on 
process licensing 


By George Gfraham in 
Washington and Andrew Taylor 
in London 

Pilkingtan, the UK glass maker, 
yesterday agreed to make 
far-reaching changes in its tech- 
nology Kr wmni g policy in what is 
the first application of an aggres- 
sive US anti-trnst policy beyond 
US borders. 

The company agreed with the 
US Justice Department to end 
restrictions on licensees for the 
use of its float glare technology, 
which has kept Pilkington at the 
top of the world plate glass 
industry for 30 years. 

The Justice Department said 
the agreement, which must still 
be approved by a US federal 
judge, would, "break, a. licensmg 
stranglehold on glass . manufac-I 
taring that kept American 
panics from designing and build- 
ing glassmaking plants 
overseas”. - ■ ' ■ 

Pilkington said the agreement 
“would have no material 
impact”, apart from, the potential 
loss of less than film ($L5m) a 
year in licensing fees. However, 


the case sets a precedent for the 
ability of the US government to 
influence of foreign companies in 
international markets. 

“We are satisfied with this 
arrangement which protects a 
large body of technology devel- 
oped by the group,” said Sir 
Robin Nicholson, the company’s 
technology director. 

Pilkington earned pretax prof- 
its of £40.7m on sales of £2Jbn 
dming the year to March 31 1993. 
Of this, about fMm is thought to 
have come from licence fees. 
PDktogton’s shares rose l%p to 
188p in London yesterday. 

Accordlng to the UK company, 
the agreement means that US 
glass makers using pre-1983 tech- 
nology under licence from Pilk- 
ingtan will now be able to sub- 
Hceos^ Vtije-'lechnology to any 
f,' Subject to cer- 
, confidentiality agreements, 
ton said it retains the 
rights to later technology not 
subject to licence agreements 
with US companies. The deal 
averts a potentially costly battle 
in the US courts, althnngh PUk- 
rngtnn still faces several civil 


suits brought against it by US 
companies. 

Justice Department officials 
said the settlement could wnw* 
US companies to win c on tracts 
tor as many as half of the esti- 
mated 50 new plate glass plants 
that are espected to be built over 
the next six years, mostly in east 
era Europe and southeast Asia, 
and increase US exports by up to 
$L25bn over the same period. 

The case represents not only a 
new aggressiveness in the Clin- 
ton administration’s enforcement 
of anti-trust law but also a new 
willingness to pursue claims 
against companies outside the 
US. 

The Justice Department said 
Pilkington had Imposed tough 
restraints on which 

bought licences -iSr its. te&gpk 
ogy; It allegedly limited them to 
specific coxmtrles.restricted'ft*- 1 
ability to snb-hcense the technol- 
ogy and required them to report 
back to Pilkington all improve- 
ments they made in the commer- 
cial float glass process. 

Pilkington advantages. Page 6 


Austrian 
consortium 
bids for 
bank stake 

By Ian Rodger In Zurich 

The struggle to privatise 
Credltanstalt-Bankverem, Aus- 
tria’s second largest bank, moved 
into a decisive phase yesterday 
as a consortium of leading Aus- 
trian financial and industrial 
companies offered Sch7.2bn 
($626m) for just over half the gov- 
ernment’s 70 per cent voting 
stake in the bank. 

The consortium was assembled 
quickly in the last few weeks to 
counter a bid by the Swiss CS 
Holding financial group that had 
the apparent support off Mr Ferd- 
inand Lactna, the Socialist 

finance minister . 

Mr Larina has argued that Cre- 
ditanstalt needs a strong strate- 
gic partner. But politicians and 
business leaders close to the con- 


Mrs Maria Schanmayer, the 
rtdely respected president of the 
Austrian National Bank, said in 
n interview last week that Qre- 
TtflMRtait “must sail under the 
Lustrian flag, not the Swiss one.” 

The consortium is led by EA- 
■enerali, the insurance group, 
nd First Austrian, a large 
lenna savings bank, ft includes 
8 blue-chip industrial compa- 
lies. such as Bran-Union, Por- 
che, Hade*, SwarovsM and Con- 
tantia, as well as some 
T riHwntifled private individuals. 

The consortium immediately 


Continued on Page 16 
BCZ capital raising. Page 17 


China liberalises 
in drive to join 
world trade body 


By Tony Walker in Beipng-and 
Louise Lucas to Hong Kong 

China launched a determined 
drive yesterday for admission to 
the World Trade Organisation, 
the successor body to the General 
Agreement on Tariffs and Trade, 
by removing import licences and 
quotas on 195 items. It pledged 
further liberalisation. 

The announcement came 
before an expected US renewal of 
China’s trading status as a Most 
Favoured Nation by President 
Bill Clinton. That imminent deci- 
sion. was welcomed 1 by Mr Peter 
Sutherland, director-general of 
Gait, speaking in Hong Kong yes- 
terday. 

China has stated its desire to 
be a founder member of the 
WTO, expected to be established 
on January 1 to replace the Gatt 
The country was a Gatt founder 
member but left the body after 
the communists came to power in 
1948. 

In spite of the liberalisation 
package yesterday, quotas and 
licensing restrictions still apply 
to more than 700 products, but 
Ghma says, it would phase out 
half of those restrictions 
under an existing accord with the 
US. 

Mr Long. Yongtu, China's rfrirf 
Gatt negotiator. Is due to visit 
Europe and the US for Gatt dis- 
cussions next week. He will go 
first to Brussels, then to Wash- 
ington, where Gatt talks are 
scheduled on June 3, the deadline 
for US renewal of China’s MFN 
status^ i 

Mr Sutherland _ recently 


returned from Beijing, where he 
apparently found willingness to 
wipgt Galt’s entry requirements 
and considerable work remaining 
to be carried out to meet its 
requirements. 

“Gatt has no responsibility in 
the area of political issues which 
underly the issue of MFN status, 
hut the MFN decision has an 
indirect effect an the negotiations 
because MFN policy is relevant 
to Gatt members,” Mr Sutherland 


To secure Gatt membership, he 
said, China imri to improve the 
transparency of its easting trade 
regime, demonstrate uniformity 
in applying those laws, clarify 
how its trading companies oper- 
ate, and elucidate tariff and non- 
tariff barriers. 

But Mr Sutherland emphasised 


been taken in both trade and for- 
eign exchange regimes. While 
questioning China’s ability to 
become a member by January l, 
he was confident that the WTO 
itself would be in place on sched- 
ule. 

“I believe Mr CKnton is abso- 
lutely committed to the January 
1 date, and I believe it’s very 
important that the US as a lead- 
ing teading country with an abso- 
lute interest in the development 
of the multilateral system tfro nid 
provide leadership in this area, 
and it seems it is determined to 
do so.” 

He added: T would consider it 
inconceivable that the US would 
retard the progress of something 
not just desirable for the world as 
a whole, but for the US itself.” 


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Russian foreign minister Andrei Kozyrev in Paris where he gave a 
cool response to a French pact aimed at resolving ethnic and territo- 
rial disinttes among aspiring EU members. Report, Page 2 nmcAP 


PC screen 
text fails 
the test of 
readability 

By Alan Cana In London 

If yon find it hard to read words 
on a personal computer screen, 
yon are in good company. 

A leading US-based c o mputer 
scientist warned last night that 
even the best of today’s personal 
computer screens conld not dis- 
play extended text, such as news- 
paper articles or encyclopaedia 
entries, so they can be read in 
comfort. The better a reader you 
are, he said, the more difficulty 
you will experience in reading 
from a screen. 

Mr Alan Kay, widely credited 
as the inspiration behind many 
of the best known features of 
PCs FnchHtfag screen “windows” 
and the “mouse” pointing 
device, said the discovery called 
Into question the use of comput- 
ers for teaching reading. 

He said: “It Is almost a crime 
to put computers into schools to 
teach reading because nothing is 
mare antagonistic to the act of 
reading than a conventional 
computer screen”. It also raises 
questions about the suitability of 
PC technology for on-line text 
retrieval and other information 
and entertainment services. 

Mr Kay, formerly a top scien- 
tist for Xerox and now research 
fellow at Apple Computer, was 
giving the sixth Charles Read 
Memorial lecture in London. 

Mr Kay’s conclusions were 
based on experiments carried out 
using equipment built for the US 
space programme and capable of 


Continued on Page 16 


O THE FINANCIAL TIMES LIMIT ED 1994 No 32,377 Week No 2 T_ 


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'FINANCIAL TIMES FRIDAY MAY 27 1994 


NEWS: EUROPE 


Kozyrev cool on plan to defuse ethnic disputes in Europe 


Russia rejects French initiative 


By Anthony Robinson and 
David Buchan hi Parts 

Europe’s latest exercise in 
preventative diplomacy, a 
French-inspired stability pact 
designed to defuse ethnic mid 
territorial disputes among 
aspiring members of the Euro- 
pean Union, received a cool 
response from Russia at its 
conference launch yesterday. 

Mr Andrei Kozyrev, the Rus- 
sian foreign minister, wel- 
comed what he called "yet 
another attempt” to come to 
grips with "signs of aggressive 
nationalism, xenophobia and 
ethnic and religious intoler- 
ance." But he then underlined 
that "the decisive role” in con- 
structing a new Europe with. 
Russian participation should 
be played by the 62-Nation 
Conference on Security and 
Cooperation in Europe (CSCE) 
and Nato's "Partnership for 
Peace (PFP)". 

In a speech which reinforced 
the call for a new European 
security order by General 
Pavel Grachev, the Russian 
defence minister at this week's 


Balladur and Kohl call for wider Euro-summits 


Prime Minister Edouard Balladnr and 
Chancellor Helmut Kohl yesterday proposed 
that leaders of east European countries, once 
they have applied to join the European Union, 
should told a joint summit with their EU 
counterparts once a year, writes David Buchan. 

The proposal, contained in a jointly signed 
article in yesterday’s Le Blonde newspaper, 
was timed to eoindde with the opening in 
Paris yesterday of the French-sponsored 
“conference on stability in Europe" and to 
identify Germany closely with it The need 


for wider annual European summits and the 
stability conference initiative stem, according 
to the two men, from "a realisation that 
political stability is an essential condition 
for economic and social progress” in eastern 
Europe, “What would be the valne of the free 
trade and association agreements with central 
and eastern Europe, even their fhture 
membership of the European Union, if serious 
political crises, notably provoked by frontier 
and minority problems, were to put this 
p ro gress in question?” ask the two leaders. 


Nato meeting in Brussels, Mr 
Kozyrev said: “Enhancing the 
effectiveness of the CSCE, 
making it the supreme political 
organisation on the continent, 
is the key element in our pro- 
posed concept of European 
partnership.” 

The three former Soviet Bal- 
tic states were looking far a 
clear Russian commitment to 
the withdrawal of the remain- 
ing Russian troops and equip- 
ment from Fjfry nia anri Latvia. 
But Mr Kozyrev merely left 
open the possibility of Russian 


participation, in the proposed 
Baltic “round table”. This is 
designed as a forum to facili- 
tate an equitable solution to 
the protection of the rights of 
Russian and other minorities 
in the Baltic states and the 
total withdrawal of Russian 
forces. 

The Russian minister 
described the stability confer- 
ence as a “unique” process but 
noted that it involved the 12 
current and nine aspiring 
members of the EU but did 
"not create obliga- 


tions for states which are not 
directly involved in it” Russia, 
which this week agreed to join 
the Partnership for Peace, is 
not an applicant for EU mem- 
bership. 

For Russia to participate in 
the round table’s work he 

marip plp^ r that it ahnnlri not 
dwell on the military aspects 
but “concentrate on specific 
steps to improve inter-ethnic 
relations and to ensure the 
rights of national minorities... 
especially in Estonia, Latvia 
and Lithuania.” 


The military and political 
dimensions of Europe’s secu- 
rity, he said “s hould find Its 
place within a framework of 
broader efforts" than the EU- 
sponsored security pact confer- 
ence. “We attach serious signif- 
icance to the forthcoming Ist- 
anbul minis terial meeting Of 

the North Atlantic Coopera- 
tion Council (NACC)," he 
added. 

The main focus of the pro- 
posed security pad, as outimed 
by Mr Edouard Balladur, the 
French prime minister, in his 
opening statement is to resolve 
contentious «fchnif» and border 
issues and prevent future 
Yugos Lav-style eruptions. But 
the foreign ministers of 
Poland, the Czech republic and 
other central European and 
Baltic participants rejected 
su ggestions tha t eastern Euro- 
pean countries that want to 
join the EU be subjected to spe- 
cial treatment with regard to 
minority rights but be subject 
to what Mr Andrzej Ole- 
chows ki, Poland’s foreign min- 
ister, described as “accepted 
pan-European standards.” 


Rexrodt outlines EU presidency plans 


By Quentin Reel hi Bonn 

Germany will seek to extend 
its own campaign for interna- 
tional competitiveness to the 
whole of the European Union 
this year, inrindinp promotion 
of more flexibility in labour 
markets, and a concerted push 
for deregulation. 

That was the strategy out- 
lined yesterday by Mr Gtinter 
Rexrodt, economics minister, 
for the forthcoming six-month 
German presidency of the EU. 

He set out a five-point eco- 
nomic programme focused pri- 
marily on free-market policies 
to stimulate growth and 
counter unemployment, includ- 
ing a controversial proposal for 
an independent team of busi- 
ness experts to test all EU reg- 
ulations for unnecessary bur- 
dens on companies and 
consumers. 

The idea for an independent 
working group, sharply critic- 
ised by Mr Jacques Delors, 
European commission presi- 


dent, is the main plank of Mr 
Rexrodt ’s deregulation initia- 
tive intended to slim the Brus- 
sels bureaucracy. 

At the same time to is pro- 
posing a concerted posh to 
implement EU action plan 
for Job creation and growth, 
concentrating on promoting 
more flexibility in labour mar- 
kets, and improved tax incen- 
tives for job creation. 

He promised a push to 
remove national barriers to a 
single energy market in the 12 
member states, both for gas 
and electricity, intended to 
give consumers and distribu- 
tors access to competitive 
energy sources. 

He proposed steps to speed 
the creation of an in te grated 
information network in the 
EU, reducing legal barriers to 
the exchange of d»fa> and infor- 
mation, and encouragement For 
private initiatives to extend 
Information networks on the 
basis Of private financing . 

The fifth dement in Ids pres- 



Mr Rflntor gePOdt fhraprtlnfr xrmwmik | » m gr a i ii rn. 


idency strategy is to provide 
greater market opening for the 
states of central and eastern 
Europe. 

That would indraft* the con- 
clusion of free trade agree- 
ments with the Raiijc republics 
during the second half of the 
year, and a Europe agreement 
with Slovenia. < 


Mr Rexrodt said that formal 
EU membership negotiations 
with Poland and Hungary, the 
two central European states to 
submit formal applications, 
could only begin once the EU 
itself had agreed on the next 
round of institutional r ef o rms 
scheduled for . 1996u 
In the meantime, further 


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market-opening measures were 
needed, and restraint on the 
part of the EU in instituting 
anti-dumping and other protec- 
tion measures against the cen- 
tral and east Europeans. 

Mr Rexrodt* s strategy is one 
element of a concerted German 
presidency programme still 
being finalised by the various 
German ministries, before 
Bonn takes over the EU presi- 
dency on July 1- 

The six-month period will 
involve the installation of a 
new European parliament and 
the approval of a new Euro- 
pean Commission, Including a 
r edis tribution of Commission 
portfolios - all matters of 
acute political sensitivity. 

Apart from the economic 
strategy, the presidency will 
focus on developing common 
foreign and security policies, 
and preparing the ground for 
the 1996 inter-governmental 
conference on institutional 
reform. ' 


Renewed 

drachma 

pressure 

expected 

By Kerin Hope in Athens 

The Greek drachma may coma 
under heavy pressure today as 
speculation mounts that the 
government will be forced to 
trim interest rates next week. 

It declined against the 
D-Mark yesterday, dosing at 
DrlSO.l, against Drl47.5 the 
previous day. It was also down 
against the US dollar, dosing 
at Di-246.4 (Dr244.4). Dealers 
said the central bank spent 
a bo at $300 m to support the 
currency yesterday, its first 
large in ter ve nti on this week. 
The bank is estimated to have 
lost around 16 per cent of its 
foreign exchange reserves dur- 
ing the two-week battle to 
defend the drachma. 

However, yesterday’s decline 
indicated the government 
intends to abandon its “hard 
drachma” policy and allow the 
currency to depredate at a fas- 
ter rate than the 7-8 per cent 
projected for this year. 

This would relieve pressure 
which has shown no sign of 
abating since the government 
lifted capital controls on May 
16. At the same time, it would 
enable the governing Social- 
ists to avoid the heavy politi- 
cal cost of a formal devalua- 
tion just before the European 
parliament elections. 

One dealer said: “It's dear 
that short-term interest rates 
of over 100 per cent have been 
asphyxiating the banking sys- 
tem and taster depreciation is 
one way to bring them down.” 

Short-term rates have been 
fluctuating between 70 and 
500 per cent The overnight 
borrowing rate this week 
reached 300 per cent, creating 
serious liquidity problems for 
smaller banks. 

In an effort to inject some 
liquidity into the system, the 
central bank is to hold a swap 
auction today for the first time 
In more than two years. This 
will allow banks to borrow 
drachmas against foreign cur- 
rency from the central bank at 
lower rates than those prevail- 
ing on the inter-bank market 
The liquidity squeeze, which 
has forced banks to raise cor- 
porate lending rates above 40 
per cent, is also threatening 
government revenues, as com- 
panies are preparing to post- 
pone VAT payments due at the 
end of the month in order to 
maintain cash-flow. 


EUROPEAN NEWS DIGEST 


Fi nn s set date 
for referendum 
on EU entry 

Finland yesterday decided to told its referendum on European 
Union membership on October 16, making it the first of the 
three Nordic applicants to hold a vote on the Issue.. Sweden 
holds its referendum on November 13 and Norway on Novem- 
ber 28. The east-west voting sequence is seen as 'the best way 
of getting aQ three countries Into the EU because support for 
membership is strongest in Finland and weakest in Norway. 
Public opinion in both Sweden and Norway remains against 
membership, althoug h polls show the “yes" vote increasing if 
neighbours vote in favour. The three Nordic states and Aus- 
tria. are to join the, mrinw next . Tanner y. 

The choice of October 16 represents a setback for Mr Esko 
Aho, Finland’s prime minister, who had wanted the referen- 
dum to be cm the same day as Sweden’s. But he was opposed 
by President Marti! Afatisaarl and the Conservative party, the 
second largest in the coalition government They both wanted 
September or early October. Mr Aho’s Centre party is split 
over Europe as much of its support comes from the farming 
community; agriculture has become the wuiln issue in the 
debate because tenners face overnight adjustment to EU price 
levels. The government yesterday tried to soften the blow by 
announcing a support package for the terming and food pro- 
cessing industries. Christopher Brown-Humes. Stockholm 

Swedish interest rate switch 

Sweden yesterday revised its system for steering short-term 
interest rates in an effort to achieve greater flexibility in. 
monetary policy. The move, which brings Swedish practice in 
line with that of other European central banks, coincided with 
a marginal reduction in tiie country’s main interest rate, 
which foil from 7 per emit to 6.95 per cent Under the new 
system, the nflnftank, the central bank, wifi replace its key 
marginal rate with a repurchase (repo) rate as its main inter- 
est rate policy instrument The repo will lie between a lending 
rate and a deposit rate following the German practice where 
tiie Hkmmt rate acts as a floor and the Lombar d as a soiling 
for interest rates. The Riksbank ban fixed the landing rate at 
7.5 pa* cent and the discount at 6 per cent, with, effect from 
June 1. The repo rate will be 645 per cent Markets reacted 
positively to the news, marking bond yields lower and the 
krona higher. Christopher Broum-Bumes 

Bosnian factions end talks 

International mediators yesterday ended two days of talks 
with Bosnia’s warring factions with no apparent agreement on 
the future division of the former Yugoslav republic. However, 
sources dose to the talks in France said leaders of a new 
Moslem-Croatian federation and rebel Bosnian Serbs had 
agreed to meet again with a “contact group” from the US 
Russia and the European Union in a week to 10 days’ time. 
They «dd Hu folks, at which the factio ns did not meet 
face-to-face, focused on the carve-up of territory between the 
federation and the heavily-armed Sobs, who currently control 
70 per cent Earlier the Croatian news agency reported that 
the Groats and Modems had “partly accepted” a mediators' 
proposal giving them 61 per cent Reuter, Sarajevo 

Estonia in banking advance 

Estonia has become the first of the forme - Soviet states to 
introduce electronic hanking. Economic refonn ' throughout 
the region has been hobbled by its antiquated hanking system. 
T ransactions take more than three wwnfl« J forcing many 
businesses and individuals to resort to cash and barter deals. 
Rstania, which tn 1991 launche d the most radical market 
reform programme in the region, has now entered the elec- 
tronic hanking era. Four automatic teller machines operating 
24 hours a day were opened last week and tens aZ thousands of 
citizens have been invited to apply for credit cards winch are 
already accepted by more than 250 Estonian merchants. Credit 
cards are commonplace among the Soviet Union’s lavishly 
wealthy but tiny elite. However, Estonia is the first former 
Soviet republic to bring credit cards and cash machines to the 
masses. Chrystia Freeland. 

Bank fends off escudo attack 

Pressure on the Portuguese escudo eased yesterday after the 
central bank intervened on the foreign exchange market to 
protect the currency from a second attack by speculators in 
less than two months. The currency fell to a low of EslOifi to 
toe D-Mark on Wednesday from Esl03.2 and rallied yesterday 
to close at EsIOtO. Overnight money market rates rase from U 
per cent before the attack to 30 per cent yesterday but fell 
back to 12 per cent as speculation against the currency sub- 
sided. After announcing large purchases of escudos on 
Wednesday, the central bank changed tactics yesterday by 
suspending its money market intervention and emergency 
lending rates. Peter Wise, Lisbon 

Abortion vote in Germany 

The German parliament yesterday narrowly approved a law 
which proposes prison sentences of up to two years for people 
who encourage an abortion. The 264-260 vote in the lower 
house of pa r li am en t marks tire latest chapter in the Utter feud 
about how to reconcile differing abortion regimes in east and 
west Germany. The new law, which mil be debated in the 
Bondesrat on July 8, allows abortion up to the 12th week of 
pregnancy tf the mother has been to a series of legal, social 
and medical consultations laid down by the constitutional 
court last year. Midtael Lmdemarm, Bonn 

ECONOMIC WATCH 


W German inflation below 3% 

The inflation rate in west 

W ewto ni Germany? fofiation Germany sank below 3 per 
. \ cent in May for the first time 

Awlit cfcange tvGFr- ■ ?■ ; ■ - in more than three years, the 
A0 ; ■ rr— v- ’ . * federal statistics office 
■a i-- ■* * ‘ ' 2 reported yesterday. The provi- 

— ft- — stonal figure of 23 per cent 

I : / \ Li for the annual rate of 

’ . K nf 1 'r: increase in consumer prices 

• • I U V in the west confirms a steady ; 

I I 1/ ' . ; V - . trend which has seen the rate 

as r-r- v - .- ■ come down from 3A per cent 

.1 : f v- v . : * . V.. in January and February, to 

an — j ' >.c?'-.v‘V : 3.2 per cent in March and 3.1 

./" ; " - ‘ *' Per cent in ApriL The figure 

' ,. : "r Is the lowest since April 1991, 
45 . - when it was 2.8 per cent 

■- ' Since then it has been fuelled 

: by a series of high wage rises, 
reaching an average of 42 per cent for 1993 as a whole, the 
highest rate since 1982. Economists now expect a contouring 
decline during the year, thanks to a series of moderate wage 
increases in the latest pay round. Mr Hans Tietmeyer, Bundes- 
bank president, has forecast that it will fell below 2 per emit 
early in 1996- Quentin Feei Bom 

■ Finland's central bank yesterday adjusted its tauter rate, 
the key rate governing commercial banks' borrowing with the 
central bank, to 5 J. per cent from 4A2 per cent The rate was 
last changed on May 9, when it was lowered to from 495 per 
cent 

■ Italian wage inflation stood at an annua] 2*> per cent in 
April after 2 A per cent in March, the national sto&flca office 
said. The April rise compares with an annual growth of 4.1 per 
cent in consumer prices the same montiL 

■ Norway's registered unemployment rate fell to 4£ per cot 
to late May from 5.1 par cent at the end of April, toe country’s 
labour directorate reported. 


qjsJ.i :1‘, in 

■m 


Failure in 
steel crisis 
undermines 
Van Miert 


By Lionel Barber and Emma 
Tucker h Brussels 

Once he was acclaimed as the 
rising star of the European 
Commission. But less than a 
week after his surprise 
announcement that the Com- 
mission's 18-month-old rescue 
plan for toe steel industry was 
“dead", questions are mount- 
ing about the political jndg- 
mont of Mr Karel Van Miert, 
Belgian commissioner respon- 
sible for competition policy. 

Senior nfHrfais and fellow 
commissioners are confused by 
Mr Van Miert’s decision to 
-wash his hands of the steel cri- 
sis, and irritated that he 
remains unwilling to consider 
a new compromise. 

In Brussels yesterday, Mr 
Van Miert offered little hint ^ 
that he is ready to resume his ■ 
role as coarchitect of the steel 
plan, along with Mr Martin 
Bangamann, i n du stry commis- 
sioner. 

Privately, he is said to be 
still fuming over his defeat at a 
meeting of the Commission 
last Wednesday. 

Insiders say there were few 
signs of trouble when Mr Van 
Mart started with an appeal to 
allow the Italian government 
to provide state aid for the 
restructuring of the privately- 
owned Bresdani steel mm« in 
northern Italy. In his view, toe 
Italian reductions were the last 
hope of approaching toe rescue 
plan's target of a lferi tonne 
cot in capacity. 

However, Sir Leon Brtttan, 
the EITs chief trade negotiator 
and a former competition Gam- 
in missions - , said that the deal 
would he difficult to reconcile 
with European law. A second 
significant intervention came 
from Mr Peter Schnridhuber, 
the German budget commis- 
sioner. 

Mr Schnridhuber, a lawyer 
who usually votes with Mr Van 
Miert on competition matters, 
asked questions over Italian 

gpyg mmpnt ftrndmg which Mr 

Van Miert was unable to 
answer. The competition com- 
missioner was outvoted 11-4. 

What followed was either a . 
tantrum or a tactic afouM at 
pressuring industry to oonm up 
with fresh cuts in capacity. 
“The plan is dead," Mr Van 
Miert declared, “it is obvious 
we are not going to get near 
the target But don’t blame us. 

We tried.” _ 

In retrospect, officials say Mr 
Van Miert made several errors. 
First, he underestimated the 
legal difficulties of the ifalftn 
case, while overestimating how 
far he could push his (often 
successful) pragmatic approach 
to competition policy. 

Second, he (and Mr Bange- 
mann) failed to grasp the risks 
of a high-profile Commission 
intervention to tackle the steel 
industry crisis. 

Third, Mr Van Miert may 
have not been flexible enough 
about the 19m capacity target 
Some officials believe that an 
improving steel market may 
have rendered the figure obso- 
lete - particularly in toe light 
of toe private sector’s contin- 
ued reservations about the res- 
cue plan. On the other hand, 
any move to abandon the 19m 
target would call into question 
the entire plan. 

What Is to be done? One 
approach would be to proceed 
under Article 95 of the Euro- i 
peaxx Steel and Coal treaty 
which would allow state subsi- 
dies to be paid to companies. 

But this would require unani- 
mous support from the Council 
of Ministers, a long process 
with a dubious outcome. 

Whether Mr Van Miert 
changes course once again will 
depend on his own state of 
mind. Colleagues say they are 
baffled by his recent outburst, 
though one explanation is that 
he fears Mr Jean-Lac Dehaene. 
Belgian prime minister, will 
succeed Mr Jacques Delors as 
president of the next European 
Commlssiai - an appointment 
which would cost him his job. 


! gt 



DENMARK 

PhnnciJ Ttaa (Samfinvia) ( 44 , i w . 
du&sd 42A. DK-na CnofonK. Tefc- 
f*«33 134441, Fix. B91SJ JS. 










FINANCIAL TIMES FRIDAY MAY 27 1994 


NEWS: EUROPE 


.1, * * i 

*" • 




A fox among the Socialist pussycats 

Nicholas Denton on Gyula Horn, a one-time hardline communist 
heading for power in Hungary and espousing orthodox economics 


.U-. 1 


*. ii' 1 ^porting a head band which reads “on strike", one of L 000 nurses who protested in Paris 
• _ r yesterday over a new health law and for better workmgamditkms 


S o gaffing; youthful and 
unthreatenisg are Hun- 
gary's Socialist party 
leaders that a liberal weekly 
catchlmed its cover picture of 
them with the phrase “Pink 
pussycats". 

That was after the former 
communists took a command- 
ing lead with 33 per cent of the 
vote in the first round of this 
month’s parliamentary elec- 
tions. Now the Hungarian 
Socialist party is poised for a 
landslide in the runoff vote 
this Sunday. The Socialists are 
sura to be the largest party. 
The only question is whether 
they will have an absolute 
majority. 

Socialist politicians, 
although emb o ldened by their 
success, are stm purring sooth- 
ingly. They reject a return to 
the past, revenge against the 
conservatives who have gov- 
erned Hungary b1ti< * 1990 , 
reversal of conservative poli- 
cies such as compensation for 
property expropriated by the 
former regime. 

There 15 little in 

the party programme, let alone 
red-toothed communism. 
Socialists largely share the 
broad political consensus 
favouring membership of the 
European Union and Nato. A 
westerner commented to Mr 
Laszlo Bekesi, the left’s eco- 


nomic expert, that the Socialist 
orthodox economic programme 
could have been that of a right- 
wing party in western Europe. 
"Thank you." Mr Bekesi 
replied. 

The rev amp of the Socialist 
party encompasses more than 
policy pronouncements. Mr 
A ttifa Agh, a poHtipgl scientist 
and founder of the party In 
1989, says the average age of 
Socialist party members is 40 

and only about haH’ of fhpm 
were formerly communists- it 
gives the Socialists same right 
to be irritated by thelabel of 
"former communists" that 
sticks to t hem so persistently. 

But one, rather distin- 
guished, Socialist cannot 
escape the description so eas- 
ily: Mr Gyula Horn, KL-year-old 
party leader and most likely 
tbw next prime wintor or at 
very least the power behind 
the premiership. 

Mr Horn was not in the 
photo of “pint pussycats" 
because he was in bed in hospi- 
tal at the time, his neck in a 
brace, recovering Cram a car 
acci d en t on the eve of the first 
round of voting. But the cap- 
tion does not suit him anyhow. 

The rbaftv^mniriwg Socialist 
leader’s age a«d demeanour 
are in sharp contrast not only 
to those of the younger vice- 
presidents of the party. His 


Polish counterpart. Mr Alek- 
sander Kwasnieski, 40-year-old 
Tpftdw of Poland’s SLD, wields 
a mobile phone and is more of 
a yuppie than a reconstructed 
communist. 

Mr Horn went to college in 
Rostov in the former Soviet 
Union and speaks Russian 
rather than Rn gHtK at interna- 
tional conferences. More 
embarrassingly, he wore the 
trademark “padded jacket’ of 
the volunteer militia which 
helped put down the 1956 
u prising against communis t 
rule. 

“You’ve got blood on your 
padded jacket." charges the 
graffiti on his election posters 
and a conservative newspaper 
editor called Mr Horn a “poten- 
tial killer". Government-run 
state television was more spe- 
cific. accusing the Socialist 
leader, without firm evidence, 
of kicking in the teeth of a 
counterrevolutionary prisoner. 

Those who knew Mr Horn 
later, in the early 1980s. when 
he was number two at the for- 
eign department of the central 
committee remember a “typi- 
cal product of the party sys- 
tem”. *T wouldn’t say he has 
changed very much." says one. 

Mr Horn certainly still has 
toughness of a hardened 
veteran of Communist party 
infighting. He is notorious for 


cutting interviews short if he 
does not like the fine of ques- 
tioning. He doffr his hat to no 
one. At a recent speech to for- 
eign investors in Budapest, the 
Socialist leader seemed dose to 
boredom, looking out of the 
window as he was speaking. 

Socialists prefer to skip 
quickly over Mr Horn’s early 
career to linger on his achieve- 
ments as foreign minister in 
the last communist govern- 
ment in 1989. He was the man 
who went to the western fron- 
tier with Austria and took the 
wireoutters to the Iron Cur- 
tain; Mr Hor n in hihiic ai fash- 
ion. set the east Germans free, 
allowing them to escape to the 
west through Hungary; and he 
began negotiations with 
Moscow on the withdrawal of 
Soviet troops. 

So which is the real Gyula 
Horn? He himself offers few 
dues. The Socialist leader says 
he has traversed the political 
spectrum from communist to 
reform communist to socialist 
but avoids any more precise 
expression of his political 
beliefs. “I view ideology as a 
private matter for people and it 
should not play a part in poli- 
tics," he says. It is statements 
like these which lead the 
Socialists' opponents to 
describe th*™, not as commu- 
nists, but as nihilists, believers 



Gyula Horn; skilful operator 
in nothing. 

A western diplomat gives 
another slant to Mr Horn's 
pragmatism. “He is not philo- 
sophical at alL Ob taining and 
exercising power Is what he 
likes. He's very bright, he's 
quick and he sees all the 
angles on The question 

is whether he loves democracy 
or not" 

It may not be a question of 
love. Mr Horn adapted success- 
fully to Stalinist oppression, 
reform communism and the 
upheavals of 1989 and 1990. He 
is just as skilful an operator in 
democracy: opinion polls con- 
sistently judge him Hungary's 
most popular party leader. Mr 
Laszlo Lengyel, a leading polit- 
ical commentator describes 
him, not as a pussycat, but as 
a fox. 


Bank threatens 
to seize Tapie’s 
furniture 


By Alice Rawsthom In Paris 

Mr Bernard Tapie, the French 
politician and entrepreneur, 
yesterday came under mount- 
ing financial pressure when 
Credit Lyonnais, his bank, 
threatened to seize his furni- 
ture and Paris townhonse 
unless he repays FFx450m 
(£52.4m) of his FFrL22bn debts. 

The threat follows a farcical 
sequence of events last week 
after the bank announced it 
was terminating its five-year 
debt repayment agreement 
with Mr Tfepie, a member -‘of 
parliament whose political star 
has risen with the success of 
Energie Radicale, his populist 
left-wing movement, in the 
European election cam paign. 

Credit Lyonnais last Friday 
sent a bailiff to make an inven- 
tory of the contents of 'Mr 
Tapie’s townhouse, only to be 
informed by its own private 
detectives that some of the 
most valuable objects had been 
removed the previous day. Mr 
Tapie claimed that he 
had lent his mother-in-law 
a few favourite pieces of furni- 
ture. 

However Mr Tapie’s prob- 
lems mounted this week when 
a Paris court asked for his par- 
liamentary immunity to be 
lifted so he can be Investigated 


for tax fraud concerning the 
purchase of his luxury yacht, 
the Phocda. The tax investiga- 
tion was tiie final straw far 
Credit Lyonnais, which sa id it 
feared that its claim on Mr 
Tapie’s assets could be weak- 
ened by culls from other credi- 
tors, notably the tax authori- 
ties. 

The hank demanded that Mr 
Tapie by next Thursday repay 
FFrffiOm of Ms debts, FFriOto 
of which was lent to him to 
buy the Phoc&a. 

if he fails to pay. Credit 
Lyonnais Will on the following 
day start legal proceedings to 
seize his furnit u re and to order 
the sale of his opulent town- 
house off Boulevard Saint-Ger- 
main. 

Mr Tapie has described 
Credit Lyonnais’s threats as 
part of an establishment plot 
against him He said yesterday 
he had instructed his 
lawyers to "do everything pos- 
sible to protect my legal 
rights". 

So far Mr Tapie’s financial 
and legal problems have 
helped, rather than hindered, 
Ms progress in the opinion 
polls. Energie Radicale has 
continued to gain ground from 
the established left-wing par- 
ties and now commands 10 per 
cent support. 


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FIN ANC1M. TIMES FRIDAY MAY 27 


s INTERNATIONAL 


South Africa 
aims to double 
arms exports 


By Patti Wakimeir and Mark 
Suzman in Johannesburg 

South Africa hopes to double 
arms exports over the next 
year following the lifting: of the 
United Nations arms embargo, 
which spurred previous gov- 
ernments to develop a sophisti- 
cated arms manufacturing 

Ttirtnj. ii'y, 

Mr TLelman de Waal, chief 
executive of Arascor, South 
Africa’s arms procurement 
agency, said yesterday the 
company could boost defence 
exports by more than Rlbn 
($270m) in the current fiscal 
year. 

His statement comes against 
a background of rails for sharp 
cuts in the defence budget to 
fund new spending on social 
services under President Nel- 
son Mandela’s reconstruction 
and development programme. 
Armscor is keen to demon- 
strate the defence industry can. 
generate as well as consume 
South Africa's scarce 
resources, and can earn foreign 
exchange from goods which 
are globally competitive. 

Armscor has come under 
increasing criticism since the 
new multi-racial government 
took over a fortnight ago, 
reflecting a new public aware- 
ness of moral arguments 
against arms exports. 

Mr de Waal noted, for exam- 
ple that South Africa sold a 
variety of weapons - rifles, 
grenades, mortars - worth 
RlOOm to Rwanda over a five- 
year period. 

He said the deal was termi- 
nated late last year because of 
evidence the weapons were 
used against the Rwandan peo- 
ple. In recent weeks, Rwandan 
Hufcus loyal to the gov er nment 
have been blamed for horrific 
slaughters of minority Tutsis 
and other Hutus that killed 


tens of thousands of people. 

Mr Feet Smith, Armscor gen- 
eral manager for imports and 
exports, said the new govern- 
ment’s policy permitted anus 
exports to countries only to 
defend their sovereignty and 
not where the weapons might 
be used to violate human 
rights. 

Despite anxieties about 
exports to the rest of Africa, 
South Africa’s urgent need for 
foreign exchange earnings, 
coupled with a desire to capi- 
talise on heavy spending on 
research and development dur- 
ing the apartheid era, will 
probably combine to protect 
Armscor’s activities in future. 

Selling more of its respected 
military hardware is the key to 
Armscor’s survival. Mr de 
Waal raid. The company cur- 
rently more than RSOOm of 
arms per year, which he said 
represented less than 0.5 per 

Cent Of thfi Inter n ational arms 

market 

Products that could sell well 
abroad include sophisticated 
Rooivalk helicopters, frequen- 
cy-hopping radio transmitters 
and receivers that avoid inter- 
ception, landmine-proof 
armoured vehicles, advanced 
mine detection equipment, and 
G-5 and G-8 long-range artil- 
lery. 

Mr de Waal identified Asia, 
the Middle East. Africa and 
Europe as potential markets. 
This will be eased by Tues- 
day’s UN Security Council 
decision to lift a mandatory 
ban on the sale of arms to 
South Africa. 

President Mandela said this 
week Pretoria should be 
allowed to sell weapons if it 
wanted to and Defence Minis- 
ter Joe Modise, a former guer- 
rilla fighter, said expanding 
weapons exports could create 
20,000 jobs. 


Patten sees a 
new Manchester 
in the east 


By Alexander Mcofl, 

Asia Editor 

Mr Chris Patten last night 
forecast a “spectacular future” 
for Hong Song provided that 
the 1984 Sino-British Joint 
Declaration, under which the 
territory will return to Chi- 
nese sovereignty in 1997, is 
tolly implemented. 

Speaking in Manchester’s 
Great Hall, he said: “It will 
play the role in relation to the 
Chinese economy which Man- 
chester played in the British 
Industrial revolution and 
which New York played In the 
opening up of the American 
continent” 

Bnt if the 1984 accord was 
not folly implemented, he 
said, the characteristics which 
made Hong Kong special 
would be in jeopardy. These, 
he said, were “the rule of law, 
a free press, a high level of 
resistance to corruption”. 

“Hong Kong wffl no longer 
be special and the potential 
offered by the historic ‘one 
country, two systems’ concept 
will have been squandered.” 

Mounting a spirited defence 
of Ins proposals far electoral 
reform, he poured scorn on 
suggestions - made by British 
businessmen and former diplo- 
mats - that Britain should opt 
for a “quiet life” since its lon- 
ger-term interest was in hav- 
ing good relations with China. 

Britain, he said, had huge 
investments in Hang Kong and 
large exports. “Securing Hong 
Kong's future, which is depen- 
dent on its special nature 
enduring indefinitely, is a 
dear national interest.” More- 
over, he said, there was “a 



w 


Chris Patten: spirited defence 
of electoral reform proposals 

place for integrity as well as 
Interests in foreign policy". 

Hong Kong - like Manches- 
ter, the governor said - had 
grown on the basis of free 
trade and open markets. But 
he detected growing protec- 
tionism in Europe and the US. 
Some tn Europe sought to jus- 
tify protectionism on the 
grounds that poorer countries 
did not have the same social 
infrastructure as Europe. 
“This amounts to the absurd 
and callous proposition that to 
be poor is somehow to have an 
unfair trade advantage,” 


Algeria to hear price of debt rescheduling 

Francis Ghiles previews talks next week with the Paris Club of official creditors 


Algeria will meet its chief 
western creditors is Paris next 
Tuesday to discuss the terms 
under which it will reschedule 
the Si45bn of its foreign, debt 
that it owes to foreign govern- 
ments. 

The principal debt repay- 
ments to be covered fall due 
between April i this year and 
March 31 next, the period cov- 
ered by the standby agreement 
Algeria reached with the Inter- 
national Monetary Fund last 
month, due to be approved by 
its board today. 

The repayments amount to 
an estimated S3.4bn, to which 
the Algerians might wish to 
add S800m in interest pay- 
ments due over the next year. 
Repayments would be spread 
over 15 years with eight years' 
grace. 

Algeria last reached agree- 
ment with the IMF three yearn 
ago. But circumstances have 
changed. The country's econ- 
omy has deteiorafced sharply 
as a result of the bloody civil 
strife winch followed the sus- 
pension of elections the Islamic 
Salvation Front was poised to 
win in January 1992, the 
decline in the price of oil and 
the government’s decision to 
reverse gear an reforms aimed 
at liberalising the economy 
launched in 2989 and 
suspended late in 1991. 

The new IMF agreement 
envisages a standby loan of 
S625m and contingency financ- 
ing of 8375m, extended because 
of the decline in the price of 
oil. Hydrocarbon exports 
account for more than 95 per 


Algerian debt: ch a n gi n g circumstance* 


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m lUitinh Utittm toifcwawtwnitivMrtffi 
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Sparer Bart or flprta 

cent of Algeria's foreign 
income. 

Among the measures 
included in the agreement and 
already implemented are: 

• A devaluation of the dinar. 
It is not clear whether further 
devaluations are required 
beyond the 40 per cent devalu- 
ation against the US dollar on 
April 10. the date the IMF 
received Algeria's letter of 
intent. 

• Dismantling the state 
monopoly on foreign trade. 
This has already led to the abo- 
lition of the ad hoc ministerial 
committee which, since July 
1992, has alow been entitled to 
decide on all requests for 
imports. Discrimination 
against imports by the private 
sector, which bare been such a 
feature of the past two years, 
have been aboh&ed. Exporters 
will be allowed to retain 50 per 


cent of earnings, in foreign 
currency accounts in Algeria. 

• Adjustments in the price of 
food and energy prices which 
were raised by 40 per cent 
before the dinar was devalued. 
Three key foodstuffs, semolina, 
flour and milk, have been 
exempted. 

• Liberalisation of prices of 
form inputs and fertilisers. 
Foodstuffs imports accounted 
for 25 per cent of last year's 
total import bill of S&Sbn. 

The stabilisation programme 
aims to reduce the budget defi- 
cit as a percentage of gross 
domestic product from last 
year's figure of 9.2 per cent to 
3.3 per cent One third of last 
year's budget deficit was 
accounted for by funds aimed 
at recapitalising loss-making 
state enterprises which were 
not restructured. 

The agreement also includes 


measures aimed at reducing 
monetary growth from 2L2 per 
cent last year to 14 per cent, 
and at containing salary 
increases, a sensitive Issue 
because the support of the 
trades union movement is seen 
as crucial in the battle against 
radical Moslem groups. 

Overall, the aim is to contain 
inflation to 30 per cent. Last 
year, inflation was officially 
measured at 208 per cent, a 
figure widely considered an 
underestimate, and was wors- 
ened by constant shortages 
and siphoning off into the 
black market of basic products. 

In a broads* sense, the agree- 
ment with the IMF alms to 
turn a real decline in gross 
domestic product of 2 per cent 
last year into a rise of 3 per 
cent in 1994 and 6 per cent in 
1995. thus increasing capacity 
utilisation in industry which 


was 50 per cent since 1990. 

Servicing its $24.7bn foreign 
debt, virtually all of which is 
medium- and long-term. last 
year represented 8$ per cent of 
Algeria’s export earnings, a fig- 
ure it hopes to bring down to 
less than 30 per cent 
After the talks with its Paris 
Club creditors, the Algerians 
will ask to meet their commer- 
cial bank creditors. Japanese 
banks, which hold more than 
half Algeria's commercial bank 
paper, are known to be 
unhappy about the prospect of 
a rescheduling but are playing 
their cards dose to the chest 
Overall, the restructuring 
should bring in S3.7bn from 
official creditors and 3800m 
from the commercial banks. 
The Algerians hope that the 
level of export credits does not 
fall far short of tSbn. The Euro- 
pean Union will commit 


EcuSSfln (cnOttk Ecu 150m of 
which la acrtwmad for by foe 
second tranche of a loan 
extended in September mi. 

The balance should be made 
up of World Bank and other 
multilateral agency Sending. 
The second tranche, worth 
*3»m of a Joint World Brofc- 
Jerim co-financing earmarked 
to reform the banking sector 
cwdd be drawn down quickly, 
Mr Ahmed Benbitour, the 
Algerian minister of finance, 
instated, in an interview, that 
“quick disbursement was vital 
to enure that the tUMreUs* 
tfon of foreign trade proceeds 
smoothly and that the 
exchange rate is kept steady.” 
He expressed confidence that 
film would be disbursed by the 
IMF. the World Bank and the 
HU before toe end of June. 

The attitude of toe French 
government to Algeria's debt 
problems has. over the past 
three years undergone a 
remarkable transformation, in 
1991. Paris showed little enthu- 
siasm. fot alone consistent sup- 
port, for toe government of Mr 
Mouloud Hamrouche. which 
brokered the boldest economic 
and political reforms ever wit- 
nessed tn Algeria. Today, lead- 
ing French ministers spare no 
effort in their support for toe 
Algerian regime. The French 
foreign minister, Mr Alain 
Juppe, brought up the issue 
when fas met US President Bill 
CUnton recently. 

French policy however is 
driven as much by four as by 
any hope that toe IMF package 
can be implemented. 


US sends 
famine 
mission to 
E Africa 

President Bill Clinton said 
yesterday he was sending a 
special delegation to examine 
conditions in East Africa, 
where a possible famine could 
threaten the lives of nearly 
20m people, Reuter reports 
from Washington. 

A White House statement 
said Mr Clinton had asked Mr 
Brian Atwood, administrator of 
the US Agency for Interna- 
tional Development, to head 
the bipartisan delegation 
including members of Congress 
and private organisations. 

The group would try to pre- 
vent wrings starvation in Ethio- 
pia, Eritrea and Kenya by 
investigating anH then raising 
and co-ordinating more help 
from global organisations. 

The crisis in the east Africa 
region threatens every nation 
in the region and is caused by 
drought conditions and civil 
conflicts,” the White House 
statement said. “At this early 
stage, it is still possible to 
avoid widespread famine, but 
an estimated 20m people are 
currently at risk and may have 
to leave their homes to search 
for food.” 

It said concerted regional 
and international action two 
years ago prevented a similar 
drought in southern Africa 
from becoming a severe fam- 
ine. 

“Our effort to head off the 
incipient famine will be both 
short- and long-term and wffl. 
help the nations of the region 
address what have become 
chronic food shortages." 

The delegation is to ftntrmne 
programmes sponsored by the 
US government and other 
donors in Ethiopia, Eritrea, 
and Kenya, and meet heads of 
state and government repre- 
sentatives. 

The current delegation will 
travel to Rome, Geneva, and 
Brussels to seek increased aid 
for east Africa. The White 
House said it would meet offi- 
cials of the World Food pro- 
gramme, the Food for Agricul- 
ture Organisation, the UN 
High Commissioner for Refu- 
gees and leaders of the Euro- 
pean Union. 



Rwanda militia pose for a picture at a check-point in Kigali yesterday. An estimated half million 
people, mainly of the Tutsi tribe and opponents of toe government, have been slaughtered In 
massacres blamed on such Hutu militia and government troops «***. 


Peace talks unlikely to heal Cambodia’s wounds 

Many think neither Phnom Penh nor Khmer Rouge wants a solution, Iain Simpson writes 


O oe year ago this week, the UN 

effort to bring peace to Cam- 
bodia reached its clingy as 
more than. 4m Cambodians braved 
monsoon rains and the threat of 
Khmer Rouge violence to vote in the 
country’s first free election. 

Today, despite widespread optimism 
am ong voters that they were casting 
their ballots for peace, the govern- 
ment is still fi ghting a low-intensity 
war against Khmer Rouge guerrillas 
who show no sign of giving up their 
struggle to retake power. 

The three top government leaders 
are due to arrive in Pyongyang, toe 
North Korean capital, today for peace 
talks with the Khmer Rouge. It is the 
first time the two sides have met for 
ijunwst six months. But few In Phnom 
toe talks wffl bring much 


As preparations for the talks go on, 
sporadic fighting continues in west 
era Cambodia, where 50,000 people 
have been, forced out of their homes 
by artillery barrages from both the 
Khmer Rouge and the government 
Aid workers say the future now 
looks bleak for many whose homes 
are in what is now a combat zone, 
whose prospects of returning to their 
villages in time to plou gh their fields 
for this year’s lire crop are slim. 

Many Cambodians believe neither 
the government nor the Khmer Rouge 
is seriously Interested in the search 
for peace. For the government, an end 
to war would bring new problems if it 
finally faced up to the need to demobi- 
lise almost half its armed forces. 

While they are fighting, the govern- 
ment can justify spending more than 
35 per cent of Its budget on defence. 


Once the fi ghting stops, the figures 
are likely to be scrutinised more care- 
fully by multilateral donors such as 
the IMF, which has just approved a 
new 8120m (£79Am) soft loan. 

For the Khmer Rouge, any peace 
settlement would have to include giv- 
ing up their guerrilla army and the 
territory they control, tantamount to 
giving up their struggle. Some ana- 
lysts believe the guerrillas are fight- 
ing only to improve their bargaining 
position ahead of talks: others say 
they aim to take complete control of 
Cambodia again. 

In recent fighting, the Khmer Rouge 
have shown they can defeat govern- 
ment forces with apparent ease. Mili- 
tary offloads say the reason for the 
guerrillas’ successes was the national 
army 's incompetence, rather than the 
strength of the Khmer Rouge. 


Even during that recent run of vic- 
tories, the Khmer Rouge did not maw. 
age to capture the town of Battam- 
bang. With a strength of 10.000-12,000, 
toe faction is unlikely to be able to 
capture, far less hold, any si g nifi cant 
towns. 

Minis ters are still trying to per- 
suade their allies in the west and 
South-East Asian countries to provide 
them with lethal military aid, fuelling 
the suspicion they have no interest in 
reaching a peace settlement with the 
Khmer Rouge. 

S ome diplomats believe Kin g 
Norodom Sihanouk, head of 
state, is alone in pushing for 
talks and a deal to bring the Khmer 
Rouge into the government in 
exchange for a ceasefire and relin- 
quishing the 10-15 per cent of the 


country the guerrillas control. 

Mr Hun Sen. junior prime minister, 
said he was “less than 0.1 per cent 
optimistic” about any progress during 
the five days of talks. On the govern- 
ment side, Mr Hun Sen is the main 
stumbling block to a deal with the 
Khmer Rouge. Senior prime minister 
Prince Ranariddh, also the son of 
King Sihanouk, has shown he is will- 
ing to make peace with toe Maoist 
guerrillas. 

Late last year. Prince Ranariddh 
twice flew to Bangkok for talks with 
the nominal leader of toe Khmer 
Rouge, Khieu Samphan. During these 
meetings, toe two men discussed 
terms for a ceasefire. But each time 
Prince Ranariddh returned emp- 
ty-handed. Few in Cambodia believe 
he win be any more successful this 
time. 


S Yemen 
in push to 
reclaim 
territory 

By Bte Watkins 
In Aden and 
RoMiABm in Dubai 

South Yemeni military officers 
have launched a counter-offen- 
sive to reclaim territory lost to 
northern forces during the 
past three weeks’ fighting, 
they said yesterday. Caught 
unprepared- for war, they 
claimed the sooth was now 
ready to break out of its defen- 
sive posture. 

The southerners were yester- 
day clearly in control of the 
region surrounding the key 
airbase of al-Anad, some 45 
miles north of Aden, as they 
continued to pound the base. 
Southern officers said there 
was no return artillery fire 
and claimed the northerners 
were in retreat 

Apparently frustrated by the 
failed advance on Aden, north- 
ern leader Gen AH Abdullah 
Saleh has opened up a new 
front in Shabwa Province, 240 
miles north-east of Aden. 

His aim, southern leaders 
say, is to capture their oil 
fields at Wadi Madia, about 
280 miles to the east 

Run by Canadian Occidental 
Petroleum, the Madia Fields 
produce 150,000 barrels a day, 
the south’s economic main- 


Southern leaders were 
apparently unruffled by the 
new challenge, saying north- 
ern forces are over-extended 
and vulnerable to a counter- 
thrust. 

Mr All Salem al-Beidh’s 
southern leadership is starting 
to fill positions for the new 
cabinet Prime minister-deslg- 
uate is Mr Haider Abo-Bakr 
al-Attas, prime minister of the 
former united Yemen before 
the south declared secession at 
the end of last week. The 
defence minister is expected to 
be Gen Harth em Qassem Taha, 
chief of staff of the southern 
army. 

New or confirmed appoint- 
ments for provincial governors 
Include Mr Ahmed Farid, 
owner of a Muscat-based con- 
tracting company. Desert Line 
Projects. Mr Farid's family 
comes from Shabwa, where 
last February he led a wen- 
publicised movement to oust 
northern units from the gover- 
nor's office. 

Members of the presidential 
council, apart from Mr al- 
Beidh, include Mr Salem Saleh 
Mohammed; the bead of the 
Sons of Yemen League, Mr 
Abdul Rahman All aWifri; toe 
former head of the Front for 
the Liberation of Occupied 
South Yemen (Flosy), Mr 
Abdul Kawi tonka wi: and Mr 
Suleiman Nasser Masood. 

Mr al-Jifri was an adviser to 
the former Sultan of LaheJ 
before toe British withdrew in 
1967. Mr al-Jifri has spent toe 
past 24 years managing a con- 
struction company in Saudi 
Arabia. Mr Makawl is an 
Adeni and a former trade 
union leader who has lived in 
Cairo for toe past 20 years. He 
was prime minister for a time 
under the British- inspired 
South Arabian Federation 
before leading the militant 
anti-British Flosy. 


Gabon is 
first to 
reschedule 
its debts 

Gabon has become the first 
member of the African "franc 
lone” to reschedule its com- 
mercial debt with all its exter- 
nal creditors, Peter John 
reports, lhe final piece of the 
country's FFrl?bn ($3bn) 
restructuring programme was 
put in plane yesterday when 
Finance Minister Marcel Dou- 
pamby Matoka signed an 
agreement in Paris with the 
London "dub” of commercial 
bank creditors. 

The deal, repayable aver 10 
years, represents some 5170m 
of debt. Gabon has already 
signed agreements with the 
Paris Club of sovereign credi- 
tors and thfi International Mon- 
etary Fund. Mr Thierry Desjar- 
dins of BNP, the French bank 
which officiated at the signing, 
said the move would boost toe 
country’s credit rating. 

It is expected to ease Gabon's 
ability to borrow when it is 
adjusting to the 50 per cent 
devaluation against the French 
franc by the zone's 14 member 
countries in January. The 
devaluation was one of the 
IMF’s principal conditions of 
the debt rescheduling deaL 

BNP is starting talks with 
Ivory Coast Congo and Camer- 
oon over their final restructur- 
ing. The talks are likely to be 
more protracted as these coun- 
tries have a far lower GDP per 
head than Gabon, one of 
Africa's oil-producing coun- 
tries and a big dbUar-earner. 

Bond is back 
io hospital 

Mr Alan Bond, the Australian 
busfruesanan. was hack in hos- 
pital yesterday after a nearcol- 
lspse during a brief appearance 
in Perth Magistrates Court, 
Nikki Tait reports from Syd- 
ney. 

According to Mr Andrew 
Fraser,- Mr Bond’s solicitor, 
doctors suggested that the for- 
mer tycoon, whose empire 
started to collapse under a pile 
of debts in toe late 1980s and 
who filed for personal bank- 
ruptcy In 1992, was showing 
signs of the beginning of a 
stroke. His lawyers lad applied 
to suspend a preliminary bear- 
ing over four art fraud charges. 

Ousted Hewson 
takes shadow post 

Mr John Hewson, ousted as 
leader of toe Australian opposi- 
tion Liberal party tote week, 
stays on as industry spokes- 
man in a 32-member shadow 

MrAtexander Downer, who 
took over from Mr Hewson as 
opposition leader on Monday, 
announced the new sllmmed- 
dowu Une-up yesterday. His 
deputy, Mr Peter Costello, 
becomes shadow treasurer. Mr 
Andrew Peacock and Mr John 
Howard will shadow foreign 
affairs and Industrial relations 
respectively. 

Mrs Bronwyn Bishop takes 
the shadow health portfolio. 
The former senator was tipped 
as a potential leadership con- 
tender until her showing to. 8 
by-trlection earlier this year. 



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6 


FINANCIAL TIMES FRIDAY 21.iW4 


ECGD 
restores 
cover for 
Brazil 

The British Export Credits 
Guarantee Department said 
yesterday it had resinned 
export credit insurance cover 
for Brazil, after a gap of 11 
years, Reuter reports. 

The decision followed a suc- 
cessful restructuring of Bra- 
zil's commercial bank debt 
and “encouraging progress 
with its economic stabilisation 
programme”, an ECGD state- 
ment said. 

“ECGD’s restoration of cover 
for Brazil will represent a 
whole new area of opportunity 
for British business,” said Mr 
Michael Heseltine, UK Trade 
and Industry Secretary. “Bra- 
zil is the ninth largest econ- 
omy in (he world and will be 
opening np even more now 
that the effects of the debt cri- 
sis are receding;” he said. 

Cover was withdrawn In 
1983 after substantial payment 
delays. Limited cover was 
resumed in 1989 bnt was 
suspended flimngt immediately 
when Brazil again stopped 
honouring Its defats. 

ECGD said cover would con- 
centrate on business with the 
Brazilian private sector. Some 
public sector organisations 
will be eligible if they can 
show their receipts of foreign 
exchange will cover payments. 

The ECGD activities will be 
concentrated on business 
which promotes Brazil’s eco- 
nomic rehabilitation. 

“Brazil is the 14th country 
for which ECGD has resumed 
cover over the last two years. 
The significant increase in the 
number of markets on cover, 
together with increased avail- 
ability of cover for major mar- 
kets and reductions In pre- 
mium, is giving British 
exporters greater opportuni- 
ties to compete for business 
overseas, and demonstrates 
this government's commit- 
ment to support UK companies 
in their export efforts”, the UK 
minister said. 

hi Sao Paulo: Brazil’s inflation 
fell to 44.66 per cent In May, 
compared to last month, an 
official at the Economic 
Research Institute said. The 
index, calculated by the Uni- 
versity of Sdo Paulo, measures 
inflation at weekly intervals. 


NEWS: THE AMERICAS 


George Graham reflects on the American initiative against a British glassmaker 

Washington’s new anti-trust 


T he US justice department’s 
anti-trust order yesterday 
against Pilkington, the British 
glassmaker, marks one of the first 
concrete results of the new vigour in 
anti-trust enforcement promised by 
the Clinton administration. 

The Pilkington suit - as a result of 
which the British company has 
agreed to end the restrictions it has 
imposed on licensees for its float glass 
technology - is the first big anti-trust 
suit brought In the US against a for- 
eign company since 1992, when the 
department reinstated an old policy 
which had allowed it to undertake 
broad actions against overseas 
companies. 

In 1988, the Reagan administration's 
justice department had announced 
that it would pursue anti-competitive 
conduct in foreign markets only when 


there was seen to be direct harm to 
US consumers. The 1992 reversal 
allowed the US also to pursue conduct 
that had harmed US exports. 

Besides marking a new aggressive- 
ness - which has otherwise been sym- 
bolised mostly by the present justice 
department’s determination to tackle 
the domination of the computer soft- 
ware industry by Microsoft - the Pilk- 
Ington suit also carries echoes of the 
Clinton administration's broader 
goals on industrial and competitive- 
ness policy. 

The principal goal of the suit, the 
department said, was to allow US 
companies to compete freely in over- 
seas markets, not so much for sales of 
plate glass itself but rather far the 
construction of an estimated 50 float 
glass plants which are expected to be 
built in regions such as eastern 


Europe and southeast Asia over the 
next decade. 

“Before this case was filed. US firms 
basically would have been locked out 
of this market entirely. Now that this 
consent decree has been filed, and 
hopefully alter It is approved, we 
think that as many as half of these 
plants could be built by US firms,” 
said Mr Robert Utan. deputy assis- 
tant attorney-general in the depart- 
ment’s arm-trust division. 

M r Utan said that the depart- 
ment had also challenged 
Pilkington's licensing 
agreements because they were imped- 
ing innovation by L*S companies, 
since they restricted the benefits a 
licensee could reap from any improve- 
ments to the technology it had devel- 
oped itself. 


As a sign that the Clinton adminis- 
tration sees anti-trust enforcement as 
a legitimate policy tool Tor Improving 
the efficiency of the IKS economy, 
rather than just a last resort against 
truly egregious examples of business 
collusion, the PUklngton suit could 
herald a number of new cases against 
both foreign and US companies. 

Ms Diane Wood, who heads the 
International anti-trust division at the 
justice department, said yesterday 
that the case would be regarded 
abroad as “a broad assertion of juris- 
diction” by the US. 

“We won’t bring these cases unless 
thee is a big impact in the US market 
and the company is present here in 
the US." she said. 

Anti-trust enforcement in general, 
under the Reagan administration of 
1981-89, was reduced to a bare mini- 


vigour 

sum. with the number of justice 
department investigations initiated 
under the major US monopoly, 
merger and restraint of trade acts 
dropping by half to two thirds of the 
rate during the Carter administration 
Of 1977-81. 

Under the Bush administration, 
which ended early tost year, the num- 
ber uf enforcement actions (hopped 
even further, although Mr William 
Barr, then the attorney-general took 
some steps to swing anti-trust policy 
back to earlier principles. 

Those steps included the 1992 rever- 
sal of the policy on the overseas reach 
of US action, a measure seen at the 
time mostly as a vehicle for attacking 
the cartel-llke practices of Japan's 
keiretsu groupings, but now Imple- 
mented for the first time against a UK 


Gradual W 
freeing 
of capital 1 
by Chile 

By Davfcf PRhVB In Santiago 

Chile will liberalise capita! 
movements by the end of the 
decade, allowing much greater 
flows in and out of the 
country, according to Mr 
Eduardo Aninat. the new 
finance minister. 

Mr Aninat said in tin Inter- 
view that Chile was not 
looking hr “hot money - or 
short-tarn money looking far 
the highwt return - to enter 
the stock exchange. At prmnt, 
fund* coming Into Chile cannot 
be repatriated for a year, 

“If you want to see why we 
don’t mom more rapidly, lock 
at the Marvel (shore I index hi 
Argentina, it te incredible - 
up, down, up, down - triples 
its value, halves Its value. I 
think that is horrible for 
domestic personal aavtnga." 

The one-year repatriation 
period has not put off 
long-term direct investors, 
inflows hum whom last year 
accounted for 4* per cent of 
Chile’s gross domestic product 
Many had not repatriated prof- 
its after a year but put them 
back into new investments 
locally, be said. 

Mr Aninat was also wary of 
allowing too many outflows. 

Private pension hinds, which 
command the equivalent of 
$l7bn (tii.abn) In savings, 
would only be allowed very 
gradually to expand their for- 
eign portfolios, he saUL 

But in the tong run, Mr Ani- 
nat said, “the only direction is 
towards liberalisation" because 
Chile had to continue to Inte- 
grate with the world economy. 

The next step would be to 
reduce distinctions between 
the formal and informal 
exchange markets - a process 
begun tentatively last month - . 
allowing Chilean exporters 
greater scope to leave earnings 
abroad. 

On inflation, which some 
tear has become stuck at about 
12 per cent a year. Mr Aninut 
said “harsh medicine", in the 
font of tight fiscal policy, 
might be needed. Bringing 
Inflation down, to single digits 
was more Important than sus- 
taining the 6 per cent growth 
rate of last year, he said. 


company. 

Pilkington emerges with advantages 



Floating to success: a ribbon of glass passes under water sprays in a Pilkington plant at St Helen's on Merseyside 


By Andrew Taylor, 

Construction Correspondent 

P ilkington estimated yes- 
terday that the agree- 
ment reached with the 
US Justice Department may 
cost it just under £lm ($L5m) a 
year in lost licensing fees. 

However, the UK glassmaker 
said that it might save consid- 
erably more in legal fees. A 
recent legal action in the UK, 
brought by POkington against 
PPG Industries, the large US 
glass group, resulted in the 
British company receiving 
£16m, representing 80 per cent 
of its legal costs, plus £5m 
damages. 

At issue, according to Pilk- 
ington, was whether PPG had 
the right to pass on to a Chi- 
nese plant technology devel- 
oped by the British company 
which PPG was using under 
licence in the US. 

However, the British glass- 
maker still feces two US civil 
suits- which could end in finan- 
cial penalties as well as costs, 
if PUMngton were to lose. A 
separate anti-trust action, to 
being brought by PPG, and 
there is an action by ITC, a 
smaller US glass company with 
which Pilkington has no licen- 
sing agreement 
The consent decree 
announced yesterday is not 


expected to affect these 
actions. 

Sir Robin Nicholson. PiBring- 
ton's technology director, said 
that the accord reached with 
the Justice Department had 
the advantage of setting out 
Pilkington’s legal rights to the 


float glass technology origi- 
nally developed by the compa- 
ny's president. Sir Alastair 
Pilkington. 

It meant that US companies 
licensed to use pre-1983 tech- 
nology developed by Pilkington 
would now be able to sub- 


license that technology to com- 
panies in foreign countries, 
subject to certain confidential- 
ity agreements, said Sir Robin. 

Pilkington would retain the 
rights to later technology 
which was not subject 
to licence agreements 


with US companies. 

"The decision has been 
reached after a two-year inves- 
tigation by the Justice Depart- 
ment,*’ Sir Robin said. 

“We have got what we 
wanted, in that we retain a 
substantial amount of proprie- 


torial knowledge which we can 
license In (be normal way." 

Pilkington was only a British 
glass company of modest ato 
when. In 1959, Sir Alastair 
invented float glass - reported 
to be an Mm which came to 
torn while he was In the bath, 
instead of rolling or drawing 
glass, he devised a system of 
floating it on molten tin to pro- 
duce a product of consistently 
high quality and thickness, 
with minimal wastage. 

Plate gloss, which was rolled, 
by comparison required exten- 
sive finishing and polishing, 
involving waste of up to 20 per 
cent 

Pilkington quickly realised 
that, in spite of its technologi- 
cal lead, it was not rich enough 
to build plants or mount legal 
actions to prevent companies 
from abusing patents in all the 
countries which wanted to 
take advantage of the new pro- 
cess. 

Instead, it decided to license 
the technique in agreements 
running for up to 30 years, 
from which Pilkington was 
able to earn substantial fees. 

At its peak, fee income was 
running at £35m-£45m a year. 
This has been, reduced to about 
£l0m now. 

The process developed by Sir 
Alastair is now used in 30 
countries at 174 plants. 



INTERNATIONAL 
MEDIA PARTNERS 


ingMibank 


are pleased to announce the establishment of 


Emerging Markets CEO of die Year Awards 


L esser developed 
economies have 
become emerging 
markets. Debt reschedulings 
are being replaced by debt 
underwritings. Equity is not 
about fairness in allocating 
multilateral funds, it's about 
ADRs listed In the American 
public markets. 

Against this backdrop. International Media 
Partners, publishers of Emerging Marfa* and par- 
ent company of the CEO Institutes, and INC 
Bank, the leading financial institution in emerg- 
ing markets worldwide, have joined to establish 
two important new awards. 

The Emerging Markets CEO of the Year 
Award will be given to two business leaders. The 
first will be the chief executive of a corporation 
headquartered in one of the world's emerging 
economics whose vision and company's perfor- 



mance have best shown the pat- 
tern that can be offered as a 
model to other emerging mar- 
kets companies around the 
world. The second to a chief 
executive of a company head- 
quartered in the developed 
world whose expansion into 
emerging markets has shown 
best how these markets can contribute significant- 
ly to corporate revenues and profitability. Tlrerc 
arc no industry or size criteria, though it is expect- 
ed that the recipient of the award will be in charge 
of major business. The awards will be presented at 
a special Awards Dinner during the IMF/Worid 
Bank meeting in Madrid in October 1994. 

An independent Selection Committee, com- 
prised of corporate leaders, institutional 
investors, government officials and multilateral 
executives, among others, has been established 
to evaluate recommendations for the awards. 


Nominations should be received by July 1, 1994. If you believe you have a candidate, 
please forward details to: Richard Bums, President, International Media Partners, The Cable 
Building, 6(1 Broadway, Suite 300, New York, New York, 10012. Telephone: 2(2 995 
9595. Facsimile: 312 598 07S8. 



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FXNANC3AJL TIMES FRIDAY MAY 27 1994 


7 

NEWS: WORLD TRADE 


Nafta accord back 


on Chile’s agenda 

Environment and labour issues are expected to 
dominate talks with the US, writes David Pilling 


I t was with more thap a 
touch of bravado that Mr 
Eduardo Aninat, Chile’s 
finance minister, announced 
earlier fids month that a deal 
to join the North American 
Free Trade Agreement could 
be wrapped up by next Match. 

"What I did, on purpose, was 
to put Nafta on the front page 
a gain., to start the dJscussion," 
be says. 

It worked: a Nafta deal, or at 
least a bilateral accord with 
the US -an issue largely dor- 
mant during the final period of 
the administration of President 
Patricio Aylwin-has reap- 
peared at the top of Chile’s 
international agenda. 

Mr Aminat's crusade has 
been much helped by the publi- 
cation in the US of a draft bffl. 
- sponsored by Mr Richard 
Gephardt, the Democratic 
Hou s e feadffl r — to initi- 
ate free-trade talks with Chile 
under “fast-track* procedures. 

The bill geeks to bind provi- 
sions on workers’ rights 
environmental protection into 
the accord, rather than negoti- 
ating side agreements, as was 
done with Mexico. 

Although th(g could imply 
tougher criteria for Chile, the 
initiative from Mr Gephardt, 
who opposed Nafta, is seen as 
a sign, of potential -cross-party 
support No one doubts the oft- 
repeated promise that Chile 
wffl be next 

None of this means, how- 
ever, that informal talks, due 
to begin in Washington next 
month will be straightforward. 
“Negotiations will be much 
more difficult than people 
think,” says a US official. 

The environment Is likely to 
prove the biggest sticking 
point. Chile’s mining, fishing, 
forestry and fruit indus- 
tries -backbone of the export 
sector - have been criticised on 
environmental grounds. Many 
older mines fall for short of 
International standards on dis- 
posal of hazardous by-products, 
while Chile still exports 100- 
year-old trees in the form of 
woodchips. 

Mr Aninat recognises that 
the environment is an issue an 



which “frankly speaking, we 
do have some problems”. 

On labour, he is more san- 
guine. Workers’ rights were 
greatly strengthened under 
President Aylwin, after years 
of repression under military 
rule, and are now more pro- 
tected than anywhere on the 
continent, he says. But other 
difficulties are Hkely to emerge 
as fcaUrc proceed, such as Chi- 
le's prfo&band system of sur- 
charges on agricultural 
imports. Washington will also 
push for stringent measures to 
protect investments. 

More tricky still may be the 
issue of intellectual property 
riehis. rarticDlarhr on. nbaima- 
centicals. Althoug h Chita h«n 
recently tightened up its 
patent laws, it has not intro- 
duced protection for pharma- 
ceuticals being developed. 

“There are g i dto 
differences '(over patents) 
which it will he very difficult 
for Chile to address in the 
short- to-medium term,” says 
the US Mr Arrinat is 

aware that negotiations on this 
topic wffl be “hard”. 

Mr Jos6 Antonio Guzmdn, 
president of the CPC, Chile’s 
main business organisation, 
said recently: “We are only 
prepared to make an agree- 
ment with the US if it is beuefi- 
cUd for the country and if it 
doesn't impose environmental 
and labour clauses beyond our 
capacity.” The CPC would 
oppose any deal damaging Chi- 
le’s ability to compete, he said. 


Fanners insist protective 
barriers cannot be dismantled 
until the US government stops 
subsidising its own formers. 

For Mr Aninat, locking into 
the world's biggest economy 
has strategic implications. “We 
feel that Chile, because of its 
g i g * qpd ftepwnifon p f on foreign 
trade and investment, cahoot 
remain isolated. ... The world 
is walking away foam multilat- 
eral Gatt rules, unfortunately, 
and more into regional trading 
blocs. We seed to gat hooked 
into iwtetugwwt. affiances." 

The US has wider objectives 
than the purely commercial. It 
Is keen that Chile, which it 
regards as sue of Latin Amer- 
ica’s most' open and modem 
economies, should be rewarded 
for its progress. 

But it has yet to decide 
whether it favours a bilateral 
accord or Chile’s joining Nafta, 
Until that issue la resolved and 
fast-track authorised, an talk 
of tiriwbiTiiBji jg premature. 

Tntfotxi Mr Aninat 
that his March 1985 target is 
“very optimistic” *wrf “more a 
signalling device than a real 
bet”. However, he believes 
that, once formal talks start, 
negotiations should be much 
quicker than those with 
Mexico, which took two years. 

Before this can happen, 
Washington must tom 
words into action. “This pro- 
cess is like a tango, and you 
need both .parties to dance,” 
says Mr Aninat “We cazmot 
start dancing cm our own.” 


Boycott 
ruling 
irks US 
Greens 

By Frances WHaroa bi Geneva 

“It's a dialogue of the deaf,” 
sighed one European trade 
official yesterday, referring to 
the outraged reaction of US 
environmental groups to the 
news that a Gatt panel has 
once again ruled against US 
trade measures intended to 
protect dolphins. 

The panel report, circulated 
to the parties involved last Fri- 
day, says the US is not entitled 
under Gatt to use trade mea- 
sures to force other countries 
to adopt its own domestic poli- 
cies, environmental or other- 
wise. This, the report argues, 
would undermine the whole 
basi s of th e multilateral trad- 
ing system. 

The US operates an embargo 
on tuna imported from coun- 
tries which catch too many 
dolphins in tuna fishing nets. 
A secondary embargo applies 
to countries which Import and 
process tuna from the offend- 
ing countries. But to satisfy 
the ter ms of the US law, it is 
not enough to MO fewer dol- 
phins; a country also has to 
adopt methods which 

conform to those used by US 
fishing fleets. 

The latest panel report, 
which relates to the secondary 
tuna embargo, adopts some- 
what di fferen t reasoning from 
Its predecessor. The three-man 
panel says Gatt rules do not in 
principle disbar countries 
from using trade measures to 
protect “the global commons” 
or environmental resources 
outside their own jurisdic- 
tions. However, the panel 
argues, these measures have to 
be designed directly to protect 
the resource In question and 
need to satisfy the criterion 
that no other more Gattcon- 
sistent measure is available. 
On both counts, it says, the US 
embargo foils. 

Independently of the 
embargo, measures to protect 
dolphins have resulted In a 
steep drop in kills In the East- 
ern Tropical Pacific, where 
dolphins swim with tana 
shoals, from over 100,000 a 
year in the mid-1960s to fewer 
than 5,000 last year. 




US alters China MFN stance 


By Jurak Martin to Washington 

Opposition to President Bill Clinton’s 
decision to extend Most Favoured Nation 
trading status to China may depend an 
what non-human rights conditions are 
attached. 

An actual gnnrnmgpmAnf the presenter 
tion of which wffl. be closely watched, was 
expected either later yesterday or today. 
The president docked all questions on the 
subject during bis early morning jog; but 
administration rrffWqfa have made it c ilpar 
that the central decision to de-link MFN 
and human rights bad already been 
reached earlier this week 

The likeliest target for modest sanctions 
are nhiraxp-wnqriA gUOS pwd ft TfiT^wnTtinm, 
specifically the SKS rifle, once in Sta nda rd 
use by the Chinese army and throughout 


the former eastern bloc. The ban on sates 
of Chinese weapons in the US was lifted in 
1987. 

Nearly lm SKS guns were imported into 
the US last year by two Chinese trading 
companies with dose ties to the Red 
Army, making it the fourth most popular 
weapon in the country, after three cheap 
handguns. SKS rifles were described in an 
article in the Wall Street Journal yester- 
day by a US government official as “Ugh 
tech firearms at Saturday Night Special 
prices”. A ban could, therefore, be por- 
trayed as part of the anti-crime drive. 

An embargo cm an easily identifiable 
product would be easier to enforce than a 
broader proscription on goods made by 
Chinese state industries and prison camps, 
as demanded by some in Congress and as 
considered recently by the government 


Congressman David Bouior, Democrat 
whip, wanted yesterday Mr Clinton could 
face a big fight in congress if he were not 
“tough enough” with China. 

The administration is resigned to the 
fact that it Is certain to come under attack 
in Congress and human rights organisa- 
tions for backing away from the presi- 
dent’s executive order of last June tying 
renewal of MFN to improvements in seven 
areas of Chinese human rights policies. 
Measurable progress has only been made 
in two areas. 

Some of that sting may be drawn by the 
prospect of huge US commercial contracts 
with China. Yesterday, for example, Boe- 
ing was obliged to deny comment on 
reports it was close to landing a Chinese 
order for over 50 airliners valued at over 
$5bn (£3.4m). 


Farm row with Canada eased 


The US has moved to lower the 
temperature tn its acrimonious form-trade 
dispute with Canada. Mr Jim Blanchard, 
US ambassador in Ottawa, made an 
unusual appearance on Canadian televi- 
sion to attack the Increasingly aggressive 
tactics of Mr Mike Espy, US agriculture 
secretary, writes Bernard Simon in 
Toronto. 

“I don’t wrttiir he had authority from 
the president and I don’t agree with him,” 
Mr Blanchard said, referring to recent 
efforts by Mr Espy to secure Brazil’s sup- 
port for Washington's case against Can- 


ada. Mr Blanchard is a former governor erf 
Michigan. According to diplomats, Ms TV 
a ppe a rance bad Washington’s blessing. 

Mr Espy claimed an a recent trip to 
fjrfto America that Canada was damping 
wheat in BrezfL He ottered to provide the 
Brazilians with evidence of , unfair trade 
practices by Canada. 

US and Canadian agriculture and trade 
ministers will meet is June in another 
effort to resolve their dispute, which cen- 
tres on a surge in US purchases of Cana- 
dian durum wheat; used mainly for pasta. 

The US plans to impose a punitive tariff 


on imports of Canadia n wheat, floor and 
barley above a specified level if agree- 
ment is not reached by July L 

The action would be taken under Gatt 
Article 26, which allows a country to 
impose new trade curbs in cases where 
existing duties are considered too low to 
provide adequate protection for domestic 
producers. 

But it also permits the target country to 
seek compensation through tariff 
increases of its own. Canada has threat- 
ened to retaliate against a wide range of 
US products. 


Dutch enzyme plant for Tianjin 


Novo Nardisk, a leading producer of industrial 
emymes p od fawnWn for is planning to 

set up an enzymes factory employing about 500 
people in China, the company announced yester- 
day, writes Hflaory Barnes in Copenhagen. 

Novo Nardisk has acquired a 160,000 square 
metre site near the town of Tianjin by agree- 
ment with the administrative commission of 
Tianjin economte-technologiical development 
area. 

The site is Mg enough to house a plant for 
pharmaceuticals production as well, said Mir 


Mads Ovlisen, Novo’s chief executive, but added 
plans for this stage of the development 
remain at a very early stage. 

Work on the enzymes factory will begin next 
year and production is due to start in 1998-99, 
the wwwpany Mid “China has a population of 
LZbn and large industries in washing powders, 
brewing, alcohol and textiles. The country 
therefore has a big potential as a customer for 
Novo Nordisk’s enzyme products,” said Mr 
Bhbfen Sorensen, who is responsible for the 
group’s projects in China. 


Astra-Takeda patent row settled 


Astra, the Swedish pharmaceuticals group, 
yesterday • settled a long-running patent 
infringement dispute with the Japanese group 
Takeda, writes Christopher Brown-Homes in 
Stockholm. The out-ofeourt agreement lifted its 
A shares by SKr8 to SKH68 (521.90). 

The dispute centred on Losec, Astra's best- 
selling anti-ulcer drug, which last year bad 
total sales, induding sales through licensees, of 
SKr 12.71m. Losec is the world’s fifth best sell- 


ing drug worldwide. Astra accused Takeda of 
marketings generic version of Losec; claiming 
this infringed the patent protection which 
Losec enjoys until 1999. It filed a series of suits 
against the Japanese group and its licensees 
last year. 

Under the terms of the settlement, Astra will 
receive unspecified compensation for Takeda’s 
future sales of products containing the generic 
version of Losec. 


Letters of 

credit 

crackdown 

The Paris-based International 
Chamber of Commerce is 
launching a new effort to crack 
down on the growing fraud 
involving bank letters of credit 
and guarantees, it said yester- 
day, David Buchan reports 
from Paris. 

Mr Eric Ellen, director of the 
IOC’s commercial crime bureau 
in London, said "around Jibn a 
year” was now going into 
fraudulent schemes claiming 
to provide investors with a 
large return on “prime bank 
instruments” such as standby 
letters of credit Most of these 
schemes involved forged or 
effectively untradable items. 

The ICC plans to keep banks 
informed. 



Probably the best beer in the world 






FINANCIAL TIMES TUESDAY MAY 31 1994 


THE COMPUTER IfiPUSTRYs Battle for the Desktop - 5 


Imaging has moved out of 
the backroom and into the 
mainstream of business 
re-engineering, as CLAIRE 
GOODING reports here 


A n imaging system has 
brought about a startling 
change at Birmingham Mid- 
shires Building Society- Two years 
ago it took an average of five weeks 
to process a mortgage application. 
Now a department only one fifth of 
its previous siae processes applica- 
tions in three weeks. 

According to Mike Jackson, rhinf 
executive of 'the Wolverhampton- 
based society, 80 per rent of mort- 
gage deals are now offered within 
this new time-scale. More remark- 
able is the reduction in staffing lev- 
els, from ISO people processing 
mortgages, to a staff of 30 or so. 

"Overall, we’ve reduced staffing 
by 1,000, from 2,450 to 1,450 since 
August 1992." says Mr Jackson. 
"But this is very much part of a 
wider process of re-engineering the 
business. We’ve already gone 
through one ‘pass’ and now we are 
doing it again." 

Birmingham Midshires' system is 
based on Wang's Open/image soft- 
ware, implemented by City-based 
Relational Developments RDL — 
"the im aging system has improved 
the speed of decision-making,” says 
Mr Jackson. 

“One of the key benefits is having 
all the information on hand, and 
being able to answer customers' 
and brokers’ questions immedia tely 
from the screen without having to 
refer to paper. 

"The second part is that using the 


IMPROVED DOCUMENT HANDLING 


Quicker decisions, higher 



database coupled with the imaging 
system, we have a lot more informa- 
tion and history available on the 
customer than we ever had av ail - 
able through a paper file; that has 
brought our arrears levels signifi- 
cantly lower than they were 
before." 

It is into this mainstream arena of 
business process re-engineering 
(BPR) that image processing is 
emerging from its niche, in partner- 
ship with other information, sharing 
technologies such as groupware and 
workflow. This drawing together of 
parallel technologies has been made 
possible by the general adoption of 
powerful, highly adaptable (and 
lower cost) desktop workstations, 
and robust networking software. 

More specific to the imaging mar- 
ket is the mundane but vital busi- 
ness of getting the Images into the 
system, and storing them, once cap- 
tured. Images are space-hungry, but 
optical disks have helped: an optical 
disk of 12 ms diameter can store 
more than 100,000 A4 documents. 
Scanning technology has also 
become much cheaper, and like the 
fat and tha PC. COID€ within tha 
reach of departmental budgets. 

According to Geoff Bedser. a 
senior consultant at CMC, (Com- 
puter Management Group), image 
processing is for more relevant to 
business than it is to information 
technology (IT) - “TT people don’t 
like it because it reduces their pow- 


er-base." he comments. 

A hanker by training, he has long 
argued the business case for imag- 
ing, and his work in CMG's finance 
division has given him a bird's eye 
view of the various imaging devel- 
opments, as well as the offerings 
and alliances of various suppliers 
whose products have come and 
gone. 

“Over the last five years hard- 
ware and software have advanced 
at an astonishing rate. The empha- 
sis of the system suppliers is now 
on improved process automation 
and doc ument handling, rather 
than straightforward storage and 
retrieval Companies who are aim- 
ing for optimum efficiency in their 
document handling are starting to 
consider the benefits of totally 
restructuring the way they work." 

Andrea Wharton, research direc- 
tor of Twickenham-based Wharton 
Information Systems, writes an 
annual review of the UK Imaging 
market in association with the UK 
Association for Information and 
Image Management (UK ADM). She 
estimates that electronic document 
management (EDM) systems dou- 
bled sales in 1993, generating a total 
revenue of more than £L30 hl 

Ms Wharton's report. Document 
Management the Next Steps, esti- 
mates the current number of image 
processing sites in the UK at more 
than 7.000. Although the larger 
share of new installations still goes 



Cu s to m a re In ■ UK estate agency vtaw house plana from a d a tabas e in Parts 


to specialists such as Canofile and 
Cimage, the report identifies 
increasing Interest among main- 
stream software publishers Includ- 
ing Lotus. Oracle, and Sybase. 

Ms Wharton believes that recent 
improvements in technology includ- 
ing data compression and the avail- 
ability of high-quality ISDN tele- 
phone links, have helped make 
imag in g 1 more appealing as an alter- 
native to acres of filing cabinets. 

“One of the most difficult things 
was putting the data around the 
network. It’s now faster, and PCs 


are more able to handle images 
without expensive extras. 

"Large organisations which bad a 
real need, went ahead and did it 
anyway. Despite the deficiencies of 
the technology three or more years 
ago, they created their own environ- 
ment behind closed doors. But 
increasingly we’re seeing a desire to 
give much, wider inter-departmental 
access to mfftrmatinn, SO that 

image becomes simply another 
data-type.” 

Both Mr Bedser and Ms Wharton 
imrteriintf the fragmented nature of 


the imaging market and remark on 
how difficult ft is to break info it. 
Even companies with as. much mus- 
cle as Digital Equipment have 
changed direction several times, 
and eventually given up the sting- - 
gle to establish a market share. 

As in any emerging market, there 
are clever innovators in specific 
niches. Ealing-based Trimco. one-- 
time Cimage distributor, has devel- . 
oped its own large-format technol- 
ogy. Imagesolve of Finchley 
(acquired in November 1993 for US- 
based Banctec) has both. PChased 
and dient-ssrver solutions. US com- 
pany Excallbur has software for 
intelligent correction of optical 
character recognition (OCR), eflmi- 
nating the inevitable problems of 
OCR such as coffee-stains on docu- 
ments. 

Concentrating on Image rather 
than text is Bournemouth-based 
4Sigbt which has practically cor- 
nered the market in newspaper pub- 
lishing with its software for trans- 
mitting images via ISDN lines 
between incompatible hardware. 

At the low end of the market are 
turnkey storage and retrieval 
systems such as Keyflle and Water- 
mark. sold through third parties. 
High-end offerings such as Fllenet 
ImagePlus and Plexus have already 
been widely adopted by banking 

and financial users. 

Wang’s partnership with RDL in . 
the Bi rmingham Midshires gift* is 


typical of its strategytousethird 
I«£ies and systems 
sell Open/image. After adfoastro^ 
loss of direction, and some. years im 
the financial wilderness, Wanghas 
focused sharply on imaging. Davifl 
AUcock, marketing manager at 
Wang UK, is working to develop 
third-party channels for Wang^s 
technology- .... 

Always clever at bmldlng In 
extras. Wang has built performance 
measurement into Op en finw ge, h™ 
kept its own role anonymous - “we 
allow VAEs to absorb completely 
oar technology into their applica- 
tion: no two-second commercial 
when the user enters the system, 
says Mr Allcock. . . 

"Previously we had too many 
irons in the fire. In the last. three 
years we have spent $50m develop- 
ing our imaging and workflow tech- 
nology, and the only way we have 
of re-coupmg that is to sell in vol- 
ume, through resellers, not direct. 

Partners now include more than 
20 Value Added Resellers (VARS) 
including House of Speed, Fraser 
Williams. *»nd Lynxserva. 

Open/image's intelligent work- 
1 o£b 1 assessment measures the time 
: tafcpn to process workloads, so that 
financial directors can see the gains 
- “it allows you to justify the spend 
and see where the. benefits are,” 
says Mr Allcock. - 

"Increasingly the quality of 
systems is such that any dealer can 
supply shrink-wrapped imaging 
solutions. I can see the imaging 
market turning into a commodity 
market, like PCs." 

The report, ' Document Manage- 
ment the Next Steps, available from 
Wharton Information Systems, tef 
081 891 6297. 


PRINTERS 


Surprises 

abound 


The computer printer 
industry is one of the 
most dynamic segments 
of the office equipment 
sector and has been 
growing at double digit 
rates, reports 
PAUL TAYLOR 


T he printer may not share 
the glamour of the 
personal computer or 
demand the respect 
traditionally accorded to the 
mainfr ame or the depa rtmental 
server, but the changes under 
way in printers and print 
technology are scarely less 
dramatic. 

Today, the printer market 
includes humble dot-matrix 
machines at the low end, low 
cost ink-jets for low volume 
and colour work, high quality 
personal desktop laser 
printers, network lasers 
connected to local area 
networks, and high speed 
digital copier-printers in the 
print room. 

In terms or manufacturers, 
Mr Graham Salmons, a senior 
industry analyst in Dataquest* s 
European document 
management group, says, 
"Hewlett Packard ‘owns’ the 
European printer market,” HP 
has around a 33 per cent 
market share by volume and 
a similar percentage share by 
value - worth an estimated 
$2.65bn.(£I.81bn) 

The US manufacture's 
dominance of the market in 
part reflects a marked shift 
in the sales product-mix. Sales 
of printers based on older 
impact technology - such as 
dot-matrix and daisy wheel 
printers - are falling while 
sales of printers based on 
non-impact technologies like 
ink-jet, laser and Led (Light 
Emitting Diodes) are growing 
strongly. 

This shift has been driven 
by the clear advantages which 
laser printers have over then- 
rivals including convenience, 
print quality, high speed 
operation, advanced text and 
graphics capabilities and the 
rapid erosion of the price 
premum they once 
commanded. As a result, the 
30:70 balance in favour of 
impact printers across Europe 
in 1991 is expected to be 
reversed over the next couple 
of years - 1993 was the first 
year when non impact printer 
volumes exceeded those for 
impact devices. 

Despite this, most analysts 
believe the dot-matrix printer 
will retain a role as the office 
workhorse for a limited 
number of high volume 
applications including those 
requiring continuous paper 
such as orders and indices. 

For low-volume work, 
particularly m in-- home 
market European users in 
particular have eagerly 
embraced ink and bubble jet 
printers which offer fast, 
virtually silent printing at very 
low cost. 

Ink-jet printing technology 
has also provided a cost 
effective means of introducing 
colour to both business and 
technical graphics. 

According to Dataquest, HP 
has over 90 per cent of the 
European colour ink-jet market 


and over 50 per cent of all fojet 
sales worth $1.13bn last year. 
Cannon ranks number two 
with around a 20 per cent 
share worth about £420m 
($613J20m). 

Mr Salmons believes that 
injet printers wifi continue 
to replace dot-matrix at the 
low volume end , and that they 
will move away from mono 
to colour as lower priced laser 
printers are developed. 

Nevertheless to the personal 
printer market, ink-jets also 
face a challenge from lower 
cost laser printers, particularly 
the Windows GDI printers 
which have recently appeared 
- some costing less than £400. 

These printers take 
advantage of Microsoft 
Windows software and PC 
processing power eliminating 
the need for costly 
intelligence’ to be built into 
the printer itself. Although 
print speeds are relatively 
slow, they offer high quality 
laser printing at low prices. 

More generally two distinct 
markets for laser printers are 
emerging - low-end personal 
printers capable of around 
6ppm (pages per minute), and 
high-end heavy duty desktop 
printers capable of 16-20ppm 
for shared use. 

The trend towards 
networking of PCs has clearly 
fuelled laser printer sales over 
the past few years although 
recent research conducted by 
Dataquest shows that even 
where PC users are connected 
to Lans, many of them still 
prefer to have a personal 
printer. Dataquest estimates 
that HP has about 48 per cent 
of the European market for 
page and non-impact printers 
up to 6 ppm (pages per minute) 
and more than 80 per cent of 
the i6-20ppm network printer 
market. 

T he main trends among 
the network printers 
are towards easier 
installation, simpler operation 
and greater paper capacity. 

Al thoug h HP also dominates 
this market segment, the 
projected growth of network 
and workgroup printing is 
attracting new entrants such 
as Rank Xerox which 
introduced a range network 
printers recently. 

"Users in network 
environments are demanding 
robust folly featured 
workgroup printers optimised 
specifically for multi-user 
applications," says Mr Richard 
Gibbs, Rank Xerox’ business 
team manager at a recent 
product launch. The company’s 
new 4220 network printer 
offeres enhanced 300dpi (dots 
per inch) print quality at 
speerfa up to 20ppm and 
seamless automatic emulation 
switching between print 
languages. 

Multifunctional devices 
combining the roles of digital 
facsimile, scanner, printer and 
copier units are also b eg in n i n g 
to appear - although much 
less quickly than some had 
predicted. 

At the low-volume or 
-personal’ end of the office 
equipment market this is 
epitomised by the DOC-FT 
systems from OM, the 
Japanese office m achine 
manufacturer, which were 
launched last year. These 
□ Continued on nest page: 


Our new deskpro 

MEANS YOUR OFFICE 
WILL NEVER BE 
A WAITING ROOM. 


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NEWS: UK 


Immigration row heightens poll tensions 


By David Owen, Kevin Brawn 
and Rotand Rudd 

The Conservatives yesterday accused 


Britain in brief 

ISSIVIK* 


jjcmwraa. games or seeking to under- 
mme Britain s Immigration controls, 
as the row over the OK’s ability to 
block decisions made in Brussels 

gpinpri flyg 

Raising the race issue for the first 
tune In toe increasingly iH-tempared 
European campaign, Mr Michael 
Howard, home secretary, said it was 
vital Britain kept its EU veto ^ 
immigration and asylum matters. 


This was because firm immfffratfm) 
controls were M the foundation of good 
race relations". By espousing policies 
that would "fatally undermine” 
Britain’s veto, both opposition parties 
were putting at risk “our immigration 
controls and our race relations legisla- 
tion”. Mr Howard arM^ri* “They would 
m a ke race relations in this country 
significantly worse." 

The two opposition parties hit back 
strongly. Labour saying it bad ashed 
the Campaign for fiarial Equality to 
investigate Conservative “race 
scares”. Mr Jack Cunningham, 
Labour's campaign manager, «tnri ht« 


party had repeatedly made dear it 
would retain the British veto on. jus* 
idee and immigration issues, as wen 
as for taxation, defence and security 
matters. The Tories go on telling lies 
about us, and I go on saying that they 
bed their way through the 1902 gen- 
eral election,” he said. “We are not 
going to let them get away with lying 
their way through this one.” 

Mr Charles ft w i n arty . Liberal Demo- 
crat president, said it was "distaste- 
ful” for the Cons erv a tive s to “play 
this card at thfo sta ge in the cam- 
paign”. ft was ‘toot at all appealing to 
see this sort of jingoism’. 


Meanwhile. Mr Paddy Ashdown 
used a visit to Eastleigh, where the 
Liberal Democrats are hoping to win 
the parliamentary by-election next 
month, to attempt to address sugges- 
tions that the party’s policy on 
Britain's veto was in disarray. 

Mr Ashdown drew a distinction 
between the legislative and executive 
decisions in the European Union. He 
said the Liberal DemoCTats supported 
toe retention of the national veto in 
executive decis ion s but not in the leg- 
islative. 

National issues, such as defence, 
finance and immigr ation would 


Farmland shows 
higher returns 


By Deborah Hargreaves 

Investment in Britain's 
agricultural land last year gen- 
erated. the highest returns for 
fund managers in 14 years, 
according to a survey by Sav- 
ins land agents. 

Institutional investors saw a 
16L3 per cent return from agri- 
cultural holdings, including 

profits from the sale of land. 

Mr Am Ward, head of agri- 
cultural research at Savills, 
said the rate of investment 
income from agricultural land 
had outpe rfo rmed commercial 
property by 5 percentage 
points over the past 6 years. 
However, pr oper ty returns are 
still well below those in toe 
equity market, where pension 
funds earned 28 per cent last 
year. 

Around 30 per cent of 
Britain’s farmland is owned by 
large landowners such as the 
Church of England, the 
National Trust and the Queen 
with financial institutions 
holding about l per cent 


Financial institutions moved 
heavily into fa rmland invest- 
ments in the 1570s when, infla- 
tion was high and farm 
incomes were rising rapidly. 
But most have since been seek- 
ing to reduce their hoMrngs. 

Most fond managers are con- 
cerned that land values will 
drop over the long term as a 
result of Common Agricultural 

Policy reforms which win rat 
farm produce prices. Savills 
reckons institutions sold 45^)00 
acres of farm land last year. 

The survey is drawn from a 
sample of 49 fmawfai institu- 
tions which between them own 

202.000 acres of agricultural 
land down from a peak of 

550.000 acres in 1964. 

Land prices are 20 per cent 
lower in real terms than in 
1980, but land values rose last 
year with the u p t ur n in fram- 
ers’ earnings. Instit utional pur- 
chases of fa rmland dried up 
last year and fend managers 
bought only 2 per cent erf form 
properties compared with 38 
per crat in 1962. 




A policeman talks to a protester at a demonstration in Leytonstone, east London, yesterday 
against a motorway extension. Protesters dashed with security guards and contractors in efforts 
to stop them clearing trees in preparation for the lOl, which wUl link the Ctambridge-to-London 
motorway with central liondma. The demonstration is a further example of mounting environmen- 
tal objections to construction projects, especially new roads Noagnph pa 


Backdown on mining-related illness liability 


The government is to remove 
one of the r ema inin g obstacles 
to coal privatisation by back- 
ing down from its insistence 
that purchasers shoulder all 
liabilities arising from indus- 
trial illnesses of employees 
inherited from British Coal, 
writes Michael Smith. 

It is now prepared to take on 
some of the liabilities itself. 


The retreat nmut after intense 
pressure from prospective bid- 
ders who warned that a con- 
tinuing hard Bwb by ministers 
.could have made insurance 
impossible. 

NJkL Rothschild, the mer- 
chant hank advising the gov- 
ernment cm privatisation, said 
yesterday S3 parties had sub- 
mitted applications to qualify 


for bidding by Wednesday 
night's deadEne. 

All of the regions are 
thought to have attracted 
interest from at least four 
potential bidders, it is under- 
stood that overseas companies, 
including some from Australia, 
are among the applicants. 
Interest from nerth America Is 
believed to be less than the 


government was hoping for. 

Potential bidders, who paid 
£15,000 to "pre-quatify” for 
each region and £ 6,000 for each 
standalone pit , have until Sep- 
tember to decide whether to 
bid. The decision on Ohuss liar 
bUities will be welcomed by 
potential bidders. Although not 
the only Kahflitfpg issue which 
concerns them, it is one of the 


most significant According to 
Nacods, a pit union, claims 
from fbrmer miners suffering 
from work-related sicknesses 
could exceed £5bn. 

The Department of Trade 
and Industry would not com- 
ment on industrial iTTnewg lia- 
bilities, but stressed that all 
coal workers, past and present, 
would be fully protected. 


be subject to an effective national 
veto because of toe parly’s support for 
double qualified majority voting. Mr 
Ashdown plop nnwfa ft clear fog* any 
rhanfru in the n«* v*n«T veto would be 
the subject of a referendum. 

However, Mr David Hunt, employ- 
ment secretary, said Mr Ashdown’s 
distinction between legislative and 
executive decisions were far too 
blurred to be of any meaningful use. 
Mr Ashdown's commitment to turn 
the Council of Ministers fntn a “Euro- 
cabinet'’ showed he would settle for 
“notiring Ins than a centralised Euro- 
pean superstate”. 


BBC TV 
in limited 
return to 
Hong Kong 

By Raymond Snoddy 

BBC World Service Televirion 
will return next month to 
Hong Kong an a limited basis. 

The BBC lost its ability last 
month to reach the people of 
the region alter the corpora- 
tion agreed to take its channel 
off the Star Television satellite 
system, controlled by Mr 
Rupert Murdoch's News Corpo- 
ration. 

Wharf Cable, Hong Kong's 
cable network, will carry four 
hours a day of BBC World Ser- 
vice Television news and infor- 
mation programming, with six 
hours daily at the weekend. 

Mr Bob Phillis, BBC deputy 
director-general and rhafrmran 
of BBC Worldwide, which over- 
sees the corporation’s interna- 
tional activity, said yesterday 
in Hong Kong that the deal 
was only a beginning. 

"This is the first step . 
towards our goal of resuming 
24-hour transmission of BBC 
World Service Television to tile 
Far East," he said. 

the BBC agreed to go off the 
northern beam of the Star sat- 
ellite before the mid of its con- 
tract in a deal to extend time 
on the southern lom, cover- 
ing toe TwHuti subcontinent. 

The BBC also said its news , 
and information channel would 
be available in New Zealand ! 
early next year on a network of 
regional stations. Programmes 
will also be carried on the 
TVNZ national channel, TVX. 


Labour pledge 
on bank 
‘openness’ 

A future Labour government 
would continue to publish toe 

minutes of monthly monetary 
policy discussions between 
the chancellor and the Bank 
of England, Mr Gordon Brown, 
shadow chancellor, said 
yesterday. 

Mr Brown said be had “no 
plans” to stop publication of 
the minutes in spite of the 
political difficulties that could 
follow the disclosure of 
differences with the bank. 

EBs pledge could help 
Labour convince the financial 
markets of the credibility of 
its economic policies and Its 
commitment to low inflation. 
The danger of an open dash 
with the hank over inflation 
prospects might inhibit the 
pace at which Labour could 

fan plwnfnl a n ffpmiriftmw y 

policy aimed at creating full 
employment. 

British Gas seeks 
fewer barriers 


British Gas called for the early 
Biting of regulations that 
restrict its activities In the 
commercial market of 
consumers who use more than 
2,500 therms a year. 

Mr Cedric Brown, chief 
executive, told an energy 
conference in London that 
government efforts to promote 
competition were now 
“anti-competitive, because they 
tilt the playing field in favour 
of other companies”. 

He said market share 
constraints had resulted in 
competitors capturing 45 per 
cent of the market above 2£00 
therms a full year before a 
damning imposed by the UK’s 
monopolies commission. 

Mr Brown warned that the 
phased opening of the domestic 
market beginning in 1996 was 
a “massive experiment” 
affecting 18 m households, and 
that there was “precious little 
time to work out potential 
problems.” 


MPs warn over 
pension reform 

Presrare for an overhaul of 
occupational pension law 
intensified yesterday as a 
cross-party committee of MPs 
urged changes even beyond 
those currently under 
consideration by the 
government 

The Tory-dominated 

Commons Social Security 
Select Committee said in a 
report the proposals the 
g o ver nm ent Is expected to put 
forward on pension law reform 
would not do enough to 
protect the security of 
workers’ pensions. 

It urged that schemes be 
required to give more 
generous pensions to those 
who change jobs and said 
individuals should be able to 
challenge trustees in court. 

Former Defence 
official jailed 

A former director of the 
Ministry of Defence munitions 
procurement department, who 
received £L3m in Illegal 
payments from foreign arms 
companies, was jailed for a 
total of four years. 

In Britain's biggest cash 
corruption case. Mr Gordon 
FoxJey, 69, also had assets 
worth more than El. 5m 
confiscated at crown court in 
east London. 

Mr Foxley was found guilty 
last November of 12 counts 
cf corruption between 1979 and 
1981 He was given 18 months 
to meet the confiscation order 
or serve a Anther three years 
in prism. 


Purcell volume 
sold at auction 

A small calf-bound volume 
containing toe only keyboard 
music by English composer 
Henry Purcell in his own hand 
known to have survived sold 
far C278J500 at Sotheby’s 
yesterday. The price was at 
the lower end of the forecast 

The 21 harpsichord pieces 
were discovered In a mass lot 
at another auction house last 
year. The buyer was UK dealer 
Otto Haas, but there was a 
strong possibility that he was 
bidding for an overseas 
collector. 

Purcell is one of toe few 
British composers with an 
international reputation. 





PUBLIC CALL FOR TENDERS FOR THE SALE OF THE ASSETS 
OF THE COMPANY UNDER THE TITLE “ALTTS TOURISM AND TRADE CENTRE SA” 


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The Sodete Anonyme under the tfflo “ASTDCA akwita AE.“ with head offices m 
Athens (43 Paneplriimtou Sir.) lawfully represented under its capacity of special 
liquidator oy virtue of resolution No. 357/31-3-1994 of the Patras Court of Appeal, of 
the ImitBd faMty company “ALTO TOURISM AND TRADE CENTRE SJL” 

ANNOUNCES 

A pubfle call for tenders with sealed, binding offers, tor the sale of the total 
as se ts of the enterpris e under apeclri IfcyddaMon by virtue of arttete 46a, 

L 1992/1990, of which the content b the exploitstton at the hotel “ALUS* of the 
sodete anonym* under the title “ALTIS TOURISM AND TRADE CEffTRE &A” 

ACTIVITIES AND BREF DESCRIPTION OF THE COMPANY 
The company was founded on 1B.10.1983 with the objective of exploiting tourism and 
trade centres In Ancient Olympia and other Greek cities and exercises a hotel 
enterprise In Ancient CHympta, Prefecture of Ilia, Greece. 

The assets of the company to be sow are deserted In data* in Ihe oRer memorandum 
and consist of one (1) hotel complex fully equipped, located In Ancient Olympia, 
Prefecture of IBa. Western Petaponnesa, on the regional road Pyrgos-TripoB, at foe 
edge of foe efty near the Archaeological Stta and opposite foe OTE (State Telephone 
Company) buflefing and foe Town HaU, under the title 'ALTIS*. 

It IS a B Ctass hotel with a capacity of 61 rooms and 116 beds. It '« erected on a she 
with a total area of 1,61855 sq.nt which occupies the entire building block (BB 32) 
and it consists of a basement (1,160.26 sqm), a ground floor (1,145.26 sqm), a first 
storey (1,116.72 sqm.), a second storey (956.88 sq.m.) and a terrace (37.70 spun.), 
plus the electromechanical installations required for the operational needs of the 
tourism unit and its security such as air conditioning, firs protection, kitchen 
Installations, laundry, confectionary shop, restaurant telephone centre, etc. 

INVITES 

Any interested party to receive, in foe event they have not already received, foe offer 
memorandum, and submit a sealed, binding offer accompanied by a letter of 
guarantee by a Bank operating lawfully in Greece. 

TERMS OF THE CALL FOB TENDERS 

1. The ptrifc call for tenders wffl be earned out accx)ftinfl to the provisions of article 
46a, 1. 1892/1990 which was added to the law by virtue of the provision of artide 14. L 
2000/91, foe terms included in foe present call (or tenders and the terms of the offer 
memorandum, which interested parties may obtain after submitting a pledge of 
conSdenttaBty in writing. 

2. In order to participate in the eaU for tenders, Interested parties are invited to 
doBver a sealed, binding offer in wilting by 14.00 on Tuesday, June 21, 1994 to 
the Otympta notary pubic Mr. Christos Lambrapoulos, 260 70 Petapton, Ua, tsL 
no. (0624) 31424. 

3. Each otter wW be accompanied by a letter of guarantee issued by » Bank 
operating legally In Greece, with the contents described In the offer 
memorandum and amounting to the sum of fifty raHHon (jSOflOOjOOa) drachmae. 

4. The ottare and foe letter of guarantee must be delivered In a sealed, opaque 
envelope. 

5. The offer must mention dearly the amount offered for foe purchase of the total 
assets of the company under liquidation and must not contain any terms, options or 
vague phrases which might create uncertainty as to the manner of payment of the 
sum being offered or other matters related to the sale. 

6 . The deRvsry of foe offers wft be made by the interested party in person, or by his 
authorized representative. 

7. Overdue offers wtt not be accepted and wW not be considered. The binding nature 
of the offers wfl apply until the award of the sale. 

8 . The assets of foe company and al the etomente of which they consist, such as 
real estate, moveable objects, name, dalms, trtie and abbreviated title, rights, etc. wfl 
be firid teld transferred *as and where they are*, Le. In their real and legal condition 
and at foe place where they are located on the date of signing the contract of sale. 

9. The liquidating company and the creditors representing 51% of total dalms 
against the company (para. 1, artide 46a, L 1892/1990 as It currently apptes) are not 
Sable for any legal or real defects or the lack of any attributes of foe objects and rights 


being sold, nor are they Sable for any omissfons or foaccuradas contained In tha otter 
memorandum and any correspondence. 

10. Interested potential purchasers are obligated, under their own supervision, and by 
their own means, expenses and personnel, to investigate and acquire a personal 
perception of the objects being sold, and to mention in their offer that they are fully 
Informed as to the real and legal condition of the assets under sale. 

11. The fiqukiHtor and the creditors mentioned In para. 9 above are entitled, escorting 
to their own judgement to reject offers containing terms and options, regardass of 
whether they are superior to other offers as regards the amount being offered. 

12. In the event that the party to which foe assets under sale are awarded, violates its 
obligation to coma forward and sign the contract within ten (10) days from foe relevant 
invitation by the liquidator and observe the obligations arising from the present 
announcement, the letter of guarantee amounting to fifty million drachmae 
(50,000,000) is declared forfeited In Its entirety In favour of the liquidating company 
“ASTIKA AKIN IT A A.E-\ towards covering all Its expenses of any type and its 
services, as also any direct or Inc&rect damages, without the necessity of proving 
specific damage, and as a penal clause In favour of that company, deemed as having 
been submitted with the offer, so that ft can be collected from foe Bank issuing the 
guarantee. The letters of guarantee submitted for participating in the tender will be 
relumed to all other participants following the evaluation report of the liquidator and 
the creditors mentioned In para. 9 above, and to foe successful bidder, to whom the 
sale wfl be awarded, following the payment of (he amount agreed and the drafting of 
the payment order. 

13. The seals of the offers win be broken by the notary public mentioned above 
at Ms office, at 13.00 on Wednesday, June 22, 1994. 

14. The successful bidder will be (he party whose offer roll be judged by foe liquidator 
and approved by the creditors mentioned in pare. 9 of foe present, as being the most 
advantageous for the company's creditors. 

15. The liquidator wfll notify the successful bidder in writing or Ms obligation to come 
forward to the place and at the time determined in the notification, tor signing the 
contract transferring the assets, according to the terms of the offer and any improved 
terms that may be indicated by the creditors and agreed with the highest bidder. 

16. The signing of the transfer contract stands as a final assignment accenting to 
article 1003 of the Code of Civil Procedure whe ra aa the amount to be paid to tbe 
Bqukiator by the highest bidder stands as a bidding payment according to article 
1004 of the Code of Clvfl Procedure. 

17. All expenses and costs arising from participation in foe tender and the transfer 
(tax, stamp duty, notary puM^s fees, reqtstrarof mortgages, announcements, etc) wfl 
burden exclusively the interested potential purchasers and the highest bidder 
respectively. 

18. In the event of part of the purchase price being on credit, the highest bidder wfl 
be obligated to provide any guarantee that may be requested by the Bqukiator 
according to his own exclusive judgement, and win be burdened with all related 
expenses, costs and fees required for foe formation of such guarantees and their 
termination. 

19. The liquidator and the creditors will not bear any responsfoflity or RabJQty against 
those who wU participate m foe lander as regards foe evaluation of foe otters, their 
recommendation cf the successful bidder, the decision for the repetition or 
cancellation of the tender and any other decision relevant to the procedure and 
realization of tbe tender. 

20. The submission of the binding offer does not create a right of awarding the 
assignment for foe sale. In genera), Ed) parties participating In the tender do not 
acquire any right or claim arising from the present announcement and their 
participation to the tender against the liquidator or the creditors for any cause or 

reason. 

21. The present announcement has been drafted In the Greek -language and 
translated to tbe English language, in every instance however, foe Greek text will 


Inte re sted parties may coflset offer memorandums and receive other information, from 
Mr. George E. Poimenkis and Mr, Christos S. Agsthopouka, 43 Parteptaftrtou street 
Athens 105 64, telephone nosj 328.61 13 and 326.61 11 fax no.: 326.61 18. ^ 





10 


PROPERTY 


User 

unfriendly 

Vanessa Houlder on an 
industry accused of being at 
odds with its customers 


"At present, the property 
industry bears analogy to the 
old discredited economies of 
east Europe, when customers 
voere provided with what the 
factories found most convenient 
to produce." 

Sir James Blyth, 
chief executive erf Boots 

T he property Industry 
may have escaped the 
scrutiny in the UK 
Department of Trade 
and Industry’s white paper on 
competitiveness, but as the 
above comment demonstrates, 
it has no grounds for compla- 
cency. 

Speaking at a conference on 
Property in the Economy in 
Cardiff on Monday, Sir James 
Blyth attacked the property 
industry's lack of regard for 
the needs of its customers. 

At a time when the rest of 
the commercial world is 
becoming more flexible and 
responsive to customer needs, 
the property industry has 
become more rigid and uni- 
form, Sir James said. The 
industry has allowed itself to 
be dominated by the needs of 
its financiers, leading to 
a lack of flexibility and innova- 
tion in the leases it offers 
tenants. 

The traditional institutional 
lease, with its 25-year duration 
and five-yearly, upward-only 
rent reviews, has led to distor- 
tions in the market, he said 
“In the UK much of the eco- 
nomic success of the past 
decade has come from freeing 
up the supply-side of the econ- 
omy, and from recognising the 
pre-eminence of the customer. 
It is important that property, 
too, responds to these impera- 


tives if the UK economy is to 
expand further,'’ Sir James 
added. 

It is a familiar thump Thn 
possibility that the workings of 
the commercial pro pe rt y mar- 
ket damage the wider economy 
has been raised repeatedly 
over the past couple erf years, 
by academics, businesses, 
lobby groups, the Bank of 
England and the government. 

The Department of the Envi- 
ronment has consulted widely 
on the case for reforming a 
number of the industry's prac- 
tices, Including outlawing 
upward-only rent reviews and 
confidentiality clauses, which 
restrict the available informa- 
tion an rent reviews. 'Ifce Trea- 
sury is also thought to be 
concerned that upward-only 
rent reviews may be at odds 
with its anti-inflationary 
policies. 

The government has already 
accepted the case for reforming 
the current law on privity of 
contract, under which a tenant 
bears the responsibility of pay- 
ing rent if a lease has been 
passed on to another tenant 
who subsequently defaults. 


Property investors oppose 
government intervention in 
the industry. Many investors 
fear that legislation could 
scare away institutions. There 
is a precedent in 1965, Institu- 
tions virtually abandoned the 
residential property market fol- 
lowing pro-tenant legislation. 
Developers and Investors 
require a reasonable return 
over a sufficiently l o n g period 
to Justify capital Investment; 
restrictive legislation could 
deter many developers from 

making long -tram investments. 

The government may be dis- 
suaded from enacting restric- 
tive legislation If it can be per- 
suaded that the industry can 
sort out its own problems. 

L andlords and tenants, 
for instance, may be 
able to reach a compro- 
mise over the length of 
leases. Most institutions are 
content with 15-year leases and 
would even accept 10-year 
ones. The 1960s property glut 
has given tenants a strong bar- 
gaining position, forcing land- 
lords to agree to short leases, 
with regular break-options. 


Even If landlords and ten- 
ants reach a compromise, the 
sector remains open to attack, 
as Its problems extend beyond 
lease structures. 

Its past mistakes are all too 
visible: the glut of offices in 
central London is evidence of 
that 

The UK arguably invested 
too much on new buildings in 
the second half of the 1960s. at 
the expense of other forms of 
investment. Britain had the 
highest increase in non-resi- 
rinmtiai b uilding investment of 
any of the Group of Seven 
economies and the lowest rise 
In Investment in plant and 
machinery. 

Yet many argue that a for 
greater problem facing the 
industry is the time lag 
between planning and complet- 
ing a speculative development. 
The risk that economic condi- 
tions change radically in 
th e Hm> a building Is under 
construction makes the indus- 
try highly cyclical, prone, for 
example, to periods of over- 
supply. 

A recent report on p ro p e rt y 
cycles published by the Royal 
Institution of Chartered Sur- 
veyors, recommended that the 
industry should consider how 
’the speed of the development 
responses could be accelerated, 
how market signals could be 
read with greater circumspec- 
tion and how other ways of 
meeting occupier require- 
ments, such as custom build- 
ing, could be encouraged". 

Responding to these sugges- 
tions would help introduce 
more stability mi ght also 
deflect charges that the indus- 
try undermines the health of 
the economy as a whole. 



T he rate of return from 
commercial property 
Investments fell in 
April, according to the Invest- 
ment Property Databank, a 
research group. 

The All-Property Total 
Return feD from 3.1 per cent 
to 1.7 per cent, while capital 
values increased by 1-0 per 
cent, compared with 2.4 per 
cent in March. But there was 
an improvement in the year- 
on-year movement in capital 
values, which rose to 2&J) per 
cent from 24^ per cent for the 
12 months to March. 

Total returns slowed across 
the board in April, as the rate 
of capital growth declined 
across all three sectors. Retail 
prope rly produced a total 
re turn of L8 per emit for the 
month, down from 3 per cent, 
while office and industrial 


property both returned 1.6 
per cent, a fall of 1.5 points 
and 1.9 points respectively. 

The year-on-year figures for 
total returns continue to 
improve. In the retail sector, 
total returns rose to 2&6 per 
cent for the year to April, 
compared with 3&3 per cent 
for die year to March. Over 
the year, capital values rose 
by 17.4 per cent and rents 
declined by L7 per cent 

In tbe office sector, total 
retains rose to 24.7 per cent, 
a 1.3 percentage point 
increase on the year to 
March. This stemmed from 
improved capital and rental 
performances which moved 
by 13.4 per cent and -10L5 per 
cent, re spect i vely. Industrial 
prop er t y ’s year-on-year total 
returns rose by 1.6 percentage 
paints to 25JJ per cent 


Matthews: 

John Matthews, 49, has 
resigned as chief executive of 
iodosuez Capital, the London 
merchant banking arm of 
France's Banque Inriosuez. His 
departure increases specula- 
tion that he is preparing to 
help his old boss, Brian Beazer, 
make a stock market come- 
back. 

Matthews joined Indosuez in 
October 1991 a few months 
after quitting Beazer, the fast 

expanding construction group. 
Banque Indosuez said that it 
was “very much an a ml cahle 
parting". Matthews is reluctant 
to elaborate on bis reasons for 
leaving save to say that Indo- 
suez’s ambitions for London 
differed from his own both In 
terms of size and capital. 


FINANCIAL TIMES FRIDAY MAY 27 1594 

PEOPLE 

possible reunion with Beazer 


Matthews (right), who 
worked for County NatWest for 
17 years, made his name as the 
merchant banker who helped 
Brian Beazer transform his 
small West Country building 
firm into one of Britain's big- 
gest obstruction companies In 
teas than a fleradq . When Mat- 
thews brought Beazer his first 
deal, the company was capital- 
ised at £4m. At Its peak, Beazer 
was capitalised at over £80Qm 
and at the end erf 1983 Mat 
thews moved across from 
County to be Bearer's deputy 
chief executive. 

However, Beazer expanded 
too rapidly, foil out of favour 
with the stock market and 
Matthews stepped down from a 
heavily-indebted Beazer a few 



mouths before it fell into the 
hands of Hanson In September 

1991. 


Matthews is taking the sum- 
mer off to ponder his next 
move. He does not rule out 

♦gaming up rwira a gain with his 


old boss, Brian Beazer, 58, who 
haa been spending most of his 
time in the TO where he is a 
partner in Louis Nicoud, a Mew 
York stock broker, and chair- 
man of Beazer Heines USA. a 
Georgia-based housebuilder, 
which was floated off by Han- 
son earlier this year- 
“Brian and I see ourselves as 
Investors, getting involved 
when needs be, rather than 
full-time partners,"' says Mat- 
thews. At the moment they are 
talking about backing the 
stock market ambitions of 
another ex-Beazer executive. 
Chris Pople, hut are open to 
ideas, says Matthews. Indeed, 
he’s prepared to offer a mag- 
num of champagne for the best 
idea. 


BT rings 
the changes 

Tony Booth, is retiring as 
managing director of BTs spe- 
cial businesses division. The 
division - which includes BTs 
highly successful Cellnet cellu- 
lar mobile joint venture with 
Securtcor - is thought to be a 
likely target for reorganisation, 
with its businesses integrated 
into BTs main, service divi- 
sions. 

Rupert Gavin has been 
appointed director of BTs 
Information, Communications 
and E nte r ta inment programme 
- a key unit for developing the 
inter-active multimedia ser- 
vices which BT hopes will be 
money-spinners later this 
decade. 

Gavin, 39, has spent 11 years 
in advertising, and is expected 
to give a consumer edge to 
BTs multimedia projects. His 
predecessor, Paul Reynolds, 
moves to become general man- 
ager of BTs customer service 
division in Scotland. 

■ Duncan Sperry has been 
promoted to general manager 
of VERIFONE’s UK operations. 

■ Michael Hunt, formerly 
vice-president, international, at 
Software 2000, has been 
appointed prudent of Europe 
for ROSS SYSTEMS. 

■ Douglas McKenzie, formerly 
an md at Fife Indmar, has been 
appointed md of METHODE 
ELECTRONICS Dumbarton 
plant 

■ Inder DMngr a has been 
appointed md of EXECOM 
(UK). 

■ John Rogers has been 
appointed director in charge, 


Daniel Gallagher director of 

npar aHimg a fld fmari^y find 

Geoffrey Mitchell director of 
sales and marketing at RACAL 
Messenger. 

■ Chris Bantoft, formerly md 
of Alcatel Business Systems, 
has been appointed md of ACC. 

■ Roger Whitehead, formerly 
sales & marketing director - 
technical platforms, at Unisys, 
has been appointed business 
development director - 
Europe, Africa and the Middle 
East at WANG. 

■ Katsnji Kurabayashi, 
previously md of Oki Data 
Systems In Japan, has been 
appointed md of Oki (UK); be 
succeeds Hiroshi Kojlma. 

■ Jeff G raham, UK md (rf 
SOFTWARE AG, has also been 
appointed director of the 
company's western European 
region. 

■ Mark Edwards has been 
appointed md of CRTs 
mul timedia publishing 
division; he moves from 
Microsoft. 

■ Andrew Hind (below) has 
been appointed md of 
SIEMENS Measurements; he 
moves from Siemens medical 

group. 



Tucker moves 
up at the Bank 

Following the Bonk of 
England's recent restructuring, 
Paul Tucker is to became head 
(rf the Bank’s gilt-edged divi- 
sion on July 4. The highflying 
36-year-old has been a senior 
manager in the Bank's gilts 
and money markets division 
for the past two years, but 
before that he was personal 
secretary to the ItacmerBank of 
En gland governor, Lord Kings- 

dUWEL 

Former colleagues describe 
him as well-respected and 
ambitious, and “not afraid to 
ruffle a few feathers. He knows 
his stuff and doesn’t suffer 
fools gladly”. 

Tucker will continue report- 
ing to his former boss, John 
Townend, who will become a 
deputy director in charge of 
gilts, money markets and for- 
eign exchange. 

Terry Smeeton, an old hand 
In the Bank’s foreign exchange 
department, will be the divi- 
sion head in charge of foreign 
exchange. 

Enterprising 

database 

■ Peter Benton, a former 
director general of the British 
Institute of Management, is to 
become chairman of Enter- 
prise Adventure, a database 
that aims to bring together 
private Investors and small 
companies seeking early stage 
finance. 

Enterprise Adventure is a 
subsidiary of ferterprise Sup- 
port Group, where Benton is 
already chairman. The group 


works with the Department of 
Trade ami Industry on the gov- 
ernment’s Enterprise Initia- 
tive, funding for which Is run- 
ning out later this year. 

Enterpri se Adventure hopes 
to provide business angels 
with an on-line database of 
private companies seeking 
development and expansion 
capital. 

■ tars Evander, bead of 
SVKNSKA 

HANDELSBANKEN's UK 
region, has been appointed 
hfig ri nf HgaMdaiiton 
Markets, based in London. 

■ Simon Walker has been 
promoted to director of 
TTLNEY&Co. 

■ Andrew Berger, formerly an 
md of Wertheim Schroder, has 
been appointed md of 
LEHMAN BROTHERS' 
financial services division in 
Europe and the Middle East, 
based in London. Jerry 
Goughian, formerly a director 
of Morgan Stanley, has been 
appointed an md and deputy 
head of international capital 
markets. 

■ Michael Cobb and Ruth 
Keattch have been appointed 
directors of GRANVILLE 
DAVIES. 

■ Tom Gallagher, general 
manager, consumer banking, 
Bank of New Zealand, part of 
National Australia Bank 
Group, has been appointed 
chief executive of YORKSHIRE 
BANK, also part of NABG, on 
the retirement of David 
Knight 

■ Sbolto Hedderwick has been 
appointed to the board of 
TANGIBLE SECURITIES. 

■ Peter Bickerton and. David 
Mflne have joined the board of 
CEDEF GROUP. 


v* HhreOesfltfre (Bnvssdfcrtiefghu) 



PUBUC AUCTION of exceptional estate of 
.The CHATEAU-GOIF OB la TOURHETTE- 


£ Loti. 

•The Chateau-Golf as to Toumette- made of two 18 note Coif 
Courses 

*5 to 6 tee-ora m a spiereM emfrornwnent wWi cuhum to a 
Historical m*Kon IXV1I tn century! d»U 5 uotlJuJk*igs and sport racSttJes - 

Provisionally sold at the prim nf 51,000,000 REF 

> tot 2. 

mie: parcel of lam) - crossing of the rue de BaucMmont and 
rue de b Toumette* 

ProrisonaMy sold at tkn prko nf 700,000 BEF 

TOM area for tots i & s as uer property tttei i»« 2ta sea 

> Lot 3. 

set of Equipemems Immovable by destination and assigned to 
thfl maintenance and the running of the ootffflst to be 
obtained at the HotaJre's offices) 

Prov is tomdiy snU at thn prim of 200/100 BEF. 

Urban planning; • CMMtoure. outouflcUngs, pent and part or the Golf 
courses: Part zone -■ woods: Forest zone ■ mature: agriculture zone with 
vatatate landscape ■* pareai of brat: Agncusure zone, occupation: ttqutoes 
at tne Hoove's offices. 

Bank guaranty of 3OJQQO0OQBB : to be produced at the auction. 

For visits: by appotfitement only - service immotUBw Notartai ■ 
32/2/502. 43 J3 

puttie auction: Monday stti jure 1994 at 5 pm 

Uotei-Sud de Nlvefles - Cftaussee de Mons. 22 - Nlvelles iHigway 

BrusseK-parts - exit Nivefles-Sud) 

*> For iafamation, 

Hotair* tam-Pav 1 HGWM • Hbm 32/67/MA4.19 - 
Fax: 32/67/64^1.26 

Nofatro JdM DOPOBT - PhoM: 32/2/5 1 3J9.55 - 
Faxt 32/2/513.97.18 


Colliers International 
HOTEL REALTY 


"O BE SOLD 3 V TENDER 


THE LANDMARK HOTEL 

Presently Operating As The 

SHERATON LANDMARK HOTEL 

1400 Robson Street 

Vancouver, British Columbia, Canada 

Strategically Located 42 Storey hotel. 

356 Rooms. Roof-top revolving Restaurant. 

MAJOR CONFERENCE CENTRE. 

To Register tor Sale Documents, Contact die Exclusive Agents. 
TOM ANDREWS AND COUN PATON 
TEL (6041 681 -4111 
FAX (604) 684-7104 

colliers international hotel Realty 
15TH FLOOR. 200 GRANVILLE STREET 

Vancouver, B.C., Canada V6C2R6 


COMMERCIAL PROPERTY 

appearsevoy Friday. For advertising details or for furrier iafixiuadon 
please contact Emma Mullaiy on 
0713733974 


Grampian Regional Council 
Crown Estate Commissioners 

WATER BOTTLING FACILITY 
BRAES OF GLENLTVET 

near Tomintonl, Moray 

Tbe opportunity is offered to acquire assets which have recently 
been in use as a water bottling plant. Tbe assets consist of 
factory, warehouse and office premises purpose built for water 
production in 1993 and served by two separate springs which 
rise in tbe Grampian Mountains in an area where laud usage is 
restricted to sheep grazing and traditional field sporting 
activities. Tbe quality of the spring water is very high and has 
been voted tbe overall winner in a comparison survey published 
in tbe national press. 

The premises consist of a factory comprising 12£00 sqJL of 
workshop and warehousing space, with an office block of 1,350 
sq. ft. on a site of 4 J acres. Tbe premises are located in tbe 
Braes of Glenlivet to die sooth of the B900S from Dufftown to 
Tomintoul and lie in the heart of the Speyside whisky producing 
area. The springs have been capped and linked to die factory by 
Large bore pipes. 

Tfae assets are offered for lease by tender and further particulars 
and tender forms can be obtained from tbe Property Department 
(Estates), Grampian Regional Council, Woodbill House, 
Aberdeen AB9 2LU. Tel 0224 664260. 


Colliers international 
Hotel Realty 


TO BE SOLD BY TENDER 


The 

Burnaby Villa 

Hotel & conference Centre 

Trans Canada Highway & WiHingdon 
Burnaby, British Columbia, Canada 

A WELL POSITIONED 275 ROOM, 3 STAR HOTEL. 
■EXCELLENT CONFERENCE FACILITIES. 

WELL ESTABLISHED FOOD 6 BEVERAGE BUSINESS. 
To Register Cor Sale Documents, Contact the Exclusive Agents. 

TOM ANDREWS AND COUN PATON 
TEL (604) 681-4111 
FAX (604) 684-7104 

Colliers international Hotel realty 
15th Floor. 200 Granville street 
Vancouver, B.C.. Canada vgc 2R6 



PRIME DEVELOPMENT SITE 

00 the North Wales Expressway to SERVICE AREA inc. 
PETROUMOfTEL/RESIAURANT. 

3.86 acre site accessed trim both dfreettons 
linked to man Count rouse. 

EwJtaKiES Petes Bhamwell 0492 533257 


MOSCOW EXECUTIVE OFFICE SUITES 

Immed i ate oocapanc y in the heart of Moscow. Fully furnished & equipped. 
Sale, secure setting within the fonr-sm Kadisson hotel. 

ClB today. American Business Centers 
Tefc (7095) 941-8X15 or F« (7502) 224-1187. 

Into b U&Td (714) 752-6577 Fn (714) 752450. 


UNIQUE 
DEVELOPMENT 
& PROPERTY 
OPPORTUNITY 

FRANCE 

Approximately 20 minutes front 
the Channel tunnel enhance and 
within 2 kms from A26 
motorway (main entry route to 
Europe) for Calais and Belgium, 
60 acres (will divide) with 
otalnriag planning permission for 
hotel up to 200 rooms as well as 
a housing project and business 
park. Situated iu a beautiful 
setting within a wooded river 
valley where the River L'Aa, 
famous for its trout fi s hin g , runs 
through the site Cor almost 3 kms, 
and near to an international 
standard golf course. 

An excellent opportunity for ibis 
growth region of France. 
Freehold for sale ot other 
arrangements. 

Please contact: 

Jeff Vickers, DPU, 32 Broadwkk 
Street, London W1VIFG. 

Tel: 071 439 7786. 


LAKE DISTRICT 

Wefl Established General Store 
with extensive 4 Be dr oorocd 
private accommodation with 
Lake Views. Substantial 
turnover and profit 
Asking Price 
£425,000 phuSJLV. 
Principals only apply to: 
Lowther Scotr-Haiden, Penrith 
| TeL 0768 64541 Fax: 0768 65578 


Holloway Road, 
London N7 

Former Cinema Btiilding with 
Consent granted for a mixed 
scheme. Also suitable for 
RESIDENTIAL A LEISURE. 

Freehold For Sale 

LAWRENCE MICHAEL 

63 South Mntecm St. LcaakM W1Y 1HH 

Tel 071-495 5443 


LAND REQUIRED 

OoTsmrrs ot London 

2- 15 acre rural industrial site is 
required to purchase or lease. 

| Write to Bax B2403, Financial Times, 
Ok Southwark Bridge, 
London SE19HL 


KNICmTSBRlDOe SW1, Mtf-contaJmd 
oft* tuta 2000 sq * to M. Otacfly tarring 
Hyde Parte. Impreeshe Iwdmerfa tuUnp. 
UR. c/h, porterage. Rant CIS psf. 
Matter and Matter. Tafc 071 23S goal or 
IMtenHi* Hatton. TtfStm SWOBBS 

PICCADILLY - Quality Mrvtced omen 
accommodaQan nmilnblo in escenom 
location. Rnteta terms. T* ori 734 73» 

WC1 GRAYS ML Naur awvteed tumUhtd 
offices, (Soso M Chancery Lana tube. 

Rooms ta rn 100 aq It Cad 071 3834081 or 

CT71 6238564 


a* TO SAVE ALL # 
THESE TREES WE \ 
•• HELP CHOP 

nmnu tutc nur ft 



• to 0 |||' 


TropicJ banfand nea w marc 
nfnUc id ionai dm odo lira in the 


H^ptmferhntetn&eBneda 


other tna dot suad is rfrir way. 

So 1 WWF project in Com Rka a 
KtendBBg mji of kftag 1 tree vkhoot 
triaging don snenj others sound it 
And ho* to morr b widmi MUorrig 
1 fndi dircngh the snnrBmSnj nto. 

If the nmfiiesB sc wed wijdj, tbey 
ca be mtd inn. HdpWWFpne 
tbs in DnfistHi wood the mid, bp 
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arUnibdoK 

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WWF 

World Wide Fund For Nature 

fataml Stands, llte Gfad. Mental 


IOTICE OF FULL REDSMFTJOr 


Easln» Kodak C&fvaiy 

63MOonMrtMeSHbBidMledDBiien&raidM2>ftf 

NOTICE E HEREBY GIVEN, purenantto the Baal Agency Agreement da ted as 
of Judy 1, 1586 (the "Fiscal Agency Agreement* 1 ), between Eastman Kodak Company 
(the "Company") and Citibank, NA* as fiacal Agent, relating to the Company's 
6 3/8%CtravertibleSubortfinatKdDrijentun»Due20Ql(the' , Debent»Jie<),matme 

Company has elected to redeem all the outstanding Debentures on fu*; 27,199* (the 

"Redemption Date") at the redemption price of 103.19% at die principal amount 
thereof, ti -^ her with accrued interest from July 1, 1993 tn the Redemption Date (tfa; 
“Redemption Price"). 

Fhyment of the Redemption Price will be made on or after the Redemption Date 
UPON PRESENTATION AND SURRENDER of the Debentures (together withafl 
’ 3, 1994 and subsequent thereto in the a»e of 
■ DebgTtures) at an appropriate offioe of one of the paying and co n version 
agents fated below, depend i ng upon whether the Debenture is a Bearer Debenture 
ora Registered Debenture, 

On and after the Rpdemp rion Date, the Red emp tion Price will become due and 
payable upon each Debenture and interest thereon shah case to acme. The 
Debentures will no longer be outstanding after the Redemption Dale. 

If any Bearer Debenture aurrendoed lor redemption b not aoccamnnled by an 
appurtenant coupons matute/uiy L 1994 and sohaequoit thereto, the amount of 
any such miming coupons wiH be rin di rt ed from the Redemp ti on Woe othewtae 
payable. Nopnymeni wUhmspect to any Bearer Debenture will be made aUny offioe 

of the BsoJ Agent or an y oflice of any piaytfig agent far the U ntied S t ate* nor will any 

such payment be made by check maned to an addren in tbe United States or by 
transfer to an account in me United States. 

flight of CreroriM 

Holdens of Debentures have the right, on or before the dose at business on the 


the Deben tur ea and rilu iuim ured coupons attached fterekv to theofflee of oneof the 

paying and conventan agents listed bekrw. The Debentures may be converted into 

shares of Common Stock at the Conversion Price of S4L52 a gg regate principal 

amount of Debentures for each share o£ Common Stock. The dosing prfceaf the 

Common Stodc on the New York Stock Exchange c*n May 20, 1994 was 45 1/2 per 

share. 

faying md CanrmfaaAgtBte 
The paying and conv e rs i on a _ 

Debentures should be surrendered for 1 


Ary questions with respect to tbe procedures i 

be directed to an appropriate agoit. 


Bearer Drirentn 




ANHHkTmMUCI 

UlfiMunb 

MOM 


IxkMKSRHI 

Brian 

CMariiUL 

|Lnrin0&A. 

dAnuW>b-ltn» 


■as 

■M0O2A** 


S u nlC U f fc Hl— nawp 


ntaFMaUl 

Pm. tact 


COtaUA 
PtazBUWtatfaa Hnrp*dl5(SM 
Utah# AnmdM 

TtaMwtnk 


Brfifltmtd Primflmfi 

UL 

CcrpooU Tsui Saska (tmarowfljSA. 

1ll*M&Mt,9>>F*ar l*wwMeH-HmM 

NwYtaWWW 

(MMSUMTHTOUptal 


May 27, 1994 


Kodak Company 



The undoubted bantam and towtot appate of Bra Prtndpafltr wg 
be oxanrinaui with particular mnpbaate on Banking, FlMmaa 
Baabwaa flardoaa said the au cc an s M Conte w nce Indaariy, t 

3— n around thn woiM by » mWon ptan mums thta aa nn y wW bo 
m Ideal advertising medtotn tor afl busittensea tnvofwd to the 
HanOgaafim eoenonqr. 

For na edttortni synopsis mxt advertising Infonnatioa call 

DomMe Good In Parfa on (1) 42 97 06 30 or fax d) 42 97 M 2 d 


FT Surveys 


















V 



l*aa4 Impart 
■-*» 3rtmtirnmV 


■. . .»•'■ 1 ^3 


*-***2lr* 


Mia* 0 


*** **■%, 


FINANCIAL TIMES FREDAY MAY 27 1994 


MANAGEMENT 


A small cultural revolution 
is taking place tn the 
shadow of the Great Wan 
of China, in MDy country two 
hours' drive north-east of Beijing. 

China’s first outdoor 
management training centre 
opened there this month near the 
remote hamlet of Jin Shan Lin, 
The centre, which has the 
government's blessing but is 
operated by an independent 
I foreign firm, ts a microcosm of 
the country’s economic 

liberalisation. 

It is ran by I Will Not Complain 
International* a training company 
based in Chiba, near Tokyo in 
Japan. Its mission is to nurture 
western management values such 
as innovation, independence and 

originality among the 

entrepreneurial leaders of China’s 
economic expansion and the staff 
of multiiiutfanals in the region. 

If IWNCs recent experience 
in helping nnthinldiigly loyal 
Japanese executives to think for 
themselves is any guide, this 
latest western idea to enter 
China has a good chance of taking 
root 

IWNC bad already winked for 
a US-Chinese joint venture before 
opening a base in China. The flret 
customers at fbe centre wiD be 



William Dawkins 
on a Japan-based 
outdoor tr aining 
course that is not 
the usual hell 

Learning 
to trust 
others in 
China 


July followed by the Asta-Pactfic 
regional managers of Smirnoff 
in October. 

IW NCs founder, Anthony 
Willoughby, a professional 
explorer and former salesman, 
opened fate Japanese o ut war d 
bound centre five years ago to 
strike a civilising challeng e to 
the “bell camp" style of 
traditional Japanese outdoor 
training centres. 

Since start-up, 5,000 staff have 
been through the IWNC course 
at Chiba, mainly from foreign 
groups such as Du Pont, Beater 
and American Telephone and 
Telegraph, but also Including a 
handful of Japanese groups such 
as Kanenurtsu, the trading house. 

In spite of Japan's deep 
recession, the number of 
partidtpants rose 30 per cent to 
1,500 last year, of which 
four-fifths were repeats or direct 
referrals. Willoughby believes 
tize recession may hove helped 
him by encouraging Japanese 
companies to question the value 
of blind obedience, thereby 
i mpro v ing management 
productivity. 

Annual t u rnover exceeds |lm 
(£600,000) and a Kenyan centre, 
operated under franchise, is to 
open in July. 

Willoughby bad the idea of 
launching a training school five 
years ago, after taking part In 
a Japanese-style course. It 



toctacfed eariy morning cold 
showers and ritual screaming 
of slogans such as “to think you 
will be liked by your subordinates 
is wishful thinking”. 

He had hoped to sharpen his 
own talents as a leather goods 
salesman. But the experience also 
suggested that there might be 
a Japanese market for a more 
creative kind of training, along 
western fines. 

Japan’s hierarchical 
management tradition demands 
loyalty, but it does not always 
breed trust, observes Wffloaghby. 
The subordination of individual 
needs to those of the company, 
as embodied in ben camp t raining , 
can also stifle original thought, 
preventing executives from 
frdfilhng their potential, he 
argues. 

Accordingly, the physical tasks 
Willoughby has chosen for his 
three-day course are light enough 
to make tiie experience fun, hut 
demanding enough courage to 
reinforce participants’ trust in 
themselves and each other. 

While the Chinese have never 
been noted for lack of 


selfaxjnfldencc, they could benefit 
from another of IWNCTs aims - 
to break down social barriers 
between different nationalities 
In the same management team. 

In one task, for example, team 
members must climb an gm pole 
and leap from the top to catch 
a trapeze, while colleagues bold 
their safety harness. In another, 
members take it in turns to AD 
backwards off a 2m platform into 
colleagues’ arms. 

At the end of the day, 
participants gather for a large 
and liquid meal in the c o ur t y ard 
of an old farmhouse with a view 
of the Great Wall. The 
that take place at these events, 
as formerly reticent participants 
relax, can be the most valuable 
part of the course, says 
Wfilaugbby. 

Equally, senior managers can 
retire for a board meeting in an 
open 17th century stnne turret 
with a commanding view of the 
Cheat Wall and surrounding Mils. 

The course strives for an 
un-Japanese light-hearted tone, 
embodied in the company’s name. 
This comes fro m the promise not 
to grumble that WQkraghby has 
extracted from members of iris 
vartons exploration expeditions 
. since a trip to Papua Nfew Guinea 
was spoilt by someone Who griped 
when food ran low. 

One danse is: T will not 
complain if I get eaten or trodden 
an by animals." Another is: “I 

will not complain if two porters/ 
camels/ horses are employed with 
the sole responsibility of carrying 
wine.” 

Joking apart, the IWNC name 
is supposed to underline self- 
reliance, a theme that parallels 
the Japanese admiration of 
tmcamphdiiing perseverance. 
Indeed, one Japanese businessman 
has praised the expedition rales 
as a philosophy of life. 

As in Japan, IWNCs matn 
customers in China are Hkely to 
be foreign companies or joint 
ventures seeking to instill team 
spirit into teams of mixed 

natl miaWiM nnnj ha A p f mwk 

Hs first, last year, was an 
alliance between SnrithKHnc 
Beecham, the US pharmaceuticals 
group, and the Chinese 
government The group asked 
IWNC to run an outward bound 
course for 70 Chinese salesmen 
at its own headquarters in 
Tianjin. 

Their response was mixed; some 
thought the course taught them 
to achieve higher goals, but 
others, mainly older members, 
would have pre fe rred to spend 
the money on buying presents 
for customers. 

True to the contract, however, 
they did not complain. 


A piece of seemingly per- 
verse management wisdom 
is beginning to sink In 
among the boardrooms of 
the world's beleaguered computer 
giants: “Doing what you do best can 
destroy you.” 

More accurately, perhaps, compa- 
nies can be destroyed by continuing 
to do what they do best in the face 
of evidence that their business envi- 
ronment has 

US manufacturers International 
Business M achines, Digital Equip- 
ment and Unisys are examples. 
They are all masters of the art of 
big computer design, and produc- 
tion, yet their market is in retreat 
as customers increasingly look to 
networks of smaller computers for 
more cost-effective data processing. 
The foiling price of technology, 
which cot one third off the cost of 
IBM mainframes last year alone, is 
a further headache for these cornpa- 


Unisys’s big productivity leap 



Currant number of cn<)toy»e» and ravrawe par employee, 1988-05 


Cimm number of employees 
10CWJOQ _ 


80,000 _ 


aoooo _ 


TOfiOO m 


60,000 _ 


50000 - 


ftownua per employee (OPOa) 
- $T8Q 


*150 



$100 


soukk Baianm bmmks Jamas Unreti 


1808 98 90 91 82 93 M* 96* 


The consequences are well 
known. IBM is struggling to recover 
from three years of losses and large- 
scale redundancies while the future 
of Digital, once second only to IBM, 
looks uncertain at best 

But Unisys, which, three years ago 
looked dead in the water, is differ- 
ent. The product of the 1986 merger 
of Burroughs and Sparry, it has 
now been profitable for two succes- 
sive years after losing almost J2^bn 
(SUBGton) between 1989 and 199L Its 
firsbqparter results this year were 
encouraging with earnings per 
share, before special items, of 21 
cents a share against 16 cents the 
year before. 

The man widely credited with the 
recovery — chairman and c.hfaf exec- 
utive James Unruh. - is not merely 
content to rescue the company. 
Unruh, who took over in 1990 from 
Michael Bhunenfhal, is intent an re- 
establishing Unisys as a force in 
global data processing through a 
fundamental reorientation of Its 
strategy and management style. 

For a start, the new Unisys will 
be smaller. At its peak, the com- 
pany employed some 120,000 people 
- now the total is less than 50,000. 
Once revenues hovered around the 
JlObn mark; in 1993 they were 
tf.Tbn. 

Unisys wfll stQL tnqkw and sell 
computer hardware - “We are not 
going to become a computerless 
computer company,” Unruh says - 
but it will extend its already catho- 
lic attitude to sticking its own logo 
on other maker’s systems. The pro- 
cessor chips in its next generation 
of systems wifi be manufactured by 
its old rival IBM, for example. 

Unisys aims tn become an infor- 
mation management company: in 
Uhruh’s words, “clientdriven, tech- 
nology-based and servfoes-Jed”. This 
compares with the company's ear- 
lier attitude which amounted to a 
kind of technological fascism; “We 
used to develop toe next bigger, fas- 


From caterpillar 
to butterfly 

Tra ding computer manufacturer Unisys has come back 
to life after metamorphosis, writes Alan Cane 


ter version of what we were doing 
and send salespeople out to find 
customers who could put these 
things to use.” 

Unruh stopped Unisys concentrat- 
ing on what it could do best, mak- 
ing mainframe computers, and 
shifted the emphasis towards soft- 
ware and services. This is not new 
in itself. Every big computer maker 
is looking for increased revenues 
from services as profit margins on 
wflinfwnii« are squeezed. 

But Unruh has moved with a 
speed and conviction which has not 
been obvious at other companies. 
Staff numbers were almost halved 
in 12 months at a cost of more than 
*ibn. The company pulled out of 
s emicondu ctor manufacturing, sav- 
ing 5100m a year in the process. 

Payroll and other services were con- 
tracted to outside suppliers. 

Contraction at IBM and Digital 
has been drawn out and painful, 
leaving remaining staff anxious and 
demoralised. Digital is still faced 
with cutting a farther 20 per cent of 
its workforce. 

The major challenge for Unruh, 
however, was to transform Unisys 
rapidly from hardware manufac- 
turer to services company. It meant 
a big cultural shift An important 
appointment was Victor MUfar, for- 
merly with global advertising 
agency Saatcfai & Saatritri, engaged 


to head the company’s consulting 
side in November 1992. Millar had 
earlier been with toe accountancy 
firm Arthur Andersen for 25 years, 
where be was widely credited with 
the growth and success of its con- 
sulting operations. 

Earlier this year, Unruh also 
appointed Malcolm Coster as presi- 
dent of the company's Europe, Mid- 
dle East and Africa division. Coster, 
a software specialist and manage- 
ment consultant, bad bom head of 
international business development 
at Coopers & Lyhrand. Coster bel- 
ieves Unruh’s secret is a realisable 
vision of toe future: “He sees the 
butterfly the caterpillar can 
become, not an improved caterpil- 
lar." 


airline reservation systems and 
global funds transfer, for example. 

“We were able to build on that,” 
says Unruh. “We did not start from 
zero, but we are finding our way." 

The fact remains that of the com- 
pany's 6.000 professional services 
staff around the world, most are 
skilled in technical areas, such as 
project mangement and systems 
integration. “To a lesser extent, we 
have people with the ability to go to 
a client, understand their environ- 
ment and determine what technol- 
ogy is best for them. That is where 
we have had to learn more. We 
have some of that knowledge 
because historically we used to give 
it away. We did a lot of that for 
clients as part of getting their com- 
puter business. Part of the learning 


T he question remains how rap- process was understanding how to 
idly to diffose the knowledge*, charge for these services." 
and experience necessary for ^ Today, Unruh says, the company 
successful computer consultancy is limited in its growth by human 
through a hardware-based organisa- resources. “We could grow faster if 


.X. and experience necessary for '^. v 
successful computer consultancy u 
through a hardware-based organisa- r 
tion. Unisys's answer Is malting toe v 
best of what you have and buying o 
in what you lack. n 

Some of that experience, Unruh b 
says, is locked within, the company. 
Unisys’s size and global reach gives e 
it an enviable window on the busi- c 
ness issues facing its customers, £ 
Furthermore, it had a sound technl- £ 
cal background In same of the more 4 
difficult computing applications - 3 


we had more people with this kind 
of knowledge and capability. We do 
not have the time to retrain every- 
body." 

The evidence that Unruh's strat- 
egy is succeeding lies tn toe finan- 
cial results. More tellingly, perhaps, 
the time it takes customers to pay 
their bills is down from 87 days to 
47. “Only satisfied customers pay 
you," Unruh smDes. 


FOR SALE 

Luxury 

Health & fitness Club 
Chiswick W4 
Id prime position, 124)00 sq. ft 
Fully fitted gymnasium, apprax. 
3,000 sq. ft, Sauna, Stcwnroom. 

2 Aerobic Studios, Cafe. 
Enormous potential £200.000. 
Tel: 081-876 6977 

We're Urgently 
Looking For: 

Direct Contact lot Re fi ne ri es. 
Buyers or Mandate for Jet Fuel, 
Light Crude OH, Diesel, etc. 
Please contact 
Tel/Fax 519 443 8758 
Outario/Gmada 

LEGAL 

NOTICES 

NteOCGOTlcaiW 
IN THE UGH COOKTOP JUSTICE 
CHANCERY DIVISION 

WTKE MATTER OP BAMLBYBpJc 

-Hi- 

IN TOK MATTER Of 
THE COMPANIES ACT IMS 
NOTTCS IS HEREBY GIVEN (lul 4 PttSuno 
was on ibe 17th Miy 1994 presented bj Her 
Majesty t High Court at Ju*U«. Cfcawxij 
DWWdd let ti* cm&mmea o( Jfcr ciBodbnoo 
of the iksre premium account of ihe ilnw 
■maed Owfuy artlWLXS 
AND NOTICE is Mn gives feu the slid 
Petition is directed to be ta*nl before Mr 
Keffab* BocUey « ibe Rofid Court* of Jwtec. 
SwpiWi . >,■*»■ WC2A 2LL ua Wedactfagr to 
&b day of Joe 1994 

ANY Creditor or Shareholder of ilw aaW 
Company desiring mafptmt dm rndmif of in 
Order lot the Cftafiimition of tk< said 
ciaceiMJoo of abac premtan aeoaont should 

appear h ike time of kearina In persoo or by 

Ommtl feidM purpose 

A copy of Ibe (add Petition will be MM 10 
■ay sack person repairing ike nme by the 
mdermesttaud Mjeiwnt on payment Of the 

fegnlmi Oai£0 Cor the moe. 

Dared ddf ZJtt May 1994 
currau) CHANCE 
200 Alders Smeet 
London EC1A 4U 

fatso 

SoBekota tor the C oos o a n r 


PRIVATE SALE 

Printing Company/ Northern England, for sale due to 
Company rationalisation 

1. T/O in excess of £5,000,000 
Z Profits £1,000,000 pre-tax 

3. Excellent leasehold premises with development 

space 

4. BS5750 and quality recognitions 

5. Blue chip clients, growth market 

6. Excellent Management, intensive training policy, 
low staff turnover 

7. Very well equipped, strong asset base 

Enquiries in confidence. Bond (refundable) required 
to safeguard eventual purchaser. 

For further details write to Box B2S82, 
Financial Times , One Southwark Bridge, 
London SE3 9BL 


We ere instructed to offer for sale a successful and 
profitable computer maintenance company based in the 
home counties. The company has a turnover in excess 
of £1 million and a national UK client portfolio of blue 
chip companies, universities and Government agencies. 
We would alternatively consider separate offers for the 
maintenance contracts and stocks. 

Please reply to: Box B2877, Financial Times , ' 
One Southwark Bridge, London SE1 9HL 


SPECIALIST GLASS 
PROCESSING COMPANY 
FOR SALE. 

North West England. 

FtopOMi to ftw BZ98Q. HwneSI Tlmra, 
Ona SouUwuik Bridge. London SHI 8HL 


APPOINTMENTS 

Generalist Private Banker 


ncoeofid cawHdue win be a scanned todMing officer wdli ■ pwd practical 
knowledge of jatetMfkmri prfvMe banking prodw* and aef wa tow g a 

relevant high net worth efieot network, proven 

akPb- Salwy negotiable, Appfacante, «g*140-4S, 

educated w MBA aasdert 


educated to MSA HandafU wu nanrawm 

in Arabic and a finrepean language m addition to ® saiaest 
QDOfitfeaoe, adosing full cv, to Box A205A F&nndalHines. 

One Sotahwiufc Brid ge. London SB1 9UL 

Investment Banking 

A. a member of d* Jovcstmenl Banking irtlll d* 


fcnwtoas group yoa will puddpalo in bnyingAaeo^w. MHWy 

twioe*. aged ^ 

flneetiaMlanitwEninp^ 

ytaa 1 experience piefereWy gained irilh * 

ouimtudinB of US veeaztdes IndmHfy, >ad *** **P?**** “ 

coqioraflflkiwiid 


Ba* A20& Financial Timet. 


For Sale 

ENVIRONMENTAL 
ENGINEERING BUSINESS 

Leading nunwfactmer rod sappfier 
of uuesobic digesters for 
converting original Cum wastes to 
renewable energy and fertilizer. 
Compos making fealty, moulds, 
spares, machinery. Designs and 
customer base. Paent pemfing. 
Malta: Andy fa Agwdt 

BUSSELL BALDWIN Sc BBIGBT 
HerefenflU: 94S235S441 

OPPORTUNITY TO ACQUIRE 
small heket leasing portfolio 
with £7 mlRion outstanding. 
Current management willing 
to administer portfolio. 
Principals only. 

Reply vx. Bos B28&L PtamcMTtafie, 
One Soadwazk Bridge, Louden SB1 MIL 

OBITUARY 

BAILEY. PAUL TOWNSEND, 94 
Suddenly at Nne. 23 May. Sunrind by 
MNP Bata, cHkhen It* Douq. brottwr 
John, mat Hefcr, ntaon A nephama. «he 
. M uni hbn wy much. CaMwafcn et hit 
Dfk on Sunday 6 Juna. St JofW* Wood 
Ctaath fenfc (OuvMwuQ, &30 am fan*y 
A (Hands wsfcoma to coma and apeak. 
Dorados la B» Samadtm man PTBL 10 
Oran, Slough 8U 1QP. No gene ra 


BUSINESSES FOR SALE 


GREEK EXPORTS SJL 
ANNOUNCEMENT 

OF A REPEAT PUBLIC TENDER FOR THE HIGHEST BID 

GREEK EXPORTS SA^ registered in Athens at 17 Psnepisdinkw Street 
and legally r ep r e se nt ed, in its capacity as Liquidator, in accordance with 
articles 46a of Law 1892/1990, supplemented by article 14 of Law 
2000/1991 and wife decision No. 7820/92 of the Athens Conn of Appeal 
and following fee written sta te men r (Incoming ret no. 797/17534) of fee 
Creditor in pan. 1 of fee above sitide. 

announces 

A repeat pobbe lender for fee Ugbest bid, wife sealed, binding ofifera for fee 
purchase, in toto, of tbe assets of GENERAL INDUSTRIAL 
ENTERPRISES - VEPOL SJL, registered in Athens at 13 AmeriUs Street 
and engaged in fee processing and standardisation of tout and gardening 
products. Tbe factory is situated on fee Veou-Edessa national road on a 
self-owned plot of land of 46.9 stremmas (1 stremma a 1000 m*). A 
neighbouring plot of land of 12.9 stremmas is also owned by die company 
and belongs to fee operational space of tbe factory. Tbe buildings base a 
total area of 10,400 irf. 

1. Interested parties are invited to receive from fee Liquidator tbe Offering 
Memorandum and fee draft letter of guarantee in order to submit a 
sealed, binding offer to fee Athens notary public ap po in ted to Ibe public 
auction, Mn. Aodriam-Dimitn Ecomnnopoulou-Zapbeiropoulou, 18 
Voukouresoou Street, Sfe floor, teL +30-1-3618249 up to 1900 boors on 
Tuesday 21st June 1994. The offer must be submitted in person or by a 
legally a uthor ised representative. Offers submitted after the drne limit 
has expired will not be accepted or considered. 

2. The offers will be unsealed before fee above-mentioaed notary at 1100 
boms an Wednesday 22nd June 1994 wife fee liquidator in a tt endan c e. 
Persons who have submitted bids within die prescribed time limit may 
abo attend. 

3. The sealed, binding offers must dearly state fee offered price and 
method of payment for fee purchase in toto of fee company's assets and 
must be acc ompan ied, on penalty of n n nifkstton of fee offer, fay a letter 
of guarantee from a bank legally operating in Greece to fee amount of 
50,000,000 drachmas or tbe equivalent amount fat US. dollars. 

4. The dements of Ibe company's assets are sold and will be mu t sfa ied in 
ihdr actnai and legal coudbioa cm the date tbe sale contract is signed. 

3. Tbe Liquidator, tbe company and the majority creditors are not 
reapomSbks to my Segal oi actnal de&£» or for any shortcomings in the 
specifications of tbe objects fra sale nor for any deficiencies in their 
des cri ption or condition. 

6. Interested buyers (hereinafter referred to as Buyers) must, on their own 
responsibility, fbon their own opinion of the objects for sale and Slate, in 
their offer, feat Ibey are fiiOy aware of their actual and legal condition. 

7. Offers must not contain terms which could create vagueness or 
■ prevaricate their bindingness. The Liquidator and fee majority creditors 

have the rigid to reject offers which contain terms and options. 

8. In fee event feat fee highest bidder fails to appear and sign the relative 
salescontact within twenty (20) days from befog invited 10 do so by the 
liquidator, then the above guarantee of fifty million drachmas (Dn. 
504)00,000) is forfeited to fee liquidator to cover afl expenses of any 
land and time spent, without any obligation on his part to give any 
specific proof, or consider that it has been forfeited to turn as a penalty 
danse and ended it from the guarantor bank. 

9. Tbe highest bidder is fee person whose offer has been so judged by fee 
liquidator and approved by 51% of the creditors as being in their best 
interests. 

10. Tbe liquidator has no liability or obligation to participants in the tender, 
both wife regard to tbe drafting of fee evaluation report and to the 
proposal of the highest bidder; also, fee bqmdator is not liable and has no 
obligation towards participants in the tender In the event of its 
canceBatitm or repetition, if fee results should be deemed mubvcmrahle 
by thecreditoa. 

1L Those taking part in the lender and submitting offers do not acquire 4ny 
right or drim accruing from tbe present tender or the adjudication to fee 
highest bidder, against fee bquktator and the creditors far any reason or 
cause. 

12. Expenses for d» tranifer at ownership of the ssseta for sale will be borne 
by ibe Buyer. For any further information interested parties may apply 
IK 

GREEK EXPORTS S.A. 17 P*i*pistimk>u Street (1st Floor) 

TbL +30-1-3243U1-115 


PRIVATISATION 



^r, 


Red Star 


AS A PART OF THE 
PRIVATISATION PROGRAMME 
BRITISH RAILWAYS BOARD IS 
OFFERING FOR SALE A 
RESTRUCTURED RED STAR 
PARCELS BUSINESS 

Any interested party should contact 
Christine Emmett, 

Commercial Director, 

British Railways Board Vendor Unit, 
on the numbers below or at 
2nd Floor, Drayton House, 

30 Gordon Street, 

London WC1H0AN. 


Well established branding 

Only carrier to operate directly on 
British Rail network 

Unique nationwide chain of over 
200 outlets mostly located in, or 
near, British Rail stations 

Competitive advantages through 
ability to utilise railway for same 
day or overnight urgent delivery 


Restructured to focus on premium 
end of Express Parcels market 


For fu rther information: 

Telephone 071-383 4966 Facsimile 071-383 57)5 


louche 


(In Administrative Receivership) 

The Joint Administrative Receivers, J. B. Atkinson and A. P. Peters, offer 
for sale tbe business and assets of the above exhibition, design and 
construction company. 

■ Annual turnover of approx £2. 2m. 

■ Approx 2.6 acre freehold premises with planning permission for 
redevelopment for 40,000 sq. ft. approx, 61 use, in Warwick. 

■ Strong customer base In both tbe public and private sectors. 

■ Folly equipped workshop. 

Bor further information please contact Joe Atkinson or Greig Mitchell at 
"Touche Ross & Co., Co bn ore Gate, 2 Colmons Row; Birmingham B3 2 BN. 
Tel: 021 2002211. Fax-- 021 236 1513. 


Sa >ml i <t» far hn»«, JOwnH toe 


1 1» ad Wiki nrim • |»n 


AH Advertisement bookings are accepted subject to our catrent Ttnns and Conditions, copies of which are 
available by writing to The Advertisement Production Director, The Financial Tiroes, 

One Southwark Bridge, Loudon SE1 9HL Tel: 071 873 3223 Fax: 071 873 3064 





12 


TECHNOLOGY 


FINANCIAL TIMES FRIDAY MAY 27 1994 


The blood products 
^ j sector used to be a 

quiet backwater of 
Wgpji | the healthcare busi- 
ness. Now, -it is a 
rapidly growing 
JMgAoi monfiy -spinner. The 
engine of change 
—* has been biotechnol- 
ogy, and the treating of blood disor- 
der has created the first superstar 
of that business, California's 
Amgen. 

Five years ago, blood products 
meant substances derived from 
blood. TTiese would be used in blood 
transfusions an d as supplements in 
conditions such as haemophilia 
(uncontrolled bleeding). 

But the business suffered from 
high costs, owing to the laborious 
nature of collecting blood from 
donors, a lack of patent protection 
which in turn Exalted prices, and 
periodic scandals ova- contamina- 
tion. Few of the big pharmaceuti- 
cals companies bothered to get 
involved. 

What biotechnology did was to 
make possible the high-volume 
manufacture of some of the compo- 
nents of blood, even those that 
appear in only minute quantities in 
the body. 

Two big-selling products have 
been developed so far. The most 
dramatic sales have came from ery- 
thropoietin (EPO), a hormone pro- 
duced naturally by the body which 
Amgen has synthesised and com- 
mercialised as Epogen. 

EPO is used to treat anaemia, a 
condition which can arise when not 
enough EPO is made by the kid- 
neys. EPO travels via the blood- 
stream to the bone marrow were it 
stimulates the production of red 
blood cells. It Is these cells which 
carry ocsygen from the lungs to the 
rest of the body. 

For more than 30 years, patients 
with kidney disease have received 
dialysis, a mechanical treatment 
that rniminB mu ch of what the kid- 
ney does. But dialysis nrariih'ifts do 
not make EPO, so the patients 
develop anaemia. 

In the past these patients have 
received blood transfusions, an 
expensive and laborious procedure 
that carried risks of infection and 
other complications. Today the 
shortage of natural EPO can be 
addressed directly by Epogen. 
Amgen says that 80 per cent of dial- 
ysis patients in the OS now receive 
the drug. 

The second new drug stimulates 
the development of white blood ' 
cells - a central component of the 
body’s immune system - rather 
than red. Granulocyte colony stimu- 
lating factor (G-CSF) also works by 
stimulating the bone marrow, but 
tills time to produce white blood 
cells.' 

G-CSF Is sold by Amgen as Neu- 
pogen. It is used in the treatment of 
cancer patients because cfaemother- 


Daniel Green looks at the latest improvements in blood 
products, in a continuing series on drug advances 

Red, white and 
better all over 


WoridWlde blood factor sales 





Neupogari 

Epogen 


erythropoietin 


Johnson * Johnson Procritflqpn* - erythropoietin 


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gpy damages th» bone marrow and 
with it the body's defence mecha- 
nisms. 

Chemotherapy patients are espe- 
cially vulnerable to infection. Giv- 
ing them G-CSF not only allows 
them to improve their defences 
against infection but mnatis that 
more of the chemotherapy agent 
can be used to try to deal with the 
cancer. 

Both Epogen and Neupogen are 
made by the complicated, but now 
well-tested, techniques of genetic 
engineering. Scientists analyse 
human EPO and identify Its compo- 
nents. With that knowledge, they 
can calculate the shape of the gene 
that triggers the production of EPO 
'and scan thousands of human genes 
to search tor it. 

Once the correct human gene is 
identified, it is put in the ovary of a 
hamster. The egg that the ovary 
later releases is capable of making 
EPO. It divides many times and a 
master cell hank is built op. 

For large-scale manufacturing, 
cells from the master h ank are 
nourished in a fluid. As they grow 
they secrete EPO. The fluid is peri- 


odically removed and the EPO 
extracted, purified and bottled. 

Amgen received its first patent 
for this process in October 1987. 
Less than two years later, the US 
Food and Drug Administration 
approved its use for kidney 
patients. Neupogen was approved 
by the FDA in 1991. 

The drugs are among the most 
effective on the market today 
because they are chemically identi- 
cal to natural products of the body. 
As natural products they cannot be 
patented and cannot easily be 
improved upon. Amgen protects its 
discovery through patents on the 
manufacturing method and the uses 
of the drug. 

These patents are effective 
enough to have shut out competi- 
tion and allow high prices to be 
charged. One course of Neupogen 
costs about £800, for example, and a 
cancer patient may need several 
courses. 

The pay-off is that patient s are far 
less likely to have to come back into 
hospital to be treated for an infec- 
tion that the white blood cells 
would normally have fought off. 


That saves money on both hospital 
beds and the cocktail of antibiotics 
that would have to be administered. 

The combination of high price 
and potential savings to buyers 
translates into big profits for 
Amgen: the first three months of 
this year saw pre-tax profits of 
S9&5m (£62.3m) on sales of $345.7m. 

The success story has barely 
begun. According to analysts at 
stockbroker Lehman Brothers, by 
2000 Epogen win be the world's best 
selling drug with Neupogen not far 
behind in third place. Their com- 
bined sales will be more than $5bn a 
year, roughly the level of the UK 
National Health Sendee's annual 
budget today. 

The successes of Neupogen and 
Epogen have now attracted other 
companies into research and devel- 
opment programmes. They Inrimta 
Sandoz of Switzerland, winch has 
signed research agreements with 
North American biotechnology 
research centres Terry Fox 
Laboratories in Vancouver and 
Systemix in Palo Alto, California. 

One of the most advanced 
research programmes is at British. 


Biotechnology, in Oxford. It Is try- 
ing to combine the effectiveness of 
both Epogen and Neupogen by 
defending the bone marrow against 


Worth Watching ■ Andrew Fisher 


Tins can be done by first recog- 
nising that chemotherapy qgg pro 
kill cancers by destroying cells that 
are dividing. Chemotherapy does 
not distinguish between cancer ceDs 
jmri others thpt are dividing; such, 
as hair, which is why cancer 
patients often lose their hair. 

Bone marrow contains the cells, 
called stem cells, that divide and 
develop into a range of blood cells - 
red, white and the platelets which 
cause clotting. 

British Biotechnology's pro- 
gramme is to develop a drug the* 
temporarily switches off the divi- 
sion of stem cells. The cfaemother- 
spy agents will then leave the stem 
cells untouched and when the ther- 
apy is finished, they can be 
switched on again. 

“Rather than a treatment for the 
damage caused by chemot herapy , it 
is a prophylaxis or prevention of 
the effect." says Peter Lewis, direc- 
tor of research and development at 
British Biotechnology. 

The company is not the only one 
developing a stem cell protector. 
Sandoz, Sweden's Astra, and T-CeU 
Sciences, a California biotechnology 
company, are close behind. The 
pharmaceutical industry knows 
that there is a huge market to be 
tapped. 

This is a fau- cry from a decade 
ago when Epogen and Neupogen 
found themselves in virgin markets. 
There were no products they could 
compete with and there were no 
sales forces or doctors accustomed 
to selling or buying treatments. 

Amgen established a series of lic- 
ensing deals and joint ventures 
with big drugs companies even 
though many mmpanipa were scep- 
tical. “It was a completely novel 
drug," explains Paul Hooper, UK 
marketing director for Swiss com- 
pany Roche, now Amgen’s joint- 
venture partner in Europe for Epo- 
gen. 

Another company, one of the larg- - 
est in the US, turned down the 
chance to be a licensee. "We didn't 
recognise its potential," says a for- 
mer senior executive. "Later I felt 
like the record company man that 
turned down the Beatles. I won't be 

making that miateka again." 

The series continues next month with 
a look at pain killers. 

■ Articles over the last six months 

have looked at pharmaceutical 

advances in the fuHoaring arses: 


Multipie sclerosis . 

Sepsis , 

Prostate 

Wound hearing 

Obesity 

Contraceptives 


29 April 

31 March 

,_..25 February 

21 Jammy: 

— 23 December 1 
— 12 November 



5 {;«»/# 


Elegant speakers 
make their entrance 

Combining a taste fin: H-fi sound 
with a desire for elegant 
surroundings is not always easy 
- l oud speakers can be bulky and 
obtrusive. 

Dance London, a small UK 
company, has developed the 
Mirage speakers to help overcome 
thk riitamnuL Shaped rather like 
a pair of carved, squat lamp 
bases, they are made of durable 
ceramic and send out what Dance 
calls "all surround sound" at 
360° instead of the more limited 
direction of conventional 
speakers. 

The “sweet spot", where the 
listener sits at an equal distance 
from each speaker, is enlarged 
by the way the Mirage sends fhe 
sound on to a cone-shaped 
deflector and then out into the 
room. 

Using a Danish-made 
loudspeaker drive, the speakers 
are made in the UK; they wQI 
appear in shops later tins 
summer. The baric units priced 
at £230; a £199 sub-woofer (of 
special resin) for enhanced bass 
will cost an extra 099. 

Dance London : UK 081 5878229 

Brussels at the 
touch of a button 

Keeping up with the myriad 
reports, memos, speeches and 
other documents that pour out 
of Brussels and European capitals 
can be a nightmare. 

But for those who need access 
to European Union and UK 
gov ernm ent policy 
announcements, Context, a UK 
comp an y, has l a unc hed a new 
service in its series of CD-Kom 
products called Justis Official 
Press Releases. It combines the 
ED’S Rapid database of documents 
and communiques (from 1985) 
on economic, trade, science and 
technology and other sectors with 
. the Hemes database of more than 
35,000 UK government press 


It costs £587.50 a year and is 
updated quarterly. News released 
between updates is available from 
an on-line computer link. 

Context UK 671 2677055 

Smoother ride for 
wheelchairs 

Staircases are a Mg proble m for 
people in wheelchairs and spiral 
staircases present a particular 
challenge. TGR of Bologna tn 
Italy has developed its advanced 
Explorer chair to allow users to 
tackle complicated stairways - 
especially in offices and public 
buildings - without any help. 

It works through a combination 
of wheels and crawler tracks, 
with the seat balancing 
automatically to produce a level 
posture even when asc en d in g 
or descending. Powered by 
batteries and controlled by 
sensors, the Explorer (costing 
£12,000) is easily operated by a 
joystick. 

“It makes a tremendous 
difference to the disabled," says 
Howard Daly, head of Wheelchair 
Corporation, distributor for the 
UK and parts of continental 
Europe. Mouth control and voice 
activation features are also being 
developed. 

Wheelchair Corporation: UK 
081-9545848. 

Vehicle caught by 
neural network 

Neural networks, which recognise 
patterns rattier than carrying 
out vastly complicated 
calculations, are penetrating into 
a variety of Industrial and 
financial areas. Racal, the UK 
electronics company, has used 
the technology for its new vehicle 
number plate registration system 
designed to work in the day or 
night. 

Called Talon, its applications 
rover traffic monitoring and 
security operations. It was 
developed with Cambridge 
Neurodynandcs, a specialist in 
digital signal processing and 
pattern recognition. 

The system works by being 
"trained" to recognise a large 
number of repetitions id a set 
of characters. The network builds 
a statistical model which adapts 
to the features that make each 
character distinctive. Thus it also 
works well when number plates 
are crooked aid the numbers are 
partly hidden or dirty; 

Racal Radio: UK 0734875181 


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EITC ’94 

The European Information Technology Conference 1994 


vi.- m ■■ 

;• *ry ■•r.sw , 


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Organised by the European Commission 
DGIH - Industry 

6-8 June 1994, Palais des Congr&s, Brussels, Belgium 

This three-day event is aimed at Information Technology (IT) users, suppliers and developers, as 
well as technological and industrial policy makers. It brings together high-level industrialists, 
leading European strategists and IT users, who will examine the effect of IT on enterprise 
efficiency, on new markets and on employment. 

Among the topics to be discussed will be; 

A IT and Enterprise Efficiency 
A Information Infrastructure and New Markets 

A New Markets and Employment 

In addition to the Industry Commissioner Martin Bangemann and the President of the EU 
Councils of Ministers for Industry, Research and Energy, Kostas Simitis, some of the top 
speakers include: 

Percy Bamevik, CEO of ABB; Peter Bonfield , CEO of ICL; Jozef Cornu, President of Alcatel 
Network Systems; Michael Dertouzos, MIT, USA; Claude Desama, MEP, Chairman CERT; 
Annemarie Goedmakers, MEP; Michel Herv4, MEP; Roland Leuckel , Head of Investment 
Strategy, Banque Bruxelles Lambert; Peter Mihatsch, Chairman of Mannesmaxm Mobilfunk; 
Luis Palma-Feria , Member of the Board of IAPMEI; Vhsso Papandreou , Greek MP and Former 
EC Commissioner; Waring Partridge , Executive Vice President AT&T Multimedia; Robin Saxby , 
MD of ARM; Konrad Seitz, German Ambassador to Italy; Ian Strecker , Executive Vice President 
of Schlumberger; Franco Thtd, CEO of Gruppo Fininvest; Karl-Friedrich Triebold, Member of the 
Management Board of Bremer Vulkan; Jose Maria Vila , Vice President of ERXTEL. 

During the first day of the conference, top personalities in the world of IT R&D will discuss 
recent technological achievements and fixture prospects in eight parallel sessions under the 
general theme Technologies for an Information Infrastructure . These sessions address the IT 
topics covered in the Fourth Framework Programme for Research and Technological 
Development. 

A thematic exhibition which complements the conference, will illustrate the impact of the 
information infrastructure in three areas of activity - the workplace, mobility and leisure - and 
the role that the Community’s IT programme for Research and Technological Development plays 
in its realisation. 

For registration, kindly complete in CAPITALS and fax to the Administrative Secretariat ECCO (fax: +3 2/12 640 66 97) 
For farther information call: +32/2 647 87 80 


.First Name: 


Institnte/Company: 

Address: 


Telephone: Telefax: 

Registration Fee: □ Bfr 20,500 (including 3 lunches) □ I enclose a ehequafemucheque 
Date: .. .Signature: 




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FINANCIAL TIMES FRIDAY MAY 27 1994 


ARTS 




Theatre/ Alastair Macaulay 


0 




Mixed feelings in ‘Twelfth Night’ 


***** 




5 (q. ' art of what makes 
If young Emma Fielding, 
the BSC'S new Viola in 
JL Twelfth Night, so cap* 
>,•*1* txvatmg is that she is made up 
y'fr of contrasts. She is elffa, tiny, 
vulnerable, with vast eyes; and 
.’“c yet she is forthright, living 


an inquiring Httie nose that is 
a vital part of hear profile, and * 
an eager stance whereby her 
weight rests keenly on her 
■m i V3'n. toes. This mix of opposites is 
,-■ ’ why she was so heartcatching 
as Tbomasfaa when Stoppard's 
■ : j* Arcadia was new; and no less 
. so in Jonathan Kents School 

far Wives at the Almeida. 

She is heartcatcbing m 
T Twelfth Night. Her voice is 

deep, strong, firm (though she 


intensely in the moment, with 

IAk’ i. : nul. it . ■ 


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does not always enter words 
cleanly enough), until in an 
instant scone new thou ght rea- 
ders it high, clear, light This 
sudden illumination from 
within is what rainy Olivia 
lose her heart, when in ttmIa 
disguise Viola tells her that 
she/he would “call upon my 
soul within the house... And 
make the babbling gossip of 
the air/ Cry out ’OttviaP” And 
It is what halts Orsfao and con- 
fuses him when Viola/Cesarto 
tells him that the history of 
her father's daughter is “A 
blank, my lord. She never told 
her love..." 

She is su rr oun ded here by a 
fine cast, but I am in two 
minds about the production 
that frames them. Ian Judge, 


the director, tells the play's 
story surely and briskly. Some* 
titties he is alert to its affecting 
shadows: the way we see both 
Viola and her brother Sebas- 
tian is potent, as is the 
moment of their final reunion. 
Sometimes, however, he treats 
it like the merest artificial 
farce. The funereal cypress 
shadows of the text are absent 
And erotic aSHcSon, which so 
possesses Orsfno, Viola and 
Olivia, is never serious. 

S miling charm abounds. 
The ending and the 
curtain-calls are as 
sweetly neat as a choc- 
olate box. John Gunter’s Eliza- 
bethan scenery is pretty but 
needlessly symmetrical and 


boxy: a tourist view of Olde 
England. And though Nigel 
Hess has written some fair 
songs, the taped muzak that he 
has provided at regular inter' 
vals makes Twelfth Night feel 
like a MGM musical. 

That It keeps turning back 
into a beautiful play, both 
robust and tender, is largely 
due to a superb cast Desmond 
Barrffs MalvoBo, a sour Welsh 
Frankie Howard of unusual 
force, is a triumph of comic 

self-importance. LAverisMy he 

fantasises about the day-bed 
“where I have left Olivia” 
(pause, then, with lascivious 
delicacy) "sleeping". Bitterly 
he sobs out “I thank my stars 1 
am. happy". Tony Britton 
makes a touchingly noble Sir 


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■■■■■ 

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; —-Tt Virile and captivating: Clive Wood and Raima Fielding as Orsino and Viola in Ian Judge's new production 


■■ • 


G eorge Bernard 
Slaw’s line “Walk? 
Not bloody likely” 
stopped the original 
performance at Pygmalion for 
a full minute at His Majesty's 
Theatre in April 1914: shocked 
silence, then guffaws. But the 
stalwart Herbert Tree and the 
delicious Mrs Patrick Camp- 
bell promptly lost control of 
the last two acts. Shaw fled 
home to read Shakespeare to 
avoid die final curtain and the 
cries of “Author} Author!” 

There are no such high 
moments in Patrick Garland's 
production at the Chichester 
Festival Theatre. But there are 
no low ones either. Chiches- 
ter’s first Pygmalion is like 
reliable TV costume sitcom: 
speech therapist finds and 
treats a patient; their life 
together and apart is fainter*- 


User-friendly ‘Pygmalion’ 


Me; she outgrows him as they 
fall in love - or do they? Gar- 
land offers the sombre mHng - 
Hfggfas realises be has blown 
his chances with Eliza by mak- 
ing her bate more than need 
him. 

This is the best fa ^kh play 
to distinguish between man- 
ner^ (hovry on treat: others) 
and etiquette (how you behave 
in social circles). Shaw reacted 
against the Victorian phonet- 
ics and elocution movement, 
and also , against the etiquette 
guides designed to make the 
middle classes more genteel. 
Eliza is a woman refined out 
of her class. 

The design and costumes 
(Dterdre Clancy) have a solid 


stir: pre-war styles and a fine 
arts and crafts interior for Mrs 
Higgins’ Chelsea flat make die 
characters believable, even if 
the set is cumbersome. The 
background to Higgins’ pho- 
netic interests features in the 
voiceovers which cover the 
lengthy scene changes. 

Peter Bowles* perky perfor- 
mance as Higghwi starts off at 
a ripping pace, stuffing wax 
rolls into the phonograph, 
twirling Us gfr—Mn, savouring 
the situation at every turn: 
“she’s so deliriously low.” 
Bowles is a good TV actor, 
master of the quiet shrug. But 
the space on the Chichester 
stage draws expansive ges- 
tures from him, like a doubles 


player cajoled into a lonely 
singles match - in feck the 
quintessential Bowles gesture 
is a topspin backhand which 
starts by Us left Up and fin- 
ishes above! his right shoulder. 
Since this denotes for him-' 
everything from triumph to 
disaster, he can now play 
Wimbledon as well as Chiches- 
ter. 

Fiona Fullerton as EHza goes 
boldly into received pronunci- 
ation with wit and verve, shed- 
ding her g iveawa y vowels for 
a takeaway manner. Her excel- 
lent performance tempers Eli- 
za's dependency with distaste, 
but never too much to rule out 
Higgins as a partner. She car- 
ries the serious message of the 


Toby Belch. The way be gently 
plants a Una filre “She is a bea- 
gle" into the still air has the 
true Twelfth Night magic. 

There are excellent moments 
too it urn other players, notably 
Haydn Gwynne’s elegant and 
eloquent Olivia. But the pro- 
duction lets her dwindle info 
an ignoble silly, and it never 
lets Bflle Brown's Andrew 
Aguecheek grow from his 
hilariously absurd beginning 
Into a tfaree-dhnenaional study 
of perpetually feckless adoles- 
cence. dive Wood b a com- 
manding Orsino, both virile 
and narcissistic; but 1 never 
believed that either love or 
music bad overwhelmed Us 
senses. As Feste, Derek Grif- 


but his voice is for from mellif- 
luous, and Us nwnnar the 


I have the same mired feel- 
ings about Ian Judge’s Love 
labour's lost, currently at the 
Barbican. Truly mixed. In 
Twelfth Night, I love the way 
that, in the final scene, he sud- 
denly beclouds the ferae with 
Malvolio’s fury. Then, after 
Barrit has hissed “I’ll be 
revenged on the whole pack of 
you," the way he wipes an long 
strand of hair bad: across bis 
bald pate returns us, ideally, to 
comedy in an instant 
JUSt as Aw* are the tlhmiftar 
and li ghtning at the and 
the way Maria turns Feste oat 
of doom - where he sings to us 
of “the wind and the rain". If 
Judge can build his under- 
standing of these glorious 
moments into the whole fabric 
of a play, then he will be a 
great director of Shakespeare 
comedy. Right now he is a very 
good mm who is sometimes not 
good enough. 

In repertory at the Royal 
Shakespeare Theatre, Strat- 
ford-upon-Avon 


play into the last two acts. 
And she is walking out on Hig- 
gins aft tikB end. 

Around the two principals, 
Freddie Jones as Doolittle, the 
“undeserving pauper”, is a 
feast of chopped logic and han- 
dles Us scenes well enough to 
be unpredictable. Dulde Gray 
as Higgins’ mother develops' 
tiie over-filial relation with 
Higgins and presides in the 
“At Homes” with aplomb. 
Michael -Denison as Higgins’ 
pal, Pickering, gives firm but 
bewildered support, not least 
h*«nifii> the staging still needs 
to be streamlined so the actors 
can talk to each other and the 
audience. 

Andrew St George 

In repertory at the Chichester 
Festival Theatre until July 14. 




A t two hours and fifteen min- 
utes (no interval), Edward 
Lam's Scenes from a Men’s 
Changing Room outstays its 
welcome to the point where, asrid a 
background of rumbling stomachs, 
creaking seats and much indiscreet 
glancing at wristwatches, it induces a 
steady exodus of people who, most 
probably, will never again subject 
themselves to the Lam experience. A 
pity, because there is rnadh to admire 
and enjoy in the work of this Hong 
Kong-barn, but now Londonhased, Chi- 
nese director and choreographer. 

Scenes from a Men’s Changing Room, 
part of the Barclays New Stages season 
at The Royal Court, was first created in 
1991 for Lam's Hong Kong company. 
But like an earlier work entitled How to 
Love a Mm Who Doesn’t Love Me, it 
has been substantially reworked for a 


Dance/ Sophie Constant! 

Edward Lam Company 


mainly British cast. 

Originally inspired by Lam's observa- 
tions of gay men in the chan gi n g 
rooms, dubs and saunas of Europe - 
and by his own experience at these sex- 
ually-charged meeting places - Scenes 
from a Men’s Changing Room is now set 
on a blank, open stage. Here, the eight 
performers (all men) use minimal props 
to suggest a catalogue of settings - a 
cafe, cinema, hospital - but it is 
through the patterns and intensity of 
their physical actions that we begin to 
recognise a variety of social situations 
and the environments in which they 
are taking place. 


Eschewing linear narrative for a 
chain of interactive but independent 
episodes, Lam presents his audience 
with an uncompromisingly stripped- 
back, bare-boned style of theatre, its 
focus lodged not in real time but in the 
fast-slow, stopatart frames of a collec- 
tion of openended encounters. These 
range from the profo u ndly nightmarish 
- mu> man trying to suffocate fin g th p r 
by tightening a towel around his bead 
and face; another man overcome by a 
mixture of alarm and disgust as he dabs 
at his body's excretory orifices - to the 
sweetly amusing: a brief, trousers- 
down, aprta-ahower towel dance for a 




One of the newly cleaned Sutherland Raphaels: ‘Holy Family with a Palm Tree’ 

Raphael’s women, 
work and legacy 


T he women Raphael 
painted, it was 
observed long ago, 
were either his mis- 
tress or mothers. On a casual 
look it is the Virgin Mary, 
image of ideal motherhood, 
who dominates Raphael: The 
Pursuit of Perfection at the 
National Gallery of Scotland. 
This scholarly yet accessible 
exhibition explores Raphael's 
creative process through paint- 
ings and drawings. It also 
shows how folly he lived up to 
tiie moral ideal for a Renais- 
sance painter of passing on 
knowledge end skin to younger 
men. 

What is by Raphael, and 
what by Gtenfrancesco Penni, 
GiuHo Romano, or “the work- 
shop”? Numerous works in tiie 
exhibition raise these ques- 
tions, especially the later draw- 
ings of figures in the Loggia di 
Psyche In the Villa Farnesina. 
Here, among the nude studies, 
may well be Raphael’s mis- 
tress, if the story is true that 
the only way be could be kept 
an the job was if his mistress 
stayed. But are the drawings 
by her admiring lover, or % 
assistants eagerly copying 
their master’s wonderful way 
with the female tom? 

At the heart of the exhibition 
are the three Madonnas on 
loan from the Duke of Suther- 
land: the “Holy Family with a 
Palm Tree"; the “Bridgewater 
Madonna"; and the “Madonna 
of the Passeggio”. All the pre- 
paratory drawings have been 
brought together from collec- 
tions across Europe. Also on 
show is the “Madonna of the 
Pinks", the Duke of North- 
umberland’s little masterpiece 
which has only recently recov- 
ered art-historical respectabil- 
ity as bring truly by Raphael. 

The Sutherland Raphaels are 
newly defined and conserved. 
The scientists’ scrutiny has 
unearthed curious things. It 
seems dear that Raphael had 
no direct hand in the 
“Madonna of the Passeggio”, 
long suspected as being by a 
talented assistant, perhaps 


single man, this demure, but naughty 
routine later repeated by the entire 
group; three men arranging their hair 
In pigtails and behaving like giggly 
schoolgirls, leading into a wonderfully 
energetic parody of Charlie's Angels. 

But Lam also gives us scenes in 
which sinister events are blended with 
an uneasy humour, as when one man 
fornicates with another - both are tally 
dressed and completely expressionless 
- across the stage. Scenes is an elegant 
dissection of fear and guilt, need and 
rejection. Lam entertains us as gener- 
ously as he series to disturb, but his 
brand Of sparse yet epic theatre gradu- 
ally loses its power to do either of these 
things as the evening wears on. 

Edward Lam Company is at the Green 
Room, Manchester on June 10 and 11. 


Penni. The composition is any- 
way less attractive than the 
other three Raphaels; St 
Joseph looks strangely 
farouche, staring back from 
behind a bush at his wife and 
child who are being humbly 
greeted by little St John the 
Baptist. 

There is no discomfort in 
knowing that the Virgin of the 
lovely “Bridgewater Madonna” 
was at first placed fa a flowery 
meadow, until Raphael 
enclosed her in a room without 
a view. However, it can be dis- 
tinctly unsettling to discover 
things which an artist never 
meant us to know. A case in 
point is “Holy Family with tiie 
Palm Tree". 

In this lovely tondo St 

Patricia MoriSon 
reviews the exhibi- 
tion at the National 
Gallery of Scotland 

Joseph gives Jesus a handtal of 
flowers, watched intently by 
Mary who so often has eyes 
only for her baby. This St 
Joseph looks younger than nor- 
mal, thanks to his thick grey 
curia. The X-ray suggests that 
he was originally bald and that 
the top-knot was added later - 
presumably by Raphael. But 
why did he add it, and to 
please whom? This trichologi- 
cal riddle detracts from enjoy- 
ment of the picture and is one 
insight into Raphael’s creative 
process I could have done with- 
out 

Among the unexpected 
things in the exhibition is 
“Mercury Bearing Psyche to 
Olympus”, an air-borne confec- 
tion of figures from the Loggia 
di Psyche by Rubens from the 
Duke of Sutherland’s private 
collection. And how lovely to 
find again an enchanting draw- 
ing from Chatsworth, recently 
shown in London. It shows an 
ordinary mother holding a fid- 
gety child firmly around the 
mi ddle while she reads aloud. 


It was a boldly unconven- 
tional move to use late copies 
to flesh out Raphael's oeuvre. 
They hang in an anteroom, 
homage from an age when 
Raphael was often talked about 
as quasi-divine. The copy of 
the Madrid “Madonna of the 
Fish" is by an restorer called 
Bonnemaison, alleged by Jac- 
ques Louis David to have 
scrubbed Raphael altarp laces 
.with turpentine. Anyone who 
regrets the modem cleaning of 
the “Transfiguration" .can com- 
pare it with the . senttbre hues 
faithfull y rendered in the lS20s 
by one Grigor Urquhart of 
Inverness. 

Inevitably, the exhibition 
conjures up the spectre of 
absence. Since 1946, the three 
Raphaels have been in the gal- 
lery as part of the EOesmere, 
now Sutherland, loan. The 
Sixth Duke is now 79; to lose 
the loan would he a devastat- 
ing blow to the NGS and, if it 
went overseas, to Britain's 
national heritage. The Suther- 
land pictures are exempt from 
inheritance tax while they are 
on public view. A private 
treaty sale would therefore 
avoid the demand for payment 
of Inheritance tax exempted in 
the past If this were allowed to 
happen, with an annual acqui- 
sition budget of only £L2m the 
NGS would be in a hopeless 
position to secure the paint- 
ings. 

The Raphael eshfottion higb- 
ligbts the uncertainty hangfag 
over the residue of one of the 
greatest private art collections 
ever formed in Britain. As 
early as 1806, an ancestor of 
the present duke allowed the 
public to visit the huge collec- 
tion at his Loudon residence 
on St James’s Square. For close 
on two centuries, then, these 
great paintings have been in 
the public eye, giving untold 
pleasure. Who can predict 
whether the same will be true 
a century from now? 

Sponsored by Dundas & Wil- 
son CS; until July 10 
(031-56*8921). 


iNTBmAiiONMl 


ART AT WOLFSBURG 

Art and car-manufacturing may 
be unGkefy bedTeftows, but they 
come together tomorrow at the 
opening of a new museum at 
Wolfsburg, the town In Lower 
Saxony which Is home to 
Volkswagen. 

FotiKted in 1938 as a model 
Industrial town under National 
Socia l ism. Wolfsburg earned a 
reputation fa the postwar era 
as one of the Oastarbefter 

capitals of West Germany. Now 
its image appears to be 
changing, tte location near the 
former border with East Germany 
Bhes It a strong geographical 
Position on the post-Communtet 

•nap of Europe. And the new 
Kunstmuseum foflows the best 
toteWoiw of Industrial patronage 
of foe arts. 

■ The museum Was proposed 
*0 1987 by the. former president 
<*Vo9c8wagen, Cart Hahn, after 
ttwostabtofrTKKitofthe 
Volcswagen Art Foundation - 
a Private trust derived from the 
fortune wWch a Munich couple. 


Christian and Asta Holler, butt 
from shares in the Volkswagen 
insurance Service. The 
Foundation has footed the 
DM70tr> (E28k2m) coat of butidtag 
the Kunabnueeum, and w* also 
pay its running costa. The 
museum has three rims - to 
establish in Woffsfaung a 
collection of int e r na tional 
contemporary art, to encourage 
the cultural education of the local 
and wider community, and to 
promo te exhibitions of 
International appeal 
The opening exhibition, devised 
wWi the help of the Basle 
Kunstmuseum, Is devoted to the 
early work of Fernand LAger, 
covering the Cubist, mechanlcri 
and eariy Classical phases of 
his career from 1911 to 1924b 
More than 7D oBs and a dozen 
works on paper are 
supplemented by examples of 
Ms work as a designer for the 

Ballets SufeMe and hie 
contribution to expertmentri fibn. 
The significance of the exhfcWon 
Res in the way ft acknowledges 
the contribution of technology 
to 20th century society - an 

ap pr opriate choice for the now 

museum, which has been 
Jemrtmri nn f»ns rrf i"”* 

technologically advanced In 
Europe. 

The LAger show, which runs 

tin August i4, to aupptemantsd 

by Mams from the mosauifs 
j^ady Impressive coBection 
of contemporar y art 

■ EXHIBITIONS guide 

AMSTERDAM 

HtyKsmuseum Rowers ana warns: 


a survey of flora and fauna In five 
centuries of prints and drawings. 
Ends July 31. Closed Mon 
BARCELONA - 
Muaeu Picasso The Russian 
Avant-Garde 1905-25. Ends June 
28. Closed Mon (Carrer Montcada 
15-19) 

BERLIN 

Museum fib* IncBsche Kunst Lost 
Empire of tiie SSk Road: a 
remafkabta collection of 07 
weft-preserved pieces of Buddhist 
art from the tenth to 13th centuries. 
Ends July 3. Closed Mon 
Haus der Kuftureii der WeH 
Tanzania: masterworks of African 
. scripture. Ends Aug 7. Closed Mon 
BONN 

Kunst- und AussteBungshatie 

The Century of the Avant-Garde 
in Central and Eastern Europe: a 
panoramic survey of 20th century 
art in eastern Europe, with around' 
700 works by 200 painters end 
sculptors, supported by references 
to architecture, photography, film, 
fiteratureand music. Laid out 
chronologically, the exhibition 
begins with the Symbolism and 
early Abstraction of Kandinsky and 
his contemporaries, and ranges 
through Cubism, Constructiviann 
and Surreaftsm to the rote of Jewish 
artists, tin Impact of Socialist 
Realtem and the work of 
- contemporary figures like Christo 
and Kabokov. Ends Oct 16. Closed 
'Mori 

GaJeria der FHedrldi Ebert ' 
Stffiung Oskar Kokoschka: 
drawings and prints. Ends June 
Iff. Closed Sat and Sun 
CHICAGO 

Art institute John James Audubon: 
90 large-aerie wateraoloure which 
America's legendary naturalist atlst 


used as the basis for his Birds of 
America print series. Ends July 
17. Italian Sculpture from the 
Gfflgore Collection: 30 works dating 
from I860 to 1920, including 
naturalist sculptures by Vincenzo 
Gemito and visionary pieces by 
Medardo Rosso. Ends Aug 14. 

Dally 

COLOGNE 

Museum Ludwig The Unknown 
MocflgHanfc 240 of the 440 hitherto 
ifiiknown drawings amassed by 
Paul Alexandre before 1914. Ends 
July 10. Closed Mon 
DIJON 

Musde Magnin Sculptors' Designs 
1850-1950: a survey of 
developments In sculptural art from 
Daumier, Degas and Rocfln to 
Giacometti and Picasso. Ends Sep 
11. Closed Mon 
DUSSELDORF 

He lens M useum Ceramic Works 
of Picasso, Mho and Tapias: around 
90 works by three m^or Catalan 
artists of tiie 20th century, ranging 
from Picasso’s decorative owls 
and figioines to Tapias' massive 
sculptures. Ends Aug 28. Closed 
Mon 

FRANKFURT 

Deutsches Archftefctun miso um 
Modem Architecture In Germany 
1900-1950: Exprasa fa y w n and 
the Neue SacMcftkefL Ends July 
3. Closed Mon 

Schbii KunsthaRe Goethe and 
Art Ends Aug 7. Dally 
LONDON 

Royal Academy of Arts Goya: 

100 small-scale paintings. Ends 
June 12. DaSy (advance booking 
071-896 4555) 

Victoria and Abort Museum A 
new Glass Gritary has been opened 
to display over 8000 objects, 


illustrating the history and 
development of glass over the past 
four mfllenla. Dally 
LYON 

Mua6e des Beaux-Arts The 
Romantic Movement in France: 
printings, sculptures, drawings 
and engravings from the museum's 
own rich collection of works by 
Chariot, Delacroix and others. Ends 
June 19. Closed Mon and Tues 
MADRID 

Centro de Arte Reina Sofia Lucian 
Freud: paintings, drawings and 
etchings celebrating the recent 
achievements of Britain's greatest 
living reafist painter. Ends June 
13. Closed TUes 
NEW YORK 

M et ropolitan Museum of Art 

Petrus Christos: 22 paintings by 
the 15th century Netherlandish 
master, renowned for the jeweWlke 
luminosity of his work. Ends July 
31. American Impressionism and 
Realism 1885-1915. Ends July 24. 
The Decorative Arts of Frank Lloyd 
Wright Ends Sap 4. Closed Mon 
Museum of Modem Art American 
Surrealist Photography: 45 works 
from the period 1930-1955. Ends 
July 5. Closed Wed 
Erick Collection Renaissance 
Portrait Medals: more than 200 
of the most beautiful and important 
medals from Germany, Italy, France 
and the Netherlands. Ends Aug 
22 

PARIS 

Grand Patels The Origins of 
Impressionism 1859-69. Ends Aug 
8. Closed Tues 

Musde tfAit Modems da la Vffle 
de Parte Dutch Art of the 20th 
Century: the feat part traces 
developments from Van Gogh to 
Mondrian, while the second focuses 


on ten contemporary artists. Ends 
July 17. Closed Mon (U ave du 
President Wilson) 

Hfttel de WBe Nicolas de Stael: 

70 paintings and 40 drawings by 
the Russian-born, French-trained 
painter who committed suicide In 
1955. Ends June 19. Closed Mon 
(Salle Saint-Jean, 3 rue de Lobau) 

• Cartes mus6es available at 
aft metro stations and museums, 
to avoid queuing at 60 museums 
inducting the Louvre, Mus4e 
d'Oreay and Versailles. 

ROME 

Palazzo defle EsposMonl Dada 
- The Art of Negation: more than 
300 works from public and private 
collections, showing how this ironic, 
nfhfltetfc and iconoclastic movement 
spread from its birthplace in Zurich 
in 1916 to New York. Berlin, Paris, 
Barcelona and Rome, and how 
it adapted to the political 
atmosphere of each city - playful 
in France, somewhat aggressive 
in Berfln and Rome. The show 
Includes Duchamps' ready-made 
urinal and Man Ray's spfked-iron 
Cadeau, but is otherwise 
overloaded with graphic works and 
lades the sculptural jeux cf esprit 
typical of Dadaism, making ft 
unch ar acteristically solemn. Ends 
June 30. Richard Long: eight 
Installations by the British artist, 
all prepared or created on site. 

Bids June 30. Dosed Mon 
STUTTGART 

Stoategaterie Picasso: a rare 
showing of 400 prints from a 
private cofisction. Including 
portraits, stilWifes and many other 
themes. Bids August 14. Closed 
Mon 

Linden-Museum Art of the 
Aborigines: 90 wood paintings, 


40 sculptures and an installation, 
mainly by contemporary Australian 
artists. Ends Sep 25. Closed Mon 

VIENNA 

JQctisches Museum ChagaWs 
Russian Years: 50 oil paintings, 
watercolours and drawings from 
the period 1908-20. Ends June 
12. Closed Sat 

Museum des 20. Jahrhunderts 
Picasso: 180 paintings, drawings, 
collages, bronzes and ceramics 
from the Ludwig collection. Ends 
June 19. Closed Mon 
Museum fflr angewandte Kunst 
Tyranny of Beauty: a study of the 
weddSng-cakB architectural style 
of Stalin’s era and the 
reconstruction of Moscow. Bids 
Jtiy 17. Closed Mon 
KimsthaUe Rebecca Horn (51944): 
retrospective of the German artist, 
concentrating on her sculptural 
work from the {test decade. Ends 
Aug 7. Closed Tues 
WASHINGTON 

National GaSery of Art Willem 
de Kooning's Paintings: 75 works 
by America’s Influential abstract 
expressionist Ends Sep 5. From 
Minimal to Conceptual Ait - Works 
from the Vogel Codectibn: 90 
drawings, photographs, paintings 
and sculpture by contemporary 
artists , including Sol LeWltfs 
transitory wall drawings, John ' 
Cage’s musical sketches, Christo’s 

wrapped objetfs and examples 
of work by Ryman, Beuys, Ravin 

and others. Ends Nov 27. One of 
the jewels of the permanent 
collection, Jan van Eyck's 
Annunciation, has returned to ntoOc 
view after a two-year restoration. 
Datiy 


» 





14 


A fter three years of bit- 
ter wrangling and 
court actions. Ger- 
many’s Bundestag, 
the lower house Of parlinnwit, 
has agreed measures to com- 
pensate former property own- 
ers in east Germany. 

Approval fay the Bundesrat 
the upper house, could pave 
the way for speedier invest- 
ment in the east, which has 
been held up by unresolved 
questions over property rights. 

Under the terms of the unifi- 
cation treaty of 1990. those 
whose property was confis- 
cated by the Nazis between 
1933 and 1945 or by the Com- 
munists between 1949 and 1990 
are entitled to restitution or 
compensation. The law caused 
havoc. Many east Germans 
who thought they had togafiy 

acquired their homes after the 
establishment of the former 
German Democratic Republic 
in 1949 were faced with termer 
owners returning and. in some 
cases, evicting them. Those 
claimants who did not want 
their property back could seek 
compensation. Yet for more 
than three years, the govern- 
ment has been unable to agree 
on the levels of payment 
Under the new measures, 
individuals would be entitled 
to compensation based on the 
value of the property (includ- 
ing houses, shops, farmland) in 
1935. The figure would be mul- 
tiplied several times, depend- 
ing on whether the property in. 
question is simply land, or 
includes housing or a business. 
In addition, compensation 
would be issued in the form of 
government bonds, not 
redeemable until 2001 
"Dispossessed" property 
owners may complain that the 
level of payment neither 
reflects the current market 
value of the property, nor com- 
pensates for the amount of 
income lost over the past 55 
years. But their complaints 
pale when compared with 
those of the “’4M9ers". 

The “'45-4 9ers" comprise 
property owners whose land 
was expropriated by the Soviet 
authorities which, between 
1945 and 1949, administered 
east Germany. Many belonged 
to the Prussian aristocracy and 
supported Hitler during the 
second world war. Others, 
however, joined the German . 
resistance movement As the . 
Russians consolidated their 
grip on the east many were 
either sent to prison camps,- 
given two days to leave their 
homes, or banned from within 
14 miles of their property. Most 
of the 14.000 families which 
were forced to flee settled in 
west Germany. Their land was 
divided and parcelled out to 


Putting their 
house in order 

Judy Dempsey on plans to solve 
east German property disputes 



Ge rmans escaping from Poland 
and other east European coun- 
tries. 

In a reunited Germany sev- 
eral hundred families now 
want to come back. But under 
the terms of the unification 
treaty, they have neither the 
right to compensation nor res- 
titution. 

The West German govern- 
ment, along with Mr Hans 
Modrow, east Germany’s last 
Co mmunis t party leader, and 
Mr Lothar de Maizfere, its last 
prime minister, refused any 
right of return or compensa- 
tion for those dispossessed 
between 1945 and 1949. They 
claimed in the Constitutional 
Court in April 1991 that the 
price of Soviet agreement to 
German unification was 
Bonn's unquestioning accep- 
. tance of Moscow's ’45-49 admin- 
istration of east Germany, 
including its expropriation pol- 
icy. 

This riaim Is c hallenged by 
former east German property 
owners. "There is simply no 
evidence of these preconditions 
[to unification]," said Mr 
Albrecht Wendenberg, who is 
trying to regain his property in 
the eastern state' of Saxony- 


Anhal t- The land his family 
owned is being sold by the 
Trenhand privatisation agency. 

He is not alone in c riticising 
the government’s stance. There 
is growing opposition from for- 
mer landowners in east Ger- 
many, many of whom support 
Chancellor Helmut Kohl's gov- 
erning Christian Democratic 
Union. The proposed measures 
may go some way towards 
meeting their objectives 
because they may win the 
right to buy back a small per- 
centage of their property. But 
they will only be allowed to 
buy back 12 acres out of every 
40, for example, or 50 acres out 
of every 500. As the acreage 
rises, the percentage of land 
far purchase ^hrinVc 

Mr Mortimer von Maltzahn, 
whose family had owned 
estates in Mecklenburg, the 
northern state of . east Ger- 
many, since the 14th century, 
has spent DM4JJm (£1.72m) 
baying back 100 acres of his 
7,000-acre estate and repairing 
his Schloss, or manor. Se had 
to promise the local council 
that in return for getting back 
the family's private rhuroh, he 
would repair the delapi dated 
building at his own expense. 


Some have formed limited 
companies, enabling them to 
buy back some of their own 
land from the Trenhand, pro- 
vided they Invest in the region. 
Others have obtained 12-year 
leases from the Treuhand hi 
the hope they will have the 
option to buy after the lease 
expires. 

Some families say the com- 
pensation proposals continue 
to treat property owners 
unequally before the law. Ufa 
Anna-Tatiana Bauer said her 
family does not even have the 
right to reclaim the family 
church, or the graveyard. 
"It is truly a disgrace,” she 

said. 

But the *"45-49ers" cannot 
count on public support The 
government cannot afford to 
compensate than for the loss 
of their property. Critics 
oppose the return of the "Junk- 
er" landowners, as they are 
pejoratively known. They 
argue that their passivity 
allowed the rise of Hitler. East 
Germans generally want noth- 
ing to do with them because 
ideological indoctrination has 
taught them that every Junker 
is a feudal aristocrat or a Nazi 
supporter. 

I ronically, it is the far- 
right Republican party in 
east Germany which is 
playing the "Junker card” 
in the run-up to the local, state 
and federal elections. Mr 
Lothar Bisky, the head of the 
social-democratic Party of 
Democratic Socialists, the sno- 
cessor to the former east Ger- 
man Communist party, says it 
would be dangerous to Ignore 
their actions. 

In towns throughout Meck- 
lenburg and Brandenburg, and 
in Berlin, the Republicans are 
dropping leaflets. Their mes- 
sage is clear. They tell east 
G ermans that their property is 
threatened and could fan into 
the hands of west Germans. 
The Republicans are opposed 
to any restitution and the 
return of fanner property own- 
ers, blaming unification for 
this trend. A recent leaflet pro- 
claimed: "The Republicans are 
patriotic. We are the only 
patriotic and social German 
party which stands for full soli- 
darity of the east Germans and 
the protection of their prop- 
erty." 

"We don’t know how big 
their support is.” said Mr 
Bisky. "But property rights is 
one of the planks of their plat- 
form. I am afraid of them, 
because I feel we have com- 
pletely messed up the whole 
question of compensation and 
restitution. But it is too fate to 
redress the mistakes of unifica- 
tion." 



FINANCIAL TIMES FRIDAY MAY 27 1994 


Joe Rogaly 


Throw the rascals out 



The world w31 
probably seem 
pretty gloomy 
to the govern- 
ment a fort- 
night from 
now. Pause a 
moment, while 
we rub our 
hands in glee. The big day is 
Friday June 10. The Tories 
expect to wake up on that 
morning to news of the loss of 
their formerly safe seat of East 
leigh to the Liberal Democrats. 
Better yet, they may find that 
their candidate, their sacrifi- 
cial lamb, has been beaten into 
third place behind Labour. The 
weekend papers wfH be full of 
talk about alternative leaders 
of the Labour party, perhaps 
spiced by m usings on the 
future of the prime minister. 

The results of the elections 
to the European Parliament 
will follow. We will see the 
great match taking shape: a 
revived opposition vs a flag- 
ging government. It may 
become harder than ever to 
believe that the Conservatives 
can recover sufficient support 
to win a fifth general election, 
even in the nearly three years 
s till available to them. 

Good. They deserve to be 
thrashed. I say this in the elec- 
toral rather than the Singapo- 
rean sense, you understand. 
Those of us who doubt the effi- 
cacy of corporal punishment 
should not chang e our princi- 
ples, not even in the case of Mr 
John Patten, the education sec- 
retary. Mr Patten's sense of 
honour may be measured by 
his retailing earlier this week 
of what he said was said to 
him in a private conversation 
in a railway carriage. So much 
for the gentleman who 
preaches to the nation’s chil- 
dren about moral standards. 
This is the Mmi of thing that 
gives hypocrisy a bad name. 

It is not, however, a reason 
for encouraging the Conserva- 
tives to leave office. If the bad 
manners of one particular min- 


ister were the problem, the 
solution would be simple. The 
case for throwing aU the ras- 
cals out is more complicated. 
To appreciate it, step baric a 
bit After 1979 the government 
of the then Mrs Margaret 
Thatcher undid much of the 
damage wrought by the Labour 
administration, that preceded 
it She vanquished the trade 
unions, initiated the rolling 
privatisation of industry, and 
taught us that simple book- 
keeping is a necessary skffl in 
all walks of life and all institu- 
tions. Her successor has 
Curbed inflatin g 7nntnfariT»>d 
Britain's position at the Maas- 
tricht negotiations on the 
European Union, and estab- 
lished rapport with Dublin on 

the future of 

Northern 
Ireland. 

These 
achievements 
among others 
deserve recog 
nition. The bal 
ance of advan 
tage has 
however 
turned. Today 
the prime min- 
ister is strug- 
gling to man- mmmmammamt 
age an unruly ««rainn of what 
should be separate parties. The 
government is unable to do 
very much, beyond blather. It 
promises a green paper on this 
and fists aristing pp llrfa fl in a 
white paper on that Here a 
charter, there an inquiry, 
everywhere a working party. It 
is a ministry of paper Initia- 
tives, a taxpayer-financed 
agency for self-advertisement 
Civil servants are unwilling to 
propose very much, and deter- 
mined not to write down what 
they do discuss. The urge to 
further radicalism may be gen- 
uine, but the performance is 
disappointing. 

If that were all, there would 
be little cause fra- complaint 
The government could be said 
to be in a state of do-nothing 


Ministers spend 
too much of their 
time dishing out 
money and jobs 
to favoured 
individuals, 

com panie s or 
organisations 


equilibrium, a minimalist's 
ideal. Sadly, that is not all. 
“Do-nothing" is often a harm- 
ful choice. Do-something can 
be worse. Local government 
has been hobbled. The behav- 
iour of parliamentarians has 
brought political life into disre- 
pute. Ministers spend too much 
of their time dishing out 
money and jobs to favoured 
individuals, companies or 
organisations. Fifteen yearn of 
continuous office has resulted 
in the creation of a patronage 
state, as described in a report* 
published on Monday by a pair 
of pressure groups, Charter 98 
and Democratic Audit 
The report suggests that 
there is now one executive 
quango for every 10,000 popula- 
tion, and that 
these bodies 
are responsible 
for nearly a 
third of total 
public spend- 
ing. It may be 
right, if not 
precisely so. 
Let ns halve 
the authors’ 
figures to elim- 
inate any 
r hanrp of exag- 
geration. The 
picture that remains is star- 
tling. Britain Is replete with 
opportunities for patronage, 
secretive deal-making and good 
old fashioned corruption. We 
do not need a democratic audit 
to prove this. Observe. There is 
the health secretary, arms out- 
stretched, guarding every 
health service trust from pub- 
lic scrutiny, arousing suspicion 
by «winn»nKii with which 
she defends the secrets of these 
Spenders of our money. 

The Conservatives have torn 
the heart out of the unwritten 
British constitution. The demo- 
cratic checks - on executive 
power have been replaced in 
file nawp of customer choice. 
What the latter phrase often 
means is placemen's self-pres- 
ervation. The irony is that the 


latoti evidence of this comes In 
a week when all three national 
parties have published mani- 
festos ter toe ejections to the 
European Parliament. Labour 
and toe Liberal Democrats bal- 
ance their views on possible 
reforms of EU institutions with 
progr amm es for the restoration 
of civic life in Britain. Both 
summarise their proposals for 
d omes tic constitutional reform 
in their Europe manifestos. 

Not the Tories. They will 
have none of it They talk as if 
subsidiarity stops at Calais. 
They cannot win elections to 

town halls, so they emasculate 
local authorities. They are 
rejected by the Scots, but will 
not look at Scottish self-gov- 
ernment. "A separate Scotland 
would be relegated to the lower 
divisions of Europe," says their 
manifesto. 

This refusal to contemplate 
any improvement in our con- 
stitutional arrangements 
applies to all areas of public 
life. They shy away from 
reform of toe House of Lords, *- 
although individual Tory peers'” 
are more sensible than that 
Simple imp r o vements to House 
of Commons procedure make 
little headway. Several sugges- 
tions of reform of the waybills 
are prepared have been made; 
none accepted. The conse- 
quence Is that more legislation 
is made in amendments than 
in initial bills. 

Conservatives need to think 
these matters through. They 
have run the oountry as if they 
were in office forever. They 
govern by ever-increasing cen- 
tripetal force. Finding out what 
an unscrupulous administra- 
tion of a different political col- 
our could do with the powers 
ministers have accumulated 
for themselves would teach 
them a lesson, at our expense. 
We must hope that Labour, 
which is fitni an unappetising 
alternative, makes itself electa- 
ble before we have to choose. 
*Ego trip, £9.95; from 3-U Pine 
Street, London EC1R 0JH 


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 fax for finest resolution 

Confucius 
reigns in 
Taiwan 


Cost of executive share options 
should be assessed on issue 


From Dr Mike Staunton. 

Sir, Your statement that 
“options defy precise valua- 
tion" (“One option they don't 
want". May 25) sits uneasily 
with the rather precise valua- 
tions of London’s financial 
futures and options exchange 
(Liffe) Equity Options printed 
each day in another part of 
your newspaper. The Black- 
Scholes option valuation model 
has been used for more than 20 
years, and can easily be pro- 
grammed Into a pocket calcula- 
tor or a simple spreadsheet. 

The only element that makes 
executive share options so dif- 
ficult to value is the lack of 
information regarding the 
option exercise price, maturity 
date and current share price 
when issued. This means atten- 
tion Is now focused instead on 
the information revealed when 
options are exercised (the large 
payouts seen in the cases of 
BAe and LWT). 

Were quoted companies 
required to provide sufficient 
information to allow executive 
share options to be valued 
when issued, the cost of grant- 


ing such options would then be 
clear to shareholders. 

Mike Staunton, 

138 Regents Park Road, 

London NW1 SSL 

From Mr David Rhoads. 

Sir, Andrew Jack’s article on 
US efforts to regulate executive 
compensation provides a 
resounding wake-up call for 
UK companies. 

Based on the US experience, 
unanswered calls for the self- 
regulation of executive pay 
invites far more onerous steps 
by regulators; for example, 
poor disclosure practices led 
the Securities and Exchange 
Commission (SEC) to require 
quoted companies to present 
extensive data for the highest- 
paid executives. Meanwhile, a 
perceived lack of connection 
between executive pay and per- 
formance prompted the Clinton 
administration to eliminate the 
tax deductibility of “non-per- 
formance based" pay in excess 
of Jim for top executives of 
quoted companies. Finally, a 
history of Inadequate share 
scheme disclosure contributed 


to the US Financial Account- 
ing Standards Board’s current 
efforts to impose an earnings 
charge for executive share 
options. In the UK steps by the 
Accounting Standards Board 
and statements by the Associa- 
tion of British Insurers/Na- 
tional Association of Pension 
Funds are mild by comparison. 

Self-regulation through the 
voluntary enhancement of pay 
disclosure represents an attrac- 
tive way to diffuse growing 
regulatory pressures. Subject- 
ing pay practices to "the light 
of day” does wonders to limit 
abuse. In addition, we have 
found that shareholders react 
favourably to the disclosure of 
well-designed, performance- 
based executive pay schemes. 
Finally, an earnings charge for 
share options is a bad idea. 
Share prices already incorpo- 
rate expectations concerning 
executive share option awards. 
David Rhoads, 
managing director , 

Strategic Compensation 
Associates, 

19-25 Argyll Street, 

London WlV 1AA 




From Mr Charles Edmond 
Sir, In “Changing cultures of 
capitalism" (May 23), Samuel 


Latvia an equally good role model 


From Mr Maris Ozols. 

Sir. Professor Steve Hanke's 
unqualified praise of Estonia’s 
economic reforms (Letters, 
May 23) and his exhortations 
that they be used as a model 
for Russia, cannot be left with- 
out comment 

Latvia, Estonia’s neighbour 
has adopted a contrary 
approach with regard to the 
stability of its currency. The 
Lat is free floating, its value 
having been set (as was its pre- 
decessor's. the Latvian rouble) 
by the supply of Lats and west- 
ern currency. For more than a 
year now. the Lat has appreci- 
ated against western curren- 
cies because of an oversupply 
of dollars. At the same time, 
Latvia has achieved the lowest 
inflation in the Baltics (342 per 
cent, March 1993-March 1994). 
Conversely. Estonia's inflation 
rate /or March 1994 jumped to 


8.9 per cent, higher even than 
Russia's. 

As for the Estonian policy of 
shadowing another currency, 
Nigel Lawson, as UK chancel- 
lor, made the mistake of also 
shadowing the D-Mark for too 
long and when Britain joined 
the ERM, after a strained 
period, the pound received its 
come-uppance on Black 
Wednesday. 

The Estonian economy is the 
most successful of the former 
Soviet republics but, similarly 
to Latvia at present, it is suf- 
fering from an overvalued cur- 
rency leading to difficulties 
with exporting and an increase 
in imports. In Latvia's case, 
when it comes to paying for 
imports, payment will be in 
western currency, the pur- 
chase of which will tend to 
lower the exchange rate for the 
Lat. Estonia, with its fixed 


rate, will have less room for 
manoeuvre. 

As can be seen then, there is 
more than one way to skin a 
cat and Estonia’s way will not 
necessarily bear fruit for Mr 
Viktor Chernomyrdin and Rus- 
sia. One should not forget, 
either, that both Estonia and 
Latvia’s decisions to convert to 
their own currencies were 
frowned upon by the Interna- 
tional Monetary Fund at the 
time but the Balts proved that 
even holy cows can be wrong. 
If Russia has enough confi- 
dence in its own policies, it 
should do whatever it thinks is 
right and turn a blind eye to 
the critics. 

Maris Ozols, 

(Riga Bureau Chief, Baltic 
Independent, March 1983-Jan 
19Si), 

11 Beathfield Road 
London W3 8EH 


CAP fraud is too costly to pursue 


From Mr Anthony Rosen. 

Sir, Like your correspondent 
Peter Marsh (European News 
Digest, May 25) L too, beard 
the House of Lords European 
communities committee ques- 
tion Mr Jo Carey, former presi- 
dent of the European Court of 
Auditors. 

It was all too clear that the 
noble Lords do not yet under- 
stand the two main reasons for 
the escalating Common Agri- 
cultural Policy frauds. 


First, fraud becomes ever 
easier given toe lax controls, 
exacerbated by the May 1992 
McSharry (so-called) reforms 
which have now brought fraud 
“down to the farm". 

But second, and dominantly, 
there is no incentive for any 
European government to 
expose fraud by Its own nation- 
als. The present EU rules mean 
that upon exposure of the 
fraud the government con- 
cerned has to make frill repara- 


tion to the EU and then try 
and reclaim this from the 
fraudster. Politicians are thus 
content to believe that CAP 
fraud amounts to “only" £l50m 
rather than the actual £8bn as 
estimated by Mr Carey's suc- 
cessor as court president 
Anthony Rosen, 
chief executive, 

Feenix Farming, 

RosehRl, Arford, 

Headley. 

Hampshire GU3S 8DF 


Brittan endorses the assertion 
that "few Taiwanese entrepre- 
neurs are steeped in the Confu- 
dan classics”. 

1 beg to differ. On my first 
day of company visits in 
Taiwan, as a member of a 
party of foreign investors, I 
met the chairman of Tatung Co 
- one of Taiwan’s largest and 
most progressive corporations. 
He opened the proceedings by 
presenting each of us with a 
copy of the Analects of Confu- 
cius - with each tract set out 
in English and Japanese as 
well as (he original Chinese. 
This was presented as the best 
introduction on how to con- 
duct business in Taiwan. It has 
certainly been invaluable to 
me in providing insig hts into 
economic life in Taipei. Tatung 
also endows its own high 
school and university. 

Many local investment ana- 
lysts mid economists - whose 
London counterparts have 
been termed "teenage scrib- 
blers" - have impressed me 
with their knowledge of the 
Analects. 

Charles Edmond, 
adviser, 

Yung Kau Securities, 

3fF Fu Shin Road North. 

Taipei. Taiwan 


r 


Big companies 
do pay up 

From Mr David Heppenstad. 

Sir, I refer to the problem of 
late payments to UK compa- 
nies. I am Bnamdai director of 
a medium-sized business, and I 
have also worked in credit con- 
trol in large and small compa- 
nies. 

My experience is that the 
perception that tt is large well- 
established organisations 
which hold back payments to 
small business is by and large 
mistaken. This makes good 
press. But the problem is usu- 
ally one of the slow-paying 
smaller customer, sometimes 
operating on the margins of 
solvent?. This being the case, 1 
am sceptical that much would 
be achieved by legislation. 

Reasonably prompt and regu- 
lar payment can normally he 
expected from toe large cus- 
tomer. providing its invoicing 
requirements are followed. It is 
in this area that the small busi- 
ness, having less skilled office 
staff and without the help of a 
computer system, is often defi- 
cient. 

David Heppenstall, 
WHEawker. 

Holme Road 
Bomber Bridge. 

Preston PR6 SBP 


Li-r- 


jib 

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FINANCIAL TIMES FRIDAY MAY 27 1990. 


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FINANCIAL TIMES 

Number One Southwark Bridge, London SE1 9HL 
Tel: 071-873 3000 Telex; 922186 Fax: 071^07 5700 

Friday May 27 1994 


India’s rupee 
dilemma 


India Is caught in what has 

become fl famffiar ffflpmr rm fnr Tfh- 
eralistng developing countries. An 
unexpected inflow of foreign capi- 
tal is TnnlriTiff it tttfntrrilt to Laid 
down the exchange rate. The 
choice in the short tern lies 
between resurgent inflation and 
cnrtaflmcnt of fragile export suc- 
cess. So far, the government has, 
in effect, chosen to risk the infla- 
tion. It must find a better solutian. 

In the financial Tear ending 
March 1994, hzdia received same 
$4hn in portfolio capital, along 
with $600m in foreign direct 
investment It also registered a 
small current account surplus, 
partly because the value of 
exports rose 21 per cent in US dol- 
lars and partly because imports 
stagnated. The inflow helped pro. 
dace an increase of $&7bn in for- 
eign exchange reserves, as the 
authorities struggled to keep the 
rupee at 31 to the US dollar. 

For a country that recently 
stood on the brisk of default, 
increased foreign exchange 
reserves are welcome, but not zn 
excess. Monetary growth has risen 
from a recent low of 5 per cent in 
the year to May 1993, to IB per 
cent in the year to January 1994. 
This has helped raise frififtH«n to 
the unpopular rate of 11 per cent 

Holding down the exchange rate 
through foreign exchange inter- 
vention can only be a temporary 
expedient Unless the monetary 
effects are sterilised, the real 
exchange rate will appreciate 


through inflation, rather than 
through upward adjustment of the 
nominal value of the rupee. These 
can be no enduring advantage in 
that, particularly given the dam- 
age done by inflation in India. 

Imports increase . . 

The rh'lflrnmfl mi ght vanish 
spontaneously. But provided 
reforms continue, this is unlikely 
to result from rapid dwindling of 
the capital inflow itself. Much 
more desirable would be a sub- 
stantial increase In imports, as 
economic growth accelerates. Fas- 
ter growth of industrial output 
was already observable by late- 
1993. This should continue. -Never- 
theless, the ministry of finance 
expects the entreat account deficit 
this financial year to be only US 
glburfftm, insufficient to af&et a 
capital inflow bin* last year's. 

Efforts could be made to lower 


the attractiveness of the capita l 
inflows. One possibility is to 
reduce the return on deposits by 
non-residents; another is to 
restrict the access of TwAm? com- 
panies to foreign capital; yet 
another would be to restrict 
inflows of foreign portfolio capital 

All such measures would, be 
undesirable. India’s as a 

destination for foreign capital has, 
after an, barely been scratched. 
Vast and poor, fadfe geedv to ftnd 
ways of using such cap ital- ffiis is 
particularly true of foreign direct 
investment, actively encouraged 
by the prime minister himself ear- 
lier this week. 

Faster reduction 

H the inflows won neither to 
cease spontaneously nor be 
stopped, attempts could be made 
to curb their effects. One option, 
currently being tried, is to curb 
monetary expansion through 
changes in cash reserve require- 
ments. Another is to try to steril- 
ise the inflow through open mar- 
ket operations by the Reserve 
Bank of India, the central batik. 

Best of all, however, would be to 
see the inflow as both reward and 
opp o rtunity. A foster reduction in 
the fiscal deficit than that pirnmwd 
by the finance minister, Mr Man- 

mnhan SHwg h, w yilj frq l p nffeot % 

inflationary effects. Above all, 
accelerated import liberalisation 
would directly absorb foreign 
exchange. The central go v ernment 
faces a dilemma here, because cus- 
toms duties contribute 40 per cent 
of its revenues. The solution is a 
reform designed to increase 
imports, along with changes to the 
fiscal system, to reduce depen- 
dence cm customs duties. 

It would be a massive policy fail- 
ure for India to be unable to 
absorb a few When dollars, with- 
out letting exports be crowded out 
or suffering from needless infla- 
tion. These resources must ba 
absorbed in a nan-inflationary 
way, instead. The outside world 
has become increasingly con- 
cerned about fbe win of the Indian 
government to sustain stabilisa- 
tion and press on with radical 
reform. JUr. Singh .has recently 
restated both commitments. How 
the government copes with the 
opportunity presented by the pres- 
ent glut of foreign exchange will 
help show whether it is to be 
taken seriously. 


Labour looks 
for a leader 


Labour’s leadership contest will 
be gripping for reasons beyond a 
sporting interest in the fate of 
well-known politicians. The win- 
ner will take over a party well 
ahead in the opinion polls, follow- 
ing a selection process democra- 
tised to tiie point that it is rather 
like the primaries of the United 
States. Just as those produce 
potential presidents, so the 
Labour primary will produce a 
potential, prime minister. 

It is therefore remarkable that 
the party has so far conducted 
itself with such uncharacteristic 
restraint. Potential candidates 
have bear asked not to declare 
their h a n d s until June 10, the day 
after the European elections. That 
leaves 40 days for open canvassing 
before the results are announced 
on July 21. This has not prevented 
any one from campaigning behind . 
the scenes, but the delay rtf a few 
weeks before the contest formally 
begins may be salutary. It baa 
enc o uraged most supporters of the 
aspirants to conduct themselves 
wife decorum, the electorate may 
be spared the dogfights that 
attended the selection of Mr 
James Callaghan and Mr Neil Kin- 
nock. 

This is. a credit both to the leg- 
acy of party unity left by -the late 
Mr- John Smith and to the compe- 
tence. of acting leader, Mrs 


also persuaded • the party's 
national executive to call a con- 
current contest for the deputy 
lftftrifrrqTtip a post she won in tan- 
dem. with Mr Smith. She will 
therefore attract votes for appar- 
ently putting party before self. 
This ahpnid all but guarantee her 
redaction as deputy leader, and 
win her same su pp or t for the idea 
that she herself should be the new 
leader, should she enter the fray. 
Tbrt contest, the debate on the 
party's fixture, is wide open. 

Blair ahead 

It is & debate that should be 
puwued with vigour. Various poDs 
L i . confirmed that Mr Tony 
is the most popular of the 
“ candidates. His lead is 


swage a mere coronation. Mr 


heat of dtosfrfougirt battle. He has 
stood his graundfor a radical view 
of trade miriop Jaw, he has brought 
cradt bfltty to Labour's stance cm 
crime and he by so w ri» d hard to 


identify an underpinning theme 
for Labour, based upon the maxi- 
mum freedom for individuals 
within the framework of shared 
community interests. Little, how- 
ever, is known of his approach to 
industrial, financial, or economic 
policy, not to mention topics such 
as foreign affairs and defence. Nor 
has Mr Blair ever moved into the 
open with views about the poten- 
tial for collaboration between 
Labour and the Liberal Demo- 
crats. 

True debate 

A potential prime minister need 
not be possessed of detailed pre- 
scriptions for every problem, but 
he or she does need dear indica- 
tion of the positions of principle 
from which to start every discus- 
sum of government action. On too 
many issues, it is unclear where 
Labour stands. Has it resolved its 
internal distances? Is it as free ctf 

excessive trade union influence as, 
say, the German social democrats, 
cor the US Democratic party? What 
kind of European vision will it 
pursue? Where does it define the 
Hrrrtts of the state? 

. Three and other questions must 
be addressed in the - leadership 
contest Labour needs the adrena- 
lin of true poKcy debate, if it la to 
excite voters rather than stand as 
the passive recipient of t heir pan- 
tempt for a divided Conservative 
party. The candidates have been 
listed as ctf ihe left or right persua- 
sion, or the traditionalist or 
moderniser wing of the party. 
Such labels can be useful, but 
they do not cover the complexity 
of the personalities involved. As 
shadow chancellor Mr Gordon 
Brown has sought to rid the party 
of its ancient penchant for devalu- 
ation, high taxation and high 
spending. Yet he still speaks as if 
be were a traditionalist with roots 

in the old left. Mr Sobln Cook is a 

candidate of the left, but Us ctevar 
wit and sharp tongue can give his 
pronouncements a market flav our. 
Mr John Prescott is a traditional- 
ist who enjoys mocking the 
modernisers. .. 

If Mir Blair is to win both the 
tepttor fthip and a subsequent gen- 
eral election he must danmwtrate 
that he has a substantial, modern- 
ising vision, alongside the courage 
to fake risks. And he nffist ca»y 
the party ■with bim lAhour wfll 
seywno one's Interest if it elects 

only a telegenic front man. 


E arlier this year 

02, a Japanese company, 
found that it had lost 
Sl.Sbn in foreign 
exchange derivative trad- 
ing. Germany's MetaUgesellschaft 
lost $L4hn in oil derivati ve s, while 
US consumer products giaut Procter 
& Gamble lost a more modest $X02m 
on interest rate contracts. Hardly a 
week goes by without another 
expensive mishap in the use of 
derivatives - instruments such as 
swaps, fixtures and options whose 
value is “derived" from mare con- 
ventional ftnarwdal assets. 

Such stories explain the bad press 
received by derivatives traders. 
They appear to strengthen the case 
of the US General Accounting 
Office, which last week called for 
tougher regulation to address gaps 
in the system. Nor do the counter- 
arguments of Federal Reserve chair- 
man Alan Greenspan on Wednesday 
seem likely to damp the fear in Con- 
gress that derivatives are a multi- 
billion accident waiting to over- 
whelm the financial system. 

Are the fears justified? And how 
precisely does the trade in deriva- 
tives change the way the monetary 
and fm flnffci g yu tom fl operate? 

Where monetary policy Is con- 
cerned, the chief question is 
whether widespread hedging 
deprives interest rate changes of 
the impact they used to have in a 
de ri va tiv e-free system. Since deriva- 
tives trading is, from a macroeco- 
nomic perspective, a zero-sum 
game, the issue would not arise if 
the trade were purely domestic. For 
every trader who hedged, there 
would be a counterparty with, an 
equal and opposite exposure. 

But the market is global, making 
it possible an in US 

interest rates might, for example, 
produce a weak response in the US, 
while tightening policy in Japan. 
This would happen if Japanese 
institutions proved to be net insur- 
ers of their US counterparties 
against such a rise. 

Yet generahsatjons on this score 
are fraught with difficulty, not least 
because so many other factors 
affect an economy's sensitivity to 
interest rate changes. And in prac- 
tice no one did predict the global 
market shake-out wrought by a 
mere quarter-point Increase in US 
rates in February. 

The speed and extent of the bond 
market plunge may have been cam- 
pounded by 'the use of derivative 
instruments, which can be used to 
assume risk, as well as to reduce 
risk. Their unique characteristic is 
the ability to create exposure to a 
market cheaply, for either purpose, 
in terms of the investor’s rash out- 
lay - leverage, in a word. 

But the market crunch in Febru- 
ary primarily reflected a misplaced 
unanimity of view about market 
trends, ma g-niffei! by nld-fosbioned. . 
leverage in the shape of hank bor- - 
rowing. Investors experienced what 
John Hermann, a former US comp- 
troller of. the currency now resident 
at Merrill Lynch, describes as a 
worldwide margin call. 

At the microeconomic level the 
most striking feature of derivatives 
is that they have grown like topsy 
(see charts) because they satisfy a 
need. Following the break-up of the 
Bretton Woods fixed exchange rate 
system in the early 1970s and the 
deregulation of banking, the task of 
stabilising markets has, in effect, 
been privatised. Banks, corpora- 
tions, investors and governments 
have to insure against volatility. 

Yet the task of providing insur- 
ance to end-users - those who seek 
to hedge the risks that volatility 
poses for their business - has 
inc re asingly b een co mp l emen ted by 
the explosive growth of proprietary 
trading, dominated by a handful of 
giant commercial and investment 
banks, a phenomenon, explored in 
an earlier article*. 

The joy, from the banks' point of 
view, is the sheer extent of the 
potential for hedging, especially in 
the over-the-counter markets where 
banks offer customised, (and thus 
Irigtemargm) products to end-users. 
Scope for growth outside formal, 
exchanges, says Leo Melamed, a 
founding father of the Chicago 
financial fixtures markets, "is lim- 
ited only by the imagination". 
Derivatives trading thus provides 


Is the fear that derivatives are a 
multi-billion accident waiting to happen 
justified? John Plender investigates 

Through a 
market, darkly 


Derivative ; 

Exchange tratfertand over-ttierartanter derfvatfwas^ \ • 
Sbn (at year flfld) - I l"? -! ’ 

12 . 000 — . ; v < ; 


Top US OTGda J Bw — 


10,000 — 






an answer to two of the banks’ big- 
gest problems: the loss of large cor- 
porate c fl e nta after the third-world 
debt crisis and the blow to the prof- 
itability of their conventional busi- 
ness arising from the globalisation 
of markets, rapid technological 
change and financial deregulation. 
The margins In orthodox financial 
intermediation - deposit-taking and 
lending - are now woefully thin 
and companies- are ihcteasingly 
reluctant to pay large fees for 
i n v estm ent b anking services. 

- "I invite anyone," says Salomon 
Brothers’ chairman and dhiaf execu- 
tive officer, Deryck Maugham ‘Ho 
point to a fee that’s gone up in the 
past 10 years. Fees only decline. If 
adequate returns to capital are to be 
maintained, it will be a trading 
worid." 

In this competitive maelstrom 
where frenetically mobile capital 
seeks out the highest global 
returns, off-balance sheet deriva- 
tives trading is the equivalent of 
alchemists’ gold. Institutions can 
offer a pure broking service. Or, 
more profitably, they may put the 
deal on their own books and look 
for a counterparty with offsetting 
risk management needs. 

At one end of the proprietary 
spectrum are those who do low-risk, 
high-volume arbitrage business, 
taking a small margin from balanc- 
ing the odds like the bank in a 
casino. At the other are those who 
take large speculative positions, 
hedged in varying degrees. 

The risks are little different from 
those traditionally run by banks 
and insurance companies. They 
include market risk (vulnerability 
to fluctuating prices); counterparty 
credit risk (the threat of default by 
the other party to the contract); 
liquidity risk (where the fin a n ci a l 
instrument cannot quickly he 
replaced at dose to its fundamental 


value); and operational risk (fail- 
ures of internal control, ftirinding 
computer systems or fraud). 

Yet many of the larger losses 
incurred to date, such as those on 
local authority swaps in the UK, 
have stemmed from legal risk, 
where one party was not authorised 
to conduct such business. 

Ihe worry about derivatives lies 
less in the nature of the risks being 
run, than tin* witter rrmricat onjitoyt, 
which is dangerously opaque. The 
report of an internal working group 
of the Bank of England concluded 
last year that the unsupervised sta- 
tus of same of the large players in 
the system “does represent a super- 


Disclosure practice 
has lagged behind 
market developments, 
resulting in balance 
sheets that have been 
drained of meaning 


visary hole at the very heart of the 
derivatives markets”. 

That looks prescient in the light 
of the scale of derivatives dealing 
by unsupervised hedge funds that 
has become apparent this year. 
Note, too, that much of the US 
investment banks' derivatives deal- 
ing is conducted through unsuper- 
vised, special-purpose subsidiaries, 
to which the credit rating agencies 
have granted higher ratings than 
those of the parent bank. Some cen- 
tral bankers question whether this 
artificial structure, despite numer- 
ous inbuilt safety devices, would 
stand up in a financial firestorm. 

Stffl more striking is the absence 
of adequate information about 
counteiparttes. Disclosure practice 
bum la gge d behind market develop- 


ments, with the result that balance 
sheets have been drained of mean-' 
■■ fag- Ihe creditors of KMMbm Oil, 
' for example, bright have thought 
that they were dealing with a com- 
pany that was exposed to fluctua- 
tions in off prices. Yet it turned out 
to be a foreign exchange dealer, 
running currency risks on a scale 
that wiped out its capital. 

.. Nor can published bank balance 
sheets convey an adequate picture 
of the risks being run, since deriva- 
tive positions change minute by 
minute in the markets. Meantime, 
corporate giants like Procter & 
Gamble that run derivative-inten- 
sive treasury operations as a profit 
centra have, in effect, taken & con- 
glomerate move into market- 
making. Yet it is rarely made appar- 
ent to shareholders or creditors 
whether derivatives are befog used 
to hedge or to speculate. AH that Is 
dear, says one leading US deriva- 
tives trader, is that the profit-centre 
mentality always leads to trouble. 

An accountancy profession that is 
increasingly preoccupied with mak- 
ing money out of consul t ancy has 
been slow to respond to the biggest 
challenge to historic cost account- 
fog since inflation accelerated fo 
the 1990s. The problem is that deriv- 
atives incorporate big assumptions 
about the future. Options, in partic- 
ular, are rirfflnnit to value since, as 
their name implies , they are optio ns 
that may or may not be exercised, 
not firm commitments to deal at a 
fixed future price. 

The discipline that the big banks 
have invented to deal with such 
problems is “marking to market" - 
writing commitments up or down fo 
line with market prices. Yet with 
over-the-counter derivatives, there 
is no real market Instead there are 
complex computer valuations based 
on assumptions about probability, 
volatility ami future costs. Wflham 


McDonough, president of the Fed- 
eral Reserve Bank of New York, 
worries that market prices may not 
folly reflect the Illiquidity of the 
more complex derivatives. Certainly 
experience has shown that liquidity 
fo over-the-counter markets can 
evaporate fo a panic. 

In this twilight world everyone 
depends heavily cm the rating agen- 
cies. Yet Moody’s, for one, admits 
that a large proportion of outstand- 
ing contracts are too new for it to 
feel sure that the risks are low. Bal- 
ance sheets full of derivatives 
appear more liquid than ones foil of 
conventional bank loans. The credit 
risk is only a fraction of the 
notional amount of the derivatives 
(see table). But there has to be a 
question mark over the derivatives 
traders’ capital adequacy imtii the 
business has been tested over a lon- 
ger period - and a worry that trad- 
ers are relying on the presence of a 
central bank lender of last resort as 
they take otherwise excessive risks. 

The system of checks and bal- 
ances within individual organisa- 
tions is crucial. The big players, 
most of whom follow the risk man- 
agement recommendations of the 
Group of 30 banking think-tank, 
have spent heavily on systems and 
skills. The investment appears to 
have paid off fo the upheaval of the 
past three months when arithmeti- 
cal assumptions about correlations 
between markets brake down. At 
Bankers Trust, a derivatives market 
leader, more was lost fo the cash 
markets than fo derivatives, says 
. vice-chairman George Vojta. 

M ost central bankers 
claim that the 
probability that 
the mispricing of 
risks fo derivatives 
could lead to a systemic shack is 
low, but cannot be Ignored. They 
also worry that lack of information 
about exposures could exacerbate a 
financial crisis; and that complex 
derivative linkages across global 
markets could then make the conta- 
gion hard to contain The General 
Accounting Office, meantime, ques- 
tions whether it is appropriate for 
heavy proprietary trading fo deriva- 
tives to be supported by insured 
deposits, which may encourage par- 
ticipants fo excessive risk-taking. 

The more obvious threat is simply 
to individual firms, especially those 
at one remove from the main- 
stream. The failure of Kidder Fear 
body's senior management, auditors 
‘ and traders to detect the phoney 
^ profits declared by top ' trader 
""Joseph Jett was an astmriahtogcol- 
* lapse of corporate governance. Such 
problems are acute where traders’ 
performance is assessed for bonus 
purposes over shorter periods than 
the life of the outstanding deriva- 
tive contracts which they have put 
on their firm’s books. 

As Martin Mayer at the Brookings 
* Institution think-tank points out, 
risk-shifting instruments also have 
a way of pushing risks an to those 
least able to absorb them. This is 
bom out by Douglas Morris, senior 
policy adviser to the comptroller of 
the currency. He paints to & US 
bank with only J 200 xn of assets 
which acquired a structured note 
carrying an exposure to the swings 
of the peseta and D-Mark against 
the dollar. After adverse swings, the 
note yields no income and has lost a 
fifth of its value. 

That is symptomatic of the enor- 
mous conflicts of interest built into 
a system in which, own-account 
trading is pervasive. As a leading 
banker fo the Euromarkets puts it, 
with only mild exaggeration. 90 per 
cent of the work of Wg investment 
banks is now unprofitable and 
serves only as a loss-leader for 
highly profitable proprietary trad- 
ing. Caveat emptar Is thus a cate- 
gorical imperative for endusess. 

it would make no sense to protect 
Procter & Gamble. Handling the 
banks Is a more difficult matter. 
Derivatives are a valuable addition 
to the fi n anc i al armoury. The real 
problems, both for individual banks 
and the system, are about opacity, 
leverage and lack of managerial 
competence. Central bankers will 
have to be on their mettle if that 
potentially lethal combination is 
not to lead to trouble. 

*Finandal Times, May 13 


Observer 


Many holes 
in one 

■ Seve Ballesteros may be miffed 

that having brought the 1397 Ryder 
Cup to Spain, the biennial 
international golf match staged 
between Europe and the US will 
not be played on Ms own Sancti 
Petri course near Cadiz. But Spain’s 
Foreign Ministry is as pleased as 
punch. 

Valderrama, Ihe chosen venue, - 
is home to one of Spate's secret 
diplomatic weapons in its ; 
long-running dispute to retake 
Gibraltar from the Brits. 
Sotogrande, th e huge 
Mediterranean luxury estate that 

ffl i rm n nih fhi» Valriurrama tmirn j 

is next door to Gibraltar, and is 

tem p ti ng an iwmajimg nrrmhor 

of golf-crazy (Mbraltarians to desert 
the British fastness. 

Moving foto a Sotogrande 


to three golf courses, torJudmg 
Valderrama, and two polo grounds, 
as well as rubbing shoulders with 
the Cartiers, Hennessy's and with 
Valderrama owner Jaime (Jimmy) 
Qtif.P atWn g randfatiipr 

was the kfog of Bolivian tin mines. 

Shares fo Sotogrande shot up 
to a year's high on news of the 
Byder Cup win. All that is required 
now isfor Madrid and London to 
settle their historic squabble and. 
end a ban on domestic flights from 
Spain to the Bock’s airport. 

It is not only Seve and his 


golf-crazy father-in-law, Emilio 
Botin, chairman of Banco 
Santander, who want to avoid a 
long drive to the Valderrama links. 
Expect an early breakthrough on 
the diplomatic front 


Softly, softly 

■ Lord Lawson’s desire to secure 


OECD seems to have provoked an 
uncharacteristic outbreak of 
flftflnmacy on the part of the former 

B ritish rfiatinwriffl^ if Tiin 

performance yesterday at the Royal 
Institute of International Affair s 
1b anything to go by. 

Even Waiter Elfcis, a freemarket 
guru from the DTI, couldn't get 
him to blame Europe’s high 
unemployment on its hopeless 
industrial and social policies. 
“People do have a choice whether 
to reap the rewards of their efforts 

through more generous social 

provisions, or by having more 
money in their own pockets." 
Lawson knows he needs the votes 
of those dreadful Mghrtaxfiig, 
high-spending, interventionist 
SodaK3xristianJ)emocrfo 
European governments. 

Then there is the tricky Elite 
matter of the highly unflatte ring 
portrait he pafois cf the OECD in 
his memoirs. The strictures were 
“perhaps too harsh, but I believe 
they contained a kernel of truth". 
Anyway, he had been referring 
not to the diligent economists, but 
to tte ministerial meetings (Hke 



the one next month that may or 
may not elect him). 

Givenhaff the chance, he would 
“find a way of making those 
wippting a more worthwhile". 


Out of the can 

■ To veterans of the intematfonal 
tin crisis, Bruce Leemtog will be 

a familiar namp. Thn fa rmer 

maiiagfog director of Rudolf Wolff, 
one of the London Metal Exchange 
brokers much mauled in the tin 
Crisis of the xmd-1960s, quit his post 
matrimony at the time. 

Now he is about to hurst an to 

the world fo what he hopes will 


be a controversial new guise. His 
first published work, An Anger 
Bequeathed, is due out next week 
- and pretty steamy stuff it is, too. 
Billed as “a novel cflmt and high 
ideals”, it teDs of Harriot (sic) 
Murray, a highly competitive and 
sexually voracious woman seeking 
revenge for past exploitation by 
men. 

Leaning ~ who has written 
several ttnpnblishfid novels, 
including a libellous thriller about 
the tin crisis, and copious fodkn 
poetry - drew cm family history 
for his new oeuvre. But he says 
Harriot is "whogy imaginary" and 
insists that she bears no 
resemblance to anybody at the 
LME, past or present 


Appetite for war 

■ Good food and drink can help 
tire delicate process of negotiation, 
fo business as in diplomac y — but 
surely entertaining the w a n in g 
Bosnian factions at the famous 
P8re Bise restaurant fo Tallotres 
is going a bit fox? 


together with, the five-nation group 
from the US, Russia, Britain, France 
and Germany - have requisitioned 
four top hotels in the picturesque 
resort an Lake Annecy. None of 
tins comes cheap. Difong out at 
Ptoe Bise can cost up to £100 a head 
- and that’s without wine. 


because the resort can effectively 


be sealed off from the disruptive 
attentions of journalists and camera 
crews. Even so, nothing much is 
expected to come out of the 
discussions. 

Perhaps that's not surprising. 

If aggression is rewarded so 
handsomely, why not go on 
fighting? 


Why Slater walked 

■ Was he pushed, or did he jump? 
Jim Slater , ex-chairman of the 
collapsed Slater Walker Securities, 
has penned his last column for the 
City pages of ihe financially- 
stretched Independent newspaper. 

It’s not dear who terminated 
whom, but the 65-year-old Slater 
has no regrets. Hie is up to his eyes 
fo his latest project - setting up 
a London equivalent of Value T.im. 
the US money managers’ crib-sheet 

A monthly publication out of 
the Hemingt o n Soott stable, ttwfll 
analyse every quoted UK company 


is convinced that it will be a 


around wtth the title - Really 
Essential Financial Statistics. 

It doesn't have quite the ring 
of a stock market bestseller. 


Bright lights 


to change a light bulb? 

How many can you afford? 






16 


FRUEHAUF 

I R A I L E R S 


Carrying the 
nation's goods 


For information call 0362 635353 



FINANCIAL TIMES 

Friday May 27 1994 


CONTRACT HIRE 


SELL AND LEASE BACK 


CONTRACT PURCHASE 


NORTH 091 510 0494 
CSNTRAL03 


34V 5 S ? S40 

SCOTLAND 0735 25031 


Employers’ group reports growing confidence 

Rise in TJX order books 
boosts recovery hopes 


By (Mian Tott and Phflfp Coggan 
in London 

British companies reported the 
highest monthly level of factory 
orders for five years in May, 
providing fresh evidence that the 
economic recovery is feeding 
through to the manufacturing 
sector. 

In a further sign of growing 
business confidence, a Confedera- 
tion of British Industry survey 
also found that manufacturers 
expect a strong increase in out- 
put over the coming months. 

But this upbeat picture of 
economic recovery was slightly 
marred by new money supply 
statistics that hint at possible 
inflationary pressures. 

The Latest figures for notes in 
circulation, released by the Bank 
of England yesterday, suggested 
that next week's statistics would 
show dramatic growth in MO, the 
narrowest measure of the money 
supply. 

The total value of British bank 
notes in circulation in the week 
to May 25 was 6.7 per cent higher 
than a year ago. Using those sta- 
tistics, and numbers from previ- 
ous weeks, Mr Nigel Richardson. 


head of bond research at 
Yamaichi International (Europe), 
estimates that annual BIO growth 
in May will jump to 7.1 per cent 
in May. from 6.2 per cent in 
April. The government’s monitor- 
ing range is (M per cent 

Any such rise is likely to Gael 
concern that inflationary pres- 
sure could potentially undermine 
recovery, and increase specula- 
tion about a rise in Interest rates. 
Earlier this month the Bank of 
England expressed some concern 
about rapid MO growth in its 
latest inflation report 

Although the report said the 
acceleration in MO growth had 
been prompted by low Interest 
rates, which encourage consum- 
ers to hold cash, it noted that 
“the longer MO grows at well 
above the top of its monitoring 
range, the greater the concern 
about the implications for future 
inflation" 

These inflationary concerns 
were yesterday played down by 
the CBI itself. Its latest economic 
forecast, released today, predicts 
steady, low inflation, economic 
recovery during this year and 
next, and says there is little 
evidence yet of any pick-up in 


wage earnings. 

Meanwhile, the GBTs industrial 
trends survey, also released 
today, suggests that price 
pressures remained fairly weak 
in manufacturing in spite of the 
pick-up in output 

Although slightly more compar 
nies now expect to be able to 
increase prices over the next four 

m o nt h s fHffn reduce thora , this 

proportion is lower than a year 
ago, and only fractionally higher 
than in previous months. The 
survey covers companies 
accounting for about half trf the 
total UK manufacturing output 

Elsewhere, the survey suggests 
that overseas demand is contri- 
buting to the improvement in 
company order books. Although 
export order books are still run- 
ning at levels that companies 
consider below normal, they are 
at their best levels since 1990, the 
survey said. Medium sized com- 
panies, reported the best levels of 
output and export. 

But business confidence was 
high across most sectors, with 36 
per cent of companies expecting 
to see an increase in out- 
put volnme over the coming 

m onths 


Hong Kong developers defy 
authorities with low bids 


By Louise Lucas in Hong Kong 

Hong Kong property developers 
yesterday acted together to 
arrange low bids at a public land 
auction, challenging the colony’s 
government, which has pledged 
to intervene in the property mar- 
ket to bring down soaring prices. 

One analyst described the gov- 
ernment auction, which saw fod- 
ders rushing around the hall to 
reach agreement with those pro- 
posing higher bids, as a "blatant 
display" of a property developers’ 
carteL 

The inability of many families 
to afford their own homes 
prompted Mr Chris Patten, Hong 
Kong's governor, to launch a task 
force in March, which has been 
instructed to come up with 
means of curbing price rises. 

Prices of small apartments 
have risen by 200 per cent in the 


past three years, but industry 
opposition to the government's 
planned intervention has coin- 
cided with concern that the mar- 
ket has passed its peak. 

Last month the government 
increased the amount of residen- 
tial land that it will sell this year. 

Analysts are forecasting that 

Patten confident over Hong 
Kong’s future Page 4 

residential property prices will 
fall by between 10 and 20 pm cent 
as a result of the government 
measures. 

At yesterday's auction it is that 
understood a consortium of up to 
12 developers bought one site and 
another 10 jointly purchased a 
second plot Both consortia 
included some of the colony’s big- 
gest developers. 


The first site, of 20,780 square 
metres was sold for SHE$2.04bn 
(5256.5m) although the market 
had expected a price of HKfSbn 
to HK&bn. The second, smaller 
plot went for HKgSlOm, although 
it had been expected to fetch 
HK$800m. 

The Hong Kong stock market 
reacted badly to the low prices. 
The Bang Seng index, which had 
risen strongly in afternoon trad- 
ing, finished 39.66 down at 
9,481.71. 

However, the land prices were 
regarded more as a warning to 
the government than a sign that 
the property market had turned. 

Mr Michael Green, director of 
S.G. Warburg in Hong Kong, said 
developers appeared to have 
formed consortia to send a clear 
message to the government "not 
to interfere with the free market 
mechanism”. 


Japanese 
household 
spending 
falls 4.3% 

By WRBarn Dawkins in Tokyo 


Household spending in Japan 
slipped by 43 per cent in March, 
the worst year-on-year decline 
since 1981, the government's 
management and co-ordination 
agency announced yesterday. 

This is the second month of 
spending decline, a worrying 
reversal of a four-month run of 
increases in household spending 
to the end of January and a sign 
of the continuing economic chal- 
lenges facing the government trf 
Mr Tsutomu Bata. 

The spending figures cast 
doubt on Japan's ehanees of an 
imminent, consumer-led recovery 
and increase pressure on the 
Bank trf Japan to reduce its offi- 
cial discount rate (ODR) to give 
the na g gin g pennnmy a psycho- 
logical Lift, economic analysts 
hM. 

The official rate, at which the 
central bank tends to commercial 
banks, has stood at a record low 
of L75 per cent since last Septem- 
ber. Yesterday, it stood a mere 
0.3 percentage points below tbs 
overnight money market rate, at 
which commercial banks lend to 
pn(»h other. 

That leaves the Bank of Japan 
little room to intervene to cut 
shortterm money market rates, 
which are already at a record 
low, unless there is another 
reduction in the ODR. 

Mr Yasu&hi the remit of 
Japan governor, warned this 
week that corporate balance 
sheet adjustment and the pace of 
labour-shedding were among&c- 
tors that might impede growth. 

However, the bank has so far 
used the money markets to influ- 
ence interest rates. 

Management and co-ordination 
agency officials argued that part 
of the March spending decline 
was caused by delays in car pur- 
chases, ahead of a fall in car 
sates tax in April 

Its survey also shows a 0,4 per 
cent decline in wage earners' real 
incomes in the year to the end of 
March, the first such drop for 13 
years. Bonuses (a large part of 
annual wages) and wives’ income 
from part-time work both 
declined, the agency said. 

The survey showed that spend- 
ing on food, furniture and cloth- 
ing fell, while households spent 
more on housing, utility charges 
and medical care. 


Bid for leading bank 


Continued from Page 1 

nailed Its nationalist colours to 
the mast, stating that the pres- 
ence of several domestic compa- 
nies “would guarantee an essen- 
tially Austrian underpinning for 
the bank’s further development”. 

It argued that the country’s 
plan to join the European Union 
made the presence of an Austrian 
bank necessary, in the EU and 
eastern Europe. 

The consortium would buy 
more than half of the govern- 


ment's shares at and would put 
the rest on financial markets "as 
soon as possible". 

The consortium contains sev- 
eral non-Austrian companies, 
including Generali and Banca 
C ommerdale ftaliana of Italy an d 
Commerzbank of Germany. 

Mr Rafagr Gut, chairman of the 
group built around Credit Suisse, 
said last week that CS would buy 
a 20-30 per cent stake as a first 
step and insist on first refusal on 
farther sales of the finance minis- 
try’s bolding. 


Screen text warning 


Continued from Page l 

detecting minute eye move- 
ments. They show that, dose to 
ascreen, the eye is capable of 
detecting minute changes in 
fight intensity as the image is 
refreshed, and these are uncon- 
sciously recorded by the viewer. 

The brain interprets them as 
warning signals in a throwback 
to the days when humans bad to 
be alert to the possibility of sud- 
den charges by sabre-toothed 
tigers and the like. The eyes, in 


consequence, wander continually 
to tiie edges of the screen to try 
to identify the danger. 

Mr Kay said it was technically 
possible to build a screen suit- 
able for reading text It would 
have 6uhn picture elements (pix- 
els) compared with the 300,000 
on a typical PC screen. 

Such a screen, built at Xerox's 
research headquarters, had cost 
1200,000 (£133,333). Screens of 
equivalent quality might be 
available at an economic price in 
five years, he thought 


FT WEATHER GUIDE 


Europe today 


An active depression over the White Sea wfll 
channel cold air southwards across 
Scandinavia. Temperatures wfll be unusually 
low over the north. There win be some snow or 
sleet showers across the far north. A large high 
pressure system stretching from Iceland to 
France wfll bring settled conditions to most of 
the North Sea countries. However, it will direct 
cool air and clouds Into coastal areas. Inland, 
there will be a mixture of sunshine and clouds. 
Light winds and plentiful sunshine wiD prevail 
over southern France and Spain. A wide band 
tri Tain vitt accompany a cold front in north- 
west Russia, Poland, the Czech Republic and 
Slovakia Some thundery showers win precede 
the arrival of the cool air. The Mediterranean will 
experience blue skies and high afternoon 
temperatures. 

Five-day forecast 

The high between Iceland and Scotland wfll 
slowly shift towards the British Isles and the 
Low Countries. It wfll bring light wtnds and 
sunshine, ft will remain cool and insetted over 
northern Europe. The western Mediterranean 
wiU experience tropical temperatures. Warm 
and somewhat sultry conditions wfll envelop the 
coastal areas of southern Italy and the eastern 
Mediterranean. 

TODAY'S TEMPERATURES 



Situation at 12 GhTT. Temperaturaa maxfrnum for day. Foimcaxtt by Mateo Consult of the Nathattnda 


Abu Dhabi 

Accra 

Algiers 

Amsterdam 

Athens 

Atlanta 

B. Abas 

ELham 

Bangkok 

Barcelona 


Maximum Befng 
Cetaiw} Belfast 
sun 37 Belgrade 
Mr 32 Batin 
Mr 29 Bermuda 
doudy 15 Bogota 
sun 33 Bombay 
sun 24 Brussels 
snow 16 Budapest 
Mr 14 CJagen 
Shower 35 Cairo 
fair 24 Cape Town 


fair 
Mr 
thuid 
rain 16 
doudy 26 
Mr 18 
Mr 33 
doudy IS 
min 23 
fair 17 
sun 38 
doudy 


31 

15 

31 


18 


Cardiff 

Casablanca 

Chicago 

Cologne 

Dakar 


OeH 


Dubai 
Outran 
Dubrowfit 


Latest technology in flying: the A340 


(3) Lufthansa 

German Airlines 


doudy 

2d 

Edinburgh 

Mr 

14 

Madrid 

Ur 

30 

fiangooft 

Mr 

38 

fair 

16 

Faro 

Mr 

24 

Majorca 

Mr 

29 

Reykjavik 

Mr 

10 

Mr 

23 

Frankfurt 

doudy 

1? 

Malta 

sun 

33 

Rio 

doudy 

27 

sun 

20 

Genova 

dowdy 

ia 

Manchester 

Mr 

14 

Rome 

IBS 

25 

doudy 

16 

GbraRar 

Ur 

28 

Mafia 

CUudy 

31 

& Frsco 

Mr 

19 

Mr 

2? 

Glasgow 

Mr 

18 

MdbOUYM 

doudy 

18 

Seoul 

nun 

21 

Mr 

2 1 

Hanfeurg 

Mr 

17 

Mexico City 

doudy 

22 

Skigapere 

thund 

31 

sun 

41 

1 1 iiImIhIiI 
rW&SuvQ 

Mr 

18 

Miami 

Hr 

32 

Stockholm 

Mr 

IS 

fair 

31 

Hong Km 

(bund 

31 

Mfan 

fair 

27 

Strasbourg 

drzd 

18 

sun 

37 

Honolulu 

Mr 

30 

Montreal 

doudy 

IS 

Sydney 

doudy 

21 

Mr 

14 

Istanbul 

Mr 

30 

Moscow 

rdn 

21 

Tangier 

Mr 

24 

wn 

30 

Jersey 

cloudy 

14 

Munich 

drzzl 

15 

TdAvfv 

sun 

34 



Karachi 

sun 

37 

Nairobi 

Mr 

25 

Tokyo 

shower 

25 



Kuwait 

«un 

40 

Naples 

sun 

27 

Toronto 

Mr 

14 

A340 


L Angeles 

Mr 

21 

Nassau 

Hr 

31 

Vancouver 

doudy 

16 



Las Palmas 

sun 

23 

NewYwfc 

sun 

18 

Verses 

Mr 

25 



Una 

doudy 

23 

Nice 

fair 

23 

Vienna 

rain 

21 



Lisbon 

Mr 

24 

Ni coda 

sun 

37 

Warsaw 

rain 

16 



London 

Mr 

IS 

Onto 

Mr 

18 

Washington 

aun 

21 



Lu*Jbourg 

deed 

16 

Paris 

doudy 

19 

IlfeHlnM* ■ 
WVWWVjiiAI 

doudy 

18 



Lyon 

doudy 

20 

Perth 

doudy 

22 

WMnipag 

sun 

28 


■ ■ 

Madeira 

Mr 

22 

Prague 

rdn 

15 

Zurich 

drza 

17 


THE LEX COLUMN 


Eurotunnel bridges the gap 


It is a miracle of finawnfai as well as 
civil engineering that Eurotunnel has 
come this far. Wit h its third round of 
binding secured, the project at least 
has the chance to be tested a gningt 
alternative forms of transport to the 
open market But it fs too eariy to hail 
Eurotunnel as a triumph far private- 
sector funding; that would require all 
capital providers to receive adequate 
compensation for their risk. While the 
banks are earning a healthy interest 
mar gin on their loans, it is not yet 
clear that shareholders will see a 
decent return. 

With construction now completed, 
further disappointment on costs looks 
remote. But the revenue Eurotunnel 
win generate remains a matter for 
educated guesswork. The latest financ- 
ing package includes £500m feeway in 
case revenues fall short of the compa- 
ny’s projections. Still, a revenue short- 
fall of more than 17 per cent between 
now and 1996 could leave the company 
short of cash. That would push divi- 
dends back beyond 2004. Without hard 
ev idence of business Eurotunnel 
can attract, the possflrifity cannot be 
ruled out 

The next 18 months, fairlnding the 
first full summer season, will be criti- 
cal. With its enormous fixed costs, 
Eurotamel would have Utile option 
but to react if price competition from 
the ferries left it running well below 
capacity. Tourist traffic outside the 
summer season is especially price-sen- 
sitive. While ferry operators have little 
incentive to start a price war. it 
remains an. open question whether 
Eurotunnel’s current pricing strategy 
will fill its expensive pipe. 

If revenue exceeds expectations in 
the early years, though, Eurotunnel 
could equally lock into a virtuous cir- 
cle. High borrowing costs are the pen- 
alty fix- relying on private-sector fund 
mg. An average Interest cost of over 9 
per cent on £7bn bank debt - and a 
Whopping initial 2L5 per cent margin 
over interbank rates on its latest loan 
- leaves precious little for sharehold- 
ers. While Eurotunnel’s forecasts 
already assume a modest reduction in 
borrowing costs, a credible cash flow 
would greatly strengthen its negotia- 
ting position with the banks. 

Dividends might then crane earlier 
than expected. With a year or two of 
solid cash flow for comfort institu- 
tional investors might also reduce the 
rate at which dividends are discounted 
In their theoretical valuations of the 
shares. The combination could have a 
dramatic impact on the share price. A 
victory for Eurotunnel in its tariff dis- 


FT-SE Index: 3019.7 (-1,0) 


Share prico.rato^V-tfW , , 

FT“SEAM : Steffl>|ndoit '■ • - ■ ->!• V ' 

■ JM a ' 1 L— »■“ ^ * 


- Tra v 1 



the current year. Given C&Ws low 
gearing of 12 per cent, stepped-up 
investment in new projects is likely in 
the npYt year or two. But C&W still 
has to prove that it can earn good 
returns outside Hong Kong. 

Storehouse 


-Soinm'Dmamm 


pate with the railways would be icing 
on the cake. But having been so sorely 
disappointed on costs, sceptics are not 
fnchned to take revenue projections 
on trust. Institutional investors 
cajoled into underwriting the rights 
issue will see no pressing need for 
closer involvement. 

Cable & Wireless 

Cable & Wireless shareholders will 
hope that Lord Young, group chafe- 
man, has greater success in the great 
China telecommunications lottery 
than he had in. his UK lottery bid. The 
potential jackpot could be huge: a cen- 
tral role developing China's exploding 
telecommunications market. Lord 
Young was full of optimism at C&Ws 
preliminary results yesterday. China 
planned to expand the number of tele- 
phone lines from 40m now to 114m hy 
the end of the century, he said. It was 
no longer a question of if but rather of 
when the market would be opened to 
foreigners. C&W had been told It 
would be China’s preferred partner 
when that happened 

Still, the jackpot is not in the bag. 
Though C&W hopes for some opening 
of the China market tins year, the 
timing of liberalisation is uncertain. 
Though Lord Young continues to hob- 
nob with top Chinese politicians, the 
risk of that good relationship being 
damaged by the ongoing dispute 
between UK and China remains. And 
even if C&W gets its foot through the 
door first, others such as AT&T wffl be 
in hot pursuit 

Outside China, the group's prospects 
are rather dim. Tougher competition 
and vigorous price-cutting will pre- 
vent profits at Mercury rising much in 


Storehouse have done no service to 
the company’s share price. This year it 
has merely level-pegged the sector, 
despite the group’s evident recovery 
prospects. The new management 
needs a period of stability to deliver 
the growth of which BHS in particular 
ought to be capable. Yesterday's 
annual results provide a reasonable 
starting point even if a lower rental 
charge flattered BHS’s profits by 
about £6m- Group profit before excep- 
tional items was up by 48 per cent. 
Mothercare is recovering nicely, 
though there is still plenty of room for 
highe r margins. 

While rivals such as Burton are 
grappling with the consequences of 
extravagant expansion in the 1380’s, 
Storehouse has the room and the 
resources to expand the BHS chain. It 
is both under-represented in British 
shopping centres compared with 
Marks & Spencer and generates about 
half (he revenue per square foot Prog- 
ress admittedly may be slow. Only 
three new store openings are planned 
this year but higher volume should 
add to the benefit of much needed 
group- wide purchasing efficiencies. 

The tricky part lies to developing an 
Image of BBS as a store shoppers visit 
for more than just «un«i purchases. 
That will require marketing flair as 
well as disciplined management. If 
Storehouse can achieve that, it would 
deserve to out-perform. 

TeleWest 

The decision to pull the Comcast 
and General Cable flotations is being 
blamed on "market conditions”. The 
same excuse will probably be given if 
TeleWest is pulled this morning. But it 
will take mare than an improvement 
in the market to resuscitate plans to 
float the cable industry. 

Investors who have been, burnt on 
Eurotunnel will need reassuring that 
discounted cash flow calculations are 
more solid this time round. They will 
also want to know why the valuations 
being sought in cable share issues are 
much higher than the prices trade 
buyers have recently paid for fran- 
chises. 



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nuuuim llbklt 

0*1-7063388 


Storehouse goesfor expansion 

Storehouse, the fast-recovering owner of the BHS 
and Mothercare retafl chains, is increasing its 
Spending to expand its selling space, as it reported 
a fourfold increase in pre-tax profits. Page 24 

South West Water at tou re r end 

South West Water announced pre-tax profits 
at the lower end of expectations as the effects 
tf felling faterert rates airi hefty capital expendi- 
ture began to take their tolLPage 25 

Shoprtte shares tumble 

Shares in Shopiite fell 54p to 90p yesterday as 
the discount food retailer brought forward publica- 
tion of Its interim, results from mid-June because 
profits for the period were substantially below 
market expectations. Page 25 

A new chapter for BSQ International 

BSG International the UK rvmiprmeTTte mam^Wv 
turer and vehicle distributor, opened a new chapter 
In its history yesterday when It split its business 
into two core divisions, opening the way to the 
break-up of the group. Page 25 ' 

Alba sharply ahead 

Afoa, which earlier this month acquired Goodmans 
Industries, a rival UK consumer electronics group, 
for some £3.fim, yesterday reported sharply higher 
full year profits. Page 26 

Distiller helped abroad 

Macdonald Martin Distilleries, best known for 
Glenmorangie stogie malt whisky, staged a smart 
recovery in its second halt helped by a strong 
performance in international markets. 

Page 27 

Companies In this Issue 


ABPH 

27 London tnU 

26 

ACT ’ 

27 London Smafier Cos 

27 

Acatos & Hutcheson 

20 M&B 

25 

Aba 

2S Macdonald Martin 

27 

Archer 

26 Martin Cuny Euro 

27 

Argent 

24 McLeod Ruses) 

24 

AsaN Bank 

21 Merchants HetaB * 

’ 27 

Astra 

7 Minolta Camera 

21 

Atkins 

28 Mitsubishi Bank 

21 

BCt 

17 Mitsubishi Bee 

21 

BSG Inti 

25 Mitsubishi Materials 

. 21 

BT 

10 MoOo 

18 

BTR 

25 NEC 

21 

Bank of Montreal 

21 NedBqyd 

18 

Beaaar Homes USA 

10 Norsk Hydro 

18 

Dettenw 

27 Novo Nofdsk 

7 

Brewkt Dotphta 

27 Otasnoto Inda 

25 

Catfe&WMen 

29 Paribas 

18 

Cable and Wketasa 

17 Parfcaide inti 

27 

CadHac Fferviaw 

21 Perpetual 

24 

Computer Associates 

21 PtiSp Morris 

21 

Cranawtck 

27 Raglan Property 

27 

0KB 

21 Safcura Bar* 

21 

Daimler-Benz 

17 Semes Bank 

21 

Debra Bank 

21 SootBah & Newcastle 

29 

SS 

27 Scottish Inv Trust 

27 

Enterprise OB 

28,27 SheB 

29 

Eurotunnel 

2* 17 Shoprlts 

29.25 

Fanchuch 

28 Siam Cement 

21 

Fleming ISgti income 

27 Singapore FYess Hdgs 

20 

Fuji Bonk 

21 South West Water 

25 

Fujitsu 

21 Southnwee 

27 

Sieves 

27 StatoU 

18 

Glaxo bvfia 

21 Storehouse 

24 

Qlencar 

27 Sumitomo Bank 

21 

Govatt High Inc 

27 Tafeada 

7 

H J Heinz 

2f TeleWest 

17 

Hanson 

10 Texaco 

21 

HltacN 

21 Thomson-CSF 

18 

Hokkaido Takushoku 

21 Tokal Bank 

21 


HuntafPrirrt 
Jessups 
Kaufhaf Holding 
Kory Securitise 
Kubota 
Laamo 
Logitech . 

London Bectrtdty 

Market Statisti c s 


$&inuaj reports service 3831 
Bandura* flout bends 22 
Bond futuns and opto® 22 
Band priest and yields 22 
CtmmccSUBe prices 28 

OWdaott wnoonced. UK 24 
SC currency rates 38 

Etnband prices 22 

AadMvaCMtees 22 

FM WuH (ndcss Ha*P*t» 
FT BDU Mm* Mn BackPage 
FOSMMtB bond we 22 

FT-SE Actorts Hdte88 20 


27 Tokyo Barrie 21 

25 Toshiba 21 

18 Trafalgar House 24 24 18 

21 TUnstaU 28 


21 

Unites 

18 

27 

Universal Ceramic 

25 

20 

Warner Estate 

24 

29 

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London trad op&oM 1 
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US intent rates 
Worid Stock Markets 


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COMPANIES & MARKETS 


No. I in beating system spares. 


©the FINANCIAL TIMES LOOTED 1994 


Friday May 27 1994 


IN BRIEF 


Debts worsen at 
Japanese banks 

Bad loans overshadowing Japan’s U iwaritag- 
commercial banks are growing foster than they 
can be written offi on the evidence of the industry's 
annual results. Page 21 

Paribas mm acceleration 

Recovery at Paribas, one of France's tearing bank- 
ing groups, will accelerate this year as the eco- 
nomic climate improves, according to Mr Andrfi 
Levy-Lang, chairman. Page 18 

Softw ar e home at a record 

Computer Associates, cme of the largest software 
txanpaufes, reported record fourth-quarter results 
as sales of its programs for mid-range cheat-server 
computer systems increased sharptyPage 19 

Legal eagles scare US companies 

US companies are becoming fnct Baifagiy nahirTtepl- 
to keep investors folly informed of their prospects 
because of the threat of costly legal action. 

Page 20 


BCI shares fall on capital raising 


By Andrew HR te MSan 

Shares in Banes Commercials 
Italians, the recently privatised 
Italian bank, feu by 4.4 per cent 
yesterday on news that the bank 
wants to raise up to i.9,.vb 2>™ 
($L4bn) through an Issue Of new 

shares arid urar ra nLv 

Although the proposal will not 
be approved by the bank's direc- 
tors until June 1, the company 
decided to make a statement late 
on Wednesday because of 


increasing market speculation 
about an increase in capttaL 

According to the statement, the 
boan? win also consider plans to 
seek shareholder authorisation 
for further capital increases of up 
to L2,Q00bn. over the next five 
years, through the issue of bonds. 

BCI yesterday declined to com- 
ment on the reasons for the 
planned capital increases, but 
some of the funds could be used 
to stren gthen cross-sha reholding s 
with European banks. 


Earlier thfo week, the Ttaiian 
bank announced that it was to 
negotiations to buy a 1 per cent 
stake in Commerzbank of Ger- 
many, which already has a stake 
in BCI and a seat on the board. 

BCI is also part of the consor- 
tium which yesterday proposed 
buying a large stake in Creditan- 
stalt of Austria. Creditanstalt is 
represented on the board of BCI 

and has hem a s barphnlripr gfor* 1 

the Tfa»tian hank’s foundation last 
century. BCI said on Monday it 


was ready to buy 3 per cent of 

Creditanstalt 

Yesterday, BCE shares fell from 
IAS41 to L5.105. If the plan is 
approved by the board, and by a 
subsequent shareholder meeting, 
BCE will issue 525m new shares 
on the basis of one new share for 
each pair already held, at a price 
of 1*3,000 a share. A farther 
28£Sm shares wEl he issued, for 
the exercise of warrants, convert- 
ible i n fo shares at the price. 

BCI was controlled by IRI, the 


Italian state bolding company, 
until its privatisation in March 
which raised L2,900bn. Since 
then, however, Mr Romano Prodi, 
IRI chairman, has publicly 
expressed Ms disappointment 
that a few large institutions 
gained control of the boards of 
both BCI and Credlto Italiano, 
the other newly privatised bank. 
Mr Prodi refused to comment yes- 
terday on reports that he will 
resign as head of IRI next week. 
Creditanstalt, Page l 


■ £42m in professional fees ■ Discount reflects unenthusiastic response 

Eurotunnel launches £858m cash call 


By Simon Davies 

Eurotunne l yest erday sealed Us 
long-term future by signing up 
an £&&3m rights issue and com- 
pleting £683m of hank flTumrfng , 
just weeks before the company’s 
money was due to run out 

After £42m of fees to advisers 
and und e rwrit e rs - with Morgan 
Grenfell, Bangue Indosuez and 
S-G. Warburg Securities as the 
main beneficiaries — the com- 
pany will receive £8i6m. 

Tim three-for-five issue at 265p 
was pitched .25 per cant below 
Wednesday's closing price of 


355p, reflecting an unepfhnriastic 
response from the City. The price 
foil a further 7p yesterday. 

It was the most widely expec- 
ted rights issue since Euro- 
tunnel's £S66m call -to 1990, when 
the prospectus said that funds 
raised would be “sufficient to 
complete the project and provide 
the necessary working capital”. 

The latest issue, the largest in 
the transport sector and one of 
the largest to UK history, had to 
be preceded by the si gning up of 
£700m of new senior debt from a 
220hank syndicate. After breach- 
ing two deadlines, the core banks 


agreed £698m in financing on 
Wednesday. An additional 250m 
has been arranged with a sepa- 
rate syndicate. Sir Alastair Mor- 
ton, chairman, apl/j- “We am HOW 
open for business and funded 
through to financial viability.” 

The deal was wnryrmpantnrl by 
the news that Mr Audit Bftnard 
is stepping down as co-chairman 
to be replaced by Mr Patrick Pon- 
soDe, a Eurotunnel director and 
former managing director of Cfe 
de Suez, the French group. 

The primary cause of the latest 
refinancing was the delay in 
opening the tnrmri^ costing an 


Divergent traffic forecasts 
highlight uncertainties 


By Charles Batchelor, 

Transport Goirespondent 

Traffic forecasting is an 
uncertain business: yesterday's 

annnmiiympnl front Eurotunnel 
included' not one hut three fore- 
casts of passenger and freight 
volumes. 

The projections come from 
Eurotunnel, its mramHanfat and 
the railways, BE. and SNCF. Not 
surprisingly EurotufineFs num- 
bers are the most optimistic. 

Eurotunnel is now carrying 
daily about 100 trucks each way 
through the tunnel on its freight 
shuttles. But with just one week 
of freight operations it, 

Eurotunnel is stiR largely depen- 
dent cm its traffic forecasts. 

The uuderiying prospects are 
good. The cross-Channel market 
for both passengers and freight 
has been growing strongly since 
the mid-1980s, passenger traffic 
by 4 per cent a year and roll-on 
roll-off freight traffic by more 
than 7 per cent Both Eurotunnel 
and its consultants, TRC, expect 
this growth to continue. 

It is to the detail that the fore- 
casts differ. Eurotunnel believes 


it will take two yean to build up 
to its projected 40 per cent share 
of the roll-on rofl-eff freight mar- 
ket while TRC expects it to take 
three years. Eurotunnel’s esti- 
mates of freight and passenger 
revenues, 2120m this year rising 
to £737m in 1996, are between 5 
and 7 per cent higher than Trie’s. 
The r a ilw ay s are to rough agree- 
ment with Eurotunnel on its pas- 
senger forecasts bid Rattfredghi 
Distribution, BR’p freight armj 
makes a Lower freight forecast 

Eurotunnel nirrimr: to be closer 
to the market than TRC as it 
actually talks to the freight- com- 
panies. However, it should be 
remembered that Eurotunnel and 
railways are to dispute over the 
railways' failure to provide 
upgraded high-speed Maes «pd 
new raffing stock on time. 

Do the forecasting differences 
matter? Christopher Garnett, 
Eurotunnel’s commercial direc- 
tor, believes that the disparity 
between the projections will 
malm a difference of “millions 
rather tens of millions of 
pounds”. Graham Corbett. 
fi nannt* director, said that there 
was a 17 per cent margin built 


into revenue projections before 
funding problems would arise. 

It is also true that independ e nt 
forecasts of traffic growth have 
generally been too low. Analysts 
yesterday were taking a cautious 
view. One said that even if Euro- 
tunnel met its most optimistic 
projections, it would still have . 
trouble paying off its debts. 

The great .unknown is the 
e xtan t to whfoh the tunnel win 
create new traffic as opposed to 
stealing passengers from the fer- 
ries and from other longer Chan- 
nel and North Sea routes. . 

A second crucial element in 
Eurotunnel's forecasts is the 
price of tickets. The company 
believes it wifi, not be possible for 
ferry companies to maintain 
their present discount offers. 

But the omens are not good. 
Stena Seafink earlier this week 
cut its prices Mr 20 per cent, just 
five months after promising It 
would hold them steady for the 
year. If the ferries are launching 
into such cutthroat competition 
before the tunnel is properly 
open, analysts ask, what will 
happen when it is providing a 
foil service? 


Deutsche Bank likely to 
cut its Daimler stake 


By David Marsh, 

European Ecfltor 

Deutsche Bank. Germany’s 
leading bank, is likely to reduce 
Its stake in Daimler-Benz to 
around 15 or 28 per cent from 25 
per cent in the next 10 years. 

Mr Edzard Beater, chairman of 
the German, motor and engineer- 
ing company, yesterday said: 
“My prediction for 10 years from 
today is that [the stake] will he 
15 to 20 per cent - to that direc- 
tion.” 

Deutsche’s stake was cut from 
28 per cent to 25 per. cent after a 
share placement earlier this 
year. 

Speaking at a lunch for US cor- 
respondents, Mr Beater said: 
“They [Deutsche Bank] are 
really trying to withdraw from 
too heavy industrial engage- 
muds, especially in the field of 
supervisory boards. I think this 


a very good and very positive 
development” 

About Daimler's 10 per cent 
stake in HetaBgesaQscfaaSt, the 
troubled German metals and 
m i n i n g group, Mr Banter gave 
the clearest indication to date 
that it might eventually be sold. 

The stake, taken in 1991 when 
Daimlar saw poss&fffittes of links 
between the two groups to envi- 
ronmental technology, was no 
longer regarded as a “strategic 
investment”, Mr Beater said. 
However, Daimler participated 
folly to a rights issue for MetaB- 
gesellschalt earBer fids year as a 
“comradely” gesture, he said.. 

Mr, Benter, who has been 
tipped, to take over as tin next 
supervisory board chairman of 
Daimler when he steps down 
from the> management hoard 
elaborated on Us strategy of 
widening; the group's equity 
base. lUs was part of Us drive 


to give the company “a truly 
interna ti onal culture”, he said. 

The proportion of Daimler 
shares held in the US could rise 
to 15 per cent over the longer 
term, from between 3 and 5 per 
cent at present, Mr Beater srid. 

Daimler last October became 
the first German company to 
have tts shares listed on the New 
York Stock Exchange. Its one- 
for-10 rights issue later this sum- 
mer would have a strong inter- 
national element to the share- 
ptaefog, Mr Renter said. 

He gave a blunt assessment of 
the reasons for a record DMIAbn 
(Jl.lbn> loss last year. Daimler’s 
busi ne ss performance, which had 
been “dramatically rotten”, was 
now reaching “tnmround”, he 
said. 

“Noose denies mistakes were 
made by pama g e m en t We made 
evaluations which didn't prove 
viable,” he said. 


C&W sets sights on 


By Andrew Adonis 

Cable & Wireless, the UK 
telecommunications group, 
rjafms to be on the verge of a 
breakthrough in China’s tele- 
coms market 

At yesterday’s results meeting 
Lord Young. C&W chairman, said 
the company had been desig- 
nated “preferred partner” by Chi- 
na's minis try of posts and tele- 
communications for joint 
ventures, the first of which could 
be agreed this year, C&W Is using 
its 57 per cent stake to Hong 
g*mp Telecom, fls largest, opera- 
tion. as a lanafltpad. 

The group announced a 19 per 
cent increase in pre-tax profits to 
*i.09bn ($L63bn) for the year to 
March 31. Removing exceptional 


items, pre-tax profits rose by 32 
per cent, but the weakness of 
sterling accounted for about 
- £95m of the, advance. 

Lord Young «miri fTMna was 
C&Ws priority, with the com- 
pany ready to increase its gear- 
tog sharply from, a year-end 12 
per cent - an' net debt of nearly 
£40Qm - if suitable o pportun ities 
arose. 

China's targe t for the year 2000 
is to have increased its number 
Of phnna fines frpffl 40m. to 114m. 
The most likely openings are 
expected to be for city-wide or 
regional projects. 

At £4.7bn, C&W 8 animal tom- 
over rose 23 per cent Earnings 
per share were 2S.6p. against 
23.7P (19.4p before ezneptfonals). 
A final dtridoid of 5455p lifts the . 


total liper cent to &25p (7.42p). 

C&Wj_". experienced strong 
growtfcan all its main divisions, 
wW turnover 26 per cent up at 
Honglmjg Telecom, to £2.08bn, 21 
per cefi, up, to £L47bn, at Mer- 
cury CkmmanicatiaQ8 in the UK 
fa wmch. C&W has an 80 per 
cent tine - and 29 per cent up in 
the Caribbean region, to £477m. 

In thp UK, Mercury’s traffic 
grew by 37 per cent and it claims 
a UK market share of nearly 14 
per cent, with a 25 per cent share 
of the large business market 
Mercury One-2-Ose, the UK cel- 
lular mobile joint venture with 
US West, now has nearly 100,000 
customers-- about is per rent of 
the market within the greater 
London area.. 

Lex; Page 16 


estimated £61Qm to lost revenues. 
There was a farther £290m 
increase in construction costs, 
and the remaining capital is 
required to pay interest on the 
new debt until Eurotunnel 
breaks even - scheduled for 1998. 
Under its latest financing - 

Which asMimM a grpgmont for thp 

£50m additional loan » u » d the 
exercise of 1993 warrants - Euro- 
tunnel baa a 2470m cushion 

a gafnat any fo r wpnnpq 

It has also suggested that arbi- 
tration over the British and 
French railway authorities’ fail- 
ure to install agreed infrastruc- 


ture could give it “flOOs of mo- 
tions”. Once it can demonstrate 
steady cash, flows, it may be able 
to refinance its £6hn of debt on 
more favourable terms. 

However, concerns remain over 
the quality of Eurotunnel's pro- 
jections, which are based on 
unknown quantities, but provide 
a limited margin for error. 

Sir Alastair said: “It is now 
possible to perceive a period 18 
months from now, where the 
operations reach cruising speed. 
This is when the value will begin 
to emerge in the company.” 
Details, Page 24; Lex, Page 16 





Alastair Morton: 'We are open for business, and tended to viability' 


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TeleWest 
set to 
postpone 
float 

By Raymond Snoddy In London 

TeleWest, the largest cable 
television operator to the UK, Is 
expected to announce today that 
it Intends to postpone a flotation 
that would have valued the com- 
pany at £l.7bn. 

The expected decision to post- 
pone will be blamed on deterior- 
ating market conditions. 

The TeleWest reassessment 
came as Genual Cable, one of 
the largest UK cable communica- 
tions groups, yesterday became 
the second cable company on 

consecutive days to postpone flo- 
tation plans. 

The company, a subsidiary of 
Compagoie Gdn&ale des Eaux, 
said it had decided to defer tts 
proposed London listing “to the 
fight of market conditions”. 

Telewest, a joint venture 
between TCI of Denver, the larg- 
est cable operator in the US, and 
US West, the American tele- 
plume company, would only say 
last night it was assessing its 
options with advisers Goldman 
Sachs and Klein wort Benson. 

The derision by TeleWest. 
which was planning a fisting on 
the T^rinn Stock Exchange end 
a registration of American 
depository shares on Nasdaq, 
will have considerable influence 
on other cable companies plan- 
ning to come to market. 

A s recently as Wednesday Mr 
Alan Michels, TeleWest chief 
executive, suggested the float 
would go ahead. 

On Wednesday, Comcast UK 
Partners which was planning to 
raise tends through a secondary 
share issue to the US, postponed 
the sale because of poor condl- 
ttans hi the market 

Comcast UK, part of Comcast 
the Philadelphia-based cable 
communications company, had 
planned to sell ll.75m shares for 
up to $18 each. When investors 
showed little interest at a floor 
level of $14 a share the offering 
was postponed. 

General Cable holds cable fran- 
chises in the UK covering some 
1.0m homes to areas mrfndfag 
Windsor in Berkshire, Hilling- 
don and Hounslow to west Lon- 
don, and Birmingham, one of the 
most successful franchises in the 
UK. 

General Cable said yesterday 
that it remained committed “to 
providing an op p o r tu nity for UK 
and international investors to 
participate to the development of 
the UK cable industry”. It would 
fist to the UK and internation- 
ally when market conditions 
ware favourable. 

Lex, Page 16 


Management Boy-In 

Th»r T-mur Product, Dtrtflao of 

BF Nutrition 

Acqubdtkw Rnance & 

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18 


FINANCIAL TIMES FRIDAY MAY 27 1W4 


INTERNATIONAL COMPANIES AND FINANCE 


Paribas chief forecasts 
accelerating recovery 


By Alice Rawsthom in Paris 

Recovery at Paribas, one of 
France's leading 1 banking 
groups, is poised to accelerate 
its recovery this year as the 
economic climate improves, 
according to Mr Andre Levy- 
Lang, chairman. 

“The first months of 1994 
have confirmed that this year 
will mar k a new step in the 
improvement of the group's 
results," he told the annual 
general meeting in Paris yes- 
terday. 

Paribas, like other French 
banks, came under intense 
financial pressure in the early 
1990s. It reached its nadir in 


1991 when it fell into the red 
for the Gist time, and was then 
dogged by a scandal over off- 
balance sheet share dealing s at 
Ciments Francois, the French 
cement company in which it 
was a substantial investor. 

The group returned to the 
black In 1992 and increased its 
net profits in 1993, albeit to the 
relatively low Level of 
FFrL45bn ($257m) on operating 
income of FFr32. 68b n. It made 
substantial profits last year 
from its currency trading 
operations, but had problems 
in the commercial property 
sector and was affected by the 
depressed state of the retail 

hanking mar ket 


Mr Levy-Lang said Credit du 
Nord, the group's main retail 
banking subsidiary, had con- 
tinued to experience problems 
in the opening months of 1994. 
He warned it was likely to 
incur an operating loss during 
the year, but said there was 
“every reason to think" it 
would move back into the 
black in the future. 

In the meantime, Paribas, 
which has a large portfolio of 
industrial investments, is con- 
tinuing its strategy of raising 
capital through asset disposals. 
Mr Levy-Lang estimated that 
the group had raised around 
FFr3bn from such sales during 
the fust quarter of 1994. 


German retailer ahead 7% 


By Michael Undemann 
in Cologne 

Kaufhof Holding, the German 
retailer, yesterday reported 
1993 profits of DM240m 
(5145.5m). up 7 per cent from 
DM222m the year before. The 
company also forecast steady 
earnings for the current year. 

Kaufhof is set to take a stake 
of between 50 and 70 per emit 
in Horten, a s mall er depart- 
ment store chain. This would 
increase group turnover to 
around DM28bn, comparable to 
that of Karstadt, Germany's 
biggest retailer. Final details of 


the deal will be announced in 
about three weeks after negoti- 
ations are completed. 

Turnover in the first four 
months of this year rose 8 per 
cent, to DM7.6bn. Mr Jens Ode- 
wald, chief executive, predicted 
retail sales would pick up 
throughout the year as Ger- 
many pulled out of its worst 
recession. 

The dividend win be raised 
by DM1.5 to DM13.50 for ordi- 
nary shares, and by the same 
amount, to DM14.50. for prefer- 
ential shares. 

In 1993. turnover rose to 
DM23. lbn, up 12.7 per cent 


foom DM20.5bn the year before. 
The rise was driven mainly by 
a 33 per cent increase in turn- 
over at Media Markt, Vobis 
and Saturn, the specialist 
stores which the group plans 
to expand. 

European sales leapt 54 per 
cent to DM43bn following the 
consolidation of Kuoni, the 
tourist agency in which Kauf- 
hof holds a 50.1 per cent stake. 
Tbtal foreign sales rose to 19 
per cent of group turnover. 

Mr Odewald said the group 
would invest DMSOOm In the 
coming year and increase its 
retail outlets by 120 to 1,235. 


Nedlloyd returns to black 
with earnings of FI 10m 


Unexpectedly 
low profit hits 
Trafalgar stock 

By Paul Taylor in London 

Shares in Trafalgar House fell 
yesterday after the UK-based 
group reported lower than 
expected interim profits of 
£l3.4m ($20m) compared with a 
£98.6m loss a year ago when 
substantial write-downs were 
made in the value of its prop- 
erty portfolio. Turnover was 
almost unchanged at £L78bn. 

Trafalgar’s shares closed 9p 
lower at 86p. The group, whose 
interests range from engineer- 
ing and construction to Lon- 
don’s Ritz Hotel, omitted the 
interim dividend. 

Details, Page 24 


By Ronald van de Krol 
in Amsterdam 

Nedlloyd, the Dutch transport 
group, swung to a net profit of 
FI 10m ($5.4m) in the first quar- 
ter of 1994 from a loss of FI 86m 
in the same period of 1993. 

The company, which yester- 
day implemented its new pol- 
icy of publishing quarterly fig- 
ures, said the improvement 
stemmed largely from cost-cut- 
ting, lower interest expenses, 
the firmer dollar and higher 
volumes of ocean-going cargo. 
Turnover was virtually fiat at 
FI 1.60bn compared with 
FI UJlbn. 

In line with the company's 


performance in 1993, Ned- 
lloyd’s ocean shipping saw the 
biggest improvement, posting 
an operating profit of FI 24m 
against a loss of F1 57m in the 
same quarter of last year. 
Although downward pressure 
on shipping rates resumed in 
early 1994 after a period of sta- 
ble rates in 1993. Nedlloyd said 
it was helped by a rise in the 
volume of cargo transported. 

Nedlloyd’s European road 
haulage business saw a rise in 
operating profit to FI 14m from 
FI 9m, but the performance 
was still below expectations. 

Nedlloyd repeated earlier 
forecasts that it would post a 
profit for the full year. 


MoDo posts | 
first profit [ 
for quarter j 
since 1991 

By Christopher Brown-Hum#* 

in Stockholm 

MoDo, the Swedish palp and j 
paper group, yesterday | 
announced its first quarterly ( 
profit since 1991 and upgraded 
its forecast for the foil-year. 

The group made a pr o fi t of 
SKr202m (S26m). after net 
fhumciai Hjm**, & year- 

earlier loss of SKrlSlm. 

It said its full-year profit 
would be “well above" 
SKrlbn, compared to last 
year’s SKr449m loss. The 
group’s B shares rose SKr7 to 
SKX318, 

Mr Bernt LBf, chief execu- 
tive, said that although prices 
were rising; they had a Hmftnd 
impact. The upturn was 
mainly due to higher volumes, 
better capacity utilisation and 
cost-cutting. The group also . 
benefited from lower interest 
rates and reduced net debt 

Sales rose to SKrLSTbn from 
SKr<L32bn. while operating 
profit improved to SKr433m 
from SKrl3lm. 

The group's Swedish units 
lifted operating profit to 
SKr483m from SKr28im, due 
to better market conditions 
and higher capacity utilisa- 
tion. Foreign units improved, 
but were dragged down by the | 
French operations where j 
losses almost halved to | 
SKr75m from SErl42m. I 

— ■ ■ . ■ ■ - ? 

Thomson-CSF j 

may report loss I 

of up to FFr2.2bn 

By David Buchan In Paris 

Thomson-CSF, the French 
state electronics group, said it I 
could report a loss of up to ! 
FFr2.2bn (S380m) for 1993 « 
because of its 21.6 per cent ■ 
stake in Credit Lyonnais. j 

In March, the French bank ! 
announced a loss of FFrftSbn 
for 1993 and a FFr4L9bn gov- 
ernment-backed rescue pack- 
age including the transfer of 
FFr40bn of non-performing 
property loans to a new shell 
company. 

Without Credit Lyonnais, 
Thomson-CSF would have 
made a FFrlfan profit last year. 


Greek telecoms returns to market 


The new government has scaled down the flotation, writes Kerin Hope 


T he much-delayed flota- 
tion of OTE. the Greek 
telecoms monopoly, is 
back cm track after an eight- 
mouth gap caused by a change 
of government However, the 
socialist administration's plan 
to sell 25 per cent of the com- 
pany through the Athens stock 
exchange is less ambitious 
than the one launched by its 
conservative predecessor in 
1933. 

The conservatives wanted to 
sell 49 per cent of OTE, dispos- 
ing of a 35 per cent strategic 
stake to an international tele- 
coms operator, together with 
management rights, before 
floating another 14 per cent 
The socialists insist the com- 
pany should remain under 
state management. Neverthe- 
less, government advisers, 
aware that the question of effi- 
cient management will loom 
large in investors’ minds, pro- 
pose appointing a telecoms 
operator from abroad as a tech- 
nical consultant 
The selection of a consultant 
could be timed to coincide with 
the flotation, provisionally set 
for October, they suggest. 

Analysts say that given 
investors' current enthusiasm 
for international telecoms 
issues, neither the delay nor 
the decision to restructure the 
disposal are likely to reduce 
the appeal of OTE. 

OTE, valued by analysts at 


around Drl,000bn ($4hn), is one 
of only a few profitable public 
utilities in Greece. Company 
officials say that operating 
profits in 1993 amounted to 
some Drl20bn on turnover of 
DrSOObn, a 25 per cent increase 
on the previous year. 

Although Greece is a mature 
market in terms of its fixed 
network - with 40 lines for 
every 100 residents - there Is 
considerable room for growth. 
Digital lines amount to only 15 
per cent, while data transmis- 
sion systems, paging and tele- 
conferencing are all in their 
infancy. 

OTE is also benefiting from 
substantial European Union 
funding for a "crash pro- 
gramme" to improve telecom- 
munications in Athens. Last 
month, Siemens Hellas and 
Intracom. a local telecoms 
equipment supplier, were 
awarded a Dr40bn contract to 
provide im digital lines for the 
capital. New transit exchanges 
will be linked by fibre optic 
cable, and 12 outmoded 
exchanges are being replaced 
with remote concentrators. 

A crucial question wifi be 
tariff policies, still controlled 
by the government. Some 
effort was made last year to 
iron out distortions In pricing 
- which favoured domestic 
customers making local calls 
while long-distance and inter- 
national rates were charged at 


high rates • but further 
restructuring wilt be needed. 

"Revenue per line for OTE is 
only half the European aver- 
age, so there is plenty of poten- 
tial. But if the company stays 
under the state umbrella, will 
the government allow realistic 
price hikes?" asked a local ana- 
lyst 

The government this week 
re-appointed Credit Suisse 
First Boston and J- Henry 
Schroder Wagg. originally the 
conservatives’ choice, as coor- 
dinators and lead m anager s for 
the issue notation. GSFB was 
already advising the govern- 
ment on the strategic sale. 

S chraders will structure 
the issue, while CSFB 
will place an Interna- 
tional tranche, expected to 
amount to L0 per cent of OTE's 
equity, with investors in 
Europe and the US. 

National Bank of Greece, the 
biggest state-controlled bank, 
will be lead manager for the 
domestic tranche, replacing 
Credit Bank, the private Greek 
bank selected last year. 

The experience acquired last 
year should help the interna- 
tional investment banks to 
meet the new timetable for the 
flotation. It will still be tight: 
revised legislation on the regu- 
latory framework must be 
passed, a frill audit must be 
completed, and decisions arc 


needed on OTE's heavy pen- 
sion fond liabilities. 

There are sUU gaps In OTE’s 
balance sheet, as Its first audit 
to international standards, 
launched teat year by Arthur 
Andersen, was halted when the 
change of government took 
place. However, it is dear that 
current pension fond liabilities 
amount to over DrMQbn, ana- 
lysts^. - 

OTE contributes DrUbn 
Riuuafiy to the fond, which 
also receives a subsidy from 
the budget. However, if the 
company’s pension obligations 
are not re d uced , the fond will 
become a serious drain on 
future earplugs. 

With the socialists now com- 
mitted to Increasing Greece’s 
base of small shareholders 
through privatisation, the 
domestic tranche, expected to 
amount to some 10 per cent of 
the of fering , may include some 
Incentives. The remaining 5 
per cent 1% to be stripped out 
and sold at a discount to OTE 
employees and pensioners. 

Government advisers dis- 
count fears that the issue, five 
times Mggar than the largest 
offering to date, could over- 
whelm the Athens stock 
exchange. They see no short- 
age of liquidity, as more than 
than DrSObn in listings and 
rights Issues was raised with- 
out ttfflculty during the first 
quarter of this year. 


Statoil worth up to NKr80bn 


By Karen Fossil bi Oslo 

Statoil, the Norwegian state oil 
company, has been valued at 
between NKr72bn and 
NKrSObn (SIO.Ibn-ILUbn) by 
an independent assessment 

The appraisal, commissioned 
by the government from Gold- 
man Sachs International, the 
US investment bank, and Fiba 
Nordic Securities, a domestic 
firm, was designed to assess 
the group's value and relative 
performance within the global 
petroleum industry. 

The valuation could be seen 
as part of the process in the 
lead-up to a part-privatisation 
of the state-owned group, 
although the issue is not on 
Norway's political agenda. 

Should Statoil be privatised, 
it is widely expected 'that the 


government would base the 
move on that of the ownership 
structure of Norsk Hydro, Nor- 
way’s largest publicly-quoted 
company, in which the state 
holds a 51 per cent interest. 

Flba valued Statoil at 
NKrflObn. or 17 times expected 
1995 earnings and three times 
book value. Goldman Sachs, 
which valued the oil group at 
between NKr72bn and 
NKr78bn, ranks it, outside gov- 
ernment control, as the sev- 
enth largest independent oil 
company in the world. 

This is based on its proven 
reserves of 3Sbn barrels of oil 
equivalent with a reserve life 
of 19 years, according to cur- 
rent production levels. The fig- 
ure can be broken down to 
show production lives for oil 
and gas of 11 years for oil 


and 75 years respectively. 

The US bank put Statoil’s 
market capitalisation at 
between $5bn and SlSbo. rank- 
ing it as a mid-tier oil company 
among the top 15 to 20 in the 
world, dose to the size of 
Phillips Petroleum of the US. 

In terms of independent oil 
groups, Staton's sire is closest 
to that of Enterprise Oil in the 
UK. according to Goldman 
Sachs. Enterprise, however, 
has a rising production profile 
while Statoil's is declining. 

Goldman Sachs forecast Stat- 
oil’s 1994 operating profit at 
NKrl2.43bn, unchanged from 
1993, rising to NKrl5.0Zbn in 
1995 and NKrl&2bn in 1996. 

However, it says Statoil 
lacks projects to replace declin- 
ing oil production, and feces 
rising production costs. 


Norsk Hydro 
reveals rights 
issue details 

By Karen Fotett 

Norsk Hydro, the Norwegian 
energy, fertilisers and metals 
group, yesterday disclosed 
details of a rights Issue to raise 
nearly NKxSbn ($TO2m). 

Hydro will issue 23.7m 
shares at NKr200 each. Its 
shares closed yesterday down 
NKiD.50 to NKr248, Existing 
shareholders will have the 
right to subscribe on a ane-for- 
nine basis, for up to 3.62 per 
cent of the new shares, during 
a subscription period between 
June 3 to June 17. 

The Norwegian state, which 
holds a 51 per cent stake in 
Hytfro, intends to subscribe in 
fid! to its entitlement. 


A 




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The Property Finance Sourcebook 1994 

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EURO 

yruNNEy 


Eurotunnel P.LC. Registered Office: The Add phi, John Adam Street, London. WC2N 6JT. Registered in England No. 1960271 

Eurotunnel Sj\. Soctete nnonyme au capital du FRF 5J9S.07I.SI0. Registered Office: 112 avenue K Idler, B.P. 166 -Trocaddro. 75770 Paris Cedes 16. 

Registered in Paris No. RCS B 334 192 408 

EUROTUNNEL RIGHTS ISSUE 

Righu Issue of 323.884,308 New Units (cadi Unit comprising one share or 40p in Eurotunnel P.I..C- (“EP1 XT’) and one share of FRF 10 in Eurotunnel 
S.A. (“ESA”! twinned as a Unit). The derails of this Rights Issue will be published in the Bulletin des Annonccs Legates Obligaioircs of 27 May 1994. 


This notice is given to holders of Units in buarcr form (”Bcarer 
Unitholders”! and. for information only, to holders of hearer warrants, in 
connection with the grant of rights to subscribe for an aggregate of 
323,884 JOS Units ([be "New Uniu”l to holders of Units in registered form 
on the register at the close of business on 24 May 1994, to holders of Units 
in bearer form held, directly or indirectly, through an affiliate of 
la Socidtd Interprofessionnelle pour (a Compensation des Valeurs 
Mobil&re* (“SICOVAM”) at the close oF business on I June 1994 and to 
holders of Units in bearer form held otherwise than through the SICOVAM 
system, such rights (“Subscription Rights”) being rights in Lwinnud form to 
subscribe for New Units at the rale of 3 New Units for every 5 Subscription 
Rights granted, with one Subscription Right granted for every existing Unit 
held, at 265 p per New Unit or at FRF 22JO per New Unit or in a fixed 
combination of pounds sterling and French francs of 1325p and 1 1.25 FRF 
per New Unit, payable in full on acceptance. 

Subject as provided in the last paragraph of this notice, a copy of the Rights 
Issue prospectus in English (comprising listing particulars of EPLC and 
ESA) may be obtained from National Westminster Bank Pic. Registrar's 
Department, New Issues Section, P.O. Box 859. Consort House, East 
Street. Bcdminstcr, Bristol BS99 1 XZ or 15 Ftemherstonc Street, London 
EC I Y 8QS from 2 June until 22 June 1994. A copy or the righu issue 
prospectus in French (“French Prospectus”) (approved by the Commission 
des Operations de Bourse, visa No. 94/278 dated 26 May I994l may be 
ubtained from Bonquc Indctsuez at % Boulevard Haussman, 75008 Paris, 

Generate Bank at 3 Montagu du Pare, 1000 Brumeis and Bonquc Indosuez 
Belgique at 14 Place Saime Gudule. 1000 Brussels from 2 June until 22 
June 1994. A copy of the French Prospectus may also be obtained from 
National Westminster Bank Pic at either of the addresses referred to above. 

A copy of an abbreviated version of the French Prospectus may be obtained 
from Bonquc Indosuez at tire address referred to above. 

Bearer Unitholders holding their Units through an affiliate of SICOVAM 
should receive a letter (the "Form of Instruction") from their bank or broker 
(affiliated directly or indirectly to SICOVAM) confirming that 
Subscription Righu Have been credited to their securities accounts pursuant 
to the Rights Issue. Such Unitholders who wish to subscribe for New Units 
should complete the Form of Instruction and return it to the relevant bonk 
or broker together with a remittance for Lhc amount payable on 
subscription, by ao later than 22 June 1994 in accordance with the 
instructions set out in the Form of Instruction. 

Unitholders residing outside France and holding their Units in bearer form 
otherwise than through an affiliate of SICOVAM ("Direct Bearer 
Unitholders”) who wish to subscribe for New Units may elect, either 
directly or indirectly through their batik or broker, to: 

(aj obtain a subscript km form from Generate Bank or Bonquc Indosuez 
Belgique or Barque indosuez, (at the addresses referred to above), or 
National Westminster Bank Pic. ftcghlrar'x Department. New Issues 
Section u 15 Fcathentonc Street, London EC! Y 8Q5, complete the 
subscription form and return it to cither Generate Bonk or Bonquc 
Indosuez Belgique (at the addresses referred to above) by close of 

By Order of the Board 
S. A. Walker, FCIS 
Secretary 

Eurotunnel P.L.C. 27 May 1994 

Issued by Huratunnci Pi-C and Eurotunnel S.A. and approved by Morgan Grenfell & Co. Limited, a member of The Securities and Futures Authority 
Limited, for du purpose of section 57 of the Financial Services Act 1986. 


business on 22 June 1994 together with the relevant number of 
Coupons No. 3 and the full amount payable on subscription or an 
authority to debit their account with such full amount, (plus, where 
relevant, the Belgian Stock Exchange lax at the rate of 0J5 per cent of 
the subscription moneys paid r, or 

(b) send the relevant number of Coupons No. 3 and the full amount 
payable an subscription directly to Bonquc Indosuez. Direction des 
Services Titrcs. at 96 Boulevard Haussman. 75008 Paris by close of 
business on 22 June 1994. Any instructions Tor Banque Indosuez 
regarding the issue of direct bearer certificates for any New Units 
should be forwarded at the some time. 

Bearer Unitholders in Belgium will receive details of the Rights Issue by a 
notice which will appear in certain Belgian newspapers on Z7 May 1994. 
Direct Bearer Unitholders who wish to subscribe for New Units in Belgium 
may apply directly (or indirectly through their bank or broker) to any 
branch of Generate Bonk or Bonquc Indosuez Belgique in Belgium for n 
copy of tile French Prospectus and a supplementary document being issued 
to holders of Units in Belgium and approved by the Belgian Commission 
Bancairc ot Financier (the "Belgian Supplementary Document"). Attached 
to the Belgian Supplementary Document will be a subscription term which 
should be completed and returned, together with the full amount payable on 
subscription (plus the Belgian Stock Exchange tax at the rate of 0.3S per 
cciu of the subscription moneys paid), before close of business on 22 June 
1994 to Generate Bank or Banque Indosuez Belgique, either directly or 
indirectly through their bonk or broker, by these Direct Bearer Unitholder, 
wishing to subscribe for New Units. The relevant number of Coupons No. 
3 should also be deposited with Generate Bank or Banque Indosuez 
Belgique at the same time as lhc completed subscription form is relumed. 

The Subscription Rights and the New Units have not been and will not be 
registered under the United States Securities Act of [933. as amended, or 
under the securities laws of any state of the United States, or under the 
Securities and Exchange Law of Japan or in Hong Kong or qualified fur 
sale under lhc securities laws of any of the provinces or Territories of 
Canada and no prospectus in relation to the Rights Issue or the New Units 
has been lodged with, or registered by. the Securities Commission of 
Australia. EPLC and ESA will not authorise the delivery of any D r the 
foregoing documents or documents of title in respect of Subscription 
Rights or New Units to any address in such jurisdictions. Subject to certain 
limited exceptions, no Subscription Rights may be offered, sold, exercised, 
renounced or delivered, and no New Units may be offered, sold or 
delivered in such jurisdictions and this notice may not be acted upon by 
persons in such jurisdictions. Any person outside the UK. France and 
Belgium wishing to take any action in connection with the Rights Issue 
must satisfy himself os to the full observance of the laws of any relevant 
territory in connection therewith, including obtaining any requisite 
governmental or other consents, observing any other requisite formalities 
and paying any issue, transfer or other taxes due in such territory. Such 
persons should consult their professional advisers as to whether they 
require any governmental consents or need to observe any other formalities 
in order to subscribe for New Units. 


The Board of Directors 
Eurotunnel S.A. 


Carlton 

Communications Pic 
Exchangeable Capital 
Securities 

"Carlton Communications Pic 
("Carlton') published its results 
for the six months ended 31 
March 1994 on 25 May 1994. 
Copies of the half yearly report 
are available to holders of 
Carlton's Exchangeable Capital 
Securities ("Ex-Caps') from 
Carlton's registered office at 
15 St George Street, Hanover 
Square, London W1R 9DE 
and from paying agents for 
the Ex-Caps, Morgan Guarantee 
Trust Co. of New York, 
60 Victoria Embankment, 
London EC4Y0JP." 



c " s ff E OT® aAL 

.g&g&ggg&g. 

BONDS DUE 1997 

Fortha period Mav2&1994 
to November 28, 1994 
the new rate has been 
fixed at 11,44375 % PJK. 

Next payment date : 
November 28, 1994 
Coupon nr : 3 


^puot: 


„ . 581,72 

for the denomination of 
FRF 10 000 
FRF 5.817,24 
for thedenominatfon of 
FRF 100 000 
„ FRF 58.172,40 
for the denomination of 
FRF 1000 000 

THE PRINI 
c AGE1 

SQCETE 

15, Avenue Emile Reuter 
LUXEMBOURG 


TO ADVERTISE YOUR 
Legal Notices 


Please contact 
Tina Me Gorman 
on 

071 873 4842 
Fax: 071 873 3064 


The Slock ILxcbange of Hong Kong Liminxt hikes no nspoiatbility for the Laments of ibis 
announcement, makes no representation as to its accuracy or completeness and express^ v 
disclaims any liability whatsoever fur any lass In ni'sucver arising fmm or m reliance it/ntt the 
whole or any part of the contents of this announcement. 

CHIC Telecommunications Limited 

(Incorporated in Ibe Cayman fskuhls tiilb limited liability » 

Warrants entitling the holders 
to purchase ordinary shares of HK$0-50 each la 
Hong Kong Telecommunications Limited expiring on 
10th February, 1995 
(“Warrants’’) 

ANNOUNCEMENT 

Tlui directors of OTIC Telecommunications limited am aware riiat rive register of nromhcix 
of Hong Kong Telecommunications limited (’IIK Telecom’) will Iro closed fn«m (Hong 
Kong time) tkh June, 199-1 to lOrii June, 1991, both days inclusive, (die "Hook Close Period") 
for die purpose of determining rhe entitlements m flK Telecom's final dividend of HK50.276 
per IIK Telecom urdinary share for the year ended 3 1st March. 199). Holders of die 
Warrants are reminded dull according to die terms and conditions of the Warrants, die right 
to exercise die Warrants sluili lie suspended if the Exercise Date (as defined in the 
conditions endorsed on the Warrant certificates t "Conditions")) shall Fall less than 10 
Business Days (as defined in the Conditions) jwinr to tiro fitst day of the period during 
which the register of members of IIK Telecom is dosed or during the Book Close Period. 

Accordingly if an Fjtcrcisc Date relating to the exercise of any Warrants shall fall within tiro 
period from 24(h May, 1994 to 10th June, 1994, such Exercise Date shall Iro jxwtjx>ned until 
the first Business Day after the expiry of such period. 

! folders of die Warrants are further reminded that according to the terms and conditions of 
the Warrants, holders of Bearer Warrants wlm luive delivered duly competed .Exercise 
Notice (as defined in the Conditions) containing payment instruction for tiro Exercise Price 
fas defined In tiro Conditions) and Exercise Expenses (as defined in the Conditions) (» 
Eumclcar or Cedcl not Utter tlian 10:00 a.m. on 20th May, 1994 (Brussels time or Luxemlrotg 
rime, us the ease may Iro) and registered holders of Registered Warrant who have delivered 
duly completed Exercise Notice, together with tiro Warrant certificateLs) and payment tor tiro 
Exercise Price and Exercise Expenses to Central Registration Hong Kong Limited, the 
Registrar, at 17th Floor, Hopewell Centre, 13!\ Queen's Road East, thing Kong nut Liter than 
10:00 u.i n. on 20th May, 1991 (Hong Kong time) will Iro registered as a shareholder of IIK 
Telecom irofnre the register of mcinlrors uf HK Telecom closes and will Iro qualified for the 
proposed final dividend of l IK Telecom. 

By order of tiro Board 

Amy Wong; Hlng Hung 

Secnvary 

I long Kong, 20th May, 1991 


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Registered Office 
Aidringen, Luxembourg 
8722 


14, rue 

R.C. Luxembourg Section B 
DIVIDEND ANNOUNCEMENT 
On 2Q!h May 1994 tho Annual General 


the payment of a dvidend of USD 0,10 per fi^sremSie number 
of shares outsending qn98i May, 1934, ox-dvktend date 2ia 
May 1994, payable on May, 1934 against presentation of 
coupon no T5 of .ihe dd <* 

aijarxst presertabqn of coupon no 4 of ttw now 
ftivestissenienfci ASantiques Sfeav. 

The Board of Direews 


19 


‘Ills 




'k Hy4 


lSN «'.‘ detail; 


5 •;*. UWM 


FINANCIAL TIMES FRIDAY MAY 27 1994 


INTERNATIONAL COMPANY NEWS 


Computer Associates posts da®* India 

record fourth quarter to 


By Louise Kehoe 
In San Francisco 

Computer Associates, one of 
the largest software compa- 
nies, reported record fourth- 
quarter results as sales of its 
programs for mid-range chant- 
server computer systems 


Net income for the quarter 
ended March 31 rose 60 per 
cent to $158-&n. or 93 cents per 
sham, from $99 Jm or 57 emits 
per share. Revenues were 
5633.7m, an increase of 17 per 
cent over $540. lm in the »ui» 
period last year. 

Bandogs were well above 
Wall Street expectations and 
the group’s share price gained 
$3% to trade at $40% at mid- 
day In New York. Costs were 
essentially flat despite a strong 
increase in revenues. 


For the fall year net inrrfmp 
grew 63 per cent to $40L3m or 
$£34 per share, up from 
5345 An or $1.44 per share last 
time. Revenues were jgiftfrn, 
up 17 per cent from $L84hn in 
the prim 12 months. 

Revenues from software for 
mid-range computers more 
than doubled in the fourth 
quarter, said Mr Charles Wang, 
chairman and rhtof executive, 
“fix order to continue bufldfag 
on onr mid-range client server 
foundation, the company 
entered into a ri rffou t iva agree- 
ment to acquire The ASK 
Group, earlier this month, " he 
noted. 

The acquisition is the first 
big purchase by Computer 
Associates in two years, but 
since the company was framed 
in 1976 it has bought more 
than 40 other software compa- 


nies to put together the broad- 
est portfolio of products out- 
side the personal computer sec- 
tor. 

Also during the fourth quar- 
ter the group announced an 
agreement with Electronic 
Data Systems to settle a law- 
suit filed against EDS, aUppmir 
that EDS SdfetiSitoflGf 
products without paying 
proper licensing fees. 

Under the terms of the agree- 
ment -EDS Win jgtnwrtantigp on 
Computer Associates* so ftware 
worldwide, . and will also 
become a reseller of its prod- 
ucts. 

“The CA-EDS agreement was 
the largest stogie software lic- 
ensing transaction ever com- 
pleted,'' said Mr Wang. ' 

“We look forward to the 
prospects for fiscal year 1995 
with- optimism/* 


No split for Philip Morris 


By Richard Tomkins 
hi New York 

Shares in Philip Morris, the US 
food and tobacco group, yester- 
day shed $3% to $50 as the 
company dampened stock 
market hopes that it was 
poised to split its tobacco 
operations from the rest of the 
business. 

The company issued a terse 
statement saying: “It is not 
anticipated that this issue will 
be before the board in the fore- 
seeable future.” ' 

Like other US tobacco manu- 
facturers, Philip Morris has 
been, suffering downward pres- 
sure on its share price because 

NEWS DIGEST 

Burma fund 
planned by 
HE group 

Kerry Securities, the Hong 
Kong-based securities group, is 
to launch an investment fond 
focusing on Burma, Renter 
reports from Hong Kong. 

It hopes to raise US$50m to 
$l0Qm through Myanmar 
(Burma) Fund, a closed-end, 
direct Investment ftmd, accord- 
ing to Mr Richard Neville, 
director of corporate finance. 

A total of 20m shares, tar- 
geted at institutional invertors, 
wQl be Issued initially at $10 
each. The minimum subscrip- 
tion is $ 100 , 000 . The fond wfil 
be launched in the first week 
of July and remain open 
throughout thp mou th , 

It will be domiciled in the 
Channel Islands and a listing 
w31 be sought in Dublin. Kerry 
Investment Management will 
manage the fond. Irrawaddy 
Advisors, a private non-govern- 
mental agency, will be invest- 
ment adviser. 

Tbe fund will investing ini- 
tially in tourism-related pro- 
jects, infrastructure and indus- 
trial parks in Burma. Its key 
strategy would be co-invest- 
ments with domestic entrepre- 


of increasingly intense opposi- 
tion to smoking in the US, 
bringing threats of anti-smok- 
ing legislation and lawsuits 
seeking damages for smoking- 
related diseases. 

Last month Philip Morris 
confirmed a Financial Times 
report that it was considering 
splitting oft its tobacco 
operations from the non- 
tobacco part of its business as 
case of several possible options 
for enhancing the value of its 
stock. 

On Wednesday the compa- 
ny's shares were suspended all 
day as directors met to discuss 
the possibility of a separation. 

The Twng th of fhp or> 


neurs or overseas Myanmar or 
Chinese business groups. 

Kory Financial Services is 
controlled by Malaysian tycoon 
Mr Robert Kook and Malayan 
United indnubj es 

Big jump in volume 
of Korean futures 

Trading volume in financial 
derivatives by banks in South 
Korea more than doubled in 
the first quarter of 1994, Renter 
reports from SeouL . 

The Bank of Korea (BoK) 
said derivatives traded by 
banks dealing in foreign 
exchange totalled $107.lbn 
from January to March, ~ up 
163.1 per cent from $40.7bn a 
year earlier. 

Derivatives are financial con- 
tracts designed to hedge the 
risk to imiier iyiTi g assets from 
fluctuations in interest rates, 
currencies and commodity 
prices. 

Canadian food group 
increases earnings 

Provigo. Canada's second big- 
gest food distributor, lifted 
first-quarter net profits to 
C$l0.3m (US$7.4m), or 10 cents 
a share, from C$3. 5m (two 
cents) a year earlier, Robert 
Gfbbens writes from Montreal. 


unprecedented six-and-a-half 
hours, suggested that the issue 
was keenly debated. 

Afterwards, however, the 
co mpany said the board had 
decided to take no action. 
Instead it appointed Mr Geoff- 
rey Bible, executive vice presi- 
dent for world tobacco, to the 
hoard and promoted him to 
vice chairman for worldwide 
tobacco. 

• Shareholders voted to 
defeat a proposal to spin off 
disparate businesses of US 
Shoe, Renter reports. 

The group's directors 
had recommended sharehold- 
ers to vote against the pro- 
posal 


Its sales were C$1.4bn, 
against CRAZbn. Provigo, for- 
merly known as Uuiva, has 
sold the last of its non-food 
assets. The company is 37 per 
rpnt yid by the Quebec Pen- 
sion Fund manager, the Caisse 
de Depot 

Rhdne-Poulenc 
builds Russian plant 

Rhdne-Poulenc, the French 
drug and chemicals group, is 

h mTfting A clgarrifa filter fibre 

plant in Russia, AP-DJ reports 
from Fails. 

The Russian t tigate t fe mar- 
ket is the fourth-largest in the 
world in volume terms, the 
company said. 

Montreal Exchange 
cuts trading fees 

The Montreal Exchange has 
followed the Toronto Stock 
Tforhamig p in cutting maximum 
transaction fees to C$100 from 
C$UX)0 in an effort to bolster 
Canadian trading of stocks 
interested in Canada and the 
US, Robert Gib bens writes. 

The ME recently suspended 
transaction fees on 10-year 
Government of Canada bond 
futures to compete with the 
larnirh of a gimflar contract QD 
the Chicago Board of Trade. 


for $70m 


Writedowns push 
Cadillac Fairview 
to C$2.7bn loss 


By Naazneen Kantian 
in Bombay 

GFflTn India, a subsidiary of 
Glaxo Holdings of the UK, has 
sold its fondly products divi- 
sion to HJ. Brian .of the US 

for $TOa. 

The division c ont ributes 30 
per cent to the offshoot’s net 
profits and generates annual 
revenues of Rsl^bn ($4741m) 
from products factodfag baby 
foods, health beverages and. 
toiletry products. 

The deal involves all brands, 
a factory at Uttar Pradesh and 
an undertaking by to 
employ the division’s 950 
employees. 

- The sale, which will be put 
to shareholders month , is 
subject to . government 

approval. 

The sale is in line with 
Glaxo’ s strategy to concen- 
trate on its mainline pharma- 
ceutical business- which con- 
tributes around 65 per cant to 
total revenues ofRsfibn. 

Last year, Glaxo Holdings 
invested Bs510m to increase 
its stake in the Indi an com- 
pany from 40 per cent to a 
majority 51 per cent 
Since then steps have been 
tflirwi to align the i"^«« sub- 
sidiary’s businesses more i 
closely with the parent , 
company's. 

In an attempt to overcame 
constraints imposed by drug 
price controls introduced in 
1979 , Glnxn India had diversi- 
fied into products such as 
starch derivatives, soya bean 
oil and liquid glucose by set- 
ting up joint ventures. Last 
year the board decided to 
move out of these loss-making 
b usin ess e s. 

A Glaxo spokesman said 
that while the division has 
contributed to the bottom line, 
Its growth was in question 
with the entry of multina- 
I tional food companies to 

i fadlw- 

Texaco plans to 
sell oilfield in 
Colombia 

Te xaco, t he US oil group, 
co nfir med that it plans to sell 
an oilfield in Colombia, as wdl 
as a pipeline that connects the 
field to a refinery owned by 
the government, Reuter 
reports from New York. 

A Texaco spokesman Bald 
the c omp a n y would keep tts 
downstream operations in Col- 
ombia. “We are not leaving 
the country,’’ he said. 

Industry sources said the oil- 
field produces about 15,000 
barrels per day. 

The spokesman said the 
planned sale was part of a pro- 
gramme of evaluating 
upstream assets. 

He added that the move was 
not the start of a wave of 
divestiture. 

Texaco said that it would 
retain a fttbrication/bleuding 
operation in Colombia. 


By Be rnar d Simon in Toronto 

The main operating subsidiary 
of Cadillac Fairview, the 
Toronto-based property devel- 
oper which is in the midst of a 
debt-restructuring, suffered a 
C$a.7ihn ($L96tm) toss to tts 
latest fiscal year. 

The loss, tbe biggest ever 
reported by a private-sector 
company in Canada, was 
i largely due to hefty write- 
, downs of realestata assets to 
reflect the lower of their cost 
or market value. 

As a result of the write- 
downs other nonrecurring 
provisions, the book value of 
tbe subsidiary's assets tumbled 
to C$ 2 . 8 bni last October 31, 
from Cj5.3hn a year earlier. 

Cadillac Fairview (CF) is a 
private company owned by 
about 40 institutional investors 
in the US and Canada. Its 73 
properties include Toronto's 
landmark Eaton Centre. 

The parent company does 
not publish finawriai results, 
but Its Tnain subsidiary, Cad- 
illac Fairview Corporation Ltd. 
has issued publicly-traded debt 
securities. 

CFCL’s operating loss was 
C$l95Jfcn in the 12 mninthfl to 
October 31. up from a C$HS.7m 
toss a year earlier. 

CPs capital-restructuring 


plan covers debt of about 
C$&3bn. 

The company is seeking to 
reduce its debt, raise new 
equity and sell some assets. It 
has segregated its various 
p rope r ties, servicing tbe debt 
only of those with adequate 
cashflows. 

Acc ordin g to local reports, 
prospective providers of equity 

the Rakhmann famil y, 
former owners of Olympia & 
York Developments; Mr Li 
Hashing, the Hong Kong 
tycoon; and US financier Mr 

A CF spokesman said yester- 
day that the ownership of the 
company was to a state afflux, 
with several existing share- 
holders to the process of sell- 
ing their holdings. He declined 
to give details. 

Mr Dong Sawchuk, analyst 
at Damintan Baud Rating Ser- 
vice to Toronto, said CF*a debt- 
restructuring was likely to be 
simpler and l ess acrimonious 
than the plan negotiated two 
years ago by O&Y. CF has 
fewer subsidiaries, fewer tiers 
of creditors and fewer cross- i 
default provisions. 

However, Mr Sawchuk said j 
that bank lenders, led by 

Tnr« n trv.n nnifm«n Rwntr, *S>re « { 

wild card”. The banks bold the j 
bulk of CP’s unsecured debt 


Warm reception for 
Spanish utility offer 


By Antonia Sharpe 

Ap plica ti on s for the dppuytic 
retail tranche of the global 
share offer in the big 

Spanish electrical utility, 
readied a level of 2% times toe 
number of shares available, 
according to initial estimates 
from advisers to the issue. 

A total of 22 .&n shares in 
Endesa, representing 8.7 per 
cent of its total equity, is being 
sold by Endesa's chirf share- 
holder, Grupo Teneo, which is 
part of DR, the pubhoeector 
corporation. Prior to tbe offer- 
ing, about 24 per cent of End- 
esa’s shares were publicly held. 

The size of the retail tranche 
bad already been increased by 
23 per cent earlier this week to 
61m shares in the light of the 
strong interest from retail 
investors. Of the 500,000 retail 
investors who had pre-re gis- 
teredto buy the shares, 200,000 


investors subscribed to toe 
offer, to line with forecasts. 

The strength of Spanish 
retail demand fulfilled End- 
esa’B desire to widen tts share- 
holder base, which at present 
is dominated by New-York 
based institutions. It also 
fanned speculation that Teneo 
might exercise toe so-called 
“claw-back, option” to bring 
additional shares from the 
international and US tranches 
to the Spanish retail 
tranche. Currently, 5.4m 
shares to the form of American 
depositary shares are ear- 
marked for the US and 
7.5m shares for international 
investors. 

Endesa’s share price dosed 
yesterday at Pta6,630, up PtaSO. 
The subscription period in 
Spain ended yesterday and pri- 
cing of the issue is expected to 
take place next week with trad- 
ing starting on the next day. 


Bank of Montreal up 9% 


By Bernard Simon 

Bank of Montreal opened the 
second-quarter reporting sea- 
son of Canada’s “big six” 
banks by posting a 9 per cent 
rise to earnings. 

The improvement was attri- 
buted largely to higher vol- 
umes and a drop in loan-loss 
provisions. However, it was 


partly offset by s Brn me r mar- 
gins, especially in money mar- 
ket operations, and a 6 per cent 
rise to non-interest expenses. 

Net income grew to C$I88m 
(US$136^m), or 69 emits a 
share, to the three months to 
April 30, from C$I73m, or 63 
cents, a year earlier. 

Loan-loss provisions fell to 
C$I57m from CH6taL 


Notice of Earty Redemption 

Bell Resources Financial Services N.V. 

fthe'IssueO 

U.S. $200^300,000 

5% per cent Guaranteed Convertible 
Subordinated Bonds due 2002 

(tha “Bonds! 

Unconditionally and irrevocably guaranteed on a subordinated 
basis by, wffli noiKtetechabie sutxxdratod convaraon bonds 

(the ‘Conversion Bonds’) 
issued by, and converttote into 
Odnaiy Shares of AS0.50 each erf 
Australian Consolidated Investments Limited 

AON. OOB 870 924 
(praMrejefynamadBeB Resources Lid) 

to and in accordant* with Condition 6(B) ot iho Bonds, tha issuer »ri8 on June 30. 
®W (me *B*Oemptbn DattT) rtttoam «B of m* Bond* then ouotandwg w the* 
principal amouni (the ■ fl adampMon meal, togatftar m aach ana wtm mmi 
flcereM to tire Redemption Dmb- 

eonOmldas Krt» wish » accapt redemption of the Bonds by toe tosuar at toa 
Redemption Price (topattiar wttn t» interest accrued to too Redemption Dan) 
rnhor than oxensse their rights or convention should surrender the Bonds (Heavier 
wttx aQ unmanned Coupons) for payment In accordance wftti condition 7 oMM 
Bonds. The tecavafoeot any mtufngijreTi&lured Coupon ariRM deducted from 8w 
aum doe for payment The amount so deducted wiS be pudagmtm aurmnder o> toa 
relevant Coupon at any timeatar such deduction end prior to tfteejfMy ot ten yean 
horn the Relevant Data (ee defined in CoMWon 8 of me Bondi) In reaped of Such 
Coupon. K sty Bond is presented lor redemption at the apeeffied office at the 
Paying Agent In New York Cdy. principal only unS be 'paid and any prwitium and 
accrued Interest «<* be paid as provided in me Conditions ol the Bonds. 

Banda and Coupons vtiB become void unless presented tor payment wttMn periods 
ol Wond5 years respectively from their respective Relevant Mae. 

The right to oonven the CcxvMraton Bonos mb Ontinaiy Shares cti *50.50 
each o > AustmJton ConsoCdatad Investments limited sha» l ermt nai e at me ana 
of Vw eigMi day prior to the Redemption Date in accordance with CoMtoon 5(8) 
of the Bonds. 

PRINCIPAL PAYING AND CONVERSION AGENT 
The Chose Manhattan Bank, dA. 

WboJgate House. Coleman Street, London EC2P2HD 

PAYING AND CONVERSION AGENTS 
Chese Manhattan Bank Chase Manhattan Bank 

Luxembourg SJL (Switzerland) 

SRuePlaetis 63 Hue du RhOna 

L-2338 Liutemboiug-Grund CH-1204 Geneva 

The Chase Manhattan Bank, KA. Banqtie Bnn r a M a a 

3rd Floor Lambert S-A. 

4 Chase Metrotach Canter 24 Avenue Mamix 

Brooklyn, New York NY 12245 B-1050 Brussels 


The Chase Manhattan Bank, NJL 
for end on behalf of 

Ball Resources Financial Services N.V. 
May 27. 199* 


CHASE 


Notice of Annual General Meeting 

Schroder Korea Fund pic 

NOTICE ahmbygtverttfttt toe Annual General Meeting o< Schrader Korea Fund pfc 
wd be haki a ti.ao ejn. on Tbeadar, 21 June 1994 at 33 Gutter Lane. London EC2V 
BAS, to condder ana. u ttougra O. pan the toUpitfro resolutions, whch wtfi be 
proposed as OrWnary RasototianB:- 

t. That the Report ol the Directors end the Accounts be adopted. 

2 . ThatnoFlnstOnridsndbedaciared. 

3. That M- Jeremy AIS be rs^toctodasa Director ai the Company. 

4. That I* Matthau F. Dobbs be rareMfodasa Director of the Campari* 

5. That CaopweS-Lybrend be re-eppofotad as Aurora onheOwpeny 

6. That the Board be authorised to agree too Autoon' remuneration. 


Registered OfBco: 

Senator House- By Order of ttw Board 

85 Queen Victoria Street Schroder tt w aa n na n t Managsma n t Untitsd 

London EC4V4EJ Seaway 

* 27 May 1994 

Note s 

L A membarof the Company enttded to attend and voteanhaMmong mey appoint 
a proxy or prestos to attend and on a pot to vole In Ns stead. A prosy need not 
be a menfcer of the Company. Forms appointing prestos must be iotfced mth the 
Conoenya Ragbtnt not toes than 48 bouts before the ume appointed tor the 
Meeting. The complet i on and return of a form of prosy Ml not praekide a holder 
entitiad to retend and vote to person at the Meeting from doing so B lte or she tMshea 
2. In eccordanos wflh the req u irement s oiTho Stack Exchanpa. London, a sta»- 
mem ol al transactions ol each Director and ol Ms tamly Interests to the shares pi 
the Company wffl be avsflabfo tor fanpecMtnai the reMuradtflBco of the Comprety 
at Sensatr House. 85 Ckisen Victoria SbMt, London EC4V 4EJ, during normal 
business hows bom the data ol thto notice to ttw conclusion ol the Moating. None 
ol ttw Dlrectnis has a comma of eerelce eHtfi the Company. 


i&na 


O 130+ software applcadons O 

O RT DATA FROM *10 A DAY O 
O Signs] SOFTWARE GUIDE O 

Catt London Gt 44 + (0) 71 231 3558 
tor yow guide end Signal price BsL 


Petroleum A r gus Oil Market Guctes 

Petroleum Arqus 

CALL • 




ECU Tsnrenvast PLC 
aPC hsebamW ace 

UM|$lVi| 

London SWnttHL 

Tab +T134S 0008 

Fmc +71338 ean 


FerateBent MMoa of toe Romm Rderaiwii 
to tlie IntenatitHud Oiganizstioits in Vhsna 



PREMABERG Iuditstrieanfagea 

cordially invites you to participate in the first UNIDO 
investment forum since the presidential elections in tbe 
republics of the Russian Federation. Ike conference takes 
place in Vienna 

2 9-30 JUNE, UNIDO HEADQUARTERS, VIENNA 

Tbe aim of tbe Forum will be to discuss investment 
opportunities in the Republics Bashkortostan, Tatarstan, 
Kalmykia and Komi and in tbe Regions Volgograd, Saratov 
and Penn. Additional regions wfll be present on a seperate 
stand. The posstbflity of presenting your range of products 
wffl be given by the attendence of the Presidents of these 
Republics as well as a considerable number of russian 
tfirectors of plants and associations, winch wiB also be present 
upon invitation of UNIDO- For questions of Investment 
Guarantees aru ^ Finance, representatives of World Bank and 
EBRD are here to help. The projects are in the sectors: 

OIL & GAS 

HEAVY & CHEMICAL INDUSTRY 
CONSTRUCTION 

: BANKING & COMMUNICATIONS 
WOOD INDUSTRY 

AGRICULTURE & FOOD PROCESSING 

Bor farther information and fist of projects please call 
UNIDO, Vienna ++43-1-21131-3999 or 21131-3164 / Fax 
+^43-1-230-8260 or general sponsor PREMAG, Vienna 
++43-1-2929366/ Fax ++43-1-2929368. 

We took forward to welcoming yon personally. 


TW wmtol tod for d* wriw niwmr 


;:Sfl D O'J T 
C RACK 
U N D E R 
. IMPRESS',: RE 


Market-Eye 

London stock bxchamo* 








20 


FINANCIAL TIMES FRIDAY MAY 27 J1»4 



CHINA MERCHANTS CHINA DIRECT INVESTMENTS LIMITED 
ANNOUNCEMENT OF 1993 RESULTS 

The Board of Directors b> pleased to announce the audited results far the pennd from l?th April. 1993 Ktae of 
incarpararianl to } 1 tt December. 1993 us follows: 

Ate l?S 

Grass revenue . 

Interest income l oi.aJi 

Gains on sak 1 of Jis tvd inveJmtms 

I.WjM-i 
I t l^o.nOCi l 

J 0015 


Profir before taxation 
Taxation 

Profit annbtaahk- io du reholders 
Eammgs per share 


.Votes- 

1. 


Hons Kong profits tax has Ixvn provided an net taxable earnings at 17.5%. 

Na deferred taxation has hem provided as there are no significant liming differences arising between 
profits as computed for taxation purposes and profits as stated in the financial statements. 

i Tlie calculation of earnings per share is Insect on earnings for the period of LSSI.-w5.Ot4 and 
93.240.000 ordinary shares in issue during the period. 

Vo figure for fully diluted earnings per share is shown as the exercise of the subscription right- 
attached to the warrants in issue- during the period would not have a diluting effect on the 1993 
earnings per dure. 

RESULTS 

The net profit of die Company for the period ended 31st Decemlxrr. 1993 amounted to L'SSl. *-13.0+4. 
representing an earnings per share of CKSOjOI-*. 

As at 31st December, 1993. the net asset value per share of the Company amounted to L'SSl .019. This 
reptesents an increase of approximately 2% as compared wirh (he net asset value of US5 1.000 at 22nd July. 
1993 immediately after the initial listing of the Company's shares. 

PROSPECTS 

The tx-WKnnk- policy of China continues to be favourable to a sustained growth in the country* GNP. 
attracting significant inflows of capital and foreign investors including the Company. The economic jusfenrv 
program commenced last year and tlie unification of China's dual cxdiangc rates effective 1st January. 199* 
have not hampered invetmenu by the Company. Rather the Company has been luster- positioned to -curve 
and secure investment opportunities. The progress of investments smeu January 1994 has become increusingly 
rewaitfing. The Imwunenr Manager remains confident, subject lu no unfan seen nmim>uiHri. that the 
Company's assets will be substantially invested lw the end or 1994. 

DIVIDENDS 

The Director* do not recommend the payment of a dividend for the period ended 31st December. 1993. 
PURCHASE, SALE OR REDEMPTION OF SECURITIES 

During tlie period ended 31st December. 1993. the Company neither purchased, sold nor redeemed any erf as 
own listed securities. 

By Order of the Board 
Elizabeth Ka-Yce Kan 

Stmitin- 

Hong Kong, 19th May, 1994 


CENTRA INC 

(formerly Royal Trastro limbed) 

No(keofMilnnt»ry Redemption on June 30, 1994 to holders of 
ll 3 A3t Debentures dne 1994 
9’A% Debentures doc 1995 
Bonds 1986-1995 
Flooring Rate Dcbentores doe 1995 
(each a “Series” JuadcoDeoively the "Senta Debt”) 

Pursuant io foe provisoe s of each Scries of Senior Debt, as amended by the Plan of Arra n g em e nt of Gcnna Inc (the "CacymyT 
effective Sept em ber 1. 1993 (the 'A* 0 of A n aqgcracnt*), the Company may, at to option, redeem the Senior Defat, in whole or in 
part, on any crfMarcfaJl.Jtmc 30. Sqjttmftcr 30 and December 31 in each year The aggre^ principal amount of Senior Debt to be 
redeemed shall be pnraud among each Series. 

NOTICE IS HEREBY GIVEN that pursuant ro the ptovisioiis of each Series of Senior Debt, as amended by the Plan of Arrangement, 
the Company wffl redeem Senior Debt in the aggregate principal amouni of CthL5 1 50,000,000 erf an aggregate principal amount of 
CdtuS4SL056544 of Satior Debt outsantfing on June 30, 1994 (the "Ifchtntary Redemption Dae"). The redemption price in rc^tcia 
of each Debenture or Bond, as the case may be; shall be equal to the principal amount thereof to be redeemed, together with accrued 
and anpakl tntereg on the principal atnoota to be redee m ed to bin cadutfing foe Mafamaiy Redemption Dag, expr esse d in the 
relevant currency of the Scries. 

The Mowing table provides the detafls of die vofauary redemption of each Scries of Senior Debt 

Aggcgattftfndpil 
Amount of each 
Series to be 

Scries 


Original 

Notional 

Redeemed 

Current Face 

Amount 

March 31, 1994 

Amount 

£1,000 

£165-69 

£83431 

UEUOOD 

US$16569 

US$834.31 

SFrf.000 

SFt828.47 

Sft4.I71.53 

CdnSl.000 

CdnS 165-69 

Cdn-83431 


Redemption Price in 

respect of each Series 
£269.68 fin respect of principal) 
pto £26.93 fin respect of interest) 
in respect of each £834.31 Debenture 
USS269.68 fin respect of principal) 
plus US$1439 Cm tespeer of interest) 
in respea of each US$83431 Debenture 
SM 348.39 On respea of principal) 
plus Sft44.44 (fo respea of interest} 
in respect of each SH 171-53 Bond 
CdnS15.088.596 CdnS269 68 (in respect af principal) 

io respect of each Cda$83431 Ddxnoit 


June 30. 1994 
£23332,714 

US$44,238347 

SFi26.173.598 


llfo* 

Ddxnnncsdue 1994 
9k« 

Debentures due 1995 
5*4% 

Bonds 1986-1995 

Homing Rate 
Debentures due 1995 

Pursuant to the Plan of Anaagemeni, holders of tfae ll4w» Debentures due 1994 and the Debentures due 1995 were required 

to exchange ibeir definitive certificates representing such Senior Debt for an ioteresr in a global debenture representing the relevant 
Saks, such interest to be bdd through an account wait Enrodcar or Ccdd. The Company will noire payment of the aggregate 
redemption amount in respea af each such Safes no the bolder of the global debenture for dm Series and the holders of interests 
therein wffl look to Eurockar or Gedd for thdr Stare of the relevant payment 

Payment on redemption of die 5'A% Bonds 1986-1995 will be made against pre s en tation of the definitive certificates repre s e ntin g 
such Bomb at any office in Switzerland of the folbnriqg banks 

Ufoxi&mk of Switzerland, Credit Safest, Swiss Bark Corporation, Boyd Thrst Bunk (Swtaedand), Swiss ttoflahank, Efenk Leu Ltd, 
Membas of the Groupama des Bnqukxs Privcs Geociuta, A. Strain & Ge, Members of the Gtoupement de Banquets Pelves 
ZuricbotJ, Swiss Cmumalbmks, Bank Cantiade Lid, Bank Hofiram Ltd, ABN AMRO Bank (Sdrotift Banquc Paribas (Suisse) SA, 
Gtfoank (SwftzedandX Commerzbank (Scfawch) MS, DaHdd Kaqgyo Book (Sdtwea) AG, Goans & Co. AG, The Boyal Bank of 
Canada (Sussex 

fttjmctn on tnkmpttot of the Roaring Rare Debentures due 1995 wffl be made against presentation of the definitive certificates 
re prese n ti n g such Debentures at ay of the principalofflcesofTheR-MTaistCompanyhi'lbnmtti.Mootital, Vtocouveraod Calgary 
Interest ff3l cease to accrue on ah principal amotatpsti^eam redemption fiom and after the Vbhmiary Bedrm ptl on Date. 

May 27. 1994 GENTRAINC 

Tbranm, Canada 


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INTERNATIONAL COMPANIES AND FINANCE 


Lawsuits make US groups publicity-shy 

Patrick Harverson examines the background to a trend in corporate self-defence 


U S companies are 
becoming increasingly 
reluctant to keep 
Investors fully informed of 
their prospects because of the 
threat of costly legal action. 

The threat comes in the 
shape of class-action securities 
fraud lawsuits filed by share- 
holders aggrieved that the 
value of their stock fell when 
information proved inaccurate, 
and the increasing number of 
these suits has caught the eye 
of the regulators. 

A study released last week 
by the American Stock 
Exchange found that more 
than 75 per cent of the com- 
panies surveyed said they had 
been forced to curtail the 
amount of information they 
provided to investors because 
of concern over lawsuits. 

Companies which cut back 
on information to investors 
often do so following legal 
advice. Mr Bob Profusek, head 
of the corporate department at 
the law firm of Jones, Day. 
Reavis & Pogue, says: “Most 
lawyers now discourage com- 
panies from making anything 
like traditional projections.** 
Fighting class -action law- 
suits can also cost companies a 
lot of money. 

The National Economic 
Research Association says the 
average cost of settling such 
lawsuits has risen in the past 
three years from S5.8m to 
S7.4m. 

Securities Class Action Alert, 
a New Jersey-based newsletter, 
recently estimated that compa- 
nies paid S1.55bn last year to 
settle shareholder lawsuits, 
compared with just S324m in 
1988. 

Although any company can 
be the target of a shareholder 
lawsuit, high-tech and biotech- 
nology companies are particu- 
lar vulnerable because they 
need to keep investors con- 
stantly updated on technologi- 
cal development, patents and 
product innovations. 


In addition, young, smaller 
companies are especially at 
risk, because their shares are 
more likely to fall sharply on 
disappointing financial news, 
and because they are more 
likely to settle rather than 
fight lawsuits. 

In California, where there is 
a concentration of high-tech 
industry, shareholder lawsuits 
filed under Section 106-5 of the 
Securities and Exchange Act - 
relating to false or misleading 
information - are particularly 
common. 

According to the Coalition to 
Eliminate Abusive Securities 
Suits (CEASSX a business pres- 
sure group. Californian compa- 
nies paid out a total of 8502m 
between 1990 and 1993 to settle 
10b-5 lawsuits. 

Public companies are not the 
only ones affected by such 
suits. Take the case of Mr Bob 
Gilbertson, chief executive of 
CMX Systems, a small but fast- 
growing Connecticut high-tech 
company eager to raise funds 
on the public markets. 

Mr Gilbertson says he was 
recently advised by investment 
him long firms that if he took 
the firm public, he would have 
to allocate at least S2m of the 
notation proceeds to cover 
the almost certain possibility 
of having to settle a share- 
holder lawsuit within 12 to 18 
months. 

He says: “The investment 
bankers effectively told us to 
write off to pay the law- 
yers to go away.** Mr Gilbert- 
son decided against taking the 
company public. 

M any chief executives 
on the wrong end of 
dass-action lawsuits 
do not blame the shareholders 
so much as the lawyers, who 
know they can force companies 
to settle quickly. 

In the ASE study, a clear 
majority of the 17 per cent of 
the companies which said they 
had been sued during the past 



Toly KM 


Capitol Hill: Seeking ways to give companies more protection 


five years on disclosure issues 
settled out of court rather than 
fight the suit. 

Ms Lynn Zempel, a spokes- 
woman for CEASS, says: ‘’Com- 
panies say that most of the 
time their lawyers tell them its 
cheaper to settle than fight, 
and [the shareholders’] lawyers 
know that" 

The financial incentive for 
the lawyers is considerable: the 
ASE survey found that nation- 
ally. the plaintiffs lawyers 
receive 30 cents for every dol- 
lar sought In these lawsuits, 
compared with just six cents 
for every dollar the sharehold- 
ers themselves receive. 

But the growing instances of 
shareholder lawsuits has 
attracted the attention of regu- 
lators and legislators. 

The Securities and Exchange 


Commission, concerned that 
companies may be shying 
away from fuller disclosure 
because of the lawsuits, is con- 
sidering bolstering the “safe 
harbour - provirion of US secu- 
rities law. 

The provision protects com- 
panies from fraud claims 
unless the information they 
release is “without a reason- 
able basis or was disclosed 
other than in good faith”. 

In recent years, however, 
companies claim the safe har- 
bour provision has not been 
working effectively. Its weak- 
ness is that companies usually 
have to go through an expen- 
sive and tim&consumlng pre- 
trial process before a judge 
rules on whether the informa- 
tion is protected by safe har- 
bour. Consequently, companies 


can rack up huge legal fees 
even If the lawsuits are ulti- 
mately dismissed. 

While the SEC dom not want 
to deter shareholders from 
seeking legal redrew it they 
genuinely believe they have 

been deceived, it is keen to 
ensure the system is quick to 
weed out meritless cases. 

Ms Linda Quinn, director of 
the SEC*s corporation finance 
division, says: "We’re explor- 
ing what can be dose so that 
the type of Information 
intended to be covered by safe 
harbour la covered, and that 
the safe harbour works to the 
benefit of compardefi. 

"Right now, what they will 
argue is flat even if the Infor- 
mation is ultimately decided to 
be within the safe harbour 
ffstwtotonL you have to litigate 
through an entire case to get 
there. The question is: are 
there ways to make the rule 
work so that it could be 
derided earlier in the case?” 

While the SEC reviews the 
safe harbour provision, legisla- 
tors in Washington DC are also 
seeking ways to gtvo compa- 
nies more protection. Bills 
which would give companies 
greater help in their defences 
against frivolous shareholder 
lawsuits have been tabled in 
the Senate and the House of 
Representatives. 

T he bills include mea- 
sures to allow judges to 
wefcB quicker decisions 
on the merits of individual 
cases, to halt the use of "pro- 
fessional plaintiffs” with only 
nominal shareholdings and to 
cut attorney's fees. 

Introducing any legislation 
that protects corporate defen- 
dants from lawyers is always 
going to be an uphiU task in 
the US, however, and securi- 
ties lawyers have vowed to 
fi8bt the Dodd bill They claim 
shareholders need all the pro- 
tection they can get from 
deceptive companies. 


Indian paper backlog almost cleared 


By Stefan WagstyJ 
ki New Delhi and Naazneen 
Kamnali in Bombay 

Banks handling the stock 
market paperwork for foreign 
portfolio investors in India 
have mostly cleared the back- 
log which threatened to over- 
whelm the country's primitive 
stock settlement and transfer 
system. 

However, the banks, which 
provide custodial services to 
overseas fund managers, are 
keeping a tight check on the 
business they handle. Existing 
clients are being told to limit 
purchases; new clients are 
being asked to wait until pro- 
cessing capacity is increased 
over the next few months. 

The paperwork problems 
stem froim woefully outmoded 
procedures geared mainly 
toward iwininns of indiv iduals 
buying as few as io or 100 
shares, not institutions pur- 
charing lots of 100,000. A single 


large purchase can generate a 
trunk-full of share certificates 
and transfer forms which must 
be processed manually. 

Hongkong and Shanghai 
Banking Corporation, the big- 
gest prorider of custodial ser- 
vices for foreign cl ie nts , says 
its backlog was cleared at the 
mid of March; clients who were 
asked to stop trading are now 
permitted to resume with lim- 
ited amounts. New clients are 
not yet being accepted. 

A foreign fund manager 
says: “The custodial problem is 
the single largest speed- 
breaker on foreign institu- 
tional investment on the 
Indian stock market today. At 
the end of 1993, custodians 
imposed limits on clients. 
Today, they that they 
have licked the problem, hut 
there has been no public 
announcement to this effect 
pnri the limit still exists." 

The fund manager estimates 
the limit to be about US$3m a 


month per client Given that 
specialised India funds have 
raised USSlOOm and more, this 
is very tight although fund 
managers do have the option of 
investing in Indian company 
euro-issues. 

Mr Samir Arora, vice-presi- 
dent of the Indian affiliate of 
the Alliance Capital fund man- 
agement group, says: “We have 
earmarked 5 per cent of our 
USJlbn Global Privatisation 
Fund for India. We could, if 
allowed to, easily invest 
USflOQm in the next few 
weeks, but we cannot" 

Partly because of these diffi- 
culties, Indian foreign portfolio 
investment has slowed in 
recent months, though fund 
managers have also been influ- 
enced by the worldwide correc- 
tion in stock markets. 

Net investments by foreign 
institutions fell from $398m in 
January to $163m in April- 
Total cumulative investment 
at the end of April was $L77bn 


- up from almost nothing a 
year ago. 

Hongkong Bank, Citibank 
and Standard Chartered Bank 
are increasing custody staff to 
boost capacity. Stock Holding 
Corporation of India, a com- 
pany created by Indian finan- 
cial institutions, could take on 
more business but its capital is 
too small to satisfy the secu- 
rity needs of most foreign fund 
managers. 

State Bank of India and 
ICICI . two leading institutions, 
are also establishing custodial 
services, but foreign fund man- 
agers are reluctant to entrust 
the work to Indian banks they 
scarcely know. 

The extra capacity will per- 
mit only steady increases in 
trading volumes and faster 
growth will require a radical 
overhaul of the trading system. 
The goal is a paper-less trading 
system, which is under devel- 
opment by Indian hanks but 
still far from complete. 


Thai business daily planned 


By wnfam Barnes 
In Bangkok 

Singapore Press Holdings, the 
owner of the Straits Times, is 
Unking up with a Thai partner 
to produce a regional business 
newspaper called Business 
Day, which it plans to launch 
In Bangkok next January. 

The paper's editor and man- 
aging director, Mr Chatchai 
Yenbamroong, said: "We 
expect 70 per cent of our read- 
ers to be local Thai business- 
men are not well equipped 
with knowledge of regional 


matters; they are at a disad- 
vantage to their counterparts 
in Hong Krmg and Singapore.” 

The Thai Premier Publishing 
Group will hold 51 per cent of 
the paper, Singapore Press 
Holdings 35 per cent and 
United Cinema Holding and 
Management, a subsidiary of 
the Crown Property Bureau. 11 
per cent The Population and 
Community Development 
Association, an independent 
group run by the anti-Aids 
campaigner Mr Mechai Vira- 
vaidya, will take a 3 pa- cart 
stake. 


The paper, which is in the 
process of recruiting 60 report- 
ers, mostly Thai, and about 10 
foreign subeditors, will attempt 
to keep costs low by contract- 
ing out printing. 

The falling price of desktop 
publishing equipment will 
allow the company to spend 
just BtlOm (50.4m) in the 
start-up period. The 16 to 20- 
page product, with a target cir- 
culation of 15,000 to 20,000, 
should hit Thailand, Hong- 
kong, Singapore, Kuala Lum- 
pur, Jakarta, Ho Gtn Minh City 
and Manila next January. 


Swiss mouse 
maker recovers 

Logitech, the world market 
leader in tracking devices 
(mice) for computers, contin- 
ued its strong recovery in the 
year ended March, writes Ian 
Rodger from Zorich. 

Net income more than tre- 
bled to SFr27.8m ft&an), but 
was inflated by a SFrl5.9m 
gain on the sale of shares and 
options in a Canadian affiliate 
and moderated by an excep- 
tional SFr6m depreciation 
charge and SFr2.6m in 
restructuring charges. 

Revenues jumped 17.1 per 
cent to SFr484.2m. 



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FINANCIAL TIMES FRIDAY MAY 27 1994 


21 



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INTERNATIONAL COMPANIES AND FINANCE 


Bad debt crisis worsens at Japanese banks 

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By WflKam Dawkins 
En Tokyo 

Bad loans overshadowing 
Japan’s 11 leading commercial 
banks are growing fester than 
they can be written off on the 
evidence of the industry's 
annual results, published yes- 
terday. 

The 11, which provide just 
under one third of lending to 
Japan’s sluggish economy, 
took drastic action to reduce 
their non-performing loans last 
year. - 

But the signs are that it was 
not enough to Improve their 

hatanry sheets. 

They wrote off Y2,480bn 
($24bn) of bad loans in the 12 
months to March, two-and-a- 
half tunes more than the previ- 
ous year. On top of this, the 
commercial provi- 

sions worth Y2J.02bn, a 44 per 
cent rise on last year's provi- 
sions of Yl.459bn, and sold 
Yi,325bn of bad debts to the 
Co-Operative Credit Purchas- 
Lttg Company, a jointly-owned 
debt buying organisation set 
up in January last year. As a 
result of these hefty charges, 
pre-tax profits fell for the fifth 
year running, by an average of 
41.6 per cent 

This collective attempt to 
clean up their the balance 
sheets is a belated response to 
the central bank's camp ai g n to 
persuade the industry to break 


with its tradition of sitting on 
bad debts indefinitely. 

Yet, despite their efforts, the 
commercial banks’ published 
bad debts rose both in absolute 
terms - from Y8,435bn last 
year to Y8»848bn by the end of 
March - and as a proportion of 
total landing - from 3.1 per 
cent to 34J per cent over the 
same period. 

The published bad debt total 
is down 3 per cent from the 
balance half-way through the 
year, at the end of September, 
prompting bank officials to 
suggest that the worst is over. 
But as in previous years, the 
published figures understate 
the size of the problem, 
because they only Include 
loans to bankrupt 
or loans where no interest has 
been received for six months. 
They exclude restructured 
loans, where interest has been 
shaved to almost nfl to keep a 
weak customer alive, or loans 
by non-bank affiliates for 
which the parents are responsi- 
ble. 

Together, these could nearly 
double the published figure 
according to the most pess- 
imistic independent est- 
imates. 

The disturbing message 
behind this is that Japan's 
deep recession is adding a new 
tier of debt problems, loans to 
ailing small companies, on top 
of the dud property-backed 


loans inherited from the post- 
. bubble collapse in property 
prices. 

Equally worrying, the com- 
mercial banks covered between 
one third and half of those 
write-offs by selling and repur- 
chasing securities, so as to 
record a capital gain. This is 
bound to increase their depen- 


tinued.. progress in his cam- 
paign to persuade the industry 
to break with its "convoy” tra- 
dition, whereby banks reported 
similar results in an attempt to 
buoy pubho confidence. 

Mits ub ishi Bank, the stron- 
gest, revealed non-performing 
loans worth just L84 per cent 
of total lending, while Hok- 


Japanese commerc i al banks: Year to March 1994 


Bank 

Not profit 
OH*! 

Change 

Business Change 
profit (Ybn) (%) 

Sakura 

345 

-235 

207.4 

-235 

Fuji 

26.7 

-13.9 

362.1 

+15.6 

DKB 

32A 

-38:9 . 

2355 

•0.8 

Sumitomo 

335 

+137.8 

302.3 

-11.5 

Mitsubishi 

29 A 

-37.4 

283.5 

-15.7 

Seme 

S2A 

-22-1 

358.0 

-3J 

Toted 

20.7 

-05 

1802 

-3^4 

AsaN 

20.7 

-1-3 

165.4 

+13.1 

Daiwa 

ta.a 

-22.8 

70J2 

-2J3 

Hokkaido Takusboku 

-4.1 

-4&9 

32.0 

-17.7 

Tokyo 

50.4 

+17.0 

185.1 

-8.6 


their institutions' poor earn- 
ings. 

Most predicted flat profits In 
the coming year, though again 
there were significant differ- 
ences between banks. Mitsubi- 
shi, which surprised the mar- 
ket with a 15.7 per cent decline 
In its core business (or operat- 
ing) profits - far below than 
the average 55 per cent decline 
- said it did not expect profits 
to rise this year. Sumitomo, 
with business profits down 115 
per cent, forecast stable eam- 


Scrrce : Caapmvnfxxta 


dence on low-yielding assets, 
warns Ms Alicia Ogawa, equi- 
ties analyst at Salomon 
Brothers Asia. 

Within this, however, 
the commercial banks yester- 
day wide differ- 

ences in their state of health 
and the aggressiveness with 
which they are tackling their 
loans. 

This Is a sign that Mr 
Yasushi Mleno, governor of the 
Ranlr of Japan iS walring COH- 


kaido Takusboku, declared 655 
per cent and Sakura Bank 4.03 
per cent 

Tbe impression the banks 
aimed to give yesterday is that 
they have got to grips with, 
their weaknesses and that 
there Is light at the end of the 
tunneL In a symbolic act of 
penitence, board directors of 
three banks, Dai-Ichi Kangyo 
Bank, Hokkaido Takusboku 
and Sumitomo, are to forego 
bonuses this year because of 


Sakura, by contrast, forecast 
a recovery from its 235 per 
cent profits decline, to the baf- 
flement of several analysts, 
just can't see where it's going 
to come from,” said Mr Brian 
Waterhouse, banking analyst 
at James Capel in Tokyo. 

Generally, the industry out- 
look is tough. Demand for 
loans remains very weak, as 
shown by a 15 per cent in total 
lending last year. Anecdotal 
evidence suggests that the 
market for creditworthy cus- 
tomers is aggressive. 

Salomon's Ms Ogawa esti- 
mates that 17 per cent of the 
commercial banks’ liabilities 
are linked to the record low 
official discount rate and pay 
less than 1 per cent. If the cen- 
tral bank succumbs to pressure 
to cut the official rate, this wi H 
hardly help banks' profit mar- 
gins. 


Faint glimmer of hope in electricals 


By Mfehfyo Nakamotn 
In Tokyo 

Japan's integrated electrical 
companies, with products rang- 
ing from heavy electrical 
machinery to semiconductors 
and audio-visual goods, have 
suffered badly in the depres- 
sion of recent years. Last year 
some were forced to report 
their third or fourth year of 
falling profits. 

But a glimmer of hope has 
appeared as they reported still 
weak but, in some areas, 
improving results for the year 
to last March. 

Mixed fortunes have also 
been evident along sector as 
well as company lines. 

What saved many and 
enabled some to report better' 
results, was strong demand in 
the US for computers - which 
in turn supported buoyant 
sales of semiconductors - firm 
. sales of components in south- 
east Asia, demand from domes- 
tic public utilities and the com- 
panies’ own cost-cutting 
efforts. 

With economic slump dam- 
aging core business, compa- 
nies’ overseas earnings have 
been battered by strong yen. 
Every Yl rise of the Japanese 
currency's value lops off 
Yl-fibn off sales at NEC, the 
company said. 

Persistent weakness in 
domestic private capital spend- 
ing, slow consumer demand 
and fierce price competition 
put a damper on sales of many 
mainline products. 

In computers, Fujitsu and 
NEC, for example, suffered 
decreases in expensive items, 
such as mainfny njfi f 1 and mini- 
computers. 

Fujitsu, which is Japan’s 


Japanese electrical companies : Year to March 19M (Ybn) 

Company 

ConeoBdetmi 

sales 

Parent 

sates 

Consolidated 

pre-tax 

Parent 

pre-tax 

Consolidated 

net 

Parent 

net 

Fujitsu 1993-94 

3,1393 

2.172J 

44.1 

209 

-37.6 

17.0 

1982-93 

3,4618 

2.397,5 

-18l1 

-8.7 

-32.6 

-7.3 

Hitachi 1993-94 

7,400.0 

3,738.6 

228.4 

71.8 

603 

45.9 

1982-93 

7,5362 

3,811.5 

234.7 

701 

773 

67A 

Mfesubistt Sea 1983-04 

3,105.4 

£3944 

71.4 

300 

20.6 

11.5 

1992-83 

3.2603 

2.483L6 

705 

303 

205 

22.0 

NEC 1993-83 

3,6788 

2,899.3 

25.1 

31.8 

06 

107 

1992-83 

3^148 

2369.5 

-37.7 

101 

-402 

105 

Toshiba 1993-94 

4,630.9 

3256J2 

802 

507 

12.1 

31.4 

1982-93 

4,627.5 

3,1508 

808 

54-8 

206 

203 

Score ; Compaq? npm 


largest computer manufacturer 
and the world’s second-hugest 
(after IBM), saw demand for its 
computers decline by 10 per 
cent in the domestic market, 
under severe price pressure. 
Orders for minicomputers were 
almost half the previous year. 

NEC saw shipments of mini- 
computers drop 26 per cent, 
with office servers and main- 
frames down 9 per cent and 7 
per cent respectively. 

Consumer electronics was 
another sertbr which dragged 
down earnings. Sales of air 
conditioners dropped as a 
result of Japan's unusually 
cold summer last year, while 
audio-visual equipment 
suffered intensifying price 
competition amid the market 
slump. 

NEC Home Electronics, the 
company’s struggling con- 
sumer electronics division, 
reported a loss of Y8.7bn - 
although this was an improve- 
ment over its Y16L7hn loss pre- 
viously. 

Mitsubishi Electric suffered a 
12 per cent drop in consumer 
products, and Toshiba saw an 8 
per cent fall. Fujitsu's car 
audio division reported an U. 
per cent fell in sales, largely 


the result of the domestic 
slump in cars. 

On the positive side were 
strong overseas markets and 
sales of a few specific products. 

In the US, there was a strong 
rise in sales of semiconductors 
and liquid crystal displays 
(LCDs). The growing popular- 
ity of advanced software such 
as Windows, which use more 
memory capacity, meant that 
demand for semiconductors 
rose more than PC sales. 

Tbe shift to colour notebooks 
increased demand for LCDs, a 
sector dominated by Japanese 
manufacturers. Toshiba, which 
uses colour for more than half 
its notebooks, said demand for 
LCDs was so strong it could 
not be fully met. NEC’s US 
subsidiary, which makes elec- 
tronic devices, saw sales surge 
more than 70 per cent 

The US market also pleased 
Toshiba with strong demand 
for its notebook and sub-note- 
book computers. 

Demand for electronic 
devices from south-east Asia 
was another positive factor. 
Toshiba reported a 9 per cent 
increase in exports, despite the 
yen's appreciation, due largely 
to strong south-east Mian 


demand for semiconductors 
and other components. 

Public utility investment 
helped support the companies' 
heavy electrical machinery 
divisions, with Mitsubishi 
Electric seeing sales rise 7 per 
cent 

Efforts to reduce costs were 
a significant factor where there 
was an improvement For NEC, 
which, fell into consolidated 
prefax loss the previous year, 
a return to profit was achieved 
partly by cutting selling, gen- 
eral and administrative costs 
by 5per cent 

Prospects fear the year ahead 
are stfil uncertain. Most com- 
panies expect a alow and grad- 
ual recovery in Japan, rather 
than a strong rebound. 

However, there are sectors 
which promise continuing 
strength and many electricals 
are planning aggressive invest- 
meat in those areas in the 
hope of reaping farther bene- 
fits. 

NEC, for example, is invest- 
ing a further Yl25bn in elec- 
tronic devices, a level that is 
close to the company’s 1992 
Investment peak of YlElbn. 
Toshiba is investing YSObn in 
semiconductors alone. 


Minolta Camera back in black at Y258m 


By EmBco Terazono 
In Tokyo 

Minolta Camera, the Japanese 
camera and precision instru- 
ment manufacturer, returned 
to the black for the year 
to March 31, thanks to cost 
cutting and an increase 
in dividends from subsid- 
iaries. 

The company posted uncon- 
solidated pre-tax profits of 
Y258m (82m), compared to a 


loss of Yi3.6bn the previous 
year. 

Sales fall 6.1 per cent to 
Y1845fan, with faffing domestic 
demand due to the prolonged 
recession and. the appreciation 
of the yen. After-tax profits 
were Y53Qm. 

Sales at Minolta's office auto- 
mation machinery division fall 
10 per cent to Yll5.7bn, but 
camera sales rose 6.4 per cent 
to Y68.6bn. Overall exports 
declined 5.8 per cent to 


Y141.6hn due to the higher 
yen. 

The company said ft would 
forego a dividmul payment, as 
in the previous year, and 
retain profits for its financial 
restructuring. 

For the current year, the 
company forecasts a rise in 
parent pre-tax earnings to 
Ylbn, cm a 2.7 per emit rise in 
sales to Y169bn- 
• Minolta Camera will change 
its name to Minolta Co from 


July 1, Reuter reports from 
Tokyo. Tbe change would 
more correctly reflect the com- 
pany’s current activities, Min- 
olta said. 

Minolta was founded in 1937 
as a camera ma k er but has 
diversified widely into informa- 
tion equipment 

Its Japanese name would 
be changed to Minoruta 
Fnhnfihflri Kalwha from Mmo- 
ruta Earners Kabushiki 

Ttnifthfl- 


DPNA3N.V. 

Notice is hereby given that in accordance with article 8 of tbe Conditions 
of Administration, the Annual General Meeting of holder* of Depositary 
Receipts of IPNA 3 N.V. wiD be held on June 13ft, 1994, at 11.00 las, at 
the office of the Stichting in Amsterdam, Kereogracht 320 with the 
following agenda: 

L Opening 

2. Minutes of the annual general meeting of holders of depositary 
receipts hold cm June 14th, 1993. 

■ 3. .gresematiau of the activities in 1993. 

, 43ei&catatioa and discussion on the annual accounts IPNA 3 N.V. 

.on the allocation of the result 1993. 
o£*e L ifetime of the activities of IPNA 3 N.V. for a period 
i December 31, 1996 and to continue the administration 
fertile same period, 
icoas. ; 

vtide 9 of the Condition* of Administration bolder* of 
Depadtmy Receipts who want to attend the meeting have to deposit their 
certificates, or a statement from a bank that those certificates are in its 
custody aqd that k wffl keep those certificates in its custody until the ;«d 
of fee meeting, it the office of the undersigned, at Hercngracnt 3 m, 
Amsterdam, or the office of Suez Nederland Securities NV, Meuwezqds 
Voorfungwal 162, 10l2 SJ Amsterdam, on June 7th. 1994 at the latest 
Notice A given that the- accounts for the year ending December 31st, 

1993 have been deposkod at tbe office of the Stichtidg fled at the office 

of Suez Nederland Securities NV on fee afor«nentionedad^6M«a. 
Copies of both documents can be obtained at these addresses tree or 
ctage. • 

Amsterdam, May 27, 1994 

SHOTTING fl*NA3 TRUST SERVICES 

Hereogracht320 

1016 CE AMSTERDAM 



Siam Cement up 107% 


By WHam Barnes 
in Bangkok 

Siam Cement, Thailand’s 
hugest domestic conglomerate, 
reported a 107 per cent ysowm- 
year rise in firsfcquarter con- 
solidated net profits to 
BtL44bn ($S7m). 

Parent net profits rose 85 per 
cent to BtLOTbn, and earnings 
per share were Btl2.l and 
Bffi56 respectively. 

Mr Gerard Kruithof, an 
investment analyst at Pere- 


grine Nlthl Finance and Securi- 
ties, said: “Profits were likely 
to break out The expansion in 
1992 and 1993 depressed the 
bottom line: the added capacity 
wasn't running at full steam 
and they have an aggressive 

depreciation policy." 

Siam Cement, which 
accounts for half the cement 
sold in Thailand, is spending 
BtS.7tm to expand Its Thung- 
ann g 1 plant in Sarabtni prov- 
ince by 2 . 1 m tonnes a year to 
m ai nt a in ffiarlmt share. 


Kubota posts 
55% rise 
in profits 

By Gerard Baker 

Kubota Corporation, Japan’s 
leading manufacturer of farm 
equipment and iron pipes, 
increased turnover by 4^ per 
cent and profits by 65 per cent 
for the year to March 31. 

Group pre-tax income rose 
to Y27.3ba (f261m) on sales up 
at Y9795bn. After taxation 
and other charges, earnings 
rose 47 per cent to T85bn. 

Domestic turnover grew 5.8 
per cent, despite weak private 
sector demand that cut sales 
.of industrial castings and 
pipes. 

Tbe loss was more than off- 
set by higher sales for the 
company's environmental con- 
trol equipment and building 
materials divisions, the result 
of an increase in public sector 
construction projects follow- 
ing successive government 
packages to stimulate the 
economy. 

Sales of internal combustion 
engines were stable despite a 
cool summer and the partial 
liberalisation of rice imports. 

Overseas sales were 
depressed by the sharp appre- 
ciation of file yen, falling by 
3.7 per cent to Yl55.9bn 
despite strong growth in the 
US. 

The parent company 
announced a 8.6 per cent 
decline in prefax profits, to 
Y28-lbn, on turnover lower by 
0.6 per cent at Y744bn. For the 
current year, Kubota expects a 
gradual economic recovery to 
lift unconsolidated pre-tax 
profits by 7 per cent, on sales 
higher by 2 per cent 


Yasuda Trust to 
set up securities 
subsidiary 

ByWBIam Dawkins 

Yasnda Trust and Banking 
yesterday announced that it 
planned to become the third 
Japanese trust bank to set up 
a securities subsidiary, file lat- 
est step in the industry's grad- 
ual deregulation. 

Yasuda, the fonrth-largest 
trust bank - which tradittan- 
aily specialise in managing 
clients’ assets - said it 
would open file new unit by 
the end of June at the 
earliest 

Under a relaxation in rules 
made In April last year, trust 
banks and long-term credit 
banks are allowed to launch 
subsidiaries to issue convert- 
ible and warrant bonds - but 
not deal in them - audio deal 
in straight bonds. This privi- 
lege was extended early this 
year to the powerful city 
banks. 

So far, the finance ministry 
has licensed five banks to set 
ap securities subsidiaries, in 
line with its strategy of cau- 
tions deregulation. 


Mitsubishi Metal slumps to Y2.6bn 


By Qerurd Baker 
in Tokyo 

Prolonged recession, unstable 
weather and a strong currency 

(THUttned to reduce profits at 

Mitsubishi Materials, the Japa- 
nese pigfafa and cgmant manu- 
facturer, in file year to the end 
of March. Unconsolidated pre- 
tax profits dumped 74 per cent 
to Y25bn ($25m) on turnover 
down 82 per cent at Y68 SSul 
T he difficult operating cli- 


mate saw sales of meet 
nets tumble, with 
sharp declines -for copper, 
cement and processed goods. 
Unseasonably cool summer 
weather hit aluminium can 
production, while the 14 per 
cent appreciation of the yen in 
the period out exports. Gold 
was the only division to 


remained buoyant 
Tim company is implement- 
ing a rest m e fag ing programme 


that will see its workforce fall 
by 10 par cent by 1996. Lower 
capital expenditure and other 
economies are expected to 
reduce costs by about YlObn 
over the period. 

This reorganisation, together 
with a gradual recovery in the 
Japanese economy, is expected 
to yield improved results in 
199496. The company forecast 
a 3 per cent Increase in tom- 
over and a rise of 16 per cent in 
prefax profits. 


/hjro\ 


Eurotunnel PJ_C Registered Office: Tbe Addphi, John Adorn Street. I-oodon WC2N 6JT. Registered in EjydjnU 
No. 1960271 

Eanxunoe) SA. SoriA* amwyme *u capital de FRF 5J98.07I.8ID. Registered Office: 1 12 avetuie Klcbcr, R.P 
166 -TroaKfcSro, 75770 Paris Ccdex 16. Registered in Paris Nix RCS B 334 192403 

NOTICE TO HOLDERS OF FOUNDER, 1991 AND 1993 WARRANTS 

Holders oft" 

FOUNDER WARRANTS; the 2,652,000 twinned warrants (the ■‘Founder Warrants') to sutKcnhe Tor .dunrt in 
Eumunnd P.LC. (“EPLC") and in Eurotunnel S A. (“ESA 1 *) ifcsuaMe In fee form of Units) constituted, in the 
case or EPt-C, by Instrument dated l September 1986 (as amended by Supplemental IiMtuiiunu. dated 
4 September 1990 and 24 June 1993) and, in fee case of ESA. by a Qoanl nnuluiion dated 13 August I9S6 (at 
amended by Board resolutions doled 4 September 1990 and 24 June 1993 with fee approval of fee wanantholtkirv 
given at general meetings held on 3 September 1990 and 23 June 1993)5 and 

1991 WARRANTS: fee 7.14&85? twinned warrants (fee ”*1991 WbotukO to subwnhc fur shares in EPLC and in 
ESA (testable in the form of Units) constituted, in the care of EPLC by an Instrument dated 10 tone IWi us 
amended by a Supplemental Instrument dated 24 June 1993) and. in tbe care of ESA, by a Board resolution doted 
23 May 1991 (and subsequently amended by a Board resolution dated 24 June HWj with the approval of 
warrantbotdera at a general meeting held on 23 June 1993); and 

1999 WARRANTS: fee 534.14t.299 twinned warrants (the “1993 Warrant***) to subscribe for sbann in EPLC and 
in EgA (issuable in Ac form of Units) constituted, in du case of EPLC, hy an Instrument dated 25 June 1993 awl. 
in fee case of ESA bye Board resolution dated 24 June 1993; 

Holders of fee Founder. 1991 and 1993 Warrants are hereby informed ilur fee Boards of EPLC and ESA at 
meetings held on 2S May 1994 and pursuant to the authorisation and powers granted to diem <m IS December 
1993 and 17 May 1994 and on 24 June 1993 and 17 May 1994 respectively, resolved to approve the ivaie b> way 
of rights of 323584,308 new shares in EPLC with a nominal value of 40p each and 323JHM JUS new dure, in 
ESA with a nominal value of FRF 10 each, together forming 323.884,308 New Units, on fee husiv uT3 New Units 
for every 3 existing Unis (fee "Rights Issue") at 265p per New Unit or FRF22JO per New Unit or a fixed 
combination of !323p and FRFII55 per New Unit. 

As a result of fee Rights Issue, the rights of holders of fee Founder. \99l and 1993 Warrants will he adjusted 
pursuant TO fee relevant provisions of the documents referred to above eunsiiiuiing the Warranty Tbe Bnanh. of 
EPLC and ESA hove appointed Morgan Grenfell A Co. Limited and Banquc fndosuca to determine fee appropriate 
adjustments. 

A further notice to holders of the Founder, 1991 and 1993 Warrants will be published giving details of the relevant 
adjustments when fee adjustments have been calculated. It is expected that such notice will be published on or 
about 13 July 1994. 

Under the tends of fee Instrument executed tty EPLC on 23 Jane 1993 coostinning (he! 1993 Warrant- and fee 
resolution of the Board of ESA dated 24 June 1993, tbe Boards of EPLC and ESA respectively tnaj. in certain 
cueumsmnoes dependent inter alia on tbe price of n Unit on the London Stock Exchange and the Pans Bourse 
during fee tan 10 days in May 1994, shorten fee period during which I be 1903 Warrants may he exercised to 
expire on 30 June 1994 as opposed to fee present due of expiry, 31 October 1993. At a meeting of the Hoard of 
Directors of EPLC and ESA brid on 25 May 1994 the Boards of each of EPLC and USA respectively resolved nut 
to exete be their discretion to shorten fee subscription period is aforesaid in fee event feat such diuielttm antes. 

By Order of the Board 
S. A. Walker, FOS 
Secretary 

Eurotunnel P.LC 27 May 1994 


The Board of Directors 
Eurotunnel S.A. 


Tfia noOoc it iffMed in aintpluntc with the rcquiremarU of The International Stock £xd%m$t o( ibr Utaztxi KntgJdm 
md the Republic of IrAmd Umitrd (~tbe London Smck Extb^mgf~). It does not cantlilutr an ojfer or rnriutnvt to \txy 
person to otbsenbt for or purchase any of tbe Ordinary Shane. Application has been made to tbt London Stuck 
Exchange for tbe Ordinary Shares ofSp each a/'Bmcwi Do^Wb Holding* Pf.C {“flrwm Dolphin “l in uwe and imu> 
bang issued to be admitt o i to tbe Official List. 

It is expected that deaiatp m the Ordinary Shares of fireuw Dolphin wdl commence an 9 /core, [994. 



BREWIN DOLPHIN HOLDINGS PLC 

(Incorporated and. registered in England and Wales wife RcjpMiczed Number 1685806) 

Placing by 

Charterhouse Bank limited 
of 

7,2 79,231 Ordinary Shares of 5p each ac I50p per share 
Share capital immediately following die Placing 


Authorised 

£22592.87 


Issued and mow being 
issued fully paid 
£1.029,048 


Ordinary Shares of 5p each 

Brewjn Dolphin is one of fee UK's leading private diene portfolio managers and stockbrokers 

Lifting Rutkulan are available for collection during normal business hours on 27 and 31 May 1994 from the 
Company A n nou nce ments Office, tire London Stock Exchange, London Stock Exchange Tower, Capel Court 
Entrance, off Bartholomew Lane, London EC2 and on any weekday up to and including 9 June 1994 from: 


flrewin Dolphin Holdingi PLC 
SGSispur Street 
London EC1 A 9BD 

Chancrhoose Bank Limited 
1 Paumoner Row 
St Pud’s 

London EC4M7DH 


Brcwin Dolphin Holdings PLC 
7 Dromsheugh Gardens 
Edinburgh EH3 7QH 

Psnmare Gordon & Co. limited 
New Broad Street House 
35 New Broad Street 
London EC2M1NH 


27 May 1994 


/bum\ 


Buotumwi PX-C Registered Office Tho Addpfu, John Adam Street, London WC2N 6JT. Registered in England 
No. 1960271 

Eurotunnel SA. Social aooayme au capital de FRF 5,398,071,810. Registered Office: 112 avenue Kfebcr, B.P. 
166 - TrocadfrO, 75770 Paris Cfcdcx 16. Registered in Paris No. RCS B 334 192 408 

EUROTUNNEL RIGHTS ISSUE 

Availability or Prospectus 

The document comprising fisting particulars of Eurotunnel P.L.C. PEPLC*) and Eurotunnel SA f'ESA") ("fee 
PoospectmT) (and, if applicable, fee Rcoounocablc Letters of Entitlement) for fee Rights Issue of EPLC and ESA 
announced on 26 May 1994 fat expected to be despatched cn 1 Jane 1994 to registered shareholders of EPLC and 
ESA and any person who has requested a copy of fee Prospectus. The Prospect*® will not be despatched to any 
person in fee United Stares. Canada, Australia, Japan or Hong Kong and, subject to certain limited exceptions, tbe 
Rights Issue will not be capable of acceptance by persons In such jurisdksjoos. Copies of fee Prospectus will also 
be available for collection from 2 June until 22 Jane 1994 at fee foil owing addresses: 

National Westminster Bank Ptc 
Registrar’s Department 
New Issues Section 
15 Feafeent o oe Street 
London ECIYSQS 


27 May 1994 


By Order of tins Board 
S. A. Walker, FOS 
Secretary 
EurotanneJ PJC-C. 


National Westminster Bank Pic 

Registrar's Department 

New Issues Section 

P.O.Box 859 

Consort Heme 

East Street 

Bcdminster 

Bristol BS99 1XZ 


Tbe Board of Directors 
Eurotunnel SJL 


baaed by Eurotunnel PJ_C anti Euroamoel SLA. and approved by Morgan Grenfell A Co. limite d, a member of - i| 
The Securities and Fhtares Authority Limited, for the purpose of section 57 of (be Financial Services a« 1986, 


Residential 

Property 

PRIVATE 

ADVERTISERS 

please contact 
Sonya 
MacGregor 
071 873 4935 


IHansol 

(li m p o / uud m SnPepMkefKonanlAmndmaiirl 

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USL$372 _ 

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May 26, 1994 to Novmnher 28, 1994 has been fixed at 

that the mwes! payable on the relevant Interest PayihertifljSi 

2rir,&BSs!S£S3Ktte.« «■ ■» 


; Notes, 


Mo/27. 1994 

By: Gfibank, NA pstoor Services), Agent Bank CTTlBj 


V 



22 


FINANCIAL TIMES FRIDAY MAY 27 1994 


INTERNATIONAL CAPITAL MARKETS 


European sector returns to calmer waters 


Moody’s warns on 
Latin America 


8y Conner Mddtbiunn and 
Graham Bowlsy in London and 
Prank McGurtyin New York 

Europe’s bond markets 
returned to calmer waters after 
the recent days’ turbulence, 
but traders said sentiment was 
nervous and market partici' 
pants were too shell-shocked to 
take significant positions. 

"The market is shaky - it’s 
hang in g hi a very rifriirata bal- 
ance” said Mr Peter Kerger, 
head of futures and options at 
NatWest Markets in Frankfort 

After Wednesday’s sell-off, 
which sent the German bund 
future plunging to its year’s 
low, prices clawed back some 
of their losses, helped by a 
firmer tone in the US Trea- 
suries market, but the recovery 
was without conviction, trad- 
os said. One said dealers at 
some banks had been 
instructed not to run positions 
overnight, and to keep intra- 
day positions to a minimum. 


By Antonia Sharpe 

New issues in the eurobond 
market were scarce yesterday 
with Wednesday's resurgence 
of volatility in the bond mar- 
kets scaring oft issuers and 
investors. 


INTERNATIONAL 

BONDS 


As a result, attention focused 
on Abbey National’s YSObn 
offering of three-year euro- 
bonds, the proceeds of which 
were swapped into floating-rate 
dollars. 

When the deal hit the 
screens, the pricing and the 
swap rates at the time led 
many syndicate managers to 
believe that the bank had 
missed its funding target by a 
wide margin fanning talk Of a 
subsidy on the swap. 


The June bund future ended 
the day some 0.20 points higher 
at 93.75. Zt derived little com- 
fort from preliminary Inflation 
numbers showing western Ger- 
many’s cost of living below the 
3 per cent level for the first 
time in three years at 19 per 
cent. “After recent regional 
data, this cams as no surprise,” 
«aid a dealer. 

B Bearish sentiment continued 
to dominate the UK govern- 
ment bond market yesterday, 
although it recovered in later 
trading - buoyed by the recov- 
ery in US and German mar- 
kets. 

Analysts said traders contin- 
ued to test new low levels of 
technical support but one 
trader said the weakness, par- 
ticularly at the long end, was 
c flnqwi by th p release of “a sub- 
stantial line, probably in 
excess of £200m nominal, of 
very long-dated stock on to the 
market”. Other traders 


This was hotly denied both 
by joint lead manager Merrill 
Lynch arid by Abbey. Mr Jona- 
than Nicholls, director, corpo- 
rate finance and capital mar- 
kets at Abbey, said the deal 
hail been in the works since 
Tuesday and that the pricing 
and the swap had been set on 
Wednesday. “We are not in the 
business of asking for or get- 
ting subsidies,” he said. 

CCDQ, Quebec’s cooperative 
banking movement, saved at 
least 15 basis points by raising 
CSlOOm of five-year debt in the 
eurobond market rather than 
the domestic bond markeL 

Lead manager Wood Gundy 
said CCDQ has a strong retail 
following in the eurobond mar- 
ket and by the end of the day, 
around one-third of the issue 
had been placed. When the 
bonds were freed to trade, the 
spread was largely unchanged. 

The spread on Ford Motor 


reported fairly heavy selling of 
gilts of all types. 

After opening slightly 
higher, gilts slipped back 
through the levels reached yes- 
terday to new lows, analysts 


GOVERNMENT 

BONDS 


said. They recovered in late 
trading, when the long gilt 
future was up % point at 103*. 

m Sweden was Europe’s only 
bright patch. Bonds and the 
currency rallied smartly after 
the central hank annomirpd a 
new system for steering 
short-term interest rates based 
on a repo rate, rather than its 
current key marginal rate. 

The Riksbank set the repo 
rate at 6J95 per cent, five basis 
points below the previous mar- 
ginal lending rate, and the 
floor rate at 6 per cent. At a 
press briefing, Rficshank gover- 


Credit’s SISOm offering of 
three-year debt launched on 
Wednesday was steady at 
around 45 basis points due to 
ongoing demand from Euro- 
pean retail investors, attracted 
by the (JV* per cent coupon. 

Bacob Bank, Belgium’s 
eighth-largest credit institu- 


nor Mr Urban Backstrom said 
the level of the floor, or 
deposit, rate indicated that 
“the [interest rate] trend is stifl 
downwards". 

“They sow have much mote 
scope to cut rates in small 
dribbling moves.'’ said Mr Held 
Holm, international economist 
at Lehman Brothers. Be 
expects short rates to fell by 
around 50 basis posts in earn- 
ing months, which is likely to 
boost bonds and the krona, he 
said. 

■ Most US Treasury bonds 
held steady yesterday morning 
as the market failed to build on 
gains built up following the 
previous aftern oon’s success f ul 
supply auction. 

By midday, the benchmark 
30-year government band had 
inched A ahead to 86%, with 
the yield dipping to 7.341 per 
cent At the short end, the two- 
year note edged * higher to 
99& to yield 3LS9Z per cent 


tion, could well tap the euro- 
bond market in the near fixture 
following the signing yesterday 
of a Slbn multi-currency medi- 
um-term note programme, 
arranged by Morgan Stanley. 

• The International Securities 
Market Association (1SMA), 
the eurobond market’s trade 


Early in the session, activity 
was light and sporadic, with 
many traders aa the sidelines. 
A flurry of buying followed the 
announcement that initial 
dafrn* for unemployment bene- 
fit had slipped by 1,000 last 
week. Forecasts centred on a 
decline of 7.000, which would 
have signalled a tighter labour 
market and more upward pres- 
sure on wages- 

Activity petered out as the 
market digested an upturn in 
prices following Wednesday's 
Treasury auction of fZZbn In 
new five-year notes. Traders 
had anticipated difficulty in 
absorbing the fresh supply, but 
when those fears proved 
unfounded, the market rallied. 

Yesterday, however, profit- 
takers camp to the fore, even 
though there was more favour- 
able news from the Commodity 
Research Bureau. Its index of 


association, is expected to 
annmmra a reduction in the 
settlement period for euro- 
bonds at its annual general 
meeting next Thursday in New 
Orleans. From June 1 1995, 
eurobonds will settle after 
three working days rather than 
the current five days. 


IADB drops 
borrowing 
requirement 
to $2.8bn 

By Conner MkhMamn 

The Inter-American 

Development Bank, tin multi- 
lateral bank whose purpose is 
to Anther the economic and 
social daveiopment of Latin 
America and the Caribbean, 
plans to raise some tSLSba in 
the mar- 

kets this year, significantly 
less than the $3-3bn forecast at 
the beghming of the year. 

The borrowing requirement 
has been revised downwards 
due to a Blower pace of loan 
disbursements, a lack of 
advantageous redemption 
opportunities and the fact that 
the IADB had iwm maturing 
debt than in 1993, when it 
raised 33.9bn, said Mr Charles 
Sethness, finance manager. 

However, the borrowing 
requirement will return to 
around $4ba to $L5bn In 1995, 
he stressed. 

The IADB has raised some 
SSOOm so far this year in four 
different currencies. It plans 
to issue "one or two signifi- 
cant-size’’ US dollar deals and 
a DMSOOm deal later this year, 
but there are no Immediate 
issuance plans while the brad 
markets remain volatile. “Our 
cash position is quite comfort- 
able,’’ Mr Sethness said. 

After lending WJSbn of 
funds in 1993, Tending was not 
likely to exceed SSbn In 1994. 

The IADB’s shareholders 
recently agreed to allow it to 
lend to the private sector with- 
out government guarantee, 
limiting this exposure to 5 per 
cent of new loans. Although 
the bank wflZ be exposed to 
craunodal risk for tin first 
time, Mr Sethness was confi- 
dent it would not threaten the 
IADB’s triple-A rating since 
this laiding would be “at a 
marginal level and on an 
experimental basis” 


By Antonia Sharp* 

Moody’s investors Service, the 
international rating agency, 
warns In a report on sovereign 
risk that old vices ere surfac- 
ing once again in Latin Aw- 

Although Moody’s has recog- 
nised the fiscal improvement 
and the success of economic 
reform in Latin America 
through some rating upgrades, 
it nevertheless believes that 
these countries remain highly 
indebted and structurally 
biased towaxds consumption. 

National debt Is rising *9**" 
noticeably and the flscaloal- 
ance has deteriorated to some 
cases, notably Venezuela, it 
adds. Although the potential 
for growth has Improved, the 
risk of running Into debt ser- 
vice problems remains high. 

“After a decade of economic 
crisis, growth rates have been 
only moderately high *ed the 
income distribution of them 
countries has not improved sig- 
nificantly," Moody’s says. It 
forecasts problems arising 
from the reversal in the rapid 
inflow of capital in recent 
years fin Argentina and 
Mexico) and says the consider- 
able potential fra political 


By Tony WMnr In Staging 

Lehman Brothers, the US 
investment bank, has opened a 
representative office in Beijing 
providing more evidence of the 
involvement of American 
nmmrJttl houses to (thins. 

Mr Sherman Lewis, 
Brothers' vice-chairman, said 
the company would involve 
itself in fund-raising for infra- 
structure projects, tire market- 
ing of “various debt instru- 
ments” and assisting with 


change add a a tether degree 
of uncertainty to tire fixture of 
the region. 

The npori. which assesses 
the credit quttty outlook tor 
45 sovereign nations, high- 
lights negative factors which 
could harm the low-risk credit 
ratings of advanced industrial 
nations. Then developments, 
such as high fiscal deficits, the 
rapid acotewtotton of puwfc 
debt, stow economic growth 
and declining International 
competitiveness will force 
palatal economic adjustment 
but to matt cases, tin adjust- 
ment Is not expected not be 
severe enough to move i 
into the medhna-riak rating 
categories. 

By central Moody's is posi- 
tive about the outlook tor 
Aslan nations, citing credit 
strengths, strong export'&ivBn 
economic growth, high savings 
and i nv e stm en t rates and mod- 
erate indebtod n eaa to propor- 
tion to prospects for continued 
strong ex port Saratoga. How- 
ever, upgrades into the tow- 
risk rating categories will be 
C Q IWt ratTKw! fair the DosaiMItv 
of political Instability and 
regional canffict and the poten- 
tial for disruptiv e social 
change as sodal demands rise. 


enterprises, 

Lehman acted as sole agent 
tor the Construction Bank of 
China in a private placement 
of debt securities to the US last 
August It lead-managed last 
October’s gsoom dragon bond 
and is assisting a large Chinese 
corporation -to a public offer- 
ing. 

The US investment house 
plans to open an office to 
Shanghai by the end of the 
year. 


21 commodity prices receded 
further, after a disconcerting 
surge tote tost week. 


Abbey National swaps Y30bn deal into dollars 


NEW INTERNATIOIIAL BOND ISSUES 

Bofroam 1 

YSI 

Abbey NatLTrauSatvtoaatW 
Suchmatdautscha LBfd} 
88ABM 

Amnia 

OL 

3tfcn 

lObn 

lOOn 

Coupon 

% 

138 

W1> 

U1 

Price 

10CL2OR 

100JXJ 

10O2DR 

Metwfqr 

Sep.1987 

Jan.1997 

JUL.1SS6 

Fee* 

% 

O20R 

,.y«.| 

O20R 

Cpreed Bool rarmer 
bp 

Mans LyncMSemn DHL 
Morgan Stanley WL 

Mens Lynch Imemtolooal 

CANADIAN DOUARS 

CCOQW 

100 

1828 

9BJMR 

Dec.1899 

0L279R 

444 (7*%JHQ wood Gunay 

TTAUAN Lim 

Carffla London Branchfe) 

I60bn 

B.875 

100.77 

JUO2004 

2X0 

Canpta 

SWISS FRANCS 

Ganani Bactrie CapLCorp.* 

100 

4.50 

101J75 

Jun. 1887 

12S 

Banque Parities (Stisaai 

Final tanma and non-cMebia uniees ataaeri The yield apraed (over relevant gewammart bond! at launch is auppBed by 0 m land 
manager. ^Private ptecemant Ft lead re-offer price: teas are ahown at the re-oflar NmL a} Stmt 1st coupon, b) Long 1st eoman. e) 
Cstabto an 3013/96 and arvwaay (henMflv at par. 4 CNhtie on 2778/95 ft 98 ta per. dT} 2.7% to 27VU9S. (hen 3* to 27/196 and 
3.336 thereafter 


Representative office in 
Beijing for Lehman Bros 

public offerings tor larger 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 


Rad 

Coupon Data 


Price 


Day’s 

change 


Weak Month 
yiaW ago 


Italy 

■ NOTIONAL ITALIAN OOVT. BOND PTP) FUTURES 


FT-ACTUARXES FIXED INTEREST INDICES 


Price taden 
UK Gi to 


Thu 


Day* 


Wad 


Accrued xd ac& 


- Low ooupon yield — Madkan coupon yield H^h coupon yield— 


Australia 

Belgium 

Canada* 

Danmark 

Franca 


BTAN 

OAT 


9-500 08/03 1023900 -2260 

7230 04/04 90.8000 -0280 

6£CKJ 06AM 808000 -0050 

7X00 12AM 800000 -0.100 

8JQ00 05/96 1O5.62S0 +0.130 

5500 04AM 89.0900 +0400 


9.11 


8.49 

7.70 


BM 

B.18 


Optwi 

Sett price 

Change 


Low 

EsL vol 

Open an. 

1 Up to 5 years {2+] 

122.77 

-014 

122.93 

005 

434 

5 ya 

7.92 

737 

7.11 

114 

838 

734 

831 

114 

736 

736 

7/15 



11002 

+034 

11043 

1Q831 

57667 

68528 

2 5-15 years 022) 

14237 

-0.02 

14230 

2.14 

532 

15 yn 

838 

830 

103 

140 

838 

143 

170 

8.72 

170 

835 

8435 


109.15 

109.12 

+019 

10834 

10170 

5080 

14896 

3 Oner IS yeora (W 

15939 

-034 

159.77 

333 

436 

20 yr» 

838 

837 

128 

140 

838 

834 

834 

155 

176 

7.19 

7.10 









4 Irredeemables p 

18134 

-001 

16135 

1.01 

6.12 

Irrad-t 

838 

838 

632 







aoo 

832 









5 AI stocks (Sl> 

mso 

-a 10 

739 .S3 

227 

432 











168 

631 

■ TTAUAN GOVT. BOND (HTP) FUTURES OPTIONS PJFFE) Lba200m looms of 100% 








— 

• Man 

wW- 

— 

— ■ 

-WtaSc 

a 10% — 

— 



Raly 

Japan 

No 119 

8300 

4300 

01/04 

06/99 

833000 

1073390 

- 0.100 

048f 

3.06 

9.10 

3.15 

930 

3-41 

Strike 

Pltea 

Sap 

■ CALLS 

DSC 

Sep 

• PUTS 

Dec 

No 157 

4300 

06/03 

1063140 

— 

3.73 

3.73 

3.96 

10600 

238 

339 

234 

3.17 

Netherlands 


5.760 

01/04 

91.6400 

-0220 

637 

634 

6.61 

10860 

210 

335 

248 

343 

Spafei 


10300 

10703 

1053000 

-0.150 

aas 

9.40 

938 

11000 

136 

232 

274 

3.70 


kndrn talked 


S Up m 5 yeoraPJ 

7 Over 5 year* (11) 

8 M stocks ( 19 ) 


186.19 

-002 

18121 

0.74 

253 

Up to 5 yis 

173 

171 

298 

2.71 

239 

221 

17105 

-031 

17181 

1.17 

139 

Over 5 yrs 

3.73 

171 

154 

184 

332 

186 

17122 

-038 

17172 

1.12 

1.77 









UK Sts 


6.000 
6.750 
9A00 
5-875 
6250 

ECU (French Govt) 6-000 04AM 
Loecton dDSkio, -New YOrtt rttd-day 
t One BndMng wtttmoklng tax at 124 per east paytotia by 


US Treasury ’ 


0809 

11AM 

10/08 

02AM 

08/23 


82-10 -5/32 

89-16 

105-06 -5/32 

81-15 • +.18/32 
86-27 +30/32 
883700 -0080 


723 7A3 

826 720 


725 
7-87 
&00 
622 
720 
727 

VWdK Local martot aMKbnL 


827 722 

7.10 7j06 

72S 728 

7.36 707 


E*t wl bm cm* mo Pm mss. Piwfau* *qr% open ml. cm* iiosa nn 7aeo 


Spain 

■ NOTIONAL 8PAIB8H BOND FUTURES (MEFF) 


5 year yield lOymryWd «5>eary M ld-- - ■ 

May 26 May 2S Yr. ego May 28 May 25 Yr. «qo top 26 May 28 YF, «QQ 


9 Dabs 8 Loans (78) 12844 -0.79 129.46 1.99 422 834 847 894 9L30 BM2 0.42 

Aaaoea worn ndeaytoon yUris am thorn atom Capon Band* Lorn OH-7**; Medtnc BH-TOWi; Htfc 11* and ewer, t Flat ytatt. yWYwn to date. 


8.47 927 


Bl37 


Pita* US, UK in 32nd*. tttttrs ki debmri 


Source; MMS WriKOntt 


Open 

Salt price 

Change 

High 

Low 

ESL voL 

Open bit 

IIS INTEREST RATES 




Jun 

96.16 

9534 

4032 

9629 

85.78 

54,128 

IIBy+fil 

LuncNtaw 



Tremurr Bfc and Bond Vfclda 


Sap 

9530 

9144 

-039 

8160 

9135 

2355 

12355 



Qanttca — 

AM 


— 192 









maaiatt 

74. 

Tw BOtoh — 

431 

Dmexar 

— 828 









MerbaniNi 

ft 

TbraaaototL- 

438 


— 066 









MBnb 


Sfr meudi — .... 

474 

Iftyett 

739 

UK 








FadAeriin taenedoau 

*4 

Onsrer 

Ron 

SHa» 

73G 

■ NOTIONAL UK <ULT FUTURES (UFFW £50,000 32nds of 100% 




FT FIXED INTEREST INDICES 

May 25 May 25 May 24 May a May 20 Ylr ago Man* low- 


CULT SDOBD ACTIVITY INDICES 

May 25 May 24 my 23 May 20 May 19 

87.7 111 A 

100.7 88.9 

ww 


BOND FUTURES AND OPTIONS 
Prance 

■ MOTTOHAL FRENCH BOf® FUTURES {MATH 1 ) 


Open Sett price Change Ugh Low Eat vai Open bn. 

I Jut 103-20 103-11 +0471 103-25 102-23 98873 1042S0 

Sep 102-18 102-11 *0-04 102-21 101-23 32102 185S8 

a LONG GBLT FUTURES OPTIONS (UFFE) £50.000 B4fr» of 100* 


Oovt Secs. (UK} 93.69 83-79 94.70 95.54 9522 95.08 107.04 9320 QM Edged bargains 127.1 853 802 

Fixed Interest 111.78 112.74 111S9 114,50 114.73 111.54 13347 11022 B-day wraps 1022 96.7 98.7 

- tor ito*. CkMn>Mac Secwtaee high Since oaflnpMtac 127.40 pn/HL low 49.18 pn/73. Fbad Mw Wflri tane mmcMm 19M pWM) , toe BOSS pn/7* . ft 
28 m Rxed Mna m S8 aciMy Meat rabaaao 1W« 


FT/1SMA INTERNATIONAL BOND SERVICE 


Listed «e the I 


t HmaBond bnb Ibr artsh ttaa la an adequate aaoondary ratal Latest price* el 7500 pm an Mey 28 

toued Bid Ottor Cbp. Yield leaned BU Oder Chg. Yield 


leaned BM Pier Cng. 


Open Sott price Change Kgh 
Jun 11822 11942 +0-32 118 JO 

Sap 11824 11946 +030 118L44 

Dee 11728 117.58 *020 117.46 

a LONQ TERM FRENCH BOND OPTIONS (MATff) 


Low 

11836 

Eat vol 
248380 

Open lid. 
109,021 

Strike 

Price 

Sap 

■ calls 

Dec 

Sap 

■ PUTS 

Dec 

11100 

11302 

25.018 

102 

2-32 

3-00 

2-10 

3-42 

11738 

742 

7361 

103 

2-00 

238 

2-42 

4-14 



104 

1-37 

2-12 

3-15 

4-54 


US. DOLLAR SIRMOHEB 
Abbey NanTtaaeuy 0*2 03 1000 


Strike 

Price 

Jui 

— CALLS - 
Sap 

Dec 

Am 

— PUTS 
Sap 

119 

042 

137 

- 

- 

116 

120 

- 

1.13 

- 

038 

238 

121 

- 

032 

- 

138 

129 

tast 

- 

034 

084 

_ 

430 

123 

- 

034 

- 

- 

- 


Ett. ml total. Cals 10104 Puta 1072. PnMeua Chya apart M. CMa 2SE44 Pun 1235* 


Dec 


a* ML MM. Cafc 28.520 Putt 30.184 . Rwtoaa day " a opan M. CHa SOejKM Puta 37ZAI&. 

Cetmany 

a NOTIONAL CWBMAN BUMP FUTUBdB3 (UFF^" DM250.000 lOQtftt oMOOH 


Ecu 

a ECU BOND Futures (MATIF) 



Open 

Sen price 

Change 

Hgh 

Low 

Eat vol 

Opan InL 

Jim 

83-75 

89.81 

+0.06 

8183 

8138 

14931B 

132601 

S«P 

8331 

83.14 

4038 

9131 

8237 

8125 

36323 

Dec 

92.70 

8178 

4033 

8185 

9170 

126 

182 


Jun 


US 


Opan Sett price Change 
8822 8834 *002 


8850 


Lew 

88X10 


Eat voL Open kit. 
3X112 10231 


■ US TREA8UHY BOW* FUTIWES (Cgl} S100XM0 32nda of 10036 


■ BUM) FUTURES OPTIOHa 1UFFE) DM250.000 polnla qt 100% 


Strike 

Price 

Jii 

Aug 

CALLS ” 
Sep 

Dec 

Jut 

Aug 

PUTS 

Sep 

Dec 

8300 

130 

1-20 

134 

134 

088 

1.16 

1.40 

236 

9380 

075 

133 

129 

131 

1.11 

139 

135 

232 

9400 

035 

030 

137 


131 

138 

1.83 

183 



Open 

Letaat 

Chenga 

High 

Low 

Eat. wsL 

Open bn 

Jim 

104-15 

104-23 

+0-11 

104-25 

104-12 

448,187 

330,781 

Sap 

103-18 

10348 

40-12 

103-28 

103-14 

11391 

100380 

Dae 

102-30 

103-06 

40-09 

109-06 

102-27 

1,129 

34.787 


Ext- ML waL Crib 13S03 Putt 33488. fWoua day's opan bit, C* 112320 Putt 1117W 
■ NOnONAL MEDIUM TERM GERMAN OOVT. BOND 

POBLHUFFEr DM2S0XM0 100th# « 100% 


Jim 


Open Sett price Change 
39.45 9920 *027 


Ugh 
99 AS 


Low 

8828 


EsL vd Open H. 
387 1296 


Japan 

■ NOTIONAL LONG TERM JAPANESE GOVT. BOND FUTURES 

[UFFE] YlOOm IQOBia tri 100* 

Opan Ooae Change Hgh Lon Hat vd Opan bn. 
Jui 114X71 - - 114.10 11338 211 0 

Sap 11329 - - 113-47 11322 2078 0 

* UFFE uamaUtt taadad on APT. AS Open kearaat aps. He tor pmitaua day. 


I UK GILTS PRICES 1 

VMff _tW4_ 

Jfttas tat M WciBfir- W LW 

_ Yield _ IBM— 

bn It M Price £ 4 ii- Htfi law 

„ _(8W„ 

Mtn (1) (Z) PittE * 1 - HW Law 


Stott* ^*** 1 ? to Rv*V*wD 

TlWl TUpcLa. 1B94^L- mw 

BchmageWM 1227 

TrtUflpcKKHtt M4 

ISpelOa.. 11^0 

EaASgcQia B0-03 306 

10t*pc1W6,„. m 

test 12*pc 199$# — 1l« 

14K1B0B 1U1 

lS#Cl9l»tt 1320 

&rt1fitpc1M8tt 11-82 

ObbuoIm 10pel996— 038 

Caw 7f«- 1997# OflO 

Trim 18Vpe 1887# — 11AD 

Bdl lOitfe 1887 074 

9se»B1*pclBB?rt 048 

BcftlSpc 1887 1233 

BVpciaaB 019 

Tln7li|El9Batt 727 

TtmtoKiVHatt- an 

UOttS - 1 1144 

IhmlPjpc'Ba# 12,14 

Boiaeire m+e 

usais/aflo 1998ft — 087 


RMtoNttnitan 

BrtlSWJBBS 1054 

ftaelD'+petW 948 

Tnsa%ci 989ft.^^. OSD 
Omental 10t«pE 1998- 0*1 
TramRflRmTM— — 

wcanoft- Off 

itattiapcaaoo ion 

IflpoHXn - 827 

ftBVift.. Ml 

ytit- , 743 

aVtaHB ooa 

SKZOOftt 018 


1 0DC 3003. 




100 TlHI 114x2001-4 — 
101& MsMOSlapCVM 

10lS CBW«dn8faK20H^. 

104H Ttttt&vccsnom 

ara cowgijpcSBCE 

™ Tims is'ipc zoom — 
74me 200 8tt. .. . — . 
^ Bpc 8002 -*ft 

Haas Bljpc 2007 ft 

TtaHSpc 2008ft 


OnrlVtaaitan 

B« Tram fioc a»S 

ITfji TnwBlApcZmO 

2"¥cinami« — . 

ins* 

Tnas Slaw: 2008 - 12 ft_ 

-Om Ope 2013ft 

7*1X2013-188 

TlM«k|ic2DTO_ 

nag 

\Wt 

.ss 

103*1 INM 

121fl O— d4n — ■ — — — 
1 UJIJ WarUnS^acft— 

a OeHSttfeWNt, 

Turn 3pe VO/ 

1DIH Cmodzitpe 
87A Maa-zine. 


9.13 048 
i nns 843 
477 746 
086 043 
746 S2S 
8*3 *43 

1012 078 
013 034 


1IW 
114fi 
7M 
107£ 

■Bid 
1B7JS 
l&b 
BGU 

an mo oea. 


079 
042 on 
1046 079 
H4S 846 


1174 

101 

iaou 

msa 


— 1274 
-4 72912 
V. 064 
+4 1254 
*>* 1094# 
*& 

+4 1434 
+4 11S3J 
-A Hi*. 
-4 1304 
*A 1194 
*4 iBifi 
*i> 184JJ 


109H 

1144 

724 

109fi 

B94 

1074 

123 3 ! 

9431 

864 

117)3 

iota 

130* 

104% 


-A 203*1 19731 


2 «W #W 

4fdK‘06ft — (13SJS 

2130 cm i7&m 

Paccra . joa 

4%KU4tt — (I30Q 

2%cHS- 
2 1 2PC11. 

2>dK13. 

aSsnU 014) 

SHscVO. 


171 1C 
051 171 1C 

on 174 ia„ . 

349 076 7384* 

083 078 133* 

08* 078 110k 

_ .. — 0301) 3n 080 110* 

Prwpwdv* ran ladenWton ma an prafectaa indadon ot D) 10* 
«nd Of 816. ngune m parantheaaa *rew RP1 Mae (or 
Moang (la 8 moncha prior n Htuaf and tone bean aQustm to 
ra*ect rabextig aJ RP1 to 100 m Jttwy 1897. Comanton taettr 
0943. RPI torSaptomber 1990 141^and1orAprl 1804: 14+i 




^ isq| 133A 
■Jj 12 M, UOk 
HJ 12Bfi 110ft 


630 

638 

B8A 

-V 118* 

730 

632 8ft II 

— BU 

832 

638 

lasa 

-it 1ZMJ 

151 

836 

106H 

-*9 12ft 

733 

611 

75 

-*s 9ft 

6 33 

633 

66» 

-4 11TH 

6.18 

831 

BU 

— lift 

836 

631 

104H 

-* 12ft 

ua 

6SZ1SQS 

-A 138*2 


a?H Other Fixed Intra w t 

106*1 
1068 
75 
96*1 
944 
104* 

192ft 


_YWd_ 

M Rad Pita£+or- 


„I884_ 
MW Low 


031 

028 

016 

on 

323 

in 


- 48* > 

- 42 AN 

- cn 
“ 28* 

- Wp 

- 30 


SO 
♦A B«H 
-IV 71 
-h 44S 

-H aa*i 
-4 371, 


46V 

41U 

56fe 

MH 

2W. 


«ak»Dnimaio__ 

Mn Dari IFiib 2009— 
B1M11*2M2DT2__ 

MBlQ8>8*iM’10 

specs 1999 

13peV7-2— 

KrOnOosBaei Spe 2011. 
laadH3*UK2DQ0 

u*ttl»ol3*apeln«L_. 

us apt 'amt. 

Haadtamr 11 >3X2007. 

IM.Mr.ScT 

irwwMdif3%wmi. 

4AtpeO2024 

UUNttGManPtpeSOOS 



~ 1424 119B 
138H llffl 

— 142 lift 

— lift 101 

— 103>a 10ft 

— lift 10ft 

iai 

u*l ft 

— 4ft 29*1 

— 13ft lift 

— 78 Oft 

— 15ft 135 

— t*ft 13ft 
15ft 14ft 


Aljattftaana 9*| 85 — 

— 600 



Bw* at Tokyo ft 90 _ 

WO 

Brigtan 9% SB 




tbntata 

7030 

Chong Kttg Hit 5*2 SB 




COundBnpeBSB — 

WO 

Qedt Fender ft SB 

300 



BSCftK 

193 

HB 71. « . 


mftar 


EttcdeFrinoeBBB 

200 

anftmftSB 

WO 

&Mm Bank Jipei 8 02 

500 

Bpet Dm Coip 9*2 96 _ 

ISO 

FMsndft 97 


H/riah&toeRftgs _ 

200 

Ftad McerQwStft SB 

1500 

0*1 Bk QpM 

300 

0MAC9*« 98 


kid Bk J^nn Rn ft 97 

re 

UerAms'DBvftSS __ 

300 

EriyftM _ .. _ 


Japan (3m Bkft 01 _ 

GOO 

Kanes Bac Pur 10 95 __ 

3G0 

Korn Bee Rower ft 03 

1350 

1 TTR Kn S 07 

mi 

MmuthttBacftta^ 

WOO 

Kppon CM Bk 1ft 95 

150 


tax? 



OsterKaeottankft 01 

200 


mi 

Ptrtorift03 

1000 

Quebec Hytoo A 98 __ 

ISO 

SlkigtuyftSB 

150 



rsunaljM 

503 

CMrxD^n 


JMtALCH 

1500 

9anBkrewB>2 98 

re 

Emdnftfi5 


dwdthenatftBS 70Q 


. ... am 

Tokyo MaiifAft 9B_ 

300 

Toyota Motor ft BS _ 

1500 

Unled Kng±m 7*n 02 _ 

3000 

WbddBwttftff 

1500 

VWdBankft 97 

1500 

BEUraCHE MAfK SIRAIOHra 



Qadt Fonciar 7*4 03 

2QQ0 



Dapta Hnwn ft IS 

1500 

OweaiaBkHnfttB » 

2000 

BSCftM 




fflftlH 

1500 

fttaaftm. _ 


o» 


Norway ft 08 

1500 

Grata ft M — 

Smlnftm 

urn 

Sweden 8 97 

2500 


82 


109 

102*1 

1ft 

9ft 

aft 


9ft 


oft 


wft 

10ft 

Oft 

KQ 

97lt 




871, 


87% 

m*2 

Bft 


8ft 

9ft 


aft 

101 

9ft 

95 


9ft 


aft 

ft 

777 

10 ft 

ft 

601 

10 ft 

ft 

7.W 

104 

ft 

643 

Wft 

ft 

792 

10ft 


671 

11*j 


SA7 

Wft 

ft 

616 

0ft 

ft 

821 

87 

ft 

673 

Wft 

ft 

641 

10ft 

ft 

7.15 

B7*a 

ft 

671 

Wft 

ft 

661 

10ft 

ft 

838 

103 

ft 

631 

10ft 

ft 

881 

107 

ft 

698 

Wft 

ft 

63* 

Wft 

ft 

7.61 

wft 

ft 

705 

wft 


660 

Wft 

ft 

0.W 

0ft 

ft 

723 

Wft 


648 

10ft 


661 

wft 

ft 

679 

wft 

ft 

645 

84 

ft 

866 

10ft 

ft 

737 

wft 

ft 

614 

9ft 

4ft 

773 

Wft 

ft 

aw 

9ft 

ft 

7.77 

Wft 


626 

101% 

ft 

860 

eft 

ft 

766 

10 ft 

ft 

728 

1(12 

ft 

Ml 

flft 

ft 

761 

10ft 

ft 

744 

10ft 

ft 

720 

wft 

ft 

STB 

wft 

ft 

605 

wft 

ft 

563 

108 

ft 

762 

Oft 

ft 

7.10 

Wft 

ft 

664 

8ft 

ft 

562 

10ft 


631 

10ft 

ft 

658 

wft 


661 

aft 

ft 

861 

oft 

ft 

748 

106*2 

ft 

7JJ7 

106 

ft 

65* 

aft 

ft 

764 

101*4 

ft 

768 

100 


aw 

9ft 

ft 

7.12 

WH 

ft 

725 

W*t 

ft 

675 

10ft 


647 

aft 

ft 

828 

Wft 

ft 

678 

102*1 


&4Z 

10ft 

ft 

60S 

04 

ft 

7.18 

W0*2 

ft 

7.16 

Wft 

ft 

624 


IHtedKhgdoraft 87 . 

V olBM p e i WHn7 03 

Wcrid£ta*015 

Wodd Bark ft 03 3000 Bft 


Vnrid BoA ft 00 . 


.5600 103 103*4 

.moo 9ft aft ft 

an* aft aft ft 

’ 8ft ft 

1250 lift 112 ft 


SMBS HtANC SlTIAIQHrS 

Aden Dm Bern 6 10 

Auto* 4*2 00 

QxnJ Bmpe ft SB 
DennafcftSS ... . - — 

QSft 04 . 


- 100 
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guide to everything from the Arts and fashion to health and travel, In an easy to use formal 

So whatever you have in mind for the rest of the week, you should start by getting 
the Monday FT. y 8OT,ng 


Financial Times. Europe's Business Newspaper. 





24 


COMPANY NEWS: UK 


FINANCIAL TIMES FRIDAY MAY 27 1W4 


Storehouse tops £ 62 m 
and plans to expand 


By Netf Bucfdey 

Storehouse, the fast-recovering 
owner of the BHS and Mother- 
care retail chains . yester- 
day it was increasing its spend- 
ing to expand selling space, as 
it reported a fourfold increase 
in pre-tax profits to £62.4m. 

The figures for the 53 weeks 
to April 2 compared with 
£ln.an last year, although that 
was after exceptional losses on 
disposals of £3L4m. This year's 
figure was depressed by an 
exceptional provision of £&4m 
against non-repayment of loan 
notes in connection with the 
sale of a US business. 

Before exceptional items, 
pre-tax profits increased 4S per 
cent from £46.6m to £68 ^m. 
However, the shares slipped 3p 
to 212p. 

Mr Keith Edelman, chief 
executive, said the economy 
was “steadily improving” and 
current sales were broadly in 


line with the trend of the past 
six months. 

He added that priorities now 
were to increase trading space 
at both BHS and Mothercare. 
The group had Identified 60 
target locations fen- BHS on top 
of its current 123 stores, and 
planned three openings this 
year in Telford, Ro c h dale and 
Cambridge. 

The group was also convert- 
ing “fallow” space in existing 
stores into extra selling space. 

At Mothercare, the new for- 
mat designed to appeal to 
young children would be 
extended from 20 stores to 75 
by the year-end. 

Capital spending would rise 
from £46m to about £6Qm. 

Another task was to improve 
supply chain management, and 
reduce surplus stock and costs. 
The group was looking at 
integrating more closely distri- 
bution at Mothercare and BHS. 

Mr Edelman said other prior- 


ities were to improve brand 
awareness and loyalty, and to 
restore stability after the 
reshaping of the group in 
recent years. 

Group turnover fell from 
£1.14bn to £X.05bn, although 
the figure for 1993 included 
£172m from discontinued busi- 
nesses. The group operating 
margin rose from 5 to 6.4 per 
cent, in spite of a 1 per cent fall 
In gross margins reflecting 
increased mark downs and dis- 
counts at BHS, and price repo- 
sitioning at Mothercare. 

Sales at BHS increased from 
£fi86m to £74Sm, and operating 
profits from £44. Lm to £56.2m. 

At Mothercare, sales grew by 
10 per cent to £282m, and oper- 
ating profit doubled from £5m 
to £10.2m- 

Eamings per share increased 
from O.lp to 9.7p and a pro- 
posed final dividend of 3p gives 
a total of 5.5p (5p). 

See Lex 


Perpetual trebles to £16.5m 


By Bethan Hutton 

Pre-tax profits at Perpetual, 
the unit trust management 
group, trebled to £16-5m for the 
half year to March 31, com- 
pared with £5.09m. 

The company benefited from 
the good performance of world 
stock markets in the last quar- 
ter of 1993, accompanied by 
strong unit trust sales. 

Funds under management 
increased to £2-87bn, against 
£2.03bn, after an inflow of 


about £70Qm of net new money. 

Earnings per share rose from 
1323P to 43.6p, or 3924p folly 
diluted, while the interim divi- 
dend is lOp (L8p) - the total 
for the full year to September 
1933 was I5p. 

“With increased funds under 
management , fees in the sec- 
ond half will, in the absence of 
a serious setback, be signifi- 
cantly higher than in the first 
hair, said Mr Martyn Arbib, 

chairman. 

Marketing expenditure was 


increased during the half year, 
in order to increase market 
share, hut Mr Arbib said that 
no further rise in marketing 
expenditure was planned. 
Although this might lead to a 
downturn in sales volume, it 
should be possible to match 
the first half results in the sec- 
ond period, he said. 

The company, based in Hen- 
ley-on-Thames, is considering 
acquiring larger offices 
to give space for further 
development 


Trafalgar House in 
the black but gloomy 


By Paul Taylor 

The £ 13.4m interim pre-tax 
profit reported by Trafalgar 
House yesterday represented 
the group’s first since 1990. 

Over-shadowing the results 
were warnings from both Mr 
Simon Keswick, chairman, and 
Mr Allan Gormly, chief execu- 
tive. Mir Gormly in particular 
cautioned that the recovery 
would be “slow and steady, 
rather than spectacular”. 

Operating profits in the six 
months were £25. 3m, against 
£80.8m losses when the prop- 
erty operations showed a defi- 
cit of £102Am. 

The engineering business 
reported lower profits. 

Mr Gormly said the recession 
had particularly affected the 
group’s business in Europe and 
the downturn in North Sea 
work had been rather deeper 
than expected. The division 
managed to maintain its order 
book at £5L2bn_ Mr Gormly said 
further job cuts would be nec- 
essary. 

Operating profits in the con- 
struction division were ahead 
at £4 .4m (£i.im) on flat turn- 


over of £378.3hl The overall 
order book was maintained at 
£L2bn. 

The property division 
showed operating profits of 
£42m compared with a profit 
of £200,000 excluding exception- 
als in the year-ago period. 

• COMMENT 

Although yesterday's results 
were lower than most analysts 
had expected, what really con- 
cerned them was the fact that 
there seems little prospect of 
real improvement for some 
time. The interim dividend was 
passed, but this was for admin- 
istrative reasons. Similarly, 
although the group sustained a 
cash outflow of £46m during 
the first half, this included the 
on-balance sheet refinancing of 
some £20m of associates’ bor- 
rowings. Despite these reassur- 
ances analysts were marking 
down their full year pre-tax 
profit forecasts yesterday to 
about £50m or £55m. That 
might generate earnings of 
about 2L2p. Despite yesterday’s 
decline the shares are still 
trading on an unjustifiably 
high multiple Close to 40. 


McLeod 
Russel 
ahead 10% 

Pre-tax profits at McLeod 
Russel Holdings advanced 10 
per cent, from £i.91m to 
£2. 11m, in the six months to 
March 31. Mr Nigel Openshaw, 
chairman, said the benefits of 
reorganising Wheway, 
acquired in March last year, 
were beginning to show. 

He added that further 
improvement from the Whe- 
way companies could be expec- 
ted in the second half in addi- 
tion to the seasonal bias 
towards the period. 

Turnover for the group, 
which has interests in surface 
coatings, environmental engi- 
neering and property invest- 
ment, more than doubled to 
£55. lm (£2 1.5m). Operating 
profit rose 86 per cent to 
£2.79m (£L5m) hut the pre-tax 
figure was held bade by net 
interest costs of £708,000 
against income of £326,000. 

Group earnings per share 
were lower at 2£lp, against 
S.Olp, as a result of shares 
issued for Wheway. However, 
the interim ctivutend is main- 
tained at 2.75p. 


This announcement appears as a matter of record only 

Management Buy-in 
of 

Seven Businesses of the 
Dowty Electrical Systems Division 
of 

Tf Group pic 


Ultra 

ELECTRONICS 


Senior Debt & Working Capital Facilities 

Lead Bank, Arranger and Agent 

Bank of Scotland 

Co-Underwriters 

Bank of Scotland Banque Indosuez 

The Royal Bank of Scotland pic 

Participants 

Bank of Scotland Banque Indosuez 

The Royal Bank of Scotland pic Bank Austria AG 

Rabobank Nederland 

London Branch 

o^o BAHK OF SCOTLAND 


EUROTUNNEL FINANCING 

Completed rights means final hurdle cleared 


More than a fortnight before the Queen, 
Mr John M3jor and President Mxtterand 
took the “inaugural'* train ride on May 
6 through the Channel tunnel, a group 
of leading fund managers and corporate 
bankers took the first outsiders’ ride. 

The fact that the City beat the state 
through one of the modem world's 
greater engineering feats, speaks vol- 
umes for the predicament in which 
Eurotunnel had found itself. 

With its money due to run out in 
June, it was faced with the logistics of 
securing increased loans from a syndi- 
cate of 220 banks, and getting support 
for a rights issue without having any 
loyal institutional shareholders. 

Surprisingly, the £856m rights issue 
went through with little difficulty, and 
no evidence of the aim twisting that 
institutions had expected from the 
issue's broker, SG Warburg. 


The underwriting group ~ with UK 
institutions covering one half of the 
transaction and French the other - 
took all night to complete the agree- 
ment but once pricing was agreed by 
the Eurotunnel board at 5pm last night, 
success was assured. 

The lead-up was not so smooth. The 
UK stock market had gone against 
Eurotunnel from the stare. And on 
Wednesday, when the deal was finali- 
sed, it hit its low point of the year. 

Word of Euro tunnel's difficulty in 
securing bank finance had spread, 
creating nervousness underwrit- 
er azul potential sub-underwriters, and 
encouraging a decline in the share 
price. 

In addition, cynicism remained aver 
the company's financial projections. 
This meant that the leading Institu- 
tions, which would be expected to back 


such a stock, were uninvested, and 
unexcited - more than 60 per cent is 
held by French, mainly retail, investors. 

In the circumstances, institutions had 
a professional incentive In talking down 
the price of the rights, to make it more 
attractive. They succeeded. 

Eurotunnel bad started with a broad 
spread an pricing, stretching down to a 
minimum of SSOp, because the company 
was only mandated to issue 340m new 
shares, and it needed to raise £850m. 

By Wednesday. Eurotunnel’s expecta- 
tions had been forced downwards, and 
the board was faced with a range from 
260p to 275p, and variations on the 
number of shares to he issued. Under- 
writers were satisfied with the decision 
of 265p. 

The UK tranche was led by Morgan 
Grenfell and the French by Banque 
Indosuez, and Swiss Bank took 25 per 


cent of the underwriting on both 
tranches. 

The format of the syndicates 
remained unchanged In the final staxre 
and the underwriting agreement was 
completed at 6am. The sub-underwrit- 
ing went through relatively easily yes- 
terday zooming, as the shares recovered 
from an initial 20p drop. 

Overall, the financial community has 
cause for celebration. Of the £85Sm 
raised from the rights, «n astonishing 
£«m. or 5 per cent, has gone on fees, to 
cover 3 years of financial advice, more 
than Elm for the lawyers, and the usual 
underwriting fees. 

Meanwhile, Eurotunnel can celebrate 
having overcome what it claims to be 
the final financial hurdle in its straggle 
to profitability. 

Simon Davies 


Seeking the profitable route 



Patrick Ponsolle: we will farm a brio, sans probifemes 


Support likely from 
French investors 


Mr Patrick Ponsolle says be Is 
attracted by difficult chal- 
lenges. 

His appointment yesterday 
as co-chairman of Eurotunnel, 
with the task of helping to 
steer it to profit, would appear 
to fit the bm 

In succeeding Mr Andrt Bfen- 
ard, who is stepping down 
from the position at the age of 
71. Mr Ponsolle does, however, 
have some cards up his 
sleeve. 

“He is well-connected, bas a 
lot of financial experience and 
is very ambitious", says a for- 
mer colleague from Cie de 
Suez, where Mr Ponsolle, 49, 
has spent much of his career. 

The first two attributes are 
largely the result of his time 
at Suez, the powerful indus- 
trial and financial group 
where Mr PonsoDe rose to the 
position of managing director. 
But they also reflect a stint in 
government administration. 

After graduating from the 
prestigious Ecole Nationale 
d’ Administration, the training 
ground for many of France's 
top civil servants, he worked 
in the economics ministry, 
serving as an aide to Mr Laur- 
ent Fabius, the socialist bud- 
get minister who later became 
prime minister. 

“He is a quintessential prod- 
uct of the French financial 
establishment", says one 
French banker - referring to 
Mr Ponsolle's track record. 

This, along with his connec- 
tions, is likely to prove an 
asset in the financial and com- 
mercial negotiations with 
which be will now be faced. 
“It will be much harder for 
French banks and institutions 
to say no to Ponsolle than to 
Bfenard, who was a relative 


outsider”, says one member of 
the underwriting syndicate for 
Eurotunnel's rights issue. 

If Mr Ponsolle is widely 
known, however, he is also 
widely known for being ambi- 
tious - a factor which helps 
explain his departure from 
Suez. One of the favourites to 
replace Sir Renand de la G4n- 
i&re as efrafar m 1 " of the finan- 
cial group in 1990, the 
appointment of Mr Gdrard 
Worms blocked Mr Ponsolle's 
path to the top job. “He had 
hoped for the big prize and it 
is no surprise that he has 
looked somewhere else”, says 
one former colleague. 

In his new job, which will 
start in July, Mr Ponsolle says 
he will work alongside Sir 
Alastair Morton, the British 


co-chairman, and Mr Georges 
Christian Chazot, the manag- 
ing director. “We will form a 
trio, sans probifemes", he fore- 
cast yestoday. 

He has few illusions, how- 
ever, about the task that 
awaits him. “The first steps 
have been taken, bnt there is a 
lot of hard work to do." If he 
succeeds, he will be fulfilling 
the ambitions of his former 
employer. 

After the nationalisation of 
the Suez Canal in 1957, Mr 
Jacques George-Plcot, then 
head of Suez, declared his 
determination to build a tun- 
nel under the channel. Mr Pon- 
solle inherits a tunnel, he 
must now make It pay. 

John Ridding 


Mr Christian Cambior. the 
French head of the association 
for Eurotunnel shareholders, 
expresses resignation on the 
subject of yesterday’s rights 
issue. “We have no choice", lm 
said when asked if individual 
shareholders would subscribe 
to the proposed capital 
increase. 

Mr Camhter, who represents 
an estimated 1.500 of Euro- 
tunnel’s 600,000 shareholders, 
expressed dismay at the 
decline in the company's share 
price but said that investors In 
the company were “a special 
breed" The French, in particu- 
lar. he claimed, “have a faith 
in this kind of grand project 
They have stuck with it and 
they believe it it will succeed". 

The attitude of Mr Cambier 
and his compatriots is critical. 
French investors hold more 
than 60 per cent of the shares 
in Eurotunnel, the majority, 
like in Britain, dispersed 
among individuals. In respond- 
ing to the rights, however, 
their faith will put to the test. 

Like their British counter- 
parts, the French underwriters 
had privately expressed con- 
cerns about tire capital 
increase. "There was some 
tough talking but we think the 
terms are acceptable and we 
are quite confident that inves- 
tors will respond." 

In the event, a group of 
French heavyweights have 
been signed up for the under- 
writing. Headed by Banque 
Indosuez. the lead managers 
include the recently privatised 
Banque Nationale de Paris, the 
state-owned Credit Lyonnais 
and the French arm of SBC. 


The co-tead managers include 
Credit Agricole, Banque Pari- 
bas, and the Caisse des Depots 
et Consignations, the state fin- 
ancing institution which is one 
of EuroturmeTs largest inves- 
tors with about 2 per cent. 

Many of their target institu- 
tional investors appear ready 
to grin and bear the burden of 
the issue. “They will face a lot 
of pressure to support the 
issue, including from the 
French government", said one 
broker. 

He believed that sharehold- 
ers such as the recently priva- 
tised Union des Assurances de 
Paris would throw their weight 
behind the capital increase. 
“There is a lot of political capi- 
tal at stake in this project. I 
think the bigger investors, like 
some of the underwriters, will 
have been made aware of this." 

One insurance company said 
it would be looking at the pro- 
spectus very carefully. “It may 
be cheaper to reduce our stake 
now than later", he said. 

What Is already dear is that 
a humpy and uncertain ride is 
in prospect. With so many 
small shareholders it is bard to 
predict the outcome. “The fact 
that the value of the shores 
has fallen so far from the peak 
in 1988 will provoke a lot of 
resentment There Is also a 
feeling that underwriters have 
added to the downward pres- 
sure an the shares to increase 
their returns. But tf sharehold- 
ers have stuck with it this 
long, they may see little point 
in bailing out now," argued 
me analyst 

John Ridding 


Argent share price set at 
255p for value of £140m 


By Vanessa Houlder, 

Property Correspondent 

Argent Group, the property 
investor and developer, yester- 
day set its flotation price at 
255p per share, valuing the 
company at £i40m. 

It is offering 13.7m shares 
through a placing and interme- 
diaries offer, which represents 
a discount of 5.2 per cent to its 
adjusted net asset value. 

Argent is raising £27.im net, 
which will be used to fund 
investments and develop ments , 
although It will initially be to 
cut debt 

Under the offer, 11.57m 
shares are being issued and 
2.16m shares are b eing sold by 
Warburg Pincus. After the 
offer, Warburg Pincus win be 
left with 27.3m shares, repre- 
senting about 49.8 per cent of 


the company. The management 
team is not selling any shar es 
in the offer. 

• COMMENT 

Argent has a lot to live up to. 
In a market jaded by the glut 
of property companies attempt- 
ing flotations, Argent’s la un ch 
stands out because of the plau- 
dits heaped on its management 
team, who have a won a repu- 
tation for skilful timing over 
the past five years. The shares 
have been keenly priced and, 
in a weak market, could fall to 
a discount when dpaiing s start. 
In the short term, asset growth 
could be held back by the 
demanding valuations placed 
on its properties. However, for 
long-term investors looking for 
capital growth, rather than 
income. Argent could be one to 
back. 


Warner 

Estate 

declines 

By David Btackwafl 

Warner Estate Holdings, the 
property investment company, 
yesterday announced pre-tax 
profits of £3.66m for the six 
months to end-March, down 
from a previous £3.76m_ 

Turnover increased from 
£5 Aim to £&89m. The interim 
dividend is 3JJ5p (3.65p) while 
earnings per share were 5.65p 
(5.43p). 

Rental income increased 
from £4. 25m to £4. 48m. The 
directors said the increase 
reflected the purchase of prop- 
erties. They expected rental 
income to continue to grow. 

Turnover also included 
£890,000 (nil) from property 
trading and £515,000 (£1.16m) 
from specialised contracting. 




Cones - 

Total 

Total 

Currant Data erf 

ponding 

for 

brat 

payment payment 

cflvkfend 

year 

year 


Andos Hutcheson — Int 

15 

July 25 

3 

. 

8 

Alba fin 

4 

Oct 24 

3.85 

5 

4.85 

Archer ■ Int 

0.5 

Aug 18 

0.5 

- 

1 

Atkins fin 

4.26 

July 20 

4JS 

01 

7.85 

Cable & Wireless fin 

5.65 

Sept 1 

5.05 

025 

7.425 

Cremwick fin 

5-85t 

Aug 12 

5.6 

025 

8 

Fenchurch — Int 

2.6ft 

Aug 5 

- - 

- 

- 

Fulcruni Ir»v Tat fln 

3J21 

June 30 

2.92 

066 

037 

Gloves — _ftn 

1 

July 1 

id 

1 

id 

Govett High Inc Int 

2.08 

July 22 


- 

- 

Macdonald Mart A fin 

7.414 

July 28 

6.6 

068 

08 

Macdonald Matt B_fin 

3.707 

July 29 

3.3 

4J84 

4.4 

Mret Currie Euro—_Jin 

0.28 

Aug 25 

029 

029 

0.28 

McLeod Russel Int 

2.75T 

July 15 

2.75 

- 

6.1 

Merchant Retail fln 

nff 

. 

are 

nil 

095 

M*fi Int 

13 

July 1 

10 


25 

Perpetual Int 

10 

July 1 

1.8 


15 

Quadramade Int 

ZB 

July 14 

- 


1 

Scottish bw Tat- Int 

1.76 

July 13 

1.7 


4.9 

Shoprfto int 

0.6 

Sept 30 

0.6 


Z2 

Smart (J) Int 

2A 

July 11 

2.3 


05 

Southnmm tin 

2 

Aug 5 

1*4 

2-95 

2.1 

Sooth West Water fin 

17.1 

Sept 1 

15.9 

25.5 

23.7 


3 

Aug 11 

2J5 

5.5 

5 

Trafalgar House int 

nfl 

- 

1.25 

- 

3.25 

Titrated Int 

1.35 

July 22 

1.25* 

- 

3.5' 

Warner Estate —int 

&S5 

Oct 7 

3.65 

- 

11 


Dividends shown pence per share net except where otherwise stated. tOn 
increased capital. “Equivalent after afiowfing for scrip Issue. §USM slock, 
ft Malden distribution. 


THE ROYAL BANK OF CANADA 
U-S. 5350,000,000 Floating Rate 
Debentures due 2005 



In accordance with the Terms and 
Conditions of the Debentures, the 
Interest rata far the period 31st 
May, 1384 to 30th June, 1994 lire 
bean find at per annum. 

On 30tfi Jure, 1994 Interest of UJS. 
SX697916 per U.S. 51,000 nominal 
amount ofthe Debentures w8l be duefor 
peyment The rate of in tere s t for the 
period commend ng 30th June, 1994 
will be determined on 28th June, 
1994. 


i Hi- Li-i-ns 


£50,000,000 


Subordinated 
Floating Rate Notes 
Due 1998 



Agent Sank and 
Principal Paying Agent 
ROYAL BANK OF CANADA 
EUROPE LIMITED 


THE BUSINESS 


SECTION 


Interest Rare; 
6.1375% per annum 

♦ 

Interest Period: 

3 1st May. 1994 to 
30th November; 1994 


Mobile Co mmu n i c a ti o ns is thg definitive reference sourcs on the 
sector for tha busy executive and analyst. PUbHshod by Financial 
Times Newsletters, it provides both timely reporting and 
authoritative analysis for the professional 23 times each year. 



Ewy Tuodaj & Stfanbj. 
Metric MBes* Ofl-TOSS* or 

Kml Injnoa tn 071-873 47B0 
or »ita totem a He Fhoodri Tina. 
Ok Sartre* Mfe 
London 5EISHL 
j iinuounMn 


Ixuerest Amount per 
£500,000 Note due 
30th November 1994: 
£15385.79 

♦ 

Agent Bank 

Bering Brothers &. Co-, Limited 


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FINANCIAL Tames 


FRIDAY MA.Y 27 1994 


:fe v 


Interest reins 
in South West 


11 1’ Port Iju 
U-iK-h im 5 


Hofflnger 

South West Water yesterday 
announced pre-tax profits at 
the tow end of expectations 
as the effects of fading interest 
rates and hefty capital expendi- 
ture began to take their toO. 

Xlw utility reported a mar- 
ginal £800,000 improvement in 
pre-tax profits to £98m for the 
year to March 3L Analysts had 
been expecting between £93.6m 
and £98 ul 

Profits were held hack by a 


as the company began to draw 
down cash to pay for its £200m 
annual investment pro- 
gramme. Some £lto was paid 
in interest, against a £l2m gain 
last time. 

Turnover rose by 30 per cent 
to £252m (£194m). A 14 per cent 
increase achieved by the utility 
business masked a 3 per cent 
decline in amnnercial 

The shares yesterday Hell by 
25p to 51 0p. 

Mr Kan ISO, finance direc- 
tor, said costs bad bean cat by 
some £2m last year by job 
losses sod production efflcian- 
des. 

The programme to upgrade 
sewage treatment along South 
West’s coastline was two thuds 
complete or under way. So Ear 
the projects had been finipbpfl 
on budget and on. time. 

South West has been the 
hardest hit by coastal clean-up 
regulations, due to its long 
coastline and relatively sparse 
population. Consequently it 
has been allowed to impose the 


highest charges of the 10 main 
companies on its customers. 

Mr fiQU refused to comment 
on the draft price increases, 
delivered to water and sewage 
companies by Ofwat, the indus- 
try regulator, last weekend. 

In the period under review 
the non- regulated businesses, 
acquired since privatisation for 
a total investment of £40m, 
broke even after Interest 
At the operating level, the 
businesses contributed £2.4m, 
on a jump in sales from ■£ifl rn 
to £79oo. This reflected in part 
the inclusi on for a full year of 
Haul Waste and acquisitions. 

_ The final, dividend goes up in 
line with expectations by 7A 
per cent to I7.ip, for an 
increased total of 25Ap (23.7p). 

Earnings per share were 
68^p (67.9p). 


The financial strains on South 
West are beginning to show, in 
particular on dividend and 
interest cover. The company 
will be farced to find substan- 
tial cost savings in order. to 
protect the dividend, unlisss 
the regulator is fieefing gener- 
ous. It seems clear that in spite 
of its respectable track record 
In the non-regulaled business, 
substantial returns from these 
divisions are some way away. 
Forecasts are tor 2100m this 
year. If the compulsion to 
invest in water is irresistible In 
spite of the price uncertainty, 
then there may be better bets 
than South West In the 
short-term. 


Universal Ceramic to 
float valued at £20m 


By Peggy HoKnger 

A small ceramic materials 
company is hoping to defy the 
market's recent aversion to 
new issues with a flotation this 
summer expected to value the 
group at up to £20m. 

Un i versal Ceramic Materials 
is aiming to come to the mar- 
ket through a placing which is 
likely to raise about £10m. 

Mr Bill Un g has, cbjef execu- 
tive, was confident the float 
would succeed. 

“We. are a small company 
and have never made -a loss,” 
he said. Also the amount of 
cash we are looking for 


is relatively small" 

UGM intends to use the pro- 
ceeds to invest in equipment 
and increase capacity. The 

company bus rihang ftri hftn ri c 

tour times since 1980. In 1903 
Mr Hughes led a £10.6m man- 
agement buy-out 

Profits far 1993 rose 40 per 
cent to £L7m an sales of about 
£26m. Mr Hughes said he 
expected profits to improve far- 
ther in 1994. 

UCM, which, manufactures 
products used in refractories 
ancUheatmg etemen^operates 
to " several mature markets to 
the UK, US and continental 
Europe. 


New condom helps LIG 
gain foothold in Japan 


By David BtackwsB 

Anew polyurethane condom is 
set to take London Interna- 
tional Group into the £430m-a- 
year Japanese condom market 
for the first time. 

LIG, the world leader to 
branded condoms, yesterday 
announced a joint venture 
with Okamoto Industries, 
which has 56 per emit of the 
Japanese market 

Japan, with 3.8m condoms 


sold annually, Is second only 
to the US in the world market. 
But the U8 market Is valued at 
only £262m a year, partly 
because toe Japanese are more 
prepared to pay for quality. 

LIG claimed last year that 
its new Avanfi condoms repre- 
sented a technical break- 
through. The polyurethane 
product, to be known as 
Duron, is twice as strong as 
latex, enabling the manufac- 
ture of very thin condoms- 



COMPANY NEWS: UK 


Shoprite 
shares 
tumble 54p 
on results 


By Pefor Frankfin and 
Netf Bucfciey 

Shares in Shoprite Ml 54p to 
9Qp yesterday as the discount 
food retailer brought fo rward 
publication of its Interim 
results from mid-June because 
profits for the period were sub- 
stantially below market expec- 
tations. 

Although turnover for the 
six months to May l increased 
by 59 per cent, from £HD to 
£10501, operating profits foil, 
by 17 per cent from £3L48m to 
£2.02m. That was in spite of 20 
new store openings, taktogthe 
chain to 83. 

The shortfall to operating 
profit was offset by a £L95m 
surplus on the disposal of vari- 
ous assets - principally the 
sale and leaseback of property 
In Scotland - and at the pre- 
tax level profits advanced by 
82 per cent from £U89m to 
£2.74m. 

The results clearly demon- 
strated the pain caused to 
some sections of the grocery 
market by increasing price 
competition since late last i 
year, when superstore chains- i 
Satosbury, Tesco and Safeway , 
began to respond to the , 
growth to the discount market 
and price initiatives from 
Asda and Gateway. 

Mr Charles Good, managing 
director* said Shoprite had 
been forced to cut gross mar- 
gins to maintain its price 
advantage over competitors, 
which had hit the bottom 
fine. 

Steps had been taken to 
reduce costs, and marketing 
initiatives had been imple- 
mented to promote the group’s 
com p etitive position. 

“We are confident that the 
second half will show some 
i mprove m ent," he added. 

He said the price reductions 
were starting to produce 
higher, volumes, and Shoprite 
was negotiating better deals 
with suppliers. It was pressing 
ahead with plans to open a 
further 30 stores in the second 
half. 

One food retailing analyst 
suggested, the company may 
have over-reacted and cut 
gross margins too for. 

?Thgy may have *hpi fijem- 
sdves in the foot by investing 
too heavily in price,” he said. 
“I think this is a probably a 
wobble rather than a struc- 
tural thing. But it will take 
them some time to get their 
halo hflpir after this.” 

Net interest payable 
increased from £949,000 to 
£L24m, but by mid-July, when 
further property sales were 
expected to be completed, 
overall indebtedness should be 
reduced to about £18m, the 
company said. 

Earnings per share came out 
at 3.05p (l-91p) and the 
Interim dividend is held at 

0.8p. 

Shoprite is changing its year 
end to bring it into line with 
the calendar year, so the 
results for 1994 will be for a 
14-month period. 


M&G takes a leaf out of its own book 


By David Wghton 

M&G, the fond management group that 
stresses the importance of companies 
paying high dividends, is tnereastog its 
own interim dividend by 80 per cent to 
13p as profits continue to surge. 

The move partly reflects toe inten- 
tion to reduce toe disparity with toe 
final payment but the company expects 
total dividends to rise by at least 12 per 
cant to 2gp. 

Pre-tax profits hi the six mouths to 


March 31 rose by 87 per cent to £3L2m 
(£2SL8m). Funds under management 
increased by 13 per cant to £L4.1bn. 

Unit trust sales mure than donbled to 
£574m (£232nv) and net of redemptions 
jumped from just £4m to £808m. That 
represen ted 1&8 per cent of the Indus- 
try total. 

Unit trust Pep sales almost trebled to 
2804m, boosted by the removal of toe 
initial charge on the Managed Income 
Fund Pep in January. 

Mr Paddy Iiinaker, who retires as 


group managing director in July, said 
he ms pleated with file im p ro v em ent 
in marketing following personnel 
changes. “last year we were pleased 
with toe investment performance, but 
a bit di sa ppoi n ted with sales.” 

life and pension policies also showed 
strong growth, with sales of single pre- 
mium life policies almost trebling to 
£l£Pm and stogie pre m i um pension pol- 
fetes up 88 per cart to £49m. 

Revenue from Institutional clients 
rose 19 per emit to £2L99m. although 


Dividing in order to multiply 

Paul Cheeseright on BSG’s latest purchase and its strategic plans 


B SG International opened 
a new chapter mite his- 
tory yesterday when it 
split its business into two core 
diviskms, opening the way to 
the break-up of the group- It 
also made a recommended 
£20m offer for Jessups, the 
vehicle distributor. 

The splitting of the group 
into Britax International, 
which will hold all BSG’s man- 
ufacturing operations, and 
Bristol Street Motors, which 
hold the group's vehicle distri- 
bution and servicing busi- 
nesses, is the upshot of & stra- 
tegic review which has been 
taking place since last autumn. 

The offer for Jessups is an 
immediate step to strengthen 
Bristol Street Motors, a move 
which also springs from the 
review. “One follows the 
other” says Mr Richard Mar-, 
ton, BSG chief executive. 

The shares fell 5%p to 68p. 
The division of BSG opens 
Up the possibility that either of 
toe halves could be demerged, 
floated, made toe subject of a 
reverse takeover or sold. But 
there is not likely to be any 
immediate decision. 

“What we are doing does not 
put a For Sale sign up over any 
of our core businesses, " says 
Mr Marion. 


A change of course has been 
in the offing since last sum- 
mer. Then Mr Tom Cannon, 
who been managing direc- 
tor and expected to become 
non-executive chairman, was 
eased into retirement 

The growth of BSG from a 
Birmingham car dealer to a 
significant components manu- 
facturer and vehicle distributor 
with turnover approaching 
£600m is associated with Mr 
Cannon more than with any 
other individual. 

But toe growth had been 
haphazard; it certainly did. not 
follow any tenets of strategic 
p lanning la id down in a busi- 
ness school. Car mirrors and 
lights, sunroofs and seat belts, 
pushchairs and aircraft lavato- 
ries, quite apart from car deal- 
ing and leasing - BSG has 

thgm aTt 

Mr Marten, as Mr Cannon's 
successor and one-time subor- 
dinate, has been seeking to put 
order into the diversity, to 
apply 1990s thinking to the 
practice of earlier decades. Any 
thought that wight be a 
leisurely process was dispelled 
in the last quarter of 1993, 
whan BSG saw its manufactur- 
ing markets sliding away and 
had to give a profits warning. 

But the results of the currant 


review come as trading 
improves. The board Is opti- 
mistic "that a satisfactory 
recovery in the group's perfor- 
mance compared with that in 
1993 is under way”. Last year 
BSG had pre-tax profits of 
giOJiin. but suffered a 27 per 
emit tell in operating profits. 

“There are two distinctive 
operations sitting together, but 
not very well together," says 
Mr Marton. 

He talks frequently of “criti- 
cal mass” and toe need to cre- 
ate more of 1L BSG is spread 
widely, but it is spread thinly. 

It is active in sectors where 
there has been considerable 
realignment In the automotive 
components sector, consohda- 
tian has ham taking - plana - 
hence the recent takeover of 
Unread by McKechnia. 

Britax now “is not large 
enough to be a major player”, 
says Mr Marton. It nearly has 
the necessary mass to be that 
to mirrors. It has same way to 
go in lighting and a long way 
to go in sunroofs. The hope at 
BSG is that greater indepen- 
dence will stimulate growth. 

On the vehicle side, Bristol 
Street Motors, with Jessups, 
will be “reasonably near” to 
achieving this critical mass. By 
adding ig gaffing s ites in south- 


east England to BSG’a-24in the 
Midlands and the north, BSG 
thinks that it will be about 
sixth in the pecking order of 
the UK’s vehicle distributors. 

But Jessups, which last year 
had pretax losses of £500,000. 
is not coming cheaply. BSG’s 
share offer values Its ordinary 
shares at 140p against an over- 
night price of 98p. BSG is offer- 
ing 13 new shares for every 
eight Jessups ordinaries and 
11035P cash for every Jessups 
preference. There is a cash 
al t ernat i ve of 125 j625p for the 
Jessups ordinaries, but that is 
dependent on the ordinary 
offer becoming unconditional. 

So tar BSG has received 
undertakings to accept the 
offer for 27.5 per cent of the 
ordinary share capital and 18.1 
per cent of the preferen c e. 

Through Morgan Grenfell, 
BSG is issuing 18.7m new 
shares, about 6.7 per cent of its 
enlarged share capital To the 
extent that some of these need 
to be sold to meet the cash 
alternative, Morgan Grenfell is 
underwriting their sale at 67p. 

The immediate financial 
effect of the takeover on BSG 
will be to raise its gearing to 
more than 45 per cent, com- 
pared with 23 per cant at the 
end of 1998. 


higher costs reduced profits to £784,000 
(£i.lmX 

Mr T WW said the investment per- 
formance bad held up well until the 
end of March and that the group was 
well positioned With a UK equities 
portfolio relatively light of highly- 
rated large companies- , 

"The relative outperfonnance of 
income, recovery and smaltar company 
stocks has at least another year to go, 
he declared. 

Earnings rose to 29.1p (2L5p). 

BTR may sell 
ADS Anker 
subsidiary 

in the BTR, the industrial cong- 
, BSG loraente, yesterday tndir stod 
about -that K was considering selling 
der of ADS Anker, its German-based 
tors. subsidiary which specialise* in 

t year electronic point of sale 
00,000, systems. 

BSG’s In response to a question at 
Unary the annual meeting In London 
l over- yesterday on whether BTR 
i offer- should dispose of the snbrid- 
evary iary , Mr Robert Faircloth, 
s and BTR’s chief operating officer, 
issups said: 

cash “It is a course that we are 
ir the currently exploring but at the 
hat is same time we are putting man- 
linary agement and diligence into 
anal. getting the best out of the 
jeived business that we can.” 
t the According to Mr Faircloth 
oi the ADS Anker has sales of under 
id 18.1 £100m and is making a small 

e. profit. 

snfeU, Mr Norman Ireland, BTR's 
new chairman, said the company's 
; of its confident view for the currant 
to the financial year, first disclosed 
} need In March, had not changed. 

cash “America and Australia con- 
fell is thrae with strong order poel- 
t Sip. ttens in most of their markets 
racial while in the UK, orders . . . 
l BSG have continued to Improve.” 
ing to However, overc a pacity in a 
com- number of sectors was affect- 
it the ing the company’s ability to 
Improve margins. 


For the first time, 
we can add 
an extra digit to 
our number. 

£ 1 , 091 , 000 , 000 . 

First time Operating Protit exceeds £1 billion. 


• Profit before tax also over £1 bn - up 32% to £1.088 bn. f 

• Turnover continues to grow strongly - up by 23 % to £4.699 bn. 

• EPS up by 22 % to 23 .6p. f 

• Recommended full year dividend of 8.25p per share is up by 11% . 



CABLE & WIRELESS 


~ : ’ tExdudmg previous year exceptional items. 

Cable and Wireless pic, 124 Theobalds Road, London WC1X 8RX, United Kingdom. 

Final dividend of 5.65p payable 1« September 1994 to Shareholders on the Register at 20th June 1994- If you Have any enquiries as a Cable & ’ 
please callus on +44-7 1-30 -4455. A copy of the Annual Report & Accounts w31 be posted to Shareholders cm ltd June 1994, 



26 


FINANCIAL TIMES FRIDAY MAY 2t 1994 


12 




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COMPANY NEWSsUK 


All-round expansion 
boosts Alba by 40% 


By Paid Taylor 


Alba, which earlier this month 
acquired Goodmans Industries, 
a rival consumer electronics 
group, for some £ 3. S m . yester- 
day reported sharply higher 
full year profits. 

Pre-tax profits increased by 
40 per cent to £7.39m in the 
year to March 31 from £535m 
last time when the outcome 
was reduced by a net £791300 
in provisions and closure 
losses. 

Turnover from continuing 
operations rose by 15 per cent 
to £ 126.3m against £109.9m, 
when discontinued operations 
added a further £3 -59m. 

Mr John Harris, chairman 
said the UK companies showed 
"strong and consistent growth, 
greatly outperforming the pat- 
tern of the consumer electron- 
ics market as a whole". 

He said ail the businesses 
raadA a positive contr ib utio n to 
operating profits which 
increased from £63m to 
£7.39m. 

Net interest costs fell to 
£351,000 (£467,000) as net bor- 
rowings fell to £&55m (29.53m), 
equivalent to gearing of 35.4 
per cent 

Total sales of the group’s UK 
brown goods companies. Alba 
Radio and Bush Radio, 



John Harris: UK showed strong and consistent growth 


increased by 16 per cent while 
the Hmari domestic appliance 
division continued its rapid 
growth, lifting sales by 65 per 
cent to £16.5m. 

Overseas, Alba France 
increased sales from FFril&n 
to FFrl21m (£14. 1m) despite 
the recession, while the small 
German operations lifted sales 
from DM6. 3m to OMll.9m 
(£4.7m>. 

In Hong Kong. Harvard Mari- 
time again made a strong con- 
tribution to profits although 
sales slipped from HK$220m to 
HK$200m (£17_2m) reflecting 


the discontinuation of certain 
law margin businesses. 

Earnings per share increased 
from 8.32p to 12.1lp and a final 
dividend of 4p is recommended 
for a total of 5p <4-8Sp). 

The shares closed 3p higher 
at I60p. 

Commenting on the Good- 
mans acquisition, Mr Harris 
said the product fit was good 
and expressed confidence that 
it would be possible to improve 
profit margins. 

“We think we can make it as 
profitable as the rest of the 
group.** he said. 


Fenchurch meets expectations 


By Richard Lapper 


Fenchurch, the insurance 
broker which gained a stock 
market listing in November, 
yesterday reported a decline in 
pro forma pre-tax profits to 
£3 53m for the six months to 
March 31, compared with 
£3 36m in the same period last 
year. 

But the the group stressed 
that the result was adversely 
affected by the transfer of sev- 
eral important insurance con- 
tracts from the first six months 
to the second half of the year. 

Arguing that profits were up 
on an underlying basis, it 


declared an interim dividend of 
2.6p. payable from earnings per 
share of 63p (7.4p. 

"Our client base continues to 
expand both here and overseas, 
where we have benefited from 
a higher profile following our 
public listing," said Mr Roger 
Earl, chief executive. 

"The group’s trading 
remains in line with expecta- 
tions at the time of flotation." 
added Mr EarL 

Turnover for the six months 
was £I5.4m (£14.7m). However, 
the decision to delay the plac- 
ing of several contacts - 
mainly relating to aviation, 
energy and industrial business 


- led to fee loss of some £L4m 
in turnover, virtually all of 
which would have fed through 
to pre-tax profits, according to 
tiie group. Expenses increased 
by 93 per cent 
Mr Earl said that the group 
had decided to defer the con- 
tracts because of tightness in 
the London market 
Investment income 
amounted to £874.000 
(£911,000). Discontinued 
operations generated income of 
£356.000 (£139m). Interest pay- 
able amounted to £52.000 
(£43,000). Losses from discon- 
tinued operations amounted to 
£7300 (£61300). 



SotietafaManajxrflEsercak i 
defle TelecotmBucaziom p.a. 


Registered Office in Turin 
Share Capital Lire 6.177,728,058.000 fully paid-up 
Registered at the Court of Turin N. 131/17 Register of Companies 
Fiscal Code N. 00580600013 


ORDINARY AND EXTRAORDINARY SHAREHOLDERS' MEETING OF 19 MAY 1994 


On 19 May 1994 the second call of the ordinary and extraordinary Shareholders' Meeting was held in Turin and was presided over by Dott 
Ernesto Pascale. 


The Meeting firstly approved the management report of the Board of Directors and the company balance as at 31.12.1993 (certified by the 
auditors Arthur Andersen & Co. s.a.s.). The results of tine profit and loss account were positive: after the allocation of UL 7,536 billion for the 
depreciation of material fixed assets and the distribution of necessary taxes, the net income amounted to 657.4 billion. The net income was 
allocated - after the subtraction of 32.8 billion attributed to toe legal reserves - for the distribution of the dividend in the following measures: 

- for ordinary shares 8.5% of the nominal value of Lit 1,000, equal to UL 85 per share; 

- tor savings shares 10.5% of the nominal value of Ut 1,000, equal to UL 105 per share. 

The remaining 63.3 billion were assigned to the Fund for reinvestments in Southern Italy. 

The revision and certification of the Company’s financial statements for the years 1994, 1995 and 1996 were assigned to Arthur Andersen & Co. s^$~ 
The Meeting also approved the modification of the following Articles of the by laws: 

2 (Registered Office). 3 (Tenure), 7 (Indivisibility and voting right), 8 (Domicile), 9 (Obligations), 11 (Right of intervention), 13 (Convocation of 
Meeting), 14 (Validity of the constitution of the Meeting), 15 (Second and third calls), 16 (Presidency of the Meeting and voting method). 17 
(Resolutions), 20 (Composition of the Board), 21 (President - Vice Presidents - Secretary). 22 (Assemblies), 24 (Minutes), 25 (Powers of the 
Board), 26 (Commitees - Managing Directors), 28 (Signature of the firm), 30 (Reimbursement of expenses), 31 (Election - Imputations - 
Retribution), 33 (Balance - Rules of compilation), 34 (Allocation of income). 

Article 29 (Responsibility of the Administrators) was suspended. 

Furthermore the Meeting approved the merger projector the companies IRITEL, ITALCABLE, SIRM and TELESPAZJO with SIP, on toe basis of 
the respective statements of assets and liabilities as at 31 December 1993. The start of the accounting and fiscal aspects is fixed as 1 January 
1994, while the civil law aspects of the merger, of which Article 2504 bisi par. 1 and 2 of toe civil code, will enter into force from toefirstday of the 
stock exchange month or the first day of the calendar month, whichever is earlier, both after toe last of the registrations according to Article 2504 
of the civil coda 

The approved exchange ratios are toe following: 

- 2.4 SIP ordinary shares (face value UL 1,000) for every ITALCABLE ordinary share (face value UL 1,000); 

- 2.4 SIP savings shares (face value Ul 1,000) for every ITALCABLE savings share (face value UL 1,000); 

- 3,150 SIP ordinary shares (face value UL 1,000) for every IRITEL share (face value Lit 1,000,000); 

- 4.25 SIP ordinary shares (face value UL 1,000) for every SIRM share (face value UL 2000 ); 

- 2 SIP ordinary shares (face value Ut 1,000) for every TELESPAZIO share (face value Lit 1,000). 

The share capital will consequently be increased, exclusively for toe merger, to a maximum of UL 903,650,000,000, through the issue of a 
maximum number of 663,850.000 ordinary shares and a maximum number of 240,000,000 savings shares all with a nominal value of Ut 1,000 
each and with entitlement 1 January 1994, to be destined in return for the shares held by Shareholders of the Companies to be incorporated. The 
exact entity of the share capital of toe incorporating Company on the operating date of toe merger will be dependant upon the presentation of 
withdrawal statements from Shareholders in the Companies participating in the merger, on toe existence of share amounts in the Companies 


participating in the merger owned by other Companies equally interested in the operation which do not give exchange securities, as well as the 
! SIP ordinary shares issued against toe requests to exercise the 


number of SIP ordinary shares issued against toe requests to exercise the “SIP 1991 - 1994“ Warrants received in toe meantime 

Furthermore, with effect from the operation of the civil law aspects of toe merger, Articles 1 (Denomination) and 4 (Object) of the by laws have 
been modified in relation to the creation of a single management, as well as Article 5 (Capital) in relation to toe increase of the capital for toe merger. 

The Meeting saw to the nomination of toe members of toe Board of Directors and Auditors for toe three year period 1994 - 1996; the President of 
toe Board of Auditors is Prof. Ugo La Cava. 

The Board of Directors, which met later the same day. named Dotl Ernesto Pascale President and Managing Director, Aw. Filippo Gagliano Vice 
President and Dott. Francesco Chirichigno, Ing, Vito Gamberale and DoiL Tomaso Tommasi di Vignano General Managers. Dott Francesco 
Righetti was nominated Secretary to the Board of Directors. 


MEETING OF HOLDERS OF SAVINGS SHARES OF 20 MAY 1994 

On 20 May 1994 in Turin toe third call of toe Meeting of holders of savings shares was held. 

The above mentioned Meeting approved the resolutions of toe extraordinary SIP Shareholders'Meeting of 19 May 1994 for the merger of IRITEL 
ITALCABLE, SIRM and TELESPAZIO with SIP. 


PAYMENT OF 1993 COMPANY DIVIDEND 

In order to implement the resolutions of toe meeting the 1993 company dividend. In the previously indicated entity, before deductions, will be 


m uraer ro impiemcm me lesuiuuuns ui me meeung me company aiviaena, in tne previously indicated entity, oetore deductions. Will be 
payable from 16 June 1994 at toe Company branches in TUrln (Via San Dalmazxo, 15) and in Rome (Via Flaminia, 189), at toe authorised branches 
listed in the Notice of Shareholders’ Meeting, as well as through Monte Titoli S.p.A. for toe shares it administers. The payment will be made, both 
for ordinary and savings shares, against presentation of voucher no. 7. 


NOTICE TO HOLDERS OF “SIP 1991 - 1994” WARRANTS 

Notice is hereby given to holders of "SIP 1991 - 1994” Warrants that from toe 17 June 1994 the right to exercise the warrants, temporarily 
suspended from 7 April according to Article 2 last paragraph of toe relative regulation, will again be possible. 

This notice is published in accordance with CONSOB decree no. 5553 of 14 November 1991. 





cp a promt 


Atkins falls 
£ 252,000 
into the red 


Atkins Group, the Leic- 
estershire-based hosiery manu- 
facturer, swung from profits of 
£448.000 to losses of £252,000 
pre-tax for the 12 months to 
April 2. 

The directors warned in Feb- 
ruary that the year-end results 
would be substantially lower 
because of a sharp slowdown 
in trading during the final 
quarto. 

They said yesterday that the 
net costs of terminating the 
fabric operations, amounting 
to £298300, were an important 
factor. 

Turnover improved from 
£l73m to £l9.lm, with the final 
three months generating only 
L5 per cent of growth. 

Losses per share emerged at 
6.6p (earrings 9-81p). However, 
the final dividend is main- 
tained at 4_25p, making an 8-lp 
(735p) total 

Capital expenditure of 
£1.16m pushed year-end gear- 
ing up from 15 per cent to 38 
per cent 


Tunstall ahead 
to £3.28m and 
seeks expansion 


By David Btockweti 


Tunstall Group, m ar k e t leader 
in emergency communication 
systems for the elderly, raised 
pre-tax profits from £3,t7m to 
£338oi In the six months to 
end-MarCh. 

Turnover increased from 
£22.2m to £233a>. including 
£658300 from the Dutch subsid- 
iary acquired last October, 
which contributed £84,000 to 
profit. 

Describing the results as 
"extremely good", Mr Michael 
Dawson, chairman, said pros- 
pects for the full year were 
encouraging with the order 
book tor the core business 17 
per cent up the same period 
last year. 

The group, which also makes 
security systems and has a 
contract electronics manufac- 
turing arm. increased direct 
exports from the UK by 42 per 
cent to £i.7m. 

The total overseas contribu- 
tion to sales eased to £&4m. 


Archer still affected by 
problems at Lloyd’s 


The problems of Lloyd's of 
London continued to adversely 
affect the results of Archer 
Group Holdings, one of two 
agencies at the market which 
have a toll stock exchange list- 
ing, writes Richard tapper. 

Archer, which administers 15 
syndicates and is the fourth 
largest managing agency, yes- 
terday reported pre-tax losses 
of £430300. compared with a 
restated £550,000, for the six 
months to March 3L 

Profit commission earned by 
the agency in the 1991 year 
amounted to £Llm (restated 
£L4m) but were not received 
by the group until after the 
end of March. 

Lloyd's, which reports Its 
results three years in arrears, 
earlier fids month announced 
losses of £2.05bn tor the 1991 
year. 


Agency toes - earned during 
the reporting period - fell to 
£1.9m (£2 .5m). Despite an 
increase in capacity managed, 
toes were reduced from 0.8 per 
cent to 05 per cent of Names' 
capacity. 

Bxpenses rose to £437m 
(£3. 77m), while underwriting 
agency operating losses 
amounted to £491,000 
(£713.000), Insurance services 
suffered operating lasses of 
£64,000 (profit of £18,000). 

Mr Bryan Kellett. chairman, 
said that prospects tor the 1992 
and 1993 underwriting years, 
the results of which Lloyd's 
will report in the next two 
years, were Improving. 

Losses per share were lp 
(L3p) but the group said it was 
maintaining the interim divi- 
dend at 0.5p in recognition of 
improving fortunes. 


Acatos up 9% despite 
squeeze on margins 


By David Btacfcweti 


A rise of more than 50 per cent 
in fiie average price of edible 
oils over the last 18 months 
has put increasing pressure on 
margins at Acatos & Hutche- 
son, fiie edible oils and fats 
manufacturing group. 

For the six months to April 
3 the group achieved a 9 per 
cent rise In pre-tax profits to 
£5.59m (£5.14m) on turnover 
ahead 17 per emit at £123. Im 
(£105m). 

The hulk of the group’s busi- 
ness lies in supplying own 
brand oils and tots to UK 
supermarkets. Mr Ian Hutche- 
son, rhairman, said the insis- 
tence of some of the group’s 
customers that prices should 
be held “in the face of 
unavoidable cost increases 
reached a level of unreaHsm 
we have not previously experi- 
enced”. 

Nevertheless, Acatos had 
managed to maintain its 


market share. 

Earnings per share rose to 
11.4p (I0.4p). The interim divi- 
dend is lilted to 3JSp (Sp). 

Last November the group 
announced that It would be 
closing its edible oils refinery 
at Bootle, Merseyside. Yester- 
day the group said that the 
250-stroog workforce had been 
guaranteed employment to the 
end of December, and would 
work on dismantling and 
decommissioning the plant 
when it shuts later this year. 

Mr Hutcheson said that the 
full benefit of the closure 
would not be felt until the 
next financial year. 

Meanwhile, a planned recon- 
struction OT the shareholding 
of Acatos limited in the com- 
pany has been put on hold. 
Acatos limited is private and 
owns the shares previously 
held by Mr Hutcheson, his 
family and other parties, 
which comprise 37.1 per cent 
of the ordinary capital 


The Exploration Company p.l.c. 

Investment gains 
in a difficult year 



<& 


Michael Woodbine Parish 

Chairman mi Muno/)ing Director 


Group assets 1993, taking investments at market 
value, were £40.2 10,012 (equal to 336. 10p per stock 
unit) against £30,588,772 (233.78p per stock unit) the 
previous year. This compares with £107,26 1 when I took 
over in 1950. £1,000 invested m that year is now worth 
some £300,000 and that is after paying dividends and 
taxes in excess of £19 million over the period. 

Stockholders will know there have recently been 
foils in all worm markets, and rises- in UK taxes, and 
prudence demands a reduction in this year’s dividend. 
However, over the last 36 years 1 have been able to pay 
the dividend out of the current year’s income without 
touching accumulated profits, and even this year have 
almost succeeded, leaving undistributed profits of. £11 
million. This Is quite apart from the potential unrealised 
profits of some £18 million. 

Finally, much of the 1 00 -year history of your 
Company and the El Oro Company is included in “Aegean 
Adventures 1940-1943 and die end of Churchill’s ’ 


Dream" published by the Book Guild. 99 



The Eftploruion Company p.I.C.. *M OwwnJ Plw. LwhIoo sw? l|!W 


•IL'd 




hold back by tough trading 

conditions la Genniuiy, 

The profit also included 
£63,000 from as a odate s - distri- 
bution companies in Spain, 
Norway and Australia where 
the group sees significant 

opportunities tor expansion. 

Capital expenditure at £2L6m 
equalled last year and is expec- 
ted to have doubled by the end 
of 1991 

Mr Dawson said that by the 
end of 1996 the contract elec- 
tronics dl virion, known as 
Mion, would employ 600 people 
and contribute jasat to group 
turnover. 

The damages case against 
Anchor Line over the 1988 
acquisition of Tann-Synchren- 
ome begins next mouth. Legal 
costs, which by fixe end of 
March amounted to £454300, 
have been written off as 
incurred. 

Earnings per share rose from 
6.6p to 7p. The interim divi- 
dend Is raised from L2Sp to 
1-SSp. 


fi 


! - * • 
; . v ' ' 



-»r-. 
' v i , • • 





*11 


* 


\ 







FINANCIAL TIMES FRIDAY MAY 27 1994 



27 


COMPANY NEWS: UK 


Second half recovery cheers market but company remains cautious 

Macdonald Martin rises 14% 


By Graham Detier 

Macdonald Martin Distilleries, 
best known for Qemnorangie 
single malt whisky, staged a 
smart recovery In its second 
half, helped by a strong perfor- 
mance in international mar- 
kets. 

After recording a 20 per 
decline in profits before tax at 
tiie interim stage, the Edin- 
burgh-baaed group rallied to 
show a net 14 per cent 
improvement, from £13Sm to 
SAJjRm, during the 12 wnrifts 
to March 3L 

The A shares rose by 35p to 
48Qp. • 


Despite the improvement, Mr 
Neil' McKerrow, TnaTiag^ py 
director, remained circumspect 
on prospects: “We are expect- 
ing another tough, difficult 
year with surplus stocks and 
no improvement in prices.” He 
was hopefu l, however, of fur- 
ther growth in the' malt mar- 
ket 

Overseas sales of Glenmo- 
rangia increased by 30 per 
to value last year, with North 
America and northern Europe 
showing good growth. The 
smaller Gten Moray brand also 
improved to most European . 
markets and to the HE duty- 
free sector. 


Sales of blended products 
were particularly strong dur- 
ing the fourth quarter, with 
the US and Venezuela ■perform- 
ing well, he added. 

Increased bulk contract sales 
made a sizeable contribution to 
a 22 per cent expansion in 
group turnover, up from 
£24J2m to £29£m, albeit at 
reduced margins. The effect at 
the pre-tax Una, however, was 
offset by a £6324)00 writeoff for 
unutilised capacity, reflecting; 
continuing lower production 
levels at the malt distiBerlea. 

Capacity was running at 44 
per cart, but should Imp rove to 
68 per cent during the current 


year, Mr McKerrow said. 

Crabbie’s, the green ginger 
wine brand acquired to Octo- 
ber from United Distillers for 
some £21m, increased -sales by 
6 per cent in a stable market 
and maria a gmall contribution 
to profits. 

The year finished with 
reduced gearing of 27 par cent 
down from so per cent at end- 
March 1983. ■ ■ 

Helped by a more normal tax 
charge, earnings per A share 
improved by 20 per cent to 
24.479 CaOJBp). The total distri- 
bution goes up 10 per cent, 
from 0-8p to 9.68p, via a pro- 
posed final of 7.4i4p. 


ACT sale severs link with hardware 


iT MiH affect 
,,,s Uoif, 


By Alan Cana 

ACT Group, the Birmingham-based' 
computing services company, yesterday 
continued its programme of ifig pyaic with 
the sale of its computer maintenance and 
systems integration arms. 

The disposal marks ACT’S -final retreat 
from any involvement in the «wnp u tw 
hardware business, following the seV of 


its Apricot workstation business to Mitsu- 
bishi of Japan three years ago. 

ACT Computer Support mid ACT Net- 
work Si, have been sold for £14L5m cash, 
implying an exit p/e of about 7. to a new 
company involving the management of 
Computer Support together with Nat West 
Ventures Investments arid. Phildrew Ven- 
tures Third Fund. 

The two companies made pre-tax profits 


of about £3Jim in the year to March 31, but 
operating profitability has been tailing 
sharply- Assuming c urren t interest rates, 
earnings this year will be diluted by about 
lp a share. ACT said. 

The new company will be called Net- 
work Si Group and will be run by Mr 
Simon Hunt, chairman, and Mr Wflham 
Bayly, recruited from Cray Communica- 
tions. 


HunterPrint tumbles 
£ 1.42m into deficit 


•r. 


Hunter Print, the specialist 
printing group, reported pre- 
tax losses of £1.42m for the 
half year to March 31, com- 
pared with profits of £380,000. 

The preference share divi- 
dend Is again being omitted 
because of the negative reve- 
nue reserve. 

The company said there had 
been unexpected cost overruns 
in the first quarto* associated 
with the launch of five new 
titles and the bedding down of 
three new presses. 


; Southncws 
• advances 
to £1.71m 

■ ' Southnews, the London 

UC \ regional newspaper publisher, 
V turned* ih^pre^taxproflts of 
' . ELTlm on turnover o £ £16 3m 
*r0’lp\ for the year to April 2. 

* 1 C i% The outcome compared with 
a profit of £L58m - including a 
£364,000 exceptional gain on 
- the sale of Sussex County 

• - - Press - from turnover of 

• * • E13.9m previously. 

'■ : Operating profit,' tneindtng a 

• • 1 first "year contribution of 

• '■ £144,000 from acquisitions, was 

i ■ ' - £1.75m (£L2Im). 

v v. Earnings per share came out 
: v v; at 7.6%> (6.59p) and a final divi- 
rr ' Send of 2p makes a 235p (JUp) 
i • -rn : totaL 
— • 1 

V;.' Process takes 
Gieves to £138m 

. Further progress in the second 
half at Gieves- Group resulted 


A cost reduction pro gramm e 
had been introduced in the 
second quarter. 

Turnover slipped from 
£26. 6m to £26.1m and net 
interest charges rose to 
£767,000 (£570,000). 

Retained losses amounted to 
£U$lm (£295,000 profits) and 
losses per share were 2.6p 
(0.76p earnings). 

The company said its cur- 
rent trading profile would in 
future reduce the group's reli- 
ance on the 1 first quarter. 


to pretax profits of £LS8m to 
the year to January 31, against 
a £5.07m loss last time. 

The directors of the retailer, 
licensor and publisher, have 
resumed dividend payments at . 
lp. 

Earnings per share were 62p 
(35.6p losses). 

Turnover .- of , continuing 
operations Tose from' £l7.lm • 
(restated under FRS3) to 
n&lm. 

The results contained a sum 
of £630,000 representing the . 
release of part af a provision 
no longer required. 

Yesterday, the shares added 
3p to 66p. 

Betterware chiefs 
remuneration cot 

Mr Andrew Cohen, Better- 
ware's chief executive, saw his 
total remuneration drop from 
£354^71 to £190342 to tile year 
to February 2& 

The 46 per cent redaction 
mainly reflected a sharp cut in 
performance related pay which 
fell from £124300 to £16,408. 
Performance related pay is 


Merchant Retail £4.8m 
in red after provisions 


Merchant Retail Group 
announced losses before tax of 
£433m in the year ended April 
2, after the expected £&5m pro- 
vision for redundancy costs 
and stock and equipment 
write-downs at the Normans 
food subsidiary. 

Mr Eric Kinder, niw <rmm of 
the retailing group, said the 
food division had been through 
Its most difficult year ever. 
Sales fell by £5mto am 

Group sales, excluding VAT, 
declined to £167.1m. against 


based on the earnings perfor- 
mance of thecompany. 

Mr Cohen's basic pay and 
benefits increased by 10 per 
cent to £143,458 (£130,484), but 
bis pension benefits fell from 
£99387 to £3L075. 


£L69.7m when there were pre- 
tax profits of £L8m. 

A valuation of group proper- 
ties has, as foreshadowed, 
resulted in a fall by £83m to 
gss.gm 

Gearing rose to 69 per cent at 
the year wwri , aminriing charge 
card debt of of £4.76m. 

Losses per share were 631p 
(0.84p). As distributable 
reserves have now been elimi- 
nated it is not possible to pay a 
dividend. A total of 0J96p was 
paid to the previous year. ■- 


Brewin 
Dolphin to 
float with 
£31m tag 

By David Wlghton 

Brewin Dolphin, one of the 
UK's largest private client 
stockbrokers, will be valued at 
£30 3m when it joins foe stock 
market next month. 

Mr John w«ll , managing 
director, said the placing price 
of L50p had been cot by 10 per 
cent over the past couple of 
weeks reflecting the toll in 
share prices and the difficult 
new Issnes market 

The placing price represents 
nine times earnings to the 
year to December 10, before 
exceptional costs, while the 
notional yield is 43 per cent 
Shares to the closest compara- 
ble quoted company, BWD 
Securities, trade on an historic 
multiple of 103 with a yield of 
43 per cent 

The placing will raise £5.7m 
net for the company, most of 
which win be used to repay 
borrowings outstanding from 
the management buy-out In 
1992 and the acquisition of 
Bell Lawrie last year. 

The flotation comprises a 
placing of 738m shares by 
Charterhouse of which some 
2m are being placed with Bre- 
win Dolphin’s own private cli- 
ents. Employees are retaining 
over 85 per cent of their exist- 
ing shareholdings and will 
own. 58.9 per cent of the 
enlarged equity. 

Dealings start on June 9. 


Enterprise shareholders 
support bid for Lasmo 


By Peggy Hoffinger 

The controversial strategy of 
Mr Graham Hearne, ch* drman 
and chief executive of Enter- 
prise Oil, was vindicated by 
shareholders yesterday as they 
voted overwhelmingly to sup- 
port of his £L3hn hostile bid 
for Lasmo, the rival oil 
explorer, at an extraordinary 
meeting in London. 

Mr Hearne, who has been 
criticised over the logic of the 
all-paper bid and accused of 
megalomania, departed from 
his prepared text to thank 
investors after the vote. It Is 
nice to know our shareholders 
are behind us," he said. 

Enterprise arrived at the 
meeting armed with proxies 
representing substantially 
more than 50 per cent of the 
total equity base. Of those, 99 
per cent had voted to favour of 
the bid, said Mr Hearne. 

Investors made it dear, how- 
ever, that it was the all-paper 
hid as it currently stands 
which they backed. "I would 
hate to see Enterprise stump- 
ing up another 10 per cent in 
cash," one private shareholder 
remarked. 

Mr Hearne said he stood by 
the package on offer, which 
combines Enterprise A shares 

and w a rrant s - although the 
board would have to retain 
some flexibility. 

It has been widely speculated 
that Enterprise would, have to 
revise its offer to win over 
Tjirnno investors, particularly 



Cfraham Hearne: departed from prepared text to thank investors 


as its shares have fallen from 
445p to yesterday's 4QXp since 
the bid was launched. 

Enterprise has several 
options - from Introducing 
some form of cadi which could 
be unpopular with Its owp 
shareholders, to revising the 
paper offer in the light of its 
own weaker price to bring the 
value of the bid back up to 
150p a share. 

The EGM. lasted less than 30 
minutes, with investors 
choosing to ignore Lasmo’s 


attempts at calling their com- 
pany's accounting practices 
tntn question. 

Mr Hearne was not content 
to let the matter lie, however. 
“Lasmo is trying to defend 
itself by publishing a series of 
Increasingly tall stories 
designed to distract share- 
holders from the issues," he 
said. 

Enterprise remained con- 
vinced that the deal would, 
bring value to both sets of 
shareholders. 


Cranswick ahead at year end with £2.33m 


Despite a toll at the interim stage, 
Cranswick, the integrated supplier of 
grain, toed, livestock and meat products, 
reported record pre-tax profits of £233m 
for the year to March 31, compared with 

gg.gm 

Mr Jim Bloom, ehaiymiim, ^ the cur- 


rent year had also started well with sales 
of pig feed and bird food ahead of last 
year. The improved performance from pig 
rearing activities had continued and pig 
marketing volumes were ahead of last 
year. 

Although turnover declined to £1063m 


(£1 09.6m) operating profits rose to £235m 
(£232m) Including £499,000 from acquisi- 
tions. Net interest charges were sharply 
down at £17300 (£118.000). 

A proposed final dividend of 535p (5.6p) 
lifts the total to 825p (8p), payable from 
earnings of 12p (133p) per share. 


NEWS DIGEST 


Revenue 

Fleming 1 



Flaming High -Income Invest- 
ment Trust reported lower net 
revenue of £L52m in the 
year to April 80, against 
£L94m. 

Earnings per share were 
4.7p, against 6.18p, and the 
fourth interim dividend is cut 
to lJp (L4Sp) for a total of 4.4p 
(5-8p). 

Net asset value per share at 
the end of the period was lOlp, 
against 94.1p a year earlier. 

Raglan Property 
£1.6m in black 

Following a return to profit in 
the first half with £99300, Rag- 
lan Property Trust, the prop- 
erty dealing, development and 


investment concern, finished 
the year to end-March with 
£L58m pre-tax. compared with 
£2.44m losses. 

Raglan has undergone a 
“complete financial and man- 
agement reorganisation” dur- 
ing the year which produced 
"good results”, the directors 
stated. 

Earnings per share were 
2.73p, against losses of £29.15p, 
while the directors said 
that again there is no 
dividend. 

EIS to acquire 
ABPH for £2.5m 

EIS Group, the specialist engi- 
neer, hag agreed conditionally 
to acquire ABPH for an aggre- 
gate consideration of ELSm, to 
he satisfied ertha f fn naqh nr rn 

new EIS ordinary shares. 

ABPH designs and manufac- 
tures electronic and electro-me- 
chanical products mainly for 
defence and postal automation 
uses. 

Investors holding about 9839 
per cert of the ABPH voting 
rights have accepted the offer 


and elected for the shar e alter- 
native. 

The number of shares to be 
issued has been calculated on 
the basis of the dosing price of 
405p on May 23. 

Five acquisitions underpin- 
ned the EIS results for 1993, 
when pre-tax profits rose to 
£163m (£15Jm). 

Scottish Investment 
asset value 276.6p 

Scottish Investment Trust’s 
net asset value per share 
declined slightly from 280p to 
2T63p over the six months to 
April 30. However, it was 143 
per cent ahead of the 240.7p 
value a year ago. 

Available revenue for the six 
months to end-Aprfl was £5.7m 
(£5.6m) for earnings per share 
of 224p (32p). The interim divi- 
dend is stepped up to 1.76p 
OLTp). 

London Smaller net 
assets advance 

London Smaller Companies 


Investment Trust reported net 
asset value per share of I04.4p 
at March 31, against 87p a year 
earlier. 

Net revenue for the year to 
the end of March was £L48m 
(£l32zn) for earnings per share 
of 335p (3-33p). 

A final dividend of 239p is 
proposed for a total of 3.17p 
(3.07p). 

Parkside Inti 
achieves £1.8m 

Parkside International, the 
Yorkshire-based packaging 
group which gained a stock 
market quote in February fids 
year, reported pre-tax profits of 
£1.82m for the 12 months to 
end-February. 

The outcome was struck on 
turnover of £30 Jm - including 
£971.000 from discontinued 
operations - and compared 
with profits of fl-fim on turn- 
over of £243m last time. The 
1992-93 figure included £S.04m 
from discontinued operations. 

Earnings per share, follow- 
ing the capital reorganisation 
on flotation, emerged at 79p 


(8-lp). With flotation ooinci> 
ding with the year end the first 
dividend to be paid would be 
the interim for the year ending 
February 28 1995. 

Glencar losses 
deepen to I£0.49m 

Increased pre-tax losses of 
1£490,502 (£482,000) were 

announced for Glencar Explo- 
rations, the Dublin-based min- 
eral exploration company, for 
the year to December 31. to 
1992 losses were *£271,801. 

The loss was after excep- 
tional charges of 1£419,871 
(12212,474) comprising a 
l£309,000 write-down of the 
investment in Andaman 
Resources and a 1000,000 pro- 
vision relating to the Hungar- 
ian uranium mine. The balance 
relates to exploration expendi- 
tures written off. 

Govett High Income 
revenue at £1.67m 

Govett High Income Invest- 
ment Trust reported net reve- 


nue of £l.67m to its first five 
months of trading to April 30. 
Earning s per share were 3.49p 
and an interim dividend of 
238p is declared. 

to future dividends will be 
paid Quarterly with two more 
payments for the u months to 
end-October. 

Net asset value at April 30 
was 8938p or 91J5p on a fully 
dilated basis. 

Martin Currie Euro 
above benchmark 

Martin Currie European 
Investment Trust reported a 
381 per cent Increase in net 
asset value during toe year to 
April 30 against a 27 A per cent 
gain by the benchmark FT-A 
Europe (Ex UK) Index. 

The figures were 127.74p 
(92.46p) basic or 123 J3p (98.72p) 
folly diluted. 

Net revenue for the year to 
end-April was £105,000 
(£152,000) for earnings per 
share of 0.46p (0.66p). An 
unchanged single final divi- 
dend of 029p is being recom- 
mended. 


.|A‘ 


Ilf ililiN* 
till . u ‘‘ 11 


INTERSHARE 

Soc&d dlnvastfssamant A Capital Variable h compartment* muWptes 
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RC Luxembourg B 37.028 

Puteque h quorum rvqute par la Id n’a pas AtA attaint A rosaembJAa gAndrala 
extraordinaire des actionnahns cfcj 16 mai 1894, las aettonnafras da 
INTERSHARE. SICAV sent prIAs. par la prAwnt avis, cTssststar A la DEU30EME 
ASSEMBLEE GENEHALE EXTRAORDINAIRE DES ACTTONNA1RES qii B8 
tiandra par devam notalw la 30 Juln 1894 A 15.00 haunts au slAga social. 47. 
Boulevard Royal. Luxembourg, afin da dASbAfW Bur I'ordrs du jour sutvarrt: 
ORDRE DU JOUR 

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2. Nomination da hie Aiex SCHMITT avoaB^WXtA, demeurant i Luxsmbours, 
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FINANCIAL TIMES FRIDAY MAY 27 IM 4 


COMMODITIES AND AGRICULTURE 


Coffee futures sell-off 


RTZ narrows Anglo’s lead in mining league 


extended to $400 a tonne 


By Deborah Hargreaves 

The coffee market kept up its 
recent sell-off yesterday as 
prices for the July futures con- 
tract at the London Commod- 
ity E xc han ge plunged by $175 
to $2,032 a tonne. 

Prices had recovered slightly 
from a $200 drop at one stage 
in the day, bat with hedge 
foods baUfog out of the mar- 
ket, the price could foil further. 
It has slipped by over $400 in 
the past two days. 

Tbe presence of forge finan- 
cial investors and speculators 


in the coffee market has exag- 
gerated the dramatic increase 
in prices over the past couple 
of months and this could now 
work in reverse with prices 
slipping quickly. 

However, fire coffee market 
r emains well above its Febru- 
ary level of $1,200 a tonne and 
traders do not believe it will 
give up all of its gains as sup- 
plies are still tight. 

“It’s a healthy correction to 
what had become an over- 
heated market,'’ one trader 
commented. Some analysts do 
not role out a r e turn to higher 


prices once the market draws 
breath. Coffee stocks remain 
low, they point out. 

Fresh coffee supplies are tak- 
ing a longtime to get on to the 
market with roasters holding 
on to stocks and new coffee 
deliveries being hat«lc in 
anticipation of higher prices. 
Traders reported some disrup- 
tion to the new Indonesian 
crop reaching the market 

The cocoa market was 
affected by the fall-out from 
coffee and the July futures 
price dropped by another £14 to 
L010 a tonne. 


Soya mayhem bemuses analysts 


By Laurie Morse In Chicago 

After last summer’s 
devastating US floods, world 
grain traders are used to 
weather stirring up the grain 
futures markets. However, the 
mayhem it has wrought on 
soyabean prices this is unusual 
because the crop is only Just 
planted and will not be particu- 
larly weather-sensitive for sev- 
eral weeks. 

Prices for soyabean futures 
at the Chicago Board of Trade 
climbed 75 cents per bushel in 
the six trading days aiding 
Monday, easily topping $7 per 
bushel for delivery this sum- 
mer, and approaching that 
level for new harvest delivery. 
Traders bought soyabean con- 
tracts thinking dryness in the 
northern plains would inhibit 
germination in newly-planted 
seeds. Weather forecasters 
fueled bullish speculation by 
predicting a long-term weather 
pattern would keep crop areas 
dry. 

Then, on Monday afternoon 


rains began to foil in Iowa, 
Ohio, and Illinois , flushing frhn 
bulls out of the soyabean 
futures pits. In a heavy-volume 
rout on Tuesday and Wednes- 
day, prices skidded more than 
54 cwifs a bushel, forcing the 
Chicago Board of Trade to 
pypanii its Utwita on daily price 
declines. In trading yester- 
day the prompt July position 
was down another 5% cents at 
$&69% a busheL 

Agronomists are bemused by 
the market’s rollercoaster ride, 
noting that Us crop conditions 
are nearly as ideal today as in 
1992, when the US had a bin- 
busting record maize harvest 
and excellent soyabean yields. 
Last season’s rains left ample 
subsoil moisture in most areas 
and warm dry weather this 
spring allowed early seedings 
and hence a longer growing 
season. 

Analysts say two factor are 
contributing to the volatility of 
Chicago grain markets. Firstly, 
year’s small harvest has 
left very little room for error in 


this season’s crop - grain pro- 
cessors and ex por t ers will lave 
very cushion if thig year’s 
harvest is delayed or smaller 
than forecast Secondly, insti- 
tutional investors who histori- 
cally have scorned commodity 
markets have discovered their 
use as inflation hedges just as 
internal roles at the commodi- 
ties exchanges have been 
adjusted to permit much larger 
speculative investments. 

At the Chicago Board of 
Trade for example, a single 
speculator can now control as 
many as 30m bushels of mair» 
anH aim bushels of soyabeans, 
twice the size allowable just 
two months ago. 

With the stakes higher, grain 
markets have entered the 
world of high finance, and 
deep-pocketed fund managers 
are throwing their bets into 
the soyabean ring with unprec- 
edented vigor. The result, trad- 
ers say, is exaggerated daily 
price moves that don’t always 
reflect the long-term funda- 
mentals of the crop. 


MARKET REPORT 

LME copper prices finish near day’s lows 

Late liquidation in t he Lo ndon that the market finished near NICKEL prices fluctuated in 
Metal Exchang e COPPER mar- its lows. a lower range as the market 

ket set off same stop-loss sell- The three months price fin- continued to re-trace from 
mg in the final minutes of after ished the kerb session at $2^237 recent highs, 
hours “kerb” trading, ensuring a tonne, down $38. Compiled from Renter 


By Kenneth Gotxfing, 

Mining Correspondent 

Anglo American Corporation 
of South Africa is stffl file 
world's most important raining 
company but RTZ Corporation 
of the UK, in second place, is 
closing the gap between them. 

This becomes dear from the 
latest Who Owns Who in Min- 
ing, which also shows that Bro- 
ken Hill Proprietary, Austra- 
lia's biggest company, and 
Freeport McMaRan of the US 
are among the fastest growing 
tag mining companies. 

The Raw Materials Group of 
Sweden, which com piled the 
data, admits that RTZ can 
Haim to be the world's largest 
mining company using many 
other criteria. 

However, RMG draws up its 
league table by reference to the 


value of son-fuels minerals 
production controlled by each 
company. This method of 
assessment naturally gives 
most weight to production of 
high-value metals and miner- 
als such as gold and diamonds. 
Not only is Anglo the world's 
biggest gold producer, RMG 
also counts De Bees, one of 
the world's big diamond pro- 
ducers, as an integral part of 
fiie Anglo group, not a sepa- 
rate «ining company, even 
thraigfr it is quote separately. 

Similarly, RTZ’s 49 per cent- 
owned associated in Australia. 
CRA, Is considered by RMG to 
be part of the UK group. 

BHP. which is 2990 
accounted for only 1.5 pa cent 
of non-fnel minerals produc- 
tion outside the former eastern 
bloc countries, now has £5 per- 
cent, mainly because of its 


huge step-up in copper produc- 
tion caused by its partly-owned 
Escosdida mine In Chile. Free- 
port has moved up from 17th in 
the 1991 league table to 7th 
because of progressively 
increased output from its cop- 
per-gold mine in I ndo n es i a. 

Meanwhile, problems in the 
African copper belt, where 
there has been a lack of capital 
for investment for many years, 
saw Zaire drop from 14th to 
2Sth position and its share of 
output from l.l to 0.7 per cent 

RMG points out that, in con- 
trast. some of the world’s most 
successful raining companies 
are state-controlled. 

Who Owns Who in iSarno 1994: 
£350 or OStSlO and RoskiU‘s 
Meted Databook 2994 £ 190 or 
$420 from RoskiU Information 
Services, 2 Ckrpham Rood, Lon- 
don SW9 OJA, UK 


TOP MMkM at 1MH 


trsnkted by sham of totnf vaduw or * 

NKtom mporfif 

wfrste 

production of wfr-ftiel 


Company or atate 

Oowttry 

abate 

(IMS ranUnge in bnKStats) 


W 

1. Anglo American Corporation (1) 

South Afttoa 

7.7 

2. RTZ Corporation ffj 

UK 

5.2 

3. State ot Breal (4) 


3.3 

4. taken Htt Proprietary (3} 

AkSkAKA 

2.3 

5. State of CMe (31 


23 

8. Genocr(i2) 

South Atrt* 

1.fi 

7. rraapon McMoftan p7) 

- us 

M 

8. imeera {IQ 

ua 

1 A 

9. loco (6) 

Ccntede ' 

U 

10. Breecan/Noranrie (7J 

Canada 

1.3 

11. MtM HokSngs {8) 

AutenMi 

t.3 

12. State of Moreooo (19) 


15 

13. State of France (11) 


IJt 

14. Aearco (IQ 

US 

12 

15. Phefae Dodge Corporation (Q 

US 

1.1 

IB. State (ri Mdeysta (18) 


1.1 

17. Placer Dome (15) 

Canada 

iJ) 

Sdwsk AmNB Moekn SweMe 


Chilean copper saga ends as El Abra bid is accepted 


By David PHBng In Santiago 

T.nr>g a jif 1 painful negotiations 
for 51 per cent of Chile’s El 
Abra copper deposit came to a 
close yesterday when Codeko, 
the state copper company, 
accepted a revised offer of 
$33Qm fr om Cyprus Viiwat* of 
the US. 

Cyprus has also agreed to 
lend the joint venture, to be 


called Soeledad Contractual 
Minna El Abra, and to 

gnamwtPi ftirthw hawk fimny-o 

of S698m to develop the deposit 
and construct an oxide-treat- 
ment pk»n* 

The original Cyprus offer, in 
with Canada's Lac 
Minerals, which pulled out in 
April, had been Cor $404m plus 
up to SlSlm in investment cap- 
ital. The lower price - and 


Lac’s withdrawal - came after 
discovery that the copper 
grade was 13.4 per cent lower 
than originally estimated. 

Bl Abra, which is scheduled 
to start operating in mid-1997. 
is nevertheless expected to pro- 
duce 225,000 tonnes of copper 
cathodes a year. 

The lower grade means pro- 
duction costs are expected to 
increase from 45 cents to 48 


cents a pound and the life of 
fiie mine to be reduced from 29 
years to 1& 

Mr VlUarcd, Codelco presi- 
dent, said a letter of intuit, to 
be accompanied by a guarantee 
for 10 per cent of the offer, 
would be signed soon. Final 
contracts would be concluded 
by June 30. 

Mr VUlarzd admitted that 
Codelco should have obtained 


a letter of intent when the first 
offer waa made, and that it had 
prematurely given the impres- 
sion that the deal was water- 
tight, 

Nevertheless, he stressed 
that Cotietoo had earned the 
Chilean treasury *330m plus a 
49 per cent stake in profits. In 
return Codelco would not need 
to Invest “a single peso", he 
said. 


Danes propose two-tier pricing system for EU milk 


By Deborah Hargreaves 

Dairy farmers in the European 
Union could produce some of 
their milk at world prices and 
then sell it outside the EU as a 
way of beating restrictions 
imposed by EU milk quotas, 
according to a suggestion by 
the Danish Dairy Federation. 

The federation made the pro- 
posal to the European Commis- 
sion in February, but is now 
working out details of fiie plan, 
which is yet to be debated by 
agriculture ministers. 

“We are still evaluating the 
pros and cans, but it would be 
a way of coping with the Gatt 
deal," said Mr Prebben Mikkel- 
sen, head of the federation's 


Pfnnnmirc department. 

The Danish proposals would 
operate a two-tier pricing sys- 
tem with fanners producing 
the bulk of their raiwr tinder an 
"A” quota for which they 
would receive high EU prices. 
But “B” quotas would also be 
available for formers who were 
able to produce a little extra 

railk at maiginai COSt for the 

export market 

Producers would be paid for 
fins “B" milk at world prices, 
which are up to a third lower 
than infernal EU prices. The 
system would also be volun- 
tary for producers who wanted 
to add a few cows to supple- 
ment their income. 

Mr Jens Jakob Jakobsen, a 


dairy former in northern Jut- 
land with 112 cows echoes the 
scepticism of other producers 
when he says he is not sure he 
would produce more milk 
under such a system. “We 
could take on more cows but it 
depends on the price: I 
wouldn't do it at prices less 
than a third of what we get 
now," he says. 

Many formas are also con- 
cerned that fiie system would 
be difficult to police and would 
lead to erosion of prices for the 
rest of their output. 

Denmark needs to secure its 
export markets as it produces 
three times store milk than it 
consumes. British formers are 
sceptical that such a scheme 


would benefit them when quo- 
tas restrict output to only 85 
per cent of the UK's needs. 

Overall, formers in the EU 
currently produce 4bn litres or 
4 per cent more milk than is 
consumed. Some of this finds 
its way into the manu&cture 
of dairy products and file ElTs 
intervention system: the con- 
troversial butter mountains. 

In addition, the EU pays a 
subsidy for dairy products to 
be exported outside the union. 
These subsidies must be cut 
under the terms of the Gatt 
settlement, making It hard for 
European exporters to retain 
overseas markets. 

Mr Finn Christiansen, execu- 
tive director of MD Foods, the 


large Danish dairy co-opera- 
tive, says fire two-tier system 
would be one way round the 
problem of losing part of the 
world market 

The SU has to cut subsidised 
cheese exports from a refer- 
ence tonnage of 407,000 tonnes 
to 306,000 tonnes by 2000. But 
Mr Christiansen says the prob- 
lem Is more serious and will 
hit cheese hardest as EU 
exports to third countries 
reached 480,000 tonnes last 
year so the cuts will be greater. 

Da addition, the EU must 
open up Its market to provide 
access for other dairy export- 
ing nations, meaning it must 
absorb another 105,000 tonnes 
of cheese. 


COMMODITIES PRICES 


BASE METALS 


LONDON METAL EXCHANGE 

(Prices from Amalgamated Meal Tracing} 

■ ALUKW&1M. 98J PUHtTY g pertonnft 


Coah 3 mtha 

Clow 13Z0-T f 350-1 

Previous 1338-9 1368-82 

Kghriaw 1323713212 136071347 

AM Official 1323-32 13502-51 

Kerb cto» 1354-5 

Open bL 254284 

Total defy turnover 47268 

■ ALUMINIUM ALLOY ($ per tome) 

Ctoae 

1340-60 

1345-50 

Previous 

1350-5 

1350-5 

Ugh/taw 


134571340 

AM oacu 

1350-6 

1345-50 

Kerb doss 


1340-5 

Open int 

3,443 


Total dafly turnover 

3® 


■ LEAD (S per tonne) 


Ck»e 

4772-82 

4852-62 

ftwtous 

483-4 

501-2 

| Irji/Lw 

rffdnriow 


50Q7482 

AM Ofllcfa 

474-5 

492-3 

Kerb dose 


486-7 

Open M. 

37,142 


Total dally turnover 

8239 


■ NICKEL (5 per tonne) 


Clow 

6385-80 

6480-65 

Previous 

64SO80 

6575-80 

UghAow 


6620/5390 

AM Ofltdal 

6340-42 

643540 

Kart) done 


8480-600 

Open Int 

57208 


Total dafly turnover 

9X06 


■ T*i (S per tonne) 



Ctoae 

5515-25 

5590-600 

Previous 

5645-55 

8825-35 

HfaMow 


5850/5660 

AM OflWaf 

5515-25 

5590-5 

Kart) doe* 


5810-20 

Open W. 

18.748 


Total daSy tumwor 

2^37 


■ 9NC, apodal high grade (S par toms) 

Close 

946-7 

971-12 

Previous 

952-3 

977-8 

HflWtow 

945IS442 

978/965 

AM OfllcM 

9442-45 

970-1 

Kerb done 


970-1 

Open rt 

103,179 


Total daly tunowr 

20205 


■ COPPSt, W*ria A (S par tomb 


Ctoae 

2235-7 

2246-7 

Previous 

2271+2 

2278-80 

l-figh/km 

2228 

227072235 

AM Official 

2227-8 

2240-1 

Kart) dose 


2236-7 

Open ft 

213,732 


Total daay turnover 

65.702 



m LME AM Official ztt raws 1.6099 
USE Poring US rate: 1-5113 


spsw-sni 3 «cwi ,6069 6nBwi son 9Ba®iJW3 


■ MQH CftADE COPPER (COMBQ 



Cteta 

tbyte 

etanga tfigh tear 

Opei 

tat 

Hot 

HW 

1BL30 

>120 10170 1QZJ0O 

1065 

94 

Jb 

102.10 

-1.40 1(0.10 102-00 

1J37B 

34 

Jot 

10220 

-130 10320 101X0 392S0 

MO 

tag 

101-66 

-120 10220 10220 

494 

12 

ara 

10120 

•120 10220 10020 

8270 

11 

oct 

Tata 

10020 

-120 

228 

tajm 

ijne 


PRECIOUS METALS 

■ LONDON BULLION MARKET 
(Prices suppled by N M HathcoMkQ 


□old (Troy col) 
One 
Opening 
Morning Ac 
Afternoon Ac 
Dev* Ugh 
Day's Low 
Previous ctoae 


? price Eeqftv. 

3815048490 
38650-38650 

385.9CO 2S5580 

384900 254828 

368.10-38650 
38250-38350 
3875038750 


Ux» Lcta Mean Quid Infcg Rates (Va US$) 

1 month . — __ — 401 6 months 444 

2 months 408 12 months a an 

3 months 416 


Spot 
3 months 
8 months 
lyeor 
OeMCch* 
Kfegonand 
AfaPteLwf 
N *'* r Sowa i el un 


p rtroy oz. 
38026 
38950 
3741 S 
385.10 
S price 
332-395 
335. OS-387 JG 
90-83 


US eta aqutv. 
551.16 
557.15 
56335 
57V. 10 
E equlv. 
280-263 

80-63 


Precious Metals continued 

■ GOLD COMEX (IPO TVoy oz^ SAmy taj 



. Salt 
grfco 


MB* 

OpB 

tear M VH. 


3832 

-22 

- 

- 70 70 

Jb 

3832 

-22 

3882 

3822 41,485 41.119 

M 

38SX 

-22 

• 

aw soo 

Are 

3872 

-22 

389.4 

3852 53.029 16264 

Oct 

3902 

-28 

3925 

3800 5223 180 

Dae 

Total 

3932 

-29 

3857 

3920 22X72 3.142 
180231 64225 


■ PLATINUM NYMEX (50 Troy 024 S^V 


GRAINS AND OIL SEEDS 

■ WHEAT USE (£ per tome) 

Sett Day's Open 

pka change Ugh Low tat Yol 

JM 11430 +02 11445 11400 629 <3 

Sep 9935 +020 520 

MW tamo - TOO 2 10900 TX40 ITS 

J»o • 1012 +01Q 102.15 102.15 126 42 

War 103.45 +015 - 357 

■ay 10535 - 10550 10535 206 41 

TOW 426 20 

U WHEAT CgT ROOObu ntac centa/BOto PuehaQ 


SOFTS 


■ COCOA LCE(g/tonoft 



SB 

Dwte 



Opea 

- 


Price i 


s>* 

Law 

tat 

M 

Vat 

965 

■»2 

980 

970 

is 

14 

Jb 

1010 

-14 

1021 

990 

20251 

2241 

S4P 

IQ2S 

-14 

1040 

tote 

15XT7 

ZX1I 

Dec 

1047 

-16 

1080 

1035 

252* 

1243 

Hv 

1066 

-18 

1079 

1058 

27,427 

655 

Hn 

1073 

-25 

1087 

1078 

10233 

295 

Total 




>12X63 

8217 


m COCOA CSCE (to tomWjS/toaiaal 


MEAT AND LIVESTOCK 

■ LIVE CATTLE CME HOOQOAg? oantaflba) 

Sett Bajte Open 

price cbwga H* Low let VB1 

JSe 63375 +0600 63375 62J00 

Aug 64325 +0500 6482S 83X05 

Oct 67450 +0500 67X50 SS.700 

Dee 68300 +0500 68300 6720 

Feh 69300 +0500 69300 67300 

Apr 71300 +0500 71300 88.400 

ISM 7720 2026 

m UVE HOGS CUE i*ajKQtos:<»tttanjn 


JM 

3872 

-72 

4035 

3942 17.082 

2.747 

Oct 

3005 

-72 

4062 

3982 4,104 

405 

Jb 

4012 

-7-5 

4052 

4032 1259 

2 


4015 

-72 

4062 

4020 1.066 

- 

Total 




23201 

3,154 


■ PALLADIUM NYMEX (100 Ttay S/lroy oej 


Jb 

13320 

-025 13420 

13320 968 

863 

Sep 

13425 

+aio 

13550 

134X5 3225 

847 

Dec 

13210 

+040 

13020 

13420 870 

27 

Mm 

135.10 

+040 

- 

- 6 

- 

TMai 




5.169 

1,737 

■ SB-Vet COMEX (100 Hoy at; Centa/boyceJ 

an 

S4S2 

-84 

5552 

5442 96 

04 

Are 

5452 

-85 

- 

- 3 

1 

Jul 

5472 

-85 

5572 

5412 85264 23214 

tap 

532.1 

-82 

5622 

5452 11254 

1.100 

Dec 

O 

-87 

5692 

5532 17,717 

1213 

Jb 

5812 

-87 

- 

32 

. 

TOW 




128271 2*2*4 


ENERGY 

■ CRUDE Ott. NYMEX (42X00 US pete. S/bsmt) 


Latest Dafe Open 

price etanga Mp lac kt U 

Jri 1734 -006 17.77 17JS911&QZ9 60.181 

Aog 17X0 -01 0 1735 1739 53300 23,478 

Sep 172 -006 17X1 172 31307 6,138 

Oct 172 -003 172 172 22381 2318 

Haw 172 +002 172 1734 14322 1,484 

Dee 17.18 -003 1737 17.19 29,668 3312 

ISM majsnmwt 


■ CRUDE Ott. IPS g/breral) 



Latest 

Daft 


Opta 



plea 

tetea 

■Igk 

lew tat 

9ft 

JU 

1811 

-021 

1622 

1624 62,443 18276 

W 

1804 

-023 

1814 

1620 37X32 

9274. 

Sep 

1620 

- 

1628 

1525 12,647 

751 

Oct 

1U6 

-tun 

1803 

1526 7J18 

225 

Her 

1894 

-023 

1800 

1521 5164 

176 

Me 

ism 

-025 

1801 

1922 8111 

660 

TaW 




136X08 31X07 

■ HEATMe Ott. NVIEX (42200 US 0*e;cAS gate) 


lew 

Dayte 


0pm 



price 

etanga 

HU 

Law tat 

9H 

Are 

4720 

+4LT7 

4805 

4720 20,131 

13204 

Jri 

4807 

+026 

4830 

4728 37X11 18205 

AW 

4820 

-0.13 

4885 

4020 14745 

3,413 

Sap 

4920 

-026 

4920 

4920 11723 

660 

0ft 

5020 

- 

- 

- 7211 

728 

fie* 

51.75 

+032 

51.75 

5175 5289 

344 

Total 




133X06 36X45 

■ OAS OIL PE (Sterne) 




sail 

uajrs 


OPB 



priee 

fttaaga 

«ft> 

law u 

Vat 

JB 

14875 

-020 15020 14920 28730 

<XG2 

Jri 

15090 

-020 13120 15020 Z0X11 

3.198 

Aog 

15220 

-025 153.00 15120 8728 

1.700 

tap 

15425 

- 

15475 

15320 6231 

1,173 

Oft 

15720 

- 

15725 15875 6X» 

360 

Itae 

1S920 

- 

15920 1382S 3352 

338 

TOW 




92X87 12264 


■ NATWAL QA8 NTMEX (10300 ranBta; SflnMAij 



ideal Days 


OPB 



price ctaaw 

tate 

Lore M 

Vft 

■M 

1X48 +8012 

1280 

1228 28806 12X90 

Aw 

1222 +0207 

1224 

1205 12X02 

7X27 

tap 

1269 -0204 

1275 

1255 12X40 

4X93 

Oct 

2DH +0204 

2251 

2240 9X38 

2X» 

finr 

8148 -0201 

2.160 

2.140 10,119 

1X5B 

Dec 

2268 +0204 

2265 

2255 14,155 

1,107 

TaW 



12X20 36X81 


■ UNLEADB) GASOLINE 
NTABC (42300 UB gel: bRIS gate) 




wye 

ctaage 

writ 

OPB 

Lew tat Va) 

Jb 

51J5 

-0-32 

51.75 

5175 181B7 15.790 

JBl 

5175 

-0X2 

62.05 

61.70 38X33 15252 

Aag 

5175 

-OIS 

8220 

51.70 16X77 4X10 

Sap 

51.16 

-822 

51X0 

51.15 10X27 631 

Oft 

4870 

- 

- 

- 3X96 783 

Mar 

TaW 

4865 

-022 

4820 

4470 4772 14 

92X19 33X06 


Jft 

321/6 

-ao 

3304} 

319/2 140X20 54.130 

Sep 

3Z7/0 

■V* 

33BD 

325/4 42.790 15X50 

Dec 

338 ft 

•8/4 

347/D 

336/4 00X55 25200 

Mar 

34145 

■4W 

350/4 

341/4 5X40 1205 

May 

33816 

•on 

• 

- 255 

Jft 

320A 

-4 to 

322/0 

316/0 815 20 

TaW 




291,175 90X06 

M MAIZE CBT (5200 bu min; cantafiOto buatMQ 

Jft 

26W 

-2B 

2662 

261/2606195 101.705 

tap 

2S9ID 

•2A 

281 JO 

255/8174X00 17X50 

Dae 

TSUI 

-2/4 

254/2 

248/2 435A65 106X10 

tar 

25615 

-2/4 

250/6 

250/4 47X90 5X55 

«fc» 

263D 

•2/2 

264/4 

2S1/D 5X15 600 

Jul 

264/4 

•2/2 

266/0 

262/0 13X35 1X00 

Total 




1J96M 295X50 

■ BARLEY LCE R per tonne) 


SB 

0670 

+030 

. 

- 170 

Nov 

100.15 

+025 10020 10000 280 23 

JB 

101XD 

+035 

• 

30 

■v 

102X5 

- 

- 

10 

May 

10425 

- 

- 

4 

Tftri 




494 23 

■ SOYABEANS CST CWXXteu raft ceftaffiOli Mhal) 

Jft 

072/2 

-2/5 

87V0 

8868313X50282.770 

Aog 

6700 

-2/2 

672/0 

663/4 76X70 25X40 

SB 

85318 

•212 

658/4 

647/0 43X60 11.775 

Nov 

641/0 

-2/0 

643/4 

634/0 2S1 230 129X75 

Jb 

645/2 

-2/4 

B4W6 

639/0 23.100 3.140 

Iter 

862W 

-0/4 

653/4 

648/0 9XCS 2X7D 

TaW 




766X60438X70 


■ SOYABEAN OU. GST (BOtoOtba; contaflb) 


Jft 

2774 

-0X4 

27X7 

27 A0 36X88 28X24 

fag 

2771 

- 

27X5 

27X0 15fl58 

6X62 

SB 

27X1 

-0X7 

27.75 

27.1 S 10794 

1741 

Oft 

25X0 

40.17 

27.10 

28X5 7X14 

1X03 

Doc 

26A2 

+0.10 

26XS 

2575 2DJH7 

9X68 

Jan 

26X5 

+0X0 

2SA0 

2530 2X41 

340 

Tftri 96X44 

M SOYABEAN MEAL CBT (100 tons; S/to* 

4*05 


Jte 1912 -05 1943 191.1 31390 17377 

Aog 1923 -0.4 1917 1917 16361 4363 

Sap 1912 -07 1923 1083 9356 3379 

Oct 1893 -1.0 1903 1073 5,707 39Z 

»«C 1673 -13 1683 1800 17379 4227 

1672 -12 189.7 1908 1,760 257 

T* - ajasa 31374 

M POTATOES LC£ (gnome) 

2503 I I I I 7 
aaa 

1040 

1272 - 1.7 1292 1272 701 16 

1400 

1073 

701 M 

■ PREK1HT (BOTSq LC6 (SlO/tadd pftrfi) 


Hay 

1474 

-6 

1480 

I486 

1X78 

18 

JMI 

1290 

-5 

1290 

1266 

765 

44 

Jri 

1208 

-B 

1215 

1205 

895 

71 

0ft 

1293 

-7 

1233 

1290 

364 

12 

Jb 

1318 

+8 

1320 

1320 

217 

2 

Apr 

Taw 

1346 

-3 

1348 

1345 

7B 

3J677 

2 

149 


Cteee Pro* 
6R 1475 MM 



Wool 

Australia’s main market Indicator Increased 
again this weak, riatag |uet 3 cents to 617 
cants a kg. a new record for the season, the 
small advance covered sharp rises affecting 
Briar mertaoe, ip by 20 to 40 canto, and a wMe 
range of amaO changes, Inducing redmtona 
far one or tan ooesbred categories. An erotic 
naricn Im protean b not unprece d en t ed b the 
Anal weeks of seQng season, which eonetudas 
in Austria at the end of June. Help ing to 
conflm mmI wool market confidence b ttte 
progress made In dspoatag at Auatrfttato large 
wool st ecfcpBe. From Jfty 1 Me w9 be ecu by 
fixed schedule, end « the deadline 
approaches h e av ier etees n reported. Includ- 
ing eftea for d eterred deOvery which mftc* 
■"roads tree the fixed aehecUe. The emphasi s 
te on ttw posetritey of lower w^^Bes in relaflan 
10 demand during the next few months. 


JBl 

1330 

-32 

1374 

1325 37X61 8X00 

tap 

1358 

-34 

1402 

1954 20X74 2X18 

oac 

1391 

-34 

1426 

1332 7X34 569 

Mar 

1419 

-34 

1461 

1415 8X70 096 

■ay 

MSI 

-34 

- 

- 3X86 706 

Jri 

Taw 

1473 

-34 

- 

- 2X6T 602 

81X6114X14 

■ COCOA OCCO) (SDR VtmaJ 


JOB 47.425 +0375 47360 46300 

JM 47375 -aiOO 48250 48350 

Aog 48.100 +0.150 46700 45350 

Oct 42.775 - 49400 42375 

lac 43250 -&100 43350 43300 

Ate 43200 +2.100 44300 <3350 

AM 80,130 6364 

■ POWK BELUE3 CME (4Q,00gbs; centsribs) 


■ay 25 Mce Praw. toy 

Daly 1058X3 10B1J2 


10 dey swage MA NA 


■ COfTEELCE (S/toonet 


rite 

2075 

-150 

2150 

2063 

391 

« 

Jri 

2034 

-173 

2170 

2000 13X14 4X37 

SB 

1999 

-178 

2126 

1970 16X05 4,455 

Mae 

1S7B 

-176 

2060 

1945 

5787 

828 

JB 

1355 

-177 

2050 

1955 

6X07 

724 

Ite- 

1913 

•162 

1685 

1920 

2418 

307 

TOW 





4478110X42 

M COFFEE •C’ CSCE (37X00faa; cants/fee} 


Jft 

117X0 

-9X6 

124X5 117X0 25X4610X52 

SB 

115.40 

KM0 

12175 

115.10 

16X11 

5X99 

Dae 

11&S 

SCO 

178X0 

716X5 

70X87 2.19! 

Mar 

114A5 

-6X0 

115X5 

11445 

5719 

536 

MB 

113X0 

-8X0 

116X0 

114X0 

667 

87 

Jal 

T13X0 

■6X0 

• 

- 

91 



5BXB18205 

■ whi-fcE PCCQ (US censaJpaundj 


**7 2S Price Prat day 

Comp. My 11861 125.16 

15 day omega 11132 10836 


■ No7 PREMIUM HAW SUGAR LCE (centsfiba} 


Jft 

12X0 

+0.15 

1214 

1214 

2548 

100 

Oct 

1ZA7 

+0X2 

* 

• 

1X46 

re 

Jsa 

11X2 

. 

re 

re 


• 

tear 

1210 

+0.17 

re 

. 

60 

- 

Tftal 





9X64 

in 

M WH7TE SUGAR LCE (WortneJ 



AMI 

348X0 

+2X0 348X0 342X0 12X28 1X68 

Oft 

329X0 

+280 329X0 32250 

8£Z7 

646 

Dee 

31290 

+3-00 31930 314X0 

664 

<80 

tar 

31770 

+3.10 

316X0 310X0 

1.735 

sa 

te»y 

31770 

+3.10 

~ 

- 

205 

- 

tag 

32050 

+3.10 

■* 

- 

235 

- 

TOW 





24X88 27a 

M SUGAR 11' CSCE (112X000*; cents^JS) 


Jri 

7201 

+aie 

12X5 

11X0 4&138 SLOW 

Oct 

12X4 

+020 

1225 

11X1 

50756 4X00 

Mar 

11X4 

+018 

11X5 

11X0 22184 1X17 


11X1 

+0.18 

11X8 

11X2 

2422 

16 

Jft 

11X9 

+016 

11X7 

11X7 

1.434 

32 

Oft 

11X0 

+018 

- 

- 

640 

. 

TcW 




128X11 14X61 

M COTTON NYCE (SOX0(lb*cntaXbri 


Jri 

8279 

-0X5 

83XS 

8278 21,158 2167 

Oft 

77.73 

+015 

75.15 

77X1 

5X39 

777 

On 

76X3 

+0X9 

7635 

73J5 

22560 

1591 

Mar 

77X0 

+018 

77.15 

78X0 

2756 

145 


77X0 

+022 

77X0 

77X5 

1.499 

95 

Jft 

77X5 

+035 

77X5 

77.46 

188 

2 


TM B43« 6J77 

■ OftANQf JlACg NVCE (1 5.00ttbs; ccraa/Baj 


Jri 

96X5 

- 07XS 

Mis 13X67 

1X62 

Sb 

992) 

+02) 10025 

9075 

3X11 

623 

ttav 

1002) 

+035 lOlXQ 

9170 

1X12 

71 

J» 

101.70 

*045 ID! JO 

101X5 

2X65 

230 

Ba r 

10100 

+025 10150 

10225 

648 

61 

MW 

105X0 

+025 

- 

a« 

. 

ToW 




22X54 2747 


VOUAC DATA 

Open Wares end volume dam shown ter 
conbacts traded on COMEX, NYMEX, C8T. 
NYCE. CME. CSCE and PE Crude Ol are one 
day In arosa. 


INDICES 


■ REUTERS (Bm« 18/8/31=100) 


MeySS May 25 month age 
. 19642 1983.7 1829X 

■ CUB ftnuraa {Base: d/atta-100) 


year age 

16742 


May 26 

23129 


May 24 
234.69 


month ago year ago 
hKA 20936 


Jte 41325 4400 <2250 41X00 

Aire 40225 -0.175 41260 40300 

ftb 49925 -0225 50300 49.750 

Mar 48.100 -0275 50050 49.100 

Hey =3so -oxoo szxso 51.no 

JM «nm -2000 ■Pnop «r>nm 

Total 7303 4283 


LONDON TRADED OPTIONS 

Strike price t tonne — Cv9e— — Pule— 
M AUJMMUM 


(99. 794} LME 

Aug 

Nov 

Aug 

NOV 

1325 

58 

81 

32 

41 

1375 

34 

65 

57 

63 

U26 ... 

18 

44 

90 

B2 

■ COPPER 





(Grade A) LME 

Aug 

NOV 

Aug 

NOV 

2200 

100 

103 

89 

101 

2250 

78 

81 

94 

128 

2300 

56 

63 

124 

159 

N COFFEE LCE 

Jft 

Sep 

Jft 

Sep 


25G 

314 

22 

115 

I860 

217 

285 

33 

138 

1800 

1&1 

257 

47 

158 

H COCOA LCE 

JU 

Sep 

Jft 

Sep 

900 ._ — 

112 

140 

2 

12 

925 

90 

121 

5 

18 

950 

09 

103 

9 

25 

■ BRENT CRUDE PE 

Jft 

Aug 

Jul 

Aug 

-1500 ,,, ■ ■ — - 

- 

- 

- 

IB 

ISO 

- 

- 

13 

32 

1600 

40 

- 

32 

48 


LONDON SPOT MARKETS 

■ CRUDE OIL FOB (per benei/JuQ +or 


Dftjft 

814X9-4X9* 

+0.045 

Brant Blend (dated) 

*15X8-6X0 

-0285 

Brent Send (Jul) 

Si 6. 03-6. 05 

-0.18 

W.TJ. (1pm eft) 

S17X6-7X7W 

•0225 

M OtL PRODUCTS NWCprunpt rie8ve»y CtF (tonne) 

Premium Gasoine 

$181-183 


Gas OS 

$148-150 

-1.0 

Heavy Fuel Oil 

$82-63 

•OS 

ttapKta 

$158-159 

+1 

Jot Fuel 

*160-161 


AMrntaun Ajm eBnarea 



■ OTHER 



Gott (per troy oz# 

$384.70 

-2.75 

Stver (per tray o 

547X0C 

-155 

Platinum (per buy csO 

$400.00 

-S.10 

PrifaJum (per tray ot) 

$134X0 

-2XS 

Copper (US prod) 

109L00C 

-2.0 

Lead (US proa) 

35.00c 


Tin (Kuala Lumpur] 

14X0 

-0.10. 

Tift »fare YOi*} 

2S7X0C 


2toc (US Prime WJ 

llnq. 


Cottle (Bve wftghgt 

!27X3p 

-azr 

Streap (hre waighfttA 

134X9P 

-052* 

tags (Bw 

8921 p 

+2X5- 

Lon. day sugar (raw) 

$284.00 

-1.40 

Lon. day sugar (wte) 

$358X0 


Ta» «, Lyto export 

E300XQ 

-1.00 

Bariey (Eng. toed) 

Unq. 


Maize (US Na3 Yelks w) 

$140.0 


Whoot (US Dork North) 

£186.0 


Rubber (juQV 

702Sp 


Rubber (Au^y 

7SX0p 


Rubber(KL RSS Nal Jut) 

252. OCtai 

-IX 

Coconut OB (PhffiS 

561 OQi 

-25X 

Pton Ol (Malay Jl 

$490Xy 


Copra (PWOS 

5397.0 


Soyabeans (LG) 

£192.0! 


Cotton Outtook A Index 

86.60c 


Wooftopa (644 

438P 



t car tonne Kites anenMea etotea p cenoeAg. c cuntiflb. 
ri rtngeMre. m MMeyekn imnMig. s JuVJ>4 y Jn w JM. 
f L MM PnyuseL 9 CT naMwn. * Mae maaet 
ttooa. a Shew) o*e mgn DricsM. ‘ Oenge on wo*. 
UMeJenal prioes. 


CROSSWORD 


No.8,464 Set by FETTLER 



l consist of comprehensive 
wage Increase (8} 

5 Macaroni or potato crasher (6) 

9 Roughly tear into than warn 
off (8) 

10 How declaimer speaks - 
shoots right out (6) 

12 Old doctor or field surgeon (5) 

13 Frit, ere rd tremble, being 
just that (9) 

14 Abstainer discovered in Ger- 
man lager a typical English 
ale (8) 

16 In sprints, Linford could run 
Ken legless (7) 

19 Wildly enraged Cl) 

21 In Paraguay a time of fasting 
leads to abundance © 

23 A bit of perfume sprayed 
emir's garb <9) 

25 Very pale, as chicken should 
be (5) 

26 We must guard ourselves 
against showing passion (6) 

27 What eases refuse collection 
In Berlin perhaps (3-51 

28 Passe, as in older trade mod- 
els (6) 

29 Gen was inaccurate, having 
been deduced (8) 

DOWN 

1 Cephalopod sinks missing 
ship (6) 

2 Trading foreign currency? 
Then get in exchange (9) 

3 To deliver a sermon, parson 
left to communicate (5) 

4 Make allowance for less noisy 
Greek herald (7) 


6 Hybrid tulip made for large- 
ness (9) 

7 Tima I made up to voluptuous 
woman (5) 

8 Head of state rejected capital, 
although Kving there (8) 

11 Initially a ride In desert 
shows how dry it is. (41 

15 Reverse the whole process (9) 

17 Thickener cooked in stove (9) 

13 Measure Arab dances in his 
element (8) 

20 A challenge for Captain Dan 
(4) 

21 One taken, in lo transmit 
enthusiasm fj) 

22 Accustomed to being hurt, 
out of Joint initially (6) 

24 In night attire robed, I'm 
about to turn down the light 

<B> 

25 Every. Bast European goes for 
a walk (5) 

Solution 8,463 


nuiiiuH 

□ n a 
ununu 

□ ED 

BUBO 

d ta 

□O0O13 
a a e 
BO aBB 
U 0 ^ 

a ta 

QQ0EI- 

onto 









FINANCIAL TIMES FRIDAY MAY 27 1994 



MARKET REPORT 


Shares hold steady in nervous trading session 


fTMiMantadn 


Equity Sham Traded 

TumcwbywtonMfridHgt&aalud'v 
WmaafcM bu ri n— at tirt- a w hsnovar 
1.000 





By Terry 
UK Stock Market Editor 

A calmer mood prevailed in the UK 
stock market yesterday as investors 
came to terms with the blood- letting 
of the previous session. Confidence 
was challenged a gate on three occa- 
sions when, the FT-SE futures con- 
tract bounced on the 3,000 support 
level, but the stock closed 

little changed after moving nar- 
rowly during the session. 

At the final reading of 3,019.7, the 
FT-Sfi Index showed a fall of only l 
point on the day. The FT-SE Ifld 
260, on the other band, fell 13 points 
to 3,616.4 as the broader wiarireF 
waited for a more con vincing teas 
from the blue chips 

London opened firmly as a few 
bargain hunters were encouraged 
by improvement in the German 


■bund. For a while, the UK stock 
marke t stood up against further 
fells in British government bonds, 
but it proved unable to do so when 
the stock index futures turned 
down. 

A gain of 10.5 on the Footsie 
tamed to a fen of 16 within the first 
hour of trading, but 3,004.7 proved 
to ba the day's low. For the rest of 
the sessi on, the stock market fol- 
lowed the futures market, trying 
unsuccessfully to move ahead and 
dipp ing very briefly into negative 
territory again in mid-afternoon. 

The ge n e ral picture was one of 
nervo usn es s , and reports of some 
buying at lower levels by the big 
investment institution were not 
home out by ftp trading volume 
statistics, However, some analysts 
believe that UK stocks are under- 
valued at current levels. 


Account 

north, 

8 Dates 

•nre Dwtopc 
ure ia 

Jre 6 

-An 20 

Otesn Dactesdoora 

Jun 2 

Jre 16 

JM 30 

Last Dsatopc 

area 

Jre 17 

Jd 1 

AaeaiBt ore: 

JunlS 

Jre 27 

Jd 11 

ft*wt ta tota(* 

•» ay taka staoe fra* to* 





Sean-reported business of 61&5m 
shares compared with 646Jm an the 
previous session. Stock Exchange 
statistics disclosed that retail busi- 
ness on. Wednesday, when the Foot- 
sie dropped by 22 per cent, was 
worth £1.49 tm, which was by no 
mgflu* a high volume figure. 

At least two trading programmes 
were identified, only one of which 
was of significant she. But fix- the 
most part, the London stock market 


continued to .watch the European 
markets, which benefited from good 
inflation figures in Germany. 

Towards the dose, shares bright- 
ened when Wall Street opened 
higher but the pace flagged as the 
Dow turned less decisive to show a 
minor fell as London closed down 
for the day. 

Traders commented that the mar- 
ket was beginning to Blow down 
ahead of the holiday closure on 
' Monday of markets in London and 
New York. Today brings further 
tests fix the markets in the form of 
important reports on economic 
progress on both sides of the Atlan- 
tic. 

The Confederation of British 
Industries presents its monthly 
report on business trends in the 
domestic economy. Investors will 
look carefully for signs that export 


volumes are recovering with the 
i m pr o ve m ent in economic activity 
in Europe. 

hi the US, investors will today 
scan the gdp figures for the first 
quarter, in particular the defla- 
tor figure which will give the Fed- 
eral Reserve its latest guide to infla- 
tion pressure In the US economy. 

Traders warned that the equity 
market remains at the mercy of the 
bond markets which, in ton, are 
dependent upon trends in German 
and US fixed interest stocks. With 
German interest rates now evi- 
dently on. hold for the time being, 
the focus is expected to be an the 
US TTut r kP tq An unimpressive per- 
formance by the US dollar since last 
week’s decisive hike in key rates 
has left markets fearing that the 
Fed may fed bMj gpfl to act rt gafa 

soon. 



Samar FT (kip— 


■ Key Indicators 


FT-S6 100 

3019.7 

-1.0 

FT Onfinsry incte 

2392.6 

FT-SE MW 250 

381(L4 

-1A0 

FT-SE-A Non Ftis p/a 

IB. 62 

FT-S&A 350 

1531.0 

-1.8 

FT-SE 1 00 Put Jun 

3007.0 

FT-SE-A AB-Shme 

1524^4 

•4J38 

lOyrOmytaid 

&36 

FT-SEtA All-Share yfald 

3.85 


Lot^j gittfaquity yW nrtto: 

POP 


■42 

OBJ56) 

t&O 

0-32) 

(123) 


1 Spirits. Wines adder.. 

2 Media 

3 Extractive lode 

4 Electricity ..... 

5 Othar Services & Bsns 


+ 1.2 

+08 

+0.4 


Worst p o rf o Mu l im — ct— 

1 Water 


2 OB Exploration & Prod. 

3 Ufa Assurance 


40.4 

+0.4 


4 Household Goods . 

5 Chemicals 


--1JB 

--1J2 

..-1.0 

..- 1.0 

_-09 


Sk '"' f ‘* Ei re 


Heavy 
fall for 
Shoprite 

The shock profits wanting 
from Shoprite sent the shares 
crashing to end a tortuous ses- 
sion 54 down at 9Qp with turn- 
over a hefty 2£m. Dealers said 
they expected more pressure to 
come as investors, many of 
who came in at much lower 
levels, decide to take profits in 
one of the sector's best per- 
forming stocks. 

Analysts pointed out that the 


Shoprite tumble followed 
recent disappointments from 
other discounters such as 
Argyll's Lo-Cost arm, Nturdin A 
Peacock and Kwfk Save, and 
reinforced the market view 
that the discount end of the 
market was under severe pres- 
sure. Nurdm’s was steady at 
199p, while Kwflc Save slipped 
a penny to 540p. 

Shoprite shares have climbed 
Steeply since early 1991. when 
they stood at 20p, as the dis- 
count food retailer embarked 
on a big expansion strategy 
centred on southern Scotland. 
They hit 24lp at the be ginning 
of February since when they 
have retreated steadily, befog 
particularly weak in recent ses- 


EQUITY FUTURES AND OPTIONS TRADING 


u 


Derivative dealers reported 
a volatile session In stock 
Index futures which saw the 
June contract recover from 
the previous day's slide to 


dose above 3,000, writes Joel 
KTbazo. 

The opening of the June 
contract on the FT-SE 100 at 
3,022 was better than 


■ n--8E IPO ymEXRTTUI^tUB^ £26 pwfJlncto point 


(APT) 



Open 

Sett prim 

Ctiaigo 

High 

Low 

Eta. YOl 

Opan bit 

-*• Jt*i 

3022.0 

3007.0 

+&0 

3025L0 

20000 

15702 

51272 

Sop 

3036.0 

3021J 

+7A 

303&0 

30100 

1416 


■ Dec 

- 

3031.0 

+7 JO 

- 

- 

0 

251 


CROSSWORD 


W FT-3E MD 250 1MDEX FUTURES (UFFE| BIO per Mt Wax port 

Jun 36000 3597.0 -3.0 38000 38000 105 . 4043 

Sep 3617.0 3613.0 -40 3817.0 36170 80 . 578 

■ FT-SE UP 250 eaiEX FUTURE8 (OMUQ £10 per fcfl tadex point 

Jte 35900 36000 1 5ft 771 

At open kUMt ffeuea are tor pmrious day. f Boot vteme shown. ■ 

■ FT-SE 100 WDgXOPnOWQiFfq rSCBI) PIP p^ftjmdKpe*lt 


2800 
C P 


C- P 


C P 


3100 
C P 


9150 
C P 



JH 172 10 fWzIfe STb 29 3B*z 47h 33*2 77*2 17 112** 8 154*2 3»j 203*1 

Jd 187 24 141 36 1t2fe 5D 83*2 72 5Pz 96*z 3Bfe 128 25 IK 1 ? 14^ 200 

AUO 212 40 174 S3 130 0*2106*2 89 Blfemfe » 143 42 177*2»z215*2 

Sep 217 SI 182*2 ST 10 BOfelMfclDlfcSBfe 128*2 77 155^6^ 188 41*2 224*2 
Oect 220*2 97*2 182 187 iKhUTh 74 249 

Cata 4370 Mi 10.3B5 .... 

■ BUBO STYLE FT-SE TOO 84DEX OPTIOW 8JFFQ CIO per ftri Indtar port 

2828 2B75 292S 2078 3025 3075 312S 3178 . 

JUB —*2 7*2 144*2 12*2 185*2 22 68*) 37 42 58* 2 22*2 90*z 12 129>z S 173*g 

Jd 283*2 W 1B0226h13Sh 39 Wz 57 W*z 78*2 «*2 108 39 140*2 18 179 

Aug 22Bh 38 1SF*59*2 M 96 56*2 154 

Sep 23J*j 40 163*2 88 105*2 180 62 164 

Duct 272 72 205 102 . 147 141 

am 820 ft* 1-280 * Urtefttag MB eft Mn dean « tort m statena* pto*. 
tlnodMniyatda. 

■ BURP STYLE FT-SE MP 250 DTOX OPTION (OMLX) 010 par frJ Index point 

3700 - 3780 3900 3880 3800 3980 4000 4000 

JH 29 mb 9i 
Crib 0 Me 0 SatBenM price* red Am ■* Hi *1 45Cfcn. 


sums. 

Yesterday, the company was 
blaming stiff competition for 
the downturn in profits, with 
brokers halving their forecasts 
to around the £4.5m for the 
current year. 

Trafalgar hit 

Turnover In conglomerate 
Trafalgar House rose to 17.9m, 
making it the day's most 
heavily traded s*rv»)r and the 
shares fell 9 to 86p, after ana- 
lysts rushed to downgrade foil 
year profit expectations follow- 
ing the group's interim figures. 

Profits of £l&4m fell below 
market expectations and the 
group fli«n cut the dividend. 


anticipated by dealers. 
However, strong selling, 
attributed to Goldman Sachs 
was said to have been the 
cause of the early retreat in 
the contract 

Thereafter, Jtsie followed 
the erratic mood in the bond 
markets, though occasionally 
went its own way on dealing 
by Independent traders. At the 
day's low, June fell to 2,990 
before bouncing to return 
above the 3,000 level, a move 
repeated several times. The 
contract led the cash market 
for most of the day. 

The firm opening on Wall 
Street hefoed steady Jure and 
it dosed at 3,008, up 9 on Ms 
previous dose but at a 13 
posit discount to cash. Volume 
was again good, reaching 
15,702. contracts bythe.ctoee. . 
In the June “Micr 250onti*r ’ 
FT-SE 165 lots were dealt as 
the contract dosed at 3,597. 

In traded options. Volume 
fell back from Wednesday's 
high levels and dosed at 
31, IK) contr a ct s . Of that total, 
18378 was traded In the FT-SE 
100 option and 1,925 in the 
Euro FT-SE. 

Prudentid Corporation was 
the most active stock option 
with a total of 1,064 contracts. 


The list of brokers down- 
grading included BZW which 
reduced Its fun year forecast 
by £31m to £54m. Mr Mark 
Cusack at the securities house 
said: “ I n ve stors that gave the 
company the benefit of the 
doubt have been badly let 
down. The potential Is still 
there but rec o very now looks 
» nflfti>7 year out." 

C&W busy 

Preliminary profits at the 
very top end of market esti- 
mates saw Cable A Wireless 
shares outperform the rest of 
the market and the telftrairos 
sector to close a net 2 higher at 
450p. Earlier the shares had 


TRADING VOLUME 


VBL _ 
OOOl nrfca 


Oort* 0— 




11X000 EB>! 
4700 381 

B34 58 


BhaCfcfct 


1300 

500 

4W 

477 

430 

30* 

MOO 

243*r 

2JOO 

273 

304 

669 

021 

25S 

003 

929 

Aom 

420 


1221* 


424 

1.400 

710 

R.QVI 


tn 


0,700 

373*2 

1.100 

200 

7«0 

300 

ijm 

1T7b 

1/OQ 

923 

3,100 

012 

2,100 

300 

sea 

39* 

1JU1 

B2A 

1300 

420 

406 

400 

teoo 

382 

0JOO 

Z79 

910 

391 

01000 

1301* 

M4 

180 

061 

01800 

& 

0200 

490 

»rmn 

478 

580 

306 

1.000 

3S2 

an 

911 


itOoLLT. 


FT - SE Actuaries Share Indices 


i he UK Sene 


Grand M*-t 


jjwjj Mart May 26 May 24 May 23 


Yew 

J£- 


Dtv. Ean. 
mat gdW 


PTE 

nto 


Xd 




Tote 

Mtum 


FT-ae m» 

30T9L7 

. 

30207 

30801 

31004 28S03 

408 

643 

1741 

4079 

112348 

FT-SE MW 250 

M1M 

-04 

36204 

3881 <4 

87003 31006 

3^2 

542 

2145 

4066 

182049 

FT-8E Md 280 ax Inv Truata 

3628A 

r03 

36303 

37007 

3719.4 3167.1 

066 

- 006 

2046 41.40 

1828.10 

FT-SE-A 350 

1531-0 

-Ol 

1532^ 

15609 

1574.6 1422.7 

am 

055 

1034 

19.67 

116542 

FT-SE SmriCap 

188301 

-05 190020 181088 192050 1017-00 

083 

441 

2018 

1016 

146240 

FT-SE SreaBCnp « to Truata 

1070-76 

-04 187083 1991 39 189022 163051 

009 

4.86 

2076 1955 

143070 

ft-SE-A ALL-SHARE 

1524^4 

-Ol 152062 1657.62 156068 140017 

3JB& 

038 

1644 

1948 

118154 

■ FT-SE Actuaries AH-Stwre 












Day* 



Yota 

Dtv. 

Etan 

fVE 

Xd Kg. 

Total 


4,780 


5400 


May 26 ctigo% May 25 May 24 May 23 ago yMdft yrtd* ratio ytd Return 


10 WERAL EXTnACnONtlfa 264S9B 

12 Extractive Industrie*^ 3808 93 

15 Ofl, HHaoralad^ 2590.81 

18 08 Exploration a Procffill 194793 


284423 270752 2709.05 2212-50 SB 2 442 2833 3738 105038 

+04 3787.49 380636 392050309230 3^41 5.19 2415 4339 103804 

259197266022 254691 213&90 336 497 27.18 4043 105128 

-12 1B7094 200737 2033.72 1920.70 S45 1X7 8090F 1592 111699 


20 QSI MANUFACTURBOm 2007.12 

21 BuMng 5 Coratracttonpi) 1238.66 

22 BuBdlng Mate & MarehapO) 194020 

29 Chantattpi) 2452*2 

24 OtwnOod kriustriafttiq 202102 

25 Bacnoidc & SM Equte34 2075.66 

26 ErtQimerino(71) 1844.74 

27 Bxfasertig, WWd-Cm 223831 

28 Printed- Pap® - * P«*0(27) 274a 73 

29 Taxfflaa S App*H20> 174a30_ 


-02 2011.73 204&S1 2063JJ7 178490 3.74 443 2&18 2427 1007^1 

-05 1246.77 1Z7228 1279X1 1061 .70 SjOI 328 3346 15.18 961.60 

402 19SS.73 197800 199320 168120 327 3.79 3328 2&7B 

-02 2471.76 248848 249928 211620 378 328 3226 2828 

-022025.78 2072.12 209428 18S720 425 429 2721 3045 

-02 208033 2102.70 21iai8 198120 824 B24 1928 1220 

-02 184084 187829 188226 14S820 223 420 3020 2011 104220 

-04224845228824231127171440 428 227 8127 3242 1089.78 

274ai9 280247 283925 232020 321 &18 2321 2945 106827 

-noiT4fl ftg-i7Tniw 177326 183620 423 S.77 2225 2825 97a47 


SH 

UntfSurttot 

Upon 

UgrfSGnratf 

USMO 
L ondon fltOC 
LcntD 


90325 

106&79 {£«* 

101529 Marks A 


NFCt 


i0*nj 


30 CONSUMBI OOODSm 283120 

31 Brewartes(17J 217125 

32 Spirts, WbM 8 C UerafiQ 292Q27 

S3 Food Manufaetuerepsi 224229 

34 HouMhoU Ooodtfl^ 249a76 

36 HoeBh CnrepOl 1678.17 

37 Ptwmaratecatefll) 2801.18 

38 Toboccoffl 3523^, 

40 sawicreisteS 1953.12 

41 OhMJUWrafSI) 284843 

42 Latatn 8 HcMa(2Q 209888 

43 Mteh(3S9 298875 

44 Rotators, FoodpT) 169826 

46 Rotators. QttSteW 18932Q 

48 Swport Sarvfcaa(40} 160022 

49 TteMportOQ 230222 


+81 282928 28BV2B 289126 270020 444 723 1426 4449 

+0l2 216821 221878 224527 1947.60 424 7.77 1520 1323 

+12 289887 295429 296828 2721 2Q 3.78 872 1724 4120 

2341292279292288222221.10 424 801 1427 42.76 

-12 2514J9 255724 288826 228420 852 726 1825 4874 

-0.7 169147 170729 172826 167520 329 878 2028 1920 

-842701222752.17273826311860 475 816 1412 47.15 

-82353121363247385346388890 526 627 1121 10226 


96858 

98803 

83227 

887.43 

963.72 

842.10 

78459 


North NM Mot 
(tontom Met 
Narthsm Fbadrt - 
Nararab 
P ra un t 
PAOf 


tnif 


4200 

438 

1200 


8000 


1200 


195321200122202882178810 810 523 2027 1640 

+812848062889292952212602.70 328 629 1883 3406 

+82 209224 218838 220043 175120 347 455 2824 1942 

+88 294623 304528 307471 293020 2.18 527 2325 3485 

169824 183721 169843 196520 328 942 1817 1872 

-04189925173526175846147810 227 817 20.13 11.14 

-82 160420 164815 165475 1612.70 223 872 2024 826 

-84 231869 235027 237120 208860 328 478 2890 15.14 

++«rr wn ++«» no 1TMJ7 1229JB 440 220 8800t 521 


97524 

102023 

102378 

93622 

89811 

96860 

88820 

iboaai 


» * : 
tell 1 

11 * 

M 

ta ununesps) 

82 BactrtdlyriT) 

84 Ore DtaUbuterA 

. 66 TriacorraiurtcatloneM 

223862 

215257 

168045 

197953 

1723.17 

-042247.70227031 228140212140 
+04214345216745215057 173040 
-05187004188244 1901.70183050 
-05 1989L47 202949 203073 198350 
-14 176443 178043 175740 170750 

456 

346 

044 

4.15 

043 

042 

11.44 

* 

740 

1443 

1448 1443 
1088 1545 
t 5043 
1013 009 
744 048 

84142 

86949 

86024 

82340 

829JI0 

i * 



1fIS2.S2 

-Ol 1654^42 *168748 1697.16 1S3Z5B 

-4JW 

019 

1062 1945 

114048 

0*' 

* 1 " 

< 

\ 

i 

'70 FBUNCtALStHte 
f71'BMhara) 

-iSra tetewnoaflT) 

V74 Uh MaunmaM 
. ■ -75 MtachtaU Banks(B) 

77 Ottw RrrancWP^ 

211540 

270942 

121040 

225024 

282744 

182345 

166003 

-Ol 211034210041 2131.70 196650 
+02 270346 278142 280348 2*4060 
-04 121743 1253.79 123020 127240 
-14228340231092230924268440 
-02263048286034290942266010 
-07 163550 186149 186541 141250 
-02 157129 157077 1584.14 132070 

446 

440 

541 

550 

351 

3.70 

093 

039 

OG5 

11.91 

Oil 

1142 

659 

349 

TO 88 4144 
1058 5007 
948 2744 
15.16 6038 
1045 23.26 
1021 2016 
3096 1049 

82741 

002.48 

81742 

86757 

896.42 

6S744 

68040 




Z783L21 

-07 278146 2*2240 283090 228340 

999 

147 

6446 2554 

92221 

f M 


88 FT-3E-A ALL<8HMRNBS8 

N Hourly movements 

162454 

-Ol 152062 1557.62166858 140017 

346 

-648 

1084 1948 

1.19144 


i 

Open 940 

1040 

1140 1240 1340 1440 

1540 

. 16.10 HtehAMr Lorerdrer 


1400 ueh 


Sn*fiWJUA 

MhAMphaMt 

Bn*Q tetontt 1,™ to -* 

3rnW Om+an UH.f 1J300 36 6 -3 

Smtos iodt . 7» «D 4% 


lOartdt 


FT-SE 100 
Fr-se MU 250 
FT-Se-AMO 


ES ^ ST.teiw 36182 

15882 1S8B 15287 15S32 15312 1S92 15389 


3011.B 3021.1 80312 90047 

38144 88152 38284 36085 

1527.7 15312 15388 15245 


Wm 0MT2E 1« Htfi 8Um Um 81 Smi 

■ FT-** Actunrtos 350 Industry task*** 

- Opan 920 1800 1120 1290 1800 


1400 1800 1810 Ctaaa Prattaa Change 


11«.0 1174:7 111M ^782 11^7 1Jg2 VSS SS SS£ m -S 

SS gSS JSJ S 5^8 2723.7 27280 27145 27388 27428 27X72 +88 


* *"* M| *** iStTM 108t» FT CO Pf — Ffi8E*OlMM3SP raid «■ FMEAOMtoa Indueay 

ftSdto'?i5hSaMBdiira of^wd a4aa. 


1.100 
4» 044 «7 

IflOO 610 -13 

• 9*7 BOB H 

ta 528 -e 

3X00 233 A 

4100 2 tt 4 

2.100 301 

790 221 -3 

4790 36* 4* 

9*1 *00 +6 

823 19D 

MOO 215 

IflOO 406 -• 

1^00 1028 -3 

ttU S31 44 

17.000 00 -0 

i2» aw -a 

2.60C WE 48 * 

■ ate 33o 

440 500 48 

2.100 520 41 

SOI TOO *7 

1400 555 -7 

343 001 -19 

340 500 +U 

504 634 42 

4200 300 48 

2.100 170 +1 

977 1» d 

1800 793 40 

408 5B +10 

94« aa -« 

1300 «b -a 


St 

WfcOra men 

jjSSayf 

Yortertra Bras. 

Y wMri Wa 

8nad ee u8a wtona fcr a teMlen al orier 
idMtSws^ithaS&SOfrraw 
ft* 
it* 


yadaafcy urtl 43tom. ftadia (4 bm mBon or 
more nnnM down. flodcMM an FT-SE 


risen to 457p. Profits up IB per 
Cent at £1.09 bn, e>n>w 1 

compared with a consensus 
forecast of around £L06hn. 

“These were good profits 
numbers, 1 * gatri one analy st, 
"hut there was some disap- 
pointment in tim market with 
the dividend.* The dividend 
total was increased by U per 
cent to &25p; best estimates in 
the market ranged up to 15 per 
cent 

Turnover in C & W came out 
at a healthy 9-2m shares, the 
highest single day’s business 
in fee stock since March. 

The annnimiwnwi i by Chan- 
nel tunnel operator Burotxmnel 
of its well-signposted rights 
Issue left the shares trailing 7 
at 848p. However, doubts about 
the financial position of the 
group remain and rmf» analyst 
pointed out that the rights 
Issue and the the new financ- 
ing from the group’s creditor 
banks was still short of the 
£L6bn Eurotunnel had said it 
nflfldad . 

The electricity companies 
raced ahead in the wake of 
recent strong buy notes from 
leading brokers, notably Klein- 
wort Benson. The broker said 
the recs offer outstanding' 
value, with huge potential 
upside from the National Grid, 
plus the potential for share 

buy backs and talwn wr moves 

after the expiry of the golden 
shares in Marc h 1995. 

London Electricity jumped 
18 to 573p, and Manweb and 
Midland 10 apiece to to 706p 
and 614p. 

Enterprise Oil shares suf- 
fered badly from the latest 
shots fired by Lasmo as part of 


NEW HIGHS AND 
LOWS FOR 1994 
mrwaHsne. 

Muon* emmi tn ountm. bldo 

MATU 8 HCH19 (8 **r f* DWIHBV1Q 
n> Ji ra* Mcim i o A 83BT KOUP M 
lOKMU. UliaiUBHIU m KttoK 


WnMm*BUWNCC(1]4lMDnlnn. 
»wm i 0i iniMn»a u i uim HBm0 
H} E»OI*ra>, OL EXPLOfUUON A moo n 
RDNURAnODRRRMUnAOMM. 
n Ub««, Da mr. wma, WMB8 a era* 
tQ MKdoreH MMki w. 


G4T* P8 BAMS R ANZ, Why NMIOMt, 
Anota AM. MrtMtoi. Sandra* Cnmmt 188 
mmra a cnum n bm hihi*. 

Donotor Tyaan, Hagi AH0, L**ng J. A. 
m mtn Pnxittag. 3roi H. AM H4TU 
tMGHnMCMBKM0(O4QA. 


wuRBenmei 
• (!) «nM BCC lOVpe 0&B&. 
Bfck, OraMby, Mreretare, IMi Vvty, 
i (7) B*. Area Mo Pit. OreM 


Dragon MWw MM Rreo Ml. Ertetot CM* 
Ctare. NBM, POOO MANU0 N MMLTO CAM 
H Aimnhma tafl. CraottCa* LKo 8o*x>« 
WU3W*dO>^lCW H« .T»ta^.HO U— K AiJ 
WXnntoreBMtn.BrtftAyM, 
Uontaort, OrataiBfc MMMNCE 91 
muimi TRuersm WVWTMBtr 
rraremm iui*at» noma enure 

A00URAMCE (9 BAnfe, Lloydi Abboy. 

rj„ MBTTr til 

CMraQoHl Ranan, SooQWi IV. UMrad Utore. 
MERCHANT BANKS 0) OTI« IWANOML n 
omn 88NS A BUBNB ra HOM8 HAIVR A 
Mctca « moranr tte mtaaera moo 

tfl Shopreo . RKTMLDOL OBMIAL 04) 

SUPPORT SB1V8 n Oovia tavtoo, Boc. DM 
Mb, nrfvirai Mo, »wuto.iBcmu 
APPMRB. n MWi uotak. HorereuddA 
are, TRANBPoirr m water n 
CANADMN8C9. 


its ifafenia a gainst- the all-pa- 
per takeover fed. Snipmg about 
Enterprise's accounting poli- 
cies unsettled Enterprise 
shares which dived 9 to 401p. 
They have retreated from 451p 
since Enterprise mnouncsd it 
was considering mairing a 
'takeover bid. 

Burmah Cagtrol dipped 9 to 


862p as one of the market’s 
optimistic braking was 

said to have trimmed its num- 
bers lor the company following 
the presentations to analysts 
on Wednesday afternoon. “The 
presentation was splendid but 
obviously someone had over- 
done their estimates, ** said one 
(til sector specialist 

Shell slipped IV* to 7lOKp 
with analysts speculating that 
much of the big fell the previ- 
ous day had anticipated news 
ftat the European Commission 
had been advised to oppose the 
chemicals joint-venture with 
Italy’s Montedison. 

The disposal of 450 pubs by 
Scottish and Newcastle helped 
toe brewer to gain 2 to SlSp. 
The sale was marie to a private 
consortium to satisfy the com- 
pany's obligations under toe 
government’s industry regula- 
tions following the purchase of 
1,600 Chef & Brewer pubs last 
September. 

Disappointing interim 
results and a discouraging 
statement hit shares of 
JBmart. the Edinburgh-based 
building contractor and house- 
builder, which fell 28 to 195p. 

Sharpe & Fisher, the build- 
ers merchants jumped 7 to I63p 
after the fthainnMi wrid at the 
company’s animal meeting 
that profits in the first four 
months of the year are ’‘sub- 
stantially ahead of 1993.” 

A positive agm statement 
from Win Morrison Supermar- 
kets, the northara supermarket 
group, helped the shares edge 
forward 2 to 130p. 

Solid results from Store- 
house were not enough to pre- 
vent the shares slip p in g back S 


to 212p, although volume was 
only a moderate 2.1m. Profits 
were in line with market 
expectations, and the Increased 
dividend pleased some sceptics. 
However, some concerns were 
befog expressed among stores 
specialists about continued 
margin pressure. 

Good results from MacDon- 
ald Martin Distillers was fur- 
ther confirmation for many 
observers that the upswing in 
the whisky industry is now 
well under way. The shares 
gained 35 to 480p, and also 
enlivened Allied Lyons, up 5 at 
580p. and Guinness, ahead at 6 
at 432p. 

Smith New Court was said to 
be pushing Granada, up 7 at 
497p. 

Composite insurances held 
up well with General Accident 
rallying from an early 585p to 
close unchanged on balance at 
540p in the wake of a strong 
buy recommendation from 
Hoare Govett The broker said 
General Accident “Is at least 10 
per cot undervalued." 

A James Capel recommenda- 
tion lifted Chnbb Securities 8 
to 368p. 

APV eased 4% to U9K with 
Cazenove, the company's bro- 
ker, said to be negative on the 
stock. 

Motor distributor Jessups 
jumped 28 to l26p, after an 
agreed offer from BSG which 
eased 5% to 69p. 

MARKET REPORTERS: 

Steve Thompson, 

Christopher Price, 

Joel KBmzo. 

■ Other statistics. Page 22 


LONDON EQUITIES 


L1FFE EQUITY OPTIONS 


RISES AND FALLS YESTERDAY 


«*■ 


Ok Ms 

■M Ori ton Jof Oct too 


550 - -SK - - 29 
[-580 ) ’600 - -ant - - 56ft 

Aral 240 T1H 17 2 15 18K23K 

f»3 ) 260 A SH 14 20K3ZH 36 

ASM 50 7K 9H 11 2 4 AM 

P66) 60 2ft B 6 7 10 10ft 

BrtAkmiB 360 S37U4ZK10M 17 23 
r362 ) 390 2S26H26H 33 38ft 

MM 360 37H 48ft 52ft 6ft 15ft 21 
r367) 380 M 20 30 18ft 28 35 

Boms Eooaatsst si is m 73 

C524 ) 550 8 1Bft 27ft 43 48ft54M 

BP 390 22ft 3» 3BK 13 20ft 25ft 

C396 ) 420 • 10 26 31 37ft 42 

-NM8M 130 tl 17ft »ft 5 6 10 

n») 140 7* 12ft 16ft 9ft 12ft 15 

Bm 500 27ft 39 4B16ft25M37H 

rS12) 580 M17H S 52 56ft 69 

CM l Mi 450 16ft - -22ft - - 

T4S0 ) 475 • — - 36 - - 

OreMfe 500 33ft ST 46ft 19ft 3 35 
<*S12 ) 550 5ft 16ft 28 55ft 61 B8 

Greff toton 500 46ft 54 61ft 6 13 IBft 
(■538 ) 550 16ft 23ft 33 24ft 30ft 41 

n 800 43 86 72 20ft 36ft 46 

HUM OSO 16ft 34ft 60 <6 64ft 75 
ttWfehar 550 36 61 63ft 15ft 27 34 
rSP) 600 14ft 27ft 40ft 44M 54ft 61 

laatSBCV 680 13ft 26ft 36ft 28 33ft 40ft 
CHS ) 700 3 6ft 10 70 71ft 74ft 

toH&S 39016ft 28 33 12 17 20ft 
f4C1 ) ■ 420 6 14ft » 31 34 87ft 

HHMM 420 IBft 36ft 46 11 Z1 ft 25 
(•434 ] 400 BM 18 27ft 33ft 44ft 48 


— Mft Ml—— 

Aob Nre M> Abo Nre Mi 


f255 ) 


n*i 

Uni ta* 

ri75) 

pao 

ruMj 


210 16 23ft B 4ft 
260 6ft 13ft 16 14 
134 26ft a 
154 8ft 15 
160 2t» 27 
100 «M 10 


- 6 
- 13 
a 3ft 
10 12 
74 13 


r>«) 


ras> 

mz 

r647) 


9 12ft 
19 22ft 

8ft - 
16ft - 
8ft lift 
19 22 

30 35ft 
» 63 
12 15ft 
23ft 27 
16ft 18 

a a 


r«3j 

KVtfknn 

rz«) 

TOO 

f2W) 


I) 


(*380) 

OpOOB 


600 56- 67 
650 25H 36ft 46ft 35 
Itt 17 23ft 27 7H 
200 7ft 13 17ft 19 
280 16 25ft 31 11 
300 6H T0 21ft 22ft 

BOO 70 86ft 1M 12ft 30 37 
8S03BH 60 TBft 32HSZM 60 
480 47»86ft 85 8 19 24 

500 24ft 36ft 44 26 38ft 44 
240 22 20% S4ft 8ft 10 16 
260 lift 16ft 2 ISM 27 Oft 
200 23 26ft 36ft 5 910ft 

220 11 16ft 18 13ft 18H 20ft 
500 IBft 61ft a 14ft 25 32 
550 16 ant « 4T 51 SBft 
364 »M 30 -12ft a - 
384 616ft -30ft 37ft - 

Ji Oct to Jd Oct too 


fUttahtanta . 


57 




13 

83 

Mnaniexndton 

50 

68 

Qananrf UMnitoliwnr. 

— 97 

202 

53 

365 

104 





41 

126 

242 

59 




170 

200 

29 



Other* 

*1 

Totata 

428 

862 

1287 


Dm tend on crareretoB feu on lire London area ten**. 


traditional options 

FJret Dwdnss 


May 23 
Jura 10 


Last Dadaretions 
For aatto nra ra 


Sqxi 
Sept 12 


Cats: CKtantoto, Forte, Hed w mod Foode, PIP, Stfxi 

Cep, Henaon Wts, Lucat Wts. Puts A Cans; Aaeoc Brit Foode. 

LONDON RECENT I8SUE& EQUITIES 

tee Amt Itot Oqm 

price pgU cap 1994 price 

p up (EmJ Hbh Low Slade p +/ 


Brato ma. Pure; Bemoor Pud 


Nat Ov. Ora 
dv. oov. yU 


WE 


rn ) 


an 27ft m «u» ia m 
rsn) 3ntiftaa2BM34 39ft 

SMTrrn. 700 STH 44 BM 15 27ft 32 

rni ) 750 10 16ft a 44 57 6QM 

flntei 20017ft 23 27 6 8ft 13 

1*211 ) 2a 7 13 17 17 20ft 24 


79 12 - - 3 - - 
66 ik — — 6ft - — 
950 61ft 66ft 94 10ft 21 27 
1000 a 83ft a 31ft 42 45ft 
650 H 17 76 7K20M a 
700 23 37ft 48 27ft 44 48ft 
Am Nv Fib Aug Nov M 


f») 

IMraar 

ran ) 


mo) 

(*tan 


Sort MM 

420 

35 46ft Sift 11 17ft 2 

(-44* ) 

460 

14 

26 31 31ft 38 46 

Ltafcnto 

1B0 ItftKft 2B 5 7ft lift 

H72) 

16018ft 

14 15ft Uft Z1 22ft 

lU Uactto 

330 18ft 

S 33 14 24 28 

ran) 

360 

7 

Wft 21 toft 43 45 

f^pHrm 


to* 

Bn Dre Jre Sre Ore 

Rum 

140 

7 

16 IBM 5ft 12ft 16ft 

rwi ) 

in 

1ft 

8 TIH 21 25ft 23 

ttota . 


An tef Ah Aag Nw Mi 

MAM 

40D 

» 

66 ISM Z8 48H55K 

r4rtj 

500 

19 

46 62 64 72ft 78ft 

BATtadi 

420 23ft 

31 3nt 21 SOM 33ft 

T4ZD) 

«0 

8ft 

16 23 52 53 9ft 

610 

300 

36 

43 46 6 13 16 

.ranj 

390 

16 29ft 3ZftT7ft 28ft 29M 

Brttneeaa 

360 

34 

atoftlZft IB 24ft 

f373) 

390 

6 14ft 16 32 38 42 

1 (tatreyta 

490 30ft 

36 47ft 10ft 20ft 22H 

■T474) 

500 19ft Wft 28 32ft 42ft 44ft 


no 

34 

<7 SBft 30% 43ft 51 

f®9) 

660 14ft 

27 36ft 68 74ft 8TJt 


460 57ft 

48 66ft 9 18ft IBM 

r®2 j 

500 TSft 

2634ft 29 36 39ft 

SEC 

300 

21 

20 a 8ft 13ft 17 


330 

Sttft 15ft ZSft 31ft 34 


BM BOO 43 64 » 20M32M 41 

fS25 ) 950 It 38Vt 80 48ft Hft 68K 

nmrewr 4U a 38ft 41 13 21 a 

r«86) SOO M 18ft a a 44 51 

OpBoo Are top Dec Jan Sre Dec 

Abbey NW 360 34 43 52ft 2 9ft 13ft 

(-380 ) 300 101424ft 33ft Oft 22H Z7 

30 3 5 6 1ft 3*t 4ft 

K 1 3 4 5ft Bi 7>l 

500 » 44 M 4ft IB 25ft 

(■522 ) 560 4 10 30ft 31ft 48 S2M 

BbBOroN 290 a 34143014 2H UK 15ft 

rate) an 92M26K B20H2SM 
Brtfth Ore an a sosm 2 6ft 12 

(-279 ) 280 7 17ft 20ft 7ft 14 22 

MOM in 12 16)4 23K 3ft 13ft 16 
<187 ) 200 3 9ft 15ft 15ft 2554 27H 

in 6 17 21 3ft Oft 9K 

in «t ■ nit ire 2i a 

MO 7 16 a 5 13ft 16 

in 2 B 12ft 10ft 28ft M 

420 13 27 34ft 14ft 27 31 

480 lit 12ft IBM 47H52H SBft 
SBOtfft a M 8ft 24ft a 
390 SH CDS a 31 44ft 47 
120 5ft n 13ft 3 7 9 

130 2 0ft 8ft 10 13 15 

220 14ft 28ft 27 3 10ft U 

240 4 15 17 15ft 21 25 


n») 

Unto 

PW1 > 

tut Parer 

r**> 

Scot Pom 
(-382) 

tot 

n») 

Porte 

r»o> 

Trerac 

n«) 

Tbam Bl 
(*1027) 

138 
P206) 
itetta 
P231 ) 


rS55) 

Option 


135 Wt 
IS 3ft 
100004 

ion ia 
200 12 
220 4 

2a it 

240 3ft 
590 a 
BOO 4ft 


67ft n 

43 61 
Ifft 24ft 
Bit 16 
21H2SH 

mt ism 

nn» 

27ft 41ft 
Dot Jre 


1ft - - 
12ft - - 
10ft 50 61ft 
35 79 SO 
3 lift M 
15 23ft 25ft 
3 10ft 14 
13 22ft 25 
13 X 48 
48 68 74ft 
jri Od Jre 


am SOO 66ft Kft 73% 10ft 27 38ft 

{■wo i 560 asm a sift 54 bom 

HSBC ft to 700 Sift 86 162 25ft 45 36ft 

(-733 ) 750 to K 7BH 40 70 81ft 

tartar* 480 a a - 17ft 27 - 

(*458) 482 21ft 32ft - 21ft 32ft - 

OptWl Alteta tog Nw tn 


- 

FP. 

1.21 

10 

9 AWnto Soot Wits 

8 


m 


- 

FP. 

135 

148 

12S Capital 

148 

-3 

IM3J3 

U 18 242 

1250 

FP. 

179.1 

249 

240 DC C 

240 

-3 

LQ34% 

iJB ZB W 

110 

FP. 

425 

120 

110 DR8 Data & Me 

12D 


LM2S 

1.1 29 2&9 

- 

fP. 

784 

93 

90 Ramins Indtan 

91 




- 

F.P. 

8-40 

50 

42 Dn Wrarant* 

50 


_ 

re „ 

in 

FP. 

595 

171 

in GOT Bus 

166 

-1 

RN39 

as 29 129 

120 

FP. 

40.7 

128 

122 Qo-Ahead 

122 


MM4X) 

19 4.1 169 

- 

FP. 

- 

37V 

38 Qoveu QU S Wt 

38 

-1 

re 


IK 

FP. 

423 

196 

iBOHreteya 

185 


W4-7 

22 39 179 

105 

FP. 

54.1 

105 

98 ttatathca* 

08 


WN4XJ 

19 5.1 139 

- 

FP. 

- 

96 

92 Inli Biotech 

92 


_ 


- 

FP. 

- 

50 

30 Do. Wrotaa 

48 


re 

- re - 

5 

FP. 

440 

sh 

5h Kays Food 

* 


re 

- re re 

130 

FP. 

700 

138 

122 Kfller 

125 

■fl WNOIJ 

29 39 149 

160 

FP. 

66.1 

163 

169 Lorrtrart te 

163 


WM7.7 

XX 53 99 

- 

FP. 

253 

10*2 

I6h Mdand Asatax 

15*2 




- 

FP. 

335 

15 

13% My Kinds Town 

13Vr 


re 

re _ _ 

105 

FP. 

500 

113 

IK Nghtfralght 

111 

-2 

R3J8 

2.0 39 US 

120 

FP. 

343 

127 125% Norcor 

127 


W458 

29 49 109 

80 

FP. 

253 

87 

67 CBdcrd Matacuhr 

70 

-4 

_ 



FP. 

2675 

131 

118 Rate) w 

121 

-1 

TOI2J 

29 29 ISA 

“ 

FP. 

204 

133 

128 SpacMby Shops 

133 


CM 

- 29 

IBS 

FP. 

126 

291 


238 


_ 


- 

FP. 

504 

100 

99 TR Bro Oteh C 

98 

-1 

re 


100 

FP. 

573 

100 

93*2 TO P«re bur C 

93*2 

-1 

re 


100 

FP. 

44.1 

96* 

91 TsmpMon Let Am 

85*2 

■**2 

- 

— — „ 

- 

FP. 

337 

bO 

41 Downs 

43 


re 

— — re 

100 

FP. 

54J2 

103 

99 UMwvriuad Aats 

101 

-h 

re 

— ^ _ 

150 

FP. 

413 

160 

154 Vynura 

in 


1X44 

29 39 169 

RtCHTS 

OFFERS 






Ibsur * 

Amount latere 






prtoe 

paid 

Rerun. 

1994 





P 

.. 

ctara 

Hgh Low Stock 




P 

27 

M 

228 

74jpm A^zpiti Babcock hri 




105 

M 

677 

16pm 18pm Bagdsn hdt 




3 

HI 

31/5 

Hhpnt tan gSrackrebridee 




237 

HB 

106 

23pm IBpm Qyda Biowias 



18pm 

270 

M 

877 

64pm 48pm Compass 




120 

Ni 

877 

2Bpm ISljpm Dnaoo irri 




500 

Nl 

26/5 

03pm 34pm Derwara Way 




113^ 

im 

28/6 

3pm infpm EsgM 





00 

re 

4/7 

lipm itan Psflcan 





24 

re 


- 

12 pm 10 pm Unk 





126 

Nil 

477 

23pm 21pm VTR 




21pm 


flnMoyee 

rt«) 


in W2ZH a 8 14 IBM 
200 6ft 13ft 17 20ft ZB 2S 


- UMvb+ia —V price- Pracntu u * ahciMi era 

brarad on deems soar price*. 

uufJS Total contract *; ji,<04 Crib; 15J52 

PureiABto 


PINANCIAL THUS EQUITY INENCES 

May 28 May 25 May 24 Mey 23 Mey 20 Yrego -Hite -3® 


v-vr 


FT GOLD MINES INDEX 



Hrr ftrita 
a oa tor 

■by mm tar 

a a ««• 

Braes dta 
ytataft 

52 rate 

*ta «** 

teMIM9taflta(3B) 

194191 -19 

1964.76 197997 17*595 

291 

23K7M 152296 

MkoM ■ 

2588.16 -20 

283898 2B3S98 252077 

490 

344090 190223 


267822 -27 

2751.18 289199 204990 

193 

301399 1683.18 

NorftArwteBpi) 

164794 -0* 

156491 168953 153192 

MB 

203995 136390 


fMtarey 8he»« 2392.0 239R8 244SJ 34588 2473.0 agia~? 

Ort.cAv.yWd 4^2 4^0 AT2 <UB 4^)3 ^ 4--^® 

Etan.yti.KM &ST 5.7B 5.B8 5^1 SA7 M 25'^ 

fVE reUo net 19X8 18B1 1A99 19X2 I9i55 aattt *L0a > 

pm rate iff 19^4 18.16 1866 20.16 2830 1876 3860 ^ 

~ « *- •- . 

OnBrary Star* hourly ahansea 

Open QUO HUM 11J0 1800 1800 1400 15J0 jft W 
2404k 23615 23088 24006 23980 2381.7 23980 238L5 2393J 
***** M«y24 MW23 May 


Cfl Prto*, Dm FbmU 71m Ui*m 189*. 

ftm h brack*!* rinre nurabar of uw pre ta Btata US Date* Brea Vtaaa: 100(U» 31/12)92. 
r Grid Mkwa Mk Ift) « til A \ «mfo ahang* -06 potato Yter agac 197.1 f Parte 


, rragattaJMiK Wim Crate (I) to Ctrela(4l). 


100 Inter cerates* 


SEAQ bargains 

E«*4ty turnover Pm)j- 

28957 28.185 

- 1491.7 

23981 

12305 

24363 

0839 

1378^. 
27TK ' 

Equby ba/fltotat 

■ 28909 

28,737 

26J75 

Shares traded pnl)T 5429 478.1 

t tatwdlng toia-ntetot butanaa and oraraam unmL 

4339 

s«Ui 







s 


Jig: 


•f 


» 


RvnCHB _□ a — 47 

SnarMl-Ac-H CM *M 


-2 1 M 
-llg 128V 


-1 «1 

41 

-1 43 

-4 177 


*3 IBB 
-2 *304 


= M 

*3 7B 

-5-1 

-T ft 

43 B2 

*42 

-3 *188 

+1 *120 


*\ *B 

110 

HV 30 

-3 473 

IB 

-1 60 

1023 

-1 1B7 

— 6 

T7B 

-2 IBB 

-5 145 


~«V K»V 

-5 4ZB 

-5 428 

1*4 

1* 

173 

253 

-3 330 

-l *7SV 

-3 198 

11B 

47 


27B 

4-1 154 

88 

-SB 249 

*243 

•3 *287 

183 

-4 780 


05 IBS 
07 27JJ KOTO 
43 13.4 
56 1O0 


37 135 
05 574 
04 * 

32 tat 

09 - 

04 301 

05 70S 

45 H2 

06 911 TM4 

07 65.4 


f-fi 


Ml 
4L2 
457 
41 403 

913 B73 
• 87 680 
6 1J4 
121 430 


w 


av 

FW 

25 

* 

11 

3L1 

ZI 

238 

14 

1X1 

15 

— 

41 

297 

3B 

2X7 

ZD 

— 

41 

— 

35 

225 

48 

320 

44 

356 

27 

324 

23 

1X2 

46 

117 

17 

- 

26 

40 

ret 

S3 

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36 


FINANCIAL TIMES FRIDAY MAY 17 19*4 


CURRENCIES AND MONEY 


MARKETS REPORT 


POUND SPOT FORWARD AGAINST THE POUND 


MONEY MARKET FUNDS 


Dollar woes continue 


Kay 20 


Goans Chang* &d.ritar 
nmUpoes on driy 


De'iMU 

ngn icw 


On* noon Three RWANl 
Rate WA Rate HPA 


Owe ya* 


The dollar was stable on 
foreign exchanges yesterday, 
but s howed no signs of rallying 
from recent lows, writes Philip 
Gmoith. 

Dealers said persistent bear- 
ish sentiment was depressing 
the dollar, while preparations 
for the long weekend made 
investors wary of taking posi- 
tions. The Bank of Japan was 
seen supporting the US cur- 
rency during Asian t rading 

Tim dollar closed in London 
at DM1.6438 from DM1.6447. 
Against the yen it was slightly 
weaker at Y104.405 from 
Y1 04.455. 

The Bank of England was 
reported to have intervened in 
the market to support the 
Canadian dollar. The North 
American currency closed in 
London at CSL3862 against the 
dollar from C$1.3818 on 
Wednesday. 

in Europe t he drachma and 
the escudo re main ed under 
pressure. The Bundesbank left 
official interest rates 
unchanged at its council meet- 
ing. 

Sterling had a quiet day, 
with the sterling index dosing 
at 79 3 from the previous close 
of 80. The pound closed at 
DM2.4821 from DM2A84S, and 
was hardy changed at $L5L 

■ Looking at the dollar’s lack- 
lustre performance, Mr Mark 
Geddes, treasury economist at 
Midland Global Markets, said 
neither growth nor interest 
rate arguments seemed to offer 
much support to the currency. 

“The only thing preventing 
tho dollar from falling further 
is the threat of central bank 
intervention,'’ said Mr Geddes. 

He predicted, though, that 
central bank intervention 
would only be seen when the 
market was considered to be 
short of dollars - not the situa- 
tion at present 

Mr Geddes argued that sup- 
port for the dollar can only 
come from concrete trade and 
market-access proposals from 
the Japanese government that 
are acceptable to the US 
authorities. These would prob- 
ably be timpri to coincide with 
the G7 summit in Naples in 
early July. 

This assumes - a big if - 
that prime minister Mr Tsu- 
tomu Hata win have the requi- 
site authority to deliver sub- 


CtnaAm dollar 

Against the LESS (CS par US$) 
1.30 


1-32 — 


1J34 



1.36 — 


1.38 — 


1.40 


Jan 1994 
Source Datastreem 


■ Pound In How Yak 


May 


H*2B 


£spat 

10105 

10095 

1 raft 

10096 

10068 

3rtb 

10083 

10073 

IF 

10050 

10053 


stanttve change. 

■ Dealers said the Bank of 
Canada had been seen buying 
Canadian dollars through the 
broker market Last week the 
BOC was seen selling Cana- 
dian dollars. 

Some analysts attributed the 
currency’s weakness to politi- 
cal uncertainty ahmori of elec- 
tions in Quebec and overnight 
rumours that Canadian debt 
might he downgraded. 

Although the BOC is known 
for its active involvement in 
the mar ket to smooth the dol- 
lar, it was also suggested that 
being seen to sell its own cur- 
rency last week had backfired 
on the central bank. 

Mr Nick Parsons, treasury 
economist at QBC in London, 
disputed this assessment say- 
ing: “By dealing on both sides 
of the movement, they have 
shown themselves to be 
extremely professional.” He 
described the Bank's interven- 
tion as “well judged, well 
timed and well conceived." 

Mr Parsons predicted that 
the dollar would probably be 
volatile in the run-up to the 
Quebec elections, expected in 
September. He noted that there 
had been similar currency vol- 
atility ahead of the Meech 
Lake and Charlottetown consti- 
tutional accords, in June 1990 
and October 1992. 

■ In Greece, the prime minis- 
ter Mr Andreas Papandreou 
declared victory in the govern- 


ment’s defence of the currency. 
He said: "The battle for the 
drachma is continuing and is 
critical, but it has been won~J 
think that essentially the 
drachma issue is closed." 

He said the issue of high 
interest rates, necessary in 
recent weeks to support the 
currency, would be over 
“within a few days, or a week 
or two at most" Key interbank 
rates are in three digits, and 
banks have started to fraise 
rates to customers. 

The prime minister’s opti- 
mism was not shared in the 
markets where traders 
reported seeing a lot of private 
individuals trying to get their 
money out of Greece. Talk of a 
15-20 per cent devaluation, in 
the air at the end of last week, 
has resurfaced. 

Dealers said tfw drachma’s 
woes were spilling over into 
the escudo. The Portuguese 
currency closed at Esl04.1 
against the D-Mark from 
Esl0&5 on Wednesday. In fact, 
the escudo bad been under fire 
in March and early April, 
before the drachma. 

Some analysts that the 
weakness of the escudo, 
drachma and Italian lira - 
which closed at L9TQ.6 against 
the D-Mark from L9G9 - was 
the result of investors fleeing 
the high-yielding Southern 
European countries for the 
safety of the D-Mark. 

■ The futures market had a 
calmer day after the recent 
bout of frenetic trading. The 
December euromark contract 
traded 36,000 lots and closed at 
94.79, two basis points up on 
Wednesday. The December 
eurosterling contract traded 
nearly 18,000 lots to finish at 
93.83 from 93.80. 

In the German money mar- 
kets. call money eased to 5.15/ 
5.25 per cent from 5.25/5.35 per 
cent The Bank of England, 
meanwhile, cleared a £800m 
shortage in the UK money mar- 
kets with relative ease. Over- 
night money traded between 
3‘/i and 5% per cent 

■ OTHER CtmnSNCVKS 


Europe 

Austria 

Origami 

Donmnrk 

Finland 

Franca 

Germany 


Inland 

Italy 

LmBfDbcxjy 

Nettwtareta 

Norway 

Portugal 

Spw 

Sweden 

Swaziland 

LOT 

Ecu 

SOR 


9 7227 
81653 
*4S«? 


(SOI) 17.455G 
£BFr) 51.11 1 » 
(DK4 
(FM) 

|FFt> 

(DM) 2.4S21 
(Or) 372.120 
AS) 10177 
W 2405.74 
(LFr) 511118 
|H) 2.7835 

(Mr) 107502 
lEs) 258278 
(Pal 201548 
(SXr) 11.6895 
(Sft) 21192 
<0 

- 1.2893 

- 0835367 


-00218 46C 
-002*7 «8« 
-00OJ* 171 
-OCT 545 
-0.0725 6C 1 
-0302 7 80S 
-*227 488 
-0D021 >88 
-03 713 
-00207 G64 
-000*2 67? 
-000*3 4*3 
•098 974 
-01*4 447 
+00*42 8G4 
*00006 ITS 


SIC I?.4j£5 
572 51 TEG 
9. 7231 
8T920 
84987 
83? Z*tK 
m 37x80! 
185 10196 

00* zna-cc 

572 51.7820 
850 2-7855 

MO 187813 
581 258394 
5U 204801 
987 11.7428 
206 2- 1 208 


- 282 
• ns 

■ 877 


17.4225 

Sl.OCTO 

won 

8 1360 
84666 
2-4760 
366.123 
VO 1 54 
2*0229 
510070 
2. 7782 
TO 7351 
257379 
20*385 
IT. 882* 

3.U22 


17.4513 0.3 17.4456 OS 

5H268 -04 SUMS -OS 508788 A3 
9.7304 -09 9 7385 -07 9 7568 -43 


84666 

14829 

i.oia 

241394 

51 1288 
2 7832 
107445 
259253 
205.011 
11.7111 
21178 


-07 8494T -05 8.4723 0-1 
-0.2 3462 0 0 2.4672 OB 


-04 1 0186 

-20 242X80 
-0 4 51-1368 
0.1 2.7839 
06 107571 
-45 281.196 
-2 7 206 Ml 
-2.2 11.7418 
06 21t44 


-0.4 1 0196 -02 

-75 7*8009 -21 
02 SO 9788 03 

-01 2.7807 06 

-06 107482 06 
-4.5 

-2.8 200400 -VO 
-18 11.0300 -12 
0.0 20882 1 5 


-0.001 883 - 90S 12906 I28.T3 1.2912 -1.7 1.2813 35 12887 03 


Bank of 

fr y ted* 

114? 
1144 
1155 

01.3 
1006 
124 1 

10*. 5 
T7.7 
1154 
1163 
867 

B&l 

78.3 
1177 

799 


Argent ina 

Brazil 


|PMo| IJSWZ -00009 366 
(CO 273853 


15081 1.50*6 - - 

-88.40 7E3 - 9*1 27*1 00 2S440Q - - - 

Canada (CSj 20931 -00054 919-9*2 20945 20043 2.0847 -OB 20086 -10 3.1140 -1.0 

Mexico (Near Petal 4S960 -00167 889 - CTO 50070 *96*7 

15110 15075 15091 07 15070 08 15045 04 


USA 


0) 15100 -0 0008 095- 15* 


Ausra&a (A» 
Hong Kong (HCS1 
India (Rs) 

Jsprai (Y) 

Malaysia IMS) 

NawZealMl (NZ3) 
Phlppmas (Paso | 
Sauri Arabia (SR) 
Singapore (SS) 

S Africa (Com.) (Rj 
S Africa (Fc.) (R) 

South Korea (Vtfoc) 
Taiwan *TS) 

Thatand £BJ) 

rsonnuiaruarza.au 
txe an natee oy anwa t 
me DgU Spot aria <u 


23630 2065* 306 

II 8725 11.0*03 11.6671 
-C QZB3 *92 ■ 850 47396C 473980 
-0 169 562 - 731 157 620 156570 157357 

19183 38891 
25708 25830 


04 20664 04 206T4 03 
08 11.8533 04 11.6802 -0.1 


3 JO 150433 21 152332 34 


3 5886 OJ 2S702 -04 35767 -04 


20607 -00037 5S3 - 630 

11.6652 -0X69 805 - 634 

475671 
1575*7 

39025 -00182 996 - 061 

25873 -00003 66* -8BI1 

*09197 -0.0344 810 - 564 41 1830 408800 

55625 -00034 806 - 6*5 58863 55630 

23163 -000*4 148 • 177 

55186 -OC275 127 - 205 

7355* -0.1176 361 • 726 

121755 -05e 741 -839 

40874* -00924 320-187 409700 408200 - - - - - 

380357 -CMC? 082 - 621 380870 375740 - - - 

****** * maltreat Soot aur mm <x*r*» her tow rtaornri ptaoa*. fomanl raw n ara rSrecoy *» i 
9te kra new oa cutewd fly me Bara of enteral. Brae en n oa HM ■ HIQJM Otet end laa-ratet In bna> 1 
m 1HE MUnUTlBCi CtSSWO ! 


885 

683 


184.3 


23180 23125 
55388 54901 
7 3661 7 2311 
13T88Z 127610 


I tom ' 


) SPOT RATES. Sana ateiw are r aw te by me F.T 


DOLLAR SPOT FORWARD AGAINST 7hE DOLLAR 


M« 28 

Ungary 

lei 

tart 

Fob* 

Ante 

UA£ 


155328- 155496 
283150 • 1837 JO 
0*486 • 04519 
337751 - 338325 
2884*7 - 287051 
55109 - 55522 


103900 - H2S5D 
174500 - 175000 
12972 - 02932 
223750 - 221010 
1837.00 - 1901JJ0 

38715 - 38735 


May 28 

Ctoang 

md-poovi 

Orange 

on day 

BtfaOor 

spread 

Day* mid 
tkgh low 

One month 
Rate HPA 

Three utoitlha 
Rite HPA 

One year J.P Morgan 
Rato *PA Index 

Europe 

Austria 

(Schj 

115800 

-00075 

575 - 62S 

110730 110460 

11.5675 

-00 

11089 

-03 

11.4828 

07 

1034 

Bd#unt 

(BFfJ 

330500 

+00025 

300 - 700 

330700 33.7870 

3388 

-1.1 

3392 

-00 

33.885 

-01 

1040 

Denmark 

(DKfl 

64391 

-00016 

373 - 408 

64445 64265 

04486 

-1 3 

8.4616 

-1.4 

04871 

-04 

104.3 

Friend 

(FM) 

&4080 

-0003* 

022 - 137 

54288 50914 

5.4105 

-OB 

5.4125 

-00 

5.4255 

-03 

781 

Franca 

(FFi) 

66188 

-0 0045 

18C - 195 

58292 50115 

5.6253 

-1.4 

5.6342 

-1.1 

5.608 

02 

104.8 

Gormany 

ID] 

10*38 

-00009 

43S • 4*1 

1.6460 1.6406 

1045 

-0.9 

1.6484 

-06 

1.84 

02 

1003 

Greece 

fl» 

2*6*45 

-2S*S 

100 - 790 

247000 244.000 

247.795 

-06 

248.645 

-38 

250945 

-10 

701 

Helena 

OQ 

14837 

-00025 

829 - 8«4 

14860 1.4816 

1.4823 

1.1 

1.4801 

10 

1.4787 

as 

- 

Italy 

IU 

159524 

+1.14 

485 - 563 

1598.00 159200 

1599.64 

-33 

1607.79 

-31 

163504 

-20 

703 

Luxembourg 

(LFr) 

330500 

-aoas 

300 - 700 

33.8700 33.7870 

3368 

-1.1 

■«<» 

-08 

33885 

-01 

1040 

iwnsms 

(B) 

1043* 

-00017 

429 - 439 

10480 10*10 

10448 

-00 

1.848 

-08 

1039 

02 

104.4 

Norway 

iwo 

7.1196 

♦00014 

ITS - 213 

7.1340 7.1100 

7.1228 

-00 

7.1241 

-03 

7.0B96 

03 

959 

Portugal 

(B) 

171050 

+075 

900 - 200 

171 550 T 70 450 

1 72.015 

-08 

173635 

-6.0 

178 

-4.1 

02.7 

Spain 

(Ptaj 

136465 

-0015 

*40 - *9G 

135 650 1 35 080 

135055 

-35 

13805 

-32 

13059 

-2.3 

80.3 

Sweden 

ISKr) 

7.7417 

-0.0247 

379 - *54 

7.7B03 7.7250 

7.7602 

-2.9 

7.7862 

-20 

70467 

-1.4 

81.3 

Switzerland 

(Sftl 

1.4035 

+00012 

030- (HQ 

1.4055 10985 

1.403* 

01 

1.4025 

00 

1088 

1.1 

1039 

UK 

(Q 

10100 

-O0OC9 

095 - 10* 

10110 10075 

10091 

07 

10076 

06 

10045 

04 

880 

Ecu 


1.1712 

+00002 

707 - 717 

t.172* 1.1692 

1.1888 

20 

1.1656 

1.9 

1.1787 

-06 

- 

SOR 

- 

1.41318 

- 

- 

- 

. 

- 

- 

- 

- 

- 


Americas 

Argentina 

(Pteo) 

00982 


981 - 982 

09982 09976 

m 

. 


. 


m 


Braza 

tCr) 

181365 

-5903 

360 - 373 

1814-20 181060 

- 

- 

- 

■ 

- 

- 

- 

Canada 

(CS) 

10882 

+000*4 

858-865 

1.3868 T.3824 

10883 

-1.8 

10914 

-10 

1.4035 

-1.2 

832 

Mexico (New Peso) 

30100 

+0013 

050 - T50 

30150 30011 

3011 

-04 

30128 

-00 

33202 

-03 

- 

USA 

P) 

- 

- 

- 

- 

- 

. 

- 

■ 

- 


1000 

Padflc/MIdcSe Eaet/AMca 
AustoBa (AS 106*8 

+00026 

643 - 6S2 

10667 10615 

10701 

-4.6 

1.369 

-10 

1.3873 

-02 

890 

Hong Kona 

(HKS) 

7.7255 

- 

250 - 260 

7.7260 7.7250 

7.72S 

01 

7.7275 

-01 

7.7417 

-02 


India 

(Rnf 

310700 

- 

675 - 725 

310725 310675 

31.45 

-3.1 

31.595 

-20 

. 

- 


Japan 

m 

10*405 

-005 

380 - 430 

104.500 104.000 

1040 

2.4 

10377 

2.4 

101045 

20 

145.4 

Malaysia 

IM9 

208*5 

-0.0105 

835 - 855 

20660 20835 

2077 

3.5 

20735 

1.7 

2.6045 

-08 


New Zealand 

(NZS) 

1.7003 

+00012 

995 - 010 

1.7056 1.6978 

1.7022 

-10 

1.7068 

-10 

1.7285 

-1.7 


PhOpotnM 

(Peso) 

27.1000 

- 

500 - 500 

27.2500 209000 

. 

. 

. 

. 

. 

- 


Saudi Arabln 

(SR) 

37502 

. 

500 - 503 

3.7503 3.7500 

37508 

-00 

3.7528 

-03 

3.7655 

-04 


Singapore 

(SS) 

10340 

-0002 

335 - 345 

10360 10335 

10333 

0.6 

1.533 

03 

1.535 

-01 


S Africa iComJ (RJ 

3.6535 

-0.016 

520 - 550 

36665 364T5 

3.889 

-01 

3.6973 

-4.8 

3774 

-33 

- 

S Afnca (Pn.) 

(R) 

40050 

-0.075 

950- 150 

40800 4.7800 

40387 

-04 

4.8975 

-7.7 

- 

- 

- 

South Korea 

(Won) 

806050 

+01 

500 - 600 

800700 806000 

609 05 

-40 

81305 

-32 

83105 

-31 

- 

Taiwan 

rrsi 

27.0700 

-0045 

500 -900 

27.1500 27.0*00 

27.09 

-00 

27.13 

-09 

- 

- 

- 

Thaiand 

(Bt) 

261900 

-0005 

800 - 000 

25-2000 25.1800 

202625 

-30 

2509 

-32 

2087 

-2.7 

- 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 

Mw3B BFr DKr Ffi- DM 


NKr 


Es 


Pta 


SXr 


SFi- 


CS 


Ecu 


Belgium 


(BFr) IX 19033 16X *856 1.982 4713 5447 2103 505 A 400.1 2287 4.148 1.957 AMS 2954 3064 2522 


EMS EUROPEAN CURRENCY UNIT RATES 

May 28 Ecu can. Rate Change %+Afrom % spread Ddr. 
rates agairat Ecu on Hay can, rate » waakaat ted. 

15 


Danmark 

PKI) 

5207 

10 

0728 

2053 

1-047 

2478 

g«q 

1108 

2607 

2103 

1202 

2.179 

1.028 

2.153 

1053 

1621 

1026 

Ireland 

0008623 

0.790787 

-0000012 

-221 

600 

ftwet 

(FR) 

6024 

11A6 

10 

2026 

1000 

2839 

3281 

1207 

3040 

2410 

1378 

2498 

1.179 

2467 

1.780 

1850 

1019 

Nothertanda 

219672 

218290 

-0.00288 

-104 

5u48 

Germany 

(DM) 

2009 

3917 

341 B 

1 

0.410 

9706 

1.122 

4031 

104.1 

8239 

4.710 

005* 

0403 

0043 

0008 

6350 

0519 

Belgium 

*00123 

39.6904 

-00391 

-100 

502 

Ireland 

m 

6021 

9051 

8034 

2^38 

1 

2386 

2.735 

1056 

2537 

2009 

11.48 

2082 

0062 

2056 

1.483 

1540 

1-266 

Germany 

1.9*964 

102819 

-000287 

-1.10 

501 

Italy 

(U 

2.122 

0404 

0352 

0103 

0042 

100 

aiie 

0448 

1072 

8489 

0485 

0088 

0.042 

0087 

0063 

60*2 

0054 

Prance 

B03883 

609609 

-000633 

088 

296 

IMlMfftvndB 

(FI) 

1806 

3492 

3047 

0892 

0066 

8650 

1 

3081 

6278 

7348 

4.199 

0781 

0059 

0752 

0042 

58.61 

0.463 

Denmark 

7.43679 

706432 

-000331 

108 

224 

Norway 

(NKr) 

4704 

9045 

7092 

2009 

0047 

2241 

2090 

10 

2400 

1902 

1087 

1071 

0030 

1047 

1-405 

1*80 

1.199 

Spate 

154050 

159.020 

+023 

309 

074 

Portugal 

(Es) 

1079 

37B4 

3285 

0061 

0094 

9320 

1078 

4.162 

100 

79.17 

4028 

0820 

0087 

0010 

0585 

81.01 

0499 

Portugal 

192054 

200083 

+0459 

386 

000 

Spate 

(Pta) 

2409 

4.755 

4.149 

1014 

0498 

1178 

1061 

5057 

1280 

100 

071B 

1036 

0489 

1.023 

0738 

77.07 

0630 







Sweden 

(SKi) 

4372 

8017 

7057 

3123 

0071 

2061 

2082 

9.198 

2210 

1749 

10 

1013 

0055 

1.790 

1092 

1340 

1.103 

NON ERM M3JBERS 





Switzerland 

(Sh) 

24.12 

4088 

4.004 

1.171 

0480 

1137 

1014 

3073 

1210 

9601 

5017 

1 

0472 

0086 

0713 

7407 

0606 

Greece 

284013 

289028 

+3.75 

904 

-5.02 

UK 

W 

51.11 

9.723 

0484 

2-482 

1018 

2409 

2784 

1075 

2580 

2040 

1109 

2119 

1 

2093 

1010 

1570 

1089 

Italy 

179319 

187102 

+706 

406 

-048 

Canada 

(CS) 

24.42 

4045 

4.054 

1.188 

0488 

1151 

1030 

0136 

1234 

07.71 

5086 

1012 

0478 

1 

0721 

7500 

0616 

UK 

0788749 

0777719 

+0002886 

-1.15 

508 


US 

Japan 
Ecu . 

Yen per 1,000; 


(S) 3386 
(Y) 3243 


6439 
61.09 
70 43 


6j819 

53-83 

6582 


1-B44 

15.75 

1.926 


6874 

6458 

6790 


1595 

15286 

1889 


1.844 

1708 

2160 


7.119 

6621 

6340 


171.1 

1639 

2064 


1364 

1296 

1567 


Qaridi Kronor. French Franc; Norwegian Kroner, and SwwSrii Kronor pw 10; Mgtei Fiano, Ee cudO. Lha end Peseta per 


7.742 
74,18 
9089 
101 


1.403 

1645 

1.644 


6882 

6345 

677B 


1088 

1628 

1.624 


1 

9081 

1.171 


104-4 

1006 

1223 


6854 

6179 

1 


■ D-MARK FUTURES |M|| DM 126X0 per DM 


■ JAPANESE YCT FU7UB8S (IMM) Yen 120 per Yen 100 



Open 

1 ntonf 

Change 

High 

Law 

EsL val 

Open W. 


Open 

Latest 

Change 

High 

Low 

EsL val 

Open ire. 

Jlkl 

0.0068 

08081 

+00009 

00092 

00088 

N/A 

N/A 

JlSI 

09593 

09584 

-00010 

09624 

09578 

N/A 

N/A 

Sep 

06075 

00074 

+00008 

08062 

06070 

N/A 

N/A 

Sap 

09668 

00652 

-00010 

09680 

09648 

N/A 

N/A 

Dec 

“ 

08078 

■ 

00078 

- 

N/A 

N/A 

Dec 

" 

09735 

- 

- 


N/A 

N/A 

■ SWISS NUUK PVTUMHI (IMM) SFr 125000 par Sft 



■ STBBUMQ 7UTUHS (IMM) £62,500 per £ 




Jut 

07121 

07124 

-00004 

07143 

07121 

N/A 

N/A 

Jun 

10094 

15094 

400012 

10108 

10078 

N/A 

N/A 

Sep 

a7132 

07132 

-00008 

aTiso 

0.7129 

N/A 

N/A 

Sep 

1.5070 

10060 

+00014 

10090 

10060 

N/A 

N/A 

Dec 


07165 

" 

07170 

0.7180 

N/A 

N/A 

Dec 

' 

10070 


10070 


N/A 

N/A 


-7 

-11 

-22 

-28 


Ear cereri rare eat ty Ore Bropaan Gomri ral aa. Oorandea era la draeanrine iart»e teeaglh. 
Percentage ctangea mm Mr Ecu e poattra chrage dratu « rtr cuiency. Shwgmte rime dm 
rano batman reuspraoOa: the percentage dlfcrance Demean ihe actual nrtaM aid Eou central rate 
fare cmrency. and me lararnaan pamtoad parentage devtadon of Ihe cwrmcjft nwrfeat rate (mm to 

(!7rM3) Stedng end HNn Lka euapmtM (nan EPM. Aduttnanl cebMed by V" Rnmolel Ttnee, 

■ P1HUW1 PIBA 8M 8/> OPIlOHl 01050 (cents per potaxfl 


Money Market 
Trust Rinds 



m Sa urn 

G9U8 
now inniu 
tin I *n|i«M 
«M eraljJte 


ri - i~i n i yini — tfi-oiura 
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WORLD INTEREST RATES 


MONEY RATES 

May SB Over 

right 

One 

month 

Threa 

mtfts 

ax 

mths 

One 

Lonfe. 

Inter. 

DbL 

rate 

Rape 

rate 

Belgium 

sa 

6% 

5ft 

5ft 

68 

7.40 

400 

_ 

weak ago . 


SM 

5M 

5ft 

Bft 

7.40 

400 

— 

Ranee 

98 

SB 

Stt 

5ft 

Oft 

040 

— 

6-75 

week ago 

6H 

58 

5ft 

5ft 

5ft 

500 

- 

075 

Germany 

5.13 

60S 

008 

008 

013 

000 

400 

020 

week ago 

50S 

505 

003 

408 

408 

600 

450 

503 

Ireland 

98 

54 


6ft 

Bft 

- 

- 

non 

weak ago 

6fl 

5ft 

8 

5ft 

5ft 

- 

- 

005 

naiy 

78i 

T¥> 

7ft 

7% 

8ft 

— 

7.00 

705 

week ago 

7% 

7* 

7% 

7ft 

7ft 

- 

700 

705 

Neteartanda 

5.15 

018 

019 

020 

025 

_ 

505 

_ 

week ago 

5.09 

018 

003 

0018 

499 

— 

60S 

_ 

Swftzertand 

4» 

4+4 

4ft 

4ft 

4H 

6025 

300 

_ 

week ago 

4ft 

4H 

44 

4ft 

4* 

0025 

300 

- 

US 

4tt 

4% 

4fi 

4ft 

5ft 

- 

350 

_ 

week ago 

4tt 

414 

4* 

4ft 

5ft 

— 

350 

_ 

Japan 

2 

SM 

2ft 

2ft 

2ft 

_ 

1.75 

_ 

week ago 

24 

2K 

24 

2ft 

2ft 

- 

1.78 

- 

■ SLfflOR FT London 








Interbank Ftadng 

- 

444 

4ft 

5 

5ft 

_ 

_ 

— 

week ago 

- 

4ft 

4ft 

48 

5ft 

- 

_ 

- 

USDobrCOs 

- 

4.18 

4.40 

472 

506 

_ 


_ 

week ego 

- 

4.16 

408 

473 

507 

_ 

_ 

_ 

SDR Linked Da 

- 

3ft 

3ft 

3ft 

4 

_ 



week ago 

- 

3ft 

4 

4ft 

4ft 

- 

- 



MOUTH BUTOMAHK FUIUWE8 (UFFEy DM1 m points of 1X76 


Strto 

Price 

Jun 

- CALLS “ 
Jui 

Aug 

Jun 

— PUIS — 
Jli 

Aug 

1-42S 

014 

808 

317 

- 

001 

019 

1050 

070 

078 

006 

- 

015 

051 

1j«75 

308 

368 

416 

001 

064 

106 

1000 

104 

205 

202 

0.44 

1.34 

300 

1005 

001 

nen; 

106 

100 

2.68 

333 

1050 

- 

008 

003 

412 

407 

508 



Open 

Sett price 

Change 

rtgh 

Low 

Est uol 

Open ire. 

Jun 

9487 

9407 

. 

9400 

9*08 

13885 

162394 

Sep 

9495 

9405 

4002 

9408 

9404 

28747 

184878 

Deo 

94.78 

9479 

+002 

9482 

94.77 

360*8 

239138 

Mar 

B465 

9464 

+001 

9467 

9461 

25955 

211941 

■ THRta IIOMTH EUROCJRA 

MT.I1ATK HJTWKS (UFFS LlOOOm points Of 100ft 


Open 

Sett price 

Change 

Hgh 

Law 

ESL vd 

Open ktt. 

Jun 

9205 

9224 

+005 

9227 

9218 

437a 

30088 

Sep 

9204 

9227 

+002 

9230 

anon 

5913 

50142 

Dec 

9207 

9207 

+001 

9210 

9203 

2316 

48884 

Mar 

9109 

9108 

-001 

9109 

9105 

1095 

12818 

■ im 

MOSTIH 

OROim 

• FRANC FUTUna (UFFQ SFrlm points erf 100ft 


Open 

Sea price 

Change 

Htfi 

Low 

EsL vol 

Open kit 

Jun 

9080 

95.78 

-O01 

9500 

9075 

2293 

22887 

Sep 

95.77 

95.78 

+0.02 

95.78 

9372 

3207 

20868 

Dec 

9507 

8508 

-001 

9069 

9503 

641 

7851 

Mar 

9057 

9053 

-002 

9507 

9501 

607 

5132 

■ THUS 

mum woo vunnes (uffe) Ecuim points a iooft 



Open 

Sett price 

Change 

»Bh 

Low 

EsL vol 

Open inL 

Jun 

8308 

8390 

-009 

9397 

9385 

2538 

9706 

Sep 

8416 

34.16 

-004 

9418 

94.06 

1072 

12020 

Dee 

9406 

9406 

-am 

94.10 

94.00 

279 

7804 

Mar 

9385 

9308 

- 

9308 

9380 

480 

3218 


' UFFEMun mdod an APT 


ECU Linked Do add rtee: 1 nrtfa W; 3 n*« Btt; 0 mta flifc 1 veer SSL 3 UBOR kwbwik lUng 
<■*!■* •" *** *> ,a g td . wt nwrlwt by four rtwncahrtBW 11«n each moOkm 
Otf. Ttw banka m Bmhas ihnc, Bank el Toa^o, Bodoya and Nattaul IMbU M D 
MU ooeo era ahum hr the domeedc Money Raw, US $ CDa M SOR LMad DapodM (M- 

EURO CURRENCY INTEREST RATES 

May 28 Short 7 days Orta Three Stx One 

tatTTI nodoe month months momha >w 


0MQ Sim paints of TON 


Jun 

Sop 

Dee 


Open 

9028 

9408 

94.11 


Latest 

9628 

94,71 

94.16 


Chatge 

•603 

+005 

+0.06 


High 

9528 

94.71 

94.17 


Low 

9625 

9408 

94.11 


Esl vol Open tnt. 
N7A N/A 

N/A N/A 

N/A N/A 


Belgian Franc 

sh 

-su 

6h 

-si* 

5*1 

-eh 

sh- 

■ 5*4 

sft 

Danish Krone 

ek 

■Si 


5* 

sU 

■6ft 

all- 

-5ft 

5 a 

D-Mark 

s\ 

■Sla 

5ft. 

■5ft 

5ft 

■6ft 

6ft 

-5ft 

5ft 

Dutch Gulder 

s V 

-aft 

Va 

-eh 

5ft 

Sh 

5ft 

■eh 

6ft 

Ranch Franc 

eft 

6ft 

5}J 

■5ft 

631. 

■Sft 

6ft- 

-sft 

6 a 

Palugueae Esc. 

9%' 

■Vt 

11 - 

10)2 

15V 

. 14lj 

14- 

ia*a 

12^* 

Sparteh Peseta 

7H 

■Th 

7H- 

■Th 

73 

■71b 

7H- 

■7ft 

7% 

Sterling 

5%. 

■S3, 


■*h 

6 - 

*a 

Sft 

■6ft 

5ft 

arise Franc 

4‘l 

.04 

4^5 

■4 la 

4A' 

-4ft 

4ft- 

*ft 

4ft 

Can. Dote 

32 

5ft 

5^ . 

■Bh 

tPt ■ 

-A 

eft 

-eft 

Bft 

U8 Deter 

4d 

■4i 

4*4 ■ 

■*h 

4ft 

■4 ft. 

4*8 ■ 

<h 

431 

Rolan Lira 

9* 

Th 

TV 

■th 

7*s. 

-7 1 * 

7 V 

■Th 

7h 

Van 

aV 

-2i 

2ia- 

-2 ft 

2ft 

■aft 

aft- 

■aft 

2h 

Asian $Skig 

3%- 

•3* 

3^ 

■3V 


4ft 

A- 

4^ 

5ft 

Owt tom mai i 

we cafl i 

tarttra 

LB Doter and Yen. 

oraere: 

mo dayar node*. 


5Sk-ft 
5H'« 
5U-5>8 
6M-5A 
_ 5*'5»a 
11V 11^'1(»» 
. 7 % 7 *. 7 S, 
sS-BH 

4A-4A 
7-6% 
s*a-5% 

§ - 9 

■54 5H.5J4 


■54 

gA 

SA 

5*8 

5i 


4d 

6A 

4H 

Th 


■ US THBASmv mu. FtfTlIITO (ttttfl) Sim per 100 * 


Jut 


Dec 


9507 

95.12 

9408 


95.B9 

95.15 

9409 


+604 

+605 

+004 


95.99 

05.15 

9400 


9507 

95.13 

0408 


N/A N/A 
N/A N/A 
N/A N/A 


Al Open temaa Hgc m brprevtooiday 

OTOQW8(LIFFgDMimpoW4af100* 


Strike 

Price 

Jui 

- CAULS - 
Sep 

Dec 

Jib 

— PUTS 
Sep 

9475 

014 

non 

027 

002 

008 

9500 

002 

014 

016 

0.15 

019 

9525 

0 

006 

009 

038 

036 


Dec 

l)M 

037 

005 


NOtTTM P1MI wmiBBg IhtATV 1 ) Parte Intarbanfc offered raw 


U. <4L tew. 


dun 


Dec 

Mor 


Open 

9440 

94JH 

8428 

9427 


Sett pdOS 
9402 
84.48 

9408 

9424 


Change 


CHa *181 Puts Zm. Pn«taie dey-a span kt. Cate 261163 Pus ifitcsa 
WlAllC OPTIOW8 (UFFEI SFr 1m poWa Of 100* 


-a 02 


■THRO HOHTH BUnODOlLMt ( 


Hgh 

Low 

Est Vri 

Open w. 

Strike 


- CALLS - 



— PUTS 

84.44 

9439 

5087 

64070 

Prioe 

Jun 

Sep 

Dec 

Jun 

Sap 

9433 

94.48 

15362 

49056 

9879 

008 

019 

032 

005 

ais 

9041 

9436 

7,718 

3B01B 

9600 

001 

009 

0.11 

033 

031 

9408 

9403 

3.724 

37315 

9025 

0 

004 

006 

047 

051 

Sire prints of 100K 



Eei. rt. M. Grill too Pun 

10a R+riOue dey-e opoi kit, CM* 4M 

Punaeoa 


Dec 

631 

645 

005 


Dea 

Mar 


Open 

Sett price 

Change 

»9h 

Low 

Est vri 

Open W. 

9536 

• 9507 

+004 

9508 

9605 

487 

5883 

9407 

. 9408 

+006 

9408 

9407 

401 

2074 

94.12 

94.13 

+0.10 

94.13 

94.12 

45 

1823 

83.87 

9308 

*0.10 

9307 

9307 

30 

1079 


PNNtMdiy'evoL Cate 60MPuta 7097. Prev. dn/a epan ln«. CHi <0gjS81 Pua 


UK INTEREST RATES 


LONDON MONEY RATES 

May 20 


Own- 

right 


7 days 
notfca 


One 


Three Stx 
months month* 


One 


tntertwf* Storing 

SJa-312 

4%-4*a 

5ft -Ah 

5ft - Sft 

Sft -Sft 

6-6% 

Steteg CDs 


- 

4B-4R 

5ft- 5ft 

6ft - 5ft 

SH - S2* 

Traouy BBs 

- 

- 

4^ -4fi 

4*-4U 



Bar* BHa 

- 

- 

4% -AH 

4S - A\ 

5>a - Sft 

. 

Local aulhonty dope. 

4H-4JJ 

45J-4U 

5ft -4H 

5J* -5 

sft - sft 

Sh-A 

□bcount Market deps 

5*2 -4 

A -4% 




- 

UK clearing bank base lending rata 5*« per cent from Februwy 0 1994 

Up ta 1 1-3 3-6 66 

month month months months 

9-12 

months 

Certs of Tax dep. (£100,000) 

i*a 

4 

3^1 

A 

eh 


Cm of ta dap. unite £ 10(1000 U l< 2 pc. Oapoda wtMwi tar caan Itpc. 
tec teotte rate of daouit C7O0pc ECOO teed naaa Sag. Etpat Ftmcc Mate 141 day ApN 2 B, 
t99CAcyeednnlvpariMMB/2S, i9MnJin2S. IBB*, Schentee 1 4 M 13»e. na tanc a me tar 


period Apr 1 . 1 99* to 2B. IBM. Schamea IV B V ojaapa Ftaenee Heuae 1 
May 1, TSM 


Bate stipe tram 


■ THB6E MOffTH STBBUWO FUTUMg flJFFE) E5QO0OO pottUS Of 1QQN 



Open 

Sett price 

Change 

High 

Low 

EsL vri 

Open bft 

Jui 

94.70 

94.71 

+002 

94.72 

9409 

10660 

66405 

Sep 

9432 

9434 

+003 

9438 

9430 

13972 

89662 

Dec 

8302 

9303 

+003 

9305 

8076 

17823 

125612 

Mar 

9302 

9306 

+0.01 

9331 

8301 

6780 

62749 


Haded on APT. M Open Mart Igc era lor prerioua day. . 


■ aMOBTyreiajrooemows^uKFEjEsro.txMpowaor 100% 


suite 
Price 
9450 
8475 
9500 

CeL *oL tofid. Cals 3280 Puts 2781 PngMous toy's open leu Cate 1783BB Puts 16 OIOO 



“ CALLS - 



— PUTS - 


Jun 

Sep 

Dec 

Jib 

Sep 

Dee 

021 

013 

0.10 

0 

029 

077 

003 

006 

0.05 

007 

047 

007 

0 

0.02 

002 

029 

089 

1.18 


BASE LENDING RATES 


Man & Company 525 

Afcd Trust Baric __12S 

AS Baik 525 

•Henry Ansbeehar S2S 
Baric ol Benda 525 
BaKoBtoaoVbKaya_125 

Bank ol Cyprus 525 

Barit a! Intend ... 125 

Bankribxfa 52S 

Bar* or Scofcatd _&28 

Barclays Baric 525 

BA Be ot Md East 525 

■Bowi SrifOey 5 CO LM 025 
OLBertcrMerfend... 525 

CNbankNA 025 

Cfydeadaia Barit 525 

Tho Ochjpsrim Bor*. 525 

COUDS & Co 5.25 

GrwHLycnnaa 525 

Cypnn Populw Baric ^25 


Dunt3«i LawrtQ 525 

Brtjr Bank UrriM_ 628 

Fateftdd & Gen Bank „ 6 

•Roban Rerring & Co 525 

Orabar* 52 s 

•OtenassMshon 52S 

Hatte Bank AG Zurkfi . 525 

•Hambreo Baric .625 

HrtatPo & Gen Jrw 8k. 625 

•Hi Samuel -...-.525 

C Hoars 5 Ca -.625 

H ontp ong 8 ShatghaL S2S 
Alan Hodge Bor* 125 
WaapcB Joseph 8 Sons 52S 

Lktyda Barit -.525 

Metro Bar* im 625 

MriandBank 525 

’MoiktfBariang 8 

NanMaMnsW 525 

W flo aBi uUw r M 525 


* ntodmrgheGuBranbM 
Corporaun IJmledlsno 
kmgerauttiorlMdas 
abartttglnaauflan. 8 
RayriBk at ScoAnd_ 525 

•aitata VMntet Sacs . S25 

TSQ .626 

•UnSad Bk at Kuwaft — 525 
Untty Trust Bonk Pfc— 925 

WoatemThist —525 

Writoamiy Laksaw 525 
YMahtaBenk 525 

• Mombere of Bridah 
Merchant Banking A 
SacurWm Houses 
AaeacWkn 





Commodities cm the move - 
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■telCIteBClfcan Cte teaarC tefaa,UiBJte3WIWq»X 


I 


.Duff Forecasts and Market Myths for 1994 

Will soar. <J vile!. on .r.-.i ceni : .nut' gold * moV oo^r"c:-.l • 


. Japan t oconomy i jloct mark.’! 
d !hcl :n fv.Vc-iMcney inc sconce la 

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CtUUtlNCY WMCMBIT 


•wunnutwihj? 



WtoeteMBBDrt . 

iiWflP «« 

.wv. 


77Loo6H«MI 

LeotoeltObiMD 



D« 8MJ»a TO5 


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PNANCIAL TIMES FRIDAY MAY 27 1994 


WORLD STOCK MARKETS 



l-'lM 







10 _ 
3.1 

6-1 — 
id _ 
3720 3.1 — 
7420 02 _ 

40Ull = 



17.1W id 

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6.7 
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3.6 
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42 
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... 

1 40 
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1 20 

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1 10 

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1 10 

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1 20 

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1 22 

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154 KC5D 



105 

SO 

B 50 3000 

233 

1S1 

7.40 1000 

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45 

71H 

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100 

247 

100 

750 



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405 

787 

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919 441 




ft a:1 


-0 834 727 
10 1220 1240 




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INDICES 


US INDICES 













26 

25 

34 

Ugh 

Low 

26 

25 

24 

wgh 

low 



Uzy May 1994 

24 23 High low 


Srtca cn^OaOoD 


General (29712/77) 


« 211102 Z47O40 16/2 1775080 20W 


IPCJ4W 1B7B| 


2472.18 248852 ZBBM7 012 


Wm Bite 375530 3745.17 3742.41 3S7U8 35S3J5 1*7808 4122 

(3171) (4/4) (31/16M) (2/7/32) 

Home arts 9762 97.75 97.71 18501 96.43 W9J7 5429 

01/1) (13/5) (18/1083) (1/1081) 

Tracjjon 16TCL41 180826 159&77 196229 1546.02 186229 1132 

a m am mm mm 

UBBes 185.14 18323 18257 22758 1777B 25858 1050 

071) (12/9 (31/8/33) 0/4/32) 

DJ tnd Day's Mgti 376610 (37B60O I Low 3710.70 (3707.11 I (TTMoraOa**] 

Day's Ngh 379360 B7W04 ) Low 3721.23 (372953 1 (AciuaH* 


M (Mtorinci/I/W) 20989 21059 2132.4 234050 3/2 

At Magmm 1045.4 10407 10675 1136.10 3/2 

ftwhta 

(M/fttafOO/tt/U) 411.14 41456 41751 4E868 2/2 

TmM MB0/1A1) 105154 106673 107689 1X2255 1/2 

BELZHI 71/81] 150458 150925 153257 154X59 9/2 


SonapB (29/12/83) 

U^TlMa40B75) 
PmpoaBaf (1979 
RMfeOB§§ |4/1/B3) 

Ota 

FG4 Sen 01/12/30) 


M 23018 212789 2301800 25/S 

U 375854 374750 387859 18/3 

(D) 429157 428699 4BEBL9D 23/3 

M 199954 199747 Zina 1/2 


108610 5/5 
90480 5® 


411.14 TOO 
108154 28/5 


320008 20/4 
410680 20ft 
191657 19/4 


C8S TtRmQflB©*! 83) 4295 4294 433J 48490 31/1 
CBS M Shr End B3I 2734 2725 2767 29450 31/1 


213971 215518 215852 243954 3/2 


OEtaSqbdC/IAS) 112851 112291 112673 1211.10 28/2 


MntaQKOl 0/1/05) 2917IB 287021 290158 SSB37 VI 


41750 Sft 

nun sia 


PGA ten (31/12/30) M 43865 43465 498750 40 

Pdupft 

CCpentaoenSEP/t/BS) 36508 38514 38623 41539 20 

HEX GBmd0V12/9O} 18165 1829L1 1BB75 187200 4/2 

Rim 

SHF 250 (31/12/90) 139757 13865S 141756 188520 2/2 

CHC 40(31/12/87) 209159 208541 213352 236593 2/2 

BMMV 

FAZ M3o431/12£iB) 81600 82400 83616 86627 18/5 

Onmntm*(l/12£9 323.1 234410 23765 24853) 2/5 

Mtmmt 213025 21S677 219672 2Z71.11 18/5 

Gnu 

Athens SE(31 /I Z/8C1 83631 80657 85455 118658 W/l 

Haag Mm 

Hfcg5(igpl/7 m 9481. n 932137 9(96111220150 40 

kata 

BSESHKflOTS) 37360 H 37045 428759 28/2 

50250 fi an 57 B120S 5/1 

QjiawRi(C1/B8) - 1 77551 176754 181358 2082.18 20n 

Bmca Omni 10(1973 '4695 75679 75554 BT7.T7 10S 

IB fend (VIM) 11975 12275 12160 ISUflO 10S 


13*06 2S5 
208154 31/3 

77833 2/3 
222120 2/3 


8TA n«77) 28773 28913 29164 322089 180 

ffiS*XffpcwCW7S) 58558 » 57180 84151 4/1 

Santa Mica 

JSE BDU 08/9/78) 16770V 19460 19960 Z3ZU00 4/1 

JSEMLfiMVTq 65985V 66555 66335 8710X0 13/S 

Soata Kama 

KnraCnwW/lfflCr 950J8 94352 94589 9H3B 20 

Sp* 

Marti GE (30/12/35) 332S 33045 33852 36831 3171 

Twnden 

AbwanhiGai (10/37) 15165 15058 15193 188380 31/1 

SM&WlMl 

Sedra Bk hd 01/I2TSQ 127630 128785 127474 142634 31/1 

S8C Gam (1/4/87) 9540B 95052 95558 1093X9 31/1 

Mm 

VHgnEdP>0a«69 > * 865636 877618 578612 64542 8/1 


noun 140 

544650 W1 


45834 45451 45120 48289 43692 

00i m 

sxt.st 530/a «aawi < ffflaa 51055 

BO (2W) 

4552 4536 *500 4658 4138 

PW) (4/4) 

252.06 251.40 250.78 267J1 24114 

Bo m 

<3625 43618 43754 45759 42750 

0 a COW 

73257 731.47 724 95 8KS03 70651 

(Isa cm 


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May 20 May 13 May 6 Year t^o 

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May 18 May n May 4 Year ago 

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24.08 2352 23.30 2625 


739380 2/3 
120280 2/3 
290X9 21/3 

mas 2 i« 


Anns saffifUfiSA SAJI iiovw wn mw Bfi fen^a* SET (30/4/75) 135602 134680 H 175633 4/1 11965B 4/4 

HwoSwSpi/7/W) 9481.71 9S2L37 800.11 1X20189 VI 6MU4 45 tKoBLUailMB 

Wk 18*2484 184134 to 200080 1371 12980X0 240 

BSE 5806(1979) 37385 H 37043 «870O 280 345450 SI j— n 

OMk MS C30BI M (1/1/706 81BJ* 8174 8)90 8040 1/2 89189 4/4 

Atom Gnwi&BfflZI 50250 fl 50157 81208 5/1 *432 26/4 tX/SHOtm 

Mtad Etnas* 10006/1080) 1411,48 141251 M35J7 1340.10 31/1 T30M0 2/3 

^KAffM(4n/88! ■ 177681 178754 181358 208218 2QH 177681 2B5 6*0 Tep-WO (266190) 122431 1X2470 124689 13110 20 120289 2/3 

JBfOy . 01/1268) M mm S2105 396.19 5/T mm 2VS 

Baca Cron bi (1073 74095 75679 75624 817.17 108 58885 1071 tofngs Enw*(7/l/93 U 19 610 1 3&48 18232 140 14U6 Z1M 

kBftned (4/104 1167a 12270 12160 131600 10/5 94480 101 ■ CAC-4Q STOCK MBOC FUTIJWPUMAItq 

Jams ____ Opan Sett Price Change Wgh Low EaL wt Open tat 

NHEl 225 (18/5/40) 2D4B580 20GB363 20622.12 20B77J7 1M 173074 4/1 u^y 2077.0 3088.0 *118 2096.0 2077 JO 26,396 20JM5 

MMSDOn/imn 30185 30127 30267 3043 10 26622 4/1 20598 20710 +105 20818 20560 6030 38,119 

Topte (V1/B6) 165068 1858.18 165562 18S61B 25/5 1445X7 4/1 jjj 9WWH wiiw^ +110 20720 20570 62 1049 

2 nd SfldJcn (4068) 232061 231440 2314X4 233606 1M 181338 4fl Open nm flgna tor pmiui «g- 

MSEQntaHMm 89705 fc) SB70G U1448 5/1 8B633 4H 

- Sot Mn 21: TaMn Warned Price 5831.18: Korea Conn Ek 0*6,19. Baa. vfcaa el M Msm an 100 amt Mantas M Onanary T Comdoa * i*nr i4m nl ■ 1580 OMT. ■ 
md Mhtng - 500: Autta Traded DEL20, HEX Gan, MB Qaa. S8FX9L CAC40, Eun> Top-100. RED O*o4 TeWo Oamp/MMta ■ 4 Tit* DJ M. Inife dMcnde*l d«y> hlgha 
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Manaen. 4 Toronto iq anaed. (u) Unenuta. T BS/DAX damous bdne May 28 - 214600 *0.u amg to» day. (Tlw Am™ h bndma aw 


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Open Latest Change High Low EsLvoL OpenlnL 

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Sep 457.70 45900 +1.40 460.40 45700 4,192 24013 

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Man* 3,467,600 30* -K Ism Ha* 

MWMt 3070000 S3M +H ttaa 

<Mett>ftek 2098000 8) -* Us 

flmtaMA 2052.400 106H -1H Uctagad 

2003.100 23V. +H NhMb» 
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Kkfcd 22S (1G/5M8) 2O4B50O 2068363 20622.12 20B77J7 1G/3 17309J4 ttl 

|BH 300(1/1082) 30105 30127 30267 30US 1/3 26822 4/1 

Topte (4/UB6) 1 85068 185818 165562 188818 25/5 144587 4A 

2nd SacBoa (*1*8) 232051 231440 231454 233006 1»5 187138 VI 


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NM1M 63 SI 58 


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38 


FINANCIAL TIMES FRIDAY MAY 2? 1994 


*jm 0 ostMSf 2 B 


NEW YORK STOCK EXCHANGE COMPOSITE PRICES 


w » Si am 

» * * WB* M* UrM 

3-3457 113 14% 14% 14% 

aiB U3Z 30S 14 Ifi 14 

1J8 ZB 23 7* 65% QU 

27 881 55% 54% 54% 

14 29 4% 4$ 

£00 47 23 455 42% 42 

07E 25 181 5529 u3Q% 23% _ 
t50 4.1 3 40 12% 12% 

23 705 1, 

044 li 4 H74 2 


wo* 


4% 



31% 1! 

5% 5AdnaGtp 
20 16%ArtahC 
57% 49% Mom ADR 
ES% 43% AcU. 
25% Atari 

S Atew 
Atante 
jAfcprC 

1 3lb AktaaFri 
28 t9VAfepMtc 
16% 14% AMhm 
24% 21% AfcTc& 

10* 101AMV&IB 
18% 13% AhriaAIr 
23% T7% Atony tat 

15% 13% jam 

8 19% ABO* 
17% AJCttar A 
25% Attn 
19% AkxAlx 
4Bb«aStx 
23% AJcxSaMD 
14AWU 
Zft 



17% 14% MR 
16% 13% ALLxbsA 
GC 57% AMP 
72% 52% US 
5 3% MX 
56% 33% ASIA 
3B%25%ABJU. 

13% 11% ASM ft- 
13% lftAcpGXafc 
31 ZftACEUH 

i2 % 70% aoi aim miai 
10% 7%*UMpp UO 92 
1(5% B%AOIG«Sp 996113 
12 9% AW (MS* 1,0911.1 
11% 8$ AOIMrai IDS 11.4 
Bn 8JU3lllnm0.7Z 95 57 

15-2 &%taneQ> 944 47 12 94 1, 

8% 6% Ac* Bad 6 300 

as 23AOWJI aeo 21 14 as 
9% A fata 930 4.1 2 1155 8% 

15% 11% tom IIS 6ffl 15% 

1E% lE%Atan&pr 948 17 0 1B3 1^"* 

64 48% ACIBooz 3-00 94 7Z 

350 117 11 2916 27 

016 10 8 57 5% ; 

0.10 O0TI1 193 16% II 
£93 55 11 0 53% 

27B 51 81067 34% 

0.46 14 14 31a 33% 

058 47 122748 10 

i a ft i( 

072 22 23 2S3S 42 41% 41% 
070 98 22 1165 37% 37% 

42 604 04% 

154115 12 44 16% 

0900 24% 

8.U 75 3 104 

020 U 9 483 15% 15% 

035 12 31 TO 18% 017% 

070 12 1677 15% 11' 

078 1-4 14 157 20% 2L 
028 15 13 422 17% 017% 

044 15 221161 28% 27% 

030 15 41 1308 23% ' 

150 1-7H37 829 58 

050 25 4 2EB 
1.00 6.4 a SOB 1- « 

17 AtaAj Lad x 948 2JH1740 18% 

W 15* 7.6 11 293 21% 

JOaaCgn 916 05 14 371 17% 

040 15 152288 24% 

7 31 1% 

154 91 21 113 20% 

018 15 54 " 

171 55 13 15 

057 19 7 5010 

058 3.4 18 928 
21 2881 

B 450 26 

150 £3 94 1848 70% 

46 2197 25% 

056107 371 

025 35 24 IS 
058 15 6 E7S 
048 23 14 18 

060 12 21 1078 
074 27 73 



8BmrP* 
19 But Buy 
. 3% BSD St 2- 
53% 51% Brttes PI 

53% 43% BSCL 


M. H ta Dm 

Ui k mui m lm taon 

074 15 13 8» S 37% 38 

038 S2 3 B1 6% 6% 6% 

£76 55 15 2307 5Z% 52% 52% 

0*0 14 14 11 1£% 18% 16% 

£78 4.7 282056 59% 56% 59% 

050 12 22 240 SB 48% 59 

054 72 27 843 24% 24% 24% 

450 7.4 Z100 58 58 58 

152 4.1 12 876 37% 

042 12 3 W 33% 

004 4.8 4 50 U 
048 £7 23 234 17% 

44 >30 18300 16230 18300 *100 
0.40 42180 123 S% 



16% 12% 
Z1$ 13^" 


25% 20AfagBix 
4% 1*2 Afta 
27% 17% An Cap 
10% BAtaraQ 
27% 21%Aldlftta 
40% 33%«Sgx 
29% »AWOp 
5% 4%JOtaSk 
27% 21% Aim 
82 64% ACM 
ao%2o%«tzactiA 
11% 8% AnGottac 
8% 6% Am ftrott 
8 % ft AnaxGd 
25% 20% Ament lit 
51% 44 AnxJdta 

9% 8%AaAd|R 

31 20%Amtaft*x 910 94 31 8376 
35% 23%Aaemfl ZOO 6.1 9 4999 
19% 17% Am BriU H 952 25 12 6 

25% aSAnBUftdZ 089 35 13 
8 6% Am Clo he 055 04 
a% 17% Am Cap 06 
23% 19% Am Cap CV 
52 42%AaC*DX 


37% 27% 

33% 2S% Antxpr 
29% 24% AB*4ri 
9% 6% Am Cost h 
27%24%AaH8>Pr 
20% 1&%ABthdM> 

65% 55%AnM»e 
2% 2% Am HOlb 

94%Bl$AmU 

11% 8%Aa0pp he 100 115 
28% 23% AnPreto 058 3.1 



3% Burnt 


22% 20% Each H PL 
10% SbBckKiMv 
8% ftBktocfchc 

io% 8% Bunxigt 
48% »%Btoek 
31% 23% BMP 
8% ftBuaOMp 
27% 19%8HCM 
48% 42%BMhg 
27% ISBottsC 
21% 1D% BoKB&H 
14% 9%BuntDQni 
18% 11 
21 16 
24% 20 
31% i8%8nBBfth 
34% 30%BREPnp 
90% 77% BrlgStx 
33%. 22% BrtntatU 
59% 50%ftMySq 
74% SftBrMr 

54% 42% BrtGasx 
73% 55% BPx 



IS 589 
250 U 37 
550 05 4 

040 Z1 6 2601 
1.40 31 72 180 
30 713 

0.10 06 a 149 

25BkmhgBiS 040 14 G5 579 

16% ODec* 940 2.1 16 1822 

102 65 12 a 

073 75 280 

075 1CU 412 

are 7.7 9GB _ 

1.12 2.7 24 872 42% 41% 41% 
0.10 04 24 5290 27 26% 27 

012 15 » 5% 8% 6% 

15 61 25% 25% 

150 2.1 1217016 47% 

OB 25 5 849 21 

90S 05 a 922 12% 17% 12* 
05« 05350 621 14% 14 1< 

030 £2 707X1 
155 92 G 14 

050 25 13 418 24% H . . 
027 13 700 23% 22% 22% 

£40 75 7 142 31% 31% 31% 
154 23 13 322 79% 78 79 

21 5024 28% 25% 25% 
232 53 14 4852 S5% 54% 55% 
1.18 25 13 1277 a 57% 57% 
357 73 73 110 43 42% 42% 

235 32 23 3136 71% 71% 71% 


- Bash CM 



27 19% BF> Rutin 991 45 7 



72 22 % 


019 99 21 289 2T> 

3.01 53 14 531 
135 5.7 13 542 
150 12 97 751 
032 55 4 nn 
254 12 14 «9 
058 25 24 3678 
10 2< 

044 15 42 2416 . 

050 1.1 45 722 018% 

2.00 75 10 24 37 

172114 0 193 
15B 95 18 72 ..... 

14 224 19% 19% IS 
120 11 18 1254 56% 55% SP 
055 13 21 3081 42% 41% 41? 
17 Bonham PC 150 75 2 83 17% 17% 17$ 


4% 3% BflT 
25% 17% Smart* 
17% iftBnidiM 
41 3ft BucfceyaR 
16% 14% Bunkar Hi 
17 IftBorgvKr 
28% 10 Bnrt Cost 

66% 52% Butt 
48% 41% Burin Hoc 




m n m aw 

* l in tap Cm Data 

iCBUsh QJ2 90 6 182 £% 5% 5% 

i&ORSMU 046 20 18 738 ift ift tt% 

.. BWCS 171017 36% 36% 38% 

9% CHS Star 012 1.1 32 295 11% ‘M 

jl % GipMBr 058147 0 <5 
35% SCUCU 9 573 

17% 12% Ctftm 080 58152 7100 

74% HQsaoEnM 150 57 18 

57% 40% Conmfox 080 U 8 362 42% 42 

13% H%QRamiax 052 75 13 21 i:% H% II 

37 33%QMt 150 35 89 » 33% £B% 33% 

90/ Raff 108104 B 88 7D% 10% 10% 
7%cyamsya 8W72ul2% 11% 12 

“ " ‘ 77 2372 16% !ft 16% 


! 15% 5i% Gn Hom 

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Pi « I Ob M ti« 9mm 

032 25 11 170 11% Of! 11 
in 15 18 28*1 53% 52% 53% 
080 1.5 2513888 55% 54 54% 

CM 1.3 24 3108 37% 36% 38% 
MB 22 22 529 36% X 36% 
150 U 10 34X 29 31% 20% 

1 92 15 14 857 123% 120% 120% 
OSB 25 *1 542 31% 31 31 

BS 328 47% 47% *7% 
I 1205 3 % 3% 3% 


15 290* X 3i 29% -!% 
134 17% 17% 17% 


- D - 


21% IB%DPt.Httig 
7St 15% Daw Sam 
61% 51% Dana x 
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13% iO%030Whd 
19% E%Dxafin 
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8% 6%0mhani 

81% 64% UjtmHx 
2 SOOLB 
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1.10 55 14 1647 29% 

13 796 
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158 21 17 3197 
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050 7J 646 
200 29 1617507 
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MB W3U i (1 «3 14 15 68 12 11% 


T3%127lJ.. 

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39%n%(imft 

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Continued on next pAfl 8 




FINANCIAL TIMES FRIDAY MAY 27 1994 

NYSE COMPOSITE PRICES 


NASDAQ NATIONAL MARKET 


4pnckB8Miy26 


77% 17 7lh 


tm IM3BCK Db "*% ? tnl agk law 23 

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aftlftSOBHp 1.4210.0 27419 M% 144 144 
4ft Sft&iMflP 28 127 37b 37 37k 

S&S&&SL ** 3.1 15 3^0 66$ 6ft 
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lift USX US 1J» 34 BMBB 3ft 

USX MM 020 14 18 289 ift 

UM.77S 178 64 4 27 


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3ft 3* ft 
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ACC tap 012 71 516 17% 1ft 1ft ft 


148 S4 14 013 2ft 3ft 2ft 


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AMnotaa 1« 374 15 1ft ift ft 

AfltaSav* 01622 191a3?% 3ft 3ft ft 
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MiancaC 8 26 1ft Ift Ift 
Mrlatfc 8 100 5ft Oft 
MrMnn 7 171 ft 05 ft ft 
MffCtU) 26 184 15 1ft 14jf -4 

Munta 020 201368 4114 39 39 -ft 
A"1B»B 6 211 12 1ft 1ft ft 

femyAi 21 S3 1ft 1ft ift ft 
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AMm Co 40 027 28% 2ft 20 
AbSU 048 16 575 2ft 24 24 ft 

MagtiBV 14 IB ft 7% 7% ft 
AfcnOnjx 052 14 10 33 33 35 

Ataim 61153 10% 10 10% ft 

MdCap 140 12 31 13% 13% 13% ft 
«dC*p 04012 14 14% M 14% ft 
MMtoC 032 23 30 3% 3% 3% ft 
Ms MO 046 0 4725 BTfi 1ft 1ft ft 
Mara Co 30 3474 31% 30% 31% ft 
AaBatar 048 8 400 22% 22% 22% ft 
AmOyBu 14 40 14% 14% 14% ft 
Annum 21 88 22ft 22 224 ft 
A* MOB 141682 10% 0% 10 ft 

AaSaBwa 0321882007 5% E 5 ft 
AmFrtwyi 321577 19% 10 19% ft 

AmGilAx 030 161405 28% 28% 29% ft 
AaMP 2 413 1ft 1ft ift ft 

AnWki 220 7 108 48% 47ft 48% ft 
AmPwGom 37 2929 20% 19% 10% ft 
Am Tub 10 2810 13% 12% 13 ft 

Amoral* 17 8736 45% 44% 45% ft 
AmtadlCp 048 231002 17% ift 16% ft 
Anna 4 187 8% 09 94 ft 

Analogic 18 14 10% 10% 18% ft 
Ansyita 048 13 73 18 16 IS -1 

< AeragalAni 140 14 02 17% 17% 17% -% 
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Apogee En 040 24 80 12% 11% 11% ft 

AH’ Bio 8 333 ft 0% 6% 

AppHMBt 28 8771 44 41% 42-1% 

ApptaC 048 276500 31% »% 30% -I 
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AmotahS 040 17 32 20% 1B% 1B% ft 
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AflSEAir 082 201094 27% 26% 27% ft 
Autttl 048 20 2745 52% 51% 51% ft 


4%Tta*1>lta 072 74 30 10 

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22% 22% ft 

1«% 14% ft 
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040 17 1859 7% ft ft 

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31% Hsian x 140 11 77 237 9% 

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27% Tbcco 040 21 12 75B 2ft 
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37% TysflU 22 8910 3S 

gft mraerac x 142 12 10 5 23% 


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1.12 54 11 116 19 18% T9 

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1.00 24 13 2410 41% 41% 41% 

30 3045 29% 23% 23% 
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010 24 40 88 7 9? 7 

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12% 7% 

’ft He 


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9%Wtt*? 118 2509 15% 15 15% *% 

20% EXBCM 1.12 34 14 22* 29% 28% 29% -% 

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WaMBieFd 1S2 25 13 921 20% 2D 20% A 

^SfflOdwJx 050 12 18 24 23% 23% 23% -% 

SftSnpOrfT* -148 3.1 17 490 35% xi -h 

21% 17%&Wkra 034 12 24 1025 T9% 19% 10% Ji 

34 25%sctamw Z7 T92 26% 28 26 A 

J? ’■«. 34 93118 28% 28% 28% 

Sony 047 04130 157 57% 57% 57% +% 

1ft 024 14 631589 13 12% 12% 4, 

«?8 M 55 40% 40% 40% ft 

«% 32% SodhCarSKi 250 74 ZTDO 34 34 34 


99SSS 

miJteg? 

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68% 91 Taaco 

51% SO Teuco C 
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60% sa% Tran 

„*% 4Httdw*y 

24% 14% 1W cm 
37% 24% Thai Fail 
44% 38ttanri4tac 
20 22% TUahnl 

66 £8% Them 

18% 13% Ttm tad 
41% 29% IbaenaaM 
23% 19%-DdMta 
34%28%Taev 
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5% 29% TmaMtax 
37% 31% Hasten x 
0 2%TBanOp 
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ft 4 Todd sup 


48«i 30% Tctank 
30% 23ToraCtep 
35 27% Ttara 
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2& ± 

1 A 

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63% 44%W=Cp 146 24 IS 443 48%. 48% 40% +% 

24% 1ft Wane 052 U 238 19% 1ft 19% ft 

12% 1l%1ta ten H Gte OSD 42 88 81 11% 11% 11% 

7 ftMUkK 008 14134 1 ft 5% 5% -% 

§ 7% VmKMD H 090 124 277 7% 7% 7% ft 

9% Vlrttamplkr liD12J 25 9% 9% 9% 

12% 10% VMtaqlktt 084 74 81 11% 11 11 -% 

7 ftfercoU 291091 6% 5% 6% ft 

39% 26% IMM 024 U 11 783 31% 31 3l% ft 

5ft33%Wta 201187 38% 38 38% 

16% IftMtar 146 84 0 M 16% 12% 13% ft 

7ft 6ftVhSr540xS40 74 tfO 06 86 88 


4^ ^ 

ft ft 


«S2%VW»fM 
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19 21B 3ft 38% 38% 

10 20 22% 22 22 ft 
19 381 23% 22% 23% +% 
143 14 25 87 79% 79% 7ft -% 

17 23 11% 11% 11% -% 

18 124 18 17% 17% ft 

ZOO 54 42 anuaft as 36 
142 24 10 6» 46% 46% 46% ft 


4% ft 

gs 

21% ft 
33% ft 


29% 20%WBkMI 
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18 481 21% 21% 21% ft 
64 13 295 28% 27% 26 ft 


42 2302 19 18% 18% 

10 12 2205 33% 33 3ft 

£0488 116 14 13% 14 

46 177 4% 4% 4% 

1.7 20 1683 41 40% 41 


57% 48%TklvaD 
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240 34 01801 58% 
036 07 14 16 56 

060 84 11. 435 15% 

3 4 14% 

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040 14 8 5S38 34% 

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5ft ft 
55 ft 


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_22 1ft SCy 140 64 TO IS 18% 18% 18% ft 

^ 048 14 8 725 20% 19% 2ft ft 

22 1ft SSlnCo 1.18 13 5 5371 10 18% 18% 

3ft 26% SodMGEx 145 64 11 127 2B% 28% 26% ft 

Z&%S*£I« 1 11 54 56 143 31? 31% 31% ft 

39 34% Stats 044 11 25 3815 Z7% 26% Z7% +% 

19% 155o«*Ga* 047 44 21 251 IB 17% 18 ft 

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30% 23% SDUdcmw 220 10 B 331 24% 24% 24% ft 

12% BSpeinRjnd 048 44 180 9% ft 9% +% 

7% ft Spartan Cp n T2 5? ft 5? 

18% IftSphmOx H2 18 19 18% 18 15 

120 40 71 144 30% 30 3ft ft 

38% 32%£pM 1.00 £8 27 5893 38% 37% 37? ft 

lBlftSPXx 040 24 19 344 15% ift 15% ft 


14StdCPmn 040 24 8 17 16% 1, 

14%SUMotar 042 14 12 39 17 1 

7% StoadPncUt 012 1.4147 04 9 : 


38% 27%8km 
30%M%SmK 
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44% SftStaBHc 
38? 37%SB0dc 
25% 21% Santa 
11% lOSHalU 


34% SUAdllkx 0 BO 22 


044 24 13 160 27% 
046 £1 16 Ml 77% 
140 £9 20 106 34% 
140 34 18 180 M 
548 38 7 a 
048 34 20 54 S? 

x 044 13 44 10% 


44 10% 
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a 3% StartyCtan 048 04109 880 8? 

35%26%Start0SMa 23 379 30% 

10% 7% saw Al 112 14 4 26 8 

' StamSMtab 160 14 35 188 U3S 


18 15 

30 30% ft 

16% 1ft 

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2 

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37% 34TCM24 £60 72 Z1D0 34% 
2ft 15% TUtee 10 221 17 

84% 55Tttunsx 144 14 23 Od 59% 
24% 21% THCon 170 34 130 22% 

47% 33 Tltatar 048 14 21 6M 36% 

40 31%ltnm 168 24 01 857 33% 

S2% 24% Trtam 110 04 57 2097108% 

ft ft Tram B 31 1961 ft 

7? ft T«* Op 120 34 35 1666 5% 
14% 6%lMdHHk 112 14 114 7% 

2ft 14%TwBlCea! 164 44 41401 18 

21% 16% TMn OIK 170 3L7 10 »00 19% 

55% «4 T>CO L 140 19 27 334 47 

M OiysoT 110 12 4 140 8% 
6% Slitar 74 35 5% 


15? ft 
19% -% 
47 ft 


5% ftHMBKO 40 177 4% 4% 4% -% 

42? 37HUpnx ISO 1.7 291683 41 40% 41 ft 

S8% 3ft WWceCBx 1M 24 IB 228 32% 32 32% -% 

29% 22% MOM 117 17 2324B5B 24% 23% 23% ft 
5% 2% VfenariM 104 12 71533% 3 3 -% 

7ft BOtonUn £44 3.4 34 9200 72% ?iih 72*1% 

14%HMCntaBd* 140 12 2B 418 ift 15% 1B% *% 

M%M%WMML £22 52 14 75 38? 38% 38% ft 

25% ai%¥ M *e a us 5.1 a is 21% 21% 21% 

264221% WtaWB 420 14 17 33234% 232% 234 ft 

35% 19% HUfeJn 04S M 22 407 3ft 33% 33% 

*% ItooimM 040 44 0 3 2 d2 2ft 

1ft 14% HMMM 120 12 15 09 15 14% 14% 

40% 3B% Monte X 220 11 27 490 3ft 3ft 37% ft 
11 S% VtoMnnSt 164 74 12 05 ft ft 8% 

28 24% WataMi 172 Z4 14 18 24% 34% 2ft 

§ 7%Htafeni 132 54 11 1847 B% 8% 8% 

17% imitaan x 124 19 21 SOI 26% 28 2ft ft 

127%HUtf 440 24 10 1143D1BA 15ft 154% ft 
1B%Wend|B 024 14 221211 17% 17% 17% ft 
22 ton CO 044 £0 15 22 22% d22 22 

16% 15% HMem E 1U 5.1 11 771 17% 17% 17% ft 
45 39% MHtai 1020 43% 43% 43% 

15% g%M*aM> 13 413 12% 12% 12% 

20% 8% toe Ota 58 3120 14% M 14 ft 

B^aft wratoi 120 1020 m a a a 

24% 18% toMkl line 023 14142 SO 23% 22% 22% ft 

34? 2ft M Hat 140 19 10 833 26% 26% 28% ft 

15% 10? «Ug0 120 14 10 8801 13% 12? 13 ft 

5? 4% HMeeCnei 132 16 0x100 4? 4? 4? 

19% lftHMetotata 25 67 ift 17% 17? 

2®h 15%MMpk 040 22 5 31 17? 17% 17% 

38 29% totoca tio £4 41 BOO 33% 32% 32% +% 

51% 39% Mar 120 £9 18 6293 42% 41% 41% ft 

21% 17% Wte ite rt r 110 15 22 2297 10 lA 19 ft 

73% SftHMMx 122 £2 17 1691 54% 53% 54% ft 

14% 11% MHtaM 10 3 12% T2% 12% ft 

17 14%HMtata 134 £2 15 3946 15% 15% 15% 

1ft 13% taW Mter 17 31 14% 14 14% 

32% 25% Mate 1 JB 5.4 15 149 28? 2B% 28? ' ft 

«% 5%1Mn8a 110 12 12 400 6 5% B ft 

S3% 22%WM 04430 12204528% 28 28% ft 

7 B%MM 605 06 14 33 B% 6% 9% 

10% 6% Wtadxwrex 020 14 18 OlOell? 10? 11% ft 
58% 46% MeeOK 1.44 31 14 IBS 46% 45? 46 ft 

ift ftMnXmgo 24 2Z1 11% n% n% ft 

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33% Z7%HtaCf>BtfiTX 1 JB 31 11 89 20 28% 29 ft 

16? lSKtaari) 140 £6137 49 15% dlfi 15% ft 
35 20% HtaCOCnp UOO £4 04 451 30% 23% 29% ft 

30% 22% MUX T 040 22 29 9299 Z7% 27 27% ft 

24% 19% HU nrtaa 116 19 12 230 20% 20% 20% -% 

26% 12?HkMtafi 1.16 74 3 3590 10 15% 15? 

18% 14% HUM MX 120 7.7 54 15% 15% 15% *120 

6% fttorttap 15 77 4% 4 4% 

U$43%HMM 140 19 34 230 51% 5151% ft 

20% IB? Wjte Ltoar 028 14 20 35 16% 18% 18% ft 

22% 18%HftmetatX 144 £0 13 120 22 21% 22 


28%23%UBHn 044 29 20 1447uZ8% 28% 26% +% 

8 5% IBS 36 24 6% 6% 6% 

51% 47%USB84.1 4.10 15 7 48 47% 48 ft 

58 2D% USE 6 571 23% 22% 23 ft 

29% 23% U6T 1.12 42 IS 1164 29% 26% 26% 

51% <8% USX Cunffx 3.75 74 15 £0% 40? 49? 


m= 516% wt ZJB 6M117>2d11B?116? ft 

1ft 6% UDCHma 14632J) 4 19* 5% 05% 5% ft 

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11% OUKtaC 14 40 9% 9% 9% ft 

27 20% Unit Inc 156 £1 10 714 28% 28% 2B% ft 

17% 14%IMM 110 10 17 36 16? 16 16% 

74% 58% Under 240 17 8 2 60 86 60 

12ft lOUkMr 444 4.4 15 506103% TK% 103% ft 

50% 42% ItaCaap 148 33 66 330 47 46% 47ft 

28% £l%tkartax 175 £7 28 6261 (CB% Z7% 26% ft 

13% 10% Untan Qnp 16 28 10%B10% 10% ft 


18% 9%5taneQatf 171 47 32716 15% 15 16% 

27% 19% Skp5hap 21 230 VO, 24% 24% 

16 13%S0Eqa 044 14 17 100 15? 15? 15% 
41% 2SS0TCH 9 6756 31% 30% 31% 

32 22? SbttB 42 435 29% 30 

IB? 12Saunax 130 £B 11 716 13% 13% 13% 

33% 23? Storm Ho* X 1.20 44 16 44 .30 2ft 30 

4% 2% SoamS&oa 030119 0 2 2% 2% 2% 

10? 10% Sin Ota Ax .1.10116 7 91 10% 10% Hft 

6% 4 Sun Die Bx 0^4 4.1 5 612 09% ‘ 5% 6? 

7% ft Sm Energy X 126 44 57 83 6% ft 5% 

43% 3ft Senatar 140 1.1 12 576 37? 37% 37% 

49 41 Sntta 140 £8 18 334 47 46% 47 

11% 8Sa*Mnef1 l.lfll£5 57 9% 0% ft 
3% 1%SmMI 11144 1? 1% 1? 

S <3% SUM! 126 2613267B 48% 48% 49% 
11% Soper toed x 036 £9 M 51 12? 12% 12% 
32% 32% 32T 


ttaeft Oh. £ Ub Up la ItaOta 

DaepUtaDp 042 11 341 25% 25% 36% ft 
DtoSOqi 120 21 31 7 6% 7ft 

MUliEn 182 S 10 14% 14% 14% 
MaffiSexQOQ 48 3 32% 32% 32% 

DekianpB 1*4 11 nao 21% 21% 21% 
DMConp 2715330 30 29% 29% ft 
MtaQSOn au 18 53 15% 15 15 
Dntpir 32 658 38 37 37 ft 

Oep Bor T4Q 8 501 U31 29% 3ft ft 

Damn 020 42100 8% 8% 8% 
DHTac* 17 367 021 20% 21 ft 

MralB 072 7 643 15% 15% 15% ft 

WU 13 137 14 13% 14 

noMcra 8 778 13 12% ’2% 

OpSound 8 341 Ifi 1A 1ft ft 

OgSsnt 7 92 3? 3% 3% *ft 

HaanQp 18 12 33 32% 33 

Dhtavtnx 120950 86 10 9% 6% ft 

DKAPtn 21077 4% 4% 4% ft 
IMtar&ix Q20 26 08 26% 26 26 ft 

DarCbHU 180 14 73 13% 13 13% ft 

OrecoBw M 5 TO 10 10 

DraeeOern ii BOO 11% 11% 11% 

DnqrGD OM 20 2783 23% 22% 23% ft 

DragEmpo 008 50 110 5% 4? 5 

DS Bancor 149 18 Z4B 31% 31% 31% ft 

Darten 0142 11 1102 16% 15% 15% ft 
Dm Hi 030 24 8(133% 32% 32% 

Dynatadi 11 371 17% 16% 10% 


*n* ikMM to to bicta 

“K- 

KSaaU 106 12 344 23% 23 23 
KMmfe 044 5 112 ft 9% 9% ft 
KeydaeCp 140 13 69 22% 22 22 ft 
MtayOl 63325 ft 5% 8ft +ft 
KaDiBex 172 23 229 Zflz 26% 27% ft 
MUkf 111 9 5 5%tfi? 5% 

ftnfael 06* 13 150 24% 24% 24% •% 

nataar 14 275 7? 6% 7 *1 

ttAtaW 504114 39% 37% 38% -1% 

Knowtadp 5 328 IT ID? 11 

IWA 1 88 31 ft ft -A 

ftnogte 2021141 22% 21% 22% ft 

NjfchaS 92006 15% 1413 IS ft 


EaatoFd 5 29 4% d4% 4% *% 

Easel Cp 2 290 4% 4% 4% ft 

EataEnrat 2 3 1ft 1ft 1ft 

EDM 118 21 9181 15% 16% 16% ft 

Egghead 65 193 B 7% 7? ft 

SPaoB 2 101 ft 2ft 2ft . 

BKPSd 10 935 11 ID? 10? *ft 

Bactafl 049 54 39 53% 53% 59% 

BadArta 247331 20% 19% 20% *1 
Emcco Ana 20 23 7 6? B? ft 

EmtanCp Z71442 6% 46 6% 

EngyVnSa 43 1743 12% <112 12ft -ft 

auras ee 5 2 2 2 +% 

Enamlnc 2 014 3% 2% 2(2 *ft 

EquftjOi 11015 69 3? 3ii 3% 

ElfeinB 1571404889 50% 48% 50% *JJ 

BbU 7 B dB 8 

BaraSth 77 70 17 1B% 17 ft 

Eatayta 10 951 15% 14% 14% ft 

BEflBnr 12 14 9% 9 9 

C dde O ac 17 14 Uo 24% 23% 24% *1% 
EwadBIx 110 20 401 17% 16% 17% 
EzcorpAmr 22 224 13% 12% 19% 


- L- 

LaddFtan 012 40 117 0 B% S? *% 

UnRsoh 302897 29 26% 26? *1? 
LaeoMtar 100 20 727 49>4 46% 47% -2 

Uncatac 196 IB 687 19 17% 16% *% 

LMMdtab 44 687 34? 34 94% ft 

Unapt* 10 30 0% 7? 7? ft 

Uaemcpe 81 507 5? 5% 5% 

LoOkeS 142718 17% 17 17% ft 

lMBPPr 04817 101 23% 22% 23% *% 
1D06 275 4094 19% 19 19% 

UUCP 118 7 47 5% 5 5% 

lactam 14 2588 12 11% n? ft 

LnOMGP 18 7696 30 28 29% +1% 

IMjMBc 173 13 81 28 27% 27? ft 

UtaTect 020 15 22 17% 16% 18% 

IMna 21 189 4? 4% 4ft -ft 

UftfaU 028 22 IB 23% 22% 23% ft 

LkiBr 99 29311B%117%117? -1% 

Lincoln T 152 14 120 14% 14% 14% *% 
UxtanjW 14 17 32% 32% 32% *% 
UneerTec 024 30 1628 46 43% 45 *1 

UBM 040 18 3 38% 35% 36% *1 

Laewen Gp 106 26 2569 22% 22% »% *% 

Lone Star 23 642 7% 7% 7ft *ft 
UXWD 4923272 62 81% -2 

LTXCp 2 BB1 2% 2% 2%- 

LVMH 035 4 15 32 31% 32 +1 


mek Dh C Mta HU lea Uta CM 
PlffipiB 112 71675 20% 20 20 ft 
Pyramid 12 SZ7 B% 7% 6% ft 

OranLig 12 77 7? 7 7.30 

OMtarCtm 162 70 12 17% 17% 17% ft 

OMFbod 120 17 03 23% 23 23 ft 

MHom 7211229 16% 15% IS? ft 

atom 17 594 12% 11% 12% 

WCNtMt 201834 31% 29% M -1% 


-R- 

Ranxna 13 289 15% 14 14% ft 

R**|B 51679 5% 5% S% 

Raatanpa 3 486 5% 5% 5% ft 

Raymond » 10 18% 17% 18% *% 

itacoan 30 79 32% 31% 32% *% 

ReUfcA 10 ill 17? 17% 17% 

ftaplvm 2 430 4% 3? 4ft 

hpMto 5 47 3% 9% 1% -% 

Ttosrditad T5 174 8% fl? 6% ft 

Renton £ 2 * 14 865 41? *1% 41? *% 
Raxon be 11109 G 5% 5% ft 
HMFX 080 10 3 33% 35 35 ft 

Rotates 1.40 23 876 72 71 71 -% 

RWgd 112 13 155 B% 8% 0% ft 

Itetfiatt 058 3 305 16? 16% 16% •% 

fewanaltx 0.15 31234 u17 1B% 1B[| *A 
Ron Sir 120 103231 13? 13% 19% 
RBWSMed 2510*0 20% 20% S>% ft 
Axaa IBS 80 1723 19% 19 19% *% 

flPMtae. 152 20 039 18% 17? 17? 

RS Ho 148 12 9 302020 

RyOTFmty 14 4865 7% 7% 7% ft 


32887 13A 13 13 

23 1373 28% 28 26 -2% 

n 291 83 23% 23 23% -% 
109598 17% 16% 16% -A 
14 12 9% 9% 0% ft 
182 20 1094 27% 26% 27% ft 
148 20 3-45 52% 51% 51% -% 
13 154 4 3% 4ft 

092 14 9416 7%d6% 7% ft 


iwynmktx 144 £0 13 120 

-x-y-z 


31% ft 
30 

13? 

30 

2% ft 


13% 10% Untan Dap 

54% 4GUdB3l 5D 150 75 180 45% 48% 46% ft 

67 57% UnH450 460 7.7 Z100 56% 88% 5Bl> 

39% 30% ItaBeC £38 7J0 12 1280 xA 33? 33? +% 

87% K%Unfte 1J0 £7 171587 58? 68? 58% ft 

r? 23% ItafonFM OlM 3.0 10 40Bu28% 27% 20% ft 

22 10% IMMTnaa 020 1.1 54 1388 19 16% 10 *% 

ft % ItattFa 0 118 a s a 

i% lOltatayt -* £77252 71269 -11-10? 11 ft 

1% 2?IMtCtep 23 16 3 2? 3 

% 29% Uktaaat 096 £9 17 2677 33% 32% 33% 4% 

?12%UkDonny 178 52 73 237 14? 14? 14? ft 


46% 48% +% 


nr< ihvmi" 

3% 2?IHOon> 
41% 29% UkUaaal 


lOflfc 87%Xam 320 £9 43 921 102? 101% 101? 

54% SOXensOM 412 72 3 54% 54% 54% 

Stf? 40 XU cup 058 12 21 350 46? 48% 40? 

25% MIMea^y. tl6 52 12 33 21 20?- 21 

S 40 S3? York tal 116 14 18 5B2 36% 36 38% 

4%2Xptaa 100 5 4? 4? 

77MB 3 4820 10% 9? 9% 

24% 20?Zta«blM 120 42 9 23 23% 23% 23% 

7? B?2HtartaCX KB 1 1.7 97 7% 7 7 

19% 11% Zen 040 13 14 62 12% 12 12% 

29% 20% 2pm tad 186 41 18 90 21% 21% 21% 

13? 12%2Mftta 1-18 92 141 12% 12? 12? 

10% 9%2MgTd8 184 10 381 9% 0? 0% 


22% 18? IMDsaM 020 12 17 31 10? 19% 19? 


48% SOSqwtar lt8 18 21 H572 32? 32% 32% ft 

40% 30? Stgnndz OJB £8 12 2376 32% 31% 31? ft 

2011?5ugCm> ai6 12 151527 ift 13% 13? ft 

23? IBCMUHlta 008 14 9* 20% 19% 20 ft 

Z7? 15?SymMTae 50 953 25 24? 25 ft 

10% 7%9ymCarp 120 24 10 3 8% 8% 0% ft 

19% 16% Synoaus Fn 145 £6 15 ICta 17% T7% 17% ft 


5D% 37% UhMtcrn 103 11 10 6071 
40 33?UMHta 27B72 10 55 
6? 5%Udtaduta Util S 17 
13? 10?DU«iMnid 115 12 28 

% ttlMUttM 14 2 

15% ftimr 112 1J 0 886 


23% 12? Spite 
29% 24Sy» 


1JN 42 121240 23? 
036 14 23 2811 26% 


Si ft 


16% 11%UGRfi 
2ft 18? USftaer 
2ft in% uSHoma 
41? 34?USUCP4 
1ft 11% USShde 
32% 16? USSogx 
46% 38% USWast 
72 G8 UkfTecx 


2% 47% -1% 
35? 35% ft 
ft 5% 

11% 11% ft 


028 5.1 5 17 ft ft ft 

1 115 U 28 11? 11% 11% ft 

M 2 A J 

112 14 0 886 ft 6? B? 

020 14 132118 12% 12% 12% ft 

37 m 20? 20? 20% -? 

2 295 18 17% 17% -? 

144 14 8 283 36% 35% 36% +% 

132 1J 54 2546 19% 18? 10 ft 

108 14 5 2880 19% 18% 1B% ft 

£14 5l 3 85 2787 40% 40% 40% ft 

140 2718 3680 87 85? 65% ft 

092 14 13 58 14% 14% 14? ft 

M 21 15? 15% 16% 


8? STCBTEMr 120 16 22 2« 6? 
84% 2 B%TGFFUk 140 34 11 92 33% 
9? 8? TUtVQnS 184 11 168 9? 

48% 94%TmCCBpA 047 1.1 44 15 4ft 




020117 1 41 
156 £3 15 2030 


S3* 

43 *3 

a 


lUntatdt a Z1 

ElHrFnata 142 24 14 481 
lUtarMBl 140 97 T1 20 


T1 20 17? 
0 88 A 


15% 18% 
32% 32% 
17? 17% 


lUtanrCtp 130 10 30 73 10 9? ft 

[UkMOp 090 53 10 80 10% 17% 15% 

I Unocal DJO 23 22 8950 28% 28 28% 

lIMUMCtap 198 £0 11 1640 <7% 4ft 47 


Aka ten mptad * Mtan 

^ M ** im kzMima (taped* im Ja rim 
ima a apil er rak MUd anwani to 25 pteeta or era m bra 
WU tae 1 4* ndy ra narndtatatate — amtate- fura teatara. 

IM otaanra ntai nm el dMta(d am atatel ranammi amid di 
■ e tea i i r k r i w n. tadae Mae m mtacte. 

ntota m d ate xxxer tem nta el mem (dux Itak dHUaaa. 
n M taM M i l l HM dim atatat a il ld m d H kM er p«i 
k pracwkxi u airai. ftodtota k Ontea Uda. Meet to in 
aaratatan m FMdma dKtead tate ntam nranck dhUnd. Hte- 
dmpeH m ym, eadtod, dtened. er no ntoe M m mm iMtand 
radep. btoktad deMd or ptal Ha jbk ■ rnammm km irita 
•Meda k mm. mtaeO ■> mat 5Z ante. H« MgMip ooga 
bapte utt an atet wt ktetar tews day dean*. I* pO»«an*vi ana 
nutted dtaktad or pto k meeUng 12 Mk pCmt itattnd. 
Mb* kUMtehpidi ON BtHL Urate. HMdnd ptad ta 
Mick k mndhg 12 M a«to mb d am aaka on antataand er 
■ i Midke tali HMmdp.HMgMM.MtaMa 
itetamM * 1*9 iMBnted Hate Btempfey «, er ee ai Xte i 
ammt * auk ceaweataa. Mtoted atete tend. m»«n av- 
mto ■■ tadtota er »<Uta. iteie itaairan m Mtou r wnato 
Xtetoddm a* late k ml taHdata. Mdai to «ft 


- B - 

BEI B 106 91 17 5% d5% 5% 
Btetege* 8 38 10% 10% 10% 
BatarHWt 438 % dA % -A 

Baker J 006 121583 20% 19? T9? ft 

BttenLB 121 3 6 M 14 14 ft 

Banctac H 145 22% 21% 22% 
BmSoutl 044 12 638 19 1ft 19 ft 

BamanGp 040 9 10 ift 19% 18% 

Barfmortlixie0 12 11 u21 20 21 +1 

BankHtoca 020 28 14BH33? 33? 33? 

Bern Geo 042 16 282 33% 32% 32% -% 
Baesd Ft 040 15 257 27% 26% 27% ft 
BayHaw 060 13 148 24 23% 2ft 

BHjbank* 140 14 1587uB3? 62 02% ft 

BB&TFlnx ljta 92822 29% 20% 29% ft 
BE Am 21 833 9 8% 9ft 

BaauBCn 029 a 14 12% 12% 12% ft 
Benltany is 294 16 15% 15% 

BartdayMt 044 14 15 37% 37% 37% 
BHAGrp 0.T2 13 25 8% d8% 8% ft 
BDK - 100 34 5 5 5ft 

BOS 110 10 503 11% 11? 11? -A 

BtekyW 109 13 468 12% 1212% -A 

Btogan X 2555 34% 33% 34% ft 

Btonet 171902 10 9% 9% ft 

Bock Og 104 11 137 31% 30% 31 ft 
BMC Soft* 172232 5ft 53% 54% 
Boatmen Sxl .24 11 1519 34% 34% 34% ft 
Bob Bona 027 18 439 20? 20? 20% ft 
BooieiB 15 45n29% 29 29% ft 

Boriand 183417 10? 9? 9? -A 
Baton Bkx 078 5 837 30% 29% 29% ft 
Boston Tt 463085 10% 9? 9JS *A 

BrwJyWA 048 18 13 48% 46% 46% ft 
amca 020 26 50 11? 11 11? 
aunS 024 15 777 7? 7? 7% ft 
BSBBnqix 178 8 18nZ7% a a ft 
BTSUpng 049 7 10 3% 3% 3% ft 
Bofletx aiBOl 19% 18% 19 ft 

BtidaraT 22 78 12? 12? 12? ft 

Bur ftw 311188 9% 6% 9% ft 
BnataaaR 63 X 33% 33% 33% ft 
BufctUg 5 3 22% 22% 22% *% 


- F - 

Map 11 a *% 4% 4% 

fatrCp 024 14 ITS 5% 5? 5? 

Festered lOd 52 5*0 M 32% 33 ft 

FWM 13 6250 21% 21% 21% ft 

Rmnfcs 3 174 3? 2? 3 

HHMM UB 161376 u55 54 54 ft 

Wry Off s 121 3% 2? 2il -A 

HggtaA 024 1 149 10? 10 TO? ft 

FtoM 37 857 27% ‘28% 26% -% 

FaWbame ia 121052 36? 35? 95? 
FMtAm 084 01250032% 31? 32% *? 
FMBcOMn x UX) 10 33 24% 23% 24 ft 

FMCaBk 100 21 132 24% 24% 24% 

HtSedyx UN 11 071 29% a 29% ft 

Fit Tam 1A 9 737 41% 41 41% ft 

MHteatn CL3B 7 21 9 8? 9? 

FMtodWcx 152 6 394 23 22? 22? ft 

FMCT 158 11 323 47% 46% 47% ft 

nrnte 41 B 7? 7% 7% ft 

Haaw S 987 21% 20% 20% ft 

FkwU 151530 5? 4? 5? ft 

FoodLA 109 15 1396 S% 5? 5% ft 

FoodLB 0003822782 5? cS? 5? ft 

FBramat 1 jD 8 10 57 31% 30% 31% ft 

Ftaactew 13 zim 14 14 14 ft 

FTmuBmc 130 321600(04% 33% 33? ft 
Foster A 40 432 3}] 3% 3? 

FrtftHn UN 11 Ml 28% a a? ft 

Fat Earn 1.12595 50 26{J 26% a% ft 

RdFU 040 7 353 16% 15 15-1% 

FtaHauaix tie 10 47 na 27% 27% 

FUtarHB 058 a 574 37% 35% 97% *1? 

Fidtoafla 088 14 291 20% 25% a% ft 

Rina 024 IB a 15% 14% 15% ft 


-Q- 

8>App 6 375 4? d3% 3? ft 

BSKSnrv 087 21 598 14% 14 14 

&rta* 0 40 3? 3% 3% 

am* Re 10 40 4 3% 3% 

Gate Co 110158 M 6% 6% 6% ft 

EM Bind x 140 16 3 15% 15% 15% -1 

art»to 17 267 4A 4? 4l2 

OanMaPb 41106 13? 12% 12? ft 
SBrtExCp 480 44 1399 2B% a a 
Gamine 133 IS 4% 3? 4 

6enzjraa 881380 30% 28% 29% ft 
Gfeaonax 04011 534 18% «% 1B% ft 
6kUtaDM.x 012 10 1459 22%tBl% 21% ft 
a«A 080 17 a 16% 18 18 

GMiBtan 11 19 5% 5% 5% ft 

Good Guys 141302 11% 11 A 11% 

GntafcPnv 050 a 441 22% 22% 22% ft 
OadcoSys 35 0 2% 2% 2% 

ante 020 70 18 21% 20% 21% ft 

aanAPx 02* 10 aa i7A 17,1 17, 7 , -ft 


men 086 2130402 24? 24% 24% ft 
USCta'l 17 722 a% 19% a *% 

MaclIB 080 42 a 13? 13? 13% ft 

MarhcnCEzia 14 15 32% 32% 32% ft 

MaomaFOT 14 704 31 30% 30? ft 

none Op oa 12 3070 19% 18% 16% ft 

UM Box 13 92 8% 8 9% ft 

Marram cp 29i06i io? id io% ft 

MatbaDr 12 591 4? 4% 4? -A 

Mated Cp 9 24 40% 39% 40% 


UalBox 13 92 8% 8 8% ft 

Mucmcp an»i io? io io% ft 

Madua 12 591 4? 4% 4? -A 

Mated Cp 9 24 40% 39% 40% 
Uanmat 1 106 2A 2 2 

MtaiHIB 19 a 9 B? 8? ft 
ManddteMOA* 10 m 10% 10 10% 
MmbMIX 08011 62* 22% 21% 21% -% 
MaMec 9 817 8? 6 8% *A 

tonka tat 38 220 51 49% 50% •% 

Maxtor Cp 01811 6% 5? 5? ft 

McQOTbR 044 13 432 16? 16% 16? ft 
McCmdc 048 173237 21% 2121% *? 
MeCaaC 48B753 52% 51% 51% -? 
Medteag 0 527 % ft % +A 

Mate Inc 01616 147 12% 12 12? ft 
Hatches 048 13 236 22% 22 22% 
Metamtae 03* B 13 5% dd% 4% ft 
Manor Cp 016 45 a 14% 13% 13% 
tort® 024 21 7» 11? 10? 11% ft 
UeramtB 098 10 181 19? 19? 10% ft 
MareuyG on B 1584 30% 28% 30*1? 

Hainan 108 11 451 30% 30% 30% *% 
Matte 17 3056 18 17? 17% +A 

MeUndeA 006 15 2137 15% 14% 15 ft 

McbaMF 02018 29 11? 11? 11% 
MkbNaS £0(059 2927879% 77% 79 *1 

MkrDMi 9 151 4 3? 3? ft 

Menage 191552 27 25% 25% -% 

Mcmeom 5 148 5? 5? 5? ft 

Hctgrtoc 181887 ft 6 6? 
Mcrpofa 3 824 B? 6? 6? 

Was 161648ru54% 51% s ft 

HdAHM 43 5005 48? 47% 49? +1? 
MUtoBUC 040 12 4082 30% 29? 30% ft 
MdaAata OSD 27 3 32% 32% 32% ft 

UtaarHx 0£2 18 1160 25? 24? 25? ft 
■flan 2373 23% 22? 23 ft 

teweeti 14 SI 10? 10% 10? -.18 
MobtoTed 431798 17J0 17 17% ft 
Modem Cb 02018 X 7% 7% 7% 
ModhaMCxlSZ 19 97 27 26% 27 

to** 004 549 35% 35 35 

Hotel be 004 a 598 37% 38% 37% *% 
Macom 10417 Ml 10? 9? 9% ft 
MoakaaF 138 22 44 M 29% 29% -1 

MrCnflee 171218 14% 14% 14% -A 

HlSSys 05811 10 27% 28% 27A +A 
Wmed 131535 » 29% 29% 

tayeogn 4 73 10% 10% ift -% 


- s- 

Satara 116 61080 55? M 55? *? 
Batoanoa 130 13 187 15% 17% 17? -% 
ScbtaCipA 030 18 221 25% 24% 25 

SaMadL 0 1867 30^2 29% 2ft -% 
sasyam it 828 14? 14? 14? 

Sett 8 3*0 6? d6% 6? ■? 

SdtaxCpx 052 72902 ift 15% 16 
Seen Bid 93273 6% 8% 8% *% 

Setoeux 120 *5 8 37% 37% 37% -% 

5'Dlto 106472 23? £1? 23% -A 

SSCp 012 22 260 IB 17% 17% ■% 
Sedieli B 036 1 a 1% 1? 1? ft 

Galectln 1.12 14 31 25% 74% 74% •% 

Sequent 633118 13% 13? 13? -? 

Snqnete 27 683 4% 4* 4,1 

Sen Tectl 13 12 9% 9% ft 

SteffiM 27 7 4? 4? 4? -% 

Severaon 16 125 16 17% 17% 

SMIed 084 17 945 23U 23 23? -? 

SHLSytam 3 56 7? 6j( 7? 

Sterawod 77 755 17 16% ift -% 

Startup 10 104 11% 10% 10% •% 

Storm On 191728 23 22% 22,v -A 

StarraTuc 2 » 3? 3% 3? ft 

StonNx 133 19 B10 42% 41% 47% 

StoiaDea 1 *M 8% 7? 9% ft 

StactMc 006 » 105 10% 10 10 ft 

SScrAIGp 31 1026 10? 10? 10? 

sanparax ue 24 69 ig%mB% 19 ft 
Smihfld M G3S 74 a 23% ft 

SnappdeBv 6313175 24% 23% 24% -% 

SeffwaraP 1 452 5% *? 5? ft 

Snnooox 1SB 14 880 2ftd(»% 70% *% 
SfluOlMx D« 105351 U21? M% 21? *% 
Sptegel A Ota 47 220 H% 21% 22% 
SJUdaMd 040 112394 77% 77 27% ft 

aikflc 030 10 451 21% 71? 21? ft 
Sfcyfil 2 486 2? 2,1 2A 

StedB 45 1438 29% X 29% ft 

Blda ST 156 173251 41 40% 40% -% 

SMMtara 11 1589 17% 18% 16% -% 

8UIMXD58 14 54 21% 2121% *% 

Stael Tec 00617 148 1ftd15% 15% 
S0W1USA ia 2 754 10? 9% 9% ft 
SUM 146 8 a% 20% 20% 

Sbmtza 1.10 13 271 21% 20% a% -% 
SkiiODy 21 4806 ID? 0? 10? *% 
Stryker 028 21 BOB 27% 26% 27*% 
SutavwD 22 73 15% 14% 14? -A 

Sumtanoe 080 2S 2 22 a 22 

SuandtBcxtLW 1* 886022% 22 22 •% 
Grand Tt 362516 27% a a? ft 

SOT Sport 12 29 5A « 5 ft 

SUMC 1211673 21? 20? 21% -? 

StaiflTra 29 193 20% 28% 28% ft 

Sybmelne B312882o55% 52% 54% *% 
symntec 37 BBS 14? 13% 14 *% 

Sjrato* 03018 151 18? 18 18 ft 

Synodal 65 227 3? 3A 3% -A 

Synergn 3 517 ID? 9% 9% -% 

Syw*c G0 1077 al 4% 14 14,1 ft 

Synoptics IB 6659 21 19% 21 *% 


SyafanSoR 112 IB 2028 15% 1ft 14% 


Syatamteo 

Syatenad 


31 as 1ft 19% 19% 
262093 u6? 6 8? ft 


AMEX COMPOSITE PRICES 


Dkx E 180a Mgb LoaOna Omg 

418 57 12? 12? 12% ft 
3 13 111 IB Hi ft 


MrMngn 418 57 
Afflnhc 3 '13 
Alpiatnd 2 81 
AmtePa UN 12 4 

AraWtae A 064IW 138 
Ham 105 2 706 


57 12? 12% 12% ft 
'13 111 IB ’ll ft 
81 4 3? 4 ft 

4 44 4ft 44 *1 

138 2®% 19? 20 ft 

roe 6% 6? 6? 

S3 IA 1% IA 
141 8% dB? 8% 


ArenFAmA 45 141 8% 09% 8% 
ASRbre 172 1 B3 2 IjJ 2 . 

Asbotadi 24 20 2% d2? 2» ft 

Atari 5 306 4B 4% 4% ft 

AHatfMB 0 £57 A A Aft 

AudDRA 12 17 13% 13? 13? ft 

BSHOcaen 155 0 58 2% 2? 2? ft 

BadgeiUkx073 16 2 21 21 21 ft 
feddrtTA 004 30 14 5? 5? 5? . 

Barry RG 18 133 20 19 1ft ft 

BAT M 029 T2 814 7% 7? 7? 

Mart 0 3 2i 1, Sfi 

State Man 040151 8 21%<t?j% 21% , 

BkFtedA 51 “ “ 


Slock Dht. E 100a Mob UnrCtoMOa* 
CPmtaco 030 22 951 1ft 16? 16% ft 

Cnmputec 0 65 « d? ? ft 

Cooed FM 4 15 7? 7% 7% ft 

CraaaAT A 064570 2S3u17? 17? 17? ft 
CnanCA 040 *1 30 18% 17? 18% ft 

QrmnCB 040 14 27 17 16% 17 ft 

cubic 053 82 43 10018% 18? ft 


CramCB 040 14 27 
CUBIC 05382 43 
Cusumicfer 14 25 


Uinta 13 so a B 

Hoark 27 127 17 16? 

Ducomran 10 119 u6? 4% 

Duptar 048 40 2 9% 9% 


82 43 19018% 18? 

14 25 2U 2? SI 

13 10 H tt H 

27 127 17 16? 16? 


Bk. E tfltta Hfek Low Ora Dag 

5 30 3% 3% 3% 

3 313 lift 3? 3% 

015 45 65 10% 10? 10% ft 

14 170 11 10? 11 ft 

1 222 5% A 5? ft 


iPHmyA 050 20 


4 pm dose Htsy 26 


ttk E 100a Ugh LoaDeaa Bag 

OOO 51 38 12% 12 12% 

184 13 19 25% 25 25 

029 191810 70? 00 89% +1 


UrtunCp 012 25 40 10 
11 Cram * 322 4 
tatemagn HI 2002 22 
haz 106 193191 19 


21 % 22 ? 
19? 19? 


112 25 740 19? IB 
080 17 32 15 14 

010 1 15 1,1 1 

31 2 29 28 

3 61 47 6 


2B 18? 17? 


Bkwod A 069 40 34 37% 37 37% 

Bowbdtoy . WS 40 10% 10? 10% 


29 64 
03D 9 196 


64 3% 2« 
96 20? 20 


rA 104 15 86 14% 14 14? -% 


2 ’» _a b 

020 13 10 22? 22? 22? 

020 22 4 12? 12? 12? 


(tepmp 2 120 
Cantew oj» 13 10 
CaiMtac 028 22 4 

OnbiA 101 S 284 
Qaruban 7 5 

Oanptan 47 112 


CMn 

CWk 104 

CmrlFdA 001 


2371647 4% *J 


10* 28 454 10? 
001 50 5? 


Eastn CD x 04815 7 15? 15? 15? 

EHtedd 1.72305 42 20? 20% 20% 
i EchoBny 107310 2415 11? 10? 11? 
EcoIBbA 030 10 7 13 K? 13 

EdktoRi 6 50 ft 7% 6 

Bn 151463 35% 34? 35%. 

EngyStav 501408 4 ft 4 

Ep&pa 101897 17% 18% 17? 

Abb* OM 12 3 34? S3? 34? 

FtaaA 120 16 1BH7S? 7G? 78? 
PdtCOySnc 020 13 9 11? 11 11? 

FleteU 1S2 72 18 29% 2B 29? 

Forest La 28 843 44% 43% 43? 

Frequency 2 2 ft ft ft 

Garen 080 7 8 25 25 25 

BatrtRM 07! 13 523 21% 21% 21% 

OaOHr 070 34 79 16 15? 15? 

OoktaeU 2 81 ? d,% A 

tovoman ST 46 6? 6 6 

WO* 184 23 119 3% 3? 3% 

HatOr 32 324 5% 5% ft 

(MO 026 15 540 33% 33 33? 


3 313 ft ft ft ft 

19 3 13 12? 12? 

22 3 4? 4% 4? 

22 704 19? IB IS? ft 

77 405 09% 8? 9% ft 

10 100 1? 1? 1? 

10 32 ft 6 0? ft 

180 £ S S S 7 3- 

8 17*26% 25% 26% ft • 


SJHMtep £10 0 2 38095? 35? 

StMUcD 17 104 19 1ft 18? 

Sbd B OM 13 61 12% 12 12 

7IW 21 67 ft 3? 3? 

Td)Pm*x 120 54 5 9% 9% 9% 

TaBMa 039 59 087 40% 39? 40% 

TtMcmeOcs (6 50 14%. 14? 14? 


56 ED 14% 14? 14? 
Iterant* 30 173 28% 20? 20% 

Tom 120 21 682 15% 15 15 

TbagCMry 0 77 2% 2, ? « 2% 

Tiftn 11 20* 1? 1% 1? 

TOToeMtx 201076 ft 5? 5% 
TOTZOrA 107 70 142. 19% 1ft 19 
Ttentftfl lOTteTHM 19% 19? 18? 
IMteU 5 202 2% 2A 2% 
UURnrue 120109 12 2A 2A 2A 
UnkFInte T7 01 ft B ft 

USCeH 96 94 27? 27% 27? 

VtaceraA 10 121 90% 29% 29? 

VlK»nB ZSB 29% 28? 28% 

Wk rt artd 271100 11% ift 11% 
Htaa to nar an 2* 313 28% 2ft 2ft 
WFETx 1.12 19 156 ift 13? 13? 
WDtltan ISO 12 78 27? ZS% 27 

Wak 4' 29 4 3? 3*J 


m 2 06 

Ax 04d 29 148 
2o 020 6 2 

I 47 

A 14 2 

tad 17 1» 


Nat PM 7 171 

NV1M 0593842278 I 
MhCanOI 020 11 7£ 

Nreuaf 120 72 

MR 12 10 




Atom On 
*% IteU 

lra4d 


201076 ft 5 
107 70 142. 10% It 

lonapnoa 19% 11 


OdeOci A 34 135 
Qtoten 024156 284 
Pagarae 140 83 517 


34 135 b 9% 0ft ft , 
156 284 33% 33% 33% +? 
83 517 17? 1ft 16? -% 


CTac in 8 2ft 25% 25% 

Cabot Med 9 148 0? 7? 7? 

CadSdmps 1^1 16 105 29% 29 29 -% 

CtonCbmidUD 20 AM 17% 16% 17 

Caere Cp 116 357 7? 07 7 -? 

CdOeoa £25 9 3334 14% 13? 1ft -% 

CN Went IB 219 20? 20 20 -? 

GaadaBta 1 201 1% 1% V, 

CSnrtataL 2 69 3? 3? 3? 

Galea D 378 2? 2% 2% -? 

Canon he 060112 15 81% B1 81 -% 

Canute 1 00 3? 3 3? 

Cankai 112 25 144 dft 46% 48% 

CaribnCm 003 23 142 2ft 27% 28? +% 

Cascade x (U& 19 72 21 1ft 30? +? 

Cray S 106 15 2200 TO%01D% 10? 
cage™ 5 729 7 B% 6? +% 

Cltadar 6 334 1ft 18? 19? 

CSICp 18 25 12 11% 11? +? 

CantedW 77 1D2 li io? 10? 

Gaocnr 513005 1ft 11? 12% -% 
CUlHd 1.12 12 2062 vM 32% 33% *1% 

CWrtSpr 23 22 11? 11% 11? +? . 

Grater & 10 4? 04? 4? -% 1 

Dtaptarl m 8 2823 U23? 21% 22% *% 
Cten6ti QUO 130048 ft ft 9? *? 
Ctautagn 42 47 uB% 8ft B% 

GM0U 15 4 10? 10% ID? 

Ctawlte 1 290 % d? % 

CtamqnMr 12 8 3% 3% ft 

Cbt*m» 71056 4% 4 4?-% 

ChkuaCp 019417 63% 62 63% *89 
CbtaHq .126 12 509 52% 52 52 

CtotaiCp 117 31 200 32 31% 92 *% 

Cknalgc 354361 33? 32? 33 -? 

CBTecb 1341032 2? 2? 2{i 

Gtefiya 1337673 27 24% 25 -% 

Gz Batop 1J» 15 170 2ft 28 26 -% 

CkanHbc . 28 11 7% 7 7%+% 

CmDr 44 46 13 12? 13 +% 

Gatoaam 71280 4? 4% 4% +% 

OocaCrdaB rUD 16 577 26% 2ft 26% +% 


GitaddlA 1 083 % ? Ji +A 

Gramms 1 978 3? 3? 3? 

Gmdwr 850 49 13d12% 13 *% 

GTICup 7 325 10% ID 10% *? 

GtrWTSvg 51570 9? ft 8,', +i 


- H - 

HtorlngA 58 9 7 ft ft -% 

(tatoryvl 164 6 30 22% 21% 22% 

Harper Gp 028 13 70 15 14% 14? *? 

(SO 8 Co 016 221078 27% 27 27 -% 
HaaBbcar 193132 21? 20? 20? -? 
Keatarua 106 20 964 12? 12? 12? -% 

HMUakn 10 951 6? 6? ft +? 

HarthW 12 632 7% 7? 7ft *& 

Hectteger 110 26 504 is? 15? 15? +% 

Ifcktad 17B 11% 10% 11? +? 

HetoiTroy 8 39 u 13% 13% *? 

Hart* 07! 15 2148 Z3% 22? 23% +% 
ItaganSys 115 2B 161 9% 9? 9? -? 

Hotagb 44 1M 10% 9? 9? 

HaaaBadzan 8 7 21% 2ft 21% *1% 

(tom Otar 072 25 251 U21 20 20% 

HnlnteX 044 20 4BS 30 28ft 2812 -A 

Homback 18 2053 16? ift ift 

(tnaftRaa 144362 90 3? ft 3? 

Hunt JB 020181169 18% 19? 18% *? 
Honangto 080 11 2738 20% 26% 20% *>i 
Hura Co QOB OzlOO 2? 2? 2? 
HufcWBCb 55 368 34% 33% 33% -? 


NAC A 016 12 43 2ft 2ft 29% -? 

Natl Fodr X072 11 15 17 17 17 +? 

MrtPtza 13 31 ft 06 6% 

NatCunpt 036 781197 12% 12% 12% *% 
NtraSm 020 19 136 13% 12% 12% -% 

Ntadortr 9 11 17 17 17 -% 

ICC 046 97 23 59% 60? 56? -? 
UeAecr 17 319 27% 27% 27% *% 

NetekGan 231689 16? 16% ift +? 

tewdfi 91 730 8% 08? M -ft 

Nauregen 25 3 7? 7? 7? 

fflrgra 027 19 453 18% 1ft 19% -? 

ItaaEB* DOO 22 266 1ft 1ft 1ft -ft 

tom tenge 7 981 10 9% 9ft -ft 

MXIfeBtoft 3415113 48% 43% 45? +1% 

teaprtCp 004 12 40 6 5? 6 +? 

Ncbto Dd 224331 7% 6? 7% *? 

toadsui 058 S 603 58% 55% K% 

tohtrmx 040 263198 *5 44 44% 

Iknbnl 12 138 1ft 15% 1ft +% 

N Star lb 4 3 4? 4? 4? -% 

tortnTat 088 13 B37 41 40% 40% -% 

MtfAk 15 654 14% 14? 14% *? 

ton* 20521091 16? 16? ift -? 
Novetaa 26 1B23 31% 29% 29? -? 

NSC Cup 10 23 4 4 4 


FRSye 

DBCUnaw 

BShM 

Enncsr 

krauangen 


56 M uft 
42BZ72 14% 


9 9 *% 

14 14% +? 


7 122 7? 7% 7% -% 
32 236 ft 5ft 


GET YOUR FT BY HAND DELIVERY 

IN STOCKHOLM. 

; lf wyj ivork in the business centres of Malmo, Lund, Siockholm or Gothenburg we’ll deliver your daily 
. <JOpy of the FT to your office at no extra cost. Call Bradley Johnson for details (08) 79 1 2345- 




1 C(Xta &gy 116 641 8? 5% 5fl -ft 

CHtaMtaffl 24 624 10? 9? 9% -? 

CtvmCp SO 251 19% 1ft TB% 

COOK* 90 55 10? ID? 10? 

CUtenit 16 136 13% 13 13 -% 

CDhoai 89 704 22? 22 22? -? 

CaUGaax 12B 13 20 20% 20 20% 

CoH Bp 100 6 132 23ft 23? 23? *? 

Center 024 13 62* 1ft 18% 19 +? 

CtacaM 001 18 744 IB? 17? 17? -ft 

DntoASp 009 377114 17% 17? 17ft -ft 
C alm dart (40 58 11 397 32% 32 32? *? 

ConaaQ 070 93 81 IB 17% 17% +% 

XDonprtJfaB 400 278 12% 12% 12% -% 

Gtetoare 62 97 13% 13 13% +% 

CmatucMI 35 195 ft 3ft 3ft +ft 

.CcaAp 128 271097 41 39 3B% +% 

Cn m taa n - 101266 7% dB 6? -1? 

'.OunM 1A4 165026011? 10? 11 

CratelM 31 468 1ft 15? It % 
CWrtOMa 18 1035 oil 10% 10? 

GxnAx 050 171024 19% 18% 19% 4? 
canMe 87 ssi io% io? ift -% 

Onfeft 22 178 50% 50% 50% +% 

Cora or A 43 200 15% 15 15% +? 

Gwter B 002 28103* 24% 24 24 -% 
GtarGomp 0 771 1ft 1ft 1ft -ft 

Gm«Hee 40 338 5? ft 5,1 -ft 

Ppgan 49748 5? ft 5? +1? 


- D - 

DSC &n 1518325 24f| 23? 23% -1 

DartEnux 013192100 7E 079 79 -1% 

DataSaddi 10 1B0 2? 2? 2% 

teteta 30 45 7% 7? 7? -? 

Deuampp 16 746)119% 16 1ft 


knuaagan 4 673 5 ft 4ft *ft 

tarpon Be 040 34 532017% 17 17% +% 

Itel Blnep X UB 20 3B4 1140 39? 39? -.18 
Ind It* 024217 8 15% 1ft 1ft -? 

tafRes 16 813 14% 13% 13% -% 

taftrtiz 192004 19 15 15% 

htfUWtX 066 10 BZ9 11? 11% 11» -ft 
WegrOta 324870 Z7? 2ft 27 -% 
kdgkSys 28 12 11% 11% 11% 
tolMta l 11 074 3% 9? 3% 
bM 024 1129037 62 60 60% •% 

kteta 9 150 2% 2? 2% +ft 

tdtgniSx 132 365757 21? 20? 2DH +ft 
War Tel 23 491 10? 10 10? +? 

htertcaA 024 171219 13? 13? 13% -? 
Wgph 32952 9? 9 9?*? 

ttM B 276 6? 6? 6? 

Uvrtva 286 194 11% 11% 11% +% 
htafuede 191500 10? 10% 10% -? 
taUMyQA 16 262 18 17% 17? -? 

UR* 006 22 . 2 3? 3? 3? ft 
W Total 500 234 10? 9% 10 +ft 

kmcare 001 IB 199 27% 27% Z7% ft 
kxrewCp 1 341 2? 2? 2? *ft 
koDMfe 17 44 1B% 17% 10% 

BtoVMadD 130 37 4 202201% 202 *1 


- J- 

JUSnack 142011 12? n? iz? +% 
Jteoolac 026 17 479 11? 11 11? ft 

ifi w 110 28 859 32% 2B% 32*3% 

ikdram W 59 176 24 23% 23% 

Jades W 10 94 13% 13% 13% ft 

•tew Mad 110 16 113 10%iflD% 10,% -ft 

JortyaCpx 120 12 B H% 2ft 25% ft 

JSBFfc QB4 15 892 24? 2ft 24? ft 

JUDL4 aa 18 4 19% 19% 18% ft 




116 9 429 12%<t11% 11? -% 


- O - 

OCtertay* 20 8 18 17% IB ft 

Octal Corn 151175 20 1 8% 20 ft 

OftdnUl 15 430 14% 14? 14? ft 

DgtabcyNxm SHOO 26 26 28 
OhtoCex 1.48 5 1930 26028% £7% -% 

OUKan 1.1611 896 35% 35? 35? ft 
DUNtoB 092 18 12 38% 038 30% *% 

Ontancap 1JJ0 7 148 30% 30% 30% *% 
One Price 14 499 19? 17? 18% ft 

Opdndfl 20 51 21? 21 21 

OnetaS 48205© 34? 33 34 ft 

Ort) Scree 562288 22 21 21? ft 

OrtMtaeh 099 23 4 B? B? 8? -% 

OrtMSqrp 9 126 14 13% 13% 

GngarMet 031 io 40 5? 8 5? 

OBhte 7 128 2? 02? 2? ft 

OrtMAX Ml 40 534 13 12% 12? -? 

QatdatoT 150 11 46 11% 10% 11? +ft 

OUTto 1J2 13 121 31 20% 31 ft 


- P - Q - 

Paccar x LOO 1 3 278 81 49% 49% -1 

AeDurtPp HE 13 288 13% 13% 13% ft 

PTatax 132 15 283 22% 2lH 22% *T 

CacflCre 23 923 56? 54% 56 +? 

Panmeta 31 7000 28 27? 27? -? 

Aycba 02* 40 285 33%d3Z% 32% ft 
PaycoAm 22 65 9 9 9 ft 

Peerteaa OSD 42 33 9? 09% 9% 

(tom-nty a w 14% 14% 14% 

Pam toga ISO 23 7 32 32 82 -1% 

Partelr QJ2 is 16 34% 34% 34% ft 

Parted] l 15 248 0 5? 5% ft 

PamMtLxO2O20 13 IS? 19 19 ft 
PeeptoaH 024 13 731 13? 13? 13% ft 

PttfiB 1.12 IS S4 34% 33A 33% ft 

Pharmacy 23 366 0% 7% 7% ft 

PhnaWTdi 25 67 5% 5 5 

Pteadi 148 4 42 n?mi? 11? 
«w 26 156 12% 12 1 * 12% 

Hntartun 48 95 17% 17 17 

naweriJpxOJn £7 542 40% 40 40% ft 

PttnaerH 156 24 1688 36% 35% S5% -% 
Pteiwa 1M 13 m 25% 24A 24% 

taw FW S 9 S% 8% 0? ft 

Powel IS 116 7? B% B% ft 

PresUfB 109 31144 6? 6? G}J +A 
Praatak SB 427 29 25% 26 +% 

Ptftat 2068*3 14 13? 13% 

MtaPBl 38 351 5? 4? 5ft 

Prtlbad 17 3 bS% B 9% ft 

Prod Op* 024 22 28 25024% 24? ft 


- T - 

T-CM5C 7 285 4% 4 4 

TrawaPr 152 IB 503 29% 29 29% ft 

TBCGl 17 257 12? 12? 12? +% 
TCACatte 144 272402 23? 20% 22? *2% 
TecftDaia 11 1334 17% 17,*, 17? ft 
Teaman on 13 205 54% 51 51? -2? 

Ttoatac 2 0B7 9% 0% 9% ■% 

■1WC0S)« 8W92UT5? 15 15? ft 

TrteCommA 29631893 21? 20% 20? ft 
Tertt 72958 5% «H 5 

Tctobl 254074 38% 34% 34% -1% 

TahmCp 101 91 538 17 ift 16% ft 

Tatra Tec 732845 9 8? 9ft 

TewPnADRNI27 342203 24 23% 23% *? 
Three Com 3321667 52? 48,^ 48% -*% 
TJM 022 33 8G2 22? 21% 2214 ft 

TOtaa Mad 2 254 4? 3? 3? ft 

Tokyo Mr 037 39 10 64? 64% 64l| ft 

THn8ra«m 76 2411u1«? 13? 14? *1 
ToppiCd 026328 1090 6? 6? 6& +A 
TP1 Enter 42*34 B 7% 7% -? 

Tramwid io 500 10? 10% 10? ft 

Trenrick 1JX) n 11 41% 41% 41% *% 

Tricare 8 94 2i{ 2% 2% ft 

Tktsdde 48 392 9% 9 9% 

TrudUBkC 180 10 64 20% 19% 19U -}} 

Tseng lab x 020 12 759 7% 7 7%-% 

TrsF0Ax (UB 172716 21? 21% 21? ft 


us After 088 13 93U 38% 37% 38+% 
Untab 2 205 5? 5% 5% 

UQItoa&x 1-00 IS 86 16% 15% 16 ft 

1ST* £00 12 462 51% 50% 61? +? 

OMad a 040 11 52 12% 12 A 12% 

Lhtog 020 21 noo U27 27 27 *1 

Uttb 1.40 22 1441 40% 40% 40% 

US Banep 0B8 10 1987 27? 28% 27 +% 

UE Energy 28 15 4 4 4 -% 

1ST tap 1.12 B 162 13? 13% 13% ft 

totalled 11 61 7% 7? 7? ft 

ted Tetov 10 3 44% 44% 44% 

Ufa 16 27 5? 5? 5? 


-V- 

030 32 145 14% 14 14% ft 

641002 33? S3 33 -1 

19 599 17% 17 17% 

40 123 28% 25% 25% ft 
01442 15 14? IS ft 

28 14S0 22% 21? 22% *1 
31 1539 14? 13% 14 ft 

164 18 IS 08? 98% 08? ft 


- w- 

wmarEn 110 21 i» 27% 27 27 

tatmtacb 70 365 4, r , 4% 4% -A 

WtehtoASBOn 7 B839 20% 20? 20% ft 

wwraa. on 8 60S 22% 22? 22? 

WUWtadAx 022 81138 23% 22% 23? ft 
Wausau PM 02t 18 715 26% 26 26 ft 

WD-40 £00 15 38 40% 39% 40 ft 

Watek 25 232 4% 4% 4? 4% 

W«*l One 172 1217*0031? 30? 31? *% 
"W* 8 135 12 11% 12 ft 

*0pStt 1 387 15% 15% 15% 

"WtealA 132290 3? ZB 3% ft 

"®0Xtax IBB 222017 46% 45% 45% ft 

•tetoononH 72 541 33 32 32 ft 

wowitoiuoaBia S4i4%i4% 14 % J1 

W #W 140 23 1261 18 18% 16% ft 

WPP Gram 103 23 868 3{3 3? 3}1 -A 
■yOtakfltoO* 41738 8% 5? ft ft 


-X-Y-Z- 


toter 264001 43 40% 41% 

»™tap 2 803 3% ft ft ft 
Ww 194 271594 IB? 1ft ift 
VortHsto 471818 «% 3? 41? ^ 

atrettto 1.12 10 440041% 40 4ft +% 


-a ef. vT* 



.. ». -v->A“WW ■ 


40 


WORLD STOCK MARKETS 


FINANCIAL 


Friday May 27 1994 


AMERICA 


i 4 


Dow nudged 
lower by 
Philip Morris 


Wall Street 


US stocks were mixed yester- 
day morning but a sharp loss 
by Philip Morris nudged the 
bellwether blue chip index into 
negative territory, writes 
Frank McGurty in New York. 

By I pm, the Dow Jones 
Industrial Average was 1.53 
lower at 3,753.77. while the 
more broadly based Standard 
& Poor’s 500 was a scant 0.51 
better at 456.85. Advancing 
Issues led declines by 1,017 to 
861 in volume of 149m shares. 

In the secondary markets, 
the American S E composite 
eased 035 to 438.90, while the 
Nasdaq composite added 0.15 to 
732.22. 

Activity was listless as inves- 
tors began to square their posi- 
tions ahead of the three-day 


NYSE volume 

DaBy (mfllton) 

350 - 


300 



\ 

y • 

280,100000 



200 *- 


12 13 16 17 IS 18 20 23 34 25 

May 199* 

Memorial Day weekend. 

The market had only 3 shred 
of economic news to guide sen- 
timent The Labor Department 
said that initial claims for state 
unemployment benefit had 
receded by 1,000 last week, 
against expectations of a 74)00 
decline. The figures, combined 
with an upward revision of the 
total number receiving jobless 
benefit, suggested that the 
labour market was weakening. 
But the data, in isolation, was 
not viewed as especially com- 
pelling evidence of an eco- 
nomic slowdown, and had little 
Impact on sentiment. 

The bond market, mean- 
while, offered neither an obsta- 
cle nor a source of encourage- 
ment for stocks. Treasury 
prices were virtually 
unchanged. A flurry of buying 
that followed the release of the 
weaker-than-expected jobless 
numbers soon gave way to 
profit-taking on the heels of 
the previous session’s late 
rally. 

Among the Dow components, 
Philip Morris stood as the only 
impediment to further 
improvement by the index, 
which had followed bonds to a 
modest gain during the previ- 
ous session. On Wednesday, 
trading in Philip Morris was 
halted for the entire session, 
an unusual move which coin- 
cided with a day-long meeting 
of the company’s board. 

During the conference, the 
directors had considered a pro- 
posal to split the company’s 
tobacco and food businesses 
into separate entities. After the 
markets closed, Philip Morris 


Strong currency hits South Africa 


A sharply stronger financial 
rand worked against shares, 
compounding the day’s down- 
ward drift as the market 
struggled for fresh direction. 
Golds were undermined far- 
ther as the bullion price weak- 
ened. 

The overall index closed 95 
down at 5,396, industrials 
were 57 points lower at 6,598 


and golds lost 71 or 3.7 per 
cent to 1,877. 

Remgro continued to pick up 
following selling related to 
fears of smoking curbs, ciga- 
rette price rises and raised 
alcohol prices under the new 
government. It added 50 cents 
to R29.25. 

De Beers lost R3.25 to R101 
and Anglos R&50 at R2154S0. 


Europe Montedison 

Bearish talk persists as bourses recover dives after 

veto threat 


announced that it had rejected 
such a move "for the foresee- 
able future". 

When the stock resumed 
trading after a brief delay yes- 
terday morning, It was quickly 
marked down $3% to $50 amid 
disappointment over the 
board’s decision. Breaking the 
company up has been 
suggested as a way to limit the 
financial impact of future 
tobacco-related lawsuits. 

The stock's downturn par- 
tially offset a big gain by Boe- 
ing. The aerospace group’s 
share price jumped $2% to 
$46% on news that it was near- 
ing completion of a $5bn deal 
to deliver more than 50 com- 
mercial aircraft to China. 

United Technologies, up $1% 
at $66%, and General Electric, 
$1% ahead at $48%, also made 
positive contributions. 

After Wednesday’s burst of 
activity, technology stocks 
were relatively quiet. Com- 
puter Associates International, 
however, climbed $4 to $41% in 
volume of 2.2m shares. The 
software company beat ana- 
lysts’ forecasts by posting 
fourth-quarter net income of 93 
cents a share, against 57 cents 
a year ago. 

Elsewhere, Compaq fell vic- 
tim to profit-taking, giving 
back $1% to $118 after a $3 gain 
the previous session. 

On the Nasdaq, Lotus Devel- 
opment dropped a further $2% 
to $61, after announcing no 
change in its initial, second- 
quarter earnings estimates of 
between 42 and 50 cents a 
share. 

Canada 

Toronto firmed in thin midday 
trade, the TSE 300 Composite 
index rising 10.10 to 44)02.47 in 
volume of 25.2m shares. 

Golds, however, were weak 
with Placer Dome sinking c$% 
to C$30% and American Bar- 
rick down C$% to C$32%. 

The transportation sector led 
gains , with Laldlaw B shares 
were up C$% to C$9%. 

The bank reporting season 
continued yesterday as Bank of 
Montreal eased C$VS to C$25%. 
in spite of posting stronger sec- 
ond quarter earnings the previ- 
ous session. 

Mexico 

Mexican stocks eased in brisk 
early trade centred on selling 
of Telefonos de Mexico and an 
profit-taking. The IPC index 
fell 9.4 to 2,462.67. Financials 
were worst hit as a sector with 
Interacchmes down 5 per cent, 
and Bancomer B by 2.2 per 
cent 

Brazil 

S&o Paulo balanced profit-tak- 
ing against Wednesday's 8.1 
per cent local currency rise, 
and came out ahead at midses- 
sion. The Bovespa index, by 
1300 local time, was up 374 at 
234)92 in turnover of Gr285.5bn. 

Analysts said that they did 
not discount the possibility of 
some farther profit-taking in 
blue chips. 


Morgan Stanley considered 
European bond and equity 
markets yesterday and said 
that they had further room to 
fall, writes Out Markets Staff. 

Inflationary pressures, the 
slowdown in German rate cuts 
and the fact that investors 
were still long in Europe after 
last year’s bull market should 
keep bonds weak, said Mr 
Richard Davidson and Mr 
Brian V. Muhaney. 

Equities, they said, still 
looked expensive at over twice 
hook value and 7.4 times cash 
flow; “There may be some 
earnings momentum, but at 
these levels there is little earn- 
ings support". 

FRANKFURT applied one 
extension of these arguments - 
a switch out of cyclicals - to 
its carmakers, which underper- 
formed as the Dax index incor- 
porated Wednesday’s post 
bourse fells, and slid a fraction 
further to dose 2&52 lower at 
2,130425. Turnover rose from 
DM8 .2bn to DM8.5bn. 

BMW dropped DM26 to 
DM856, Daimler DM19.50 to 
DM814.50 and Volkswagen 
DM11.50 to DM491.50. At UBS, 
Mr Stephen Reitman said that, 
across Europe, carmakers bad 
been aiming back from their 
highs in reflection of events on 
the other side of the Atlantic, 
where interest rate fears had 
been reversing the substantial 

ASIA PACIFIC 


FT-SE Actuaries Share Indices 


May 28 
Houly dames 


Open 


THE EUROPEAN SSHES 

1030 11U0 12X0 13X0 14X0 13X0 Q» 


FT-SE EMBtra* 100 1409.45 1411X7 1*13X3 1411.70 1407X5 1409XB 1408.70 141148 

FT-SE to*** S0Q K24.19 ICS. 12 142X04 142531 1423.13 1425.13 1423X3 1428X7 


m 25 tor 24 tor 23 tor 20 May IS 


FT-SE Euram* 100 1412X1 1435J7 144&42 1496X7 1486.18 

FT-SE Eutoa* 200 143024 145190 1468.75 147420 1*6047 

Bn MOB CVMMt WMV W0 • S00 - MSX7 LMftbr 100 ■ I4KJS 2S0 - UT1 Jl 


rise in US auto stocks. 

Germany had seen poor reg- 
istration figures in April, he 
added, with a fall of 15 per emit 
leaving the year so far down ( 
22 per cent after a rise of 19 
per «*nt jn the first quarter; 
and UBS expected a fall for the 
year as a whole. 

PARIS majored on haute? as 
the CAC-40 index recovered 
7.48 to 2.09L89. Credit Lyonnais 
certificates rose FFr32 to 
FFr582, the outperform an ce or 
the day, while CCF put on 
FFr190 at FFr237.40. 

Merrill Lynch said earlier 
this week that the savage cor- 
rection in bank stock prices 
throughout Europe had opened 
up a number of value situa- 
tions; that recovery plays 
should return to the fore 
within the sector, after quality 
banks had made the running 
for six months; and encapsu- 
lated Credit Lyonnais; “a stock 
for which fundamental argu- 
ments are few, but the chart 


suggests a good bounce." 

Eurotunnel shook after its 
rights issue terms, hitting a 
low of FFr27.50, but recovered 
tO end 45 r*!TrtiTTY * E hi ghpr on 

the day at FBT30BS. 

MADRID'S technical recov- 
ery took the general index up 
2.07 to 332J52 with hanks lead- 
ing the way, but there was stiff 
more interest in smaller capi- 
talisation stocks. 

The overnight news that 
Soto Grande’s Valderrama golf 
c o u r se had won the staging at 
the 1997 Ryder Cup took the 
shares up another Ptal5 to 
Pta517 after a short-lived, hut 
anticipatory high of Pta536 on 
Wednesday. 

At James Capel, Mr Chris 
Cooper noted that Soto had 
outperformed by 75 per cent 
this year. The brokers think 
that the de Benedetti holding 
company, Cofir, which owns 42 
per cent of Soto, has the 
greater scope for ontperform- 
anm in the next twelve months 


after nearly three years of 
underperformance in 1991-93. 

AMSTERDAM, recovered 
from early weakness, on news 
that March industrial produc- 
tion, up 22 per cent on the 
month, was 2 per cent better 
than a year earlier. The AEX 
index rose 1.24 to 40174. 

NedUoyd, the shipping and 
road transport group lost 
FI 430 or 5.6 p6r cent to FI 72.00 
in response to lower than 
expected first quarter results. 

KLM, strong in recent days, 
rose another 50 cents to 
F15L80 ahead of next week’s 
earnings report 

Shares in chemical compa- 
nies, staging a technical recov- 
ery after last week's weakness, 
saw DSM add FI 3.20 to 
FI 13100. Akzo put on FI 1.80 to 
FI 209.80 after it announced 
that it was to merge its Euro- 
pean soda ash operations with 
those of France's Rfadne-PouL 
enc. 

ZURICH finished higher 
after Interest rate worries had 
inhibited trading early in the 
day before subsequent bargain- 
hunting helped to reverse the 
downward trend. The SMI 
index rose 16.1 to 2,689.2. 

Roche certificates rebounded 
SFr85 to SFr&545 on the view 
that recent falls had been over- 
done. 

Ascom, the troubled telecom- 
munications group, added 


SFr55 to SFrl.490 after it 
announced that it had avoided 
an operating loss in the first 
quarter and that it continued 
to expect to break even in 1994 
and return to profit in 1995. 

The financial sector was sub- 
dued by the interest rate out- 
look. CS Holding advanced 
SFiS to SFrG06 as it awaited a 
decision by the Austrian 
fmflnnp ministry on its bid for 
a stake in Creditanstalt-Bank- 
verein, following news that an 
Austrian-led consortium had 
sub mitte d an offer. 

ATHENS rebounded, the gen- 
eral index dosing 29.64, or 3.7 
per emit higher at 83&31 after a 
drop of about 15 per cent in 
less than a fortnight duri n g the 
drachma crisis, and a fall 
below 800 yes today in early 
trading. After hours the bourse 
president, Mr Emmanuel Xan- 
thakis, asked investors to stay 
cool: "The decisive stand taken 
by monetary authorities.’' 
he said, “will soon ease tension 
and help interest rates return 
to reaso nable levels.” 

TEL AVIV recovered 3 per 
nmt, Hm» Mishtanim irwfay clos- 
ing 5.57 higher at 19264, but 
sentiment was still shaky after 
a fell of some 18 per cent 
between May 1 and Wednes- 
day. 

Written and edited by wnOam 
Cochrane and Mchaal Morgan 


News that a key advisory 
committee had recommended 
the European Commission to 
veto Montedison’s planned 
joint chemicals venture with 
and Royal Duicb/Sbefl left the 
Italian group’s shares adrift in 
early Milan trading. 

Montedison fell almost 9 pm 
cent and was suspended anto- 


m 





Tokyo turns easier after seven days of rises 


Tokyo 


Profit-taking by domestic insti- 
tutions and arbitrage selling 
brought an extended upward 
run in Japanese equities to a 
close in spite of buying by 
overseas investors, writes 
Ermka Terazono in Tokyo. 

The Nikkei 225 average 
closed down for the first time 
in seven trading days, declin- 
ing 167.83 to 20,495.80. The 
index rose to a high of 20,689.64 
in the early afternoon, but fell 
to a low of 20,489.30 just before 
the dose. 

Arbitrage selling was 
prompted by a fell on the Chi- 
cago futures market on 
Wednesday, and a lier-Hm* in 
Osaka futures. Although the 
Nikkei temporarily recouped 
its losses on overseas inves- 
tors’ purchases of large capital 
steels and shipbuilders, large 
lot selling by financial institu- 
tions and corporate investors 
finally depressed share juices. 

The Topix index of all first 
section stocks fell 7.20 to 
1,650.98 and the Nikkei 300 
declined 1.42 to 301-85. Losers 
led gainers by 609 to 388, with 
193 unchanged. Volume fell to 
400m shares from 459m, some 
investors remaining inactive 
on the last trading day for May 
settlements. 

In London the IS E/Nikkei 50 
index rose 3-08 to L356A8. 

Nippon Telegraph and Tele- 
phone declined Y6.000 to 
Y861.000. Heavy electricals and 
issues linked to the multi-me- 
dia theme lost ground on profit 
taking. Hitachi fell Y20 to 
Yl.010, NEC Y20 to Y1.170 and 
Fujitsu Y10 to Y1.050. 

Arbitrage selling depressed 
some bank shares. Dai-Ichi 
Kangyo Bank fell Y20 to Y1.960 
and Sumitomo Bank by Y20 to 
Y2200. 

Drug shares were lower fol- 
lowing the release of dull earn- 
ing for the current year to 
March, due to government 
price cuts and limits on doc- 
tors' consultation fees. Takeda 
Chemical Industries, the indus- 
try leader, which fell behind 
Sankyo In pretax profit for the 
past business year, fell Y60 to 
Y 1,210; Dainippon Pharmaceu- 
tical lost Y30 to Y1.180- 

Large capital steels and ship- 


builders were higher on active 
buying by overseas investors. 
Mitsubishi Heavy Industries, 
the most active issue of the 
day, rose YI5 to Y738. 

In Osaka, the OSE average 
fell 56.56 to 22667.48 in volume 
of 30.7m shares. 

Roundup 

Pacific Rim markets put in a 
TwiTwd performance as Morgan 
Grenfell Asia Securities 
unveiled a new Pacific Rim 
investment strategy which 
overweights Hong Knng , Thai- 
land and Australia. 

Mr Stuart Cook, chief execu- 
tive, «iid the merchant bank 
was positive on Hong Kong 
because of its exposure to 
Guangdong province which 
continued to enjoy very strong 
econ omic growth. 

Thailand, he said, was the 
second fastest growth economy 
in the world after China and he 
was positive on Australia 
because its economy was 
recovering. 

HONG KONG saw sharp 
early gains erased in late trade 
on news of lower than expected 
of prices paid at a government 
land auction. The Hang Seng 
Index was down 61.54 to 
9,459.83, having been more 
than 100 points ahead earlier 
in the afternoon. 

Most leading property devel- 
opers ended lower. Cheung 
Kong lost HK$1 to HK$3750, 
Henderson Land fell HK$1.75 to 
HK$40.25 and New World 
di pped 40 cents to HK$25.40. 

SYDNEY was dragged lower 
by weakness in Europe and its 
own banking stocks although 
firmer bonds helped the mar- 
ket up from its day’s lows. 

bourse rally after it tumbled 
In early trade. 

The All Ordinaries index, 
2L9 points lower early in the 
session, ended 9.0 easier at 
2096.9. 

In the banking sector, NAB 
dosed 16 cents lower at A$11.68 
and the Commonwealth 
slipped 6 cents to A58^0. 

ANZ dropped another 14 
cents to A54J30 following its 5 
per cent fell on Wednesday 
after results. 

BANGKOK fluctuated 
throughout the day but ended 
higher on bargain-hunting. 


FT-AGTUARIES WORLD INDICES 


Jointly compiled by The Financial Times Ltd- Goldman, Sachs 4 Co. and NatWest Securities lid. In eonjuwtion with the institute of Actuaries and the Faculty of Actuutos 
NATIONAL AND 

REGIONAL MARKETS — WEDMXDAY MAY 2B 1flB4 TUESDAY MAY 24 1994 DOLLAR MUEX 

Flguea tn paemheees US Day’s Pound Local Local Grass US Pound Local Year 

show number of Bros DoUar Change Storing Yen DM Currency % cbg Dhr. DoSar Storing Yen DM Curancy 52 week 52 week ago 
of stock Index % Indax Index Index tndaac on gay Yield Index index Index Input Index Fflqti Low (appro*} 

13038 
141.52 
14X04 
129.87 
21X19 
98.73 
154.82 
109.50 
298.56 
15930 
71 SI 

14634 
337.60 
1509.21 
166.38 
49.77 

156.42 
251.34 
19985 

129.72 
18059 
124.48 
17733 • 

18X39 

145.42 
16695 
ISM? 
14&23 
18008 
12644 
191.15 
146.96 

157.73 
158 33 
16X41 


Australia (691 

176.00 

176.44 


17X08 


130J5? 

Denmark 

24621 

FHand (23). 

14927 

in fT7 

Germany (58) ... 

r rc.ui 

139.71 


—38927 

hfllwl f14| . . . 

nnemwH ro f 

IBS-36 

inly pn) 

88.42 


15823 

Malaysia (99) 

Mexico (IB)- .. 

407,95 

— 2130.99 

Motherland (26) 

Naur Zaatand (14} 

Norway |33) , , 

199.62 

7039 

20022 


347.02 

South Africa (59) 

Cnoln U7I 

261.56 

. 14ft tO 

''T"’ \ : — 

Piimi f«i nci 70 

Miiwwi r 

Swihntoifl (47). ~ - 

157,00 

United Kingdom (203— 
USA (619) 

186.63 

106.13 

EUROPE (721) 

166.66 


21129 

Pacific Baffin (750)—— 

167.89 

itrr'n 

fcLwih AmAnm tK^ 

p. UKfEIGI — 

15180 

□iiopu QW - 

a — Ck Wftil .. 

aww 

reuio. r 

Woriri Ex. US (1654) — tea.35 


-1.6 

172.71 

11621 

15649 

159.43 

-1.4 

3.44 

17820 

175.76 

11825 

16X18 

161.83 

189.15 

13619 

-06 

173.15 

11620 

160.67 

16671 

-12 

128 

17726 

17422 

117j49 

152.45 

15227 

195.41 

141 se 

-12 

170.43 

114.68 

14820 

14427 

-1 A 

320 

175.79 

17279 

11628 

15029 

14729 

17667 

14132 

-04 

127.79 

8526 

11125 

13030 

-02 

220 

13673 

12&49 

8620 

111.99 

13056 

14521 

121.46 

-14 

243.67 

163.95 

212.31 

217.40 

-12 

126 

251.76 

247.48 

16023 

21529 

22122 

27679 

20738 

-ZB 

14707 

9696 

12615 

17020 

-22 

028 

15324 

15122 

10127 

131.79 

17423 

15672 

B654 

-in 

16825 

113.61 

147.13 

151.79 

-12 

Z27 

17423 

17125 

116.49 

14926 

154.73 

185J7 

149.60 

-1.6 

137.10 

92.25 

11646 

11646 

-1.7 

1.72 

14124 

13942 

9325 

12121 

12121 

147.07 

10738 

02 

382.00 

25723 

33228 

38610 

63 

2.75 

38607 

381.48 

25021 

33246 

38428 

50626 

zn/te 

-12 

16120 

122.39 

15820 

17633 

-1.6 

344 

167.62 

184.42 

123.87 

160.73 

17610 

20933 

15083 

-32 

86.77 

5638 

7521 

10527 

-32 

121 

91-32 

69.77 

6029 

7024 

10647 

97.78 

57.68 

0.1 

15626 

105.14 

13616 

105L14 

61 

677 

15924 

15633 

10500 

13625 

10520 

16521 

124 

0.1 

46821 

308.96 

400.13 

46728 

60 

143 

467.50 

45323 

30625 

40020 

48726 

821.63 

31X51 

1.4 

2091.19 

1407.04 

1822.12 

7881.74 

1.4 

121 

210121 

2065.68 

138724 

100030 

757X17 

2647.08 

1431.17 

-1.0 

195.69 

131.81 

17669 

18611 

-12 

324 

20125 

13821 

13X13 

17275 

17611 

207.43 

16422 

0.0 

69.07 

4647 

60.19 

6320 

-0.1 

376 

70.41 

8221 

4048 

6632 

6X56 

77.59 

4057 

-02 

186.48 

13220 

17120 

18325 

-02 

1.71 

20080 

197J8 

13227 

17202 

19420 

20042 

15681 

0.1 

34024 

22B.13 

29673 

24523 

66 

124 

34620 

34680 

228.96 

297.10 

24623 

37092 

242.46 

-0.1 

25667 

172.70 

22324 

27826 

-67 

322 

26639 

25820 

17329 

22524 

28693 

28026 

17533 

-12 

144.06 

9694 

12524 

15029 

-12 

326 

143.49 

14824 

9069 

12606 

15X59 

155.79 

11033 

-12 

21921 

147.7H 

19128 

257 JO 

-66 

125 

228.46 

22260 

14921 

19401 

25828 

231 JS 

16X85 

ao 

184.07 

103.66 

13424 

13648 

-05 

1.78 

15726 

154 JB 

10X69 

13425 

137.11 

17056 

124J2 

-Z.1 

18324 

12326 

159.75 

18634 

-62 

428 

19677 

15721 

12525 

16X43 

18721 

214.96 

17032 

04 

182.65 

12229 

189.15 

16613 

64 

228 

185.42 

18226 

12242 

15824 

18642 

198.04 

176.95 

-1.6 

16324 

110.04 

142.50 

155.43 

-12 

229 

150.46 

16057 

111.68 

145.17 

15629 

17866 

14138 

-1.4 

20724 

13921 

16667 

21097 

-1.1 

142 

21423 

21058 

141.44 

18323 

21339 

22080 

155.82 

(LI 

164.76 

11028 

14326 

11619 

61 

125 

167.60 

164.95 

11679 

14X76 

115.12 

168.80 

134.79 

-07 

164.10 

110.41 

14229 

13124 

-67 

125 

16634 

165^47 

111.14 

14421 

13220 

17678 

14138 

02 

17924 

12660 

15618 

16227 

64 

266 

18202 

17822 

12617 

15523 

181.63 

192.73 

17537 

-14 

14697 

10023 

12920 

137.70 

-12 

235 

153.38 

15125 

10126 

131.91 

13928 

157.47 

12237 


World Ex. SC. Af. P11^ 172-72 

World Ex. Japan (1704) — „ 162.79 


-03 

-OS 

- 0.1 

-Ol3 

-0.4 


24&10 

16X20 

168.66 

169.49 

179.37 


16X63 

111.16 

113.50 

114.04 

120.69 


216.18 

14X95 

14X99 

147.68 

15629 


227.11 

134.68 

147,48 

14X86 

176.99 


-03 

-07 

- 0.1 

-OS 

-os 


2.61 
1.87 
2 M 
223 
2S8 


25X62 

16X42 

17X05 

17X18 

18X80 


249 JO 
16X53 
168-12 
17023 
18047 


167.44 

111.85 

113.59 

114£4 

12122 


21727 

145.13 

147.39 

14036 

15729 


227.75 

135.60 

147*4 

15020 

17727 


29621 

17X51 

175.58 

17X56 

19620 


18238 
142*1 
15322 
155 SO 
165.72 


particularly in the construc- 
tion materials and hanWng sec- 
tors. 

The SET index rose 7.22 to 
L356.Q2 in turnover of BtlObn. 

Siam Cement was the centre 
of attention after it reported 
107 per cent growth in 
consolidated net profit for the 
first quarter, adding Bt74 to 
Btl.054. 

KUALA LUMPUR rebounded 
after four straight days of 
losses to close broadly higher 
but any further advance was 
expected to be limited by a 
lack of foreign buying, brokers 
said. 

The composite inrimr closed 
up 9.79 at 997.05. 

SINGAPORE was firmer 
althoug h analysts commented 
that the market was In need of 
fresh inspiration from overseas 


markets. The Straits Times 
Industrials index closed 1244 
hi gher at 2^1520 in volume of 
96.71m shares. 

MANILA rebounded after a 
weak start on foreign demand 
for some blue chips, led by 
PLDT. The composite index 
jumped 37.86 to 2£17.07, after 
Wednesday's 24-point fell, in 
sharply hi gher volume of 2.7bn 
shares from Wednesday's 
1.42tm. PLDT put on 25 pesos 
to L920 pesos. 

SEOUL advanced amid 
renewed interest in primary 
blue chips and the composite 
stock index added 6.84 to 
950.76, above the widely-re- 
garded resistance level of 950. 

Blue chips accounted for 
about one third of 119 stocks 
which went limit up. Both 
Samsung Electronics and 


Posco. the steelmaker, went 

fimif. up, gaining WnnK ii dH and 

Won2,500 to Won67,400 and 
Wod 92,000 respec tiv ely. 

WELLINGTON was lower, 
reacting to volatility in over- 
seas markets but finding no 
local factors to spark interest 
The NZSE-40 capital index fell 
15.46 to 2.139.7L 

Carter Holt Harvey, the for- 
est products group, fell 7 cents 
to NZ$8.78 after' the strong 
run-up to Wednesday’s 
announcement of a 34 per cent 
rise in net profit, which fell 
short of some expectations. 

BOMBAY’S mood improved 
slightly after an ITC associate 
company, ITC Bhadrarhalam 
annou n ced plana for a bonus 
issue. The BSE 30-share index 
rose 33.67 to 3,738 as ITC 
improved Rs5 to Rs7l5. 


statically On the telematic sys- 
tem at LL23a The share sub- 
sequently picked up to finish 
L21 easier at Ll.329 as diplo- 
mats noted that the companies 
could still avoid a veto by 
adapting their plans. Montedi- 
son was confident that the 
plan could be rescued 

The Comit index dropped 
18.84, or 2.5 per cent, to 
7404)5, below the 750 support 
level, prompting expectations 
teat it was heading fur 720. 

Mr John Stewart at InferEn- 
ropa in Milan commented that 
domestic investors, unsettled 
by political developments, had 
become more selective after 
the euphoria which followed 
the general election. 

Fiat put in a firmer perfor- 
mances after recent fang amid 
continuing speculation that 
the g over nm ent was prepa r in g 
measures to .boost car sales. 
The shares rose L82 to L6.701 
as the company called for 
incentives along the lines of 
those already available else- 
where tn Europe. 

Stet added L53 to L5.484 and 
Sip was L25 higher at!A308- 

BCI fell L238 or 44 per cent 
to L5.105 in response to its 
plans to raise - L2,300bn 
through a - series of share 
issues. Credito Italiaholost 
L98 to L2.813 as investors^' 
braced themselves for a simi- 
lar exercise. 


PS 


IN THE WORLD’S LARGEST MARKETPLACE, 
THERE ARE NO TIME ZONES. 


The World Hd 6X El 73) 17324 -63 170.00 11429 14613 15082 -03 223 173.72 170.75 114 59 14082 15128 17827 155.17 15931 

CoDvrtrfa. The ftumra* Tto** Umaaa Oottrax. 9arte andOiml NOV/** S«a*nfcB liroed. 


1847 


flOt ^ 

SSB 



Berts that move the markets 
don't follow a dock, and they don't 
necessarily occur during regular 
trading hours. 

Bui financial managers who 
use the CME Interest rate, currency 
and stock index futures and options 
don’t need (o check a dock before 
trading. Because at the irarkft 


QjQ&ET Is a npstereri iradamfc. 


largest marketplace, CME regular 
trading hours and GLOBES’ trading 
hours combine to provide a trading 
day that spans virtually 24 hours 
That means our highly suc- 
cessful slock index market is the first 
to open each day, offering the ear- 
liest Opportunity to take or adjust a 
market position. It means the wridS 


most heavily traded contracts, 
Eurodollar fcnires and options, are 
accessible around the dock. And it 
means true prfce.disewery is pos- 
sible even in the wee small hours. 

The deepest liquidity, the great 
est open interest, (he longest hours. 
Three reasons the world comes to 
the woritfs largest marketplace. 


Pr> 


ft 





CHICAGO MERCANTILE EXCHANGE* 

The Exchange of Ideas* . 


i 






Jobs: Middle managers feel threatened by their new role as ‘willing helpers’ ■ Personnel directors choose psychometric testing 

Empowerment in Virgin territory 


H ow many manage- 
ment, employment 
and recruitment 
words are we 
expected to absorb before we 
throw away the dictionary of 
American business terms? 

Hardly a month goes by 
without another supposedly 
new idea embodied in a freshly 
coined word creeps stealthily 
out of the software like a 
tarantula out of a banana 
crate, arousing a mixture of 
terror and curiosity. 

The jargon has encroached 
steadily into the management 
schools, so much so that it has 
spawned an industry in expen- 
sive seminars held to explain 
what it aH means. ■ - 
Empowerment is one such 
concept that received the semi- 
nar treatment last week at an 
Economist conference in Lon- 
don. It has also been subjected 
to scrutiny by the Harhrldge 
Consulting Group; which has 
just produced a report called 
Empowerment : what organisa- 
tions really do. 

Harb ridge has attempt^ to 
discover what empowerment 
means and how it Is being 
adopted in the UK Most of the 
organisations it surveyed had 
reduced their employees in the 


last five years. In practice it 
found that empowerment often 
meant individuals being a«irafl 
to perform functions tradition- 
ally undertaken by manage- 
ment, one reason why most 
middle managers Questioned in 
the survey felt threatened by 

the irina 

In companies where the con- 
cept had bear widely adopted, 
says the Harb ridge report, the 
managerial role had to change 
to that of a “willing helper”. 
Managers not letting go was 
the most widely cited impedi- 
ment to its implementation. 

One of tha most tropor fs™* 
factors quoted by individuals 
expected to take more respon- 
sibility for decision making 
was a promise that their job 
would not be on the line if they 
made a mistake. 

Some companies, said the 
report, were employing empow- 
erment without realising it. 
This applied to Richard Bran- 
son's Virgin Atlantic Airways, 
according to Nick Potts, its 
personnel director. Be told the 
Economist seminar that 


empowerment “typically exists 
naturally with youth, vigour 
and smallness in organisa- 
tions'’. The company had 
shunned empire-builders or 
specialists in its early days. 
Creating empires and classic 
organisational structures, he 
said, were the biggest barriers 
to ‘empowerment 

As the business grew the 
company realised that staff, by 
default, had been given the 
freedom to make unit 

Influence company direction. 
"We learned that people who' 
decide and act, produce more 
profit than people who wait for 
instructions,” he said. 

The three youngest directors, 
he noted, all had arts back- 
grounds. Paul Griffiths, the 
commercial director, had a 
degree in music arid raced 
motorcycles, Steve Ridgeway, 
marketing director, was a boat- 
ing enthusiast. Potts himself 
used to be an opera singer. 

"We realised we had a lot of 
artists in all positions. This, 1 
suppose, is not surprising as 
creativity, flair and imagina- 


tion are very important in the 
Virgin culture," said Potts. 

He might have been over-eg- 
ging his point. What he didn’t 
say was that the board is 
loaded with experienced airline 
people and as Virgin itself 
admitted: “Griffiths was taken 
on for his 15 years airline expe- 
rience, not for his ability to 
play the fiddle.” 

The company began to look 
for people who had done 
“interesting things” or had 
career breaks. It sought out 
emotional people and looked 
for risk takers on the basis 

that “entrepreneurial business 
is huge gamble". 

Again this should have been 
qualified. Risk-taking attri- 
butes would not apply to flying 
staff, nor would they seem 
apparent in Nigel Primrose, 
the finance director, who is a 
chartered accountant. 

Potts argued that a gambling 
instinct was useful when try- 
ing to watiniiM revenue per 
seat on < fKghf The. gam- 
ble is when to release seats 
and at what price. Clearly 


there is no point in having the 
highest fores and no passen- 
gers or vice versa, a full plane 
where the ticket sales don't 
cover the costs.” 

Instead of expecting staff to 
use statistics to dictate deci- 
sions, the company preferred 
them to become “immersed in 
the job, build up this know- 
ledge through experience and 
gut fed, and then gamble on 
your instincts. 

“We have found these people 
make the best revenue manag- 
ers. We trust their judgements 
and let them make the calls." 

Rather fhqri just plugging 
gaps, recruitment was viewed 
strategically and undertaken 
by the best people in the com- 
pany, said Potts. Spotting and 
assessing, even “scavenging” 
for talent, he said, “is the most 
important thing you can do fin* 
a business - so you should 
invest a considerable amnnnt 
of time doing it”. 

Virgin is currently doing just 
that, recr u it i ng about 700 staff, 
mostly cabin crew, as it 
expands its route network. 


So what are personnel direc- 
tors doing to find the best peo- 
ple? The Institute of Personnel 
Management commissioned a 
Mori poll of 123 UK personnel 
directors to find out what 
recruitment methods they 
employed. 

The result shows that psy- 
chometric twting — the science 
of measuring abilities or per- 
sonality traits - has overtaken 
panel interviewing as the 
favourite selection technique 

of personnel directors. 

When asked which ones they 
used, among seven types of 
recruitment techniques, some 
105 of the directors questioned 
- the biggest response to any 
of the techniques - said they 
used psychometric testing. 

Panel interviewing, used by 
99 of than, was pushed into 
second place above meeting 

tha partner of I'ha a ppHramt , 

used by 34. Fourteen of the 
directors said they tested appli- 
cants with a problem calcu- 
lated to induce stress or sur- 
prise and two of them went In 


for graphology, the study of 
handwriting. None of them 
used cranial assessment or 
astrology, the two other tech- 
niques in the questionnaire. 

Asked to rate the success of 
the methods on a scale of 
nought to 10, the most popular 
rating for both panel inter- 
views and psychometric test- 
ing was seven, from just less 
than a third of respondents, 
although the testing just had 
the edge in popularity over 
interviews. 

Breaking down the responses 
into four sectors - industrial, 
financial, business and the 
public sector - panel inter- 
views were rated most highly 
among the public sector. 
Employers in the public sector 
also placed more store than 
any of the others on psycho- 
metric testing for achieving 
successful results. This is not 
so surprising testing has 
been long established in the 
public sector, particularly in 
the Civil Service. 

Of the 14 directors who used 
the stress/surprise technique 


in an interview, io of them 
gave it six, seven or eight out 
of 10. 

Industrial employers scored 
highest when asked to rate 
meeting the applicant's part- 
ner. This may surprise some 
who would question how much 
influence a wife, husband or 
partner should have on their 
other halfs job prospects. 

The ratings for graphology 
were statistically useless but 
intriguing none the less. Both 
respondents who used it were 
directors of financial services 
companies. One of them 
reported that it was not at all 
successful in finding good 
recruits and the other gave it a 
rating of five. 

The IPM is currently formu- 
lating a policy on graphology 
in recruitment. While it has 
yet to make a formal pro- 
nouncement, the signs are that 
it will come down against it 

Research carried out by the 
institute has failed to discover 
any evidence that It is an accu- 
rate predictor of someone's 
personality. This will be bad 
news for S G Warburg, the 
merchant bank, which has 
been using it for years. 

Richard Donkin 


US Investment 
Bank 


Corporate Finance 
Analysts 

Attractive Salary 
+ bonus -{-benefits 


Please contact Richard Pooley or 
Junina H arper mi 071-583 0073 day or 
0727-812036 (evenings and weekends) 
or write to ns at 16-18 New Bridge Street, 
London EC4V 6AU, fox 071-353 3908. 


Our client is one of the oldest investment banks in the United States 
with a long-standing presence in the international market place. 

Their well established London team has an impressive range of 
experience in cross border mergers and acquisitions, takeover bids, 
defences and equrty/debt issue. 

The foundations of this success are built on excellent client 
r elationship s which are maintained and developed by a dedicated 
and experienced ream of professionals. They are now looking to add 
to this team. 

The successful candidates wilL 

• Be between 23-27 years of age. 

• Be High calibre graduates (minimum 2d), with a professional/ 
hanking qualification. 

• Have the ability to practice and work on several projects and 
with different senior executives simultaneously. 

• Be an energetic self-starter. 

• Have a Hi gh level of commercial acumen and computer 
modelling skills. 

• Be fluent in one other major European language. 

You will be involved in all aspects of deal origination and execution. 
and be given early opportunities to demonstrate your obvious 
potential. 

This position offers excellent opportunities for career development 
and impressive rewards. 


BADENOCH 8^ CLARK 

recruitment specialists 


ft 

Banque Paribas 

Banque Paribas has a dominant presence in the international capital 
markets with principal offices in Paris, London, New York, Tokyo, 
Singapore and Frankfurt. Its four core activities comprise: Capital 
Markets, Corporate Banking, Advisory Services and Asset 
Managwnfflt. 


Based in Paris, a unique opportunity has arisen for a talented 
Financial Analyst to share in and contribute to the continuing 
success of the European Equities Fund Management Team which is 
pact of the Asset Management Group. 

Asset Management 
Division 

Working directly with Senior Management responsible for the UK 
market, this high profile role would involve: The analysis of UK 
stocks, conducting research, providing a direct input into invest- 
ment strategy and the maintenance of crucial database systems. 


The successful candidate should be able to offer the following: 

Financial Analyst 
Paris 

circa FF250,000 
+ benefits 

• Proven experience in the financial analysis of UK companies. 

• Ax least two years* experience until a leading bank, broker or 
securities house. 

• A good degree with same competence in accounting. 

• Strong computer literacy. 

• Good spoken French combined with impeccable written and 
spoken English. 

It is expected that the role would be highly suited to someone who is 
in their mid-twenties looking for thrir first serious career move into a 
challenging international environment. Career progression and 
quality of working environment are unrivalled. 

Please contact ZoC Idc on 071-583 0073 day 
or 081-749 6450 (evenings and weekends) 
or write to us at 16-18 New Bridge Street, 
London EC4V 6AU, fox-071 353 3908. 

BADENOCH 8^ CLARK 

recruitment specialists 



A NEW CAREER IN 
INVESTMENT MANAGEMENT 

The opportunity to become an Investment Analyst 
with a major pension fund institution. 


The company is responsible for the 
investment management of one of the 
largest pension funds in Britain. Its UK 
equity portfolio represents an important 
block of investment in British industry. 

In this appointment you will work closely 
with experienced senior fond managers. 

Ybu will be a member of a small team 
responsible for analysing companies in 
particular sectors of industry and commerce. 
You will be required to produce timely 
investment recommendations based on 
brokers research, your own independent 
analysis and direct communication with 
companies at a senior level of management. 

lb be a candidate you should be a 
graduate with professional experience in 


financial analysis. You may presently be 
employed as an investment analyst in fond 
management or broking, or alternatively, 
you could be a qualified accountant or 
banker seeking a new career challenge. 

You will be expected to study for 
membership of the Institute of Investment 
Management and Research. 

A fully competitive compensation 
package is offered and of course the 
chance to make a real impact in a major . 
investment institution. 7b apply, please 
write with full CV to John Sears and 
Associates, 2 Queen Anne's Gate 
Buildings, Dartmouth Street, London 
SW1H 9BP, Fax: 071-222 3445 or 
Telephone 071-222 7733. 



x m • Am v 


John Sears and Associates 

Executive Search & Selection in Investment Management 

a mama* of the <smcl> croup mmhb 

lUYTTiM Iran 


CITY 


DIRECTOR - HEAD OF CREDIT 

UK MERCHANT BANK - STRUCTURED FINANCE FOCUS 

COMPETITIVE PACKAGE 


• Unique opportunity with leading UK Merchant 
Bank, seeking to grow its structured finance 
business including acquisitlon/LBO financing, 
project finance and property deals. 

• Leading the credit function the role will involve 
working directly with structured finance specialists 
and adding value at all stages of deals. 

• Accountable tor the quality of the Bank’s loan 
portfolio, management of credit exposures and 
overseeing credit administration. Considerable 
business and career potential. 


• High calibre credit professional with experience 
of working on complex, structured financing 
transactions. Alternatively, a structured finance 
specialist with excellent credit skills seeking a new 
challenge. 

• Probably aged late 30s -early 40s, highly numerate 
graduate, analytical with an excellent credit training. 

• Energetic with sound commercial judgement and 
the ability to anticipate and resolve issues. 

Team player with high drive and the credibility to 
operate as a key Director within the Bank. 


Please apply la writing quoting Bell 742 
whfa FoH career and salary dcn&s ten 
James Roberts 
Vhttcbod Selection United 
43 M)cd Sued, Loodon W1M 7HF 
TdbOT] 637 8736 



FUND ADMINISTRATION 

LUXEMBOURG 

Our client is one of the largest fund management groups in the UK and has a fast 
growing fund administration office in Luxembourg. This office is now equipped 
with the latest in computerised fund accounting systems. 

They are looking to appoint an individual to strengthen the management of the 
investment accounting team. This role will include responsibility for staff 
development and ensuring that the full potential of the computer systems 
continues to be realised as the business grows and develops m new areas. The 
candidate should have relevant experience in investment administration, 
preferably with an accounting background. The job will demand high professional 
standards, good inter-personal skills and an ability to work to demanding 

deadlines. 

A competitive salary and benefits package wifi be offered including re-location 

allowance. ....... 

Please contact Elizabeth Williamson 

Cleary Court, 21-23 St. Swidun’s Lane Telephone 

London EC4N 8 AD 071-626 1161 

AwcW RioniinieirtC^iwuibmB 





Our cheat, MUB, Is responsible for providing private banking services to Ugh net worth clients throughout the world. 
Reporting to the Chief Credit Officer, a further credit professional Is to be added to the existing team to Implement 
centralised global credit and risk management polices and procedures. The successful applicant will be 
competitively remunerated Including a fuD benefits package. 


THE APPOINTMENT 

■ Key role in the audit approval process through evaluation and 
approval of credits and supporting collateral. 

■ Direct Involvement in dally administrative role oF department, 
supporting business development for Bank's London and 
worldwide offices. 

■ Provision of support to Chief Credit Officer In reviewing credit, 
collateral, procedural, administrative and product Issues. 

Please apply in writing with a full CV and salary details. 

quoting reference 1003S. to Susannah Truswell. 


THE REQUIREMENTS 

■ A graduate with a minimum of five years' background in credit and 
risk analysis, with a bank. Insurance company or rating agency. 

■ A sound understanding of financial markets and products, 
exposure to secured lending and experience of processing and 
reporting credit issues. 

■ Highly motivated team player with excellent Interpersonal and 
communication skills and the ability to thrive in a high 
pressure environment 

K/P Associates, Regent' Arcade House, 252 Regent Street 

London WIR5DA 


Fax 

071-626 9400 


SHEPHERD LITTLE 



K/F ASSOCIATES 

Selection & Search 








I 







n 


FINANCIAL TIMES FRIDAY MAY 27 1994 


TOP OPPORTUNITIES 

SENIOR POSITIONS IN GENERAL MANAGEMENT 


MIX, 

wlv 


Chief Executive 

London 

to £57,600 + perfoimance^dated payments 



The United Kingdom Passport Agency is responsible for the 
provision of passport services to British nationals in the UK. 
Established in 1991 as an Executive Agency of the Hook 
Office, it has since benefited from a programme of major 
improvements in cost efficiency and customer service, 
reflected in the award of a Charter Mark. John Hayzeiden 
CBE, the first Chief Executive of the Agency, is to retire in 
the summer of 1994 and we are seeking a successor with the 
management skills and vision to continue his work. 

With a headquarters in London, regional passport 
offices in Belfast, Glasgow, Liverpool London. Newport 
and Peterborough and a records unit at Hayes, the Agency 
employs about 1500 staff and generates an annual income 
of about £80 million. A recent review of the Agency's 
status and functions confirmed the need for it to remain 
under direct government control while paving the way for 
further improvements in the way it conducts its business. 

Key issues for the Agency include the need to 
sustain i m provement in the speed of service to those 
applying for passports; to increase public awareness of the 
services the Agency supplies; to review the sire, number 
and location of its offices; to progress towards the 
establishment of its financial regime as a trading fund, 
and to continue to provide for the highest standards of 
custamerservice through staff development 

You wffi be responsible to (he Home Secretary for 
the overall management of the Agency and for ensuring 
that its service and financial aims and objectives are met 
You w31 chair the Agency's Management Board and will 
attend meetings of the Advisory Board of officials and 
representatives of the private sector, whose function is 
to advise the Home Secretary on the Agency's plans 
and performance. 


You must be able to offer an impressive record in 
general management in either the private or public sector. 
Excellent personnel management skills will be particularly 
important in leading a network organization which 
depends far its success on the high quality of its staff, 
though you will also need experience in financial 
management - ideally with some exposure to government 
accounting. Well-developed interpersonal, communication 
and presentation skills will also be crucial in establishing 
and maintaining credibility in this high-profile role. 

This is a fixed-term appointment for three years 
with the possibility of extension. Your starting salary will 
depend upon the extent and quality of relevant experience 
you are able to bring to the post and will be between 
£39,365 and £57,612, including London Weighting 
allowance, with the opportunity to earn additional, 
performance-related payments. 

Far further details and an application form (to be 
returned by 17th June 1994), please write to Recruitment 
<Sc Assessment Services, AJencon Link, Basingstoke, 
Hampshire RG21 1JB, telephone Basingstoke (0256) 468551 
(24 hours) or fax (0256) 846374/846660. Please quote ref: 
B/2147. 

We welcome applications from candidates regardless of 
ethnic origin, religious belief, sex, sexual orientation or other 
indecent factor. You vntl not be ruled out on account of 
physical handicap or disability, provided that you can do the job 
satisfactorily. People with dkscdrilitks and those from ethnic 
minorities are currently under-represented and their 
appl ications are particularly welcome. 


Coopers 


Executive 

Resourcing 



A gfotoi force In the reinsurance nwitet texk|uart 0 red In 
Western Europe, is to set up a life reinsurance company M the 
UK. Ttftwffiiatetwansxis^c^bawMthepflnc^ 
misskinvriflbelosxpiotBxls^gnmffioppor&inffiesGndto 
Increase mortal shoe In a proilaMe manner. 

Our cflenf Is looking tor a Managing Director to bufld and 
run this raw company tram a base In London. He or she 
will formulate their own marketing and tinandcd strategies 
in consultation with ihe parent group and win recruit toek 
awn management and technical team. 


We would IB® to hear from managers Inthe Bfe 
reinsurance Industry who have a record of creating 
profitable business and nwnogfng a 
Terms will be flexible and generous wtfh toe opportunity to 
share In toe successful performance of toe company. 

Please send In strictest confidence .tun CV, including current 
remuneration, to Tim Latham, Coopers & Lybrand 
Executive Resourcing Ltd, 1 Embankment Ptace, London 
WC2N 6NH. quoting refTL1032 on ball envelope and 
tetter, or call him on 071 -213 51 65. 


TAKE PRECISE AIM 



By placjxo vocr: t-:t:cnc;n<i;xi 
AJjvt;ttTist:uE\T i.\ rut: Fixaxciai. 
Times yoc a hi: reach ixa the world's 
n usix ess co .v u i 'xi i y. 


Philip Wriilley 

Andrew Skarzynskt on 07L-K73 105 J. 


. TARGET 

I THE BEST 

for information on advrrtisin: 
in this section please call: 

07 1 -ft”. 1 ) ->35 1 

.Gareth -Jones on 071-87;; 3779 


BANKING FINANCE & GENERAL APPOINTMENTS 


FIXED INCOME TRADING 

Our client, a leading International Bank based on the Continent, Is looking to expand its bond trading team with the recruitment of two experienced 
traders for its Head Office operation. The Bank, with its strong capital base and prominent position in both domestic and international marker* has an 
impressive array of dienes. 

In line with its ongoing strategy of increasing marker penetration in die multi-currency fixed income markets, die following vacancies have arisen; 


USD/CanD TRADER 

The Job - to be responsible for die USD and CanD trading operations 
and to be equally adept in this context at both Government and 
Eurobond trading. 

The Candidate - in line with the above broad trading responsibility the ‘ 
chosen candidate is likely to be in the age range late 20s to mid 30s, 
possessing a minimum of five years' bond trading experience, coupled 
with a strong analytical background. At least some of this experience will 
have been gained from trading the USD and/or CanD Government 
markets. Fluency in at least one Continental European language is a pre- 
requisite. Reference: NAS 2 152 


EUROPEAN BONI> TRADER 

The Job - co assist in the bank's European multi-currency bond trading 
activities and to be equally adept in this context at both Government 
and Eurobond trading. 

The Candidate - is likely to be in the age . range late 20s to mid 30s, 
possessing a minimum of four years’ bond trading experience, coupled 
with a strong analytical background. Experience will have been gained in 
trading a m ini mum of two of the following currencies, ideally from both 
the Eurobond and Government bond perspectives: DM, DF1, FFr, Ecu. 
Fluency in at least one Continental European language is a pre-requisite. 

Reference: NAS 2153 


Both of the above positions provide highly competitive salary and benefits packages, including significant bonus potential. UK expatriate contracts may be 
provided where necessary. Future career prospects for the chosen individuals within this bank, which is one of the top twenty globally, are considerable. 


Cha pman 


Associates 


To apply, in strict confidence, please telephone or write to Neil Salt, 
quoting the appropriate reference number. 

hta nw t i oial Search and Selection 

Princes House, 36 Jermyn Street. London SWfY 6DT. 

Tel: 44-71-434 1319. Fax: 44-71-434 0635. 




Strategist 
German Equities 


V 


As traditional Private Bankers with headquarters in North Rhine- 
WestfaJia we rank amongst the most reputed financial institutions 
in Germany. 

The 'Strategist' we seek will summarise the extensive results .of 
our research department, which primarily covers the German 
market, into a well-defined equity investment strategy. He should 
be able to clearly define the strategy products in written and 
verbal form in German as well as in the English language. 

In this capacity the 'Strategist' maintains contact with our 
demanding national and international institutional clients. 
Furthermore, he participates in the decision-making of the 
investment committees of the Bank. Promotion to executive 
management of our research subsidiary is envisaged, for a 
younger candidate at a later stage. 

We expect extensive knowledge of economic and securities 
research and familiarity with modem portfolio theory as well as 
professional experience which could have been obtained either in 
the fields of research, portfolio management or institutional sales. 

If you are around 30 - 45 years old, are setting high intellectual 
standards for yourself, have a talent for marketing and are 
accustomed to very team-oriented work, we would be pleased to 
receive your application. Please contact our management 
consultant N. von Morozowicz of MF Partner Management 
Consultants GmbH, Sendlinger Str. 24, 80331 Miinchen, who is 
also available at 010.49.89.265090 to provide further information. 
Confidential handling of your application is guaranteed. 




r 


STRUCTURED FINANCE 

Senior Transactor £75,000 + bonus 

Major international banking group requires a highly 
innovative senior negotiator. The appointee will 
demonstrate consistently high levels of fee income 
generation from arranging complex, tax driven, large 
value cross-border transactions. 

Financial Engineer to £45,000 + bonus 
A leading intermediary wishes to appoint an ACA, 
aged 27-33, who has acquired excellent technical 
skills within structured /project or asset finance. 
Candidates should have exposure to sophisticated 
financial structures utilising capital market products. 

If you are interested in the above or other positions 
within the large unit finance sector ; please contact 
Keith Snow or Peter Haynes. 

Jonathan Wren Sc Co Ltd, 

Fi n a nci a l Recrui tm ent Consultants, 

No.1 New Street, London EC2M 4TP 
Tet 071-623 1266 F*C 071-626 5258 


ION ATMAN WREN LEASING 


SALES EXECUTIVE/EMERGING MARKETS 

A loading firm of international stockbrokers, based In the 
City of London, Is seeking to recruit a sales executive to join 
their rapidly expanding Emerging Markets division. 
Applicants, to addition to being degree qualified, will have a 
minimum of five years experience in Corporate 
Finance/Broking, significant local experience of the Bombay 
stock exchange and financial market and be able to 
converse fluently in both Hindi and English. Candidates will 
have exoeBent marketing skills and be able to demonstrate 
the drive and determination to succeed In this fast-moving 
and exciting market The salary and an attractive benefits 
package wifl be commensurate with the required skills and 
oqwrience. 

Applications should be submitted In writing, enclosing a 
ament CV, to: Box A2027, Financial Times, One Southwark 
Bridge, London SEi 9HL 


Central London c£35,000 package 

Our client is a long egtohli«h»fi prnwfa* flnanrinl wwnpany 

also administers a nuage of high value ^ complex family trusts. An 
opportunity exists to participate in future structured growth by 
developing the trust and estate administration function. 

Reporting to the Managing Director preferably from a banking background. 


and working closely with trustees, legal 
advisers and tax specialists, this 
demanding position will be responsible 
for all trust administration and the 
maintenance of computerised records to 
strict deadlines. It will be necessary to 
provide advice to both trustees and 
b enefici arie s , main tain financial control, 
and assist with administering estates. 

Applicants should be aged between 
30 and 40 who can demonstrate a successful 
track record in trust administration - 

Kidaona Impey 
Search A Selection Limited 
29 PaUMaJl, London SW1Y5LP 
Telephone: 071-821 0336 
Fax: 071-876 1116 

Wltawn Ganaasgt ttafeAaatria, Hnau Potaad, 
Meta-, SwHs-fmd, Osw* BapaMta ami SonUa 


Sound judgement, excellent communi- 
cation skills and the ability to delega te 
and motivate a small department, are 
conside r ed' essential qualifications for 
this demanding position. - - 
The remuneration package can be 
tailored to suit the successful candidate 
and could indude a company car. Thera 
is a non-contributory pension scheme 
and private health insurance and 
future progress will onty be Hznited by 
personal performance. 

Interested candidates should 
send a comprehensive CV, . 
including detxala af current 
remuneration, and a day time 
telephone number, aB of which 
will be treated in the strictest 
confidence, to Andrew Sales 
ECCA, quoting ref. no. 772. 


K!I)m A*' 
iMlT.Y 


J 




Venture Caphtal/Corporate Finance 
Executive 


Ambitious and Effective executive with at least 3 years Venture Capftal/Cwporate Finance 
experience required to join this small fast growing Corporate Finance Co. 

Carxfldate to be Director level on entry or ability to reach Director wfthin a 12 month period. 
Salary neg with opportunity for Equity interest within a reasonable period on basis of ability. 
Please write with CV to: 

FRiskx>, Hamilton House, 1 Temple Avenue. 

Victoria Embankment, London EC4Y OHA 


SALES & 
MARKETING 
❖ MANAGER/ 
SENIOR 
MANAGER 

The Group: 

* Small but expanding private 
cUeot financial services 
group, with pleasant offices 
in (be West End. 

The Person: 

* Pleasant and enjoys working 
with others 

* Organised in 1 ) pnn^hi.t 

* Some international experience. 

Middle East/GulT experience 

piddled but uotesrendaL 

* lnvcstiacDl/Privaic banking 
experience prefe med but not 


TbeTasIc 

• Repotting to (be board 

• Will be required to travel 
extensively lo the Arabian 
Gulf and build up dkm ln» 

• Give input and form part of 
the team. 

To apply, please write end send 
C u r riculum Vftec to: 
Joanna Machowska, 

47 B er k el e y Square, 
London W1X 5DB. 


SENIOR CORPORATE 
DEALER 

to £60,000 

A large International Bank wants to recruit an 
experienced corporate dealer. 

Youshouldhawasuiifteorutswxcstfidlrackrccordln 
the sales and marketing of Foreign Exchange and 
Money Market products to large corporates. Central 
Banks and pubBc entities. 

As a pmrnahtyyou should be highly setf motivated. a 
team player aid sdf disciplined This is a first dass 
opportunity for a corporate dealer looking to 

substantially Increase their client base and earnings 
potential with a major bant 

Call Tonj Sheppeard 


SMYTHS 127 ChaptiU, London RC2V6DH 

Tel; 071 6QQ 2802 Pax 071 726 4290 


DERIVATIVES INVESTMENT MANAGEMENT TEAM MANAGER 

An Uimtmn UmayifM Co-pay *Udh am —male o4 mme l 

uckafatna to acfafam top fiend ncami —da > Mmgrr IsoMidMU U* to— 
nliintnktmaBnIkBeltaM tnlhtlrigbwtpiafinrittiillnwt. 

Tta race — tSricnuad— way tawm <hg— la Qm Ktaae— wffl tag, 

■ upw ta— abuhi hml i— . ha dm and—aadwtaaiiif. 

a. -.■-f pnffmnn niiuiJLi I 

Linii-urof mw efrataa Mcgod toftMgt-Mld bnMtMbaaUpi 

opportunity far iw-Uw praeavba speed nalvj tab* HUmnaaMUltv 

iMilMmanfaAntaalMMBspMimgiaawBLiiribttesmterffavMMAuiMA.' 

It wan minify hrAIIngli ihn rnm[— j 

Saitabbcta&blMdMuU tefij *46 carraatCV.to; Bax No. Aron, FbaMWTtn— . 
t SoottnriA Bridge, London Gil (ML 


L 




FINANCIAL TIMES FRIDAY MAY 27 1994 



*etor 


v . 


■ r- i 


* ^ »* 


rl.Vvftllpjj-. 
^ pr,, ' « -T!«pirir: 

i ‘*- • *» >** ***;« l-35 

' * * *'*■«*« £**• 


European Brokers 


Due to a European wide expansion, our client, one of the largest international money and currency broking 
companies and a global player in world financial markets, is seeking the following professionals for 
its Continental offices. These offices are involved in broking multi-products to a European client base. 



Interest Rate Swaps Broker 

An IRS broker with at least 2-3 years experience in executing a range of 
swap transactions to an established client base to include European ban k 
and financial institutions. European lan guages would be an advantage. 

Forward Forex Broker 

Active broker or possibly a forward dealer with a good European customer 
base dealing in a variety of European currencies. Languages preferred 

Euro deposits/FRA Broker 

Established broker with experience of interest rah* and money market 
hedging instruments to an extensive Pan-European client base. 
Languages preferred. 

Amsterdam 

Interest Rate Swaps Broker : 

IRS broker with solid marketing and derivatives experience executing 
business to primarily regional banks and financial institutions. 
Knowledge of Dutch is essential. 


Frankfurt 

Eurodepos, FRA/IRS Broker 

Established broker with experience of in terest rate and money market 
hedging instruments to an extensive German client base. German 
language is a prerequisite. 

Stockholm 

Bond Broker 

Specialist bond broker to the Scandinavian bond market entertaining 
a Pan-Scandinavian customer base. Scandic languages arejessentiaL 

These are outstanding opportunities for self-motivated brokers who 
can demonstrate a successful track record. Candidates will be given 
considerable latitude in the development of their careers. These 
positions offer highly competitive remuneration packages. 

Prra confidential discussion please contact David Reynolds or Nigel 
Haworth. 7fe£ 071-236 2400, Fax: 071-236 0316 or apply in writing to 
She/field-Haworth Limited, Prince Rupert House, 64 Queen Street, 
London EC4R1AD. 


Consultants in Search and Selection 


Assistant Directors 

Proj eat Advisory Group 


London Based 

Haznbros Bank seeks two experienced Project 
Advisors to join its highly successful Project 
Advisory Group. 

Successful candidates will have significant 
experience in originating and executing project/ 
corporate advisory work in a variety of sectors and 
locations. Drive, commitment, perseverance, team 
work and a thorough understanding of financial 
structuring techniques are key requirements. 
Numeracy, presentation and computer skills are 
assumed. 

Competitive remuneration packages are available 
and will reflect the successful applicants' age, 
experience and qualifications 


Competitive salary + benefits 

Oor Project Advisory Group is involved in two 
major areas of work: 

□ International power, waste and water projects, 
fossil fuel and associated infrastructure 
projects; 

□ UK projects, particularly road, rail and health, 
generated under the Private Finance Initiative. 

Our client base includes Government and private 
sector entities. 

To apply, please write, enclosing a detailed CV and 
indicating your current remuneration package, to 
Dr. P. Remington, Director, Project Advisory Group, 
Hambros Bank limited, 41 Tbwer Hill, 

London EC3N4HA. 


HAMBROS BANK LIMITED 


EMERGING UARIETS 



SEARCH k SELECTION 


EMERGING MARKETS FIXED INCOME ECONOMIST RESEARCH ANALYSIS 


LONDON -NEW YORK 

B leat, a leading Banking house, wishes to appoint an Economist with at hast ihree 
rs experience of coantry acalyss, preferably in emerging markets, to wod: with a 
uccessMcmctpng markets team. The ideal candidate will have a degree in 
ec on omics, a strong quantitative background, and expe rie nce of fixed income 
analysis. 

The appointee win, in conjunction rwfli ibe mden and portfolio managers.be 
responsible for 

Country aadysis and the production of itsearcb material from the perspective of 
identifying investment oppoturafiet in debt uutnuaeiiu. 

ariysis of global/cconomic raids affecting emerging markets fixed income 
securities. 

Conyaraovc analysis and atritrage yVniffiratioo betsreen various emerging msskm securities. 

Candidates must be sdf-starten with a keen interest in the emerging mmfeca and have the 
abflily to de m o n s trate rirdkari ot^ slaDs. cn U t pre n cnria l flair and a 

strong desire for success. 

An attractive remuneration package mil be offered to the right person. If you 
believe that you can offer oor Cbem these qualities, please send your CV in // / / •/ j |Bfc 

complete confidence to: If 


I w •! I m, I m:r 

A : l \l.i%. 
\ I'M- . 
I . I D*l < 


:: ..| * .i ! M 
■ I J'44 I il 


M : \ 51; i 
1- I:, ■ n : 1 1 1 • . i . : ; J 


WA 


COMMODITY & TRADE FINANCE 

SENIOR MANAGER 


Salary circa £50,000 

Our efient, a major banking institution with 
global presence, has retained us to identify a 
Departmental Head tor their rapidly expanding 
Commodity and Trade Finance Unit based in 
London. 

The successful candidate will assume overall 
day to day management of an roosting team, 
with responsibility for marketing to a substantial 
portfolio of relationship accounts and 
developing new business in both the UK and 
Europe. 


+ Banking Benefits 

Candidates must be able to demonstrate: 

# A successful track record in the marketing of 
wide ranging trade finance related products. 

# Knowledge and expertise in the form of 
traditional and innovative structured 
solutions to clients 1 trade finance needs. 

• Experience in the promotion of cross border 
trade finance business. 

• Excellent communicative and interpersonal 
skills. 


This is a challenging position and requires a motivated and ambitious individual, prepared to 
accept accountability in return for a remuneration package commensurate with foe inherent 
responsibilities. 

To discuss this exceptional opportunity telephone David Williams on 
071-623 9493 (Fax: 071-626 1263) or send your CV, In strictest confidence to: 


Williams Wingfield Ltd, Search & Selection Specialists 
Astral House, 125-129 Middlesex Street, London El 7JF 


\\ i I I i a m s 

\\Tn - f i e I (I 



Private Client Stockbrokers 

Opportunity with a leading market player 




North West 

Our client is a well established City based stockbroking 
firm enjoying a long-standing reputation arid tradition of 
serving private dients through its network of offices. The 
parent company is a blue-chip and successful financial 
institution which has given strong support to the 
business. 

This has enabled our client to expand and make 
significant investment in technology in order to improve 
the qualify of service to clients and minimise the impact 
on administration as the market moves to rolling 
settlement The firm now wishes to develop further its 
business in the North West as part of its plans to take full 
advantage of the investment it has made. 

We are looking to attract individuals with varying levels 
of experience who are - or are capable of 
becoming — significant revenue earners. ■ 

Ideally, candidates will have a strong [ /pj yr 

track record as successful private dient I ^JT-Ul 

stockbrokers with a network of dients SN 


Excellent Package 

and contacts within the region. They will also have the 
ability to develop long-term relationships through sound 
judgement and effident service, aided by the firm' s 
research and systems. 

Age is not a materia] factor, but candidates must be 
enthusiastic, dedicated and committed stockbrokers with 
relevant regional contacts. Personal qualities must 
indude determination and energy and foe ability to 
inspire confidence in both colleagues and clients. 

The remuneration package will comprise foe usual 
executive benefits, including a substantial performance 
related bonus, and will not be a limiting factor for 
outstanding candidates. 




Please send a full CV in confidence to 
GKRS at the address below, quoting 
reference number 93347N on both 
letter and envelope, and including 
details of current remuneration- 


■'!,< l/f A 




SEARCH & SELECTION 

PARK HOUSE. 6 KLLL2NGBECK DRIVE. YORK ROAD, LEEDS LS 14 6UF TEL: 0532 484849 . 
■ A GKJR Group Company 




FUTURES & OPTIONS - MADRID 

• A challenging opportunity has arisen to service English speaking international institutional dients from 
Vr ; : Madrid for a globally based Futures & Options House. 

& This position requires the skills of a bilingual Spanish speaker, with English as the mother tongue, who is 
' U, conversant with servicing an international client base covering the full product spectrum. You will have a 
$' -} minimum of three years experience of Financial Futures & Options Sales and be able to demonstrate 
ii' supervisory skills coupled with sales and motivational abilities. 

.3rl Our client is committed to the further development of ME FF for its international customer base, as well as 
providing worldwide access to other exchange traded contracts for its domestic Spanish dients. 

{ £7 The salary will be market competitive and will reflect your experience to date, offering an attractive 
^.bonus participation. 

2" ^interested individuals with the relevant skills should contact Oliver Wells enclosing a full CV to the 
address below: 

Michelangelo Associates, International Search and Selection, 36 Whitefriars Street, London SC4Y 8BH. 
rvucneiangeio assoch Tel: 071-936 2857, Fax: 071-583 6531 


Derivatives Traders 


Morgan Grenfell has one of the largest treasury operations of the London merchant 
banks and an Off-Balance Sheet Trading Team which has established a leading 
position in the derivatives markets. 

The Team provides an environment which is both intellectually demanding and 
stimulating, where initiative and the development of your own ideas is actively 
encouraged and strongly supported. It is an area where, in common with aS of our 
operations, talent is quickly recognised and rewarded. 

We are now seeking to expand the Team by recruiting several derivatives traders 
whose principal responsibilities will indude the formulation of trading strategics 
and the day-co-day management of trading positions. 

Applications are invited from candidates who: 

• are graduates with at least two years’ relevant experience 

• have a proven trading record, preferably In derivatives. 

Numeracy and computer literacy are essential for these positions, one of which 
involves currency options. 

A generous remuneration and benefits package for these challenging roles will be 
available, commensurate with candidates’ experience and qualifications. 

Applicants Interested in these exciting opportunities should send a full CV. to 
Emma Gray, Morgan Grenfell St Co. Limited, 23 Great Winchester Street, 
London EC2P2AX. 


Export Finance 


ECGD 


Morgan Grenfell is one of die world’s leading arrangers of export credits with a 
particular specialisation In raulti-sourced export credits. We have a strong track 
record both as arrangers and innovators in export finance. 

Our team of executives is involved in the arrangement of export credits from the 
UK, leafy. USA, Spain and Scandinavia. We now propose to expand the team and seek 
co recruit a degree educated candidate who can offer: 

• a minim um of three years’ experience in medium-term export finance 

• experience of implementation of ECGD transactions 
.• willingness to travel and work on assignments abroad 

• contacts with UK clients. 

The attractive remuneration and benefits package will be that expected of a major 
organisation, commensurate with the candidates experience and qualifications. 

Applicants interested in this excellent opportunity should send a full CV. to 
Emma Gray, Morgan Grenfell & Co. Limited, 23 Great Winchester Street, 
London EC2P2AX. 


MORGAN 

GRENFELL 


Morgan Grenfell 
N Co. I muled 
2 > ( .rent Winchester 
Si reel 

London LC-R 2 \\ 


MORGAN 

GRENFELL 


Morgan Grenfell 
N Co. l imited 
2 T (n eat Wincln-ster 
Street 

London L.C2P 2 \\ 







IV 






FINANCIAL TIMES FRIDAY MAY 27 1994 


Senior Forfaiting Manager 


International Bank Group 

Competitive Salary + Bank Benefits 

Opportunity for experienced forfaiting specialist to build 
trading capability for active international trade finance unit. 


City 


THE COMPANY 

♦ Well established, UK based, international 
banking group. 

♦ Extensive network of branches. Strong in 
developing markets. 

♦ High profile international trade finance and 
forfaiting team with growing commitment to 
forfaiting. 

4b- Busy, ambitious and profitable unit. 

THE POSITION 

♦ Key role hi busy, pressurised Beam. Generate business 

jmd dcsls ii y/iiiftTftrh'iflfy market 

contacts. 

♦ Pursue high quality, transaction driven f orfaiting deals. 

Please send luO cv, stating salary, ref N2065, 


NB SELECTION LTD 

* BNB Resources pic corapmj 


-4b Play full part in small unfa. Work flexibly in that 
structure. 

QUALIFICATIONS 

♦ Ideal candidates will be front line traders with strong 
market contacts and at least S years relevant 
experience. 

♦ Banking background with specialist expertise in 
braking and trading interest rate and currency 
positions in f o r faitin g market. 

Business developer, astute trader, with excellent 
commercial judgement. Team player. Rohirst 


to NBS, 54 Jermyn Street, London SWIY 6 LX 




LONDON 071 493 6392 
Aberdeen 0224 638080 -Binmoghan] 021 2334656 
Bristol 0Z72 291 1 42 • E&ibtirgh CO I 229 2250 
GtugowM! 204 4334 • Leeds QS32 453830 
Manchester 0625 559953 • Sough 0753 819227 


Investment Management House 

To £50,000 + Benefits 

Drive marketing strategy and implementation for the important 
Investment Trust division of this major investment management business. 


City 


THE COMPANY 

♦ Leading independent global asset management 
business. UK based. 

♦ Investment Trust division is significant, growing and 
high profile. 

♦ Ambitious plans to develop already strong market 
position for Investment Trust activity. 

THE POSITION 

4b Create total marketing strategy. Implement through 
marketing services team. 

4b Ensure highest standards of product and service. Work 
at board level internally and with clients. Analyse, 
review, rec o m m end. 


^Deputise for MD when necessary. Make broad 
contribution to development of business. 
QUALIFICATIONS 

♦ Graduate, possibly with MBA. At least five years in 
dynamic marketing role. Strong trade record. 

♦ Experience of strategic planning, project management 
and product development. Relevant financial services 
knowledge preferred. 

4b Superb pnaenation/communicapon skills. Persuasive, 

. mature, energetic, highly motivated team player. 


Please send fuU cv, staling salary, ref N2059, to NBS, 54 Jermyn Street, London SWIY.6LX 



NB SELECTION LTD 
a BNB Resources pie company 



LONDON 071 4936392 
Aberdeen 0224 638060 ■ Binmngham 021 2334656 
Bnstd 0272 29 1 142 -Edinburgh 03 1 2292250 
GLuguw (Ml 204 4334 • Leeds 0532 453830 
Manchester 062S 539953 - Slough 0753 *1 9227 


CJA 


RECRUITMENT CONSULTANTS GROUP 

2 London Wall Buildings, London Wall, London EC2M 5PP 
Tel: 071-588 3588 or 071-588 3576 
Fax No. 071-256 8501 




Opportunity to develop a broad ranging compliance role within an innovative environment 

> COMPLIANCE OFFICER 


£32,000 - £45,000 + car allowance, 
CITY bonus, share purchase & mortgage 

EXPANDING GLOBAL PRIVATE BANKING ARM OF MAJOR INTERNATIONAL BANKING GROUP 

We invite applications from candidates, probably aged 304-, graduates or equivalent, who are likely to be 
professionally qualified and who must have had at least 3 years’ hands-on compliance experience with an IMRO 
member company engaged in private client investment management SFA experience is highly desirable. As the 
selected candidate you will be responsible for advising management and staff on all relevant compliance and 
regulatory issues; monitoring, development and implementation of procedures including policy and procedures 
manuals; approval of advertising and promotional material; training as well as 'money laundering' reporting officer 
activities where appropriate. Essential qualities are seif-confidence, flexibility, a commercial approach plus the 
ability to work effectively as part of a small team working closely together. Initial salary negotiable £32,000 - £45,000 
plus £5,000 car allowance, bonus, excellent share purchase scheme, mortgage subsidy and other excellent 
banking benefits. 

Applications in strict confidence, quoting ref. C025432/FT, will be forwarded to our client unless you list companies 
to which they should not be sent in a covering letter marked for the attention of the Security Manager: CJRA. 


Chalmers University of Technology 

School of Technology Management and Economics 

Professor in Industrial Management and 

Qualify Assurance 

There are 10 chairs at the School of Technology Management and Economics including the new 
chair in Industrial management and Quality Assurance. The holder of the chair is expected to 
conduct research and to teach undergraduate as well as graduate courses. The faculty is expected 
to develop a funded research program in this field with special emphasis on quality management 
The potential for funding is good. 

Application 

The application should be addressed to the Rector, Ch aimer University of Technology, S-412 96 
Gothenburg, Sweden. It should include a complete curriculum vitae and a short statement about 
scientific and educational achievements. The statement should highlight relevant studies and 
results. Special attention will be given to demonstrated leadership ability and willingness to carry 
out cooperative work. The 10 most pertinent scientific publications should be provided. 

Four copies of the application documents should be mailed before June 9, 1994. For further 
information contact Professor Hans Bjoernson, Dean, phone +46 31-772 2494, fax +46 31-772 
2497 or email hansbj @mot. chalmers.se. 

From July 1st 1994 Chalmers University of Technology will be organised as a foundation. 


INTERNAL AUDITOR - TREASURY 

€£35,000 +- Banking Benefits 

Our client, a major international bank, is seeking to strengthen their audit 
function by the addition of a treasury specialist auditor. The role is designed 
to evaluate the adequacy of controls within the financial markets operations 
of the bank. This will require knowledge of derivative products, risk 
management techniques and risk control procedures within a treasury 
environment Candidates must be qualified accountants, who a re able to 
demonstrate relevant treasury experience, coupled with strong analytical, 
communication and presentation skills. 

Interested applicants should send their cos to Helen Higket 


Jonathan Wren & Co. Limited, Financial Recruitment Consultants 
No. 1 New Street, London EC2M 4TP TeL 071-623 1266 Fax. 071-426 5259 


Assistant Fund Manager 

International Investment Trust 


c.£40,000 Package 


Central London 


Exceptional opportunity for a talented professional to assist in the management 
of the listed investment portfolio for this prestigious investment trust. 


THE COMPANY 

♦ Renowned business. Successful record of investment 
and profitability. 

♦ Active in the UK, Continental Europe and the US. 

♦ Large investment portfolio comprises unlisted and 
listed securities. 

THE POSITION 

♦ Focus on listed portfolio of mainly UK equities. 

♦ Monitor current holdings, analyse potential deals and 
make investment recommendations. 

♦ Increased responsibility for portfolio management with 
experience. Work with small, incenri vised team. 


QUALIFICATIONS 

♦ Bright graduate, probably aged 28-32. Sound 
knowledge of UK equity market and minimum S 

years relevant background. 

♦ Outstanding analytical skills, excellent communicator, 
ambitious, rigorous and highly numerate. 

♦ Self-motivated, enthusiastic, mature, with proven good 
judgement. Eager to develop career further in blue 
chip environment 


Please send ftifl cv, stating salary, ref N2056, to NBS, 54 jermyn Street, London SWIY6LX 


LONDON 071 493 6992 
Aberdeen 0224 638080 * Birmingham 021 2334656 



Bmid 0272 291 142 ‘Edinburgh 031 2292250 
Qasgorr 041 2044334 - Lada 0532 453830 
Manchester 062 539953 • Slough 0753 819Z27 


Futures Trader 


Superb Softs And Grains Start-up Opportunity 


Central London 

Package c.£60,000 + car + BUPA 

This well-established UK trading house is seeking a self- 
motivated, highly self-confident generalist technical 
Trader to play a major role in the house's diversification 
into fund management and funded business. 

Reporting to the Trading Manager and working in a small 
close-knit team, you will be responsible for carrying out 
trading decisions, market analysis and reporting, and the 
initiation and development of new concepts including 


options, spreading, hedging, and portfolio analysis. 

This is an ideal next career step for a PC-literate Trader, 
aged up to 30. whose competent technical approach to 
markets has been developed during at least three years' 
trading experience which preferably includes two years 
of discretionary trading. Although a background in Softs 
and Grains is preferred, exposure to precious metals, 
interest rates and currencies would be of great interest. 

A knowledge of German would be an advantage. 

To apply, please send a full cv to David Walider, 

Ref: 6194/DW/FT, PA Consulting Group, 

123 Buckingham Palace Road, London SW1 W 9SR_ 


Tl\ Consulting 
Jurm. Group 


til Group 

Creating Business Advantage 

Escnuivr Rocnritmcni ■ llorattn Remurec C wm ri mcy ■ Ad wanting a 


Capitol 


Financial Services 


London 


£28,000 + benefits 


setbeo 

Capital Markets Limited 

International Bond Sales 


We are looking for two salespeople to join a highly skilled team of advisors. Candid a tes 
should preferably be graduates with a minimum of five years experience dealing 
successfully with institutional or corporate clients. 

We are also seeking a trainee who has some experience gained in this area. 

Candidates for these positions should send a detailed CV to: 

Richard Eagle - Managing Director 
478/480 Salisbury House, London Wall, London EC2M 5QQ 

The LonclooStotfc Exchange and The International &xgrtMcaM»ifcew A *ip gi « tw»i 


KPMG Peat Marwick is one ol I he world's leading 
accountancy and management consultancy firms. 

The firm is synonymous with quality and professtonafism. 
The practice enjoys a particularly strong reputation In 
the financial sector and is looking far a qualified 
accountant to Join the group. 

Vou will have at least one year's post qualification 
experience and whilst knowledge of bank auditing 
would be an advantage it is not essential. You must be 
bJ-Hngual and fluent in both Engish and Croatian/ 
Slovenian wtth strong presentation and communication 
skills. You would also be expected to work overseas 
for extended periods ol time, 

Candidates interested in the position should write to 
Jeanette Dunworth, Human Resources Manager, 

KPMG Peat Marwick, 1-2 Dorset Rise. Biackfriars. 

London EC4Y 8AE. enclosing full career and salary details. 


Peat Marwick 


Bond Options Broker 

An inlenmxxul broking house wishes to reenrit an experienced Bond 
Options broker to develop and head- up its Band Options desk. Hc/cbe 
shook! have experience of the product, and be able to deonnstnle an 
excellent trade record, a thorough understanding of the market, and good 
skills. Previous experience of managing an Options Desk is 

desirable. 

Application, r ndodmg fall details of career to date and current earnings, 
shou l d be sent tor Box A2041, Financial Tines, One Southwark Bridge, 
London SEI9HL 


Providence Capitol is one of the fastest growing fi nanoal-senrtCes - 
groups in the UK. Over the past s.everryr^ai^nsaet^TimtjT^r 
management have grown tenfold and are. 
billion. : 

Providence Capitol Portfolio Managers, the In vestfneht amr 6 fihe > 
group, has a stable, committed team of i nvestmen t professSonals. 
and has delivered superior Investment performance ferits clients 
over several years. j 

Research Manager 

i . . . ! m • . 

We wish to recruit a quantitatively based researcher tp menage , 
the company's investment research. The role will include the i 
development of quantitative models, undertaking intemjatiDnat ; 
investment research and the management of the; team's. ; 
resources. ij:?' 

The successful candidate will be highly numerate ancf likely to ■ 
have general equity research experience within a computer-based ; 
environment ' t: \.l 

Each member of our team is seif-motivated, energetic and 
committed to standards of Investment excellence. We .&e offering j 
a competitive remuneration package. ‘ 

To apply for the position, please write, enclosing a foil CV,<t6r 


Carole Judd, General Manager ; • : '• } \ y- - j J 
Providence Capitol Portfolio Manage*? XJjTiitpd - 
2 Bartley Way, Hook, Basingstoke, Hampshire 
RG27 9XA o 
















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FINANCIAL TIMES FRIDAY MAY 27 1994 



UK INSTITUTIONAL FUNDS 

Rothschild Asset Management Limited manages funds for UK and international 
clients, both institutional and private, and is part of a global network within the 
Rothschild Group. 

The continuing expansion of RAM's UK institutional fond mamigfn i ffn activities 
has created an opportunity to augment the company's research capability through tbe 
appointment of an additional Investment analyst 

Operating as an integral pert of the UK institutional hinds tbe successful 
candidate will assume responsibility for a designated portfolio spanning several 
sectors, and will provide high-quality research and investment advice to firnd 

Candidates most have a good degree and either a minimum of two years’ 
analytical experience in a major investing institution plus, preferably, an HMR 
qualification, or a professional accounting qualification and a strong interest in 
financial markets (in which case, training will be provided as appropriate). A team- 
focused approach and excellent interpersonal skills are ess en ti al as the role will entail 
exposure to tbe m arke t and, occasionally, the client base in addition to dose ifa»«*n 
with interna] colleagues. 

The post carries a competitive starting salary plus a range of banking benefits, and 
the potential for career development. 

In the first instance, please send your full curriculum vitae, in the strictest 
confidence, to Tracy Phillips, Rothschild Asset Management Limited, Five Arrows 
House, St Swithm’s Lane, London EC4N SNR. 



MARKETING 
MANAGERS 
to £70,000 + Benefits 


RISK/CREDIT 
ANALYSTS 
to £40,000 + Benefits 


1994 has brought to Jonathan Wren Executive a wide range of exclusive 
assignments from major client banks, who require experienced marketing 
managers and analysts who axe ready for that vital next career move. We are 
especially interested in candidateswho can demcxnstrate particular expe rience 
and skills in the following: 


Marketing 

* UK /European Corporates 

* Property Finance 

* Eastern Europe 

* Utilities 

* Scandinavian /Nordic 


Analywia 

* Corporate Finance Analysis 
with Financial Modelling 
skills 

* Treasury Products _ 

* Derivatives 


Please contact Michele MacPheraon for further information on 071-433-1266 

Jonathan Wrwi fc fn T.imitii, Bnmfial Bwnrihiimit rnra mllantil 

No- 1 New Street, London EC2M 4TP Telephone 071-423 1266 Facsimile 071-626 5259 


JONATHAN WREN EXECUTIVE 


r EUROPEAN SALES AND 

MARKETING EXECUTIVE 

City Attractive Package 

Thornton specialises in Asian Equity investment management and seeks a European sales 
and marketing executive to join an established team. 

Responsibilities include sales of all Thornton products and assisting in the development and 
launch of new financial products for the European market 

The successful candidate will have worked within tbe fund mana g canent/stoclhroldng 
industry for at least 2 years, either in a similar role or as a stockbroker, analyst or fund 
manager- Previous experience of emerging markets, especially Asia and La ti n America, is 
desirable. The ability to travel frequently and have at least one other European language is 
essential. 

The compensation package includes a competitive salary, dependent upon previous 
experience, non-contributory pension, medical insurance and pe rma n e n t health ins u ran ce. 

Please write in confidence with full carccrfcnd salary details to IPB | ' 

Mrs L Merry, Personnel Officer, . I gflyB I 

Thornton Management Ltd, Lt- t I 

^wan House, 33 Queen Street, London EC4R 1AX. THORNTON A 


FINANCIAL TIMES 

London ■ nuns - nuvwurr ■ niw vomc ■ tokto 


field sales representative 

CLASSIFIED ADVERTISEMENT DEPARTMENT 

Salary negotiable phis benefits 

lie Financial Times is a highly respected international newspaper with a 
TfttrthYn gained from the quality and integrity of its editorial coverage. 

The Advertisement Department has proved hugely successful in many 

areas including Appointments. Business opportunities. Residential and 
Commercial Probity, and Travel and Leisure. As part of our business expansion 
: plans we are now seeking a talented individual educated to at least A level 
with a minimum of nine mouths experience in a publishing field sales 
environment, to work in the Classified advertisement department. 

Hus will be an extremely challenging position as it is a finraously competitive 
mark^Sra. Therefore the successful candidate must be highly poised, ca^le 
OfwSgunder pressure, able to effectively overcome objections, possess 
SotoeDfe dbmmunication skills and be able to work as part of a team. 

witj, cv and covering letter to explain why you should be the 


[candidate to; 


flag;- .-st! 

IrNtiSI 


iuuaw iw. 

Claire Broughton,Class^iedAdvertis^tent Manage*} 

octal Times, Number One Southwark Bridge, London SET 


FINANCIAL 

ANALYST/ 

SPREADSHEET 

MODELLER 

W.ENDLOGOTON 

£20-25k + Bonus : 

An entrepreneurial 
structured finance 
group is looking to 
recruit a financial 
analyst/ spreadsheet 
modeller. The ideal 
candidate will be a 
graduate in their 
early to mid 20’s, 
computer literate, 
commercial acumen 
with tax and leasing 
experience. 

Please send C.V to: 
BaxA2032, 
Financial Tones, 

One Southwark Bridge, 
London SE1 9HL 


STOCKBROKER 

Independent and recently 
established London 
firm requires young 
qualified dealer/ 
market-maker - 
must be SFA general 
representative. 

Send detailed CV. 

to Box A2047, 
Financial Times, 
One Southwark Bridge, 
London SE1 9HL 


SSflOfl MTBRDUnOHAL fWANCE IMA 
GERMAN BASE Strong Information 
system* seep. Reap, far aeag, buna A 
mumping A cum Uk radon of Information 
fly tem WwMwIde. Goman bam. Major 
UK metflcal product* company. Huont 
Gofman/EnflUnh. 200.000 Ml. C.V. to 
ExMHithm Rserultar. 15840 Ventura 
Blvd. *838. Enolno, CA 91488 or 
FAX 818881-8008. 

EUROPEAN SALES MANAGER US tamd 
metflcal/dontal manufacturer seeks 
modutead nwifcgm fadMteal to swum* 
nnprwnMSy far rate* h Funptm irarttri 
Reqtdraminte: Prevail track record, Self 
starter, Excellent commuilcailon state*. 
Computer proficient. Prior Industry 
experience haipM but not reqpfcad, Satiny 
open. Write in conMcnoe to Box A204& 
Financial tomb, One Gouttmerk Bridge, 
London SE1 9HL 


HEAD OF OPERATIONS 


C£50K + car + benefits 


City 


With £30 billion under management Legal & General Investment Management is one of 
the U.K/s leading institutional investors. Continuing success has led to tbe creation of 
this new role. 

As Head of Operations you will be expected to gp and further develop our portfolio 

administration to meet increasing business growth. You will be responsible for the 
delivery of all administration, accounting and reporting services to satisfy demanding 
customer expectations and regulatory requirements. 

In order to succeed in this drallenging envinxunent, you should have at least 10 years' relevant 
experience with a leading player in investment management. Yctu wifl need to be a “hands on" 
person who combines sound technical knowledge with strong leadership and management 
skills. Most importantly you will have tbe presence and authority to gain tbe confi d e n c e of your 
own management team as well as senior directors throughout the business. 

For an experienced operations professional seeking a new challenge this will be the ideal 
environment in which to develop and implement your own ideas within a 
successful and growing company. 


If you feel you have the business experience and personal qualities 
to succeed in this key role, please write with full CV including 
details of your current remuneration package quoting reference 
1505402/04 to Jo Sutherland, Barkers Response & Assessment, 

30 Farringdon Street, London EC4A. 4EA. 

Legal & General is am Equal Opportunities Employer. — 


jfK 


Legial&Y 

General 

investment 

MANAGEMENT 


European Equities Trader 


Major Investment House 

We are acting for one of the workft brgjst investment 
organisations, a major force in Europe and elsewhere 
in both retail and institutional markets. Worldwide die 
group controls assets totalling over £200 billion, and 
the London office, which boasts a powerful team of 
Fund Managers and Analysts, accounts for a significant 
and growing proportion of the whole: 

This sustained success has created the demand for a 
Senior Trader. The Trading Desk, an integral part of 
the team, enjoys discretion, works closely with (he 
Fund Managers and offers far more than a routine 
booking service. The group is also at the forefront of 
technological developments and new workstations 
have recently been imra11««d 


£ Negotiable 


The need is for an able European Equities Trader, 
offering several years' directly relevant experience 
with a well-known investment or securities firm. 
There are distinct prospects for career progression 
and the package offered will reflect the importance 
attatched to the role. 

Please write with full details to Nigel Halsey, 
Managing Director, at the address below, or call 
071- 495 4446. Confidentiality will be observed. 

The 

Halsey CZk>nsititiiigPai 1 iiership 

34 Brook Street, Mayfair, London W1Y 1 YA 


INTEGRAL EUROPE LTD . 

Management Consnltouits 
General Manager - Europe 

Integral Fiimpr. « ifie TMC, hMcrf m ana flaiiimt ennanltwifl’ xrm n f lntygr»l J fry: a 
a small, fast growing firm based in the UJS. Wo arc also affiliated with a largo 
amber of academics at leading maversitieg. We mb looting to fane a general 
manager to direct onr recently established practice located in Windsor, 
Byfamd. 

Quailed applicants should have: 

* An advanced degree in bumesfian a leading business school 

• 5-7 jean pnwyilttng experience 

* Demonstrated ability to lead conmhnig teams 

• Demonstrated abBity to Bdldkut projects 

* Strong desire to manage an entrepreneurial operation 

R n poi ui b ftMn wUlInciuda: 

• Managing CHent Rdatioaridpe 

* Managing Office and European Growth 

- Qrocibaring to the analytical and intcflccttral capsbnkics ofl the firm 

• Si gnific a nt travel regsged (3-4 days per week) 

interested parties should toward their c-Vi sad references Kx 
Roth Band 

Practice Administrator 

iniugral, t f|t *- 

One Brattle Square, Fifth Floor 
Cambridge, MA 02138 
Phone: 617-3494125 
Fax: 617-864-3742 or 617-864-3862 


SR ITALIAN DERIVATIVE SALES 
(FF/Fixed Income) 

£ 60 , 000 + 

A major US investment house based In London requires extended 
coverage of the Italian market. The ideal candidate will have a strong 
technical background with proven marketing experience in Southern 
Europe. Bi-lingual English/Italian essential. 

Thisinvestmenthouse demands the highest standards of commitment 
and professionalism. Those troubled by self-doubt should not apply. 

For further information please contact Philip Ashby-Rudd on 071 623 1266 

Jonathan Wren 4c Ca Limited, Fi n a n cial Recruitment Consultants 
No. 1 New Streep London ECZM CTF TeL 071-623 1266 Fax. 071-626 5259 


i Q N ATM A \ W R 1 \ I \ 1 < LI T I V I 

: 



THE HXJSHBM. SAME OF JAPAN 


Syndicated Loans Hanagn 


tty Oral £35,000 + Badriai Banffis 

O he Industrial Bank of Japan, limited is one of the 
world's leading financial institutions with an 
international portfolio of blue-chip clients. 

We have a requirement for an experienced Syndicated Loan 
Manager to be responsible for our institutional investors. 

Ideally candidates will be graduates, preferably with an MBA 
and be In their mid to late 30's with at least five years 
banking experience including k»n documentation, credit 
risk analysis with structuring capabilities. Candidates must be 
able to communicate orally and in writing in Japanese, 

French and English. 

Interested individuals with the relevant skills should contact 
Krm Cowling, Personnel Department 
The Industrial Bank of Japan, Limited. London Branch, 
Bracken House, One Friday Street, London EG4M 9JA 


Unique Opportunity 
fora 

Discretionary Fund Manager 

A unique opportunity has arisen for a Discretionary Fund Manager who will report to the 
Investment Director of a small West End firm with a highly-specialised private client 
base. 

Tbe Fund Manager will work closely with the firm's consultants to develop and 
implement a wide-ranging strategic policy for each client 

With suitable professional qualifications the candidate, although primarily a specialist in 
UK Equities, should have some experience of Fixed Interest Securities and an 
understanding of International Equity markets. 

Significant career prospects and a competitive remuneration package will be offered to the 
successful candidate who is likely to have at least ten years relevant experience. 

Applicants with CV to: BoxA2038, Financial Times, 

One Southwark Bridge, London SE1 9HL 


Institutional Equities 


An international Financial Institution is looking for a seasoned 
sales professional .with experience m IncBan and other 
International Institutional Equity Markets. The ideal 
candidate wil havtexteravtf contacts with Institutional Fimd 
Managen Candidates not only, must be able to demonstrate 
extensive knowledge of Inc^n language^ cultures and 
business practices bat tiwjrmust also have contacts with 
business and government bodies in India, A First Oas degree 
in a finance related disdpfine ii a pre-requMtt 

Successful candidates wffl haw® strong inter-personal skills 
with the ability to work under extreme pressure In this hectic 
growing environment. A second European Language would 
be advantageous. .. 

Please rend CV together with a letter demo n strating why 
you are suitable for this. portion t«j. D. Vine 
Vine fctterton Ltd, State 26, Ludgate House, 

107-111 Fleet Street, London EC4A2A& 

VINE POTTERION 

RECRUfT^^n'ACVBniSlNG 






FROM AS UTILE AS 
£90+ VAT 


Looking for 
o Career Change? 


FmCWlBERD EnUHEUG mmer 
Pmup Whbleyoh 
Tel: >71-873 3361 Fax: 871 -873 
4331 MBrarnmniumiAr 
Fumul Tub, Rswmnr 
Anmmnwfa. Mi—h Owe 
SoonnuK Bbuse, 
LmhmSEI 9HL 


'.,>f7TT7 


Private Cuent 
Stockbroker 

with 20 years 
experience seeks 
Senior Position 
with Provincial 
Stockbrokers. 

Write to Bax A2043, 
Financial Times, 

One Southwark Bridge, 
London 
SE19HL 


Man For 
All Seasons 

Unique t raining »nH 

experience, tenacious, 
problem-solver, physician, 
bospjtal-director r r e am m -fa^ 
author, business experience 
as CEO of m ta m ati om l 
entertainment group. 

Series c h a llengin g positions 

where these assets can be 

foBy utilised. 


r 


^ , r-. 













. CMKan.'i.f'JibfaO 


-V‘~~ n * 


— - — 

Compliance 

Life Assurance 

Sooth East London c£35,000 + car, bonus, etc 




iiaw.y 


5?: 


Our dient is the UK branch of a substantial 
Canadian Mutual Insurance Company, selling a 
wide range of life, pensions, and fraternal 
benefits products through two direct field sales 
forces. 

In the context of the increased regulatory 
pressure currently being applied to all Life 
Companies, it has dedded to make a major 
investment in expanding the Compliance 
function. The immediate emphasis will be on 
the following:- 

• Improving complaints procedures. 

• Ensuring "Best Advice* in all new business 
proposals. 

• Indepth investigations of 

competence, honesty, and rey * 

administration. IV / 


MaL 

ament X X doc 


• Maximising interface between IT and 
Compliance. 

• Introducer Vetting. 

We are looking for recent, specifically relevant 
experience in these areas, gained in a 
comparable institution. Preferred age is (ate 20's 
to mid 40's. 

Salary is negotiable, and the package will 
indude a performance-related bonus, car, and 
full removal expenses if appropriate. 

Please reply in confidence, quoting 
reference 2331, to Management 
Appointments Limited, Finland House, 

56 Haymarket London SW1Y 4RN. 

T Tel: 071-930 6314. 

Fax: 071-930 9539. 


: 


i»,. . . tv-, r. •’ ■' / ■ 

j"' ■ • '- v - t 1 ‘.v 

• • ■ «.'Jr 




Management X X ppofritments 
Limited 

AMSTERDAM ■ BALTIMORE - DALLAS ■ FRANKFURT ■ LONDON - LOS ANGELES • NEW YORK - PARIS 


.■ ^671^3351.;;'; 


ASSISTANT COMPLIANCE OFFICER 

Competitive Salary & Benefits 

Gartmore is one of the leading international fund management groups with around 
£2 1 billion under management. Due to our increasing business, we are seeking to appoint 
an assistant compliance officer. Joining a busy and highly regarded legal and compliance 
team of eight professionals, you wifi: 

• Plan, co-ordinate and perform compliance reviews of business areas and products 

■ Review and develop monitoring systems and programmes 

• Provide advice on and interpretation of SIB, 1MRO and LAUTRO rules 

• Liaise with external trustees and auditors 

• Contribute to the general compliance work of the deportment 

You will be a qualified accountant with 1-3 years' relevant experience, ideally within 
another financial institution or in the financial services department of a professional 
practice. You will have a sound knowledge of IMRO and/or LAUTRO rules and their 
application. Essential qualities are strong communication and project management skills 
and a team orientated approach. 

If you are Interested and meet our requirements, please apply with CV to 
Lois McLean, Senior Personnel Manager, Gartmore investment Manag em ent pic, 
Gartmore House, PO Box 65, 16*18 Monument Street, London EC3R 9QQ. 


oPBiBusimssom 

BENEFICIAL BANK CHAIR IN MARKETING 


it Marketing. 

Die Open Business Sdiool offers a ihreeHfer qirttfkation sdwme - the Certificate, 
Dqdoma tnd MBA - timing to improve standonk of manogBcwit professonoSsm 
timnrghatf Europe. 18 lira coutsss <ro offered by distance learning, with high 
quaHty support provided by o oetwwk of local tutorial and couttsafafl staff. 

24, 000 students ara taking tha School's courses in the United Kingdom aid the 
School is offering its course in other owtUnas n East and West Europe. 

Ub Choir in Mnka&ng is hnded by tin Baneftdol Bonk pfe. Tha Open Ihuversity 
and BenoSdal Bmk Imre beon working togelhef ante 1989 when they loundrad 
fhe first WSA and programme fat a Uravererty in lint UL Sapport far the new 
BeftefidoJ Bonk Chtnr in Marketing n the Opart Businsss Sdno! is me more step 
in ranbrong the retolwnsWp between the Bonk and the Open Untocity. 

The penon qppomhd wfl bo expected to develop a coherent programme of 
research in markefog with masting staff it the School and to give a food in 
teochktg in this am. Wo ore bobq for corcfidntBS with on entbuslaslfc 
coremrfmenf to tending managers from a Hide range of backgrounds, tfreaMfy 
' to mite high qurfty learning materials, o thorough grasp of current developments 
h m an ogaroeni education, an outstanding research record and m aptitude hr 
Isofashqr and management 

AppoWraent wfl be made on the prafasscrid salary safe, rainnnum £30398 p sl 


Gartmore 

Gartmore InveMmeru Limiicvl, a member of IMRO. 


noise and address to the Secretory, fhe Opea Uuwxsity, 
Walton NaH Mtm Keynes, MK7 6AA. hyemad to : 
Sea^ay&Opa}JK.dcabytsleph(mg (0908) 6S37J0. 
Further partiadas are awHabls on request in 


24th Jum. 




IMRO COMPLIANCE OFFICER 

(£40,000 + Benefits 

Our client is an established Investment Management house. They are seeking 
to recruit an experienced IMRO compliance specialist to monitor their 
expanding business. The compliance officer will be responsible for establishing 
procedures and manuals and training staff in relevant regulatory issues. 

Candidates must have an in depth knowledge of all UK compliance regulations 
coupled with a familiarity with the investment management business. 
Applicants should also be able bo d em on s trate enthusiasm, initiative and 
excellent communication skills. 

If you an interested in this position, please send your co to Helen Highet 

Jonathan Wien Sc On Limited, Financial Recruitment Consultants 
No. 1 New Street, London EC2M 4TP TeL 071*623 1266 fax. 071*6265259 


htorvfcw to hdi an Wednesday 5th October. university 

Disabled applicants whose skills and experience meet fhe 
requirements of fhe job will be interviewed. 

Equal Opportunity is University Policy. 


JAPANESE 
EQUITY ANALYST 

Willi the continued Global expansion of this European Investment 
House, on opportunity now exists for an ambitions team player, of 
graduate calibre, who can demonstrate a successful track record of 
approx 2 years analysing Japanese Stacks and Derivatives. 

As part at this small bat highly professional team, you will be 
expected to i niti a te monitor and provide; in dcpdL. 


* Sector Analysis 

* Portfolio Maintcnaace 

* Recommendations & 
Presentations 


* Company Analysis 

* PC Projections * EXCEL 

* Contribute to the out- 
perform an ce target 


UTILITIES ANALYST 

S pecialisation in Electricity Companies 

> A Global Investment Bank with a highly recognised and snccessfnl European Equities 
Division is locking to reernit a Utilities Analyst, with specialist knowledge of the 
power generation companies, to join its existing Energy Team. The research gronp 
covers a broad range of sectors and is supported by a large and effective sales 
force based throughout Europe, the US and the Far East. In addition to developing a 
research product for institutional clients, the successful candidate will play an 
integral part in the group's corporate finance effort. 

> The company requires a candidate with a minimum of three year’s experience in 
one of three disciplines; Utilities equities research within another broker or fond 
manager, financial/planning experience within a utility company or 
privaiisation/transaction experience within ■ corporate finance department. The 
post demands strong analytical ability combined with effective written and verbal 
communication skills. The successful candidate will gain a great deal of exposure to 
both institutional and corporate clients. The role will initially concentrate on 
companies based within the UK but will increasingly encompass the whole of Europe. 

> The position will be remunerated at a competitive level commensurate with 
experience. This is an excellent opportunity to join a high quality research group 
nail that is exposed to first tier institational and corporate clients. 

Interested individuxis with the relevant skills should contact Saxenae Schecte r, 

enclosing a fall curriculum vitae to the address below; 

Berwick Selection, 51 Lincoln's Inn Fields, London WC2A 3LZ . 

Tel: 071 404-6446 Fax: 071 404-6062 


Excellent career prospects and a performance related re ran aeration 
package is oa offer for the successful candidate. 

For further details please call Mike Blundell Jones 
on 071 464 6292 or write to 
Absolute Recruitment Ltd., 
Staple Inn Buildings North, 

*fA BSO LUTE , 

* London WC IV 7PZ 

<=» RECRUITMENT F«: 071 404 6275 


ANALYST 

Discreet Prestigious 
Investment Firm 
has an outstanding 
position for an 
experienced analyst to 
help manage a risk 
arbitrage/distressed 
portfolio. 

Good benefits. 

Curriculum Vitae to: Box 
A2044, Financial Times, 
One Southwark Bridge, 
London SE1 9HL 


ftnancxal Times Friday may 27 1994 


1990-93 GRADUATES 

OPPORTUNITIES IN^ ^STRATEGY^ ^CONSULTING 

Recent graduates/post-graduates (1990-93) in search of a new 
career challenge are required by our successful and growing 
Financial Services consulting practice in London and Germany. 

Booz- Allen & Hamilton is one of the world's leading management 
and technology consulting firms with over 5/000 employees 
worldwide. We provide strategy, organisation and systems expertise 
to the world's leading corporations through, seven specialised, global 
practices. 

Our Financial Services practice advises the Boards of banks and 
insurers about their business strategy, organisation effectiveness and 
operational efficiency. All assignments provide intellectual challenge, 
demand creativity and require us to work across the traditional 
organisational boundaries of geography, industry and function. 

You will have an outstanding record of achievement - academically, 
professionally and personally. Your first degree must be a 1st or 2d 
(or equivalent). Experience in the financial services sector is desirable 
but not essential. Fluent German is necessary for our German offices. 

Our continued success depends on attracting and retaining 
consultants of the highest calibre. Our compensation package, 
opportunities for promotion and career development programme 
(including MBA sponsorship if appropriate) reflect this fact. 

Apply with CV (including school and university grades) and 
covering letter to: Amanda Taylor Recruitment Co-ordinator, 
Booz-Allen & Hamilton, 100 Piccadilly, London W1V 9HA by 
Tuesday 7th June 


BOOZ* ALLEN & HAMILTON 


r-v- r 



m jsSSaF 
3 732* 


€ 




a 1 ©J 
SiSS 

SMB 


Quantitative Analyst 


INTERNATIONAL EQUITIES 

Rothschild Asset Management Limited m anages funds for UK and international 
clients, both institational and private, and is part of a global network within the 
Rothschild Group. 

Quantitative methods and systems are of key importance to oar investment 
methodology, and we are now looking for an additional person with proven experience 
in a quantitative fond m ana g ement environment Reporting to the Director responsible 
for quantitative analysis, you will be responsible for refining systems, undertaking 
sophisticated testing of hypotheses for model-building, and developing and maintaining 
asset allocation systems and stock selection models. 

Operating as a key member of our Central Support Group, you will provide 
comprehensive in-house consultancy support for our operations in the major financial 
centres around the world, helping to co-ordinate new software and modelling 
developments as well as responding swiftly to local requirements. You will also update 
and run models for regular strategy meetings, document ail models and systems in full, 
and make it your business to stay abreast of the latest market trends and systems 
developments. 

Probably in your mid-late twenties, you should have spent around five years in a 
quantitative environment. You will be self-motivated and capable of operating with a 
high degree of independence. You must also back strong technical skills with a sound 
understanding erf financial markets. 

The position carries a first-class remuneration package including profit-sharing, 
company car and an attractive range of b an ki n g benefits. In (he first instance, please 
send your full curriculum vitae in the strictest confidence lo Rodney Lonsdale, 
Personnel Director, N M Rothschild & Sons Limited, New Court, St Swithin's Lane, 
London EC4P4DU. 



Property Economist/Researcher 


NORWICH 

UNION 


Norwich based 


c£35,000 + car 


TJ :*•] JiwRiiK 


WANTED 


30 YRS OLD 

Senior Executive Available 

Frencb/Spanish fluent 
Engineer with finance degree 
Corporate Finance & Aircraft leasing 
experience 

Paris based but available worldwide. 
Write to: Box A2040, Financial Times, 
One Southwark Bridge, London SE1 9HL 


PRIVATE CLIENT 
PORTFOLIO MANAGERS 

Leading investment management company, based in 
Bristol, has capacity and opportunities for 
individuals, or a team with an established client base, 
to join our growing private client and pension tend 
management business. 

Please write to Box A2034, 

Financial Times, One Southwark Bridge, 
London SE1 9HL 


Norwich Union investment Management currently has more than <£30bn under 
management, including £3 bn in commercial property. 

In order to maximise the performance of the Property portfolio we wish to appoint a Property 
Economlst/Researcher. 

The purpose of this role Is to establish an economic forecasting and research function which 
will support all aspects of our property investment business from strategic and business 
planning to portfolio and property selections. 

The successful applicant is likely to be educated to degree level In economics or a related 
subject and have had several years property analysis and research experience within a 
commercial environment 

The salary is negotiable, according to experience. 

Additional benefits Include a company car, performance related bonus and a comp re hensive 
relocation package where appropriate. For the rlgit candidate there are -also excellent 
opportunities for long term career development within the Norwich Union Group. 


cruMjdfulltrlo: 


NonritAUdMCra^ 
TO Box 150 
SMAuilHm. 
SumfSnwit 
NarwtdtMll iUZ 


Nantvh (Mm k « tqmal 

jftwnWirfrirt i m pfu,u uaf 

nw f n n— w ap p Oui t iwu fivm 
mziuonlditabUd pntom 




* j 0 


I: m 

9 fo? 

!.■ te 


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FINANCIAL TIMES FRIDAY MAM 27 {994 


ACCOUNTANCY COLUMN 


vu 




'"T! 


Auditors hedge their bets on derivatives 

The accounting treatment of financial instruments in the US is in flux, writes Richard Waters 


<be reported profits of US com- 
panies that use complex finan- 
cial instruments to manage 
-heir risks look set to become wnreh 
more volatile, leading many compa- 
ales to stop using all but the simplest 
lenvative instruments. 

There is a new unease (some might 
say. panic) among accountants and 
auditors in the US about the way 
Many companies use — and account 
tor - these finftnrraj instruments. The 
„• ^sterest being shown by regulators 

- * an “ legislators has also sh a r pened the 
\ accounting profession's attention. 

\ . Recently announced losses from 
miscued corporate hedging strategies 
. nave set the tone. The $i02m after-tax 
' toss (S157m pre-tax) taken by Proctor 
• ft Gamble on two leveraged interest 
rate swaps last month has reverber- 
ated through the corporate and 
v . accounting worlds. 

Of particular concern to the bean- 
- counters is the feet that p&G had 

- . been treating these instruments as 

•' straightforward hedges - even 
:• though, It now says, they were highly 
risky bets that US and German inter- 
est rates would rise. 

: ■ . US accounting rules give companies 
considerable leeway in their treat- 
: - ment of financial instruments. If P&G 
. had been exploiting the weaknesses in 
the system, how many others? 

A restatement of its figures last 
week by Caterpillar Financial Ser- 
vices, after a review by auditors Price 
Waterhouse, could become the norm 
. as companies scrutinise their deriva- 
fives holdings more closely, and audi- 
tors (fearing shareholder lawsuits) 

' v.. become more cautious. 

Companies can pick either of two 


At the 1 id of last year, Eastman 
Kodak w s sitting on paper losses of 
W92m 01 derivatives contracts. It is 
a big ns r of Interest exchange rate 
derivaitv $, but gives little Informa- 
tion ahoi : how these hw Mp imMTfa are 
used. 

Some 1 the paper losses could be 
realised 1 the near future. The com- 
pany pla s to pay off part of its |7bn 
debt by selling three of its busi- 


nesses. The cost of liquidating inter- 
est rate swaps associated with fids 
debt could amount to between $250m 
and S350m, according to Ur Alex 
Henderson, an analyst at Prudential 
Securities. 

The swaps have kept down the 
interest charges reported by Kodak 
in the past A one-off charge now 
would beg the question why the swap 
losses weren’t offset by a matching 


gain from pre-paying the debt 

Like many big US companies, 
Kodak refuses to discuss its hedging 
policies beyond what appears In its 
accounts. The Securities and 
Ex c han ge Commission has written to 
several Mg companies putting pres- 
sure on them to say more about their 
use of derivatives. 

Kodak said It was not aware of 
reaving a letter. 


ways to ccount tor derivatives. One, 
known a hedge accounting. Involves 
matching gains or losses on a finan- 
cial inst ment against the asset or 
liability t is Intended to hedge. Any 
profits 01 losses on the instrument are 
deferred. Provided the hedge works, 
these cai be set off later against cor- 
respond! g losses or gains in the 
underlyii ; asset 

Under ie second method, all deriv- 
atives ax shown at market value at 
the end < : each period, and any gains 
or losses ire taken through the profit 
and loss ; ccount immediately. Mar k, 
to-marke accounting produces vola- 
tile quarterly earnings. It fails to 
reflect tie economic reality of an 
effective lodging strategy, critics say. 

Compares, naturally, prefer hedge 
account ig. Under lam accounting 
rules, r any may have shovelled 
instnmu its Into this category which 
more relistically should have been 
marked ) market 

Auditors are dearly getting more 
wary. C terpfllar’s financial services 
arm say it uses a variety of instru- 
ments 0 protect its net interest 
income, nduding interest rate swaps, 
forward rate agreements, caps and 


1 N >V H 


'Main 


ttive Analyst 


swaptions. The last two. Price Water- 
house now says, should be marked to 
market (previously. Caterpillar had 
hedge-accounted the whole book) 

Caterpillar Financial Services was 
farced to restate Its first quarter fig- 
ures to record a $5.4m after-tax 
charge, cutting its profits for the 
period to 58.4m. In future, its quar- 
terly will depend on the mar- 

ket value of those instruments at the 
end of each period. 

If writing caps and swaptions was 
part of an overall ride-management 
strategy, as Caterpillar claims, them 
such an accounting treatment is non- 
sense - the figures do not reflect the 
economic reality. Caterpillar said it 
won't write caps and swaptions in 
future, but will stick to instruments 
that qualify for hedge accounting. 

The problem for companies and 
their auditors is, how do you decide 
what is a hedge and what isn't? 

There Is little guidance. Rules have 
been developed for foreign exchange 
forward contracts and interest rate 
swaps, which have been applied by 
extension to other situations. 

To justify using hedge accounting, 
companies normally have to meet 


fairly strict criteria. General practice 
is to apply three tests. A company's 
managers must identify the exposure 
they want to hedge; establish that the 
Instrument will actually reduce *hfa 
exposure; and designate which risks 
each instrument is Intended to hedge. 

Applying these principles in prac- 
tice is not easy. “Modem risk manage- 
ment doesn’t work that way," says Mr 
Bob Herz of Coopers & Lybrand. Com- 
panies pool their various exposures 
and manage risk on a portfolio twaig 

Some common uses of derivatives 
are Tin controversial. If companies bor- 
row variable- rate money and owe an 
interest rate swap to convert it to 
fixed-rate, the practice is to account 
for this as synthetic fixed-rate debt 
(rather than treating the two parts of 
the transaction separately). 

Others situations are less clear-cut 
What about the use of forward con- 
tracts to hedge foreign exchange expo- 
sures on sales which have not yet 
been completed? Most big exporters 
hedge their expected future sales to 
some degree (on the assum ption that 
their ongoing business will continue 
to involve foreign currency receiv- 
ables). But under the strictest 


accounting Interpretation, entering a 
forward exchange rate agreement 
Under such c j r c rnn^fawn»« innnmrfs fo 
speculation. 

The General Accounting Office - 
the investigative arm of Congress - 
waded into the debate last week, 
urging the accounting profession to 
consider scrapping hedge accounting 
altogether. It said it isn’t clear how 
direct the correlation must be 
between a hedge and the underlying 
asset or liability, or how often the 
effecti ve ness of the hedge needs to be 
reassessed. “Determining whether a 
hedge is operating effectively and 
thus qualifies for hedge accounting is 
difficult in reality," the GAO said. 

The Financial Accounting Stan- 
dards Board may »!«» be leaning 
towards foil mark-to-market account- 
ing. Last June, it put forward some 
tentative (j on cl "*' 1 * 1 * about how to 
apply hedge accounting to all types of 
derivatives. In December, though, it 
went back to the drawing board 

It is now considering two possible 
approaches - to develop the hedge 
accounting approach, or to require all 
instruments to be marked to marine 
Under the second, trading profits and 
losses would be taken into the income 
statement, whereas gains or losses on 
de riv at iv es which are used for risk- 
management purposes would be 
shown as an adjustment to equity. 

There is another interesting 
accounting twist to the P&G saga. 
According to Bankers Trust, the con- 
sumer products company has bought 
other leveraged swaps from the bank 
in the past and made a profit cm the 
deals. Why hasn't P&G reported these 
as trading profits? 


sMgi 


CHIEF ACCOUNTANT 


Central London 


c £35,000 


A rapidly growing ship management company acting 
exclusively for overseas principals is seeking a dynamic 
and experienced Chief Accountant to oversee the 
financial management and accounting functions of the 
fleet and the office. 

The successful candidate will be a qualified accountant 
aged 35-45, with shipping experience, computer literacy 
and a sound trade record of achievement in this type of 
role. 

Please apply in writing enclosing your c.v. and details of 
current remuneration tax 

Susie Seeker Moore Stephens, St. Paul's House, 
Warwick Lane, London EC4P 48N 


MOORE STEPHENS- 


UNQUALIFIED ACCOUNTANT \. 
LEISURE INDUSTRY 

Qualified Accountant - quoted leisure group. 

High profile leisure group seeks a tough 
commercially minded accountant to make a 
positive impact on a division undergoing 
systems and procedural changes. 

The ability to review and implement new 
systems and procedures, and the desire and 
stamina for a challenge are 
pre-requisites for this position. 

Package £25,000 + 

Apply with full CV to 
Box A2049, Financial Times, 
^^ ^OneSouthwadcBridg^^ndonSElSHL^ ^^ 


“I want 



c.£40k + car 
+ Benefits 

Senior 

Audit 

Executive 


W2* 


PRUDENTIAL 


The Prudential Corporation is one of the largest and most influential 
financial services groups in the UK. We are making exciting changes do grow 
and diversify our business, combining dynamism and innovation with 
control and sound commercial judgement. 

13 / 

An opportunity now exists for a high calibre chartered accountant co Jain 
our central ream of professional business consultants within the Group 
Audit area, working on their own projects and reporting to the Group Chief 
Internal Auditor. Your role will be to undertake computer and business risk 
reviews and audits across all parts of the Corporation In the UK and 
occasionally abroad, and present the report to the Chief Executive. 

tSr 

You will need to be a qualified ACA uitb "big she" training and have at 
least three years’ P.QJL You will have a proivn track rvconl of 
achievements ht operational and computer audh/cottsultancy 
assignments with a high degree of exposure to senior management. Your 
experience will include project management techniques, systems 
development methodology, mainframe systems security, application 
controls and badness reviews. You must have excellent and and written 
com muni cation skills, a sharp mind and a flexible, enthusiastic approach 
to solving problems and presenting clear practicable solutions to all levels 
of management. You will also have the ability to Impart your specialist 
skills to other members of the aueBt team, as required 

T®/ 

Wc offer an attractive remuneration package including a company car 
and non-concriburory pension. 




Please send your fell c.v. with a personal covering tetter emphasising 
specific attributes which will be particularly useful for this high profile position, 
to Khstic Moorhouse, Group Services Personnel, Prudential Corporation pic, 
142 Hoflxxn Oars, London ECLN2NH. 

Telephone 071-548 3765 or bx 071-548 3008 
VTe are an equal opportunities employer. 


3 ' 

■ r 



t. 


\ ‘ 


Audit Managers 

Financial Services 

±iong Kong /China 


Pries Waterhouse in Hong Kong hasp 
largest offices in the PW worldwide 


Now, as a result of business growth ii 
services sector, we are offering excqlc 
development opportunities to audit 1 
relevant experience. You will be based i 
but there are likely to be opportunities) 
and Mandarin speaking staff to cany qut assignments 
in China. 

You should be a Chartered Accoui 
experience in either the banking, se 
insurance sectors. You should have at 


ne of the experience as an audit manager, preferably within a 

Organisation. “Big 6" firm. 

Initial contracts are for two years during which our 
dynamic business environment will offer an excellent 
opportunity to develop your all round professional 
skills. If you are ambitious and talented, there are 
good prospects for further promotion. 

Interviews will be held in London. 

If you are interested in this exciting opportunity 
ntantJwitii relevant please contact John Thompson, Price Waterhouse 
c irities or Work! Firm Sendees BV, No.1 London Bridge, London 

I ast two years SE1 9QL Tet 071-939 5864. 


the financial 
ent career 
nagers with 
in Hong Kong 
lor Cantonese 


Price Waterhouse <1 



wer 



FINANCIAL CONTROLLER 


to *40,000 plus performance related benefits. .. 

Powermark pic, the Im t est direct reseller of memory, process^rM mass data 
products in the United J ingdom wish to recruit a Financial Cotdrotfttr. 

. .... — ■ — ~ kmm acjl/a cta They will lead the accounts d epart ment and be *:' 1 

key member of flre manp g ciprtfl 
To reflect the h»p ci«fence ojt^ba^^tefen totjjte^ 
company, Powarmartt pk are p i x pli red'lb ofltea..! 


The successful applicant w 1 have been ACA/ACCA 
qualified for between 3 to 7 y ew w ith at least 3 

years comnoercial/lndustria experience. . 

He or she must show evk enee of very strong cash 
management abilities in * 1 environment of rapid 
expansion and growth. Managerial skills and 

proven commercial apritud win be necessary. 

Duties will Include rev ew and production of 
dally, weekly and month y forecasts, cash How 

* {systems development. 


generous taflored p ack ag e . 

Poteermark pic has more than don 
turnover each year JprJbe past tin 
profitable and employs over 60 people. 


M a r k» 


CV in to instona to: John jL«, Goirerel Manage Powermttfc pk. 
Premier House, Station RoaclEdgwora, Middlesex HA87AQ 




<8> 


INTERNATIONAL CAREER OPPORTUNITY 

London area Attractive salary + benefits 

With annual turnover of approximately $17 billion. Motorola is one of the world's leading providers of wireless communications, 
semiconductors, and advanced electronic systems and services. In 1993 sales increased by 28%, with earnings of over $1 billion. 
With this background of continuing success and international expansion of the company, an exciting opportunity has arisen for an 
ambitious newly/recently qualified ACA to join their dynamic international audit team. 

This is a varied role involving si gnifican t travel to Motorola overseas locations in: 

■ Europe ■ Australasia ■ Far East 

■ Latin America ■ United States 

Assignments vary from approximately 2-4 weeks in length; you will be performing high-level operational reviews, examining the 
quality of management systems and controls, and carrying out special projects as requested hy manageme nt 

An Invaluable opportunity to see the world and gain sound commercial experience in a variety of business areas; this is a career 
opening which naturally leads to a range of positions in finance and manag ement after 2-3 yearn 

You will need 3 or more years' experience with a Top 6* firm of Chartered Accountants, excellent verbal and written 
communication skills, strong analytical skills and a focused approach, a flexible, open and enthusiastic manner, and an 
international perspective. 

The ability to speak another business language in addition to English would be a great advantage. Prospects are outstanding for 
achievers. 

If you can meet this challenge, then please telephone or write to Jeremy Williams, quoting Ref JW/MC. 

Motorola is an equal opportunity/afiGrmative action employer, and diversity In the workforce is welcomed and encouraged. 


L L O V D MORGAN 

financial and executive recruitment cotuttfumts 


Africa House 64- TB Kings way London WCZB 6AH 
Telephone: 071-404 3391 Fan: 071-430 2393 


r 


FINANCIAL ANALYST 

EXCEPTIONAL CAREER OPPORTUNITY WITHIN BLUE CHIP MULTINATIONAL 




This major US Fortune 500 multinational organisation has extensive global interests and is a dear marttet leader In 
consumer branded products. 

With operations geographically spread throughout the world it has enjoyed unrivalled success m a fiercely competitive 
marketplace and under difficult trading conditions. Sustained growth and Internal promotion has created the need to 
appoint a Qualified Accountant to work within the financial planning and corporate strategy function. 

Reporting to the Commercial Director and working alongside senior and operational management your varied brief 
will include: 

® afl corporate, operational and strategic initiatives 
<S» long-term budgeting, forecasting and financial planning 

** close liaison with marketing department determining feasibility studies for new product launches 

It should be noted that the rote will invoke minimal routine accounting therefore the criteria will be stringent. 

Aged 24-28 you will be a graduate, qualified accountant fAGA/CACA/OMAJ, possess sdbnd business awareness 
and be completely at ease fiaising across afl functional areas of the business. There win be some international 
travel involved, primarily throughout Europe and the USA, 

In return you can expea overseas postings with long-term career development being limited only by personal ability. 

If you feel you have the qualities to meet this challenge, please write to 
Andrew Uvaiey at Nicholson International. /Search and Selection 
Consultants). Bracton House. 34-36 High HoJbom. London WC1V 6AS. 
quoting reference number 2021. Alternatively, fax details on 071 404 8128 
or telephone 071 404 5501 for an Initial discussion. 


LONDON 


To £30,000 
+ car 

+ performance 
related bonus 


EH 


Nicholson 

International 


UK- 




France haly Holland Spain Germany Belgium Turkey Poland Czech Republic Hungary Romania Russia 




FINANCE DIRECTOR 

FMCG Pic 


South 


Competitive Package 
inc. Share Options 

A smafi Pic manufacturing and marketing spedaftty products. Following re-organisation is currently enjoying progress 
hi its fast growing sector and is ready to caplfrdse on Its position as a national brand. Plans tor growth Include both 
developing the core business and looking at potential mergers and acquisitions In the UK end Continental Europe. 

This b a key Board level appointment to help plan and guide the Company In this next stage of growth. The Rnance 
Diectar wll be expected to play an Important role in the management and strategic direction of the business. 

Raaufcamant s 

FCA with Pic experience at least at management level, if not full Board, ideedy In a consumer goods environment 
WM have demonstrable experience of dealing wHh financial Institutions and will show evidence of mergers and 
a cquisitio ns Involvement. The role requires a balance of corporate finance/mcriagement accourrflng/company • 
secretarial and information systems ski Is. 

The company b looking tor an energetic professional and a tean player with good communication skHs, but with 
strong competencies m analytical and strategic thlnJdng. Likely age mid 30s - late 40s. 1 

Please write In confidence with a ful CV to: 

NevUe Hunt, BIM Lid- 41 Hgh Street, Kimpton, HBettin. Hefts SG4 8RA 


BIM Ltd 










FINANCIAL TIMES FRIDAY MAY 27 1994 


iny. HI-TECH MARKET LEADER 

International Business Review 

ACA/C3MA/MBA Excellent salary + benefits 


bud’s perfonnance la its 25 year history has beat outstanding. The first 
company eo introduce inkroprocessocs in 1971, well over three quarters of 
the world’s PCs are now based on Intd technology. Global leader in the 
manufacture of semiconductors, profits last year soared by I15X with 
revenues up 50?S to more than $8 Mffloo. 

The company’s commitment to scasetf-thcoit technology is evident in Its 
&&D spending - $970 million in 1993 - keeping It at the leafing edge of 
advanced electronics. The elite Business Review ream plays a viral role in 
establishing new systems, processes, procedures and controls, acting as a 
catalyst for Intel’s drive towaids world class performance and practices, 
intd requires two additional team members to undertake risk assessment of its 
activities worldwide, developing and en sui n g implementation of p rogrammes 
aimed at driving growth and profitability. Working dosdy with Senior Finance 
and Operations Management, they also act as a sounding board and expert 
advisor to other business functions. Based at Intel's M4 corridor Head Office, 
members of the team typkafly undertake approx. 50% travel to operations in 
Milan, forte, Dubfin and Munich, Jerusalem, California, Oregon and Hong Kong. 


Candidates must have an excellent academic record, cither MBA, CIMA or 
ACA qualification, at feast 2 yews pqe tiifter in practice or industry and audit 
experience gained ideally in a high-tech or nanolaanriiig env ironm ent- Highly- 
developed co mm unication skills are essential together with confidence, 
enthusiasm and a real desire to work as pat of a tugbadrieving team. 

InteTs commitment to excellence in Its products and services b matched by 
its emphasis cm a productive and enjoyable working environment Providing 
individually cdloicd training for employees and preferring (o promote from 
within, continued expansion ensures outstanding career prospects. The 
benefits package is superb, including 6-monthly bonus and profit share 
schemes and -an extensive range of sports and social facilities. 

Interested applicants should contact us on 071 329 4649, or during the 
evenings and weekends on 071 231 8272. Alternatively send or fox your CV 

quoting ref 067 to the address below. 

Note: Arty CVs sent to the client by other rccrnltincfu consultancies will be 
forwarded to Alderwick Consulting Limited. 


Al.DERWICK 

CONSULTING 


SEARCH ft SEUCnON 

OCD BMLET MUSE, 7 OLD BAHJ1Y, LONDON EC4H 7KB. TEL: 071-329 4649 FAXi 071-J29 4S77 






West End 


£38,000 + benefits 


products and services that span a broad customer base. The Group operates 
within the communications and meda sectors throughout an expanding 
network of offices in the U5, Europe and the Far East 
As a consequence of continuing development from organic growth and future 
acquisitions together with intema reorgamsarion a Group Financial 
Controller is now sought who will strengthen the small head office team 
based in the West End. Key objective of the role will include the review, 
appraisal and consolidation of all famdally orientated management 
information for the Group including, oonthly reports, forecasts and budgets, 
and the preparation of Group statutory accounts. Involvement in and 
instigation of special projects such as noddling and foe further enhancement 
of the Group reporting function an also essential dements of the role. 
Candidates, age indicator late 20s/eq:ly 30s, will have excellent technical 
experience coupled with disability to vork to tight deadlines. The appointee 
must also have good organisational and interpersonal skills to bring initiative, 
energy and enthusiasm to this well motivated young management team and 
wish to progress in their jwn career development. 

Please write enclosing full cunxulum vitae, quoting ref 624 fax 
Philip Cartwright FCMA. Riverbark House, Putney Bridge Approach, 
London SW6 3JD. 

Cartwright Consulting 

FINANCIAL SELECTION & SEARCH 





To £35,000 + Banking Benefits 

Abbey National Treasury Services (ANTS) is a major part of 
Abbey National Pic, with an outstanding record of profitable 
growth achieved through innovation and a strong team approach. 
In the short time since its formation, it has established itself as 
one of the UK's leading bank treasuries. 

Continued expansion has now created this outstanding 
opportunity for two Treasury Accountants to make an tnnwrflatf 
contribution to the successful growth of Treasury Operations. 

Heading your own support team, yours wifi be a high profile role 
with significant responsibility for numging the accounting 
requirements of ANTS' portfolios. Of key importance will be 
the analysis and solution of complex treasury accounting 
issues, together with the development of extensive front office 
liaison. 

An ACA eager to develop your previous experience in a 
services accounting role within a challenging. East-growing 
environment, you Will be (ami liar with a wide range of fixed* 
interest investments and transactions. Highly professional in 


I 


ABBEY 


TREASUW SERVICES 


London 

your approach, yon will be capable of grasping concepts quickly 
and possess the strong interpersonal and communicative skills 
necessary to produce innovative solutions while under pressure. 
You will also have well developed analytical and leadership 
ability, and the ambition to make your mark within a team at the 
leading edge of hanking 

These important appointments wifi command an attractive 
remuneration package which will include eligibility for 
discretionary bonuses, a car, mortgage subsidy (subject to 
eligibility) and a 1% contributory pension scheme. To support a* 
healthy work environment. Abbey National has a No Smoking 
Policy. 

If you wish to be canaderrd, please write with full career details to 
Douglas Austin, Ref. A22D98, MSL International Limited, 

12 Aybraok Street, London W1M 3JL- 

Jn pursuing a policy of equality of opportunity for all. Abbey 
National positively welcomes applications from every section of 
the community. 


ACA/MBA 


f! 

Equity Analysis 


To 3yrs PQE 


NatWrst Markets holds a leading position in the world of 
corporate and investment banking. Comprised of eight highly 
successful businesses, our activities cover trading, corporate 
banking, asset management and specialist advice. 1993 was 
an exceptional year for Nat West Markets and in particular, 
our Securities Division consolidated its position as one of 
the top UK equity houses, with more highly ranked analysts 
than any other firm. 

This market leading position has been achieved by research 
excellence. An opportunity currently exists to join the 
investment analysis area 


Probably aged 25-29, the ideal candidate will be a qualified 
ACA or MBA, Hsplarying academic excellence and one. of 
die following i^ck grounds: 

• Working witiiin Public Practice and able to demonstrate 
strong analytical skills, perhaps gained through a 
secondment to management consultancy or corporate 
finance. i 

• Working witim the investment research, credit analysis 
or corporate finance department of a major financial 
institution. 

• Performing ijstrafegic/anatytical role within commerce 
and industry! 


The role forms part of a well-established team involved, in am j - ltK j U str> 
the research and marketing of a range of companies within 

specific sectors. This research encompasses sector reviews. The successful individual will be a tenacious team-player, 
comparative analysis and the evaluation of company results, exhibiting strotg interpersonal skills, a high degree of 
You will be responsible for creating and providing thorough profcssionahsiaand the ability to work to tight deadlines, 
and detailed analyses of quoted companies and will liaise Proficiency In report writing and presentation is essential, 
extensively at senior levels. The role will also involve sales e*perie*ce of investigation work covering large 

and marketing to investors. corporates woiU be beneficiaL 

For further information, please contact our retained advisors, Guy Townsend or Brian Ham ill of Walker Hamill Ltd,, 
on 071 287 6285. Alternatively, please forward a brief resumt to their offices at 29-30 Kingly Street, London, WIR 
SIB, quoting reference GT339. AH direct responses will be forwarded to Walker HamiU. 


NatWhst Markets 

Corporate S^Investascnt Banking 


W > v.i 

i r 

to ft 

«! 

t\§ 

:? We 

y-m 


Finance Director 


Capital Equipment 


North-West 


Our client, the market leader in combined 
cyde power generation, supplies capital 
equipment, together with full service and 
maintenance backup, to a wide range of 
organisations. With further opportunities for 
expansion and growth, there is now a 
requirement for an ambitious Finance Director 
to implement and manage cost, budgetary and 
forecast systems and to contribute to the 
overall management of the Company at Board 
level 

Reporting to the Managing Director, this 
position is within a dynamic and opportunistic 
culture where the nature of the advanced 
technology products and sendees requires 
complex financial control. 

As a qualified accountant with broad senior 
level experience, preferably gained in an 


c£45,000 +car + benefits 

engineering environment, you will have a 
proactive, energetic and hands on style with 
excellent interpersonal and communication 
skills. Strong analytical capability is essential 
together with significant experience of long 
term capital investments. Knowledge of 
contract costing systems would be an added 
advantage. 

This challenging job in an exciting industry 
offers the rewards package as indicated 
together with full executive benefits including 
a fully expensed car and relocation assistance 
where appropriate 

Please write with full career and salary 
details - in confidence - to: Tim Harney, 
Ret 58D88. .MSL International Limited, 
Sovereign House 12-18 Queen Street, 
Manchester M2 5HS. 


MSL International 


Consultants in Search and Selection 


M25/M40 Locati o n c £25.000 + benefits 

The Albert Fisher Group PLC ("Albert Fisher”) Is a major International food service and distribution group 
operating in the UK, Continental Europe and North America. 

Through Internal promotion, a vacancy now exists at the Group Headquarters In an M25/M40 location for a 
Corporate Accountant The role Involves working In a small close-knit team which is responsible for board level 
reporting, preparation and presentation of (he group budget and producing the group's consolidated financial 
statements. 

The successful candidate will be a newly qualified accountant computer literate with the ability to produce 
accurate work within tight deadlines under pressure. 

Albert Fisher is a dynamic and expanding international business la which there Is career development potential 
for the successful candidate. 

The package will include a basic salary of c£25,000 plus company car. 

Candidates should submit a detailed curriculum vitae to: 

DeptSV., 

Gtviq) Accounting Manager, 

The Albert Fisher Group PLC. 

'C Sefion Park, Belts HOi. 

Stoke Pages, Bucks SL2 4HS 



Citibank Luxembourg hi e n gaged in global finance and private banking activities. Its rapidly growing Mutual Funds 
Department administers both Citibank and third party funds. An experienced aid a mb i ti ons Individual to now sought to 
head the accounting function for this expanding business. 


THE APPOINTMENT 

■ Manage a substantial team focusing on the accuracy and 
appropriateness of mutual fund net asset values. 

■ Play a key role in the development, implementation and 
valuation of new funds and of new instruments Introduced 
into existing funds. 

■ Ensure correct accounting policies and procedures are 
adopted for new funds and Investment instruments. 

■ Participate in client reviews and the annual budget; 
manage the auditing process. 

Please apply in writing with a full CV and salary details, 
quoting reference M40G. to Susannah Tru swell 


THE REQUREMENTS 

■ Graduate, with strong intellectual skills, probably aged 30- 
40, with a recognised accountancy qualification. 

■ Currently working with an audit firm focusing on mutual 
funds or unit trusts, or alternatively based within a fund 
management house. 

■ Fluent French and English a prerequisite 

■ Mature aid dynamic with strong management, 
imerpensosal and communication skills. 

K/F Associates. Regent Arcade House. 2 52 Regent Street. 
London W»R 5DA 


. . .. . .. .. . .. - •• • V' V«Y 5 - 

. . .. * .;. V 


KJF ASSOCIATES *Sj 

Selection & Seared 3SS 


FIN A II 


CE DIRECTOR 


Influencing Key Management Decisions 

Competing in a fast-moving marketplace, the aim of this acquisitive management 
services group is to provide both quality and excellence. Since its flotation in 1989, 
it has demonstrated an impressive track record, resulting in tenfold growth. 

There is now an outstanding opportunity for a young, ambitious finance professional 
to make an immediate and effective contribution to the group's second-largest 
subsidiary, a computer products and services company. 

Reporting to the Managing Director and managing a small, professional finance 
team, your initial priority will be to critically appraise existing financial controls and 
management information systems. In this strategically important position, you will 
influence key management derisions and provide comprehensive financial support 
including finance analysis, business planning, budgeting and forecasting. 

A graduate Chartered Accountant with a minimum .of 2 years' post qualification 
experience, you will possess a high level of personal energy and demonstrate a 
strong commercial approach, with the ability to contribute to dedstan-'maklng at a 
senior level. Career opportunities are excellent within this young, dynamic group. 

Please apply directly to Laura Mosby at Robert Half, Walter House. 418 The Strand, 
London WC2R OPT. Telephone: 071-836 3545, or evenings on 0277 261433. 
Alternatively, fax your details on 07 1 -836 4942. \ 


c£35,000 

+ Car 

+ Share Options 
+ Benefits 

Milton Keynes 


half 


FINANCIAL 

RECRUITMENT 












h' i, n 

"nN 


FINANCIAL TIMES FRIDAY MAY 27 1994 


Head of Finance 

High-Tech Pic 

c.£45,000 + Bonus & Benefits Surrey 

Commercial finance appointment at heart of fast moving, entrepreneurial group. 

THE COMPANY 

£w^, r " UlIS ‘ 0ne, ’ ta “ d CUln,r '- RewardI QUAUHCATIONS 
THE POSITION * Forward thinking ACA, aged 35 - 45 . Senior finance 

♦ Full responsibility for centralised financial =?>==« to EMCG <« .stolen o^aninnion. 

thanagemmt and control MSS, legal ♦ Visible, hsndsKDO onager wrth pramcal, common- 

♦ Deliver rimeiy snd^^^SnnJ^SSdon Knse appn»a ch._Firat dais mterpersonal and 

and analyses to demanding deadlines. ♦ Smug personality. Able io see beyond the numbers. 


Please »mkI fuU cv, stating aabry, ref N2I70, to NBS, 54 Jermyn Streoti London SWIY 6LX 



NB SELECTION LTD 
» BNB Resound pic company 



LONDON 071 493 U92 
Abcfdsca 0224 638080 ■ BtnDtoghna 021 233 4656 
Brijtal 0Z72 291142 ■ EfCnbtn-gh CB1 ZW2250 
Gl»pr»041 2D4 4334 •Loodi 0532 453830 
Uandtasa 0625 539953 ‘Stash 0753 81 9227 


YOUNG FINANCIAL CONTROLLER 

North East to £35,000 + Bonus 

Our dient is a £50 mPHon turnover manufacturer of high quality electrical component products for a variety of 
industrial and commercial uses worldwide. The company is a market leader in its field and an ongoing programme 
of investment allied with a philosophy of continuous improvement will ensure that the impressive growth achieved 
to date is continued. 

They now seek to appoint an outstanding young Financial Controller, who, reporting to the Head of Finance and 
heading a high calibre team, will assume responsibility for the day to day running of the finance and associated 
functions with the ultimate aim of profit improvement The role is both broad and proactive and positive 
participation in the business is a high priority. 

Candidates aged in their late twenties or early thirties will be qualified accountants with a science based degree 
who can demonstrate a track record which encompasses management as well as technical skills ideally gained 
within a fast moving manufacturing environment Highly motivated, the individual must possess the drive, initiative 
and commertia! flair required to make an impact in a dynamic business. Development prospects are excellent. 

Interested applicants should write to Fred Howie, 

Managing Director at No r t he rn Recruitment Group, 

Vine House, Vine Lane, Newcastle upon Tyne NET 7PU. 

Telephone 091 261 6940. Fax 091 261 8466. ^ I 

Please quote reference FH6276. " aH30 


lopment prospects are excellent. 


Divisional Financial Controller 



PePSI-GOLA INTERNATIONAL 



South West London 

Pepsi-Cola International (Europe), PepsiCo's European beverage business, has a 
turnover of $2bn, having doubled in size over the last two years and being on track 
for continued double digit growth in the future. This growth has. been achieved by 
strategic acquisitions and Joint Ventures, together with a substantial investment in 
die aggressive development of new and existing beverage brands. A small central 
team, based at Richmond, Surrey, provides the strategic thrust for the Western 
and Eastern European businesses and co-ordinates the activities of the fully 
decentralised field operations. 

International promotion has creaced the opportunity for a key individual to 
strengthen the Division’s Finance function and to assist in the achievement of 
the company’s objectives. 

Responsibility will be to the Vice -President, Finance for the integrity of financial 
control throughout the Division. Key areas of involvement will be to provide 

Interested applicants should forward a comprehensive curriculum vitae, 
quoting ref: 188785, to Alan Dickinson FCMA, Executive Division, 
Michael Page Finance, Page Hbuse, 39-41 Parker St, London WC2B 5LH. 


c £80,000 Package + Car 



strategic financial oversight across the wide range of operating subsidiaries, working 
closely with the tax and treasury functions to mavimke cross-border opportunities, 
ensuring compliance with statutory and parent company reporting requirements and 
coaching operating company finance functions in “best practice”. 

This is a high profile role, requiring international interface at all levels of manage- 
ment and providing substantial opportunity for “fast track”, international career 
development. Candidates must, therefore, be exceptional. 

The background we seek will include outstanding academic and professional 
qualifications, together with a ten-year track record of proven achievement to date 
in demanding, results -driven environments. 

The remuneration package is designed to attract and retain the best. It will not be 
a limiting factor in the decision-making process. 


Michael Page Finance 

S pwjnlim In Bnmftal RcCnnDDMBt 

London Brim! Wndfor St Alan Lcatfaolicad Bimiash*m 
Nonioghm Mmchnlw Lull Obiter & Worldwide 


FINANCE DIRECTOR 

East Midlands c£40,000 + benefits 

Our client is a profitable group of residential and 
nursing care homes. The business currently operates 
over 20 homes and annual turnover is projected to 
exceed £9 million. 

The company has recently secured funding support 
from a financial institution and completed a major 
acquisition. The intention is to float the company on 
the Stock Exchange within the next eighteen months. 
The Finance Director, as part of a close knit team, 
will be expected to contribute to the profitability and 
growth of the business and assist in the 
implementation of its corporate strategy. 

At an operational level, responsibilities will include 
systems development financial control, improving 
the quality of management information and 
planning. 

The successful candidate will be a qualified 
accountant aged 30-40. Flexibility, self-motivation 
and a desire to make an impact on the business are 
essential Experience of the flotation process would 
be a distinct advantage. The position will provide 
excellent prospects for foe successful candidate. 

Applicants should send a full CV to Andy Raynor at 
Stoy Hayward 

Chartered Accountants y 

Foxhall Lodge 

Gregory Boulevard ~ 

Nottingham, NG7 6LH 

All applications will be treated in the strictest 
confidence. 


« i m i mu 


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[l 

Financial Planning Manager 

Retail 

Northern Home Counties to £45,000 + Bonus + Exec Car 



A leading high street name, our client, is 
already the market leader in its field. Recent 
merger and reorganisation now requires a high 
calibre Financial Planning Manager to join the 
executive team in steering them towards an 
ambitious and exciting future. 

As number two to the Finance Director, the . 
Pla nning Manager will be responsible for all 
aspects of financial planning, substantial credit 
book management and implementation of state 
of the art retail information systems. 

A young and dynamic environment, candidates 
ideally aged mid-3Qs will be qualified 
accountants or MBA’s with a strong 


track record in demanding retail environments. 
Highly developed interpersonal skills are a 
pre-requisite and ca n didates must be able to 
demonstrate excellent marketing and business 
analysis skills. Applicants with previous Pic 
experience who can show evidence of 
involvement in key financial corporate 
projects will be of particular interest. 

If you feel that you have the credentials to 
pursue this newly created role, please forward 
a comprehensive curriculum vitae, quoting 
ref CT1905, to Chris Tovey at Michael Page 
Finance, The Citadel, 190 Corporation 
Street, Birmingham B4 6QD. 


Michael Page Finance 

SpccuUiaio finan c ia l Recnitancnt 

London BoWol Windsor St AHjan» Leathetfaead Hhmtogt M Bn 
Nbctingham Manchester Leeds Glasgow & Worldwide 


Group Controller 

Major UK pic 


Central London 

This £Zbn group comprises an impressive portfolio of 
retail businesses, primarily in the UK but with a growing 
international presence Recently announced results 
confirm the group's strong financial petition and 
confidence in its ability to sustain profit growth. 

Significant performance improvements have been 
achieved through a focused programme of strategic 
change that has enhanced key productivity measures - 
particularly inventory management, retail space utilisation 
and trading margins. 

A new group finance role has been created to complement 
a dynamic senior management team. Reporting to the 
Director of Group Finance and Development, in a non- 
hierardiicaJ, task-oriented culture, the appointed 
candidate's key tasks/responsibilities vriD include: 

• developing financial and management 

accounting/ reporting processes on a , 

group- wide basis to ensure total [»> 


integrity and control; 

managing the provision of all financial 




c.£80,000 + substantial bonus + car 

and performance reporting for the Chief Executive and 
Group Board; 

• liaising closely with senior management at divisional 
and operating company levels to develop a dear 
understanding of business issues and take a proactive 
role in achieving corporate objectives. 

This is a high profile and demanding role that requires 
considerable commercial acumen, proven financial 
management experience at group and operating company 
level and outstanding communication skills. Candidates 
will be graduate qualified accountants aged mid to late 
thirties and must be high achievers who nave the drive, 
intellect and personality to command respect throughout 
this progressive and successful group. Career 
development prospects are outstanding at both group and 
operating level. 

Please send a full CV in confidence to 
A CKRS at the address below, quoting 
rr» <— 'll reference number 289 J on both letter 


and envelope, and indude details of 
current remuneration and availability. 


SEARCH & SELECTION 

CLAKEBELL HOUSE. 6 CORK STREET. LONDON WIX IPB. TEL: 07 1 2S7 2820 
A GKR Group Company 


r 



Financial Controller 

Food 



Manchester 


£30-35,000 + Car + Benefits + Relocation 


East Midlands 

Our client, a major subsidiary of an established 
Food group, is a market leader in both branded and 
home label products, and has a tong established 
and respected name. Substantial investments in 
improved production facilities and IT now sees 
them poised to cake the business to new heights. 

Greater emphasis must be now be placed on 
strategic planning than ever before in what is an 
increasingly dynamic and demanding arena, and 
this newly created position will support the Finance 
Director through an exciting period of change. 
Managing a small, young team, candidates must 
also have the maturity to relate at Group levels. 


to £40,000 + Car + Relocation 

Ideally aged 35 to 45, you will be technically 
excellent with a hands on approach, and display 
high levels of energy and enthusiasm. Applicants 
with corporate finance and acquisition experience 
will be of particular interest. 

If you believe you have the qualities to fulfil 
this role and the energy to take this company 
towards an exciting future, then please forward 
a comprehensive curriculum vitae, quoting ref: 
CT1907, to Chris Tovey at Michael Page 
Finance, The Citadel, 190 Corporation Street, 
Birmingham B4 6QD. 


T&N b a multi-faceted engineering group, recognised as international leaden In our component manufacturing sector and 
with a global reput ati on for excellence in materials techno lo gy. Our turnover b now approaching £2 biffions. From Group 
Headquarters In Manchester we control some 200 subsidiary companies throughout the World. Our Finance Task Force 
exists to maximise overall profitability try the identification and advancement of commercial opportunities on an 
international basis. We intend to farther expand the activities of this function by the appointment of two high calibre 
in di v khnd s with the desire to farther broaden their overall business experience. 


msiWO*3! 


■ Working as part of a small high profile team you will be 
responsible for a diverse spectrum of business issues both 
iirtiera aHnnall y and throughout the UJC This will incltirfft a high 
degree of analysis, decision making and the practical solution 
of commercial business problems. 

■ Your particular value will derive from your personal energy, 
your professional approach and commitment to the role and 
your totally flexible attitude to international travel. 

■ You will develop relationships with managers at all levels 
throughout the group which wiE be important in influencing 


Michael Page Finance 

t yf-fr iux m Financed Bacnrinnem 




■ A fully qualified Accountant (probably in the age range 30/35) 
with international industrial experience (and ideally with strong 
Hn gniaic ability in at least one mainland European tongue). 

■ Demonstrable sldDs and expos u re in EITHER acquisitions, 
disposals and corporate financing to a substantial multi -currency 
environment OR in the commercial management of manufacturing 
fariHlies with a sound appredatiou the design and limitations of 
production planning and product costing systems. 

■ The ability to take decisions and to clarify to non finan cial 
managers why a {articular course of action should be taken. 

■ A total interest in the commercial aspects of a business 
coupled with a chronic abhorrence of routine figure production. 

Peter 

ihonld iaitisiv iMrard vonr anrinihrni Downes 


To pursue your interest in this first class opportunity yon should initially forward your curriculum 
vitae with complete c o nfidence to our advising consultants who are solely handling fob exercise:- 
Peter Downes Associates, BrooksMe Cottage, Red Lnmb, Norden, Rochdale, OL12 7TX. Please 
mark your envelope SSS42. If yon have specific points yon wish to discuss beforehand yon may 
contact Peter Downes during office honn on 0706-32443. 



Associates 








X 


FINANCIAL TIMES FRIDAY MAY 27 1994 


SECURITIES & FUTURES COMMISSION 

Director - Accountin g Polic y 


Hong Kong 


Substantial HK$ salary and benefits package 


Established in 1989, the Hong Kong Securities and Futures Commission (SFC) is a statutory body with overall 
responsibility for regulating and promoting the development of Hong Kong's securities and futures markets. 
This is a new and high-profile role encompassing the following areas 

assisting the SFC on all aspects of policy formulation for financial disclosure by listed companies in 
Hong Kang including accounting and auditing standards and compliance and enforcement matters. 

• representing the SFC m its dealings with the Hong Kong Society of Accountants (HKSA) including sitting 
on various committees of the HKSA. 

• providing advice and guidance to the SFC on existing accounting and auditing standards. 

• overseeing the fi nancial disclosure requirements of companies listed on the Hong Kong Stock Exchange. 
Applicants must be qualified accountants and should have experience of operating at a senior level dealing 
with Technical accounting issues in a major accounting firm, or one of the accounting institutes, or a 
commercial or regulatory environment- You should be a pragmatic individual, with good management and 
communication skills. The ability to speak/write Chinese is an advantage but NOT essential. 

The position carries a very attractive salary and benefits package including housing 
contribution, medical cover and re-location allowance. 

All applications are being handled exclusively by our retained consultant, 

Geraint Evans LLB, Director - International Recruitment Division, 

Douglas Lbmbias Associates, 410 Strand, London WC2R 0NS- 
(Fax 071 379 4820) to whom you should forward a detailed curriculum vitae. 

“ RECRUITMENT CONSUIX^NTS 


Manag in g Director 


Financial Services 


London 


c.£70,Q0Q Benefits 


The Challenges .. 

A start-up situation to develop a strong business from an established client base and *bo A wide 
network of professional contacts. 

The Experience 

Experience of the Tax and Financial Planning market-place. 

Demonstrable experience of client development and biniiirM building. 

High quality delivery of a professional service. 

Good at managing a team of professional staff. 

Weil developed interpersonal skills and the ability to communicate effectively and motivate others. 

The Candidate 

Age 35-45. 

Currently in an executive role with a bank, insurance company or other financial otganiiatioa. 
Entrepreneurial skills and ability to develop strategic thinking. 

Our Client 

A progressive firm of Chartered Accountants with a clear picture of their position in the 
market-place. 

Currently active in this market-place but now seek to adopt a more active development 
programme to capitalise on growth potential. 

Please send a full c.v., quoting 
Ref: FT260594/B. to Bruce Page, CA 
Douglas Liam bias Associates 
410 Strand, London WC2R DNS 
Tel: 071-836 9501 Fax:071-379 4820 

RECRUITMENT CiONSULTANTS 


Manager of Finance 


Sales and Marketing 


Outstanding 
AC A /Cl M A i ACC A 
North London 



To £37,000 + Car 
+ Bonus 


Ourdieni. the L'K operating subsidiary of a leading global financial 
services group, is cimtmumg its polity of growth, primarily through 
organic expansion. The new high calibre management team is 
committed to developing cost and service strategies that ensure 
they compete with the best, thereby increasing profitability. 
Substantial domestic business opportunities are envisaged. 

Working dosely with the Sales and Marketing function, and 
reporting to the Group Finance Director, the appointee will be 
primarily responsible for the financial development of business 
plans and new sales and marketing initiatives. This new role wiU 
beextremely proactive and w-ffl involve exlensn e liaison with senior 
management throughout the group. The successful candidate will 
also be responsible for a small financial support team. 

The ideal candidate will be a qualified accountant, with a strong 
academic background and a minimum of two years post 
qualification experience. Previous exposure toa sales and marketing 
driven company would bean advantage. However, it is essential 
that applicants should have good commercial judgement, be 
assertive but diplomatic, and have the ability to initiate and manage 
change. 

The rewards include an attractive remuneration package, together 
with a company car. large company benefits and the opportunity 
to develop a stimulating career within this high profile international 
group. 

Interested candidates should write, in the strictest confidence, to 
Robert Walker or Brian Ham ill, forwarding a curriculum vitae to 
our London office quoting RW1432. 

WALKER HAMILL 

Executive Selection 


29-30 Kingly Street 
London W1R 5L8 


Tel: 071 287 6285 
Fax: 071 287 6270 


FINANCIAL CONTROLLER 

Agent of change - leisure sector 

Outer London c. £55,000 + substantial bonus + car 

This new position with a high profile international pic requires an individual with firm commitment to delivering 
results, coupled with strategic ability and a strong business orientation. The UK division generates revenues in excess 
of £2 00m from 100 locations and is leading die Group's strong recovery from the recession. The person appointed 
will join a rejuvenated management team driving major changes throughout the business, including considerable 
investment in new IT systems. Success in this role wall open up significant career development opportunities. 


The Role 

■ Deliver accurate, timely financial information and 
ensure effective controls are in place to maximise 
business performance. 

■ Enhance the quality of financial information and its 
relevance to operational needs. 

■ Lead the accounting team of 40 through the 
implementation of a new generation of 
manage the impact on central and brar 
staff. 

■ Contribute to business planning and forecasting; 
direct the internal audit function. 

■ Considerable interface with Group Directors and 
field management. 


The Person 

■ Qualified accountant, aged 30-40; background in 
retail or leisure ideaL 

■ Proven ability at senior level, managing a sizeable 
accounting team (15+) in a rast -moving, multi-site 
business. 

■ Successful track record spearheading a major IT 
implementation project. 

■ Commercially astute, first class interpersonal skills, 
inspirational leader and ream builder. 

To Apply 

■ Please send c.v. quoting reference 2221 and salary 
details to Stuart Spindler. 


STUART 

SPINDLER 

CyWli'l / /(!’/>' 


EXECUTIVE SEARCH & SELECTION - RESOURCING PROJECTS * HR CONSULTANCY 
Old Shire House, 26 The Forbury, Reading RG1 3EJ Teh 0734 394506 


Jl 

NCyVQ 


DIRECTOR 

OF FINANCE AND 
ADMINISTRATION 

The National Council for Vocational Qualifications was set Up by 
Government to establish and maintain a comprehensive system of 
vocational qualifications accessible to everyone competent to 
reach standards approved to meet modem employment needs. 

THE POST, answering to the Chief Executive, carries responsi- 
bility for the proper financial direction of the CounciL It plays a 
leading part in both its business and administrative management 
and its strategic development. 

CANDIDATES, appropriately qualified professionally, must show 
a success record in management accounting, financial control 
and planning and company secretarial work. 

Salary scale to around £55.000, Civil Service type pennon and 
benefits. London base. 

Write in confidence with CV to Richard Addis, Charity 
Appointments, 3 Spiral Ifiud, London El 6AQ. 


A ngxttnd (baity serm% the vahmtarj stdar 


FT/LES 

ECHOS 

The FT can help you 
reach additional 
business readers in 
France. Our link with 
the French business 
newspaper, Les 
Echos, gives you a 
unique recruitment 
advertising 
opportunity to 
capitalise on the FTs 
European readership 
and to further target 
the French business 
worlcLFor information 
on rates and further 
details please 
telephone: 
Philip Wrigley on 
071 873 3351 


FINANCIAL MANAGEMENT 
IN FINANCIAL SERVICES 


East Anglia 


c£40-45,000 + Excellent Benefits Package 


Our client is a major player within the financial Services industry who can provide an arena for both medium and 
long term career development which is unparalleled in this sector. A key division within the organisation now 
seeks a Financial Manager to help develop a business strategy placing significant emphasis on future expansion 
both in terms of market development and profitability. 


The Role 

Key responsibilities include: 

• Provision of financial Management for die 
division including quarterly reporting and 

. performance analysis. 

• Responsibility for the management 
development and motivation of a high calibre 
team of 22 staff. 

• Project management of major strategic projects. 

• Cash management and performance monitoring 
of treasury and investment activity. 

• Internal control. 


The Appointee 

Key qualities will include: 

• Confidence, a sharp mind coupled with tact and an 
ability to think on their feet. 

• A record of significant achievement to date, self 
motivation and a personal goal setter. 

• A qualified accountant with a first dass academic 
background. 

• Financial Services experience or possibly a record 
of achievement within a blue chip environment. 

• Aged 30-35 with the ability to drive through 
change in a fast moving organisation. 


For further details* please forward your CV to Lynn Hardy in complete confidence, 
at Accountancy Personnel, Janus House, 46 St Andrew's Street, Cambridge CB2 3AH. 
Telephone: (0223) 461369. Fax: (0223) 352028. 


Hays 


Chief Financial Officer 


Poland 

(Warsaw) 


Up to 
£40,000 

Plus Expat 
Benefits 


The Company 

Through efficient and effective organisation complemented by a dynamic business 
ethos our clients' continued success is virtually guaranteed. Worldwide turnover exceeds 
$150m and the Polish business unit is set to make a substantial contribution to group 
figures. Their products already occupy prominent positions in the Polish economy and 
have captured a large share of the market 
The Role 

Reporting to the President of the Management Board, you will be responsible for the 
implementation of Western style accounting procedures and management 
information systems. You will be required to extend your responsibilities beyond that of 
the Finance department, to the overall management development and growth of the 
company in Poland. Prospects are excellent - an opportunity to join the Management 
Board demonstrates a commitment from the company to take your career to the next 
stage and further. 

The Candidate 

The successful candidate is likely to be a professionally qualified accountant You wiU . 
have a solid understanding of Financial First Principles and systems implementation. 
Strategic planning, budgeting and forecasting will be areas of strength in your career to 
date. Knowledge of Polish accounting and tax law is advantageous. The preference is 
for Polish and German speakers, however candidates with bask Polish and/or work 
experience in Poland are encouraged to apply 

Please send a full resume with covering letter to the address/fax below quoting 
reference FT 2276 on all correspondence. Applications wiU be treated in strictest 
confidence. _ 


• -1 



Antal International 

Executive Recruitment 
Riverbank House • Putney Bridge Approach • London SW6 3ID 
Tel: +44 (0) 71 371 9191 • Fax: +44 (0) 71 731 8160 (24 hrs) 


Management Accountant - Securities 

c.£30,000-£35,000 Package 

Based in the City, our client is a major securities brokerage house with global presence and seeks to appoint 
a professional Management Accountant You will work as an integral part of a highly motivated management 
team producing management accounts, budgets, cost analyses and allocations. The incumbent wffl also 
financial product accounting and taxation matters for fixed income securities and derivative 
products. Reporting to the Controller, the successful candidate will also work dosely with both tine and senior 
managwriem to review and explain cost allocation analyses and variances. A creative and Innovative 
approach to problem soMng and good communication skills are important A competitive salary oackane wffl 
be available, depending on experience. * 

We invite application from qualified accountants with at least one year post qualification experience in 
securities or the financial services industry or in relevant audit with a leading firm. experience 

Applications wiU be heated in the strictest confidence and should be sent to 
David Williams quoting reft M/T07 

Williams Wingfield Ltd, Search & Selection Specialists 
Astral House, 125-129 Middlesex Street, London El 7 JF 
Tel: 07 1-623 9493 Fax: 07 1 -626 1 263 


W i I I i ,i ms 
W i n i; r i (‘ I (T 





XI 


; 1) 


" v ‘V 


r 


FINANCIAL TIMES FRIDAY MAY 27 1994 


v>. 



The World is yours... 

After two years of pro-active contribution and personal development within the internal audit team 
of of the world's most prestigious companies, you will be promoted into a world where the only 
limits are your own. Vacancies exist due to recent promotions to France, Singapore and the USA. 




Audit Manager 

Reporting to the Regional Audit Manager, you will be responsible lor 
supervising professionals in the conduct of financial and operational 
audits, as well as assisting in the management of the European regional 
office, including budgeting, scheduling, training and recruiting. 
Candidates should be graduate Chartered Acco u ntants or hold an MBA 
degree, aged 30-36 and have experience of both auditing and line 
management Fluency in English and at least one other European 
language, along with a willingness to travel (40% content) are required. 

Senior Auditor 

You wiD join a young, dynamic and international team which answers 
dire ctly to the USA. Reporting to an Audit Manager, you will 
immediately commence work on financial and operational audits and ad 
hoc assignments. Candidates should be graduate Chartered 
Accountants, aged 26-29. Fluency in English and at least one other 
European language, along with a willingness to travel e x ten siv ely (75% 
with return to home base at weekends) are required. 


vurin^ 


— .Hi ;." 1 ' 1 

\\ 1 1 1 . i 

. 

\\ * 11 



FINANCIAL DIRECTOR DESIGNATE 

Financial role with aistrong business planning bias 


* Circa JE40K + car + bonus 

* Number 2 to the MJD. 


Technocorn is a successful British company that specialise in the supply, installation, support 
maintenance of software, hardware and peripherals for users of local area networks (LANs) and IBM 
systems. Revenues are currently £6 milium, with a track record of 50% growth every year for the last 5 
years and 21 consecutive quartos of profitable trading. 

In order to continue this dram ■tie growth, we are locking for a dynamic person, report in g to the Managing 
Director, who will be responsible for providing strategic business planning, revenue forecasting, 
nnmpitwifwl profit and loss modeffiqg and for dra fting and negotiating supplier and customer fo 

addition to the normal Finance departmental duties. Responsibilities »l«i indmk the management of 
Inventory Control, Purchasing, Quality Control and Facilities. The position has nmn^mimr responsibility 
for 16 staff. 

Thrt miyiwfiil rawfirintu mra tt Imwr 

* a professional accountancy qualification 

* a fnmhmtm nf S yean profewfonal **prri*nr* in any w»nr 

* exper ie nce of mana g in g a team 

* exposure to managing the Inventory Control function operating to BSS750/IS09002 standards 

* experience of negotiating and drafting contracts 

Applicants, preferably aged 30-40, most have presence and aedfiriHly and have their finger on the pulse of 
the business. This wiD be combined with strong teadeohip qualities and an ability to motivate others. The 
applicant most be thorough and rigorous, with an analytical mind and be able to meet ti ght deadlines. 

For a confidential discussion. please caD Ruth Guthrie or Jane Hanncy on 0753-673240 or send your details 
to Technocorn pic, 17 Liverpool Rond, Slough SL1 4QZ. Fax; 0753 538415. 


BBC 


Regional Business^ Managers 

The BBC World Service is the international service of the BBC. It reaches an audience of 
ISO nrHUon in and 88 other and is the international broadcaster with flu 

biggest audience In the world. 

The World Service has recently been reorganised into six regions, Asinftdfic, Sooth 
Asia, Africa and th8 Middle East, the former Soviet Union and Sooth West Asia, Europe and 
the Americas. 

We are now seeking to appoint six Regional Business Managers who will play a hay 
strategic, commercial and financial role as members of their regional management teams. 

Working to the Heads of Region and leading a small support teem, the Regional Business 
Managers will be xesponstble'fon 

* business plan n i n g, budgeting and forecasting; 

• managing the region's own resources and contracting for other resources in the BBC; 

" interpretation of management accounts to the regional man ag eme nt team; 

* accurate and timely input of regional data to the World Service's finance system; 

* advice on commercial initiatives; 

• commercial contract n e got ia tion; 

• financial and value for money analyses. 

The Regional Business Managers will have a strong professional line to the Pinanciaj and 
Commercial Controller of the World Service. 

Candidates ahonld preferably have an' accountancy or other business qualification. The 
ability to liaise well at senior management level and to gain the respect of editorial staff is 
essential. Previous experience of broadcasting la not necessary, but an interest in 
broadcasting and an international outlook are pre-requiaites. 

Salary according to qualifications and experience. Baaed London. 

Interested applicants should send a CV (quo te ref. 1 5334/F) to Ri.ii.i ittwnt Offten , BBC 
Wfldd Se rvic e, Bush House, 8teand, London, WC2B 4PH, by June 9th. 

WORKING FOX BQUALITT OF (UVOMTtXNZTT 




TREASURY ACCOUNTANT 

Join a market-leading team 
in a developing role 

Northampton c.£27,00C 

Within the UK's second largest building society, the Treasury Department at 
Nationwide has a vital role to play in managing the liquiefity and interest rate 
exposures of the group. This is a progressive Treasury which is continuously 
engmfcting new dealing opportunities and strategies within a well developed policy 
The department currently manages liquid assets, wholesale funding and 
dejftatives across a broad range of Instruments, currencies and markets. 

Pr lffllou wHI be responsible for managing the daily controls over dealing, 

and position risks, and for developing the accounting and management 
systems within Treasury. You will-also be responsible for regulatory 

're^^P^nd budgeting for the department. 

a progressive environment, we are looking for a proactive 
can lead and work with an enthusiastic team. You should be a 
l^p jn roiliy qualified accountant with at least two years' experience post 
4^^^fei-5pedfk knowledge of financial markets will be an advantage. 

to firet-dass career opportunities; we will offer a competitive salary 
; jpadcage which indudes subsidised mortgage and relocation assistance 
pj^SBpK&iate. Our dean air policy prohibits smoking on the premises. 
^^^^%>pHc«tion form please write to Jeremy Wicks, Human Resources 
^^^^&tionwide Building Society, Kings Pa* to** Moofton 
6U- Mease respond by 6 June 1994. 


The Company has revenues in excess of 
$21 billion operating in the manufacture 
of medium to high technology products. 
Based in Surrey the European Audit team 
is well established and respected within 
the Group. If you are not one to shirk the 
contentious issue or the serious challenge, 
then the world is your oyster — 

Interested applicants should write in 
confidence to Rod Bailey at 
Nicholson International, Search and 
Selection Consultants, Bracton House, 
34-36 High* Holbom, London, WC1V 
6AS alternatively fax your details on 
071 404 8128 or telephone 071 404 
5501 for an initial discussion. 


CORPORATE FINANCE 
EXECUTIVE 

London Age: 25-35 to£35k 

We are a leading corporate finance company 
advising acquirers, vendors and MBO teams on 
deals worth between £2 million and £50 million 
phis. To meet Increasing demand for our services, 
we need to recruit another executive: 

• who is a qualified chartered accountant with 
previous deal experience in acquisitions, 
disposals or MBOs preferably with a second 
European language 

• has worked for a quoted group, or a corporate 
finance department or a venture capital house 
in the City, after leaving the profession 

• keen to work in a demanding, entrepreneurial . 
and meritocratic environment, which offers 
opportunities to earn promotion and high 
financial rewards 

Please send your CV, details of your present salary 
and a daytime telephone number to Barrie Pearson, 
Executive Chairman. 

_ ... Livingstone Fisher Pic, . .. 

Acre House, 11-15 William Road, London NW13ER 


WVL IVINGST0NE FISHER 


The Acquisition & Disposal Specialists 
A Member of FIMBRA 


FINANCE DIRECTOR 
DESIGNATE 


EPPING 

An exciting yet demanding role at 
Alfred MPAlpine Homes East, an established and 
growing housebuilding company within the Homes 
Division of Alfred M° Alpine Pic, one of the 
UK’s major housebuilders. 

Reporting directly to the Manager Director, 
yon will be an important member of the management 
team to farther develop the business. 

Tour responsibilities will cover all financial aspects 
from the management of a decentralised accounting 
fimetion to the strategic planning of the business 
including the preparation of forecasts and budgets. 
Possibly a graduate with professional qualification, 
you will be self motivated* a team player and 
highly computer literate. 

The package will reflect the responsibility of the 
position and carries the benefits synonymous 
with a imyor company. 

Reply in writing, with full CV, to 
Steve Hosier, Managing Director 
Alfred M c Alpine Homes East limited, Se aland House, 
Hemnall Street, Epping, Essex CM16 4LG 


Management 

Accountant 

Jubilee Line Extension Project 

c£32,500 

One of the major urban raitwqy construction projects of our time, 
the Jubilee Une Extension will provide greatly improved transport 
between the West End, Docklands and South East London. It will 
create significant opportunities for new business and 
employment in Docklands and have a considerable impact on life 
in tiie capital 

Reporting dreettytothe Project Finance Manager, you wEL 
supervise a small but highly effective, team responsible for the 
financial monitoring and reporting of the Project. You will ensure 
that all reports are compiled In accordance with the relevant 
accounting conventions and the Project's control and that the 
reporting requrements of the Project, London Transport and the 
Department of Transport are satisfied 

Professionally qualified, with at least five years post-qualification 
experience, you should have proven ability in inflation and/or 
multi-currency accounting, knowledge of financial evaluations in 
the construction Industry and of the implementation and 
operation of multi-user computer systems. You will also need to 
have good team management and communication skills, be self- 
motivating and able to cope with tight deadlines. 

The role offers a large-scale challenge in an Important undertaking. 
The project team wHL be relocating shortly to first rate offices at 
Canary Wharf. 

The appointment will be offered Initially on a two year contract 
basis with every probability of renewaL There is an excellent 
benefits package which Includes generous travel concessions. 

Please write with full career details and daytime telephone 
number, quoting reference UMV/2207X. to Zoe Nicholas, 
Recruitment Consultant. Personnel Services, London Underground 
Limited. The Recruitment Centre. Station Approach. Baker Street, 
London NW1 5LD. 

VWxfcfng Towards Equality 


INTERNATIONAL 
FINANCIAL CONTROLLER 

Based Essex c.£4O t 000+Car+Benefits 

Our client, a major Pic, is seeking a graduate ACA to take control of 
all financial and part of the administrative functions of one of its 
subsidiaries which is in itself an international concern. 

The ideal candkJate would be in his or her mid 30’s with a track record 
that includes exposure to the spectrum of worldwide taxation, and be able to 
demonstrate the ability to take an international, as opposed to narrow 
national, viewpoint This is a role that demands a high degree of 
commitment from a confident and articulate person who is prepared to 
shoulder a large workload and meet the demands of a great deal of 
international travel. The ambition to progress to a senior management role 
within a forward looking company is essential. 

To apply, please send your CV to Tom Kerrigan at Austin Benn Executive 
Search & Selection, 15 Eastcheap, London EC3M 1BU by 13th June 1994. 


Executive Search & Selection Dtirision 


^Austin 
Benn 



ASSISTANT 

COMPANY SECRETARY 

The National Council for Vocational Qualifications was set up by 
Government to cs t a hW s h and maintain a comprehensive system of 
vocational qualifications accessible to everyone competent to reach 
standards a p p ro ved to meet modem employment needs. 
RESPONSIBILITY to the Director of Finance and Administration will 
be for managing central administrative services including pensions, 
legal and contractual functions. 

THE NEED is for demonstrable competence m the areas indicated 
backed by a relevant qualification. 

Salary scale to about £40,000, Civil Service type pension and benefits. 
London base. 

Write in confidence with CV to Richard Addis, Charity Appointments, 
3 Spiral %utL London El 6AQ. 

Charity Appointments 

<4 t qps tt m i tbarity jmty At mtaatory tutor. 


<177' 


■—MERIDIAN — 

CENTRAL & EASTERN EUROPEAN 
EQUITY ANALYST 

Our cBeai a major Internat io nal bank; is look i n g fora aenior Andy* 
to join their tnpanMng cqnky t fl vM on as Portfolio Manager for 
Eastern & Oerml European Equities. 

Use successful candidate will be degree educated, possibly with an 
MBA, end-will be cunc udy w o d dQga tA s ri a t an r VkcPieskletxleveL 


marfem ls a prerequisite; hgnlimitywth Hastem European 
«««■*«■«« i»nd cenml m t tfccrtn g acconcring la also valuable. 

A »v<wM « e namunsgattan package wffl be offered to the right 


' Jftcase forward your c.v. to Aka Sb cfllc.l d. 
dosing date for oppticatjpqs; 6th June 1994 

25 Museum Street, London yn Fax: 071 4873018 

MxexuzTMszrr consultants I 


\Z 7 .T F 7 FTT'.il")V,i^' 



j^vNai iomvide. 

,TJ!JI I. 1 "cd-W 


POLAND 

Eagfiah Chartered Accountant, bilingual English/Polish, 
seeks a senior finance/general management position, based 
in Wasaw. Hackaonnd includes present position as 
A i finance Director of a Polish bank. 

Reply in confidence to Box A2037, Financial Times, 
One Southwark Bridge, London,SEl 9HL. 



Internationally Famous Hospital 

Director of Finance 

An opportunity to shape the future 

The Royal National Orthopaedc Hospital NHS Trust 
has a long starring reputation as me of the leadng 
Ortho pa edic Centres. 

The development of ■nwatiue management and financial 
practices is no less impressive and is reflected in the strong 
financial performance of the Trust diring the last year. 

The chalenge is to take the Trust into the next century 
and the opportunty easts for an experienced finance 
professional to pfy a key role In the shaping of otr future. 

As an Executive Member of the Board you w* play 
a key role to developing and implementing the strategic plan. 

A quafted accountant you wB have a broad based 
management experience; possess communication and 
other interpersonal skis of the highest order, and be able 
to operate effectively as part of the management team. 

In exchange for your commi tmB t we offer 

•A salary of £45,000 

• Expensed car 

• Corporate bonus arid other benefits associ a ted w8h 
a me^or employer 

for father delate contact Jeremy Morrison, Director 
of Hunan Resources, Royal National Orthopaedc Hospital, 
BrocJdey Stsrmore, Wddx. HA7 4LP. 

Telephone 081-954 2300 ext 501 - arcnverptone out of 
office hours. 


The Royal National 
Orthopaedic Hospital 
NHS Trust 


Achieving Quality Through Equality 










/ 


£ 



XII 


FINANCIAL TIMES FRIDAY MAY 27 IW 4 


12 



Managing Service Quality 


To £35K + banking benefits 

The Chase Manhattan Corporation, with over $100 
billion in assess, is a global fagacal serAces c aasp ac y, 
accessing all the unporone wmU maActs far cheats as 
they raise capital, invest, stove and manag e their 

fuam if l w« 

At our impressive European operations and 
aAn i w iw t a ,i<Yn cctKK in Bournemouth, die accounting 
needs of an increasing number cf our European tocaoons 
are met by a team of high calibre pmfesionalj- As a 
response m this growth, we are creating a European 
Financial Accounting Service Centre tn provide a 
comprehensive and quality service more clfe cuu dy to 
both Gristing and new users. 

The position of Semes Quality Manager r e p resents a 
£3qoc opportunity to participate in die oration of dus 
Icemaeof excellence'. Reporting direedy to the Head cf 
Financial Accounting, you will be responsible for 
ah jarring the integrity , quality and effectiveness of the 
seavitts provided by the function - reviewing and 
ODninriag its activity and proc esses , recommending 
enhancements and implementing effective 
improv em ents - as well a offering practical hdp to 
senior management in extending the breadth and scope 
oftrs support. 


Bournemouth 

Suable candidates wdl probably be aocnunranw wnh 
5 years' post qualifying experience. A ettoag 
background in US/UK bank accounting wdl have 
been gained as other an auditor or is a (fathe red 
yfAmnng fUBCDOB. PC WlH fa Vldt 

creativity, isterpenoo) stalls a ad ideally a second 
Euro pe an bogage- 

is dafasgn , high ywifi fa wtO 

bring opportunities to progress widun the finance 
function or other areas of the Bank, 
b addition ® the safety quoted, the aaraowe range cf 
benefits includes car allowance, subsidised mortgage, 
non-coo tribunuy p emi oo. pnvase 1* ^ i wot ry v, jpd 
performance ^ymny. {Vetocaooa » wiH 

be provided where appropriate. 

Send your CV p die HR R es o u r cin g Manager. Chase 
Manhattan Bank NA, O mur l t , Bomemouth. BH7 
7D8. Please quote reference 0N6/FT on both your 
a pp l ic a t i on and envelope. Interviews «nfl be held m 
Boa mem orafa and London, dosing date 10 June 1994. 

CHASE MANHATTAN. 
PROFIT FROM THE EXPERIENCE."* 


o 

CHASE 


TREASURY MANAGER 



TONER 

GRAHAM 


M4 Corridor 


c £33,000 ♦ Bonus * Car 


KCOUNIUCr 


Our efeent is a major tacwniwaoil corporation - » darioa loader to * mntar of key mart**. The 
company’s renown far quafcy and exceBencc extends wtS btywid tei tmrfcobfl| and nwwfacrormj 
opabdities into aH areas of the business infrastructure - the finance ftmetion to no exception. 
Report to the Deputy Group Treasurer. an opportunity hes arisen far a hfch caBbre proltsttOftll » Join d* teed offlcitm 

Th* rote wffl provide spedaGsr expertise m cash and funding management Kxy rrapoortbtffoM wifl mchido; 

- Managing bank nka&tthtps a* pngnss** ne* fafaf %aurca 

- Conpofcng recrocoonof cctfiftaw Co ofromgc cash ond borrowing positions, and nwwivac group wttrtw Cora 
-Prwxfeig/roanoo/sjpportfbrma^ifl^^ 

* Ongoing a s sesa nent of copkol market ond dcriwwc pnxface 

Then will be slgpHicant liaison, both with operating subsidiaries and headquarter's financial management and with external 
institutions. 

cantfldates will be graduates and hive an accounting, M8A, or ACT qu alifi c a tion a wefi a a mMmutn of three years 
experience in an international treasury or banking operation. Excellent communication sJofls and « “hands on* approach are essential 
requirements. 

On offer is noc Just an attractive remuneration and benefits package but the opportunity to pty a tipfflcvK rok m th* future of 
this exciting and highly successful company, with prospects for advancement dependant upon merit, ncc tafth of Mfvtcat 

Interested applicants should write 

enclosing a comprehensive C.V„ in the J®* Graham CA at Tonor Grahsm, 

strictest confidence, quoting reference 9 Im pffM Square, 

XfCSSm: Cheltenham, 

GLS01QB. 



Chief Financial Officer 


Moscow 


To 5100,000 
Tax 

Efficient 

Pius 

substantial 

benefits 


m 


The Company t 

This world dass organisation has demonstrated enterprise and endeavour above that of its 
most challenging competitors. By using a unique management style they have harnessed 
local manpower and resources to produce a thriving trading environment that continues to 
grow in profitability and size. The Moscow operation of 160 staff is a key element of their 
global operations. The strategic importance of this office, related domestic companies and 
the ever increasing transaction levels has lead to the creation of this role. 

The Role 

Working within a matrix management structure, you will combine management 
responsibility and accountability at the most senior levels within the group. Western style 
financial management systems have already been initiated. You will direct the financial and 
administrative policy onto its next phase of development This will indude adding new 
dimensions to the accounting and control of foreign and local currency trading activities. 
Beyond this challenging position further senior management prospects exist throughout the 
group. 

The Person 

You will have a recognised accounting qualification alongside a minimum of five years 
experience in financial management and accounting systems. Your comprehensive technical 
knowledge and finanaal acumen will be supported by strong leadership skills and tire ability 
to persuade, influence and direct the line management of the company dear thinking and 
confidence in your own ability are absolute pre-requisites. Strong preference will be given to 
candidates with experience of working in Central and Eastern Europe and those with Russian 
language ability 

Mease send a full resume with covering letter to the address/fax below quoting reference 
FT2170. All applications will be treated in strictest confidence. 



Antal International 

Executive Rec^uiimeat 

Riverbank House • Putney Bridge Approach • London SW6 3JD 
Tel: +44 (0) 71 371 9191 • Fax: +44 (0) 71 73! 8160 (24 hrs) 


Finance Director 


W Yorkshire 

Our client is a highly autonomous subsidiary of 
an acquisitive, rapidly expanding UK Pic and 
operates through four divisions. Following the 
promotion of the present incumbent they seek 
to appoint a Finance Director. 

Reporting to the Managing Director, you 
will assume full responsibility for the financial 
management of the business. More specifically 
your duties will encompass management and 
statutory reporting, the development of 
computerised information systems and the 
maintenance of strict financial disciplines 
and controls within the company. 


c £35,000 + Bonus + Car 

Candidates, aged 32+ will be graduate qualified 
accountants with strong experience of financial 
management gained in a manufacturing 
environment along with a high degree of 
computer literacy. Well developed communica' 
tion skills along with a high degree of personal 
presence and maturity will be essential to make 
a significant contribution to the profitable 
development of the company. 

Interested candidates should forward a compre- 
hensive curriculum vitae to Stephen K Banks, 
ACMA, at Michael Page Finance, 6th Floor, 
Aquis House, Greek Street, Leeds LSI 5RU. 
Reference 188153. 


Michael Page Finance 

Specwlaa In Financial Recruitment 
London Bristol Windsor St Alban L ewli er tiew d Blronnyli n 
Nottingham Manchester teed* Glasgow & Worldwide 


HI 


i lK fr . rtttl. 


Finance Manager 

Food Manufacturing 

To £35,000 + Attractive Package West Midlands 

Exciting opportunity for a commercially focused young finance pro fes sio na l 
to strengthen die senior management team of a leading UK company. 


1 


THE COMPANY 

♦ One of the UK’s leading food monnfaccurers. 
jfmuItimiUion turnover. 

♦ Committed to investment in people and systems. 
Goal to achieve world dass manufacturing excellence. 

THE POSmON 

♦ A key member of the senior management team 
reporting to the site General Manager. 

♦ High profile, influential role. Contribute to the 
successful achievement of business objectives. 

♦ Facilitate and manage a programme of change across 
all areas of the business. 

♦ Ensure that financial controls maintain pace with 
operational development. 


♦ Steer cultural change and develop improved 
communication links. 

QUALIFICATIONS 

♦ Qualified graduate accountant, preferably CtMA. 
Likely to be in early 30’s. 

♦ Manufacturing background essential, ideally within 
the food industry. Must have experience of product 
and standard costing and an in-depth knowledge of 
computerised accounting systems. 

♦ Strong interpersonal and team skills. Intellectually 
rigorous and capable of driving strategic and tactical 
issues. 

♦ Resourceful and innovative with creative flair. A 
proven man manager with a hands-on approach. 


Please send foil cv, stating salary, ref GSM2M6, to NBS, Berwick House, 35 Livery Street, B i r mi ngham B3 2PB 


-G&i 


'tm 


N B SELECTION LTD 
a BNB Reroutes pic coupMi? 



BIRMINGHAM 021 2H Jttl 
AhcffeenttOt W8080 • Bria»HU72 291142 
Edinburgh QJ1 229 3250 •Cbofgv Oil 20M334 
Ltt&CSU 453*30 * London CV1 493 Wi 
Manchester 0625 339933 "Slough 0733 51 9227 




I 


Corporate Finance 




ACA 's /MBA 's/Lawyers 


Hill Samud Bank Limited is a leading British merchant banking . 
group with a strong presence in corporate financial advisory- ; 
services. HID Samiielhasaeen an extremely encouraginglevd 7 
of fee income In 1993 and continues to generate high levels of 
new business. 

Asa result of this increasing activity, MB Samuel is now seeking ^ 

to strengthen its corporate finance teams with the recruitment 
of up to three additional executives. Working within a- 
structured environment and Raising to Director level, the ' 
appointees will be responsible far the provision of services '■ 
throughout the U.K. and Continental Europe. Specifically, the . 
successful individuals wfll be exposed to capital restructurings, 
flotations, privatisations, acquisitions, disposals and die raising 
of capital, both in the public market and through private . 
placements. 

These opportunities will appeal to commercially orientated J 
ACA's, aged 24-28, with a 2:1 degree or better, and first bate 
passes in the professional examinations. Additionally. * 


Excellent Packages 



Hill Samuel 


The benefits include an attractive remuneration ^ 
performance related bonus, mortgage subsidy .a ntH 
opportunity to develop an outstanding career based entirely 
on merit. 

Applicants requiring additional information should contort £ 

David Craig or Brian Hamill in strict confidence tirt 071-287 V' 

6285. Alternatively, please forward a brief resoinf to Quf f’v..' ■: 
London office quoting reference DC1450. 

WALKER HAMILL 

Executive Selection. . ' ; ^ " 

29-30 Kingly Street Tel: 071 287 6285 ^ 

London W1R 5LB . Fax: 071 287 6270 - . 


Commercial role with a successful house builder 

HEAD OF FINANCE 


Home Counties 

Admiral Homes Lid are one of the largest and fastest 
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Reporting to the MD, and functionally to the Group FD, 
you will be a key member of ihe 
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A world dass leader in tdecommunicaiions, our client is now undergoing substantial expanskffl-- 
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FINANCIAL TIMES SURVEY 


RELOCATION 


THE UK 


Friday May 27 1994 


A new catalyst for change 

Activity has started to pick up, but the motive now is usually 
restructuring, writes Vanessa Houlder 


— W 


elocation activity 
within the UK has 
started to pick up, 
after several quiet 
years. But the moves now 
heuig made by companies are 
different in character from 
those which took place at the 
«im of the decade, when relo- 
cation activity readied an ear- 
lier peak. 

“The theme has been 
retrenchment, rather 
expansion," says Mr David 
Rees, a relocation specialist at 
accountants Ernst & Young. 

Companies are no longer 
being driven out of their exist- 
ing locations by high propert y 
costs and labour shortages, as 
they were in the late 1980s. 
Rather, the catalyst for many 
corporate relocations is the 
need to reorganise and ration- 
alise businesses. 

Restructuring is impor- 
tant in determining where mul- 
tinationals decide to locate. 
The creation of a single Euro- 
pean market has allowed com- 
panies to seek economies of 
scale and rationalise the struc- 
ture of businesses that were 
originally designed for more 
fragmented markets. 

Instead Of placing a natinwa? 
headquarters in each large 
European country, multina- 
tionals are establishing one 
European headquarters, like- 
wise, companies are tending to 
consolidate their European 
manufacturing operations into 
their most efficient or low-cost 
plants. 

Examples of thin trend 
includes the decision by Gil- 
lette of the US to cut excess 
European capacity by dosing a 
razor-blade factory near Seville 
and transferring production to 
plants in west London and Ber- 
lin. In another example, CPC 
(UK), a subsidiary of the US 
food group, is moving produc- 
tion of its Knorr brand of 
soups and cubes from near 
Glasgow to more modern 
plants in France and Italy. 

These upheavals within 
European industry have led to 
some acrimony between coum 
tries competing to retain and 
attract investment Last year's 
decision by Hoover of the US 
to stop making vacuum clean- 
ers at Dijon in France and 


S ome parts of the British 
government have made 
it as easy as they can for 
foreign companies to move into 
the UK - even to the extent of 
being ready to argue with 
those parts of the government 
which sometimes make it diffi- 
cult 

The clash is of cultures: the 
Department of Trade and 
Industry and the Department 
of Employment want inward 
investment to improve the 
overseas trade balance, to cre- 
ate jobs and broaden Britain’s 
economic and, particularly, 
manufacturing base. The Home 
Office, on the other hand, is 
rightly charged with enforcing 


move its operations to Scotland 
provoked charges that the UK 
was indulging in “social dump- 
ing" using lower wages and 
less favourable working condi- 
tions to lure the company 
away from Fiance, 

In recent years, the UE has 
attracted a disproportionate 
share of the EC’s inward 
investment In the last 
the UK is calculated to have 
taken, nearly 40 per emit of all 
non-EC investment made in 
Europe. After Belgium, the UK 
is home to a larger number of 
European headquarters of US 
companies than any other 
European country, according 


tres is becoming more tnt«n«iP_ 
“The UK is faring greater com- 
petition both within Europe 
and globally," says Ur Elias 
van Herwaarden of Plant Loca- 
tion International, a subsidiary 

ofPriceWaSsaS 
tors’ attention is to 

southeast Asia, he says. At the 
same time, Ireland, Northern 
France, aw* parts of Belgium, 
the Netherlands and the for- 
mer eastern Germany are all 
fighting harder to win mobile 
companies. 

Even if the UK continues to 
attract a large number of pro- 
jects coming fatn the EU, t he 
scale of investment may be 


IN THIS TEN-PAGE SURVEY 

P n poMow; Imfaririal w to Uons Papa 2 Property Pape 4 

Economic prospects; sfcfll fewefsTtotoconia Pages 

Public finance; qu^fy of Bte PegaB 

Road and rag, Chennai tunnel . Page 7 Advice, staff; Scotland .Page 8 
The it* i tnrfh; RiCW*. iW a pmHto o 


| trofaod, Wales and ttw saritHMSt. 

to Ernst & Young. 

Direct investment in the UK 
in 1992 amounted to £9.2hn. a 
£800m increase on the previous 
year. But inward investment is 
rannmg at markedly reduced 
levels compared with 1988 and 
1990. The UK wfll have to fight 
increasingly hard if it is to 
increase or even mamferin its 
share of inward investment 
coming into Europe. 

Advantages of investing in 
the UK include a relatively 

cheap and flexible workforce, 
factors that are reinforced by 
the UK’s opt-out from the EU’s 
“social chapter”. Cultural and 
language considerations also 
play a part In securing invest- 
ment from the US and Japan. 

But Britain cannot afford to 
be complacent According to 
Erast & Young's Mr Rees, 
potential relocators are often 
unimpressed by tirnUff s trans- 
port infrastructure arid the 
skills of its workforce. More- 
over, the perception that the 
UK is not “at the heart of 
Europe” worries some poten- 
tial investors. 

Competition from rival can- 


tight immigration controls to 
prevent foreigners from taking 
jobs that could be done by 
European nationals. 

Difficulties can therefore 
arise when an inward investor 
from, say, the US ox south-east 
Aria wants to bring in mare 
key workers than immigration 
officials think may he strictly 
necessary. About 18 months 
ago, growing tensions forced 
all parties to agree procedures 
to try to smooth problems. 

The rules, however, are 
unpub lished because each case 
is judged on its merits. How- 
ever, they are pragmatic and 
decisions are at least now 
made quickly, where previ- 


Page 10 \ 

dfanmiahhig Mr van Herwaar- 
den notes that there is an 
increasing trend for US compa- 
nies to embark on «wrmTiw pro- 
jects, valued at less than $sm. 
“Companies are moving step 
by step. There is an increased 
emphasis on flexibility with 
respect to adapting to chang- 
ing market needs and circum- 
stances, " he says. 

Similarly, if there is a second 
wave of investment from 
Japan, it is likely to stem from 
supplier and sub-contractor 
activities rather than large- 
scale projects. The number of 
large Japanese deals has 
diminished, partly because so 
much Investment was brought 
forward before the creation of 
the single European market as 
a result of fears of a potential 
“Fortress Europe”. 

Competition for investment 
has also increased within the 
UK. Last year’s redrawing of 
the assisted areas map, when 
the government decided for the 
first time to give help to parts 
of T-nmdo m and the south and 
east coast has increased the 
pressure on long-standing 


assisted areas such as the 
north-east 

Another reason why it is 
harder for outlying parts of the 
country to attract I n vestment 
Is that some key factors driv- 
ing companies out of London 
and the south-east, such as 
labour shortages and high 
property costs, have dimin- 
ished in importance. - 

The gap between the cost of 
renting property in different 
parts of the country has nar- 
rowed. Whereas rents in the 
City of London have halved 
since 1990, those in, say, Man- 
chester have hardly 'Hie 
1995 rating revaluation, winch 
will shift the rates burden from 
the south to the north, will fur- 
ther erode potential cost 
savings for companies moving 
out of London. 

As a result, the incentive for 
companies to long- dis- 
tance moves has diminished. 
Changes to the tax treatment 
of relocation expenses have 
also tended to discourage such 
moves. 

The cost of relocating 
increased substantially last 
year when the government 
introduced a SSJOOO ceflmg on 
taxable allowances an rekxatr 
tion expenses. The impact, 
however, was substantially 
lessened this April when the 
Inland Revenue decided that 
tax would not be charged when 
an employer buys an employ- 
ee’s wilting Vwwnft 

The prospect of catting prop- 
erty costs is the single most 
important reason for reloca- 
tions, according to a survey by 
Jones Lang Wootton of large 
companies that have moved 
out of London over the last 
decade. 

But increasingly, operational 
considerations, such as the 
desire to consolidate busi- 
nesses, are becoming more 
important The JLW survey 
found that operational consid- 
erations accounted for half of 
the large corporate moves out 
of London last year, compared r 
with a third of moves between 
1983 and 1992. 

Large-scale corporate 
restructuring and rationalisa- 
tion promise to be increasingly 
important catalysts fox reloca- 
tions over the next few years. 




British 'T Mflenmr n nnlcatintis, 

for example, is considering 
moving up to 10,000 jobs out of 
76 London offices over the n*rt 
three to five years to locations 
in and around the Mffi. As well 
as cutting property costs, the 
proposals would allow BT to 


reduce its employees’ commut- 
ing times and to pioneer new 
forms of working based on 
advanced triantmimnwirflHiina. 

Overall, the pace of UK relo- 
cation appears to be picking 
up. Last year, just eight com- 
panies moved more than 100 


lan Hamilton Fazey on problems - and the agencies that solve them 

Pitfalls for foreign investors 


ously people and companies 
were sometimes kept waiting 
for months, much to .the frus- 
tration of inward investment 
agencies and promoters. 

Basically, criteria for the 
start-up phase of an inward 
investment - when a high pro- 
portion of the workforce may 
need to be brought in from 
abroad to get the operation 
going and train their LocaDy-re- 


cruited successors - are 
relaxed. Short-term training or 
liaison posts also get sympa- 
thetic treatment, even if there 
is long-term rotation of foreign 
personnel in th em 
However, the proportion' of 
jobs to be held eventually by 
foreign nationals on a perma- 
nent basis is likely to involve 
more negotiation, just as it 
would be, say, for European 


companies operating in the US. 

The rest of the process of 
inward investment is straight- 
forward - and designed to 
make it as easy as possible for 
medium -sized or gmnUer com- 
panies which do not have the 
in-house expertise, or ready 
access to consultancy services, 
of bigger companies. 

The Foreign Office and 
Department of Trade and 


Industry operate a global net- 
work of commercial staff 
attached to British embassies 
ox, in the US or Japan, in spe- 
cially set-up trade advice 
offices. 

Some bodies, such as the 
Welsh Development Agency or 
some of the English regional 
development bodies, also hove 
promotional offices of their 
own in prime target markets 


jobs out of central London. But 
this year, twice as many such 
moves are expected. A further 
II moves have already been 
planned for 1995 and 1996. 

As the worldwide recession 
lifts, the nnwibw of multina- 
tional and domestic companies 


such as North America and 
south-east Aria. 

Tn addition, they — and the 
economic development units of 
individual counties, cities and 
towns - often take stands at 
big fair s and exhibitions. 

However, any company 
wanting to know where to 
begin, a systematic review of 
UK inward investment options 
is best advised to start with 
the commercial section of the 
British embassy, especially if 
language is a problem. This 
win usually trigger a follow-up 
visit by a UK consular officer 
familiar with the processes and 
options. 

He or she will prepare a brief 


planning relocations is likely 
to increase. But competition 
from other European centres 
and the diminished attractions 
of moving long distances 
within the UK wfll add to the 
pressures as the regions try to 
attract new investment. 


for the Invest in Britain 
Bureau, part of the Depart- 
ment of Trade and Industry. 
From there, the inquiry wfll be 
fed into the UK’s internal net- 
work of regional agencies, 
development corpor a tions and 
local authority economic devel- 
opment officers. 

Britain has attracted a lot of 
inward investment in the last 
10 years and those involved 
have become good at providing 
the right sort of advice. They 
are also salespeople, so afl 
niaftnw sho uld be treated with 
due caution. But because there 
is also competition between 


Continued on Page 10 


. . - \.v 


\N 





Every business wants to be dose to 
its customers. 

And when you're located in the 
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The Black Country is right 
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single day's HGV drive. 

To help get you on die road, there’s 
quick access to no less than five of the 
UK's main motorways. The M5, M6, 
M54, M42 and M40. 



Better still, by next year, two 
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Of course, getting to and from 
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| Moving in is just as 
straightforward. 

From planning to funding, 
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of fuss. 

So, where better for a business 
to be than at the centre of things? 


— i » — DEVELOPMENT CORPORATION 

TELEPHONE 021-511 2000 


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/■ 







n 


FINANCIAL TIMES FRIDAY MAY 27 1994 


RELOCATION IN THE UK 2 


12 


Philip Coggan looks at how Britain compares with the rest of Europe 

Population grows grey 


Tbe UK population, is growing. 
And, like that of much of 
western Europe, it is also 
greying. 

But while the increase in the 
pensioner population may 
cause problems in the middle 
of the 2lst century, there is 
some good news in the shorter 
term. 

The number of people of 
working age (defined as men 
aged 16-64, and women aged 
16-59) is still increasing, 
according to the Office of 
Population Censuses and 
Surveys. From around 35dm in 
1992. the working population is 
expected to increase to around 
37. to by 2011, while the overall 
HE population grows from just 
under 58m to 6L25m over Hip 
same period. 

The birth rate in the UK has 
edged up in recent years after 
the lows of the late 1970s and 


Hie UK birth rata has 
edged up in recent years 
but the fertility rate is 
still below the 
replacement level 


early 1980s; live births per 1,000 
people were 13d in 1992, 
compared with an average of 
129 in 1981-85. 

Nevertheless, the fertility 
rate is still below the 
replacement level of 2.1. 
Children were 25 per cent of 
the population in 1971, but are 
expected to be only 18 pm* cent 
in 2031. 

It is only a low death rate, as 
fife expectancy marches ever 
upwards, that keeps the 
population growing. 
(Immigration plays a small 
part The UK had a net inflow 
of 34900 people in 1992J The 
average male bom in 1990 had 
a life expectancy of 73 years, 
compared with 679 years in 
1961; female life expectancy 
grew from 739 to 789 years 
over the same period. 

The UK's population profile 
is not too bad in European 

terms. In of Tnamtaminp 

a future workforce, the key is 
the number of those aged 0-19 
as a proportion of those people 
of working age. Here the 
champion is Ir eland, which has 
more than one child for every 
person of working age, whOe 
the UK ranks seventh out of 17 
countries surveyed by the 
OPCS in 199Q9L 

Bottom of the league is 
Germany, which has only one 
child for every three people of 
working age. 

The number of 16-year-olds 
joining tbs UK wor kfo rce has 
been steadily declining from a 


Dependency ratios 

Proportions of those dependant on population aged 20-59, 1990/91 

fiS 

o ** 

n 



An* OIBa» o» ftwUtton. 


peak of 936,000 in 1981 and may 
have reached a trough of 
628,000 in 1993. It is now 
expected to rise gently during 
the rest of the century. 

The UK does not rank quite 
so well on the greying factor. 
There were 39 people aged over 
60 for every 100 of working age 
in 1990-91, the third highest 
total of the European nations 
studied. (Sweden was the 
greyest with 43 people ova- 60 
for every 100 of working age.) 

According to the OPCS, 
there were 8.93m people of 
pensionable age in England 
and Wales in 1981, 18 per cent 
of the total; by 1991, there were 
9.45m, 189 per cent of the totaL 
And within the ranks of the 
pensioners, the number of 
people aged over 75 increased 
from 293m @9 per cent of the 
total population) in 1981 to 
392m (7.1 per cent) in 1S9L 

The growing numbers of the 


elderly will undoubtedly create 
social costs (particularly In 

tep"« of health and jwreinn ? 
provision) which will probably 
be reflected in higher taxes for 
the working population. 

However, greying is a 
European-wide problem. About 
a fifth of the European Uhlan 's 
320m c iti ze n s are aged over 60 
(with 20m aged over 74). By 
2010, the proportion of over-60s 
is projected to grow to 23 per 
cent and to 25 per cent by 2040. 
The only countries expected to 
have a pensioner population of 
less than 20 per cent in 2010 
are Portugal and Ireland. 

Steps may be taken to 
alleviate potential problems by 
increasing the pensionable a ge. 
In the UK, the plan is for the 
retirement age for women to be 
increased to 65, to matrh that 
of men. This change will be 
phased in between the years 
2010 and 2020. 


UK population (thousands) 


Mid-year figures 

UK 

England 

Wales 

Scotland 

N Breland 

1901* 

52,807 

43.561 

2,635 

5,184 

1.427 

1971* 

55,928 

46.412 

2,740 

5.236 

1,540 

1976* 

56£16 

46,660 

2,799 

5,233 

1,524 

1981* 

56,352 

46,821 

2,813 

5,180 

1,538 

1968* 

56,850 

47,342 

2^20 

5,121 

1,567 

1987* 

57,008 

47/88 

2,833 

5,112 

1,575 

1988* 

57,159 

47.633 

2£S4 

5.094 

1.578 

1989* 

57,352 

47,809 

2J863 

5,091 

1,583 

1990* 

57,581 

47,992 

2.878 

5.102 

1.589 

1991* 

57,801 

48£08 

2^391 

5,107 

1.594 

1992* 

57,998 

48^378 

2,899 

5.111 

1.610 

of which, percentages 





0-4 

6.7 

6.7 

63 

6.4 

93 

5-15 

13.7 

133 

14.0 

13.7 

17.7 

16-44 

42.0 

42.0 

393 

42.6 

4Z1 

45-64M/59F 

193 

19.3 

193 

193 

173 

65MI60F-74 

11 A 

113 

12.6 

113 

93 

75 and over 

7.0 

7.0 

7.4 

6.4 

S3 

Projections (based on mld-1992 population estimates} 


1896 

58.784 

49.067 

2&30 

5.146 

1,842 

2001 

59.800 

50.023 

2366 

5,143 

1367 

2006 

60.610 

50,814 

2393 

5,115 

1387 

2111 

61.257 

51.458 

34)13 

5X377 

1,709 

of ¥4tkh, percentages 





04 

6.7 

5.8 

5.6 

53 

6.7 

5-15 

133 

133 

123 

133 

153 

1644 

37.4 

373 

353 

332 

39.7 

45-64M59F 

23.6 

23.6 

233 

243 

212 

65MJ60F-74 

72.0 

113 

13.4 

12.4 

10.7 

75 and over 

73 

73 

93 

73 

6.4 






The ptfec* . to the 

OPCS, is that the of 

pensioners in the UK will peak 
at 159m in 2038. compared 
with a total of 169m toid the 

change not occurred. 

Within England, population 
rose in every regkm bar two 
between 1981 and 1991. The 
exceptions were the north and 
the north-west, which 
experienced a fell of 0.1 per 
cent per year. East Anglia and 
the south-west saw the fastest 
growth rates, at 09 and 07 per 
cent a year respectively. 

hi 1992, the Bn gBgft region 
with the highest p r opo r ti o n rtf 
people at wo r k ing age was the 
southeast with 6L2 per cent 
(64.1 per cent in greater 
London itself). TheregkHi with 
the lowest pro po rtion was the 
south-west, with 599 per cent. 

In terms of the future, the 
region with the highest 
proport i on 0 f those under 16 is 
the northwest, with 2L2 per 
cent, while the southwest is 
the lowest with 199 per cent 

Looking at the rest of the 
UK, Northern Ireland has a 
higher proportion of children 
than any English region, at 
25.7 per cent, while Scotland 
beats all the ftt gtfch regions in 
terms of the proportion of 
people of winking age. at 62 
per cent 

OPCS projections show that 
in 2011, the southeast region 
will still have the lowest 
proportion of pensioners and 
the highest proportion of those 
of working age in England; the 
south-west wiQ still be at the 
opposite end of the scale on 
both counts. The south-east 
will also have moved to top the 
scale in terms of the 
proportion of children. 

However, a study of 
migration flows shows that 
people have been leaving the 
south-east for the rest of 
England, in the five years 
between 1988 and 1992, the 
south-east experienced a net 
migration outflow to the rest of 
the UK of 206900. In feet, all of 
that and more was a loss from 
greater London, which had an 
outflow of 250400. 

The region which saw the 
biggest inflow was the 
south-west, which gained 
119.000. The east midlands and 
East Anglia both gained, while 
the west midlands and the 
north-west woe net losers. 

Within the UK as a whole, 
there has been a small 
migration from England to the 
other three countries. And 
there has been a steady shift 
away from cities towards more 
rural areas. Perhaps as the 
elderly retreat from the towns 
to retire to “rural bliss", tins 
trend will continue. 


B 


ritaln's industrial 
relations system - once 
notorious in the outside 
world for its wildcat strikes, 
obstacles to change and low 
productivity - a seen as an 
increasingly important factor 
in the country’s attractiveness 
for inward investors. 

In the words of a recent 
study of the UK manufacturing 
sector's competitiveness 
produced by the House of 
Commons trade and industry 
committee, it is “now widely 
regarded as a competitive 
strength". 

Working days lost through 
strikes last year were the 
lowest since official records of 
industrial conflicts began in 
1891 - following on 1991 and 
1992 which were themselves 
remarkably trouble-free. But 
that ahmn fl oe s not nvphrin the 
new mood of optimism about 
labour performance. More 
important has been the 
accumulation of evidence that 
suggests attitudes towards 
workplace innovation have 
been transformed. 

This has led to the 
f widespread removal across 
! much of industry of the old 
j “them" and “us" divisions of 
j the shopfloor. with the 
outlawing of the dosed shop, 
t dismantling nf demar cation 

\ lines between jobs and the 
? removal of restrictions on 
> recruitment An increasing 
| number of companies are 
; replacing adversarial attitudes 
j with a new spirit of 
! partnership in the workplace. 

; Of course, the techniques of 
: Homan Resource Management 
} are still hardly the norm in 
; British industry. "The 
! empowerment of employees 
• has taken root in only a 
j minority of UK manufacturing 
! firms," admitted the trade and 
- industry committee report. 

1 But the recent experience of 
a wide range of foreign compa- 
nies operating in Britain sug- 
gests workplace change based 
an consent and co-operation is 
by no means uncommon, 
either. In recent months a 


How the industrial relations scene has changed 

Workplaces open up 
to innovation 


Unit labour coats te nnntaotHrlng (1991) 



* ft-M- costs 

nodMMijr 

ttok isbow costs 

UK 

100 

100 

100 

US 

115 

175 

68 

Jrtpan 

98 

150 

05 

Germany 

124 

140 

80 

Rwot 

114 

139 

82 

Italy 

128 

121 

toe 


number of them - Ford. Nis- 
san. Toyota. Sony - have been 
norndfap the achievements of 

their UK plants before MPs in 
a number of separate inquiries. 

Or Paul Marginson. of the 
School of Industrial and Busi- 
ness Studies at Warwick Uni- 
versity. argues multinational 
companies are attracted to 


lower than m Germany but are 
higher than in Prance and 
Japan. 

The Wg difference has in the 
so-called "on -costs" covering 
social welfare, training, holi- 
days and welfare benefits 
which are mat in the UK 
mainly by the state or the 
employee. 


Hhniifictnring mmpfugonf labour costs 

Production worker* 1992; US S per hour Mange 


Pay for time 
worked 

Hoftday m 

etc 

Non-psy 

coots 

Total 

tebour costs 

Jspon 

9.44 

4.61 

2.11 

16.16 

US 

11.45 

1.07 

3.65 

16.17 

Germany 

14.47 

SiS 

5.B2 

25.94 

Franco 

923 

2*4 

4.81 

1688 

UK 

10.56 

1.70 

243 

14.69 



JWMUI 

MMearutaefa 

MK 4rtS tW9 


Britain nowadays because they 
face “fewer statutory con* 
straints" in the way they han- 
dle labour than in mainland 
European countries. As a 
result, there is “greater scope" 
for them to introduce "innova- 
tory practices". 

He also points to the attrac- 
tiveness of the UK's low labour 
costs for some inward inves- 
tors, This is not so much a case 
of low pay. Hourly earnings in 
the UK remain substantially 



In the new wave of Assisted areas, Swale is the 
nearest to London - just 40 miles. It has one of the 
largest deep water ports in the UK - Sheerness, 
with a twice daily Ro-Ro/Liner Class Superferry 
service to the Netherlands and available industrial 
units, development sites, office and hi-tech 
research facilities. 






Swale’s business community, 
based in Sittingboume, Sheerness 
” (Isle of Sbeppey) and Faversham, is 
well-connected to both Europe and the UK 
with a wealth of manufacturing experience. The 
Borough has all the attractive benefits of a semi- 
rural area and Kent’s only blue flag b e a ch . 



Office workers at lunch on Canary Wharf, London 


Companies operating in 
Britain have a much lower 
non-wage labour coat burden 
to carry than those in any 
other European country except 
Ireland. This provides the UK 
with a distinct cost advantage 
compared with its main trad- 
ing competitors. 

The latest comparative 
labour cost statistics (taking 
into account exchange rate dif- 
ferences) compiled by the US- 
Bureau of Labour Statistics 
indi cate that the UK manufac- 
turing employers’ labour costs 
In 1932 averaged $14.63 an hour 
compared with $i&16 an hour 
in Japan, $16.17 an hour in the 
US and $2594 an hour in Ger- 
many. 

Many of the public agencies 
are keen to point to the low 
cost of labour as an attraction 
for inward investors. As Locate 
in Scotland declared: “Wages 
and salaries in Scotland are 
lower than the UK average 
Indeed, Scottish hourly scales 
are among the lowest in 
Europe, especially in manufac- 
turing. 

"Total on-costs are lower as 
a percentage of salary in Scot- 
land than in other countries, 
with the cost of both company 
and statutory costs adding 
around 25 per cent (only 7.1 per 
cent of this being due to statu- 
tory requirements) to basic sal- 
ary. This compares to over 40 
per emit in some other coun- 
tries." 

The promotional effort also 
proclaims the fact that Scot- 
land “has one of the most pro- 
gressive and flexible employ 
meat regimes in Europe". 

The document points out 
“Part-time and shift working is 
common and there are no 
restrictions on the use of tem- 
porary labour. These condi- 
tions are considerably different 
from the more regulated envi- 
ronments in many other EC 
countries." 



For further information on the new business opportunities & 
details of our own relocation grant scheme, contact: 


Peter Jolley or Brenda Chester 

ECONOMIC DEVELOPMENT UNIT 

Swale Borough Council 
East Street • Slitingfoourne • Kent ME10 3HT 
TeL (0795) 417398 - Fax: (0795) 417217 


costs 



skills 


Mastering the Art of Juggling 

Fig, 1 


If you’re relocating executives to the UK_ 
Don’t forget the children! 

We’ll give them a world class education 

The American Community Schools ensure expatriate 
children do not get left behind: 

• Two superbly-equipped schools n 
stately settings dose to London 

• Pre-kindergarten to Grade 13 
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TAOBzaaasi ft* osw wtm 


(Leave the homework to us 


,r We moved to York 
because we don't believe London 
is the centre of the universe. 
Transport and communications are 
excellent, we found idealpremises for 
our work, and we are saving money 
on selection of staff . " 

lane Carter 
Gerard Secretory 

IMfcd Notions AmoooSoh Hrhnw fa d Service) 

Howmvor, don'* log* 
toko oar word for §*. 

Tbfce the trqm free end me for vouneff 


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Telephone 0904 653655 
WVR call you to drscois your naedi. 

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THE DST7NCT ADVANTAGE 




Promotional material for 
Inward te m w* tote Wafes t» 
similar in tone. “Wain has 
benefited from a combination 
of to war relative wage coats 

Si 

Devefemant Agency. 

ft assarts that unit 
coat s are naariy 10 par 
lower than the UK average^ 
“making Wales by tar the meat: 
cost-competitive region in tire 

UK. - - -t; 

On a dHfareai tech, 
Northern Development 
pany gq&mkm the 
role of rente unions to 
nfe s te recto as 

partners!*. 

A nodal study 
inward invasion 
rattan 
sire* 

labour inpureutag 

phy appropriate 

needs'' white 79 psrcttt 
sign companies 
1992 Mid tndustttel 
their northern 
“comparable to or much better 
than their plants elsewhere 1 
In feet, tow labour costs 
by no moans a 
for many Inward investors, 
the Commons 
pointed out, there only give 
Britain “an Important 
short-term compe ti tive advan- 
tage. tha breathing space to 
increase the UK’s competitive- 
ness in other areas - , 
ft added: “The efficient use 

of labour and the raising of tit 

value through better 
and training ultimately matter 
fer more than low labour 
coats. - 

Indeed, lower productlvltyta 
the US means unit labour 
costs remain hi gher t^an 
Trance, Germany and Japan. 

This suggest* Britain's 
petltlvo advantage stems &$£ 
its low wage, labour Intsnrivu ' 
low skill base. Moreover, tot. 
employment element in total 
industrial costs is quite smafi^ 
commonly 25 per cent in manu- 
facturing. . 

Robert Taylor 





Sedsawor In Soocnet b one 
oftbeUICspmaferlocariORlftv 
tirtritatta centres on On MS 
motorway it jondtom 22, 23 an* 

24 with atit* up to 100 acres d 
very competitive aricts. 

wuH Hod m Economic 
Ondepmat Untiwfih a rigpeoti; j 
piototiiieH philosophy 

Cafl Mike French oo S278 435M0 
for the facts. AUcrrufivety ten 
6218 44407G, send the coupon or 
attach your baton art to this « 



Se dtyz moor 


rib; Mfc freock Xcooomk 
. Dc w lo ptonn t Offlcec Snhenwo 

| Kjfcrkt Couodl, FKE&tot 
1 BrUgvmtee Somertet l&fi 38K 

I s* the ba ton 

■ Sotigefloor b SomeoeL •' 


L 


-if 


l w ~ — — q 


. 






T ‘MES FRIDAY MAY 

vJSSSif. 'c'i ' % '• . • 'tv '{••••'«” -v _ 


27 1994 


SRI 


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ST^iii W-r y’STKt'JoB 










(t* :* v. <i **w5 7- ».< • 


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j.WiV*. •'• # '• .v** : •.••'V f ' ■ • V •► '•••• ’ i l .<.;i¥v.' ' • /’ •' i •' v. 

;V£i.-: : 'kJk ^■'■'r 

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'■■. •'.'.'"'I Ms ! * 




•Y ' ' : i./^ , ‘: > ' 




f-'V : ■ 



Should’ve 

talked to CNT 


Most of CNTs land already has outline planning permission. 

In the new towris where our land lies, good design practice a 
was the norm from day one, creating an environment with 
good communications, amenities and infrastructure. 

And providing a landscape in which beautiful 
^fren startlin g buildings naturally fit. 

l||f We have government authority to provide If ^Bi 
||i§t ailed planning approval and our relationship with 
||1^1 planners means we’ll try to find ways to help you^JJg 
relieve your dream building. '%' > 

l^l 'Or if you want to re-locate even faster, we own all kinds -j 
-ofe^iish premises for sale or rent - from small units fip landmark 


buildings perfect for corporate headquarters. 

Ik. So don’t compromise No matter what stage of relocation 
iik you’re at, give us a call, we could help - and our services 
^^^^"are free. 

Fill in the coupon and send to CNT, Box 925, Milton Keynes MK9 3PF. • • ■’ Gflll 

FT/C/27/5 

B^^Name: . . 0800 

721 721 

F r fiedFax 

Aadress: -0800 

Pnstnvfo: T.J Mn- 221177 


Address:. 


. Postcode: 


.Tel. No: 



Land and premises with added value. 



■7 Corby Crawley Harlow Hatfield Hemel Hempstead Milton Keynes Northampton 
^kebheredale Stevenage ..Telford Warrington Washington Welwyn Garden City 


'a:-,.: 






IV 


FINANCIAL TIMES FRIDAY MAY. 27 19V4 


RELOCATION IN THE UK 4 


Vanessa Houlder on the recovery of the property market in different parts of the country 

Regional gap in cost of 
renting gets narrower 


Rental p er f orm a nce 


Total growth* 

tor inflation) 


The UK property market has 

begun its recovery, after the 

deepest downturn since the 
war. But the legacy of the 
property recession will have a 
lasting impact on companies 
which are considering a 
relocation. 

The fall in property costs 
over the past three years has 
relieved some companies of 
pressure to uproot from their 
easting locations. Moreover, 
the incentive for a company to 
move long distances has 
rimrinls hpri, as the gap between 
the cost of r enting property in 
different parts of the country 
has narrowed. 

The property recession hit 
London far more severely than 
most regional centres, helping 
to even out some of the 
formerly sharp variations in 
property costs and supply 
around the country. 

For example, in the City of 
London, which was part- 
icularly badly affected by the 
downturn, top quality property 
can be rented for less than half 
the £70 per sq ft it fetched at 
the peak of the market in 1988. 
In Manchester, by contrast, top 
rents have scarcely fallen 
during the recession from a 

Many tenants are locked 
into leases which require 

them to pay far more 

than the market rate 

peak of £21 per sq ft. 

Another consequence ot the 
property downturn which has 
reduced the flow of relocations 
is that many companies are 
unable to move premises 
because of the difficulty of 
disposing of existing leases. 
Many tenants are locked into 
leases which require them to 
pay for more than the market 
rate, creating difficulties in 
assigning leases to another 
tenant. 

Nonetheless, companies 
which have the freedom to 
move have the opportunity of 
securing property at rents 
dose to the bottom of the 
market. Office rents have 
fallen by about 40 per cent 
from their peak a nd industrial 
rents are down by about 20 per 
cent, according to Hillier 
Parker, chartered surveyors. 

In most parts of the country, 
asking rents are static or 
falling. But gradually, as 


Destination of large moves from central London Mate 


1983-1993 
Suburban London 
React ot South East 
South West 
MiiSands/E Angfia 
North West 
Yorfis/HuraOerslde 
Scotland 
Wales 
North 
Northern Ireland 


Sonar Joo*a Lang Woatan fMswwcft. Oattotr 1933 




CiRwft f 
Ni'ic— o> upon tjna 

TVlnh— IHbll n~ — *■ *** »*- 


Other 7% 


tenant demand increases, the 
incentives on offer from 
landlords, such as rent-free 
periods and cash contributions 
for fitting out costs, are 
declining. Most tenants are 
still able to negotiate relatively 
flexible leases, although as 
supply and demand returns to 
balance, landlords will be 
anxious to return to 25-year 
leases, with upward&only rent 
reviews at five-year intervals, 
which are traditional in the UK 
market. 

Signs are emerging that 
pockets of the London market 
may recover mure rapidly than 
other parts of the country. The 
vacancy rate for Central 
London office property - of 
which ZL5m sq ft is available - 
has fallen from a peak of 18 per 
cent in mid-1992 to 12 per cent, 
according to DTZ Debenbam 
Thorpe, property advisers. 

Brokers at Paribas Capital 
Markets predict that rents for 
the best modern office 
properties in London could rise 
by more than 30 per cent this 
year, although poorly-located 
and older buildings will 
continue to decline in value. 

Outside the south-east, the 
main office markets have been 
relatively stable, as a result of 
fewer developments during the 
1980s and a lower impact of 
recession on office employment 
levels. But with a smaller pool 
of potential demand, the prov- 
incial cities may experience 
less upwards pressure on rents 
than in London. 

The availability of property, 
as well as its cost, is a crucial 
factor in determining a reloc- 
ation decision. After several 
years when development 
activity has been at a low ebb, 
there is a shortage of modem 
offices in severaL cities. 


According to Chesterton, the 
property advisers, “regional 
centres offer little to potential 
relocators in terms of readily 
available office space. Major 
requirements exceed supply in 
many regional centres." 

Birming ham , for instance, 
has some of the lowest levels of 
available space of any large UK 
office centres. At the end of 
1993, there was about 789,000 
sq ft of empty space - 
available at a cost of up to £20 
per sq ft - out of a total 
market of 16m sq ft 

Developers are gradually 


getting back into the market 
In a recent report, Chestaton 
estimated that just 2.7m sq ft 
of speculative development 
was under way in London and 
3-2m sq ft in regional centres. 
Although more developments 
are now starting, activity is 
likely to remain at a low ebb 
while tenant demand is 
uncertain and there is a 
shortage of femfe fipangy for 
speculative schemes. 

In the industrial sector, signs 
of increased tenant demand are 
slowly be ginning to appear. In 
January, the availability of 


offices from contra! London 



— n — 


MOW 


• Completed Li 
1 1963-1992 , 

■ Computed !-: 
1963 j ' 

A Committed !'? 
1994-1990 * - 

■ ....... it:.. .j i 

W* .S’"* • 

»■- • A J 

I& : ■ V*V ■■ • ; 



empty premises began to foil 
for the first tune since 1989. 

According to King St urge, 
chartered surveyora. a total of 
182m sq ft of industrial 
property is available to let. 
Demand is concentrated on 
new buildings, which account 
for just 9 per cent of the total 
available space. Tenant 
demand has been strangest for 
large distribution warehouses 
adjacent to motorways. 

The availability of industrial 
space is at its greatest in the 
south-east. Wales and East 
Anglia. But In the West 
Midlands and the south-west, 
vacancy rates are tighter and 
agents believe there could be 
some rent increases as soon as 
the first quarter of next year. 

Another factor affecting 
relocation decisions is the 
impact of the revaluation of 
the Uniform Business Rate in 
19%. which is based on rental 
values in April 1993. 

The revaluation is likely to 
shift the rates burden from the 
south to the north. In London 
and the south-east, where rails 
fell sharply between 1988 and 
1993, reductions in rateable 
value could be between 40 and 
50 per cent, according to James 
Capel the broker. In regional 
centres outside Iiondon, where 
rents peaked later and 
subsequently underwent more 
modest falls, the rates burden 
is set to increase. 

Herring Baker Harris, a firm 
of surveyors, has estimated 
that the proportion of the 
busin e ss rates bQl shouldered 
by industrial occupiers will 
rise from 18 per cent to 22 per 
cent, while that borne by 
retailers will remain broadly 
stable and that from offices 
may decline from 29 per cent to 
27 per cent 



-50% 

aoureiu JcoMlMaWirtto 

The shift in the rates burden, 
together with differential foils 
in rental costs, has tended to 
even out property costs across 
the country. As . a result, 
companies needing to relocate 
their premises are tending to 
move shorter distances. 

Jones Lang Wootton, 
chartered surveyors, believes 
that about two-thirds of 
companies moving out of 
London over the next three 
years will stay in the 
south-east region. 

The cost of property remains 


a key factor influencing a 
company's decision to relocate. 
Jones Lang Wootton reports 
that between 1983 and 1992, the 
chance to make property cost 
savings was the main reason 
for moving in 55 par cent of 
cases. 

In 1993, however, four out of 
the eight large companies mov- 
ing out of London London cited 
"operational and organisation 
issues" as the main factor 
influencing their decision. As 
companies emerge from reces- 
sion, the drive to improve their 


gpMton* : - 
0>r\ *60%' -.+140% 


efficiency is encouraging than 
to consolidate and restructure 
their operations. 

The prospect of substantial 
property savings has become a 
less Important factor In 
generating long distance 
property moves than it was in 
the late 1960s. 

Nonetheless, the opportunity 
to obtain property at prices 
close to the bottom of the 
market could secure an 
important advantage for 
companies that are willing 
able to move. 



“y "taw y*»’ro i*w* the «uly way b up. Jo It was with the 
famden of Fullvnn Fabrication. $fr untapfoyed man (two havo 
retired) who set thcnmlTH the lofty goal of beeuwfog an 
approved foppDi r to tha computer lurfuitry. 

Always been to encourage enterprise. Inina Development 
Corporation helped them with their fine pianists • a 4.000 iq ft 
hetory. Then they hired ten people and launched theniclm ante the 
tmwipectfitg computer world. 

It took then first three years to achlesa tlnrir goal. 

Soon alter, they became the Grat OK company to be awarded an IBM 
6oM Award lor excellence, la Met, so {rut baa thdr nccots boon, 
thoy're outgrown their name. It’* now Foliation Composer Industrie*. 


However, one thing they’ve never outgrown is Irvine. We'** seen 
them through unnl change* of premises and watched their 
workforce grew to over a thousand. Rot had for a group of men who 
started not trying to sroate johs for themselves. 

If yeo'd Uhe to add to the success stories la trvlm, send your 
bnlons card with tide coupon tit the sddnu shewn bebrw, or simply 
Dial 100 and Hh for Freephone Irvlae. 

FT 27/S 


HAKE. 


.COMPANY, 


ADDRESS. 


THE COMMERCIAL. DIRECTOR, IRVINE DEVELOPMENT CORPORATION, PERCETON HOUSE. IRVINE KAI I JAU PAX 0294 3 IS2S7. 


ROCHDALE IS BUILDING 
A REPUTATION 


Rochdale has a growing reputation as a prime location tor new 
business investment 

The spearhead of this new investment drive is the Rochdale 
Development Agency. 

The Agency offers a friendly and confidential service to potential 
investors and developers. 

For further information on the benefits 
of loading your company in Rochdale, 
contact 


Rochdale Development Agency. 

Rochdale 




Development Agency 


(B 


<B 


CORPORATE AND EXECUTIVE RELOCATION 

• Property 
- Tax 

• Employment 

• Immigration 

CAMPBELL HOOPER 
Solicitors 

Wc are Established advisera OQ all socb matters 

For further information please write to 
Alex Cuppage 35 Old Queen Street London SW1H 9JD 
or call 071 222 9070 or ftu 071 222 5591 


KENT 

UNIVERSITY OF KENT 

AT CANTERBURY ■■■■ 


Quality ■ Tradition ■ Convenience 
I Individual ■ Contemporary ■ Flexible 

■ The largest employer in the area 

■ Over 7000 students 

■ A wide range of services for our 
local and business community 

■ Excellence in teaching & research 


resources 


o 


costs 



Mastering the Art of Juggling 

Fig. 2 


SWANSEA 

Ri-.soi i<( t: r \( a \c,i:roR 

BUSINESS 


gf Skilled Labour Force 

gf Giants and Loans 

Low Overhead Costs 

gf Excellent 
Communications 

Quality of Life 

gT IBA’s and Enterprise Zone sites still available 

-xg-j 

. To; Michael burns. Swansea Centre For trade a industry, j 

* SINGLETON S r„ SWANSEA SA I JQH. TEL- (B»2l 476666 FAX: {0793) 467144 J 



I a ni iii/n i 111 1 ■ if.- 


1 

» 

I G FOOD PARK U FACTORIES 
• U OFFICES G WAREHOUSES 


I 



O HI -TEC PREMISES 
D MARITIME UNITS 


- _ 


. „ F& falter information. pieasi 

at rubkc Relations and Information ** “ 






RELOCATION IN THE UK 5 


L 01 ^ experience oE the UK 
economy has made 
observers deeply cynical. 

“TWW** • *** so-called 
“Thatcher miracle”, the long 
JS80s boom ended as so maw 

h3f Q H^ n ? ■ bcfore lt ’ with 
5^2* shandy and the 
account slumping into 

So it is not surprising that 
Many fear the current UK 
recovery will eventually r£ 
m ^9 the same problems. . 
Throughout 1993, the 

pessimists were repeatedly 
disappointed. Growth was 
stronger and inflation lower 
than they had expected, 
indeed, interest rates and 
^nation were at their lowest 
levels for a generation. ' 

Such conditions were all the 
more remarkable when one 
considers the policy vacuum 
which followed starling’s ejec- 
tion from the B«rf«>ng» Unt*. 
Mechanism in September 1992. 
Many commentators thought 
that inflation was bound to 
revive 12-18 months later, as lt 
had done after previous deval- 
uations. 

They evidently under- 
estimated the deflationary' 
pressures which were present 
in the world and UK 


Philip Coggan assesses the prospects for Britain's economy 

Crumbs of comfort for pessimists 


economies. In early 1994, the 
oil price dropped bads, in real 
terms, to the levels reached 
before the first oil shock in 
1973. 

The debt hangover from the 
late 1380s boom has made both 
companies and consumers 
nervous about borrowing: 
broad money supply growth 
basbeen sluggish in the UK 
Central banks remain vigilant 
against inflation and have kept 
real interest rates at high 
levels, despite deep recessions. 

Nevertheless, ail the above 
factors may merely be cyclical, 
rather than structural. 

One does not have to look 
too hard at the economic 
stati stics to find evidence that 
the U K's old problems may 
return: a pick-up in the rate of 
growth of average earnings, a 
high budget deficit, a trade 
account that stayed in deficit 
throughout the and 

is now widening, an of 


private consumption and' a 
lack of inves tm ent 

An equally forthright school 
of thought believes that the 
current recovery will be too 
feeble to bring much 
prosperity to the average 
Briton, or to make much of a 
dent in the unemployment 
totals. The tax increases 
introduced by Chancellors 
Norman T -ament and Kenneth 
Clarke, which will raise 
between £L5bn and £L7bn over 
the next three fiscal years, are 
expected to prove a drag an 
Bcanonric growth. 

Often, these debates about 
the prospects for the UK 
ec on o m y become bogged down 
in sterile arguments about the 
sire of the "output gap”. 
According to this theory, there 
is a trend rate of output 
growth. If the economy Is 
growing above the trendline, 
capacity constraints are likely 
to cause mnaHm, as they did 


in the late 1980s. If the 
economy is growing below the 
trendline, there is a "gap”, and 
the country can enjoy 

nrm- fn flat? unar y growth. 

The problem is that there is 
no consensus <m the tread rate 
of growth, nor on the size of 
the output gap. Pessimists, like 


might prefer to look back at 
the UK’s long inflationary 
history and reflect that, when 
push came to shove, the 
monetary authorities have 
always gone for the easy 
option of devaluation and 
inflation. 

Economic policy was 


The old problems may return: a pick-up in the 
earnings growth rate, a budget deficit, too much 
private consumption and a lack of investment 


Mr Bill Martin of UBS, think 
t h a t tire gap is small and that 
"the economy is structurally 

rinffniant , frayin g 1 ruri+hw ampl<> 
spare capacity nor an adequate 

mtem atimial Vy -h rn tfing sector.” 

But the International Mone tary 
Fund estimates an output gap 
of 4-5 per emit which, if correct, 
would allow the UK many 
years of naatinflatianaiy GDP 
growth at, say, 3 per cent 
International investors 


perceived to be in ruins after 
sterling's departure from the 
ERM. Piece by piece, the 
authorities have put together a 
monetary framework dnrignad 
both to gain credibility with 
the financial markets and to 
allow the UK economy to 
recover. The Bank of England 
now has a much more 
prominent role. It publishes a 
quarterly inflation report and 
has the responsibility for the 


tinting of interest rate moves. 

The theory is that "political" 
influences on interest rate 
moves should be avoided, 
although the