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FINANCIAL TIMES 


agope’s Business WewspabBr 


AT&T plans stake 
in flotation 
of Groupe Bull 

Sir 

loss-making French computer group. 

fa Proposing to ally with Quadral, 
^JtoJduigconipany which controls CSBE, the 
ifrencn electronics equipment concern, to take a 

“P £ ^ Per cent in Bull, according to 
SOL ? t ^f m ^^ris. Quadral is expected to be the 
magortty partner in a joint offer. Page 17 

Governments Mamed on Jobs: Government 
Jf™* to competition rather than labour market 



**** 


, — «• *»«* icwui emyiuyinem. creation 

tms been lower m the European Union fliqti tn. the 
US and Japan, according to a study. Page 6 

* ore deregulation urged in Germany: The 

German economy is set to grow by 3 per cent in 
1995, but any sustained and export-led recovery 
must be coupled with more deregulation, liberalisa- 
tion, and a more competitive cost structure, the 
panel of “five wise men" warned. Page 2 

I Ilf tun Hotels: Shares in the US hotel and rasfrw 
group shot up $9% to $67% on the New York Stock 
E xch ang e - a gain of 17 per cent - after the com- 
pany in effect put itself on the market for the sec- 
ond time in five years. Page 17 

Ftrenefi plan lor private pensions rwfvotf 

French economy minis- 
ter F-rirrtnnri At phanrifa- y 

(left) sought to relaunch 
plans to encourage pri- 
vate pension funds, 
announcing that 
France's pension system 
should be reformed next 
year. “Conditions should 
be ripe for an initiative 
in 1995", Mr AJphandfay 
told members of the 
COB, France's stock mar- 
ket regulator. The development of capitalised pen- 
sion funds is seen as an important means of reduc- 
ing pressure cm -the existing “pay-as-you-go" system 
and curbing the French welfare defeat P^ge 18 

UK accused over block oa tokMvers: The 

European Commission has accused Britain’s Con- 
servative gove rn ment of being over-interv enti onist 
in its. defence ofa ctaUroversial piece of legislation 
framed bythe Labour admtmstratianin 1975 that 
allows the government to prevent foreign takeovers 
of UK manufacturers. Page 16 

Hw ih ftftetid The share price of the . 
computer and electronics company reached a 10- ' - 
year high when it reported even stronger-than-ex- 
pecffi fourth-quarter results. Earnings rose 60 per 
cent on a 23 per cent increase in revenues. Sage 18 

BuBdfag opt fa i lsm fa Japans Japan’s leading 
construction contractors reported sharp foils in 
profits for the six months to the end ctf September 
bat said order books were starting to grow again for 
the first time in four years-. Page 19 : 

Hope on heart dfeeasa: The first strong 
evidence that cholesterol-lowering drugs reduce 
mortality and improve health in heart disease 

patientefe published today. Page 4 

US~Meeoms bIH promised: US Senate- 
Republican teadere are promising an afiont effort 
to PPW toTo^n mrnTmin aHnns iB giglatirm early . 
next year after preliminary talks within two weeks. 
Page? 

Hopes riso of BCCI deal: Prospects fora - 
set tlem ent far creditors of the collapsed Batik of 
Credit and Commerce Zntematfonal rose markedly 
when d is siden t victims welcomed revised proposals 
from the liquidators involving a $L8bn contribution 
from the government uf Aim Dhabi. Page 18 

Ericsson: The market was disappointed by results 
from the Swedish tdecommimications group, 
despite a jump in pre-tax profits of 88 percent in 
the first nine months to SKi3.49bn ($475m). Page 20 

British Gas fired the first shot in the battle to . 
retain its dominance of the UK’s domestic gas mar- 
ket due to be-opened for competition in 19 96, 
announcing a price restructuring that will reward 
its best customers while recovering some of the 
costs of dealing with poorpayere. Page 9 

Mol prondsosondto corruption: President 
Daniel arap Moi of Kenya pledged to rid his country 
of the' corruption that has in recant years been a 
significant fector .in blocking new aid and invest- 
ment. Page 4 

Seven db In crossing crash: An ambulance 
driver and six patients were killed when an ambu- 
lance was crushed by a train at a level crossing in 
the southern Spanish province of Ahneria. 


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FRIDAY NOVEMBER 18 1994 


D8523A 


Ireland in turmoil as premier quits 


High Court president 
resigns hours after 
Reynolds steps down 


Ely John Murray Brown h Dublin 
and David Owen in London 

Ireland was pitched into a fresh 
political crisis last night as the 
prime minister, Mr Albert Beyn- 
olds and his Fianna Fail cabinet 
colleagues resigned, opening up 
the th reat of a lengthy delay in 
forming a new administration. 
Their decision to quit was 
quickly followed by Mr Barry 
Whelehan, whose appointment 
this week as High Court presi- 
dent split the coalition. 

Mr Whelehan’s resignation 
introduced an unexpected twist 
to a day of high political drama 
in Dublin, raising the prospect 
that Mr Reynolds might try to 
reverse his resignation decision 
and try to hang cm to the leader- 
ship of his party. 

In his resignation speech. Mr 
Reynolds told the parliament: 
“You win same - and you lose 
some. But, above all, throughout 
my life 1 have been delighted to 
have been a risk-taker." 

The prime minister's decision 
to step down has, for the 
mnmmt, left I reland in the hands 

of a caretaker government. With 
apparently little prospect of an 
early resolution to the crisis, 
there are growing doubts about 
the pace of talks between Dublin 
and London on the vital frame- 
work document for a constitu- 
tional settlement to Northern 
Ireland's political problems. 


hi London. Mr John Major, who 
was informed of Mr Reynolds’s 
resignation during a morning 
cabinet meeting, wrote to thank 
him for his contribution to the 
peace process. 

Downing Street said the prime 
minister was sorry that his 
“extremely good” working rela- 
tionship with his former Irish 
counterpart was not going to con- 


Fatal Irish weakness.. 
Adams seeks talks .... 


tinue. He intended to speak to Mr 
Reynolds before the end of the 
week. 

But as Mr Gerry Adams, presi- 
dent of Sinn F&n. the political 
wing of the Irish Republican 
Army, used a visit to London to 
accuse Britain of dragging its feet 
on efforts to forge a lasting settle- 
ment in Ulster, senior UK minis- 
ters insisted that the peace pro- 
cess would continue. 

Mr Douglas Hurd, the foreign 
secretary, told parliament the 
process did not “depend on any 
individual". The government 
would “press ahead" with explor- 
atory talks with both Sinn F6in 
and loyalist representatives next 
month 

In an upbeat assessment of 
progress in recent weeks. Down- 
ing Street said the two govern- 
ments were “dose to agreement" 

— ‘-~U- 



Albert Reynolds says goodbye to Irish president Mary Robinson after fate resignation yesterday in the wake of the collapse of his coalition 


on the joint framework document 
which would form the of 
future talks involving Ulster’s 
main political parties. 

By contrast Mr Adams 
appeared sceptical that such a 
document would be agreed. The 
process of trying to reach agree- 
ment had been going on “for 
months and months", he said. 
The Sinn F£in k»adw «Hdpd that 
the UK government had not yet 


been in touch to make arrange- 
ments for next month’s {danned 
meeting. 

But it is the prospect of a 
protracted search for a new Irish 
government - and possibly an 
early general election - that 
could dangerously delay the joint 
framework document. 

In the canfiisian g en erated by 
tiie day's resignations, however, 
it was not clear that a general 


election would even be necessary. 
The political chans was summed 
up by Mr Joe Costello, Labour 
MP for D ublin: “Nothing is ruled 
out and nothing is ruled in." 

Fianna Fail had been due to 
convene a meeting of its parlia- 
mentary party tomorrow to elect 
a leader to succeed Mr Reynolds. 
But the Whelehan resignation 
interrupted the meeting, prompt- 
ing speculation that Mr Reynolds 


may reconsider his decision to 
stand down as party leader. 

The Irish president, Mrs Mary 
Robinson, gave pa-Hiament until 
Tuesday to farm a new coalition, 
when it could vote in a new 
prime minister. If the search for 
a coalition proves unsuccessful, 
Mr Reynolds could seek more 
time for negotiations or call for 
tha dissolution of parliament and 
go to tjse country. 


Monetary 
union ‘still 
achievable 
for 1997’ 


By Peter Norman, 

Economics Editor 

European economic and 
monetary onion is “a definite 
possibility for 1997", the earliest 
date envisaged in the Maastricht 
Treaty, a senior European Com- 
mission official said yesterday. 

Mr Giovanni Bavasio, the com- 
mission’s director-general for 
economic and financial affairs, 
said many - perhaps most - 
European Union member states 
had the potential to meet the 
treaty's economic convergence 
attesla by the end of 1996. 

In a London speech designed to 
encourage an early European 
Union move to stage three of 
Emu with its single currency and 
central bank, Mr Ravasio said 
Emu was “a feasible option for 
1997" provided member states 
kept op efforts to consolidate 
their public finances. 

Mr Ravasio admitted that 
many people had ruled out 1997 
as a possible date for Emu after 
the c ur re n cy turmoil of 1992 and 
1993. But at a conference organ- 
ised by the Federal Trust and 
Salomon Brothers International, 
he argued that EU countries 
were already well on the way to 
meeting Emu's tough conditions. 

• (hi inflation, be said the trea- 
ty’s criteria "would already be 
met today" because seven mem- 
ber states are expected to have 
inflation rates this year of no 
mare than L5 percentage points 
higher than the best per f or m ing 
EU country. 

• Most member states meet the 
criterion that their nominal 
long-term Interest rates are no 
more than 2 percentage points 
higher than those of the best per- 
forming countries. 

• At least half EU members 
have enjoyed relatively stable 
exchange rates since the crisis 
surrounding the French franc in 
August last year. 

• Cutting budget deficits and 
debt to gross domestic product 
ratios constituted the “bluest 


Continned on Page 16 


Sony writes off $2.7bn from US film arm 


By Mchfyo Nakamoto in Tokyo 
and Alice Rawsthom in London 

Sony, the Japanese consumer 
electronics company, yesterday 
counted the cost of its controver- 
sial diversification into the Holly- 
wood film industry by announc- 
ing that it was writing Y265bn 
($2.7bn) off the value of its US 
movie subsidiary. 

Hie write-off was the chief 
cause of Sony’s decline In the 
first half of this year. It made a 
consolidated loss of Y279.9bn in 
the six months to September 30 
against a pre-tax profit of Y56.6bn 


for the same period last year. 
Sony said that its core consumer 
electronics business and US 
music interests had fared well 
during the first halt However, it 
admitted that it would stay in the 
red with a pre-tax loss of Y20Sbn 
for the fill] financial year. Its 
shares fell in Tokyo and traded 
$3% down in New York at $53%. 

The Sony announcement fol- 
lowing last month’s row between 
Matsushita, another Japanese 
electronics group, and the man- 
agement of MCA, its US enter- 
tainment subsidiary, highlights 
the problems faced by the Japa- 


nese in adapting to the different 
culture ctf their Hollywood sub- 
sidiaries. 

The Japanese “invasion" of 
Hollywood was contentious from 
the start It began in 1988 when 
Sony paid $3.4bn for Columbia 
Pictures and Tristar Pictures, 
and formed Sony Pictures Enter- 
tainment It continued in 1990 
with Matsushita's $6 J.bn acquisi- 
tion of MCA. The Japanese, it 
was said, had “gone to Hollywood 
and been mugged”. 

Sony yesterday conceded that 
“In light of substantial invest- 
ment” m SPE “the business has 


not provided adequate returns”. 
It also said that “additional fund- 
ing will be needed to attain 
acceptable levels of profitability”. 

Industry estimates suggest that 
Sony has invested $8bn in SPE 
(including the original $3.4bn 
offer price). Earlier this year it in 
effect lent YTObn to SPE through 
its music subsidiary. 

SPE fared relatively well in its 
first years. Its performance has 
since deteriorated, hitting a nadir 
with last year’s Last Action Hero 
starring Arnold Schwarzenegger. 
The Sony studios were last 
month shaken by the resignation 


of chairman Mr Peter Guber. 

The Sony group mustered a 4 
per cent increase in overall turn- 
over to Y1937bn in the first half 
from Yl,767bn despite a 14 per 
cent fall in sales from its movie 
interests. 

Sony incurred a Y50bn loss on 
its movie interests at the operat- 
ing level, which covers abandon- 
ing some Sims in development 
and providing for a number of 
outstanding lawsuits. 

Editorial Comment, Page 15 
Lex, Page 16 
Hollywood romance dies, Page 17 


Sale ends Botnar’s 
link with car group 


By Kevin Done, 

Motor Industry Correspondent 

Automotive Financial Group 
Holdings, one of the biggest UK 
motor retailer groups, controlled 
by Mr Octav Botnar, has been 
sold to the Barclay brothers, the 
reclusive UK entrepreneurs, in a 
deal understood to be worth 
about £200m.(S328m) 

The deal, one of the biggest 
acquisitions ever made in the UK 
retail motor industry, marks the 
first entry into the sector of the 
Barclay twins, who have built a 
private fortune based on prop- 
erty, shipping and hotels, and 
who in 1992 bought The Euro- 
pean newspaper from the wreck- 
age of Robert Maxwell's business 
empire. 

The purchase is understood to 
include all the retail motor net- 
work of Automotive and Finan- 
cial Group (AFG), comprising 
more than 70 dealerships, as well 
as Automotive Financial Ser- 
vices, AFGHTs finance division. 

AFG is one of the biggest UK 
multifranchise dealer groups, 
representing some of the world's 
leading carmakers including Fiat, 
Citroen, Peugeot, Renault, Honda 
and Va nxhaH (General Motors). 
At its peak it had as many as 180 
dealerships and claimed to be the 
biggest motor retailer in Europe. 

Mr David and Mr Frederick 
Barclay, identical twins who con- 
trol their b usiness empire from a 


base in Monaco, face the immedi- 
ate task of winning backing for 
the takeover from these car- 
makers, of which at least one is 
understood to have been consid- 
ering the withdrawal of its fran- 
chise from AFG because of dis- 
satisfaction over its operating 
performance. 

Hie AFGH group achieved an 
overall pre-tax profit of £lU)6m 
in the financial year to the end of 
July 1993, but only thanks to a 
pre-tax profit of £27 An achieved 
by Automotive Financial Ser- 
vices and a pre-tax profit of £4.6m 
from the group’s property divi- 
sion. The AFG motor dealer 
operations plunged to a pre-tax 
loss of £21An. 

AFG was forced to undertake a 
drastic restructuring in response 
to the loss of the Nissan import- 
er/distributor franchise by its sis- 
ter company Nissan UK in 199L 

The sale of the business to the 
Barclay brothers marks the effec- 
tive withdrawal from the UK 
motor industry of Mr Octav Bot- 
nar, one of the sector's most con- 
troversial figures. 

He has lived in Switzerland 
since January 1992, when a war- 
rant was issued for his arrest by 
the Inland Revenue. 

In his heyday in the late 1980 b 
Mr Botnar, now 81. controlled 
one of the most lucrative 
privately-owned motor bust 

Continued on Page 16 


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Lonaon SE 31 

Wal Street 37-40 

Bowses 37-40 

Savoys 

Latvia 27-30 


Cl THE FINANCIAL TIMES LIMITED 1994 No 32,527 Week No 46 LOHPOH ■ PARIS • FRAHKFURT • HEW YORK ■ TOKYO 






FINANCIAL TIMES FRIDAY NOVEMBER 18 1994 


NEWS: EUROPE 


Swedish Yes vote boosts Norway’s pro-EU campaign 


The referendum on entry to the European Union in 10 days’ time promises to be very close 


By Hugh Camegy and 
Karen Fossfi in Oslo 

Ms Anne Eager Lahnstein, the 
popular leader of Norway’s 
anti-European Union cam- 
paign, makes light of the Swed- 
ish “slip-stream effect” on the 
referendum on Norwegian EU 
membership on November 28. 

Tve heard that if Norway 
stays out, we will be left with 
Iceland, Liechtenstein and 
Lahnstein, ” the leader of the 
main opposition Centre party 
told a crowded rally in an Oslo 
suburb this week. 

The embattled Yes camp is 

hoping that the Swedish vote 
last Sunday to join the EU will 
exert a strong pull, persuading 
many Norwegians to swing in 
favour of membership to avoid 
the risk of leaving the country 
isolated o utside the Union. 

This much-talked-about pull 


effect on Norway goes by the 
somewhat zisqu§ term Svenske- 
suget, literally “Swedish suck”. 

Beneath the veneer of confi- 
dence and the jokes, however, 
there are now dear signs that 
the Norwegian No campaign, 
which, has held a commanding 
lead in the opinion polls for the 
last two years, is nervous that 
the tide has indeed begun to 
turn since the Swedish vote. 

In her appeal to 300 No sup- 
porters in the working-class 
district of Romans, Ms Lahn- 
stein acknowledged that the 
No campaign faced a tough 
battle. “We have to mobilise 
our forces. The Yes side has 
decided not to lose this time. It 
is going to be one hell of a 
fight,” she said. 

Sinra the Swedish vote on 
Sunday, the Yes campaign has 
advanced significantly in the 
opinion polls, gaining up to six 


points to narrow the gap to 
around 55-45. with one poll 
showing the Yes vote rising to 
as high as 48 per cent. 

Hie No campaign, which 
fears loss of sovereignty and 
loss of control over Norway’s 
oQ and fishing resources in the 
EU. brings together the rural- 
ly-based Centre party, left-wing 
and environment groups, fish- 
ing communities formers. 

It hopes that most of the 
“Swedish suck” effect has 
already played itself out. But 
the No campaigners recognise 
that the pro-EU forces, led by 
Prime Minis ter Gro Harlem 
Brundtland's Labour govern- 
ment, have saved most of their 
resources until after the Swed- 
ish vote and are now pounding 
home their message that Nor- 
way must not be left behind as 
both Sweden and Finland go 
into the EU. 


“We don’t take anything for 
granted,” said Mr HalWard 
Bakke, a dissident former 
Labour minister prominent in 
the No campaign. “They may 
still win." 

The government and Us 
allies in the Yes camp - which 
include the opposition Conser- 
vative party and the vast 
majority of Norway's business 
and industrial leaders - 
believe the EU debate is shift- 
ing at last onto the ground 
upon which they all along 

wanted to fight. 

Instead of getting bogged 
down in detailed arguments 
about issues such as the effect 
of membership on Norway's 

influential fishing qnri farming 

sectors, increasingly the debate 
is focusing on Norway’s politi- 
cal, strategic and economic 
role in Europe, and the poten- 
tial loss of influence and 


investment it faces if it votes 
to stay outside - as It did in 
1972 in an earlier referendum. 

Mr Inge Loaning, leader of 
Norway's European Movement, 
says he believes many Norweg- 
ians are uncomfortable with 
the notion that the country - a 
founder member of Nato - 
might take a clear step away 
from its central role in Euro- 
pean security issues just as 
neutral Sweden and Finland 
move towards European secu- 
rity cooperation. 

“Our task In the last 10 days 
is to get people to understand 
the political consequences of a 
No vote - Norway will take 
over a somewhat neutral posi- 
tion while our Nordic neigh- 
bours will move the other 
way," he said. 

In these 10 days, the Yes 
cam paig n will be dominated by 
senior government figures 


such as Mrs Brundtland 
attempting to use the authority 
Of office to swing the many 
imrierldw? voters - just as Mr 
Ingvar Carissan. the Swedish 
prime minister, succeeded in 
doing in Sweden. 

With the rural and remote 
northern areas clearly set to 
vote heavily No, toe campaign 
will be won and lost - as it 
was in Sweden and Finland - 
in the urban areas and among 
the divided supporters of toe 
Labour party, easily toe coun- 
try’s biggest political move- 
ment 

Both Yes and No campaigns 
are pouring resources into the 
gre a ter Oslo area, which has 
more than one third of the 
4-3 m population, and the other 
big cities of Bergen, Stavanger 
and Trondheim. 

“Both rides are frantic now 
because they know it is going 


to be very close,” said’ Mr John 
Harbo, one of Norway’s most 
experienced political commen- 
tators. 

An against-the-odds victory 
in the refo ranricm may yet be 
possible for Mrs Brnwitfanfl. 
But agonisingly for her, & win 
on November 28 may not settle 
toe issua. Ratification of mem- 
bership requires a three-quar- 
ters parliamentary majority. II 
the vote is a narrow yes, toe 
Centre party is Hkriy to seek to 
block accession. 

With 32 MPs of its own, toe 
party couM well gather enough 

su pport f rom . leftist and other 
anti-EU members to win the 42 
votes needed for a blocking 
minority. 

“If we get a narrow Yes vote, 
the campaign is not.over,* said 
Mr Tarring- “We wifi face a 
tremendous fight to win m par- 
liament.” 


Germany’s five 
wise men urge 
deregulation 


By Judy Dempsey in Bonn 

The German economy is set to 
grow by 3 per cent in 1995, but 
any sustained and export-led 
recovery must be coupled with 
more deregulation, liberalisa- 
tion, and a more competitive 
cost structure, the “Five Wise 
Men", an ii yfr»penA»nt panel of 
experts and economists, 
warned yesterday. 

In their annual report, the 
wise men estimate that pan- 
German gross domestic prod- 
uct will grow by 3 per cent in 
1995, the same as the German 
government’s forecasts but 0.5 
per cent more than expected by 
the Or ganisation for European 
Cooperation and Development. 
The west German economy 
will grow by IS per cent while 
in east Germany GDP will 
grow by 9 per cent Recovery 
In the eastern states is mmfng 
from a very low base, having 
fallen by 30 per cent between 
1990 and 1992. 

The main engine for growth 
remains exports, which accord- 


ing to the wise men will 
increase by 5.5 per emit next 
year, a considerable increase 
from 1993, when exports fell 7 
per cent. They suggest that 
unemployment, which will foil 
by 30,000 to 2£3m In west Ger- 
many and by 60,000 to 1.09m in 
tfw east, wn only be feinHwi 
through reforming the wage 
and social benefit structure. 

The wise men propose exclu- 
ding those with few qualifica- 
tions from certain wage negoti- 
ations in order to reduce 
companies' social welfare, 

inwmplnpipnt arid fipnlth pay- 
ments. The savings could 
encourage employers to create 
more jobs. Already, some 
industries are negotiating 
wage rounds independently of 
unions to try to retain competi- 
tiveness and save jobs. 

The report coincided with 
the appointment of a new cabi- 
net by Chancellor Helmut 
KohL Mr Theo Waigel, the 
finance minister, Mr Gfinter 
Rexodt, the economics minis' 
ter, and Mr Klaus KinM, the 



Claudia Nolte: minister for fondly, elderly, women and youth 


foreign minis ter, all retain 
their posts. 

Mr Kohl a ppointed Ms Clau- 
dia Nolte, 28, a former engi- 
neer, as minister for family, 
elderly, women and youth. 
These were formerly two sepa- 
rate ministries. 

Ms Nolte, a catholic activist 
in the fo rm or east Germany, 


succeeds Ms Angela Merkel, 
another east German, who 
takes over the environment 
ministry, while Mr Klaus Tdp- 
fer moves to construction and 
housing. Mr JQrgen Rflttgers, 
43, heads the newly merged 
ministries of research and 
development, and science and 
education. 


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EU sets deadline for 
telecom liberalisation 


By Emma Tucker in Brussels 

EU member states last night 
set a strict deadine of January 
1, 1996 for completing the liber- 
alisation of alternative tele- 
communications infrastruc- 
tures. 

At a meeting in Brussels, 
industry minister s from the 12 
EU members and the four due 
to join at the beginning of next 
year agreed on the ttewHinw by 
which alternative infrastruc- 
tures such as cable TV. road, 
rail and energy networks must 
be opened up to competition. 

But a further five-year delay 
to 2003 was granted to Spain, 
Portugal, Ireland and Greece. 

The EU move will allow com- 
panies offering telecom ser- 
vices a much greater choice of 
network provider, and should 
lower prices within Europe's 
still highly regulated telecom- 
munications sector. 

The decision foils short of 
Commission ambitions to press 


ahead with liberalisation of 
infrastructures next year. A 
number of countries - Bel- 
gium, Portugal, Spain, (heece 
and Austria - were wary of 
moving so quickly, arguing 
that the necessary frameworks 
ware not yet in place. The 
main advocates of swift liberal- 
isation were the UK, the 
Netherlands, Germany and 
France. 

Brussels has made rapid 
deregulation of telecoms a pri- 
ority in the belief ftat competi- 
tiveness of European industry 
relies on efficient, cheap and 
advanced communications ser- 
vices, which currently lag 
hghtnri what is an offer in the 
US and Japan. 

Services other than basic 
voice telephony have already 
been liberalised. The problem 
is that in most member states, 
service providers are obliged to 
use the traditional, largely 
monopolistic, telephone net- 
works. 


Only in the UK are networks 
entirely liberalised, with ser- 
vice providers free to build 
their own if they desire. 

The opening up infrastruc- 
tures to competition in 1998 
will coincide with a shake-up 
of voice telephone services. 
Under a previous ministerial 
agreement, member states are 
not obliged to liberalise voice 
telephony before then. 

Meanwhile, the competition 
commissioner, Mr Karel Van 
Miert, said he may try to speed 
up liberalisation by uring spe- 
dal powers to open cable TV 
networks to competition before 
1998. He has proposed that the 
Commission force governments 
to restrictions cm ca fe TV 
networks under Article 90 of 
toe Rome Treaty, which allows 
the nr»mini»rirMi tO take action 
without a vote from ministers. 
This move is unpopular and it 
Is not yet dear whether the 
Commission would support Mr 
Van Miert 


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Jacques Mddedn (left) says he to happy to be going back to France at the time of the Beaojolais 
Nouveau season. The official ex p lains that wine (French slang for bribes) now comes in bottles 
rather than just mugs. 


Nice keeps a place In 
its heart for Medecin 


A nyone walking into the 
shopfront office of the 
Moral Support Commit- 
tee for Jacques Mddecin in 
Nice might be forgiven for 
thinking they were in the 
headquarters of a political 
campaign rather than of a 
group lobbying for toe liberty 
of toe disgraced former mayor 
of France’s fifth largest city. 

A flashing pink neon sign 
outside, the “Free Jacques 
M&decin" banners and smiling 
photos on the walls and the 
phones answered by a team of 
volunteers belie an organisa- 
tion supposedly created to 
uplift the spirits of the politi- 
cian who returned from 
self-imposed exile yesterday. 

After more than four years 
in Uruguay - and most of the 
last 12 months in a Montevideo 
jail - Mr Medecin had no 
choice but to return to Paris 
yesterday In compliance with 
an extradition order, on his 
way to interrogation in Gren- 
oble. He comes back to a coun- 
try sharply transformed in its 
attitude to, and exposure of, 
allegations of corruption 
ensnaring political parties, 
businesses and a growing net- 
work of individuals alike. 

While Mr Medecin has 
already been tried and sen- 
tenced in his absence to a 
year’s imprisonment, he also 
faces large tax bills and 
demands to repay more than 
FFr41m (£4.9m) to the city's 
treasury, his reputation in 
Nice is far from universally 
tarnished. 

Mr Robert Bagat, who 
founded the Medecin support 
committee over the summer, 
confidently predicts that a wel- 
coming convoy of 50 cars 
stuffed with flowers and fans 
will be heading to Grenoble 
this weekend. 

Tbe owner of a lighting shop, 
Mr Bagat says he started the 
committee because it was 
“unjustifiable” to incarcerate a 
Frenchman without trial in 


another country. He says he 
has collected some 15fl00 sig- 
natures of support - albeit 
many from foreign visitors. 

A second committee of local 
merchants has dubbed itself 
the “Liga Nissarda” and used 
the mayor’s image to launch a 
range of publicity stunts in 
recent weeks. There is also a 
ready bandwagon of supporters 
- including Mr Mgdetin's first 
wife, daughter and sister - 

Andrew Jack 
on the return 
of the fugitive 
former mayor 

ready to speak up for him. 

There are regular weekly 
meetings, a Radio Jacques 
M&decin provides regular 
updates on its subject, and his 
book, “An exemplary lynch- 
ing”, published in April, is 
turning into a local bestseller. 
Mr Mfedecm is threatening to 
cause plenty of trouble for his 
opponents, before r unning for 
office again in Nice - and even 
for the presidency. 

His supporters argue that Mr 
Medecin had the misfortune to 
be among the earliest victims 
of the intensifying public cam- 
paign now gripping the coun- 
try against allegations of cor- 
ruption. They also c laim he is 
the victim of a plot by Socialist 
rivals. His book is even sub- 
titled “Mitterrand killed me”. 

The list of his alleged activi- 
ties is impressive. The Com 
des Comptes in Marseilles, 
which scrutinises public expen- 
diture, has already issued judg- 
ments against him in connec- 
tion with three “dossiers" 
involving the misuse of public 
funds totalling over FFrtOOm. 
“This is by a long way the 
champion case since the [sec- 
ond world] war,” says Mr Alain 


Serieyx, the Courts head. 

Tie warrants from prosecu- 
tors in Nice and Grenoble that 
ted to Mr M&tedn’s extradition 
charge him with corruption 
and improper receipt of funds 
in connection with several 
“para-municipal" organisa- 
tions. 

No surprise that the local 
Co mmunis t party demon- 
strated outside the city hall 
earlier this week calling for the 
courts to make an example of 
him. 

The puzzling question for 
many observers north of toe 
Mediterranean city is why 
there to not more such opposi- 
tion to the former mayor. One 
explanation lies in ltis ambi- 
tious projects for the city; an 
art museum, a theatre com- 
plex, the Acropolis conference 
centre. “He made Nice,” says 
Mr Bagat simply. 

Like many politicians of the 
era, Mr Mgdedn has been able 
to claim credit for grand 
schemes at a time of relative 
economic prosperity (leaving 
the city with debts of FFr4.7bn) 
while evading responsibility 
during the more recent down- 
turn. He was also able to bene- 
fit from considerable decentral- 
isation of power and money 
that was govenunsit policy in 
the early 1980s. 

Another clue comes in the 
old town of Nice. The narrow, 
winding streets and overhang- 
ing balconies, reminiscent of 
the Middle Ages, seem fitting 
for a city which treated Mr 
Medecin more as monarch 
than mayor. 

He and his father Jean, after 
whom he renamed oue of the 
main streets, ruled the city in 
an almost uninterrupted reign 
since 1928. “Jacquou” also 
brought glamour and charisma 
to the place. “If you spent half 
an hour with him you would 
be charmed,' says Genevieve, 
his sister. His former wife 
Claude, adds: “Nice was 
dynamic. Now it is sleeping.” 


Francsto 
set up air 
defence 


By DwM Buchan to Paris and 
_ Bnjce Ctark in London * 

Leaders of France andBrifcdn 
are today expected to unveil 
a new planning unit to'co- 
. ordinate use of. their air fbpees 
in peacekeeping missions. . 

Greater, defence- coop^atjoa 
will be . the main theme at 
today's aneday summit meet- 
ing in. the city o£ Chartres 
between the two countries;: 
which have otherwise found it 
hard to find much common 
ground on other issues of Euro- 
pean integration. 

Prime Minister John . Major 
and several other UK mtatotets 
will be holding same six hours 
of talks, wfth the French’ safe; 
led by the atong socialist Frost 
dent Frahpofe Mittexxand; now 
in Ids last year of office, and by 
gaullist Prime Minister 
Edouard BaHadnr who shares 
many of Mr Major’s views on 
European. Union Institutions, . 
rtwn gh not on mast of the poli- 
cies those institutions should 
carryout . . 

On defence, however, these 
is a c ommunion of -interest 
between France’s ambition for, 
a strong EG deforce effort and 
toe UK's desire to play a post 
rive rale in foreign and defence 
policy discussions in advance 
of the EtTs 1996 constitutional 
wwifarwnw* that may pit Lon- 
don and Paris against each 
other on other issues. 

Underscoring their countries’ 
diplomatic partnership, ,Mr 
Alain Juppe, the French for- 
eign minister, «ui Mr Douglas: 
Hurd, the UK foreign secre- 
tary, wffi breakfast in Paris 
tomorrow with their Russian 
counterpart, Mr Andrei 
Kozyrev, to discuss the situa- 
tion in Bosnia, following toe 
US decision to drop out of 
enforcing toe arms embargo. 

The air planning .unit will 
only- initially involve about a 
total 10 officers from both air 
forces. But it is part of a 
broader defence ..dialogue . 
which has involved, contacts 
between, french and UK rapid 
deployment forces, arid a can- ' 
tinning discussion of unclear ’ 
doctrine between Europe's 
only two atomic weapon pow- 
ers. The Anglo-French twrfBar 
working group is not, however, 

tackling any thing «a for reach- 
ing or sensitive as joint 
nuclear submarine patrols or 
im'Rgffe targeting. 

On joint arms projects, 
France will be keen to press 
the UK to join it and other 
Europeans in building the 
Future Large Aircraft, a new 
troop transport designed to 
give European armies the 
capacity to project power over 
seas. UK ministers are still 
weighing whether to join the 
FLA project or to go the tradi- 
tional route of buying Lock- 
heed transport aircraft from 
toe US again, and they win be 
keener to review progress on 
the trilateral Horizon frigate 
project wfth France and Italy. 

Both Fiance and the UK are 
ready to help African states 
with peacekeeping missions, 
and one idea is that France 
focus cm better equipping ■' 
training two or three franco- 
phone African countries, and 
the UK do the same wfth some . 
anglophone countries. 

Reuter adds from Paris: Whfie 
Britain, Washington’s most 
faithful ally in Europe, did not 
jo in the Franco-German 
inspired European army corps, 
o ffic i als on both sides say close 
political and military co-opera- 
tion in Bosnia and concern at a 
perceived US drift towards dis- 
engagement have brought 
Britain and France, western 
Europe's main military powers, 
closer together. “The British 
were up to now extremely reti- 
cent about European defence 
co-operation. Now it seems we 
can progress together," a 
French official said. 

Editorial comment. Page IS 


THE FINANCIAL TIMES 
Published by The Fmancil 

m Frankfort tw J. W&lta Bn 
beta J. Sited, Colin A. Ke 
G«“Uft*faiirer and in Lot 
David CM. Bell ud Alan C 
OVM Drnefc-Vertridi « 
GnU*. Admirol-Ro 
SUM* 3s, 63263 Non-lmbui 



“ riDHKui | 

Soathwa 

London SE1 9HL, UK. Stan 
the Financial Times (Emm 
^TteFinaateTtae^ 
London and F.T. (Gw 
”*8) Ltd. London. Stamm 
wove mentioned two coama 
Finan cial Tunes Limited. Vi 
SowhwA Bridge, London 
™ Cy9*™y * «ocmporata 

STANCE: Publishing Dii 
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Printer 

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>3 44 41, Fax 33 93 53 3£ 


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wnancial times frjday November is 1994 


3 



NEWS: EUROPE 


Milan court in 
bourse ruling 

on Mr GiusemS a ^ r ' month suspended Jail sentence 

the market a - Tuscan Hnancier - for manipulating 

hara hpon agauist insider trading, passed in 1991, 

sob the iJEKEL- c “ mfaerson3e 3n ^ legalistic. But Con- 
case, st °f ls exchange watchdog which brought the 

i ud ^ent as a landmark ruling whidfwould 
and intemationalhivestors. 

ket was Ita * ys comparatively small equity mar- 

“twas blighted m the late 1980s and eariy 5os by a 

eradSSS ih wid ^ pread tosMer trading. The law has not 
r£?™a? ed i ^ probIem altogether, but Mr Luigi Solimena, 

S fl^ yer ' saic * yesterday that the rulingshould deter 
aa SaSSH^ t0 undfirmine “onnal shm^SIding. 
raSr ^ accused of manipulating the stock market, 

S^ 0 rS?M£r°5 tmg dtad *F from insider information. In 
announced that be had agreed to buy 
troub i ed 03008 Nazlonale dell'AgricoItura for 
ro V« hIy double the market price. The news 
was almost immediately denied by Cbont Giovanni Auletta 
Ai^mjse, whose stake Mr Gennari claimed to be buying. 
Consob was forced to suspend BN A shares and those of related 
quoted companies to avoid further confusion in the market. 
Mr Gennan s lawyers argued during the case that he made the 
announcement in good faith. Andrew &z& Milan 

Attack pressed on Bihac 

rebel forces backed by Serbs yesterday pressed for- 
ward m the northwestern Bo snian enclave around the town of 
Bfhac, with the United Nations threatening to eaij in air 
strikes if the town itself was attacked. Forces loyal to Mr 
Fflcret Abdic. the renegade leader, were reported to be closing 
m an the UN-designated safe area, as Bosnian Serb forces 
came within 2km of the town. Meanwhile, two people were 
wounded in Sarajevo in a missile attack, prompting the UN to 
call in Nato fighters to buzz the capital. 

“Any attack on the safe area of Bihac would inevitably 
result in the use of Nato air power” said Mr Paul Risley, UN 
spokesman. But a defiant Bosnian Serb commander General 
Manojlo Milovano vie promised to attack if the Bosnian fifth 
corps withdrew into the town. Mr Abdic’s forces crossed into 
the Bihac pocket on Wednesday from Serb-held territory in 
Croatia in a push bolstered by Serb troops and heavy artillery 
from Krqjxna, their self-styled state in Croatia. Laura Sitter, 
Belgrade 

Setback for Russian budget 

Russian government attempts to win approval for its austere 
1995 budget were dented yesterday when Mr Mikhail Zador- 
nov, parliamentary finance committee chairman, said the pro- 
posals were unacceptable in their present form. “The forecast 
and estimates. . . are not realistic," be said during parliamen- 
tary hearings. Voices have already been raised against the 
budget's severity, and the balance of support for radical 
reform within the government is itself unclear following the 
reshuffle of senior ministers. 

Mr Yevgeny Yasin, the new economics minister, defended 
the budget, saying conditions were ripe fin* a new stage of 
reform, given that the decline in industrial production was 
bottoming out pud the growth in savings provided the oppor- 
tunity for investment. He stressed the government's commit- 
ment to producing economic, stabilisation nest year, pr e di cting 
that inflatioii would foil from 270-280 per cent forecast for the 
current year to TO per oaolrin 1965. He would also press for tax 
cuts for industry neat year, presumably an toe basis that a 
lowering of toe rates may encourage greater compliance; 

President Boris Yeltsin’s controversial chief press aide, Mr 
Vyacheslav Kostikov, resigned yesterday at toe president's 
request, saying his departure would be part of a broader 
shake-up of toe presidential staff. John Thornhill. Moscow 

Kiev cracks whip over Crimea 

Urkaine’s parliament took steps yesterday to compel the sepa- 
ratist Crimean peninsula to accept its rule. It rescinded a host 
of Crimean laws declared in violation of the Ukrainian consti- 
tution and backed toe action with limited economic sanctions. 
This is toe fourth ultimatum this year and follows the failure 
of Crimea's parliament to meet a deadline to comply with 
Uk rainian law. Despite calls to close the Crimean parliament 
and rescind the republic’s autonomous status, voiced loudly 
by nationalis ts, the conservative Ukrainian parliament put off 
th os e dgrigifmB flTitfl later. The vote marks the latest volley in 
the dispute between Kiev and Crimea which has been raging 
since the Soviet Union’s collapse left the pre domin an tl y Rus- 
sian Black Sea region within Ukraine, to which it had been 
transferred in 1964. Matthew Kaminski, Kiev 

ECONOMIC WATCH 


Wholesale prices edge down 


Western 

Whola^prte.mwiija<%chflno® 

S.z 


West Gennan wholesale 
prices fell 0.3 per cent in 
October from September, but 
were up 2.7 per cent from a 
year earlier, toe federal statis- 
tics office said. Figures for 
the previous month were 
rises of 0.1 per cent and 18 
per cent respectively. Whole- 
sale prices of fish products 
jumped 26.1 per cent in Octo- 
ber from the previous month. 
Coffee extract prices rose 1L5 
pa cent, aluminium $.4 per 
cent, organic chemicals wnH 
basic products 3.4 per cent, 
plastics 3-3" per .cent and 
heavy heating oil 2.4 per cent. 
By contrast, the wholesale 
price of raw coffee fell 13.4 per cent, fresh fruit 123 per cent 



f'rZ 

;*3' 


tl u O* 


... - .I* 82 '. ’*• 83 

Source: EkftMtanftr •' 


_ Turkey's foreign trade deficit narrowed to £207m in Septem- 
ber against $U4lbn a year earlier, according to official fig- 
ures. For the first nine months, the deficit fell to $3,793bn from 
S1Q 440bn in the same period of 1998. The country's Januaiy- 
October consolidated budget deficit widened 93 per cent to 
TL74.600bn against the same period , in 1993, Mr Ismet Attila, 
minis ter, said. Tuikay’s revised end-1994 deficit target 

is TLl39.000bn. . , 

Obituary - Magda Hamsher 

aseda Hhmsher, effitorial office manager for the FT in Paris 
br almost 20 years until last July, died suddenly but peace- 
hRv at her home oh November 15. She was bom in Moravia 
md studied English and French tttetature at toe Charles 
Onhrendty in Prague. In 1548, she married an English journal- 
at Kn Hamsher. whowasr^oitm^ihe Communist, takeover. 
Star a brief stay, in Loudon, they were posted by toe Daily 
Express to Berlin (where- their three children were bom) and 
new to Bonn, before settling in Paris.' 

After Bill’s death, . Magda was recruited by Bob Mauthner, 
foen FI bureau chief in Paris; to nm toe office administration 
md bnfld np foe filing system She was uofaflingly cheerful 
rod always dehghted.wfcfia a useful source document could be 

reluctance oT journalists to put 
anything back in Its place. She was even more pleased when, 
■ift a diffident confidence, she was able to educate one of her 
-vjwues on some point of French history or politics without 
reference- to any' source mateilal.The Velvet Revolntibn in 
Prams in iS80 thrilled her. ft also brought to Paris a childhood 
EHend, Hugo MensdOrff-Poumy, . who brought, a charming 
romance to toe last five years of her Bfe. She is survived by 
Hogo and her three drflcbm 


In a crisis it is a given that a minister will fall, writes John Murray Brown 


A s the scale of Ireland's 
political crisis this 
week began to sink In, 
Irish commentators were yes- 
terday leafing through their 
files hying to make sense of 
toe mess. 

Was it really on a scale with 
the beef sales scandal, the 1990 
presential election bugging 
affair or the 1970s Haughey 
arms scandal, as the newspa- 
pers suggested? Or is Ireland 
simply afiHcted with an inabil- 
ity to make coalition govern- 
ment work? 

To toe outsider, the break-up 
of the third coalition in as 
many years is all the more sur- 
prising given what has been a 
commendable record on the 
economy, an apparently har- 
monious approach to difficult 
social policy reforms and a key 
breakthrough in Northern 
Ireland, where the outgoing 
prime minister, Mr Albert 
Reynolds, was largely Instru- 
mental in helping to secure an 
IRA ceasefire. 

In the pandemonium that 
gripped the Dail the Irish par- 
liament, this week, there was 
something of an inevitability 
that the Chinese whispers 
wafting from the chamber 
would lead to toe government's 
break-up. 

As more and more emerged 
of the row that was sparked by 
Mr Reynolds' appointment of 
his attorney-general Mr Harry 
Whelehan, as president of the 
High Court, a move bitterly 
criticised by his Labour party 


Fatal weakness 
in the Irish 
body politic 


partner, the question 
was not if but when it would 

happen. 

What did it in the end was 
the resignation as deputy 
prime minister of Mr Dick 
Spring, the Labour party 
leader, on Wednesday. Mr 
Spring accused Mr Reynolds of 
misleading him and the Dail 
about the failure of Mr Whele- 
han's department to act for 
seven months on a request 
from British-ruled Northern 
Ireland for the extradition of a 
priest who was later convicted 
of Child sex-abuse. 

But it was more than that 
Issue alone. With a population 
of 3 -5m people, about that of a 
medium-sized European city, 
Ireland has politics with a spe- 
cial type of intimacy. The 
Charlies and Alberts who run 
the country's political parties 
are household names in a way 
quite different from much of 
Europe’s politicians. Ireland 
also has a relatively small civil 
service. It is not so easy for a 
politician to hide behind his 
official, though Mr Reynold as 


a last resort, in perhaps his 
most tragic pose, did his best. 

What Is perhaps more impor- 
tant is that in the neighbour- 
ing UK for instance, a row like 
this would more than likely 
have been absorbed some- 
where within the bureaucracy, 
by the creation of an inquiry or 
commission or by toe removal 
of a minor official- In Ireland, 
when a crisis breaks, it seems 
almost a given that a govern- 
ment minitf A r will fall 

Part of the problem lies with 
the character of the Fianna 
Fail leadership. Far a country 
which almost continuously, for 
40 years until 1973, knew only 
Fianna Fail-led majority gov- 
ernments, the experience of 
coalitions has been a fraught 
one. This was even more so for 
Fianna Fail itself, whose first 
ever coalition was in 1989. The 
imperatives of accommodation 
and compromise have been dif- 
ficult to reconcile with Fianna 
Fall's corporatist can-do image 
and its back-room dealing. 

The reasons go to the heart 
of its identity- For Fianna Fail 



Finance minister Bertie Ahern: looks like the favourite to 
succeed Mr Albert Reynolds as leader of Fianna Fail 


Is not so much a party as a 
political movement. The com- 
parison often made is with 
Gautosm in France. Tradition- 
ally, the party has been a 
broad church, an alliance of 
interest groups, including busi- 
ness and labour, underpinned 
by a strong republican ideol- 
ogy. 

But today, with the rural 
vote base eroded as people 
move off the land, so the elec- 


torate has become more diffi- 
cult to please. The large num- 
ber of parties in Ireland - with 
six of some sire now repre- 
sented in the Dail - under- 
scores the breakdown of the 
old political loyalties and the 
dramatic social and demo- 
graphic changes that have 
taken place in toe last two 
decades. 

Mr Reynolds is the last of the 
old school of Fianna Fail lead- 


ers. His successor - Mr Bertie 
Ahem, the finance minister, 
last night seemed the favourite 
to win if the parliamentary 
party's poll goes ahead on Sat- 
urday as planned - will he 
under increasing pressure to 
show that the party can live by 
its coalition undertakings. 

Yesterday there was some 
bitterness in Fianna Fail cir- 
cles that Mr Spring barf openly 
schemed for the prime minis- 
ter's dow nfall. Such is the 
breakdown In trust between 
Fianna Fail and the other par- 
ties that many of its MPs last 
night seemed prepared for a 
period in oppositiem- 

Mr Reynolds had made clear 
to the house, in his defence on 
Tuesday, that “good govern- 
ment must be decisive’’. His 
error was not to have made the 
decision to appoint the attor- 
ney general as he them argued, 
but to proceed without having 
brought Labour on board. 

The facts are still a little 
hazy. Even at the last hour, as 
Mr Spring made dear, the gov- 
ernment could have been 
saved- 

In the end it was a morning 
telephone conversation with 
the new attorney general 
which revealed that the prime 
minister hart mfoipH the Dail 
which sealed the coalition’s 
fate. 

As PJ. Mara, a well-known 
voice in Irish politics and one- 
time adviser of Mr Haughey, 
said: “I'm deeply saddened. A 
generic sadness” 





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Edinburgh Glasgow 





Il 








Measures aim to open way for aid and investment 


Kenyan president pledges 
to stamp out corruption 


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By Joel Kfrazo 

President Daniel arap Moi of Kenya 
yesterday pledged to rid his country 
of the corruption that has in recent 
years been a significant factor in 
blo cking new aid and investment to 
his country. 

Speaking at a London investment 
conference on Kenya, the president 
said liberalisation measures intro- 
duced by his government in the past 
IS months would contribute to the 
reduction of corruption in Kenya. 
“Import and investment licensing pro- 
cedures and foreign exchange controls 
which, have now been abolished were 
some of the avenues for corrupt prac- 
tices," he said. 

The president pointed to the coun- 
try's anti-corruption unit as evidence 
of his government’s determination, 
and urged business people to refrain 
from bribing government officials or 
officers of rival companies. 

*T would not be making this appeal 
if I did not think that the culture of 
bribery and kickbacks have been 
major sources of corruption," he said. 


The conference is Kenya's first 
attempt in many years to attract for- 
eign direct investment to the country 
and the president emphasised that the 
recent package of reforms designed to 
help win investment would not be 
rolled back. Long-term investors were 
the country’s prfority- 

“We want investors who will 
strengthen our export capacity and 
capability. And we want investors 
who will assist us in making full use 
of our natural and human resources.” 

Mr Moi acknowledged that the 
downturn in the Kenyan economy 
hud led to a decline in investment in 
the country’s infrastructure, once 
considered among Africa's best, and 
indicated that the private sector 
would be invited to participate in 
schemes such as road-building. The 
government bad also decided to invite 
the private sector to develop SO per 
cent of the country’s future thermal 
and geothermal electricity generation, 
in which the government planned to 
invest more than Jlbn (£636m) over 
the next five years. 

Political reforms of the past three 


years, including the introduction of a 
multi-party system, were also 
addressed and the president said he 
and his party were committed to the 
new system. But he warned: “The 
imposition of foreign political models 
without careful consideration could 
easily create upheavals in the African 
continent." 

Turning to the international aid 
community ahead of next month's 
Paris Club meeting of aid donors. Mr 
Moi said: “We have done all they 
asked us to do. The ball is now in 
their court.” 

• Kenya's shilling plunged by 17.9 
per cent against the US dollar yester- 
day in panic buying because of 
increased demand by exporters, com- 
mercial bank officials told Reuters. 

They said commercial banks quoted 
the dollar at a mean rate of 48.75 
shillings compared with an average of 
41.35 shillings on Wednesday. “Basi- 
cally, there is big demand from 
exporters towards the end of the year, 
as many of these want to mak e good 
their commitments,” a bank dealer 
said. 








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rem in prices 

V; '-JZ'xs another Urgent nail 'foe be3t- 


tightening as Inflation defied 
■ " «mtrb3s; the value ofjbcte- 
X-r trial output surged . and .the 

^ goal of coottng five booming 

•' ^ ecwnomy-recsded out of sifdit. 

Consumer pdce'lnflatim^was 
:'zi : iry; ! a year-on-year 27.7 per cent in 

- Ky* October, - the State Statistical . 

! -Bureatr said m: a ; reportcar- • : 

t-Xvy- - riwT hv Hip nffit-inl TEinTiTin 

news agency; The, consumer 

..=ia ^ priceindex in October was 1-7 

v per cent hzifoer. than fcfSep-- 

;-k .”*> jSffl/ , .teanfoeet. 

■ JU&3 For a- chosen group pf 35 
• Sui i wr pwwfv j ^Ti i irt w ri^ . cities, the'index rose by 218 
pea: cent compared wife the^aroe montit in 1993 and was lip ' 
per cent higher than in. September, indicating that urban price 
rises may be dewing. - 

r hino has adopted urgent measures to control inflation, 
twphnfing Hunting new construction projects and squeezing 
credit, but has already said it wSl fidl to hold price_ri8es_toits 
target of Ifl per cent this year. Retail sales in October jumped 
by S7.4 par cant to Ynl44.«ni <£10.Sbn), the Wggestmonthly 
rise this year, the bureansaid. The Finance Ministry directive, 
broadcast on state radio, ordered departnmnts and state enter- 
prises not toexceed wage and banus limrts before the eaid of 
the year and to curb what it called rapid growth, in the 
spesvding of state foods <m consumer items. 

The vahae of industrial oteputtia October rose 245 per cent 
on a yearon-year basis to Ynl42.6bn or a 6 par cent increase' 
compared with September when, calculated on a daily basis, 
the statistics bureau said. Reuter, Bering . 

Hong Kong airport land deal 

Hong Kong cleared another hurdle yesterday in its quest for a 
comprehensive agreement with China on building a modem 
airport and railway. The Shao-Rritish Land Commiisfon agreed 
five trams by which the land occupied by the airport and hs 
connecting railway will be vested in . the two government 
corporations responsible for the prqjecLThe tend will be 
released as part of the commission's ammai tend grants over 
the earning three years as the need for it arises. Sales of the 
land are expectedlo help finance the whale project *o the time 
off HK$20hn C£L$bn). 

Use ag reement cnmp« ahaad of ddflwEationB today In the 
colony's Legislation Council on a government request for 
HK$23bn in fonds for the project. The council is expected to 
support this request, which will dear the way for the Mass 
Transit Railway Corporation to award formally many works 
contracts it had only let provisionally. These are expected to 
total in excess afHK£L5bn and will cover such Items as rolling 
stock. 

Britain and China have yet to agree the detailed terms by 
which the MTRC and the Provisional Airport Authority will be 
perm i tted to borrow a further HK$23bn of fonds. The Hong 
Kong government hopes agreement can be reached by the and 
of the year. Simon Hoiberton, Hong Kong 

Thai stance disappoints US 

Mr Warren Christopher, US secretary of state, expressed disap- 
pointment yesterday that Thailand had denied a US request to 
position military equipment, on ships, in Thai waters hut said 
he was sure ottea: sites could be found. The US wants to feeep 
weapons and vehicles ready in the region to be able to respond 
quickly to crises in the. Middle East or Asia; such equipment 
OOUld alSO be Used for ftirmani ta ria™ purposes, Mr fThrigtnphpr 
told a news conference. 

He said he would not be surprised if the reason for President 
Saddam Hussein's recent withdrawal of Iraqi troops from the 
Kuwaiti border was the rapid arrival of -US troops flown in to 
man equipment already positioned in the Guff. 

- Mr Christopher yesterday met Mr Chuaa'Leekpai, the Thai 
prime minister, and the foreign and defence ministers. The 
government had previously derived that US arms stocks might 
endanger rather than promote peace. 

Thailand has been a dose US ally since the Vietnam war, 
and Mr Christopher said the strong security relationship con- 
tinued. The US armed forces have conducted 35 joint exercises 
with the Thai military this year, more than with any other 
Asian country, and the US has access to Thai ports and 
airfields, Vidor Mallet, Bangkok 

Unita suspends truce talks 

The Angolan rebel Unite, movement yesterday suspended its 
participation in ceasefire talks with the Angolan gove rnment 
in the Zambian capital. Lusaka. "We suspended our participa- 
tion in the meeting late tins morning because. . . the truce has 
been violated.” Unita chief negotiator and secretary-general 
Eugenio Manuvakola told reporters. Asked if the formal sign- 
ing of a peace accord to end the 19-year Angolan civil war 
could go ah ea d as p l a nn ed in Lusaka on Sunday, he replied: 
“Let us wait and see ” 

Unita earlier accused the government of violations of a truce 
which should have come into force on Wednesday to smooth 
the way for Sunday's signing by Unita leader Jonas Savimbi 
and Angolan President Jose Eduardo das Santos. Mr Manovak- 
ote said government troops had overrun the northern Angolan 
aty of Inge yesterday morning. Reuter, Lusaka 

Libyan exchange rate move 

lfl>ya has set a multiple exchange rate for the dinar one week 
after a devaluation, a senior official at Libya’s Central Bank in 
Tripoli said yesterday. The official rate will remain calculated 
on the basis of one SDR for 0525 Libyan dinar, while a new 

S2? ^ ency , ^ seD the US dollar for 1.019 

dinars, Mr Nouri Banoul, the official in charge of forrien 

i m J* 16 told Raters. He said the newrate 

would apply to private sector imports. Reuter, Tunis 


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There he is. Fourth row, second from 
the left. The one with the moustache. 
Obvious really. 

Maybe not The unsavoury-looking 
character you’re looking at is more 
likely to be your average neighbour- 
hood slob with a grubby vest and a 
weekend’s stubble on his chin. 

And the real refugee could just as 
easily be the clean-cut fellow on his left 

You see, refugees are just like you 
and me. 

Except for one thing. 


EveiTthingthey once had has been 
left behind. Home, family, possessions, 
all gone. They have nothing. 

And nothing is all they’ll ever have 
unless we all extend a helping hand. 

We know you can’t give diem back 
the things that others have taken away. 


wo 


^UNUiru^LTi 

United Nations High Commissioner for Refuses 


We’re not even asking for money 
(though every cent certainly helps). 

But we are asking that you keep an 
open mind. And a smile of welcome. 

It may not seem much. But to a 
refugee it can mean everything. 

UNHCR is a strictly humanitarian 
organization funded only by voluntary 
contributions. Currently it is responsible 
for more than 19 million refugees 
around the world 

UNHCR Public Information 

P.O. Box 2500 

1211 Geneva 2, Switzerland 



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FINANCIAL TIMES 


FRIDAY NOVEMBER 18 1994 


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NEWS: INTERNATIONAL 


Saudi budget may have to reflect some harsh realities 

There are hints of structural reform to deal with Riyadh’s acute two-year-old cash flow problems, reports Mark Nicholson 


S audi Arabia’s economic 
policymakers are busy 
preparing the annual 

SSSL 1 statement 

Jhe kingdom s main public dec- 
laration of economic policy it 
“ traditionally rather a spare 
usually little ££ 
than a statement of intended 
government spending. 

But this year's budget if 
hmts by senior Saudis prove 
correct, may contain somewhat 

£®f e \ rte Y suggest it may 
1 S ?™ us towards 
J? U 5ff ral bud ^ e rary reforms 
to address the government's 
acute cash flow problems of 
the past two years. 

“One should expect major 
decisions." said one official 
without elaborating. “You will 
be surprised, we are realistic 
We will face the situation, and 
its going to be across the 
board." 

The “situation" is the worst 
slump Saudi Arabia has faced 
since the oil price collapse of 
the mid-1980s and an unprece- 
dented tightness in public cof- 
fers - the product of the $55bn 
bill for the Gulf war Desert 
Storm, subsequent costly mili- 
tary purchases, unhelpfully 
soft oil prices and the cumula- 
tive effects of a decade of high 
spending. 

Saudi Arabia's 1993 budget 
deficit of around $12bn (£7.3bn) 


was its Uth in a row, and 20 
per cent of GDP. 

Such pressures, augmented 
by warnings from the Interna- 
tional Monetary Fund, embar- 
rassing reports in some west- 
ern media about “bankrupt" 
Saudi Arabia and consequent 
speculative assaults on the 
riyal, led the government in 
last year's budget to announce 
a 19 per cent cut in state 
spending in 1994 to S46bn. 
Some economists believe this 
may still leave a 56bn gap, 
given best estimates of this 
year's oil earnings. 

But they also believe the 19 
per cent cuts may be met Gov- 
ernment departments all 
report slashed travel, frozen 
hiring, cut perks, abolished 
overtime and, most important, 
either cancelled projects or fro- 
zen payments for those to 
which they were committed. 

The result, however, has 
been to extinguish economic 
growth. Bankers and econo- 
mists believe the economy has 
shrunk this year by 2-5 per 
cent, the first GDP fall in nomi- 
nal terms since the mid-1980s. 
Government non-payment of 
bills to private sector contrac- 
tors is the chief reason, and 
one which is stretching to the 
limit both private companies 
and, in turn, the h anks on 
which both government and 


Pacific Dunlop 
share price hit 
by lawsuit fears 


By NHdd Tait in Sydney 

Shares in Pacific Dunlop, the 
Australian conglomerate, fell 
to a five-year low in heavy 
trading yesterday amid specu- 
lation that the company could 
face product liability suits over 
pacemakers made by one of its 
subsidiaries, Telectronics, and 
sold internationally. 

Late in the afternoon. Pacific 
Dunlop^pot out a statement, 
saying that Telectronics had 
. withdrawn three . models, of- 
pacemakers leads; and that 
physicians who implanted 
these devices were monitoring ' 
patients. The company said the 
decision followed reports of 
lead failures "over recent 
years”. 

Mr Phillip Brass, managing 
director, said the leads first 
came on the market in 1987, 
while the group bad become 
aware of problems "largely in 
the last three years”. 

Pacific Dunlop said seven 
failures had been reported in 
an implanted population of 
42JD00 recipients since Decem- 
ber 1987. Of these seven fail- 
ures, six were in the US, where 
two patients have died. One 
further fiulure was in Austra- 
lia, where 1,169 leads of this 
type have been implanted. 


The leads connect the pulse 
generator - which electroni- 
cally stimulates the heart - to 
the heart tissue. 

Pacific Dunlop noted that the 
l eads had bran approved by the 
US Food and Drug Administra- 
tion and said it was still study- 
ing the problem. “PreKminary 
information indicates a frac- 
ture in an implanted lead can 
be identified by X-ray* it said, 
adding that four faulty leads 
had been Identified in this way 
in. Japan, • 

; On the legal i&ue, Mr Brass 
said the group had received no 
product liability suits. 1 

Telectronics has sales of 
around A$400m (£l8lm), a 
third of which came from the 
US, out a group total of A$7bn. 
Pacific Dunlop has been introd- 
ucing a new generation of 
leads, but says these have yet 
to gain FDA approval, 
although other regulatory 
regimes have given a green 
tight The product withdrawal, 
therefore, has most effect on 
sales in the US, althnogh pace- 
makers made by the company 
can still be implanted using 
alternative leads. 

The statement came after the 
market closed. The shares toll 
15 cents, after a 12-cent fall an 
Wednesday, to A$&S& 


NZ fraud probe into 
ex-auditor general 


By Terry Naff in Woffington 

New Zealand's Serious Fraud 
Office is investigating the 
financial affair s of the former 
auditor general, Mr Jeff Chap- 
man - the country’s top finan- 
cial watchdog - after a highly 
critical report found he owed 
the Audit Office more than 
NZ$156,000 (£60,700). 

Mr Chapman resigned two 
months ago citing personal 
financial difficulties. Mr Brace 
McCallum, the government- 
appointed investigator, found 
that Mr Chapman had insuffi- 
cient regard for the prudent 
ex pendit ure of public' money. 
Mr McCallum said that “as the 
government’s own fi n a n ci a l 
watchdog it was a pity that 
he did not follow his own 
advice". 


The report said that much of 
the money owed to the depart- 
ment was due to overseas 
travel. Mr Cha pman travelled 
first dass and stayed at the 
best hotels and one trip alone 
cost NZ$ioi,ooo. He had also 
claimed NZ$14,000 in expenses 
and had cash advances of 
NZ$48,000. 

Mr Chapman says he dis- 
putes two-thirds of the debt, as 
well as large parts of the 
report 

Mr Paul East,- the govern- 
ment minister In charge of the 
Audit Office, said he was 
shocked and disappointed by 
the revelations which showed 
a “very unfortunate state of 
affairs”. Mr East said that 
appointment procedures relat- 
ing to senior civil servant posi- 
tions would be reviewed. 


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Our Advanced 
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Are Changing . 
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Saudi Arabia will next week 
pay back part of a S4-5bn sov- 
ereign loan tt took oat in 2991 
to help cover the costs of the 
Gulf war, bankers said yester- 
day, Reuter reports From 
Dubai. They said the payment 
was due on November 21 or 22, 
the third of five quarterly 
instalments of $9 00m each. 

Bankers said the repayments 
were watched carefully as evi- 
dence of Sandi Arabia’s finan- 
cial health after reports in the 
west that Riyadh might try to 
delay payments. 

Hie Saudi government made 
the first payment Last May on 
its first-ever sovereign loan. 

private sectors rely for financ- 
ing. 

So for there have been few 
company failures, but this is 
largely because banks have 
extended bridging credit to 
their main clients. Most of the 
kingdom's 12 commercial 
banks are now increasing pro- 
visions and hoping for a 
revival of government pay- 
ments. But between the 
Increasing demands or private 
clients and the government’s 
equal reliance on bank financ- 
ing, bankers say the system is 
now at capacity. 

Money supply and bank 
deposits are both down in 


Saudi Arabia: GDP 


GDPtSbnJ 
125 


FteS growth, annual % change 


Par capita (5*0005 


- 1900 91 92 93 

Source: Wsstam aconamtots A Dawstroam 

recent months. And though 
Saudi British Bank this year 
pioneered a $280m floating rate 
note to help ease the govern- 
ment’s pinch, and is believed 
to be considering a second, 
bankers say they have reached 
the crunch. “The banks can’t 
deal with any more,” says a 
Riyadh banker. “More than 
half the banks are over the offi- 
cial lending limit and the rest 
are right up against Saxna’s 
[the central bank's] prescribed 
loans to deposits ratio.” 

The government has made 
almost all its borrowings 
through the sale of treasury 
bills and development bonds to 


1980 82 84 88 B8 90 92 


the commercial banks. Saudi 
Arabia's foreign debt amounts 
essentially to a post-Gulf war 
syndicated $4.5bn jumbo loan, 
which bankers say is being 
repaid. But domestic borrow- 
ing has accumulated at a pace 
which alarms the IMF and oth- 
ers. “In six years it has gone 
from zero to $84bn. which is 70 
per cent of GDP," says a west- 
ern economist. “That’s quite a 
rise." 

All of which points to the 
need for the “major decisions” 
hinted at for the January bud- 
get And with sources of bor- 
rowing drier than ever, the 
government has apparently lit- 


tle option but to broaden its 
revenue base. One option, 
which King Fahd has men- 
tioned twice in recent 
speeches, is privatisation of 
some of the state's assets. But 
while Saudi nffiriais have can- 
vassed preliminary informa- 
tion about managing state sell- 
offs from, among others, the 
British government, most 
observers believe privatisation 
to be some way off. 

A sale of some of the govern- 
ment's 70 per cent holding in 
Sable, the industrial holding 
company, is not ruled out But 
Saudia. the heavily subsidised 
state airline, for instance, 


would require considerable and 
costly restructuring to make it 
attractive to buyers. 

Another much discussed 
Option would be to raise elec- 
tricity, petrol, water or tele- 
phone charges, which are 
indulgently subsidised. Petrol, 
for example, is 5 cents a gallon. 
But this would be a brave step 
an to hugely sensitive political 
terrain, such a move would 
almost certainly excite opposi- 
tion - not least from hardline 
Islamists who argue tha t the 
country's wealth should be 
enjoyed as a right by all. 

They are also highly critical 
of what they see as royal prof- 
ligacy, and would politi- 
cal mileage out of attempts to 
tax Saudis while senior princes 
continue to build palaces. And 
they are not alone. Hard- 
pressed Saudi businessmen 
have also become unusually 
critical of royal spending, and 
royal economic management 
“There's not been a year like it 
in terms of the openness of the 
grumbling,” says a seasoned 
foreign Riyadh banker. 

September's unrest in Bur- 
ayda, when more than 100 dem- 
onstrators were arrested after 
the detention of a cleric who 
was critical of the royal family, 
will have given the govern- 
ment pause. Not least because 
the agricultural area around 


Burayda, while historically a 
sternly Islamic heartland, was 
also among the most affected 
by the government’s main 
structural budgetary change to 
date - a swingeing cut in pre- 
viously generous subsidies to 
wheat farmers. 

How King Fahd weighs such 
factors in making the budget 
decision - for the ultimate 
decision will be his - is 
unknowable outside his dose 
court So is the true state of 
the kingdom's fip aTiras - Some 
observers believe oil pawing* 
this year, for example, have 
been better than budgeted for 
last January. They point to 
IMF figures showing that 
reserves, minus gold, rose from 
an April low of $4L5bn to $8.4bn 
in July. King Fahd may there- 
fore believe the government 
can muddle through another 
year, crossing fingers for an 
improvement in the oil price, 
without having to take awk- 
ward political decisions at aiL 

As one diplomat puts it: 
“There's almost a tradition 
here of putting off difficult 
derisions until there seems to 
be absolutely no other choice.” 
Only on January 2, therefore, 
will anyone outside the royal 
court know quite how seri- 
ously the Saudi government 
believes its present economic 
difficulties really are. 


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FINANCIAL. TIMES FRIDAY NOVEMBER IS 1994 ' 



NEWS: WORLD TRADE 


Regulation blamed for stifling new EU jobs 


By Robert Taylor, Employment Editor 

Government barriers to competition 
rather than Labour market rigidities 
explain why recent employment cre- 
ation baa been lower in the European 
Union than in the US and Japan, 
according to a study on comparative 
employment performance published 
today by McKinsey Global Institute, 
research arm of the leading interna- 
tional consultants. 

The report asserts: “If European 
countries had matched the job cre- 
ation performance of Japan and the 
US over the 1960s without suffering a 
productivity penalty, their gross 


domestic products would be 5 to 15 
per cent higher and their unemploy- 
ment problems would have gone 
away." 

The study urges European policy- 
makers to “abstain from regulations 
limiting competition even if they are 
intended to preserve jobs”. Strength- 
ening general anti-trust regulations 
and removing barriers to market 
access "are important instruments for 
increasing competitive intensity and 
overcoming vested interests''. 

The report examines employment 
performance in a number of indus- 
tries, ranging from cars, computers, 
furniture and banking to film/video/tv 


and construction. It covers the US. 
Japan, France, Germany, Italy and 
Spain, and concludes "product market 
barriers play an important role in 
determining employment levels". 

The report says restrictions in 
Europe have “inhibited the emer- 
gence of new labour-intensive seg- 
ments" in the fllm/tv/video industry 
while in European construction "the 
myriad rules and regulations" of land 
use. building quality, safety, rent and 
taxes stifled the product market 

U adds that in Europe retail trade 
has been hit by “restrictive opening 
hours, excessive zoning restrictions 
and the veto power given existing 


retailers' thereby limiting the cre- 
ation of new jobs. 

The study also urges reform of 
Europe's labour market institutions, 
calling for stricter rules covering pay- 
ment of unemployment benefit and 
social assistance and cuts in non- 
wage labour costs for part-time work- 
ers and the low paid. 

McKinsey also questions a number 
of widely held assumptions about the 
alleged inflexibilities of the western 
European labour market It suggests 
job protection regulations do not 
“play a major role” in creating rigidi- 
ties. 

The study notes: "While many 


employers complained about inflexi- 
bility in interviews, the evidence 
showed when companies were forced 
to react to dramatic changes in the 
market place, they were able to over- 
come these barriers. The transaction 
costs of hiring and firing play a rela- 
tively minor role compared to total 
labour costs.” 

McKinsey also found that while 
Europe “may lack the institutions 
that can provide temporary workers 
and in some cases there are restric- 
tions on part-time work, this is not a 
binding constraint". 

Employment performance, McKinsey 
Global Institute, Washington DC Free. 


Paris all at sea over shipyard subsidy deal 

Withdrawing threat to scuttle OECD accord is proving difficult, writes David Buchan 


T he French government 
is trying to wriggle off 
the hook on which it 
impaled itself when it publicly 
threatening to torpedo the 
international agreement to ban 
direct subsidies to shipbuilders 
from 1996. 

It will not be easy. Even 
before be formally opened his 
campaign for the presidency, 
Mr Jacques Chirac, the GauU- 
lst leader, was fulminating at 
the accord, negotiated in the 
Organisation for Economic 
Cooperation and Development 
last July. 

Mr Chirac dubbed it the 
“maritime Blair House”, a ref- 
erence to the preliminary 
transatlantic farm deal two 
years ago that was so hated in 
France. His presidential rival, 
the prime minister Mr Edouard 
Balladur, must therefore make 
any clim b-down as discreet as 
possible. 

In fact, unlike French com- 
plaints about the agricultural 
Blair House, the Balladur gov- 
ernment has no real quarrel 
with the way the European 
Co mmis sion negotiated the 
OECD deal on behalf of the 
European Union twelve. It sim- 
ply rues the fact that the previ- 
ous Socialist government 
joined other EU governments 
in giving Brussels a negotia- 
ting mandate in the first place. 

Instead of being able to use 
OECD consensus rules to sty- 
mie any ship subsidy ban at 
the outset, Paris now finds 
itself with a choice of submit- 


Shipyard orders for export World LNG carriers 


As a percentage of total order book, 
December 1993 

100 - 


Volcano in service 
(to end June 1994) 


Volume ordered 
(as of July 1994) 


80 


60 


40 


20 


s 



Source Dura 

ting to the desire of ail its U 
EU partners to ratffy the 
accord, or blocking an interna- 
tional agreement that already 
carries the signatures of the 
US, Japan, South Korea, Fin- 
land, Norway and Sweden, 

The latter option puts Paris 
on a collision course with 
Bonn, which is keen to get the 
OECD deal ratified during its 
EU presidency, preferably by 
EU foreign ministers on 
November 28. 

Paris is banking on Bonn’s 
help in finding a formula to 
save lace. It was US complaints 
against German subsidies that 
triggered the OECD negotia- 
tion, and Paris reckons it 
deserves to be reciprocated for 
agreeing to let Bonn give a spe- 
cial, temporary subsidy (equiv- 
alent to up to 36 per cent of 


9ouroo: Cftambre Synrfcate de Constructeus Navatoa 


turnover) to the Rostock yards 
in eastern Germany. 

The main effect of the OECD 
deal would be to ban. from Jan- 
uary 1 1966, direct subsidies 
which, in the EU, are allowed 
to be up to 9 per cent of a 
ship's cost. The Commission is 
now advising France to cease 
its fixation about the ban of 
this direct subsidy, and to 
make the most of permitted 
indirect aids. The OECD accord 
allows governments to pay up 
to 100 per cent of a yard's 
research costs and 25 to 35 per 
cent of its development costs, 
as well as some environmental 
and training aid. 

But CSCN. the French ship- 
builders’ association, was yes- 
terday unenthusiastic. “Ship- 
yards on average only spend 1 
per cent of turnover on 


research, and perhaps 2 per 
cent if you define research ‘cre- 
atively* like the Japanese." 
said a CSCN official. “Even if 
the government pays for all of 
this, it wouldn't compensate 
for the disappearance of direct 
subsidies.” 

The OECD accord gives three 
other EU countries - Spain, 
Portugal and Belgium - longer 
to phase out direct subsidies, 
because they have agreed to 
new capacity reductions. But 
France refused any further for- 
mal restructuring, arguing in 
the words of Mr Fabrice Theo- 
bald. head of CSCN. that the 
industry “has so little capacity 
left to lose”. 

Over the past 18 years, 
employment in the sector has 
fallen from 25,000 to 4,800. 
Some 4,000 of these work at St 


Nazaire for Chan tiers de l’At- 
lantique (CAT), which is 
owned by GEC-Alsthom, the 
Franco- British joint venture. It 
bas a new plan to boost pro- 
ductivity by 30 per cent over 
five years, but hopes to do this 
with minimal cuts in capacity 
or jobs. 

Apart from CAT, French 
civil shipbuilding is composed 
of Constructions M6caniques 
de Normandies at Cherbourg 
(which tried to save Swan 
Hunter in the UK from going 
under). Chantiers du Havre, 
and smaller operations at St 
Malo, Dieppe and Lorient. 
None of these locations - even 
St Nazaire. which has high 
unemployment - warrants 
regional aid, which other Euro- 
pean yards are eligible for. cer- 
tainly not on the scale of Ros- 
tock's. 

Some of these companies get 
a few French naval contracts. 
But the vast bulk of that is 
reserved for the French navy's 
own huge DCN yards at Brest, 
Lorient and Toulon, which 
employ about 30,000 people. 

The OECD accord allows 
governments to subsidise 
“home credit” to their own 
shipowners to the level they 
subsidise "export credit" to for- 
eign buyers of their ships. But, 
with the French merchant fleet 
now only ranking 36th in the 
world. France complains it 
hardly has any shipowners left 
to take advantage of these 
“home credits". 

French ^hipping is unques- 


tionably in poor shape; the 
average age of the 210 French- 
flagged vessels has doubled to 
15 years over the past decade. 
Compagnie Generate Maritime 
is pulling out of Asian and. 
North Atlantic routes in an 
effort to cut its losses so that 
one day the government can 
realise its plan to privatise the 
shipping group. The private 
Bollore group has also scaled 
down its shipping operations. 

Of the 15 ships on order from 
French shipowners now, only 
four are to be from French 
yards. The mismatch between 
domestic supply and demand is 
the result, as Mr Theobald 
admits, of his industry’s deci- 
sion to sidestep cut-price com- 
petition from Japan, Korea and 
Poland in containers- and bulk 
carriers, and to specialise in 
passenger liners, LNG gas car- 
riers and ferries, where they 
only face F inlan d and Italy. 

In one sense, this has paid 
off. CAT has in terms of orders 
20 per cent of the world LNG 
market and, with the Royal 
Caribbean Cruise Une recently 
ordering a new 2.000 passenger 
cruiseship and placing an 
option on another, the St 
Nazaire yard has a similar 
share of world orders for pas- 
senger liners. 

But the upshot of such speci- 
alisation is that FTench yards 
depend on exports for more 
than 90 per cent of their busi- 
ness. and have left themselves 
little home market to fall back 
on. 


Hope dims for all- Americas trade bloc 

Stephen Fidler, Nancy Dunne and Bernard Simon on plans for a wider Nafta 


T he US and its western hemi- 
sphere trading partners are 
struggling to chart the next 
stage in the economic integration of 
the Americas. 

After the successful negotiation, of 
the North American Free Trade 
Agreement between the US, Canada 
and Mexico, which came into force at 
the beginning of the year, hopes were 
high that the accord could be the first 
step towards a free trade zone across 
the hemisphere. 

In the afterglow of Nafta's passage, 
the Clinton administration called a 
summit of western hemisphere heads 
of state. That summit, to which all 
the region's heads of state except 
Fidel Castro were invited, is due to 
take place in Miami on December 9 
and 10. 

Since last year, however, the pros- 
pects for hemispheric economic inte- 
gration have receded, rather than 
advanced. While integration across 
Latin America has continued apace, 
the idea of the US being at the centre 
of a hemispheric free trade zone has 
suffered badly. 

The Clinton administration lost its 
authority to push through trade 
agreements under "fast track" - with- 
out line-by-line scrutiny by Congress. 
With that receded prospects of a rapid 
accession to Nafta of Chile - the next 
country in line. Also buried was a 
proposal that would give for a period 
the countries of central America and 
the Caribbean “Nafta parity" - the 
equivalent access to the US market 
enjoyed by Mexico. 

The losses for Mr Clinton's Demo- 
cratic party in last week’s mid-term 
congressional elections have further 
increased uncertainty abont his 
administration's ability to carry 
through on its promises. And while a 
row over Haiti has been averted by 
the success so far of US intervention 
there, Latin countries will raise the 
contentious issue of the US embargo 
against Cuba. 

All this has worried some partici- 


Chilean President Eduardo Frei said 
Chile would enter the North 
American Free Trade Agreement 
(Nafta) “sooner or later,” Reuter 
reports from Tokyo. He also said the 
summit of the Americas in Florida 
next month would raise trade issues 
including Nafta. Foreign Minister 
Jose Miguel Insniza said he was 
“very optimistic” about talks aimed 
at bringing Chile into Nafta, but did 
not expect any significant advances 
until next year. Chilean officials have 
been in contact with Clinton 
administration officials about how 
and when to bring Chile, next in Une 
to join Nafta, into the free-trade pact 

But Chile’s move into the 
agreement was put on hold in 
September when the Clinton 
administration withdrew from 
Congress clauses which would give 
US negotiators “fast-track” powers to 
implement bills without amendment. 

Chile became the 18th member of 
the Asia-Pacific Economic 
Co-operation (Apec) in Indonesia fills 
week. President Frei and US 
President Bill Clinton met for talks 
including trade issues at the Apec 
forum. “The Apec includes the 
members of the Nafta. such as the 
US, Canada and Mexico. This means 
that Nafta is a part of the Apec at the 
same time," Mr Frei said. 

See Feature: Different aims, common 
cause 

paring governments. In a bid to 
ensure that a lack of progress towards 
hemispheric integration does not 
imply the process will go into reverse, 
Canada, Mexico and Chile have been 
pressing the US to come up with a 
coherent hemispheric strategy for the 
summit 

Some governments now think the 
summit may do something useful, 
after all Mr Eduardo Aninat, Chile's 
minister of finance, said last week: 
"Three months ago. we saw the sum- 
mit as having a very iinehalleng in g 


agenda. It’s OK to talk about good 
government, corruption and drugs 
and that kind of thing - but trade had 
to be part of the talks. Otherwise, we 
would not have needed all those presi- 
dents and ministers there. Now, we 
think there might he an interesting 
discussion.” 

He said he saw two possible con- 
crete developments emerging from 
the s ummi t 

• A survey of existing trade and 
integration arra n gements in the hemi- 
sphere to bring out what tariff and 
other rules apply. This would be a 
first step to ensure that current free 
trade arrangements do not place 
obstacles in the path of future eco- 
nomic integration. 

• A timetable for action that would 
“at file very least" freeze existing tar- 
iff and non-tariff barriers within the 
region. 

The patchwork of free trade agree- 
ments and customs unions that has 
been established in the region has 
been a source of worry for some trade 
experts. They are concerned that 
rules of origin and other arrange- 
ments in some free trade accords 
would be incompatible with others. 
They are also worried that the prolif- 
eration of bilateral free trade accords 
oould hinder broader economic inte- 
gration. 

These concerns are reflected in a 
joint paper from three pan-American 
organisations - the Organisation of 
American States, the InterAmerican 
Development Bank and the UN Com- 
mission for Latin America and the 
Caribbean - prepared for the summit 
Moving towards free trade in the 
hemisphere through bilateral accords 
“has several inherent limitations 
which make it less viable and less 
active than a multilateral route". 
Using Nafta as a basis for a multilat- 
eral approach, it says, would be 
“strong option". 

This is the route favoured by Cana- 
da's Liberal government A year ago, 
it was dithering over whether or not 


to ratify Nafta. Now it views Nafta 
enlargement as a centrepiece of for- 
eign policy. Ottawa is nervous of los- 
ing what limited influence it has, 
should the US cut bilateral deals with 
its Latin American trading partners. 
Some work - such as harmonisation 
of trade statistics - is already under 
way to smooth the way for Chile’s 
entry into Nafta. 

“We’re trying to make it as easy as 
possible for Nafta accession to go 
ahead should the US decide to do the 
right thing," says one Canadian offi- 
cial. 

The joint paper suggests the sum- 
mit set a target date - for example, 
the year 2000 - to complete formal 
multilateral negotiations on a hemi- 
spheric free trade zone. 

It proposes a commitment to annual 
ministerial meetings to establish prin- 
ciples to underpin the negotiations 
and to avoid the creation of obstacles 
against hemispheric integration. It 
says an existing group - the OAS 
special committee on trade - should 
act as the forum for these meetings, 
thereby avoiding the premature estab- 
lishment of an institution which may 
not be the most appropriate in the 
long-term. 

I t also suggests more support, in 
particular from the IADB, for 
investments linked to integration 
and trade, such as regional infrastruc- 
ture projects. Priority finance could 
be given to those groupings following 
principles laid down by the OAR com- 
mittee. 

Mr Jeffrey Garten, the Commerce 
Department undersecretary for inter- 
national trade, says the US would like 
the summit to endorse free trade in 
the hemisphere and adopt “concrete 
measures” to move towards that goal. 
However, the process will not be 
rapid. He acknowledges that “our 
goals cannot be achieved in one year, 
or even five" but says “the momen- 
tum towards trade expansion should 
be bolstered and accelerated”. 


Uruguay 
Round ‘could 
benefit all’ 

By Nancy Dunne in Washington 

Market liberalisation agreed in the 
Uruguay Round could benefit all 
countries and reduce trade conflicts 
and protectionism, according to a 
report issued yesterday by the Inter- 
national Monetary Fund. 

“Given the fairly long implementa- 
tion period, any transition costs are 
likely to be felt gradually, providing 
time to exploit the opportunities 
opened up by the Round,” the report 
says. However, developing countries 
could suffer from two costs of transi- 
tion: the decline of benefits from pref- 
erence schemes, under which indus- 
trialised countries allow specified 
imports with little or no duties, and 
also higher food costs. 

The IMF says preliminary analyses 
suggest that erosion of preference 
margins is smalL The main beneficia- 
ries have been the more advanced 
developing countries, which have 
more to gain from tariff cuts and 
liberalisation of agricultural, textile 
and apparel trade. However, some 
countries (notably in North Africa 
and the Caribbean), which rely over- 
whelming on preferences on indus- 
trial products, could be adversely 
affected. Although developing coun- 
tries which import much of their food 
might be hurt by higher prices, farm 
sectors in other countries could 
thrive as world market distortions 
are reduced. 

Countries protecting their fanners 
may simply replace their quotas with 
prohibitive tariffs, the report notes, 
and anti-dumping measures could 
still be used for protection. 

Still the achievements in market 
liberalisation, strengthening of roles 
and institutions and extension of dis- 
cipline to new areas will be far reach- 
ing, the report said. “Equally impor- 
tant, it bas created an environment 
conducive for tackling future chal- 
lenges in trade policy.” 


WORLD TRADE NEWS DIGEST 



He US will remove Thailand from its *prkjrily watch Ifaj* of 
countries threatened with US trade Sanctions for violating 
intellectual property rights, followup the recent passage 
through parliament of Thailand's hew copyright law, Mr War- 
ren Christopher. US secretary cf state, said yesterday. Tfcat 
land wiR be moved to the less rigorous *watch, hs£ under the 
terms of US trade legislation known as “Special 30ir, accord- 
ing to senior US officiate 

“We wfll continue to keep a close ^ye on Ufanand's prtftec- 
tion of Intellectual property rights,” Mr. Christopher -told 
reporters in Bangkok. “Improved protection OLthese rights 
could prevent the loss of over $l50m in annual income to US 
firm s ” Pirated computer software, videos and music cassettes 
are easily obtainable in Bangkok,, but the new Thai law 
pvtpnrig copyright protection to software and provides- for jail 
terms of up to four years and flues of up to Bt8Q0#QQ' ($32,000). 
Mr Christopher also said the Thai government had agreed, to 
open its market for the first time to American citrus products. 
• Thailand will offer export insurance faeflities starting on 
November 23 to boost the competitiveness of the country’s 
exporters. Victor MaKeU Bangkok : ~ . ! : 

5 groups bid for Israeli tunnel 

Five groups of Israeli and international companies have been 
selected for the final stage of an international tender to 
construct a 3150m highway tunnel and toll road near the 
Israeli city of Haifa. The Htofa or “Carmel" tunnel, expected to 
be completed by the year 2000, is the first infrastructure 
project in Israel to-be submitted to international -tender and 
the first in which all stages of production will be carried oqt 
by private contractors. ’ 

The highway will be the .first toll road in Israel and tf 
successful the project could pave the way for the private 
sector into a vast array of infrastructure projects in transport, 
water and communications. The groups picked for the 5km 
Carmel tunnel are international companies spectehsing in 
t unnelling and electronic traffic control systems to operate toll 
roads. Among companies included in fee groups are Astaldi erf 
Italy, Fongerofle International of France, Dragados Construo- 
tfones of Spain. Autostrade of Italy,. .Parsons Brinckerhoff .of 
the US, Abay TS of France and LK Comstock, a US subsidiary 
of Spie Batignoles of France. Julian Ozarme, Jerusalem 

Deals for UK mission in India 

The UK’s biggest-ever trade 
mission - a week-long tour to 
four in India - notched 
up further successes yester- 
day when two small UK com- 
panies signed distribution 
and technical agreements 
with Indian concerns. The 
mission, led by Mr Richard 
Needham, the trade minister 
(pictured left),- aims to win 
deals in the fast growing 
Indian infrastructure market 
and halp gmaHor UK compa- 
nies secure business. Speak- 
ing in Bombay, Mr Needham 
pointed to the success of 
Chedrpomt Security Services, 
a small Reading-based com- 
rtf-A pany, which has signed an 
agreement with Bradman of India enabling distribution 
throughout India of its cheque security products. 

Mr Needham said this showed it was not only big comp an ies 
which oould success in overseas markets. *1 would encourage 
the small- and medium-sized c ompanies to explore the Tertian 
market,” he said. Another company, Uxbridge-based High 
Value Horticulture, secured three tie-ups with Indian compa- 
nies to supply technical knowhow, expert advice and specialist 
planting material for food processing and horticulture. Andrew 
Baxter, London 

Airbus to freeze part prices 

Airbus Industrie said it would freeze the price of spare parts 
for its aircraft at cu r ren t 1994 prices for orders next year. The 
statement follows recent reports that US rivals Boeing and 
McDonnell Douglas are close to landing big aircraft orders in 
the competitive world jet market Mare than 80 per emit of 
Airbus’s suppliers have joined the price freeze, which covers 
parts for early Airbus aircraft as well as those to current 
production. Airbus has spares centres in Hamburg, Singapore 
and Washington DC which together stock $750m of parts. It is 
opening a centre In Beijing. The Airbus consortium comprises 
Aerospatiale, British Aerospace, Dasa of Germany and Casa of 
Spain. Reuter, Paris 

Contracts and ventures 

Fuller Engineering, the American half of Danish FLS 
Industries’ cement technology and equipment group, has won 
a contract to supply a DkrSOOm ($83m) cement plant to Indon- 
esia. which will increase Indonesia's cement capacity 

by 25 per cent when it comes on stream in the second quarter 
of 1997. The 7,800 tonnes a day plant was ordered by P T 
Semen Gresik for construction at Tuban, Bast Java, where 
Puller has already supplied a plant with output capacity erf 
7,500 tonnes a day. The new order is accompanied by a 
memorandum of understanding for the supply of a third plant 
at Tuban, for which it is expected that negotiations win be 
completed in the first half of next year, said FLS Industries. 
Hilary Barnes in Copenhagen 

* Northern Telecom of Canada has received an $llm order 
for a digital switching system from the Chongqing Telecom- 
munications Bureau. The system will serve nine districts in 
toe city area, providing over 100,000 telephone lines. AFX 1 
Hong Kong 

IBM and Russia’s Stolichny Bank have signed an agree- 
ment to deliver and install 2,000 automatic cash dispensers. 
Full financial details were not available but IBM said it would 
organise a credit to finance the first stage. Reuter. Moscow 

Boeing, of the US have flown a Boeing-757 
aircraft into the world s highest airport and may sfartregular 
semces. The Cml Aviation Administration of China is co-op- 
erating with Boeing to open flights to Bamda airport in east- 
ern Tibet. Reuter. Beijing ^ 6351 

5 PfaHninga joint venture with Nippon 
produce *** “ariret plant protec- 
tmn products. It will also market and produce the herbicide 
Poast, ^eloped by Nippon Soda. BASF already markets ftto 
North andSouth America. The venture hopes for annual galea 
of over SlOOin. AFX, Ludmigshafen sauaj 



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//III 



FINANCIAL TIMES FRIDAY NOVEMBER 18 1994 


NEWS: THE AMERICAS 


Republicans I Pugnacious Newt takes a new tack j Cardoso 


promise new 

telecoms bill 


Bomb-thrower of far right seeks to become a leader, says Jurek Martin 


By George Graham 
fn Washington 


Senate Republican leaders are 
promising an all-out effort to 

J®® 8 , telecommunications 

legislation early next year 

Pressler of South 
I«kota, who will take over as 
chairman of the Senate com- 
merce committee when the 
new Congress meets in Janu- 
ary, said he plans to meet 
other Republican senators, 
including Sen Robert Dole, the 
forty's leader, to sketch out 
ideas for a telecommunications 
bill in the next two weeks “If 
we don’t pass the bill next year 
I don’t think it’s going to hap- 
pen In the election year.” he 
warned. 

Telecommunications legisla- 
tion passed the House of Repre- 
sentatives this year. Although 
a similar bill was agreed by the 
Senate commerce committee, it 
never made it to the Senate 
floor, largely because of objec- 
tions from Mr Dole. 

Companies in the telephone 
and broadcasting Industries 
are increasingly anxious to 
have a new set of rules to 
replace the 60-year-old law 
which has been overtaken by 


technological and competitive 
changes. 

“There seems to be unani- 
mous agreement that if we 
could agree on a bill and get 
the rules set, everybody would 
be better off,” Mr Pressler said. 

The thrust both of this year's 
House bill and of the bill pro- 
duced by Sen. Ernest HoliingS, 
the South Carolina Democrat 
from whom Mr Pressler will 
take over the committee chair- 
manship, was to let cable com- 
panies, local telephone compa- 
nies and long-distance 
telephone companies enter 
each other’s markets, though 
the different versions differed 
on how quickly this should 
happen in each sector. 

The activities of the Baby 
Bells, the regional telephone 
giants which have a near 
regional monopolies on local 
telephone service, are now 
restricted under terms of the 
court order which created them 
10 years ago by breaking up 
the original AT&T monopoly. 

Mr Pressler said he expected 
to produce a bill somewhere 
between the Hollings bill and 
the alternative proposed by Mr 
Dole, which leaned closer to 
the Bells’ position. 


Housing activity 
declines in US 


I f as Erich Segal once 
wrote, “love means never 
having to say you’re 
sorry", then Mr Newt Cingrich 
has never known true 
romance. The evidence is that 
once or twice over the last 
week he has been caught 
apologising for being a bit too 
rude to the President and First 
Lady. 

The speaker-presumptive of 
the US House of Representa- 
tives has even apologised for 
himself, of whom he was 
j always reckoned to be extraor- 
dinarily fond. He told a prime 
time television audience; “The 
truth is occasionally I’m not 
very smart. . . I probably need 
to be 30 per cent less pugna- 
cious and 50 per cent less nega- 
tive,” 

Indeed, his first week since 
the Republican electoral land- 
slide may be seen as a remark- 
able voyage of discovery for 
the nation's capital. The great 
game is to ascertain if the 
bomb-thrower of the far right 
has been transformed into a 
new kind of leader capable of 
doing business not only with 
the Democrat in the White 
House but with those in his 
own party less persuaded by 
his own ideological convic- 
tions. 

The new emollient Gingrich 
has struck a few chords - one 
even from across the Pacific. In 
Jakarta, President Bill Clinton 
shni-iwyi hie dwindling liberal 
constituency by suggesting 
that the next speaker might 
have a point in wanting the 
reint reduction of voluntary 
prayer in state schools, pro- 
scribed by the US Supreme 
Court in 1962 as a violation of 


i 

r 



Gingrich complaining about negative stories written about him 


the constitutional separation of 
church and state. 

Back home, the White House 
scurried about to clarify that 
Mr Clinton was not supporting 
Mr Gingrich's modus operand! 

- a constitutional amendment 

- but rather saw nothing 
wrong in time set aside for 
“quiet reflection" in schools. 
But the president also agreed 
to sit down to a policy summit 
with the new Republican lead- 
ership early next month, if not 
before. 

In assigning committee 
chairmanships in the next Con- 
gress, Mr Gingrich also showed 
a willingness to forgive and 
possibly forget. Most conspicu- 
ous was his support of Con- 
gressman Gerald Solomon of 


New York to run the roles 
committee. Mr Solomon is cer- 
tainly conservative enough but 
once had the temerity to chal- 
lenge Mr Gingrich for the posi- 
tion of minority whip, an 
offence considered tantamount 
to Use majesty in the old Ging- 
rich handbook. 

He also had no problems 
with the selection of Congress- 
man Benjamin Gilman, 
another New Yorker, to head 
the foreign affairs committee. 
He is a leading party moderate 
who promises to offer a 
counterweight to Senator Jesse 
Helms's right-wing steward- 
ship of the counterpart Senate 
panel. 

Unlike Mr Helms, who 
threatened in a letter to Mr 


Clinton to create all sorts erf 
trouble on foreign policy if a 
vote on the Gatt treaty were 
not postponed until next year, 
Mr Gingrich also renewed his 
promise to work for approval 
later this month. 

Finally, the next speaker 
said be would make his House 
a more humane and “family 
friendly'' place in which to 
work. Democratic staffers on 
Capitol Hill, tedng job losses 
running into many hundreds, 
construed tw« as waning they 
would be spending more time 
with their familie s though his 
proposed abolition of three 
standing committees - on the 
merchant marine, the post 
office and civil service and the 
District of Columbia - will cer- 
tainly cut down on the work- 
load. 

On the other hand, in 
speeches and interviews 
beyond number, the Gingrich 
message was as much one of 
no compromise as it was of 
co-operation. Regardless of 
what the Republican Senate 
does next year, the “Contract 
with America" manifesto 
promising less government, 
lower taxes and more prisons 
will be on the House agenda 
from the very beginning. 6 will 
even be read out loud at the 
start of each daily session. 

Mr Gingrich described his 
mandate with these blunt and 
familiar words: “There's bees 
an enormous effort in the 
Washington elite to avoid the 
reality that this election was 
actually about some fairly big 
ideas. . . those who argued for 
counterculture values, bigger 
government, redlstributionist 
economics and bureaucracies 


were on the losing end in virtu- 
ally every part of the country." 

An important part of this 
“elite” Is, of course, what Mr 
ftingrieh has long seen as a 
pernicious “liberal" media, and 
it has to be reported that the 
course of true love between the 
next speaker and the press is 
already running no more 
smoothly than it has done with 
the current president 

Of many assaults from the 
left, Anna Quindlen's in the 
New York Times was merely 
the most pointed in writing of 
his “not-Iike-us ethos (that] 
makes so much bigotry possi- 
ble". Even the non-doctrinal 
David Binder of the Washing- 
ton Post contrasted his “arrest- 
ing, powerful ideas” with “the 
demons he seemingly cannot 
control”. 

Mr Gingrich is thin-skinned 
en ou gh to have hr ,rmB ^ from 
his office reporters from the 
Atlanta Journal Constitution, 
his home-town newspaper, 
after it ran a cartoon recalling 
the circumstances of the 
break-up of his first marriage. 
As Mr Clinton knows only too 
well, even ancient and per- 
sonal history is no longer off- 
limits for those in power. 

Even those long forgotten 
can stm bite back. No sooner 
had Mr Gingrich assailed the 
Clintons as “counterculture 
McGovenuks” than ex-Senatar 
George McGovern himself; the 
failed presi dential candidate of 
1972 and more recently New 
England hotel-keeper, was 
back in print professing “noth- 
ing hut rttedaiw towards this 
unscrupulous demagogue”. 
This is one love affair never to 
be consummated 


gears up 
for drive 
on reform 


By Angus Fosterm SSo Paulo 


By George Graham 
In Washington 


Home building activity fell in 
the US last month, the Com- 
merce Department reported 
yesterday, showing that rising 
interest rates were starting to 
damp the homing market even 
before this week’s Federal 
Reserve decision to raise 
short-term rates by % of a per- 
centage point 

Privately owned housing 
starts fell to a seasonally 
adjusted -annual rate 1 of L42m 
In October,. the Commerce 


Department said, 5 per cent 
below September's revised rate 
of L5m and only fractionally 
above the rate in October last 
year. 

The drop was created by a 7 
per «>nt fell in the number of 
single family homes started to 
an annual rate of 1.14m in 
October. 

The number of new building 
permits issued also fell to a 
seasonally adjusted annual 
rate of 2.4m, 2 per cent lower 
than in September but still 8 
per cent higher than in Octo- i 
her a year ago. 


Handful of mid-term poll results undecided 


By Jurek Martin in Washington 


A handful of results from last week’s 
mid-term elections remained undecided 
yesterday, making the final size of the 
Republican majority in the House of 
Representatives still in doubt 
But Mr Parris deadening, the Demo- 
crat, finally felt secure enough to 
announce his transition faam as gover- 
nor-elect of Maryland. With only 1A00 
absentee ballots to be counted, his lead 
of 5,405 votes seemed unassailable, 
although Mrs Ellen Sauerbrey. the 


Republican, still refused to concede 
defeat and was alleging unspecified vot- 
ing irregularities. 

In California, Congressman Michael 
Huffington, the Republican, also had 
not conceded to Senator Dianne Fein- 
stein, though her lead had widened to 
nearly 138,000 votes with just over 
500,000 still to be counted. 

The outcome of one House race, in 
Connecticut, seems certain to be 
decided either in the courts or in the 
House itself. The final tally gave Con- 
gressman Sam Gejdenson, the Demo- 


crat a four-vote lead, double the first 
count over Mr Edward Munster, but 
state officials refused to certify the 
result 

In 1984, an equally close race in Indi- 
ana was eventually decided by the 
House itself, then under Democratic 
control, in favour of the parly's candi- 
date, Mr Frank McCloskey, after a 
recount had given the edge to a Repub- 
lican. 

In California, Washington and New 
York, three first-term Democrats - Jane 
Barman, Elizabeth Furse and Maurice 


EQnchey - were clinging to tiny leads, 
but all less than the number of votes 
still to be counted and with challenges 
on the cards. If these three and Mr 
Gedjenson survive, the House tine-up 
would be 230 Republicans, 204 Demo- 
crats and one independent 
Likely to be announced today is the 
result for the Alaskan governorship 
now held by Mr Walter Hickel, an inde- 
pendent The last count gave Mr Tony 
Knowles, the Democrat a 517-vote lead 
over Jim Campbell, the Republican, 
with about 9,000 ballots outstanding. 


Mr Fernando Henri qne 
Cardoso, Brazil’s president- 
elect yesterday promised to 
deliver “sustainable” eco- 
nomic development and said 
the victories of candidates 
from his Social Democracy 
party (PSDB) in this week’s 
state elections showed voters 
wanted a “more modem, more 
open” economy. 

Mr Cardoso, who takes office 
on January l. was speaking 
after Tuesday’s elections in 
which the PSDB won six out of 
27 governorships, including 
the three most important 
states. Political analysts say 
the party’s strong perfor- 
mance, and Mr Cardoso's easy 
win in the presidential race 
last month, has given him an 
exceptional opportunity to 
posh ahead with reform of 
Brazil’s economy and govern- 
ment. 

Mr Cardoso said his advisors 
were working on detailed 
reform proposals, which would 
be announced closer to his 
inauguration. He the first pri- 
ority would be to continue the 
struggle against Inflation. 
Inflation has fallen this year 
thanks to a mw currency, the 
Real, which Mr Cardoso 
helped plan when finance min- 
ister. He said a “series of mea- 
sures” were needed to reform 
the public finances. 

As well as tax and social 
security reform, his advisers 
are thought to he planning a 
shake-up of the government 
administrative machin e end 
overhauls to the nearly bank- 
rupt state banking system. 

He said he would announce 
his cabinet “around the end of 
December" and wanted a mix- 
ture of technical and political 
experience. 

Mr Cardoso said he would 
soon begin talks with the lead- 
ers of other political parties to 
build a working majority in 
Congress. He is especially 
interested in attracting the 
support of the so-called “ethi- 
cal wing” of tire Democratic 
Movement (FMDB), the conn- 
try’s largest political party. 



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INFLUENTIAL RUSSIANS 
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Printed on the FT’s distinctive pink paper, it accompanies 
Izvestia every Tuesday and Thursday. 

Drawing on the huge editorial network of both newspapers, 
it brings up to the minute, accurate, national and international 
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FINANCIAL TIMES 
GROUP 


_ r?. - ■ 









FINANCIAL TIMES FRID AY NOVEMBER 1S1994 


NEWS: UK 


Labour leader Troubled railway project to be hived off 

1 Jj -v rv Chafes Batchelor, nard. BR director of London rejected by parliament in May. ment. It would also allow con- tunnel rail Hnk and toe assoc 

C I (Til Cl I C fll 1 w llri*P Transoort Con^soondont rail development, this would A private bill committee of stmctinn wo* to start in early ated wnfeunyof the M 2 mote 

1)31. CULk9 T Vr A • make | t easier to bring in pri- four MPs objected to it on the to mid-1997 for camptetion in way, the D epartm ent trf Ttap 

w CrossRaiL the £ 2 bn project for vate sector partners and would grounds that traffic estimates about 2002. port said yesterday. - - 

g* 9 an east - west main line rail link allow managers to focus their made in the late 1960s were no Some private sector cumpa- Details of the Impact of .tt 

Tl*AVtl HVIlATICi beneath London, is to establish energies on the project. At longer relevant and that the nies in the engineering and proposed £2.7tm rail link c 

■ | 8 1 1 1 1 lllllflll |^ itself as a separate company present CrossRail has to com- project was not sufficiently construction field have critic* communities and toe .countr 

wAAUVUtJ ... . -a-,,.*. nnfh nthpr nmiorfe hein<T in into other rail lines. ised the CrossRail nroiect as side' were published in entitro 


By Kevin Brawn, 
Political Correspondent 


The leadership of Britain's 
opposition Labour party yester- 
day delivered a double-barrel- 
led warning that it is serious 
about plans to reform the par- 
ty’s relations with the unions- 
Mr Tony Blair, the Labour 
leader, told the unions clearly 
in a nvagarine article that it 
was in their best interests not 
to be associated with one par- 
ticular political party. 

Mr Blair’s comments, in the 
leftwing magazine New States- 
man, went significantly further 
than his earlier warnings that 
unions could expect no special 
access to a future Labour gov- 
ernment 

The significance of his 
remarks was underlined by Mr 
John Prescott, Labour’s deputy 
leader, in a speech to a confer- 
ence on relations between 
managers and unions. 

Mr Prescott, regarded as the 
most traditionalist member of 
Labour's leadership, said that 
the party would no longer take 
“a partisan approach to indus- 
trial relations, sometimes in 
spite of our judgment of what 
is best". 

The concerted declaration of 
Labour’s independence from 
the unions comes as the leader- 
ship prepares for a battle with 
union leaders and leftwing 
MPs over the future of Clause 
IV, the party’s commitment to 
widespread public ownership. 
Separation from the unions 


and the emasculation of Clause 
IV are regarded by Mr Blair's 
supporters as vital elements of 
his plan to modernise the party 
by fU qfoncmg ft from Its tradi- 
tional socialist roots. 

Mr Blair, who Is expected to 
expand his view of the rela- 
tionship between toe party and 
the unions at a London confer- 
ence tomorrow, told New 
Statesman readers that unions 
. had a role in protecting work- 
ing families from economic 
change. 

But he said that unions 
could protect their influence 
only by “being a broad voice of 
the working people, not a 
direct party political voice or 
one that is concerned for a nar- 
row interest of individual 
unions". 

Hie said that unions “do not 
want, and will not get, favours 
from a Labour government”. 
Unions “should be able to 
thrive with any change of gov- 
ernment . . . because they speak 
for the broad interest of work- 
ing families”. 

Mr Blair said the unions 
must adapt to change by devel- 
oping better services or risk 
losing members to private- 
sector organisations that 
would “cherry pick" their prof- 
itable activities. 

“Just as Labour is now 
looking again at the culture, 
organisation and constitution 
of the party, so are many 
unions who see that the pres- 
ent structures and objectives 
are out of date,” he said. 


CrossRail, the £2 bn project for 
an east-west main line rail link 
beneath London, is to establish 
itself as a separate company 
with a chief executive recrui- 
ted from the private sector. 

The CrossRail scheme is a 
joint venture between British 
Rail. London Transport and 
RgiitraHr- Its three promoters 
are keen to see it become inde- 
pendent 

According to Mr Geoff May- 


nard, BR director of London 
rail development, this would 
make it easier to bring in pri- 
vate sector partners and would 
allow managers to focus their 
energies on the project. At 
present CrossRail has to com- 
pete with other projects being 
pursued by BR, London Trans- 
port and Rail track. 

The CrossRail team is work- 
ing on plans to revive the proj- 
ect by means of the Transport 
and Works Act, an alternative 
to the private bill procedure 
under which the scheme was 


rejected by parliament in May. 
A private bill committee of 
four MPs objected to it on the 
grounds that traffic estimates 
made in the Late 1960s were no 
longer relevant and that the 
project was not sufficiently 
integrated into other rail lines. 

A draft order seeking powers 
under the act will be put to 
parliament next May. 

The Transport and Works 
Act procedure being followed 
will allow detailed objections 
to be dealt with at a public 
enquiry rather than in parlia- 


ment. It would also allow con- 
struction wo* to start in early 
to mid-1997 for completion in 
about 2002. 

Some private sector compa- 
nies in the Pngintwing and 
construction field have critic- 
ised the CrossRail project as 
over-ambitious and expensive. 
They have proposed a simpler, 
scheme which involves upgrad- 
ing existing underground lines. 
• Nearly 100 homes will be 
demolished and a further 70 
wifi lose part of their gardens 
to make way for the Channel 


tunnel rafl Hnk qnd the associ- 
ated widening of the M2 motor- 
way, toe Department of Trans- 
port said yesterday. • 

Details of the impact of . the 
proposed £2.7bn rail fink on 
communities and toe cmmtiy- 

wgro plihiicTwarf m enVtmn- 

mental statements compris- 
ing 12 documents and, 54 
volumes', of special reports - 
required for such projects. ' T ' 
Several thousand petitions 
are expected to be put to the 
select comndttee which consid- 
ers the plan- 


Minister 
stalls on 



r . o 


r*?> 


r* ? 

'.r ” . 


V 


By JamesBfltz 


Adams seeks 
early talks 
on N Ireland 


• • »- 
► • i 


Mr Gerry Adams, president of 
the Irish republican Sinn F6ta 
party, yesterday made his first 
visit to the British mainland 
since the banning order on 
him was cancelled, David 
Owen writes. 

He used a crowded Westmin- 
ster press conference to urge 
the British government to 
start fe»n« with his party, the 
political wing of the Irish 
Republican Array. 

In a meeting hosted by Mr 
Tony Benn (right), the left- 
wing former Labour cabinet 
minister, Mr Adams said it 
was illogical for Britain to put 
talks on Northern Ireland 
under “unnecessary strain” by 
farther delay. 

While yesterday's visit 
provoked the fury of some 
hard-line Conservatives, 
the British government has 
promised to begin exploratory 
talks with Sinn F6in next 
month. 







Upper chamber battles for a higher legislative profile 


Mr John Major thinks be has done 
the double. In the Commons yester- 
day rebel MPs were queueing up to 
declare loyalty in the wake of the 
prime minister's threat to call a gen- 
eral election over the European 
finance bill Up toe corridor In the 
Lords, senior ministers were confi- 
dently predicting that the upper 
house is also back under control. 

Their confidence may yet turn out 
to be misplaced. The government 


has had a traumatic year in the 
Lords, and there is no evidence that 
peers regret the savage beating they 
handed out to ministers in the. last 
parliamentary s anii| ? q 
On the contrary, many peers relish 
the higher profile achieved by the 
Lords as a result of its battles with 
the government- Even some senior 
Tories say the bouse now has a bet- 
ter* public image thah~xts much 
derided democratic rival. 


Government defeats in the Lords 
are not particularly unusuaL There 
have been an average of is to 20 a 
year since 1979. But there is nervous- 
ness among some in government 
that the calibre of last year’s tussles 
between the upper house and the 
cabinet may have marked a step 
change in the Leads’ willingness to 

chgllmg p le gislatio n 

This year, say ministers, it will be 
different The Lords is under fresh 


management following the retire- 
ment of Lord Wakebam. the former 
leader, whose reputation as the cabi- 
net’s consummate “fixer" was 
tarnished by last year’s revolts. 

Government business is now in 
the hands of Viscount Cranborne, a 
former Conservative MP. and Lord 
Strathclyde, the 34-year-old chief 
whip, who has held a series of mino r 
government jobs since ente/ing the 
Lords in 1985. 


The government's business man- 
agers have learnt the lessons of last 
year, particularly the importance of 
consulting senior backbench peers 
early in the process of framing legis- 
lation . 

They have takei care to begin the 
Lords' legislative programme with 
two relatively nnoa nt rovers i al bills 
on the Scottish criminal justice sys- 
tem and agricultural tenancies 
There could be problems with the 


third bill slated for the Lords, merg- 
ing a number of environmental 
a gHTtraos. with a potentially signifi- 
cant impact on the management of 
the countryside. But the gmw wninwnfr 
ha« gone to great lungtim to minim- 
ise opposition to the hill by consult- 
ing widely on its contents, and pub- 
lishing draft clauses to test public 
and parliamentary reaction. 


Kevin Brown 


jdr Douglas' Hurd, Britain's 
foreign secretary, y esterday 
refused to give-a firm oompiit- 
ment that fixture donations for 
Malaysia’sT^^udamproject - 
would not come from toe UK's . 
aid budget. . ..... 

JFofiowiiig a court judgment 
last week that payments on the 
Pergau pngect had ^beeh file- , 
gal, opposition MPs asked Mr 
Hurd to give an assurance that 
UK expenditure on the Pergau 
project would no longer be 
made by the Overseas Develop-, 
ment Administration. 

Amid growing controversy' 
about Britain’s aidjxrogramme, . 
they also sought an assurance 
from toe foreign seoetary that - 
previous expenditure os the 
flam from, the ODA’s Aid' anfl 
Trade Provisioh would be - , 
given back. 

Mr Hurd stated in the Bhuse 
of Commons, however, that he 
bad not yet - rece iv ed the High 
Court’s fall written judgment 
oil ttm issue.' He also said he 
bad not yet decided whether to 
w pp*wi ami .that no final ded- 
sion - could be taken nnfil he ' 
did so. ; 

“There have been no deci- . • 
sions on any of these points; ' 
either on past orfuture spend- - 
tag,” Mr Hurd - said. “We.wffl- 
have to take that derision.. If I 
decide not to appeal, and as 
. soon as that decision is taken, 
the House will be informed.*- 

Mr Hurd confirmed that the 
next payment to the Malaysian 
govern m ent to help bdfai the 
dam would be madeby the end 
of the year. He also said that 
he had not been aware while - 
foreign secretary of any link 
between British aid arid weap- 
ons sales to any country. . 

Mr Robin Cook, the Labour 
opposition’s shadow foreign 
secretary, said he would' add: 
the name of Baroness . 
Thatcher, the former prime 
minister, to the "charge sheet” 
an Pergau, but added 
Hurd could not escape' Tii* 
own personal respoosiMBty." .r ; 

Hie said the episode had been 

“an alarming glrmpsp into the 

private arrogance of this gqvj 
eminent” ’• 




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FT 




BIOTECHNOLOGY 


FINANCIAL TIMh'S 

( Oiljc fCUCCS 


- A Revolution in the Making? 




London - 13 & 14 December 1994 




> • fr. : . ;.v V ^ 


This high-level meeting will review current developments in biotechnology and 
assess future trends; consider regulatory issues and discuss the challenges of raising 
the finance needed to exploit fully the sector’s potential. 

ISSUES INCLUDE: 

• Links between Pharmaceutical Majors and Biotechnology Companies 

• The Clinton Healthcare Reforms and the US Biotechnology Industry 

• The Government’s Role in Fostering Biotechnology 

• Is a Funding Crisis Imminent? 

• The Problem of Patents 




just, a milium ui uidKc a aincrvncer 

A WWF - World Wide Fund For Nature tree 
nursery addresses some of the problems taring people 
that can force diem to chop down trees. 

Where hunger or poverty is the underlying cause 
of deforestation, wc can provide fruit trees. 

The villagers of Mugunga, Zaire, for example, eat 
papaya and mangoes from WWF trees. And rather than 
having to sell timber to buy ocher food, they, can now 
sell the surplus fruit their nursery produces. 

Where trees are chopped down tor firewood, 
WWF and the local people can protect them by planting 
fast-growing varieties to form a renewable foci source. 


incw tracts ot tropical to rest would then have 
to be cleared every two or three years. 

This unnecessary destruction can be prevented by 
combining modern techniques with traditional 
practices so that the same plot of land can be used to 
produce crops over and over again. 

In La Plana da, Colombia, our experimental farm 
demonstrates how these techniques can be used to 
grow a family's food on a small four hectare plot, 
(instead of clearing the usual ten hectares of forest.) 

WWF fieldworkers are now involved in over UK I 
tropical forest projects in 45 countries around the world. 

The idea behind all of this work is that the use of 


SPEAKERS INCLUDE: 

• Dr Keith McCullagh 

Chief Executive. British Biotechnology 

Chairman, Biolndnstry Association 

• Mr Carl B Feidbaum 

President 

Biotechnology Industry Association 

• Professor Dr Horst Dieter Schlumberger 

Biotechnology Co-ordination 

Bayer AG 

• Professor Emst-Gunter Afting 
Chairman & Chief Executive Officer 
Rouse! Uclaf 


Professor Dr Jurgen Drews 
President, International Research 
and Development, Hoffinann-La Roche Inc 
President, SAGS 


#■.. ’jGlffi; IV, 

” ' K- C 

* T'::/ 


Mr Teoh Yong Sea 
Director/GeneraJ Manager 
Singapore Bio-Innovations Pte Ltd 


Mr G Steven Burrill 
Maragjng Director 
Burrill & Craves 










FINANCIAL TIMES 


FRIDAY NOVEMBER 18 1994 


9 


NEWS: UK 


structure 


By Robert Coraino 


^Strssrs 

Of* a day after the government 
SfLS “troduce legislation to 
Molifih the company's monopoly on 

S??s ly «fp l 8 ® residential 

S5?’w2SJ2“ ,,any u announce d a 
pnce restructuring that will reward 


British Gas' best customers while 
recovering some of the costs of deal- 
ing with those with poor payment 
records. 

The restructuring includes a 2.9 
per cent increase in the standing 
charge and the cost of gas for those 
customers who do not take up Brit- 
ish Gas' offer of a 5 per cent discount 
In exchange for agreeing to pay by 
direct debit 

British Gas expects 5m households 
to join the scheme. It claims that 92 


per cent of Its customers have access 
to a bank or building society 
account, and could therefore take 
advantage of the savings. 

But there was criticism that it did 
not cover prompt payers who pre- 
ferred to deal in cash, or who did not 
want to give the company access to 
their bank accounts. 

The Gas Consumers' Council said: 
“We had hoped that British Gas 
would have offered discounts for 
prompt payment by any method.” 


The company said it would extend 
the scheme to such customers later 
nest year when Its new national bill- 
ing system is in place. 

It said the removal of cross-subsi- 
dies and the establishment of cost- 
reflective pricing for various catego- 
ries of customers was essential if it 
was to compete in a liberalised gas 
market 

A spokesman noted that it cost ten 
times more to deal with customers 
who delayed paying their bills com- 


pared with those who paid cm time. 

Ofgas, the industry regulator, said 
the new pricing policy appeared to 
be “fair". The price increase is the 
first since 199L 

As additional price adjustment is 
likely next year when British Gas 
implements a regional pricing policy 
approved by Ofgas. Customers could 
face variations of plus or minus 2 
per cent to 4 per cent 

British Gas said yesterday it 
expects that any rises will be closer 


to 2 per cent The shift to more cost- 
reflective pricing is also likely to 
affect the company's policy towards 
debt and disconnection. The new 
computerised billing system should 
identify problem payers eariier. That 
will help to prevent debts building 
up. 

The company may also consider 
ways to speed up the current costly 
disconnection process, which in 
practice takes far longer than the 
legal requirement 


UKNEWSDIGEST 

Nestle to close 
factory with 
loss of 900 jobs 

N®tl§. the Swiss multinational, said yesterday it will close Its 
factory in Norwich, eastern England, in two 
years with the loss of 900 jobs. Production will be transferred 
to several other plants with the northern city of York, home of 
roe Rown tree's business Nestfe bought in 1988, apparently the 
biggest winner. 

vrlL.l 2 third tranche of job losses announced by 
Nestle since it completed a review this summer of its UK 
operations. Job losses so Ear total 2,000 out of a UK workforce 
of 17,000. Further reorganisation is expected by analysts. “We 
need to reduce our capacity and costs to improve 
competitiveness so that we can protect and develop the 
business for the future,” said Mr David Harris, manag in g 
director of Nestl§ Rown tree. 

Norwich’s production will be transfered to factories 
Newcastle-upon-Tyne, Halifax and York. Nestlfi also 
announced yesterday a new chocolate factory at York to 
replace those at Halifax and Norwich. The new plant will meet 
all Nestl6 Rown tree's needs. News of the closnre of the 
Norwich plant, which dates from 1 88 0 , *ywn»s only two months 
after Redtiit & Colman said it was willing its Colman's food 
business based in the cit since 1814. 

Obligations to Lloyd’s disputed 

Many Lloyd's of London members being pursued by the 
insurance market's financial recovery department are 
either disputing or unaware of their obligations, statistics 
released yesterday suggested. Lloyd's said the department's 
strategy of trying to enter into a dialogue with lossmaking 
Names, individuals whose assets have traditionally 
supported the market, was working. But more than 330 out of 
L300 who had responded by earlier this month either disputed 
or did not recognise the figures supplied. More than 100 
rejected liability. 

Lloyd’s is attempting to recoup about £lbn from Names and 
sent letters to about 4JXO of them in September. So far, more 
than £34m has been repaid by a total of 600 members who have 
now settled their debts. About 1,200 have requested discus- 
sions with the financial recovery department about addressing 
their indebtedness to Lloyd’s. 

Supermarket petrol sales up 

Almost one-fifth of petrol sold' in the UK is purchased from 
s u p e rmarket forecourts, a report by market research firm 
Taylor Nelson AGB Publications said yesterday. Supermarkets 
have increased petrol sales by 63 per cent since 1990 and these 
sales : now account for ah average 8 per cent of the total 
turnover of the biggest five supermarket chains. Supermarket 
petrol was an average of 6 per cent cheaper than that sold 
elsewhere, said the report 

The estimated petrol sales for the top five supermarket 
petrol^dling chains - Tesco, Sainsbury, Asda, Safeway and 
WflUam Morrison - was £L97bn in 199a. 

Change for military housing 

The Ministry of Defence is to setup a new tri-service executive 
to manag e tts mar ried quarters estate of some 68,000 homes, 
Mr MwirnTm RrfMnd, defence secretary, announced yesterday. 
The new body - the Defence Housing Executive - will assume 
responsibility for the homes from ApriL They are now man- 
aged on single-service lines. Mr Rifkind said the body would be 
established in the first instance as a budgetary unit within the 
Ministry of Defence, "but with a remit to move towards 
autonomous operation as a likely candidate for . . . 
privatisation in due course”. 

The Ministry of Defence faces a £500m gap in its budget next 
year if it cannot ffnd a way of transferring the estate to the 
private sector. The ministry last month appointed NatWeat 
Markets to advise on new options for doing this after tts 
original plans to set up a non-profit trust ran into difficulties. 
MoD officials said yesterday the executive would be “a 
short-term arrangement while we continue to work towards 
privatisation proper”. 

Guns go missing in Germany 

Rifles, sub machine guns, other automatic weapons and even 
vehicles were found to be missing as British army units 
withdrew from Germany, the House of Commons defence 
committee said in a report yesterday. The cross-party commit- 
tee severely criticised “unacceptable" discrepancies involving 
explosives, detonators and weapons. 

Some 114 discrepancies were ide nt i fied at one rant alone on 
items with a book value of £97,000, including three large pieces 
of equipment such as a gearbox. The committee said it was 
“deeply disturbing" that the Ministry of Defence "failed to 
ma^nfain proper accounting control over weapons and 
explosives. 


Strong export growth 
boosts engineering sector 


By Andrew Baxter 

Strong growth in exports - 
especially to western Europe - 
and revived investment spend- 
ing by UK industry will boost 
engineering output by 4 per 
cent next year, the Engineer- 
ing Employers Federation said 
yesterday. 

The federation said in its 
half-yearly trends survey that 
employment in the sector, 
which has fallen by 400,000 
since 1990, will stabilise - drop- 
ping only another 18,000 to 
1.66m by the end of next year. 

The upbeat forecast under- 
lines the better prospects for 
the engineering sector after the 
recession, but the federation 
cautioned against euphoria. 

Overall, the engineering sec- 
tor’s sales will exceed £140bn 
this year, but even by the end 
of next year its output will be 
no higher in real terms than it 
was in 1990. 

By the end of next year only 
two sectors of the industry - 
electrical and instrument engi- 
neering and automotive - will 
be producing at a higher rate 
than in 1990. Mechanical engi- 
neering, metal goods and aero- 


Retailers 
fear tough 
Christmas 


By Gilfian Tett, 

Economics Staff 

Trading conditions for shops in 
the UK during the important 
pre-Christmas period will be 
tough, retailers warned yester- 
day. 

Although official figures 
showed yesterday that retail 
sales in October were higher 
than year before, the rate of 
growth has slowed in recent 
months and price competition 
remains intense. 

The Central Statistical Office 
said retail sales volumes In 
October were a seasonally 
adjusted 0.1 per cent higher 
than in September. Year-on- 
year growth slowed to 3.1 per 
cent in October from 3 JS per 
cent In September. 

Measured on a three-monthly 
basis, a more accurate indica- 
tion of trends, sales volumes 
were 08 per cent higher than 
over the three months to July, 
a slightly slower rate of growth 
than in previous months. 

Highlighting the fierce price 
competition in the high street, 
the value of retail sales rose 
only 0.7 per cent on a season- 
ally adjusted basis in the three 
months to October, compared 
with the previous three 
months. 

Adding to the picture 
of subdued retail activity. 
Bank of England figures 
showed yesterday that the 
annual growth rate of notes 
and coins in circulation mea- 
sured in the past week was, at 
58 per cent, the lowest since 
mid July. 

The combination of soft con- 
sumer demand and low infla- 
tion will be welcomed by the 
government as it prepares for 
Chancellor Kenneth Clarke's 
Budget on November 29. 


EXECUTIVE JET OWNERSHIP 
AT A FRACTION OF THE COST 


• •••■ VC,- 'it'-- '■ 


if you travel using corporate aircraft, 'you know how. convenient and efficient this type of travel Is. 
. . — make a dadJcated aircraft cost -effective. 


Tt» answer is Jet sharing, a revolutionary new way of owning aircraft that cuts the cost of ownership 
whilst giving you more of the benefits you expect from corporate aviation. 

Jet sharing allows you to buy only the time yoo need on an aircraft by offering for sate as little as a one 
eighth share br a wide range of aircraft tram foe legendary Raytheon aircraft family. 

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hourly charges. You do not pay tor amply positioning flights nor are there any other nasty financial 
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at aftadion of the cost of tradffidnal aircraft ownership. 

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or 44 (0)293 536810 


Engineering Industry output 

1990=100, SaaaonaOy 



space output will still be well 
below 1990 levels. 

The federation said cyclical 
revival of investment spending 
is boosting UK demand for 
engineering products, but from 
a low leveL It still wants 
rfmngws in capital allow a nces 
to ensure that the next “invest- 
ment recession" is not as deep 
as the last downturn. 

Meanwhile, the recovery of 
European markets from reces- 
sion is an important develop- 


ment for the sector and for the 
UK economy as a whole. 

Western Europe already 
accounts for 60 per cent of UK 
engineering exports, and the 
proportion could rise next 
year. Mr Thompson believes 
the upturn will prevent the 
£8bn ($9.8hn) trade deficit in 
engineering goods from wors- 
ening - although the federa- 
tion continues to believe the 
deficit is not a good thing in 
the long term. 


Smaller banks 
criticised by 
review committee 


By John Gapper, 

Banking Editor 

Some small banks were 
criticised by an independent 
bankers' group yesterday for 
not joining the UK Banking 
Ombudsman scheme. The Code 
of Banking Practice Review 
Committee said they were 
denying customers indepen- 
dent arbitration on disputes. 

The review committee, an 
independent group which 
reviews the banks’ vohintaiy 
code of hanking practice, said 
in its annual report that it was 
“disappointed at the compara- 
tively small number of banks" 
that had joined the scheme. 

The 65 hanks that are mem- 
bers cover nearly all personal 
hanking customers in the UK, 
but the committee is concerned 
that small foreign hanks deal- 
ing with ethnic minorities fa»nd 
not to join the scheme at an 
annual cost of £2£00. 

It said 99 per cent of custom- 
ers were covered, but it was 
“unsatisfactory that there 


remains a minority of custom- 
ers, albeit small, which has no 
opportunity of having com- 
plaints dealt with by an impar- 
tial outside arbitrator". 

The committee said it was 
surprised that some small 
banks had refused to join on 
the grounds of cost because the 
annual charge for smaller 
banks had remained 
unchanged for eight years 
while annual running expenses 
had grown. 

Mr Martin Kannel, the com- 
mittee secretary, said that 
building societies were com- 
pelled to be members of the 
scheme, but this was inappro- 
priate for small banks because 
many operating in London bad 
no personal customers. 

Mr Kamel said the commit- 
tee was particularly worried at 
the number of foreign Harikg 
serving ethnic minorities in 
the UK which were not part of 
the scheme. Banks were asked 
to give reasons in the commit- 
tee’s annual compliance sur- 
vey. 


Summer 
holiday 
sales set 
record 


Travel agents' sales of summer 
holidays outside the UK rose 
24 per cent this year to 9.8m, 
far exceeding the previous 
record of 8m set in 1987, 

Michael Skaptnker writes. 

The increase was greater 
than predicted by the travel 
industry which had been 
expecting sales of summer 
1994 holidays to be between 10 
per cent and 15 per cent 
higher thqw last year. 

Lnzm Poly, the UK’s largest 
travel retailer, said the rise 
bad been stimulated by agents’ 
discounts and increasing 
consumer confidence. The 
sales growth was achieved In 
spite of tax increases earlier in 
the year and despite a warm 
summer in Britain. 

Spain was the top-selling 
summer 1994 destination, 
accounting for 43 per cent of 
sales compared with 38 per 
cent last year. 

Greece was the second most 
popular destination with a 17 
per cent share compared with 
18 per cent last year. 

Cyprus, the US, Portugal 
and Turkey accounted for 5 
per cent each. 

Saks to Turkey suffered in 
the period to the end of June 
as a result of terrorist activity 
there, but recovered later in 
the summer. 

Florida was the most 
popular long-haul destination 
for summer 1994, with 35 per 
cent of long-haul holidays 
sold. This was sharply down, 
however, from Florida’s 1993 
share of 46 per cent The fall 
was largely the result of poor 
publicity Bowing attacks on 
tourists. 


p urQjJCjn aircraft tour c eminences 23 November. Call tor invitation. 



Join an art movement in Madrid. 


*6 


Recognize any faces in the crowd? A stroll around Madrid’s galleries is always 
a social occasion. We call it the “Paseo del Arte”. Start with the 
old masters at the Prado. Lunch nearby. 

Then proceed to the Reina Sofia, home to 


Picasso’s “Guernica”. Time 


GtftKDZS mUSEOS Dl MADRID. MHO DIE fUM 


for a little shop- 



u 


ping, enroute to the Thyssen Bornemisza, one of the world’s largest 
private collections. Finally, stop at a local bar to discuss life, and art. 


Passion 
for life 




$ 


COMMERCIAL PROPERTY 










Ji THE iVzku $tih t?Jn 

if £ID€Y n §€C cpr.pc 

f g || r % § 1 5 s ^ ^ **? ** *$ ? ^ v* ,? ^ 

WITHIN VIEW OF BERLIN'S MOST FAMOUS BOULEVARD 


.r,;V^C5r~7*2L2* r 



jS^s^dyBa&iaBi 

ijr^}sk' & & •W\l 



UHLANDSTRASSE 175 
Shop in the city centre 
On the corner of KurfGrsiendamm 
Exquisite building with high quality 
atmosphere for first-class retail shops 
(no restaurants) 


7 shops with 220 m 1 each 
Large window facade 
Ready for use on Jan. I st. 1 995 




iooming 


£*» 5; 1 h£ 5t 'i £ 
%& -3 is £ 




I FOR YOUR tsu>ir<L 3 i 5 

if to satisfy your demands, close to city airport 


a im: 


t * ;*«- ^ .s* 

5**: i .v ••* 





MUtfA* 



BERUN-TEGEL, BERLINER STRASSE 27 

High-quality decoration and furnishings 
Lobby and exhibition rooms on the ground floor 
1st to Sch floors can be devtded In half 
6th floor crowned by a prestigious penthouse 
conference room 


Ground floor ca.6IOm‘, I sc floor ca. 1.081 m 3 
2nd floor ca. 1 .095 m J . 3rd floor ca. 969 m 3 
4th floor ca. 969 m 2 . 5th floor ca. 833 m 2 
6th floor ca. 538 m 2 * penthouse ca_ 6fi m 3 
0 6. 1 63 m 3 total office area 
Ready for use immed ately 


Win the heart of the city 


BERUN-MITTE. CHAUSSEESTRASSE 19 

Commercial building, centrally located 
(prolongation of Fried richstrasse. dose to the 
government district) 

3 shop units in a busy shopping street 

4 office floors to be divided 


Shops from 56 m 2 to 462 m 3 
Offices from ca. 350 m 2 to 1 .080 m 2 
Ca. 4.500 m 2 total office area to high quality 
standards 

55 underground parking spaces for rent 
Ready for use immediately 


IN THE CAPITAL 


BERLIN-NORTH, GROSSKOPFSTRAS5E 8 Ground floor shop: ca. 4S2 m 2 
Commercial building Offices from ca. 4 1 2 m 2 to 484 m 2 

in an easily accessible location Ready for use on Jan. I st. 1 995 

I shop unit and 4 office floors 


£$! For further information about prices and conditions please contact: 


ror iuiuict nuur iiwuuu duuui pnetaa anu conclude* please Conan: 

£ti WVT WOHNUNGSVERMIETUNGS-TREUHAND GMBH. Uhlandstr. 1 75. 1 07 1 9 Berlin 

j&l Tel. + 49 - 30-884 67-0 (Frau Fechner) Fax + 49 - 30-884 67- 1 09 




INDUSTRIAL ESTATE 
- 5.000 to 26,000sq ft 


Near Ring wood on the A31 


announces the 
SEALED BID OFFERING 
December 12, 1994 

Prestigious Beverly Hills Landmark Building 


Wii.shire Crescent 

9333 Wilshire Boulevard, Beverly Hills, California 




PICCADILLY 

(dose) 

2400 sq. ft. 

REFURBISHED 
OFFICE SUITE 


This 108,000 square foot former corporate headquarters 
clad in white Carrara marble is located in the prestigious 
Beverly Hills “Golden Triangle”. The three story plus 
garden level building with a glass and marble rotunda is 
available for immediate occupancy. 

For brochure, call or fax: 


Only 

£12.50 per sq. ft. 

Car Parking Available 


lia aVj.y.S ?. 


Tel: 071 636 6933 


(214) 450-3313 

(214) 450-3395 (FAX) 


+ SWITZERLAND 


Swtaa Alps - Lake of Geneva 

From SFr. 2SO‘OOO i - 


1 

N 

D 

U 

S 

T 

R 

1 

A 

j~T 


Dwea (ran ihe binder, 
sptarxfld a part ments with panrteaon to 
sail to torenjTwre. in M o n t reux. Viters. 
Cnms-Montana. 


Cretit avafebte. 


Constructions KohOS-A. 

C.P. 65. 1884 VBars. Switzerland 
Tot «-*41 25 35 15 33 
Fa* +-41 25 35 15 19 


By order of The Secretary of State tor Defence 

PORTLAND NAVAL BASE AND SEA TRAINING 
ESTABLISHMENT WITH ASSOCIATED HARBOUR 
AND LAND NEAR WEYMOUTH, DORSET. 

A UNIQUE BUSINESS OPPORTUNITY 


Approximately 350 acres with 700,000 sq. ft. of buildings including an 
extensive range of deepwater port; marine repair and training 
accommodation. Potential for a wide variety of alternative 
uses subject to planning consent 

FOR SALE AS A WHOLE OR IN PARTS 

RefcOCB/CAP 


COSTA RICA 


325 Acres overlooking 2 Pacific 
coast beaches $355,000. In 
the path of development 
property selling for 200X. 

Owner will consider 
J.v., spots, trade for u.K. prop. 

Pax CJFL (506) 444 6343 
Phone UJL (0) 277 220 691 



7 1- 8 9 5 1515 


10 STRATTON STREET. LONDON WIX 5fD 


HERTFORDSHIRE 

Nr Hoddesdon 

Care home for renovation 
consent tor flats or residence 
Offers above £200,000 Freehold 


Sukpstcr Rosmson, 
Cambridge 
0223 497155 




T he chill wind of reces- 
sion sent property 
developers into hiber- 
nation, and the warm 
glow of recovery has brought 
them blinking back into the 
light. 

Land Securities, the largest 
quoted UK property company, 
this week announced that it 
was gearing up its develop- 
ment programme. It plans to 
spend £350m over the next two 
to three years, its biggest burst 
of development activity since 
the late 1980s. 

Smaller developers are also 
starting to stir, including some 
notable figures from the past 
Mr Godfrey Bradman, former 
chairman of Rose ha ugh and 
one of the biggest casualties of 
the bust, is now operating from 
offices overlooking Regent’s 
Park. 

Yet the development climate 
is hardly balmy. As the graph 
shows, planning permission 
has been granted for an addi- 
tional I3.6m sq ft (1.26m sq m) 
of office space within the City 
of London. Of this, more than 
7m sq ft (630,000 sq m) covers 
sites which are currently 
empty and waiting for work to 
start 

Yet during the first six 
months of this year construc- 
tion started on only 1.7m sq ft, 
only a shade more than in the 
same period of last year. 

The reason for the modest 
pace of activity is that rents 
are too low and property yields 
too high to give developers a 
clear profit. 

For example, with top City 
rents at £35 per sq ft and new 
office developments being sold 
forward to investment institu- 
tions on yields of 6.5 per cent a 
30,000 sq ft development might 
have a finished capital value of 
about £l5.dm. 

Yet building 30,000 sq ft of 
office space for much less is 
diffi cult, unless the developer 
has bought the site cheaply. 

The following hypothetical 
example assumes that the 
developer has paid about £175 
per sq ft for the site. This is 
not unreasonable, given that 
one core City site is rumoured 
to have changed hands for £250 
per sq ft last week. 

Land cost £175 per sq ft + 
building costs: £130 per sq ft + 
professional fees: £25 per sq ft 
x 30,000 sq ft => £10m capital 
value. 

So far so good, except that 
the developer needs to finam-p 
the project 

Awareness of the risks and 
uncertainty about the outlook 
mean that Hanks are extremely 
wary of financing speculative 
developments. 


Signs ( 
on the 


Activity is picking up but 
financing remains a problem, 
says Simon London . 


City of London development pipeline 


Gross squero metres (million} 
3.0 - >'*••' 



getting flie fenshed^bnibiUng 
cheaply,, this leaves . a ifevddp- 

therapjiS . 

value. '. • •’ 

Such : calculations, explain 
why development activity , is 

still muted. Either rents aeed 
.to rise or praperty yields need : 
to fall before many projects 
become viable. • 

. Moreover, institutional. appe- 
tite for development finance fe 
limited. Even, large pension 
-funds cannot afford to . have 
"more" than, a few speetdattve 
1 schanea for hand atany xm 

Httip RpaTter Fnnfls grp f rffa 

wary of-getthig involved .with* 
developn^jt activity at aBt . . 

- One reason is that fond man- 
agers Irave .historically seen . 
poor returns .'from.' develop, 
meal Figures from the Invest- 
ment Property Databani, a . 
reseaxch group, show . that 
development activity-hasbeen' 
a drag 'an the performance of 
. institatumal investors in. H erat 
of the past 19 yeas. Only fn 
the period from -1988-67;. did - 
davdopnadt actiiafiy Eaihance 
investment returns from com- 
mercial property. j ‘ - 


0 ■ I ■ ! ■ 1 i ' - ; ■ 1+ 1 1 1 1 I ■ - 


1577 73 7$.f2* 31 32 S 3 94 £5 £5 37 36 i'.H CC 


J’-- -’j'FZJ?-, 


“There Is only a handful of 
banks willing to look at spec- 
ulative development projects 
and they are understandably 
discreet about it,” said Mr 
Peter Champness, partner at 
surveyors Gerald Eve. 

Only big property companies 
such as Land Securities can 
attract sufficient hank loans to 
finance large speculative devel- 
opment programmes. Smaller 
developers are forced to rely on 

investment 

institutions Unnlca 
such as pen- isanKS 
sion funds and extrem 


life insurance n c c_ 

companies. U1 AA1J 

Small, inde- sped 
pendent devel- 

opers also UCVC1IJ 
recognise that 
speculative projects financed 
with bank debt expose them to 
very high risks. At this early 
stage of recovery, most would 
anyway prefer to share the 
risks with an institutional 
partner. Under this type of 
funding arrangement, the 
developer usually agrees to sell 
the finfahaf building to the 
Institution at an agreed yield. 
If the property market weak- 
ens during construction, it is 


Banks are still 
extremely wary 
of financing 

speculative 

developments 


tile ins ti tution "rfhm- than the 
developer which suffers. 

The pay-off is that the Insti- 
tution gets the building , at a 
higher yield than it could be 
sold for on foe open market 
Our hypothetical City office 
block could probably be sold 
for 5J> per cent on. the open, 
market, yet the institution is 
paying &5 per cent as port of 
jjia funding a grwwiw^ t 

The details of an instttu- 
. tlonal funding. 

irp < 2+311 Package could 
ire Stul he. complex. 

ly wary But if . the 
none developer 
i . o arranges 
lative finance ova- a 

iments four-year 
imems p^iod at, say, 2 

wmm—mm percentage 
points over base interest rates, 
an all-in funding cost of about 
£3m-£3.5m would be about 
right 

It is also likely that the 
developer will have to contrib- 
ute to fitting-out costs for the 
tenant in which case another 
£im will have to be set aside. 

In total, the hypothetical 
office block has cost the devel- - 
oper £14^m to bufld arid fit- 
out. Since the institution is 


l : I .the flow of. fastjtfife 

I ' ■ tional de vdopmeat' 

; fundJngT- .iSifflj^ b$I r 
steady rather than spectacbja&f 
Fund rhana|ms : are 1 

to demand good termS .fngpa . 
developers. 

development margms^TXndeV:- 
pressure., ,T • 

. Much therefore depends on - 
whether banks. start famKn^ : 
.speculative developanent prep’ 
jects- again and whether lire. - 
devetopers thejhsdves fed. oon 3 : .; 
fident eno ugh about the out- 
look to proceed without an' 
institutional partner. 

In_the. current climate; with 
little sign, of rental growth and • 
uncertainty about the eco- 
nomic, prospects, tire banks, 
have no reason to rush back 
into the market. 

Developers point out that the 
debt-financed development 
peak of the late 1980s was 
unusual Previous property 
cycles were funded by institu- 
tional investors rather. than 
banks. The extent of over- 
building was far less severe as 
aresulL 

While the pace of develop- 
ment activity is stffe to pick up 
as rents rise and more.prqjects 
become viable, there are signs 
that developers will have to 
rely for more on institutional 
finance. If that holds back the 
pace of development until ten-, 
ants are ready to fill the space, 
the property market trill ber 
hMltWw for all concerned. 


COMMERCIAL PROPERTY 


CONTRACTS & TENDERS 


Your 

lords will 
leap at 


PETROBRA5 


this one? 


.-( oruc in a lifetime 
opportunity to obtain 
an office address in one 
of Ma\ fair's premier 
Squares. 


NOTICE OF PUBLIC CALL FOR TENDERS 
INTERNATIONAL PUBLIC BID FOR 
PRE-QUALIFICATION DETRAN PUBLIC 
ANNOUNCEMENT - 300.0.001.94.7 

Purpose: Pipeline Inspection services using Intel Agent pig. 

Opening of Bids: 06/01/95. st 2 p.m. el Avon Ida HepQbllca do Chile, 
65. room 1264, Rio de Janeiro. RJ. 

Address at which Public Announcement can be perused: DETRAN/ 
DIAGE/SECOFI, Avan Ida Repflbnca do Chile, 65, room 1260. 

How to obtain text of Public Announcement: The complete text o< the 
Public Announcement may be picked up from 09/11/94 on, at tbe 
above address lor perusal, against presentation of the original of the 
payment voucher In the name PETRdLEO BRASILEIRO SJV. - 
PETROBRAS. in the amount of RS 50,00, non relmburoeabte. effected 
on a deposit pad slip, to be obtained at SEACE/D1FIN/SEPROC. at the 
above address, room 458. which must Indicate the complete corporate 
name of the respective firm. General Roster of Corporate Taxpayers 
Number (CGC) In case of Brazilian company, and address and 
telephone number, also indicating the number ot this public 
announcement. 

Committee on Bids 


'Vrllc to Hoc D2456, Ffcioocla) Tljutt 
Ooc Soulbwork Bridge, London SKI 9IJL I 


PUBLIC NOTICE 


FOR SALE 




THE ACROPOLE PALACE 

ATHENS 

PERIOD BUILDING 

Former Hotel in Central Location 6,200 m 3 on 9 Boors 

□ Suitable for renovation as hotel or conversion to other use 

Contact Morfa* Purer 010301360 3668 
4 Sekari Stroo), KdorcAi. Atftm 10674. Feoc 010 301 360 4571 
Contort Karen Pneslnwn 071 494 4000 
Regent Arcuds Hours, I P-25 Argy* Street, London VV7 IAA. Fin: 07] 414 0866 




N OTIC E UNDER SECTION 12 " 

OF THE ELECTRICITY ACT 1989 

Ob 14 November 19M aw Director Genera! of EtecUdty Sensb 
made e reference to Ibe Moaopo&es and Mergers CocmHissfaMi 
seder SectSee U of the Bedrtdfy Act 1969 


la the foflonriog tenu: 


im -V, 


WANTED: SUBSTANTIAL 
MANUFACTURING/DISTRIB. CO. 

SEEKING TO RELOCATE BUSINESS TO 
ATTRACTIVE AREA WITH LOW OVERHEADS 
1 HOUR LONDON - 1 HOUR BIRMINGHAM 
CLOSE TO Ml MOTORWAY 


*' ^ E * earicil y Sa tVb Director *X in cwmse ot tec 

^ SCC ^ OT J. 2 ? f fc ***** y ** 1989 (a 29)>S 
b reference (o the MoeopaKee end Mergers Cmimnsioo 
reqmring .hem .a nweey w end rtpon on wbritet Ue 

provls, ?“ * » d» KstricriMi of cfauga for dforibafion^d 

T?? •“*? 6of,taAa » Scormtj Hydroelectric nfe 
'f* c * a wuh d» ^«a»l proviwas far dtogee es betweeT^ 

amt the DtsiiftmiioD and lYansmissjoa BasincsseA aurtwiMi - 


Former headquarters of Cola Sports Goods 


Factory/Warehouse with Office Block 24.000 sq.ft. 


OFFICE BLOCK INCLUDES: 

Board Room with Kitchen attached 
Showroom Area 
All Headquarters amenities 

Long Terra Lease 

Adjacent two-acre site with Industrial Planning 
Permission. 


For further details talk directly to owners on (0933) 
665454 

i Laurence Spiers, 

q London Road, Bozeat, 

l Wellingborough. 


* ** ** » » i * w . 


•a- | 


UK PROPERTY SURVEY ^ : 

CHANGE OF .. 
PUBLICATION DATE 

The ^ p ™perty Survey will now be pub&hea ' 

9 DECEMBER 1994 Q" 

rTtf repon wfllfocuson impom^i haa ad, 7 , 

mvesterat am tie popolanty at ; 

Abo Eluded, to^pd, fcauxra .bou.ihcofiic. nadi.ioduarW 

on how the regjoos are perfornuag. 


Sophie CaatilloD 
0171 873 3211 
Fax: 0171873 3098 

COPY DEADLINE; 25 NOVEMBER 1990 


dJ» 


o*' 





0 S 


v - 




* .1 










►Jb' 




financial times friday 


NOVEMBER 18 1994 


PEOPLE 


U 


TS & TENDERS 


ZZ.ll FOR TSWK 
P’JSlIw 5'D FCR 
* ^ ETHAN PUBLiC 
E*T * 5C:.C. 231.94.7 


NOTICE 


. ;.,A> 

\ V » - ’ - 7 .„*■ 

, , • Ml ! ■ 


.LK ,Vf - 

— -M a -1 " - 






r ~ 

i f^MS 


Supervisory role for 
Sir Dennis at the Bank 


The Bank of England has 
achieved a notable catch with 

teSTT™ of Sir 

Weatherstone, the retiring 
of the US bank J P 
UJJS?’ ff, an independent 
%££* of the Bank's board of 
supervision. 

Sir Dennis will succeed Sir 
Peter Leslie, the former deputy 
chairman of Midland Bank 

?Sp ^ V L for a five-year term! 
The board is responsible for 
overseeing the work of the 
Bank’s supervisors in its finan- 
cial stability wing. 

Sir Dennis, who has taken an 
interest in supervisor!' issues 
relating to financial deriva- 
tives in his work with the 
Group of Thirty senior banking 
executives, will be the best 
Known of the six independent 
members of the board. 

The Bank yesterday made no 



secret of its delight at having 
attracted Sir Dennis to the 
board. Figures of equal weight, 
such as Sir David Scholey of 
S.G. Warburg, tend to sit on 
the Bank's governing Court 
rather than its supervision 
board. 

Sir Dennis, who will be 64 on 
his retirement from the helm 
of J.P. Morgan at the end of 
the year, has become a notable 
figure in the international 
debate on derivatives, leading 
calls for banks to self-regulate 
their activities. 

At the monthly meetings or 
the banking supervi sio n board, 
he will have access to all 
supervisory reports on UK 
banks, as well as being able to 
quiz Brian Quinn, executive 
director for financial stability, 
on the department's work. 

The bank's supervisory 



Hugh Donaldson (above), 
general manager of corporate 
resources at drags company 
Zeneca, is to become group 
chief executive of Holliday 
Chemical Holdings as from 
Janaary 1. 

The appointment means a 
split in the roles of the com- 
pany's founder, chairman and 
chief executive, Michael Pea- 
gram. He will continue as 
executive chairman. Donald- 
son, 52, is going back to his 
roots; he joined (Cl as a plant 
engineer in 1964, and rose to 
become a director of the speci- 
ality chemicals business and 
finally general manager, per- 
sonnel, one of only four gen- 
eral managers in the company. 

He was the only one of the 
four to switch to Zeneca when 
it demerged from ICI last year. 

■ NATIONAL POWER yester- 
day announced the first of 
what will be a growing list of 
board changes as the bulk of 
its executive directors move 


PHOTOGRAPHIC 
STUDIO/LABORATORY: 
NOR TH OF 
MANCHESTER: 

convenient motorway network, 
turnover £350000 per annum, 
returning 70% gross profit, vast 
potential, well equipped. Rent I 
£15 COO pa, BUSINESS £330,000 
Rc£I875 

HARVEY SILVER 
HODGKINSON 
TEL: 061 8332000 


For Sale 

Well established and 
profitable distribution 
company specialising In 
British Gypsum drylining 
products, suspended celling 
and insulation materials. 

Write to Box B353Z 
Financial Times, One 
Southwark Bridge, London 
■ SE19HL 

RECRUITMENT d 
AGENCY 1 

Highly profitable £1 million plus g 
T/O. Established 10 yxs. Marker jj 
leader in high-tec niche. Sooth II 
east location. Seeks merger g 
discussions with larger business. | 
Objective - to accelerate | 
expansion into iden t i fi ed areas of It 
fast developing technologies. I 

Write U> Bo* B354I. Financial Times, jj 
Or» Southwark Bridge. It 

London SE1 9HL fl 

portable autocuwe wuwwcnwat 
lor 3*1 as QOlng coneam. nr ik fra to 
manufacture. UosOve service contract s 
tfratfi mu tton “***- 
SfllBB. and dMrtUton «*» 

-wu, ESOJOOO -.ElSOnOOtt VIIM» to Bra 
B3S4S, financial Times, One SoOmak 
Britton London SE1SHL 


to wards retirement. 

Keith Henry has been 
appointed chief executive of 
the electricity generation com- 
pany. He is chief executive and 
a long-time employee of Brown 
& Root, the US-owned engi- 
neering, project management 
and construction group, and 
will fill the vacuum left by 
John Baker's appointment as 
chairman when Sir Trevor 
Holdsworth retires next April 
after five years in the position. 

National Power had little 
choice but to recruit externally 
for the job of chief executive, 
since three of its five executive 
directors will retire within the 
next 18 months. Only the 
finance director. Brian Birken- 
head, and the managing direc- 
tor of its international business 
development operations, Gra- 
ham Hadley, will remain. 

John Baker's switch to non- 
executive chairman will leave 
him more time to devote to 
other directorships and to his 
new post of chairman of the 
World Energy Council. He will 
play a strategic role and devote 
two days a week to National 
Power. 

His replacement is an experi- 
enced dvO engineer. He landed 
the top job at Brown & Root in 
1990, taking responsibility for 
the group's operations in the 
UK, Europe, Africa and the for- 
mer Soviet Union. He has 
worked for the group for 23 
years. 

The company has also 
announced that non-executive 
director Sir David Walker 


department has been over- 
hauled since being criticised 
over its handling of the col- 
lapse of the Bank of Credit and 
Commerce International, and 
several now senior officers 
have been brought in. 

Sir Dennis was thought to be 
a possible candidate to become 
governor of the Bank when 
Eddie George was appointed. 
Lord Swaythting, whose term 
on the board expires at the end 
of the year, has been appointed 
for a further five-year term. 
John Copper 


would stand down as a result 
of his move to become chair- 
man of Morgan Stanley in 
Europe. Simon Davies 

■ Ian Hay Davison is 
convalescing in Australia 
following an operation: as a 
result Margaret Downes is 
acting chairman of Storehouse 
and Peter MacfarJane, 
appointed deputy chairman at 
MDIS, is standing in for him 
there. 

■ Michael Cannon has been 
appointed chairman of 
SULZER (UK) HOLDINGS on 
the retirement of Peter 
Strangeway. 

■ Simon Petchey, formerly 
vice-president logistics and IT 
for Europe at EMI Music, has 
been appointed director of 
group information services 
division at W.H. SMITH. 

■ Klaas van Mill has been 
promoted to marketing 
director for BRAUN UK in 
succession to Tim Yates. 

■ Roslyn Beattie has been 
appointed company secretary 
of WATMOUGHS 
(HOLDINGS). 

■ Michael Richardson, 
formerly sales and marketing 
director of Dowty Aerospace, 
has been appointed md of 
BOWTHORPE's Penny & Giles 
Data Recorders in succession 
to Charles Fitch, who remains 
chairman. Robert Potter, 
formerly md of G EC- Marconi's 
sensors division, has been 
appointed general manager of 
Bowthorpe's aerospace 
equipment 


Priddle to 
monitor the 
West's energy 

Robert Priddle, head of 
corporate and consumer 
affairs at the Department of 
Trade and Industry, was yes- 
terday elected executive direc- 
tor of the International Energy 
Agency, the West's energy 
monitoring body. Priddle has 
been elected for a four-year 
term to the Paris-based organi- 
sation as successor to flelga 
Stecg, who had held the post 
for 10 years. 

Priddle's election comes as 
the 23-member organisation Is 
in the middle of re-deflnlng 
the agency's role in an eco- 
nomic and political climate 
which has changed considera- 
bly since it was set np after 
the 1973 oil crisis. “The energy 
market is much more diverse 
and the political situation 
much less confrontational,” 
Priddle says. 

The IEA was set up to moni- 
tor security of energy supplies 
and share fuel at times of cri- 
sis. But Priddle says it must 
now work much more closely 
with the international markets 
for oil. 

The IEA most also concen- 
; (rate on other aspects of 
| energy security such as envi- 
! ronmental measures. “Unless 
energy producers and users 
are properly sensitive to envi- 
ronmental damage, the secu- 
rity of energy supply may be 
1 called into question,” be says. 

The agency will also need to 
develop its relationship with 
non-OECD coon tries in future 
as the dominance of the OECD 
in the oil market has dimin- 
ished. he believes. Deborah 
Hargreaves 

■ Tony Brimble, chief 
executive of Babcock Process 
Division, has been appointed 
chairman of the BRITISH 
CHEMICAL ENGINEERING 
CONTRACTORS 
ASSOCIATION. 

■ Lord Sterling of Plaistow 
has been appointed chairman 
of MOT ABILITY, the charity 
which helps disabled people 
obtain the use of a car or 
powered wheelchair; he 
succeeds Lord Goodman. 

■ Pat Lee. development 
director of Wincanton. has 
been appointed chairman of 
the CBl in the south west; he is 
also chairman of the Road 
Haulage Association. 

■ David Ingham has been 
appointed legal director of 
OFTEL. 


BUSINESSES FOR SALE 


LEGAL 

NOTICES 

IN THE BKM OOUBTOV JUSTICE 
CHANCERY DIVISION 

IN IBS MATTE* OF 
B.C& HOLDINGS PLC 

IN THE MATTER OF 
■me COMPANIES ACT IMS 

NfrttCE (S HEREBY fflVOf dm *o Onto 

ssfHBta&gt 

a/ AaM w uoim accong of w« 


INVITATION TO BID FOR THE PURCHASE OF 
Two secondary metallurgy plants producing lead, brass and bronze 

Enirisorse S.p-A. metallurgical, mining and coal sub-holding of ENl S.p A, with 
headquarters in Rome, Piazza Cerva 7, registered at the Rome Court Chancery 
Registry of Companies at no. 7458/92. share capital of Italian lira 300 billion of 
which paid lira 151,426,290,000, intends to receive and screen bids for the sale 
to a single party of its secondary metallurgy division including two plants 
located in PADERNO DUGNANO (north of Milan) and MARCIANISE (north of 
Naples). 

Enirisorse S.p-A. is willing to screen bids either for both plants, or for each 
single facility. 

The Pademo Dugnano plant produces secondary lead and lead alloy, brass 
and bronze. The Marcianise plant produces secondary lead and lead alloy. 
Enirisorse S.p-A. is the recognised leader in the Italian lead, brass and bronze 
markets. Aggregate turnover for the two plants was lira 121 billion in 1993. 

Enirisorse S.p-A. has named Bain, Cuneo e Associati as advisor for the present 
transaction. Interested parties are kindly requested to send written request (fax 
accepted) tor a copy of an information memorandum concerning the business 
to: 

Bain, Cuneo e Associati 

Via Crocefisso, 10 - 20122 Milan 

Phone 39-2-58288268 - Fax 39-2-58288276 

Mr. Luca Di Giacomo, Ref. ERS 

The information memorandum will be sent to companies the legal representa- 
tive of which has signed and returned to Bain, Cuneo e Associati, no later than 
December 5, 1994 an agreement of confidentiality, together with a description 
of the business and the reasons for present investment Intermediaries of 
whatever kind must disclose the identity of any party they represent 

The present announcement is an invitation to bid and does not represent a 
public offer (art 1336 of Italian Civil Law Code). Neither the present invitation 
nor the receipt of any offer wit! create to Enirisorse S.p-A. any obligation or 
commitment to sell to any bidder, nor give any bidder any right or claim 
whatsoever on or against Enirisorse S.p.A. or its advisors, including payment of 
brokerage or consulting fees. 

The Italian text of the present invitation will have priority over any other version 
published in other languages in newspapers outside Italy. The present invita- 
tion and the sale procedure are subject to Italian Law (Rome Court). 





rewteil by (to +u**uaktt*dAa 

SSwS S** Bqj imr.itQwipMtow 

D,wl 1» «( N«»her 19» 

WaSitr * Pwwm 

9 Cwsfc*** Street 
Loodot WIN 3DA 

TU; 071404 4422 

MASCJWHte 

Srftowte ttoaow— trfCp^p-r 


Appear in the 

Financial Times on Tuesdays, Fridays and Saturdays. 

For further information or to advertise in this section please contact 

Karl Loynton on +44 71 873 4780 
or Melanie Miles on +44 71 873 3308 


FINANCIAL TIMES 1 

lulufTl NiliM %> »■ «*«— « > I 


BUSINESSES FOR SALE 


CD-ROM 

niiineum 

FOR SRLE 

tor (lifts MiM+iaaiBiafa 
MbuMhkiUBtahafwr 


SPADE & 
ARCHER 



3QN.Bwmoad 

Avenue 

sdtttiH 

Pasndew, 

C-EfannHlK 

USA 

lefcSl&SSHlSO 

fee 818-38+1248 
iitanefc 
aSO&oLQom 


WEBER INSOLVENCY 

Capri No. $7i W> on l Mb December 
1994 at 12:00 am, ihc Law* Coon of 
Napies complex alkd Weber 
Hotel. 118. Marina Parents Su Capri, 
in from of Judge Ptrpcua. The 
complex is on 3910 sqm of ground) 
and buildings, li consists of S3 rooms 
and one suite of 60 sqm. provided wiib 
all accessories in oorfcing order. A 
swimming pool - already designed - 
might also be realized. All Is better 
described and specified nt Ac technical 
consultancy report deposited at ibe 
Chancery. Opening Price 
Lrt.lS.MXUX)0,WO deposit bSTc 

Information Chancery or OITkiil 
Receiver Lawyer Massimo Oi Laoro 
i Telephone Numbers 4-39J8U66I929 - 
7611977 Fax + 39*1*7612026 


D Huglin (London) Ltd. 

The Joint Administrative Receivers, Timothy John Beer and 
Philip Ramsbottom, offer for safe the business and assets of the 
above company as a going concern. 

The company is a wholesaler of carpets, with a large customer base, 
including mail order catalogues throughout most of the United 
Kingdom and Republic of Ireland. 

Salient features include: 

■ Turnover for year ended 31 December 1993, £8 0 million. 

■ Loyal customer base. 

■ Own distribution facility. 

■ State of the art computer and cutting machinery. 

■ Freehold premises, incorporating warehouse and offices and a small 
cash & carry outlet. 

For further information contact the Joint Administrative Receiver. 
Timothy John Beer, KPMG Peat Marwick, 

Richmond House. 1 Rumford Place, Liverpool L3 9QY. I I I 1 1 

Tel: 051 236 5052. Fax: 051 236 1882. 


SALE OF MANDEVILLE 
MEDICINES, 

STOKE MANDEVILLE HOSPITAL, 
AYLESBURY 

The Authority seeks expressions of interest from suitably qualified 
organisations to acquire the business of Mandeville Medicines with 
effect from I April 1995. 

Mandeville Medicines is a pharmaceutical manufacturing and 
repackaging organisation, which provides pharmaceutical ‘specials* 
for a range of customers both within the NHS and private sector, 
including a clinical trials supply service to the Pharmaceutical 
Industry. 

The Unit currently holds a ‘Manufacturers Specials Licence' issued 
by the Department of Health. 

Employing 1 1 staff, Mandevllle Medicines has a current annual 
turnover In excess of £350,000. and operates from purpose-buUt 
premises on lease within the grounds of Stoke Mandevflle Hospital 
NHS Trust in Aylesbury. Buckinghamshire. 

The Authority invites expressions of interest from parties, and 
based on the subsequent information supplied, will invite selected 
organisations to submit tenders for the business of Mandevllle 
Medidnes. 

Expressions of interest should be made by noon Friday 
2nd December in writing to Mr J Barlow, Purchasing 
Manager (Technical Services). NHS Supplies Authority 
(South St West Division), Ham Green House, Pill, 
Nr Bristol BS20 0LH. 


ANGLIA & OXFORD 
REGIONAL HEALTH 
AUTHORITY 


NHS 


Executive 



Beckenham Ductwork Limited 

(In Receivership) 

The Receivers of Beckenham Ductwork Limited, the 
main trading company of The Beckenham Group Pic, 
a leading UK specialist supplier of ductwork, sivite 
offers to purchase the business and assets of 
Beckenham Ductwork Limited, comprising: 

• Operating business - design, manufacture, and 
installation of ductwork, trading as: 

- J. Gardner Environmental Services 

- Mahilf Environmental Services 

- Femwork Environmental Services 

• Turnover for 10 months to 31 August 1994 - 
£J 5m approx 

• Manufacturing facilities at Beckenham, Kent and 
Stourbridge, West Midlands 

• Approximately 200 employees 

For further information please contact the joint 
administrative receivers: 

MD Gercke or PN Spratt at Price Waterhouse. 
55-57 High Street Redhifl RH1 1RX. 

Tel: 0737 766300: Fax: 0737 779542. 

Price fffoterkouse # 

Prwe Waterhouse s arthoreod by the Institute d Chartered 
Accountants m England jnd Vtitei to cany on trweument busmess. 


State Holding Company 


MODIFICATION OF THE BID 

The Miami Vagyonkezelo R6szv6nytarsas&g 
(Hungarian State Holding Company) 
modifies the terms of payment of the invitation for a 
one-round open tender 
for the sale of the state owned shares 
of Hiriapkiadd Kiadasi 6s Hirdetesi Reszvdnytarsasdg 
(Hirtapkiado Newspaper Publishing Enterprise Pic.) 
as Mows: 

“Minimum 75 percent of the purchase price shall 
be paid in cash and an E-credit of HUF 50,000,000 
at the most can be used. 

All the other conditions of Ihe tender remain unchanged." 


FOR SALE 

FRESH PASTA CO. 

NO DEBTS. TORN. £400,000 

20% NET MAR. 

PRICE £330.000 O-N.O. INC. ASSETS 

Wriu: lo Box B3S48, Financial Times. One Southwark Bridge, London SE1 9HL 


FOR SALE 


Highly Profitable car bodyshop repair business operating from 
freehold premises located in North London. 
Substantial insurance company approvals held. 

Write Box: B354Q, Financial Times. 

One Southwark Bridge, London SE1 9HL 


ISOFLAM LIMITED 

The directors offer for sole the business and assets of 
this fire resistant composite panel manufacturer 

♦ Fiiiy developed product 

♦ Advanced phenolic foam technology 

♦ Environmentally friendly 

♦ Blue Chip customers 

♦ Skilled workforce 

♦ Potential Immediate UK turnover c.£2 million 

♦ Ability to sell licences world wide 

For further Information please contact 
Vivian Bairstow 


ROBSON RHODES 


duiriiintl .VinmViids 


RSM 


186 City Road, London EC1V 2NU 
Telephone: 071 -86S 2293/2653 Fax: 071-253 4629 
Telex: 885734 

Registered to cany on outfit work end authorised to cony on 
Investment business by the Institute of Chartered Accountants 
In England and Wales 


Smith & Williamson 

Cofiuair Rrt.-rr, • Lu^uhxi Sun**’ - Cur^««,c Fiiuocr • Tlulk.il • HiakMul 
ImeKUwkw.'- Uomnrni Mm*Mn ■ Tnukw te Lilt iWiac ■ ,\cc.«cujnj; - AnJUnc 

The Joint Administrative Receivers offer 
for sale the business and assets of 

TOGGLE INDUSTRIES 
(UK) LTD 

Manufacturers of GRP Jours, airport liinutuie and other related 
GRP products. 

* Market leader. 

* Large forward order book (£560.000). 

★ Turnover £1.2 million. 

■k Long leasehold at Newhaven, East Sussex. 

★ Skilled and experienced workforce. 

For details, contact Peter Yeldon or Anthony Murphy on 071-637 
5377 at the offices of Smith &. Williamson, Nu.l RiJine House 
Street. London W1A 3AS. Fstx: 071-323 5683. 


Smith & Williamson 
Chartered Accountants 
Retpsuml U> cany im audn writ anl 
iuithuftod a. catty i«i mvcstnksu 
btomes* by the [reunite U Chniu'rcd 
Accuuounlk «n Enijbikl jnJ W.itn 


Smith & Williamson Securities 
AurS.irU.-J tnsomum imJct 
Kittling Acr !W. 

Member uflMRO. 

Member uf i Ik LmUun 
Invctlntenr Bunion^ Assouanmi 


GREEK EXPORTS SA. 

( Founded & Owned by ETBA SA.) 

SECOND REPEAT PUBLIC AUCTION FOR THE HIGHEST BIDDER 
FOR THE SALE OF THE ASSETS OF GENERAL INDUSTRIAL 
ENTERPRISES -VEPOLSJL 

GREEK EXPORTS SA, established in Athens end legally represented, in Us capacity 
as liquidator of GENERAL INDUSTRIAL ENTERPRISES - VEPOL SA. following 
Decision No.7820/1992 of the Athens Cbun of Appeal, and in accordance with article 
46a of Law 1 892/90, as supplemented by article 14 of Law 2000*91 and axtipfemcmcd 
by article 53 of Law 2324/94. 

AMNO.UMCES 

a seooml repeat public nisei ion for the highest bidder with scaled, binding often for the 
ufe.ua whole, of the assets of GENERAL. INDUSTRIAL ENTERPRISES - VEPOL , 
SA. now under special liquidation. 


VEPOL S A based in Athens, set up a fachny in the Epedtopi area of Naouisa In the 
province of hnathia ton the Vfcrria-Edesan National Road) for processing and 
standardising fruit and gardening products. 

The factory is buib on a plot of land 47.4S1 nr in area. Near h, then: is another plot of 
land belonging to VEPOL SA I3.47<> nr in area (the ptois are separated by the paved 
rood that leads to Epistopi). 

The total area of the boihlinga owned by the company is 1 

The company's basic factory equipment includes: a) a tomato paste production line, b] 1 
processing lines for peas, cherries, strawberries, apricots etc. c) a complex for refining 
and concentrating lomaro palp. etc. It should be noted that the existing machinery was 
bought about 20 years ago and has remained inactive for many years. For this reason, 
part of the machinery is obsolete of has suffered serious wear as Doled in the I 
description of ofafing machinery which has been added to the Confidential 
Offering Memoranda™. 


1. Prospective buyers are invited to receive from the Liquidator the Confidential 
Offering Memorandum and the draft Letter of Guarantee, in order to submit a sealed. 
Nutting offer to the Athens notary assigned to the public auction, Mrs. Andriani- 
Dimitra Zapbeiit^mifou-Ecommopoalou f IS Vaukooieatiou St., 5th (loot td. +30- 
I -321.8249) np (400 town tut Tbesday 13th December 1994. Bids should be 
submitted in person or by a legally authorised representative. 

! The bids will be opened by rite above notary at 12M boors on Wednesday 14th 
December in ihe presence of the Liquidator. Persons having submitted an offer 
within the prescribed lime limit cm also attend. 

3. On a penally of Invalidity, bids must be accompanied by a letter of guarantee Cron a 
bank legally operating in Greece, valid up until iu return to tbe prospective buyer, to 
the amount of fifty million drachmas tSO/tOQjOOOl for VEPOL SA 

4. Tbe company's assets and all Treed and ciiculutng elements that comprise them 
shall be sold and transferred 'as is and where is” and. more specifically, in their 
actual and legal state and where they are on die day the sales comma is signed. 

5. Tba Liquhlaitn; VEPOL SA and VEPOL’s creditors are not responsible for any 
legal or actnal defects of the objects for sale and their rights, nor far any incomplete 
pr inaccurate description of them in tbe Offering Memorandum. 

6. Transfer expenses of the assets (VAT oa the value of movables, notary fees, mortgage 
fees, oc.1 are to be borne by the buyers. 

7. Participation in the auction implies acceptance by tbe prospective buyer of all the 
terms contained In the announcement. For the rest, legal provisions by which ihe 
company is being liquidated are in force. 

For the Offering Memorandum and any additional information ofdnrificaltnq interested 

parties should apply to: 

a) GREEK EXPORTS SA, (7 Ftawpfetiaioa St, Afirem, Greece, tst Floor, 
teL +38-1-JZ4J 11 1-115 and 

b) ETBA SA Holdings Dept. 87 Syngrou Ave. Athens. Greece; 4th Boox; 
ltd. +3B-I4242WMUZM6U & 92M613. 









12 


TECHNOLOGY 


Worth Watching - Vanessa Houlder 



Material packs 
green punch 

Jiffy Packaging, a UK company, 
has launched a paper packaging 
material as an environmentally 
acceptable alternative to plastic 
babble wrapping. 

its Flextra product is a roll or 
paper with thousands of tiny slits, 
which takes op less storage room 
than conventional packaging 
materials. When it is stretched it 
becomes a three-dimensional 
honeycomb of hexagon-shaped 
boles, giving it cushioning 
properties. 

Its ability to expand to 10 times 
its height and 20 per cent in area 
makes it suitable for Ailing voids, 
comers and gaps. 

The manufacturers believe that 
the paper is an environmental 
advance on previous products 
because it is made from recycled 
fibres, is reusable, bio-degradable 
and can be recycled. 

Jiffy Packaging: UK tel 01606 
551221: fax 01606 592634. 


Europe’s most 
innovative product 

A competition to select Europe’s 
most innovative IT products has 
been launched by the Information 
Technology Programme of the 

Europ ean Commission in 
conjunction with the European 
Connell of Applied Sciences and 
Engineering. 

The winners will be the three 
entries considered “the most 
innovative products with high IT 
content and evident market 
potential". Entries should have 
reached the prototype stage but 
should not have been ou the 
market longer than six months. 
Submissions must be received by 
January IS 1895. 

The 1995 Information 
Technology European Awards are 
open to companies, universities 
and institutions with in th e 
European Union and EFT A. The 
20 finalists will each win 
Ecu 5,000 (£4.000); the three 


winners will receive an additional 
Ecu 200.000. 

[TEAlEurO-CASE Secretariat: 
France, tel 331 44 41 43 94: fax 331 
44414401 


Aspirin is a plant’s 
best medicine 

Salicylic add, the precursor of 
aspirin, has been found to play a 
central role in plants' ability to 
resist disease. 

Scientists at Ciba-Geigy in the 
US and Switzerland conducted 
experiments on transgenic 
tobacco plants which found that 
an accumulation of salicylic acid 
is essential for the expression of 
plant disease resistance. The lack 
of salicylic acid hinders acquired 
resistance and makes the plant 
more susceptible to viral, fungal 
and bacterial infections, 
according to the report in today's 
Science. 

Ciba-Geigy: US l tel 919 541 8500. 


Stolen bags called 
back to base 

Anyone who has lost a bag or 
briefcase knows the frustration of 
losing valuable belongings and 
documents. New Perspective 
Technologies, a UK company, has 
launched an alarm device to 
counter bag theft. 

The Stentor Proximity Alarm 
consists of a transmitter, which is 
placed inside a case or bag and a 
receiver, which is kept in the 
user’s pocket or on a belt If the 
case or bag is removed from the 
owner, the person is alerted. 

New Perspective Technologies: 
UK tel 071 584 7666: fax 071 584 
SS5& 


Extreme conditions 
measure up 

A range of probes capable of 
measuring temperature in 
extreme conditions such as those 
inside a nuclear reactor have been 
developed by Cableries de Lens, a 
French company. 

The probes consist of 
thermocouples which are tightly 
packed with a mineral insulator 
such as magnesia or alumina 
inside a metal sheath. The 
insulator protects the 
thermocouples from chemical 
attack, while its density and 
thermal conductivity allow the 
same response times as a bare 
wire of the same diameter. 

Cableries de Lens: France, tel 
3327671111: fax 3327686077. 


A n engineer opens the 
engine bay door of the air- 
craft. positions a trailer 
under the engine bay, 
jacks it up and removes the bolts 
securing the engine. He then con- 
nects the engine to the trailer, low- 
ers it and removes it for servicing 
It is the same routine as usual, 
involving the same steps and taking 
the samp time as usual- The differ- 
ence is that the tools are computer- 
generated, the engineer is wearing a 
headset and the exercise is being 
conducted in a virtual world. 

This is an application of virtual 
reality, a form of three-dimensional 
computer graphics which allows 
users to feel as though they are 
looking at a graphic, and interact- 
ing with it. from the inside. As the 
user manipulates the system, using 
a device such as a mouse, glove or 
spaceball, the software updates the 
image and transfers this new view 
of the virtual world back to the user 
through a display. 

This aircraft engineer’s encounter 
with virtual reality is part of the 
design process at McDonnell Doug- 
las. the US aerospace company. It 
bought the system In September 
from Division, a UK-based supplier, 
on the basis that it would involve 
“fewer mock-ups and prototypes, 
earlier design testing and reduced 
costs". 

Examples such as this show that 
virtual reality is beginning to make 
inroads in business, although its 
image is still heavily dominated by 
its applications in games and enter- 
tainment. “Overcoming the precon- 
ception of management that VR is 
about hype and entertainment" 
remains a significant challenge, 
according to Pierre duPolnt, mar- 
keting director of Division. 

The business market for virtual 
reality currently accounts for just 
$4.lm (£2.5m) of the $115. 8m total 
market, according to 4th Wave, a 
US consultancy. It is expected to 
grow strongly. By 1998 it expects 
the business market to account for 
$95m of a total market worth 
$S69.9m. Research and development 
applications are expected to grow 
from $40.3m to $64-4m in the same 
period. 

Even now, the variety of business 
users and applications is extensive. 
Examples range from EDF, a 
French nuclear power operator, 
which uses virtual reality to help 
engineers plan maintenance pro- 
grammes that expose them to mini- 
mum radiation, to Wall Street 
where Maxus Systems Interna- 
tional, a finanri.nl consultancy, has 
designed a system that allows trad- 
ers to represent financial informa- 
tion visually by using symbols that 
float on a virtual plane. 

Most business uses of virtual real- 
ity fall into three categories: mar- 
keting. design and training. 

Just over $Zm is currently being 
spent on marketing applications of 


Commercial applications of virtual 
reality are growing rapidly, 
says Vanessa Houlder 

Virtually in 
business 



Seeing is believing: advanced engineering design and prototyping in virtual reaflty 


virtual reality, according to 4th 
Wave. A notable user is Matsushita, 
the Japanese interior design com- 
pany. Ln its Tokyo showroom, cus- 
tomers can view a combination of 
any of the 50,000 items in its cata- 
logue by putting on a headset and 

taking a virtual 

tour of a house in 
which they are 
installed. The 
cost of the equip- 
ment, at more 
than £250,000, 
might inhibit 
other retailers 
from following 
their lead. However, the company is 
considering rolling out the project 
to its other shops using a cheaper, 
PC-based system. ' - . 

Similar equipment is also used in 
the UK, where British Gas has 


Virtual reality is 
proving useful in 
training people to 
cope with complex 
situations 





crannies 


I p Edwardian England, the; -. 
streets' wexd-swept dean, by 
thelikesof Him Uoolitiidg ■’ 
fefher. Imhodero-day japan, 1 
the job is-done by large frueks 
equipped with water hoses and . 
brooms that roam the streets at 
nigfrt = 

Bnt for the nooks and - 
crannies which the' heavy-dirty • 
cleaner trades miss. Banzai n - ' 
Japanese manufacturer of : 
automo bile andleisnre .. - r -. - 
equipment maintenance . 
machinery, has produced a 


installed a virtual reality system 
(which uses a monitor rather than a 
headset) to demonstrate kitchen 
designs in its Coventry showroom. 

Design is another application that 
makes good use of virtual reality's 
convincing simulation of products. 

One of the most 

Innovative uses of 
the concept has 
been in drug 
design, where 
Glaxo and the 
University of 
York are working 
on a £600,000 
■“■■■ three-year project 
with funding assistance by Division, 
tiie UK’s Department of Trade and 
Industry and the Science and Engi- 
neering Research Council 
The goal of the project is to allow 
chemists to manipulate molecules 


FINANCIAL TIMES FRIDAY NOVEMBER 18 1994 


using virtual reality, allowing them 
to get a tangible sense of how they 
interact Glaxo' says that although 
“the jury is still out” an bow well 
the system wQl work in practice, 
the concept has proved itself. . 

Within the field of industrial 1 
design, virtual reality may be 
adopted relatively easily, since it is 
a variation on widely used comput- 
er-aided design. 

When CADCentre, a Cambridge- 
based computer-aided design bus!' 
ness/ launched Review Reality, a 
virtual reality software product far 
designers at process plaid, recently, =• 
it was depicted as the latest In a ' 
line of products that allow engi- 
neers to visualise their design data- 
base. 

Review Reality presents petro- 
chemical installations and offshore 
platforms as life-like computer mod- 
els, generated in real time. George 

Osborne, an engineering general 
manager of Kvaemer H&G, the Nor- 
wegian shipbuilding . group, . is 
enthusiastic; “it is highly desirable 
because it is more fife-tike,” he says. 

For complex equipment such as 

plants and rigs, the uses of virtual 
reality go beyond design. Simulated 
mnrtris can also be pressed into use 
for activities such as safety assess- 
ments and training. 

Virtual reality is proving useful 
in training people, to cope with, com- 
plex situations, such as in a fire: 

The UK’s Fire Service . College " 
uses virtual reality for training’., 
because it provides a visual expla- 

theories that underpin fire engi- 
neering. The software designed by 
Superscape, a UK-quoted virtual 
reality company, allows trainees to 
see what happens to a fire in chang- 
ing conditions, such as when doors 
are opened or shut 

Applications are likely, to expand 
further as virtual reality systems 
become less expensive to Install. 
Since virtual reality depends on 
high-performance c omputing power, 
the hardware can cost £250JK» to 
create top-quality graphics. 

For many users who find the . 
quality of the image from a PC- .. 
based system acceptable, the costs 
can be much lower. For example, 
IBM, together with Virtuality, a UK 
virtual reality company, is about Is ‘ 
begin marketing a virtual reality 
development system costing 
between £6^00 and £55,000. 

Prices are likely to foil farther. ‘ 
“We want to make it accesslble to 
more people by bringing the costs 
down.” says Jan Waldem, manag- 
ing (firectorof Virtuality. 

As with many new technologies, 
many potential customers will be 
tempted to wait until the price of 
virtual reality equipment falls and 
performance improves. But as cost 
becomes less of a deterrent, 
virtual reality looks set to become 
widely adopted as a practical 
tooL 


on the streets. 

The FkM Vacuum Cleaner has 
suction strength of 13 ca m p er - 
mhxccte. It socks Up everything 
from dead leaves to empty 
bottles, cans, water and sludge. 
It reaches underpark benches 
and into coiners of pavements 
and removes mud from the - - . 
gutters. 

- The company started 
exporting thecteanerto France 
three years ago, where it is used, 
to dean the debris stnek in the : 
grooves of railway tracks, and ; 
to clear dog mess from the 


The company started to sen in 
Japan after sales in France, took; 
offhand Banzai says it is now 
s elling aro imri fiO machines a 
month. 

Buyers in Japan include 
companies that clean parks and 
office blocks, while golf driving . 
ranges and tennis courts use it 
to retrieve players’ balls-. 

The 70kg machine runs on a .. 
gasoline engine. The 3m hose,' 
which weighs 3kg to 4kg, is 
s up ported by a rod extenthng • . 
from the cleaner. Hie refuse box 

IwMft the cleaner, which holds' 

120 litres, detaches from the 
machine for emptying: 

. Banzai warns thatwhile.fiie 7 - 
ma chine is suitable for deaifag 
email areas tiiat are hard to 
reach, it is inadequate for - 
efficient vaenmning of wide - - 
surfaces. 

In Japan, the cleaner costs 
Y780.000 (£4,936). 

Emiko Teraztino 


MANAGEMENT 


A word in 
Tony’s ear 

Kevin Brown offers tips on how to 
influence Britain's Labour party 



Fergus Wilkie 

Is Tony Bteir for turning? Sometimes It may be better not going to the top 


S o you want to lobby the 
Labour party? You are not 
alone. With Labour nearly 
30 percentage points ahead 
of the Tories in most opinion polls, 
businessmen have been queueing 
up to talk to the people many 
expect to form the next govern- 
ment 

It was not always like that. Mich- 
ael Heseltine. quick to spot an oppo- 
sition weak point, raised a big 
laugh only a couple of years ago by 
poking fun at Labour's attempts to 
make business converts by dining 
in boardrooms - the so-called 
prawn cocktail offensive. 

“Never have so many crustaceans 
died in vain," Heseltine told the 
Commons in a hilarious skit on the 
campaigning efforts of the late John 
Smith, then shadow chancellor, and 
Margaret Beckett his deputy. 

The jibe prompted Tory cheers - 
and not a few wry grins from 
Labour MPs - because of the wide- 
spread view that any hope of cor- 
dial relations between the party of 
trade unions and its class enemy 
was a joke. 

But Labour Is having the last 
laugh. The charm offensive 
launched by Smith was continued 
when he replaced Neil Kinnock as 
leader after the 1992 election, and 
put into overdrive when Tony Blair 
took over la the summer. 

Even Robin Cook, one of the more 
traditionally minded of Labour's 
leading figures, undertook a 
protracted tour of Britain to consult 
small business - an und er taking 
inevitably dubbed Labour’s Cook’s 
tour by Commons wags. 

“For a long time in the 1980s 
Labour had very little to do with 
business; frankly, they thought we 
had two heads, and that was what 
the prawn cocktail offensive was 
designed to overcome.” says a 
senior Labour official. 

“Things have changed a lot 
recently, partly because people now 
see us as serious contenders for 
government and partly because of 
the perception that the party under 
Tony's leadership is more interested 
in a healthy business sector." 

Roland Wales, director of policy 
development at Labour's London 
headquarters, says the party wel- 
comes the increasing number of 


approaches from business because 
“it is in our interests for our poli- 
cies to be well thought our. 

But it is important to go about it 
in the right way. So here are some 
tips for those who spent the 1980s 
ignoring the people’s party but now 
want to make their voice heard. 

• Don't bother with lobbying com- 
panies. Kinnock’s office had an iron 
rule of never dealing with them. 
Blair’s Labour party is more flexi- 
ble, but the lobbyists will probably 
be wasting your time and money. 

Senior officials say that most 
businessmen will probably be given 
lower-level access through a lobby- 
ist than through a direct approach. 
But consultants can be useful to 
businessmen who don’t know how 
the party works. 

Charles Clarke, who worked for 
Kinnock and now runs Quality Pub- 
lic Affairs in London, advises cli- 
ents seeking to influence Labour to 
steer well clear of the mushrooming 
lobbying industry. “A lot of people 
are fobbed off by lobbyists with 
cocktail party contacts, which are 
usually a waste of time. You have 
to make your case, and you have to 
make sure you are making- it to the 
right people," he says. 

• Don’t make unsolicited personal 
approaches, especially to people's 
homes. “Once or twice we have had 
people who come to the front door 


and demand to see us. which is not 
a terribly helpful way to go about 
it” says Wales. 

• Never offer inducements 
(although a slap-up meal will not be 
refused). Labour frontbenchers and 
officials believe they have the gov- 
ernment on the run in the sleaze 
battle. They want to be in govern- 
ment too much to risk doing any- 
thing questionable, even if they are 
tempted. 

• Do remember that there are sev- 
eral ways of influencing policy 
development. For most companies. 


the best will be via the party head- 
quarters policy unit or the shadow 
minister who speaks for Labour on 
your subject 

But Labour also has a standing 
Industry Forum specifically 
designed to foster contacts with 
business. And there are usually a 
number of consultation exercises 
going on - the current crop 
includes health, the economy and 


• Do make your initial contact in 
writing. Labour is short of 
resources, so don’t expect a lengthy 
reply, but shadow ministers and 
officials say they respond to all 
their letters eventually - and they 
will meet you if you have some- 
thing worthwhile to say. 

• Do make sure you have worked 
out clearly what your concerns are. 
and that your arguments are 
cogently explained. Many business 
people apparently think their views 
are self-evidently correct, especially 
if they usually talk only to Tories. 


• Do identify carefully wbo you 
need to talk to. Remember that each 
shadow minister has a team of 
front-bench MPs to assist him or 
her. Sometimes you can make your 
point better by not going to the top. 

• Do remember that officials can 
be useful points of contact, too. 
Access to Blair is tightly controlled, 
for example, but you might have 
more luck with David Miliband, tbe 
leader's young and imaginative 
head of policy. 

There are also some very influen- 
tial MPs in apparently junior posi- 
tions. Formally, for example. Peter 
Mandelson, the MP for Hartlepool, 
is a mere junior whip. But be is also 
an intimate confidant of Blair, with 
far more influence than most mem- 
bers of tbe shadow cabinet. 

• Do remember the regional 
approach. If you are based in Scot- 
land, try approaching George 
Robertson, shadow Scottish secre- 
tary; from Wales try Ron Davies, 
shadow Welsh secretary; from 
Northern Ireland try Mo Mowlam, 
shadow Ulster secretapr. London 
has its own shadow cabinet spokes- 
man - Frank Dobson, who also han- 
dles transport. 

And finally, do make sure that a 
senior executive makes the 
approach. Socialists are like every- 
one else, they like to have their 
egos massaged. 


crime. 


Never offer Inducements. Labour 
frontbenchers and officials believe they have 
the government on the run in the sleaze 
batde. They want to be in government too 
much to risk doing anything questionable 


CHRISTOPHER LORENZ 

The difficult art of 
skills transfer 



Why did Genera] 
Motors flounder so 
badly in the US 
throughout the 
1980s, while its 
European offshoots 
prospered migbt- 
ily? Only in 1991, 
when the parent 
company was about to hit the 
crash barrier, did it start to learn 
managerial lessons from Europe. 

They Included the need to 
import Opel’s notorious cost-cut- 
ter, Jose Ignacio Ldpez de Arrior- 
tda - who after a few Instructive 
months defected noisily to Volks- 
wagen. 

Why has Ford suffered from a 
mirror-image of the same prob- 
lem? Tbe US parent company revi- 
talised itself a decade ago through 
a string of far-reaching changes - 
including the introduction of 
teamwork and total quality - but 
its European arm adapted far less 
successfully, and has performed in 
lacklustre fashion as a result. 

The reasons are not peculiar to 
the motor industry. Nor are they 
simply explained by geogTaphy- 
that is, the thousands of miles 
that hamper effective communica- 
tion between locations such as 
Detroit and Germany, even in this 
electronic age. 

Instead, the causes are generic. 
They afflict almost every large 
organisation, not only those with 
a far-flung network of units, bat 
also those with a diverse range of 
businesses in the same country. 
Even similar units cm tbe same 
site can be affected. 

The problem is that the transfer 
of skills and practice between 
businesses within a company is 
far trickier than most people real- 
ise. In some respects, thanks to 
the glamour of co m petitive bench- 
parking, it is harder than learn- 
ing lessons from outside. 

This is not merely a matter of 
the ubiquitous "not invented 
here" syndrome interfering with 
internal organisational learning, 
although that does always create a 
powerful barrier. There is far 
more at fault* poor understanding 
of what really constitutes “world 
class” practice; head offices that 
have no idea how to encourage the 
transfer of skills between their 
business units; and a long list of 
other value-destroying problems. 


Many of them have been investi- 
gated tn unusual depth in a two- 
year study of “intra-firm transfer 
of best practice” carried out by 
Gabriel Szulanski, a researcher at 
Insead, a leading European busi- 
ness school. His report will 
shortly be published by an arm of 
the American Productivity & 
Quality Centre*. 

The study finally dispels the 
widespread myth that companies 
can breed best practice just by 
designating internal "centres of 
excellence” for particular skills 
and know-how, and then letting 
them disseminate it to eager inter- 
nal customers. 

Szulanski examined 122 trans- 
fers of 38 technical and manage- 
rial practices in a range of US and 
Buropean companies including 
AT&T Paradyne, BP, Chevron, 
EDS, Rank Xerox, Sprint and Banc 

Head offices must 
tread a knife-edge 
between inadequate 
involvement and 
over-interference 

One, an Ohio group known for its 
transfer mechanisms. In descend- 
ing order of difficulty, the follow- 
ing problems emerged: 

• Inadequate "absorptive capac- 
ity" on the part of the recipient 
nut Szulanski uses this term to 
describe its ability to identify and 
implement the practices in ques- 
tion. 

• Inadequate understanding of 
the practice, either on the part of 
the recipient unit or of the pro- 
vider. Detailed operating proce- 
dures for tbe practice may not be 
available, and tbe skills and 
resources needed to perform it 
successfully may not be listed 
properly. 

• The quality of the relationship 
between the two units in any 
transfer. One or both of them may 
sot be keen to collaborate, and to 
assign good personnel to the proj- 
ect. Even if they are enthusiastic, 
communication may not be well- 
established or easy. 

• The recipient unit may be con- 
sidered unreliable by the provider. 

• Hie provider may lose its ini- 
tial enthusiasm because it has to 


carry too much of the financial 
burden. 

Another finding was that it took 
an average of 27 months for a unit 
or company to recognise the exis- 
tence of an opportunity to transfer 
best practice, and another n i ne to 
implement the transfer. 

Coming from a bunch of suppos- 
edly leading companies, tins is a 
pretty sorry catalogue. 

Puzzlingly, the study pays only 
scant attention to one of the most 
important factors to the transfer 
of best practice: the parent compa- 
ny's effectiveness to fostering rt 

Szulanski calls this the “organi- 
sational context" within which 
transfers occur, or fail to. He finds 
that those “mandated” by the 
organisation are less difficult than 
optional transfers, bnt that nei- 
ther are as successful as “strongly 
suggested" and spontaneous ones. 

11118 conclusion begs a series of 
important questions about the role 
of head office. They are covered 
much more folly, under the jar- 
gonistic title of “linkage influ- 
ence", in Corporate Level Strat- 
egy^. a new book reviewed on this 
page on October 5. 

Among other examples, it cites 
Banc One's use of an unusually 
detailed monthly reporting system 
to pressurise all its affiliates to 
gauge their performance against 
other units, and to identify good 
exponents of the practices that 
they need to introduce or improve. 

But such centralised procedures 
can have their downside. The book 
warns that managers to some com- 
panies admit they deliberately 
conceal potential transfer opportu- 
nities for fear of losing control to 
some centralised procedure. 

- execn tl ve is quoted as say- 

ing: I would always prefer to deal 
wtth an outsider because yon 

iff 1 to TOteh your back on 

the political issues.” 

sad reality 
Fonl to the 1980s, as it 
still is in most companies. It 
®jans head offices must tread a 
knife-edge between inadequate 
“L"* over-mterfer- 
Detroit giants are now 
saving to do just amt- 


Texas. 


*Iti Houston, 

713-683-531. 

*7^ Campbell and AU 
ter- Wiley $34. 95 I £24. 95. 







FINANCIAL TIMES 


FRIDAY NOVEMBER 18 1994 


13 






★ 



ARTS 


M F late and mnc] 
lamented n ear-name 
sake, Eonaid Eyre 

SpsjwSsi 

SSTSBaa 

I once did a show with 

rlim. flt t< rtf ed °j? t to* 0 tte audito 
nnm at the end of the show am 

tEL^J* elephant’s minder 
ifavls. She started mid-mornlnj 
™pafrmg t he small tears from fa* 
JJJJMM .BlBhf* exertions wit! 

a bicycle repair outfit. Shf 
then plugged the beast Into an air' 
compressor and waited patientls 

the P ,astic Pachyderm tc 
achieve tte majestic, fnlly inflated, 
ftmm only to see it deflate, devoid 
or dignity, during its nightly 
appearance - a process, at least for 


It’s not theatre, sir, it’s an opera 

Director Richard Eyre is making his debut at Covent Garden next Friday 


Ron, remarkably similar to direct- 
ing an opera. 

1 have always had powerful prej- 
udices against opera. Stock for a 
conversational diversion. I once 
asked Princess Margaret - a noted 
(or notorious) balletomane - if she 
liked opera: “Can’t stand it A lot 
of frightfully boring people stand- 
ing stffl and yelling.” Blunt per- 
haps. but not a universe away from 
my own feelings at the time. 

Being marinated in the art of 
theatre, and nourished by an aes- 
thetic of “truthfulness” - however 
relative, and however pretentions - 
1 was unsympathetic until recently 
to a medium which transparently is 
not concerned with holding the 
mirror up to nature. Opera seemed 
to me to depend on the audience's 
acceptance of an elaborate conceit. 


The motor of “mostc theatre” is 
music rather than theatre, and the 
making of music seemed to me to 
have little in common with the 
making of theatre. Music does not 
have to have a point; that is Its 
point, the music. With good music, 
as Auden says, yon have only to 
listen to it, and be grateful. Thea- 
tre, on the other hand, prospers, or 
labours, under the despotism of 
logic: it maintains a stubborn 
dependence on plot, which in many 
operas delights in its obscurity and 
revels to Its resistance to common 
sense. And if its plots often appear 
absurd, its passions often seem 
either histrionic or bathetic. 

I was uneasy about an entertain- 
ment which employed so many peo- 
ple to achieve its effects, and conld 
be as unwieldy as an aircraft car- 


rier. I was uneasy too (and remain 
so) about the cost, swollen not only 
by the numbers involved, but the 
iwed to submit to fees dictated by 
the international market And to be 
honest 1 have been put off opera 
not so much by the activity itself, 
as by toe personality of some of its 
propagandists - the fans, the 
enthusiasts who criticise and cata- 
logue every performance with the 
joyless pedantry of armchair crick- 
eters pouring over their Wisdens. 

However, I’ve become a convert. 
It is still unlikely that you will find 
me to future years In toe Crush Bar 
extolling the virtues of Otto 
Schweppes’ Leporello, castigating 
Helga Haugen Dazs’ Marschallin, 
and minutely examining the flaws 
in Guido GamloralaTs Ring, bat I 
have lost my heart to at least half a 


dozen works, not aO of them by 
Mozart or Verdi. 

I have come to accept that opera 
is a world like any other: like toe 
theatre, opera has its own partial- 
ity, its own criteria. Its own forms 
of truth and of excellence, no less 
exacting, and no less rare than in 
toe theatre. I have recognised that 
I have earned Matisse’s rebake to 
the woman who complained that an 
arm in a painting of his was out of 
proportion to the body: “It’s not an 
arm, madam, it’s a picture.” Opera 
is its own totog and it is as fruit- 
less to blame it for not being like 
theatre as it is to blame theatre for 
not bring film, or a melon for not 
being an orange. 

My conversion has occurred 
through the sorcery of Sir George 
Solti, who. after a flirtation with 


me over Falstoff in Salzburg, lured 
me into directing La Traoiata at 
Covent Garden: “I have never con- 
ducted Traoiata, you have sever 
produced it together we will make 
onr first Traoiata.” I have not 
regretted it, and I will never tire of 
watching him at work with the 
orchestra and singers - punching 
the air. on his toes like a boxing 
trainer, staging and shouting like a 
muezzin. “Play this forte, ” he 
crowed to the ’cellos. “Break your 
wrists and break my heart” I enjoy 
as much our minutely detailed dis- 
cussions about the meaning or 
value of a note, a word, a gesture; 
it is an obvious and extraordinary 
pleasure to work with a great con- 
doctor, but it is as rare and as 
important to work with a great col- 
laborator. 


“It’s too early to jubilate about 
this enterprise," Solti has said to 
me. I can Jubilate privately that my 
prejudices against opera have been 
cast off and my worst expectations 
have been defied: instead of a 
soprano the size of a Wessex 
saddleback, 1 work with one who 
has a large and beautiful voice and 
a waist the size of a teapot, the 
tenor has a modest ego and a voice 
as unforced as a mountain stream, 
the chorus are cooperative and 
inventive, and rehearsals have been 
free of operatic (or theatrical) tan- 
trums. 

In one sense Bon was right there 
is something of the elephant about 
opera - an awesomely large, some- 
times cumbersome, and sometimes 
heart-stoppingly beautiful animal. 
But there is far too much poetry 
about it to be rendered in plastic, 
and directing it does not seem like 
pumping up an inflatable, however 
much huffing and puffing it 
involves. It is much more unpre- 
dictable than that: like getting an 
elephant to dance on a tightrope. 
Oh yes, and sing too. 


• U3 *fe 

■ rr ,ort ^ 

••'■■‘•T'jaik 




S-.miko Ien: 



art of 
ifer 



‘Saison Russe’ in Paris 





Portia (left). This is not Just another terrible staging: it is like staring into a nightmare of the fotnre 


Alastafa- Hnlr 


Theatre / Alastair Macaulay 


Peter Sellars’s ‘Merchant of Venice’ 


I t was to be predicted that Sel- 
lars’s staging of The Merchant 
of Venice would prove slow, 
post-modern, agenda-ridden, 
Americanophobe, heavy-handed, 
poorly performed, insensitive, 
untheatrical, unsp cutaneous, 
unShakespearian, and unoriginal; 
and so it proved. (About one-fifth of 
the audience left at the interval.) 
But - unlike, say, the Dussridorf 
Romeo and Juliet - this is not 
merely another terrible st agin g. 
Watching the Sellars Merchant is 
like staring into a nightmare of the 
future. 

You may not be surprised to hear 
that Ids Venice is Californian, and 
his Shylock black. Or that, in the 
trial-scene speech on “purchas’d 
slaves”, Shylock Intones the single 
phrase “Let them be free!” three 
times (Shylock as Martin Luther 
Krng - natch) - while videos show 
us President Bush apparently 
urging on the cops to smash Black 
Power demonstrations. 

As usual, Sellars is bending 
works of art to suit Ids own unyield- 
ing agenda: Le. to broadcast his 
own p.c. guilt at white suprema- 
dsm, and to express his own con- 
victions that the Americanisation of 


world culture is destructive. 

The problem, it must be stressed, 
Is not Sellars's agenda but toe dull 
crudity with which he bashes it 
home. He works not as an artist but 
as a demagogue. (The notion that 
Shylock is more sinned against 
than stoning - scarcely new - was 
central to David Thacker’s recent 
RSC production.) It is interesting 
thpt - as fa Jude Kelly's haunting 
West Yorkshire Playhouse staging 
to March - Sellars maximises the 
homosexuality of the Antonio-Bas- 
«nin relationship, and underlines 
the angst that afflicts Portia when 
she realises what she has married 
into. And he takes some of them 
farther. But, whereas Kelly’s emo- 
tional drama was as taut as a thril- 
ler, Sellars makes it monolithic. 

As always, his conception of char- 
acter is one-dimensionaL As always, 
he seems to dislike virtually every 
char acter onstage. Antonio is the 
worst vfflam, of course, being chief 
capitalist manipulator. But Portia is 
lachrymose from start to end. 
(When she and Nerissa snap into a 
bat of rap as they prepare to don 
men’s clothes, it is a mere shtick, 
true to nothing in her character 
elsewhere.) Shylock is a solemn. 


orthodox bore, and at his dullest 
when (twice) he breaks down about 
Jessica's defection. “Hath not a Jew 
eyes?” is delivered straight to a vid- 
eocamera. and relayed on the 15 
screens dotted around the stage and 
auditorium: very measured, it 
sounds like something Shylock had 
said a milium times before. 

N othing here is spontane- 
ous. Sellars keeps mak- 
ing speeches sound delib- 
erately phoney. 
Antonio’s friends and Portia’s suit- 
ors are image-conscious, forever 
addressing video monitors. Salerio. 
Solanio and others keep turning 
into TV reporters. Sellars Is. pre- 
sumably, making points here about 
the terrible way in which modem 
living is indeed being geared for 
perpetual broadcast. (A few of them 
are fanny, as when Salerio-Solanio 
do one duet scene like a creepy pair 
of breaWast-TV hosts.) But, since he 
has all his actors speak with micro- 
phones heavily amplifying almost 
everything, so that they sound 
broadcast-oriented and pre-re- 
corded, he commits the sin he satir- 
ises. Meanwhile, toe Immediacy of 
poor Shakespeare's lines is wholly 


ignored. Live theatre has never frit 
less live than in Sellars's hands. 

Yet the fact that Sellars has zero 
sense of Shakespeare is, in this con- 
text, a minor felony. He is. after all. 
only treating the Bard the same 
way that he has been treating Aes- 
chylus, Handel, Mozart, et aL No, 
Sellars's main crimes are not 
against artistic text but against 
human spirit The dreary inflexibil- 
ity of each stage character, the 
deliberate lack of spontaneity in his 
world, the relentless wise-guy irony 
of his every production, the appall- 
ing need to twist ambiguous texts 
to make monotonously white-guilt 
and Americanophobe points: these 
factors are symptomatic of the 
worst tendencies of our increasingly 
politically-correct and post-modem 
era. They express a kind of modem 
cultural Stalinism that - though it 
intends merely to oppose the worst 
of Eurocentric traditions - is actu- 
ally hostile to civilised values. I do 
not exaggerate when I say the fol- 
lowing: to watch Sellars's work, like 
that of the choreographer William 
Forsythe, is to feel that the next 
dark age is already upon us. 


Barbican Theatre until Saturday. 


A n important Saison Russe 
(shades of Diaghilev to 
1 909) has started in Paris. 
The opera and ballet 
troupes from the Mariinsky/ Kirov 
Theatre, complete with orchestra, 
are installed at the Theatre des 
Champs Elysfies until the end of 
December, and will mairp intermit- 
tent forays into the regions. 

The opera repertory is significant: 
Sadkxr. The invisible City of Kxtezh : ; 
The Queen of Spades: Khovants- 
china. Hie three ballet offerings are 

Ipcs impressive, thoug h wnnft has 

before been shown to the west by 
the Kirov, I saw the old (1934) Foun- 
tain of Bakhchisaroy and a new 
(1993) Coppitia, toe remaining item, 
Vainonen’s version of The Nut- 
cracker, turns up to December. 

Fountain of Bakhchisaroy is an 
intriguing example of Soviet ballet 
because it was made when creative 
artists were shackled by S talinis t 
aesthetics and the theory of “social- 
ist realism", where ait for the peo- 
ple valued political correctness 
above all else. Bakhchisaray's 
theme was “correct” because taken 
from Pushkin. Tartar horde ravages 
Polish manor house, and kills 
everyone save the fair Maria, who is 
lusted after by their Khan Guirey. 
End of Act 1. Act 2 is set in Gulley's 
harem where his chief mistress, 
Zarema, takos on alar ming l y at the 
arrival of Maria, who shrinks from 
every Tartar suggestion. In Act 3, 
Zarema kills Maria in a fit of jeal- 
ousy. She, to turn, is tossed from 
the castle walls. Guirey mopes, and 
has a fountain installed to remind 
him of events — a happy combina- 
tion of sentiment and sanitation. 

The ballet has been popular since 
its first performance, when Ulanova 
was the exquisite Maria. Rostislav 
Zakharov’s choreography and Boris 
Asafiev’s music were of their time 


Sedipova: 

T he love affair between toe 
Wigmore Hall public and 
its Russian singers gets 
ever more intense. On 
Wednesday there was a new object 
of adoration, the soprano Valentina 
Sedipova, making her London debut 
during the Marytosky-Kirov Series. 

Sedipova, one of the seemingly 
endless supply of young Russian 
sopranos ma ki ng an Impact in the 
west, is a leading member of the 
Kirov Opera. Reporting from St 
Petersburg to February, Max Lop- 
pert singled her out for praise after 
her alluring Sea Princess in Sadko. 
This recital confirmed those impres- 
sions: hers is a well-supported 
voice, powerful and full of colour 
throughout its range. 

She sang a fascinating pro- 


and, not surprisingly, unadventu- 
rous. The Bolshoi brought the ballet 
to London to 1956, and it was memo- 
rably danced by Struchkova and 
Velta Viltsfa as Maria and Zarema 

- the roles are matched in much 
the same way as Nikiya and Gam- 
satti to La Bayadkre - and by a 
tremendous collection of men as 
Tartars, led by the magnificent 
Alexander LapaurL The Bolshoi's 
style then - dramatically weighty, 
in tense in m eaning as hi dynamics 

- exactly stated Zakharov’s dances, 
which smacked of the silent cinema 
but were effective for all that. 

The Kirov's account, looking 
cramped on the Champs Elys£es’ 

Clement Crisp 
reviews the Kirov 
Ballet's ‘Bakhchisa- 
ray and ‘ Coppelia 9 


stage, was unconvincing. The Pol- 
ish dances were daintily trodden on 
toe spot, and neither Julia Mkbab 
ina as Maria nor Viktor Baranov as 
her fianra Vaslav, were anything 
but visitors to their roles. The sub- 
sequent acts, which look like frizzy 
memories of Scheherazade for toe 
harem and Bayadkre for the con- 
frontation between Maria and Zar- 
ema, went for little. It was the Zar- 
ema of Sylvie Guillem, a guest with 
the Kirov, who provided toe glam- 
our and sheer physical drive that 
can makp the piece credible. Zar- 
ema was one of Plisetskaya's great 
roles, which suggests something of 
its poten tial. Mile Guillem indulged 
herself, and gave resonance to the 
part 

The music is tuneful «nd effic i ent, 
but thin. The staging looked no less 


thin (the original designs, with Bak- 

gfian Tryimpnte by Vers Khodasev- 
icb are still used) and toe burning 
of the manor at the end of toe first 
act, which made us gasp in 1956, is 
now as uninteresting as the Polish 
dances which precede it The way of 
preserving these old but significant 
pieces is something which Russian 
ballet will have to consider very 
seriously. This touring version is an 
unworthy lightweight 

About toe Coppelia, given fa a 
new staging by Oleg Vinogradov, 
toe ballet's director, I find it diffi- 
cult to comment In the right hands 
it is toe most joyous ballet It has 
been absent from the Mariinsky 
stage for 60 years, but the tradi- 
tional Petersburg version exists to 
notation and memory. It is cogent 
as drama, touching, and above all, 
happy- Vinogradov's version is con- 
fused, conscienceless - Delibes' per- 
fect score is Frankensteined, with 
bits chopped, re-positioned, and dis- 
figured with one egregious interpo- 
lation - and cursed with choreogra- 
phy where manic vivacity is no 
substitute for heart, grace, wit 
sense. 

Many dancers rush about the 
stage in tasteless and complex cos- 
tuming by Irina Press. Vinogradov 
- whose patron is St Vitus - 
repeats his usual choreographic 
tricks of ceaseless and crude activ- 
ity. The delightful Irina Shapcbits is 
lost as Swazdlda, and is required to 
behave like an apprentice terma- 
gant. Mnciwfl Zavialov is a feature- 
less Franz, and he has a quartet of 
friends who dance welL Coppelius is 
Woody Woodpecker impersonating 
Voltaire. Delibes is made to sound 
glossy, brisk and unfeeling by the 
orchestra under Alexander Vili- 
umanis And that is exactly the way 
in which Vinogradov misinterprets 
and destroys this beautiful ballet 


Recital/John Allison 

singled out 

gramme that underlined the rich- 
ness of Romantic Russian song. No 
less than seven composers were rep- 
resented, including rarities by Ser- 
gey Taneyev. Alexander Grechani- 
nov and Mikhail IppoKtov-Ivanov. 
Sedipova began, appropriately, with 
the “father of Russian music”, 
Glinka: initial nervousness soon dis- 
appeared, and toe soprano revealed 
a liveliness in “To her” and 
“Bolero”. She caught the languid 
atmosphere of Taneyev's “Through, 
toe ethereal haze" perfectly. 

Three familiar Tchaikovsky songs 
were given fresh treatment by Sedi- 
pova and her idiomatic accompa- 
nist Larissa Gergieva. The soprano 
scaled down her voice for the light 
“Serenade”, and opened it out again 
for the bursting emotion of 


for praise 

“Whether toe day reigns". 

In the encores Sedipova finally 
allowed her operatic voice to come 
out Santuzza, Cio-Cio-San and Gio- 
conda were brought to impassioned 
life in ftal-toroated I taHana te sing- 
tog. We must hear her at Covent 
Garden. 

■ The Marymsky-Exroo Series is 
supported by the Regent Hotel (Lon- 
don) and British Airways (St Peters- 
burg). 


London Philharmonic 

Tuesday’s review of the London 
Fbflhannafac Orchestra's concert at 
the Festival Hall was wrongly head- 
lined “Chung conducts the pfrilhar- 
monia”. 


t 

{ 




EXHIBITIONS 

5TERDAM 

i Gogh Museum Odilon Redon 
10-1916): 180 works exploring 
artist’s development sources 
Influences. Ends Jan 15. DaBy 
defijk Museum Asger Jom 
14-1973): retrospective of the 
iish artist Ends Nov 27. Daily 
Esmuseton Decorated. Paper: a 
arfcabie collection of marbled, 
itz and brocade paper 
mfectured in and knported into 
Low Countries from the early 
i century. Bids Feb 12. Closed 

JcELONA 

seu Picasso Picasso’s Early- 
rks: 220 drawings and paintings 
n the period 1890-1912- Bids . 
12. Closed Mon (Carrer 
Tteada 15-19) 

MumfDrQegenwartsfcuRst 
y rn (b1951): a series of new 

allations and videos by the 
grfean artist Ends Jan 29- 


leum Early Kandinsky: 
i [ftHo-loiown period In 


the German Expressionist's 
development Ends Nov 27. Closed 
Toes 

. Altes Museum Eldorado: 
pre-Columbian gold treasures from 
South America. Bids Jan 8. Closed 
Mon 

BRUSSELS 

Musde (fheHes Gainsborough to 
Buskin - British Landscape 
Drawings and Watercolours from 
the Morgan Library: Constable, 
Turner and many other 18th and 
19th century artists are represented 
In this exhibition of Important works 
from the Pierporrt Morgan Library in 
New York. Ends Jan 15. Closed 
Mon (rue Jean Van Voteem 71, tel 
511 9084) 

CHICAGO 

Art Institute Karl Friedrich Schkikei 
(1781-1841): 100 drawings and 
prints by the influential German 
architect on loan from public 
eoflectJons in Berlin. Ends Jan 2. 
Daily 

FRANKFURT 
JOdteche Museum The 
Rothschilds: an evocation in 
painting of the’ 250-year history of 
the famous Jewish dynasty. Ends 
Feb 27 

Schkn KunsttiaBe Nicholas do 
Steel (1914-55): retrospective of the 
Rtsaan-bom artist, documenting 
his intense but bagicaSy brief 
career. Bids Nov 27. Deify 
the Hague 

Mauritstuits Paufos Patter’s 
Animals: the first comprehensive 
exhibition of the work of Potter 
(1625-1654), the animal painter of 
the Gofcfen Age in Netherlandish 
art Ends Feb 5. Closed Mon 
HAMBURG 

KimstoaDe Rembrandt and his 
Century: Netherlandish drawings 


from the 17th century. Ends Jan 15. 
Closed Mon 

LONDON 

National Gallery The Young 
Michelangelo. Ends Jan 15. Daily 
Tate Gaflery James McNeill 
Whistler: the largest collection of 
the American-bom artist's work 
since the memorial exhibitions held 
after his death in 1903. Ends Jan 8. 
Rebecca Horn: retrospective 
focusing on her extraordinary 
machines and installations 
(coinciding with another Horn show 
at the Serpentine Gallery). Ends Jan 
8. Dally 

Hayward Gaiety The Romantic 
Spirit in German Art 1790-1990. 
Ends Jan 8. Daily 
Royal Academy of Arts The Glory 
of Venice. Ends Dec 14. Italian 
Renaissance Book Illumination. 

Ends Jan 22. Dally 
Royal Festival Hail Kfithe Kollewitz 
(1867-1945): a reflection of the 
German artist's powerful and 
emotive prints. Ends Dec 4. Daily 
MADRID 

Fundadon Juan March Treasures 
of Japanese Art 110 works from 
the 17th to 19th century, on loan 
from Tokyo's Fuji Art Museum. 

Ends Jan 22. Daily 
UZMllMPIU 

KunsthaDe Neue SacMchkert - 
Figurative Painting in the 1920s: a 
survey of the realistic artistic 
movement which developed in 
reaction to German Expressionism. 
Bids Jan 29 {with a companion 
show at the Wilhelm-Hack-Museum 
in Ludwigshafon). Closed Mon 
MANTUA 

Palazzo Te Leon Battista Alberti: 
the first exhibition ever to be 
devoted to the Renaissance genius. 
Ends Dec 11. Closed Mon 


MUNICH 
Kunsthatie der 

Hypo-Kutturstiftung Edvard Munch 
and Germany. Ends Nov 27. Daily 
Vifla Stuck Tom Wesselmann: 
retrospective of the American Pop 
artisL Ends Jan 15. Closed Mon 
Haus der Kunst Roy Lichtenstein 
retrospective. Ends Jan 9. Closed 
Mon 

Lenbachhaus Tanzania : 400 
masterworks of African sculpture. 
Ends Nov 27. Closed Mon 

NEW YORK 

Metropolitan Museum of Art 
Origins of Impressionism: 175 
paintings by Parisian artists ot the 
1860s. Ends Jan 8. The Annenberg 
Collection of Impressionist and 
Post-Impressionist Masterpieces. 
Ends Nov 27. William de Kooning's 
Paintings. Ends Jan 8, Painting and 
Illumination in Early Renaissance 
Florence 1300-1450: 100 panel 
paintings and manuscript 
illuminations by masters of the 
Gothic style, from the followers of 
Giotto to Lorenzo Monaco and Fra 
Angelico on the eve of the 
Renaissance. Ends Feb 26. The 
Photographs of Edouard Baldus 
(1813-1889). Ends Dec 31. Closed 
Mon 

Museum of Modem Art Cy 
Twombly (b1929): retrospective of 
the American artist who moved to 
Italy in 1957. Ends Jan 10. The 
Prints ol Louise Bourgeois. Ends 
Jan 3. Closed Wed 
Guggenheim Museum The Italian 
Metamorphosis 1943-1968: a 
survey of visual arts in the postwar 
period. Ends Jan 29. Japanese Art 
After 1945 (at SoHo). Ends Jan 8. 
The main museum is closed on 
Tburs, the SoHo site on Tues 
Brooklyn Museten Indian Miniature 


Paintings: 80 jeweHike paintings 
from the 15th to 19th century, all 
from the permanent collection. 

Ends Jan 8. Closed Mon and Tues 
Jewish Museum Jewish Life in 
Tsarist Russia* costumes, 
household Items, ceremonial 
objects, illustrated books and 
photographs on loan from the State 
Ethnographic Museum In St 
Petersburg. Among the more 
unusual objects are a Torah ark 
valance embroidered with the 
Tsarist crown. Ends March 5. 
Closed Sat 
PARIS 

Grand Palais Poussin; 400th 
anniversary retrospective. Ends Jan 
2. Gustave Calllebotte (1848-1894): 
retrospective of the painter and 
patron of art who belonged to the 
circle of Impressionists. Ends Jan 9. 
Closed Tues, late opening Wed 
Mus6e d’Orsay Forgotten 
Treasures from Cairo: a surprisingly 
rich collection of works by Ingres, 
Courbet Monet Rodin, Gauguin 
and others. Ends Jan 8. Closed 
Mon 

Louvre British Art in French Public 
Cofiectfons: paintings by 
Gainsborough, Reynolds, 

Constable. Lawrence and Turner. 
Ends Dec 19. Closed Tues (Hall 
Napoleon) 

Mus6e Camavalet The English in 
Paris In the 19th Century. Ends Dec 
11. Closed Mon (23 rue de S6vign6) 
Musde d’art modeme de la vfUe 
de Paris Andre Derain: 350 works 
spanning his entire career, including 
a group of fauve works, three 
versions of “The Bathers", the 
Genevieve series and several 
self-portraits. Ends March 19. 
Closed Mon 

Instttut du Monde Arabe Delacroix 


in Morocco: Delacroix’s visit In 
1832, whan he was 34, made a 
lasting impression on his art Ends 
Jan 15. Closed Mon (1 rue des 
Fosses Safnt-Bemard) 

Petit Palais From Baghdad to 
tsphahan: 70 Islamic manuscripts 
evoking the ancient cfvfHsatkan of 
central Asia, on loan from the 
Institute of Oriental Studies in St 
Petersburg. Ends Jan 8. Closed 
Mon 

ROTTERDAM 

Museum Boymans-van Beuningen 
From Van Eyck to Bruegel: 96 
Dutch and Flemish pointings dating 
from 1400-1550. Ends Jan 22. 
Aiexer Jawfensky ( 1864-1941 ): 
retrospective of the Russian-born 
artist who was a member of 
Kandinsky's circle in Munich. Ends 
Nov 27. Closed Mon 
STOCKHOLM 
Nationabnuseum Goya: 50 
paintings and 60 prints, most of 
them on loan from Spain. Ends Jan 
8. Erik Flaming: retrospective of the 
Swedish silversmith, who founded 
the Atelier Borg 11a in Stockholm in 
1920 and made an 800-piece royal 
silver service in 1932. Ends Jan 8. 
Closed Mon 
TURIN 

Galleria Civic a d*Arte Modems A 
Celebration of Art Nouveau: a 
re-evocation of an exhibition held in 
Turin in 1902. Ends Jan 22. Dosed 
Mon 
VENICE 

Palazzo Correr Masterworks from 
the Petit Palais in Geneva: 70 
Impressionist and 
Post-Impressionist paintings from 
the coflection of the industrialist 
Oscar Ghez de Montenuovo. 
including works by Degas, Gauguin 
and Derain. Ends Dec 11. Daily 


VIENNA 

Kunstforum Herbert BoeckL 
centenary retrospective of the 
Austrian Expressionist Ends Dec 4, 
Daily 

KunsthaBe Oskar Schlemmer. a 
comprehensive survey of the work 
of the Bauhaus artist, including 
sketches, watercolours, set designs 
and original theoretical writings on 
the theatre. Ends Jan 29. Closed 
Tues 

KOnstlerhaus Egyptomarna: 300 
exhibits showing the influence of 
Egyptian art on European painters, 
sculptors, authors and architects 
from the baroque period to the 
present Ends Jan 29. Daily 
WASHINGTON 
National Gaflery of Art Roy 
Lichtenstein's Prints: 90 works by 
the American Pop artist Ends Jan 
8. Milton Avery (1893-1965): 67 
works on paper. Ends Jan 22. Daily 
Freer Gallery of Art Chinese 
Calligraphy: the exhibition focuses 
on varied uses of calllgraphy.on 36 
decorative and utilitarian objects 
from the 7th to 19th century. Ends 
next May. Daily 

Tactile Museum Native American 
Art from Oklahoma: works created 
since 1800 by toe Apache, 
Cheyenne and after trfoes who 
were forced to move to the 
Oklahoma Territory, where their art 
expresses tribal identity and inefian 
unity. Ends June 4. DaBy 
ZURICH 

Graptasche Sammhmg der ETH 
Picasso's Women: a collection of 
prints. Ends Dec 23. Closed Sat 
and Sun 




FINANCIAL TIMES FRIDAY 1^4 


T his week’s batch of 
labour market statis- 
tics suggests the Brit- 
ish economy may 
finally be achieving what most 
postwar governments have 
yearned for - sustained growth 
with falling unemployment, 
low inflation and above all rel- 
atively modest pay rises. 

Mr Michael Portillo, the 
employment secretary, was 
quick to point out the benefits 
Of moderation in pay: “Pro- 
vided companies keep a firm 
grip on wage costs at all levels, 
economic growth will continue 
to feed through into lobs as 
well as rising prosperity.” 

However, while pay settle- 
ments are stable and there are 
few signs of industrial unrest 
pressures for higher pay may 
be building up in the labour 
market over the coming year. 

So far, there has been no 
steep upsurge in the level of 
wage settlements as the econ- 
omy has revived Annual earn- 
ings growth stood at 3.9 per 
cent in September. The under- 
lying annual growth In manu- 
facturing pay is now running 
at L5 per cent, nearly twice the 
inflation rate. However, this is 
only a quarter of a percentage 
point higher than at the same 
time last year, even though the 
recovery is now much further 
advanced. 

Manufacturing productivity 
is rising at an annual rate of 6 
per cent, impressive by recent 
British standards. This has 
mpanfc falling uni t labour costs 
in manufacturing, where 
wages and salaries per unit of 
output were 1.4 per cent less 
over the three months ending 
in September compared with 
the same period last year. 

This is the greatest improve- 
ment since the current Depart- 
ment of Employment unit 
labour cost records began in 
1970. It appears to mark a 
break from the past, when 
gains in productivity were out- 
paced by pay Increases. 

In spite of the modest pay 
settlements, there are no signs 
of widespread industrial 
unrest. In September, just 
17,000 days were lost in just 13 
strikes involving 8,000 workers, 
the lowest since the govern- 
ment started collecting figures. 
The sporadic disruption by rail 
signalling staff this summer 
does not appear to have 
sparked a wider strike-wave. 

The Engineering Employers’ 
Federation is confident that 
there will be no pay escalation 
in manufacturing in the imme- 
diate future. Independent fore- 
casters such as Incomes Data 
Services expect settlements to 
remain stable, though, slightly 
above the inflation, rate. 

Even in the public sector, 


Pinch 
on 
pay 

Robert Taylor 

says the 
stability in UK 
wage levels 
may not last 

UK’s faIBng labour costs 



1090 91 82 B3 Q1Q2 03 

1994 

Sour£«: DspBAiMM of Employment' 

where the government has 
imposed a three-year freeze on 

the pay bill, there is apparent 
calm. Threats of resistance 
fixim the public service sector 
unions appear to have ebbed. 

What there has been Is a loss 
of more than 420.000 public sec- 
tor jobs in the first 18 months 
of the freeze, which have 
helped to fund pay increases. 
Public sector pay has therefore 
risen In line with wages in the 
private sector without any 
increase in the total pay bflL 
Yet despite this apparent sta- 
bility and self-restraint on pay, 
there remain worries about 
future trends. 

Mr Howard Davies, director- 
general of the Confederation of 
British Industry, continues to 
warn employers about the need 
to rein back what he sees as 
“upward, creep" in pay settle- 
ments. He points out that Ger- 
man and US uni t labour costs 
have fallen even more than the 
UK’s in recent months, while 
British productivity remains 
well below the country's main 
competitors. 

There are also concerns - 
expressed at this month’s CBI 
conference by its president. Sir 
Bryan Nicholson - that high 


pay rises for top executives 
unrelated to company perfor- 
mance may stoke up pay 
demand* from the rest of the 
workforce, as the gap widens 
between the top and lower 
ends of the earnings ladder. 

Some pay negotiations this 
autumn have aroused fears of 
an upward trend in settle- 
ments. In September, Rover 
group car workers only nar- 
rowly accepted a two-year 
wage deal worth 16.7 per cent. 
Talks are continuing at Jag- 
uar, where workers have 
rejected a 7.5 per cent pay 
package recommended by their 
union negotiators. 

In both cases, shopfloor 
workers said they were less 
concerned with the pay offer 
than the changes being 
demanded of them in longer 
hours of work. "There are 
that workers elsewhere 
are less willing to accept work- 
place restructuring unless it is 
rewarded by higher pay,” says 
Mr Alistair Hatchett, editor of 
Incomes Data Report. 

Changes in the workplace 
have also made it harder to 
read pay trends. The demise of 
national or industry-wide pay 
bargaining in recent years and 
the government's active 
encouragement of decentralisa- 
tion and performance-related 
pay in the public sector mean 
that wage bargaining is 
increasingly carried out at 
local level. 

This makes it more difficult 
to generalise about what is 
happening to pay levels across 
the country. Bat it may also be 
storing up discontent for the 
future if some groups are doing 
better than others because of 
local conditions. “In the past 
people felt their pay was 
related to a concept of what 
was fair. National agreements 
reflected that feeling, ” says Mr 
Chris Trinder, research direc- 
tor of the Public Finance Foun- 
dation. “Now on pay they are 
finding themselves very much 
out on their own.” 

Mr Hatchett says there is 
“immense frustration” among 
employees over pay at the 
moment. This view is 
reinforced by the latest British 
Social Attitudes Survey, pub- 
lished this week, which reveals 
an anxious workforce increas- 
ingly concerned about widen- 
ing pay differentials, matched 
by fears about job security. 

It may be premature to con- 
clude the UK economy is free 
at last from pay-push inflation 
and the concept of the going- 
rate. Wage expectations are 
less ambitious than they used 
to be, perhaps because for the 
time being most workers seem 
more concerned with their job 
security than big pay rises. 


A year ago the Seattle 
summit, this week the 
Jakarta s ummi t, and 
now a big bang: all 
trade and investment is to be 
liberalised in a region account- 
ing for half the world's eco- 
nomic activity. 

it is little wonder the IS lead- 
ers at the Asia-Pacific Eco- 
nomic Co-operation forum felt 
exhilarated. 

The final statement required 
a consensus across enormous 
political and economic diver- 
sity. between countries with 
some seriously strained rela- 
tions. Ranging from the US 
and Japan, two of the world’s 
richest economies, to C hina , 
Indonesia and Papua New 
Guinea, with among the lowest 
per capita incomes, Apec’s 
members have reached 
agreement at remarkable 

Speed. 

Their differences, and the 
extended timetable envisaged 
for liberalisation, raise ques- 
tions about whether the plan 
can ever be folly realised. It 
calls for Apec’s industrialised 
members to remove their trade 
and Investment barriers by 
2010, and for developing econo- 
mies to do so by 2020. By then, 
most of the leaders who met 
in Jakarta will be long out 
of office, forgotten or 
dead. 

However, the importance of 
this week's decision lies less In 
the long-range targets that it 
set than in the co mmitme nt of 
A pec leaders to a continuing 
process of high-level negotia- 
tion. By calling for a detailed 
blueprint for regional liberalis- 
ation before their next summit, 
in Osaka a year from now, they 
have obliged themselves to pro- 
duce at least some tangible 
short-term results or risk loss 
of political face. 

That they have got this far is 
due to the convergence of a 
complex set of domestic and 
external pressures. Last year's 
Seattle s ummi t was prompted 
by a common desire to kick- 
start the Uruguay Round nego- 
tiations, which were then stal- 
led. Many Apec members 
believe that, by presenting a 
united front in Seattle and 
hinting that the grouping 
could become an alternative to 
the General Agreement on Tar 
iffs and Trade if the round 
failed, they prodded the EU 
into making the concessions 
needed to conclude the world 
trade talks. 

Beyond that, the 18 govern- 
ments' motives differ. The US 
views Apec primarily as a tool 
for prising open fast-growing 
Aslan markets and for pressing 
Europe into further trade con- 
cessions. Australia broadly 
shares these objectives and 







Cyprus, crossroads of the 
East Mediterranean, with 
Gerald Cadogan 

24th April - A tit IVXav 1995 


Complex pressures led 18 Asian-Pacific countries to 
form the Apec trading bloc, says Guy de Jonqiiieres 

Different aims, 
common cause 


Apec: the new trade giant 

East Asian trade by partner 
% of told exports 
100 



.. agree to x^dinxKateJbyit^eidng. 
their ownmarketo further. • 

In Washington's case, this 

• view is heavily, coloured jby' 
domestic politics. -.The time- 
table agreed tins week wonkl 
oblige the US to remove barri- 
ersto imports frmnT3hiha. and 
other develc^ng countries TO 
years before they opened their 
markets fully ’to US Sports: 
The belief is. that Congress 
would approve such a- deal 
only if Apec also promised ia 
help the -US extact 'biaser 
trade concessions -from other 

• trading jwtnera, notably in 
Europe. - 

owever, such an 
approach could 
accentuate' con- 

__ corns that the US 

wifi use Apec. to narrow ftff- 
ther national interests! Though 
fears of US domination ^are 
voiced 'openly only by ' Dr 
Mahathir, they are shared pri- 
vately by countries ' shcL as 
Japan mid China Both have 



'PEttfficregtpn ’ .... 16ff ■ 3M ‘ »S 

wtetcni a^ope. >•• ■. .. fear • /* arar .".aas 


also sees the grouping as a way 
to prevent economic isolation 
by establishing itself as part of 
the Asian region. 

But for Japan and many 
other Asian countries, the 
main purpose of Apec is to 
guarantee their access to the 
US market. They hope the 
grouping will keep US trade 
policy engaged internationally. 

The US views the 
group m ainly as a 
tool for prising 
open fast-growing 
Asian markets 


at a time when Washington's 
commitment to multilateralism 
appears increasingly ambiva- 
lent. China, meanwhile, 
believes that Apec membership 
will help buttress its bid to 
join the new World Trade 
Organisation, which is doe 
to succeed the Gatt in 
January. 

Satisfying these disparate 
aims may not be easy in a 
grouping that prides itself on 
operating by consensus and is 


keen to avoid institutionalised 
decision-making. That consen- 
sus has already been strained 
by the evident reluctance with 
which Dr Mahathir Mohamad, 
Malaysia's prime minister and 
long a sceptic about Apec’s 
ambitions, went along with 
this week's summit declara- 
tion. 

How deep the 18 countries’ 
differences run may become 
clear soon, when they start try- 
ing to hammer oat a trade lib- 
eralisation programme. They 
face a daunting set of chal- 
lenges. There is no agreement 
yet even on how Ear the plan 
should cover services as well 
as goods. Nor is there any deci- 
sion on how to tackle agricul- 
ture. a sector that is highly 
protected and politically sensi- 
tive in much of Asia. Equally 
uncertain is whether the US 
will consent to curbs on its 
increasingly frequent use of 
anti-dumping measures against 
low-priced imports, most of 
them from Asia. 

The crunch question, 
though, is how far the benefits 
of freer trade within Apec 
should be extended to the rest 
of the world. This week's sum- 


mit firmly rejected any move 
towards an inward-looking 
trading bloc. It declared that 
the removal of barriers in the 
region should be ftufly consist-, 
ent with Gatt principles and 
designed to strengthen the 
multilateral trade system. The 
implication, .to which most 
Apec members subscribe. Is 
that the goal should be to 

Many Aslan 
members want to 
keep Apec as open 
as possible to the 
rest of the world 

achieve enough, progress 
to trigger another , Gatt 
world trade negotiating 
round. 

Views diverge widely, how- 
ever. on how this objective 
shnmid be achieved - and, by 
extension, on what sort of crea- 
ture Apec should aim to 
become. The US. and to some 
extent Australia, believe Apec 
should offer the benefits of its 
planned liberalisation to ram- 
members only if they first 


ingly aggressive: ; US trade' 
diplomacy, . backed by . the 
threat of unilateral trade sane- - 
turns. ■■■• 

- As a Testilt^ many Asian 
members are. anxious to -keep: 
Apec as Open akpossflrie to . the 
rest of the world and to ensure 
that it does not undrarmine the 
pre-eminence of the Gatt and 
the WTO: Indeed, Thailand, 
argues that the grouping's pri- 
ority should be simply to.bufid 
support for another Gatt 
' round, . after which it should 
take a back-seal role. 

. For' 9fi these reasons,, -there 
seems little immediate likeli- 
hood that Apec will develop 
. into a bloc that is bent on put- 
ting its members' interests 
above throe of the world econ- 
omy as.a whole. The prognosis 
could change quickly, ifiongb. 
if tee US Congress foiled to 
raiffy the Uruguay Round in a 
. fortni g ht* « tirhn in that event; 
the risk of indefinite further 
delays and uncertainties abqut ' 
the future of the Gatt could 
induce some Apec countries to 
look again at the grouping as 
an alternative to the mnlHiBf. 
eral trade system. 

But even if that does not 
happen, Apec’s leaders wifi 
remain under pressure to keep 
up the momentum generated 
by this week’s summit. Though 
success is far from guaranteed, 
so much political prestige has 
been invested in the enterprise 
' that the fodLout from outright 
failure would spread right 
through the Pacific rim region, 
and quite probably beyond. If 
only for reasons of self-esteem, 
that is a risk none of the lead- 
ers can contemplate with equa- 
nimity. 


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To: Nigel Pullman, Financial Times, Southwark Bridge, 
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Please send me roll details of the FT Invitation to Cyprus 

TITLE.. INITIAL SURNAME 

ADDRESS 

POST TOWN .... 

COUNTY 


POSTCODE 


TEL NO. 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

Fax 071 873 5938. Letters transmitted should be clearly typed and not band written. Please set fox for finest resolution 


No power to 
block the 
poll tax 

From Lord Lawson. 

Sir, In his interesting review 
of Failure in British Govern- 
ment The Politics of the Poll 
Tax (November 17), my former 
cabinet colleague, Kenneth 
Baker, writes: “The Treasury 
was not helpful: Nigel Lawson, 
then chancellor, opposed the 
poll tax but was not prepared 
to block it” 

As I recount in my memoirs, 
I did everything I could to stop 
the poll tax. However, the 
novel constitutional doctrine 
that chancellors have it in 
their power to “block" a pro- 
posal which has the enthusias- 
tic backing of the prime minis- 
ter. supported by an 
overwhelming majority of his 
or her cabinet colleagues, 
is (perhaps regrettably) un- 
founded. 

Lawson. 

House of Lords, 

Westminster, London SW1 


Losing faith 
in reading 

From Or Dolores Rafter. 

Sir, Your paper should carry 
the following warning: "This 
paper can seriously damage 
your faith." Hardly a month 
goes by without some so-called 
agnostic “scientist” or “philos- 
opher” insulting those of the 
Christian faith. I doubt if any 
other religion would tolerate 
such scorn as levied by the 
"philosopher" on the back page 
interview of last weekend’s 
paper (Private View, November 
12/13). 

Dolores Rafter, 

Hartstoum Medical Centre, 

2 Hazelwood Avenue, 

CUmsilla. Dublin 25, 

Ireland 


View on Apec is a 
classic example 
of ‘Euro centrism’ 


From Mr Edward GiBy. 

Sir, I suspect that your 
leader. “Apec and Europe" 
(November 16), will have 
engendered a considerable 
amount of mir th among busi- 
nesses and governments in 
Asia and the Pacific. After 
claiming rather pa tronis ingly 
that “any kind of discrimina- 
tory arrangement within so 
large a part of the world's 
economy would be undesir- 
able", you suggest that “Apec 
should be a catalyst for global 
negotiations and neither a sub- 
stitute for such negotiations, 
nor an independent forum". 
Good heavens, no. 

Alter all, you then add “the 


only outside entity capable of 
insisting upon this is the EU", 
and we all know how deeply 
the EU is committed to free 
trade: ask the Cairns group. 

Yoor leader is a classic 
example of what we poor coun- 
tries in Asia and the Pacific 
sometimes call “Eurocen- 
trism”. Dr Mahathir, prime 
minister of Malaysia, is trying 
to make a point, you know; 
perhaps one day you will 
understand it. 

Edward Gilly, 

Suite 15 
Edgecdff Mews, 

201 New South Head Road, 
EdgecUff, NSW 2037, 

Australia 


A delightful view of Lear 


From Mr Ernnon Tokumant. 

Sir, Your review of The Tale 
of Lear by the Suzuki Company 
of Toga (Arts: “Suzuki's aus- 
tere Tale of Lear' ", November 
II) reminded me of the analogy 
of the father meeting iris 
daughter's fiance for the first 
time: regardless of how perfect 
this fiance is, the father auto- 
matically dismisses him with- 
out reason. 

Suzuki's version of King Lear 
was thoroughly accepted and 
applauded by the UK audience, 
the home country of Shake- 
speare. but was summarily 
rejected by critics without any 
logical argument 
Suzuki has interpreted the 
original text as the madness of 
aged men and projected it on 
to the Japanese spiritual world 
using well-trained Suzuki- 
method actors. As a Japanese, 
I appreciated this production, 
because it did not cheaply sell 


exoticism to the western audi- 
ence. In fact, I Celt nostalgic, a 
kind of comfort, as though the 
story was derived from our tra- 
ditional tales, or as if it were 
Japanese Samurai dr ama pro- 
duced for a Japanese audie nce . 
Therefore, it is natural that 
some British people could have 
felt alienated or deprived by 
this performance. 

But please do not deny the 
possibility that Shakespeare 
can be interpreted and per- 
formed in a “different" cultural 
context “different” that is to 
you. For me, Suzuki's success 

was a delight. The production 
was evidence that we could 
establish a common world cul- 
ture, a culture that can be 
shared by any ethnic group 
and a culture which is no lon- 
ger Eurocentric. 

Kumon Tokumaru, 

61 Woodside, 

Wimbledon, London SW 19 


Not a convincing argument on nuclear power 


From Mr John Otranto. 

Sir, David Lascelles’s article 
“Particle of hope” (November 
11 ) speculates unconvincingly 
on the privatisation of 
Britain's nuclear industry; it 
simply lacks the backing of 
logic and current trends to sup- 
port it. 

For nearly five years the 
order to privatise electricity 
production has been viewed as 


the coup de grtox for British 
nuclear ambitions. But in fact 
nuclear power from its origin 
has never really been economi- 
cally competitive, democrati- 
cally supported or environmen- 
tally acceptable. Its toxic waste 
problems, after half a century, 
remain unmanageable; its mar- 
ket share is being overtaken by 
sustainable energy technolo- 
gies, while its deeply damaging 


effects are beginning to unfold. 

Hope for the people of 
Britain lies not in the conjec- 
ture that anachronistic nuclear 
power will survive but in 
developing affordable, benign 
renewable energy. 

John Otranto, 

executive director. 

Global Care, 

Seeriederstr. 25 
S1675 Munich, Germany 


Statistics 
burden is 
no greater 

From A H Cowley. 

Sir, Ms Carole Macpherson 
(Letters, November 15) claims 
that the Intrastat system for 
the collection of European 
Union trade statistics is a 
greater burden on business 
than the old system which 
operated prior to completion of 
the single market We do not 
believe this is the case. 

Under the old system cus- 
toms declarations had to be 
made in respect of each con- 
signment. Most businesses 
employed agents to submit 
these declarations. The agents, 
of course, charged for provid- 
ing this service. 

An i n dicati o n of the scale of 
the activity is that 7m import 
and export declarations a year 
were abolished with the advent 
of the single market. 

Under the new system only . 
larger businesses, some 30,000 
out of the 150,000 companies 
engaged in EU trade, ha.ve.to. . 
complete the Intrastat declara- 
tions, which are considerably 
less detailed than the previous 
import declaration and only 
have to be submitted once a 
month. 

However, most businesses 
involved in the new system 
have chosen to complete the 
Intrastat forms th emselves 
Ms Macpherson is correct in 
pointing out that there were 
start-up costs to be borne by 
bringing this work in-house. 
However, the analysis of costs 
that we conducted, m cans nlta - 
tion with business before intro- 
duction of the new single majr* 
and subsequently 
revalidated, showed these ini- 
tial costs rapidly being con- 
verted into a continuing 
annual saving. 

PntoUy, we have followed a 
policy of a “light touch" on 
enforcement while the new 
system has bedded in, but we 
believe the contribution of 
those who have made an effor t 
to comply with the new system 
would be devalued If we were 
not to pursue the non^ompK- 
anto, now less than 1 per cent 
of the total. 

A H Cowley, 
controller, 

tagr™* statistical office, 

HM Customs & Excise, 

Boom 617, Portcullis House, 

27 Victoria Avenue, 


BssexSS 26 AL 



15 








[TOR 



Statistics 
burden is 
no greater 



FINANCIAL TIMES 



financial times 


7>MV7| r S?\^! !hwart Brid & LoadoD SEI 9HL 
■ 071-873 3000 Telex: 922186 Fax: 071-407 5700 

Friday November 18 1994 


Britain, France 
and Europe 


“purity issues are 
expected to dominate today’s 

SSSS ^ 141 -* 11 summit in 

dartres. During the Later decades 
cold war those Issues 
divided the two countries, as 
France was outside Nato while 
™tain was its most uncondition- 
ally loyal member. But as the cold 
war fades, they find that this is 
the area where they have most in 
common. They are the two coun- 
tries in western Europe for which 
military power has retained some 
of its old glamour, and some of its 
old relevance as a means of 
defending national interests far 
beyond the national territory. 

This gives them a stronger 
attachment to the tradition of 
n a ti o nal sovereignty than is felt 
by some of their European part- 
ners, and therefore mato»s them - 
or at any rate makes the conserva- 
tives now in power in both coun- 
tries - more suspicious of supra- 
national European blueprints. It 
also makes them more sensitive to 
the implications of the US's dimin- 
ishing commitment to European 
security and transatlantic 
co-operation, symbolised most 
recently and graphically by its 
unilateral decision to stop enforc- 
ing the Bosnian arms embargo. 

The French reaction has an ele- 
ment of “1 told you so”, since 
France has been warning since 
the days of Charles de Gaulle that 
a European Europe” should 
aspire to be independent of US 
tutelage. On the British side there 
is more sorrow than anger, but 
the practical conclusions are 
beginning to converge. Present in 
the Tnfriria of both sides, if usually 
unspoken, is the thought that for 
military purposes it is vital to can- 
alise German political resurgence 
into a strong multilateral vessel. 
The less credible Nato looks, the 
stronger the argument for making 
that vessel a European one. 

These thoughts point to two 
types of co-operation. One is a 
closer bfihteral liaison between 


the two countries* armed forces, at 
this stage especially their air- 
forces. and, where economically 
efficient, between their defence 
industries. The other is a Joint ini- 
tiative for the 1996 intergovern- 
mental conference, aimed at 
strengthening the EU’s “defence 
component”, the Western Euro- 
pean Union. 

Both types of co-operation have 
their logic, but they need to be 
carefully related to each other. 
The proliferation of ad hoc bilat- 
eral or even multilateral military 
arrangements involving different 
combinations of EU members 
could easily become an obstacle to 
a coherent common defence for 
the Union as a whole. It would 
make better sense if the Franco- 
German Eurocorps as well as the 
proposed Franco-British air plan- 
ning unit were brought within the 
WEU structure. 

It must also be questioned how 
credible the WEU will be so long 
as it depends on American logisti- 
cal and air support and intelli- 
gence assets. To make Europe 
independent in these respects 
would be expensive, but military 
credibility is «*Mnm cheap. 

Also essential is a competitive 
internal market for defence con- 
tracts. For the French, the imme- 
diate test of the UK’s commitment 
will be its willingness to join in 
building the Future Large Air- 
craft This should be considered 
sympathetically, but chosen only 
if the cost is not prohibitive. 

In the longer term, Britain's 
ability to fe»l» the lead in a com- 
mon defence w m also be related to 
its willingness to join in other 
aspects of European integration. 
Among these, Sir Leon Brittan 
argued last night, the creation of a 
single currency at the end of the 
century remains all but «>rtain_ If 
he is right France apd Germany 
may be unwilling to entrust a 
leading role in their dafaflce to a 
country perceived to be on the 
fringes of their economic union. 


Hollywood woes 


With the predictability of a J 
Hollywood plot, the Japanese 
Invasion Of US fflnMnalring five 
years ago is now generating pages 
of red ink. Yesterday, Sony Corpo- 
ration announced that writedowns 
of Y265.2bn ($2.7bn) at its Colum- 
bia Pictures subsidiary, acquired 
five years ago far $3.4bn, would 
pull the whole group into loss for 

tbl R financial year. 

The announcement raises sev- 
eral questions of strategy, perti- 
nent also to Matsushita’s $6Jbn 
takeover of MCA, owner of Univer- 
sal Pictures. Erst, how does the 
principle of integrating technology 
and programming look now? The 
trigger for Sony’s move into pro- 
gramming was the battle over 
standards far videocassette record- 
ers. Sony’s Betamax format, argu- 
ably technically superior, lost to 
VHS for lack of available program- 
ming . Sony learnt, painfully, that 
customers watch programmes not 
.technology, and concluded that it 
must buy a studio to safeguard 
new products. 

The c p nci ngjon was wrong, how- 
ever. Although Sony argues that 
sales of its new portable 

audio products have been ai d ed by 
its ownership of- CBS records, 
ensuring that recordings are avail- 
able to play on them, there are 
few other examples to support its 
case. The flaw in the reasoning is 
that no company has a large 
enoug h share of the music or 


video markets to launch a new 
consumer product; Sony Pictures, 
which includes Columbia, has 
only 10 per cent of the US box 
office. 

If vertical Integration is worth- 
less, can Japanese management 
add value to a Hollywood studio? 
The quick answer, judging by the 
bottom line, is no. Moreover, there 
are . good reasons for longer-term 
scepticism, given the culture 
clashes between technology and 
programming companies, and 
between Japanese hierarchies and 
Hollywood egos. 

. Assessed, then, simply as an 
inves tm ent in programming, how 
does the deal look now? Too 
expensive, clearly. But there is 

wmp rangn7flrtnn in that Colum- 
bia's value may uow rise, as the 
explosion of channels and services 
in the US and Europe is increasing 
demand for progra m ming. 

Should Sony and Matsushita 
take advantage of the media revo- 
lution by an alternative strategy: 
buying channels to distribute the 
programmes? Both have invested 
recently in cable and satellite. The 
value of those link-ups can be 
questioned, hut they are more 
pr omising than a marriage of tech- 
nology and programming. 

No such strategy wifi be suc- 
cessful, however, if the pro- 
grammes are not popular enough. 
Of all the messages in Sony’s 
statement, that is the loudest 


Ukrainian virtue 


Ukrainian parliament made 
rorfd a safer place this week, 
tdorsing the nuclear Noh-Pro- 
tkm Treaty. Kiev’s decision 
icnnce nuclear weapons cate- 
ally is. farther- proof that 
ine sees economic reform - 
r than nuclear stockpiles - 
j best guarantee of endnrtng 
>endance. When President 
id Kuchma visits Washington 
week it will be America’s 
to return the favour by grv- 
jkraine appropriate fina n c i al 


tough parliament voted for 
taty by an overwhelming 
a, it was not an easy ded- 
Mr Kuchma Mmself has 
mne a remarkable metamor- 
s the former director of the 
t Union's largest unclear 
e factory gave the keynote 
s which seemed the partia- 
ry endorsement. 

Kuchma’s ebange of heart is 
|y connected to his decision 
• this , year- to iTopfrineiU a 
il reform programme. 
ie's leaders have belatedly 
& that nationalist rhetoric 
weak a glue to bold together 
fie new state, • 
the st reng th of its reform 
Ukraine last month con- 
l its first ded with the Inter- 
nal Monetary Fund. Mr 
na has begun to prove he is 
nest by administering stone 
i most unpopular measures 


demanded hy that deal: price 
Increases, exchange rate unifica- 
tion and land privatisation. 

Renouncing nuclear weapons 
was the logical next step. As Mr 
Kuchma told pariiamentarians, it 
is another sign that Ukraine is 
choosing to forgo what he 
described as the ”01115100” of secu- 
rity offered by nuclear weapons in 
favour. of the more lasting stabil- 
ity which only economic prosper- 
ity can bring. 

Of course, ratification of the 
treaty also means that Mr 
Kuchma, will be bringing the 
White House the best news it has 
had all month. President Bill Clin- 
. ton, who orchestrated the agree- 
ment earlier this year in which 
Kiev first promised to give up 
nuclear weapons, can now claim 
credit fbr disarming Ukraine. 
Ukraine’s accession also improves 
chances of an indefinite extension 
of the treaty next year. 

Yet Mr Clinton should not for- 
get about Kiev, now that the wor- 
rying- prospect of a nuclear 
Ukraine has disappeared. By 
endorsing the treaty, Ukraine has 
given up its most powerful bar 
gafnfng Chip. Mr Wwrhmn jg gam- 
bling his country’s survival on 
successful economic reforms. The 
west should do everything in its 
power to improve his odds. Right 
now that means offering 
Ukraine substantial financial 
aid. 



★ 


THE FT INTERVIEW: Silvio Berlusconi 

Dark days for a 
white knight 

Italy's embattled prime minister takes time out to 
explain his mission to save Italy from the left 



Silvio Berlusconi: Tm the protagonist of a revolution. I have to operate vary differently from my predecessors' 


Silvio Berlusconi 
honours the engage- 
ment. Obliged to 
impose two confi- 
dence votes on his 
unruly coalition 
allies this week and 
facing a second general strike, the 
media magnate turned prime minis- 
ter might have made his excuses. 

In stead, with a gaggle of demon- 
strators outside the Pala22o Chief, 
and a difficult cabinet session 
inside, Mr Berlusconi takes time out 
to explain his role since taking 
office six months ago. 

Tm the protagonist of a revolu- 
tion. 1 have to operate in a com- 
pletely different way to my prede- 
cessors,” he says. He sees himself 
not just as an outsider, hut as a 
man bringing radical necessary 
change to Italy. 

His election victory in March, just 
three months after entering politics, 
was due largely to the vacuum cre- 
ated by the collapse of Italy’s post- 
war political structure. And he is 
determined to distance himself from 
all that wail before. 

“The only good things 1 inher- 
ited,” he says, surveying the 
antique chairs, paintings and tapes- 
tries in his office, “are the furni- 
ture, the building and these objects 

Of Italian culture.” 

But being prime minister is a lot 
tougher and more complex than 
r unning his F in in vest business 
empire, he concedes. “As a busi- 
nessman, I was 100 per cent respon- 
sible for all the decisions running 
Italy's second largest private con- 
glomerate. Here my role is the exact 
opposite, because this is a coalition 
government. It has to operate 
through compromise and media- 
tion." 

Hi« main challenge lies in balanc- 
ing the interests in his rigfatwing 
coalition, while implementing the 
painful measures needed to correct 
Italy's serious fiscal imbalance. 

The 1995 budget before parlia- 
ment involves big cuts in public 
spending and a shake-up of the 
costly state-run pensions system. 
Mr Be rlus coni tried - and failed - 
to get the unions’ support for this. 
In the end, he says, he had to take a 
tough line and court unpopularity. 

“I did not want this head-on con- 
frontation,” he says. But he has lit- 
tle room for manoeuvre. "Our pro- 
posals on pension reform are the 
minimum are could do to convey a 
strong signal to the finanHai mar- 
kets that we are serious about 
reducing the ratio of debt to gross 
domestic product.” On the latest 
projections, Italy’s huge debt should 
peak at the equivalent of 126 per 
cent of GOP in 1996. 

And he refuses to budge on his 
election promise of tax cuts. Italy 
needs to make more people pay 
their proper share of taxes, he says, 
rather than tax those already pay- 


simptify the tax and legal structure. 
“We want to escape from the jungle 
of incomprehensible legislation that 
surrounds us.” 

He also wants to slim down gov- 
ernment and review every depart- 
ment to see what can be best han- 
dled by private enterprise. The 
question Is whether he will be 
around long to see through 

such changes. T don’t know,” he 
says disarmingly. 

He hopes the main coalition part- 
ners - bis Fores Italia movement, 
the populist Northern League of Mr 
Umberto Bossi and the neo-fascist 
MSI/National Alliance - wQl stay 
together over the next crucial 
weeks. But once the budget is 
a pproved, which must be by the end 
of the year, all the c oalition part- 
ners will have to show where then- 
real loyalties lie and account for the 
discipline of their members of par- 
liament. He hints that, if the coali- 
tion lacks sufficient purpose to 
allow him to pursue his agenda, he 
would seek a fresh mandate. 


Mr Berlusconi is convinced most 
voters are moderate. But he also 
believes that the 35 per cent of the 
electorate on the left is a real threat 
to Italy's future. He complains that 
people outside Italy do not under- 
stand this. “Abroad, they talk about 
the MSI/National Alliance as some- 
thing negative; but the real danger 
is the contrary." 

He explains his willingness to 
forego his business career in favour 
of politics exclusively in this con- 
text “You’ve got to understand the 
left had already placed its support- 
ers in key positions in universities, 
publishing houses, radio networks, 
TV stations and the courts. And 
they had the organisation to bring 
people onto the streets ... Every- 
thing was ready for a leftwing 
minority to take power.” 

Tm convinced if the left had won 
the elections, Italy had a future 
without either freedom or prosper- 
ity.” For him , the fall of the Berlin 
Wall made no difference to the 
power or designs of the left in Italy. 


While Berlusconi sees hims elf as 
a white knight rescuing Italy from 
the left’s embrace, others are less 
charitable about his entry into poli- 
tics. Questions are still asked about 
the conflict between his interests as 
a businessman and his role as a 
political leader. Apart from a sub- 
stantial presence in publishing, 
financial services and retailing, his 
Fminvest empire owns three com- 
mercial television channels 
accounting for nearly half the 
nation’s TV audience. 

He spells out that frinro taring 
politics, he has resigned from all 
directorships and executive respon- 
sibilities. He has also appointed a 
three-man nommiasinn to draft leg- 
islation to prevent a conflict of 
interest - and accepted its finding s 
“without changing a comma”. 

In addition there are numerous 
checks and balances in Italy's par- 
liamentary democracy to monitor 
ins behaviour, he says, not least erf 
which is public opinion. Finally he 
turns tjip argument on its head: 


“The real point of the conflict of 
interest debate is that my compa- 
nies have suffered from me becom- 
ing a politician rather than the 
other way around. As a result of 
entering politics, I have suffered 
both from a personal and an entre- 
preneurial point of view.” 

The Eninvest group, he says, has 
not been able to take advertising 
from state bodies. With some bitter- 
ness he comments on the way his 
“enemies" have planted 30 bombs at 
his Standa stores since he took 
office. Standa sales this year are 
down 10 per cent as a result of a 
boycott organised by his opponents. 

He says he is willing to sell all Ms 
assets. But having built up the 
group from scratch over the past 20 
years, he does not seem yet to have 
resolved a profound personal 
dilemma over whether or not to let 
go of his own baby. He will not be a 
forced seller, he emphasises: “That 
would be unconstitutional, going 
against the basic right of private 
property.” 

And be Ms slip the thought that 
Italian prime ministers are not 
elected for a fixed term. The Impli- 
cation is dean he is heading Italy’s 
53rd post-war government and he 
does not know when he may need 
to look for another job. 

T he Fininvest link contin- 
ues to cause speculation 
of a different kind: 
whether Italy’s anti-cor- 
ruption magistrates, who 
are investigating various aspects of 
his business empire, will eventually 
reach to the top. “On this front 1 
have always been tranquil. Other- 
wise, I would never have entered 
politics because 1 knew thousands 
of spotlights would be immediately 
turned onto my activities. For 
example there have been 126 
searches by the police in the last 
few months, compared to less 
than 100 in the previous 10 
years." 

In an unstable political environ- 
ment, Mr Berlusconi will not be 
drawn on fhp rhai^wm of his govern- 
ment’s survival. The decisive 
moment will come once the budget 
has been passed. The crucial de- 
ment will then be his stormy rela- 
tionship with Mr Bossi of the 
League. Having fought with each 
other from the beginning of the 
administration, the question is 
whether the prime minister-can 
sideline Mr Boss! without falling 
too much into the right’s 
hands. 

Mr Berlusconi is not yet at the 
eye of the storm. He ends the inter- 
view to rejoin the cabinet, for what 
turns out to he one of the stormiest 
sesBirmfl of his administration. 

Richard Lambert 
and Robert Graham 


mg more heavily. He promises to 

Time to adjust our sets again 




PERSONAL 
VIEW 


UK broadcasting in 
the 1990s was to be 
about competition, 
choice and quality, 
according to the 
government which 
put this trinity on 
the cover of a white 
paper published six 
years ago this month. Almost half 
way through the decade, what do 
we think of it so far? 

There is certainly more competi- 
tion, most notably in the sale of 
advertising between ITV and Chan- 
nel 4. but the firm grip of (he BBC/ 
ITV duopoly is far from broken. 

A fifth terrestrial channel was 
conceived in 1990 as the single most 
important initiative the government 
could take to introduce market dis- 
ciplines. But arguably the only com- 
petition Channel 5 has created to 
date is between the departments of 
national heritage and trade and 
industry over what to do with it 
The contrast with the carefully-con- 
sidered anil well-tuned introduction 
of nhannd 4 is stark. 

As for choice, the continued 
absence of Channel 5 means that 65 
per cent of UK viewers still have 


only four channels. The 15 per cent 
who enjoy cable and satellite would 
have done so with or without a 
Broadcasting Act in 1990. 

On ITV, it seems that most view- 
ers, advertisers and the Indepen- 
dent Television Commission, the 
channel’s watchdog, would agree 
that, despite its strong popular 
drama, the chann el has become less 
diverse - longer series in fewer 
genres, no single plays, less investi- 
gative reporting, and so on. 

Was it really for this that 
Britain’s television industry had to 
endure the trauma and disruption 
of the 1990 Broadcasting Act that 
followed the white paper? It looks 
scant reward for the thousands of 
jobs lost, bustnesses broken up and 
training schemes closed down. 

If the outcome has short-changed 
viewers and set back the global 
prospects of what should be a lead- 
ing British industry, can anyone 
honestly be surprised? The mam 
beneficiary of the 1990 Act has been 
the Treasury, which has cleaned up 
like some great croupier in White- 
hall It raked in almost £36Qm in 
1993 as rent on the ITV franchises - 
roughly 25 per cent of ITV’s 1983 


revenues, and equivalent to 75 per 
cent of the industry’s annual pre- 
tax profits after bid payments. It 
should do even better this year. No 
wonder ITV companies put share- 
holders second and viewers third. 

Some advocate a fresh Broadcast- 
ing Act to undo the damage. Others 
want another auction of ITV fran- 


The main beneficiary 
of the Broadcasting 
Act has been the 
Treasury, which has 
cleaned up like some 
great croupier 


chises in 1998, to replace the exist- 
ing arrangements that will allow 
current licensees to negotiate 10- 
year extensions. 

I do not share these views. What 
is done is done. It would have been 
better in 1989 if the government had 
introduced a modest BQl and then 
left the competent regulatory 
authorities to get on with the job, 
but it did not and the industry has 


moved on. What I would now like to 
see, with one exception, is prag- 
matic regulatory change rather 
than new legislation. 

There is a need, for example, to 
protect the five regional stations, 
from Channel to Grampian, follow- 
ing the government’s decision to 
relax unilaterally the rules on merg- 
ers between ITV stations. No sudh 
protection is afforded by the Broad- 
casting Act and they may soon be 
required by the larger companies to 
contribute to network costs in pro: 
portion to their share of advertising 
revenue. I doubt any of these small 
broadcasters would that be viable, 
and the regulator needs to be free to - 
matp arrangements to, ensure the 
survival of diverse services. 

The one exception needing legis- 
lative change is the widdly discred- 
ited ownership rules in the 1990 
Broadcasting Act that are' unneces- 
sarily restricting British investment 
at bpmp and discouraging UK mul- 
ti-media companies from competing 
In world markets. 

A large number of interested par- 
ties is seeking significant legislative 
changes that can affect readers, 
viewers and listeners nationwide. 


The Department of National Heri- 
tage has already canvassed views 
and should share its finding s soon. 

The key may be to frame cross- 
media ownership rules that recog- 
nise that UK markets consist of 
many audiences by type and loca- 
tion. These a u d ien ces could then be 
assessed for the influence upon 
them of various media, with appro- 
priate and more liberal thresholds 
being applied to ensure that they 
are offered adequate choice. 

Stephen Dorrell, national heri tage 
secretary, should publish a white 
paper in the new year, legislate as 
soon as posable - and then leave 
the broadcasters and regulators to 
go in search of the competition, 
choice and quality that the 1990s 
were supposed to he about : 

: Richard Dunn 


The author is chief executive of ' 
Thames Television and managing 
director of Pearson Television Hold- 
ings. Both companies are part of the 
Pearson group, owner of the Finan- 
cial Times 


Albert's heavy 
petting 

■ What a gift to headline writers - 
Albert Reynolds gives up being 
Taoiseach. If there hasn’t been an 
“Irish PM goes (back) to the dogs” it 
wDl be a miracle. 

For Reynolds has ea rn e d millions 
by senring up Tnfnnvi animal 
remains to Irish and British 
moggies and doggies. Reynolds, who 
turned 61 on November 3, 
established his family company, CD 
Petfoods, in the early 1970s. Now 
run by his son, Fhftlp, it churns out 
Maxi catfood and Max dogfood, the 
latter supposedly named after the 
Special Brandi minder of Charles 
Haughey, whom Reynolds toppled 
from the leadership of the Fianna 
Fafl party three years ago. 

If he gives up politics - a fair bet 
according to Dublin observers - 
Reynolds could always dust off bis 
cv, with experience as building site 
messenger, cabinet polisher and 
railway ticket clerk. 

Ballroom dancing has pretty 
much died in the rave culture, 
otherwise he amid resurrect his 
Ballroom of Romance company, 
started in 1958 to enable youngsters 
to twoetep the night away in 
teetotal harmony. There again, he 
could always work for his nephew, 
who runs one of Dublin's premier 
nightspots. The Pod. 

But his own choice might be to 
take up professional crooning, 
ringing his beloved country and 


western songs. He once appeared an 
Irish TV dressed hi cowboy gear 
and stetson hat, and has publicly 
delivered the immortal Jim Reeves 
number He’ll Have To Go. Maybe he 
could take up astrology? 


Mid- Ruff crisis 

■ Will Peter Ruff, the BBC’s man 
in Moscow in the mid-1980s, come in 
from the cold? Ruff, who seems to 
have lost his way a bit since he quit 
the BBC three years ago - he 
popped up briefly at the Chemical 
Industries Association - is in the 
running to take over from Tim 
Collins, director of communications 
for the Conservative party. 

Collins wants to be an MP and is 
expected to have cleared his desk 
before the end of the year. The 
Tories seem to go through their 
spin-doctors faster than their party 
chairmen. The last BBC man in the 
job was Shaun Woodward, an 
ex-Panorama producer, who came 
and went with little impact. 

Ruff is clearly a strong candidate: 
covering a totalitarian state on its 
last legs sounds the right sort of 
preparation. 


Campora tonic 

■ Is he going or staying? Mario 
Campora, that is - Argentina’s 
ambass ador to London. It seems he 
ma y have lost his Job for 
disagreeing with his president, 
Carlos Menem, over Menem’s offer 


Observer 



mutually exclusive’ 

of cash to the Falkland islands’ 
2,000 or so inhabitants to up sticks 
and leave. 

Yesterday Campora was still 
following his timetable and lunched 
with City hankers. Meanwhile back 
in Buenos Aires rumours were 
flying, suggesting he was in trouble 
for pouring cold water on the idea. 
Campora suggests it’s daft to pay 
for something over which 
Argentina already claims 
sovereignty. Sound reasoning. 

Interestingly enough, senator 
Eduardo Menem, the president’s 
brother, shares Campora’s opinions 
on this issue. When in London two 
weeks ago, Eduardo said that 
offering money for the Falklands 


rfieappm Argentina’s claim. 

Nevertheless, a presidential aide 
said yesterday - “unofficially” - 
that Campora may be packing his 
hags to become ambassador in 
Paris. Which is hardly Tierra del 
Foego, after alL 


Aitken fume 

■ Jonathan Aitken, the UK 
Treasury's chief secretary, is clearly 
jinxed when it comes to written 
correspondence. For months he has 
been exchanging letters with. The 
Guardian newspaper over payment 
of a Paris hotel bfll of his. 

Now he has sent a letter 
congratulating George Robertson, 
Labour’s shadow Scottish secretary, 
on a “bravura” Commons speech on 
Wednesday. Aitken’s letter - which 
opened “Dear George" - praised 
Robertson’s “stylish, amusing” 
contribution, and forecast rapid 

promotion. 

Unfortunately, the speech Aitken 
praised was made by Raymond 
Robertson, Tory MP for Aberdeen 
South. Cnnftnrinn reigns: Aitken 
even put Monday’s date on the 
letter, suggesting it was written 
before the speech. 


Lowry collected 

■ There will be a sigh of relief at 
London’s Tate Gallery that New 
York’s Museum of Modem Art has 
finally found a new director - 
Glenn Lowry, the 40-year-old 


director of the Art Gallery of 
Ontario. It would have been a teg 
blow fbr the Tate if the Americans 
had poached Nicholas Serota, its 
ambitious director. 

Finding a replacement fbr 
Richard Oldenburg, who has been 
Moma’s director for the past 22 
years, has not been easy. It is well 
over a year since the New Yorkers 
started searching and Lowry, an 
expert fa Islamic and Oriental art, 
is not the most obvious choice to 
ran a gallery specialising in modem 
art His appointment is another sign 
of the developing world shortage in 
good international museum 
directors. Finding a top scholar who 
can turn a hand equally well to 
arimlrri storing fun dr- raising is 

becoming even more tricky than 
landing a rare collection these days. 


Greener grass 

■ Rather than poHticalpower.it 
seems German-born Henry 
Kissinger really hankered after 
fame as a sports commentator “I 
always wanted to he a sportscaster, 
but I just couldn’t lose fids New 
York accent," he says in anew 
advertisement for the New York 
Times. Perennial presidential 
candidate Jesse Jackson says he 
takes the paper for its real estate; 
he’s hunting for “a big white house 
with pillars” on Washington's 
Pennsylvania Avenue. 

And Bill Clinton? No news as yet 
But maybe he takes it for its job 
vacancies. 


r 

f 



6 


Conservatives accused of being over-interventionist French plan 

Brussels tests UK power 

.. , „ . , V pensions 

to block foreign takeovers revived 


By Emma Tucker m Brussels 


The European Commission has 
turned the tables on Britain’s 
Conservative government by acc- 
using it of being over-interven- 
tionist in its defence of a contro- 
versial piece of socialist 
legislation framed by the Labour 
government in 1975. 

Brussels has opened proceed- 
ings against the UK over part of 
the 1975 Industry Act - drawn up 
by Mr Tony Benn, the then 
Labour industry secretary - 
which allows the government to 
prevent foreign takeovers of UK 
manufacturers. 

The co m mis sion argues that 
the provision is incompatible 
with European Union rules on 
the free movement of capital and. 
even if rarely used, acts as a 
deterrent to foreign investment 
in the UK 

However, the department of 
trade and industry said yesterday 
the government felt there was 
still a role for the secretary of 
state for industry to play “in pro- 
tecting the national interest". 

Clause 13 of the act - much of 
which has been repealed by the 
Conservative government - 


states that the industry secretary 
has the right to prohibit a foreign 
takeover if it appears that there 
is a "serious and immediate*' 
probability of a change of control 
which would be contrary to the 
interests of the UK 

This goes further than BU laws 
that allow national governments 
to intervene an health and secu- 
rity grounds, and actively 
breaches rules which foresee no 
restrictions on capital movement 
and direct investment 

The insistence from the com- 
mission that the provision be 
dropped or at least altered is 
politically embarrassing for Mr 
John Major's government, which 
has frequently harangued the 
commission for taking an over-in- 
terventionist approach to indus- 
trial policy. 

“It is really remarkable that 
this piece of legislation has sur- 
vived all these years of Conserva- 
tive rule." said a British official 
in Brussels yesterday. 

UK industry officials said the 
clause had been kept “just in 
case". 

“There bas been speculation 
from time to time about the risk 
of UK business falling into for- 


eign hands. The government 
accepts that the legislation is oti- 
ose, but it may be needed one 
day." an industry official. 

The issue of national owner- 
ship is politically sensitive, par- 
ticularly in the UK 

When Rover, the car maker, 
was acquired by BMW of Ger- 
many earlier this year there was 
widespread dismay among the 
British public. 

“This issue has touched a polit- 
ical nerve. A large number of vot- 
ers feel rather worried when they 
see British industry threatened," 
said a UK official. 

The DTI said the commission 
complaint was not directed at the 
government's "golden share" 
holdings in certain companies 
which limit foreign ownership, 
but rather at the general princi- 
ple of the 1975 law. 

The official Added that the UK 
was hoping to come to an “amica- 
ble" agreement with the co mm 'is . 
sion which would “lie somewhere 
between abolishing the act and 
keeping it the way it is". 

The commission would not 
comment, other than to say it 
was in contact with the UK 
authorities. 


By John Ridding fan Paris 


BCCI creditors give backing 
to new compensation deal 


ByJtanKeOy, 

Accountancy Correspondent 


The prospects of a settlement for 
creditors of the collapsed Bank of 
Credit and Commerce Interna- 
tional rose markedly yesterday 
when dissident victims welcomed 
revised proposals from the liqui- 
dators. 

The BCCI Depositors' Protec- 
tion Association (DPA). which 
helped block an earlier agree- 
ment, said it would sign the new 
one based on a JL8bn contribu- 
tion from the government of Abu 
DhabL 

BCCI was shut down in 1991 
with liabilities of up to $10bn 
after the discovery of the world's 
biggest hanking fraud. Its assets 
may be as much as $4bn. 

The liquidators, the accoun- 
tancy firm. Touche Ross, said the 
new agreement had been consid- 
ered by BCCI creditors’ commit- 
tees in London, Luxembourg and 
the Cayman islands and “unani- 


mously approved by those who 
voted”. 

The depositors' association said 
it wished to end delays caused by 
court appeals. It pointed out that 
the new agreement, unlike the 
original, allowed creditors to pur- 
sue claims a gains t the Abu Dhabi 
government. 

Before an agreement can be 
completed it must be passed by 
courts in three jurisdictions. The 
liquidators said yesterday_the 
case would be heard in London 
on December 13; in Luxembourg 
on November 30 and December l; 
and in the Cayman islands on 
January 11-19 1995. 

Under the new agreement Abu 
Dhabi, the main shareholder of 
BCCI, will pay $l-55bn after the 
successful completion of the 
court hearings, J150m 34 months 
later, and $100m 36 months after 
completion. 

“The DPA believes that the 
new agreement represents a sig- 
nificant improvement on the old 


agreement and vindicates its 
opposition to the old agreement," 
said an association Official- 

Referring to claims against 
Abu Dhabi, the association said: 
“The DPA hopes that such 
actions will be pursued and is 
investigating the formulation of 
such a claim.” 

Representatives of the DPA, 
which has 200 members, fought 
the original agreement in the 
courts in London and Luxem- 
bourg. The agreement was 
blocked on appeal in Luxem- 
bourg in October 1993. 

“The liquidators must now 
commit themselves to payment of 
an initial dividend of no less than 
20 p er cent by July 5 1995." the 
DPA said yesterday. Estimates of 
the final dividend payable range 
from 30 per cent to 40 per cent 

The liquidators made it plain 
yesterday that an interim divi- 
dend depended an the courts and 
the calculation of the number of 
creditors and total assets. 


Mr Edmond Alphandery, the 
French economy minister, sought 
yesterday to relaunch plans to 
encourage private pension funds, 
announcing that France's pen- 
sion system should be reformed 
next year. 

“Conditions should be ripe for 
an initiative in 1996”, Mr Alphan- 
dery told members of the COB, 
France's stock market regulator. 

The development of capitalised 
pension funds is seen as an 
important means of reducing 
pressure on the existing “pay-as- 
you-go" system and curbing the 
French welfare deficit. But 
reforms, ori ginall y slated for this 
year, have been delayed because 
the issue is politically sensitive 
and complex. 

Hie current system, in which 
pensions are paid from contribu- 
tions from the existing work- 
force, suffered a deficit of more 
than FFr4Qbn (S7-8lbn) last year 
and faces increased strains 
because of an ageing population. 

Mx Alphandery also regards 
private pension funds as a way of 
strengthening France's financial 
markets and increasing long-term 
savings. 

However, pensions reform has 
been opposed by some trade 
unions. “The existing system is a 
source of solidarity between age 
groups and social classes." said 
an official at Force Ouvridre. one 
of France's largest unions. 
“Incentives for private schemes 
will favour the wealthy and will 
harm the economy by reducing 
consumption." 

Reform has also been compli- 
cated by differences between 
reform proposals and disputes 
between companies seeking to 
participate in capitalised 
schemes. The Patronat employ- 
ers’ federation, the Association of 
French h anks and Mr Jacques 
Barrot, chairman of the National 
Assembly's finance committee, 
have all drawn up separate pro- 
jects. Insurance companies and 
banks differ over whether retire- 
ment payments should be made 
in lump sumps, or in the form of 
annuities. 

Industry observers said yester- 
day that such problems made 
reform unlikely before next 
spring’s presidential election. 

“I don’t think we will see a text 
for a reform for the next few 
months,” said one French mer- 
chant banker. “But it is impor- 
tant that it is back on the 
agenda." 


Emu ‘possible by 1997’ I Barclay brothers buy AFG 


Continued from Page 1 


challenge" ahead, Mr Ravasio 
said, but it was not too optimis- 
tic to believe that several conn- 
tries could do so by the end of 
1996. 

■ Sir Leon Britten, the EU’s 
trade commissioner and a former 
senior UK minister in the 
Thatcher government of the 
1980s, warned the British gov- 


ernment yesterday that it could 
not “wish away** the prospect of 
a single European currency, our 
Political Editor writes. 

In a lecture in the Cite of Lon- 
don, Sir Leon warned that, 
whether or not the UK govern- 
ment eventually exercised its 
opt-ont from the single currency, 
it most participate actively in 
the preparations for economic 
and monetary union. 


Continued from Page 1 


nesses in the UK with a com- 
bined pre-taxprofit in the 12 
months to the end of July 1990 of 
£142£m on a turnover of £l.76bn. 

Mr Botnar’s operations have 
been in turmoil since Nissan 
Motor, the Japanese carmaker, 
took away the Nissan franchise 
amid a bitter legal battle with 
effect from the end of 1991. 


Nissan UK has been at the cen- 
tre of Britain’s biggest corpora- 
tion tax fraud. 

Last year Mr Michael Hunt, a 
director of NUK, was sentenced 
to eight years in prison for con- 
spiring at NUK to defraud the 
Inland Revenue of £55m in corpo- 
ration tax. 

An arrest warrant was issued 
for Mr Botnar, but he has never 
returned to the UK 


FT WEATHER GUIDE 


Europe today 


A series of low pressure systems will flow Into 
north-western and central Europe, causing 
heavy rainfall from the southern British Isles to 
Hungary. Temperatures win to rise to 10C-16C 
along the Atlantic coasts. 

Conditions will be doudy from Poland to Russia, 
with scattered showers and snow north of 
Moscow. The eastern Mediterranean wifi have 
unsettled conditions, with heavy thunder 
showers, especially over Greece, southern 
Tivfeey and Cyprus. 

The northern Balkan states win be cloudy and 
cod. with sc a ttered showers In the north. 
Scandinavia w 31 be dry but chilly. 

Five-day forecast 

The British Isles will continue to be wet, while 
Scandinavia will become damp and warmer on 
Saturday. 

There win be rain from Denmark to north- 
western France. Central Europe win become 
dry with sunny spefis, while concfitions in the 
eastern Mediterranean will remain unsettled. 


£l- ^ 


444 i 


3E ' I 

«GH 


LOW 

V - 




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8 


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8 




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'1010 / 


■ • " , 


Wind speed to KPH 


TODAY’S TEHPERATUISS 


Sftraafcn at 12 GMT. Tempermes modmum far day. Forecasts byMeteo Consvttot the Netttedands 



Maximum 

Balfog 

fair 

9 

Caracas 

fair 

30 

Faro 

sun 

21 

Madrid 


estate 

Belfast 

rain 

12 

Cardiff 

rain 

14 

Frankfurt 

rain 

9 

Majorca 

Aby Dhabi 

sun 

31 

Belgrade 

doudy 

10 

Casablanca 

sun 

19 

Geneva 

ram 

11 

Malta 

Accra 

fair 

32 

Berfn 

shower 

7 

Chicago 

shower 

9 

Gibraltar 

sun 

20 

Manchester 

Algiers 

fair 

21 

Bermuda 

doudy 

23 

Cologne 

rain 

9 

Gfasgow 

rain 

10 

Maria 

Amsterdam 

ruin 

10 

Bogota 

doudy 

22 

Dakar 

fair 

31 

Hsmbug 

shower 

8 

Melbourne 

Athens 

thund 

16 

Bombay 

fan- 

33 

Dates 

fay 

18 

Helsinki 

doudy 

-1 

Mexico City 

Atlanta 

fair 

17 

Brussels 

rain 

li 

Deftil 

sw» 

29 

Hong Kong 

Mr 

27 

Wart 

B. Aires 

fair 

28 

Budapest 

raki 

8 

□utm 

sun 

30 

Honolulu 

shower 

31 

Wan 

B.ham 

rain 

13 

CJngen 

fa k 

6 

Dublin 

shower 

14 

Istanbul 

shower 

14 

Montreal 

Bangkok 

fair 

33 

Cairo 

fSk 

23 

Dubrovnik 

fafr 

17 

Jakarta 

doudy 

31 

Moscow 

Barcetona 

far 

18 

Gape Town 

fair 

21 

Bfinbugti 

shower 

10 

Jeraey 

rain 

15 

Munich 










Karachi 

SJ1 

34 

Nairobi 










Kuwait 

ttr 

2S 

Naples 


. No global airline has a younger fleet. 

<) Lufthansa 


L Angelos 

Las pda» 

Una 

Lisbon 

London 

LiKbourg 

Lvon 

Madeira 


18 Nassau 
24 New York 
23 Moe 
18 Mcosia 
14 Osio 
8 Pais 
11 Parth 
2 2 Plague 


17 Rangoon 
SO Reykjavik 

21 Rio 
13 Rome 
30 S. Frsco 

22 Seoul 

23 Singapore 
26 Stockholm 
12 Strasbourg 

8 

5 Tel Aviv 

24 Tokyo 

18 Toronto 
29 Vancouver 
12 Venice 

17 Vienna 
20 Wssaw 
0 Washfagton 
12 WeHngton 
34 Ufinnpeg 

6 Zurich 


fair 34 
rain 5 
lair 32 
fa* 18 
fair 13 
showw 13 
shower 29 
fair 0 
rain S 
shower 24 
sun 20 
doudy 23 
doudy 16 

rain B 
fa V 11 

rain 8 
shower 5 

fat 18 
shower 16 
enow -4 
rain 8 


THE LEX COLUMN 


Budge’s bold 


| The story being told by RJB Mining as 
it trawls the City for ELlbn to boy the 
bulk of British Coal looks starry-eyed. 
While its version has a fairy-tide end- 
ing, most other scenarios conclude in 
tears. 

For those asked to provide £528m Of 
i bank debt, there are few concerns. 

! Once RJB has acquired- the English 
coalfields, h will have about £315m 
worth of coal already out of the 
ground. Moreover, the contracts to 
supply power generators should pro- 
vide sufficient rash to pay off the hoik 
of the debt by April 1998 when they 
expire. Whether RJB has net rash by 
then depends on the extent of cost 
cutting. 

But for equity investors, the venture 
looks fraught with risk. RJB’s fore- 
casts of pre-tax profits of £22Qm in 1999 
depend an optimistic projections for 
sales volumes and prices - assump- 
tions shared by few others in the 
industry. An unlikely combination of 
events will be required for its predic- 
tions to came true. These iwinda a 
significant rise in international coal 
prices, which admittedly have begun 
to edge forward for the first time in a 
decade; and the willingness of UK 
power generators to use RJB’s coal to 
the eirrJusinn of virtually an others. 
The latter seems improbable, given 
their recent investments in importing 
facilities and stated policy of diversify- 
ing fuel sources. Given the group’s low 
growth prospects post-1998, and an 
expected dividend yield of only 4 Ja per 
cent - about the market average - 
equity investors will need consider- 
able convincing that buying into RJB 
is a risk worth taking. 


FT-SE Index: 3127.5 (-19.0) 


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fewer shares flooding the. market 1 : 

From National Power’s perspective,' 
one cannot fault the p ri nci p l e of 
reducing its equity. In fact, the com* 
.pany should he spending more than 
£50Qm-ptus to shrink its .capital base, 
After the buy-hack, National Power 
will stfll be able to spend Elba on 




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Volkswagen 

At DM 136m, Volkswagen's third- 
quarter after-tax profits were only 
DM3m higher than they were in the 
previous three months. But a pro- 
nounced recovery is nonetheless 
under way. The DM73m loss in the fall 
nine months compares with losses of 
DML5bn in the samp period last year. 

The key to the earnings revival is 
aggressive cost-cutting, evident in vir- 
tually unchanged production costs and 
reduced sales and administrative 
expenditure: This is impressive when 
turnover was up 4.1 per cent to 
DM5&8bn in the first nine months. 
But VW stfll faces a major cost head- 
ache. Analysts predict that even if 
rationalisation continues at the cur- 
rent pace, the net profit margin will 
only reach 2.6 per cent by 1996 - lower 
than for other European volume pro- 


ducers and half the level achieved by 
the big US manufacturers. Hie crunch . 
will come when VW renegotiates the 
four-day w ork i n g week which, runs out 
next year. Sharply reduced “other 
income * yesterday suggests that the 
group has made higher provisions. If 
these are used to cut staff aggres- 
sively. so much the better. 

Shareholders must assume that 
their interests will always be second- 
ary to those of the government of 
Lower Saxony, which, as VWs largest 
shareholder, is concerned more with 
politics than profits. However, even if 
VW does not become as lean as its 
European and US competitors, there is 
scope for a strong improvement in 
profits later In the derade as sales 
start to ftHmh rapidly in response to 
new models and economic recovery. It 
may be that earning s per share will 
recover to more than DM106 at the 
cyclical peak, in which case the shares 
are cheap at yesterday’s price of 
DM455. 


tag', in the 20-80 per cent range. 
Atwtth er quibble tefbe method it has 
chosen. By buying direct from the gov- 
ernment, so’ shareholders will enjoya 
tax break. If instead it had issued a 
mega-dividend or bought shares 
• through a tender, some investors 
would have Benefited Cram the tax 
credit. . i ..., 

Though tiie buy-back is positive far 
National Tower, investors should cur- 
rently be wary of buying eittresr of the 
generators’ shares.- Brokers w to are 
keen to be part of thfi Treasury’s sale 
have in recent raanths’been pumping 
out fat notes singing the companies' 
virtues! Such one-way publicity. baa 
arguably already inflated- their: share 

prices. . ■ -• :J'. . 


UK generators . 

The British government initially 
had qualms over allowing the electric- 
ity generators to buy their own equity 
as part of its £4bn share sale next 
year. The Treasury feared such a . 
move might compromise Its goal of 
wider share ownership. But the Trea- 
sury’s qualms were swep t aside once it 
appreciated how buy-backs should 
benefit the exchequer. By cancelling 
shares. National Power and, possibly. 
PowerGen will enhance earning s per 
share, so Increasing , the price the 
government can demand for its stakes. 
That price should be further supported 
by the fact that there will be 


Sony . ; 9 

The 7 per cent faH in Sony's share 
price In London yesterday is sMghfly 
odd. The Japanese decbtmics^ group's 
problems -with its Hollywood: movie 
studio have hardly been, a secret. The 
massive Y266bn writeoff is- actually 
good news/ By cleaning the decks, 
Sony is signalling its de t e nnfa ndtan to 
get a grip an -the farmer . Columbia 
Pictures. The studio’s new managed 
meat should be abfe tepaf an. end 4/ 
the extravagance that led to such 
spectacular Oops as Last Action Hero. 
Columbia stfll enjoys a strong distri- 
bution network aid picture library, Its . 
share of US box office takings^ has 
collapsed below 10 per cart but it is 
hard to see it faffing much farther. . 

There is no denying,^ though/ the 
disastrous investment Columbia has 
bear for Sony. Ihe hope&for synergies 
between consumer electronics hard- 
ware and software have faded to mate 
rialise. The Japanese group has also 
been the wrong parert for such a “tal- 
eut” business, ft rightly recognised# 
knew little about the business, bat 
then gave the studio’s top manage- 
ment such a free rein tint they lost 
masses of money. Now it risks keeping 
such tight control that it drives tha 
talent away. TUs is not a feature of 
Sony’s Japanese nationality: look at 
General Electric, the US conglomerate, 
and its unhappy experience with bro- 
ker Odder Peabody. 




TF Qfflaa [57 


It’s BIGGER. It processes over $150 billion of trades per day, over 
$600 million of equity trades per week and over half a million trades per 
month. It’s FASTER It’s a real time trade confirmation risk managem^ r 
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From the International Securities MaHcet Association Ud 
Teh (44-171) 538 5656 Fax: (44-171) 538 9183 



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financial times 


FRIDAY NOVEMBER 18 1994 


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RECRUITMENT 

jQBS: Machines are changing our social order by freeing up the human brain 

Why not simply stop working? g 


SALARIES, BONUSES AMD CAR ALLOWANCES W CITY OF LONDON FINANCE 


W hy do we work? When- 
ever I ask myself this 
question, which is fr-P- 

016 0bviQU5 and simple 
augers come to mind su^h as to 

**> Clone STfeSf Kte 

h ?? ever » ? question usually 
jmwateljr because it is not 
easily voiced openly in a society 

where unemployment is rife 

2?”?®* *** bec01be the chief 
focus of human activity 

“ heartening to hear last 

week, therefore, someone not only 
attempting to answer this question 
“Stoically but also examining its 
broader implications. Alain Cotta, 
professor of economics at Paris Dau- 
Phme University, told delegates of 
Hay mangement consultants’ inter- 
national conference in Prague that 
work was a ‘Very new concept”, 
less than two centuries old. 

He was speaking about work in 
the sense of something sought out 
as an edifying pastime that brought 
with it social status. Before the 
Industrial revolution only those 
penile with no other choice worked, 
and the more they worked, the 
lower their social status. He «»§*• 
“Social order was then based on a 


hierarchy inverse to that based on 
work," 

“Work was not even per m i tted at 
all at the ultimate gnmmifc as this 
would have meant going against the 
social status which had been 
attained," he said. 

Only later did the work concept 
become the key to merit and meri- 
tocracy, claiming the status of 
moral value. “As soon as it was 
introduced on the social scene by 
industry, work suddenly nlflimeri all 
the honours,” said Cotta. 

He quoted the 19th century Ger- 
man philosopher Hegel's warning 
that work “suspends desires” and 
directs energies towards the produc- 
tion of goods. In accepting work in 
mechanised industry, people were 
themselves becoming part of the 
new machine state, taking orders 
from a chief or boss, something 
which Elias CanettL, the Nobel prize 
winner, once compared to “pins 
driven in our flesh”, he said. 

Hegel ’ s observation that winching 
would replace muscle and in so 
doing create machines of people, 
was right. Cotta concluded, but a 
new process was taking the trans- 
formation further, he suggested. 


t akin g over the nerve cells or neu- 
rons. He called it the “neuron pros- 
thesis”. 

Cotta said: “More than half the 
people are now employed in sectors 
where they create, release, transfer, 
receive and utilise information. The 
crossing of the frontier between 
muscle and neuron may have as 
many consequences as the rise of 
industry.” 

C otta is putting his finger on 
the information and techno- 
logical revolution that is 
overtaking the industrialised world. 
He is suggesting that work has 
turned full circle to the point that 
“people are now looking forward to 
filling their time instead of produc- 
ing. Man is trying to free himself 
from the original painful con- 
straints of work.” 

He not only points out what many 
of us have resentfully accepted - 
that industry has increased the 
time spent at work, separating peo- 
ple from their domestic «wri social 
life - but says that arguments 
against work today focus not on Its 
duration but on the subordination 
of individuals to orders. 


Here, he may be trailing develop- 
ments. Far from subordinating the 
employee, the advent of delayering 
and empowe r ment in the workplace 
hat led to the pmafynladnn 0 f tVip 
middle manager and is even chal- 
lenging the influence of higher 

ma«agpmpnti 

Cotta identifies the emergence of 
three groups of people in society 
differentiated by their relations to 
work. The largest is the middle 
defined as “all the individuals 
for whom work remains to be 
endured and is their only way to 
earn a living - but not a reason for 
living”. He has no category for the 
traditional working class. 

The second are those excluded 
from work because of the ever 
increasing levels of education, qual- 
ification and technology, or because 
they have retired on a pension or 
excluded themselves voluntarily, 
living on benefits or private income. 

The last group, he says, com- 
prises people who have chosen to 
work, including those in the profes- 
sions. While these three social 
groups are at present stable he asks 
whether progress may induce fur- 
ther the condemnation of work and 



Lower 

Marian 

Upper 

Average , 

Avge 

[ Car allowance 

Position 

quartBs 

sa toy 

quartHe- 

salary 

bonus 

% 

Avge amount 


£ 

£ 

£ 

£ s 

% 

with 

£ a year 

Capital markets head 

107,500 

130.000 

166.000 

134,100 

127.7 

20 

6,750 

Fund management director 

04,750 

123£99 

163,000 

127,017 

27.6 

66 

7,888 

Corporate finance head 

93^50 

102,000 

135.000 

110*071 

523 

57 

7,825 

Head of research 

80,000 

85.000 

118,800 

105^67 

409 

60 

5,388 

Equity trading head 

84,000 

87.750 

tsojaoo 

104382 

73-3 

25 

7,456 

Eurobond tradng head 

76,700 

100,000 

130,000 

103*406 

87.1 

77 

6,996 

Bond sates head 

90.000 

95,000 

100,000 

95,357 

384 

71 

10£56 

Financial director 

64,100 

78,775 

100,000 

89£97 

201 

26 

8,004 

Private banking head 

73.170 

90,500 

93,150 

85,607 

5L3 

50 

6,661 

Chief fx dealer 

68,000 

78,000 

94,000 

78,699 

42.0 

36 

5.337 

Money markets head 

56,880 

68,000 

82,725 

69,477 

39j8 

47 

5,989 

Personnel director 

53.434 

63£50 

78,000 

83,586 

31.7 

70 

6,696 

Corporate lawyer 

53£00 

65.000 

70.350 

64,793 

31.4 

89 

6,537 

Dataprooasaing director 

54.135 

83.000 

70402 

63,578 

20.8 

48 

6,605 

Credit manager 

36.900 

45,000 

46,500 

42^)86 

7.4 

37 

5,593 

Customer services head 

26,430 

30,000 

35.720 

31,134 

6L8 

20 

5,254 


1 Scxjnae Pay Aasodatw 

the attraction of two extremes: 
exclusion and predilection. 

What, asks Cotta, is going to hap- 
pen to his middle class? “Once the 
level of development can ensure a 
decent life where work requires 
minimal efforts, if not none, its 
schedules being considerably 
reduced and made flexible, the 
rhnmw of the ‘exclusion’ become 
more evident Why not amply stop 
working?" 

Work then, he argues, could once 
again be a key factor of social evo- 
lution. Social dynamics would be 
motivated by two powerful attrac- 
tions: “the sentence to death of 


work or the assertion that it can be 
the reason for living.” 

• Now for something completely 
familiar. Day Associates, which 
compiled the above table said that 5 
per cent was being widely quoted 
by City institutions as their budget 
for base salary increases for 1995. 
Year on year from August to 
August, said Day, (Sty clerical sala- 
ries, including bonuses, rose on 
average by as per cent while man- 
agement salaries rose by 1&2 per 
cent in the same period. 

The table shows a selection of 
data from its latest quarterly survey 
of pay and benefits of 315 jobs in 135 


hanks and finannp hmisas The first 
three columns show average basic 
salaries for various r anking s in the 
same type of job, followed by the 
average basic salary, and then 
bonus paifi as a percentage of 
salary. Finally, the last two col- 
umns indicate the percentage of 
people with car allowances and the 

amramfr 

The full report, price £250. con be 
obtained from Joe Clark at Suite 
2.31 Whitechapel Technology Centre, 
75 Whitechapel Rd. London El 1DU. 
Tel: 071-375 1397. fax: 071-375 1721 

Richard Donkin 


■j ■ 




■ * • “7. 



















International Invest me n t Banking 
c£35J)00 + bonus + benefits 

Additional leant members are required for the expanding 
group of this premier UK inv estment bank. The group covers 
all aspects of cross-bonder activities varying from structuring 
deals, providing advisory services, to lading and controlling 
projects. 

The successful candidate will enjoy indepth exposure to a 
variety of transactions In a range of emerging markets. 

They will be 

- A high calfirre graduate with excellent academics and 
numerate ability 

- Ideally a strategy consultant with at least two years 
experience or someone wdh a general banking background. 

- Aged between 24-29 years old and preferably offer fluency 

in an additional European or Far language. 

Quantitative Analyst - Equity Trading 
lb £40,000 + benefits 

An outstanding opportunity exists for a highly mathematical 
financial modeller to join the Equity Trading Group of this 
American investment Bank. 

The role will involve p ro vidin g trading desks with the 
analysis of sophisticated trades and risk management 
methodologies as well as advising on technVail trading 
st r ate gies and hedging Mchntqaeg. 

To succeed you must demonstrate: 

- Superb academics, ideally a PhD in a q ua n ti tative subject, 
-ftonri pn ytmm h ^ jiwt/nr mwtriHng gktHn. 

- Energy, drive and commitment 
-Ideally up to 2 years relevant experience. 

These positions offer excellent opportunities for career 
development and impressive new nda .- 

hr tether detail* of them aad mama "Otar mmnefcs 
-please motet iaoba Harper hr Chris Squire on. 
tm 553 0073 (day) or *727 SM M3 (evedugi & wrira fc) 
or wife to <* at X*U New Bridge Stmt, London XCfV 6 AU. 
Bax: 07t 3533JB# .• 

BADENOCH 8XLARK 

recruitment specialists 


RELATIONSHIP MANAGER C£60K 

Majw &nup« bank with ewdl w B hti s htri b a n fa i t a c w a c c rcqwisa a Manager for 

k’s UK nniU-oasioBBl corporate division. Candidates should be peofesrionally 
. qnB&Ki, ridolb demonstrate a raocaasAd career to dun aad posses ihe tibfflqr to me 
- aiefcf mJil a y a uieia i n a platform for farther twatk 

PROJECT FINANCE TO£40K 

Leading intemsiianal bank wirh an Established high-profile global pretence in project 
fimue k seeking to anagflmB k‘a London seam. JdcaOy aged between 25 and 35 the 

sncccssfiil candhhto will be a graduate and have perhaps 3 yens relevant experience 


SOVEREIGN LENDING TO£40K 

Tbp tier bank wistas m expand ifs Kwerrign risk team Preferably a gnduate with 
wed developed credit aaecsment skate, yoo should have 3 years aperient* covering 
a&acf. sovereign and syndfcaled lading with a successful track record to data ptaa 
On potential to p ro g r es s utto a frwU-Kna rote widen 2 years. 

CORPORATE BANKING C£30K 

-The Icndiqg leant at rid* npqor mtaraadonal bank is expanding ifa cumgc among 
the top 500 UK corporates and now requires an experienced tmafyat to rapport a 
newly -appointed senior nuoagec Ycvi *31 ideally be the product of a rtnaring bank 
graduate development programme with particular strengths fa risk assessment aad 
ctient interface. 

new apply to Anne langrtno or Andrew McGcadiy at . 
Ftesbnry Cotewtfi ng LhL, 

16 CMy Road, London ECLY 2AA 
TM: 071 628 9421 Ftoc 071 2565279 


RISK PUBLICATIONS 

Senior editorial positions 


rwvwwWr.viiww'i'W j 

Pubfcntbns. bused in London,. Chicago and Hong Kong, embraces he 
i rnogaawiJtefc. BdancaSfwot ewgyKisfca^ i 

4 os weB os cwfeoncas, doeciorias omd boots. J 

| Because of further expansion, we need toe poopkt in hgh tete edrtnkd •: 

> posmons. Kno*Wgo of *» wfwfasde fonwol amtets and m ability to i 

■; QOTMunicate specioffel information fn octex and infarmaftwe way is essenhoi for / 
l free, for one post knowledge of treasury or rok morrageoMnl bonks j 
■ vvouid be cm advantage. Sc* die second, Uowladge ci the energy rro/iafc j 

■: beb; fo>0v«ted. ptwen foumctetic obJty ond loading wrthng. j 

> • cmaniastonkm and editing sWs, am awe impsrtonf than spectafist Inmifedge. 

? TSetafoo posts might suapeopte-^&ed *n a mlevarc j 

: : sector who pasuss kfo® and dtivs to devdop tecenfly .butchod < 
SpSltiXtoliMS.^ f 

\ Sond cv and cotefng idtet to Hotel Hunfar. bk Pubfeotoos, 106-113 | 
Atoytex« loi«. London i 

■1 ... uuA-iWAW -A- «,.W.-WA. -.V.WW.-.M.-.M 

. : 


PROJECT FINANCE MANAGER OBL A GAS INDUSTRY 

CbffBirnVEpAOMOT 7 - ■ ~i • I«»TQN 

Wajmwc Bonus Kenhmotoh, London 

Ttemte lea metfian ated eontnanr aette «r ibcorl it pa padBctZaamdaESasag ttetm. 
w-w h, ihe Matflfl Bau and Fame Soviet Union wtae it las 


rf a wide wage °ff 


a ttwfies qnafificattos aad five to lea years 
■rail danatstritE Jttcnakidge aad K^srimce 
I Lboiled RocDuracHmmco andconriar trade 
■tkdafir hi tha tester ScrrielUidoB. 

H Bates D c ir cl opc m a Thu. Ba ass be 
i-p— »r~- rf «— riqp a bsd fc i «■ < iwpmk 

radaglM Btfi St,Loratai WJ4 8NS. 


EUROPEAN EQUITY SALES 

Mqjor mternationai investment bank is recruiting an 
experienced equity salesman for its primary and secondary 
1 markets distribution operation in the Middle East based in 
Bahrain. The role includes the servicing and development 
of an existing clientele base (institutional and corporate 
clients) with the backing of a top class research product 

We are looking fora candidate in his/her late 20’s early 30’s 
with 5 years experience in European equity sales and 
capable of showing a strong sense of initiative within the 
frame of an integrated ♦ <>qm 

Responsibilities will cover the co-ordination and 
distribution of the group’s primary and secondary products 
and development of new counterparty relationships. A 
knowledge of derivatives will be helpful. 

A ttra c tiv e tax free remuneration package with a strong 
element based on performance and usual expatriate 
benefits. 

Please respond by mailing a foil CV, 
all enquiries will be treated with utmost confidence, 
to Box A2198, Financial Tunes, 

One Southwark Bridge, London SE1 9HL 


^ FUND MANAGERS 

Q CIS & EASTERN EUROPE 

H Framlington, a leading international investment organisation based in London, seeks to appoint experienced Fund Managers to expand 
and service its interests in the CIS and Eastern Europe. 

[n Based in these regions, with support from Head Office and local expertise, the appointees will be responsible for identifying investment 
oppormmiiestfarpu^ the selecticmofconsHniesfcffslieamlimi^ or tesouettning, and die subsequent momtoing of all in vestmeMs on a 
regular bass. This will entail discussion and negaiatiOTaL diverse business and pcdificallevels. 


f j The ideal applicants will have a strong Vealure Capital background, preferably gained within Central and Easl£ra Europe. 

-q A cultural affinity for the region, together with fluency in local lsiguages are key requisites. Ideally aged in ihezr mid to 
\ — | late 30’s, candidates should be able to demonstrate the combination of a pioneering, entrepreneurial spirit, together 

j with the practical and diplomatic skills necessary to operate suocessfuUy ia these regions. ft 


r- A Highly anractive remuneration packages will be offered to the successful candidates. In the first instance please 
sari yourCVu complete confidence to: 




+ .?&■& J- • 


European Legal Counsel 


■'*. UK ■■ 

every-. 
Ttartsday 
; qul ip&e JdtematWMial. 

Endey. ' • 

;>--.;‘pfease<adl: . -■ 

9 •viV"! / - • »«v . .• ■ • .. 

y-WSrr^SItaEzyiisSa at- . 

'itfdk&r'"'' 

7?3^1 •’ 

''^oattW.Qearr^m 
873 4153 


5-10 yrs pqe 


The Netherlands 


c 168,000DFL + Benefits 


■Slur client is a $2billion Fortune 500 company operating in the 
ASfl high-technology sector. Headquartered in California, die 
company employs nearly 1 0,000 people and operates out of more than 
40 countries around the world. 

The company currently wishes to appoint a Legal Counsel based at 
its European headquarters outside Amsterdam. This individual will be 
responsible for legal support for its sales and marketing operations 
throughout Europe, including subsidiaries, distributors and resellers. 

Working as a- key member of a small European Legal Department, 
the position will report to the European General Counsel but will 
demand dose working relationships with local commercial 
management. We are looking for a lawyer with initiative, flexibility and 
a demonstrable grasp of business priorities. Language skills would be a 
distinct advantage, as would experience of EC law. 


Candidates will be lawyers, qualified in a major European 
jurisdiction, with a minimum of 5 years’ experience gained in a 
reputable law firm or in industry. The nature of the work dictates that 
broad -based company commercial experience will be most appropriate. 
Ideally applicants should have experience of a pan-European 
environment and have worked in mainland Europe. Applicants should 
be willing to travd. It is anticipated that the appointee will spend the 
first 3 months of their employment in the Corporate HQ in California. 

For this high profile role within a fast moving, dynamic organisation 
candidates must be able no demonstrate outstanding communication 
skills, sound commercial judgement and technical excellence. The . 
remuneration package will reflect the organisation's demand for an 
exceptional individual and will indude relocation assistance. This 
constitutes a unique opportunity for a lawyer to develop his or her skills 
within a genuinely international arena. 


Interested applicants should contact Fiona Campbell at the address below. AIT enquiries will, of course, be treated in the strictest confidence. 


Alderwick Peachell 


AlJenvick Peachell Limited. Recruitment Conrahanu, l Z5 High Holbom, London WC1 V 6QA. Tel: 0044 7 1 404 J 155. Fox: 0044 7 1 404 0 140: 


GLOBAL PRIVATE BANKING 

BUSINESS DEVELOPMENT 
MANAGER 

Birmingham 

Founded in Canada in 1869, Royal Bank of Canada is Canada's leading financial 
services institution and one of North America's largest banks with total assets of 
C$172bfllion at July 1994 We have offices in key financial centres throughout the 
world, providing access to a wide range of financial services to customers in over 100 
countries. 

The mission of the Global Private Banking team is to enhance die well bring of our 
clients by preserving and enhancing their wealth. The role of the Global Private 
Banking Business Development Team is to assist in the mission, primarily by 
securing new clients, but also by active development of products to meet market 
demands. Both require a close and constructive working relationship with 
pro fe ssional intermediaries, such as accountants and solicitors. 

Due to continued growth, we seek an additional Manager within the Business 
Development Team. The position will be based in our Birmingham office, reporting 
to the Regional Manager, but extensive travel throughout the UK to attend meetings 
with existing or new intermediaries will be required. 

Applications are invited from: 

• Graduate qualified accountants or solicitors with at least five years experience, 
ideally in the areas of taxation, trusts, investment management or banking. 

• Candidates should be confident in terms of meeting targets and proven sales 
skills will be an advantage. 

• Computer literacy is desirable. 

In return, we offer a fully competitive salary, plus mortgage subsidy, 
wm-contributory pension and life assurance. 

Please write in the first instance, enclosing a full CV to Paul Feetum, Regional 
Manager, Royal Bank of Canada Europe Ltd, 63 Temple Row, Birmingham B2 5LS 


ROYAL BANK 
OF CANADA 
EUROPE LIMITED 


Would you like 

a private Swiss bank behind you 
and a great career opportunity 
in front of you? 


This is ;>n opportunity for inndidutos with a financial background, not 
nocossarih in sales, to head the I K marketing 
of a well established private Swiss bank, based in their London office. 


The Bank 

A well established private Swiss 
bank founded over 150 years ago. 

Specialises in Personal Asset 
Management. 

Experienced management geared 
to working with a wide variety of 
international foundations, trusts 
and substantial private individuals. 

Long term commitment to 
marketing the investment services 
of the group in the UK. 


To market the investment sendees of 
a well established private Swiss bank 
in the UK. 

To raise the group’s profile amongst 
solicitors, accountants, EFA's and high 
net worth individuals. 

To capitalise on your experience in 
the financial arena and your ability to 
handle clients. 

To make the most of the group's long 
term commitment to marketing. 



If you feel this opportunity might suit you, send your CV with a covering letter to: 
Box No A2197, Financial Times, No 1 Southwark Bridge, London SE1 9HL 

IMPRESSION MANAGEMENT 




— - • • 








II 


FINANCIAL. TIMES FRIDAY NOVEMBER 18 11>1M 


EUROPEAN INSURANCE RESEARCH 

a r client is an Independently-owned. international l it rest men l blinking tint! stockbruking 
firm, with an unrivalled reputation for its investment research within the European and I S 
markets. 

The firm is currently sucking a Senior Investment Analyst with u background in 
research, analysis in the insurance, banking sectors. 

The idea! candidate will he a graduate, with possibly a business nr professional 
qualification, and should have several years experience with a broker- fund management 
house or within the insurance industry. He She should have exceptional analytical expertise, 
excellent written and oral communication skills and rhe flexibility to work effectively wirhin 
a small team. 

There is a need for a high degree of fluency in business-based computer applications and the 
abiiitv to produce concise reports, with a clear and reasoned investment conclusion. 

This is an exceptional opportunity for the right individual with a keen interest in the 
insurance sector and the determination to succeed within an established and 
rapidly-growing firm. 

Remuneration will reflect our client's ambition to attract a candidate of the 
highest quality and includes a highly competitive basic salary, 
performance related bonus and benefits package. 

To apply, please write or contact Jonathan Evans at the address below, j&rz 

Sammons Associates. Executive Search & Selection 
Poupart House, 46 Fisb Street HiO, 

London EC3R 6BR 

Telephone office: 071 895 8750 Fax: 071 623 6011 
Telephone home: 0323 833846 Fax: 0323 833983 


T 



Innovative, dynamic aim reftWARD w nuNKiNc, Cedcl b responding to today’s 

INTERNATIONAL FINANCIAL MARKET AND SHAPING ITS FUTURE. OUR BUSINESS B THE OtOWAI 
CUARIN6 AND SETTLEMENT OF FINANCIAL TRANSACTIONS, INCLUDING SECURITIES 
LENDING/bORROWING AMO CUSTODY SBKVtCES. WE HAVE HEADQUAftTBtS M LUXHfflOUnG, 
OFFICES Ut THE WORLD’S MAJOR FINANCIAL CENTRES AMD OVER S00 STAFF. 

We have a dear direction tor future growth. Key to our plans is the appointment of Product 
Managers In dw following business arras: 


* Securities Lending 


Your role win involve the research, strategic development and management of our borrowing and 
lending business. Including die roll out plan into domestic markets. 


* Securities Database 


Your objective wHI be to Investigate and identify improved pricing and information services 
consistent with d a iabase requirements in support of our custody services business. 


* New Issues 


You wffl develop a strategy and manage the resources Involved In Identifying, developing, testing and 
defivertng new issue activities. 


* Custody 


You wffl provide die strategic and management expertise to fad Bare die development: launch and 
review of custody products and services. 

For all positions, we are looking for people with well-rounded industry experience, ideally gained In 
a global environment. A detailed knowledge of your specialist market is mandatory. A femi Rarity with IT 
systems is important whfle fluency in a language other than Engfish would prove useful. 

hi return, we offer the opportunity to work in an exciting intern a tional environment. The 
remuneration packages are extremely attractive. You wfR be based either in Luxembourg or London, 
ahhottgh some international travel Is to be expected. 

To apply, please send your CV aloog with a coveri n g letter and recent photograph, 
quoting reference FT I A/I t. to Cedel Human Resources Dep ar t m ent. 67 Bd Grande- 
Duchesse Charlotte, L-1331 Luxembourg. 


o# 

0909 
9090 
90 

Our people make the difference 


cedel 


Newton 


Pension Fund Marketing 

Pooled Pensions 


Our client, Newton Investment 
Management is one of the UK’s most 
successful fond managers, with plans to 
merge soon with Capital House 
Investment Management which will create 
a new company with £8 billion of assets 
under management. Following strong 
growth in its pooled pension business a 
senior marketing professional is now 
sought to join the pooled pension fond 
team based in the City. 

Your brief will involve making 
presentations to existing and potential 
clients and to professional intermediaries. 
You will also be involved in initiating and 
implementing new strategies for product 
development and promotional literature. 


The successful candidate is likely to be 
aged over 30 and able to demonstrate a 
record of excellence in winning new 
business in the UK pension fond 
marketplace. With a background m 
investment, you must possess outstanding 
communication and presentation ability. 
Particular importance will be attached to 
your marketing skills. 

Remuneration will include a highly 
competitive basic salary and bonus 
scheme with a fringe benefits package. In 
the first instance, please send a full CV 
including salary details quoting reference 
1063 to Fiona Law at 
FLA Ltd, 21 1 Piccadilly, London . 

WI V 9LD. Tel: 071-738 9732. 


FLA 


SEARCH. SELECTION 
AND CONSULTANCY 
SERVICES 


Who better to work with 
in the world's 
largest untapped market? 


Substantial Package The City 


At Moscow Narodny Bank, we're entering what promises to be 
one of the most exciting periods of business growth in our Trade 
Finance area. 

The reason is simple. 

As a British bank - with 75 years' experience in the City arid 
a unique network of contacts across Russia and the republics of the 
former Soviet Union • we are better placed than any of our 
competitors to maximise business and minimise risk in the world's 
largest untapped market. 

Using our knowledge of key niche markets and bunching 
innovative new services to meet our clients' needs, we have bid 
the foundations of a potentially very lucrative - and already 
profitable - East-West trade portfolio. 

Concentrating on Trade Finance and Countertrade, you wifi 
play a high-profile role in (he Bank's business development, both 


in Weston as wefl as: Eastern markets. In addition, -you will. be. 
able, to identify strategic opportunities as well as lead and motivate 
a professional team.. 

To hold' your own at ■ sefttonlevel negotiations around 1 the 
world, you'll need ' strategic ability and strong 'technical 
understanding, derived from .at least 10 years' Trade Finance 
■ experience. A proven. presenter, you should also be. abb. to take 
a broader view, establish your credibility quickly and. 
communicate ideas persuasively. 

In retem, you'll enjoy alcvd of re m u n e rat ion, and career opportunity, 
which more than match those of our competitors. 

To apply, please write with full career details - stating your 
current salary and benefits package - to John Glover, Assistant. 
General Manager Human Resources, Moscow Narodny Bonk . 
Limited, 81 King William Street, London EC4P 4IS. . 


Moscow Narodny Bank limited 

— The Bank for Easi-West Trade. *■*■*■■■ 


Senior 

Manager 

Private 

Placements 

Middle East 


The HSBC Group is one of the largest banking groups in thic, world. The Group 
employs around 100.000 staff in over 3300 offices worldwide, of which some 600 
are In Asia. 

A highly profitable Middle Eastern, associate of HSBC which provides a wide range' 
of products and services through a network, of branches, has recently created this 
new position for a Senior Manager. Private Placements, repotting to the Head of ■: 
Private Banking. . ’ ' • ’ • 

From your Middle Eastern base., you wilt be responsible for . identifying and 
marketing placement opportunities to high net, worth and institutional investors. 
Although initially relying on leads generated from associates in Asia and Europe, 
you will eventually draw on your marketing Skills to originate your own placement - 
opportunities. 

Aged between 30 and 40 and uf graduate calibre, you will need at least 6 years' 
experience in either private, commercial or investment banking - experience which 
will ideally have been gained in a Middle Eastern client investor environment. It 
would be an advantage if you were fluent in both English and Arabic! 

As well as a salary reflecting experience, you will enjoy normal bank jpg. benefits, . 
usual for a position of this type. ... 1 . . ‘ . 

Please send your details in writing to John Small. Manager Executive Resourcing. 
HSBC Holdings pic. 10 Lower Thames Street. London EC3R 6AE Tel: 071 260 
0637. Fax: 071 260 9322. All applications must be submitted by Friday. 25th 
November. 


HSBC Holdings pic 


n 


^ Head of Marketing ^ 


Excellent Salary and Bonus Scheme 


The investment Management subsidiary of Singer & FYiedlander, the independently quoted 
Merchant Banking Group, has in excess of «£1 billion in discretionary funds under 
management The Company currently manages a variety of portfolios on behalf of individuals 
chanties, pension funds and government bodies. uiuiviuudib. 


s 

~ ~ - T I "•WA# (gVTWSjUIVIIt MWIW- 

Kite S i S2s C ° ntinUed SUCCeSS ’ W£ nOW "* t0 appoint a high «"»« "arteteer to develop 

Accountants and Solicitors, there will be scope to develop the business on an international basis. 

negotiator and relationship builder and ha* a thorough 

This key role provides enormous potential to contribute to the overall business growth of the Company 


Con iitl fntkil Reply Ser\ice 


Consultants in Search and Selection 


Confidential Replj Sc r v j e t. 


' on lid cii I hi I lit.- ii I \ Sc I 


CURRENCY AND MONEY MARKETS 

Senior Market Analyst / High-profile Treasury Team 
Central London / to £ 40/100 + car 



Our client, a imultibillion-mmovcr pic. has a 30-strong 
treasury which has established an impressive reputation 
among the financial community. It is now looking to HU 
this key position. 

Initially, you will be a member of the team responsible 
for managing the group s exposures and dealing activities 
across both money and currency markets with an emphasis 
on foreign exchange. 

This role requires an in-depth knowledge of foreign 
exchange and related treasury instruments. In addition, 
an awareness of. and interest in, the oil/gas commodity 


and related derivative markets would bean advantage 


LoadM (U7liT]oww NnaJaghan (tali -1543791 

itOT’i 



13\ Consulting 
-L/jl Group 

( *v .liivcinfii-: 


oni id vn( i.i I Kt pi v Si-r v iui 






Con I'id cni i ; ( | 






financial times 


FRIDAY NOVEMBER 18 1994 


111 


COMMERCIAL BANKING EXECUTIVE 

N M Ri'thschilJ ot Sons Uimtnj a a leading international merchant hank with a strong 
'nutation tor the quality ot us corporate financial service*. The Banking Division u> 

1-011* LXpandini; its corporate lending activities to take advantage of an increasing 
umber of business opportunities. Consequently there is an opportunity for a young 
- mmerci.il banking professional to join an established London -based team. 

The appointment offer, excellent scope for career development. From rhe ourscr, the 
ccessiu) canJidjre “'ill have significant personal responsibility for existing clients: there 
will he increasing involvement in marketing services to clients. As well as challenging 
Ppnrtunirie* in areas such as syndicated loans. MBO finance, and acquisiimn h nance, rhe 
Di\ ision provides progressive and structured training to help Executives develop their 
expertise and prepare for greater responsibility. 

Candidates will he graduates with not less than rwn years' commercial banking 
experience. Credit analysis skills will be important, together with the ability to write lucid 
reports. The rule involves irurling closely with existing and prospective clients as pan of a 
cli^e-lcmt team. Initiative, good communication skills and intetpersonal qualities are vital. 

The remuneration package will not be a limning factor for the right, candidate. 

In rhe first instance, please send a full curriculum vitae (indicaring present 
remuneration) in the strictest confidence, to Sara Grcvc. Personnel Manager, N M 
Rothschild St Suns Limited. New Coun. St Swiihin's Lane. London EC4P 4DU. 



N M ROTHSCHILD & SONS LIMITED 


YOUNG SYNDICATIONS MANAGER Salary E40-E50.000 

This major international bank seek a banker aged 28-33 years able to source and sell 
down major sovereign/commerdal lending transactions. 

TAX BASED STRUCTURED FINANCIERS Salary E35-E60.000 

Several prime UK banks urgently seek marketing orientated ‘commercially aware”, tax 
solicitors or AGA's experienced in a combined structured finance, capital markets, 
derivatives, client advisory, product development role. 

UK MIDDLE TICKET LEASING E30-E40,000 

Several City vacancies for graduates formally trained in credit evaluations documentation 
etc. coupled with the ability to source structure and dose deals (£1-£10M +). Age range 
27/35 years. 

PROJECT FINANCE MANAGER (ENERGY) Neg £45,000 

Graduate banker aged c30 years with in-depth anaiysis/computer modelling experience 
plus several years negotiating skills. 

ECONOMISTS X 2 £40-£50,000 

Two major UK fund managers (£20 B. +) require No. 2 economists to provide economic 
advice to CIO’s. Will be educated to MSc and with a macro bias, to compliment a wide 
range of investments. Securities/AM experience essential. 

JUNIOR FI FM/ECONOMJST/BOND ANALYST £30-£35,ooo 

UK FMs seek the above to train as, a Fund Manager. Research bias essential, ideally in 
short term Investments. 

INDEX MATCHING FUND MANAGERS To £45,000 

Two roles exist on passive funds covering UK and international indexes. Working within 
benchmarks candidates will Implement tactical asset allocations, deal heavily in equities 
and Index derivatives and understand stock lending. Three years management of funds 
experience essential. 

SPOT & FORWARD FX DEALERS EV.Neg 

We urgently seek applicants experienced in the above mentioned in all currencies but 
especially EMS. 

FIXED INCOME BOND SALES EHighly Neg 

Several clients seek bond sales people with 2 years plus experience selling to institutions 

in Europe/UK. 

Detailed CVs to BRIAN GOOCH or EDWIN LAWRIE 


OLD BROAD STREET BUREAU 

Search & Selection Consultants 


65 London Wall. London EC2M 5TU 
Tel: 071 -53S 3991 Fax: 071 -588 9012 



Qatar General 
Petroleum Corporation 

QATAR GENERAL PETROLEUM CORPORATION (QGPC)bt|xr»ati(Httloacoo^x»nyorQa1arwithitshcadomcc 
based Id the capital dry of Doha. QGPC 'sakurge prognsbe organization with a successful history In the hydrocarbon 
industry and an exciting programme of de-vdopments indudmg the world's largest proven gas reserves ‘The North 
Fidd’, These development (dans now call f<w a number oTttgb cal&re prafasioads to BU the fallowing key positions: 


MANAGER CORPORATE FINANCE 


Duties 

The successful applicant will report to the Director Finance and will manage the activities of 15 staff 
involved in: 

■ Computer modelling of the long-term capital requirements of the Corporation's multi-billion dollar 
oil and gas projects, joint ventures and investments; identifying sources of finance including revenue, 
bank loans, and export credits; structuring and negotiation of packages with financial institutions: 
interfacing with financial advisers; monitoring and controlling drawdowns: and checking, approving 
repayments, and 

■ Consolidation and analysis of group accounts. 

Qualifications 

Candidates must have a university degree (ordinary masters or doctorate) in economics, accounting or a 
related field. Professional accounting status (chartered or certified) u> desirable. 

Experience 

A strong background in management, major project financing, the oil and gas industry, and energy 
accountin'* is required. The successful candidate will have worked for an oil and gas major und/or a major 
bank involved in large oil and gas project financing at a senior level for 10-15 years. Ref. FIN0I. 

THECOUNTRY 

Geographically. Qatar is a peninsula projecting into the Arabian Gulf, with a warm coastal climate. Whether you 
arc playing golf, relaxing on our beaches, joining in a range of sports offered at our clubs or just savouring the 
warm welcome and the enjoyable way of life, you will find that Qatar is the undiscovered pearl of the Middle 
East. This forward progressive, independent state is one of the most accommodating to the western culture where 
wives and families are encouraged to participate fully m the community. This together with the very obvious 
financial rewards, add up to one of the most attractive packages currently available in its Middle East. 

EMPLOYMENT PACKAGE 

The rewards, like the challenges, art substantial All posts offer tax free salaries on long term contracts. Tree 
spacious air-conditioned accommodation, free medical and denial care, children's education assistance, gener- 
ous annual leave (with paid airfares), transport allowance and heavily subsidised sporting and social facililics. 
Cand idates who re™* have the appropriate qualifications and experience to be considered should send thdr 
resaJW5 wth a covering letter showing tow (toy meet the specific requirements of the position applied 
for. They should quote appropriate Reference Number, details of current salary, dale of birth, availability and 
contact tefephone/fex- All applications should be seal to our Representative at the following addrcss: 

nf\| iCTARnUT Dermis Davfdnon, QGPC AdvwlisamMit. 
nUUwlHDUIII Ro us tabout Publications United. Suite 5, In te rn ational Base. 

PUBLICATIONS LTD. GreamreflRosd, Aberdeen AB1 4AX. UnAarf Kingdom. 




ENRON 


Enron Corp- is the largest integrated natural gas company in North America with a growing worldwide asset base of approximately $11 
billion and over 7000 staff. Enron Europe is part of the Enron Capital & Trade Resources group and is responsible for providing value- 
added merchant services to its customers in all stages of the Energy chain from production and logistics to marketing. The Company is 
committed to develop innovative products in the natural gas, gas liquids and electricity markets and invest with its customers to enhance 
their methods of doing business. 


MANAGER / DIRECTOR ENERGY SERVICES 

The position will play a key role in the future growth of the 
Company by identifying, developing and closing new market 
opportunities. It will involve working closely with customers and 
suppliers to maximise the business development potential of the 
Enron Tfeam as a whole. 

The successful candidate must possess sound academic credentials 
with at least 5 years of relevant experience, demonstrating facility 
with technical and financial issues (including Derivative products) 
preferably within the energy industry, and proven ability to 
aggressively identify and close on opportunities. 

The successful candidate will have the highest degree of initiative, 
be able to rapidly identify/evaluate new opportunities utilizing 
sound commercial acumen and be capable of implementing 
strategic decisions that will increase overall company performance. 
A broad experience in European markets preferred. 


ANALYSTS 

The Company is seeking Analysts to provide analytical support to 
the commercial departments. Based in London and reporting to the 
President, you will develop detailed analytical spreadsheets (Excel 
based) relating to projects, customers or markets. You will provide 
regulatory, risk management and pricing and proposal analysis. 
The position is rotational and you could initially be placed within 
one of the growing business units of Energy Supply, Marketing, 
Trading, Risk Management or Finance & Accounting. Each 
assignment will last approximately a year. 

Highly motivated, self-starters, the successful candidates will 
possess an engineering or business related degree from a top 
university with a minimum of 1 years experience in industry or 
financial services. 




Enron offers a progressive salary and flexible benefits package, including a share ownership plan. 
Interested parties should send a detailed CV with current salary package, to arrive no later than 28th November, to: 

Human Resources Department, Enron Europe LtdL, 34 Park Street, London W1Y 3LE 


[L'SMSXM] BASSE) 

'SCIB WBAB0K1S 'M)G51BAKR? 

seeks 

EXPERIENCED 
OIL TRADE MANAGER 

A competitive remuneration package 
(including commission and benefits) is 
offered to the right candidate who will be 
fluent in Russian and have experience of 
trading oil/oil products on CIS markets. 
Apply to: 

Box A5502, Financial Times, 

One Southwark Bridge, 

London SE1 9HL 


Trainee Investment Manager 

A trainee investment manager is required for our European 
Equities department Applicants must be a graduate with, a 
minimum 2.1 degree, be fluent in a European language (other 
than English and French), numerate with an analytical approach 
and have good oral and written communication skills. 

The successful applicant will be expected to undertake courses 
of study to meet IMRO's minimum requirements and a further 
investment related professional qualification. 

Previous experience in the financial services sector is not a pre- 
requisite. 

Written applications, attaching a curriculum vitae and including 
current salary, should be received by 5pm on Friday 25 
November 1994 addressed to: 

Mrs L A Loomes 
AIGAM International Limited 
7/1 7 Harbour Yard. Chelsea Harbour, London SW10 OXD 
Member of IMRO 

STRICTL Y NO AGENCIES 


PARTNER 

EXECUTIVE SEARCH 
GLOBAL FINANCIAL MARKETS 

ACHIEVE INDIVIDUAL COMPENSATION UNRIVALLED 
IN THE EXECUTIVE SEARCH INDUSTRY 

The Tallis Group is an independent executive 
search firm that works for a select number of 
investment banks and asset management 
companies on a range of London-based and 
international assignments. It has a reputation for 
producing a high quality level of service in a 
competitive environment. 

There is an opportunity for a Partner to join this 
busy practice. You will have a number of years' 
experience of executive search (not selection) in 
relevant financial markets and as such will be 
achieving a consistent level of personal billings. 

Find out more by contacting in strictest 
confidence, 

Edward Clark, Chief Executive, 

The Tallis Group, 

95A Chancery Lane, WC2A IDT, 

Tel: 071 430 1247 



APPOINTMENTS WANTED 


COMPANY DOCTOR 

Ex. PLC Chairman 
Internationally experienced with extensive entrepreneurial 
background across widely diverse business sectors - 
engineering; construction; oil; FMCG manufacturing; leisure 
etc., excellent interpersonal skills: first class team leader and 
motivator. 

Skilled top-level negotiator - sales & marketing; financing, 
acquisitions; mergers etc.. Central London based. 

Interesting and challenging assignments welcomed - any 
location. 

Write la: Box A2127, Financial Times, 

One Southwark Bridge, London SE1 9HL 


BANKING RECRUITMENT 

Credit Officer £25-30/000 

An outstanding opportunity to join one of Europe’s most prestigious banks. The role will involve 
analysis and rerommendation/approval, with delegated authority, credit proposals on 
structured products and special counterparties. This wiD include all aspects of credit exposure 
management particularly relating to new products/exceptional translations. The successful 
applicant will be a resilient, self confident individual with excellent communications skills and 
4-5 years experience gained in a Securities environment 

Corporate Banking £60-70,000 

Our client, a well established International Bank, is looking to recruit a senior manager with 
experience of marketing to top UK and European corporate clients. Currently working for an 
international or clearing bank, candidates will have a proven track record of successful business 
development and the necessary drive and enthusiasm to build and eventually lead a team. 

Please write bt txmSdotce IndtuBng detaSa ot emreat nmaaeeaaaapadtagt or tekphooe 
Acer Brooke*, Associate Director. 

Senior Swaps Marketing to £100,000 

We have been engaged by a highly progressive International Bank which is committed to 
expanding their Swaps Marketing department They require quality candidates with a first rla«w 
established client base to take responsibility for the advancement erf its sales capabilities in a 
complete range of products. The remuneration package is highly negotiable together with a 
performance related bonus. 

Proprietary Trader £80-100/000 

One of the world premier Merchant banks requires an experienced Proprietary Trader. The ideal 
candklatewi]} have extensive trading knowledge of all fixed income products and will be familiar 
with using complex hedging strategies. This is an exciting opportunity for a motivated 
individual as the position comes with a highly competitive remuneration package as well as long 
term career advancement into a Senior Management role. 


Bent wifein mn R rfr i mr fnrftwft i g rlrfnffi qfe n are nf i 
CjUtbam. 


i package or telephone 


GORDON BROWN & ASSOCIATES LTD RECRUITMENT CONSUUANTS 

4th FLOOR. 2 LONDON WALL BUILDINGS. LONDON EC2MSPP.TEL 071-628 7601 TOL 071-638 2738 


Boldi n BB let 


im 




FIXED INCOME SALES 

To £75,000 + Substantial Benefits 

A highly respected City bank requires a Sales Person to supplement the 
expanding Fixed Income division. The successful individual should have a 
strong academic background coupled with at least two years multi-currency, 
UK or German institutional sales experience. 

CONVERTIBLE/WARRANT TRADERS 

£ Highly Competitive 

We are acting on behalf of a major international Banking Group who currently 
seek two convertible/Warrant Traders. Candidates, aged 25-30, should 
possess in-depth technical expertise together with two to four years relevant 
trading experience. 

Please contact Keith Snow. 

Jonathan Wren A Co. Limited, Financial Recruitment Consultants 
No. 1 New Street, London EC2M 4TP TeL 071-623 1266 Fax. 071-626 5259 


JONATHAN WREN EXECUTIVE 



CREDIT AGRICOLE ^ 


OFFICER/ASSISTANT MANAGER 

COMMODITY AND TRADE FINANCE 

Salary Negotiable 

Due to increasing business we wish to create a new position in our Commodity 
and Trade Finance Division. 

Prime responsibilities will be the support of the marketing team. The 
successful applicant will have the ability to analyse risks from a credit and 
transactional perspective in order to prepare credit proposals and 
fodlhy/security documentation. A sound understanding of the financing tools 
used in secured transactional finance is paramount, coupled with a 
comprehensive knowledge of the workings of the London and US commodity 
terminal markets and the various hedging techniques available. 

The ideal candidate will probably be aged between 28 and 35 and currently 
working in a similar environment A basic knowledge of French is desirable. 

To discuss this excellent opportunity please contact our retained consultant 
Nick Lacy-Hulbert of Wltdams Wingfmki Ltd through wham all responses wfff 
be channelled. 


Williams Wingfield Ltd, Search & Selection Specialists 
Astral House. 125.139 Middlesex Street, London El 7JF 
Tel: 071-623 9493 Fax: 071-626 1263 




Williams 
\\ it infield 


r 








Emerging Markets 


Emergmg Markets 


5 




Trader 


US Investment Bank 


£ Excellent 


London 


Our diem is a highly successful US Global investment 
hank with an impressive track record in the emerging 
markets arena- They are currently looking to develop 
their emerging markets trading desk with the recruit- 
ment of an experienced LDC Debt and Equity trader. 
The successful candidate will be res risible for 
developing and executing trading and positioning 
strategies in emerging market debt and equity'. Then; is 
a particular emphasis on the fixed income markets of 
Eastern Europe, Turkey and Moroxo and the equity 
markets of Eastern Europe, Africa, Turkey and Greece. 
There is also 3 concentration on the external debt of 
Latin America, Eastern Europe and Africa. 

Candidates should possess: 

• Ideally three years LDC trading experience within 
the Latin American, Eastern European and 
African markets. 


1 Specific recent involvement in the local debt 
markets of Turkey and Morocco. 

1 Expenence of the equity markets of Turkey. Greece 
and Morocco. 

A srrung quantitative background with highly 
developed analytical and credit skills 
Fluency in French and Turkish. 


Tills is an excellent opportunity tor a raienred and 
ambitious trader to develop cheir career in a well 
respected global institution. Interested cindijates 
should contact Gavin Starling at Michael Page City. 

Page House, 39-41 Parker Street, London 
WC2B 5LH. 


AH applications will he treateJ in the strictest 
confidence. 


Our client is a major US hanking institution.: with an 
enviable reputation within the Emerging Markets arena. 
They have a dynamic and aggressive approach 
n ■ developing their business on a global basis. Recent 
expansion has created an opening for an EMERGING 
MARKETS ANALYST to join a highly successful desk. 

The successful candidate will he regxmsible for 
researching the debt and equity markets primarily of 
Russia hut also with emphasis on Eastern Europe arid 
Africa. Candidates will be expected to develop 
po'itionint; strategics in these markets. 

Candidates should possess: 

• A minimum ot 12 months experience of emerging 

market research. 

■ A ‘•rrong quantitative background and 
higlih developed analytical skills. 


markets. Candidates should also have * dirisrt 
knowledge of Russian financial instruments (GKO’s 
Ministry of finance Bonds and Rubfe/USEi futures). 
A degree from a well regarded University with a:i 
significant focus on finance and recounting* ‘ . y 


This position represent’ an excellent opportunity tor 
forward thinkiriff arid dynamic individuals i to joiria 
premier global investment bank. with a. highly soccessfoi 
emerging markets group. Interested candidates should • 
write to Gavin Starling* Michael Page City* Page 
House, 39-41 Parker Street, London WC2B 5LH. 
Telephone 071 831 2000. / ’ * • - ' 


All applications will be treated in the strictest 
confidence- ; : ' 


Michael Page City 


In 11.-111.1 1 K<ft.i I Ri-tnnrriK-nt 

London Paris Frankfurt Hong Kong Sydney 


Michael Page City 

Inienunoonl Rcvnnrmenr Consultant 
London Paris Ftankfint Hong Kong Sydney 




European Public Sector 

Analyst 



London 


Attractive Package 


PIA Supervision 

Review Team Member 


Our client is .1 global financial service, institution which has -.i communication skills, strong interpersxn.il skill*, and be ,i 

reputation for excellence. The London office is expanding due confident self-starter. Basic financial analytical -lulls are 

ru growth m demand for its services .rnd the* hn> created .in essential and European language skills, particularly fluency in 

opportunity within the Public Sector Group. Italian. Spanish or German, would K* of benefit 


They now seek an individual rn :m;ilyse and evaluare rhe 
financial health and credit quality of regional .uid local 
governments and other public service providers in tieUs such 
;ts housing, healthcare and education, throughout Europe. 


Tins is an exciting position for someone with a keen interest 
m new approaches ru rhe financing of government and 


public services. 


The work will involve meeting regularly with senior 
government and agency officials and following sectoral 
Jeve Laments. Additionally. to successfully evaluate rhe vanous 
public sector entities, rhe c.tnJidare will need ro unalvse their 
financial performance, their efficiency and effectiveness and 
the policy environment in which they operate. 


There are several avenues for diversification within che nile 
and for the right individual, good progression in ternu of 
responsibility and position is anticipated. Eventual relocarn m 
ro other European offices may be a possibility. 


Out client will offer an attractive remuneration package hoed 
on a genemus basic salary which will entireiv reflect experience. 


The successful candidate will be a graduate, preferably in 
public policy studies, economics or finance with some public 
sector expenence. Due to rhe high profile of the role, 
applicants must Have excellent written and oral 


Interested applicants should contact Karina Pietsch on 
071 831 2000 or write enclosing a curriculum vitae at 
Michael Page City. Page House. 39-41 Parker 
Street. London VVC2B 5LH- Fax: 071 405 9649. 


The Securities and Investments Boards wide tanging 
ivsp msihilitie? .is lead regulator under the Financial Services 
Act include ■sverseemg rhe activities ot the Personal 
Ime-tmvnr Authonty - ihe newlv formed mam regulator for 
rhe marketing of retail investment products and services to the 
jM.*nc-r.»l public. 

51 fi ha* a new supervision department dedicated ro ensuring 
rhat PIA deliver- high standards of mvesne protection and 
rojuLitk'n. SIB nuw wishes to appoint a member for rhe review 
turn within this department. Reyvining to the team manager, 
responsibilities will include: 

• Cruic.il rev lew of regulatory procedures and activities .icross 
rhe bre.uiih of PIA. 

• On-«w assevsitvent of PlA's monitoring and enforcement 
.icriv Kies, inclidinv! participation in visits to member firms. 

• Ciinrnbun, -n ro both the Jevel.’pment of policies and 
procedures for review and of st.md.irJs for asst effective 
rcgul.ithm. 

This review unit complement? and informs a 
supervision unit which assesses PIA’s management 


plans, performance against plans and rhe aptness and adequacy 
id its policies and resources for fulfilling its regulatory functions. 


Applicants should be at least of graduate calibre, may haw a 
legal or accountancy background, or.a relevant industry . 
qualification, and should have expenence of or fiuniiinricy with 
some of die following areas: 

• FSA compliance in retail financial services (whether in the - 
industry or in regulation). 

• Rerail financial services and markets. 

• Private customer portfolio management. .. 

• Training and competence. 


An aptitude for critical analysis together with good • 
communication dulls, both written and oral, are essential as is a 
mature personality widt sound judgement. 


Interested applicants should in rhe fust Instance contact 
Sue Lin tern ar Michael Page City, Page House, 

39-41 Parker Street, London WC2B 5LH, quoting reference 
208977. Telephone 071 83 1 2000. 

Closing Dote 28th November 1994. 


Michael Page City 


International Recruitment Consultants 
London Puis Frankfurt Hong Kong Sydney 


Michael Page City 


Inn-mat tuna l Recruitment Consultants 
London Paris Frankfurt Hong Kong Sydney 




*».... -I.—- - . ~ — . 


Equity Derivatives Trader 


Leading UK Investment Bank 


City 


£ Excellent 


APPOINTMENTS 

ADVERTISING 


Our client is a leading investment honk and a recognised 
leader in die innovation and trading of derivatives 
products. Their Equity Derivatives Division In particular 
enjoys pre-eminet status and an excellent reputation for 
trading and marketing within the global market. 


• Have experience of trading options as principles 
and exploiting arbitrage opportunities to minimise risk. 
■ Extensive experience of die design, development and 
modification of computer models for asset swapping. 


•-*« 

u 

‘H.** 

m 


As part of their global expansion strategy and to maintain 
diis premier position, die bank is now seeking to recruit 
an additional trader who will be responsible for analysing 
global market trading trends and identifying potential 
opportunities in the convertible bonds market. 

Candidates of interest will have: 

• A highly quantitative background and most likely be 
educated to Ph.D level in mathematics or a related 
numerate discipline. 

• Display in-depth technical knowledge of option theory 

and exhibit the analytical and mathematical skills 
necessary to price, trade, hedge and risk manage 0KU 
exotic options. pfffojj 


This is an excellent opportunity for an ambitious 
quantitative trader to join a dynamic and innovative 
environment, and a ream recognised throughout the 
market for their flair and trading excellence. 
Remuneration, based around a first rate salary is highly 
attractive and is indicative of the high calibre candidates 
we wish to attract. 


In the fine instance, interested candidates should contact 
Karen Gay at Michael Page City, Page House, 

39-41 Parker Street, London, WC2B 5LH, quoting 

reference 21 1289. Telephone 071 83 1 2000. 

fitx 071 405 9649. Alternatively, send your CV and full 

a salary details to Her at the above address. 

All replies will be treated in full confidence. 


appears in the UK 
edition every 
Wednesday & 
Thursday 
and in the 

International edition 
eveiy Friday 


Project Finance 
Manager 


Successful multi-national company (£9 billion turnover) 


Paris 


£ Excellent Package 


For further 
information please 
call: 


Our client is distinguished by its company 
spirit and leading position in mosr of its 
activities. Its Imcmutii mal Building and 
Public Works Division can rightfully 
claim in be one of the only groups to have 
maintained .in increasing level of business 
with exceptional conditions 
of profitability. 


Aged 28/32 you should have a minimum 
of 4 years International Project Finance 
expenence gained in a well recognised 
Bank. You will have a strong academic 
background and outstanding presentation, 
communication and interpersonal skills. 
Fluency in French is essential. 


Andrew Skarzynski 
on 

+44 71 873 4054 



Michael Page City 

Intemufcxu] RecniianeflcCoanHona 
London Pun Frankfiirt Hong Kang Sydney 


Philip Wrigley on 
+44 71 873 3351 


This division is now extending its Projecr 
Finance Deportment to rake ad van rage of 
new business opportunities. Winking as 
parr of a small ream you will play an 
active role in all aspects of the deals 
kindled by tin- group, whose ambition is 
ro pnu ide rhe all-round financial 
expertise required to carry out 
projects from start to finish. 


This is an exceptional opportunity ro work 
with a market lender where you could 
benefit from a varied and long term career. 

Interested applicants should fax a full CV 
and current salary Je tails to Alexis de 
BretteviUe (Fax+47573918) or write to 
Michael Page Lnematkmal, 3 boulevard 
Bineau. 92594 Levallois Perret Cedes, 
France quoting ref 
ADB10532FT. 


Joanne Gerrard on 
071 873 4153 


Michael Page International 


InrvnurkHVtl RoCnrirracnr GeMihuni* 

Lundon Paris Amsterdam DuwefeW Frankfurt Hong Kong Sydney 


xk **- - < 'V-y 




SENIOR OPERATIONS MANAGER 


£65-75,000 + Banking Benefits 


Our client has a challenging opportunity within their International Operations area. The goals set for the successful 
Individual will be to continually develop and improve the operations process through the use of modern 
management methods. The identification of key areas for improvement and the implementation of change through 
re-engineering techniques will be primary responsibilities. Through strategic reallocation of resources you will 
strive to streamline and automate many aspects of the operations areas and seek to put in place continual quality 
initiatives. 


This highly rated Global Investment Bank is without doubt one of the leading participants in the investment field. 
Due to the diverse nature of our client’s business and their complete commitment to the development of their 
staff, they are able to offer unrivalled career opportunities for the successful individual. 


The suitable candidate wiil possess a very special combination of skills and experience. You should be aged to 
35 and have a wide ranging knowledge of the recognised banking products ie bonds, equities and derivatives. 
Your track record to date will show positive career progression within a leading financial Institution. You must be 
confident and outgoing with a creative flair and a sense of humour. 


For further details regarding both the company and the actual role, pi rase send your 
Cunricidtifti Vitae in confidence to Antony Regamey and Rupert Hardin£Batt at 

Michelangelo Associates, International Search and Selection, 

Austin Friars House 2-6 Austin Friars, London EC2N 2HE 
Tel: 071 973 0150 Fax: 071 972 0151/2 


Michelang elo 




Business Analysts 


Equities/Equity Derivatives 
Fixed Income/Fixed Income Derivatives 
Highly competitive City packages 

McGregor Boyall Associalcs are a specialist selection firm offering ZT ro a firm's ability to trade succe^fi.iK, i.a^a 

r?f ni ‘ tmf?,lt **"**? fo the investment banking successful appfcante will to ^ o{ 

community . We are cunvnlly assisting I wo major investment banks and to communicate them efletahSfe re€ £ uremeat 3 

of Its trading operations m London. To 

In both business areas a broad and deep product knowledge is ™" — 

mandatory leg. equity indices, fixed and floating debt, exchange 
traded futures and options. 0TU options, warrants, convertibles, 
equity swaps, structured products, etc). Also required, however, is a 
genuine appredafion and understanding of [he contribution made by 


To discuss these positions m strict*** 
please contact Karen mggma or CQoficknce. 

reference BAFT11, ra 017 i . qnotmg 

send yonr CV to us at McG ^T^/^* 0 ****- 
Sntheriand House. 5-6 Ai»fl ^? C ^ te3 ’ 

Fax: 0171 • 734 1297. WIV LAD. 


McGregor ■ Boyall 


Business & Tcchnologv' Selection nnaiH-ian^kctTDivKhTn ’ 



r P 





FWANCIAL TIMES 


FRIDAY NOVEMBER 18 1994 


V 


CJA 



RECRUITMENT CONSULTANTS GROUP 

2 London Wall Buildings, London Wall, London EC2M 5PP 
Tel: 0171-588 3588 or 0171-588 3576 
Fax No. 0171-256 8501 


CP TRADER 


CITY 


£40,000-£55,000 
+ PERFORMANCE BONUS 
Q MAJOR EUROPEAN BANK 

creaf ie ™. sees sustain6d demand for Commercial Paper and is upgrading its operation by 
We ' ,fl it IS new P° s '^ on within the existing Asset/Liabiiity Group of the Treasury Department, 
mv e applications from candidates with a minimum of three years' active trading experience, 

canrrrTf^^ 6 ,nvest0r base and current clearing/back office procedures. The appointed 
well * 3 • SSt anc * run a ^ ra ^' n 9 ar| d investment portfolio, improve distribution channels, as 
. as lncrea se the Bank's visibility with potential issuers whilst liaising closely with other 
. .. L 3r VP arts Remuneration will be negotiable in relation to experience, including a 

run Dank benefits package. Applications in strict confidence quoting reference CPT4996fFT, 
p ease telephone 071-638 0680 or fax/write to the Managing Director, CJA. 


SPOT FOREIGN 


EXCHANGE TRADERS 


London 


Highly attractive saiaiy plus bonus 


Our clients are a major international wholesale bank 
which is expanding its treasury operation worldwide 
and now has a significant opportunity for two spot 
foreign exchange traders to assist them in their strategic 
objective of growth. 


Candidates, who will be able to make an immediate 
contribution to our clients' success, are offered 
extremely attractive salaries and bonuses, with excellent 
opportunities for career progression. 


The successful candidates win have a minimum of five 
years' experience trading major currency crosses. The 
individuals must be strong team players, having a 
professional approach and a good knowledge of 
international banking. 


Please write with full CV, including salary history 
and daytime telephone number, quoting reference 
3069/FT. lo John Sleigh, Phillips & Carpenter, 2-5 Old 
Bond Street, London W1X 3TB. Tel: 071- 493 0156 
(24 hours). 


Phillips & Carpenter 


Selection Consultants 


Corporate Finance Director ^ 


High Profile Business Development Opportunity 


Leeds 


£ attractive package 


Our client is a long-established financial services 
group with an impressive client base located 
principally in the North of England. The corporate 
finance business of the group has seen significant 
growth over recent years under new dynamic 
leadership and a further senior appointment is now 
proposed in the expanding Leeds office. 


Yorkshire region. The working style of the Group is 
collegiate and the appointed candidate will benefit 
from the support of colleagues in the Group's offices 
in London and Manchester 


The role will involve business development and 
execution of transactions for public and larger private 
companies, including advising clients on mergers and 
acquisitions, MBOs, stock exchange compliance, 
financial restructuring, as well as flotations and capital 
raising. 


Candidates will be well-qualified, graduate calibre, 
corporate finance professionals, ideally with an 
established network of contacts In the North of 
England. Attitude and aptitude are more important 
than age, which is likely to be 30s to mid 40s. 
Energy, commitment with clear thinking and 
communication skills are essential for this 
outstanding and demanding opportunity. 


Reporting to the Managing Director the 
candidate will be expected to establish 
dose and effective relationships with a 
broad range of corporate clients in the 



Please send a full CV in confidence to GKRS at the 
address below, quoting reference 
number 943 TIN on both letter and 
envelope, and induding details of 
current remuneration and availability 


SEARCH & SELECTION 

park house, 6 Killing beck drive, York road, Leeds LSM 6UF tel 0532 484848. 

A GKR Group Company 




Leiter/in der Auslandsabteilung 
Osterreichische GroBbank 



In Osterreich sind wir als erfblgreich.es Spitz eninsti tut mit internationaler 
Ausrichtung am Wiener Bankenplatz bestens etabliert. Die steigende 
strategische Bedeutung imserer Auslandsaktivitaten bietet nun einer 
erfahrenen und fiuBerst ambitionierten Personlichkeit die 
Herausforderung, das Internationale Engagement unseres Institutes 
quahtativ noch welter auszubauen. 


Als Direktor/in unserer Auslandsabteilung nehmen Sie neben den 
ublichen Fuhrungs aufgaben die Gestionierung des gesamten 
Auslandsobligos sowie die Vertretung unseres Unternehmens auf 
internationaler Ebene wahr. Basierend auf den existierenden 
GeschSftsfeldem besteht Ihre Aufgabe in der systematischen. 
Weiterentwicklung unseres Auslandsengagments. Neben einer soliden 
bankkaufmannischen Ausbildung und emschlagigen Auslandserfahrung 
soil ten Sie gute Kenntnisse des intemationalen Kommerzgeschaftes 
mitbringen. Personlich erwarten wir von Ihnen ein ausgeprhgtes 
RisikobewuBtsein, unteraehmerisch.es Denken und entsprechende 
FtihiTingBerfalmmg. Wenn Sie sich von dieser - in jeder Hinsicht 
interes santen - Entwicklungsmoglichkeit angesprochen fiihlen, 
informieren wir Sie gerne naher (Referenznummer 321). 


DrI RANTASA 


Co nsulting 


A-1090 W?en, Mariannengasse 14/10, Tel.: 0043 1 402 14 10 


INVESTMENT ANALYST 


Leading European Boutique 


City 


The company is a leading specialist provider of unquoted debt and equity financing to a wide range of industries throughout 
Europe. The majority of its investments take the form of management buy-outs or private debt placements. Its fast growing 
portfolio currently stands at £2 billion and spans nine European countries. Owned by one of the hugest American financial 
institutions, the company is well known throughout Europe for its high calibre. 


As a result of its continued growth, the company is seeking to s trengt h en its junior-level investment staff. Applications are 
invited from graduates with ideally at least one year of experience in analysing companies for a major investment 
organization, accounting firm or management consultant Individuals who have completed a training programme with a 
respected investment bank, merchant bank or commercial bank are particularly encouraged to apply. A second European 
language, although not essential, would be preferred. 


Successful candidates can expect to be fully challenged in a fast pace, supportive environment Working in a small office 
environment will also require the analyst to assume a higher level of responsibility than typical in a larger firm. As part of a 
transaction team typically comprising three individuals, the analyst will be responsible for conducting intensive financial and 
business analysis of prospective investee companies. Opportunities in developing relationships with portfolio clients as well 
as managing and monitoring existing investments will also be available. 


The competitive remuneration package is designed to attract the best candidates available. 


Interested candidates should please zorite in confidence, enclosing full CV, to Box A2199, 
Financial Times, One Southwark Bridge, London SE1 9HL 


CJA 


RECRUITMENT CONSULTANTS GROUP 

2 London Wall Buildings, London Walt, London EC2M 5PP 
Tel: 0171-583 3538 or 0171-588 3576 
Fax No. 0171-256 8501 



Opportunity to make a mark within a small, successful team 


CORPORATE BANKING - 
FINANCIAL INSTITUTIONS 


CITY 


£30,000-£40,000 + BONUS 

MAJOR EUROPEAN INTERNATIONAL BANK 

This new position is due to our client's success in developing lending and treasury business with domestic and 
international financial institutions in the UK. The successful applicant will market to new and existing 
customers across the range of financial institutions, identify business opportunities and wifi be responsibie at 
ail stages of the transactions, including credit and risk analysis, structuring, negotiation and documentation. 
There will be continuing account responsibility. We invite applications from numerate graduates with a 
minimum of 3 years' corporate banking experience, sound product and credit skills and familiarity with loan 
documentation. PC literacy is desirable and some exposure to financial institutions will be an advantage. 
There will be customer contact at senior level and a strong, confident personality is essential. Initial 
remuneration negotiable £30,000-£40,000 + bonus and banking benefits. 

Applications in strict confidence quoting reference CBF15001/FT to the Managing Director, CJA. 


INTEREST RATE OTC DERIVATIVES MARKETING 


* A major European Bank is looking to recruit an experienced marketeer to be based in London. This 
is an opportunity to work at an established, highly reputable, well rated organisation which excels 
in the field of Derivatives and has a global presence in Capital Markets. The Bank is able to offer 
a genuinely attractive career structure due to expansion and a commitment to the development of 
innovative global derivative products. 


The company requires a candidate with a quality Degree from a reputable University and a 
minimum of two years experience in a similar role. The post demands excellent analytical ability, 
combined with effective oral communication skills. The position requires an individual who has an 
established European client base in Northern Europe (France, Germany etc.) with the relevant 
language skills, while additional coverage of Scandinavia or South Europe is also of interest 


The position will be remunerated at a competitive level commensurate with experience. 


Please write In confidence to Alison Phillips at the address below; 
Michelangelo Associates, International Search and Selection, 
Austin Friars House, 2-6 Austin Friars, London EC2N 2HE 
Tel: 071 972 0150 Fax: 071 972 0151/2 


Michelanselo 


APPOINTMENTS 

WANTED 




Conscientious 

GERMAN BROKER 
VaL degree, fluent EngL, Fr. | 
& Germ, some Dutch 
& Japanese. 


<&1LX 


Great imu rational contacts & City 
nee in 


experience. Seels new challenge i 
sales/trading or fund mgL 
environment. SFA regia. & 
NAS D/NY SE/CFTC rr(sJ + x.7). 
Strong desire to profitably trade 
derivatives and/or forex for lop 
/invesunentj bank. 
Luxembourg-based, relocation 
possible. Serious enquiries only, 
please He 

Box A5002. Financial Times, 
One Southwark Bridge, 
London SE1 9HL 


THE LONDON 

5ccKririei & Derivatives 

EXCHANGE 


Derivative 

Product 

Development 


£ Negotiable 


ATTO RN E Y SOLI C IK ) R 


The OMLX exchange is one of London's six Recognised Investment 
Exchanges. It specialises in the trading of standardised and Flex™ 
futures and options on a variety of international equity derivatives. 
It is an innovative and progressive exchange committed to 
broadening significantly its product range. 


3+ years experience & 
strong Russian language 
skills sought for Moscow 
office of major New York 
law firm. 


Please reply to Box 
A2455, Financial Times, 
One Southwark Bridge, 
London SEl 9HL 


The exchange is now increasing the resources it devotes to product 
development and is looking for a PRODUCT DEVELOPMENT 
SPECIALIST capable of being a leading player in a small and young 
team, reporting directly to the Business Development Director. 


He/she will be educated to a degree level, and possibly MBA 
qualified. The person chosen will play a major role in developing 
innovative new products in close consultation with leading market 
participants. 


OIL, COMMODITIES, 
SHIPPING EXECUTIVE 
Young C.E. Experience in oil, 
commodities and shipping. 
Actual buying, negotiating 
contracts - operations. 
Worked with American and 
British companies, 2 years in 
Africa and C.I.S. Seeks new 
assignment with international 
company. Specific projects. 

Start ups. 

FAX: 44 81 211 7780 


The successful candidate will already have a sound knowledge of 
the derivative markets, in particular regarding equities, and will 
have some experience of developing new products either within an 
investment house or in an exchange. 


This will be a key role within the exchange, and as such, will attract 
a competitive salary and benefits package related to the candidate's 
experience. 


International 

Controller, 

42 years, with more than 12 years 
experience. Background includes 
ex pained assignments In USA. 
Spain, Mexico, Argentina & Chile. 
Scekingi for similar position in 
Spain or any of the above 
mentioned countries. 

Write to; i.C Infanta Mai Teresa, 
lt> I’izq. (28016.) Madrid, Spain. 


To apply, please send a full CV including details of current 
remuneration to: 


Carole Machell 
Head of Administration 
OMLX, The London Securities and Derivatives Exchange 

107 Cannon Street 
London EC4N 5AD 


r 





VI 


FINANCIAL TIMES FRIDAY NOVEMBER 18 1994 


Financial Services Regulation 

Research & Development Officer 


IMRO - Investment Management Regulatory 
Organisational Limited - sets, monitors and enforces 
standards of investor protection for a diverse 
Membership, including fund managers, unit trust 
managers, pension fund managers, venture capital 
companies, banks and trustee companies. 

We are establishing within our Monitoring 
Department a Research and Development Unit, 
whose purpose is the identification of and research 
into industry trends and developments which may 
pose potential hazards to investors. 

In the varied and challenging role of Research and 
Development Officer, reporting to the Unit's Manager, 
you will develop a general overview of IMRO Member 
firms and their businesses as well as a detailed grasp of 
IMRO rules and other relevant regulations. 

The individual we seek may come from a variety of 
functional backgrounds, including professionals from 
a research, financial journalism, academic or Member 


firm environment. Wherever your investment 
management industry experience has been gained, 
you must be capable of broad, conceptual thinking or 
communicating ideas and information in an 
articulate, concise manner, of building productive 
working relationships and of producing and 
implementing creative initiatives and new ideas. 

Your initial salary will be related to relevant experience 
and qualifications, which should include at least a first 
degree. The benefits package will include a non- 
contributory pension, life assurance and BUPA. In 
addition, there are excellent opportunities to develop 
your career at IMRO in a variety of areas. 

Please write (under confidential coven with 
curriculum vitae, stating how you meet the 
requirements of the position, indicating current salary 
and quoting reference RD94/1 1, to Clare Woodcock, 
Personnel Officer, IMRO. Broadwalk House. 
6 Appold Street. London EC2A 2AA. 


The company is a highly prestigious securities house offering crad 1 i ?°®f* _ 

investment h anking products and services as well as specialist advice tocjic nt ssccMing 
f inancing aw H asset manaopmen t within Europe and Emerging • 
They currently wish to hire, for their London office, the following specialist individuals 
and salaries will be negotiated accordingly. 

Proprietary Trader - Far Eastern Securities 
Emerging Markets 

Candidates with a postgraduate degree win be skilled Quantitative Propnetary Traders vri*sound 
experience in either the fixed income or equities markets plus associated denvanvcs. iwo 
three years experience with a leading investment bank or hedge fund is esscntal and exp05ureto.ua. 
Far Eastern markets and/or Emerging Markets would be beneficiaL 


. * -• 


Quantitative Analysts 


Applications are invited from highly numerate analysts with 2/3 years experience la the finatjaal marice • 
vith backgrounds in risk management, pricing methodology and the development and applications of crachng models, 
Sound knowledge of econometrics and/or neutral networks would be an advantage. •• - - 

Fund Manager - Emerging Markets 

Prospective candidates should be Investment Managers with 2/3 years proven experience In Emerging Markets. . : 
ideally Eastern Europe, able to demonstrate high levels of success and a sound knowledge of denvaHves. 

All candidates will possess 1st class communication and interpersonal skills and demonstrate the _ 

high levels of ream driven energy, motivation and commitment necessary to meet the continuing challenge that ; 

this role and the development of a successful business presents. 

In the first Instance please unite endoslngfaH C V. to RefFRMS AJS at the address below. 

All applications uill be treated hi the strictest confidence. 


SELECTION 


R T H 


ROSS 


MARTIN 


A S S O C l A T E S 


LTD 


BsN C'.uri House ■ I I Blomf.elJ Sireei - London 6C2M 7 AY - Telephone 071-628 2-14 I ■ Fak 071-382 9417. 

* MFMBFft nr THE ILOHUFID GKUIP 



Qatar General 
Petroleum Corporation 

QATAR GENERAL PETROLEUM CORPORATION (QGPOb the mUJonflloflewn pan? ot Qatar with its bead oftice 
based in ibe capital city of Doha. QGPC iso large progressive organization with a successful history in die hydrocarbon 
industry and an exciting programme of developments including the world's largest proven gas reserves 'The North 
FfefcT. These development plans now call fora number of high calibre professionals to fill the following key positions: 


CORPORATE FINANCING ANALYST 


Review and monitor program with companies which relate to granting concession for oil exploration, 
field development and sharing of production. Identify sources of finance, preparation of optimum financ- 
ing structure, assessment of risk and formulating plans for its minimisation. Review feasibilities, develop 
hurdle rare for project evaluation and priortisation. Ref. FIN02 


PROJECT ACCOUNTING CO-ORDINATOR 


Responsible for the financial monitoring of large multi-million dollar projects. Scope of work includes 
administration of contracts, review of budgets, processing of invoices, monitoring and conrrol of expen- 
diture. and maintenance of all related accounting data. Duties include preparation of periodic reports for 
advising management on progress achieved and variances. Ret, FIN03 


GROUP ACCOUNTANT 


Responsible for the development and preparation of consolidated financial and operational repons for 
management to assist them in their review and control of operations. Must be well versed and experienced 
in the use of financial ratios like. Return on Capital Employed. Return on Equity. Capital Turnover, etc. 
Preparation of high level summary reports directed at Senior Management and Board. Ref. FIN 04 


COST & BUDGET ACCOUNTANT 


Develop budget guidelines, participate in the preparation and assist in the review and finalisation 
of budget. Processing of request of expenditures and materials against approved budget. Review and 
analysis of Expense and Project cost reports. Ref. FINOS 

To fill one of these positions candidates mast have a recognised degree and professional western 
qualifications in accountancy <CA, CIMA, CPA, ACCA) and at least 10 years* experience in the 
appropriate field with an international oil/gas company. Must also be experienced in PC and 
computerised accountancy software. Good inter-personal and managerial skills. Ability to work 
with and lead a multinational staff. 

THE COUNTRY 

Geographically. Qatar is a peninsula projecting into the Arabian Gulf, with a warm coastal climate. Whether you 
are playing golf, relaxing on our beaches, joining in a range of sports offered at our clubs or just savouring the 
warm welcome and the enjoyable way of life, you will find that Qatar is the undiscovered pearl of the Middle 
East. This forward progressive, independent state is one of the most accommodating to the western culture where 
wives and families are encouraged to participate fully in the community. This together with the very obvious 
financial rewords, odd up ro one of the most attractive packages currently available in the Middle East 

EMPLOYMENT PACKAGE 

The rewards, like the challenges, are substantial. All posts offer tax free salaries on long term contracts, free 
spacious air-conditioned accommodation, free medical and dental care, children's education assistance, gener- 
ous annual leave iwith paid air fares), transport allowance and heavily subsidised sporting and social facilities. 
Candidates who must have the appropriate qualifications and experience to be considered should send their 
resumes with a covering letter showing bow they meet the specific requirements of the p osi ti o n oppllkvl 
for. They should quote appropriate Reference Number, details of current salary, dare of birth, availability and 
contact telephone/fax. All applications should be sent to our Representative at the following address: 


A 


ROUSTABOUT 

PUBLICATIONS LTD. 


Dennis Davidson, QGPC Ativarttsament. 

Roustabout Pubgcatkms Limited, Suite 5, International Bass, 
GreenweH Road, Aberdeen AB1 4AX United Kingdom. 


Senior Fixed Income Analyst 


to £75,000 


A leading International bank and a major player in the prim ary and secondary fixed income markets 
wants to add a senior markets analyst to its successful Fixed Income Research group. This gro u p 
concentrates on the European markets and uses market analysis, credit research and quantitative 
techniques to provide a high quality research product to sales and trading staff as well as clients. 

As a market analyst you will be responsible for the analysis of the macroeconomic indicators, 
government securities and currency of a particular European country. Using your research you will 
be expected to produce written reports and develop specific transaction ideas for use by in-house 
traders and external clients. You must have excellent presentation drills as the group puts a strong 
emphasis on client contact. 

Ideally you will have a strong educational background in Economics or Finance. You most have a 
minimum of two years experience of market analysis within a securities house, investment bank, 
asset management company or research institution. As a personality you should be ambitious, 
innovative and dynamic. 

This is an excellent opportunity for those analysts wishing to enhance their reputation with a major 
player and increase their contacts with the end users of their research. 

Interested applicants should call Tony Sheppeard at: 

Austen Smythe Search & Selection 


127 Cheapside, London EG2V 6DH 


Tel: 071 6002862 Fax: 071 7204290 


London Stockbroker require 

3 TRAINEES 

for Sales positions. Experience not necessary, full training 
provided. Commit/Tient to hard work and 
abflfty lo work as part of a team essential. 

Salary plus commission. 

Tel: 071-378 0660 ext 63 


Emerging Market Recruiter 


Sedra experienced Equity 
Salespeople. Traders, Analyst. 
Portfolio Managers and Coporate 
Finance People presently covering 
the region of Latin America, Asia, 
and Eastern Bnpa 
Fox RESUK TO: CmSML WALXHt 
(Rakers Associates) 212 943-2131 


STOCKBROKERS REQUIRED 

Young City based comp, requires 4 S.F.A. 
registered individuals to service our existing 
client base of private investors. Basic & 
commission package. If you are between 25-35 
yrs have min 3 yrs exp. enjoy a hardworking 
environment call 071 403 3213 
for more information. 


Equity, FX Sales, Research 

FX Futures Traders with 2+ yrs practical Market Making. 

Portfolio skills. Exchange exp.. Options theory <& Risk 
Management essential. FX Sales people with Fund style large 
house experience. PhD or 2:1 Quantitative Analyst 
with computing. Visual C. C++. 

Campion Recruitment Ltd, Africa House. 

64/78 Kingsway. London. WC2B 6 AH. 

Td: 071 831 6600 Fax: 071 831 6622 


Financial 
Public Relations 

Senior Consultant 
A minor consultancy seeks a 
tenor pfayer to At d a mm ing 
rale. FTSE and Household name 
diems Flotations. Metfia A 
Analyst bason and calendar 
work C.C35.00D. 


s 


i‘n?i r .YSV> \ 


9 


iy*t 

l you have quafery experience 
n financial media relations, 
combined with knowledge of 
CipraJ Markets and a back- 
pound as a brokerfaiulysC ties 
a a unque oppcrtuncy. m work 
on first dass ntemaoonai 
accounts. t£27.00C+. 

Account Manager 

You v*e need 2-3 years 
PR experience and strong 
pnnenooon sinks, tap FTSE 100 
dients. daufc calendar wori. 
new imes aid takeovers For 
exsbfched com. cXtT.OOO. 

Wte have a lanay of pafloons far 
strong GtyFHnancnl Ml pofcatao- 
afcwuhquaJityconaasandexpm- 
ence. Are you nwexed to oq*** 
you - career powerf then— 

Contact Jonathon Cortfsi, 
Sophie Moontfbrd or Libby 
Trace to complete confidence 


PRICE JAMIESON 

G R O U P 

RECRUITMENT CONSULTANTS 
TEL 071 A3 1 1 005 -FAX 071 434 4789 
PARAMOUNT HOUSE. 104-106 OXFORD 
STREET. LONDON WIN 9FA 


LIFFE FLOOR 
TRADING 
SUPERVISOR 

Candidate must be 
able to act as a link 
between the Option 
and Futures pits. 
Detailed knowledge 
of Option strategies 
essential. 
Experience gained 
on exchanges other 
than LIFFE and a 
proven ability to 
work with non-UK 
based clients would 
be an advantage. 

Write to: Box A5253, 
Financial Times, 
One Southwark Bridge, 
London SEl 9HL 


APPOINTMENTS WANTED 


EMERGING MARKETS 
Fund Management/AnaJyst 

Investment Analyst (UMR). Economist fB-AEcon), Chartered 
Accountant (ACA) & MSI (Dip). Fundamental research and business 
valuation skills, familiarity with modern portfolio theories, broad 
business experience and exposure .and knowledge of Asian Markets. 
Please Fax: +<441071 638 0C1 4 or Reply Box: A525L Financial Tunes. 
One Southwark Brdg, London, SEl 9HL. 


EQUITY 

ANALYST. 


Wants research/sales 
position covering S.E. 
Asian stockmarkets. 
CFA candidate. 1.5 yrs 
Equity Analyst 
experience in New York. 
Dartmouth College BA 
Mandarin - Beg. 
knowledge. Willing to 
relocate. 

Call James in 
California 
415 775 5354. 


CORPORATE 

FINANCIER 

London-based Chartered 
Accountant/Merc ham 
Banker with significant 
commercial and financial 
experience within the UK 
and Europe seeks 
interesting opportunity or 
challenging assignment 
All replies will be 
acknowledged and treated 
in confidence. 

Write to Box A2068 , 

Financial runes , 

One Southwark Bridge, 
London SEl 9TTL 


FX OR 

DERIVATIVES 

29 years old MSc. 
(Economics) is searching 

for a new challenge. 3 years 
experience in Fund 
Management and proprietry 
trading in FX. Multi-Ungual: 
Scandinavian lan guage s 
& German. 

Write to: Box A5252. 

Financial Tune^. 

One Southwark Bridge, 
London SEl 9HL 


1 


INTERNATIONAL 

CONTROLLER, 

42 years, with more than 12 
years experience. Background 

includes expan ed assignments 
in the USA. Spain. Mexico, 
Argentina & Chile. Seeks 
similar position in Spain 
or any of the above 
mentioned countries. 
Write to; 

LC. Infanta Maria Teresa, 
16 lTzq. 

(28016) Madrid, Spain. 


✓ 


CONSULTANT 


\ 


Hi gh ly successful US Management Consulting firm seeks an experienced, s^if . : 
motivated individual to join a small team in their Hertfordshire offices. High 
professional standards and rigorous client focus are pre-requisi t es for the 
position. 

This is superb opportunity for a graduate or MBA wifo a minimum of 5 years • 
relevant experience in a personnel or management consultancy role and with 
industry knowledge of the financial sector. Excellent written and. oral 
communication skills/ coupled with strong analytical ability, are essential to 
generate and present the creative business solutions demanded by -clients. - 
Initially, the position will be responsible for maximising revenue potential 
through established client relationships in the UK and continental Europe, 
although business development responsibilities are likely to he added in foe 
future. Fluency in French and/or German is essential and practical work 
experience in continental Europe would be of great benefit 

Compensation will include a highly competitive salary and benefits, as well as 
potential for substantial performance-related bonus. Qualified candidates only, 
^ ^Iea5esCTTdCVandletterofapplirationto^POBox443^StAlbmis^^^49)CP^ ^F 


Flemings 

GLOBAL TELECOMMUNICATIONS 
Investment Research 


Robert Fleming Securities is seeking to recruit an 
Analyst to join its Global Telecommunications Research 
Team. The position, which will initially be London-based, 
will carry a competitive initial salary and offers scope for 
rapid career advancement 

■ 

Suitable candidates are likely to be in their twenties 
and should ideally possess a good degree, an accounting 
qualification or MBA, experience in financial modelling 
and excellent communication skills. Relevant industry 
experience is not essential. 

■ 

In the first instance, please write with curriculum 
vitae to: 


Angela Denneny, 

Personnel Manager, 

ROBERT FLEMING & CO. LIMITED, 
25 Copthall Avenue, London, EC2R 7DR. 



REPO/MONEY 
MARKET TRADER 


\Ja/omon Brothers, one of tbe world's leading 
international Investment businesses, wishes to recruit a 
Repo/Money Market Trader to join its existing team. 

Responsibilities will Include managing continental 
collateral books, developing customer relationships and 
providing back-up for other collateral trading activities. 

Educated to degree level with, ideally, a finance/ 
economic bias. . you must be able to show well-developed 
interpersonal and analytical skills. In addition vou 
must be fluent in at least one European language other 
than English - ideally Spanish Previous experience is not 
necessary as full training will be given. 

To apply, please send a full cv and covering letter 
indicating your suitability, to Sara Callister Radcliffe 
Salomon Brothers International Limited. Victoria Plaza 
111 Buckingham Palace Road, London SWlwasB 


Salomon Brothers 


Based 

London 

I excellent 
+ bonus 
4 benefits 


-SL'S^r. 















•' *\ ; 


• \ 



AM 


F1NANCr A.L TIMES FRIDAY NOVEMBER IS *994 * 

ACCOUNTANCY 


VII 


Step by step on insolvency harmonisation 

Jim Kelly on moves to draw a framework for insolvency to facilitate mutual recognition and co-operation 


A ccountants do not often 
get shot in the line of 
business, it took the 

FSr-ff'ar ask 

accountants*** ” any faCUlB 
accountant concerned. 

i vKrl! £ dams of Cooper s & 
Lybrand, was attacked while 
leaving the firm’s Istanbul 
offices m August. He was 
apparently, mistaken for Chris 
Howen, one of the executives 
“idling the administration of 
the now bankrupt fruits-to- 
electronics conglomerate. 

The gunman later claimed he 
was offered £3,000 for the 

Shooting 

Meanwhile, the administra- 
tors have been subjected to 
abusive telephone calls, gun- 
waving fanners, and super- 
glued locks. 

Both cases of intimidation, 
while one more extreme than 
the other, are depressingly 
fam iliar. Two legal systems, 
two sets of insolvency law, an d 
the disputed recognition of the 
status of the administrators 
and courts conspiring to keep 
the creditors waiting. 

Chris Barlow, the Coopers' 
administrator to Polly Peck in 
London, says that a range of 
cross-border issues in insol- 
yency present an “ever increas- 
ing problem" as the network 
linking multinational company 
assets becomes more complex. 

In recent years several major 


corporate collapses have 
involved complicated adminis- 
trations across several jurisdic- 
tions: the Maxwell empire, 
Lancer Boss. Ley land Daf. and 
BCCI. the global r amifi cations 
of which cover 69 jurisdictions 
and are currently holding up 
the second attempt to reach an 
acceptable offer to creditors. 
One creditor has applied to the 
London-based administrators 
from British Antartica. 

One of the organisations try- 
ing to solve some of the prob- 
lems is Insol Internationa], the 
London-based organisation 
which represents accountants, 
lawyers, bankers, and govern- 
ment officials involved in 
cross-border insolvency and 
rescue. It has 6,000 members in 
56 countries. 1.000 of whom 
have joined in the last year. 

Founded in 1982 at a confer- 
ence at Cape Cod, Massachu- 
setts, the organisation grew 
through the recession of the 
late 1980s. Insol is considering 
applications for membership 
from Nigeria, and the recently- 
formed Russian insolvency 
practitioners association. 

The expansion of interna- 
tional investment, particularly 
into the former Eastern Bloc, 
has highlighted the need for a 
framework for insolvency. 
Investors are looking for sound 
insolvency procedures before 
they move across binders. 

“You will not get inward 
investment unless you can get 


an equitable system for dealing 
with insolvency. Although 
laws on cross-border insol- 
vency relate only to a Hmitpa 
aspect or international trade 
law. these laws are a crucial 
element in developing a legal 
environment that facilitates 
cross-border finance," says 
Stephen Adamson, president of 
Insol. 

Earlier this year insnl began 
working with the United 
Nations Commission on Inter- 
national Trade Law. Prompted 
by the failure of efforts to 
establish “utopian" interna- 
tional laws, it was decided at a 
meeting in Vienna to try and 
solve some of the problems by 
step-by-step harmonisation. 

"There was a mood among 
delegates that rather than wait 
for a world-wide model to pro- 
vide the ideal solution, which 
could take hundreds of years 
to achieve, we should take the 
initiative and progress har- 
monisation step by step,” says 
Mr Adamson, a partner with 
Ernst & Young. 

After the conference Gerold 
Herrmann, Uncitral secretary, 
said: “It Is in every nation’s 
interest to assist in the recon- 
ciliation of insolvency law.” 

While the delegates backed 
specific recommendations, 
such as the establishment of 
specialised courts in all coun- 
tries to deal with international 
insolvency, care was taken not 
to seek a specific framework 


for new laws.” 

Two initiatives, backed by 
Uncitral, are under way. A 
panel of judges working in 
insolvency from around the 
world is to meet in Toronto in 
March next year to put 
together a “highway code" for 
the judiciary, to promote 
“comity” between jurisdictions 
- the principal of mutual rec- 
ognition and cooperation. 

Meanwhile, an Insol working 
group is preparing a “menu” of 
bolt-on pre-p repared legislative 
measures that could be added 
to national law to Improve the 
procedures for the recognition 
of administrators and their 
access to courts. Adoption of 
these legal "kits” would bring 
about gradual harmonisation. 
Both reports will be presented 
to Uncitral in New York in the 
summer of 1995. 

B ut the Insol-Unci tral ini- 
tiatives face fundamen- 
tal problems. The insol- 
vency codes of, for example, 
the US. Britain and France, all 
measure success in insolvency 
differently: in terms of helping 
the debtors, the creditors and 
the employees. “No one is 
wrong,” admits Mr Adamson, 
“we just want to recognise the 
differences.” 

The success of Insol in at 
least prompting debate can be 
measured by two recent 
requests. Earlier this month 
the Russian Federal Agency on 


Insolvency called on Insol, 
along with the World Bank and 
the European Bank of Recon- 
struction ami Development, to 
help in the overhaul of Inade- 
quate Insolvency laws. And 
Ellen Seidman, special assis- 
tant on economic policy to US 
president Bill Clinton, asked 
Insol to give evidence to the 
Interagency Working Croup of 
Bankruptcy Reform. Insol exec- 
utive members gave their 
views on the US bankruptcy 
code and urged the need to 
consider mul tinational prob- 
lems in proposed reform. 

Marie Homan, senior partner 
at Price Waterhouse, supports 
progress towards harmonisa- 
tion but questions if such “soft 
law” is rigorous enough to 
cope with a major corporate 
collapse. 

Christopher Morris, senior 
liquidation partner at Touche 
Ross, also asks whether any 
agreements can withstand the 
pressures of “locals first” when 
it comes to a multinational cor- 
porate collapse. While some 
insolvency law, notably tbe 
UK's, does seek to protect the 
interests of those from other 
Jurisdictions there are wide 
international variations. 

Mr Ho man says Insol should 
stress the need for a frame- 
work within which investors 
can measure risk before under- 
taking a transaction. As part of 
that framework he suggests 
some form of code, preferably 


consolidated into international 
treaty with the force of law, 
which would make it dear in 
which country a company 
would be wound up in the case 
of failure. 

The legislation could pin- 
point the “principal centre of 
management” of the company 
and this could be declared in 
its accounts. In the case of cor- 
porate failure the administra- 
tion would take place primar- 
ily in the country tnriiratpri- Mr 
Homan suggests that the coun- 
try of choice could be changed 
only after notification in subse- 
quent anntwl accounts. 

Some critics of Insol take the 
view that cross-border insol- 
vency problems only affect the 
big corporate collapses and 
therefore, only the big firms. 
But increasing numbers of 
practitioners are becoming 
enmeshed in work which takes 
them into other jurisdictions. 
Malcolm London, of tbe UK’s 
Insolvency Practitioners Asso- 
ciation, estimates that about a 
third of licenced practitioners 
are involved in such work. 
Insol estimates that 30 per cent 
of so-called insolvency work 
across borders is in fact rescue 
work: involving restructuring 
and reorganisation. 

Despite the criticisms of 
Insol's initiatives with the UN, 
many professionals will be 
waiting impatiently for some 
form of progress on harmonisa- 
tion. 


Penzugyi vezetot, 
fokonyvelot keresunk 
multinacionalis 
szorakostatoipari 
tarsasag reszere 

BUDAPEST 

Egy 4 milliard US dollir eves forgalmat 
bonyolitd tarsasSg penzugyi megbizottat 
keres magyarorszagi fidkjanak vezetesere. 

A sikeres jeientkezonek - akar ferfi, akar no 
- tokeletesen kepzett konyvelonek kell lennie, 
aki mind magyarul, mind angolul 
folyekonyan besz£l es ir. 

A jeientkezonek megfelelo bizonyitvanyokkal 
kell rendelkeznie a pdnzugyi vezetes ter£n 
szeizett gyakorlatarol. 

A megallapodis kituno alapflzetest, 
premiumot vala min t a szokSsos nemzetkozi 
kedvesmenyeket foglalja magaba. 

Az alkalmaztatisa drdekeben fijon reszletes 
ondletrajzzal 6s fizet6si igennyel a kovetkezo 
cimre: Mr Stephen Gottlieb, 31 Villiers 
Street, London WC2N 6ND 


V (.S 

\K 'VnONS 





te#. 



FINANCIAL 

EXECUTIVES 


Central & West of London 


Multi-national Group 


Our client, part of a major multinational group, is clearly recognised as being 
a world market leader in the distribution and marketing of leisure, music and 
entertainment based products. The business is of a complex nature serving a large 
customer base. As a direct result of the company's strategy the appointment of two 
high calibre finance professionals is to be made to strengthen the finance team. 

Planning Manager c £43,000+car 

This role will work dosely with the Finance Director in providing more pro-active 
financial input to develop the full potential of the business. Specific duties will 
be to enhance the quality of information to senior management, appraise and 
improve financial systems and procedures, assist in the evaluations of new 
project proposals and manage other corporate ad-hoc projects. Candidates, 
aged early/mid 30s, will be qualified accountants who have had management 
responsibilities within a large blue chip company environment preferably through 
financial analysis, business development or strategic planning, (ref 632) 

Senior Financial Analyst c £37,000+car 

bilities will be varied and challenging but specifically will indude 
variance analysis, the development of new reports and other information 
issist management in improving the performance of the business, 
late 20s/early 30s, will have had previous analysis experience within 
a large company environment (ref 633> 

The successful candidates will be operationally orientated and pragmatic with first 
rl*« interpersonal skills to liaise with many disciplines and the highest level of 
management Good numeracy and PC skills are paramount for both these roles 
as are enthusiasm and self motivation. 

Please write endosing foil curriculum vitae, quoting ref 632 or 633 to: 

Philip Cartwright FCMA, Riverbank House, Putney Bridge Approach, 
London 5W6 3JD Tel: 071 371 9476. 

Cartwright Consulting 

FINANCIAL SELECTION & SEARCH 


tools to assist 
Candidates, 



FQ4ANOAL SEARCH * SELECTION SPECIALISTS 


FINANCIAL CONTROLLER 


APPOINTMENTS 

ADVERTISING 

appears in tbe UK 
edition every 
' Wednesday & 
Thursday 
. and in the 
International edition 
. every Friday 

• • •«* 

:'F6r former ‘ : 
information 
please call: 

Andrew Skarzynski 
on 

+44 71 873 4054 

• 

Philip Wrigfey 
on 

; +44 71 873 3351 

Joanne Gerrard 
on 

071 873 415 


Our client, a major international industrial 
services group, has offices throughout the 
world and Businesses in a number of 
different markets. ' 

Due to an internal promotion, whoHy- 
owned subsidiary^ based in Holland, is 
seeidng to recruit a financial Controller. 

The successful candidate -ji& report to the 
General Manager Mid have complete 
responsibility for the finance function. . - 
Key tasks will inducted 

• Development and eaharicenvent ^ MK 

• Production of monr* ' 
reports/ad hoc proj 

■ Monitoring of cashflows 

Preparation of Statutory accounts 


Applications are invited from candidates 
who are qualified accountants, preferably 
ACA, and with 2-3 years' post qualification 
experience, gained within the engineering/ 
industrial sector. 

A good deal of time will be spent working 
with the Spanish subsidiary and therefore a 
working knowledge of Spanish and/or one 
other European, language is ideal but not 
essential _• 

Candidates should relish the challenge of 
taking a pro-active role within the finance 
' ■ - - They must possess a commercial 

imotionai 


l:\TER\ATIO\A 

OPPORTUNITY 


HOLLAND 


C 30 - 32 K - CAR 


function. They must 
and energetic approa 
— TOrturaties -e — * 
it individual. 


Treasury Executives 

Major UK Multinational 

London 

Two key roles for Treasury professionals in muhihnHnn pound turnover UK quoted 
Group, whose businesses op e rate in diverse markets worldwide. Recent restructuring 
of tiie Treasury has resulted in two interesting and high profile np p pr timiriea . 


Group Liquidity and 
Foreign Exchange Manager 

To £50,000 + Benefits 

THE POSITION 

♦ Monitor and analyse tbe Group’s liquidity, FX, interest rate 
and counterparty risk positions. Generate innovative proposals 
to manage exposure. 

♦ Further develop and improve systems to forecast liquidity 
movements. 

♦ Provide advice to operating tain m currency, liquidity and FX iwura 

QUALIFICATIONS 

♦ Graduate with relevant professional qualification, ide a ll y an 
accountant, MBA or MCT. 

♦ Several years’ experience in a major corporate treasury. 

Expertise in inrer est rats and FX management. 

♦ Responsive, flexible and confident, with fins das analytical sUh. 

Ref HN4584 Ref HN4585 

Please send full cv, stating salary, quoting relevant rtf, to NBS, 54 Jenrtyn Street, London, SWIY 6LX 


Group Cash 
Management Advisor 

To £45,000 + Benefits 
THE POSITION 

♦ Update and manage Group cash management system 
"• worldwide. 

♦ Responsible for contrafling all bank accounts and charges. 

♦ Liaise with all appropriate suppliers to ensure proper 
provision of cash management services. 

QUALIFICATIONS 

♦ Graduate with MCT or ACIB qualification. 

^ Several years’ experience of wnwnniitmal mA management 
systems, gained in corpor at e treasury or ba n ki n g. 

♦ Excellent communication and negotiation skills. 
CommcrdaDy aware, with confidence and presence. 



NB SELECTION LTD 

a BNBReaooita pic comp a ny 





LONDON 071 493 6392 
Aberdeen 0224 638080 • Birmingham 021 233 4656 
Bristol 0272 291142 • Edinburgh 031 2T0 2400 
Glasgow 041 204 4334 « Leeds 0532 453830 
Manchester 0625 539953 • Slough 0753 819227 


r 



Group Treasurer 

Establishing and leading a new treasury function 


West Midlands 


c£50,000 


s- dproi 

rtunfties oast within the Group for tile 


Interested jmB vHiib should telephone Julie Thompson on 071 405 4161 (foe 071 410 2140) or 
everams on 081 542 8602. Alternatively, write to her at IMS Recruitment Consultants, 5 Bream's 
Bmldiiiip Chancery Lane, London EC4A 1DY, endosing a current CV and a note of cmrent salary. 


A MEMBER OF THE PSD GROUP 


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 FT's European readership and to 
further target the Frenchbusiness world. 

For information on rates and further details please telephone: 
Philip Wrigley on +44 71 873 3351 



Our client is a major UK-based industrial 
company with operations around the world, 
and it is part of an even larger group. It has 
recently been decided to establish a separate 
autonomous treasury function in the company 
and a Group Treasurer is now sought to 
establish and manage this key function 
including the supervision of the Tax Manager. 
The initial tasks will be to develop and 
implement treasury policies and procedures, 
including detailed administrative and systems 
support, to negotiate and manage banking 
arrangements, to establish a framework for risk 
management, including the execution of 
money market and foreign exchange 
transactions, and to develop procedures 
for the effective forecasting and management of 
multi-currency cash flows. Supervision of 
group tax management will be an additional 
responsibility. The continuing growth and 
development of the business is likely to call 
upon all the skills of an experienced corporate 
treasury professional. 


To meet this challenge you will have had 
extensive corporate treasury experience in 
a multi-national group, including tax 
responsibility, and will have developed and 
managed a successful treasury function in a 
comparable group. You will consequently have 
practical experience of all aspects of treasury 
management. You will be a strong organiser 
and negotiator, good at establishing effective 
working relationships with group executives 
and outside suppliers, and a natural team 
player and leader. 

A competitive salary will be supplemented by a 
foil benefits package, including a car. 
Relocation assistance, where appropriate, will 
be given. 

If you wish to be considered for this key 
appointment, please write, in confidence, with 
foil career and salary details to Douglas Austin, 
MSI International Limited, 32 Aybrook Street, 
London W1M 3jL. Please quote reference 
34388. 


£ C U T I V E 


£ C * U I r *1 f N T CONSULTANTS 


LONDON 
0171 487 S000 


BIRMINGHAM 
0121 4$4 8U4 


GLASGOW 
0141 24S 7700 


LEEDS 

01 1 3 245 4757 


MANCHESTER 
0161 035 1772 





ACCOUNTANT - SPAIN 

Un grupo educational espaflol lider en su sector, soiicita 
un editable licenciado, biiingue en ingles y espaflol, 
para sus oficinas en Madrid. 

Sc requiere dos an os minim os de experience como pos 
graduado y lilulacion de 

ACCA o CIMA. 

Enviar CV. en Espanol a la aicncion de: 

Ms Maria del Mar Fry Bsc. Director, 

St Michael’s College, Old wood Road. 

Tenbury Wells, Worcs WR15 8PH. 


COMMERCIAL 
FINANCE DIRECTOR 


Commercial ACA, (mid 30s), Retail/Service industry background, 
FD of both small (£&n) and targe (£300m) companies seeks 
contract work In the London or Thames Valley areas, strengths 
indude: 

□ System design, development and implementation 

□ Staff motivation and management 

□ Efficiency programme management 

□ Problem solving 

For further details ring or fox: 0734 341567 


- 1 \ , “ 

1 v»- - 


.S? ■ . 






VIII 


FINANCIAL TIMES FRIDAY NOVEMBER 1 S 1994- 



Finance and 
Administration 
Director 


APPOINTMENTS 

ADVERTISING 


FINANCE DIRECTOR 

Imminent Flotation 






Pharmaceuticals • Spain & Portugal ■ Package £70,000+Car 


Our client is a household name and publicly quoted British 
based multi-national. Due to promotion, their Spanish sales, 
marketing and manufacturing pharmaceutical subsidiary is now 
seeking a high calibre Finance and Administration Director. The 
person appointed will also be responsible for the financial control 
of their Portuguese affiliate. 

You will report to the Managing Director, and be a key 
member of the management team with overall responsibility for 
finance and administration, which also incorporates 
purchasing, personnel, production planning and information 
processing, as well as local treasury and taxation requirements. 
There will also be a strong interface with the company s UK based 
management You will make a major contribution to the 
formulation and implementation of the company s future long 
term plans and strategy. 

You will probably be in your mid- 30s, a qualified accountant 
preferably with a degree or MBA, and have worked in a senior 
financial role with a major multi-national company. You should 
have a facility for languages, preferably already Spanish speaking 
and be hig hly motivated with strong leadership qualities. First class 
technical and interpersonal skills are a pre-requisite. Experience of 
working in a Spanish speaking environment and of working with 
Partners in strategic alliances would be added advantages. Above 
all you must have the strength of personality, intelligence and 
flexibility to succeed in an expanding commercial environment 
poised for significant growth. 

This is a senior appointment in one of Europe's fastest 
expanding markets and is based in a major city in Spain. Career 
development potential is excellent. 

If you are interested in this appointment, please 
telephone Stuart Adamson FCA on 0532 451212 or send 
your CV in confidence quoting reference number 3410 to 
Adamson & Partners, 10 Usboa Square, Leeds LSI 4LY, 


appears in the 
UK edition every 
Wednesday & 
Thursday 
and in the 

International edition 
every Friday 


c£1 00K package + Options We^ London 

Our client is preparing fax a 1995 flotation. A» a Rese ll e r in Computer Hardware and Svft ware 

ui the last four years through organic and acquired growth. They now required a fast -class ; 

executive team that is well-established, intellectually rigorous. arategicaBy-aware «n d conrensua-onerueo. 


The Challenge: 


To be a member of the main Baud, reporting to the BAD. 
You will be fully responsible for Corporate finance, the 
financial disciplines and presentation of financial data in 
preparation for flotation. 


The Requirements: 

* Excellent academic credentiala and an otmaan^tg &iuu» 
track record in a UK public company, preferably wtfh 

flotation experience. 


For further 
information 
please call: 


In conjunction with the Chairman, you will be responsible 
for establishing and developing banking and investor 
relationships. 


* Strong commercial judgement, with an incishra intellect 
that is both precise and flexible. 


Contribute strategically to the direction of the business, 
whilst maintaining operational responsibilities. 


* The presence and credibility w operate at aflleveto 
internally and externally. 


Andrew Skanzynski on 
+44 71 873 4054 


* To fit into the existing team quickly. 


* A self-starter who has thrived in a »inrilar .te«dnio!bgical - 
environment, preferably with Enropeaxt experience. .... 


Philip Wrigley on 
+44 71873 3351 


Please apply by sending a CV and covering letter, briefly demonstrating yen suitability arid Stating yqpir 
present salary, to John Greenway, Mexcnxi Ureal Executive Service, Spencer House, 29 Grove Hm Hoad, _ 
Harrow, Middx HA1 3BN, Fax Ho: 081 861 1928, quoting refc JG/VTH- .." "M/ 


Joanne Gerrard on 
+44 71 873 4153 


MercuriUrvai 



West Yorkshire, England. Fax number 0532 420802. 


Adamson & Partners 


International Financial Search & Selection 


+ 

3 


SPIDER 

NETWORKS 


SPIDER NETWORKS 
DIVISIONAL DIRECTOR OF FINANCE 


FINANCIAL PLANNING & 
ANALYSIS MANAGER 


c£40,000 + Car 
+ Bonus 


Leisure/Retail 


West Surrey 




MARTIN - WARD 
■ANDERSON • 


• «•.«** lal MiWiTeiM 


Our client is a major retail group operating in an exciting and dynamic part of the leisure sector. The Company 
employs more than 3.000 people, and can demonstrate a record of consistent profitability throughout a period' of -, 
radical change and impressive growth. The Organisation is poised to expand by a further 25% in 1995 alone. . 

Based at the HQ in West Surrey and reporting to the Finance Director, the successful candidate will manage a 
department of six professional staff and will act as key interface with sales and opera tion s m a n agement. 
Responsibilities will include: 

▲ management reporting and analysis 
A corporate reporting 
A budgeting and forecasting 

A commercial support to operations and marketing management '- 1 ' ! 

A acquisition appraisal 
A ad hoc projects 

Applicants, ideally aged 30-35. must be qualified accountants . with extensive management accounting experience 
gained with a large company in a consumer related industry. Previous commercial exposure and computer literacy 
are also required. In addition, personal attributes should include strong communication and pres en ta t ion skflJs 
together with the ability to 'sell' ideas. A knowledge of the retail sector would be particularly welcome. ■ 

If you are interested in this position and meet the candidate profile, please send your curriculum vitae with a note of 
daytime telephone number and current salary ro Tony Martin at Martin Ward Anderson, Goswell House, 134 Peascod 
Street. Windsor. Berkshire SL+ IDS. Please quote reference 94161. 


Spider Networks Is one of the three autonomous divisions of the 
international Spider Group, Europe's IwscBug internetworking company. 
Operating within the UK, Spider Networks works with its custo m ers 
providing e f fec ti ve management of their net w orking syste ms and 
helping thorn to develop and Implement networking strategies. 

Spider Networks has considerable experience hi a number of Industry 
sectors, with an emphasis on supplying workable, complete solutions, 
based on customers' specific n a ods . This Is supported by a tall range 
of services fndwting design, consultancy, project management, 
maintenance and training. 

Due to Its succes s and expansion. Spider Network s has a vacancy for a 
Director of Finance who will take responsibility for f i n an c ia l operatious, 
management reporting, IT/MIS and working capital. Whilst very much a 
hands-on position, the Director of Finance wffl be a key member of 
a strategy poup with responsibitty for growing Spider Ne tworks. 
Successful applicants are I fluty to be aged 30-35 with a strong tr ack 
record hi hands-on financial management within the IT Ind ust ry and a 
creative flab for business development. 

Applications In writing should be made to: 

Linda Chant, Personnel Manager, Spider Networks, 

Spider House, Peach Street, Wokingham, BERKSHIRE RGU 1XH. 




Dr-;c 


NI0R AUDITOR 


London 


£neg + car + bank benefits 


To apply please contact 
our advising consultant 


M 071-242 8103, 
or send your CV to him at 

43 Esgb Start, 


WC1I4A*. 


With a record net income of S2.2 billion for last year. 
Citibank is one of the world's leading financial institutions. 
It provides a comprehensive range of financial products 
and services to corporate, institutional and individual 
customers around the globe. 

Part of an international function the UK Audit team covers 
the Bank's businesses in the UK, Ireland and Scandinavia. 
Many of these businesses operate on a Pan-European or 
Global level. They include cash management, securities 
services, trade services, private banking, retail bonking, 
investment management, corporate finance and capital 
markets. The aim of the UK Audit team's risk-based 


reviews is to add value to these businesses and help 
improve their operational effectiveness. 


Expansion in the business has led to increased demand for the 
services of Corporate Audit, who now wish fo recruit 
additional high calibre individuals eager for a challenge. 
There is considerable scope for development with outstanding 
career opportunities, both within the UK and overseas. 


Successful candidates are likely to be graduate ACA's with 
significant exposure fo international banking, probably in on 
internal audit role. Consideration wifi also be given to 
applicants from other disciplines with a banking background. 


Chief Accountant 


CITIBANKS) 


Property Development 


We ore oa equal o pp ort uni ties ewpieyer 


Central London 


c_£35,000 


Our dienes are a successful property 
development company with several 
substantial projects under construction and 
in prospect. They notv need to appoint a 
qualified accountant with experience in this 
sector to operate their fully computerised 
accounting function. 


projections and forecasts. A ‘hands-on’ 
approach is essential combining attention to 
detail with the ability to evaluate and 
interpret the numbers and provide the 
directors with accurate and meaningful 
information for decision making purposes. 
Age indicator 30 - 40. 


Supported by an assistant the Chief 
Accountant will be responsible for every 
aspect of the function from basic- 
bookkeeping and cash management 
through to the production of monrhly 
managemcnr accounts, cash flow 


Please write in strict confidence, quoting 
reference 1020/FT ro Catherine Edwards, ar 
Orccridgc & Company, Griffin House, 161 
Hammersmith Road, London W6 8BS 
enclosing lull career derails, salary history 
and daytime telephone number. 


OTTERIDGE 

&. COMPANY 



cial Accountant 


to £3 2k + benefits • central london 


llniabs Group is a fast grwong European 

heaflbeare corpany, which is afreadyfo 
tvgestindepeidertsxt^olpalh!*® 
service h the Ut 

Uiato (k h emankig rapdy n a 
duHengmaA^, Ike UK grop currently 
artfqys 280 peqfe atf has a hnrnnr of 
£X5n*on. 

Tha Sandal Kceuttantvfl report dredfr 
to tin farce tfrectw as part of a newly 
famed finance toant. Then* ml be varied 
art w8 encompass syaswderekwmnt, 
llw^ranlli&^Bn^riiidngUS 
SEC tgqorOTcrri, end m a na gtt wit of the 
accounting function. Dae to fl* grmtfi of the 
go* there b afeq a tcoramri to intonate 
narfrgtefiies Wdl afejfe maia garent 
pntoxfc and aaMsttos, There hit* 


c omri eralfaerottHretoton wqesn wntql 

(he UK and European poop. 

The position reqwes a (patted Chartered 
Accortant «* frst tine passes aid a 
mrirrun rf one yea's pat 

You wfl hm m enthusiastic, problem 
sdmg approach axpfej with wddeveieped 
ogarisalranai and priorfefas stifc, togrtw 
nib a strong pop of tednical aspects. 

tf you are interested n mow* mio an 
exrirtg art donating enwwment wift 1 
rcspcraHe and a varied role then please send 
your Wto: Donnie Gift, France Director, 
IWate UK, Bewby House, 32 Jamestown 
Road. London IW1 7BK 


Venture Capital 

Entrepreneurial Accountants 


Caribbean/Far East/Middle East -Emerging Markets 


Our diem is one of the pioneers of emerging markets investment, managing 
substantial funds in developing countries worldwide. Building on iis highly 
successful trail-blaring record the company is in the process of creating funds to 
the Caribbean. Far East and Middle East respectively. 


The company seeks three highly commercial Business Executives - one to he 
based in each of these locations - who will rake a leading role In driving the 
success of each fund Heading up a small team of professionals these positions 
focus on researching and evaluating investment opportunities, presenting financial 
analyses and recommendations to the Investment Committee, structuring, 
negotiating and dosing deals and monitoring the finances and performance of 
investee companies - often as a member of the Board. Other responsibilities 
include interred financial control, producing accounts, compliance with relevant 
regulatory authorities, training kxal or expat riate saff and carrying out company 
secretarial responsibilities 


initiative to move deals forward with the patience to overcome the delays and 
problems intrinsic to emerging markets. Liaising with directors, local employees 
and professional advisors, excellent communication and negotiation oraic wffl be 
essential. Candidates, who are likely to be ACA/ACCA qualified, must have a 
strung finance background and good PC based computer skills together with the 
ability to evaluate unlisted companies, prepare financial forecasts and structure 
investments. Language skills. Spanish for the Caribbean and French for the .Middle 
East, would be useful. 


The ideal candidate, aged 2“-«. will combine the energy, resourcefulness and 


These positions offer outstanding opportunities to become involved in and benefit 
from some of the world's most exciting economic growth areas. Remuneration 
packages are likely to appeal to the ambitious: to addition to an attractive salary 
housing allowance and related benefits there are excellent options schemes 
offering the potential to make substantial capital gains 

SCnd " 1 their "*086 or contact us on 

tr l 329 -hh 1 ). or during the evenings and weekends on 0”! 231 82^2. 


Oivisf 

tec 


Alderwick 

CONSULTING 


SEARCH * SCUCnOM 

OLD HAILEY HOUSE. 7 OLD RAREY. LONDON ECsM 7NB. TEL 071-329 +6W Fax> tni-jjp *677 


APPOINTMENTS WANTED 


UNILABS UK 


Self-motivated, enthusiastic business professional with 
accounting qualification seeks employment in Pakistan. 
Currently employed in London by a large US multinational 
with proven track record in financial and operational aspects 
of consumer products. Pakistani born American citizen. 


Please call Aamer Sheikh at 44-923-202747 
or write to Box A5001, Financial Times, One Southwark Bridge. 
London SE1 9HL 


CORPORATE FINANCIER 

opportunity or challenging assignment S 

AH replies wfll be acknowledged and treated in confidence. 

Writ* to Box A2m, Facial Tima. O^Sout^ark Bridge , London SE I 9HL 










FINANCIAL times FRIDAY NOVEMBER 18 1994 


DC 


T ° £ 75,000 
+ benefits 


Major National Services Group 


London 


Finance Director 


Senior Financial 
Analyst 

c. 30,000 + Car + Benefits 


f 


GUINNESS BREWING WORLDWIDE LTD. 


Coinaen Brewing Worldwide (CBW] is the brewing company of Guinnae* pie which Is ana of the world’s foremost alcoholic drinks 


Unique opportunity for an experienced aid mature finance professional to join a small head office 
suDDorrh^ with one of the UK's most demanding commercial challenges. Stimulating remit to 
ernnawf evaIuacion md potential divestment of a group of subsidiary businesses with a £2 billion 
turnover, as pan of a major restructuring programme, whilst maintaining a first-class service. 


companlns K Is a market leader with a wide range of brands Gnionn Stout and operate* m an International, competitive environment 

wbare improving c oram aitnal effeedvenaa is critical to tbs tong laem suobbss of the hnsiiwws. The company is orgmlaed on a regional basis and 
odors exceUont opportunities for the successful Individual. 

The Job is part of a mall pfOfoaeiMud and highly motivated teem within CBW Centre responsible for the production of Budgets. Quarterly 
Reviews, Monthly Operating reports and adhoc projects for the Q8W Executive. This requires managomem liaison si all levels throughout the 
operating regions on co mm ercial issues in each geographical territory. 


the role 

■ Reporting to the MD, with responsibility for 
nnancial management and analysis or 
numerous devolved business units, instilling 
|Jgnt financial control and rigour in the 
budgetary processes. 


Counselling and training the subsidiaiy boards 
and their Financial controllers on best 
commercial practice and providing guidance on 
the use of approved financial intermediaries. 


Supporting the development of state-of-the-art 
control and information systems. 



THE QUALIFICATIONS 

■ Graduate calibre accountant with divisional 
board level experience in exerting tight financial 
control, ideally in a service or distribution 
business. 

■ Hack record of advising on sizeable strategic 
investment decisions. Prior experience tn 
formulating change programmes, particularly 
downsizing exercises. 

■ A flexible and robust pragmatist with strong 
leadership and staff development skills who 
relishes change and is able to rise to a genuine 
challenge. 


Reporting Id the Manager of Financial Analysis, you will responsibility for the proe m of Budgets and Quarterly Reviews to 

vary tight tii mwwwh w. You will he expected to identify ■ml hi ghlig h t trends mi «t rnmn ^f m ^ tnl innut within —«-li operating company tor aaBBm nenl 
at CBW Executive level. Responsibility will also Include the monitoring and ongoing development or two reporting staff. 

This e xtre mely high profile role requires a teoaotaas and committed individual who will pursue Ihe resolution of issues and demonstrate a 
high degree or commercial aciimnn. Applications are invited front exceptional and mnbitioiis qualified accountants who hen gained at least 
three yuan post qualification experience who are now seeking an outstanding career o pportun ity with a loading international company. 


1/ yea feel thatyoa i 


thamp. 


r of tbit key role ht oar fioaaca /naetfon please forward year CV to our racraitment adrisor 


MrVhrfUakeat Haadtfhdd ttorgmimu, 10 SadHy Plot*. Leaden WlS 1BGL Allemativrtly fax yoar CV to him on 07i 403 3104. 


HEATHFIELD HARGREAVES 



Leeds 0S32 307774 
London 07t 493 1238 
Manchester 061 499 1700 


Selector Euro pe 

Spencer Stuart 


Financial Controller 


This highly profitable, multi -site, regionally managed business is implementing an aggressive 
expansion programme in the UK and is developing operations in Europe. Part of the parent 
group's strategy is to devolve fid financial responsibility and accountability to their operating 
businesses. This has resulted in the creation of this new post 


Reporting to the Financial Director; your primary focus will be the management of financial data 
within the business and interface with Regional Directors. As well as being responsible for statu- 
tory and internal reporting you will be functionaBy responsive for Commercial Managers with- 
in their operating regions. Additionally, you will be Team Leader for 3 managers within the head- 
quarters finance team. 


c. £35, 000 
+ car 


Thames 

Valley 


This position requires qualified candidates who have well rounded accounting skills gained in a 
commercial environment ideally in the retail, leisure, or hospitality sector. Critical to your suc- 
cess will be your interpersonal skffls and abffity to work with all levels of management within a 
business with strict reporting deadlines. 


To apply please write to Tony Clarke, enclosing a full CV and salary details, quoting reference 
MD3962 at Macmillan Davies, Salisbury House. Bluecoats, Hertford, Herts SGI 4 I PU. 



Macmillan Davies 


BIRMINGHAM • BRISTOL • HERTFORD • LEEDS • LONDON • MANCHESTER 


Audit Managers 

Investment Funds & Fund Management Practice 

PW Hong Kong 


Hong Kong has always been a base lor investment funds 
and tend management business. Recently the industry has 
experienced considerable growth with new investment 
products being developed and serviced in Hong Kong. 

Price Waterhouse Hong Kong (one of the largest PW offices 
in the worfd) has a significant market share of prestigious 
clients which include a wide range of on-shore and off- 
shore investment funds investing globally, marketed both 
institutionally and to the retail market Our clients Include 
specialised funds and a number listed In Dublin, Hong Kong 
and London. 


Initial contracts are for two years during which our dynamic 
business environment will offer an excellent opportunity to 
develop your professional skills and widen your experience. 
If you are ambitious and talented there are strong prospects 
for promotion. 


if you are interested in this exciting opportunity please send 
your C.V., including details of relevant experience, in 
confidence, to : 


As a result of our growth, we wish to recruit audit 
managers to join us to service existing clients and to 
prepare for the growing demand for our services. You 
should currently be an audit manager, preferably working 
with a “Big Six” firm, with experience of investment funds 
and the fund management industry. 


John Thompson 

Price Waterhouse World Finn Services BV 

Southwark Towers 

32 London Bridge Street 

London SE1 9SY 

Tel: 071-939 2065 

Fax:071-939 2655. 


Price Waterhouse 


Your World of Opportunity 

Files Waterhouse Is autborliad by tbs Institute of Chartered Accountant* In England and Wiles to carry oe Investment Dullness. 


a? - 


-cm :'3-s 






...f t .- 





... 

AN<0 


9** 




This position is with the UK subskfiary of a leafing International Group which b a worldwide 
organisation and a market leader of tis services. 

As Regional Controller, you wlB be responsible for tee financial and management accounting of a 
muW-tocaflon region which has a turnover of £25m. 

ControEng a staff of ten you wilt report to the Regional Director and support him in achieving 
growth In volumes and profft. 

Aged 30-50 years with a recognised accountancy qualification, experience in a high voUirte, 
dtsdpfewd business finvfronmerrt, where corporate standards are fundamental, is essential. Of 
paramount Importance is strong rT skffls particularly relating to integrated computer systems and 
PC literacy. To succeed in this role you must be articulate, pragmatic, tenacious and enthusiastic 
with a track record of achieving objectives. 

To apply for this position, please send your CV with a covering later explaining why you are 
suitable and staling your current remunarafion package to: Barrie J. Dowsatt, 


St Mary's House, 

1 - 7 St Marys Road, 
Market Haiborough. 

Leicestershire, LEI 6 7DS. 



Telephone: 
01 B50 433071. 

Facsimile: 
01858 463269. 


EXECUTIVE SEARCH c. SELECTION 


SSF MI P McT: F Y 


INVESTMENT EX ECUTIVES 


£25-35K + FINANCIAL SECTOR BENEFITS. UK-WIDE OPPORTUNITIES. 



INVESTORS 

IN 

INDUSTRY 


3i is the leading specialist provider of 
investment capital to unquoted businesses in 
the UK, with £2.9 billion of assets invested in 
c.3,400 companies in Europe. Investing some 
£1 million each working day, 3i plays a vital 
role in encouraging business expansion and 
wealth creation through its network of 18 UK 
and 6 continental European offices. 

We are looking for individuals with a rare 
blend of personal and professional qualities 
which will equip them to become first-class 
investors. A high level of judgement and 
analytical skill is essential, together with 
the ability to understand customer require- 
ments and build strong relationships with 
a wide range of people. 3i is committed to 
providing you with a comprehensive training 


programme to enab7e you to maximise 
your potential. 

Based in one of our regional offices, you will 
become a key member of the local business 
community- You will identify new business 
opportunities, structure investments to meet 
both customer and Si needs, and work closely 
with your customers to promote their contin- 
uing growth and development. 

A graduate aged 25-30, you will already have 
sufficient commercial experience to succeed in a 
competitive environment. An MBA or account- 
ancy qualification would be an advantage. 

Please telephone 3i Human Resources on 
071-975 3168 for an information pack and an 
application form. Completed forms should be 
returned by 28th November 1994. 



DIV1SI 

DIREC 


ONAL FINANCE 
ETORS 


PriceWiterkouse 




EXECUTIVE SEARCH & SELECTION 


Kvans Halshaw 


Evans Halshaw Holdings Pic is an outstanding multi-site company, growing 
profitably through both improved trading and successful acquisitions. A market 
leader in the field of franchised motor dealerships and vehicle management 
services, the company now has over 90 dealerships representing 26 franchises, 
including such prestigious names as Ferrari, Mercedes-Benz, Rolls Royce, 
Porsche, Jaguar, Rover, Ford and VauxhalL 

The Divisional Finance Directors will report to the Group Finance Director and 
their initial priority will be to critically appraise existing financial controls in 
divisions comprising of 35-50 dealerships. In these strategically important 
positions, you will influence key management decisions and provide 
comprehensive financial support including financial analysis, business planning, 
budgeting and forecasting. 

Candidates must be qualified Accountants, aged 35-45 and have strong 
communication skills. You should be prepared to lead by example and dearly 
demonstrate good management capabilities. A proven track record, preferably 
in retail .multi-location divisional structures, though not necessarily in the motor 
trade, is prerequisite. 

Please apply directly to Alison Hann at Robert Half, 63 Temple Row, Birmingham 
B2 5LS. Telephone 021-643 1663, or alternatively fox your details on 021-643 6170. 


Finance Director 


£ 40,000 


+ Substantial 
bonus 

+ Car +Benefits 
+PRP 


A Rare Opportunity To Make The Headlines 

To £50,000 + bonus + benefits East London 


Birmingham/ 
High Wycombe 



HTH 


ROBERT 

HALF 


FINANCIAL 

RBCSUITMENT 


We are the UK subsidiary of a highly regarded international 
publishing company. We are an acknowledged regional 
player in the newspaper and magazine market and we have 
our parent's support to expand significantly, probably 
through die acquisition of further tides. 

As Finance Director, you will be responsible for all our 
fi nancial affarin hut pr ima ri ly firs' the proviaioD crfanupEothe 

minute management information service. Our world changes 
rapidly and we need to be able to make unm frHate detiaionB 
and rapid turnarounds. Clearly, you wfll be a key player in the 
development of our business but wetf also be looking to you 
for more straightforward support - tight credit management 
and an input to the farther refinement of our systems. 


You are a family commercial qualified accountant with 
an impressive trade record to date: blue chip, broad based 
and steady career progression. You have worked closely 
with. Board colleagues and you are used to high level 
presentations. You have a record of i n v ol v e m ent beyond 
pure accounting ay id j as a result, an in depth understanding 
of management information. Finally you have well- 
developed systems stills and you are an experienced 


Write with foil career and salary details quoting 
reference D/1498 to: Mark Hartshorn e, Executive 
Search & Selection, Price Waterhouse, 
No 1 London Bridge, London $El 9QL. 




.--dgr?' 



r 









FINANCIAL TIMES FRIDAY NOVEMBER, 1 8.1 $94 



Accountanc v Pers onrn 


2 =& 


The Genchem Group are a Highly successful and dynamic organisation providing quality shipping 
services to the industries of the world. Compiled of eight specialist subsidiary companies, the 
group has a turnover of £6 million and has shown an outstanding record of growth over the 
past two years This success is set to continue through commitment to provide a quality service 
to clients whilst identifying new business opportunities for the future. 


mm i 


Group 

Financial 

Controller 

Ipswich, 

Suffolk 

c£35,000 + Car + 
Full Benefits 
Package 


The 

1 Reporting 10 the Managing Director and 
responsible for the management, develop* 
merit and motivation of a small team of 
finance staff 

1 Working as an integral part of the manage* 
ment team, gaining active involvement in 
many of the commercial issues affecting the 
business. 


Role 

• Provision of all financial and management 
reporting information for the board and 
subsidiary companies. 

• Responsibility for all group administration 
and company secretarial matters. 

• Devising a strategy for the development of 
computerised systems, implementation of 
internal controls and quality procedures. 


The Appointee 


1 Proven man -management ability including 
recruitment, development and appraisal 
skills 

A high level of commercial awareness 
coupled with a sharp mind and ability to 
think on their feet 

A qualified accountant with technical ability 
in the areas highlighted. 


Strong communication skills at all levels, 
able ro liaise successfully with demanding 
characters 

Pro-active and self-motivated approach 
keen to contribute to the success of this fast 
expanding business Salary will not be a 
limning factor for the successful applicant. 




This assignment is being handled exclusively by Accountancy Personnel 
Interested applicants should forward their CV to Jane Garrard at Accountancy Personnel 
Executive Recruitment, 36 Museum Street. Ipswich. Suffolk, IP1 tJQ. Tel: 0473 21 5068. 
Fax: 0473 232738. Closing date for applications Monday 26th November. 






c £50,000 

-f- 

Excellent 
Benefits & 
Relocation 
Assistance 


WARSAW 


o 

/s 


FINANCE DIRECTOR 

- PROFESSIONAL PRACTICE 


Price 'Waterhouse has an enviable reputation in providing auditing and business advisory services, 
with an established presence in eight countries in Eastern Europe. 

Price Waterhouse, Warsaw is one of the firm’s key regional offices with in excess of 200 staff There is 
now a need for a dynamic and commercially aware Polish speaking Finance Director to contribute to 
the continuing success of its Polish operation. 

Reporting to both the local Finance Parmer and the Eastern European services group based in 
London, you will take full responsibility for the control of the finance function, ensuring the timely 
production of management and statutory accounts for the \Kfarsaw practice. As an essential member 
of the management team, you will also be expected to manage and develop the business ensuring a 
strong reliable structure is put in place for the future. 

You will possess the following attributes: 

• An accountancy qualification with at (east 5 years’ experience gained in a decision making 
environment 

• The ability to manage change and lead effectively 

• The drive and ambition to introduce new financial management disciplines in a multi-cultural 
business environment through a demanding phase of development 

• Proficiency in Polish |R^H 

• A proven track record in international financial management K|||l 

Interested candidates should contact Jacqueline Long or John Bowman, advising Mil 

consultants at FSS Europe on (44) 71-209-1000, (evenings and weekends on (44) EU 

71-371-5647) for a confidential discussion, or write to t hem at FSS Europe, FSS 
Charlotte House, 14 Windmill Street, London W1P 2PE Europe 


Commercial 

Finance 

Manager 


East Anglia 


Salary Package 
c£35,000 + 
Benefits 


A leading financial services organisation, our client enjoys a highly' respected-reputation both 
within European markets and across the world. A key division within the group which 
focuses on commercial business with premium incomes, of £370 million,, now seeks to 
appoints Commercial Finance Manager due to. internarpromatibn. 

The Role ■■ 

Concentrating on reviews for pricing adequacy and commercial projects, together with 
financial evaluation of initiatives, theGommeroai Finance Manager will aid financial control 
to the business. 

In particular key responsibilities will include. 

■ Supporting the business team in the • Assessingfreviewing pricing adequacy indud- 
development of Pie rating/pneing ing schemes. 

methodology, strategy and team work. -Maintaining a pro-active approach to the 

• Supporting evaluations and reporting development of new financial reporting 
on the impact of new commercial lines initiatives. 

and business initiatives. • Managing a small finance team with 

'emphasis on their development and training. 

The Appointee 

Our client seeks a dynamic individual who can effectively analyse business issues, input 
useful ideas to the business and play a key role in the formulation of new initiatives, liaising 
extensively with senior management. 

■ A team player able to work within the • Assertiveness and. strong interpersonal skills 
existing finance and business structures, to deal with staff, senior management and 
whilst motivating. staff and maintaining other business units. 

high levels of morale and commitment • a record of achievement within a blue chip 

• Strang analytical skills to absorb mfor- environment. 

matron balanced with good judgement • a qualified Accountant aged 28-35 with a 
to provide suggested solutions to track record in dealing with business 
business challenges. initiatives and challenges. 

The company are committed to actively developing individuals careers and your commitment 
and energy will lead to significant promotional opportunities throughout the group. 


m y 


This position is being handled exclusively by Accountancy Personnel. To 
progress your appITcatton further or to receive further details, please forward 
your CV in complete confidence to Lynn Hardy, Accountancy Personnel 
Executive Recruitment. Davey House. Castle . Meadow, Norwich NR1 3 BY. 
Ifelephone 01603 760141. Fax 01603 633380. 


*vr •• > : 



Accountancy Personnel 

EXECUTIVE RECRUITMENT 


Finance 

Director 

Yorkshire 


c£40,000 + Car 
+ Benefits 


Managing change with a world class 
market leading company 

This exdting and challenging position has. arisen with an expanding £40 million turnover 
business. The company is the largest subsidiary within a progressive Pic group. It has an 
enviable reputation for manufacturing high value products to demanding specifications. 

The Finance Director will perform a crucial role in both operational and strategic 
management. He/she will report to the Managing Director and will be expected to initiate 
change. Improve systems and promote financial awareness across the business. This is a 
genuine opportunity to make a visible contribution to profit maximisation and take full 
responsibility for all finance and administration functions, including the provision of 
effective planning, management accounting and cost management. 

An energetic and ambitious person is sought, both to meet the initial challenge and take 
advantage of future opportunities. Candidates should be qualified accountants aged 30- 
45 with extensive experience of cost management including ABC techniques and systems 
implementation, gained in manufacturing businesses. 


S T7 This assignment is being handled exclusively by Accountancy Personnel. 

— To apply please contact James Whelan on 0532 468363 or write to him at 
r=dl Accountancy Personnel Executive Recruitment. 9 East Parade, Leeds LSI 2AL. 




GROUP FINANCE DIRECTOR 


c£60,000 

+ 

Car I 

i 

~T 

Substantial 
Performance j 
Related j 
Benefits 

CENTRAL 

LONDON 



Our client is a highly successful international company and market leader in the provision of a 
unique range of technologically based products and services. They are in the process of 
implementing ambitious and far-reaching plans to re-structure their business on a global 
basis, providing the opportunity for substantial growth both organically and by acquisition. 

The new appointment, reporting to the Chief Executive, has been created to provide the 
financial focus for these major changes, as well as inputting ai Board level to a wide range of 
complex commercial and strategic issues. 

You will be functionally responsible for all aspects of finance, accounting and reporting world- 
wide, while providing direction and guidance to an established local team of experienced 
finance professionals. 

For this key strategic role, which will have a significant impact on the future direction and 
success of this international organisation, we are seeking an energetic qualified accountant, 
aged 35-45, with a proactive approach, strong analytical, commercial, and MIS skills, 
together with the ambition and determination to respond to rapidly 
changing business developments. 

To be considered for this appointment, please send your full CV, including K||| 
details of latest salary and benefits, together with reasons for applying, to 
Ned Wax, Consultant to the Company, at FSS Executive, Charlotte gUI 
House, 14 Windmill Street, London W1P 2DY or alternatively fax on p c c 
071-209 0001. ' executive 


Coopers 

&Lybrand 


Executive 

Resourcing 


As a £5m turnover, privately owned) preefsfan engineering 
mamjfcciurer, this campaiy enjoys the posffion of being a world 
leader In Its field largely due ta world class cpjaltty standards. 

Reporting directly to the Director and General Manager, the 
position arises due to the retirement of the present past holder. 
Initial emphasis in the position will be on understa rating the 
existing systems and management Information procedures 
such that Brera Is continuity during the handover period. Your 
role will concentrate on the supped of the Director and General 
Manager In many aspects of tire naming ot the company 
Including personnel and company secretarial duties, and you 
must hove a hands-on approach. 


you will be a qualified, probably graduate, accountant with a 
background in a hands-on but progressive manufacturing 
environment. Your knowledge of the implementation and 
updating of computerised management Information systems 
should be excellent and you should be used to hiking pari hi 
the general management of a business. 

Please send full personal and career details. Including current 
remuneration level and dayttme telephone number, in 
confidence to John Efflati, Coopers & Lybrand Executive 
Resourcing Unified, 43 Temple Row, Birmingham B2 5JT 
quoting reference JE282 on both envelope and letter. 


/ 



RECRUIT THE 

BEST 


By placing row KKCiivmtt;,\r a&yf.rtisemrxt is tub 
Fi.vA.vout Times you abb reaching thf. world's BUSI- 
NESS COM. MO MTV. 


For information on uihrrCUinff in (hit motion, pleanr call: 

Andrew SkivrzynsL* on +44 71 873 31507 
Philip Wrigl*y on +44 71 673 4006 


MAJOR GLOBAL BANK 
SENIOR DERIVATIVES CONTROLLER 


NEW YORK 


As a lending international financial institution, 
our client has an established and significant 
presence in the world's derivatives markets and 
a commitment to the continued development of 
its global business 

Rapid growth in the swaps and options 
markets necessitates the further development 
of the Control area and hence the requirement 
for a Senior Derivatives Controller. A L f S work 
permit is not required 


The role wiJJ involve: 

• working to strengthen Risk Management in a 
dynamic forward moving environment 

• all aspects of derivatives control, reporting 
and accounting 

• extensive liaison with the traders and the 
suppon Junctions 

• increasing the understanding of complex trade 
structures within the financial areas 


ROBERT WALTERS ASSOCIATES 


EXCELLENT PACKAGE 


The successful candidate will have indepth product 
experience, a hands-on approach and well-developed 
interpersonal skills. 

Currently employed by a major derivatives player, 
you will be a highly motivated, qualified accountant 
with an excellent academic background. 

Applicants should cal! Sam Dewhurst on 
0171 379 3333 (fox: 0171 915 87 14) or send 
u detailed CV to Robert Walters Associates, 
25 Bedford Street, London, WC2E 9HP. 











5 O*,-' 


FINANCIAL times FRIDAY NOVEMBER 18 1994 






Financial Controller 


Coventry 



** 3 &u ? ccss * u * division of a major US multi' 
smk' »■ ' e [ 1 S 3 ^ K | manufocoire and distribution of 

“P^t^atcd analytical and diagnostic equipment, 
^■rating m a highly competitive global market place, the 
] s ^PWation for product quality has achieved 

^rshtp Of it S core markets. Having recently embarked 
am iikjus growth programme, the company is now 
*t to extend rr s market advantage. 

^Jlowing the merger of two key business divisions, an 
opportunity has arisen for an ambitious qualified 
accountant with stature and commercial acumen to form 
an integral pa R of the management team. Reporting to the 
Managing Director and assisted by a ream of staff, 
responsibility will encompass all aspects of finance, 
including board reports for the US parent. UK statutory 
accounts, internal management reports, in addition to 
commercial management accounting, forex and systems 
development activities. The position has arisen 
at a time of considerable change within the 
company and accordingly, will have significant 


to £33,000 + Car + Bens 

operational involvement, principally in the areas of cost 
management, gross margin control and with regard to 
other issues arising from the reorganisation. 

Prospective candidates should be qualified accountants of 
graduate calibre and able to demonstrate a successful track 
record of profir improvement and cost management in a 
manufacturing nr commercial business. In addition, 
candidates should possess the energy and commitment 
together with the confidence and presence to operate at 
Board levcL Equally important are personal qualities, 
including strung man-management skills and the 
intellectual ability to mid vulue and provide leadership in 
an environment of considerable change. 

Interested candidates should apply in writing, quoting 
reference 210792, enclosing a hill CV (Including a 
daytime telephone number and details of present 

remuneration) to William Green well at Michael 
Page Finance, The Citadel, 190 Corporation 
Street, Birmingham B4 6QD. 


Assessing the Regulators 

Key Role in Monitoring and Assessing the Regulation of 
Investment Business by the Professions 


& J 






Michael Page Finance 

Spccuiou m financial Rccrvioacni 
London BrirtoJ Windsor St ABmos Leatkabted BfanfaKfasa 

Nwtjpcfcnm Mw>c hrltr Lcqfa Gt—gpw EittofetwgH &. Woridwide 

BMW 8H 


?'■ 

-W. 

m £? 

'T‘ 


Recognised professionals including accountants, 
solicitors, actuaries and insurance brokets are permitted 
to carry out investment business as an adjunct to their 
core business. In these activities they are regulated by 
their professional bodies. The Securities and 
Investments Board (SIB) is responsible for assessing die 
ade quac y of this regulation. 

The role involves a close working relationship with the 
relevant professional bodies in ensuring the 
effectiveness of their arrangements and procedures. 
This will include the ascertaining, testing and 
evaluation of current procedures, negotiation of 
improvements and presentation of these to the 
professional bodies. 


S uccessfu l candidates must have some experience of die 
audit/inspcctkm/consulting process, ideally combined 
with a knowledge of retail investment products. An 
awareness of the accounting, actuarial or Insurance 
broking professions supported by familiarity with the 
Financial Services Act regulatory regime would be 
helpfuL A mature personality and confident outlook 
are essential. 

Interested applicants should initially contact 
Sue Lin tern at Michael Page City, Page House, 

39-41 Parker Street, London WC2B 5LH for an 

information pack quoting reference 210735. 
Telephone: 071 831 2000. 

Closing date 1st December 1994. 


Michael Page City 

lotcmauuital ReaiumemCunsulianu 
London Pass Frankfurt Hong Kong Sydney 




b « world Class 
ctt/uptinr 


Management Accounting 
Manager 

Market leading FMCQf business 



West London 

Our client is a progressive and dynamic international 
corporation with a first class portfolio of branded food products. 
Underlying this success is its reputation for high quality and 
excel len ce in all areas of the business, together with an 
aggressive sales and marketing s tr ategy. 

The posrtkm of Management Accounting Manager has arisen 
as the direct result of a corporate culture of change and growth 
and represents a rare opportunity for an exceptional and 
dynamic finance professional. Working for one of the core 
businesses and reporting to die UK Finance Director, 
responsibilities will include: 

• Providing first class day-to-day commercial and financial 
control including the pro-active development and 
enhancement of existing financial reporting systems. 

• Actively promoting an ongoing cultural shift to a profit 
accountable environment by the provision of appropriate 
information, analysis and advice to colleagues. 

• Overseeing and developing an effective team of 


^Tfinmnra. 


c £38,000 + Car 

• Building and maintaining close working relationships with 
colleagues in both group and non-finance functions in order 
to identify and capitalise on commercial and financial 
opportunities. 

The requirement is for an ambitious, determined and 
innovative individual, with excellent motivational skills and 
the ability to influence others with the provision of sound and 
practical commercial advice. Candidates should he graduate 
calibre, qualified accountants with a minimum of three years 
post qualified experience in a sales and marketing led FMCG 
environment. The successful Individual will demonstrate 
excellent inrcrpetsonal skills, a common sense approach, the 
ability to manage people and a record of accelerated career 
development ro date. 

Interested applicants should write, quoting reference 2H092 
and enclosing a full curriculum vitae, salary details and daytime 
telephone number to Anne Wilkie ACA. Michael Page 
Finance, Page House, 39-41 frrfcer Street, 

London WC2B5LH. 


Michael Page Finance 

Spcrfallai In financial Ractutoncnt 
London Bristol Wiwbar St Ainas L e l hsiht i d JBI nringlM 
rln l lh n iniu — -fr *■***!” W -AV.U 


Financial Controller 

Enhance your career and your quality of life 

Cambridge c.£35,000 4- benefits 

Our client Is the rapkHy expanding UK arm of a highly profitable European private company. Continued success in Its 
niche market in the construction sector has led to a decision to consolidate its UK presence through the establishment of 
a separate profit centre. To this end an experienced accountant is sought to set up a financial framework which wifi support 
the business. 

You wiH assume sole responsibility for introducing appropriate financial controls, accounting procedures and computer 
based systems, In order to provide timely and accurate financial and management information. The ability to forge strong 
links with non-finandal colleagues and gain the confidence of senior management will be crudaL Whttst the short-term 
priorities will be 'hands-on - in nature, the role will become Increasingly strategic once fundamental procedures are in place, 
thus allowing a genuine contribution to the profitable growth of the business. 

Probably In your early 30‘s, you must be a qualified accountant with proven ability to set up an effective accounting function 
from scratch with minimal support Technical competence and computer literacy are prerequisite skills and candidates 
without several years* experience in the construction sector are unlikely to have the necessary grasp of the critical success 
factors In this business. In addition, you must be versatile, energetic, self-motivated and results driven. The working 
environment is open and relaxed, but demanding and highly professional, with a strong emphasis on quality. 

Interested cancfidates should write, enclosing full CV and salary details, to Tim Knight quoting reference TCK1711- 

a/WG' S election & Search 

1-2 Dorset Rise, Blackfriars, London EC4Y 8AE 






Group Financial Director 


West Midlands 

Out diene is a highly successful pic, engaged in the manufacture of 
quality hearing products for the leisure and domestic markets. 
Operating in a highly competitive marketplace, the company has 
consistently demonstrated impressive growth and profitability over 
the years. This can be attributed to positive and forward thinking 
management and a well-conceived business strategy of organic and 
acquisition-led growth. 

The Company now wishes ro appoint a positive and ambitious 
qualified accountant with strong technical, commercial and 
communication skills and the stature go become an integral part of 
the management team. The position will report to the Group Chief 
Executive and the key focus will be the development and 
implementation of group strategy. As a ‘pic’ Directorship, the 
position will have the full functional responsibility for Group and 
divisional finance departments and will include all financial, 
administra tive and treasury functions, in addition to compliance, tax 
p lanning and company secretarial duties. Other key areas of 
involvement well be mergers and aquisirions and the 


c £50,000 + Car + Benefits 

management of the group’s IT strategy. The position will also have a 
very significant commercial responsibility to fulfil, in providing 
advice and participating in decisions on key strategic issues, both at 
Head Office and in reviewing and overseeing the Group's 
subsidiaries. The successful candidate will accordingly be expected 
to act as a catalyst in driving and directing the business towards 
goals of enhanced profitability. 

Prospective candidates must be qualified accountants, probably 
Chartered and able to demonstrate at lease 5 years achievement at 
senior level in a manufacturing environment. Applicants should also 
demonstrate strong organisation and leadership skills and the 
intellectual ability to grasp and analyse technical issues and 
contribute to business decision making. 

Interested candidates should apply in writing, quoting reference 
209904 enclosing a full CV (including a daytime telephone 
number and details of present remuneration) to 
William Green well at Michael Page Finance, The Citadel, 

190 Corporation Street, Birmingham, B4 6QD. 


circa £40,000 


circa £29,000 

Applications from suitably qualified and experienced cancfidates are invited for these 
three new posts in the Finance and Support Services Directorate. 

City and Guilds is recognised as the leading provider of vocational qualifications and it 
is poised to expand further. With over a century of business exper tis e it has substantial 
operations in die UK and overseas. 

Following an extensive corporate renew a new organisational structure is now being 
implemented. Both the Finance and IS functions will play a crucial role in the 
achievement of die Institutes on-going objectives. 

For the senior post, a professionally qualified accountant is required with at least fifteen 
years relevant post qualification experience. The successful applicant will possess the 
ability and experience to oversee and direct all aspects of fi n anc i al and managerial 
accounting and treasury functions along with the information technology and business 
systems functions. Additionally, an ability to think conceptually, to set out and 
communicate action plans and to sustain high levels of commitment and drive wiD be 
a requirement 

For each of the two subordinate posts a professionally qualified accounta n t is required 
with at least ten years relevant post qualification experience. The post-holders will have 
joint responsibility for managing die Group* day-to-day accounting functions. 

Further details and an application form may be obtained from the Personnel 
Department, 071-278 2468 extension 2176. Completed applications to be received by 
not later than 30 November 1994. City and Guilds of Londod Instifnte, 

76 Portland Place, WIN 4AA. 


Michael Page Finance 

Specialists in Financial Rcciuitmenr 
L ondo n Biatol Windsor Si ABmm 1 - Aartxrhe nd Binninglwn 
NatftnIiiBi Mincbtmi' Leeds filnpw Edinbrayfi & Worldwide 


iggg City and Guilds 








..*y 

Is*- 


CLIFFORD CHANCE 

DI RECTOR - FINANCE AND ADMINISTRATION 

Oifibcd C2wnreisakadrngrmeniationallawfinnwiih 21 nuemarioaal offices which handle all aspects ofbusiness and 
finanrefornwdtinatiooal dienn and financial mxritMtionx. The wfommimip h> expand currently 

employs 12 Kasdan and TOstern lawyers god is relocating into modern new offices. Clifford Chance is seeking to 
appoint a Director - finance and Administration to assume overall responsibility for afl nan -legal seivioe functions. 

As head of finance the rote will pred cniinandy be connoBing all aspects of the financial operation inducting advising 
- and assisting die gegdent partner and providing periodic manage m ent accounts and forecasts to partners based in 
T<riifo"»^ M Mca w.fopariiailafyi«irteam^n^ig iqinniahlp fig aB iqmrtifi^hiidgetq^yn^rmljnirernal systems, 
hilling and gtsfe control, remrns to the relevant tax authorities and hairing with the external accainiams. 

Tfai wifi also be dedicated to die effective running of the personnel and administration functional human resources, 
premises and supplies including negotiations with external suppliers. 

Ideally aged in yonr 30’s or early 40^ you will be a fluent Russian and English speaker and have 

/ esperknre<rfmte r na ri caaI fi n ai sceand in aiia g en a eD t .\buwinbedqdcmgticandhai>ethcalalityto 
bdp manage and develop a growing business. 

" fry flwihrr ^ f orma tion nn rim t« W«rtding eareer opptYTTWTtity with a ingjrn- ww mrmnniil law fam 

pte m reo n ta rr onr adv i si n g co nsul t a nt Kean August on 4171 209 1000 orsendacurricuhitn vitae 
mrnnfidcnretorSS Bngopa, Charlotte Honae, 14 Windmill Street, London W1P2D%IJK F S S 

or fax to 44 71 209 WOL AD applications win lx finwacded to FSS Europe. Europe 


The Top 
Opportunities 
Section 

Advertise your 
senior 

management 
positions 
to Europe's 
business 
readership. 
For information 
please contact: 

Philip 
Wrigley 
+44 71 873 3351 


Financial Systems Development Manager 

The BBC World Service is the international service of the BBC. It readies an audience of 130 
mQlfrmm English and 40 other languages and is tbe international broadcaster with the biggest 
audience In the world. 

We are embarking on on ambitions programmes of finance systems developments to 
support internal trading between newly estahftshed Business Unite and to improve the quality 
of information provided to managers. 

We are now seeking a Financial Systems Development Manager who will be a senior 
member of the finance management team and who will lead die Finance department's input to 
these systems developments. 

Working closely with the financial systems project manager, the principal responsibilities 
of the FSDM will be tft- 

* HMTrfjnarf and p"""** detailed faiputw tn BraneM spams developments 

* undertake user quality assurance 

* document systems 

* develop and document Finance user procedures 

* participate in user training 

* manage the work of a small systems admlnlstratioa unit 

Candidates should be qualified aceoratants and ab oul d have ariw ta n li a l experience of large 
financial systems implementation, including specification of user requirements, team 
leadership, development of nystems/nser procedures and training documentation, user 
acceptance testing, data conversion and transition and quality assurance. Experience as a. 
financial line manager would be an advantage. 

The appointment will initially be for twelve months, with a possibility that it wifi be 
converted thereafter to a permanent position. Salary c. £40 K. Based Centra] London. 

Interested applicants should send a CV (quote ret 17172/F) to Keentitewnt Office, BBC 
World Service, Bnsh House, Strand, London WC2B 4PH by Thursday 1 December. 

WORKING FOP EQUALITY OP OFFOBTUNTIY 


••• fc 









International Banking 


London 


c £40,000 + Benefits 


d 


to*.* 




Internationally Experienced Accountant. 

Group Accountant 


V \P 


Following the restructuring and expansion of its accounts function, 
our client, the autonomous and profitable UK subsidiary of an 
international bank, is seeking to recruit a dynamic, qualified 
accountant. 


S 


. . 4 . * ■# 


Age 30 to 35 


Full Expatriate Package 


Zambia 


| V „ .. ...... ; ■ 


'3fr'UAi/.;4 « /iXtof 


The role will involve die supervision of your own team, being 
responsible for regular reporting, analytical reviews and the setting 
and control of budgets. 


M 




l?S5gr 




" i A . 

/>XiW 


The successful candidate will have a hanebon approach with up 
to five years post qualification experience gained within a banking 
environment, including exposure to treasury products. 






To apply, please send a copy of your CV, with a covering letter 
explaining whv you are suitable for die position quoting reference 


*“r. 


FT080994 to: 




■Site 1 


Jonathan GiU, Douglas Llambias Associates, 
410 Strand, London WC2R 0NS 
Fax: 071 379 4820 


Our client is a diverse multinational group with operations 
across Africa, the Middle East, USA and Europe with a budgeted 
turnover for 1994/55 in excess of US S350 million. 

The Group, which is involved in construction, aviation, 
mining and international trade, seeks to appoint an exceptional 
individual for the position of Group Accountant based at the 
company's international Head Office in Lusaka, Zambia. 

Reporting directly to the Group Financial Controller, and 
supported by a small learn, you will be responsible for monthly 
management information, budgeting and forecasting as well as 
the further development of computerised management reporting 
systems at Head Office. Additionally, in conjunction with the 
Group Financial Controller, you witi have responsibility for the 
development of financial control processes, procedures and 
policies throughout the Group. 


You will be a qualified accountant .who has worked in a head 
office environment, with exposure to the development of 
management reporting systems. Ideally -you 'should Jiafe 
experience. of working overseas, either-from an international 
or UK base. ./ 

This important position offers a : substantial and 
comprehensive expatriate package on an initial two year 
contract (on either married or single status), and is likely to tead 
to long-term career opportunities either in Had Office or at 
subsidiary level. 

You should write * on closing a rosutno and 
details of current remuneration, together with 
daytime/evening telephone numbers, . quotln# 
reference 411/C on both envelope and letter, to the 
address below. 



Chryssaphes Hammiger Associates, Bechtel House, 245 Hammersmith Road, London W6 8DP. 


RECRUITMENT CONSULTANTS 




DIRECTOR OF FINANCE 


Buckinghamshire 


£50K package 


Amersham & Wycombe College is an Independent further education Corporation with 3.500 students and 350 staff located 
across three main campuses in south Buckinghamshire, the Cortege has been highly successful In diversifying ns markets 
and the annua] turnover Is £12rri having tripled over the past fax years. A significant area of growth has been in ihe 
provision of contract education and training services for major customers including the Pnsons Service and local TECs- 
Some of this activity is undertaken through the College's subsidiary trading company of which the Director of finance is 
the Company Secretary. 


The ChrecujT reports to the Chief Executive, provides reports fa the Board of the Corporation, the finance Committee and 
the Audit Committee and nsguLarty attends the meetings of these three committees. Following a reoent reorganisation, the 
Director rs now responsible for the College's MIS which adds 3 significant dimension to the breadth of responstblNiies of 
the post. The Corporation is seeking to appoint someone who can build upon and develop the excellent financial base which 
has been established since the College left the control of the County Council In April 1993. 


Applicants must have a recognised accountancy qualification, {eg ACA, ACCA. cima etc) together with a range of experience 
some of which must have been gained in the private sector preferably within large organisations. The ability to manage the 
development and Implementation of new com outer based systems Is an Important feature of the pose The College is 
pursuing delegated budgetary control which requires norvflnandd managers to manage (heir budgets and the Director Is 
required to provide leadership and support fa this culture change. The Director must have a {pod knowledge of ta> matters 
Including VAT and covenant payments. The Director has a team of 27 staff. 4 of whom are direct reports Including a 
personal secretary. 


Ideally in the aga range 3040 and seeking a significant career advancement the Director of Finance win play a major part 
In the further development of the College and in ensuring Its sound financial future. 

if you are Interested m this challenging post, please send a brief letter of application together with 
a hill CV to Triaa Leman. Director of Personnel, Amersham & Wycombe College. 

Stanley Hill. Amersham. Bucks HP7 9HN. 

The dosing date tar expressions of Interest <s Friday 25 November 1994. 


Financial Services Major - Broad Commercial Role 

Finance Director 




Mid/Late 30s (Ideal) 


Hampshire 


cJS60,000 + Bonus + Car 


t,.* -ijFAe/- 





Out Client is a lapidiy expanding suteitfoy oi&ne elite UtCs foremost 
'quality' financial services grows, and recognised as the irawvabve marks 
leadei wiihin its particular seel or. 

As s lesuti ol foe promotion of its present Finance Director to another 
key role wiltnn Ihe overall Group, a highly commercial individual is sought to 
jom ihe Company's dynamic managemeni learn having the necessary 
qualities to guide the organisation forward through its next stage of 
anticipated rapid growth. 

As one ol three executives reporting lo the Managing Director, your 
responsibilities, will be wide ranging and in addition to the Prance function, 
through resper live managers and a toiai faffing ot around 100. you will also 
be m charge of IT. Legal. Office Services and Business Process 
improvement Quite apart from ensuring the integrity of business plans, 
systems and controls, you will play a particularly Key role in further 
developing and delivering IT strategy a vital ingredient in successfully 
driving [he business forward. 


You are likely to be a graduate, qualified accountant, with previous 
'commenaaT finance experience at the sharp end wiWn a consumer service 
business, ideally financial services. You will be a team player capable ot 
running your own show within an empowered management environment, 
with Ihe necessary strong leadership, man-management abilities, 
communication skills and personal impact. In particular, you win need to be 
highly IT literte. lanitar with developments within the world ol applications 
softwam/hardwafe. and able to relate lo IT professionals. 

In addition to a first -class benefits package, co mprehen si ve relocation 
assistance is available if appropriate. Our Client is an equal opportunities 
employer and is happy lo consider applications from registered disabled 
persons. 

You should unite enclosing a resume together with caneot 
remuneration details and daytime/even lag telephone contact 
numbers, quoting Reference -411/A on both envelops and letter, 
to U>a address below: 


ft*** 


Ctuyssaphas Flammlger Associates. Bechtel House, 245 Hammersmith Reed, London W6 BOP. 


FINANCE DIRECTOR 
West Midlands 


FINANCE MANAGER 


To bring personal enthusiasm and professional expertise 
to this quality driven financial services organisation 




Our client is a profitable £15m turnover autonomous subsidiary of a major International 


c. £50,000 + car 


’ V*- 


Pmtaf&e 

NA Group 


Operating in the highly competitive FMCG sector they are a market leader within a niche 
area and have a reputation for quality and durability. 

As a result of restructuring they are seeking to appoint a commercially minded F.D. 
who has an eye for detail. Reporting to the M.D. the successful applicant will be 
responsible for the introduction and maintenance of good financial and working capital 
controls, margin analysis, forecasting, business planning and strategy, systems enhancement 
and the running of the accounts department. The position will also play an active pan in the 
managemeni team and will require full commitment of the individual to assist in the 
development of the business. 

To succeed applicants must be qualified accountants aged in their 30 ’s with a ‘hands-on’ 
style and strong financial control, good man management and interpersonal skills gained 
ideally within an FMCG environment. Promotional . 

prospects within this ‘blue-chip 1 Group are excellent. j jdKA / / 

Interested candidates should send a complete C.V to / / 

Nick Stephens, Nicholas Andrews, J J 

126 Colmore Row, Buininghain., B3 3AP. j Nicholas Andrews j 


This specialist company, part of a $85 billion international financial services group, turns over some £80 
million, with nearly two hundred people. Recent restructuring has brought a Managing Director with a new. 
vision for the future and a new organisation to achieve it - with total support from group top man agement. 
Success will depend upon enthusiasm for that vision, which is based on expert management, service 
excellence, effective market segmentation and high calibre people. A new Finance Manager is to be appointed: 
this is a job for a strong, astute and qualified finance professional, experienced in the service sector; with the 
know-how to manage the financial affairs of the company, the ability to identify with a young team, and the 
gravitas to play a major role in the general management of the operation. More than just highly efficient 
number crunchers, our best candidates will be innate team players and first rl people managers, who 
combine the commercial understanding to contribute both to the company’s planning process and to its 
marketing strategy with the entrepreneurial flair which would earn them credibility with the sales team. 

Please send full career details, quoting reference WE 4139 a on both letter and envelope, to Terry Whrd, 

Wird Executive Limited, 4-6 George Street, Richmond-upon-Thames, Surrey TW9 1JY 


Nicholas Andrews 

Fin annul RiVnntmrnt 


WARD EXECUTIVE 


LIMITED 

Eanlrnr Smth & SelnJu'n 


FINANCIAL 

CONTROLLER 


Finance Director 


West Midlands to £45,000, car, bonus, benefits 

c£80 million tumnvpr ^nhcidtarv nf j hiohiu rmnntod tininriallu chhl. t tv j. j . r . . 


This project management and 
maintenance company is undergoing 
considerable change. Tha UK 
parent is committed to an investment 
programme to assist the 
repositioning ol the business. An 
integral part of this plan is the 
need to strengthen the financial 
management of the company. 
Reporting to the Managing Director, 
the Financial Controller will be 
a member of a highly visible 
team dedicated to continuous 
business improvement. Management 
accounting, systems development, 
enhancing job costing procedures 
and engendering greater financial 


£35,000 4- Benefits 
Southampton 


CEDAR 


INTERNATIONAL 


Corporate • Executive 
DevSiopmekt « Am> * Resourcing • Pix 


awareness among project managers 
form key elements of the role. 
Candidates will be qualified 
accountants with at least five years' 
commercial experience in a 
contracting or project management 
environment. Strong systems 
knowledge, excellent commun- 
ications skills and a commercial 
outlook should help to ensure 
progression to the board in the 
near future. 

Please apply in writing, quoting 
reference FC232, to CEDAR 
International, 15 Bloomsbury Square. 
London. WC1A 2LJ. Telephone 
071-831 8383. 






THE ROLE 




THE QUALIFICATIONS 


« Graduate, qualified, accountant. Mid/late thirties. Commercially astute and teduiiclly strong. • Stmnefacksraunrt in i;~ .... 

• — i-ssssrarsK 


i h : i ki i 


SEARCH A SELECTION 



iWiMi 


APPOINTMENTS WANTED 




Small services company seeks newly 
qualified accountant, with PC experience. 
French not essential. 

Fax CV to (33) 92107788 


EXPERIENCE, TENACITY, ENERGY 


Commercially astute Financial Executive with 
international experience and 20 years background 
in Financial Services, IT and Consulting. 
Lateral thinking change agent. 

Available to take on challenging new assignments. 


Write to Box No. A2192. Financial runes. 
One Southwark Bridge, London SE1 9HL 



L 


For Acquisition/Disposal, Refinancing 
and Investigation Assignments. 


Quoted Pic Board level experience. 

Good communicator, flexible hands on style. 

Available part/fiill time basis in London & South East 


Phone/Fax 0787 882176 


Business Consultant, MBA 

10 years experience in AcOTintaacy/Financial Amlysis. 
European & E/Europe experience. 
Systems/PC literate. Seeking FC/FD position ' 
«n company start-up or small growing company 
{ /O £5m). Willing to relocate. 


. P 1 ^« Wl! «* B«. A31W 

Fldantlil Time,. One Southwark End* 
London S£! 9HL 









17 







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. ' ■ :-&• 






in brief 


VW makes strong 
third>quarter gain 

b:Kk *“» FOTU. In the 

aSSit2 taSh* -rt? benefits of ^8 demand 
costs almr^uHn^ 00 t0 54* !abour a^d components 

^S^JSSn e ,0SS ^ at 1116 start 

Procter gambles with nappy change* 

While pulp prices are rocket- 
ing worldwide, Procter & 
ti\£“ i/-. Gamble, tbe US consumer 
57 ■■ Products group, said it was 

cutting the US price of its 
Luvs disposable nappies by 



11 per cenL Procter & Cam 
ble, which makes 15 per cem 
of Its global revenues from 
disposable nappies, said it 
was cutting the price of 
Luvs to claw back market 

. , , - — share from cheaper, store- 

branded and private label nappies. Page 20 

BA and Qantas back to the drawing board 

Bnosh Airways and Australia's Qantas, in which 
BA holds a 25 per cent stake, are expected to re- 
examine ways of combining resources on their 
Australia-Europe services, after Australia’s Trade 
Practices Commission blocked a proposal which 
would have seen the two carriers jointly set air 
fares and freight rates on these routes. Page 19 

Hint of an upturn in Japan 

Japan’s lead in g construction contractors reported a 
shaip fall in profits for the six months to the end of 
September, but said that order books were starting 
to grow again for the first tima in four years. 

NAB surges 46% 

National Australia Bank, the strongest of the coun- 
try's four big banks, yesterday awnminnwri a 
A$I.71bn (US$L29bn) profit after tax, aimonnals 
and outside equity interests, for the year to end- 
September. Page 19 

Record period at Wal-Mart 

Store openings and a large increase in revenues 
helped Wal-Mart Stores, the US discount store 
group, increase net income by 13 per cent in its 
third quarter to October. Page 20 

Ericsson Jumps 88% 

Pre-tax profits at Ericsson, the Swedish telecommu- 
nications group, jumped 88 per cent in the first nine 
months to SKr3.49bn ($475m) from SKrl_85bn on the 
bad; of surging sales of mobile telephone equip- 
ment Page 20 


BP! increases bid for Attmroods 

Attwoods described the increased bid of £391m from 
Browning-Ferris Industries of the US as meagre and 
cynical, and urged shareholders to reject the offer 
in favour of the proposed break-up plan. Page 22 

Barclays makes preference buy back 

Barclays Bank is to reduce excess capital by buying 
back $50Gm of non-cumulative preference shares. 
Page 22 

Whitbread rises to £l888m 

Whitbread opened the UK brewer s ' reporting season 
with a sharper profit rise than forecast, thanks to 
strong gains in premium lagers. Page 23 






Companies In this Issue 


600 Group 

24 Lucas 

25 

ABN Amro 

20 M1M Holdings 

20 

ACT 

25 Mannesmarm 

18 

AT&T 

17 Marubeni 

19 

Asarco 

20 Matsushita 

17 

Ascot Holdings 

23 Meyer International 

25 

Banca efi Roma 

20 MBwafl Hofcfinga 

25 

Barratt Dots 

24 Mitsubishi 

19 

BoadvStemerts 

18 Mitsubishi Estate 

20 

Bourne End Props 

23 Mitsui 

18 

British Aiwsys 
Brockhampton 

19 Nat Austria Bank 19 

23 National Power 23, 11, 17 

Butts Mining 

26 Nordbankan 

18 

Campbell Soup 

20 Obayashi 

18 

Oar's MBIng 

24 Procter & Gamble 

20 

Clyde Blowers 

23 P'mauth & Stnderiand 

25 

Columbia 

17 Qantas 

19 

Oefhatsu Motor 

19 RJ8 Mining 

23 

DeU Computers 

20 RTZ 

20 

Bectrolux 

20 Randgotd 

18 

Ericsson 

20 Regalian Props 

24 

m 

24 hogentfrms 

24 

Fairfax, John 

19 Rockefeller Group 

20 

George Weston 

20 Scapa . 

23 Shimizu 

24 

Grampian TV 

19 

Grssnby 

23 Sony 1, 16. 

17,18 

Groupe Bull 

17 Swetibank 

18 

HanJy OB&Gas 

25 Taisei 

18 

H» on 

17 Tata Tea 

20 

Hofiday Chem Hdgs 

11 vw 

18, 18 


20 Wal-Mart 

20 


19 Whitbread 

23 

Kajima 

19 Wife Conoon 

18 

Kinross Gold 

20 Wootworth 

20 


Market Statistics 


^Annual reports santcs 32-33 

Benchmark Govt tarts 21 

Said futures and opttoas 21 

Band prices and yields 21 

OommnWas prices 2B 

OMdenda anrouncad. UK 22 

9*S currency rates 36 

EonOond prices 

Ftad interest Mess 21 

FT-A WdridtaSeas Back Pago 
FT Gdd Ubtos Index 3? 

FT/tSMA InS bond 8W 21 

FT-SE Actuaries intSces 31 


Foreign sxrtcnge 

36 

Eflta prices r 

21 

LWa equity options 

21 

London share service 

32-33 

London trad opttoro 

31 

Managed ftnds sendet 

3435 

Moray markets 

38 

Mow kid hand Issues 

21 

Naw Vbric Start ssrvice 

3849 

Recent touBs, UK 

31 

Short-term ht rates 

36 

US interest rates 

21 

Wold Stock Martas 

37 


Chief price changes yesterday 


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10 


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khd 11M - « 

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Attests 
kd Paper 


30S - IX 

m - i* 


Now Ybrfc priest ss 1230 pm. 
LOWON (Mbs) 


104 

91 

143 

*1 

41 

188 


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Baldwin* 

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81 

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14 


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mu 

998 


16 

sax 

730 

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25 

ArUqritt 

710 

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26 

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MU 

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18 

CradFonc 

734 

— 

21 

mu 

551 


35 

tokto pr^q 
Mm 

err 

4 . 

28 

Ife Print 

BBO 

+ 

25 

OMnaDup 

Kt 

+ 

26 

Ms 

Caps find 

845 


21 

Fate Com 

515 

- 

15 

WF tit 

627 


28 

WSsflonwa 

MB 

+ 

6 

Ms 

BaxeUDw 

173 

_ 

6 

Cannon 

284 

- 

S 


4 S 0 

- 

14 

Qatea Group 

173 

- 

B 

Hady (B S Gas 

I 4 T 

- 

9 

Kodak* 

64 

- 

S 

Beyer W 

369 

- 

44 

Rata 

<7 

- 

4 

Toworlnr 

83 

- 

3 

Trade PwttQ 

286 

- 

12 



★ 

FINANCIAL TIMES 

COMPANIES & MARKETS 

H^THIs FINANCIAL TIMES LIMITED t«W4 Friday November 18 1994 



J.Trevor 

&WEBSTER 


CHARTERED 5UBVEA OR4 
& COMMERCIAL PROPERTY AGENTS 

Expertise In Every Area 


SS CROSVENOR STREET LONDON » IX ODD 


6 2 9 2 15 1 


AT&T seeks Groupe Bull stake 


Hilton 
calls in 


By John Ridding In Paris 
and Tony Jackson In New York 

AT&T, the US telecoms company, is 
seeking to participate in the privatisation 
of Groupe Bull, the loss-making French 
computer group. 

The US group is proposing to ally with 
Quadral. the holding company which con- 
trols CSEE, the French electronics equip- 
ment concern, to take a joint stake of up 
to 40 per cent in Bull, according to sources 
in Paris. Quadral Is expected to be the 
majority partner in a joint offer. 

Unlike previous French privatisations, 
the sale of Bull will be conducted through 
the formation of industry partnerships 
rather than a public offer. The French 


government, which is seeking to reduce its 
holding in Bull from 76 per cent to below 
50 per cent before next spring’s presiden- 
tial elections, is due to launch a forma] 
tender for stakes in Bull by tbe end of the 
month. 

The planned privatisation has already 
drawn interest from NEC, tbe Japanese 
computer company which holds 4.4 per 
cent. NEC said last week it was planning 
to increase its participation and is thought 
to be seeking a 10 per cent holding. 

Industry observers said that the pro- 
posal from AT&T and Quadral would be 
compatible with the offer from NEC. Tbe 
US group and its French partner would 
seek to expand Bull's activities in systems 
integration and information services and 


to capitalise on the convergence between 
the telecoms and computing industries. 

It is thought that AT&T, which refused 
to comment directly on the deal, will not 
want to involve itself directly in Bull’s 
computer operations. It said: “We are very 
pleased with the capabilities of our own 
computer unit and its success in markets 
around the world. AT&T is very much 
interested in advancing the openness of 
telecommunications markets in general, 
and in particular in countries such as 
France where markets are closed.” 

French government officials declined to 
comment on tbe proposals for Bull’s priva- 
tisation. but they are in pressing need for 
industrial partners to secure the compa- 
ny's position. Bull has incurred combined 


losses of more than FFrl5bn ($2.93hn) over 
the past three years and has required sub- 
sidies of FFrllbn since the beginning of 
1993- 

Losses have been sharply reduced since 
the implementation of a recovery plan by 
Mr Jean-Marie Descarpentries, who took 
over as chairman last autumn. Tbe Euro- 
pean Commission, however, has demanded 
that the company be privatised as a condi- 
tion for approving the last tranche of state 
aid. 

Despite tbe potential attractions of the 
offer from AT&T and Quadral. there are 
possible hitches. In particular, Mr Descar- 
pentries is thought to favour a dispersed 
shareholding structure including an 
increased stake for NEC. 


Alice Rawsthorn reports on the death of the Japanese romance with Hollywood 

Tarnish sets in on Sony’s Brawn beaten 


dream of the silver screen 


W hen tbe news broke 
five years ago that 
Sony, the powerful Jap- 
anese electronics group, had 
pounced on Columbia and Tri- 
star, the famous Hollywood stu- 
dios, the reaction of the US media 
was no thing short of hysterical. 

Sony’s £L4bn acquisition, fol- 
lowed by the news that Matsush- 
ita. another force in Japanese 
electronics, was buying MCA for 
$6.1 bn, unleashed a stream of 
rhetoric about the Asian invasion 
into America’s cultural heartland 
- Hollywood. 

This mood soon changed as it 
became apparent that Sony and 
MCA’s sober-suited executives 
were finding it difficult to man- 
age their egocentric new subsid- 
iaries. Sony yesterday demon- 
strated how difficult its 
Hollywood adventure had been 
by announcing a first- half Y280bn 
($2.9bn) loss due to a Y265bn 
writeoff on Sony Pictures Enter- 
tainment (SPE), which includes 
Columbia and Tristar. 

The scale of the write-off out- 
stripped the most pessimistic pre- 
dictions. Against the backdrop of 
last month’s public showdown 
between Matsushita and its 
unruly executives at MCA. it has 
strengthened suspicions that 
Sony and Matsushita blundered 
badly by making expensive 
acquisitions in the US entertain- 
ment industry. 

Ms Rebecca Winnington- 
Ingram, analyst at Morgan Stan- 
ley in London, said: “If there is a 
moral to this story it’s that Japa- 
nese electronics groups do not 
make good parents for Hollywood 
movie studios.” 

Things seemed so different five 
years ago when Sony and Mat- 
sushita embarked on their US 
spending spree. The consumer 


electronics market was maturing 
and tbe Japanese groups faced 
fierce competition from rivals in 
lower cost countries sucb as 
South Korea, Malaysia and the 
Philippines. 

Sony and Matsushita desper- 
ately needed to diversify. Both 
took the view that the most 
appropriate area for investment 
was the software side of their 
business: the film studios and 
record companies that produced 
the movies and music pumped 
out by their hardware. 

Entertainment also offered 
excellent growth prospects. The 
emergence of new forms of distri- 


The gulf between 
corporate Japan 
and Hollywood was 
wider than feared 


button in cable and video, cou- 
pled with the globalisation of 
consumer taste and the creation 
of lucrative markets in eastern 
Europe and south-east Asia, 
augured well for long-term sales 
of English language films and 
music. 

The hitch was that the gulf 
between the ethos of corporate 
Japan and the world of Holly- 
wood was wider than they had 
feared. One New York analyst 
said: “These LA guys seem like a 
flakey bunch of prima donnas 
here in Manhattan. Over in 
Tokyo they must seem com- 
pletely crazy.” 

“Crazy” is probably an under- 
statement for Matsushita's view 
of the behaviour of Mr Lew Was- 
serman. veteran chairman of 
MCA, and Mr Sidney Sheinberg, 


his president. Tbe two men 
became multi-millionaires by sell- 
ing their shares to Matsushita 
and have since made no secret of 
their contempt for their new par- 
ent company. 

Tempers seemed to cool after 
last month’s showdown. How- 
ever, the intensely private Mat- 
sushita has been left in an unpal- 
atable situation whereby one of 
its most important subsidiaries is 
run by two men who have pub- 
licly criticised its performance. 

Sony is in a similar predica- 
ment in tbe music industry 
thanks to Mr George Michael, the 
British singer who has mounted 
an expensive legal battle to sever 
his contract with its CBS music 
subsidiary. Mr Michael is now 
reported to be in talks with Mr 
David Geffen, who is leaving 
MCA to set up his own entertain- 
ment group. 

However. Sony's problems in 
music pale beside its traumas 
with films. It has over the past 
five year s inv ested an estimated 
$4.5bn in SPE on top of the $8.4bn 
acquisition price. Mr Peter 
Guber. who spent most of that 
money, resigned last month as 
SPE chairman. His departure 
ended a grim year of internal 
rows, allegations linking senior 
SPE executives to the Heidi 
Fleiss sex scandal and a poor per- 
formance at the box office. 

SPE had an erratic year in 1993 
with some successes, such as 
Philadelphia, but a disappoint- 
ment in Last Action Hero, its 
5126m Arnold Schwarzenegger 
vehicle. This year has been 
worse. Variety magazine esti- 
mates that SPE’s share of the US 
box office has fallen from 14.7 per 
cent in 1990 to 9.8 per cent this 
year. Sony’s studios are also bot- 
tom of this year's league table for 



Gross revenues per f9m, 
and market share 


Jan-Oct 1994 


% 

Paramount 

653 

14.3 

Universal 

402 

105 

BusnaVtata 

mo ’ 

185 

Pdr •. ... 

. .. 31* 

104 

Naw Una 

24.1 

5.7 

Warner Bros 

23.4 

1S2 

Columbia 

iai 

4.7 

Sornse Variety 


Sony's share of the US fkm market since the Columbia acquisition 


10 


1990 91 


Tom Hanks In PMtedolpMR 


average gross per film with 
518.1m against 555 Jim for Para- 
mount, the top studio. 

Yesterday’s writedown marks 
Sony’s attempt to clear the debris 
of its first five troubled years in 
Hollywood. Its studio also faced 
substantial second-quarter losses 
for mopping up abortive develop- 
ment projects and lingering legal 
suits. After Mr Guber's departure 
it now. In theory, has a chance to 
start afresh. 


But some observers suspect 
Sony and Matsushita's plight is 
not due to cultural incompatibil- 
ity, but to a flaw in their strat- 
egy. This suggests they should 
have stuck to hardware. 

Sony and Matsushita have 
already made modest invest- 
ments in information technology. 
But both privately admit they 
could have invested mare aggres- 
sively had it not been for their 
commitment to Hollywood. 


advisers 
for sell-off 

By Richard Tomkins 
to New York 

Shares in Hilton Hotels, the US 
hotel and casino group, surged 
almost 17 per cent during early 
trading after the company yes- 
terday effectively put itself on 
the market for the second time 
in five years. 

The company has engaged 
Smith Barney, the Wall Street 
investment hank, to advise on a 
number of strategic alternatives 
including a possible sale of the 
company, outright or in parts; a 
spin-off of one or more of its 
businesses; a recapitalisation; a 

merger, a share repurchase pro- 
gramme; or a similar transac- 
tion. The purpose of tbe move 
was to enhance shareholder 
value, but the company would 
not elaborate. 

Hilton Hotels owns, manages 
and franchises the Hilton chain 
of hotels in the US. operates sev- 
eral more hotels under the Con- 
rad name internationally, and 
has extensive gaming operations, 
mostly in Las Vegas. Its market 
capitalisation, following yester- 
day’s early jump, is $3.2bn. 

The company once operated 
Hilton hotels in big cities all 
over the world, but It sold the 
Hilton Internationa] business in 
1966. That company is now 
owned by Ladbroke, the UK lei- 
sure group, and Hilton is no lon- 
ger allowed to put its name on 
hotels outside the US. 

Some 24.5 per cent of Hilton 
Hotels’ stock Is held by Mr Bar- 
ron Hilton, the company's chair- 
man and chief executive. A Hil- 
ton family charitable foundation, 
the Conrad N. Hilton Fund, con- 
trols another 8.6 per cent 

When Conrad Hilton, the com- 
pany's founder, died in 1979, his 
son Barron fought a 10-year 
legal battle to stop “outsiders” 
gaining control of what was then 
a family company. In 1989, less 
than a month after winning a 
partial victory by securing 24.5 
per cent of the company's equity, 
Mr Barron Hilton pot his stake 
up far sale. 

Asked why he had changed his 
mind, he said at the time that be 
was acting as his father would 
have done if he had seen the 
huge prices being paid for prime 
hotels. But a year later, Mr Hil- 
ton was forced to take the com- 
pany off the auction block again 
because there were no serious 
bidders. After years of weakness 
in the US hotel industry caused 
by the lingering effects of reces- 
sion, Hilton's hotel operations 
have recently been performing 
well. 


National Power plans £500m 
buy-back at government offer 


By Simon Davies in London 

National Power, the UK 
electricity generating company, 
is set to soak up more than 
£50 0m ($820m) of the govern- 
ment's forthcoming £2.5bn offer 
of the power company’s shares 
through a bay-back plan 
announced yesterday. 

The purchase of up to lQ2^m 
National Power shares is aimed 
at using its enormous cash 
resources to boost earnings per 
share. It should also improve 
demand for the government offer. 
PowerGen, its listed competitor, 
said it was considering a similar 
move, after recent buy-backs on 
the stock market 

The UK government is due to 
sell off its remaining 40 per cent 
stakes in both PowerGen and 
National Power in February. The 
National Power share buy-back 


would represent around 21 per 
cent of the government offer, and 
up to 8 per cent of its issued 
shares. 

The buy-back will come from 
the 295m shares that the Trea- 
sury had ear-marked for interna- 
tional institutions, but the inter- 
national tranche should still 
amount to dose to £lbn. 

National Power said the deal 
would result in an increase of 
between 3 and 4 per cent in its 
earnings per share, and that its 
dividend would be increased by a 
similar percentage. It plans to 
reduce its dividend cover, to 
allow further increases. 

Tbe company also announced a 
new £500m revolving credit facil- 
ity, and unveiled significant 
board changes, including the 
appointment of Mr Keith Henry 
as chief executive. 

Its share price rose 7p to Slip 


yesterday, helped by the 
announcement of a H per cent 
increase in pre-tax profits before 
exceptional items to £24 Lm, and a 
16 per cent increase in dividends. 

PowerGen, which bought back 
0.6 per cent of its shares earlier 
this year, said: “We have bad dis- 
cussions with the Treasury. We 
are considering the possibility of 
further share buy-backs, but we 
are keeping all our options 
open." 

Some institutions complained 
the share buy-back will be han- 
dled via the government offer, 
rather than through the stock 
market. 

National Power will pay the 
same price as international insti- 
tutions, with a discount for pay- 
ing up immediately, rather than 
in three instalments. 

Lex, Page 16; Details. Page 23; 
People. Page 11 


Hewlett shares at 10-year high 


By Louise Kehoe 
in San Francisco 

Hewlett-Packard’s share price 
reached a 16-year high yesterday 
when the computer and electron- 
ics company reported stronger 
than expected fourth-quarter 
results. Earnings rose 60 per cent 
on a 23 per cent revenue 
increase. 

H-P, the largest US computer 
company after IBM, is setting the 
pace in the market for "client- 
server” networks of computers 
and dominates the growing mar 
ket for printers used with per- 
sonal computers. 

■ Fourth-quarto: sales and order 
growth was “outstanding and 
well balanced across all geogra- 
phies”, said Mr Lew Platt, H-P 
c h a ir man, president and chief 
executive. 


“Earnings grew substantially 
with all major businesses contri- 
buting.” 

By the mid-session yesterday 
H-P shares were trading at 
up from Wednesday's close of 
$98%. Net earpingK for the fourth 
quarter, ended Oct 31. were 
5476m, or $1.83 a share, up from 
$298m or $1.18 a share in the 
same period last year. (Earlier 
this year H-P changed its earn- 
ings per share calculations to 
indude employee stock options 
increasing the effective number 
of shares outstanding by about 
Em to 26Qm.J 

Net revenue for the quarter 
was $7.0bn, an increase of 23 per 
cent US sales were $3.3bn. up 20 
per cent, while international 
sales rose 26 per cent to $3.7bn. 

H-P said that new orders dur- 
ing the fourth quarter were val- 


ued at $6.9bn, an increase of 25 
per cent over the same period 
last year. The order growth rate 
si gnals continuing strong perfor- 
mance in fiscal 1995. 

As a percentage of net revenue, 
cost of goods sold rose to 62-2 per 
cent from 61.4 per cent in last 
year's fourth quarter. 

For the full year, H-P reported 
a 36 per cent increase in net earn- 
ings to $1.6bu from $1.2bn. Net 
earnings per share were S6.14, up 
from $4-65. 

Mr Platt said that H-P is 
starting 1995 in a strong competi- 
tive position. “We just finished 
an excellent year," he said. 

“But given our size, and the 
fact that our growth rates have 
exceeded those of many markets 
in which we compete, we're not 
assuming that our recent order- 
growth rates will continue." 


This^imourvxmcni jppcjjsasa nutter of record only. 



The Magic Pub Company Ltd 

£62,000,000 

Revolving Credit and Term Loan Facilities 

applied in financing the acquisition of 
262 former Chef & Brewer pubs 
and 15 Countryside Inns 

Agent 

Robert Fleming & Co. Limited 

Security Agent 

Uoyds Bank Capital Markets Group 

Funds Provided by 

Lloyds Bank Pic 
Robert Fleming fir Co. limited 
Societe Generate (London Branch) 

Clydesdale Bank PLC 

Legal Advisor Valuer 

Clifford Chance Chesterton International PLC 

Arranged by 

Flemings 

Mirtwnihi'i I'wo 

KiAra/ a tnmdicrntihe'sarnitaiimlFl'niiciAuihiraij Lmalaiundthe Union Stad F^dbim-r 


r 








18 


FINANCIAL TIMES FRIDAY NOVEMBER lfc 3994 


INTERNATIONAL COMPANIES AND FINANCE 


VW on course for full-year 
profit after strong quarter 


By Andrew Fisher in Frankfurt Volkswagen 


Volkswagen climbed further 
back into profits in the third 
quarter, with the benefits of 
rising demand and its tough 
action to cut labour and com- 
ponents costs almost wiping 
out the loss made at the start 
of the year. 

The German motor group 
said the after-tax loss for the 
first nine months was down to 
DM73m ($47.1m) from 
DM1 .53 bn in the same period of 
1993. Its third-quarter net 
profit of DM136m compared 
with DMl33m In the second 
quarter, and a loss of DM342m 
in the first three months . In 
the third quarter of 1993, it 
made a net profit of DM70m. 

For the full year, VW said it 
expected to "at least break 
even". In 1993, it made a group 
loss of DML9tm. “The underly- 
ing trend Is basically very posi- 
tive," said Mr Stephen Heil- 
man, motors analyst at UBS. 

Ue forecast fourth-quarter 


'Share pride (DM) 
550 



SoWKK FTGraphrto 

profits of more than DM40Qm, 
making full-year earnings of 

around DM340m. 

Under the uncompromising 
leadership of Mr Ferdinand 
Pigch, VW - whose group 
operations include Audi Seat 
in Spain and Skoda in Czecho- 
slovakia - has striven to bring 
down the cost of labour and of 
bought-in parts and materials. 


Despite the improved figures, 
however, the shares closed 
DM4.50 lower at DM455 yester- 
day. 

VW said turnover in 
January-Septembqr was -L3 per 
cant higher at DM5&8bn. Unit 
sales rose 6.7 per cent to 2.3m 
vehicles; in Germany, they 
slipped by 3.4 per cent to 
662L500 units, but abroad they 
showed an 11.4 per cent 
increase to 1.64m. 

In western Europe, excluding 
Germany, deliveries were up 6 
per cent to 857,000 vehicles, 
with a 22.5 per cent improve- 
ment. to 226,000. in North 
America. 

Because of model changes in 
Germany, third-quarter turn- 
over was fiat 

Mr Reitman said the Jufy- 
September result showed 
clearly the impact of the drive 
to cut component costs - 
spearheaded by the controver- 
sial Mr Jos4 Ignacio Lopez de 
Arriorttia - and of the reduced 
working week. 


Bosch-Siemens 
buys Gaggenau 
of Germany 

By Andrew Baxter 

Bosch-Siemens Hausger&te, 
Europe's second biggest pro- 
ducer of white goods, is 
strengthening Us position in 
upmarket domestic appliances 
with the purchase of Gag- 
genau. the long-established 
German manufacturer. 

Terms were not disclosed, 
but Gaggenau has about 900 
employees and annual sales of 
DM215m ($L38.6m). 

A restructuring programme 
already under way at Gag- 
genau will continue, said 
Bosch-Siemens, which will 
maintain the Gaggenau brand. 

The deal continues the trend 
of consolidation in the Euro- 
pean domestic appliances sec- 
tor. It comes a few days after 
Munich-based Bosch-Siemens 
said it wonld link with China's 
Wuxi Little Swan to build a 
washing machine factory in 
China, The $3Qm venture, in 
which Bosch will have a major- 
ity stake, will produce Europe- 
an-designed washing marhines 
for the Chinese market 


Cutbacks at Willis 
Corroon after fall 


By Ralph Atkins 
Insurance Correspondent 

Willis CoTroon. the UE 
insurance broker, yesterday 
launched a sweeping restruct- 
uring of its main businesses, 
involving substantial job cuts, 
in an attempt to correct an 
“unsatisfactory^ profits perfor- 
mance. 

The group said it was mak- 
ing an exceptional charge of 
£40m (S65.6m> this year to 
cover reorganisation and 
streamlining costs, about half 
of which may be for redun- 
dancy expenses. The cost of 
surplus properties leased by 
the group is also being written 
off. Willis's target Is to reduce 
costs by at least £30m a year - 
about 5 per cent of operating 
expenses - but it refused to 
say how many jobs might be 
lost It employs about 11.300 
people worldwide. 

The announcement came as 
the group reported a fall in pre- 
tax profits in the first nine 
months of 1994 to £54.4m from 
£70- lm. It blamed poor trading 
conditions but also said 


expenses in continuing 
operations had risen by 6 per 
cent partly because of the cost 
of reforming its US construc- 
tion operation. 

Operating revenues fell to 
£549.3m in the first nine 
months from £576. 3m. The 
group will pay a fourth interim 
dividend of 1.65p in January. 

Willis's shares closed up 8p 
at 146p with analysts welcom- 
ing the strategic changes. 

But there was scepticism 
that target cost savings could 
be achieved quickly. Profit 
forecasts for the full year have 
been cut to about £L5m_ 

Willis's restructuring also 
reflects mounting competitive 
pressures In insurance broking 
as premium rates stabilise or 
fall and big client companies 
move towards managing risks 
internally or buying fee-based 
consultancy rather than com- 
mission-based broking ser- 
vices. 

Mr Max Taylor, chief operat- 
ing officer, said, “there are 
attractive returns to be made 
in the insurance broking busi- 
ness”. 


Mannesmann 
bounces 
back to 
the black 

By Mchael Undemann In Bonn 

Mannesmann, the engineering 
group which is beginning to 
benefit from earnings in its 
telecommunications activities, 
staged a turnround to a profit 
in the first nine months of this 
year, following a DM27m loss 
in the first half. 

The group's profits, which 
were not specified, “improved 
substantially", while turnover 
rose to DM21.1bn in the first 
nine months, up 9 per cent on 
the year before. New orders 
jumped 18 per cent to 
DM24. 7bn. 

The group’s telecommunica- 
tions division, boilt around 
the successful D2 mobile 
phone network which now has 
about 760,000 clients, is expec- 
ted to report its first Full-year 
profit. It broke even last 
December. 

The improved results at the 
Dfisseldorf based group were 
driven mainly by “dynamic" 
exports but it also saw 
improvements in the domestic 
market. The strongest per- 
formers were the automotive 
technology and hydraulics 
divisions. 

Krauss-Maffei, one of the 
world's leading tank makers, 
reported “exceptionally high” 
orders following contracts 
from Sweden and the Nether- 
lands. 

The group was also helped 
by a torn round at its pipe 
unit, one of its oldest activi- 
ties. It represents almost 20 
per cent of group turnover and 
has lost money in recent years. 
Sales rose 18 per cent, lifted by 
better turnover at the group's 
Brazilian unit, while orders 
rose 2 per cent to DM3.2bn. 

Demag, the plant division, 
increased orders “signifi- 
cantly” following a rise in 
exports and the Incorporation 
of Van Dorn Demag, a further 
step in Manuesmann’s strat- 
egy of strengthening its pres- 
ence in the US market 
VDO, the automotive tech- 
nology business, saw orders 
rise 19 per cent in spite of 
sluggish” growth in the car 
industry. Sales rose 9 per cent 
But problems remain at Hart- 
mann & Braun, the group's 
electronics division, which 
made a loss. 


Steady headway for Swedish banks 


By Christopher Brown-Humes 
in Stockholm 

The pattern of lower loan 
losses and weaker underlying 
results which has character- 
ised the Swedish banking sec- 
tor t-his year was highlighted 
yesterday when Nordbanken 
and Swedbank unveiled their 
nine-month figures. 

Nordbanken. the biggest 
casualty of Sweden’s 1992 
banking crisis, disclosed a 
SKr3.54bn ($48 1.8m) operating 
profit for the period, after 
being lifted by last December's 
acquisition of Gota Bank. 

Pro-forma figures, excluding 
Gota, show profits rising to 


SKriLTfim from SRt2.48bn. 

Swedbank achieved a 
SKr2.61bn profit, allowing an 
unexpectedly strong third 
quarter which prompted it to 
raise its full-year forecast and 
promise a dividend. Its result 
at the nine-month stage in 1993 
was a SKr2.65bn deficit. 

Both hanks saw a sharp 
reduction In loan losses due to 
the recovery in the Swedish 
economy and lower interest 
rates. Excluding Gota, Nord- 
banken's loan losses fell to 
SKrL35bn from SKriUlhn. 

Swedbank’s loan losses tum- 
bled 62 per cent to SKx3.35bn 
from SKr8.86bn. It also bene- 
fited from a SKrL58bn capital 


grrin on the sale of shares in 
Robur, a fund management 
,unit •: , 

Before loan losses, pro-forma 
figures from. Nordbanken 
showed a SKr4.12tm profit, 
down fircm SKrS fSbn, while 
Swedbank’s result, including 
the capital gain, was 
$Er&96bn, against SKre^ltuL 
Weaker loan demand and 
tighter margins lowered .both 
banks’ net interest income: 
They also had lower capital 
gains on band sales than in: 
1993.- 

Nordbanken, bailed out by 
the state in 1992 and doe to be 
privatised next year, forecast 
full-year profits of SKri.6bn, 


saying final-quarter operating 
profits should be. at least : as 
.much ; as the ,• SKxlOKHm 
achieved in ti» third quarter; 

privatisation, wfil ffliable the 
g o vernment to recoup same of 
the SKrSObn worth rtf support 
which . underpinned NoriSm- 
r ken and Gota - Bank at the 
height of the wrariryVfmati 
dal sector crisis. „\.. ,.Yf' 

Thegradualreductiontejhe 
■ hawk' s loan losses and problem 
loans is expected ter continue,' 
- providing there is no sudden 
upswing m interest nttet At' 
the end of September, net proh. 
: lem - toans'- - amounted to 
'SEr6Jhzvagednst SKr?.ghn at 
. the start of the .year. .. ,--r J ; 


Why Budge is ready to di 



S o now we know why RJB 
Mining was able to offer 
what seemed so much for 
the English mining regions of 
British Coal. 

If the company's projections 
are correct and it can make 
£220m (8361m) in pre-tax prof- 
its in 1999. as it says it can in 
papers being shown to institu- 
tions, then its proposed £914m 
acquisition may end up 
looking rather cheap. 

But it is a large it According 
to coal and electricity industry 
executives and analysts, seri- 
ous questions also hang over 
other assumptions which the 
company is using to gather 
support for one of the most 
audacious bids seen on the 
London stock exchange for 
some years. 

Much is riding on the out- 
come of the £l.lbn fund-raising 
exercise which RJB and Bar- 
clays de Zoete Wedd have 
embarked upon. 

If it falls, ministers will be 
forced to look for another 
buyer among the bidders it 
passed over when choosing 
RJB. 

The government's already 
flagging privatisation pro- 
gramme would also suffer a 
blow, and the credibility oF 
both BZW and N. M. Roths- 
child, the merchant bank 
which advised the government 
on the bids and their feasibil- 
ity, would be damaged- 
RJB, founded by chief execu- 
tive Mr Richard Budge, floated 
on the stock exchange last 
year in preparation for the bid. 
It appears to be confident of 
raising the £425 m. in equity 
and £628 m in debt needed 


Michael Smith examines RJB 
Mining’s bid and profits 
projections for British Coal 


to finance the bid and 
provide working capital. BZW 
is said to have conducted 
more “due diligence” on the 
bid than any other in recent 
years. 

There are still many institu- 
tional investors interested in 
providing funds. “People want 
to invest In coal,” said Mr 
Charles Kernot, analyst at 
Credit Lyonnais Laing. 

Nonetheless few institutions, 
if any, have made commit- 
ments. 

“I am impressed by the com- 
pany's management but the 
complexity of the bid means I 
need more guidance on the 
numbers,” said one potential 
institutional investor. 

There will be no shortage of 
that in the next few weeks. At 
least some of the advice on 
offer is likely to be either non- 
committal or even negative. 
“He may be able to make 
£22Qm in 1998 hut it looks 
tight.” says Mr Kernot 

O ne of RJB’s rival bid- 
ders said that if the 
company was able to 
make as much as it projects 
then it will be the most profit- 
able coal company in the 
world, “certainly more profit- 
able than Hanson’s Peabody or 
RTZ**. This, he says, Is highly 
optimistic in a country where 
costs have traditionally been, 
and remain, are high by world 
standards. 


From the point of view of 
potential lenders for the £628m 
of debt RJB wants to raise, the 
crucial period will be the years 
before 1998. 

RJB predicts that by that 
time it will have paid off all 
the bank debt which amounts 
to gafim (the other £lQQm wQl 
be financed through a' longer 
term corporate Ixmd). 

This provokes differing opin- 
ions among rival bidders and 
analysts who have computer 
models to run the RJB figures 
through. One says debts wDl 
stiff be high in 1996; another 
believes borrowings can be 
cleared, saying “key assump- 
tions” in the RJB presentations 
on both price and volumes 
prior to 1998 seem “eminently 
feasible” and that sale of 
stocks, valued at £314m, can 
clear some of the debt 

The key assumptions are, 
after all, largely predictable. 
RJB will Inherit contracts to 
sell 29m tonnes of year to 1996 
to the electricity generators at 
prices already agreed. It 
assumes that, it ran sell around 
35m a year tonnes of coal in 
the next three years but that 
includes the domestic and 
industrial markets and so 
seems plausible. 

Most coal industry execu- 
tives believe that the debt will 
be successfully raised in the 
next few weeks (although there 
is less of a consensus about 
whether it can be paid off by 


1998). Placing the shares to 
raise £425m may prove a more 
critical test as.fWtentiaT inves- : 
tors will focus the less prti- 
dictable years -after 1968. V ■■ 

In presentations to potential 
equity investors; RJB Is saying 
■ fhafr the initial dividend yield 
is expected to' be about 4j» per . 
cent but. that there will be a. 
“policy of rapid dividend 
growth with substantial 
increases expected .after the 
reduction of debt”: " 

RJB assumes demand for the 
coal produced mtdsokf from 
the regions it is buying win 
remain constant at about 
85m a year fbrthe rest off the 
decade. . 

owevar the; post-1998 ' 
difficulties were high! 

. lighted - yesterday 
when ' Mr John Baker, chief 
executive of National. Power; 
the UK Coal industry's biggest 
buyer, said his company would " 
like to buy UK coed but. ejec- 
ted that after 1998 volumes 
would foil and prices become , 
more competitive. 

According to most forecasts 


will : decline markedly, after 
1998. . . - w.- 

Some executives think RJB 
will struggle to ieH 25m immas 
a year from the coal regions 
after 1998. . . . 

Intense competition . with 
other producers seems iaevita- 
ble. That makes the £L32 a 
gigajoule (at today's prices) 
assumed for 1998 and 1999 Eo 
optimistic. A more apiffopriate- 
figure would be £L15 or lres, : 
say some forecasts. 

Tables, Page 23 


This announcement appears as a matter of record only. 


Foreign Colonial 


Credit Lyonnais Laing 

has raised 

£113,000,000 


by a Placing and Offer 
for Subscription of 'C Shares 


for 


Foreign & Colonial Emerging Markets 
Investment Trust PLC 



CREDIT LYONNAIS LAING 


J.P. Morgan & Co. 
Incorporated 

USI200.000.000 
Subordinated floating rate 
nates due August 2QQ2 

In accordance with the 
pm visions of the notes, notice 
is hereby given that for the 
interest period 18 November 
1994 to 21 February 1995 the 
notes wiU carry an interest rate 
of 5.8125% per annum. Interest 
payable on the relevant 
interest payment date 21 
February 1995 will amount to 
USS76.69 per USS5.000 note. 

Agent Morgan Guaranty 
Trust Company 

JPMorgan 


r 


October 1994 


Thi* arawuncemant appear* 
u> matter of record only. 


\ 




Wells Fargo & Company 

USt200.000.000 
Floating rate subordinated 
capital notes due 1998 

The notes will bear interest at 
6.0625% per annum for the 
interest period 18 November 

1994 to 21 February 1995. 
Interest payable on 21 February 

1995 will amount to USS15D.98 
per USS 10.000 note. 

Agent: Morgan Guaranty 
Trust Company 

JPMorgan 


The Republic of Venezuela 
U.S. $211,139,000 

Collateralized Floating 
Rate Bonds due 2020 
USD Discount Series B 
In accordance with (be provisions at 
the Bonds, notice is hereby given 
Ihai for ihe Interest Ported from 
November 18. 1994 to May IB. 1995 
the Bonds wiU carry an Interest Bate 
of per annum The interest 
payable on ihe relevant interest 
payment dale. May 18. 1995 will 
be U.S. S35.19 per U S. $1,000 

principal amount. 


ByltiQBttftntatrwBaA.HA 

tetiw. fees* 

November 18 . <994 i 


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US$100,000,000 
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Ornmyanmi m am haaJIMw <H DmUt MB, a, RrpmtH c at daft? 

London Branch 

Notice Is hereby given that the Rate of Interest tor Coi*on No 3 a 
h« been fixed at 8.1875% pa end that the interest payable on the 
retevant Interest Payment Date. February 21 . l905Fnleinecfof 
US$ 10,000 nominal ol the Receipts win be US$1 63.2ETarS in 
lis& B M 2 M US * 250 '° 00 n ° m,nal of ,h ® Receipts will be 


November 18, 1994, London 
t By: CKbartt, NA. (tetsuor Services), Agent Bank 


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CASR - FUTURES, OPTIONS AND 
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ON'"" — 



INFORMATION; BiaoJcr VikJ 

ECW 1HY 

TM;^4TO7i»a«ntn 




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a. y ' 

'.7 .•."'■•q . 

':%• 




FINANCIAL TIMES 


FRIDAY NOVEMBER 18 J994 


19 


INTERNATIONAL COMPANIES AND FINANCE 


J apanese trading houses 
forecast profits growth 


By William Dawkins 

in Tokyo 


Trading 

Companies 




dee 


P 




- % 


t 

'jo*.. 


- -■& 


Japan’s five 
o«egest trading 

companies, 

which provide 
a diversified 

health of the economy at larce 
yesterday forecast their fiS 
profits rises in four years 

Trading house earnings', sen- 
sitive to domestic and "foreign 
demand for goods and services 
and to changes in world com- 
modity prices, were down or 
flat in the first half of the year, 
according to financial results 
released yesterday. 

However, the traders, at the 
heart or Japan’s vast hhretsu 
corporate families, forecast 
that recurring profits - before 
tax and extraordinary items - 
in the full year to next March 
would, on average, rise 3.5 per 
rant. They will be helped by 
the slow recovery of the Japa- 
nese economy and a reduction 
in the debts built up to finanm. 
takeovers and diversifications 
in the 1980s. Yet the revival 
will be constrained by the 
strength of the yen, the main 
reason why full-year sales are 
expected to fall by an average 
of 3 per cent 

All of the top five expect a 
rise in full-year recurring prof- 
its. except for Marubeni, which 
nevertheless expects a rise at 
the net leveL 

Tins implies that the second 
half will show a significant 
improvement on the first half 
when three out of the five 
reported a fall in recurring 
profits by comparison with the 
first six months of last year. 
Mitsubishi, the strongest of the 
group, and Itochu, reported 
only marginal profits 
increases. 

First-half sales declined by 
an average of 2.5 per cent 
across the sector, except at 
Marubeni It managed a 1 per 


Interim results to September 1994 (YbnJ 


Seles 

Recurring 

proftt* 

Net 

profit 

Marubeni 




1994 


15.587 

5.308 

1993 

6,740,5 

20.625 

7.032 

Forecast, year 

15,000.0 

38.000 

13.000 

Mttatri 




1994 

7,495,3 

21.69! 

6.778 

1993 

7.657.0 

23.535 

8.377 

Forecast, year 

15,000-0 

48.500 

21.500 

Mitsubishi 




1994 

6,635.8 

27.B33 

8.337 

1993 

6.918.4 

27.626 

8.035 

Forecast, yea' 

13,0000 

55.000 

15.000 

Itochu 




1994 

7,729.5 

18.629 

4524 

1993 

7.878.4 

(8.507 

3.721 

Forecast, yea 

15.500.0 

38.000 

9.000 

Sumitomo 




1994 

7.218.7 

17.010 

7.444 

1993 

7,553.1 

1B.D13 

9.111 

Forecast, yea 

15.000.0 

36.000 

15.000 

■ aofctfa •aaaa.irao dara And m 


&xm* cemcarw npota 


cent sales increase, helped by 
exports of industrial plant - 
worth around 30 per cent of 
gross profits - to other Asian 
countries. 

Sumitomo also stood out 
from the pack for its 16 per 
cent rise in operating profit in 
the first half, forecast to rise to 
42 per cent for the year. It has 
a higher exposure to metal 
trading than the others and so 
has benefited from the strong 
rise in copper prices during the 
period, although sharp cuts in 
head office costs also helped. 

Sumitomo and and Marubeni 
have their respective speciali- 
ties, machinery and Totals, to 
thank for the fact that they 
were the only traders to man- 
age a rise in export sales in the 
first six months. The rest saw 
the yen value of the their for- 
eign sales eroded by the con- 
tinuing rise in the Japanese 
currency, by 6 per cent against 
the dollar over the period. 

Domestic demand for foreign 
consumer goods started to 
climb sharply in the spring, 
but the overall domestic econ- 
omy was still sluggish enough 


to produce a decline in total 
sales for most traders' import 
businesses. International trade 
in cars and steel was generally 
weaker, while food imports 
rose, said Mr Kazuhiko Usami, 
managing director of the Japan 
Foreign Trade Council, the 
trading bouses* association. 
Marubeni was worst hit, with 
an 18.9 per cent decline in 
imports. 

Trading companies’ profits 
improvement is expected to lag 
Japan’s general economic 
recovery because they con- 
tinue to be burdened by write- 
ofls on ill-judged experiments 
with financial engineering in 
the 1980s. 

The sector’s extraordinary 
losses on the disposal of 
so-called tokkin. in-house 
investment trusts, fell on aver- 
age and are expected to con- 
tinue to decline. At the same 
time, some of them are still 
paying start-up costs on diver- 
sifications outside their core 
trading businesses, like Mitsu- 
bishi in satellite communica- 
tions and Sumitomo in cable 
television. 


Capital spending cutbacks 
batter construction groups 



Construction 


By Gerard Baker En Tokyo 

Japan's 
constrnctioiT 
contractors are 
continuing to 
suffer from 
industry's long 
abstinence from capital invest- 
ment, but their performance 
seems to have passed its worst 
The country’s leading contrac- 
tors yesterday reported a sharp 
fall in profits for the six 
months to the end of Septem- 
ber, but said order books were 
starting to grow again for the 
first time in four years. 

Capital expenditure accounts 
for 75 per cent of the turnover 
at the leading companies, and 
so an increase in revenues 
from housing construction 
could not offset a fall in office 
building business and lower 
private investment projects. 
Delays in the government's 
budgetary process caused a 
slump in public works projects. 

Among the four largest com- 
panies, only Kajima was able 
to increase sates in the period. 
However, the overall decli ne in 
turnover was less than expec- 
ted - combined sales at the 
four companies foil by 5 per 
emit - and Kajima and. Oba- 
yashi both raised their recur- 
ring profit forecasts slightly for 
the foil year. 


• Interim results to September 1994 (Ybn) 

-■■ '* V : . : 

SNrebu 

Kajima 

OfaeyesM 

Tataei 

■Safest; 

878.0 

837.9 

740.8 

6753 

Change. bn year 06) 

-8.1 . 

'+fL2 

-5,7 

-14.4 

Recurring profits* 

3&9 

31.0 

27.9 

152 

Change on yea 06) 

-20.7 

-2A 

-25.7 

-523 

Forecast, year 

3£L0 

62:0 

43.0 

35.0 

• Change on year 06) • 

-72.0 

. -8.0 

-25.0 

-52.0 

' - Net profits 

11.6 


85 

5.6 

Change on yea 06) • 

-2SD 

-S&5 

-26.0 

-595 

V Forecast, year - •• 

- iao • 

iao 

11.0 

13.0 

Change on yea 06) -■ 

-4.0 

. -1.1 

+0.6 

27.3 

*8ata«emM>hw«nfk 



Sore* oampawrapots 


Profits for the first half were 
still well below last year’s 
already depressed levels, how- 
ever. Aggregate recurring prof- 
its - before extraordinary 
items and tax - at the big four 
fell by more than 15 per cent as 
intense competition in the sec- 
tor forced prices down. 

However, a revival in private 
sector capital investment 
plans led to a 16 per cent 
rise in order books at TaiseL 
while Obayashi’s orders were 
down slightly- Kajima alone 
reported a steep fall, as the 
company was shut out of pub- 
lic works projects because of 
its involvement in bribery 
cases. 

Capital spending by Japa- 
nese corporations expanded 
rapidly in the late 1980s, as 
asset prices increased and com- 
panies borrowed heavily to 


finance growth. Since 1990, 
however, investment has 
collapsed along with asset 
prices. 

The share of non-housing 
building in gross national prod- 
uct has fallen to 4.2 per cent, 
its lowest level for 35 years. 
The decline has forced compa- 
nies to restructure, reducing 
staff levels and administrative 
costs. 

However, Mr Bernard S i ma n . 
construction analyst at UBS in 
Tokyo, said capital expenditure 
was expected to increase as the 
economy began a gradual 
recovery. “These results sug- 
gest that with orders rising 
and margins improving, 
thanks to rising prices and 
restructuring efforts, the con- 
tractors' performance should 
improve substantially over the 
next few years." he said. 


Sharp cut 
in bad debt 
costs helps 
NAB to 
surge 46% 

By NUdd Tait In Sydney 

National Australia Bask, the 
strongest or the country's four 
big banks, yesterday 
announced a A$1.71bn 
(USSi.29 bn) profit after tax, 
ahnormats and outside equity 
interests, for the year to end- 
September. 

The figure, a record for any 
Australian company, com- 
pared with A$i.i3bn in the 
previous 12 months, and trans- 
lated into earnings per share 
of 127.3 cents, a 4&2 per cent 
rise over the 1992-93 result. 
The abnormal gain was 
A$50m, against A 559m last 
time. 

NAB. which takes in the 
Clydesdale, Yorkshire and 
Northern banks in the UK as 
well as National Irish Bank 
and Bank of New Zealand, said 
it had declared a final divi- 
dend of 39 cents a share, mak- 
ing a total for the year of 74 
cents. This is an increase of 48 
per cent over the previous 

annual tn tnl 

Although NAB had never 
been as troubled by the prop- 
erty market's collapse and bad 
debt experience as its big local 
rivals, the strong result - in 
line with analysts’ forecast - 
confirms the extent to which 
tiie Australian banking sector 
is bouncing back from the 
recession of the early 1990s. 
NAB said yesterday's result 
came after a reduction in the 
charge for bad and doubtful 
debts, to A$179m from 
A5604m. Total impaired loans 
after provisions fell by 37.2 
per cent to A|1.7bn. 

The wiatn Australian Rank 
division saw Its contribution 
to operating profit rise by 34.1 
per cent, to A51.03bzu with the 
UK/lrisb group making 
A 5428m, up from A$293m pre- 
viously. NAB said the latter 
progress came mainly from a 
reduction in the bad debt 
charge and improved effi- 
ciency levels. The New Zea- 
land operations made A$143m, 
up from A$95m previously. 

In spite of the result NAB 
shares weakened yesterday 
and closed 34 cents lower at 
AS10.36 on the Australian 
Stock Exchange. 

Some analysts said that 
investors had been hoping for 
even higher profits; others 
suggested that, while the 
interest margin had widened 
in the second half, cost-con- 
tainment in the second six 
months was disappointing. 
The cost-to-income ratio for 
the year overall was 55 per 
cent, down from 55.6 per cent 
in 1993 (excluding restructur- 
ing costs). 

The bank said it expected 
farther interest rate rises in 
tiie current year, both in Aus- 
tralia and overseas, bat was 
looking to improve perfor- 
mance further as economies 
picked op. 

However, Mr Don Argus, 
managing director, struck a 
cantionary note in Melbourne, 
saying he did not want to fore- 
cast 1994-95 profits “because, 
while saying there is good eco- 
nomic growth being projected 
for all of the markets in which 
we are represented. I still 
believe there are some signs to 
suggest tbat the system's 
growth that we have experi- 
enced over the past 12 months 
may not be sustainable." 


Daihatsu Motor up 
strongly to Y2bn 




Daihatsu Motor, Japan’s 
second biggest manufacturer of 
min icars, posted a 280 per cent 
rise in recurring profits - 
before extraordinary items and 
tax - for the first half of the 
current fiscal year. It attri- 
buted the surge to a cost- 
cutting drive. Renter reports 
from Tokyo. 

Daihatsu, owned 16 per cent 
by Toyota Motor, announced a 
recurring profit of Y2.09bn 
($21 .2m) to end-September, 
compared with Y55lm a year 
earlier. 

•Hie profit Jump marked the 
second straight year-on-year 
gain for Daihatsu, and was 
achieved in spite of a dip in 
sales to Y345.02bn from 
Y362JJ7bn a year ago. - ■ 

Daihafim’s operating profit 


rose by Yl^fibn. The company 
described this as the difference 
between a Y5.6bn loss due to 
poor sales and a saving of 
Y6.8bn through cost-cutting 
measures. 

Domestic sales fall l.l per 
cent from a year earlier to 
182,620 vehicles in the first 
half, with demand subdued 
ah Ba d of the launch of a com- 
pletely remodelled Mira - Dai- 
hatsu’s mainstay model - in 
September. 

■' Exports fall 50.1 per cent to 
4£383 as shipments of assem- 
bled cars, to China were 
replaced by exports of car com- 
ponents. 

Daihatsu raised its forecast 
of recurring profit to Y5bn in 
the foil year from an earlier 

Y4bn. 


Randgold focuses 
on mineral rights 


Randgold & Exploration said 
its West African mineral rights 
were likely to be grouped 
together and listed as a sepa- 
rate company in early 1995, 
Renter reports from Johannes- 
burg. It also said it would con- 
sider a rights issue early 
next year to refinance Durban 
Roodepoort Deep gold mine if 

current talks on its possible 
merger with Rand Leases Gold 
Mining Co were concluded suc- 
cessfully. 

A number of proposals on 
the sale of Randguid’s exten- 
sive mineral rights were still 
being considered, Mr Peter 
Flack, the new executive chair- 
man, said after announcing 
poorer animal results. 

He said the company’s Initial 
enthusiasm about the potential 


of Randgold 's minerals rights 
bad actually increased. It 
seemed most likely that the 
West African rights would be 
listed as a group in the first 
half of 1995. 

Pre-tax profits slipped to 
R4.9m l$l.39oi) for the year to 
end-September from Rl5Jm a 
year ago. and to R3.7m from 
RS.3m at the net level. The 
company passed its final divi- 
dend. 

Mr Flack said Randgold had 
decided to take the foil R12.6m 
costs of an Intended restructur- 
ing at its head office in the 
financial year to September 30 
1994. 

It had raised R4Gm for work- 
ing capital at Durban Deeps 
gold mine and to fund 
retrenchment packages. 


Black still keen to lift stake in Fairfax 


Mr Conrad Black, the Canadian media 

entrepreneur, said yesterday he still hoped 

to be allowed to InCTease his stake in John 
Fairfax, the Australian newspaper pub- 
lisher, to 85 per cant However, he said he 
had no plans to talk to members of the 
federal government on his current trip to 
Australia, writes Nikki Tait. 

Mr Black, whose UK-based Telegraph 
group holds 24.8 per cent of Fairfax’s 


shares, is limited to 25 per cent under 
Australian foreign ownership rules for 
media assets - a level he has previously 
indicated is unsatisfactory. 

With Mr Kerry Packer, the Australian 
businessman, and Mr Rupert Murdoch also 
holding smaller stakes in Fairfax, there 
has been persistent speculation that Mr 
Black will eventually sell out. However, 
alter yesterday’s annual meeting of Fair- 


fax shareholders, Mr Black said his stake 
was “the ultimate long-term bold”. 

At the annual meeting. Sir Laurence 
Street, Fairfax chairman, said the group 
had reached a “profitable and strategically 
important phase” and was "currently 
negotiating the establishment of strategic 
allianrw and joint ventures with local and 
international partners in pay-TV and other 
media outlets”. 


BA, Qantas reassess flight plan 


B ritish Airways and Aus- 
tralia's Qantas, in which 
BA holds a 25 per cent 
stake, are expected to re-exam- 
ine ways in which resources on 
their Australia-Europe services 
could be combined. The move 
follows yesterday's decision by 
the Australia’s Trade Practices 
Commission to block a pro- 
posal which would have seen 
the two carriers jointly set air 
fares and freight rates on these 
routes. 

In its ruling, the TPC, Aus- 
tralia's competition watchdog, 
said it believed the proposed 
arrangement was likely to 
lessen competition, and that 
benefits to the public from the 
services tie-up would he lim- 
ited. It was sceptical about the 
airlines' argument that they 
could achieve significant cost- 
savings, and tbat these would 
be passed on to customers as 
lower fares. 

Professor Allan Fels, TPC 
chairman , said agreement 
was “very wide-ranging and 
open-ended’', adding that price- 
fixing was viewed as “one of 
the most serious forms of anti- 
competitive conduct”. He also 
noted that BA and Qantas had 
almost hair the Australia-Eu- 
rope air services market, and 
that smaller players did not 
compete in terms of frequency 
and convenience of flights. 

The official response from 
the carriers was brief; 
both said they were disap- 
pointed and needed to study 
the draft decision carefully. 


The TPC ruling, however 
raises two immediate ques- 
tions. First, where does the 
relationship between British 
Airways and Qantas go from 
here? Secondly, what repercus- 
sions does the TPC decision 
have for the Australian govern- 
ment's planned stock market 
Dotation of its remaining 75 
per cent interest in Qantas 
next year? 

The proposed deal would 
have been significant for the 


selected routes between Aus- 
tralia and Europe and Austra- 
lia and south-east Asia. 
Finally, they sought to co-ordi- 
nate flight scheduling, sales 
and marketing operations on 
some of the routes. 

The routes concerned 
involve big money. According 
to Qantas, Australia-Europe 
services generate around 
A$l.Sbn a year for the two car- 
riers combined, and about a 
Quarter of its own intema- 


Nikki Tait looks at the prospects for the 
two airlines on the lucrative 
Australia-Europe routes in the wake of a 
decision to block their fares proposal 


carriers - a first, large step 
towards implementing the 
broad commercial agreement 
they signed when BA bought 
its 25 per cent stake in Qantas. 
for AS66Sm (USSSOOm), last 
year. 

Although the airline charac- 
terised their proposal as a 
“co-operation” arrangement, 
their planned “pooling” of 
resources was to be extensive. 
They wanted to fix prices - 
that is, jointly determine air 
fares and freight rates - on all 
routes between Australia 
and Europe, including those 
going via the US, and between 
Australia and south-east 
Asia. 

They also wanted to jointly 
manag e capacity and yields on 


tional capacity is tied up Dying 
these routes. 

In submissions to the TPC, 
the two airlines argued the 
routes had not been profit* 
spinners in the past, and that 
public benefits would result if 
their viability improved. 

Qantas, in particular, used 
two arguments. It noted that a 
rise in profitability would 
Increase the amount which the 
gnw pmont — and the Austra- 
lian taxpayer - could hope to 
receive when the airline was 
floated on the stock market 
next year. Conversely, it 
warned tbat if the agreement 
was not allowed, it might have 
to reduce Australia-Europe ser- 
vices in an effort to contain 
these low returns. This would 


penalise the travellmg public. 

The carriers estimated the 
gain from the proposed agree- 
ment at about A$90m annually, 
of which two-thirds would go 
to Qantas. In the context of an 
airline which made a profit 
after tax and abnormals of 
A?156m in the last financial 
year, and which described a 
target of more than A$400m as 
”1116 right return on sharehold- 
ers' funds”, this would be a big 
bottom-line help. 

However, the TPC was 
highly sceptical about the car- 
riers' numbers. It said other 
confidential information from 
Qantas contradicted this 
assessment. 

At face value, then, yester- 
day’s decision would appear to 
be a blow to the airlines’ poten- 
tial relationship. But the story 
will almost certainly not end 
here. 

One possibility is that 
Qantas simply sticks to its 
threat and prunes back ser- 
vices to Europe. However, the 
TPC’s ruling is only a draft 
decision, and interested parties 
can ask for a “conference" on 
it within the next two weeks. 

Yesterday, more thought 
seemed to be directed at how 
the two carriers might address 
the TPC’s concerns, and still 
move towards operational 
rationalisation on the routes. 
Some comfort, at least, seemed 
to be taken from the thought 
that It was price-fixing which 
stuck most firmly in the 
watchdog's gullet. 


U.S. $150,000,000 

9 per cent Depositary Receipts due 1994 

Issued by Bankers Trustee Company Limited (the Trustee") 
evidencing entitlement to payments in respect of deposits with 
Monte dei Paschi di Siena, London Branch (the "Bank") 
payable solely from the proceeds of a loan made to 

Nuova SAFIM - Societa per Azioni Finanziaria 
Industria Manifatturiera 

(the “Borrower") 

NOTICE IS HEREBY GIVEN That a Meeting of the holders (the -RecalpttiofcJers*} of the above-mentioned Depositary Receipts (the "fleceipts'Jconsiftuted by a 
Depositary Agreement and Trust Deed dated 27th November. 1989 and made between the Bank and the Trustee as amended by a Supplemental Trust Deed dated 
10th May. 1993 made between the Bank and the Trustee (together the “Trust Deed") w<D be held at 11.00 a.m. (London time) on 25th November. 1894 at 1 Appotd 
Street. Broadgate, London EC2A 2HE for tha ptxpose of considenng and. H thought fit, passing the following Extraordinary Resolutions. 

EXTRAORDINARY RESOLUTIONS 

(1) THAT this Meeting of the holders (the ‘Reoeiptholders") of the U.S. S15OPOQ0OO 9 per com. Depositary Receipts due 1994 constituted by a Depositary 
Agreement and Trust Deed dated 27th November. 1989 and made between Moma del Paschi dl Siena. London Branch (the ■flank*) and Barters Trustee 
Company Limited (the "Trustee") as amended by a Supplemental Trust Deed dated 10th May. 1993 made between the Bank and the Trustees 

0) having considered the settlement proposal (the "Proposal*) negotiated between the Committee (the “Commltue') consisting of Racapthotders' 
representatives whose appointment was confirmed at a Meeting aRecaipthoUare held on 15th November, 1994 end Nuova SAFIM— Societa per Azioni 
Finanziaria Industria Manftafturlera (the “Borrower*) andtor the Borrower's Liquidator andtor the Borrower's legal advtsars a copy of which Propose] has 
been initialed by the Chairman of the Meeting and copies of which were made available at the offices of the Trustee and the Paying Agents (as defined In 
the Trust Dead), hereby approves the terms of the Prop o sal and authorises the Trustee to request the Bart to enter into a binding agreement with the 
Borrower and/or the Borrower's Liquidator on the terms ol the Proposal; 

(ii) authorises the Trustee to do any act or thing, and to concur wHhtheBank In the execution of any document, necessary to give effect to this Extraonfinary 
Resolution. 

(2) THAT mis Meeting ot the holders (the -Recelptholdere*) of the U.S. $130,000,000 9 per cent. Depositary Receipts due 1994 constituted by a Depositary 
Agreement and Trust Deed dated 27th November, 1989 and made between Monte dei PaBchi di Sena, London Branch (the “Bank*) and Bankers Trustee 
Company Limited (the -Trustee*) as amended by a Supplemental Trust Deed dated 10th May, 1993 made between the Bank and the Trustee:- 

(i) having considered the settlement proposal (the “Proposal*) negotiated between the Committee (the "Committee*) consisting of Reoeiptholdera’ 
repretiomaVveswhoee appointment was contirmadataMeetingorReoBlpthokiersheUonlSth November. 1994 and Nuova SAFIM-SooetiperAzlanl 
Finanziaria Industria Mantfatturiera (the ‘Borrower*) and/or the Bo r ro we rs Liquidator and/or the Borrower's legal advisers a copy of which Proposal has 
been initialled by the Chairman ot the Meeting and copies of which were made available at the offices of the Trustee and the Paying Agents (as defined in 
the Trust Deed), hereby approves the terms of the Proposal stfo)ect to such amendments as have been agreed by Receiptfioldere at this Meeting by a 
majority correcting ot not less than three-tourths of the votes cast thereon, authorises tha Trustee ana the Committee to agree any further changes to the 
taxi of the Proposal which may be required »o give effect to the amendments agreed at this Meeting and auihorises the Thistee to request die Bank to 
enter into a binding agreement with the Borrower andtor the Borrower’s Liquidator on tha terms oflhe Proposal subject to such amendments; 

(H) authorises the Th«tee to do any actorthing. and to concur with the Barttntite execution of anydocument, necessary to give eftact to tWs Extraordinary 
Resolution. 


13 ) 


THAT this Meeting of the holders (the -ReeeipthoWere*) of the U.S. $150000000 9 par cam. Depositary Receipts due 1BB4 constituted by a Depositary 
Agreement and Trust Deed dated 27th November. 7889 and made between Monte dei Paschi di Siena. London Branch {the VanlQ and Bankers Thrstee 
Company Limbed (the -Trustee") as amended by a Supplemental Trust Deed dated 10th May, 1993 made between the Bank and the TIusibb:- 
(I) hereby auihorises the Trustee, in consultation with the Committee referred to in (1) and (2) above, to taka steps to facifitatB the prompt initiation by the 
Bank of appropriate legal action against Nuova SAFIM - Sotietk per Azioni Fmanziaria Industria Manifanuriera (the ‘Borrower) andtor the Borrower's 
Liquidator in the event trial the Borrower andtor the Borrower's Liquidator fails fully to perform Its/their obligations under any agreement entered Into 
pursuantto the sertameni propose referred »in(i) and (2) above (amended as agreed at tMs Meeting) by ttwduedatespecffledvr such agreement or by 
such other date as Is agreed a this Meeting: 

(iil authorises CTia Trustee to do any act or thing, and to concur with the Bart In Vie execution d any document necessary to give effect to this Extraordinary 
Resolution. 


(4) 


THAT this Meeting of the holders (the ‘RecetpChokJere*} of the U.S. $150,000/300 9 per cent Depositary Receipts due 1994 constituted by a Depositary 
Agreement and Trust Deed dated 27llt November, 1989 and made between Monte dei PascM dl Siena, London Branch (the "Bank! and Barters Trustee 
Company Limited (the Trustee*) as amended by a Supplemental Trust Deed dated 10th May. 1993 made between the Bart and the Trustee:- 
(i) hereby authorises the Trustee, in consultation with the Comntinee referred toln (l) and (2) above, to taka steps to fadEtate the prompt initiation by the 
Bank ot appropriate legal action against Nuova SAFIM - Sodetb per Azioni Finanziaria Industria Manifatturiera (the "Borrower*) andtor the Borrower's 
Liquidator In the event that agreement cannot be reached with the Borrower andtor the Borrowers Liquidator on the terme of ine setttemenl proposal 

dated 24th Novemebr, 1989 between the Borrower, the Bart andlfonkers Trust Company as Agent Bart on 27th Noramber, 1994 or on suchoSherdata 
as may be agreed at this Meeting; 

(II) authorises the Trustee to do arty act or thing, and to concur with the Bank in Iheaxecution of any document necessaiy to give effect to Ms Extraordinary 
Resolution. 

BACKGROUND 

Under Decree Law No. 340 of 18th Jufy 1992, aa subsequently renewed with amendments, Ents Pwtscip&zioni e Ftaanzfamento Industria ManHatturiera - 
EFU fEFUr*), (the parent ot the Borrower) was pieced Into liquidation. Subsequently, the Borrower wee also placed Info llqtedation. 

On T7th February; 1993, the decree tew governing the liquidation of EFIM was converted Into taw (No£3) (the “taw*). Article 5.1 of the law stales that the 
Liquidating Commissioner ahaH provide for the payment of debts of subsMtarias which, unde r tha Bouklatton plan, are placed In liquidation, if and to the 
extent that the debts were assumed at a Bme when the subsidiary in question was (dtrectfy or fmfirectty)vfioay-c«med by EFIM, ft Is afao contemplated by 
Article 6.4 of the taw that medium and long-term financing agreements outstanding aa at the date of the liquidation of EFUI and extended by banka or 
financial Institutions are to remain in force, In accordance with their terms, unffl maturity. 

The law, end subsequent amendments to tt have Included arrangements tor the funding of the liquidation (taking into account Article 5.1 of the law). 
Consequently on the beats of the taw the Committee has been advised by its Malian i 


arto the prevb^ of adequate funding) there is no le^timate baste for the liquidating Conintistfoner to contest, or withhold (In whole or in parQ payment 
o! a ctolm In the Hqutdatton (or principal and Interest due and other coats save for default i n terest. s anctions or penafdea from the B or row er . 

The attention of Receipthotders is particutarty drawn to the quorum required for the Meeting which is set out In paragraph 2 ot "Voting and Quorum” 
below. RECEIPTHOLDERS W1SWNGTO ATTEND AND/OR VOTE ATTHE MEETING SHOULD ALSO NOTH THE EXPUUUfnm SET OUT MPARAGHAPHI 
BELOW OF THE PROCEDURES FOR OBTAINING VOTING CERTIFICATES OR GIVING VOTING INSTRUCTIONS M RESPECT OF THE MEETING. 

In accordance with normal practice the Trustee expres s es no opinion on the msifis of the proposed arrangement s but the Trustee has authorised It to be 
stated that It has no objection to the Extraorrflnary Besotutio ns befog s ubmi tted to the ne c ctp thotdera tor Bielr consideration. This notice has been given 
at the direction ot the Committee. 

VOTING AND QUOTUM 

i. A Receiptholder wishing to attend and vote at the Meeting in person must produce at the Meeting either his Receptfs) or, in tfie case of Receipts issued In 
bearer form ("Bearer Receipts*), a valid voting certificate or valid voting certificates issued by a Paying Agent rotative to the Bearer Receipt (s) In respect of 
wtoch he wishes to vote. A holder of Bearer Receipts not wishing to attend and vote at the Meeting in person may either deliver hta Bearer Receipt(s> or voting 
certrficatB(s) to the person whom he wishes to attend on his behall. orghre a voting instruction (on a voting Instruction torm obtainable from the specified office 
oianyotthe Paying Agents specified below) inMnicting a Paying Agent to appoxitaproxy to attend and vote at the Meeting In accordance wtth his instructions. 
Saarw Ftecerpc may be deposited until trie Bme being 48 hours befora trie trmesflxsdf or riofcSngttrflfcteeting (or. i I app/lCTble, any adjoumedMaa ting of such 
Meeting) but not thereafter with any Paying Agent or (to the satisfaction ol the Paying Agent) held to hs order or under Its control by the Operator of the 
Euroclear System or by CEDELS A., or any other person approved by tt, lor the purpose of obtaining voting certificates or appointing proxies in respect of the 
Meeting. Receipts so deposited or held wffl not be released until tire earSer ot the condusian of the Meeting (or. If applicable, any adjournment of such 
Meenng) and either, In the case ot a Receiptholder who has obtained a vaW voting certificate or vaSd voting certificates, the surrender of trie voting certfflcale 
(si to the Paying Agem which Issued the same; or in the case ofaReca&hofclsr who has given voting tnstrumions instructing a Paying Agent to sppoiraapnny 


i the Meeting (or, ft 


to attend and vote at the Meeting in accordance with his instructions, the surrender, not less than 48 hours before the time 1 
appftcabie, any adjournment of such Meeting) is convened, of the voting Instruction receipts Issued In respect thereof. 

A holder ota Receipt In registered torm (‘Registered Receipt*) may by an instrument In writing ( a ^ form of proxy!, in the lorm available from the specified office 
of the Transfer Agent, in tne English language, signed by the RecefOtolder or. In the case or a corporation, executed under its common seal or signed on Its 
behalf by an attorney or a duly authorised officer of the corporation and delivered to the Transfer Agent not later than 24 hours before the time (bead tor the 
Meeting, appoint any person (a "proxy*) to aa on his or its behalf in connection with any Meeting or proposed Meeting of ReceiptfioJders. 

Any holder of a Registered Receipt which® a corporation rnw by defeating to the Transfer Agent rati faaer than 24 hours before the time fixed for the Meeting a 
resolution of its directors or other governing body In the English language authorise any person to act as its representative (a ‘representative*) In connection 
with any Meeting or proposed Meeting of Receiptholdars. 

2. The quorum required at the Meeting tor the passing of the Extraordinary Resolutions (the 'Resolutions*) set out above is two or more persons present in 
person holding Recelpas or voting certificates or being proxies or representatives and hotoftta or representing in the aggregate not less than fhrae-quwtm In 
principal amount of the Receipts tor the time being outstanding. Itwahinaquartar of an hour from the time appointed for the Meeting aquorum for the passing 
of the Resolutions is not present ai the Meeting, the Meeting shall stand adjourned for such period, not being less than M nor more than 42 days, as may be 
appointed by the Chairman of the Meeting and the Resolutions wffl be considered at the adjourned Meeting {notice of which wffl be given to the 

Receipthotoers). The quwum required to consider the Resolutions ai an adjourned Meeting will be two or more persons present tit peraon holding Receipts or 

voting certificates or befog proxies or representatives and holding or representing in the aggregate not lass than one-half in principal amount of the Receipts 
tor ihe time being outstanding. , _ . 

3. Any questmn submitted w the Meeting wffl be decided on a showofhttxte unless a poB to dutydemanded by the Chatman oflhe Meeting or the Bank or by one 

or more persons present hokting one or more Receipt or voting certificate or being proxies or representatives and holding or representing in the aggregate not 
less than one-firoeih part of the principal amount ot the R«sip» for (he time being outstanding. On a show of hands every person who is present In person and 
(voduoes a Reoeipf or voting certificate or is a proxy or representaiivs shafi have one voe. On a poS every person who to so present aha)) have one wota in 
respect cl each U.S. S1.000 in principal amount olthe Receipts so produced or represented by ihe voting certfflcale so produced or in respect ol which he is a 
proxy or representative. ^ 

4. To be passed, each Extraordtoary Resolution requires a majority In tavour consisting oi not less than ttiree-fourthsot the votes cast thereon, ti passed, the 
Resolutions will be binding upon all the Receiptholders, whether or not present at the meeting and whether or not voting, and upon aU the holders of coupons 
relateig to the Receipts. 

AVAILABILITY OF DOCUMENTS 

Copies of the Trust Deed, the Loan Agreement and the seitiamem proposal referred to above may be Inspected and copies ol the voting certificates and othar 

documents referred to above may be obtained by Raceipmoklers from the specified office of any of tha Paying Agents given below, 

PfflNORU. PAYING AGENT 

Bankers Trust Company. 1 Appold Street. Broadgate. London EC2A 2HE 
PAYING AGENTS 

Barters Trust Luxembourg 5A.14 boulevaid F.D. Roosevelt, L-2450 Luxembourg 
Swiss Bank Corporation. 1 AeschenvorstadL CH-4002 Basis 
REGISTRAR 

Bankers Trust Company, Four Albany Street, New York. NY 10015 
TRANSFER AGENT 

Bankers Trust Luxembourg S.A., 14 boulevard F.D. Roosevelt. L-2450 Luxembourg 

Dated 18th November. 1994 Bankers Thistee Company Limbed 

A number oMURQ 

Tfus Notice has been approved by an authorised person forth® purposes ot tha Financial Services Aa 1986. 

THIS NOTICE IS IMPORTANT. IF RECEIPTHOLDERS ARE M ANY DOUBT AS TO THE ACTION THEY SHOULD TAKE THEY SHOULD CONSULT THEIR 

STOCKBROKER, LAWYER, ACCOUNTANT OR OTHER PROFESSIONAL ADVISER WITHOUT OELAK 



20 


FINANCIAL TIMES FRIDAY NOVEMBER 18 1994 


INTERNATIONAL COMPANIES AND FINANCE 


Ericsson disappoints with 
88% nine-month advance 


By Christopher Brown-Humes 
in Stockholm 

Pre-tax profits at Ericsson, the 
Swedish telecommunications 
group, jumped 88 per cent in 
the first nine months to 
SKr3.49bn ($475m) from 
SKrUJSbn on the back of surg- 
ing sales of mobile telephone 
equipment and tight cost con- 
trol. 

Although the result was in 
line with expectations, it disap- 
pointed a market hoping for 
better figures and the group's 
B shares fell 5 per cent to 
SKr439 on profit-taking. This 
was in spite of a strong third- 
quarter order intake and confi- 
dent remarks about prospects 
from Mr Lars Ramqvist, chief 
executive. 

The group's radio communi- 
cations division, including 
mobile telephony, underpinned 
the performance with a 56 per 


cent advance in nine-month 
3»1 pr to SKr26-3bn. Its strong 
showing, based on rapid 
growth in the US, Japanese 
and Australian markets, 
enabled the group to lift over- 
all sales 29 per cent to 
SKr54.6bn. 

In the third quarter, radio 
communications sales rose 47 
per cent to SKr9.20bn from 
SKr&24bn, more than half total 
sales of SKrl8.06bn. Mobile 
telephony sales were 72 per 
cent higher. 

The group’s other big divi- 
sion. public communications, 
saw nine-month sales expand 
to SKrl7.2bn from SKrlS.ltm. 

Mr Ramqvist said full-year 
results would be "significantly 
higher" than last year’s 
SKr3Jbn- 

“We retain our clear leading 
position in the world in mobile 
telephone systems, with 
sharply rising installations of 


all established systems. We 
also see a very positive trend 
in the area of mobile tele- 
phones. with a growing share 
of the world market-” 

Order bookings were 30 per 
cent higher in the third quar- 
ter. taking them to SKrtO.lbn, 
ahead 22 per cent, for the first 
nine months. 

The group's success in lifting 
orders for 12 consecutive quar- 
ters was described by Mr Ram- 
qvist as “evidence that we 
truly have very competitive 
offerings for our customers". 

The group's fastest-growing 
markets are in Asia, where 
nine-month sales climbed 80 
per cent to SKrli.4bn from 
SKr&Sbn. 

China and Japan are now the 
company's fifth and sixth larg- 
est markets after the US, Swe- 
den. Italy and the UK. 

Analysts forecast full-year 
profits of about SKr5-5bn. 


Notebook computers help Dell 
Increase sales in third quarter 


By Louise Kehoe 
in San Francisco 

Dell Computer, the US 
personal computer manufac- 
turer, reported improved third- 
quarter results following its re- 
entry into the market for note- 
book computers and a renewed 
focus on “direct” sales via mail 
order and telephone. 

Sales increased 17 per cent to 
$885m from $757m in the same 
period last year. Net income 
for the quarter was up sharply 
at $41.4m, or S3 cents a share, 
from $i2m, or 26 cents, last 
time. 

Notebook computers repre- 
sented 9 per cent of worldwide 
computer sales, up from 5 per 
cent in the second quarter. Dell 
also reported strong sales of 


desktop PCs based on Intel’s 
high performance Pentium 
microprocessor, which repre- 
sented 32 per cent of sales in 
the quarter. 

Third-quarter sales also ben- 
efited from a seasonal increase 
in US government sales, which 
typically decline in the fourth 
quarter, the company said. 
However, revenues from 
Europe and large US accounts 
are expected to offset the 
decline, said Mr Thomas Mere- 
dith, ch ief financial officer. 

Noting that competitive pric- 
ing pressures are intense, Mr 
Dell said that the company 
“may choose not to take advan- 
tage of every opportunity for 
incremental revenue in order 
to deliver steady and sustain- 
able results". 


Gross profit margins 
declined sequentially from 21.4 
per cent of sales in the second 
quarter to 20.5 per cent of 
sales. 

However, operating expenses 
dropped to 13.8 per cent of 
sales, versus 15 per cent in the 
second quarter. 

Although earnings were 
above Wall Street expectations 
of about 87 cents per share, 
Dell’s share price declined to 
trade at $43% in mid session, 
down from Wednesday’s close 
of{46i. 

For the year to date Dell 
reported revenues or $2.44bn. 
up from $2.13bn in the same 
period last year. Net earnings 
were $82m, or $2.10 a share 
against a loss of $55.1m. or 
$1.48. 


ANGLO VAAL GROUP 


Declaration of Interim Dividend 
- Year ending 30 June 1995 



Dtvidenifc have today been dec Eared in theeuffincy of the Republic of South Africa 
ID boJden of wdinaiy shares lined below. 

Salient dales related to (his declaration anr 


Lost day to repfetcr Tor dividends and for change 
irf address or dividend instructions 

Period daring which transfer books and registers of 
me mber , will be closed (bath days inclusive! 
Currency conversion dale for staling payments to 
shareholders paid from London 


Dtvideiid warrants posted ton or about) 


Thursday. IS Dec ante r I9W 
Friday /Friday, 

16 m2? December 1944 

Wednesday. 

28 December 1994 
Friday. 20 January E995 


Name of Coupon; 

Interim t&ritfend declared 
Cents per (bare 

No. 1994 1993 

i fasten Transvaal CanMlidated Mines, Ltd. 

/Ret f. No Vll08442j06i 

89 

5.5 

6 

HartcbeenTontdn Gold Mining Company 144. i 
tRfX. No. 0MJ9M06t 

78 

64 

75 

Zand pan Gold Minin* Company Ltd. 

1 Reg No. SSK04 14106* 

45 

103 

12 


The dividends arc payable subject lo conditions which can be inspected si the 
irguaered office or office of me London Secretaries of die companies. 

All companies are Incurpomed in ihe Republic of South Africa. 


By Oder or Ibc boards 

Anglovaal Limited 
Secretaries 


Laotian Secretaries 
Aitgtovaal Trustees Limited 
13 Davies Street 
London WIT IFN 


Registered Office 
Anglovaal House 
36 Main Street 

2001 Johannesburg 


per K.G. Williams 
17 November 1W 


Notice of 

Final LLS. $20,000/300 Redemption 

out ah 

US. $100,000,000 

Lloyds Eurofinance N.V. 


Campbell Soup 
lifted by strong 
US markets 

By Patrick Haiverson 
in New York 

A sharp rebound in its 
domestic businesses helped 
Campbell Soup, the US food 
group, post a 19 per cent jump 
in first-quarter earnings to a 
record $197m. or 79 cents a 
share. Net sales in the period 
totalled $1.86bn, up from 
$1.76bn a year earlier. 

An upbeat Mr David John- 
son, chairman, said yesterday: 
“Our US businesses have come 
roaring back, and our interna- 
tional businesses have contin- 
ued on a fast pace." 

In the US, Campbell's sales 
rose to $1.12bn from $L07bn as 
strong volume gains from a 
number of products - includ- 
ing frozen dinners, spaghetti 
sauce and pickles - helped off- 
set a drop in soup shipments 
which the group said was part 
of its programme to eliminate 
costly peaks in its manufactur- 
ing and shipping cycles. 

Bakery and confectionery 
sales rose 6 per cent to $417m 
in the wake of volume gains in 
chocolate and biscuit products 
at home and overseas, while 
international grocery sales 
jumped U per cent to $341m. 
aided by strong sales of soups 
worldwide. 

The record results helped 
Campbell’s share price climb 
$% to $44%, a new high for the 
year. 


1136 per cent Guaranteed Bonds due 1994 

UoconditionglV aid Irrevocably guaranteed on a subonSnaiecl basis by 



Lloyds 

Bank 


Earnings drop 
sharply at NYSE 
member firms 


NOTICE IS HEREBY GIVEN that pursuant to Condition 6{al of the Bands 
that the final U S. $20,000,000 principal amount of the Bonds will redeem 
at therr principal amount. 

Payments of principal will be made In accordance with Condition 5 of the 
Terms and Conditions ol the Bonds on or alter 30th December. 1994 at the 

specified Office of any of ihe Paying Aperts who are listed in the Terms and 

Conditions ol the Bonds, against surrender of the Bonds wdh all 
Linmatured Coupons attached, failing which the face value of any missing 
inynatured Coupon wilt be deducted from the payment. Any amounts of 
principal so deducted will be paid against surrender of the relevant missing 
Coupon wttfiin a period ol si* years tram me date mentioned on the 
Coupon. Accrued interest due 30th Decembw. 1994 win be paid in the 
normal manner against presentation and surrenderof Coupon No. 12 on or 
after 30th December, 1994. Interest on the Bonds redeeming will cease lo 
accrue from 30th December. 1994. 

By. The Chase Manhattan Bank, HJL CHASE 

London, Principal Paying Agent IE 

Nowroboi 18. T994 



Shawmut Corporation 
U.S.$50,000,000 

Floating Rate Subordinated Notes 
One 1997 


Notice is hereby given that the Rats of Interest has been fixed at 
6.31235* and that cho interest payable on die rotarant Interest Payment 
Date February 21, 199S against Coupon No. 40 in respect of USSI0.OOO 
nominal of the Notes wfll be USSI66JS8. 


November 18. 1994. London 

By: Citibank. NA (tauer Sendees), Agent Bank 


emBANCO 


By Patrick Haiverson 

E a rn i n gs of New York Stock 
Exchange member firms 
plunged in the third quarter, 
falling to $447m from Sl.3bn a 
year ago. 

For the first nine months, 
stock exchange member firms 
earned 5894m, compared with 
$&3bn in the same period of 
1993. 

Although the figures for the 
latest quarter represented an 
impressive recovery from the 
5404m loss incurred in the sec- 
ond quarter, the sharp drop 
from the year-earlier period in 
the earnings of the 302 NYSE 
securities firms which do busi- 
ness with the public Illustrates 
how much business conditions 
on Wall Street have deterio- 
rated. 

This was largely because of 
rising Interest Tates and the 
slump in the bond market 

In contrast to the securities 
firms, which do business with 
the public, NYSE specialist 
firms - the marketnmkers 
which exclusively match buy- 
ers and sellers on the 
exchange’s trading floor - 
reported a 23 per cent rise 
in third-quarter profits to 
$38m. 


Wool worth posts 
first net profits 
in six quarters 


By Richard Tomkins 
in New York 

Woolworth, the troubled US 
retailing group, yesterday pul- 
led Itself out of sis consecutive 
quarters of losses. It posted net 
profits of $37ra in the three 
months to October compared 
with net losses of S350m in the 
same period last year. 

However, the comparison 
was flattered by special provi- 
sions and one-time charges 
that hit results in the third 
quarter of 1993. Excluding 
these, the combined operating 
profits of the company's gen- 
eral merchandise and specialty 
retailing divisions were little 
changed. 

Woolworth has been cutting 
back its fading flve-and-dime 
stores and diversifying into 
specialty retailing. The strat- 
egy has failed to yield results. 

At the operating level Wool- 
worth said the specialty retail- 
ing operations had increased 
profits to $95m from $61m and 
the general merchandise 


operations had turned in a $9m 
profit in the latest quarter 
from a $3im loss. 

However, the 1993 figures 
included special provisions of 
S23m against specialty retail- 
ing and 549m against general 
merchandise operations, relat- 
ing to workers’ compensation 
and general liability insurance. 

Without these, the compari- 
son would have shown profits 
of the specialty retailing rising 
less - to $95m from $84m - and 
profits of the general merchan- 
dise operations declining to 
$9m from $i8m. 

The company took a 
restructuring charge in last 
year's third quarter to cover 
13,000 job cuts and closing 970 
general merchandise stores In 
North America. Without the 
charge, the comparable peri- 
od’s net losses would have 
been 53m. 

Total group revenues fell to 
$2.lbn from $2^9bn. Earnings 
per share were 28 cents com- 
pared with losses per share of 
$2.66 last time. 


Record third period 
at Wal-Mart Stores 


By Richard Tomkins 

Store openings and a large 
increase in revenues helped 
Wal-Mart Stores, the US dis- 
count store group, increase net 
income by 13 per cent to a 
record $588m in its third quar- 
ter to October from $5l9m for 
the same period last year. 

Revenues shot up 21 per cent 
to $20.4bn. reflecting new store 
openings and recent acquisi- 
tions. But profits lagged the 
growth in turnover because 
much of the increase came 
from the recent acquisition of 
the loss-making Pace Member- 
ship Warehouse chain from 
Kmart and the Woolco chain 
from Woolworth Canada. 

Earning s per share rose 13 
per cent to 26 cents from 23 
cents. 

At the end of the quarter, the 
company had 61 more Wal- 
Mart discount stores than it 


had a year earlier, making a 
total of 1,983. The number of 
Supercenters rose by 52 to 119 
and the number of Sam's C-lubs 
rose by 75 to 437. The company 
added 122 Canadian Wal-Mart 
stores, increased the number of 
Mexican stores by 38 to 52, and 
opened three Value Clubs in 
Hong Kong. 

The Sam’s Club membership 
warehouse operations contin- 
ued their recent weakness, 
with same-store sales falling 
0.7 per cent This was offset by 
strong growth in the core Wal- 
Mart operations which 
increased same-store sales 7.4 
per cent 

Until recently. Wal-Mart's 
shareholders had been accus- 
tomed to seeing earnings 
growth averaging 25 per cent a 
year, but the company, the 
world’s biggest retailer, is find- 
ing it hard to sustain the 
momentum. 


NEWS DIGEST 

Banca di Roma to 
take control of 
south Italian bank 

Ranr? di Roma, which owns Italy’s biggest 
hanking network, has confirmed it will take 
control of Banca Mediterranea, based in 
southern Italy, writes Andrew Hffl in Milan . 

Banca Mediterranea, which has about 9(1 
branches in the Basificata, Campania, Puglia 
and Molise regions, has announced a L280bn 
($176m) increase in capital reserved for Banca 
di Roma, which will give the Rome-based bank 
control 

Banca di Roma said it intended to take con- 
trol of Banca Mediterranea. formed in 1982 
from a merger between three regional banks, 
m tee spring, when it would buy a 42 per cent 
stake in the bank. 

Banca di Roma has more than 1,200 
branches across Italy. As consolidation of the 
fragmented Italian banking sector continues, 
many analysts expect Banca di Roma to look 
for further acquisitions in the south, while 
banks such as Credito Italiano and B ianca 
Commerdale Italians, both, based in Mil a n , 
attempt to expand in the richer northern part 
of the country. 

Banca di Rnma announced a profit last year 
of LS80bn before tax. Banca Mediterranea, by 
contrast, has been hit by recession in the 
south of the country, and lost L62bm 

Indian tea company 
earns record profits 

Tata Tea. India's biggest plantation company, 
reported a record net profit of Rs360m ($LL5m) 
in the six months to September 30, against 
Rs350m a year earlier, even though tea prices 
have remained depressed because of oversup- 
ply, writes Ktmai Bose in Calcutta. Sales fell 
mar ginally to RsLSbn. 

In the first half, the company’s export earn- 
ings rose Rs20m to Rs314m However, Mr 
Krishna Kumar, managing director, said 
export prospects for the remainder of the year 
“do not look too buoyant" because of continu- 
ing difficulties inexporting black tea to some 
countries. 

RTZ terminates talks 
on gold mine sale 

RTZ Corporation, the world’s biggest mining 
group, and Kinross Gold, a junior Canadian 
company, have terminated negotiations on the 
sale to Kinross of the Ridgeway gold mine in 
South Carolina for US$47m, writes Kenneth 
Gooding in Lond on. . . 

No reasons have been given for the break- 
down in talks, but Mr Bob Adams, RTZ direc- 
tor of planning and development, said yester- 
day: “We will lose no sleep over this." 

Mr Bob Wilson. RTZ chief executive, said 
Kinross had made the first approach about the 
proposed deal and had offered a good price for 
what was RT7s highest-cost gold producer. 
Ridgeway, which is expected to produce about 


125,000 .troy ounces of gold this year, also had, 
limite d reserves - about 10 years - and esptor 
ration potential ' ^ ' 

He said that, contrary to market rumours, 
RTZ had not put a “for sale” sign on Its US 
gold mines - winch also indude Barney’s Can- i 
yon in Utah and Rawhide (SI .per csntoonr 
trolled} in Nevada -but if ihe right offer came 
along it would be considered as these assets 
were not. strategically important .to. the. group. 

MIM to price Asarco 
offer at US$28 a share 

MOl Holdings, the Q u ee nd and-tesed metals , 
group, said its 245 pet cent stake in Asarco,. 
the US mining company, would be sald.vfa a 
public offeri ng at a price of US$28 a share, 
writes NftJd Tatt in Sydney: This is slightly to 
g reets of book value, and wiH raise about 


The offering is underwritten by CS Krst 
Boston and S. G. Warburg. MIM, which- has 
been steadily disposing of its non-core assets 
anH investments, first announced -plans to. sell 
the Asarc» stake in mid-October, . ; ; 

George Westpri seeis 
higher 1995 earnings 

George Weston, the; 

Canadian food distribu- 
tion, forest products 
and fisheries group 
controlled by the Wes- 
ton family.- improved 
earnings in the first 
nine months and sees 
tether .gains in 1995,- 
wrttes Robert G&bens, 
in Montreal. Third- 
quarter net profit was 
C$347m (US$25L3m), or 
74 cents a share, up 


George Weston 


Sbare-prt00{C$. v 



Vi'lW (irf 
■ -‘Kitijt’- ■*’ s ■ tie " 

rr a ' from 46 

wapme-* / . . cents, a year earlier on 


cents, a year earlier on 
revenues of C$3£5bn against C$£55bn. 

Nine-month profit was C$7L6m, or C$L52.a 
share, up from C$50.6m, or C$108. bn revenues 
of C$9Abn against C$9.06hn- 
Mr Galen Weston, chairman, said food pro- 
cessing and distribution were Improving mar- 
gins, fisheries were turning round, and pulp 
and paper operations were now profitable. . 

He said that while Weston’S return on equity 
was still well below normal, the company 
looked forward to . better results again in l995. 

Electrolux in India move. 

Electrolux, the Swedish maker of white goods, 
yesterday acquired a 51 per cent stake to 
Intron, an Indian washing machine and 
washer dryer manufacturer, to enter the. 
In dian market, w r ites Shiraz Sidhva in New 
Delhi Electrolux will invest nearly $2£m for 
an equity stake to the company. 

Mr Indar Khosla, managing director of 
Intron, said: “Our collaboration with Electro- 
tax wffi benefit the company in upgrading our. 
manufacturing, marketing and management 
te chniques ." -/ 


ABN Amro acquires 
20% of Asian broker 


Rockefeller denies reports of 
mortgage default on centre 


By John Gapper, 

Banking Erfitor 

ABN Amro, the Dutch bank 
which is attempting to build a 
large international investment 
banking business, yesterday 
said it had acquired a 20 per 
cent interest in an Asian stock- 
broker with the intention of 
acquiring majority control. 

The bank hopes to build up 
its stake in HG Asia Group, a 
leading broker in Aslan mar- 
kets, to majority control within 
the next year. The HG Asia 
network was formerly part of 
Hoare Govett, the UK stockbro- 
ker which ABN Amro acquired 
two years ago, but was then 
bought out by Us management. 

Mr Louis de Bievre. the ABN 
Amro board member responsi- 
ble for investment banking, 
said the bank had had u a 
rather limited" presence in 


Asian equities. He said ABN 
Amro had employed a consul- 
tant to look for acquisitions 
but the HG Asia chance had 
arisen through past connec- 
tions. It would not have bought 
the stake unless it was confi- 
dent of acquiring majority con- 
trol. 

The two other large share- 
holders in HG Asia are the 
Guoco Group listed in Hong 
Kong and HG Asia's manage- 
ment. The Guoco Group "is part 
of the Malaysian Hong Leong 
Group, a conglomerate headed 
by Mr Quek Leng Chan. 

Mr de Bievre said ABN Amro 
saw Mr Quek’s involvement in 
HG Asia as an important 
aspect of the purchase because 
of his contacts in local mar- 
kets. 

He said Mr Quek wanted to 
remain a shareholder, which 
ABN Amro also wanted. 


By Patrick Harverson 

Rockefeller Group, which owns 
the Rockefeller Centre office 
complex in Manhattan, yester- 
day denied reports that it could 
soon default on its mortgage 
payments on the centre. 

Rockefeller Group is 80 per 
cent controlled by Mitsubishi 
Estate of Japan while the other 
20 per cent of Rockefeller 
Group is in tiie hands of the 
Rockefeller family. 

In a quarterly filing with the 
Securities and Exchange Com- 
mission, the holder of the 
$1.3bn mortgage on the com- 
plex - the real estate invest- 
ment trust Rockefeller Centre 
Properties (RCP) - warned 
there was "substantial con- 
cern" about the ability of 
Rockefeller Group to meet its 
mortgage payments. Due to the 


depressed state of the New 
York commercial property 
market. Rockefeller Centre’s 
rental income has not been 
able to cover its mortgage pay- 
ments for years. 

Yesterday the Rockefeller 
Group said the next monthly 
$46. 5m interest payment an the 
mortgage had been paid, and it 
remained co mmitt ed to “main- 
taining the Rockefeller Centre 
as the premier commercial 
properly in the world". 

Although Mitsubishi and the 
Rockefeller family have made 
up the $300m annual cash 
shortfall on the Rockefeller 
Centre’s books for the past five 
years, the SEC filing raised 
doubts about Mitsubishi’s will- 
ingness to continue covering 
the large losses. 

If Mitsubishi pulled out of its 
commitment to cover the 


losses and the property 
defaulted, ownership of the 
centre would revert 
to RCP as the mortgage 
holder. 

Although property analysts 
have long doubted whether 
Mitsubishi would cut its losses 
because of the damage such a 
move would inflict on its repu- 
tation. the SEC fiifeg indicated 
that RCP believed the Japa- 
nese group may be close to 
changing its mind. 

When Mitsubishi bought 
majority control of the land- 
mark art-deco complex for 
$L4bn in 1989, it was one of the 
most high-profile Japanese 
investments in the US. Soon 
after that deal the New York 
property market collapsed and 
the 19-building complex is esti- 
mated to be worth less Bum 
$lbn. 


Procter takes a gamble with nappy changes 

The group hopes to regain market share with its latest price cuts, writes Richard Tomkins 


H ere is a puzzle. Pulp 
prices are rocketing 
worldwide, so compa- 
nies making paper-based prod- 
ucts are under pressure to 
raise their prices too. Yet Proc- 
ter & Gamble, the US con- 
sumer products group, 
announced earlier this week 
that it was cutting the US price 
of its Luvs disposable nappies 
(diapers in the US) by 11 per 
cent What is Procter & Gam- 
ble’s game? 

At first glance, the 
announcement sounded omi- 
nously like a repeat or Marl- 
boro Friday. Procter & Gamble, 
which makes 15 per cent of its 
global revenues from dispos- 
able nappies, said it was cut- 
ting the price of Lavs to claw 
back market share from 
cheaper, store-branded and pri- 
vate label nappies. Last year 
Philip Morris, another big US 
packaged goods maker, 
employed much the same logic 
when it cut the price of Marl- 
boro. its top-selling cigarette 
brand, to reverse its loss of 
market share to cheaper, 
generic brands. 

So was this Diaper Tuesday? 
The comparison falters 
because Luvs. unlike Marlboro, 
Is not a premium product. 
Procter & Gamble’s top dispos- 
able nappy brand in tee US is 
Pampers, while Luvs is a val- 
ue-for-money brand. Procter & 


Gamble says the Luvs price cut 
is intended merely to restore 
the product’s competitiveness 
with private label brands, 
whicb have recently become 
cheaper. 

Even so. the cut will hurt. 
US nappy prices have already 
fallen by about 20 per cent over 
the past two years because of 
tough competition between 
Procter & Gamble, the private 
label suppliers, and Kimberly- 
Clark, the US paper products 
company that leads the US 
nappy market with Its Huggies 
brand. Furthermore, Procter & 
Gamble is having to accom- 
pany the Luvs price cut with a 
2 per cent reduction in the US 
price of Pampers because Pam- 
pers might otherwise start to 
look too expensive. 

The puzzle is how Procter & 
Gamble can afford it. Pulp 
prices, driven by snrging 
worldwide demand, have shot 
up by 80 per cent from their 
November 1993 low of $390 a 
tonne, and are rising fast. 
According to Mr Chip Dillon, 
an analyst at Salomon 
Brothers. Procter & Gamble 
gets through 700,000-800,000 
tonnes of pulp a year to the US 
alone. So even by the most con- 
servative estimate, the com- 
pany Is lacing an increase in 
pulp costs of $200m a year in 
the US - equivalent to about 25 
cents a share after tax. 



One way Procter & Gamble 
plans to defray the cost is by 
increasing the price of its other 
paper-based products. It said 
this week that it was raising 
the US prices of its Charmin 
toilet tissue by 5 per cent, its 
Bounty paper towels by 6 per 
cent and its Puffs facial tissues 
by 8 per emit. Meanwhile, the 
Luvs price cut should be par- 
tially offset by Increased sales. 

The company is also cutting 
manufacturing costs. In July 
last year it set in train a plan 
to close 30 plants and shed 
13,000 jobs - about 12 per oent 
of its global workforce - in 
response to competition from 
lower-priced products. "The 
efficiencies gained from those 
actions pay out at a time like 
this," the company says. 

Procter & Gamble insists 


price cuts. Ms Lyr 
an analyst at CS F 
is less sure: she 
price increases on 
towel products sh< 
out the Increased c 
while lower produ 
should balance ou 
cuts for Luvs. “I w< 
fairly neutral but a 
it is dependent on g 
higher volumes, si 
chance it could he s 
ative.” she says. 

If things do go 
possible gainer shm 
ter & Gamble's bigg 
in paper products, 
Clark. Unlike Prod 
ble, Kimberly-Clark 
producer. Therefore 


will be simply defraying hi 
raw material costs, while : 
beriy-Clark should see the 
benefit at its bottom line 

Unfortunately, howe 
Kimberly-Clark has troubl 
its own. The company has 
trying to break into the i 
pean market for dispos 
nappies with its Hug 
brand, but the cost of dote 
has proved much higher 
expected - not least becatz 
aggressive retaliatory ac 
by Procter & Gamble. So 
last thing Kimberly-C 
ueeds just now is a roun 
price cuts in the US n* 
market 

Mr Sherman Chao, an 
lyst at Merrill Lynch, rem 
that all this is a far cry i 
the early I990s, when . 
sumer product com panies i 
enjoying a fall in raw mati 
costs and yet were still ah] 
pnsh up prices. “Now m 
Jtang is converging aga 
them - an inability to i 
prices in general and 
material prices moving i 
S«n in that light, it is rem 
able that Procter & Gamb] 
doing as well as it is. But \ 
the nappy war moving 
Europe, and the Increase 
pulp prices showing no sign 
5™$ no one is pretent 
tn at the diaper business 
soing to get any easier. 





FINANCIAL times FRIDAY NOVEMBER IS 1994 


21 





★ 


INTERNATIONAL CAPITAL MARKETS 


Treasuries unable to shake off bearish mood 


Israeli investment 


bbS-cks 

some positive economic data. 

the Kcfi* 

£P* to* was down « al 

Labor Department figures 
Per cent faShi 
housing starts briefly lifted the 

°r£2?°£? by near2y * point 
Construction of new housim 

fefl across the country totta 
lowest level since June, and 
camern well below economist? 
expectations. 

While weather was a factor 


In some markets, analysts 
interpreted the data as a sign 
that higher interest rates are 
beginning to affect house- 
building. Still, the market 
Proved unable to rally as trad- 
ers tried to ase the rise in 
prices to sell 

Many investors are trying to 
decrease their long-bond hold- 
ings by the end of the year, 
according to Ur Doug Burt- 
hick, a senior fixed-income 
analyst with Thomson Finan- 
cial Services. 

He attributed the market's 
failure to take heart from a 
report from the Federal 
Reserve Bank of Philadelphia 
indicating slowing business 
activity for November, to bear- 
ishness and confusion in the 
market 

“It's a bear market scenario. 


The uptrades are laborious and 
the down trades are like throw- 
ing rocks out a window,” he 
said. “People really don’t know 
what's going on, they see the 
market tumble mid it’s discon- 
certing without any news to 
trigger it.” 


GOVERNMENT 

BONDS 


He added that investors were 
also worried about over-supply 
in advance of next week's auc- 
tion of two-year and five-year 
notes that will tato place in a 
week, shortened by the Thanks- 
giving holiday. 

Given the overall pessimism 
in the mar kets, any future sup- 
ply is expected to have a damp- 
ening effect on demand. 


Dollar issues feed 
continuing demand 


Banks selling 
derivatives 
‘not aggressive’ 

By Richard Lapper 

Banks are not overly 
aggressive in selling derivative 
products, according to a new 
survey by a US risk manage- 
ment consulting firm 

Eighty senior corporate 
finance executives from multi- 
national corporations, mainly 
from US and Europe, respond- 
ed to the survey conducted by 
Irvington, New York-based 
Smear Risk Management Con- 
sulting. Only 12 per cent of 
those respondents believe 
banks are too aggressive in 
their marketing. 

AH respondents use deriva- 
tives to manage their currency 
exposure, either through hedg- 
ing or other techniques, 95 per 
cent of respondents “managed” 
their interest rate exposure in 
the same way, while approxi- 
mately 30 per cent “managed” 
their energy and commodity 
exposures. 


By Cornier MkfcHmann 

Another wave of US dollar 
bonds swept the eurobond mar- 
ket yesterday, feeding continu- 
ing investor demand for dollar 
paper. While retail investors 


INTERNATIONAL 

BONDS 


are said to be keen buyers erf 
two to five-year bonds, institu- 
tional investors were reported 
to be moving down the yield 
curve into the 10-year sector. 

“Following the latest US rate 
hike, a lot of people expect the 
long end to perform better as 
the curve flattens,” said one 
dealer. 

However, some warned that 
the weight of new supply 
might lead to saturation of the 
market. “There has been 
ATwmgfr volume to satisfy what 
demand there is, but if there is 


much more I fear the market’s 
underwriting capacity could 
come under strain,” said 
another trader. 

Japan’s Electric Power 
Development Company made 
its eurodollar debut with 
S3Q0zn of 8% per cent five-year 
bonds, priced to yield 23 basis 
points over the five-year Trea- 
sury note, via IBJ and JP Mor- 
gan. While some said the pric- 
ing was rather generous for a 
government-guaranteed issuer, 
most dealers welcomed the 
terms of the deal. 

“It was well priced and well 
handipd — they did tile right 
thing given that they're not 
that well-known," said one 
dealer. 

Since the EPDC plans to 
return regularly to the dollar 
sector, “It was strategically 
important for the issuer to do a 
deal which was well-received,” 
said one of the lead managers. 
After the bonds were freed to 


■ European government bond 
prices fell further yesterday, 
although UR gilt prices contin- 
ued their recent out-perfor- 
mance compared with other 
markets, slipping only slightly. 

Mr Mark Clifle, international 
economist at Midland Global 
Markets said: “There is disap- 
pointment in the markets 
about the rather poor response 
In the US towards the Fed’s 
tightening." 

■ Gilts started the day well, 
lifted by retail sales figures 
which suggested there was lit- 
tle chance of an increase in UK 
base rates this year - sales in 
October rose by a seasonally 
adjusted 0.1 per cent, below 
market expectations of a 0-2 
per emit rise. 

However, gilts were polled 


back by Calls in US Treasuries 
and bunds and by late in the 
day the December long gilt 
future had moved down 8 to 
trade around lQlg. The yield 
spread over bunds tightened by 
4 basis points to around 129. 

Mr Jeremy Stretch at Nat- 
West Markets said today’s 
revised figure for the third 
quarter GDP might have an 
Impact on gilt prices. 

“An upward revision should 
not undermine the market 
unduly. If it is on the back of 
increased investment a nd man- 
ufacturing production, it will 
not be too worrying," he said, 
adding that he believed there 
was unlikely to be a nhnng e in 
UK base rates until the first 
quarter of next year. 

Mr Stretch said political 
uncertainty arising from prime 


minister Mr John Major’s diffi- 
culties over the UR contribu- 
tion to the EU budget were not 
yet an influence on gilts, but 
added: “There is no doubt that 
will come into play in the 
weeks to come.” 

■ German government bonds 
slipped and the December 
bund futores contract traded 
around 83JS3 late in the day, a 
fall of 0.32. 

Ms Alison Cottrell at Kidder 
Peabody said the expected 
release of money supply fig- 
ures next week was likely to be 
the infinpm-o on the mar- 
ket. 

■ The yield on Italian govern- 
ment bonds rose by 9 basis 
points to 12.14 per cent on 
increased political worries. 


NEW INTERNATIONAL BOND ISSUES 


Amount 

Coupon 

Price 

MaturKy 

Feet 

Spread Book nmr 

fiiMfUWft 

rex. 

% 


% 

bp 

US DOUARS 

KtW ML Finance. Delaware 

500 

828 

9890GR 

NOVJM04 

0J25R 

427(3Ti9Wjq Dreadner/ Goldman Sachs 

SadavWtttterntrarg L-financs 

400 

8.00 

93-S7H 

Dec. 1999 

CL25B 

Syr] JP Morgan Securities 

Eire CracSt Carta 

350 

7A75 

90.8S2R 

Dec. 1997 

OT875R 

+32(riv9fr-97) Otftrank ireematianal 

Bectnc Power Development Co. 300 

&12S 

99344H 

DOC.1999 

<L2Sfi 

4230M Syi) IBJ IntL/ JP Morgen 

Banco do BrasB. Gd Cayman 

100 

10-254 

99.77283H 

Dec. 1997 

08750 

+290(71*96-97) Chemical investment Bank 

vaii 

Oak «a kittJFtnance Coyman&>) 

lObn 

(btM 

100.00 

Aug-2005 

uncBscl 

- Salomon Brothers feet 

8TERUNQ 

IMJ Bra* rnB.fCeyman 

100 

W 

9957SR 

Doc.1099 

CL15R 

HSBC bfceketB 

D-MARKS 

Aeflnag 

200 

7.125 

98.BB7R 

Doc. 1990 

0-25R 

+17(6tt%-39) Morgan Stanley 

ITALIAN LIRE 

Soddtd Gdnfttde Acceptance 

150bn 

1075 

101.16 

Dec-1996 

1.135 

- Credits Bafiano 

OULDBtS 

BNG 

350 

750 

99^3R 

Dec2Q00 

02750 

+2l(BU96-00) MG Bar* 

PESETAS 

European Irwestnwni Bankfc) 

15bn 

10.90 

101-25 

Nov. 1398 

1X575 

Bax. Santander da Negodoa 

SWISS FRANCS 

Weald Bank 

200 

5^75 

102.50 

Daewoo 

200 

UBS 

Hnal terms and newcaiabte unlees stated. The yield spread (over raieiora government bonefl at launch Is suppBed by I ho load 
manager. ffToating rata note. fSemFannual coupon, ft tfaced re-otter prtca; teas are shown at tie re-aKer teveL a) 3-mdi Ubor VJML b) 

CalaUe an 24A/00 at per. bi) 5% to 24/2/00 raid S.1SW thereafter, c) Fungible wtth Pta20ba Plus 30 days accrued. 


trade, the yield spread tight- 
ened slightly to around 21 
basis points over Treasuries. 

fia pifadiging 1 on ripmapri for 
medium-dated paper, L-Bank 
issued $400m of 8 per cent five- 
year bonds priced to yield 20 
basis points over Treasuries 
via J. P. Morgan. Although the 


deal saw interest from UK, 
Swiss and Benelux institu- 
tional investors, it was some- 
what eclipsed by the EPDC 
issue and is expected to be 
placed more slowly. 

In the 10-year sector, KfW, 
the German reconstruction 
agency, issued $500m of 8Vi per 


cent 10-year bonds via joint 
ipqrfg Dresdner Rank and Gold- 
man Sachs. 

Yielding 27 basis points over 
Treasuries at the re-offer price, 
tiie bonds were deemed fairly 
priced; indeed, some felt the 
sinead could have been a few 
baas points tighter. 


company plans 
global offering 


By JdSan Ozaimo to Jerusalem 

Africa Israel Investments, a 
leading Israeli investment com- 
pany with interests in insur- 
ance, property and hotels, is 
planning a 9150m— 3200m global 
offering in New York, London 
and Frankfurt early next year. 

The international offering 
mil follow an Israel secondary 
offering through the Tel Aviv 
Stock RTflhangP worth up to 
Shk333m (S77m) which closed 
yesterday afternoon. Africa 
Israel will be the first Israeli 
company outside the high tech- 
nology and medical sectors to 
issue shares abroad and 
together the offerings will raise 
the largest amount of money in 
Israel's history. 

The move marks the growing 
interest of Israeli companies in 
raising money on European 
capital markets and the grow- 
ing interest of European inves- 
tors in the Israeli corporate 
scene. Traditionally, Israeli 
companies have turned to New 
York to raise money. 

Mr Sh lo m o Grafinan, manag- 
ing director, is optimistic about 
the local offering, in spite of 
the weakness of the Tel Aviv 
exchange, and believes Europe 
is now a place for Israeli com- 
panies to raise money. 

“Definitely there is a new 
environment in Europe since 
Israel signed peace treaties 
with Jordan and the Palestin- 
ians," he said. “European 
investors are looking at the 
new Middle East, and particu- 
larly companies like ours 
which reflect the business of 
the new region.” 

Morgan Stanley has been 
appointed global co-ordinator 
for the international offering 
and Barclays de Zoefce Wedd 
will be joint lead manager with 
Morgan Stanley for the Euro- 
pean tranche. Smith Barney 


and Lehman Brothers wifi also 
participate in the offering. 

“This is the first major 
Israeli offering with a desig- 
nated European tranche and 
reflects growing Interest in 
Israel by International inves- 
tors,” said Mr Niel Sebag- 
Montefiore, BZW corporate 
finance director. 

The offerings are intended to 
dilute the holdings of Bank 
Leumi, the largest shareholder, 
from the current 502 per cent. 
Under recent banking legisla- 
tion Bank Leumi must reduce 
its stake in the company to 25 
per cent by December 1996. 

Mr Grofman said the two 
offerings win dilute Rank Leu- 
mi’s share to about 35 to 38 per 
cent and will be followed by a 
further global offering later 
next year. 

Africa-Israel owns the Mlgdal 
insurance group, Israel's larg- 
est insurance company, which 
controlled 24 per cent of the 
total insurance market last 
year. The company also con- 
trols and mnnag ps Holiday Inn 
the largest international hotel 
chain in the country, and ha$ 

extensive property develop- 
ment schemes under way. 

Africa Israel boosted first- 
half net profits by 51 per cent 
from Rhitftom to ShkM 2m t-m* 
year, the company made a net 
profit of Shh6&2m. The com- 
pany recently purchased a 26 
per cent stake worth $12L5m in 
Ayalon, an Israeli petroleum 
retailer, and a 45 per cant stake 
In Haifa Quarries is a deal 
aimed at developing a 15,000 sq 
m site into a $25m commercial, 
office and tourism centre. 

■ filiay Manhattan and Wank 

Leumi le-Israel BM this week 
announced a strategic alliance 
designed to provide ADR and 
G DR programmes “programme 
services" to Israeli companies. 


-i- v:::::'*; 


reports i 
hi centre 


1 WORLD BOND PRICES 1 

BENCHMARK GOVERNMENT BONDS 

Red Da/e Week Month 

Coiaxxi Data Price change Yield ago ago 

Kaly 

■ NOTIONAL ITALIAN QOVT. BOM) (BTP1 IVTURBS 
(UFFQ* Urn 200m lOQttra at 10096 

FT-ACTUARKS FIXED BIIERfcSI DUNCES 

Price tncBces Thu Day's Wad Accrued 

UK QRs Nov 17 Chstge 96 Nov 18 (merest 

xd ad). 

Vtd 

— Low coupon ytetd — Mncfaim rmifinn ) trill — Hgh coupon yield — 
Nw 17 Nov 18 Yr. ago Nov 17 Nov 16 Yr. ago Nov 17 Nov 18 Yr. ago 


Australia 9000 0 SMM 

Sotfum ' 7.790 1 IMM 

Canada * *500 06AM 

Denmartc 7.000 12AM 

Franca BTAN 8000 OS/98 

OAT 8.750 . 1 QAM 

GMTTWiy Bund 7-500 11/04 

Italy 8-500 08AM 

Japan No 119 4600 Ofl/99 

N0 164 4-100 12433 

• ' 7.250 ‘ 10AM 

Spain. 8000 06AM 

UK Gits 8000 08/99 

8750 11AM 
8000 10A» 

USTreaauy* 7JI7S 11 AM 

7.500 11/24 

BCU (French Gwt» 8000 04AM 

London ek^«. -Mw Itak nU-day 
t Qna Muring «W*c*ring-t» at 03 par 
PrfaK ua UK ta SZnds, atm m rtcM 

US WTEREST RATES 


89J1600 
889000 
880500 
87.8500 
101-8180 
903200 
98.7300 
812800 
1026240 
858040 
975300 
81.0800 
‘ 90-21 
87-24 
108-08 
98-31 
92-27 
88.7000 


-0800 1058 
-0420 8.37 

-0500 521 

-0420 858 

-0750 7j47 

-0420 ' B21 
-08 TO 754 
-0420 11.78f 
-0040 4,07 

-am 0 4.75 
-0310 751 
-0030 1151 
-2782 043 

-8/32 059 

-10/32 060 

-18/32 003 

-21/32 014 

-0340 058 


1058 

859 

9.12 

881 

7.47 

014 

7*7 

1159 

459 

4.75 

751 

1121 

850 

083 

650 

751 

856 

854 


1013 

855 

9.13 

8.77 

758 

012 

7.41 


Open Sea price Change Ugh Low EM- vd Open hL 
Dae 10070 10038 4134 10085 10050 38524 55881 

Mar 99.60 99.43 -0-33 9950 9950 926 11370 

■ ITALIAN QOVT. BOND (OTP) FUTURES OPTIONS (UFFQ Ura200m lOOttra of 10094 


Strike 


CAULS 


PUTS 


■ I.IV 

4X6 • 

Price 

Dec 

Mar 

Dec ‘ 

Mar 

4.73 

loon 

0.70 

1-97 

032 

2A4 

7.41 

10050 

044 

1.75 

056 

2. 82 

11.16 

10100 

022 

1.61 

084 

3JJ8 


049 

853 

082 

7.77 

758 

051 


Eat. voL toad, Ca*a ZI2B Puls 2361. Pimm raya open W- Cafe 2B583 Puts Sum 


Spain 

■ NOTIONAL SPAWN BOND RJ1WES (MEFF) 


801*0* MUSI 


LmMne 


Oaamatt. 

Oaanvdt. 

nmana 

Sfenniti_ 

OK>|aaf_ 


Traasay SBs and Bondyfetti 
553 Iboygar. 


641 Tiara jaar. 
55} Ftoyaar-. 
BJJ 2 linear 
856 - 


7.13 

746 

773 

756 

811 


Doc 


UK 


Open Sett price Change Ugh Low EsL vet Open kit 
8752 8096 -016 87.16 8092 39534 82571 

8021 8018 -051 8021 86.15 747 3567 


BOND FUTURES AND OPTIONS 
France 

■ NOTIONAL FRB4CH BOM> RJTWES frAATTF) 


■ NOTIONAL UK GOT FUTURES QJFFEy ES0500 32nda of 1 0034 

Open Sett price Change High Low Eat vd Open int 
Dec 102-02 101-27 -0-09 102-10 101-24 55380 103519 

Mar 101-10 101-02 -0-09 101-17 101-03 990 9605 


m LONG QS.T FUTURES OPTIONS (UFFE) £50500 6 *hs of 100% 


V - " 

-Y’ 


Open 

Sad price 

Change 

M0h 

Low 

ESL voL 

Open W. 

Strfaa 


- . . 

. • ' ... 

Dae 

HOW 

11088 

-030 

111J04 

11064 

157.185 

120087 





Mar 

110.12 

10986 

-050 

11020 

10066 

4,021 

20*51 





Jut 

10028 

1000 2 

-050 

10028 

10024 

103 

3.004 

103 

006 


CALLS 


PUTS 


Mar 

1-59 

1-28 

1-03 


Doe 

0-12 

0- 35 

1- 1B 


Mar 

1- 55 

2- 24 
2-83 


Era. voL bM, eras 3407 Pim 1004. PtartM days opan W, Caas 77565 PUB 54940 


■ LONG TgTMHBWCH BOND OWI0NS frlATff) 


. • * .• 

Strife* 

Plica 

Dec 

- CALLS — 
Mar 

Jtm 

New 

— PUTS 
Dec 

• ... — ' . . 

110 

089 

1.56 

- 

022 

1.70 

. - ’/ ■■■* 

111 

029 

1.10 

- 

061 

~ 

* : ‘ - • 

it* 

006 

072 

- 

1-38 

- 

• ' *■ . V* • 

tta 

OJOZ 

048 

- 

■ 

* 

• 

IK 

001 

i)9H 

- 

- 

* 


Mar 


EM. vol MU. aria 38735 Pula 20423 . Fbarioua dayt opan h™ Cafe 298470 Puts 276*13. 


Ecu 

■ ecu BOND FUTURES IMAT13 


Dec 


US 


Open 

8056 


Sett price Orange 
8078 -042 


rtgh 

81.00 


Lew 
80 78 


EsL VOL Open hit 
2521 7502 


■ US TREASURY BOND FUTURES [CST) 3100.000 32ndso4 10095 




■ NOTIONAL GERMAN BUND FUTURES (JJFFtT DM25O.O00 100th. o/ 10094 


Open 

r nttwa 

Change 

High 

Low 

Eat vol. 

Open n. 



DOC 

Mar 

Open 

9018 

8024 

Sett price 
8083 
88-95 

Change 

-034 

-088 

High 

9020 

802M 

Lew 

8073 

88J91 

EsL vcl Open M. 
137375 177435 
9672 32940 

Dec 

Mar 

Jun 

07-08 

96-13 

9626 

97-02 

96-14 

S5-28 

-0-01 

-0-01 

♦0-03 

97-09 

96-21 

96-02 

96-28 

9609 

95-25 

510531 

11,138 

187 

3BOJJ69 

58,716 

11.882 


■ BMP FUT1IBB9 OPTIONS gjgg PM2SOOOP poWs N 10096 


Ki^ T<# 


Strike 

Price 


8000 

9050 


Dec 

Jan 

CALLS — 
Fab 

Mar 

Dec 

. Jen 

PUTS 

Feb 

Mar 

054 

OH 

084 

lOI 

0-21 

1.11 

1.39 

15B 

028 

038 

064 

0.79 

OM 

1A3 

ISO 

1^4 

012 


046 

a 82 

020 

130 

2J33 

*17 




Eat. «*, tot* Crib 21318 Me 13340 Aetna dagAa open ha. OB 2B4871 Puta 842073 


UK GILTS PRICES 


fet FM Meet+er- Hfr tor 


■ NOTIONAL LONG TERM JAPANESE QOVT. BOND FUTURES 

[UFFE) YlOOrn IQOttra oF 100% 

Open Close Change Ugh Low EsL vd Open Int 
Deo 10756 - - 10758 10754 879 0 

Mar 107.17 - - 10752 107.16 1879 0 

* UFFE cortoada Mad on APT. Al Open rarest f!g». are for pawns day. 


_ YM— -1994- 

U FM Meat +er- feta liar 


_ 1894 „ 

£21 Prices ♦ Hgh Law 


m '■ 


■; ’>.4 


- • .1 • IS - 




' : ’'' J 

• -i- . 

.. y 

.. A' 

■■ r, - ■ 
. ■ '* >’ 


SWrta-JNww 

Tnwflpciaswtt a* 

Upei9K «■£ 

BaSSpeSH (89M3 — ■ 1W 

KPtacISK 

Ttara1ZV*i»S^L— 

aag: g 

HmCNTpB^^— 7.14 

PailfflMKlBTO— 1^2 
arauftaictap- — Mg 
TwaWnciWri*. — MJ 

Ban iSpe 1997 — 1J2 

OVn- laag — 837 

ISSSiSKtt-. m 

T888-7 WJ8. 

TmSrtShftVm— “J. 

E«£ft12DCl9»— WJ2 

MiiAkIWL— • 1979 
877 

TtaBftcwn# BSt 


TOO* GM03knEP2PC2DD4 — 


*74 
Wfl 

_ Twen«e20Mtt 759 

.2?* **&**» MB 

llSs CnSHpcSOS UO 

Ttaw IZ 1 ^ 2€P3-5 1059 


105* 

107% 

110 % 

109% 


7%pe2M6tt~ 


3pe20tB-«» *40 

103A TBaa 11 %pc 200 W — UL14 
96% XmmVi&mnu — 967 

110A IVVK 2fl(H-8„ 1052 

1«1 2 &72 

moA han ape 2000 mi 

11 ® 

10213 

85% 

«a 
»s 




OmaUw HAtfClSW— A9 
0*e»«BfWBl9«— “ ■ - 
ape 2000 — 8 , 1 V. 

litraispcano R* 

1 0pe 2001 MJ 

agsfc=-S 

B0C20Mtt " — ■ MS 

lOpeaBi — — M8 
Rats 11*8*2091-4 — US 


85S106%5 

850 97fl 
152. 

855 IlflA 
an 106& 
aae »s 

874 105*i 

an 96 jW 
ara'twB 
an ua 


R«*0 1B90-4 — 

T0H3 

— «7A 
BBS 

— WB 

— 113% 

117ft 

— iziH 

117B 

— 112ft 
-% 100% 

121ft 

— «4ft 

— l»ft 
-ft ITUS 
+ft 114B 
*ic 108ft 

IK 

— ; isift 

3ft 1^ T)rae6U4pc2Dio 

-S 114 Mia Cbo»%*Ld 2B11 N — ~ 

. 4ft 128ft Iim Taa9pa2MZH 

-ft 12lS 105ft Trees 5*a**008-1 Stt- 

-ft vna m f TmmtoclBmt — - 
Tteanz-ng — 

Tma%pcai7tt 

. - &J*12pe 2D13-17 

— mat 'an 

-ft IOOA 

— S7S ' H 

-ft 118ft 99% 

— 

3 ri,; m 'HswmShsou an 

■ - ira cwaJjpBW/tt mb 

113M 82% 857 

127ft HW% CBBMbZh!E-. 851 

-ft 129fl HQ Ttegg.. 884 


754 73*1 

an hep* 
an erjpa 
an soft 
an io® 

198 121 H* 

an 93% 
an 95ft 

65B 115% 
881 91ft 
&S7 128ft 

an ias% 
an 95% 


-ft BBft 
-A USA 
-ft 106% 
-% 100ft 
-a 125% 
-A 143ft 
-« T12IJ 
-U 111% 

-% 138ft 

-a iMft 

-ft 151ft 
-ft i24a 

-a lisa 


n% 

«n a 
849 
S7 
102 % 
118% 
90% 
819 
112 % 
059 
1249 

919 


n 

2pC *9e .._^B78> in 407 200ft 

4%pt’9«t— 2-77 3 65 107ft 

2%PC1W 134 3.19 186ft 

2%peU3 (789 145 1 81 )62Aai 

4%ptU«t3~X13555 148 382 108,1 

2PC0G (EL5) 1» 352 168,1 

2%XTB .(7115) 351 384152%B 

2%pe*11 174% 163 395 157% 

2%p C13 . <BJ» 358 185 126% 

2%«el6 914 358 356 138ft 

IhjKVO (BOO) 3.71 357 132% 

2*290 *24** 197 71 170 354 UOft 


♦ft 


7J3 

&46 

aoBK 

-% 

9Bft 

77fl 

887 

857 

lOffl 

“ft 

128ft 

10013 

.W5 

855 

1 B«ft 


127% 

1130% 

743 

M3 

74ft 

-% 

83% 

71% 

139 

M 

sw 


JT78 

V 

MB 

a 4 b 

92% 

-% 

114% 

08ft 

&S 

8.47 

102 % 

-ft 

128% 

99ft 

820 

aniapui 

-% 

180% 

12 &ft 


Other Fixed Interest 


Note 


'field.-. 

M W Meet *»- 


^1994-. 

f*Bh Urn 


852 


- 46B 

- 4i%aj 

- 58% 

- a 

- »% 
- am 


-i »v 
-4 549 

71 

♦*1 (4% 

♦ft 39% 

-ft 37% 


449 

Ml 

5S% 

339 

2*ft 

779 


Mai ON 10%®e2009— 
Bwmii%ooan* — 

HMQoa%pc'M 

neC*1B96_™, — 

13PE-97-I 

Hr*BOoa»e15peam_ 

Leeds I3%pc 2006 

UH80el3%Kknd 

LCG 300*20 ML 

MaKtarari1%pc20D7- 

iM.Wr.SeeV 

IT*d80Atfi3%OC2021. 

4Vcca2824 

1 H Ha SKM 1 E*zk 2(66 


928 

&94 

110 ft 

— 13>% 

929 

459 

116 % 

142 

LBS 

_ 

96 

— 118% 

9JI0 

- 

100 

103% 

12-06 

- 

ior% 


UL59 

984 

141% 

. _ IBM] 

ian 


12 E 

— 149% 

952 

- 

3b% 

44% 

023 

- 

52% 

40% 

10.15 

ALES 

113% 

_. 136% 

4.41 

B 22 

58 

78 


4.54 

132 

— 150% 

_ 

4.52 

I 2 &% 

— 145% 

1289 


176% 

159% 


1 

Up to 5 years (M) 

12011 

4003 

120-08 

198 

893 

5y» 

8*7 

a 45 891 

894 

892 826 895 

894 

838 

2 

5-15 years (23) 

13a 05 

-0-20 

13093 

1.78 

11-48 

15 yn 

B*8 

a*5 897 

890 

896 790 885 

891 

7.17 

3 

Over 15 yeara (8) 

15631 

-028 

156.75 

299 

1097 

20 yis 

046 

043 697 

890 

856 798 874 

871 

7.19 

4 

irredaemabtea (6) 

17051 

-024 

17693 

070 

13*7 

Irred-t 

891 

8.49 799 





5 

Al stocks (51) 

137.03 

-014 

13792 

197 

1093 



Irttatton 5%: 


krflatton 10% 



Maw-finked 







Nov 17 Nov 16 YT. ego 

Nov 17 Nov 16 YT. ago 


6 

Up to 5 years (2) 

18034 

■♦003 

18629 

0.04 

• 597 

Up to 5 yis 


nna 39a 

299 

297 297 

190 


7 

Over 5 years (11) 

17084 

-0.07 

173.96 

199 

498 

Over 5 yre 


335 394 

398 

0(0 394 

290 


B 

Al slocks (13) 

174,25 

-OQ6 

17496 

194 

4*1 




5 year yWd 



15 year yield 

25 year yt 

Bid 


Debentures raid Loans 


Nov 17 Noe 16 Y7. ago Mw 17 Nwr 18 YV. ego Not 17 Non 16 Yr. ago 


B Debs & Loans (77) 

(F« redeap O on i 


12750 -0-29 128.17 2-31 952 9.83 858 750 059 055 

■ era ohoon above. Cope Banda Love 0H-7M4; Medtae 6 K- 1 IPM 6 ; HQ* n* end over, t H« >Wd. ytd Yfew to dura. 


758 


9-55 


8.15 


FT FIXED INTEREST INDICES 

Now 17 Nov 18 Nov 15 Nov 14 Nov 11 Vr ago HJgh* Low 

Govt Secs. (UK) 9152 9150 91.83 91.22 91513 10084 107.04 88-54 
Read interest 10034 108^2 107S2 10758 107,92 124.15 13087 106-50 

- lor 1004, Qovernmm SeewNaa high dnea oo r ap M lan : 127A0 S/1/3S). % m 48.16(1/1/73). Rod 
26 and Brad bmraat ttea. SEactfKy ndbra rabeeid 1974. 


GILT EDGED ACTIVITY INDICES 

Nw 18 Nov 15 Nov 14 


Nov 11 Nov 10 


OK Edged liga t ne 106.3 8&4 753 80.3 815 

5-doy WOTge 87.4 830 BOA 810 82.4 

Nrfi ahee compUMwc 1S&87 (21/1M4 , low 5088 (3/1/78) . Bad 10ft Qownment Securtdeo WHO/ 


FT/ISMA INTERNATIONAL BOND SERVICE 


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1453. 


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ii 







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i 






COMPANY NEWS: UK 


Shareholders urged to reject £39 lm offer in favour of break-up plan BsrclsyS 

BFI increases bid for Attwoods in £300m 

By Peggy HoBtoger “We will do this by obtaining thing - if they get anything at BFI to alter the bid. They are pf CfCF 6DC6 


Attwoods yesterday described 
the increased bid of £391m 
from Browning-Ferns Indus- 
tries of the US as meagre and 
cynical, and urged sharehold- 
ers to reject the offer in favour 
of the proposed break-up plan. 

BFI has nudged up its offer 
from I09p per share to Zl&75p 
and declared it to be final. It 
has also promised to pay all 
investors who tender their 
holdings the final dividend pro- 
posed by Attwoods of 3J25p. 
The preference offer 1ms been 
increased by 7p to 92p. 

Mr Ken Foreman, Attwoods 
chief executive, said the 
break-up plan proposed as the 
final defence would still return 
better value to shareholders. 


“We will do this by obtaining 
a full premium for control of 
three different businesses.” he 
said. “This is in stark contrast 
to BFl's cynical attempt to 
take control of Attwoods at the 
lowest possible price.” 

Attwoods is expected to pub- 
lish its formal response to 
BFl’s offer next week and 
shareholders have until 
December 2 to deride. 

Mr Philip Angell of BFI said 
the increase would satisfy 
shareholders* desire for “a lit- 
tle bit more”. Investors now 
had a simple choice: “Pick the 
cash offer or an extended 
series of hurdles.” Under the 
break-up plan, shareholders 
would have to wait for 
Attwoods to get through the 
hurdles “before they get any- 


thing - if they get anything at 

all." 

The market view in London 
was that BFI had finely judged 
the increased offer. “I think 
now it will be an uphill strug- 
gle for Attwoods." said Mr 
Nigel Hawkins of Hoare 
Govett. “The break-up was 
very much seen to be a last 
card, perhaps too little, too 
late.” 

However, Mr Robert Miller- 
Bake well of NatWest Securities 
thought it might have been too 
finely tuned. “If it had been $10 
per ADR it would be all over," 
he said. “BFI may have mis- 
judged it slightly.” 

Institutions, who were last 
week critical of Attwoods* 
break-up plan but still demand- 
ing a higher offer, had pressed 


BFI to alter the bid. They are 
thought to have wanted 100 per 
cent of the proceeds from the 
sale of German businesses. 

As the offer stands, share- 
holders - excluding Laidlaw of 
Canada, which has agreed to 
sell its 29.8 per cent to BFI 
under the original offer terms 
- will receive 80 per cent of the 
German proceeds. 

However, it is thought that 
the Takeover Panel insisted 
that BFI retain 20 per cent to 
guarantee that it would seek 
the best price. 

The increased offer and divi- 
dend payment represent $9.44 
per American Depositary 
Receipt equivalent to five ordi- 
nary shares. 

Attwoods' shares closed in 
London down lp at 118p. 


buy-back 


By John Clapper, 
Bankfcig Editor 


Black dares Murdoch to end war 


By Raymond Snoddy 


Mr Conrad Black, chairman of The 
Telegraph group, yesterday challenged Mr 
Rupert Murdoch, chairman of News Corpo- 
ration, to end the UK's national newspaper 
price-cutting war. 

Mr Black, who was in Melbourne for the 
annual meeting of John Fairfax, a Daily 
Telegraph associate company, said; "He 
started the war, he can finish it” 

The Telegraph chairman was speaking 
as the UK group announced a £2. 6m oper- 
ating loss for the third quarter, on turn- 
over of £53 5m. The period felt the full 
effects of the 18p cut in the price of the 
weekday Daily Telegraph to 30p to com- 
pete against the 20p Times. 

The pre-tax profit for the quarter, 
Including interest payments, was £3.6m, 
compared with £l0.6m last time. 


Mr Stephen Grabiner. managing director 
of The Telegraph, said yesterday: “When 
we Tnaifa our price cut it was to defend 
our market position and to try to grow our 
young readership. We have done both.” 

Circulation had increased by between 
90,000 and 100.000 to about 1.08m. The com- 
pany said that from April to September 
readership among 25 to 44 year-olds had 
increased by 29 per cent on the compara- 
ble period. The Times, now selling more 
than 614,000, bad increased its proportion 
of older readers, Mr Grabiner added. 

For the first nine months group turn- 
over was £190 5m (£i8&3m) and pre-tax 
profits fell to £33 5m (£45 5m). 

Earning s per share dropped from 22.5p 
to 17.7p. 

The company said yesterday that the 
third quarter operating loss had been 
caused by a redundancy programme. 


Newspaper advertising revenue had 
increased by 12.5 per cent. 

“Reasonable levels of operating profit- 
ability will be sustainable, even in a pro- 
longed period of low cover prices,” The 
Telegraph said. The outlook for the com- 
pany overall remained “quite positive" 
helped by support from overseas and other 
associated companies. 

A stake in Carlton Television, the Lon- 
don weekday [TV company, was sold for 
£10m. representing a capital gain of £6.6m 
which was not included in the interim 
profits. 

Mr Derek Terrington. media analyst at 
Kleinwort Benson, said yesterday he had 
reduced his full-year forecast for The Tele- 
graph by £4m to £43.5m. 

The share price, which reached a high 
this year before the price cut of 625p. fell 
5p to 337p yesterday. 


Kingfisher to dispose of 
non-core Charlie Browns 


Eurovein priced at 141p 
gives £23m valuation 


By Peter Pearse 


Kingfisher, the re tailing group 
encompassing Woolworth, 
B&Q, Comet and Superdrug, 
announced yesterday it had 
decided to sell Charlie Browns 
Autocentres, the automotive 
repair and aftercare retailer. 

Mr Nigel Whittaker, King- 
fisher corporate affairs direc- 
tor, said the announcement 
was to “avoid leaks”, and the 
derision was taken because the 
business was not core. King- 
fisher bought the 42-outlet 
Charlie Browns chain in April 
1987 and since then had expan- 
ded the business to 79 outlets 
with turnover of “just under 
£5Gm". Mr Whittaker said that 
when the group had been 
asked about Charlie Browns’ 
profits, the answer had always 


been; “a modest contribution". 

Founded in Shipley. West 
Yorkshire, Charlie Browns is 
spread across the north and 
Midlands 

Mr Whittaker said that in 
the mid-1980s, Kingfisher ha d 
been looking for out-of-town 
opportunities along the lines of 
B&Q. It tried Hamecentres for 
furniture and Autocentres for 
motor parts and servicing. 
Charlie Browns was bought to 
bring the servicing expertise 
necessary. The motor side was 
modelled on the The Pep Boys, 
a US business resembling a 
bland of Halfords and Kwik-FiL 

In August, Mr Bill Bailey left 
B&Q, where he had been carry- 
ing out a strategic review, to 
head Charlie Browns. He 
would be advising on the sale, 
said Mr Whittaker. 


By Andrew Baxter 


Dealings in shares of Euro vein, 
the Sheffield-based specialist 
engineering concern, begin 
next Thursday following the 
announcement yesterday of 
listing particulars for a pi»Hng 
to raise £l3.55m. net of 
expenses. 

The 10.1m new shares being 
placed with UK institutions, at 
a price of 141p, will represent 
6L2 per cent of the enlarged 
share capital, and give Eurov- 
ein a market capitalisation of 
£23.2m. 

The deal is an encouraging 
sign of UK institutions' contin- 
ued interest in manufacturing, 
in a market that has not been 
easy for flotations. Eurovein 
has interests ranging from 
shotblasting equipment to fil- 


tration and machine knives, 
and operations in the UK, Ger- 
many and Italy. 

Mr Bill Eastwood, chief exec- 
utive. said the placing required 
a lot of work from brokers 
Albert E Sharp, but there was 
no point where it looked to be 
at risk. It was also reasonably 
priced at a multiple of 11 times 
last year’s pro-forma earnings. 

Eurovein had operating 
profit of £2.6m (£1.6m) in the 
year ended July 31. 

The company, whose busi- 
nesses represent a reconsti- 
tuted version of the old quoted 
concern WA Tyzack, will use 
the placing proceeds to reduce 
significantly its gearing, and 
provide the flexibility to 
enhance some of its existing 
businesses through investment 
or acquisition. 


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Asprey 
gets support 
from bankers 


By Peter Pearse 


The Bank of Scotland 
yesterday announced “at 
Asprey’s request" that the 
upmarket jeweller and its 
management “enjoy the full 
I confidence and support of the 
I bank and that the agreed facil- 
ities remain folly available to 
the company". 

This was in response to a 
report in the Mall on Sunday 
that Asprey was in potential 
default of the facility and 
might face receivership. Mr 
Naim Attsilah, chief ex e c u t i ve, 
said that the bank could not 
appoint a receiver anyway as 
the £20m loan facility was 
based on an unsecured pledge. 

Yesterday the bank said: 
“No event of default has 
existed at any time during the 
currency of the facility; and 
the management of the com- 
pany has not misled or sought 
to mislead the bank." 


Receivers 
in at 

Beckenham 


FINANCIAL TIMES FRIDAY NOVEMBER IS 1994 


Further inflow of 
gives boost to lie 


By Ralph Atkins 
Insurance Correspondent 


Barclays Bank yesterday 
became the latest company to 
reduce excess capital by 
i announcing that it would buy 
back $500m (£30 0m) of non-cu- 
I molative preference shares. 

1 Tbe move follows Boots' 
£500m buy-back of ordinary 
shares earlier this week. 

Barclays, which has already 
redeemed $70Cm and DM250m 
(£100m) of bonds that formed 
part of its total capita] base, 
had. to gain Rank of England 
approval for the preference 
share redemption because it 
will cut the bank's core capital 
ratio. 

Tbe bank has been accumu- 
lating capital without a large 
rise in its assets because erf 
limited loan demand. It has 
also jnst sold Its US asset- 
based lending operation to 
Shawmut National Corpora- 
tion for a premium of $290m 
over book value. 

Tbe preference share 
redemption and bond repay- 
ments will together reduce its 
£10.5bn of capital by £879m. It 
will also match its capital with 
assets better in currency 
terms, since it has been selling 
retail banking assets in the 
US. 

The move would have 
reduced its capital to risk 
asset ratio at the half-year to 
10.1 per emit rather than 11.1 
per cent, while the tier 1 ratio 
of core capita] to risk-weighted 
assets would have been 6.6 
per cent rather than 7 per 
cent. 

The bank said it would pay a 
£17m premium for redeeming 
the preference shares. This 
would be borne in this finan- 
cial year along with the £63m 
cost of redeeming bonds, and 
attributable earnings would 
rise by about £30m a year 
from 1995. 

Mr Oliver Stocken, finance 
director, said that the bank 
bad primarily been motivated 
by matching its dollar capital 
to Its dollar assets. “As we 
have ran down the US retail 
business, we have bad a sur- 
plus dollar capital position." 
he said. 


The How of extra corporate 
capital into Lloyd's of London 
accelerated yesterday when 
two new quoted ftrimpanlea 
announced they had raised a 
total of nearly £40m and a 
third said it hoped to find £30m 
in the next week. 

However, the boost to 
Lloyd’s efforts at increasing 
corporate investment was 
marred by the failure of Wel- 
lington Underwriting, whose 
share placing was delayed sev- 
eral times, to readi its £3teu 
target 

Wellington is the first “dedi- 
cated" company - investing 
only in syndicates ran by one 
managing agency and, in 
effect , an embryonic insurance 
company - to obtain a UK mar- 
ket listing. 

Mr Anthony Cooper, chief 
executive of the Wellington 
managing agency, blamed the 
unsettled state of the UK new 


issues market for disrupting its 
plans. But the failure of 
Lloyd’s ruling council to 
approve new rules oil carpo-: 
rate investors buying shares in 
each other prevented Welling- 
ton raising an extra £4m-£5m. 

W elling ton managed to raise, 
a total of £17J!Sm via a placing. 
jnninriing contributions from 
the US and Germany. 

The new Lloyd’s companies 
have not been helped by the 
lacklustre share performance 
of similar investment vehicles 
launched last year. 

However, Euclidian, anot her 
new quoted company, raised 
£20m for a range of Lloyd’s 
syndicates. Euclidian's attrac- 
tiveness to investors was 
enhanced by an innovative 
r isk - sharing agreement with 
Centre Re, the Bermuda rein- 
surance subsidiary of Zurich 
Insurance, which will allow 
Euclidian to underwrite insur- 
ance p olicies paying premiums . 
of £8Gm, four times the gross 
capital raised. 


Clydesdale and Yorkshire 
banks carry lower provisions 


By James Buxton 
and Alison Smith 


Clydesdale Bank, Scotland's 
third largest clearing bank, 
increased pre-tax profits by 24 
per cent to £U0.7m in the year 
to September 30. 

The result, another record 
for the Glasgow-based institu- 
tion, benefited from a £16£m 
reduction to £2L5m in provi- 
sions for bad and doubtful 
debts. 

Operating profit before 
chain in g for bad debts was 
F 139 9 TT 1 (£l27.6m). 

Mr Frank Cicutto, who 
became chief executive in Jan- 
uary on the death of Mr 
Charles Love, said corporate 
lending fell because companies 
were reducing harrowing and 


accelerating repayments. . 
Mortgage lending increased 14 
per cent and now represented 

35 per cent of the total lending. 

Yorkshire Bask which, tike 
Clydesdale, is owned by 
National Australia Bank, 
reported a smaller rise in pre- 
tax profits to £137. 3m 
(£13L7m), though it too bene- 
fited from a sharp fall in provi- 
sions to £42.6m (£68.4m). 

Net interest income fell by 
just over £20m to £256.3m, 
though Mr Tom Gallagher, 
chief executive, said this 
hugely reflected a change in 
accounting for loans made 
before 1991. There was, how- 
ever, a more encouraging rise 
in non-interest income to 
£l22Jhn (106.7m). 

An increase in operating 


expenses to £l98.7m (£L8fc8m) 
- mostly from investment in 
prorjects such as m ov ing, pro- 
cessing out of branches 
affected Yorkshire's coBt-to- 
come ratio, .but at 52ii per cant 
it is still one-bit the better 
PTumptog in. the sector, >■ ,v-' . . 
. During the year Clydesdale 
largely completed a major reor- 
ganisation of its branch: net- 
work, removing processing 
work from its 350 branches and 
creating three processing, cen- 
tres. - 

Because of investment in 
reorganisation, Clydesdale’s 

CTS t rnramp raHn fall only mar . 

glnall y from 608 per cent' to 
603 per cent, having been 64 
per cent two years ago. 

Total assets were £6.0bn 

(£5Jj6bn). 


DTI looks into fall in JArthiff Shaw 

A . advances 65% 

Aerostructures shares to £402,000 


By David Blackwell 


The Department of Trade and 
Industry is looking into the 
collapse in Aerostructures 
Hamble’s share price, accord- 
ing to a letter to a Labour MP. 

Mr Jonathan Evans, corpo- 
rate affairs minister, says in 
the letter that “officials are 
currently considering the vari- 
ous press reports and informa- 
tion available from other 
sources which might enable 
them to determine whether or 
not further action should be 
taken." 

Aerostructures was floated 
at 120p a share in June. Last 
month it issued a second prof- 
its warning following produc- 
tion difficulties. 

The shares, which closed at 
26p yesterday, fell to 24p. 

Mr John Denham. MP for 
Southampton Itchan, wrote to 
Mr Michael Heseltine, the 
trade and industry secretary, 
last month calling for a DTI 
inquiry into the flotation of the 
Southampton aircraft compo- 
nents maker. 

Mr Evans* reply said the 
whole affair raised “a number 
of apparently serious issues - 
two of which you identify in 


your letter - and in studying 
the available information my 
nffiriaia are taking frill account 
of your, and your constituents', 
legitimate concerns.” 

Mr Denham’s letter that 
the company’s employees, 
many of whom live In his con- 
stituency, were worried about 
the implications of the share 
collapse for tbe future of the 
company. 

They were also concerned 
that it could happen so soon 
after the flotation, which had 
left several directors with sub- 
stantial personal profits. 

Yesterday Mr Denham said 
he hoped the DTI would 
quickly establish whether 
there were grounds for further 
action While the first concern 
should be to see the company 
build a successful future, legiti- 
mate questions had been raised 
by the share collapse. 

ft was “in everyone’s inter- 
ests to have the matter 
resolved.” 

Aerostructures is still seek- 
ing a new chief executive to 
replace Mr Andy Barr, who 
accepted early retirement with- 
out compensation. 

Mr Barr made £L75m from 
the flotation. 


Arthur Shaw & Company, the 
USM-qnoted bolldara and engi- 
neering products supplier, 
reported pre-tax profits ahead 
65 per cent to £402,000 for the 
26 weeks to October 2, against 
£243,000. T urnov er rose from 
£9 .85m to £10.3m. 

The company also said it 
had sold part of Jackdaw 
(Tools) to Its management for 
a net asset determined sum 
not exceeding £537,700. Jack- 
daw incurred pre-tax losses of 
£281,000 in the year to April 3 
1994. The Shrewsbury engi- 
neering services and tools divi- 
sion is being retained. 

Earnings per share were 
0.77p (0.46p) and the interim 
dividend is raised from an 
adjusted 0.125p to 0J2p. 


ADVERTISEMENT 


Financial 
managers - 
your future 


NEWS DIGEST 


Receivers called in yesterday 
to Beckenham Group, the heat- 
ing and ventilation engineer, 
said the group had outstanding 
liabilities of about £8m. The 
receivers were appointed by 
Tapul SA, a Panama-registered 
group, which has a 39.8% stake 
In the group. 

The receivers, Mr Peter 
Spratt and Mr Michael Gercke, 
both partners at Price Water- 
house, said the bulk of the lia- 
bilities were to trade creditors. 


The group’s outstanding hawk 
debt was replaced after a 
rights issue and placing which 
was completed in March. 

Five of the group’s specialist 
subsidiaries were to continue 
trading and be sold as going 
concerns. Beckenham Duc- 
twork, the ductwork engineer 
and contractor which employs 
200 of the group’s 260 employ- 
ees, had been put into receiver- 
ship. 


Net asset value per iwcppip 
share was 3.68p (2.46p at Octo- 
ber 31 1993 and l.44p at April 
30) and 129.94p (117.04p and 
123.26p respectively) per zero 
preference share. 

After-tax revenue for the six 
months to the end of October 
rose from £497,467 to £565353 
and earnings per income carpt* 
through at 5.03p (4.43p). a sec- 
ond interim of 1.4p mair^g a 
same-again 23p to date. 


Fulcrum Investment 

Fulcrum Investment Trust 
reported a fall in net asset 
value per capital share to 
47,09p at October 31, against 
63.12p a year earlier and 5838p 
at the end of April 


dividends announced 


Current 

payment 


Date of 
payment 


Correa - 
ponding 
dMdend 


Glasgow Income 

Glasgow Income Trust had a 
net asset value per share of 
4539p at September 30 against 
47.68p a year earlier. 

Net revenue for the year 
improved from £831,000 to 
£894.000 for earnings per share 
of 2.93p (2.81p). An unchanged 
final dividend of 0.85p holds 
the total at 2.75p 


ACT jm 

Can's MIBng fin 

Clyde Rowers fin 

*4a — .J n t 

FiScnun fin Irit 

Glasgow Income fin 

Grampian TV kit 

Lodoer (Thomas) — lm 
M&Q Income Inv — .Jnt 


National Power — . lm 

Porta 4 Sund hit 

600 Group int 

Seapa Int 

Shaw (Arthur) § .. kit 

Whitbread tnt 

WKsCorreon - -.fin 

York Waterworks Jnt 


York Waterworks 

York Waterworks raised turn- 
over by 5 per cent from rag?™ 
to £4.lm in the six months to 
September 30 and pre-tax prof- 
its moved ahead by 9 per cent 
from £l.4lm to £1.5Sm. 

Mr Richard Stanley, chair- 
man, said this progress was 
^Peded to be maintained in 
the full year, although sea- 
sonal factors would again 


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An MBA degree specially 
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That is why the world famous - 

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Tbe MBA has a high level of 
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fflferck ah °y ] ® ha 2 net ®«»pt where otherwtea stutad. tQn 

J’SJfSS ^Adjusted for stft-dhfeion and scrip Issue. 

* Second mtarim making 2Ap to date. 


result in the second half m r - « *.um. uumuie ror 

formance not being as strom* Management, 

as the first. ^ Stnmg £^,7 ?**£****> 

** share »ere lp m4M DG ’ 

dhSfand 1 interim fax: (4 4 > °124a 370769 

dividena has been stepped un “ — 

to 3.55p (85p). UP 


:7 -I*' 

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Separately. Kfl i^ one of the 
largest managing agencies at 
Lloyd's, tamebed' a pathMer T 
prospectus for Kiln Capital, 
another dedicated company; 
which it expects to beJfefed in 
London. It plans, to raise up to - 
£38m via aijUacfog and- offer to 
same Names an Kilri^ syndi- 
cates. • 

. Kfln Capitol plans to invest 
exclusiv ely in Kiln , syndicates . ‘ 
and hopes to tempt investors 
by . offering: ■. the prospect- of 
higher returns than foe market 
average.. Mr Andrew Fleming. 
Williams, a Kfln. director, add: 
“We have been consistently 
better fojihe past and we wffl 
try very hard to cantinue to do 
that”- ' u .i . 

Head Insurance Investors, an , 
affiliate of John Head, toe New 
York . merchant, bank; has 
agreed to subscribe to about 19 
per cent of Kiln Capital artfc 
nary shares. ; - 

KBn has - set next Thursday 
as impact day’ with deaHngi 
expected to start a week lata:. 


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23 


COMPANY NEWS: UK 


increase 


Analysts remain cautious despite better than forecast i 

Whitbread rises to £183.6m 


JyRoderfakOranv 


Editor 

gffls in premium lagers and 

SS* a ? 0ng *** drinl£s . and 
“d restaurants on its 
retailing side. 

-J*^*®* Profits rose by 8 per 

rent from azLSm to £143Am 
ui the six months ended 
August 27, or to £183.6m 
“fJudMg exceptional gains 
largely from selling most of its 
stakes m regional brewers. 
Turnover edged up 3 per cent 
to £L22bn (El.iSbn). 

Whitbread's success was con- 
sidered untypical, however, 
and analysts remained cau- 
tious ahead of results from 
other brewers. Whitbread has 


the best exposure to East grow- 
ing market segments such as 
premium lagers, stout and affffk 
ales. These represent about 40 
per cent of Its beer sales 
against less than 30 per oewt 
for Bass, the largest brewer. 

The industry suffered a L7 
per cent fall in on- trade beer 
volumes in the six months to 
August from a year earlier, but 
Whitbread's was flat. Off-trade 
sales were up 53 per cent but 
Whitbread's rose 1L8 per cent 

"Beer is a core business. It is 
one where we can grow profits 
and we intend to go on doing 
so," Sir Michael Angus, chair- 
man, gat'd 

Hia bullish comments and 
the company’s expressed inter- 
est in using its ungeared bal- 
ance sheet to further its expan- 
sion left analysts expecting 
deals in due course. He 


d ec li ned to comment, however, 
on whether Whitbread was 
interested in buying Courage 
from Fosters. 

Operating profits from beer 
rose 5 per cent to £27m 
(£2&fim). Beer volume was up 3 
per cent overall but sales rose 
only 1 per cent at £451.7m, 
indicating Whitbread faced 
competitive pricing in off sales. 

Pub operating profits were 
£59.3m (£53. 9m) on sales of 
£295.3m (£275 J2m). Food and 
drink margins were fiat,, but 
food sales were up 19 per cent, 
accounting for about 25 per 
cent of pub turnover, about 
double the industry average. 
Whitbread said it plans to sell 
its 750 free houses. 

Restaurant and leisure prof- 
its were £30. 9m (£28.4m) on 
sales of £5443m (53&5m). 

The interim dividend rose 7 


per cent to 545p (5p). flarnings 
per share were 30.09p (19J96p) 
including exceptional g a in s, or 
ZL.6& (19J21P) without 


A few years from now, more 
brewers might look like Whit- 
bread: strong in briskly grow- 
ing beers and nimble in pubs 
and off-licences. Yet Whitbread 
needs to learn some oF its com- 
petitors' tricks. Bass’s beer 
margins are about 9% per cent 
against Whitbread’s 6 per cent 
Meanwhile, there is plenty of 
momentum to push full-year 
pre-tax profits to about £260m 
before exceptional^ for earn- 
ings of 39.2p a share and a pro- 
spective p/e of 14. This is 
broadly In line with the sector 
but a little caution is called for 
until Whitbread spells out its 
beer expansion. 


Ascot restructures for 
second time in 18 months 


By Christopher Price 

Ascot Holdings, the property, 
pubs and hotels group, yester- 
day unveiled a second finawiai 

restructuring in 18 months as 
its half-year results showed 
negative shareholders' funds of 
£25.7m. 

The group, formerly known 
as Control Securities, is to 
restructure around £164m of 
group debt This will involve 
the issue of new shares to raise 
£27.3m, together with the con- 
version of preference shares, 
an offer to bondholders and 
settlement of claims by Bass, 
BCCI and Salomon Brothers. 

The effect of the proposals 
will be to create shareholders’ 
funds of between £5L8m and 
£6Lfim. This represents a pro 
forma net asset value of 
between 188p and 223p per new 
ordinary share. 

More than 27m shares are 
being placed at 150p, with a 
49-for-lOOO clawback. The new 
shares represent 6&9 per emit 
of the enlarged sham capftaL 
Existing shamhnMmu wiTT hold 
a further 13.4 per cent with the 
remainder being taken up by 
shares issued to Bass, BCCI 
and preference sbareholdens. 

Advertising 
revenue aids 
Grampian TV 

Increased advertising revenue 
and reduced costs helped 
Grampian Television, tile inde- 
pendent broadcaster for north 
Scotland, to increase Interim 
pre-tax profits by 17 per emit 
from £L55m to SUIlm. 

An exceptional item of 
£340,000 represented Gramp- 
ian’s share of start-up costs 
associated with Scot FM, the 
central Scotland radio station 
launched in September. 

Mr Calum MacLeod, chair- 
man, sdd yesterday that other 
significant contributions came 
from the hire of facilities, the 
news service contract with 
GMTV and funding from the 
Gaelic Television Committee 
fur a range of programmes. 

Sales in the half-year to 
August 31 rose to £l0.1m 
(£9. 87m). Operating expenses 
took £7.77m (£8. 16m). The 
channel 3 licence payment was 
£368,000 (£360,000). 

The increased interim divi- 
dend of 2p <l-5p) is designed to 
reduce the disparity with the 
final. Earnings per share came 
through at &8p (7-4p). 


The existing shares are being 
consolidated on a 100-for-l 
basis. The shares yesterday 
closed down. Ytp at l’Ap. 

Ascot has also agreed new 
banking facilities totalling 
£71m and a mezzanine finance 
agreement worth £15m. 

The board warned sharehold- 
ers and bondholders that the 
company faced “a very uncer- 
tain future" should the propos- 
als be rejected. 

The half-year results to the 
end of September show the 
group moving from losses of 


£555,000 into profits of £2.1m. 
However, operating profits fell 
22 per cent to £7.78m (£9A7m). 
Turnover fell 34 pm 1 cent to 
£3£2m QM8.9m). 

Earnings per share were 0.2p 
against losses last time of 
0.6p. 

Ascot’s problems first came 
to light three years ago, when 
the Serious Fraud Office inves- 
tigation into BCCI led to 
charges against Mr Nazmn Vir- 
ani, who subsequently 
resigned as anH chief 

executive of Control Securities. 


RJB projections 
in support of bid 


These are among the figures 
being issued by RJB Mining in 
City presentations to support 
its £9l4m hid for the three 
‘En glish regions of British Coal, 
writes Michael Smith. 

The company has been cho- 
sen as preferred bidder fry the 
government , which wants to 
hand over the assets, including 
15 deep mines, on December 
RJB has told investors the pro- 
jections are not intended as a 
forecast of the eventual out- 
come. 


Pro-forma Not Assets 


Estimated 

ffm) 

Fixed assets 

680 

CuTont Assets 

Stocks 

314 

Debtots 

94 

Pre-payments 

12 

Total Assets 

1,100 

(JaMMes 

Provisions 

155 

Creditors 

14 

Deterred tax 

29 

Total UabWfes 

198 

Net Assets 

902 


Finan ci al Pr o j ecti on s 

Year end Dec 31 


< tea ) 

96 

96 

97 

98 

98 

Total 

Turnover 

1,244 

1.276 

1,258 

1.218 

1.238 

6,234 

Coats 

14)73 

1,052 

1,029 

1,033 

1,031 


Profit before interest 
and taxation 

171 

224 

229 

185 

207 

1,016 

Pro-forma net interest 

(55) 

P6) 

(18) 

1 

13 


Profit before taxation 

116 

188 

211 

186 

220 


Operating, cash- flow* 

255 

27S 

292 

289 

2G1 

1X5 

CumutaJiva cash flow* 

255 

533 

825 

1,094 

1.355 



•anon MnraaC. dMfcndi mtd moapn HO AqM» nmtm lor Vm MM« fUB !>**> 


Key As sum ptions 


95 


97 


98 


99 


Voimw sold (mftton tonnes) 
Volume produced (ml) 

Aw selling price/GJ 
(today's (Xicos) (E) 

Ave cosMonna (£) 

pncL overheads and Inflation) 


35J3 

35.7 

34.7 

34.1 

33.8 

33.4 

34.4 

33.6 

33.6 

352 

1.43 

1X0 

1.38 

1.32 

1.32 

30.4 

29.5 

29.7 

30.3 

305 


Mate 3 por caul B yaar 


Market Requirements for Coat* 


Conservative 

Ftivotrabie 

RIB 


Casa 

Cam 

Prpfocuflon 


Mar 31 2000 

Mar 31 2000 

Dec 31 1998 

£81 

27,1 

43.0 


Industrial 

BA 

65 


Domestic 

2 JO 

3 JO 


Total 

3Sl5 

545 

33-8 


This adYcrtisanax is issued In compHimcc with the regnlmboos of ihe International Stock Exchange of the United 
Kingdom gnd the Republic of Ireland Limited (die “London Stock Exchange”). It does not constitute an offer or 
invitation to any person to subscribe for or p oichasc any securities. 

Application hw been macks lo the London Soxi Exchange for all the ordinary shares of 25p each of Eadkfian pic 
CB sMsD , 'HjHw-rf and now being issued, to be admitted to the Official List. Ii is expected that admission to die 
Official List wiff become effective and that dealings in the onfinaiy shares win commence on 25 November 1994. 

EUCLIDIAN pic 

(Iwocpotaied in England and Whies under tbe Companies Act 1985 registered no. 2981015) 

Placing 

by 

Samuel Montagu 

; of 

20^000,000 ordinary shares of 25p each 
at lOOp per ordinary share 
payable in foil . on application 


Authorised 

Nominal value No. of stares 
C/,500.000 30000,000 


in oidiooy shares 
of 25p each ' 


Issued and to be issued fully paid 
Nominal value No. of shares 
£5.000,000 3WXMD00 


gpelidtin wffl bea new huesnnem company fanned to provide investees whh enhanced nairas through geared 
oodeswriDqg u Lloyd's- will provide the dual opportunity of puticipatiDg in tbe Lloyd's insurance 

nmfcct on a limited babtliiy basis and oT investing fa a managed portfolio, winch wiD initially comprise shon- 


Copks of *e Li 


; m Eiidahim may bo obtained during normal business hours on any 
i to and intituling 23 November 1994 from the Company 

I Court Entrance, 

off BanhokBocw 1 fl nr London EC2N !HPfbycolie«kMOtdy),anduptoind inclndiiig2Darniber 1994frorn 
Euclidian's registered office at Three Quays, Ibwer HOI, London EC3R 6DS and from Samuel Montagu & Co. 
1 -Wimri , m Lnwer Thames Street. London SC3R 6AE- 

18 November 19W 


Brockhampton 
advances 
to £3.77m 

Pre-tax profits at Brock- 
hampton Holdings, tbe parent 
of Portsmouth Water, rose 
from £3.43m to £3.77m in the 
six months to September 30, 
though it said that the second 
half might be weaker than the 
first. 

The shares fell lOp to 373p 
yesterday. 

Turnover advanced to £ 13.8m 
(£12.7m), reflecting the 3.4 per 
cent overall rise in charges and 
a one-off increase in measured 
revenue arising from the 
switch to monthly billing of 
large wiwmarrfai customers. 

The pre-tax figure would 
have been greater but for the 
costs of upgrading computer 
equipment committed in late- 
1993 and by a front-loaded 
mains renewal programme. 
The company said this would 
be less severe in the second 

half 

Earning s per share emerged 
at 3L3p (30ip) and the interim 
dividend is held at 3p. 


Bourne End 
in US link 
to buy £71m 
portfolio 

By Simon London 

Bourne End Properties has 

formed a joint venture with 
the Whitehall Fund, a US 
prop erty investment find 
managed by Goldman Sachs, 
to buy a £71m portfolio. 

The venture wiD be 25 per 
cart owned by Bourne End 
and 75 per cent by Whitehall, 
which has assets otf2im 
(£1.2bn) but only recently 
started investing in the UK. 

Bourne End is placing 5.4m 
shares at 74p each to raise 
£4m — its m^riniiiiii capital 
commitment under the deal. 
The rest of the consideration 
will he met from equity 
committed by Whitehall and a 
£5&5m tom loan. 

Tbe portfolio of 45 office and 
retail properties, mostly 
located in London and. the 
south-east, is being acquired 
from William Pears Group, a 
privately owned property 
investment company. 

The properties generate 
rental income of £7 .2m, 
suggesting a yield of about 10 
per cent at the acquisition 
price. Bourne End said it 
hoped rents could be Increased 
to £7.6m within the next year 
as a result of reviews and 
letting of vacant space. 

Bourne End will receive 25 
per cent of profits and a 
manag ement fee. 

The partners intend to 
liquidate most of the portfolio 
over the next three years. 
Whitehall's investment style is 
based on active trading of its 
assets, which it typically holds 
for less than 10 years. 

After three years, Whitehall 
has an option to sell Its stake 
in the joint venture to Bourne 
End or buy out the minority 
intoest 

Mr David Roberts, a director 
of Bourne End, said it had 
looked at buying assets from 
William Pears earlier in the 
year, but concluded that it 
needed a partner. 


National Power drops to 
£21 lm after exceptional 


By Simon Davies 

National Power, the electricity 
generator, reported pre-tax 
profits for thft six to 

September 30 down from £25&n 
to £2110. 

However, this included a 
E30m exceptional writeoff, rep- 
resenting the premium paid 
from the redemption of a 
£350m debt issue. The 1993 fig- 
ure was also boosted by a £45m 
write-back of provisions. 

Before exceptional items 
profits rose by 14 per cent, 
from wnim to wAim on a 7 
per cent increase in turnover 
to £1.67bn (£L56bn). 

Tbe company said that con- 
tinued reductions in staff and 
maintenance costs were 
responsible for the growth 
dpgpitg a « m ti l ini ng d ecline in 
market share. 

Tnmqifing competition from 
Hw independent power compa- 
nies and Nuclear Electric led 
to a fan in market share from 
35 per cent in the year to 
March 1994, to 32 per cart in 
the Half year. 

The dividend is increased by 
16 pet- cent to 4^5p (3.75p), dis- 
appointing some analysts who 



John Baker: believes rafi costs 
for coal could be halved 

had seen PowerGen increase 
its dividend by 27 per cent, cm 
a 9 per cent rise in pre-tax prof- 
its. Earnings per share 
amounted to J2p (I6.1p). 

Increasing revenues came 
from direct sales to large con- 
sumers, which more than dou- 
bled to £276m. Sales to the 
regional electricity companies, 
via the pool, showed a mar- 
ginal derliiM*. 

The company continued its 


cut-bads programme, reducing 
staff by 23 per cent to 5,667 
during tbe past year, and staff 
costs fall from £109m to £93m. 

Mr John Baker, chief execu- 
tive, expects the head count to 
fall to 5,200 by next March. 
Maintenance costs should also 
continue to decline, from the 
switch towards more modern 
and efficient power stations. 

National Power benefited 
from a further running down 
of its coal stocks, towards a 
year-end figure of less than sm 
tonnes, compared with the cur- 
rent 9m tonnes. 

However, there was a 37 per 
cent increase in depreciation 
charges to £l32m, following the 
commissioning of a new gas 
power station and de-sulpberis- 
ation plant 

Mr Baker reckoned National 
Power could halve its rail costs 
for transporting coal, currently 
amounting to about a 

year. It has invested in its own 
locomotive, and has started 
discussions with Rafltrack. 

ITie international operations, 
in the US and Portugal, con- 
tributed £4m profit, with Portu- 
gal making a maiden contribu- 
tion. 


Property profits help 
Clyde Blowers to double 


By James Buxtor^SootUsh 
Correspondent 

Clyde Blowers, the expanding 
nwfpriais handling equipment 
company, reported pre-tax 
profits more than doubled at 
£521,000, against £205.000 in the 
year to August 3L There were 
£603,000 of exceptional profits 
this time, against £515,000- 

At the operating level losses 
were reduced from £269,000 to 
£92,000 cm turnover which rose 
to £16. 9m (£7.4m). 

A long-established quoted 
engineering company, Clyde 
has been transformed since Mr 
James McColl bought 29.9 per 
cent in 1992 and became execu- 


tive chairman 

Its last purchase was Simon- 
Macawber, a maker of pneu- 
matic pressure and vacuum 
conveyancing equipment, in 
April from Simon Engineering. 
It now forms Clyde Pneumatic 
Conveyancing and accounts for 
65 per cent of turnover, which 
is expected to reach £27m in a 
full year. 

The exceptional profits 
included a gain of £593.000 on a 
property sale and investment 
income from property of 
£120,000. 

A final dividend of 3p (2.67p) 
is proposed making a total of 
4.5p (4p) from earnings per 
Share of 5J8p (4.69p). 


Graseby 
postpones 
US flotation 

Graseby, the instruments 
group, has postponed indefi- 
nitely the flotation of Graseby 
Andosen tax the US. The com- 
pany blamed weakness in tbe 
US environmental market and 
unfavourable stock market 

The costs of £900,000 will be 
written off in the 1994 results. 

The company also announ- 
ced the sale and leaseback of a 
property In Florida for $4.7m 
(£2.86m), giving a profit of 
about £1.3m. 

For the wine months to Sep- 
tember 30 it reported static 
sales with increases in medical 
and product monitoring offset- 
ting falls in technology. 


FT 


FINANCIAL TIMES 

Conferences 


FINANCIAL REPORTING 
IN THE UK 


London — 28th November 1994 

PROGRAMME 


AN ASSESSMENT OF THE ACCOUNTING 
STANDARD SETTING PROCESS IN THE UK - 
ACHIEVEMENTS AND FUTURE TRENDS 

Mr Chris Swinson 
Partner. BDO Stoy Hayward 
Member, Financial Reporting Council 

THE ASB REFORM PROGRAMME: REVIEW 
OF CURRENT AND PROSPECTIVE ASB 
ACCOUNTING STANDARDS 

* REVIEW OF FRS I ; CASH FLOW 

* ASSOCIATES AND JOINT VENTURES 

* PENSIONS 

* DEFERRED TAXATION 

* PROVISIONING 

Mr Ken Wild 

National Accounting Technical Partner, Touche Ross & Co 
Member, Accounting Standards Board 

PROBLEMS OF APPLYING STANDARDS IN 
PRACTICE 

- FRS 5: OFF-BALANCE SHEET FINANCE 

Mr John H Kellas 

Partner 

KPMG Peat Marwick 

- MERGER AND ACQUISITION ACCOUNTING: 
FAIR-VALUES AND PROVISIONS 

Miss Mary Keegan 
Director of Professional Standards 
Price Waterhouse in Europe 


EMERGING ISSUES 

- INTANGIBLE ASSETS: VALUING BRANDS 
AND GOODWILL 

Mr Peter A Holgate 

Accounting Tecnical Partner 
Coopers & Ly brand 

Mr Michael Burkin 

Group Chief Executive Officer 
Interbrand Group pic 

- ACCOUNTING FOR FINANCIAL 
INSTRUMENTS: DERIVATIVES 

★ HEDGING AND OFFSET ARRANGEMENTS 

★ CLASSIFICATION, DISCLOSURE AND MEASUREMENT 

* FAIR VALUE VERSUS COST ACCOUNTING 

* DEFINING 'INTENT’ 

Mr David H Cairns 

Secretary-General 

International Accounting Standards Committee 

• 

FORUM: THE IMPACT OF THE ASB REFORM 
PROGRAMME ON COMPANY ACCOUNTS 

- THE REVIEW PANEL’S PERSPECTIVE 

Mr Michael Renshafl 

Deputy Chairman 

Financial Reporting Review Panel 

GUEST LUNCH SPEAKER 

Sir Sydney Lipworth QC 
Chairman 

Financial Reporting Council 


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FINANCI^TIMES FJ^AYN^ 


FKI falls 15% and 
takes lead on FRS 7 


By David Wjghton 


FKI, the acquisitive 
aigmeermg group, became one 
of the first companies to adopt 
the new FRS 7 accounting 
standard when it reported a IS 
per cent terfirw in interim pre- 
tax profits from £22 .lm to 
£18.7111, after an exceptional 
charge of £l2.4m. 

There was also a film provi- 
sion for reorganisation at 
Rhombus, the German caster 
manufacturer acquired for 
£26m In June. Under FRS 7, 
which conies into force for 
accounting periods starting 
next month, provisions relat- 
ing to acquisitions must be 
taken against profits rather 
than relegated to the balance 
Sheet 

Mr Jeff Whatley, chairman, 
said: “The new standard does 
make things clearer and we 
hope to get some credit for 
adopting it early.” 

In spite of the Rhombus pro- 
vision. the figures were in Htm* 
with City expectations and the 
shares closed 6p higher at 168p. 

Turnover for the six months 


to September 30 was £377.7m 
(£350m), including £13.7m from 
acquisitions. The exceptional 
charge relates to goodwill pre- 
viously written off against 
reserves, on the sale of three 
businesses to Wellman in July. 

Earnings per share 2.03p 
(S.52p) or 4.8p excluding the 
exceptional charge. The divi- 
dend Is up a third to 2p. 

Excluding acquisitions, oper- 
ating marg hiB from continuing 
businesses topped the 10 per 
cent target set in 1992. The 
shares have underperformed 
recently on worries that Mow- 
ing the sharp improvement in 
margins, further profit growth 
would be more difficult 

Operating profits rose by 
£10.8m to £36.6m*of which 
£8.5m came from Truth, the US 
window and door hardware 
manufacturer acquired for 
£6&5m a year ago. 

Truth, which makes almost 
three-quarters of its profits in 
the first half, boosted the hard- 
ware profits to S30Sm (£7.9m) 
on turnover of £135.7m 
<£72Sm). 

Of the other divisions, mate- 


600 Group back with £2.47m 


By Andrew Baxter 


600 Group 


New products and improved 
market conditions - especially 
in North America - helped 600 
Group return to the black in 
the year to September 30, with 
pre-tax profits of £2.47m, 
against a £L6m loss previously. 

But the machine tools and 
mechanical handling group 
said It was determined to 
maintain a cautious dividend 
policy “for the time being,” 
and the interim payout is held 
at 0.5p. 

Turnover rose 23 per cent to 
£5&8m (£*Lgm), and. the pre- 
tax profits include a credit of 
£1.4m (£l.3m) related to the 
actuarial valuation of the UK 
pension scheme. The underly- 
ing improvement in operating 
profit is £4m. 

Prof Michael Wright, chair- 
man, said the strategy of 
focused market and product 
development, combined with 
managed reductions in the 
operating cost base, was pay- 
ing off. 


Steve price ftpsnos) 
90 : 



1993 94 

Stxuw FT Graphite 


The decision to target the 
North American market, sup- 
ported by the acquisitions of 
Lakeshore Machine Tools, KTS 
Industries and, more recently, 
United Machinery Sales of Indi- 
anapolis, bad proved propi- 
tious. 

US sales rose 40 per cent an 
the comparable period. 

New products, especially the 
Tornado CNC lathe and the 


Scriba laser marker, had been 
received favourably and fur- 
ther products were in the pipe- 
line. 

The two main divisions both 
achieved substantial turn- 
rounds. On turnover of £35 An 
(£ 2 Sm) machine tools had pre- 
tax profits of £2An (£613,000 
loss). Mechanical handling 
moved from a £540,000 loss to a 
£560,000 profit, an turnover of 

£13.7m (£12.3m). 

The company's cautious 
approach to the dividend is 
partly explained by the out- 
look. Although Prof Wright 
expected further improvements 
in group performance, he said 
European markets remained 

slu ggish. 

The UK was experiencing a 
slow improvement as economic 
confidence increased, but the 
German market remained 
depressed. No big improvement 
in European conditions was 
expected before the middle of 
next year. 

Earnings per share were 3.8p 
(3.8p Losses). 



DON'T 
C R A C K 
UNDER 
P R F_ S S U R E 



/ - . 
A ■ / 






. , 

‘ v f 7 


4 ' \ 

NJri 



TCG 




TAGHeuer 


The Chase Manhattan Corporation 

U.S. $250,000,000 

Floating Race Subordinated Notes due 2000 
For the three months 18th November, 1994 to 2 1st February, 1995 die 
Notes will cany an interest rare of 6% per annum with a coupon 
amount of U.S. $158.33 per U.S. 510.000 principal amount, payable 
on 21st February, 1995. 


Bankers Trust 
Company, London 


Agent Bank 


DO YOU WANT TO KNOW A SECRET? 

The LDiSL Gam Seminar w* Show you how he marfuts FEALLYwakTheamsting 

trxtnQ techniques of me legendary W_D. Gam ran Increase ycur pefts and contain your 
bases. How? Thafs the secret Rhg OSt <74 0060 to book your FRS ptera. 


National & Provincial 
Building Society 

Iwu* of up to C200j000fi00 
Floating Bate No tea 1 999 
Notice is hereby given riot for the 
three mundu 17th November, 
1994 to I7th February. 1995 the 
Notes will carry an mrawr rare 
of 6.10417% per annum with a 
coupon amount of £153.86 per 
£10,000 Note and £1,538.59 per 
£100.000 Note payable tm 17th 


COMPANY NEWS: UK 


Barratt 
chief hits 
out at 


Signs that overcapacity in paper industry is i 

Scapa at £23m amid 


r > rv "r^ae 


ef’s 


f'oips 

'yZ-K ; 


rials handling profits were 
slightly down, due to delayed 
orders which will benefit the 
second half, and automotive 
showed continued recovery 
from a low base. 

However engineering profits 
fell £3m to £426tn due 

to problems at Bristol Babcock. 
It is being reorganised after 
failing to replace some large 
power station Instrumentation 
contracts in Kuwait 


government 


By Andrew Bolger 


By Gary Evans 


• COMMENT 

Now that FKI has achieved its 
margin target, helped by its 
success in pushing up prices, 
the City has started to worry 
about where the growth comes 
from next. Rumours that it 
was p lanning a rights issue to 
fund an abortive acquisition 
also unsettled the shares 
which have underperformed 
the market by a fifth since 
March. Even so, assuming prof- 
its of £65ra in the year, the 
shares are on a multiple of 
almost 17. The rating fully 
reflects the achievements to 
date and the quality of the 
management team 


Sir Lawrie Barratt, the 
chairman of Barratt Develop- 
ments yesterday hit out at 
government policies, including 
an increase In interest rates, 
which he said had ‘introduced 
an element of caution and 
uncertainty which is under- 
mining the recovery of the 

housing market" 

Sir Lawrie used the group's 
annual meeting to attatik the 
government's recent budget 
record of substantially eroding 
mortgage tax relief. He went 
on to accuse it of adding to the 
cost of home ownership with 
the reintroduction of Stamp 
Duty and hit out at the “petty 
measure" last November of 
applying Stamp Duty to those 
who require the assistance of 
builders’ Part Exchange 
schemes. 

“The government should 
accept that a strong and stable 
housing market is crucial to 
the recovery of the economy 
and call an immediate halt to 
any further increases in inter- 
est rates or farther erosion of 
mortgage tax relief," he added. 

Sir Lawrie, who came out of 
retirement three years ago 
after the group began to incur 
heavy losses, said "the hous- 
ing market is in need of some 
pro-active initiatives from the 
government and no farther 
negative measures." 

In September, Sir Lawrie 
reported a 72 per cent jump in 
pre-tax p ro fi t s to £35 .2m for 
the year to June 30. Turnover 
was up 23 per cent at £49S.9m. 

Yesterday, shareholders I 
were told that sales volume in 
the first four months of the 
current year was holding up at 
16 per cent, which was fully in 
tine with the group's three- 
year growth plan. 

The shares fell 6p to 173p. 

• Shares in Raine, another 
housebuilder, also dropped - 
by 4p to 47p - as Mr Peter 
Parkin, chairman, warned at 
the AGM that achieving prof- 
its growth this year would be 
more difficult than last. 
Short-term trading difficulties 
would particularly affect 
interim figures and result in a 
greater proportion than usual 
of profits being earned in the 
second half, he said. 


Scapa Group, the industrial 
materials company which 
mainly supplies paper makers, 
said yesterday that overcapa- 
city In the paper industry was 
receding, but cautioned against 
over-optimism on prices. 

Pre-tax profits rose by 3.6 per 
cent to £23m (£22 2m) in the six 
months to September 30, on 
sales up 10 per cent to £205m 
(£l$7m). However, the group 
said that market pressures had 
reduced sales and profits from 
the paper side of its business. 

Mr Harry Tuley, chairman, 
said: “The overcapacity situa- 
tion which has been a feature 
of the paper-making industry 
in recent years appears to be 
coming to an end. Operating 
rates at paper mills are rising 
and output volumes are 
Increasing at a fester rate than 
last year. 

“The engineered fabrics divi- 
sion, which has continued to 
gain market share throughout 
the period, is in an excellent 


position to take advantage of 
the improving' prospects. Cur- 
rent order books are strong 
and we are looking to the 
future with increasing opti- 
mism," 

However, Mr Tuley added 
that the changing structure of 
the paper and board industry 
and the introduction of corpo- 
rate and partnership sourcing 
for paper machine clothing 
would continue to keep the 
pressure an supplier prices. 

Because of these pressures, it 
was restructuring its engi- 


businesses now account for .'32 
per cent of operating profit, 
compared with 23 per cent at 
the same stage last year. 

Mr Tuley saHthespedaliiy . 
tape. business was pertorming 
. particularly wefl. Synergy from. 
French and Italian acquisitions 
was wihHnghy njriiwtli ' . 

Fiamtng a grew marginally to 
& 2 p (Gblp), white the interim 
dividend, rose to L7p (L65p). ; 


of the UK. A reorganisation 
charge at the fafl-year stage is 
expected to be below £3m, but 
the group said the resulting 
improvement in profitability 
would produce an early pay- 
back. 

Considerable progress had 
been in aypawfHtig the 

other businesses - such as spe- 
ciality tapes and filtration 
products - which increased 
operating profits by 50 per cent 
over the period. Tie nonpaper 


After four hard years, Scapa is 
at last seeing orders for new 
paper machines and some 
Increases in prices tor the roll- 
ers and fabrics which It sup- 
plies to papermakerB.. But the 
group stressed that the recent 
bounce in paper prices would 
not directly affect its profitabil- 
ity - not least because the 
long-term relationships which 

it has forged with the industry 
preclude making a quic k kfll - 
lng as soon as toe cycle turns. 
Although these figures were 
depressed by several one-off 
factors, the prospect Is there- 



fore of steady rather than ^jav 
tacolar profits growth. JttClor: 
this reason that Scapa waste to 
ptougfeits into: jess capt- 

taJAhtenszse areas aadti as-epe- 


reg&ridiag - - the ' ■ £5m 
restructuring charge, . the 
shares - down £»p yesterday at 
200%p -r are trading on a pro- 
spective market average multi- 
ple of 14.4, winch seems Jair. 


Recovery continues at Regalian 


By Shiran London 


Regalian Properties, which specialises in 
converting office and industrial buildings 
into apartments, said yesterday that it had 
sold two developments to east Asian inves- 
tors during the last six months and was 
close to concluding negotiations on a 
third. 

In the half year to September 30, Regal- 
ian made pre-tax profits of £799,000 against 
losses of £869,000. 

Turnover fell from £50. lm to £l&3m as 
the company neared the end of its disposal 
programme of mass-market homes. Mr 
Bob Perdeaux. finance director, said the 
remaining portfolio would be sold by toe 


prvi of the Bnanrial year. 

Net debt has been reduced from £L3m to 
£2m as a result of disposals and interest 
charges feD from gUm to £168#J0 In the 
period. Administration expenses were 
reduced to £2 .25m (£L5m). Earnings per 
share were 0.68p against losses of 0.74p. 

Proceeds on the sale of the two develop- 
ments in London's West End were not 
included in yesterday’s figures because 
Regalian does not recognise profit of dis- 
posals rmtii completion. 

Mr David Goldstone, riiairman [ said riwt 
the interest of east Aslan buyers in indi- 
vidual properties and whole developments 
was encouraging. "The buoyancy of the 
central London marke t and the very keen 


interest on the part of-international pur- 
chasers bodes well for the future,” he said. 

Regalian has two joint venture develop- 
ments with the Sincere Group of Hong 

Ktmg f fnrfrating the rainveraimi nf a fanw 

office block os the soufli bank of the River 
Thames, apposite toe Tate Gafleay/lnto 
apartments, ft is also. converting: ware- 
houses in Camden Town, and Docklands 
and a former bospital in Oxfordshire. - - 

Mr Goldstane saidthe compan y still had 
unused credit lines 'and. its relationships 
with joint venture partners would allow it 
to undertake substantial projects. Earlier 
ftk year Regalian.' made an unsuccessful, 
bid of almost £2Qm tor the former Rriyal 
Brampton Hospital in central London. * 


Regent shares rise 
on upbeat statement 

Shares in Regent Inns , the 
public houses and hotels 
group, rase 15p to 291p yester- 
day following an upbeat state- 
ment from the chairman at the 
annual meeting. 

Mr Patrick Moorsom said 
sales in the first 19 weeks of 
the present year were ahead 43 
per cent, including acquisi- 
tions. On a like for like 
basis, there was a 9 per cent 
increase. 


Carr’s Milling expands 31% 


Improvements in all areas of 
its business helped Carr's Mill- 
ing Industries to raise pre-tax 
profits by 31 per cad in the 
year to Sep temb er 30. 

On sales from continuing 
businesses of £7&Sm (£57-5m) 
pretax profit came to £L55m. 
against a restated ci.iflm. 

Profit from continuing 
operations increased 63 per 
cent to £&27m (£2m), but dis- 


continued activities carried a 
loss of £L13m (£160,000). 

An exceptional charge of. 
£798,000 (£321,000) was related 
to the disposal of Robertson 
(Bakers). 

Carr also said yesterday that 
Mr Brian Armstrong, who 
resigned as group manag in g 
director in June, had received 
compensation of £ 1 AM W 0 .. 

On a segmental basis, agri- 


culture increased profit by .68 
per cent to £2.06sin on: sales of 
£58.5m (£42m) and milling - 
made £L06m (£522,000) an sales . 
Of £LLTrn (£LL3rn). En gineeri ng 
and other activities coutrih- 
Uted £409,000 (£353jWX--' ' r- 
The final dividend of 5p 
makes 6.2p (43p) for the year. 
Basic earnings per share were 
14p (10.6p) and on q pntfmimg 
operations 244p (12p).’ 


THU AMMCWICXIUHT APTUAS M * M*nU Of RECORD ONU 


JAMES PURDEY & SONS LTD. 


has been acquired by 


This advertisement is issued in compliance with toe requirements of The Stock Exchange of the 
United Kingdom and the Republic of Ireland Limited (the “London Stock Exchange”). It does not 
constitute an offer or invitation to the public to subscribe for or purchase any shares. Application has 
been made to the London Stock Exchange for all die ordinary shares of lOp each of Wellington 
Underwriting pic, issued and to be issued pursuant to die Placing, to be admitted to the Official list 

It is expected that listing will become effective ami dealings in toe ordinary shares will commence on 

24th November 1994. 


V E N D 6 M E 


Luxury Grout tlc 


WELLINGTON UNDERWRITING PLC 

(Incorporated in England and Wales under the Companies Act 1985 Registered No. 2966836) 






Placing of 17,250,000 ordinary shares of lOp each 
(of which 124*74060 win be placed in the UK and 4^75^40 wffl be placed overseas) 

at 

lOOp per share 


The Private Bank & Trust Company Limited 
acred as financial adviser to the shareholders 
of James Purdey Sc Sons Ltd. 


sponsored by 

Noble & Company Limited 


THE PRIVATE BANK Be TRUST COMPANY LIMITED 


pk * ampaoy which wUI invest in die Lloyd’s Insurance 

market through syndicates managed by Wellington Underwriting Agencies Limited. 

dE?* Partkafere relating to Wellington Underwriting pic and die Pisan* of the 

oidmary s hares w ill be available during normal business bourn on any day (Saturdays and nublic 
holidays excepted) from the date of this notice up to and including 6th December 1994. ^ 

fitwa:- 


12 Hn Hill Loud mi VIX I EE 
Tdcphaan 071-4« I HU / 071 -17] WJO Fusunilc 07I-1-3 J7 Hi 


Member a! 1MKO 


Noble & Company 
Limited 

5 Daniaway Street 
Edinburgh 
EH3 6DW 


Gndg. Middleton & Co and 
Limited 

66 Wilson Street 

London 

EC2A2BL 




Extract from the Annual Report and 
Accounts presented at the 98th 
Annual General Meeting held In 
Manchester on 17th November 1994 


Year ended 30th June 

1994 

1993 


£000 

£000 

Profit before Taxation 

5,839 

4,121 

Taxation 

(1.845) 

(1.181) 

Profit after Taxation 

3,994 

2^940 

Earnings per share 

5J3fip 

4.34p 

Net dividends per share 3.1 5p 

2.80p 

Net assets per share 

107.37p 

101. 20p 


TRAFFORD PARK 
ESTATES PLC 


Nell House, Twining Road, 
Ashburton, Trafford Park. 
Manchester M17 1AT. 


Wellington Underwriting pk: 

2 Minster Court 

Mincing Lane 

London 

EC3R7FB 


Copies of the Listing Particulars are also available during ^ ^ normal hMinmh» m e - 

from the Company Announcements Office, the lS S lock ^ 

Tower. Opel Court entrance, off Bartholomew Lane. London 

and. including 23 November 1994. 1X010 date of this, notice up to 

1 8 to November 1994 


ECO 20.000.000 TRANcSe B1 1 5^ % 

israfsatsw* ? ec m 4.000.000. 

October 31, 1994, in LuxembouiST satisfied by a drawing on 


These 4.000 bonds of ECU 1.000 will ho 

December 20 , 19^4, coupon due on December 20 1995 att^rh«H 

the modalities of payment on the bonds. 06 ^ u,ia95 attached, according to 

Serial numbers of the Bonds to be redeemed are set farrh 

from one number to another number, both incUreive r™ 1 be,ow on group 

4890 - 8889 

Kn O p&S?Sr d th?J!^ e r ^ dem ^ 0n on De “^ber 20. in, have not ye, 
12171 - 12174 13781 - 13787 

ffp'a b ?oX1Sr emp6on on ^ ecem ber 20, 1992 have no, yet 


921 - 922 
1824 - 1825 
2398-2399 
4506 - 4516 


1388-1390 
1987 - 2010 
2678 - 2680 
4664 - 4670 


1625-1644 
3190' 2208 


Traded Options Software 


1737-1739 
2374 - 2375 
3211 - 3216 


1NDEXIA 


The following bonds called for redemption on Decemhpr an ion, . 

been presented for the payment : eesmber 20, 1993 have not yet 


( 0445 ) 3730-5 


( 0442 ) 576334 


14Z 55 ' 142 57 14405 - 14414 

15156-15167 15200-15204 15248 - 1K56 

Amount outstanding after December 20, 1994 -. ECU 4.000.000 


14254-14257 

15200-15204 


CITY j 


15105-15107 


T 1 * 0 Mart* Lodon n ipK 0 d beKng - FtaancU Sporti Fofa 
Indhn md m tecoasa appBcadso (bna all 071 M3 M67. 

Aceomas an nomady opcacd wiitaB 72 boras 
S« our upHo^Uicprioei torn M9pm on TWeteW p«fla SQ3 



TUEPRINaP^ RAVING AG6NT 

SOC1ETE GENERALE GROUP 
15, Avenue Emile Reuter 
LUXEMBOURG 


*.K- m . • 


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1:, ** " 


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jisposal If 
fading lea 


^’ANdvi 

RE £<Ji, 

Repc 








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mds 31% 


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FINANCIAL TIMES 


FRIDAY NOVEMBER 18 1994 


25 


COMPANY NEWS: UK 


Meyer’s warning on 
margins hits shares 


By Christopher Price 

in Meyer fell n per cent 

yKterdnyastheb^^^t 

ucts group accompanied its 

ffa* «S. r™ 

mg that pressure on margins 
sl owdown in salesS*^ 
shadow over current trading 
Pre-tax profits for the six 
months to the end of Septem- 
ber were 44 per cent ahead at 
127.4m (£i9m). helped by a 
ElOm contribution from prop- 
erty disposals. and in line with 
market expectations. However 
the 4.2p maintained dividend 
disappointed analysts, some of 
whom were forecasting a io 
per cent increase. 

Mr John Dobby. chief execu- 
tive. said that the dividend 
payment was an attempt to 
redress the balance between 
“* mterim and the final, 
which had traditionally split 
one third to two thirds. "The 
dividend payment is not a 
reflection of our performance." 

Group turnover rose n per 
cent to £669.3m (£600.8m). 
Earnings per share advanced 
27 per cent to li-lp (n.3p). The 
shares closed down 44p at 359p. 

Operating profits from the 
Jewson division rose 27 per 
cent to £13.lm (£l0.3m) on 
sales 14 per cent ahead at 


Meyer International 

Srtare price (penes) 

600 - - 



1892 S3 
Source. FT Gfapiwe 


94 


£245.4m (£215. tm). Bulk sales 
were buoyant, although these 
were subject to lower margins. 
The repairs, maintenance and 
improvement market, which 
has traditionally provided the 
basis for Jewson’s earnings 
growth, was subdued. 

Profits from forest products 
rose 13 per cent to £9.7m 
f£8.6m) on sales 15 per cent 
ahead at £2l9m (£l90,4m). 
There was also an improved 
contribution from the Dutch 
division of £7.6m (£6.2m). while 
the German business contrib- 
uted £500.0000 (£300.000). 

Since September, the group 
had experienced a slowdown In 


sales growth brought about 
chiefly by the rise in interest 
rates and the consequent effect 
on the housing market, accord- 
ing to Mr Dobby. There were 
also raw materials pricing 
pressures which were being 
passed on but increasingly fac- 
ing resistance from the belea- 
guered building trade. He 
added that given the current 
difficult trading environment, 
the group would concentrate 

its efforts on improving “opera- 
tional efficiencies." 

• COMMENT 

Meyer's management did little 
yesterday to discourage the 
downbeat assessment of the 
group's prospects. Pricing pres- 
sures at Jewson. the group's 
biggest earner, look likely to 
continue as it fights to main- 
tain market share by increas- 
ing its lower margin buLk 
sales. Profits for 1995-96 are 
forecast to fall in a range 
between £60m and fS5zn, giving 
earnings of some 33.5p and a p / 
e of 10.5 times. This compares 
poorly with rivals Travis Per- 
kins 01.8 times) and Wolseley 
(lfL2 times) - a position Meyer 
has traditionally found itself 
in. Worth a hold, but the sector 
as a whole is likely to remain 
in the doldrums. 


Disposal losses and poor UK 
trading leave ACT at £lm 


By Alan Cam 

Poor trading in the UK 
together with a loss of £8.8m 
on the disposal of discontinued 
activities left ACT Group's 
interim pre-tax profits at Llm, 
compared with £ll.5m. 

The City had, however, 
anticipated the decline after a 
profits warning in June. Strong 
underlying growth, principally 
in revenues and profits outside 
the UK, helped push the share 
price of the Birmingham-based 
computing services company 
up 5p to 103p. 

Operating profits for the six 
months to September 30 were 
£9.89m (£11. 5m), including 
losses of £497,000 (£1.99m prof- 
its) from discontinued activi- 
ties'. Sales were £106.3m 


(£107.6m) of which ESfl.lm 
(£43. lm) related to discontin- 
ued businesses. 

After tax of £3J55m (£2.B8m) 
losses per share were 1.41p, 
compared with earnings of 
5J24p. Adjusting for the excep- 
tional items earnings ramp out 
at 4.Q5p (4.4lp). An unchanged 
interim dividend of l.?5p a 
share will be paid. 

The group had net cash of 
£8.87m at the end of the period, 
only slightly down on the 
£9.05m of 12 months previ- 
ously. It intends to use some of 
these resources to buy back up 
to 10 per cent of its stock at 
prices which will enhance 
earnings. 

ACT has been increasingly 
focusing on its chosen role as a 
supplier of financial services 


software. Some 62 per cent of 
sales are now made abroad. In 
the first half, overseas profits 
rose to £10.3m from £5.95m, 
while UK profits fell to £960,000 

(£4.6m). 

Mr Michael Hart, manag in g 
director, said the UK tell was 
the result of an extra £l-5m 
spent on research and develop- 
ment, a sharp decline in the 
market for several of the 
group's products including the 
Quasar portfolio management 
system and slow equities mar- 
kets which had hit revenues at 
NMW. the stock processing 
bureau. 

Mr Roger Foster, chairman, 
said the group had shown resil- 
ience. He added that trading 
had improved and he antici- 
pated a sound second half. 


Tempers 
flare at 
Butte’s 
AGM 

By Peggy Holflnger 

Tempers flared and Insults 
were traded yesterday as 
shareholders sat through a 
prolonged annual general 
meeting of Butte Mining, 
whose main activity is prose- 
cuting US lawsuits. 

The insults were not 
directed at the board, how- 
ever, which is seeking dam- 
ages of up to $Ibn (£fl00m) 
from former managers and 
promoters. 

Shareholders’ wTath was 
directed at the representative 
of a fellow investor who 
pressed a series of questions 
over the lawsuit, directors' 
remuneration from the litiga- 
tion and Bntte's accounting 
practices. Butte has been 
forced to amend its accounts 
by the Financial Reporting 
Review Panel. 

After more than an hour of 
detailed questioning, one 
shareholder stalked out. 
directing a clearly enunciated 
“prat" at the persistent ques- 
tioner. 

It became clear that most of 
the questions originated from 
shareholders being sued in the 
lawsuit, or from those close to 
defendants. 

They pointed out that Mr 
David Lloyd-Jacob, chairman, 
stood to gain up to £10m from 
the lawsuit. Mr Lloyd-Jacob 
said he had been awarded the 
litigation remuneration at a 
board meeting. Shareholders 
were welcome to examine the 
minutes to ensure it had been 
properly awarded. 

The chairman said the two- 
year-old lawsuit had taken 
substantial turns for the better 
in the past year. However, dis- 
senting shareholders pointed 
out that the judge had not yet 
ruled on whether the case 
could even be heard in the US. 
Meanwhile, Butte's flotation is 
still the focus of a Serious 
Fraud Office investigation. 

All the resolutions were 
passed. However, one share- 
holder objected to granting 
share options to non-executive 
directors. Mr Lloyd-Jacob said 
that, given the company’s 
inability to proride the usual 
incentives to di r ectors, he did 
not see there was a problem 
with the option scheme. 


New chairman in place at Lucas 


By Paul Cheeseright, Midlands 
Correspondent 

The final piece in the new 
corporate jigsaw of Lucas 
Industries, the automotive and 
aerospace components and 
systems manufacturer, slotted 
into place yesterday when Sir 
Brian Pearse replaced Sir 
Anthony Gill as chairman. 

Sir Brian wfl] oversee a flat- 
tened management structure, 
with six business managing 
directors. He will report to Mr 
George Simpson, the chief 
executive. 

This system, introduced by 
Mr Simpson since his arrival at 
Lucas lost April, replaces the 
previous portfolio management 
structure built up under Sir 
Anthony. 

The switch in chairmen took 
place, as scheduled, after the 
annual meeting in Birming- 
ham. "It is the end of a specific 
and determined effort to get 
the top team reformed with 
some continuity in it," said Sir 
Anthony, 

This is a reference to the 
decision taken three years ago, 
largdy to meet the recommen- 



Sir Anthony Gill: top team 
reformed with continuity 

dations of the Cadbury com- 
mittee, to split the roles of 
chairman and chief execu tive, 
filled by Sir Anthony since 
1987. That it has taken so 
long to achieve the change 
reflects the confusion caused 
by the selection and then dese- 
lection of Mr Anthony 


Sir Brian Pearse: looking after 
corporate governance 

Edwards as Sir Anthony's heir 
apparent. 

The main focus of power in 
Lucas now is In the offices of 
Mr Simpson, fresh from the 
renaissance of Rover, the car 
maker, and Mr John Grant, 
who became finance director in 
1992 after Mr David Hankin- 


sotu his predecessor, tell out 
with the rest of the board. 

Sir Brian, a banka 1 by back- 
ground, sees his job as non-ex- 
ecutive chairman as looking 
after the corporate governance 
of Lucas, enabling “George 
Simpson to think through the 
strategy and to act as his 
sounding board." 

He stressed that he is a 
"team player” and promised T 
will get involved wherever I 
think I can add value to 
George, but I certainly will not 
get in his way." 

He becomes chairman as 
Lucas, exploiting the strength 
of the automotive market but 
rationalising in the face of a 
sluggish aerospace market, 
heads towards 1994-95 pre-tax 
profits of probably more than 
£120m. This follows a 199354 
loss of £129 .7m, caused by pro- 
visions for restructuring. 

While Sir Brian arrives with 

10.000 shares, Sir Anthony 
retires as the largest private 
individual shareholder with 

700.000 shares, 983,851 options 
and 300.000 warrants. 

Lucas shares yesterday 
closed up 4p at 21 ip. 


Portsmouth & Sunderland 
increases 44% to £5.4m 


Portsmouth & Sunderland 
Newspapers, the publishing 
and retail group, increased pre- 
tax profits by 44 per cent from 
£3.75m to £5. 39m in the 26 
weeks to October l. 

Turnover grew by 11 per cent 
to £60 9m (£54. 9m). While the 
publishing side rose by just 6 
per cent to £33.3m (£31.3m) 
retailing was up 17 per cent at 
£27.6 m (£23 -5m). 

However, Mr Charles Brims, 
chief executive, reiterated that 
the next two years would be 
difficult and that profit growth 


would slow. “We are going 
through a transition stage." he 
said. 

A contract to print the north- 
ern editions of the Daily Mail 
and Mail on Sunday, which 
contributed one-third of turn- 
over in the printing business 
last year, ended in October. A 
contract to print the Indepen- 
dent expires in February 1996. 
Although the group was pursu- 
ing replacement contracts, 
none were imminent, Mr Brims 
said. 

He added that the group was 


building up its retail side. So 
ter this financial year it had 
opened five more One Stop 
convenience stores and 
intended to open another 15. 

The rest of the profit 
increase came from cost 
savings in the publishing 
business. The 7 per cent 
increase in advertising revenue 
was “fairly ordinary", he said. 

Earnings per share rose to 
28p (20.2p) and the interim divi- 
dend is lifted to 3.51p (3.i2p). 

The shares closed up 44p at 
650p. 


Hardy Oil & Gas in the red 


Hard; Oil & Gas, the independent exploration 
and production company, announced net losses 
of £634,000 for the half year of September 30 
compared with profits of £3. 83m. 

Although oil and gas production rose by 6 per 
cent, turnover tell to £26.lm (£29 .5m) and operat- 
ing profits nearly halved to £3.35m (£6.04m). 

Expenses and interest charges took £3.76m 
(£3 91m). 

Mr Douglas Baker, the chairman, said the 


change in the tax position from a £l.69m credit 
to a £225,000 charge had resulted from the full 
utilisation of past petroleum revenue tax pay- 
ments and changes in legislation. 

Losses per share were 0.6p (3-8p earnings). 

Looking ahead, Mr Baker said there was a 
continuing programme of new fields coming on 
stream and that despite the problems created by 
weak prices, the company had excellent assets 
and was well finannari- 


Millwall loss 
reduced 
to £0.12m 

Millwall Holdings, the 
USM-quoted football club cur- 
rently struggling near the bot- 
tom of the Endsleigh First 
Division, yesterday reported a 
sharp fall in pre-tax losses 
from a restated £1.1 3m to 
£119,000 in the year to May 31. 

The result included an 
increased surplus of £1.73m 
(£1.09m) on transfer fees, and 
a £580.000 profit on the dis- 
posal of a fixed asset - last 
year there was a £300,000 loss 
on a fixed asset investment 
Since the year end, players' 
registrations to the value of 
£2J>3u have been sold. 

Sales for the year reached 
£5.61m (£2.67m). Net interest 
charge was £375,000 (£115,000) 
and losses per share on a 
FRS 3 basis were 0.04p (0.7p). 

Mr Reg Burr, chairman, said 
that “while we did not mate 
the fall progress we had antic- 
mated in the time scale, we 
are encouraged by this year's 
results and by the exciting and 
potential financially reward- 
ing opportunities which are 
becoming available to us.* 



RIUNIONE ADRIAHCA DI SICUKTA 

Established in Trieste in 1838 - Registered O ffice: Cso Italia 23, 

20122 Milan - TbL No. (02) 72161 - TUac 320066 RAS DG I 

NOTICE TO THE HOLDERS OF 
"RAS SAVINGS SHARE WARRANTS 1993/1995" 

The holders of savings share warrants are hereby advised that, in compliance with the 
resolution adopted by the Ras Board of Directors on October 25th 1994, beginning November 
17th 1994 ana ending December 16th 1994, a capital increase from Lit. 272,675/726,000 up 


17th 1994 and ending December xt»tn -UW4, a capital increase rrom ul z/z.o/o, coa 
until a maximum of Lit. 596,749,995,000 will take place through tile option offer off 

- no. 77,028,716 Ras ordinary shares, dividend L1.94, at the price of lit 12,000 per share at 
the following ratio: 2 new ordinary shares for every 5 ordinary shares held. One "Ras ordinary 
share Warrant 1994/1997", bearing the characteristics specified herein below, will be linked 
to the two new ordinary shares; 

- n m aximu m rf rm. 42j32LR82 Ras bearer savings shares, dividend LL94. at the mice of Lit 
7,000 per share at tire following ratio: 2 new savings shares fix- every 5 savings shares held. 
One "Ras savings share Warrant 1994/1997". bearing the characteristics specified herein 
below will be lix&ed to the two new savings shares; 

- n. 924,344*592 "Mediobanca 4% 1994/1997" brads, at par, at the following ratio: 2 Lit 12,000 
par value brad certificates for every 5 ordinary shares held. Two "Ras ordinary share 
Warrants 1094/1997" bearing the chararteristics specified herein below will bo finked to the 
two bond certificates; 

. a maximum of no. 296^48^74 "Mediobanca 4% 1994/1997" bonds, at par, at the following 
re rip- SJJtL 7, OOP par value band certificates fir every 5 saving shares held. Two "Ras savings 
share Warrants 1994/1997" bearing the (foaracteristics specified herein below will be linked 
to the two bond certificates. 

The holders of the "Ras ordinary share Warrants 1994/1997" will be entitled to underwrite 
one new Ras ordinary share, regular dividend, at the price of Lit. 12,000 up until December 
31st 1997. The holders of the "Ras saving share Warrants 1994/1997" mil be entitled to 
underwrite one new Ras savings share, regular dividend, at the price of Lit. 7,000 up until 
December 31st 1997. 

With reference to the above, the holders of the "Ras savings shares Warrants 1993/1995* are 
to be reminded that, beginning November 17th 1994, the exercise of the Warranto will give 
the right to underwrite one Ras savings share, dividend 1.1.94, with coupon 18, for every two 
Warrants. 

As established in the Warrants regulations, the underwriting price will be Lit 11,000 minus 
the average write-off price which will be publicized by the Italian Stock Exchange Board on 
December 1st 1994. 

Ras will promptly notify the public of the new underwriting price as herein before defined. 
In the period inclusive from November 17th up to the date of the definition cf the new 
underwriting price the Warranto may be exercised at the price of Lit. 11,000 per share. Ras 
will promptly reimburse underwriters the underwriting price difference through the 
authorised^ 


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FINANCIAL TIMES 
Xrr ifcwn 

■■ B U S V^TFrtrjemunm'.nt^n V«1 :i 


£100,000,000 

(Incorporated Irt England undvr the Building Societies Act 1086} 

Floating Rate Notes due February 1996 

In accordance with the provisions of the Notes, notice is hereby 
given thal for the Interest Period from November 16, 1994 to 
February 16. 1996 the Notes will carry an Interest Rate ol 6.23333% 
per annum. The (merest payable on the relevant interest payment 
date. February 16, 1995 will be £157.11 per £10,000 Note and 
£1.571.14 per £100,000 Note. 

By: The Chase Manhattan Bank, N.A. CHASE 


London, Agent Bank 
November 18.1994 






The Governor and Company of the 

BANK OF SCOTLAND 

iCituhiuinl by An uj ihr Sums Pariuuomt in /flv.f* 

U.$.$250,000,000 

Undated Floating Rate Primary Capital Notes 

Notice is hereby given mat the Rota of Interest has been fixed at 
6 375% p.a. and that the interest payable on the relevant Interest 
Pbymenf Date May t8. 1 995 against Coupon No. 1 9 in rasped of 
U.5. Si 0,000 nominal of the Notes will be U.S.S320.52 and in 
respect or U.5.S250.000 nominal of the Notes wiH be U.S.58,01 3.02 


November 18. 1994, London 

By Citibank, NA (Issuer Services), Agent Bank 


CITIBANK O 


Oil, 



Sovereign (Forex) Dd. 

24hr Foreign Exchange 

M a r gi n trading facility 
Co mp et Wre Prices 
Daily Fox Service 

fefc 071-93 1 VIM 
fax: 071-931 7114 
42d BnUnsfacm Mote Bead 
London 5WIW OM 


Borden* Du Moulin • Howairi • Gervais 

Canadian Barristers & Solicitors 
Toronto Vancouver Calgary Montreal London 

and (he 

Canadian High Commission, London 

are hosting a Seminar an Competition Policy and Investment in Canada on 
Monday, 28 November. 1994 in London 

Guest speakers irtdude Ceoige Addy, Director of lnvt*dgabon 
and Research, Bureau of Competition. Industry Canada 
Peter Zfaikin, Planning and Development Director. BICC pic 
Cfrile Latoor, Counsellor (CorunerciaJ/EcoriorriJC). Canadian 
High Commission 

Kgotmtidfl information, con (act 


Alfred Page 

Borden DuMauEn Howard Genas 
3/4 Royal Endungr BulUmss 
London EC3V 3NL 


Tcl:«rjv39aiw 
Intenwt a pai^OUtden-C'-'m 



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C£mqt Soownana ad Uonaaon Senum LanaM 


£ 200 , 000.000 

MFC Finance No. 1 PLC 

Mortgage Backed Floating Rat» Motes Due October 2023 

In accordance with the Terms and Conditions of the Notes, 
notice is hereby given that the new interest rates and periods in 
respect of [he subject Notes ore as (ol'ows:- 

hftintd tot Ui\ hvm tor tar. 

Snail MiMma-MUHawWi UK SmD Mi NwanMr-aSi DtMBte 19U 6. HR 

SmnB mncrwtanMDoxnUn W (IIS Sal e! K»Mwr«Hi-MCaea«tw HW EJ>» 

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By Citibank. NA [Issuer Sonncml 
AhHatrobr/ JR 199* Londcm 


CITIBANK* 


APPOINTMENTS ADVQTITSING 
jpponlo Jbc UK cdtaao 
twiy Wednesday A llwa&y 
nda itx laemamad edition nay FrVhy 
For Inrthc; bitmh&ijwi 
ptamcdL 
(iHdkjMSN 
071 873 JT?S 
Aodmr Sl m V fiuU am 
871 8734654 


RANK OF QUEENSLAND LOOTED 

MULTIPLE OPTION FACILITY 
AGREEMENT 
DATED SEPTEMBER 22, 1SW 
Id jcwrdauc will ibr provisions, of Ibc 
TranstenHe lr*»a CotBeMe tuned on Kovembe 
Id. l«l nobis b hereby {Sven doita die vu 
nBjatfc fancies pa»d 6«a Kovendiei 17, [V®t to 
May 17. 11V5, die CdtdcAr eany an Inured 

kay ijjb'C'T' per jrcum 

fltt EBdays Bank PLC, Hoog Kong 


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MICHAC6 

LAURIE 

Tel. Il7i 4V3 7Q50 
Fa*. i!7l 49v (CTn 

We anaqgc J> 4 in*up JoltMiLoaii to Value. 
Moat cotapefoive and flexible lenns for 
quality llKcoaiiuctaal prupen* St 
devefopaieiiu upwards of £(«. 
Owuart: Rktard tub GMax 

property] 

FINANCE 

UKCommntMl I 
Properly | 


FLEMING FLAGSHIP FUND 

Soditc iVlnvesrissenirTii & Capital Variable 
43. me dea SriHas. L-2S29 Howald, Grand- Dudti dc LmcnAowg 
R.C. Luxembo ur g B 8478 

NOTICE TO SHAREHOLDERS 

resolved « the Ainnial General Meeting of the Share h old ers held in Inx cm h uniR 
on 16 November 1994 (record daw) Lhat the following dividends should be paid: 


Fond 

Csmcniy 

Amount 

share 

Coupon 

number 

Payment 

dale 

FFF- Ffcnring Eaacni Opportunroea Fund 

IBD 

02208 

4 

3011.1994 

FFh- Fleminx European Fund 

USD 

01844 

•1 


FFF- FteminK Global Convertible Fund 

USD 

OL399 



FFF- Flemuut International Hood Fuad 

USD 

03232 

3 


FFF- Heminx Japanese Fund 

USD 

01796 

4 


FFF- Fleming U JC. Enterprise Fund 

GBP 

00202 

-ill- 



(•) non numbered coupon 

The shares wiU be quoted cx-dividcad as from 17 November 1994. 

Shareholders may elect to receive a dividend payment in which case payment win be 
made in the currency of ihe fund. Request for receipt of dividends must be made to foe 
Company or its Agnus m writing. 

Holden of bearer shares mua send their coupons to foe relevant hank and inform them 
where the amount of foe dividend is to tie paid: 

In Luxemhouitp - Kredictbanfc SA LHaemboqrgeoise 43. Boulevanl Royal. L ux emb ourg 

In Germany; - BerfinaHaodd^tadFBriilinwEbA.BockaibebiKrLaodsoAellXBmfcfini, 

to Belgium: - Basque Dewaay sa. Boulevard Anspach. 1, Bruxelles 

In Italy: • Banco CommcrciaJe Italians SpA, Corso di Porta Noova 7, Milan 

In Austria; - Oeatondah-ftgJwBdn In Alaiai g csd te c iafa . JubB-'texfier-Tto^.VAen 

November 1994 

THE BOARD OF DIRECTORS 


Notice of Early Redemption 

HMC MORTGAGE NOTES 6 PLC 

£140,000^)00 Class A 

and 

£7000000 Class B 
Mortgage Backed Floating Rate 
Notes due September 2030 

In accoidance with Condition 5(d)(1) ol the Class A Notes and Condition 6(c)(1) ot 
ihe Class B Nome. Notehotdere are hdraby natfflsduiar all outstanduip Notes w0it» 
redeemed in hit on the neat Imerasi payment date at December is. 1994. Payment 
ot the Prtnopai Amount Outstanding together with any interest due wH be made 
agaref the surrender of the Notes at any Paying Agent feted aetour. 

PRINCIPAL PAYING AGENT AND AGENT BANK 
The Chase Manhattan Bank, fLA. 

Woolgate House. Coleman Street, London EC2P 2HD 

PAYING AGENTS 

Banque Bruxelles Lambert SJL Chase Manhattan Bank 

24 Avenue Mamix, B-1050 Luxembourg SJL 

Brussels 5 Rue Ptaeds 

L-233H Luxembourg-Grund 


By: The Chase Manhattan Bar*, NJL 
London. PiindpalPbymg Agent 
and Agem Bank 

November IB. 1994 


o 


CHASE 


Notice of interest Rates 
To Uiw Hoiriera of 

The United Mexican States 

Collateralized Floating Bate Bonds Due 2019 

NOTICE IS HEREBY CHVEN that thn loumu rale* covering the loiareet period 
rrom November 17, i9M to May IV. 1096 are detailed bsieur 


Sariea Darignntlon 

DSD Ustount Bariea C 
CAN Dtaooum Scrfaa 

November 17, lOSK 


Rata 


BASWRARA. 
6.9792 flat. R A. 




Xoterwt 
P »ynMnt Date 

DSD3L88 ParOEDlflM May 17,1085 
CAN3TJ.09 Per CAN 1,000 May 17.1005 


CTHBAMS, M Agant 








, f * 


FINANCIAL TIMES FRIDAY NOVEMBER IS_19^ 


COMMODITIES AND AGRICULTURE 


EU and Greek officials to Scope seen for more sugar price gains 

A A. A. JCmM — — - J By Deborah Hargreaves picture to tighten further," China will be turning to the world production in 1994-1995 

fUPPf PA|f All TrolillS said Mr Neil Meader, analyst at international market for 1.4m will reach llL9m tonnes, 

UiVVl VF T WJL. Wl'lvi* World sugar prices could break Czarnikow. tonnes of its raw supplies which marks an increase of 


By Peter Marsh in London 
and Kerin Hope In Athens 

European Commission nfficfoig 
are to meet representatives of 
Che Greek agriculture ministry 
next week in an effort to 
resolve a long-running dispute 
over allegations of fraud in the 
Greek cotton industry. 

The Commission is trying to 
persuade Greece to repay up to 
Ecul20m (£94m) in respect of 
cash handed out under the 
ftimninn agriculture policy to 
cotton farmers for crops that 
Brussels believes may have 
never existed. 

An official from the Greek 
cotton board., the semi-indepen- 
dent organisation that oversees 
payments to termers, has com- 
mented: “Greece accepts that 
fraud occurred and will pay a 
fine but not as much as the 
Commission has asked. 
There'll be a bargaining pro- 
cess." 

At next week’s talks in 
Athens, the Commission offi- 
cials will discuss with the agri- 
culture ministry the question 
of fines for 21 owners of cotton 
gin« (processing plants) who 
are accused of colluding with 
growers to inflate the figures 
for cotton processed in 1991-92. 

As part of efforts by Brussels 
to crack down on fraud in the 
European Union's agriculture 


budget, an auditing team from 
the Commission is to visit gins 
and cotton growing areas in 
Greece every three months to 
check on cotton board proce- 
dures. 

It has been alleged that 
Greek cotton fanners inflated 
their production figures by up 
to 10 per cent in 1991-92, gain- 
ing up to Ecu50m in subsidies 
to which they were not enti- 
tled. 

The discussion over how 
much cash Greece should 
repay is linked to Commission 
efforts to settle disputes over 
the EU budget for 1991. Agri- 
cultural spending, which 
accounts for roughly half 
Animal EU spending of about 
Ecu70bn, encompasses easily 
the biggest area of reported EU 
frauds. 

Commission officials believe 
that Greece was lax in enforc- 
ing controls over cotton pay- 
ments early in the 1990s but 
that since then the position 
has improved. In particular, 
the Greek government intro- 
duced extra checks on pur- 
chases of processed cotton last 
month, when harvesting of this 
year’s cotton crop started. 

As a result of favourable 
weather in September and 
October, this year’s cotton har- 
vest is forecast to reach a 
record 1.2m tonnes, up from 


just under lm tonnes last year. 
• The Commission has 
started checks on possible mis- 
use of EU subsidies related in- 
payments for taking beef into 
storage to 1992. In that year, 
the Commission handed out 
EcuZ3bn to tenners who could 
not sell the meat convention- 
ally on account of a general 
surplus and health scares over 
bovine spongiform encephalo- 
pathy, or “mad cow disease". 

Commission officials believe 
that up to EculOQm of this cash 
may have been handed out 
wrongly, either because of lax 
checking procedures or fraud. 
They are planning to open di& 
missions with member govern- 
ments on this issue in the next 
few months. 

The inquiries will focus on 
Ireland, which received 
Ecu575m in beef payments in 
1992. Other countries whose 
farmers received large sums 
when beef was taken off the 
market in that year were 
France, which received 
Ecu550m; Germany fEcu480m); 
Britain (Ecu245m); and Italy 
lEcu230m). 

In recent years, the ElTs beef 
mountain, which reached 
395,000 tonnes, worth Eculbn. 
in September 1992, has come 
down virtually to nothing as 
market conditions have stabi- 
lised 


By Deborah Hargreaves 

World sugar prices could break 
through their recent 4-year 
highs if supply tightness con- 
tinues. in spite of recent price 
corrections, according to a 
review of the market by Czar- 
nikow. the London brokers. 

“The market has been 
expecting some sort of correc- 
tion so it's not surprising that 
prices have been easier over 
the last couple of days. But 
there is a fundamentally tight 
situation and scope for that 


picture to tighten further," 
said Mr Neil Meader, analyst at 
Czarnikow. 

Key consuming countries 
such as China. India and Rus- 
sia are likely to have to source 
much of their supply from the 
international market next year 
following shortfalls in their 
own production. Czarnikow 
has marked the Chinese crop 
down from 6.54m tonnes to 
6.3m tonnes this year with a 
further drop expected next 
year. 

Czarnikow believes that 


China will be turning to the 
international market for 1.4m 
tonnes of its raw supplies 
which win have an important 
influence on market behaviour 
next year. 

“By the third quarter next 
year, these consuming coun- 
tries will be facing a gap 
between the new crop and the 
old one," said Mr Meader. “If 
they all buy on a spot basis 
there will be a massive block 
of purchasing bitting mar- 
ket at the same time.” 

Czarnikow estimates that 


world production in 1994-1995 
will reach 111.9m tonnes, 
winch marks an increase of 
roughly 2m tonnes over, the 
previous season, but is not 
wwiig h to Tnafce up for a rise in 
consumption to 1155m tonnes 
nmrt year. For this reason, the 
broker believes there will be a 
drawdown from world .stocks 
of a 5m tonnes over the -coming . 
crop cycle. 

Hie. European Union sugar 
reform was unlikely to have 
any effect on the world market, 
Mr Meader said. 


Ecuadoreans spring banana surprise 


By Raymond CoGtt in Quito 

Contrary to widespread 
expectations, Ecuador - the 
world's largest exporter or 
bananas - has this year 
shipped more of the fruit than 
ever before. 

By the end of the first 10 
months, exports had already 
reached about 2.69m tonnes, 
exceeding the 1991 full -year 
record of 2.65m tonnes. For the 
year as a whole, the country is 
expected to break the 3m tonne 
mark. 

Though first -ha If exports 
already Indicated a recovery 
over last year's slump, the new 
figures come as a surprise, as 
EU restrictions on banana 
imports were expected to 


impact more heavily on Ecu- 
adorean sales. Yet Ecuadorean 
banana exports to the EU actu- 
ally rose by 35 per cent 
between January and October 
or 1994. 

Industry experts say that the 
EU restrictions even benefited 
Ecuadorean exporters. Follow- 
ing the July 1993 regulation, 
c omm ercial licences have been 
conceded to European import- 
ers and distributors who can 
now choose freely among sup- 
pliers of the tropical fruit 

Mr Jose Riofrio, head of mar- 
keting for bananas in the min- 
istry of agriculture, says Euro- 
pean importers chose 
Ecuadorean bananas because 
of their price advantage. While 
its Central American competi- 


tors sold bananas at $550 a 
box, Ecuador offered its prod- 
uct at S4L50. 

In addition, Ecuador’s Noboa 
Group has an enormous advan- 
tage over its competitors, 
because for years it has been 
well established in Europe 
with its own distributors in 
key markets of the continent. 
Consolidating its position as 
Ecuador’s leading banana 
exporter. Noboa now claims 
4L5 per cent of the country’s 
total market, with sales to the 
end of September reaching 
S2i7m. 

Ecuadorean bananas also 
penetrated the Spanish market, 
for the first time in decades, 
ironically entering into compe- 
tition with Spain’s former colo- 


nies, which were to benefit by 
EU Regulation 401 
However, aggressive market- 
ing strategies outside of the EU 
were the ; main reason for 
record sales this year. Coun- 
tries snob as Lithuania, Bul- 
garia, the Ukraine, Lebanon, 
Iraq, anil Syria bought consid- 
erable awwimta of Ecuadorean, 
bananas. Despite significant 
growth, Ecuador has not man- 
aged to improve tire efficiency 
of its production. A govern- 
ment programme offering $140 
a hectare for .conversion to 
other crops has eliminated 
some 15,000 ha. But according 
to Mr Riofrio. at least another 
15,000 ha need to be phased -out 
in order to boost toe country's 
low efficiency rate. 


‘Copper market collapse possible next year’ Lower coffee consumption forecast 


By Kenneth Goocfing, 

Mining Correspondent 

Copper prices will collapse at 
some point - possibly between 
June and August next year - 
when investors run out of con- 
fidence, and the tell might last 
as long as six months, suggests 
the Bloomsbury Minerals Eco- 
nomics consultancy group. 

“At that time it may seem to 
many that the boom is over," 
says Mr Peter Hollands in his 
latest Copper Briefing Service 
newsletter. 

He expects prices to peak in 
the second quarter of next 
year, as that quarter is usually 


COMMODITIES PRICES 


the strongest period for copper 
consumption. BME estimates 
that in the Aprfl-June period 
next year the western world 
copper supply deficit will rise 
to 75,000 tonnes from 35,000 
tonnes in the first three 
months. “Accordingly, we 
expect the second quarter of 
1996 to see high copper prices - 
$1.35 a pound [$2£75 a tonne] 
on average.” 

However, present price levels 
are already anticipating these 
promising fundamentals, says 
Mr Hollands. 

“Nevertheless, we expect a 
firm period through to around 
May 1995. but we expect to see 


investment funds selling 
heavily into this price peak." 

BME says it is hard to tell at 
present whether the copper 
boom will end in the second 
half of 1995. But in both 1995 
and 1996, production of refined 
copper will grow at twice the 
rate of consumption growth - 6 
to 8 per cent compared with 3 
to 4 per cent Consequently, in 
1996 there will be a supply sur- 
plus of about 106.000 tonnes. 

• Mr Jim Lennon, metals ana- 
lyst at Macquarie Equities, 
points out in his latest market 
commentary that the invest- 
ment funds which have been 
so influential in mptjife mar- 


kets in recent months moved 
into these markets partly in 
reaction to a collapse in the US 
bond market. Metals were 
viewed as a natural hedge 
against interest rate and infla- 
tion rises. 

He adds: "When US growth 
starts to slow and the bond 
market starts to rally, this 
could be a signal for the funds 
to switch out of metals - 
this seems unlikely before the 
second quarter of 1995." 

Copper Briefing Service : £630 or 
f 995 a year from BME. 
60 Worship Street, London 
EC2A2HD. UK 


Roaster Kraft Jacobs Suchard, 
part of the Philip Morris group, 
expects world demand for cof- 
fee to drop to 92m bags (60kg 
each) in 1995 from an esti- 
mated 95m this year as Higher 
roasted coffee prices curtail 
consumption in both eastern 
and western Europe, reports 
Reuters from Paris. 

"Eastern Europeans will suf- 
fer mainly in 1995 from the 
impact of current roasted cof- 
fee price hikes," Mr Roland 
Monica, general manager for 
the group’s beverage division, 
told a news conference here. 

Lower world demand should 
in turn allow for some rebalan- 


cing of the market and put 
pressure on prices, he said. 

Mr Monica said the group 
hoped prices could ease by the 
end of 1995. But he suggested 
that green coffee prices, which 
rose quickly after frost then 
drought hit the Brazilian crop, 
were unlikely to r et ur n to the 
low levels seen beforehand. 

“Coffee prices cannot return 
to 5860 cents a pound . . . Cof- 
fee producing countries most 
have decent living conditions.” 
he said. Only “decent" prices 
would encourage planters to 
invest, he «HHad_ 

Kraft Jacobs Suchard pre- 
dicts that roasted coffee con- 


sumption in Europe could 
decline 2.7 per cent in 1994 to 
1-fflfim tonnes It expects Ger- 
man consumption to tell 4 per 
cent but stabilise in . 1995 
because Ge rman roasters were, 
prompt in passing on green 
coffee price rises to customers. 

But French consumption is 
expected to fall 6 per cent next 
year after easing by 0.5 per 
cent in 1994 because French 
roasters delayed most of their 
price rises rmHl the end of the 
year. 

Consumption is seen drop- 
ping 3 J 3 per in Poland and 
16.4 per cent in the former 
Czechoslovakia tins year. 


PNG gold 
partners . 
aim to 
‘optimise!’' 
production 

By N8dd Tailin Sydney 

The joint venture partners in 
Porgera, the large gold mine 
in Papua New Guinea’* Eng* 
province, have agreed to go 
-ahead with, as expansion -of 

associated processing facul- 
ties, in an effort to “optimise* : 
gold production and keep pro- 
duction costs as low as possi- 

ble. ;• . 'FJ‘ 

The expansion wfll cost 

about: 90m Mm slightly 
more than . AgKfflm at; the cur- 
rent exchange, rate 1 -"-an'd 
should be completed by the 
first' quarter of 1996.: 

The 'expansion Involves 
increasing the project’s mill- 
lng capacity, providing an 
increased oxygen supply for 
the antoet&ves, adding process 
water 'storage' capacity at 
Waile Creek dam, and increas- 
ing power generation capabili- 
ties. - ..'V • . 

Thejoint venture partners f 
Placer Pacific, Renisoa Gold- 
fields, Highlands . Gold and the > 
PNG gover nm ent - said flint 
the work should maintain 
Porgera’s cash production 
costs at under US$200 a troy 
ounce.' This, in tan£ -should ' 
allow the mine to .process 
more lower grade ore later in 
Its fife. : : • ■ 

.■There is also Che possibility 
of further - underground' 
resources being identified tint 
can be economicaHy 
exploited,” die partners saM 
fids week: 

“Particularly encouraging is . 
the potential to mine Hi gher 
grade narrow veins othdnend- 
i sation, both inside 'and : out- 
side th e pit shell, which are 
not c ur re n t l y considered' part 
of the reserve. 1 * : 

Porgera is one of the world’s 
largest gold-mines. Its produc- 
tion has dipped recently, hut 
in the last finanrial year- gold 
production still a mo jnhte d to 
1.17m ounces, down ~70,0Q0 
ounces on the previbus 12 
months. ■ . *- * 




! . - r ■ . . -- 

fa;- > . - 


-TV 5 .- -■ 


i/'. - 




BASE METALS 

LONDON METAL EXCHANGE 


Ctose 
Previous 
HjjMow 
AM Official 
Kerb dan 
Open JnL 


■ ALmffffiJM ALLOY (S par tonne) 

Close 1B55-60 

Previous 1040-60 

HflMow 

AM Official 1851-5 

Kerb dose 

Open Int 2.854 

TaM duty twnover 555 

■ LEAD {$ per tonne) 


Precious Metals continued 

■ aOLD CQMEX (100 Troy QZ-I S/troy cz.) 


GRAINS AND OIL SEEDS 

■ WHEAT LCE (E per tome} 


SOFTS 

■ COCOA ICE (EAonneJ 


triad Matri Tradn^ 

PURTTY S per tanrrei 


Sril 

Price 

Do fs 
ebaoge 


Opn 

In U U 


SOB 

ftrire 

Oafs 

dragt 

High Lon 

Opm 

tat 

M 


Srit 

Price i 

Doyte 

Ebaga 

** 

Opaa 

Lav tat 

M 


CM 

3 mttre 

Mo* 

3952 

-06 

- 

1 

Hta 

1D425 

-0.76 

10560 10460 

261 

60 

Doe 

9*8 

-4 

952 

948 18697 

512 

Dae 

Dae 

3856 

-€6 

387.7 

3856 68,759 21670 

Jm 

10465 

-0.40 

10550 10560 

2620 

103 

Mr 

m 

-2 

977 

972 43681 

874 

Mi 

1921^25 

1932-3 

Jon 

3576 

-06 

- 

- 

Mr 

10665 

-140 

10760 10760 

1«834 

41 

Ml 

384 

-1 

987 

982 14697 

187 

ftpr 

1S08£-9£ 

1024-5 

M 

389.7 

-06 

3913 

3896 28,808 2.461 

Mr 

109.15 

-065 

10960 109.15 

114 

36 

Jri 

996 

-1 

898 

994 5795 

17 

JM 

1926/1925 

194871924 

ftw 

393.4 

-06 

3946 

393.7 10609 832 

Jri 

11065 

-030 

1*1-20 11120 

58 

5 

Sep 

1009 

-1 

1011 

1008 126K 

83 


1324-6 

1934-6 

1847-8 

Jta 

TaM 

3973 

-08 

390.6 

3972 10.711 1678 
182678 276H 

S«P 

Total 

9M5 

-045 

94.50 9460 

872 

WBB 

5 

272 

Doe 

Total 

1024 

-1 

1025 

1025 9684 75 

112677 16» 

Oct 

Total 

246.898 

69.060 


■ PLATV4UM NYMEX (5Q Troy ati Sflroy cej 

■ WHEAT C8T (5.00CKxj min; oant&TBOb buriwfl 

■ COCOA CSCE (10 tarra; Stemea) 


■ U 


MEAT AND LIVESTOCK 

■ LIVE CATTLE CME ftpOOCfca; oanErthaj 

Se« tor* ten 

pries donga K&i ton M W 

DM 69.350 -0025 70175 89.775 27,653 6X17 

mi earns + 0.150 69.175 easso 20395 aea 

Mgr aassa +0*25 asms ea«5 imw 1 jxs 

Jm 65625 +0250 65J575 0-400 5,403 429 

Jug 6X950 +0.150 64.(00 63875 1,727 301 

Od 64900 -10200 64400 64680 S25 34 

Total 78207 tangs 

■ UVE HOQ8 CME (40,000939; centaftbs) 


1885-90 

187CV6 

190071890 

1885-95 

1885-900 


Jta 

4151 

-53 

4150 

4150 18644 

1619 

DOC 

37572 

+1/4 

376/0 

372/4 22632 15373 

DM 

1280 

+9 

1285 

1270 

1657 

410 

DOC 

32650 +5325 32600 32.125 

14393 

5615 

ftw 

4206 

-03 

4226 

4216 7678 

112 

Mr 

386/2 

+1ft> 

387/4 

384ft) 31.774 

10664 

Bar 

1324 

+9 

1328 

1310 41632 3.747 

Ml 

35675 +5150 35^50 35200 

11240 

5601 

Jri 

4250 

-03 

4253 

4263 1687 

3 

Mr 

387/D 

+02 

3B8/4 

366/2 4601 

704 

My 

1348 

+« 

1350 

1340 

5327 

588 

Apr 

35800 - 38850 35425 

5375 

1678 

Od 

430.1 

-53 

- 

- 507 

1 

Jri 

334/4 

-016 

338/2 

334ft) 10626 

1640 

Jri 

1372 

*6 

1388 

1381 

3305 

222 

Jh 

42600 -5050 42250 41300 

2357 

407 

JM 

433.1 

-53 

- 

10 

■ 

$W 

339/0 

-0/6 

340/4 

339ft) 356 

23 

SBp 

1395 

*6 

1389 

1389 

1671 

48 

AM 

41.775 - 41675 41600 

867 

123 

Tatri 




25304 

163B 

Dec 

349ft) 

-0W 

* 

- 130 

2 

Dae 

1425 

+5 

1419 

1419 

5.109 

Z7 

Del 

35025 -0625 -ta am MOW 

483 

43 

■ PALLADIUM MYMEX (100 Troy at; STlroy oe.) 

Tetri 




7589 23,198 

Tetri 





89638 5/043 

TaM 


$7,188 1339 





Cto3a 

872-3 

690-1 

Previous 

881-2 

699-700 

HtyAcw 


700/088 

AM Official 

6755-8 

695-56 

Karb ckoa 


8SO-1 

Opon ML 

42^19 


Total daiy tumour 

5038 


■ MCKELffi per tom* 


Ckm 

7535-40 

7660-5 

Prevtoua 

7890-700 

7820-30 

tflghftow 

7530/7520 

7770/7650 

AM ontetai 

7530-5 

7672-6 

Kerb dose 


7650-60 

Opon W. 

88.672 


TaM daSy twnovor 

15645 


■ TW (Spar tonne) 



Ctew 

8200-10 

6300-10 

Previous 

6215-25 

8310-20 

Hlgh/tow 


6370/6290 

AM Official 

6245-55 

8345-50 

Karb closa 


6310-20 

Opm (nL 

21660 


Total OaOy Sonovw 

5,418 


■ ZWC, opoctal tdgh grada ($ par tonnri 

Chao 

1170-1 

1196-6 

Previous 

118&-7 

1211-2 

HgMow 

117B/11TO 

120S/1192 

AM Oflldri 

117B-9 

1203-3.5 

Kerb dose 


1199-200 

Open int 

110.073 


Totri daiy turnover 

13607 


■ COPPSI, grade A {$ par tome) 


Close 

2883-4 

2841-2 

Pravtoua 

2913-6 

2853-5 

HtatWnv 


2880/2827 

AM OfflcM 

2910-5 

2852-3 

Kab dose 


2852-3 

Opm tat 

226629 


Totri drily tunowsr 

128641 


■ LME AM OflteM 12$ rata 1.8739 


Doc 15775 +0.65 15800 157.10 3.181 500 

■tar 15866 +060 15860 15625 4600 419 

JM 15865 +060 1B060 15850 516 

Sep 160.15 +060 96 25 

To* 7,796 844 

■ 38-VH4 CQMEX flOO Troy m Cmts/troy eg.) 

■ta 5280 +36 5266 5280 8 9 

DM 5246 +12 5276 S236 67,476 23.390 

JM 5266 +12 5286 5280 86 1 

Htar 6381 +12 5366 5316 38463 5667 

Mar 5381 +1.4 5416 5376 5631 26 

Jd 545.4 +16 5476 5456 7633 139 

WM 134,148 38613 


ENERGY 

■ CRUDE 00. NYMEX (42,000 US grita. S/banal) 

Uteri Day** Opn 

pica Mange Mgfl Um M fM 
DM 17.48 +811 17.61 1723 38449 31684 

Jm 17.48 +068 1760 1723109249 54668 
17.46 +066 1754 1725 42612 16300 
■tar 1726 +0X17 1762 17JB 31,784 12651 

ftp- 17-48 +069 17.49 I7JB 16620 15699 

■tay 1763 +0.13 1763 1721 15.496 3668 

To** 401684178614 

■ CRUDE CHU IPE (S/barreQ 


■ MAIZE C8T (5600 bu mta; centaftSflto bushel) 

Dm 21716 +110 216ft] 216M 9334 2335 

•tar 22318 +U0 229m 227 K 76601 8270 

Mf 235A +0 m 236ft) 23416 30218 2.773 

M 24 m +014 24018 23812 39687 8690 

SM 24410 +02 24412 24314 3J90 228 

DM 248* +lft) 248ft) 24816 20650 4.184 

Total 208L828 48MB 


■ COCOA QCCO) (SOWa/tome) 


■ COCTS LCE (tltoma) 


■ta 

10025 

+025 



to 


Joe 

10230 

■ais 



488 


Mr 

10330 

- 



135 


Mr 

10630 

- 



44 


Sta 

83.00 

- 



20 


Mm 

95.00 

- 



52 


Total 





729 


■ SOYABEANS CBT (5300X1 tan; ccntaftDb OuririQ 

Naa 

563/0 

+4/2 

563/4 

557/0 

3534 

1756 

Jan 

5608 

+4/2 

570/2 

584/2 53315 22.808 

■ar 

578/2 

+3/4 

578/6 

573/2 28333 

3323 

m» 

584« 

+3/2 

585/2 

5HM) 

14335 

1337 

Jri 

569/E 

+3/2 

590/0 

585ft) 22J1B 

2384 

km 

591 ft) 

+2/4 

591 ft) 

588ft) 

1.743 

250 


Nov 

3303 

+13 

3350 

3305 

383 

22 

Jan 

3352 

+29 

3335 

3345 

10214 1,511 

Mr 

3313 

+45 

3345 

3295 

1278 

7*9 

Mr 

3284 

♦41 

3330 

3283 

1677 

245 

Jri 

3277 

+59 

3300 

3298 

12» 

32 

*M 

TaM 

3265 

+tf 

3268 

3268 

2218 5 

2BJB4 2^84 


LME Cteetag CIS ratec 16760 

Spotl 6778 3 RiDSI 6778 6 b41k 16784 0mthr16752 
■ UGH GRADE COPPER (CQMEX) 




Dsita 

0pm 



Oasa 

Mtata ffigb to. 

tat 

Vri 

Nor 

UBLB8 

+0.45 13170 13350 

1,056 

ier 

Dec 

13425 

+020 135.40 13225 28202 

1243 

Jm 

131 AS 

-020 13120 13120 

931 

45 

Mr 

129.75 

-080 13020 13020 

742 

10 

■tar 

12B25 

•080 12920 127.15 16£>6 

1888 

ka 

12SJS 

-080 12330 12520 

67B 

8 

TaM 



58,523 

7280 


Uteri Oafs Opm 

price eftaoga Mgd In U Vd 

JM 1867 +822 1868 1836 69600 33.106 

Hb 1853 +822 1853 1827 25652 11.755 

Hv 1835 +816 1837 1818 15,038 2613 

ftp 1627 +0.16 1627 1815 5629 183 

MW 1815 +0XB 1815 1815 3.72S 1.123 

JM 1813 +810 1826 1813 3603 1297 

H**i 1512W 49683 

■ HEATING OB. WMEX (42JXX) US gafc; cftJS gaisj 

UM Oafs Opm 

prin cMgi Klgb Im U 16 

See 4766 +818 4840 47.70 34670 18106 

JM 4865 +818 4890 4820 41693 18785 

FM 4830 +829 4ftS5 48M 24653 8702 

Mr 49.15 +034 4835 4800 13,669 2678 

ftp 4890 +839 4890 4870 9616 809 

Mr «60 - 4671 784 

ToM 1S7JMZ 48334 

■ CAS OH. ffE 


TtK 134682 38462 

■ SOYABEAN OU. CBT (60.000te c^vTb) 

Dm 2875 +044 2880 2820 34245 8098 

JM 2762 +841 2766 2760 226* 6,113 

Mb' 2837 +834 2845 2803 19289 32« 

tear 2560 +032 2565 25.10 14607 1695 

JU 24.72 +829 2465 2462 8614 2660 

tan 24.40 +830 24.40 2470 1680 287 

Tat* 109619 21694 


■ COFFEE V CSCE p7600lbK carta9ba) 

DM 17160 -460 177.75 16875 8282 3625 

Mr 17875 -460 18100 17560 18267 8650 

■W 17850 -560 16560 17850 6,134 491 

Jd 18060 -560 16630 18260 2,109 115 

Sm 18060 -060 18775 18060 993 56 

DM 1826S -560 - 841 35 

Total 3176011,174 

■ (ICO) [US ccrts/pound) 

Nm. 1> MB Pita. Mr 

Camp. PBy 17885 109* 

15 do Mnge 17S61 17857 

■ Mg PHgftjUM RAW SUGAR LCE (cadtatea) 

Jan 1800 90 

Mr 1363 +817 ■ 590 300 

Mar 1464 +816 1360 1360 450 

Jd 13.79 +065 .... 

T*6 1,160 300 

■ WMTE3UQAnLCE(t/tanna) 


■ PORK BELLES CME (4OJ)0Bb8i oantnfttBp 

Fob 38625 -8175 38Z75 38550 8629 3608 

Mr 38675 -0600 38425 38750 1,194 304 

May 39625 8175 48300 39625 381 144 

JM 48750 - 41600 48660 365 89 

km 38700 -0650 40000 39650 69 14 


LONDON TRADED OPTIONS 

Sbto prior S tom — Cnfa— — Ms — 
■ AUMMUH 


CROSSWORD 

No. 8,614 Set by DOGBERRY 


SIP' 


■ SOYABEAN MEAL CBT (100 tons; Sftorl) 


Mr 

38350 

+1.10 

38420 37950 10244 

Dae 

159.4 

-04 

1501 

1582 29254 

OE81 

My 

378.60 

+150 

37820 

374.70 

4208 

Jm 

1600 

-02 

1604 

1508 21272 

5262 

AM 

371.10 

+220 36850 

3S7.0D 

2777 

■tar 

1642 

■03 

1642 

1616 19313 

1188 

Oct 

34520 

♦190 

34320 

33930 

1281 

Mr 

1687 

-02 

169.1 

1684 10202 

479 

DOC 

34320 

+160 

33950 

33920 

100 

Jri 

1715 

-02 

1719 

1732 10007 

1.279 

Itv 

34130 

+030 

33850 

33720 

251 

Aug 

17*5 

-Ol 

175.7 

175.4 2205 

355 

TaM 





18,741 

TaM 




99218 10893 

■ SUGAR 'll' CSCE (1 12,0000s: centsftbs) 

■ POTATOES LCE (£/toms) 



■tar 

1174 

+016 

1275 

1351 

99258 


(99.7%) LME 

Feb 

Apr 

Fob 

Apr 


177 

185 

32 

61 

1850 

144 

185 

47 

80 

1900 

■ COPPER 

114 

138 

67 

101 

(Grade A) LME 

Feb 

Apr 

Feb 

Apr 

2700 

203 

148 

48 

120 

2750 _ 

170 

122 

64 

148 

2800 

141 

102 

85 

174 

■ COFVSLCE 

Jm 

Mar 

Jm 

Mar 

3300 

206 

272 

154 

259 

3350 

781 

252 

178 

288 

3400 

181 

234 

209 

321 

■ COCOA LCE 

Dec 

Mar 

Dac 

Mar 

950 

63 

80 

36 

40 

975 

48 

87 

48 

58 

1000. __ . 

39 

57 

63 

73 

■ BRarr crude ipe 

Jon 

Apr 

Jm 

Apr 

1600 „ „ 

84 

105 

31 

88 

1850 

57 

83 

54 

114 

1700 

34 

65 

84 

148 


•tar 1056 

ftp 2716 +27 2776 2620 1678 200 

»» 2976 +22J5 1 

JM 2506 

TMM 1679 200 

■ FBBQHT pffFBQ ICE (SIQftndtac poinO 


Sen Oafs 0pm 

prtca eOarga Mgb Ixmr kt VM 

Dec 14965 830 14875 14850 35,774 8,386 

Jv 15160 825 151,75 15060 24.101 3650 

M 152.75 850 1S275 15260 12664 1649 

Mr 132.75 850 15360 15200 8419 504 

ftp 15165 825 15165 15165 3648 5 

My 15875 850 - - 765 - 

Total BM07 14661 

■ PtATURAL GAS MflKX (10600 cmBta,- ttonfltaj 

nu Oar* opm 

pica ctaagi Mgt Lew M 1M 

Dec 1-585 8064 1^5 1690 SBJ3S3 21659 
JM 1.773 8030 1625 1765 28606 9671 

M 1781 8049 1630 1.713 16.471 3.471 

Mr 1.780 8054 1645 1.770 18972 2,577 

ftp 1750 8054 1.790 1745 7616 1656 

Hay 1.700 8043 1607 1.755 7683 7D9 

Tata 151,701 43^21 

■ UMLEADHI GASOLINE 

BYBgX (45. COO US gtffc: dUS gaiaj 

UM Days Opm 

prim dooga Mgk law M W 

DM 65L40 -064 56.10 5465 23,069 16651 

An 5150 809 5465 53.00 24656 15649 

M 5100 814 6370 5260 9,470 5,160 

Mr 5L2Q 809 537Q 5265 5699 2419 

ftp 5845 899 - 5787 436 

Mr 5568 883 - - 1679 715 

Total 7VB0 43463 


Bor 13275 


PRECIOUS METALS 

■ LONDON BULLION MARKET 

fripw Bippfifld by N M Rothadifcfl 

GoU (Trey at) S price C aqdv. 

0088 38&2O-308.6O 

Opening 38850-38860 

Morning flx 38840 24S.78S 

Afternoon fix 38875 245.743 

Oafs Ugh 387.00-387X0 

Day's Low 38820-38860 

Pmrkxa dose 380.00-386.40 

Loco Ldn Maw Qoid Lredhg Rates (Vs US3} 

1 montti 4.95 SmorUha 665 

2 months 566 12 months — 5.83 

3nwrWla 6.11 


SftrarRx 

pdmy oe. 

US eta equtv. 

Dee 

Spot 

332.75 

5ZL50 

Jm 

3 months 

337.40 

53080 

M 

fl months 

34255 

538.70 

Mar 

1 year 

35180 

557 JO 

ftta 

Gold Coha 

S prtca 

£ equfv. 

Mr 

Krugerrand 

388-391 

247-250 

Trial 

Maple Leaf 

307.05-399.55 

- 


New Sovereign 

0093 

67-00 



Mo* 

1880 

+7 

1888 

1875 

242 

so 

■ C 

Doe 

I860 

♦10 

1870 

I960 

384 

80 

Dm 

Jm 

1790 

+30 

1795 

1768 

1,089 

165 

■tar 

Art 

1720 

+21 

1720 

1700 

966 

127 

My 

Jri 

1507 

+9 

1507 

1504 

132 

44 

Jri 

Od 

IBS 

♦25 

- 

. 

17 

1 

Od 

Trial 





WOT 

487 

Dm 


Ckas 

Pita 





Total 

BR 

1 M 

1834 





■ 0. 


1878 +015 1170 1156 29674 1682 

1364 +812 1365 1367 18537 1,105 

1264 +012 1264 1878 16666 909 

1246 +809 1266 1240 3691 172 

>234 +802 1234 1232 273 I 

16870010677 

DN NYCE (50.000 bn; centaftW 

746S +045 7560 7460 18964 3667 

7814 +819 7894 7807 23426 4493 

7766 +808 7760 7760 7607 533 

77.75 +817 7830 77.70 4620 72 

7166 +808 7160 71.70 «1 45 

7045 -OtB 7070 7035 8305 163 

54JD13 8673 


LONDON SPOT MARKETS 

■ CIHWE on. FOB (per btareVJaril +or- 

W»l SI 857-5.61 z +Q.15S 

Bnrt Bland (dated) $1657-6^9 ^J.oao 

Brent Blend (Jan) $18.67-6.89 +0120 

WT.L (ipm eat) Si 7.70-7 .7 1z +0205 

■ OB- PRODUCTS NWE prompt deSwary OF (tonne} 





Premijm Gasoline 
Gas Of 
Heavy Fud Ol 
Naphtha 
Jet AM 
new* 


$176-178 

$158-154 

$107-108 

*173-175 

$175-178 

$158-160 


Jm 

11060 

+435 

119.00 117 J)0 

181 

53 

mm 

1200 

+420 

I22JM 12000 15230 12B3 

My 

174.85 

+186 

124 65 12125 

5.771 

438 

Jd 

127.40 

+180 

127.50 12040 

1 .699 

23 

sm 

130135 

+175 

13025 12750 

838 

20 

not 

12045 

+135 

129-00 128.00 

1351 

100 

Totri 




27,450 1,888 


Auction prices fluctuated only nprowly tHs 
week, with the Australian tendency s&otidy 
ffirrnr. taking the iratat indkator 5c Maher to 
TBSc/Xg. New Zealand and this week's 
Bedford sMe <* Scoitidi nod dnwed mixed 
chmgeB. with soree Bridah cwpei 
definitely dearer but the market in grad no 
more than (hn The msb fador affecting prices 
ores currency, wUi the US dofar rising aft» the 
interest rare rise. Close connection with the 
currencies d the main wool producing cali- 
bres means that major rt emotional wod users 
are paying more: The odded price hawses 
(dried to currency Is not heftping the eow of 
trade. Longer term rod supply and demand 
cdcdaOcRS conltoua to stress the afcdii utj d of 
shortages In the eurter months of 1995 and 
nuuiitrin a firm view of Ore price outlook. 


VOLUME DATA 

Open Merest and Vbfcme data shown tor 
cortracta traded on C08SX, NYMEX, C8T, 
NYC& CME. CSCE aid IPE Crude Ol m one 
day In ojiurjs. 


INDICES 


1 REUTS1S (Base: ie^3i»ioq 

No* 1? No* 18 month ago yere ago 
2148.1 21380 20883 1«16 

B CBB Futurea (Base: 1967=100} 

Nov 18 Now 15 month ago sere ana 

23174 233J& 231.17 22340 


PWBtawn Aja. TaL London (071) 399 8792 
■ OTTER 

Gdd (per troy 04ft $38840 +1X20 

Starer (per troy az# 6285c 

Ptadnum (par troy at) $41800 *1 AS 

Pritadlum (per trtqr at) $168.40 -aiO 

Copper (US prod.) 139-Oc +&0 

Lead (US pod.) 48^c 

Tin (Kuala Lumpuri 15^3r +0.19 

Tn 9km York) 2016c -3fl 

Come (Uve wargh tu 11563p +0 l 29- 

8heep pve wetgtrOT* 10467p +08T 

Pigs dive rrefght) 77.80p +06(P 

Lon day sugar (raw) $333^0 -3J0 

Lon. day ugv (wte) $381.00 -100 

Tate 8 Lyte npott 2325.00 -200 

Bortey (Erie- teed) Unq. 

Mara (US No3 Ydow) Um 

Wheel (US Doric Korth) E166.0v 

Rufaber (Det& 87.7Sp +060 

Rritoerger^f 07.2Sp +060 

Rubber (KLRSSNalJ^ 3436m 

Coconul Oft (Rd}§ S746JJCJ +175 

Palm OH (Malay $752.5u +30.0 

Copra(Pi^5 $48(X0y 

Soyeboena (U5) £l880t 

Cotton OuttootCA' mdn 7760c 

Wootiopa (04s Supeq 480p +5 

E pa- one ertess odwra ta s riatafl p pencaflq. ccanb/b, 
' n nggWw, m MtayStai ewitafta y JaWbr. v NMDec. u 
□se. * Jen. I Nov. Q DaQCJan f London Hiydul 5 OF 
^ritadam. * BuOan morita doss. * Swap $j«e wrid* 
Ptari. ‘ Cninga on wm+ O PifeM mm tar preriow day. t 
- 14m/ta conaotad Igue tar WTT H 7.00-753 


_ ACROSS 

1 Grow into suit (0) 

4 Hop around in bloom ol uni- 
versal knowledge (8) 

10 Gypsy composer let loose 
about Romany Overture (9) 

11 Indian, say, or North Ameri- 
„ “2 novelist rejected (5) 

Is Onal not beg inning to be 
smelly (4) 

Bfany formerly receiving ben- 

Itvm *** to 861 sympa ' 

15 Part at group including Amer- 
ican detectives (7) 

16 Obliterate in reversal of 
^raffemation process (6) 

19 OTpng leader to make marie 
without supernatural power 
w 

21 ?, ur ^ graduate invading 
island (7) B 

23 Arti ficial life of many a for- 
eign copper left in unfinished 
bidlding(io) 

25 Writer viewing cheese with- 
out horror (4) 

27 Woman 1 complain about rci 
38 

concoction (9) 

29 Metry Widow, for instance 
found in a treetop (8) 

30 Compiler's swallowed tongue 
in the nver (6) 

DOWN 

1 Save lock, given support (31 

2 ssy *^*22 Of 

3 Suitable encounter (4) 

3 ^*4. 3 ; recording company 

cutting cheese (7) y 


6 Pelf short? I acquire goods 
without tt (10) 

7 Born with plummy accent; 
brought up to fuss over 
appearance 15) 

8 Outdone during year over 
there (6) 

9 Prophet admitting student 
with Erst In theology? Not 

quite (6) 

14 Stent up at home in withered 
lake (ICQ 

17 Small quantity of love mak- 
ing a lot of noise (9) 

18 journalist In store 
w 

20 Instrument for locating mem- 
ber in real time (7) 

21 Hunt progr amme (g) 

22 Religion thus open to sugges- 
tion (6) 

24 Mima] noises point to animal 

w 

28 5 I ^ aI arrangements knock 
stuffing out of pay rise (4) 

Solution 8,613 


uwuiuuHHmnmju 
Banana! 
a aanjaDEMD 
lalaaaanHH niaH 

BQQHt3HI3nB0 

anaagas^ §nmn! 
□ E H a R B n Pjanaasn 




j-:.r 

, - j .• 














►Jb) 


o* 




JWANCIAI. TIMES 


FRIDAY NOVEMBER 18 1994 


fm to 

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sriizriits 

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anomic crisis, 

are hi S h fo* - a better 
ftrture: page II 


T™*- ^ ^ other two 
Estonia and Lithuania - it 
was trapped after the war 

^ So^et Union! 
it ran now reasonably believe 
toat this will have been its tS 
imperial caga 

a J aiddle Position 
in geography, between Lithua- 
ma to the south west and 
Estonia to the north east, it 
also Hes between the other two 

{Z6m to 
Estonia s L6m and Lithuania’s 

5™**;“** “ ^ been in 

the middle, too, m its efforts to 
reform its economy; leading 
the more conservative Lithua- 
nia, but not yet showing the 
growth and investment 
achievements of Lithuania. 

Yet, so much has been done. 
The visitor to Riga, the “Paris 
of the Baltic." now emerging 
from its Soviet dinginess a gain 
to deserve that name, sees a 
city of newly-opened shops, 
caffe and galleries, mat«+w 
Budapest or Prague. The signs 
of suddenly acquired wealth 
are evident, as are those of 
construction and reconstruc- 
tion. 

After the nervo usness of the 
first years of independence - 
its statehood was declared in 
August 1991 - a social consen- 
sus appears to be holding and 
strengthening. Governments 
have come and gone, but each 
re-tterates Us adhesion to dem- 
ocratic norms, to market prin- 
ciples and to European integra- 
tion, without serious challenge 
to any of these. 


T he threat that the large 
Russian-speaking popula- 
tion-- some 40 per cent of 
the whole - would r emain dis- 
affected, mutinous and unable 
to integrate has substantially 
lessened as the attraction of 
Latvia over Russia has grown 
more evident, as a citizenship 
law is passed permitting grad- 
ual integration, and as the hos- 
tility of the just-before and 
just-after independence years 
gives way to an acceptance of 
each other under a rearrange- 
ment of political power. Grow- 
ing wealth will aid that. ' 

The Soviet past recedes. Few, 
even in the late 1960s at the 
beginning of the struggle far 
independence - at first thinly. 


FINANCIAL TIMES SURVEY 

LATVIA 

Friday November 18 1994 







The first three years of independence have been hard, with many shortages. Above: goods being unloaded at the port of Riga mw by Uok muw The city of Riga has changed greatly in the 1B90S 


disguised as support for a radi- 
cal version of the then Russian 
president Mikhail Gorbachev’s 
perestroika policy - believed 
that Latvia could again secure 
the independent status it 
retained shakily between the 
two world wars. 

Now the memory of the 
achievement of Independence 
fades enough to permit grum- 
bling that the new life is 
harder than the old - a grum- 
bling which will not, however 
translate itself into serious 
opposition to the gove rn ment’s 
course. 

There are parties of the left, 
and the equal rights movement 
lays an accent an the present 
effective exclusion of most of 
the Russian speakers from full 
voting and many civil rights, 
because they have not attained 
citizenship. But in broad 
terms, ethnicity has receded 
from political life, not strength- 
ened within it. Few now 
believe that, having achieved 
independence, it is in constant 
question. 

The issue is rather the need 
to in grain that independence 
into every facet of government 
policy and national life. The 
geopolitical environment in 
which Latvia finds itself is one 
where that goal is seen as 


Now the real work must begin 

Following its independence from the former Soviet Union in 1991, the fledgling 
Baltic state of Latvia stands a good chance of flourishing, reports John Lloyd, 

who wrote this four-page survey 


being most likely to be 
achieved through three paral- 
lel movements: towards accep- 
tance by the European Union; 
towards a competent, demo- 
cratic and secure statehood; 
and towards a wen-functioning 
market system. In what 
r emains of the century - given 
peace and stability - its gov- 
erning class believes it can 
gain much of that 

The difficulties have ceased 
to be Of the kind Which might 
threaten the fledgling state, 
though they remain as testing 
for the new political elite as 
they are trying far the patience 
of the population. 

Latvia is better placed than 
almost any other former Soviet 
state to use its independence to 
create the foundation for demo- 
cratic and market development 
but its first governments hesi- 
tated, then Introduced inade- 
quate and hastily drafted eco- 
nomic legislation, feared 


internal and external backlash 
and opened up the country 
(probably inevitably) to a wave 
of crime and corruption which, 
though not of the intensi ty and 
threat of that in Russia, is nev- 
ertheless alarming in its scope. 

A new beginning is now 
being attempted - but parlia- 
mentary elections are being 
held within the year and even 
Mr Maris Gailis, the Prime 
Minister talks of a period of 
consolidation, not of radical 
reform. 

T he political parties reflect 
the interests and views of 
a largely urban intellec- 
tual and technical stratum who 
see the pro-market reforms and 
conformity with European 
norms as their best hope. How- 
ever, the political parties have 
few members and none can 
govern on its own. 

Latvian Way remains the 
largest grouping - but its need 


to change coalition partners 
when the Fanners’ Union des- 
erted the coalition in mid-sum- 
mer left the country without 
effective government for two 
months and now wwans that 
all policies have an electoral 
edge to them. 

The Latvian Way coalition is 
centrist and moderately 
nationalist but the more 
overtly nationalist parties to 
its right have recently taken 
control of Riga city - where 
more than one third of the 
country’s population lives - 
probably reflecting more a dis- 
satisfaction with lowered liv- 
ing standards than a desire for 
a harder nationalist stance. It 
represents a warning to the 
government, nonetheless. 

Latvia's agriculture, an 
important part of its produc- 
tion, employment and exports, 
has suffered in the short term 
from privatisation. The state 
and the collective farms were 


often inefficient - but they 
were embedded in a function- 
ing system of supply and distri- 
bution which has not yet been 
remodelled. 

That experience has dam- 
aged the concept of privatisa- 
tion as a whole, though a more 
potent cause has been the deci- 
sion to allow ministries to pri- 
vatise the companies for which 
they were responsible at their 
own speed - a strategy which 

meant that, many did nothing , 

others allowed corrupt prac- 
tices to flourish and others still 
were privatised by financial 
and other interests widely 
believed to be penetrated by, or 
to be front organisations for, 
organised crime. 

Nevertheless, many compa- 
nies with apparently good pros- 
pects - the Laima chocolate 
company and the wood prod- 
ucts and famishing company, 
Latvijas Fmieris are oft-cited 
but still impressive examples - 


A guide for business 
visitors to the state 
capital, Riga: page IV 




did privatise themselves with 
existing management taking 
over the reins of power and 
grappling with the rocky condi- 
tions of post-independence Lat- 
via as best they could. 

The outstanding success of 
the past two years has been 
the introduction of a currency 
- the Lat - as stable as any in 
Europe. Latvia stayed with the 
rouble immediately after inde- 
pendence, then moved to a Lat- 
vian rouble in 1992 and intro- 
duced the Lat last year, pegged 
to the International Monetary 
Fund's special drawing rights. 

U nder Mr Repse, a non- 
economist appointed by 
the parliament for a six- 
yearterm as governor, the Cen- 
tral Bank was turned into an 
institution as Independent as 
that, under Mr Stirri Kalian in 
Estonia - though without the 
taint of scandal which deprived 
Mr Kallas of the premiership of 
his country in succession to Mr 
Mart Laar. 

However, the strong Lat has 
resulted in exports becoming 
high-priced and this has forced 
manufacturers to pay more 
attention to securing improve- 
ments in productivity and 
quality, but at a cost. 

The rash of small banks 


Flashback to the winter of 1991: 
Riga's citron's bufld barricades to 
defend ministry buBdfrtgs against 
feared action by the Soviet Army 

Picture by Onncnctr GaJparfn, Reuter 

which appeared in 1990-1992 
has given the country the edge 
in the Baltics in banking and 
financial services - the Baltic 
Switzerland is one metaphor 
often employed, if sardonically. 

Many of these banks, how- 
ever, have acquired the reputa- 
tion of being a conduit for 
flight capital from Russia, and 
the trade they finance is often 
illegal, at least at the Russian 
border. 

Business In the farmer USSR 
is a rough game, and Latvia is 
far from the worst Its banks 
provide income and employ- 
ment but they also deter, 
because of their reputation, the 
serious foreign investor tearful 
of becoming mixed up in ille- 
galities of which ha knows 
nothing. 

These are central issues for 
the state which it can neither 
ignore nor finesse. As it cele- 
brates the national indepen- 
dence it annrniTicqri on this day 
74 years ago, Latvia can be 
more certain than for decades 
- perhaps at any time in its 
past - that its independence is 
well founded. The country will 
grow, and it has a high chance 
of flourishing But for that, as 
Its leaders increasingly recog- 
nise, the real work must start 
now. 





REPUBLIC OF LATVIA 


(O^B^TICSEA 


International Tender for the sale of 


VC& /[ . j p • 


INDUSTRIAL ENTERPRISES 


by the Latvian Privatization Agency 


Enterprise number, name, location (in brackets: type of business [capacity p. a. if available], 
[turnover in 1993 in LVL (Latvian Lats if availablej/number of employees mid 1994) 


GUIIDING MATERIAL 


(LV-5SJVA1 ^letoava Bufldng Materials Ptert* 
JeJgava, IV 3000 

(fSmSteptatBS [20.000 cbm], [OJ m* UtyM) 
(IV-98) VAI ^mBtane Wood and Meld Uanutaaur- 
■tfifl Company" 

Sm8tene.LV 4729 

(Waste Wns /T 00.000 pcs/. Metal teogsre m pesj. 
wooeten cottages 0X1 pcs], /S5] 


rfiOD PROCESSING 


{IV-19JVAJ JtaJaTteh Processing Plant" 

Rote, Df 3264 

(firmed fisti ft JmtB. cansl nsb pmkicts [U00 
PfimO.li/U/1Q2) 

(JJMSJV/U JSgaFatPtticesshgQxiiptex' 

Riga. LV 1004 ‘ 




[tfimO UW1S4) 

(iY-96)V/u «fHga Hsftety" 

Riga, IV 1020 

(Hsh [95.000 ft [irfindL wyzm 


_ HEAVY EtiC-INEERlflG 

irwi^r?*^ 


(State owned) 
Riga, iy 1016 


22 ml 350m quay], 
pOOpcsl pjBnM. U/LJM17) 


light engineering 



p,0mBLUW25V 

(UMMJVAJwLahfa 1 



PAPER AND PRINTING 


(UM6) VAJ JFiga CanAoanf Factory 
Riga, U/ 1004 


r,>77i'i , . lit. : ml i*'J'i‘) I 


0V-95) Assets of 

VAJ .Stateetes Paper Factory' (teased out) 
UmbHzu, U/ 4043 


WiP -/' v->. VRt. 


[ 600 - 000 dm), loan paper p,5 rod), sqnft 
[29.000 IVLJ/42) 


TEXTILE INDuSTPY 


gy-56) VAJ .Krastava Rax Processing Factory” 
Kra8feva.LV 5601 

Fhumwsp. wo ft long ibxOws poo ft 
pzoooiMjno) 

(IV-57) VAJ .UtttzaFtex Processing Factory* 
Uxtza.il/57m 

(Loup and short Bax ftoers. Been p.100 1 flax fiber]. 
[30.000 U/LJ/B4) 

(Ly-6i)VAJ .Preffl Rax Processing Factory* 

Prefll, LV 5318 

(Rax nuers pfiOO ft long ibx fibers [500 ft P) 
fpmductton stopped In 19921 


(LV-106) VAJ JFi ga FtsWng Port- 
Riga. IV 1020 

(Harbour services, oB separation [3 specialised 


(UMH)VAJ *ngasFflcs“ 
f9ga.LV 1003 

(Fed hats, [production stopped to 1993yiQ 


‘IMPORTATION 


fly-31) VAJ .UBfltspfeltenspwte Bcspedtega* 
\tent3pfc,LV380Z 

(/toad transport [IrsigM turnover 126.000 Q, 
ftnran*®, warehousing, [2,5 mm. wqrt27) 

(Uf-32) VAJ JtezeknesTIW8portaApirteriUja‘ 
Rezekne, IV 4600 

(Road transport [37 mML ftrrft [0. 15 ntBL Ll/UnSOf 

(LV-52) .VS .arasteTfansportation* 

Riga, U/ 1084 

(Rond transport [9 l 2 mSt tkml [Ofi m8t. MJ/1Z7) 

(UMJ 1 ) VAJ „Rfga River Transport - 
Riga, IV 1007 


mmm 




WOO 0 Ml 0 WOOD PROCESSING 


(LV-06) VAJ .Oeugavpls Furniture PtanT 
Daugavpils, ty 5400 

(Bedroom furniture sets p 1.700 pesj. uanfates 
piioopcsj, beds [7.4O0 pcs], armchairs 
(1.680 pcs/, dmn beds [840 pcs), to/Ong chairs 
[220.000 pcsj. (OfirnOL Uty359) 

(UMJ8JVAJ .Latpato Furniture PtanT 
Riga, IV 1019 

(Upholstered fum/tm [1,0 mA LVLJ/200) 

fly-50) VAJ .Kurzsmes Priede Forestry” 

LJepaJa. iy 3401 

(Sawn tenter ( 200 . 000 cbm/, Bmpatfcts 
[8.000 dm], m 

(U/- 52) VAJ .Alukane Forestry" 

Ahiksne. LV 4300 

(Sewn timber p.400 com/, wooden crates 
[2500 cbm], paper wood [2.000 cbm], wooden 
chips [450 1], (0fi2mtB. llA.yi12) 

fli/-63) VAJ .Cesu Forestry" 

Casts, LV 4100 

(tiowd Umber export [50.000 chmj. sawn timber 
PZOOO cm], wooden chips po.000 cbm), 
transport service, [ 0.3 raff. Ll/Ll/95) 

(IV-B4) A/S .DaugavpOs Forestry* 

Daugavpils, [y 5400 

(Timer logging [70.000 cbm], sawn Umber 
[2.000 cbml, [0,6 mm. M.j/207) 

fly-65) VAJ .Gutbene Forestry* 

6ubene.LV 4400 

(renter logging [50.000 cbm}, sawn timber 
(ZSOOctml, [0,25 mOL UW1581 

py-66) VAJ .incukalns Forestry" 

Riga legion, IV 2141 

(Round timber [36.000 cbm], sawn Umber 
[7.000 cbm[. wooden ch/ps (20.000 cbm], firewood 
[ 20.000 cbm], p. i mm. umera 

fly-67) Assets at 

VAJ Jaunjeisara Forestry" (leased out) 

AizkrauMe region, U? 5134 

mud imessinQ [24.000 cbm], [0,42 mm. U/Lyii4l 


VAJ .JakabpBs Forestry* (leased oA) 
JBtaOpfe.LV 5205 

(Timber togging [208.000 cbmj, sawn timber 
[8.000 cbm). [0.4 mS. LVQ/92) 

fly-69) A/S .Koknese Forestry* 

AbfmuMs region, IV 5113 

(Timber togging (6U000 cbm;, sawn tender 
[3.000 cbm], [0,8 raff Ufy293> 


fly-73) VAJ .Mazsabca Forestry" 
ftlmfera region. LV 4215 

(Pulp-wood [8.500 cbml sawn timber [1.000 cbml 
teewo od [15.000 cbm], plywood logs [ 1.400 cbm], 
[0.34 m3. Li/Lj/167) 

(iy-74) A/S .Ogre Forestry" 

Ogre, ty 5000 

(Sam timber [2.600 cbml paper wood 
[8.500 cbm}, firewood [23. 000 cbm], 

[0.6 mM. 118.1/191 ) 

fly- 76 } VAJ .Safdus Forestry" 

SaWus.LV 3801 

(Timber logging [46.000 cbm], sawn timber, 

[0.5 mO.U/U/140) 

(U/-77) A/S .Strencu Forestry* 

Valka region, iy 4730 

(Paper pulp [20.000 cbm}, babes (17.000 cbm), 
plywood togs (1500 cbm], fachn. wood-pulp 
[15.000 cbm], sawn timber [2000 dm], firewood 
[20.000 cbm], (0.8 irOI. M//2M) 

fly-78) vaj .Taisi Forestry 
Tab/, LV 3257 

(Paper amod [6200 cbml sawn t&nber 
(7.300 cbm], to und logs [3.000 cbm], 

[0.4 miS. U8J/235) 

6V-791 VAJ .Maims Forestry 

Tutarms, LV 3100 

(Round logs [15.000 dm], Brmoodp3.000 cbm], 
sawn tenter (7.500 cbm], [0.5 raff UtyisO) 

fly-80) VAJ JSguri Forestry" 

Baiw region, iy 4584 

(Timber logging [25.000 cbm], sawn timber 
[2.500 cbml match fogs pfiOO dm], 

[OJnffl. U8J/209) 

fly-105) VAJ .Dundaga Forestry 
TalsLUf 3270 

(Timber loggtog paooo cbmj, sawn timber 
[1.500 cbm], /B8} 


KHhflga9 TUtanw# 



(IV-zi)VAj .OMne ChenwaH’hannacsuticaJ 
Plant” 

Qiaine, LV 2114 

(MOBctoes p.500 mBL tablets}, raw materials 
(or medicares [TOO (]. byproducts /BOO ff, 
[4fim& D/L//969) 

(U/-49) VAJ .tivate Btocheroteal Rant" 

Lived, 13/5316 

(Concentrated forage tysfri [2000 ft [production 
stopped in 199ZJ/54) 


Tender Comfillons 

1. m accordance wHh its lagal mand ate tin Latvian 
Pmratizaiian Agency LPA Intends loses the atore- 
mentkoned enterprtees by means oJ an tetefna- 
tionsi tender to tee toScmng manner. 

a) bide tor a state owned joint slock company 
(organized as A/S under Latvian law} must be 
to the majority of the shares of the company. 
LPA may reserve a minority of the shares of the 
company to future public offering ol shares; 

b) bids to a state owned enterprise (organized as 
VAJ under Latvian law) must be to its total 
operations; 

e) bids to a plant or leased out en te rprise must be 
tor its total assets (e. g. buildings, leasehold, 
equipment and inventory) witfi Inventory finally 
to be valued as of the time of acquisition; 
d) bids tor assets or parts or an enterprise must be 
to a separable unit ot a A/S, VAJ or plant wBh 
inventory firefly to be valued as ol the time d 
ewaadan. 

2. The tender is puttee and anyone may bid. 

3. fn deciding among tee bids.. LPA w ffl take into 
consktenmon, among other things, the t»d price, 
promises to maintain or create Jobs, pledges to 
invest and the business plan submitted, each at 
which wffl be considered pot of the bid. Upon 
signing a contract tee successful bidder wB I be 
required to postabond to guarantee these pledges. 

4. interested partee can obtain enterprise and plant 
profiles without charge from LPA. LPA ts not re- 
sponsible to rhe accuracy and completeness of 
this information. Prospective bidders wiS raceiva 
wrienn aiflhonzHtton from LPA to vtett tee enter- 
prises or piarts on the basis of which Information 
wB be provided bytee enterprise or plant manage- 
flNR. 


fly-60) VAJ .Settas Wholesale' 
Jtegava, iy 3008 


[ 0fima.U8]/52) 

fly-M) VAI .Riga Baud and Excursion Office" 
Rroa.LV 1050 

(Omu agency, [20.000 Uty9) 

(IV-101) VAJ .Bate' Road Construction” 

Bate, IV 4500 

(Road construction, asphalt [70.000 ft ffing 
material [ 200 m& dm). [0.1 raff IMJ&4) 


5. Bids must be in writing and should be subttotad In a 
seated envelope marked only vrth tha name ot the 
enterpris e or plant lor which the bid is submitted. 

6. Bids must be received at LPA, 31. K. VaUemara 
Street, Riga. Latvia-1887, no law than 2:00 p. m. 
(tocal ttotej, on 2% iim (tto “dtoslns date”). 
Bids wB thereafter be opened Immedatety. Bids 
must be denominated in Latvian Lais (LVL), and 
shaO remain valid for one hundred and twenty ( 1 Z 0 ) 
days ahsr the dosing date. 

7. BUs must be accompanied by a bond ol five (5) 
percent ol the US vatoe bi the tonn of an irrevocable 
bank guarantee valid lor one tanked and twenty 
(120) days after tee dosing data. The bid bond must 
be payable on first demand and win be forfeited ti the 
bidder either fads to hold ks bid open tor the required 
period or returns to sign a contract in accordance 
with its bid. 

8. LPA wHdadde on the bids within one hundred arid 
twenty (120) days after the dosing date. Bidders 
nay preeentthair bid witei n a period s« by LP A. LPA 
Is entitled to accept a bid other than that with the 
highest purchase price or may rejeer any of tee bids 
a any Bme. 

9. Tha privatization ot the tanderocf enterprises wf be 
carried out according to appl i cable Latvian law. 

LPA (Latvian Privatization Agency} 

Drtnto State JUrtsNag/bs 

Stele Mldsur to Privatization Genenaklrektor 

Office hours of LPA are Monday through PrMey 

Iran S a,m. imtn 4 pjn. flocalBmo). 


For further information (enterprise profile, data on Latvia, visit authorization) please contact: 

rtfiAntnr/i Tel. +371-2-332082 Fax +371-8830363 

Pnvanzaci|as agentura +371-2-328069 +358-49-106100 

(Latvian Privatization Agency) +358 49-106103 +358-49-106101 

K. VaMemara tela 31, Ri^ LV-1 JK7,Latvija +358-49 1061 04 +358-49-1 06102 


+371-8830363 

+358-49-106100 

+358-49-106101 

+358-49-106102 


This project is funded by the 
German Ministry of Finance 
and EU-PHARE 



















. --L- J' - -■ 






FINANCIAL TIMES FRIDAY NQVEMB^lt |8^99^ : v v 




Economy: the first three years of independence have seen hard times 


After a severe crisis, hopes 
are high for a better future 


Hie severity of the crisis which 
has existed in Latvia's 
economy Is evident from the 
fact that manufacturing output 
has more than halved. 

In every sphere where the 
country did well in Soviet 
terms - production of 
electrical goods, buses, railway 
wagons, wood products, 
leather goods - it has suffered 
contractions of up to two 
thirds compared with former 
production levels. 

The economy is in the end 
about the well-being of the 
people within it and by the 
crudest measure erf that, the 
death rate, Latvia also does 
poorly. 

Life expectancy has sunk (as 
it has. but usually by more, 
elsewhere In the former Soviet 
Union), over the past two years 
- largely because men are 
dying almost three years 
earlier than they used to at a 
little over 60. 

The first three years of 
independence have been hard 
on the people: it gives the 
dwindling band of pro-Soviet 
enthusiasts who still turned 


clinic admits, “it doesn't look 
so good if you’re on a pension 
of 30-odd late a month”. 

The hardship and the figures 
are not a matter of dispute: 
interest must now focus on 
whether or not the headline 
last week in one of the 
business papers. - "The Worst 
is behind us: now it gets 
better" - is likely to be true, or 
is merely a reflection of a 
hopeful government looking 
for re-election. 

Mr Maris Gailis. the prime 
minister, said confidently: “We 
will see growth next year of 
between 3 and 5 per cent in the 
economy and we also think we 
will keep inflation down to 
around one per cent a month.” 
(It is presently a little above 


»> 

•!** 


ESTONIA 


T« 





Agricultural output (1990 = lOO) 


that). 

In part, the prime minister’s 
confidence derives from an 


1990 

1991 

1992 

1993 

All output 

100 

96 

81 

63 

increasingly popular view that 
the decline in the Latvian 

of which 
crops 

100 

105 

94 

S3 

economy has reached the 

livestock 

100 

92 

76 

50 

bottom. 

In part, it also reflects a 
belief that tbe strict financial 

Sown area of oops 
'OOOha 

1.627 

1,621 

1.572 

1426 



S«un»' LaMar i Mnury of Agnaltunt 


Life expectancy has sunk 
(as it has, but usually by 
more, elsewhere in the 
former Soviet Union), 
over the past two years - 
largely because men are 
dying almost three years 
earlier than they used to, 
at a tittle over 60 


out earlier this month (in their 
hundreds now rather than 
their thousands) to mark the 
anniversary of the October 
revolution at the spot where 
the statue of Lenin used to 
stand, something with which 
to tarnish the achievement of 
the creation of the new state. 

Reforms, too, are benefiting 
the growing middle class, but 
not, so far. the general 
population- 

The restitution of pre-war 
property has created overnight 
a rentier class which can live 
comfortably on the proceeds of 
their properties, especially if 
they can be let to businesses. 

The privatisation of services, 
including medical services, has 
meant that doctors and 
dentists, traditionally very 
badly paid, can now command 
high fees quite openly, where 
previously they resorted to 
asking for “presents''. 

This has allowed the 
standards of service to go up - 
but, as Maija Dokate, head of 
Riga's largest (private) dental 


regime imposed by the Central 
Bank with the acquiescence - 
sometimes grumbling - of the 
political leadership has laid the 
basis for real non-inflationary 
growth. 

The country's finances have 
been the most unambiguous 
success the Latvian leadership 
has enjoyed. 

The Bank is independent, 
with its chairman - Mr Einars 
Repse - and its council 
appointed by parliament but 
thereafter not dismissable for a 
six year term. In 1992, it lifted 
most restrictions on foreign 
exchange, liberalised interest 
rates and introduced the 
“Latvian rouble" at a floating 
exchange rate. 

In October 1993. the Bank 
brought in the lat. a purely 
Latvian currency. This was not 
tied to any national currency 
but in 1994 was brought into 
line with the IMF’s SDR 
(special drawing right) unit. 
The currency reforms brought 
down an infla tion rate of close 
to 1000 per cent a year in 1993 
to about 35 per cent last year, 
and it is forecast to fall to 
about 34 per cent in the 
current year, and to half that 
figure in the next 

The lat, the face value of 
which Is the highest of any of 
the post-Soviet currencies, 
appears to have successfully 
inserted itself into the national 
economy - playing the role 
taken rather earlier by the 
kroon in Estonia, as at the 
same time a symbol of sound 
money and independence. 

Mr Ilmars Rimshevics. the 
young deputy governor of the 


Gross Domestic Product 

(in 1990 constant prices - 
1990 = 100) 


Year 


1990 

1991 
199? 
1993 
1994* 
1995' 
1996’ 


100.0 

91.7 

80.8 

48.0 

46.0 
51.5 
51.5 


■fNcpctm 

saunx LaMar) OoMrmwL Barnes i Banja 


Central Bank, says that there 
Is pressure from the 
government and from 
manufacturers. 

“Many of them think we are 
too independent but so far the 
success we have achieved in 
inflationary terms has shown 
that we are on the right 
course,” says Mr Rimshevics. 

Success has been achieved 
not only in introducing the 
currency: the bank has also 
reorganised itself by shedding 
most of its branch network, 
creating Horn some of the 
former branches a new 
commercial bank. Unibank, 
and selling others to 
independent banks. 

It has also sought to extend a 
network of regulations, one 
result of which has been that 
10 banks have lost their 
licences. 

Of the hot money said to be 
coursing through Latvia's 
financial system, Mr. 
Rimshevics says carefully that 
“a lot of the capital coming 
into Latvia is from the east 



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LATVIAN 


Foreign assistance 
to Latvia 


s 


Multilateral and bilateral aid 

1992 51.441.160 

1993 27,486,904 

1994 39.S70.087 

Phare (European Union) assistance 

1992 16,250,000 

13.182.000 

30.625.000 


1993 


1994 

Total 


1992 67,691,000 

1993 

1994 


40,669.404 

70,495,087 


Sewn Finance (Hny. d*jm ttrtent for Emma! 


(Russia), and there is not much 
information about it. If we did 
get some information that it 
was illegal we would of course 
co-operate with the authorities 
in investigating it". 

Mr Rimshevics also says that 
the Bank will probably soon 
wind down the programme 
with the IMF which has served 
it so well - though he says 
that “a memorandum with the 
IMF would probably sttU he 
useful to us at this stage”. 

He is confident, too - unlike 
his counterparts in Russia - 
that foreign banks can only 
assist the banking community 
in Latvia through competition. 
The Central Bank has no 
intention of keeping foreign 
banks out of the country - 
though so far only one bank 
has been issued a full licence 
and one other bank given 
permission to open 
representative office. 

Mr Andris Piebalgs, the 
finance minister who professes 
himself as strict a monetarist 
as any central banker, says 
that he is going to insist on 
another very tight budget in 
the coming year - with a total 
income of Lts940m, of which 
only Lts40m-5Qm will be 
financed by a deficit 

At the same time he is 
presenting a new tax code to 
the parliament, which would 
bring the high rates of profit 
tax down from between 35-65 
per cent to a flat rate of 25 per 
cent - the rate also set for 
income tax. 

He is a little more cautious 
than the Prime M inis ter, 
forecasting 3 per cent growth 
for next year - but says that 
an annual inflation rate o£ ll 
per cent for 19% “looks more 
or less real”. 

He sees clearly enough that 
his country's producers and 
exporters are still suffering, 
that life as a pensioner on 
Lts31 a month is very hard, 
that teachers and civil 
servants are getting by on 
little more - all in the midst of 
a city in which wealth for the 
fortunate is clearly exploding. 
“But to loosen up now Is to 
lose everything, and we won't 
do it,” he says. 






Foreign policy: an innermost wish to be part of the EuropefojUr^ *j f&k , ' 

Squeezed between two blocs 


"iWZ 


“Baltic countries will never 
again be forced against the 
innermost wishes of their peo- 
ple into any relationship with 
the Russian state; but they 
would themselves be foolish to 
reject close and co-operative 
arrangements with a tolerant 
and oon-imperialistic Russia 
which genuinely wished to 
overcome the unhappy memo- 
ries of the past and to place 
her relations to the Baltic peo- 
ples on a basis of real respect 
and disinterestedness." 

George Kerman, the US dip- 
lomat whose analysis of the 
post-war Soviet Union showed 
much (but not enough) of his 
country’s foreign policies, pro- 
duced few better insights than 
that. More than 40 years after 
it was written in 1951, it pro- 
vides a consensual framework 
for the conduct of a Latvian 
foreign policy seeking to con- 
solidate a national security 
which it still sees as fragile. 

If there is an “innermost 
wish” at the core of the policy, 
it Is manifest in a national 
consensus, which sees Latvia's 
future as within Europe and, 
specifically, within the Euro- 
pean Union. To achieve that it 
- with its neighbours, Estonia 
and Lithuania - struggled 
determinedly to escape from 
the failing Soviet Union. 
Unlike the other Soviet states 
which largely received their 
independence as a result of the 
Soviet collapse, tbe Baltic 
states took their statehood 
first - and in doing so, greatly 
hastened that coDapse. 

The anti-Sovietism, and anti- 
Russian feeling which that 
long-suppressed urge produced 
Is now being consciously modi- 
fied into the offer of a civilised 
□eigbbonrliuess - an offer 
which has yet to be fully taken 
np by a Russia still raw over 
the loss of empire, even 
though President Boris Yelt- 
sin, more than any other lead- 
ing Russian politician, gave 
the Baltic states tbe space 


within which to regain control 
of their nationhoods. 

"We are between two big 
blocs still," says Mr Valdis 
Birkavs, the Latvian foreign 
minister. 

"Our only guarantee of secu- 
rity is strengthening our- 
selves, not from the military 
point of view but in sticking to 
tbe right policies and making 
ourselves attractive to invest- 
ment The Singapore, or Hong 
Bong, of the Baltic, if you tike. 
That is the only guarantee 
now - not one provided by the 
west" 

Mr Birkavs has been the 
dominant figure in Latvian 


Sknmda radar base as the one 
remaining Russian m i l i t ary ■ 


Economic disengagement 
has been less complete, hut is 
impressive. From an almost 
total dependence, on the mar- 
kets of and supplies from the 
Soviet Union - largely Russia 
- Latvian foreign trade is now 
50 per cent oriented to the 
west “We 1 could," says Mr Blr- 
kavs, "make our entire, orien- 
tation to the west and* as It 
were, shot up our borders with 
Russia. But it would be had 
for us and bad for them- We 
face west but we also want file 
best relations possible with 


The anti-Sovietism, and anti-Russian feeling, is now 
being consciously modified into the offer of a civilised 
neighbourliness 


foreign policy for the past 18. 
months - as prime minister 
until the coalition that be led 
fell apart in the summer and 
then as foreign minister in toe 
re-formed coalition from Sep- 
tember. As prime minister, he 
suffered the loss of Mr George 
Andrejevs, then foreign minis- 
ter, whose links with the KGB 
were revealed: the resignation 
strengthened Mr Birkavs’s 
grip on foreign policy. Stm the 
chairman of his party - Lat- 
vian Way, the main coalition 
partner as in the last govern- 
ment - he remains the l eading 
strategist in the. development 
of his c oun try ' s delicate geo- 
political niche. 


T he disengagement from 
Russia has been - apart 
from an eruption of vio- 
lence by Soviet special forces 
in Riga in January 1391 - 
peaceful, if fraught This year, 
an agreement on the with- 
drawal of the remnants of the 
once numerous army contin- 
gent was initialled in March, 
signed in April and finalised 
in August - leaving the 


onr neighbours. A successful 
a nd democratic Russia Is our 
best hope.” ' 

Though Russia is at the cen- 
tre of Latvia's “ostpoUtik” it 
does not define it Successive 
Latvian governments have 
striven to develop indepen- 
dence and strengthen relation- 
ships with Ukraine and Bela- 
rus - there are substantial 
Ukrainian and Belarussian 
communities within the 40 per 
cent of the community which 
Is Russian rather than Latvian 
speaking - and with the Cen- 
tral Asian states of Kazakh- 
stan and Uzbekistan. 

The engagement with 
Europe has been over the past 
year a similarly rapid process. 
In February, the government 
signed Mato’s Partnership for 
Peace programme, designed in 
part to provide a halfway 
house for states such as Lat- 
via, anxious to strengthen mil- 
itary alliances with the west 
while allowing the Nato mem- 
ber countries to reassure Rus- 
sia (also a member) that it was 
not being surrounded by a mil- 
itary bloc. 


In late sprin g and s ummaiy 
in a flurry of activity, - Latvia 
initialled an agreement for. 

partnership with theT 
European Union; negotiated' 
and signed a free trade' agree. / 
ment with the EU. and passed ' 
an a mended cttiaBBSbhrlgy - : 
which by scrapping the systeq 
of small quotas Resident 
non-ethnic Latvians aHowedfo •' 
take dtranship each year - 
cleared :the way for ton hum- \ 
hers hip of the Councfl of 
Europe. " > . . ■ - T : . 

Like the other two Battle 
states, Latvia benefits fcom 
the patronage iff the ether Bal- 
tic countries which have beea 
since the war securtly in tta 
western ambit — especially . 
Germany and Sweden: Mr Cart : 
Bfldt the latter’s former prime 
minister, has been, a strong 
champion of the three -sta teff 
independence- Writing to the 
current issue of rthe journal 
International Affairs, Mr Bildt 
says, that "the security of the 
Baltic . nations needs to be . 
assured by Integration with . 
the institutions of tbe. west 
The nto-lmpettolist forces hi . 
Russian political life nrast be : 
contained by the process-: eg 
democratic reform ahd .part- _ 
nership in -ii^enuitlonal j 
co-operation. If we succeed, ft 
augurs well not only: for the 
stability of thfopato of-Eurupfr 
but for Russian policy towards r 
the rest of tbe world as welL*-. 

For Mr Birkavs, the achieve- 
ments of fids year must be fok 
lowed, he; says, by a period to 
which “Latvia prepares herself 
for full membership of toe 00, 
We must ho longer .demand 
that Europe does thtogsfotfhgr.7 
we must make the reform* - 
that will allow us to he a fill-; ' 
partner." ' • • . ".Y.7;' f 
. Much has been achieved . 
quickly - for three main rea- 
sons. First, Russia has been - 
acquiescent because ft had e . 
democratic-minded -president 




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«1NAJVCIAL TIMES 


★ 



LATVIA III 


2 9 


P rivatisation to date ha- 
teen acknowledged ai 

slow: the challenge th 
has set itself i< 

bototo speed it up and rive il 

a strong enough Institutional 

and popular base S 

process through what wii 

inevitably be a tou^ 
nmnediateiy ahead. ^ 

,2“ S 2? ust S al structure ol 
was, if not hostile tc 
privatisation, certainly dis 
couraging. Agriculture wa« 
feSf ^oUecttyised. with indi 
vraual plots being verv small 

2! ? 5u ^ ry ' 5 industrial base 
was heavier than that in the 

S5i er *- tw0 . Baltic states - 
reflecting In part a longer 
u^UStnal tradition than either 
Lithuania or Estonia, espe 
rfafly round Riga, the main 

i£ Was more 
depwident on the Soviet Union 
for both supplies and markets, 

t !!** a ? le easfl y to snitch. 

^ Latvia has also received a 
mgher proportion of Russian 
nnmigrants than its two neigh- 
bours since the war and many 
or these were concentrated in 
the industrial enterprises - as 
workers and as managers. 
Parts became and remain non- 
Latvian enclaves. 

The first privatisation efforts 
were directed at agriculture. 
Rom 1992, the land, hitherto 
largely collectivised, was split 
up into small plots, with the 
intention of encouraging a 
healthy smallholding class. 
However - as the figures for 
agricultural production show - 
the initial effect has been to 
cause production to decline 
sharply - as some 200,000 new 
proprietors struggle to pro- 
duce, battling with a lack of 
appropriate machinery, with 
plots of an uneconomic size, 
and with insufficient surpluses 


Privatisation: the industrial structure poses problems 

Agriculture sets the pace 


to buy grains and fertilisers. 

At the same time legislation 
giving former owners the right 
to reclaim land held by them 
or their families before the 
Soviet occupation, while justi- 
fiable both as a moral right 
and as an encouragement to 
active ownership, has further 
complicated landholding. It has 
also handed over land in many 
cases to absentee landlords and 
further fragmented the coun- 
tryside. 

“You have thousands of pro- 
prietors. many of whom can 
now only produce for them- 
selves,*' says Juris Paiders, edi- 
tor of Dienas Bizncss. the mar" 
Latvian economics paper. “It 
means that you have actually 
taken land out of the market, 
not put it in.” 

In the rest or the economy, 
privatisation was handed over, 
in the first place, to the minis- 
tries which had, in the Soviet 
period, commanded the same 
enterprises, regulating their 
behaviour, appointing their 
management and passing on 
the plans and demands from 
Moscow. Municipalities were 
given the responsibility for 
shops and small b usinesses . 

The latter privatisation, nor- 
mally the easiest to achieve in 
post Communist economies, 
has gone ahead rapidly, espe- 
cially in Riga’s City centre - 
where the streets have been 
transformed by newly restored 
shops selling imported and 
native products and by a rich 


array of cafes and restaurants. 
There is a high proportion of 
joint ventures, with partners 
coming especially from Scan- 
dinavia and Germany. 

The decision to band over to 
the ministries control of the 
big privatisations has proved, 
however, a decentralisation too 
far and too soon. Privatisations 
were achieved, but went 
largely to existing manage- 
ment which brought in finan- 
cial partners without effective 
oversight. The law provided 


that managers could lease 
their plant and buy it over a 
set period of years. Many are 
now doing this, though the col- 
lapse of production in the last 
two years has meant that they 
are doing so with great diffi- 
culty - especially where, as in 
many cases, exports went to 
the Soviet Union. 

The traditional jewels of Lat- 
vian industry - such as the 
VEF electrical plant and the 
RAF small bus plant - were 
transformed from leaders to 
laggards overnight, and are 
now struggling to make them- 
selves attractive to investors. 

The previous government led 
by Mr Valdis Birkavs (now the 
Foreign Minister) decided last 
year to restructure a process 


clearly seen to be failing - and 
set itself the target of privatis- 
ing 75 per cent of all state 
property by 1996. ”1 want to 
speed up the privatisation pro- 
cess." says Mr Maris Gailis, the 
present premier. “There are 
worries that it will lead to high 
unemployment because it will 
demand more efficiency and 
there will be fewer bureau- 
crats, but we can do more in 
retraining. The problem was 
that many of these people 
walked under 100 per cent con- 


trol of the state and the Com- 
munist Party. Now they have 
to realise that success comes 
only through their efforts.’' 

Instead of a' decentralised 
approach based on the minis- 
tries, the government decided 
to set up two institutions - a 
Privatisation Agency to put 
into effect the privatisations 
themselves, and a state prop- 
erty f nntl to manage the exist- 
ing state portfolio. These are 
new bodies, and as yet untried. 

Mr Janis Naglis, the general 
director of the privatisation 
agency, appears anxious to 
hurry - “we must do this fast 
If we were to prepare every- 
thing scrupulously It would 
take us 100 years - we simply 
have to get it going.” 


StfiL be has to work with 
several problems at once; 
firstly, there is no free sale and 
transfer of land; secondly, 
there is as yet no securities 
law and there is no functioning 
stock exchange - though an 
exchange is being prepared; 
and thirdly, the citizens all 
have vouchers issued some two 
years ago but as yet have noth- 
ing to spend them on. 

Breaking through this circle 
of problems will inevitably 
bring some rough decisions. 
The way of doing so, developed 
by the government, Mr Naglis 
and the relatively large num- 
bers of foreign advisers includ- 
ing those paid for by the Euro- 
pean Union's Phare 
programme, the international 
financial institutions and 
USAID, is to put on the man 
ket, starting from this week, 
some 44 companies which have 
been more or less prepared for 
the market, and to invite inter- 
national tenders for them. 

As well as being offered to 
foreign investors, these compa- 
nies will also be open to 
voucher privatisation on the 
part of Latvian citizens - 
though it appears to be unclear 
what proportion of the compa- 
nies will be offered to foreign- 
ers and what proportion to 
domestic investors. The new 
executives in charge of the 
project are young and ener- 
getic, but conscious of an 
uphill struggle before them. 
"When I talk about privatisa- 


From 1992, the land, hitherto largely collectivised, 
was split up into small plots, with the intention of 
encouraging a healthy smallholding class 



Stnwts transformed: rwwrty restored shops td Impo rt ed and native products 


tion to foreign companies, 1 ’ 
says Mr Uldis Vitolinsh, head 
of the Latvian Development 
Agcmcy, “they have an image 
of two things - mafia and 
national conflicts. Whoever I 
go the first question is always; 
'What problems do you have 
with the mafia?” 

Though the vagueness of 
Latvia's privatisation pro- 
gramme is a problem, it is also 
an advantage - according to 
Mr Andrew Baldwin, a consul- 
tant working with the EU’s 
Phare programme. “It is fortu- 
nate it has not chosen any par- 
ticular prescription of privati- 
sation. It can move forward in 
a more flexible and better-man- 
aged way than before." 

Foreigners can take 100 per 
cent of an enterprise by law - 
though many will wish to 
retain a substantial Latvian 
shareholding, as those 
involved in the 5000 joint ven- 
tures da (One third of these 


have Russians as the main for- 
eign partner). 

The agencies, and their for- 
eign advisers, are now working 
with a number of Latvia's 
more attractive companies to 
make them ready for the mar- 
ket These include the large 
Latviya Hotel; the Solo-Riga 
piano plant; the Latvia Ship- 
ping Company; and the cre- 
ation of a joint venture 
between a Latvian airline and 
SAS. the Scandinavian carrier. 
Other companies, especially In 
the agrarian and wood busi- 
ness (where exports have been 
growing strongly) are also 
likely to be attractive. 

The hard pounding which 
the state’s economy has suf- 
fered since independence has 
depressed living standards and 
hit exports, as in other former 
Soviet republics. However, the 
pounding has had perverse 
benefits: it has been a testing 
school for revealing which 


enterprises have a core of real 
potential and a management 
team aide to survive in chaotic 
conditions. And it has also 
shown that the economy, 
unlike Estonia’s, wifi, probably 
remain partly oriented towards 
Russia. 

Thus, Latvia has much to 
gain from success in Russia. 
Where now its banks are a con- 
duit for Russian flight capital, 
they can also be a means 
through which successful Rus- 
sian roTnpayngw can establish 
foreign affiliates, and reach out 
to Europe - especially if and 
when Latvia becomes a full 
member of the £17. 

Latvia's selling point of 
being an Intermediary between 
west and east has so for been 
two-edged. With greater trans- 
parency and a determined 
attack on crime it could work 
to its advantage, with the Rus- 
sian and the Latvian privatisa- 
tion programmes dovetailing. 



Business case studies: progress by Latvian companies 

The sweet smell of success 


■ Latvijas Finierts 
Latvyas Finieris, a manufac- 
turer of wood products and fur- 
niture, is quite clearly a suc- 
cess. Its manag in g director, the 
taciturn and shrewd Mr Juris 
Bikis chose to lease his com- 
pany jointly with his fellow 
managers, under a system 
which allows them to buy the 
plant in stages from the stale. 

Until the late eighties it had 
served the Russian market, 
with more than two thirds of 
its output going to the east 
Tan per cent of these sales 
were then reexported to west- 
ern markets through a central- 
ised system “which meant we 
knew nothing about them, not 
where they went or what was 
paid for them," says Mr Bikis. 
Quickly grasping that the 
world was changing, Mr Bikis 
and his colleagues took effec- 
tive control of the company 
and began making changes. 
Russian orders fell back sub- 
stantially in 1990-91, and work- 
ers had to be laid off. They 
went in search of new markets 
- and found them in Britain, 
Finland and Scandinavia, form- 
ing joint ventures in the first 


two of these to aid marketing. 

Exports now account for 95 
per cent of output, which has 
risen steadily since 1992. The 
number of workers has risen to 
1.700 - about the same as 
before the downturn in orders. 
The company, housed in three 
adjoining plants, has its head 
office in crumbling post-war 
buildings but inside young 
men and women sit at- com- 
puter screens and handle the 
orders hi several languages. 

'It has been difficult,” says 
Mr Bikis. “We had to imple- 
ment very rapid changes. We 
worked as a team, otherwise 
we could not have done it We 
are now getting young people 
especially trained for our 
needs. We make an agreement 
with a technical institute that 
when they first enter, they 
sign up with us. When they 
come out they are already 
trained. 

"We created a marketing 
department where we had 
none before, and we sell 
through our own shops and to 
other companies. But we sell 
only our own brand: we won't 
make brands for other people. 


“Capital is the most difficult 
thing to obtain. The risk is 
thought too great by most of 
the banks so we use our own 
profits as far as we can.” 

■ I -alma 

All around the factory, the air 
is heavy with a chocolate 
smefi. T-nhna is one of the best 
known names in Latvia, 
famous for its dark bitter-sweet 
chocolate, made in Riga for 120 
years. The plant was sold by 
its LatYian-Jewlsh owners 
before the war - and was then 
taken over by the state, in 
whose hands it has remained 
until now. 

It became, once again, a 
share-issuing company last 
year - with over a third of the 
capital owned by the workers 
and the managers, another 
third by a Latvian company, 
Avellat, 20 per cent by the 
state and the rest by pension 
funds. Mr. Janis Zvanitajs, the 
general manager and the mov- 
ing spirit behind the plant, 
says the management changed 
the way the company was run 
three years ago when it was 
dear that inflation was shoot- 


ing up and previous markets 
were being closed. 

Not only did markets disap- 
pear. however. The centralised 
supply system which had 
ensured all the necessary 
ingredients were more or less 
reliably assembled and des- 
patched also went As a result 
the company had to secure its 
own sources of supply - and 
made a disastrous contract 
with Uganda for cocoa, the 
non-delivery of which nearly 
ruined it 

With Its protected markets 
removed, the company began 
to experience competition in 
its own domestic market as 
well “The Poles are strong in 
the confectionery market says 
Mr Zvanitajs, “and there is a 
big Lithuanian plant with, 
which we have to compete. 
More than 20 companies seD 
their chocolate brands here - 
including all the main ones, 
such as Mars and Bowntrees." 

Laima fought back on the 
same grounds as the foreign 
companies: it introduced its 
own chocolate bar, a tangy, 
unusual tasting candy called 
Miks which tastes quite differ- 


ent from the Mars- Snickers 
products. The company is now 
capitalised at Ltsl.9m and 
employs 650 workers - 450 at 
its central Riga factory and 200 
more at various shops and 
depots which it runs through- 
out the country. “We have 
received many proposals from 
foreign companies: I think 
every one of the companies 
you could think of in our busi- 
ness has been here for talks. 
But we don't want to team up 
with anyone yet 

“The shares are still in the 
hands of the workers and the 
state. That can change, but not 
until it becomes more clear to 
us what we want to do, and 
then well think again". 

■ Lattelekom 

Among the most radical moves 
the Latvian state has made is 
to band over its telecoms ser- 
vice to a foreigner. Though 
Lattelekom, the monopoly sup- 
plier of the telephone service 
to Latvia for at least the next 
20 years, is still 51 per cent 
state-owned, the 49 per cent 
which is owned by the UK’s 
Cable & Wireless and Telecom 
Finland provides much of the 
expertise, the capital for new 
equipment- and the managing 
director, Mr Gavin Jeffery. 

The joint venture came into 
being. at the start of the year. 
Western partners have 
invested $160m in equipment 


and cable, satellite diaTwa and 
switchgear - to provide a basic 
network for subscribers. This 
investment Is enough for a 
three-year installation pro- 
gramme: thereafter, moderni- 
sation will be financed by earn- 
ings. 

It wifi he, Mr Jeffery agrees, 
a dahcate business. Subscrib- 
ers have to apply for a new 
line, as if they were applying 
for a phone for the first time. 
They wifi then be charged for 
local calls (they are currently 
free, as was the case through- 
out the former Soviet Union) 
before any Improvement in ser- 
vice arrives. 

Lattelekom, because it is at 
the heart of the state provision 
and run by a foreigner, is an 
obvious target for nationalist 
politicians. “There certainly is 
suspicion of foreigners coming 
in and running the company," 
says Mr Jeffery. It's partly a 
linguistic thing - the people 
we work with had to speak 
Russian for 50 years, now they 
have independence and they 
have to lean to speak English 
because foreigners arrive. 

"But the Latvian govern- 
ment has tried to make the 
transition as smooth as possi- 
ble. There's a clause in the con- 
tract which says there will be 
no redundancies for three 
years - which gives us a 
chance to plan how to mirrim- 
ise the effect an staff” 




ate b 


vnKI> ( ’ 



Squeezed between two blocs 


Continued from page2 

and because it has been too 
weak to be anything but 
acquiescent; second, the main 
world states which had never 
recognised the Baltic states* 


incorporation into the Soviet 
Union moved quickly once 
they Alt they could to holster 
independence; and third, 
because political forces with at 
least the tacit support of most 
the bulk of the Latvian popula- 


tion have remained in power 
and have been able to. speed 
along a range of important 
agreements. Bnt there is Inter- 
nal opposition: it has come in 
the first place from the power- 
ful agricultural lobby, whose 


political voice, the Farmers* 
Union party, pulled out of the 
Birkavs-led coalition because 
it could not get stiff tariffs to 
protect farm produce - and 
that because the government 
was determined to bring cus- 
toms policy in line with the 
Gatt and EU requirements. It 
remains a serious lobby - one 
which is increasingly vocal. 



Oil & Petroleum Products - Export & Import 

VENTSPILS NAFTA 

OFFERS A COMPLETE RANGE OF QUALITATIVE SERVICES TO ALL CLIENTS 


The State Joint-Stock Company VENTSPILS NAFTA is the largest enterprise on the Baltic seashore 
dealing with export and import of o3 and petroleum products. Over 30 years, thanks to the co-ordinated 
efforts of highly qualified specialists, VENTSPILS NAFTA has earned a reputation for expertise in 
rendering the following services: 

- receipt - chemical analysis 

- storage - loading of oQ and petroleum products into tankers 


VENTSPUiJ NAFTA Terminal is renewing its services and reconstructing its units, that is why it is 
interested in cooperation with foreign firms in order to solve problems together on modern technologies. 


VENTSPILS NAFTA 
75, Tateu Street 
VentspQs LV - 3609 
Latvia 


Phone : + 371-36-62566 
+ 371-36-61015 
Fax: +371-36-24341 
Telex: 161856 VOTSU 


SAULES BANKA the right approach leads to success 


J oint stock company Saules Banka received a licence from 
Bank of Latvia on August 17, 1992. During the first year of its 
operations Saules Banka has developed Its product line and 
penetrated Into the Latvian financial market Share capital was 
31,000 Latvian tots (LVL). As of July 1, 1994 USD 1 = LVL 0-85. 
in summer 1993 the main shareholders of the bank changed; it 
provoked also changes in managerial structure. Mr Youri Schetinin and 
Dr Dmitri Koval, experienced financial managers, founders of financial 
corporation PAREX, became managers of the bank. Due to those 
changes, reorientation to another category of customers took place. 
Mainly export, re-export, energy resources, metal, chemical and wood 
Industries became the target customers. Corresponding accounts with 
banks in biggest industrial centres of Russia, CIS and Baltics were 
established. Short term credits of International trade operations, forex 
dealing, currency exchange and Documentary Credits were tire main 
sources of profit for the bank. Rapid growth started al the beginning of 
1994 when the bank reached No 15 ta the rating of Latvian commenaed 
banks (before changes it was only 48). The bank has placed great 
importance on the selection of qualified personnel. 

20 September, 1993 share capital of the bank was Increased to LVL 
500,000 (as of 1 August, 1994 LVL 1 = USD 0.545). Number of bank's 
clients and total turnover aid average volume of operations increased 
respectively more than 20 times. New computer software was 
Implemented aflcrwing our customers to perform financial activities from 
their offices. Reconstruction of banks head office (mertieval building of 
16th century) bulcfing was finished this year. 

Bank's trend is orientation to advanced technology. In spring of this year 
the Bank was connected to Reuters. The Bank actively performs dealing 
operations through Bankers Trust Co. and major European banks. 

In December, Saules Banka will be fully connected to swift 
network. The UNIX software product based (on IBM RS/6000 CIO) 
SWIFT Alliance was purchased and Installed. As a result of rapid 
growth, in September 1994 the Board of Directors has decided to 
Increase the share capital of Saules Bank up to LVL 3,000,000 (about 
USD 5.5 mfo.J. 


Also in September, Central Bank of Russia approved the opening of a 
representative office In Moscow. Saties Banka has representative 
offices in Mnsk, Kiev, Dnepropetrovsk end S. Petersburg. 

Latvia Is one of the moat successful markets for payment plastic 
cards among new regions Europay end VISA is entering. There are 
already 6 Latvian banks who are members of international payment 
card organisations. More than 2000 international credit cards have 
teen Issued during the last one and half years. Several domestic 
cards have been Introduced and Issued. Saules Banka is going to 
issue as own gold and mass Eurocard/Mastercard later Ws yaer after 
testing Its equipment At the beginning of next year, Sautes Banka is 
going to Implement Its ATM and POS terminals praject- 
Saules Banka Is increasing Its correspondent banking network In 
Western Europe and North America. Many foreign banks have 
chosen Saules Banka as their Correspondent bank in Latvia 
(Including Societe Generate, Privsfoank ate). 

Already today the head office of the bank Ib full to capacity. 
Therefore, 2 branches in Riga have been opened and an additional 
one wfl be opened by the end of this year. They wffl otter a fun range 
of bank's products and services. A business plan for opening 
branches in other cities of Latvia has been developed. 

Summarising, we can conclude that the bank is Investing in 
Infrastructure and buflding a techno logical and intellectual base for 
future development and success. 


SAULES BANKA 

AHCIJU SABIEORlBA 

Postal Address: 16 Smteu, LV 1873, Riga. Latvia 
Telephone: 371 8820403 

Fax: 371 8820346 

Telex: 161348 slbnk tv 

SWIFT: SAUL LV 2X 

Contact Persons: Mr Jurijs Naroznijs, Assistant President 

Ms. RvBttww Nloilanknva. ManooBr I n t Bn mtinmtl 



(Good morning) 




(Good morning) 


Good Mornings begin with SAS 
3 flights every morning. 

Scandinavian Airlines offers more flights 
between the UK and Riga than any 
other airline. 

Twice daily from Heathrow and daily 
except Saturday from Manchester. 

Call your travel agent or SAS: London 071 
734 4020, Manchester 061 499 1441, 


S€f 


Tbe way we are is the way you fly. 









FINANCIAL TIMES FRIDAY NOVEMBER 1$ 


LATVIA IV 


A guide to Riga for the business visitor 


Commercial life returns 



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Much of the old town is now bright with shops and eating places 


R iga has changed greatly 
In the 1990s. Its beauty 
had been hidden and 
decayed; ft was comfortless for 
the traveller, and the points of 
contact were grimly official. 
Independence has not yet 
brought it wealth, but it has 
begun to open the city np as 
local and foreign entrepre- 
neurs revive its commerce and 
cafe life. 

Hie City is teller with res- 
taurants, bistros and cafes 
than any other in the former 
Soviet Union. The old town 
streets are now bright with 
newly-opened shops and eating 
places. Its culinary traditions 
were damaged by the Soviet 
period but have not disap- 
peared. If there is nothing of 
the first rank, there are, nev- 
ertheless, places to eat which 
are pleasant and generally 
quiet 

Hotels are reasonable and 
courteous. The two big Soviet 
era hotels - the Riga and the 
Latvia - have been substan- 
tially remodelled and offer 
basic business services. For 
luxury, there is the Hotel de 
Some, just on the old town's 
borders. 

The city has retained orches- 
tras. an opera bouse (currently 
under repair) a musical thea- 


tre and many cinemas, which 
mainly show US films. It has 
some 20 museums including a 
splendid motor vehicle exhibi- 
tion which Includes one of 
Leonid Brezhnev’s many care. 
The Riga Circus is one of the 
oldest permanent shows in the 
world and has very funny 
clowns and great trapeze and 
balancing acts. The animal 
acts are indifferent 
Ail the mam countries have 
embassies in Riga and all 
appear anxious to assist the 
visitor who wants to do bnsi- 


Guide, an Export Directory 
and a monthly newsletter 
called Business with Latvia. It 
is a good place to start It will 
soon have new offices, bat its 
present numbers are (3712) 
288842 phone and (3712) 
282524 fax, and its enquiries 
manager is Ms MaJra Yes- 
mane. 

The government has created 
a department for working with 
foreign donor organisations, 
headed by an energetic young 
minister. Ms Indra Samite. She 
has developed a National 


Hotels in the city are reasonable and courteous. The two 
big Soviet era ones, the Riga and the Latvia, have been 
substantially remodelled and offer basic business 
services. For luxury, there is the Hotel de Rome 


ness. In addition, the Interna- 
tional Monetary Fund, the 
World Bank, the European 
Bank for Reconstruction and 
Development and USAid all 
have active offices and pro- 
grammes. The European 
Union's Phare programme is 
particularly active. 

The Latvian Development 
Agency is the government 
institution created to assist 
the business visitor. It pub-, 
lishes a Latvian Business 


Indicative Plan, which seeks 
to order ministries and depart- 
ments' priorities and to make 
them communicate their needs 
to the donors. Initial assis- 
tance was often misdirected 
and even harmful - especially 
grain credits, which were 
given to prevent a supposed 
famine which was never 
remotely likely. This must 
now he repaid. 

Latvians are used to speak- 
ing other peoples’ languages: 


nearly all speak fluent Rus- 
sian, and many speak some 
German or English. French 
and Spanish are less known. 
Interpreters are available 
through hotels. 

The airport, until recently a 
wreck, has been partly mod- 
ernised and is adequate. Lat- 
vian Air operates a range of 
services; SAS, Lufthansa, Fin- 
nair and CSA each have sev- 
eral flights weekly; Aeroflot is 
less evident, but still runs 
flights to and from Moscow, as 
does the new Russian airline 
Transaero (which has a Riga- 
London flight). Taxis usually 
ran on a meter but some do 
not, and tend to overcharge. 

The main religion is 
Lutheran, followed by Russian 
Orthodox. There is a large col- 
ony of Old Believers. The 
Roman Catholic community is 
large enough for the Pope to 
have made a visit There is an 
Anglican Church, and a syna- 
gogue in the old town attests 
to what had been a large Jew- 
ish community, while a vast 
memorial at the concentration 
camp outside Riga and the 
mass graves in the forests 
show what happened to a large 
part of that community - and 
to thousands of Latvians, Rus- 
sians and others. 


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T he largest issue in 
Latvia over the past 
three years of its 
independence has been the 
intertwined themes of its 
ability to establish 
independence from the former 
Soviet Union, the success of its 
efforts to secure the removal of 
the remaining Russian 
divisions from its territory and 
the construction of a 
relationship with its large 
Russian speaking minority, 
most of whom are not yet full 
citizens of the state. 

Many Latvians, especially 
ministers and leadi ng nffinaia 
say they find concern in the 
western media on this issue 
alarmist, a view held strongly 
by, for example, Ms India 
Samite, minister for external 
resources. A Latvian American 
who settled in Latvia three 
years ago, she says she has 
□ever been able to square the 
headlines with the tranquillity 
of the real situation. 

This points to a real and 
important misconception, if 
not quite the one which Ids 
Samite and her colleagues 
have in mind. It Is true that, 
since January 1991 when 
Soviet special forces opened 
fire on and killed Latvian 
protestors in Riga, no blood 
has been spilled, all 
demonstrations have become 
smaller and neither Latvian 
nationalists nor Russian 
secessionists make much of a 
splash on the political scene. 

The headlines were often, 
overdone but they point to a 
continuing and potentially 
tormenting problem for the 
Latvian state - how a stable 
state is to be built in a country 
where a large minority do not 
speak the majority language, 
do not share the culture, were 
part of the colonisation of the 
country and at least 
acquiesced in the repressions it 
suffered after the war, and 
may constitute a potential 
“fifth column’’ for a future 
Russian expansionist leader. 

Although this concern has 
no present means of 
expression, it is not to be 
wished away by reference to 
the present calm. It will 
require vigilance and active 
policies if the calm is to 
remain. 

Firstly, if the issue is 
1 dormant in Latvia, it has not 
been in so Russia. Mr Boris 
Yeltsin has several times 
raised in international forums 
the Issue of the suppression of 
ethnic' Russians' civil rights in 
Estonia and Latvia, while Mr 
Andrei Kozyrev, the Russian 
foreign minister, has talked of 
“ethnic cleansing” in these two 
Baltic states. 

A survey of attitudes among 
Russian military officers 
undertaken earlier this year by 
the German Friedrich Ebert 
foundation found that they 
considered Latvia to be the 
country most hostile to Russia 
- including the US, Germany 
and Turkey. Earlier this 
month, Mr Sergei Baburin, the 
strongly nationalist Russian 
politician, visited Riga to speak 


Society: relations with the Russian-speaking ^ y 
minority remain a matter for concern : 


Nationalist parties 

appeal increases 


<ss> 



m . i - 

.. 

mM 

v* 


Jt- USSR 


Latvian children In national coataane 


to a Russian society. Latvia’s 
independence is officially 
recognised but, it seems, still 
resented and its attitude to 
Russians feared and distr usted. 
Within Latvia, matters look 
different. No Latvian city of 
any size has a Latvian majority 
- reflecting the huge (in 


2,000 a year (ensuring that 
Russians were naturalised 
slowly, if ever) - has accepted 
that the “occupiers" can be 
citizens. 

This causes resentment the 
parties Of the nationalis t ri ght, 
which appear to be increasing 
their appeal still demand the 


A survey of attitudes among Russian military 
officers, undertaken earlier tins year by the German 
Friedrich Ebert foundation, found that they 
considered Latvia the country most hostile to Russia 


relative terms) shift of 
Russians to the urban centres 
of Latvia after the war, when 
the state was embedded into 
the Soviet system. In Riga, 
Russian is heard more often in 
the streets than Latvian, and 
although it has been three 
years since independence, it is 
the Latvians who are expected 
to switch to R ussian when the 
need arises, not the reverse. 

Yet, the Latvian parliament 
in summer passed a citizenship 
law which will allow all but 
those Russians suspected of 
crimes against the state to 
seek naturalisation as full 
citizens over the next five or 
six years. It seems that the 
new government - fearful of 
being excluded from the 
European Union if it clings to 
previous legislation restricting 
the numbers of new citizens to 


Population 


“three Ds - de-occupation, 
de-colonisation and 
de-Balshevisation”, according 
to Mr Nils Mujsnieks, head of 
an ethnic study centre 
financed by the ■ Soros 
Foundation. Mr Lauris 
Gondars, a leading theatre and 
film director, says that in the 
cultural sphere, “the Latvians 
and the Russians have their 
separate worlds and they do 
not really touch”. 

However, says Mr lWirigniekw, 
the accord between Russians 
and Latvians is real. “There 
really is a low level of conflict, 
and the interesting question is 
why? I think one of the reasons 
is that the non-Latvians are 
like many immigrants: they 
are politically passive, and 
economic rights are what 
matter to them. 

“Many Russians have 
benefltted from the growth of 
the financial sector and the 


. growth’. ■ of conwptioii: 
corruption- has mitte^ed the 
ethnic problem, if you- want to 
. stay and you haven't ^got a 
passport you can buy. nne:' if 
you need .a piece of' paper 
saying you are proficient in' 
Latvian, you can buy one, 

“The rhetoric ;ifr noisy t but 

- look .at .how :many‘ mixed 

marriages there are (one in 
five, nwre than. to any . other 
former ' Soviet republic). • 
Besides, the Latvians are: now 
in government, in culture< fa 
the country: the Russians- ire 
in finance and indnstry - so- 
you don't have jeeonomic 
competition.'’ I. 

Ministers, tend to see the 
issues less cynically.- Mr Vak&s 
Birkavs, r (he foreign mJmster,.. 
says that the Russians now see 
the. country as more pleasant - 
to live In than iKussia, while: 
Mr Maris Gailis, the -prime. ; 
minister,- points to the lade bf - 
ethnic-based politics as a 
triumph of Latvian tolerance : 
and civilisation. • •*' 

Yet, though . their 
pronouncements. . are - much - 
more moderate . than . the - 
sharpness of same of. their 
Estonian colleagues’ relations' 
with the. - Russians,. . there . 
remains amon g-' ministers and 
politicians a wariness -at 
official level at least - : a 
wariness which the rise; of 
Russian TtaHnnallHt pnKt-iHgTM - 
in the past year, has- done 
everything to sharpen. 

The best guess is that the 
calmness in this -crucial 
relationship wffl hold. If next 
year toes a steady trickle of 
Russians being registered as 
citizens, if the marked trend : 
towards : Russian-speaking 

- children being sent to Latvian 

schools in. order to learn the 
language continues, if Russian 
rhetoric remains merely words 
and the Latvian nationalists 
are likewise satisfied with 
speeches, - then.’ the two 
communities can probaMy.Bve 
in peace, ‘ if not in~' total 
harmony. • " • 

Latvia’s traditions : as the 
rich history of Riga shows - 
are those of a multicultural 
state, where German, French 
and Russian woe all spoken as 
much as Latvian in earlier 
years,, before It came in from. ' 
the country to become the 
language of thp nation 

When Latvians have grasped 
again the. reins of state power, 
they will need to re- fashion 
that m ulticultu ral heritage in 
new conditions if they are to 
avoid the communal backlash 
which other states, less 
fortunate and less tolerant, 
have experienced at the end of 
empire. 



I960 

1991 

1992 

1993 

Population (mBBon) 

2.667 

2.667 

2.667 

2.606 

by nationafity %: 

Latvians 

52.0 

52J5 

53.5 

54^ 

Russians 

34.0 

34.0 

33.5 

33.1 

Belorussians 

4.5 

4.4 

4.2 

4.1 

Ukrainians 

33 

3.4 

3.2 

3.1 

Poles 

2.3 

2J2 

2 2. 

22. 

Others 

3.7 

3J5 

3.4 

23 

Marriages per 1,000 

23.6 

??.a 

iaa 

148 

Divorces per 1.000 

10^ 

TT.1 

14^ 

108 

BMhs 

37^16 

34.033 

31.569 

28.760 

Deaths 

34.812 

34.749 

35,420 

39.197 

Immigration 

32285 

14^84 

8.199 

4,114 

Errbyaijon 

40.991 

25,480 

53.130 

31898 

Pofsjtetton change 

-5.600 

-10.912 

-50,782 

-40822 

Life expectancy 

at Urth.total 

69.5 

89^ 

68.7 

678 

Men 

64.2 

63.8 

613 

618 

Woman 

74.6 

74 A 

74.8 

738 


1 P§ Dw*t -test 



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FINANCIAL Times FR.DAY 


MW *ET REPORT 


NOVEMBER. 18 1994 


LONDON STOCK EXCHANGE 


**Ptie fl? fit " takin 9 triggers small setback in equities 

P®On Dealers described veSterdQV'S Where. A technical annlv.ct nt nnp nf tar threatening to call a Iteneral nf that total The 702m mas ii 


Ml't Just 
ieBaltg 


i' t 

(“* B J V 

v ■ ' 


ion CDIt ^ 


sOMi^ 

facte 


Sank 


vrt&. 




u,-. v *.£s-^a-_t^S 


jW 


. raa , rket ™» ‘"to 

SriSfLdL? 1 uncertain showing 

sr&ix 

national markets. 

m I?wt Weakness across European 
markets spread to Wall Street 
"Jjch opened on a lacklustre note 
.“ )nh f lu ^ to lose ground after 
ta?**? , < ?°* ed * when it was show- 
UJJ ^ of 24 joints on the Dow 
Industrial Average. 

. ET-SE 100-share Index fin- 
ished another lively session 19.0 
|°” er at 3,L27,5 - Tbt second line 
JfJS® 5 were much quieter and more 
resilient than the leaders, with the 
PT-SE Mid 250 Index settling a net 
6.2 down at 3,576.6. 


Dealers described yesterday's 
action as a “consolidation" rather 
than a poor performance, pointing 
out that the FT-SE 100 had risen 
more than 70 points since the start 
of the week and in the face of a 
steep rise in US interest rates. 

"Although there was a flurry of 
selling in the late afternoon, it 
never felt as If the market was 
going to crack on the downside,’’ 
said one leading trader. 

He added that the London market 
would probably continue its consoli- 
dation phase today but that short 
term the outlook remained positive. 
“1 feel we will make good progress 
next week and we could well test 
the 3.200 level,” he said, although 
he noted the strong resistance in 
the market as the Footsie moved 
above 3.155 on Wednesday. 

That view was mirrored else- 


where. A technical analyst at one of 
tho big UK in t ergrated houses 
pointed out tliat volumes in futures 
trading on the two sharply advanc- 
ing days this week were more than 
twice the level of yesterday, indicat- 
ing that the momentum factor was 
strongly on the upside. 

The ET-SE 100 opened marginally 
easier and made a half-hearted 
attempt to go better, reflecting Wall 
Street’s resolute performance over- 
night The move quickly ran out of 
steam, however, and share prices 
slipped away as news of stagnant 
retail sales in October, confirming 
similar evidence Grom last Monday's 
Confederation of British Industry 
survey, filtered into the market. 

Analysts said sentiment had been 
additionally affected by the latest 
political unrest in the government 
which resulted in the prime minis- 


ter threatening to call a general 
election unless the Euro rebels in 
the Tory party came to heeL 

Thereafter there was virtually no 
respite for the market, with prices 
drifting back, ignoring intermittent 
bouts of support and then moving 
decisively lower as US markets lost 
ground. 

The dollar was seen as the main 
cause of the weakness on Wall 
Street falling sharply in spite of 
another batch of economic data 
pointing to deflationary pressures 
in the US. The Call in US housing 
starts and a surprising decline in 
the Philadelphia Federal Board 
index bemused analysts. 

Turnover yesterday was well 
down from the buoyant levels of 
Tuesday and Wednesday, reaching 
702.6m shares, with non-FT-SE 
stocks making up a high 65 per cent 


of that total. The 702m was inflated, 
however, by a long list of bed and 
breakfast, or fax-related, deals, 
which accounted for turnover of 
well above 60m shares, or getting 
on for 10 per cent of the total 

The merchant banks with big 
market operations were among the 
best performers yesterday. S.G. 
Warburg, the UK’s flagship invest- 
ment bank, raced higher again, but 
closed well off the day’s top as deal- 
ers said the rise was more a reflec- 
tion of the break-up value of the 
bank and a strong push by one lead- 
ing broker, rather than any sub- 
stantial takeover rumours. 

Builders merchants were the mar- 
ket’s biggest casualties as Meyer 
International caused widespread 
glooom in refusing to increase its 
interim payment and preaching 
caution on second-half prospects. 


FT-SE-A AB-Share Index 

1,625 x — — 

1.500 — V • 
w ? 5 ‘ Y - 55 - '- i 

SoweftFraapMh 1994 

■ Key Indicators 
tmflees Md ratios 


Equity Shares Traded 

Tisnovw by vofcaiw MBon). Exducfing: 
Hra-martet Dudnesa and overseas turnover 
1.000 ■-■■■■ 



FT-SE 100 

3127.5 

-19.0 

FT Ordinary index 

2406.7 

-11.9 

FT-SE MU 250 

3576.6 

-6.2 

FT-SE-A Non Fns p/e 

1A76 

(iaa4) 

FT-SE-A 350 

156a 7 

-8.0 

FT-SE 1 00 Fut Dec 

2135.0 

-163 

FT-SE-A AO-Share 

1553.02 

-7.18 

10 yrGDt yield 

8-66 

IS.63) 

FT-SE-A AB-Share yteid 

3.92 

(35C0 

Long gOl/equity yld ratio: 

233 

(233) 

Best pci forming aectora 


Worst perforating sectors 




+1.1 



6 



+0.4 






. +03 



-13 



_. +03 



-1.1 

5 Textiles & Apparel ... 

i.r, , 

+03 

5 Building Materials 


-1.1 


Chemical 

margin 


Chemicals group Courtaulds 
fell sharply after a leading 
agency broker turned cautious 
ahead of interim figures due 
next week, highlighting the 
surge in raw material prices. 

Spot prices for the chemical 
used to make acrylic fibre has 
risen by almost 50 per cent 
since the early part of the year, 
and wood pulp, which is the 
basis for about a third of 


Courtaulds' sales, has doubled. 

Courtaulds buys materials 
on a less volatile contract 
basis, but James Cape I said 
spot prices are an indicator of 
the general trend. Analyst Mr 
David Ingles commented: “This 
margin pressure is real and we 
have to get over that before we 
can be more positive.** The 
shares fell 14 to 450p. 

Builders crumble 

Building materials and con- 
struction shares, one of the 
stock market's more visible 
Cinderella sectors, ran up 
against further negative news 
following disappointing inter- 
ims from timber specialist 


EQUITY FUTURES AND OPTIONS TRADING 


Stock index futures moved 
lower, but there was little real 
sense of direction to the 
session and trading volume 
was low, writes Jeffrey Brown. 


The FT-SE 700 December 
contract was standing at 3,136 
when pit trading came to an 
end, down 16 points, eroding 
some of the advance of 79 


■ FT-SE 100 MD6X FUTURES flJFFE) £26 per Ml Max point 



Open 

SeO price 

Change 


Low 1 

EsL voi 

Open Ira. 

Dec 

31633 

313S.D 

-1B.D 

3165.0 

3126.0 

11202 

50238 

Mar 

3171.0 

3151.5 

-16.0 

31713 

3161.0 

44 

47G3 

Jim 

3192.0 

3173.0 

-160 

31923 

3192.0 

SO 

95 

■ PT-SE MB) 280 INDEX FUTURES (UFFE) CIO per fed Index point 



Dec 

- 

3595.0 

-75 

. 

- 

0 

4165 


■ FT-SE MID BSP INDEX FUTURES jOMUQ CIO par Ml Indent point 

Dec - 3686.0 - - - - 0 

AS open Intenrat Agues we (or pmtous day. t Exact «duna Shown. 

■ ft-se loonmet option (uffei niffi Cio per fan Me* t*** 

2860 3000 3050 3100 3160 3200 3250 3300 

CPCPCPCPCPCPCPCP 

Hot treb 1 IZBJj 1 TVi t 30>2 2 3 M>2 1 74 1 124 1 1474 

DK 280^14^ 158 23 12V2 35<2 Mfe S3lz 58 7B 38 107 23>j 143*? 12> 2 185 

Jm 229 34*j 191*3 47 1S4 60** 121 78*2 98*j 100 88*2 128 4712158*2 35 198 

m 244 42*2 207*2 56*2 171*2 70 1421290*2 113 112 90*2 140*2 ®*2 171 52«a 208 

Junt 257 93*2 199 134 149 184 108 243 

cm 10&B tott 3JBSS 

m EURO STYLE FT-SE 100 INDEX OPTION (UFFH&iO per Ml Indw point 

2975 3020 3075 3129 3175 3225 3275 332S 

Hot 153*2 1 W4 1 55 1 a#«2l0% 1 47 1 96*2 1 146*2 1 196*2 

Dec T78*a 19*2 1» 2Bla 188*2 44 73 63 48 88 28 n8»a 1«>a 1S5«a « 197 

Jan 20212 36 195*2 481a 134 66*2 105 88*2 81*2112*2 B9 140*2 44 174*2 31 210*2 
MV 198 74 137*2111*9 90*2 162*2 * 226 

Jutf 243*2100*2 185*2 138 W IK 96 242*a 

Cafc liar Puu 1 J«S ■ Ufctafetog Ms ***. nvakm Cdm are Meed on mmk pin. 
t Long MM cspky nwon. 

■ EURO STYLE FT-SE HD 260 OPEC OPTION (QMDQ CIO per ftiB index point 

3400 3450 3600 3860 3600 3860 3700 3750 

Dec 9B*z 5D\ 71% 73*4 50*f 101% 

cat 0 Putt 0 SHftnmxX orices sod tesnw an Man V OOnn. 


Meyer International and cau- 
tious annual meeting state- 
ments (ram housebuilders Bar- 
ra tt Development and Raine. 

Meyer tumbled 44 to 359p. 
The company's interim profits 
fell short of analysts' estimates 
but it was the warning about a 
second -half squeeze on sales 
that triggered the sell-off 

UBS reduced its estimate of 
full-year profits from £56m to 
£55m and. more significantly, 
came down to £67.5m from an 
earlier £72. 5m for next year. 
Other builders merchants suf- 
fered in the backwash. Plumb- 
ing groups Wolseley and 
Travis Perkins fell 12 apiece to 
778p and 288p respectively. 

In spite of a 16 per cent rise 


points recorded over the 
previous three days. 

At this level the premium to 
the cash market was 9 points, 
while die fair value premium 
was just above 7 points. 

Trading was mostly 
uneventful. Two-way business 
was thin at best and dealing 
sizes narrowed sharply. 
Contracts dealt tailed off 
steeply from the high levels of 
the previous two sessions. 

Volume was 10,522 
contracts, but more than 3,000 
of these were pushed through 
In the Anal 30 minutes of 
official trading. Some 16.000 
lots were traded on 
Wednesday, while Tuesday’s 
number came dose to 20,000. 

The fitful nature of the day 
was reflected In a trading arc 
of 40 points, with the 
December contract fluctuating 
between a bw of 3,125 and a 
best of 3,165. 

Traded option volume also 
declined, moving down from 
Wednesday’s 56,430 contracts 
to 30,506. FTSE and Euro 
FT-SE trading accounted for 
less than 20,000 lots. 

HSBC was the most active 
stock option with a modest 
800 lots, followed by Barclays 
and Vodafone. 


i-T - SE Actuaries Share Indices 


The DK Series 


Day's Yaar DM. Earn. P/E Xd ad). Total 

Nov 17 digaM Nov 18 Nov 16 Nov 14 ago yteW% yield* rgto ytd Hetran 


FT-SE 100 3127. 

FT-SE MM 250 357S 

FT-SE Md 2SD ax few Trusts 3577. 

FT-SE-A 3GO 1568. 

FT-SE SmaSCap 17M.S 

FT-SE SmalCap ax bw Trusts 175S.t 

FT-SE-A ALLrSHAAE 1553.0 

■ FT-SE Actuaries All-Share 


-4X6 3144X5 3135.4 3095a 
-02 358&B 3500.7 3538.1 
-02 3583£ 35832 3541 JJ 
-05 15707 15702 1552.4 
402 1788.87 17B121 1777.92 
*02 175224 174045 174048 
-4X5 158020 T 563.90 153721 


31205 4.10 721 

34525 351 5.78 

3447.9 357 623 

15507 3.90 073 

175729 321 429 

173524 051 520 

(539.37 322 8.8 0 


10 MNERAL EXTRACTlONfia 

12 Extractive Industries* 9 ) 

15 OK. Wagratedp) 

16 08 Exploration & Prodni) _ 

20 GEN MANUFACTURERSCBB7) 

21 BuKSng 4 Ccn*nxlian!33) 

22 Bufldng Mata & MerctaPZ) 

23 Chefrtcate(231 

24 Overatflad indu&tfabdG) 

25 Bedrante * Sect 6quW*4) 

26 Engbwsmgpl) 

27 Engineering- VeWcfawflZ) 

28 RrWlns. Paper A Pckgf2$ 

29 Tcwttea 6 AffigraSa 

30 CONSUMER 000030*7) 

31 Breweriesil?) 

32 Spirits, Wines & CWeraflO) 

33 Food MonutactJJrara(2a) 

34 Household GoodglS) 

36 Heaitfi Carafti) 

37 phajmacouUcalsf12) 

38 Totwccop) 

40 SERMCEStnO) 

41 DtatributoraPe 

42 Lsisura 6 HotalspS) 

43 MecU(39) 

44 Retailors. FoodCtO] 

45 RotaHers. Gmond(45) 

48 Support Senriosat*!) 

49 TransportflB) 

Si Other Services & Bnajnesspj 

eo rniuTiEsew) 

62 EteqWdtyfiT) 

84 Qas Dobtoutiong) 

88 Tetecommunteatlonsfcl 

88 WateriHS 

tw WQW4aW *CtA12W371 _ 

70 FWAHC1ALS(10e 

71 BanteliO) 

73 Msurancef17) 

74 Ua Asamnouffl 

75 Mo r ch ant Bimkj(8) 

77 OOwr Fktaneiexet) 

79 Prooerty fi'fl _ 

go WVESTM aiT TWSTS(ia4L_ 

89 FT-SfrA AU.-SHARE(986} 


Days Year 

Nov 17 chg&» Nov 16 Nov IS Nov 14 ago 

270920 -a5 2722.02 272220 2876X0 241320 

3839.70 -0.7 3886.47 3872.7B 3788.62 3142.10 

288055 -05 2fifl3u20 289221 264052 2382,30 

1873.10 1873.79 1872.88 1863,42 190920 

189449 -07 190746 1B9823 188223 1904.70 

104027 -12 1057X0 1051.81 1047.18 1136.70 

1872.68 -1.1 189228 186S28 185323 190CL00 

231228 -02 2331.99 2320.08 2297X4 209820 

179329 -12 182026 18(127 1799.15 200320 

189126 -04 188044 188928 1881.45 2059.90 

183828 *02 183221 1824.19 1819.90 169320 

237827 -04 238083 232224 2304.62 1988.40 

2S5745 *02 285228 2B4822 2813.10 243320 

157748 *02 157343 157122 1S60.78 189320 

2777.01 -02 2798.13 2789.10 278S41 2770.40 

2214.99 -02 222828 2227.78 221828 202720 

2848.07 -1.1 2877.75 286422 283028 272090 

2307.00 -0.1230820 228097 228823 230020 

2364.71 403 235721 236050 234528 264070 

ISO 827 -02 158324 158943 157013 1B8220 

308320 -IX 31 1527 31 1820 308224 3078.40 

3883.17 -12 391321 384220 377028 420020 

193520 -02 193044 1931.48 190024 188070 

2558X8 402 2581482517X4 250128 265060 

208822 401 208024 2079.70 2082X0 193220 

289147 -04 2902.10 2888.81 2868.83 260090 

178044 *02 1 7874 T 7782.(6 175437 1578.30 

163420 -0.1 1636X9 1832.89 1605X7 1722.30 

162541 -0.1 152083 1531.11 152025 159640 

2274.19 -02 2291.61 2278X5 225225 2313.70 

1263.78 -03 128727 1280,58 126058 1205.00 

244924 -02 240424 2446.14 241119 2472.70 

2582.89 404 2572.14 258075 254529 2165.40 

2005X3 -02 2016X9 20112S 19S428 2154.70 

2034.78 -04 2043.79 204521 2017.08 230640 

187224 -n s *«» ™ 185^ 81 1B2&78 184720 

1673.78 -02 1661.73 167542 I6S721 164022 

222942 -05 224033 2230.06 2206.71 2292.10 

297448 -02 2997X4 2978.06 29^.05 2878X0 

124&S2 -02 1240® 1244X1 125053 143120 

2391.09 -04 2399X1 241823 2396.04 2614.40 

2869X7 +1.1 2837X0 2771.73 2703.42 3068X0 

1897.77 -02 190221 188031 1865.72 170440 

1432.19 -02 1434X4 144SL39 144026 170140 

277046 -0.1 277224 2748,46 272621 2688.80 

1553.02 -A5 156020 1553X0 1537X1 1539X7 


Year Dtv. Eon 
opo yWd% yteUH 

413X0 3.48 5X5 

1142.10 3.34 5X4 

392.30 323 5.60 

909X0 222 t 

904.70 4.07 5.19 

136.70 321 529 

900.00 3X9 521 

090.80 4X7 4.55 

00X20 5.11 5.13 

056.90 3.96 6.63 

693X0 328 528 

969.40 421 147 

143320 3.04 5.43 

89320 427 6.82 

778.40 423 724 

027X0 429 7.77 

725.90 3X2 6.79 

200X0 425 721 

1648.70 327 7X7 

B82X0 3.1B 340 

107940 427 6.98 

20020 022 8X0 

886.70 322 6.49 

1666.50 3.70 7.17 

932X0 322 4.73 

1806.90 241 5.19 

57030 3X4 &W 

722.30 327 6X9 

595.40 379 8.48 

1313.70 3.74 621 

205.00 4.00 3X8 

-472.70 427 7.76 

1165.40 322 8.72 

H 64.70 5X7 t 

30640 4.16 7.70 

84720 525 13X5 

64822 3X1 640 

292.10 4.34 074 

1B7BX0 4X6 9X5 

431X0 5.45 9.45 

014.40 525 7.80 

06020 322 1001 

704.40 066 821 

70140 427 4X3 

688 SO 222 1X4 

538X7 3X2 6X0 


1063 114X8 118015 

20.94 12029 1339X4 
1949 125.77 1337 XS 
1722 5649 121928 
2522 5124 138325 
23X4 5320 137129 
fOOO 55.16 1227.79 

P/E Xd ad). Total 
ratio yld Return 

25.04 89.83 1093.75 
23.14 9822 1059.54 
2222 98.44 1108X8 
t 38.03 1083.75 
2323 88X7 969.69 
2444 38.57 820X9 
2328 70X7 888.76 
2741 70.58 102001 
2341 82.75 922.44 
17.98 61.88 82721 
21.85 5420 1054.72 
80. DOT 92 54 1162-62 
2147 77.09 1127.07 
17.98 61X9 900X4 

15.94 111X1 861 XB 
15.62 6147 992.42 

10.95 101X3 957.96 
15.19 8a47 974.86 
15.71 8098 85035 
4123 4024 926X3 
16X6 133.07 98920 
12X7 217.07 88122 
1063 56.61 954.73 
1849 8525 M1X4 
24.B9 57.88 1032X8 
2248 70.14 100622 
1X82 58.32 1078.11 
17X5 52.76 879.89 
iai8 3015 931-23 
1099 67.01 896.18 
4092 28X3 109014 

16X5 89.76 949X4 
1227 101X5 1082.19 
t 11X82 94216 
15.79 50X2 867.70 
024 79X3 941.05 
1078 58X6 M8&88 
13.27 90X4 887.53 
11X9 11039 89420 
12.10 01.81 88090 
15.84 127,82 925.38 
11 Xfl 97.76 888.57 
1429 64.85 101066 
27.67 45.12 82125 

5013 5018 833-35 
IBM 55.16 1227,79 


■ Hourly movements 

pp g n 9X0 10X0 11X0 12X0 13X0 14X0 1SX0 18.10 IQflhMay Low/rtay 

— 1 SUSA 31409 31392 313&8 31X7 31382 3136X 31374 31X7 3151.1 3125X 

asai4 3586X 3582X 35822 35814 35803 3S79X 35802 35702 35807 35701 

pfS-AffiO 15703 *5700 1573X 1573.7 16722 1S72X 1S722 1572.9 15604 15782 15600 

Dm, « FT-ffi 1» "L 12 *" *** l0W! 0,sm ' FT ‘* E 1094 SHaa{ M 1 ** ^ 

■ FT-SE Actuaries 350 Industry baskets 

son mxo 11X0 12X0 1300 14X0 15X0 16.10 Closs Pravtous Change 

” 7'ZZZ, inni n 10002 BKL7 9®4 X7X 0642 8X9 8839 9809 B83X 10002 -18X 

adg & Cnaren tuu^ R ^ 30 ^ 30649 3053.1 3056.1 30884 -323 

Ptermacauaaa 18?Sj4 i8803 1861-6 18709 18703 18706 10702 18703 18807 -102 

3 ^g ffwas 30172 30122 30154 30162 3015X 3015.7 30T02 30122 38362 -232 


LkriuAOna* 


KM FT-SE Actuate Stw kiSHs b pubHvd to Osuntty Ihubs. Uds d Mrstaueob n mMAi fcwn The Flnoiwd Tlmra 
Lo«»»3El SHm T*» FT-SE Aebralra Sm htscra Bttvtn, sttch corns • nttraM tttetone and pqper-tarad 
U"^«4 fara FWSTXT, RtawHoras. 13-17 Epwrtti Street. London K2A 4flL 

n» FT-SE lOft lt» FT-8E Md 2S0, FIXE Acti^rtBB 3S0 Hid 1t» FT-SE AcMnea WNaby 
1MFT ^^-^ tirSl?----^--4«nAftiJra^MaMUiA«(HngdM^RraJ*iiillraa«langSi»rT^EW3iiartMAFai»«Wacb 
b " lll *! # TM m unva both Is wrtvnMw ihs hsom « ActubM nd tna Fncu«y ol Aauarisa aider • nmdvd V tpound 

S^«s IWW Ktoflto" md RrxAIc ol WbnJ Ui*»d IBM. ® Ths ftraiCW Tuns UnM 19M. u rigto israrwO 
® initt m2* mris rad raracs nratai o( iho London Stock Entrata* and Th, FtancW Tkms UnbniTh, FT-SE Actumoo Sncra 

* Ff ' aFw ^£rii^TSiiSlCg(Wwy.1McterP««sttMnisaar(liwao«ranw«Wwtl!WBii»9BwnBgMiis. 


in final completions for the 
first four months of this year, 
Barrett eased 6 to I73p as the 
market focused on what the 
annual meeting had to say 
about generally weak house- 
building margins. Raine 
retreated 4 to 47p and Beazer 
slipped 5 to 135p. 

Willis rumours 

Takeover talk in the insur- 
ance broking sector refuses to 
go away and yesterday saw 
Willis Corroon, one of the sec- 
tor leaders, move ahead 8 to 
I46p in spite of a sharp slide in 
interim profits. 

Once again, the word among 
the dealers was that HSBC, the 


■ Major Stocks Yesterday 

Vot Ckwng Days 


M 

ASanoRMpt 
Abbey Moflanatt 
«MMw 
MM Donwcqf 

AngMn tVWw 
Argos 

Argyll &oupt 

AnoVAnomi 

Assoc. BHL Foortsf 

Assoc. BitL Cons 

BAAf 

BAT IndS-f 

BET 

BtCC 

BOCf 

BPt 

BPB ka 

SI* 

BTRy 

Bank of Sooitantft 

aoudiobt 

Booker 
Booat 
P ow o wl 
Brt. A«05pac*f 
MWi AkmyVf 
Brtwui i3aarf 
BraWiLnd 
BnWii Snslt 
Burx» 

Bunah Oastmlt 
Bulan 

CaUoA Wk«t 


am 


draw 

as? 

333 


IffM 

BM, 


1300 

450 

-i 

3.000 

43 


1.000 

eoo 

-19 

(.mo 

sas 


Ml 

3S7 

<3 

IJOO 

971 

-3 

9300 

576 

(1 

1B0 

557 

+4 

3.400 

278 

+1 

5.100 

49C 

-7 

5,900 

481 

-S*J 

7jxn 

105 

-1 

2W 

350 

-2 

IBS 

723 

7* 

4,600 

457 

-*2 

130 

310 


4,800 

MO 

-1*7 

0.700 

306 

-8 

Sjxn 

9(7 

-1 

6>oa 

604 

-IZ 

1300 

534 

-7 

1800 

309 

#1 

ISO 

411 


1.100 

5(4*J 

-='2 

512 

459 


(73 

465 

-0 

3.700 

385 

-1 

7,nn 

302>z 

-s 

763 

395 

47 

3.400 

(57 


83 

IIP 



in 861 
S20O 73 


Cutxsv Sctwappoot 3.700 4W 

Cmiait 34 00 284 


Carton Comrm.1 
Coate vtyalu 
Comm. LMont 
Cookson 
CounaxMst 
DoNny . 

Do Ua Huef 
Dbiona 

Eastern EJecL* 


B 82 889 H 

4X00 202 *l*i 

1.500 533 -15 

895 240 -8 

1400 «0 -U 

TO *23 

583 1012 -S 

1,700 187 -I* 

1400 810 


East Mhflond Bnct 1000 630 

BWWc n M 73 473 

Big China Ctoyo 821 347 


EntOrprtta Oft 
BsWunmil Unts 
RO 
Ftwns 

Foreign 4 CdL IT. 

FonaT 

Crtn. Aaadanrt 
OMvm Bectf 
Cta»ot 
OlynniM 
OWBKfat . 
Grena Mh-t 


Gumraut *.100 *68 

H3SC (7Sp SIMt 1400 755 

Harancraon C6 341 

Hansont 3.500 240^ 

HBMsons CnaOaiO 1X00 >44 

HSW 776 283 


38 379 -1 

498 283 -3 

10.000 168 *« 

3.700 127 *1 

1^00 (37 -1 

2J00 234 *1131 

1500 572 -2 

1.700 2W.V -ab 

5.900 815 -ID 

541 346 -2 

T.7IM 520 -5 

2400 410 -7 

1.300 666 -8 

1.900 193 n 

1.400 633 -O 

4.100 468 -1 

1X00 755 -7 

26 341 

3X00 230*2 -2 


rat 

Hcbc a pal 

Johnson MMMy 

WngWurt 

KwASsm 

UWbmfcat 

Land Ewaottwt 

txvoiu 

Logal A Oeneralt 

Uoyds Abba, 

IMyttaflar*}' 

LASMO 

London Bn. 

Imtn 

Lucid 

MBPCt 

MR 

Manmb 

Morta & Spanoert 
MhftnbBacl 
Monlaon (Wm.) 
NFC 

NcoWesI Benkt 
Nauonal Powwf 

N«rrt 

North West Watot 
rksiham DooL 
NOflMm Foodst 
Norenb 
FansanT 
P« Ot 

Plktagtcn 

PtM«G«it 

PtudBralatt' 

WrtCt 


983 175 

44 328 *1 

1X00 780 -7 

834 44S *3 

102 578 -I 

1.600 475 

288 582 

10X0Q 100*2 «*2 

A500 «M -2 

192 722 -4 

667 437 

1X00 335 

1.800 S90 »J 

SJOO 147'j *1'2 

262 725 -7 

9J00 163 **2 

2J00 2T1 *4 

885 404 -4 

1X00 143 -<2 

1.000 sn #9 

ZStXl 412 ,2 

239 787 -7 

W5 1M -2 

2700 178 -1 

5.700 579 -2 

7.100 511 *7 

781 25S *2 

728 580 

93 826 *7 

2.700 216 -1 

113 815 

925 8 18 -5 

374 637 -4 

8*1 187 -1 

*J00 504 *3 

1.300 320*2 -3*2 

168 998 -13 

2.200 852 -7 

7.000 231 -1 

6.000 417 *1 

1.000 572 »2 

1.100 479 *4 

178 787 -I 

551 238 

1.500 485 -3 

0.000 162*1 <4 

621 449 

2.900 288 tj 

2.7 00 424 .4 

6 1413 ,3 

220 509 -2 

1^00 332 *6 

2.700 3E0 

8JOO 108*7 -2 

8.000 148 -1 

303 430 ,2 

614 570 -5 

1800 707 -5*J 

1.000 50Q ,2 

a. too 2 27 

616 465 -1 

B80 148 -*j 


Rank CVat 8/m 417 *1 

Rack*! & Daman/ iffX 572 >7 

Redondt MOO 479 *4 

FHMMLt 178 707 -I 

RareoMI 581 238 

nuMrrf 1.500 485 -3 

RoycaT 0.000 162*2 <4 

Ryl BK ScoHrnctt 621 449 

Hcm* hommf 2.900 288 ri> 

SoOntMyt 2.7C0 424 * 

SflwMoml 8 1*13 *3 

SconMi & Nm.t 220 509 -2 

Sent Hydro-Deet. I^M 332 *6 

Seotnah Powarf 2.700 3£0 

5*»*t 8 200 108*2 -2 

Sodowtt* 0.000 148 -1 

Swboonl 303 43C ,2 

Severn TrenTf 614 570 -S 

Shafl TranracsTt 3.W* 707 -5*j 

*J«« 5« ,2 

SkmrghBO* 3.100 2 27 

SmmilWJl) 816 485 -1 

Smlfli & Neobewt 880 148 -*i 

EmKI Beectyomt 3^00 42B ,1*2 

£*nlO Beetham uat 0.700 392 *3»j 

SmatoHdk 354 4M 

Soumem EJackt 5ffl 818 -6 

Seutfi WSIbs Bod IDO 822 (7 

South Weal Water 103 504 X 

South Etod 57 801 *5 

Southern V»anw 292 698 -6 

aanianl Chanel t 1 3W 304 »3 

Sunmusa 2.300 218 -*i 

SuiAUmt 1.«« » « 

TAN M02 22fi -4 

TIGrtMit 772 375 -1*2 

TB8t "2 

Tarmac 2200 128 -2 

TmeALyM 866 444*, ^1*2 

Twtor Wooettwr TO i?» -a 

Toscot *^*0 751*3 

nimren Watort 1 - w0 «*? -J*J 


Smatamdk 
Soutnom ElacLt 
SuUii water Bod 
South Weal Water 

South wan Bod. 
Southern Wow 
aumaniChanat 

Sttjmnousa 

Sui AMnevt 

T4N 

n Gimri 
Tset 
Tarmac 
Taie » LyU 
Taytor WotxSout 
Toscot 

Thames Watorf 
Thom EMTt 
TomMrof 
TraMBa* House 
UHgras 
Urtavart 
United Oaeaist 
Utd. NantMpera 
VodMonat 
WaitMng (2G)I 

Wabannat 
Waisti Waft* 
Wessm Wour 
VMatbrodt 
Wlians Hiafli-t 
VU»8 CcrTOun 
Wmpay 

Yorkshire Qetl 
Yotaahft (Malar 
Zenecat 


623 992 -8 

£.000 218 -C 

968 8< 4*1 

1.400 382 *5 

1.000 1128 -8 

JM8 31B -1 

408 520 -10 

5.400 214 -1 

1,000 083 <12 

262 880 -12 

302 670 -5 

460 315 -€ 

650 551 -3 

592 355 

1.500 146 tfl 

047 TO -5 

1JO0 778 -12 

427 745 -2 

3CP 545 t! 

2.300 861 -14 


BaeM on tracing volume to« 4 u*acnon ert mayc* 

saGuHae danR ihmifin tlw SEAQ cnt«™ 

yeafenfey ueil 4 30pm. Trades o( <M iptk/nor 
m«» Bra wuMM dMM t *"*»*“ <*" PT S* 
100 ndas conoiniHmi 


Hong Kong bank which until 
earlier this year had a 6 per 
cent stake in Hogg Group, was 
interested. 

Speculation has been fuelled 
by the recent takeover of 
unlisted Jenner Fenton Slade. 
However, there was also a 
boost from a Willis statement 
that it would reduce costs by 
£30m without hitting earnings. 
The group is expected to sell 
property and make staff cuts. 
HSBC shares fell ? to 755p. 
Elsewhere in the sector, bid 
talk also surrounded 
C.E. Heath, 8 higher at 248p. 

Electricity generator 
National Power was one of the 
day's strong market features 
after the group surprised the 
market with news of a share 
buy-back scheme. 

The shares closed 8 ahead at 
Slip as the market celebrated 
the announcement that 
National Power intends to buy 
back between 6.5 and 8 per 
cent of its share capital when 
the government sells its 
remaining 40 per cent stake 
early next year. 

The news, which came with 
publication of better than 
expected interim profits, had 
not been expected until after 
the government sale. 

However, there were reports 
of concern among several insti- 
tutions about the tax implica- 
tions of the move. Sentiment 
was also dampened in some 
quarters by the 18 per cent 
increase in the dividend which 
paled alongside the 26 per cent 
increase offered by PowerGen 
earlier this week. Powergen 
put on 3 to 564p, in trade of 
43m. 


NEW HIGHS AND 
LOWS FOR 1994 

NEW HUMS (30- 

UNN8 m Banco OSws Uasega. BHEWEBMBI 
ni Regent bn CWM2ALS [■) Ante 
Maaral, OtSTMBUTOftS Pi Adam A Harvry. 
MkfeOasax. Tntffl. ELECTAMC 8 ELECT EQUP 
(3| Encsaon OMI. UcnM. Nstoa Pit. 
EMONEERMa PI Bojtim ICJ. Uncw. Spra 
•5am. CXTKACnVC nSH OS) Anglo American. 
Cenm Cwfia. Jahcnnasug, Randoi. 
DWESnaENT TWUBTS. (1) LEMURS A HOTELS 
(1) London cubs. OH. EXPIOKATKM B PftOO 
PI Amn. Cam. OTHEH BERVS A 8USNS P) 
Angto-Esn Pima. Greanoay, Rare Evens. 
FRINQ. PAPER A PACKS |f| 5jppl. 
RETAILERS. GENERAL (1) Gctenlta. 
SUPPORT SEHVS (1) Computw People. 
TTMNSPQRT (IJ Appwd DtsnCuMrc 
AMERICANS flj Lnwl SOUTH ABHCANS (1) 
Anglo Am beta. 

NEW LOWS (56). 

OILIS ft) BREWERIES (1| Yajnq MV. 

BULDHQ ft CNSTRN (4) AMEC, CMMyNda. 
Pane, VWsttMy. BUM UATLS K MCHT5 (4) 
Anglon. Lmnetn W. Moyer bat. iffickaa, 
CHE1RCAIS P) Wsnto Storeys. DIVERSIFIED 
R4DLS (1| Poole Dutop. BJECTRNC A ELECT 
EOUP fll DOS Dun. ENOMESHNO ftj 
Hu ■ m om iu. EXTRACTIVE Was R) Soman. 
FOOD UANUF B (5«5vy O. Pascoe - *. 
HOUSBIOLD HOODS (1) Comma Pariuw A. 
INSURANCE (II VWa Conoon. MVESTMCMT 
TRUSTS (37 LBSURE A HOTELS (3) Alpha 
ArpMtL Priam, Oowrat, m (8) Hafenra 

Mvduani. Oeproy. QuMO, Do BKp M. SMAW. 
WMQO. OIL EXPLORATION fe PROD (0 
CaiHiwCf. PbCt. OTHER RNANCML ftj Goiott 
6 Co. Tomy Law. PPTT40. PAPER 6 PACKS 
(1) Bcmrasu PROPERTY H UtPC. PaaL 
Warner Eauta. RETAILERS. FOOO pi Geest 
RETAILERS, GENERAL PI Hh An Den. 
Unity. Pannage Fine An, SPIRITS, 1MMBS & 

cmER8 (i) sragran. support sana pi 
Mays. Spargo. Vteiur Howard, TDCIU8 A 
APP/Uta. M BM m. Betionai |A|. ReacbM, 
UK &My, TRANSPORT (1> Mereey Docks A 
Harbour. AI0CANS (3) Bartea NY, 
SetWahamSMelL tbmayML 

High street bank Barclays 
fell 12 to 604p after Morgan 
Stanley moved to “hold" from 
“buy”. The US house left its 
current profit forecasts 
unchanged but argued that the 
recent oatperCormance 
prompted by heavy switching 
within the sector had left the 
shares fairly valued. 


News that pharmaceuticals 
group Glaxo is to strengthen 
the warning on the US pack- 
aging Cor its new Asthma drug 
Sere vent affected the shares 
which dipped 10 to 6l5p. How- 
ever, most of the weakness 
reflected profit taking on 
slight dip in the dollar ar I 
rivals Zeneca and Wellcon e 
retreated 14 to 851p and 12 to 
660p respectively. 

A large block of Fisons 
shares traded at well below the 
underlying market price 
caused some nervousness but 
it was seen to be nothing more 
than a tax related and the 
shares recovered to close a 
penny higher at 127p. 

The buy back spotlight 
moved to retailer Argos. The 
shares advanced 3 to 35Tp, with 
volume just short of a million 
shares, as whispers that the 
company will announce such a 
scheme began to circulate. 

The stock was also said to 
have been favoured by institu- 
tions looking for a home for 
cash received from the sale of 
Boots stock earlier this week. 
Marks & Spencer 2 ahead at 
412p, was also said to be a safe 
haven for such proceeds. Prof- 
it-taking in Boots saw the 
shares slip 2V> to 514'/ip. 

J Sainsbury was BRifl to have 
benefited from recommenda- 
tions from UBS and James 
CapeL The shares added 4 to 
424p. 

BIR remained active turning 
over 9.7m shares as a major 
securities house attempted to 
offload a large line of stock. 
The shares ended 8 lower at 
306p. 

Hardware and car compo- 


nent c-.iker FKJ was number 
tv x in the day's active stocks 
list. Turnover soared to £L9m as 
the shares first fell then recov- 
ered smartly on confusion with 
the exceptional items within 
the interim results. 

They closed 5 higher at 167p 
with the market finally settling 
for a positive view, centred 
around Fid's claim to doiiar- 
play status with 70 per cent of 
turnover arising in the US. 

Turnover in leisure group 
Ladbrobe rose to I0.4m<uiclud- 
mg a single block of 8m) as the 
other side of the a tax related 
deal was executed. The shares 
moved against the market 
trend to finish 4 up at I61p. 

Better than expected inter- 
ims from Whitbread prompted 
a number of forecast upgrades 
- NatWest Securities raised its 
forecast by 5 per cent to £260m. 
However expectations that the 
brewer will soon announce a 
corporate deal, perhaps the 
acquisition of Courage from 
Australian group Posters, over- 
shadowed the stock which fin- 
ished 3 lighter at 551p. 

Smith New Court were the 
day's main sellers of Allied 
Domecq. Smiths downgraded 
earnings expectations by 2 per 
cent for the current year and 
next year and moved to a hold 
from a buy previously. The 
shares fell 11 to GOOp. 

Disappointing figures from 
Hardy Oil ft Gas saw the 
shares drop 9 to 141p. 

MARKET REPORTERS: 

Peter John, Joel Kibazo, 
Jefftey Brown. 

■ Other statistics, Pag* 21 



LONDON 

EQUITIES 

| j L1FFE EQUITY OPTIONS 

RISES AND FALLS YESTERDAY 

Rtoee Fafc Seme 


Cab PUR 

aeon Jae Apr Je Jm Opr Jtf 

ttdOBnq 530 S3 6IH6B14 4 10 18*7 

r»9 ) 600 IB 31 38 21 W 29 41 

Annfi 260 1714 25 SOU 7H 13 IBM 

(*271 ) ZBO 7H 1SU 20 IBh 23H 29V4 

ASDA 60 I Ih 11 1U 3 4 

(-66) 0) 2U 4H 8 6W 8 8 

Btfewn 360 SOU 42 49 re Oft 2014 

[*3B4 ) 300 T4 28 33 21 27 35 

&«] Bcm A 420 22 33M <1 12U 22 27U 

[*«$ ) 460 7 TBU 24 38 44U 50 

8ns 500 29 41 W 50 I0U 15 22H 

1*514 | 550 7U 18 2BU 40K 42M 49 

BP 420 31 SOU 38U 10 18h 23M 

P427 ) 460 B» 13 21 U 35 41 45*4 

MBA Start 140 17U 23 25 2 4 6*1 

H57 ) 160 SU IIMr 14 10 I2U 15 

Boss 500 38U « B2U 9U 16 23 

1-534 | 550 8U 20 2B 37 4ZU 46 

Oat* Alto 390 21 34 41M14VS 23 27H 

rm i 4 20 s 2i 28 are are 44u 

Cowtafeb 420 38 47U54U 7 12 19 

(-450 ) 460 13 25% 33U 25 X 39 

Comm Union 493 49u 55 - 4U 15*4 - 

1*533 I 543 T7U 28 - 23 40 - 

IQ 75D 49 61 73 11 »U 36M 

(*7B0 1 BOO 21U 34U 48 34 55» 62V4 

KmglUw 4G0 30U41U4BH 11 16U 2B 
1*473 | 500 11U 23W 29U 3IH 39U 50 

Land Sear 600 I7W 3BU 37U 17 22 34 

ran 1 550 3 13 17 55 SBU 67 

Hafea A S 390 30 4DU 45U 4 B» 14U 

T412 ) 420 11U 23 28U 15H 20 28 

fame* 5 00 41 51 BOM: 7 22 29 

(-528 1 550 T4U 25U 36U 30 49 54U 

SSnsOury 420 20 33 40U 12H 21 zr* 

1*424 | 460 SU 1« 2ZW 38« 44H 50 

3d Traia. 7M KVt 37U 45 14 28U 34 

r787 I 750 7 16 »U 45U GO 63h 

SUrebousa 200 ZOU 24V, 2» 3U 5 8U 

I*21B ) 220 TVl 13 17 11 13U 17U 

Trablgar 80 7 9U 12 3 S EU 

(-B4 ) M SU 5 7U 8» 10U 12 

Unieva 1100 4814 71 82 17U 3S1i 4614 

(-1129) 1150 23 44U 57 42 81 72U 

Zeneca 850 33 48 60 25 44H 52 

(-851 1 900 12 U 27 39 56 7SU 82 

Optan Mw fttltall m Ml b( 

Grand Md 390 21 31 38 *4 12U 1BU 

<-410 ) 420 2U 14U 23 12 28U 32 

Latarate 160 3U 11 18 Vft BM 14 

ri60 1 180 - 4U 8U19M21U26M 

UU Bharts 300 18 2BU 34 - 5 13 

(■TIB } 330 1 12 1BU 12 18U 29M 

Option Dec Hf Jm Oac Mar Jutl 

Fisons lMt1H17M 21 4 B ID 

(127 ) ID ( 1! 16U BW 13 15 

Optan Hw FoA H3T Hot Frti Mai 

Bra Am 460 11W 35 48W 7H 25 38W 

(-485 I 500 W 19 32 36 48 61 * 

BAT Inb 460 6 24U SSU 5 19 33 

(*460 I 500 - 9W 17U 3PM 44H 58W 

BTR 300 7 18 Z4W 2 9M 17M 

n» I 330 - 6% 12 25 28 36 

Bi<1 leieegm 390 4U 15Z1W 5 17 21 

cm ) 420 - 4W «m 30 » 4iu 

CaflWYSdl 420 20 33 39 1 8 16 

r«39l 460 - 13 19 21M25W 38 

Baton Sec 800 18U 4BU B5 8 42 53 


B5Q 1 2B 44 416 70 80 


Qpfal 
Htataon 
(*?30 I 
Lasmo 

Loom tads 

(710 » 

P S 0 
car i 
PttWon 

nos) 

PiwtoitW 
ren i 
mz 

(*B52 1 
Ftonm 
r4?5) 
Itoyrt bnca 
r2B8 ) 
Tescu 

PB7.I 

Vodatans 

1*214) 
Wbms 
(-356 1 
Option 

BAA 
T491 I 
VamWt 
T496 J 
dpflen 

AOtuy HiB 
r«o i 
Arastrad 

raaw \ 

Baictiya 
rem ) 

Bue Ode 

nos) 

BrfesA Gas 

rw 2 ) 

Dtara 

H8G) 

HBbttwn 
H74) 
Lonroo 
(I® 1 
Man Power 

rst»i 

Scot Power 
(-360 | 
Scan 
1*108) 
Fcm 
(*234 ) 
lanrac 
HIB) 
Thorn m 
t*99i ) 

158 
1*227 1 
ToatoB 

SliL 

BWcoms 

1-880) 

OpBrai 

Gbxo 
rsui 
HSBC 75ptiE 

r75«i 

Reraen 

T485 ) 
Option 

Wb-ltaice 


cab pub 

Mw Fth tfa) Hot FuD Hay 

220 11 n 19 » 5» 10 

240 H 5W 9M 10 16M 20M 

134 13U - - - - - 

154 I - - 7M - - 

200 10U 18U MU K BU 10M 

220 U SU 14U 10H 18 20K 

EDO 7 12 17 1 6 8 

an - 4 SH T3M 18 (0M 

180 7 12 17 1 8 8 

200 - 4 8K 13U IB 19H 

300 21 31 33W - 5U 12 

330 1 14 17 10W 18 27U 

B50 11 41H S3U BU 28H 46 

900 - 20 » 48 S 74U 


Brttbti Fttods 

Other Rued Interaot 

Mtnent Extraction — 

General Manufacture!!! 

Consuiwr Goods 

Services 

utattas 

nrcuidals — 

biuMment Trusts 

others 

Totals 

□■tt bond an thoto oonpanwi I 


0 

47 

18 

0 

0 

14 

43 

82 

71 

118 

158 

354 

40 

39 

108 

86 

87 

321 

13 

18 

13 

73 

87 

194 

66 

59 

340 

31 

40 

39 

478 

633 

1472 


I on tfw London Shori Ganrico. 


480 17U 35U44U 

1 13U 2744 

500 

K 18 

25 Z4U 34U SOU 

200 10 % 24 

30 

1U 12 1714 

300 

1U 1414 20U 12H 22U 2844 

240 

12 20U 

27 

- B 

12 

260 

1 9U 1844 

9 IB 

22 

200 

15 21 2744 

- 6 

9 

717 

244 1144 

- 

5 1314 

- 

354 

5 - 

— 

314 - 

- 

384 

- - 

- 

29 - 

- 


Jan Apr 

JW Jan Apr 

J* 

475 26)4 3BU 

- 

G44 1144 

- 

500 12W 24 

32 

17 22b 

29 

460 

46 58 0644 

4 944 

IB 

500 

19 3144 

42 

17 2S 38H 


Dac Mar Jui DK ktar Joi 


TRADITIONAL OPTIONS 

FfeStOwtifeigB Novomtx 

Last Dealings NomnrtMi 


November 7 Expiry 

November 18 SeOtomeni 


February 9 
February 23 


CBBs; Konmara, Ms g n iRn Power, Rodhne, Signet, TUBow OL Puts: AMs, Tadpole 
Tech, Magnum Power. 


LONDON RECENT ISSUES: EQUITIES 


420 T3 24U SO r?»»**30U 
460 IV, BU 1S40US1U 57 
35 5 6 7 M IH 2 

30 1U 3 4 2 3H 4H 

600 21 V, 38 47V, 14 30H 38U 
650 4 17 2BU 48 62 G8H 

300 1EU 2BU 32 5U 12 13V, 
330 3» MU MH 23 23* XK 
300 ID « 25 8 11U 19H 

330 1 7 12H27U 30 38 

180 12 17U 23 4K 9 14H 
200 3U 8U 14 16 20K25H 

160 18U 20 23U » 3U 7» 

180 4V. 812U 8 12 18 

180 8H 14 18 5 1IH 14 

180 2U 610U 1B23H 28 
500 17U 34U 47 12 22 3l 
S50 2H 14 2SU 47 52 58 
360 14U 23 34 12M 23 29 
390 4H 11U 22 32U 41 47 
100 18 1314U M 2M 4U 
110 3ft 7 9 4 7 9h 

220 17 Z3U 27 ZU 6 I1U 
240 5 12H IB 11 15 21 

120 ITU T7 1«U 2U am 
130 SU 11U 14U 6U 10U 13U 
53 OH 90 8 19 28 

1000 20U 37U 5BU 23 41 a 
220 12U 18 22 3U 11 14 

240 3V. 8W 13 14W 22 2SM 

200 20 24U 30 1 6 8 

220 S (2H 18 8 I3K 16*4 

65Q31U53U 88 18 33U 47h 
700 11 33 48 47 81 75 
An Apr M Jao Apr Jol 


raue Amt 
xfco paid 

MO. 

cap 

1994 

Close 

price 


Net 

Div. 

Ora 

P/E 

P 

up 

(OrvJ 

H*!** 

Low Stock 

P 

v/- 

cfv. 

cov. ykf 

not 


F P. 

082 

6*2 

4 APIA Write. 

8 


_ 



_ 

- 

FJ>. 

17.4 

88 

70 Abtrust Latin Am 

87 


- 

■e 

- 

_ 

- 

FJ>. 

208 

83 

61 Do Warrants 

52 


- 

- 

ra . 

_ 

- 

FJ». 

11.3 

187 

180 {(Adare Pmtg 

187 

♦1 

026% 

ai 

t.4 

TU> 

100 

FJ». 

68S 

93 

854 BZW CoranodUes 

88 


- 


-V 

- 

- 

FP. 

8.10 

47 

39 Do. Wrts 

39 


- 

_ 

- 

- 

- 

FP. 

538 

1(M 

65 ^Cafcaia 

100 

-4 

- 

- 

- 

- 

200 

FP. 

303 

287 

280 CriurchH CMna 

285 


RN9L68 

22 

42 

13D 

63 

FP. 

121 

BB 

65 Eonembi 

86 


RNQ-71 


1.4 

a2 

- 

FP. 

481.0 

495 

491 Fktelty Spec LMg 

49! 


- 

- 

-SI 

- 

- 

FP. 

65 A 

157 

108 FBronfc C tek 

157 

*2 

BW.75 

2.6 

0.6 

52-8 

100 

F.P. 

11.1 

101 

100 Fawbuy Sn* C 

101 

+1 

- 

- 

- 

- 

115 

FP. 

348 

126 

111 Games Workshop 

11? 


RN4.fi 

22 

5.1 

10.8 

- 

FP. 

191 

35 

22 Group Dv Cap Wb 

23 

+1 

- 

- 


- 

- 

FP. 

28.0 

62 

SB Hambiuc Sm Aslan 

56 


- 

- 

- 

- 

- 

F.P. 

270 

30 

27 Do Wwants 

27 


- 

- 


- 

100 

FP. 

30J 

102 

98 Hoars GovbiMOOO 

101 


- 

- 


- 

- 

FP. 

29.7 

100 

90 MVESCO Korea C 

98 


- 

- 

- 

- 

180 

FP. 

1675 

223 

205 Irish Pennanert 

220 


uN9-0 

2.9 

5-5 

7.7 

- 

FP. 

503 

493 

475 Protfle Inc A/L 

460 


- 

- 

- 

_ 

135 

FP. 

599 

149 

138 Servlsar 

149 

+1 

RN3^ 

U 

32 

24 2 

115 

FP. 

2244 

126 

117 7LG 

126 


WN3l5 

2.0 

as 

iai 

170 

FP. 

199 

173 

168 Teto-One Cel 

188 


m$A4 

22 

4.0 

11 JB 


FP. 

201 

62 

57 Whftchuich 

GO 


RN125 

3.0 

2A 

12J 


RIGHTS OFFERS 

Issue Amount Latest 


price 

p 

paid 

up 

Renun 

dalft 

1994 

Htah Low 

Stock 

price 

P 

310 

NS 

20T12 

41pm 

16pm 

Kenwood Appf 

?8pm 

27 

r« 

28711 

3*2pfn 

2*zpm 

Martin Inti 

3pm 

26 

« 

22711 

kpm 

Upm 

Novo 

Npm 

65 

u 

23712 

15pm 

11pm 

Prassac 

11pm 


i 51U65U 
> 28 43 
E5SU68H1 
<Wt 481 
i 47 5B 

i 2B35U! 
e Ml May 
13M 1714 
5 SH 


18 34H42U 
47 P M 
28U49H GO 
S7K 81 80 
714 17 223* 
2SU38H41H 
i Bov Fib My 
IVr B 13 
17 20 24H 


FINANCIAL TIMES EQUITY INDICES 

Nov 17 Nov IS Nov 15 Nov 14 Nov 11 Vr ago nigh -Low 

Orctoery Shve 2406.7 2418.8 2406.4 2379.7 2366.0 2371^ 2711B 22406 

Ord.dhr.yMd 402 456 4L29 4.35 4.3? 383 «1 143 

Earn. yld. 46 Ml 603 020 6.23 030 034 437 051 082 

P/E ratio net 1823 18.64 1056 1034 1023 27.39 3043 1094 

P/E ratio nB 17S5 18.18 18.11 17.B9 17.78 2041 3000 17.08 

for TSM CrtRwry Sti are K» Stott oam ptofl e n : (Ugh 27738 2/02704. te 4A A 26 WO 
FT Ordtaary Sham hdw brae drta 1/7/35. 

OnSnary Sham hourly changes 

Open BlDO 1000 11J0 12J30 13JM 1400 IBjQQ 16JO rtjpi Law 
24109 24206 2412.6 2411.6 24101 241 1J2 2411^ 2412X 2405.0 2423.1 2405X1 


r*87) 

500 - SU MU 33 35U 

45 

* Undofymg eacumy prioa. Ptem smrai m 


Nov 17 

Nov IB 

Nov >5 

Nov 14 

Nov 11 

Yrago 

r2B5) 

380 - 614 12)4 14U 21 

23 

used on Bettews pnees. 

Noventer l7,TaU tuna was. 29408 Catx 6472 
Puw»AH 

SEAQ bargains 

Equity tunonr (Cm)t 

2XZ1B 

31,156 

1586.7 

35243 

30.763 

2629.1 

34.603 

26,659 

867.0 

30,137 

23067 

10600 

27.230 

27,609 

1552.5 

31,706 

| FT GOLD MINES INDEX 1 

Shares eaded (rrflt 6693 805.4 

tCadurtng iNtvnwtei burtness and ovenaes tunmer. 

43&S 

435.4 

603.9 



SM 

18 

ft dig 
« day 

Sto »M Year 

15 W ago 

dS* 

SZwaak 

Hfh Inr 

Batd Naei Inin pQ 

ancciw 

-as 

207SJB Otljfi 2979.1! 

£10 

23G7.4Q 178202 

■ Regltattl ameet 






Mrtcedq 

3327.70 

-i.i 

336L59 334 UH 29S7J3 

4.15 

3711S7 23D4A5 

AusntoaaP) 

369J.ro 

+00 

2689 J7 26*1.46 226314 

185 

301189 217168 

North America 111) 

1589.16 

-M 

1802.77 160L2D 1802.63 

m 

2039.65 1468.11 


A Prime Site for your 




CopyrighL The Fwidai Timm UH*Bd 19M. 

ngurn n mcMts show nuite at cmpna Berta US Defem. Bara VBhMC 1000X0 31/12AO 
Prodocwsor Goto Mtara Inna* Nn 17. 257A . tte 1 * cta^a* -1A pants Year ago: 2454 1 Parte 
Lena) erica «wr» panaUN tor BW adaen. 


Advertise your property to approximately 
1 million FT readers in 160 countries. 
For details; 

Call Emma Mullaly on +44 71 873 3574 
or Fax: +44 71 873 3098 






























































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485 Z782 
238 587 
214 W9 
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i*V <**..;*** 'Wi» ww* 










































































FINANCIAL TIMES FRIDAY NOVEMBER lS 1994 



MARKETS REPORT 


US dollar slips as benefit of rate rise fades 


The foreign exchange markets 
took a post-Fed breather yes- 
terday as the after-shocks from 
Tuesday’s rise in the Federal 
Funds rate started to fade, 
writes Philip Coggan. 

The US dollar lost some 
more of the gains it made in 
the wake of the 75 basis point 
rise in rates, which was higher 
than market expectations. 

Neither US economic data, 
nor a report from Germany's 
“wise men” saying there would 
be no further rate cuts, had 
much Impact on the market. 

■ Sterling managed a slight 
rally, with the trade weighted 
index finishing at 79.8 from 
Wednesday’s 79.7. Against the 
dollar, the pound edged up in 

London to $1.5742 from $1.5713 

while against the D-Mark, it 
fell slightly to DM2.4368. from 
DM2.4371. 

Overall, the pound is well 
down on its recent trade- 
weighted peak of 81, which 
came after a strong rally from 
below 79 following September's 


increase in base rates from 5.25 
per cent to 5.75 per cent 

Yesterday's weaker-than -ex- 
pected UK retail sales data 
appeared to confirm the 
Impression left by Wednesday’s 
mass of economic statistics - 
that an imminent interest rate 
rise was unlikely. 

Short sterling continued its 
recent rally, with the March 
future rising 5 basis points to 
93.00 and the December con- 
tract up 4 basis points to 93.73. 
Nevertheless, analysts still 
think the mai-ifgta are overesti- 
mating the potential for an 
early rate rise. 

Mr Adrian Cunningham, 
senior currency economist at 
UBS, said 'The retail figures 
were another nail in the coffin 
of the interest rate bears. Peo- 
ple are not now expecting the 

1 Pound In Dm York 


Mm 17 — Latest — -Ptw. dote- 

£ spot 1.5755 1- 5735 

1 ritl 1.5754 1-5735 

3 mm I.S754 1-5734 

1 ft 1.5725 1-5B90 


authorities to raise interest 
rates ahead of Christmas.” 

The pound has also been 
affected by political uncer- 
tainty arising from prime min- 
ister Mr John Major's battle 
with Eurosceptics over the 
increased UK contribution to 
the European Union Budget. 

Mr Michael Burke, an econo- 
mist at Citibank said; “Against 
a background of higher US 
interest rates, sterling has 
come off quite substantially. If 
there is to be capital flow from 
Europe to the US, sterling is 
more likely to suffer than a 
hard currency like the 
D-Mark." 

However. Mr Burke feels 
that an upward revision to the 
GDP data, published today, 
might take some of the shine 
off interest rate optimism and 
give support to sterling. 

Mr Avinash Persaud, head of 
currency strategy at J P Mor- 
gan in Europe, believes the 
pound can climb over DM2.50, 
once the European Union 
Finance Bill is passed and the 


Sterling 

Trade weighted Index, 1985 - 100 

82 - - 



78' 


1994 Nov 


Source: Oata s tneam 

Budget is out of the way. 

■ Yesterday’s varied economic 
data - October housing starts, 
the latest weekly jobless 
claims and the Philadelphia 
Fed index - seemed to have 
little impact on the dollar. 
Against the yen. the US cur- 
rency eased to Y98.145 from 
Y98.38 on Wednesday, while it 
dropped to DM1.548, from 


DML551 against the D-Mark. 

The German independent 
council of economic advisers, 
known as the five wise men, 
predicted an average exchange 
rate of DMl.fiOIS in 1995, imply- 
ing a dollar rebound from cur- 
rent levels. 

Yesterday, the dollar was not 
helped by the weaker Treasury 
bond market. In early US trad- 
ing. the 30 year bond slumped 
around three-quarters of a 
point. 

J P Morgan’s Mr Persaud 
says “the key condition for the 
dollar to recover is for US 
investors to feel more comfort- 
able buying Treasury bonds.” 
At the moment, he believes 
“the market is genuinely 
uncertain whether the Fed has 
done enough. But ultimately 
the market will conclude that 
the Fed has injected credibility 
into monetary policy." 

However, Mr Charles Ranald, 
m anag ing director of the for- 
eign exchange analysis group 
Forexia (UK), said that charts 
indicate that the dollar is head- 


ing down towards DML53 in 
the short term. After a period 
of consolidation at that level, 
he believes it will then move to 
DWL50 and below. 

■ The Irish punt took the res- 
ignation of the prime minister, 
Ur Albert Reynolds, in Its 
Stride, finishing slightly higher 
against the D-Mark at DM1306 
from DM1386 on Wednesday. 
“Nobody really believes that a 
new government would alter 
the shape of economic policy” 
said Mr Cunningham at UBS. 

■ The Bank of England gave 
the UK money markets £825m 
help in two tranches, having 
forecast an £SQ0m shortage. 
Overnight rates traded within 
a range of 5 to 4225 per cent. 


to 17 e s 

Huge* 171-697 - 171SM I0SOT0 - 108.100 

ban 2751 JM - 2754D0 174M0 - 175000 

Kama 04703 - tune 02988 - 
Poland 372308 - 372920 236550 - 23585.0 

ffcsss 496100 - -49GE60 315200 - 315500 

UAE 57775 - 57893 30715 - 10735 


POUND SPOT FC.PV.Aqj AGAI?;S' ’ - E PCViD 


DOLLAR SPOT FCT'VyARL; AGAINSj T^F|pp'l:7>fri # 


Nov 17 


Ooang 

mid-point 

Change 
an day 

EOd/OfTer 
sp read 

Day's Mid 
high kn* 

Busppo 








{Sch) 

17.1438 

-0.0156 

366 - 510 

17.2037 17.1145 

Belgium 

(BR) 

60.1100 

-0.0452 

925 - 274 

50-2500 504)520 

Dorunsrh 

{DKri 

96287 

-0.0009 

245 - 328 

9.5375 

9.6039 

Finland 

(FM) 

7.4719 

+0.0404 

026 - 812 

7.4890 

7.4200 

France 

(FFrl 

8.3720 

+00025 

692 - 748 

8.3807 

8.3488 

Germany 

(DM) 

2.4368 

-0.0003 

359 - 379 

24404 

2.4312 

Greece 

Pri 

375289 

-04116 

060 - 518 

377.180 374.454 

Ireland 

(IE) 

1.0170 

-0.0003 

163 - 177 

1.0196 

1.0163 

Italy 

IU 

2499.83 

+3.82 

B96 - 070 

2503.45 249427 

Luxembourg 

(LFr) 

50.1100 

-04)452 

92S - 274 

502500 500520 

Netherlands 

(FI) 

2.7309 

-04W24 

299 - 31 B 

2.7417 

2.7253 

Norway 

(NKr) 

10.6676 

+0.0027 

632 - 720 

10.7124 106332 

Portugal 


248 £81 

-0.078 

536 - 787 

240.086 24R240 


(Fla) 

203.040 

+0.123 

954 - 126 

203.702 202.407 

Swttdan 

(SKr) 

11.5685 

+8.0014 

464 - 666 

11 £056 11.5262 

Swltzartand 

(SFr) 

2.0477 

-0.0025 

469 - 484 

2.0635 

2.0453 

UK 

fE) 

- 

- 

- 

- 

- 

Ecu 


1J79B 

+0.0002 

733-803 

1.2813 

1J17B8 

SORT 

- 

0.930025 

- 

- 

- 

- 

Americas 







Argentina 

(F>eso) 

1.5735 

+0.0024 

731 - 739 

1.5755 

1.5707 

Brazil 

pi) 

1.3106 

+0.0048 

095 - 116 

13118 

1.3082 

Canada 

(C» 

2.1469 

+0.0039 

46? - 470 

2.1506 

2.1410 

Mexico (New Peso) 

54332 

+0.0114 

290 - 374 

5.4375 

5+1 176 

USA 

P3 

1.5742 

+0.0029 

739 - 745 

15760 

1.5705 

PlxcMc/Middle East/Africa 





Australia 

(AS) 

2-0931 

+0.0004 

921 - 940 

2.0965 

2.0846 

Hong Kong 

(HK^ 

12.1717 

+0.0266 

686 - 748 

12.1848 12.1431 

Indta 

(Fte) 

453907 

+0.089 

654 - 960 

49>U10 48^710 

Japan 

(Y) 

154^00 

-0.084 

431 - 569 

154J10 154^30 

MateySia 

(MS) 

40376 

+0.008 360 - 391 

4.0417 

4.0277 

Now Zealand 

INZS) 

2.5305 

-0.0051 

279 • 330 

2-5383 

25205 


(Peso) 

(SR) 

fS$) 


Phrippines 
SaueSAratM 
Singapore 
S Africa (Com) (R) 
S Africa (Fte.) (R) 

South Korea (Won) 
Taiwan (TS) 

Thafcwvd (Bfi 


38.3318 -00888 458 • 178 38.4200 3&2430 
53048 *0.0114 032 - 063 543111 5.6911 

22165 40.0027 T52 - 177 2.3185 23118 

5.6534 40.0102 511 -556 5.5593 55373 

85408 40.0434 238 - 578 65594 65227 

1252.63 4-157 251 - 314 1254.18 1249.96 

412893 40.0034 771 - 015 41.3668 41.1988 
3B.3TB6 40.0521 632 - 940 39.4160 382830 
ISOfl ram lor Nov 18. BkVoOar wads In DM Pound Spot tteto show only the last thu 
mama hut are mpied by current lobaosi raroo. Stwflng Mai cataiOad by itw Bat* of EnramL 
ma and ttn Dolv Spot tattm dartwd bom THE WWffiUIHB CLOSING SPOT RATES. Soma 


One month 
Rate MPA 

Three months 
Rate MPA 

One year Bank of 

Rate 9iPA Eng. Index 

Nov 17 









Europe 


17.1395 

05 

17.1276 

0.4 

_ 

- 

1135 

Austria 

(Sch) 

50.08 

0.7 

50.01 

as 

49.87 

0.5 

117.0 

Befcjun 

(BFf) 

95282 

05 

9.541 

-05 

9.5205 

0.1 

lias 

Denman* 

(DKr) 

- 

- 

- 

. 

- 

- 

88.4 

Rriand 

<FM) 

85699 

05 

85622 

0.6 

02941 

05 

109.8 

France 

(FFrl 

2.4354 

0.7 

24312 

0.9 

2599 

1j9 

1265 

Germany 

ID) 



- 

. 

. 

. 

- 

Greece 

(Dr) 

15168 

02 

1.0165 

02 

1.0182 

-0.1 

104.5 

Ireland 

(ID 

2505.43 

-27 

2S1S-83 

-27 

258753 

-27 

745 

Italy 

(U 

50.08 

0.7 

50.01 

08 

49.87 

05 

117.0 

Luxembourg 

(LFfl 

27294 

05 

27251 

08 

26908 

1.5 

1208 

Netherlands 

0=0 

10.6678 

0.0 

10.6892 

-a.i 

106682 

0.0 

85.B 

Norway 

(NKr) 

250.391 

-85 

263.671 

-7.9 

- 

- 

- 

Portugal 

(Esl 

20357 

-20 

204.035 

-20 

200.86 

-18 

05.7 

Span 

(Pla) 

115755 

-20 

11.618 

-21 

11.7825 

-1.8 

76.4 

Sweden 

(SKr) 

25446 

1.8 

2.0371 

2.1 

1.9948 

26 

121.4 

Switzerland 

(SFr) 

. 

. 

. 

- 

. 

- 

79.8 

UK 

(0 

15798 

0.0 

1.2799 

0-0 

15743 

0.4 

- 

Ecu 


- 

• 

- 

- 

. 

- 

- 

SORT 

_ 








American 


- 

- 

- 

. 

- 

- 

- 

Argentina 

IPeso) 

- 

- 

- 

- 

- 

- 

- 

Oraztt 

<«) 

21459 

0.6 

21448 

0.4 

21432 

05 

66.7 

Canada 

tesi 

- 

- 

- 

- 

- 


- 

Mexico (New Peeoj 

1.5743 

-0.1 

1.5742 

00 

1.571 

05 

623 

USA 

<S) 








Pacffic/Mddle East /A 

20952 

-12 

2098 

-05 

21119 

-09 

- 

Australia 

(At) 

121627 

05 

121584 

04 

12.1132 

0.5 

- 

Hong Kong 

(HKS) 

- 

- 

- 

- 

- 

- 

- 

India 

(to) 

154.05 

35 

153.036 

35 

147.91 

4.3 

1908 

Japan 

(Y) 

- 

- 

- 

- 

- 

- 

- 

Malaysia 

(MS) 

25352 

-22 

25444 

-22 

2.5843 

-1.3 

- 

New Zealand 

(NZS) 

- 


- 

- 

- 

- 

- 

Philippines 

(Peso) 

- 


- 

- 

- 

- 

- 

Saudi Arabia 

(Sfi) 

- 


- 

- 

- 

- 

- 

Singapore 

(SS| 

- 


- 

- 

- 

- 

- 

5 Africa (Com. 

(R> 

- 


- 

- 

- 

- 

- 

S Africa (Fin.) 

(R) 

- 


- 

- 

- 

- 

- 

South Korea 

(Won) 

- 


- 

- 

- 

- 

- 

Taiwan 

OS) 

- 


- 

- 

- 

- 

- 

Th&flznd 

Pb 


Closing Change 
irid-point on day 


Btd/ofler 

spread 


Day's mid 
righ low 


One month Three months One year XP Morgan 
Rate %PA Rate %PA Raw KPA index 


108905 

31.8320 

6.0530 

4.7465 

5.3183 

1.5480 

236.400 

1-5479 

1588.00 

31.8320 

1.7348 

6.7765 

157.960 

128.960 
72412 
12008 
12742 
12301 

1.46358 


-0.03 860 
-0.0675 270 
-0.0118 515 
-*0017 415 
-0.0082 175 
-0.003 477 
-0.45 300 
40.0033 471 
-025 775 
-0.0875 270 
-0.0047 345 
-0.0108 750 
-024 910 
-0.16 950 
-0.0128 382 ■ 
-0.004 005 
*00029 739 
40.0021 298 


930 
370 
545 
515 
190 
482 
500 
486 
8£5 
370 
350 
7 BO 
010 
010 
462 
010 
745 
303 


10.9125 

31.9270 

6.0695 

4.7822 

5.3295 

1.5504 

239.510 

1.5489 

1591.46 

31.9270 

1.7430 

6.B050 

158.240 

129.400 

72781 

12041 

1.5760 

12307 


10.8870 

31.8270 

6.0451 

4.7135 

5.3105 

1.5467 

238.300 

1.5423 

1584.50 

31-8Z70 

1.7334 

6.7620 

157.850 

128.750 

72235 

12004 

1.5705 

1.2282 


0.9996 -0.0003 995 - 996 

0.8325 40.0015 320 - 330 

12638 -0.0001 636 - 640 

3.4514 *0.0009 494 - 534 


1.3297 -0.0021 293 - 300 
7.7320 +0.0028 315 - 325 
31.3688 -0.0012 650 - 725 
98.1450 -0235 200 - 700 

2.5648 +0.0003 843 - 663 
1.6075 -0.0062 062 - 088 

242500 -0.1 000 - 000 

3.7570 +0.0003 507 - 512 
1.4715 -0.001 710 - 720 

32278 - 270 - 285 

4.1550 +0.02 450 - 650 

795850 -0.6 800 - 900 


1.0000 0 9995 
0.8330 08320 
1.3656 1.3629 
3.4504 3.4452 


place*. Pon nw d raxes tie not dkecfly quoted to the 
Saaa awaga 1863 = 100BU, Oner old Mchara In bon 
wduas am rounded by the F.T. 


1.3310 1.3257 
7.7350 7.7290 
31 3725 312850 
98.3000 99.0600 
2.5653 2.5625 
1.6129 1.6049 

24.4000 242000 
3.7512 3.7507 
1.4728 1.4710 
3.5295 3.5198 
4.1700 4.1450 
796800 795.900 
-8. 0482 260 - 315 26.2550 262260 
-0013 100-200 25.0200 25.0100 
tSOR rate ka Nor 16. BkMffar spreads m the Dote Spot MM mow only the test the 
but ora ImpBed tty cwram merest rana. UK. msand 6 ECU ■» quoted « US cuntny. 


10.883 

05 

10.8885 

09 

10769 

1.1 

1045 

31512 

08 

31.7683 

08 

31597 

07 

1055 

6.055 

-04 

0058 

-05 

6.0789 

-04 

1055 

4.7448 

04 

4.7415 

04 

4.7408 

0.1 

825 

55177 

0.1 

55143 

05 

55968 

04 

106.0 

1.5472 

06 

1.545 

08 

15305 

1.1 

1009 

23885 

-15 

239525 

-1.4 

241.475 

-15 

B83 

15482 

-05 

15407 

-02 

15442 

02 

_ 

1591.45 

-26 

1599 

-2.8 

16325 

-25 

74.7 

31-812 

0.8 

31.7665 

05 

31597 

07 

1008 

1.7338 

06 

1.7318 

07 

1.7175 

1.0 

1(65 

8.7857 

-1.6 

6.8025 

-15 

6533 

-05 

855 

1524SS 

-4 0 

159.01 

-45 

16351 

-35 

855 

129505 

-21 

13289 

-121 

131-83 

-23 

807 

75539 

-2.1 

75812 

-22 

75062 

-25 

820 

15986 

20 

15943 

20 

15722 

22 

1075 

1.5743 

-0.1 

1.5742 

0.0 

1571 

05 

831 

15301 

OO 

15304 

-0.1 

15321 

-55 

- 

13638 

-0.1 

15631 

05 

15073 

-03 

833 

3.4524 

-0.3 

24542 

-03 

3.4616 

-03 

- 

- 

- 

- 

- 

- 

- 

906 

15305 

-0.7 

15323 

-0.8 

1546 

-15 

800 

7.73 

03 

7.7288 

05 

7.7365 

-0.1 

- 

31.4388 

-27 

315638 

-27 

- 

- 

_ 

97.865 

3.4 

97545 

3.7 

94.44 

35 

1508 

2561 B 

1.4 

25673 

15 

25853 

-05 

_ 

1.6084 

-07 

1.6108 

-0.8 

1.6199 

-05 

- 

3.7546 

-1.1 

3.7615 

-1.1 

3776 

-07 

_ 

1.47 

15 

1.4665 


1.45 

15 

- 

3.5433 

-55 

35754 

-5 4 

27403 

-OO 

_ 

4.183 

-8.1 

45275 

-7.0 

4.46S 

-75 

_ 

798^5 

-45 

80235 

-35 

82085 

-31 

- 

265488 

-09 

265888 

-08 

- 

- 

- 

25.0445 

-14 

25.1355 

-1.B 

2554 

-21 

- 


m decimal pteoae. Fonead ratee am ogi tfirody quoted to the ranter 
IP Morgan nomnW n&ces Nov IS. Base average ISBtelOO 


WORLD mtEREST RATES 


HONEY RATES 

November 17 Over 

right 

One 

month 

Three 

nrtha. 

■9*' 

reihe- 

one' 

yeer 

bomb.' 

-Inter: 

•Ob. 

late 

Repot 
■ . rate . 

Belgium 

4H' 

4* 

- 4« 
4 

5ft 

5> Sr 
5W 

: aft' 
8ft 

vr 

-TAQ - 

/*» 

430 




5* 

» 

671 

894 

650 

-*■ ' ‘.r 



Si 

- 5ft 

594. 

5ft. 

694 

. 000 



Germany 

453 

455 

016 

S.26 ■ 

5.80 

■ 850 - 

453 . 

450 

455 

015 

55S • 

650 

•• 650. 

450 

456- 

intend 

8ft 

SM 

m 

6ft : 

:7ft 

• - : 




■51 

SVi 

694 

L- 8ft. 

■ 7ft. 


\.T 

: 656 . 

My 

8ft 

8* 

8ft 

8 


1 

750 


weak ago 

8ft 

- Wk 

8ft 

9 

as 

. “ 

750 


Netfaerianda 

4.84 

003 

023 

034 ‘ 

073 

' — 

" hiA 

‘rC’ V 


454 

003 

024 

036 

5.78 


556 

' 

Switzerland * ■ 

■ 3 

3* 

3ft 

■ 4ft • • 

-4ft 

oezs ■ 

aso 


week ago 

’ • 354 

3W 

,-4- 

■4)4 

4H 

8528 

350 

• - ' j -. . 

US 

5* 

5ft. 


8ft ■ 

694 


435-: ^ - 

week ago 


5ft.. 

5K 

.8ft 

8ft 

• - 

.450 


Japan 

-2ft 

2% 

24 

zi 

2ft. 

~ 

•1:73 

- . 

week ago 

2H 

TA 

2* 

2ft 

294 


-1.75 



■ S UBOR FT London 
Interim* Rrfaa - 5H 

week ago -5% 

US Dolor CDs. . - 5.48 

week ago &46 


sfl ■ . ,t» m - -r--:' >■: 

51 m m - --- •- >' ■' 

3.73 624 52* r . . . - ‘ , v - . 

-550 ,628 5J50.- •-■ • v - • 1 - 

SDR Linked' Ds : - 3* 3ft . .3* •• * • 

week ago - 3*’ .*4 SH * . 7 

ECU unkad Oa iris 1 6MC8 trttec Si; 6 ntf« 84: 7 y*r LB0« toWji# 

taws we rtearad rates lor 010m quoted to «m mrakat Cgtem me raire Mrta at non eaJiaqtMng 
day. Hw tacta tnt Bites Thai Bar* ofT8^ a«^^Ne»ire( y»teiPjiiiN. _ / . 

MU ram aw snoot to (he dcneaOc Money tan, US $ COs-tndSOft LHcad Departs 00- ! 


EURO CURRENCY INTEREST RATES 

Nov 17 Short 7 days One Three, 

team nodes month 


Six 


One . 

yarn 


Beigian Franc 

4» 

-4H 

Ml 

-4H 

43 

-4H 

5ft 

5ft 

5ft 

5ft 

'8ft 

-6 - 


5% 

-Si? 

5ft 

-sft 

■5ft 

■5ft 

«ft 

-0 

6ft 

0ft 

7ft 

-7 

D Mwk 

5 


s- 

4ft 

5- 

4ft 

5ft 

5ft 

SA 

«A- 

8ft --6ft 

Duch Giddar 

8 

■Ml. 

5ft 

-4» 

5ft 

-5ft 

5ft 

5ft 

5ft 

-«*■ 

s«- 


French Franc 

5^ 

54 

5ft 

■5ft 

5ft 

-6ft 

5ft 

5ft 

■ Mi 

5ft. 

0ft- 

«ft 

RortuauBse Esc. 9i« 

-8ft 

9ft -aft: 

&ft 

-»ft 

10- 

6ft 

10ft 

10- 

-10ft 

W 

Spartsh PeeetjL 

7* 

7ft 

7ft 

■7ft 

7ft 

7ft 

7a 

-7H 

&ft 

8ft 

-raft 

+ 0 

Starikig 

5 - 

4Ar 

5- 


5ft 

5ft 

sa 


8A 

0A 

7A- 

7A 

Swim Franc 

3- 

zV" 

3ft 

3ft 

3ft 

3,i 

3 ill 

3j| 

4ft 

4 ,r 

4A- 

4A 

Can. Dollar 

ft 

-5,1 

5ft 

-5ft 

6ft 

5ft 

sa 

6ft 

5ft 

Bft 

7 A- 

7A 

US Doto 

5ft 

-5ft 

5ft 

5ft 

5ft 

5ft 

sa 


Bft 

BA 

.-0K- 

efi 

Uhn tea 

9- 

7^ 

8ft 

■aft 

8ft 

8ft 

8ft 

s,; 

8- 

ft. 



Yen 


-2h 

2ft 

2ft 

2ft 

2ft 

2ft 

2ft 

aft 

2ft 

2ft- 

3b 

Asian SSbg 

2ft 

■2ft 

3ft 

■2il 

3ft 

3ft 

3ft 

3ft 

;3ft 

3ft. 

.4% 

.4 

Short term mm 

Med 

tor the 

US Dotw anff Yen, 

ottwes: 

t» dra»' Mtae. 


.• . 




■j 


1 tetertaricoffaradrate ■ 



Open 

Sett price 

Change 

»gh. 

Low- 

EBL-val 

Open tnL ■ 

4* *? ■ ■• 

Dec 

8429 

MJ0 


9430 

9428 

7.B1T 

43912. ■ . 


Mar 

83^0 

3387 


9387 

9384 

3524 

; 33582 


Jtai 

93.50 

03.48 

-CUE 

aajsn 

9X40 . 

3024 

23927 ' 


Sep 

93.18 

93.16 

-one 

8318 

9313. 

4J594 

21X0". 



■ THRU MONTH EWIODOIUUI Sim poteta of 10056 ' 


Open Sett price Change High 


Low. 


~ Esl. vol Open Ira, 


Dec 

_ 

3387 

-OOI 

.. . . 

. - 

0 - 

283S." 

Me 

3333 

3X28 . 

-G.QT - 

3X33 

9333 

20 '■ 

• -1430 

Jun 

8383 

82.70 

-aio 

8383 ' 

9303 

IS 

404 ' 

Sep 

92.48 

8341 

-0.10 

8348 

92.48 .* 

10 

177 F 


■ THREE MOKTH KUtOMMK KIWIS (UFFETOMIm poWe of 10096 


■f 
■ il 


Dec 

Mar 

Jun 


Open 

Sett price 

Change 

Htfi 

LOW 

Est Yd 

Open M. 


8482 

9432 

- 

9433 

9481 

10872 

138749 


84.60 

9460 

-OOI 

9462 - 

9458 

33448 

-.174839" . 


94 26 

9422 

-006 

9427 

9420 

30117 

120738 

. 

9387 

9383 

-005 

9387 

. 9381 

12881 

83768 

; : - 


MOWTH BUBOURA 1TJIATW HITOHMi (URR9 UOOOm prints of 1QQK 


Dee 


Jui 

Sep 


Open 

Sett price 

Change 

High 

. tew 

ESL Yd 

Open bft.' . 

- : 


91.13 

91J» 

-006 

91.15 

91-06 

5287 

. 31098 

‘e ’■ 


90.66 

0047 

-009 . 

9058 

9042 

B039 

34787 - 

. r i 


89l99 

89^0 

-009 ; 

■90.03 

8088 

1200 

15721. 

e* 


8055 

8047 

-008 

BO02 

.8048 

5!8_ 

-.21055 

-■ • j CJ ’• 

- 


I (LBTO SFftmpoirtta of 100% 


Dec 

Mar 

Jun 

Sep 


Open 

Sett price 

Change 

*oh 

' tew 

EsL vol 

Open int. 

9393 

9394 

. 

8396 

9393 

1871 

18335 

9362 

9363 

-0.01 

9366 

9360 

2927 

21389 

9332 

9331 

-003 

96-35 

9331 

-057- 

6811 . 

9301 

9496 

-005 

9302 

9498 

243 

2901 


: MONTH Kunrunu (LIFFQ Etarlm paten of 10096 



Open 

Sett price 

Change 

«9&. . 

tew , .. 

. Est. VOl 

Open ktL 

1 -r- “ 

■+ .T— 

9403 

9405 

+002 

9408 

9403 

1084 

8231 1 

! 

• -5 “ 

9382 

9X67 

- 

9X72 

9X82. 

- 1532 

■ 7447 ' 

i ; * 

\.\ m 

9X15 

SX18 

. 

9X20 

9X15 

216 .' 

- 4257 



9X68 

9X67 

4X02 

9X70 

9X87 

90 

2396 

| u . 



CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 

Nov 17 BFr DKr 

DM 

K 

L 

n 

NKr 

Es 

Pta 

SKr 

SFr 

e 

cs 

s 

Y 

Ecu 

Belghen 

(Bft} 

1(U 

1X01 

1371 

4863 

X030 

4987 

5.450 

2189 

496.1 

405.1 

23.07 

4.085 

1.998 

4885 

3141 

30X3 

2852 

Denmark 

(DKi) 

5X59 

10 

8.787 

2858 

1.067 

2023 

2866 

1180 

2808 

21X1 

1X13 

2.148 

1850 

2853 

1.652 

18X2 

1842 

Prance 

(FFrl 

59^5 

11.38 

10 

2811 

1815 

2988 

3882 

1X74 

2909 

24X5 

1X81 

2445 

1.194 

2565 

1880 

1848 

1828 

Germany 

(DM) 

20.56 

X910 

X435 

1 

0417 

1025 

1.121 

4378 

10X0 

8380 

4.744 

0840 

0410 

0.861 

0048 

6X40 

0825 

Ireland 

(IQ 

4927 

9369 

8232 

2896 

1 

2457 

2885 

1048 

2444 

19X8 

1187 

2013 

0903 

X111 

1-548 

151.9 

1856 

Italy 

(U 

2005 

0381 

0335 

0098 

0041 

100. 

0109 

0.427 

9848 

8.123 

0483 

0.082 

0040 

0.086 

0063 

X182 

0051 

Nettwrianda 

(FD 

1035 

X489 

X06B 

0832 

0872 

915.0 

1 

3807 

91.03 

7483 

4233 

0.750 

0866 

0.796 

0870 

5687 

0468 

Norway 

(NKr) 

4896 

8.830 

7048 

2884 

0^3 

2342 

2560 

10 

23X0 

1903 

1083 

1.918 

0837 

2012 

1475 

1448 

1.199 

Portugal 

(Es) 

2010 

X833 

3068 

0980 

0.409 

1005 

1.099 

4892 

100. 

81.66 

4850 

0823 

0402 

0864 

0833 

6X15 

0514 

Spate 

(Pta) 

24.68 

4694 

4124 

1800 

0.501 

1231 

1845 

5856 

12X5 

10a 

5895 

1808 

0493 

1.056 

0.775 

7X11 

0630 

Sweden 

(SKr) 

4395 

8242 

7242 

XI 08 

0880 

2182 

2882 

9830 

215.1 

175.0 

10 

1.771 

0865 

1857 

1882 

13X7 

1.108 

Switzerland 

(Sft) 

24.48 

4655 

4.090 

1.191 

0.497 

1221 

1834 

5813 

1214 

99.17 

5.847 

1 

0.489 

1.049 

0709 

75.46 

0625 

UK 

(Q 

5011 

9^28 

8372 

X437 

1.017 

2499 

X731 

1087 

24X6 

20X0 

1186 

X047 

1 

XI 47 

1-574 

1548 

1879 

Canada 

(CQ 

2X94 

4438 

3899 

1.136 

0474 

1184 

1872 

4970 

1168 

9455 

5884 

0853 

0466 

1 

0733 

7186 

0896 

US 

(8) 

31JB4 

0053 

5819 

1848 

0648 

1588 

1.735 

8.779 

1578 

12X0 

7844 

1801 

0835 

1884 

1 

9X16 

0813 

Japan 

ro 

3X43 

3107 

8419 

1877 

0.056 

1617 

1.708 

0906 

1809 

1314 

7482 

1825 

0847 

1890 

1019 

100 

0828 

Ecu 


3X18 

7^50 

6840 

1805 

0.796 

1954 

2135 

8842 

1944 

168.7 

9-038 

1.600 

0782 

1879 

1831 

1208 

1 


OanWi Kittwr. French Franc. Norwegian Krona, aid BmtMi Kronor pa TO; BPpan Fnre, Van. Escudo, 
1 FUTURES (IMM) DM 125200 per DM 


1 end Penata per 10a 


■ JAPANESE YEN FUTURES (IMM) Ven 128 per Yen 100 



Open 

Latest 

Change 

High 

tew 

Est vof 

Open ht 


Open 

Latest 

Change 

High 

Low 

Est- vol 

Open InL 

Dec 

08450 

0.0456 

+0.0008 

08470 

00450 

43823 

82482 

Dec 

18200 

10215 

+0.0022 

1.0225 

18197 

21.145 

7X396 

Mot 

08475 

00472 

+08008 

00476 

08408 

573 

7.486 

Mar 

18304 

losoa 

+0.0017 

1.0307 

1.0297 

964 

8887 

Jun 

* 

0.8489 

“ 

0.6489 

■ 

15 

1323 

Am 

1.0389 

1,0405 

+08016 

1.0405 

1.0399 

SB 

770 

M SWISS FTtANC FUTURES (IMM) SFr 125800 per SFr 



H STOtUHQ FUTURES (MM) £62500 per E 




Dec 

07875 

07687 

+00013 

07698 

07675 

24,727 

51.761 

Dec 

18710 

18720 

+08010 

18750 

18708 

23,617 

46830 

Mar 

07721 

0.7723 

+0.0008 

07730 

07710 

979 

2802 

Mar 

18732 

1.6720 

+00020 

18750 

18706 

448 

902 

Jun 

M 

07775 

0.7770 

+0.0021 

07775 

07785 

63 

271 

Jun 


18882 


18730 


15 

20 


UK. INTEREST RATES 


LONDON MONEY RATES 

Nov 17 Over- 7 days 

night nonce 


One 

monUi 


Three Six 
months months 


Wwbank Staling 5 - 4ft 5ft - 
Staring CDs 
Treasury Bale 
Bar* 86b 

Local autbonty depa. 4JJ - 4ft 5£ ■ 4|J 
Osoouif Maker depa 5^-4 5-4^ 


5*3 - 5% 5H-s£ 

5>i-5Sb 5%-5H 8ft -8A 


UK during hank base lending rate 5* per cent from September IS, 1994 
Up to 1 1-3 3-6 6-9 

month months months 


Certs cd Tax dep. (£100,0001 


1>2 


One 

Netherlands 

219672 

XI 4463 

-000194 

-227 

523 

_ 

year 

Beighan 

402123 

39.3599 

-00387 

-XI 2 

5.56 

15 

7A-7A 

7,'. - 8» 

Ireland 

0808628 

0799487 

+0000751 

-1.13 

4.S1 

S 

Germany 

1.94964 

1.93468 

+00196 

-0.77 

4.12 


Franca 

6.53863 

687378 

-000011 

0.53 

X78 



Denmark 

7.43679 

748042 

-0.00394 

osa 

X72 

-4 

7A-TA 

Portugal 

19X854 

195286 

-0.048 

126 

2.04 

-6 

Spain 154X50 

NON ERM MEMBERS 

159279 

+0109 

X33 

OOO 

-23 

9-12 

Greece 

264813 

294223 

-0213 

11.35 

-720 


Italy 

179X10 

196441 

+X27 

9^5 

-X68 



UK 

0786749 

0785007 

+0.00118 

-022 

X55 

_ 




Cena of Tea dep. under CIOOLbOO P 1*apc Dopostta uathdrawn fa cam Vpc. 
Am tmda ram of dWoount S-e+aeoc. ECod flood n ' - - - 


3% 


3^2 


ram sag. Export F«mnc+. MO» i«> day Oct 31 , 


.Agreed rote tor period No* 26. 189+ to Dec 23. 1994, Schemes BAH 7J3pc. Halaranca me tar 
d OeM. 1804 to Oct 31. 1984. Schama IV A V 5SC8pc. Ffc ance Houm Bm Rare 6pc tom Hu* 

I. lt4M 

■ THREE MOWTH STEHUHC FUTURES (UFFE) C500.000 points of 100% 



Open 

Sett price 

Change 

High 

Low 

EsL vol 

Open InL 

Dec 

83.70 

93.73 

+004 

33.75 

83.68 

26222 

135669 

Mar 

8X96 

93J0 

+0.05 

9X04 

9X94 

34278 

88521 

Jun 

9X36 

9X37 

+0.01 

9244 

92-34 

9823 

56206 

Sep 

91.94 

91.90 

•003 

91.30 

91.88 

6637 

65006 


Haded on APT. AB Open mar t pgs. am tar preuttua day. 


H SHOUT STBEJHO OPTXWM (UFFE) £500.000 pofcita trf 100% 


Strike 

Wee 


_ fill IB re 





Dae 

VfU ■ 0 

Mar 

Jun 

Dec 

“ rUTB — 
Mar 

Jun 

8350 

027 

008 

0.00 

004 

056 

121 

9875 

aio 

O.Od 

005 

012 

079 

1.43 

MOO 

002 

001 

003 

029 

1.01 

126 


EM. voL total. Gala 14474 Putt 15648. Mu ttayta Open rt- Cato 360343 Puts 218773 


EMS EUROPEAN CURRENCY UNTT RATES 

Nov 17 Ecu can. Rata Change 96 +✓- from 96 

against Ecu on day 



MEMBER BFA 


Margined Foreign Exchange 
Trading 

Fast Competitive Quotes 24 Hours 
TO: 071-815 0400 or Fax 071-329 3919 


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FUTURES 

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TRADERS 

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RERKELEY FUTURES LlMITEn 

38 DOVES STREET, LONDON W1X3RB ■ 
TEL 0171 629 U33 FAX: 0171 495 0022 H 


rates 


osa rate v waekest 


□hr. 

bid. 


Ecu canual rate sat by the European Commbekm. Ctarendra ue ta daocandng mtadw snamih 
Pgtovttge changes am far Ecrs a poetan change danoM a *uak curancy. Dtagna ohom the 
nao ww» Mr CgeedK wa piawaaaa rSdreanca bemr—r me actual mwn and Erai cararal raw 
£, 0 r5SS^uT ,d ** * mn * i PWosnWB* drn*»on ri the curMcy^ marim rata tairn ta 

( nnon Staring and ttdbn LM appended Irian ERM. Aotaatmant calcutaM by the H u man ; Dim. 


M PHIAD1PHU1 3E E/B 09*110118 £31.250 [ctaita per pound) 


Stake 

Price 

Dec 

— CALLS - 
Jan 

Fab 

Dec 

- PUTS — 
Jan 

Feb 

1225 

1250 

1.575 

IjBOO 

1JS25 

1250 

4.75 

X72 

128 

047 

012 

X12 

X30 

125 

1.08 

047 

018 

5.51 

3.62 

X52 

1JX 

088 

040 

018 

0.62 

1.62 

325 

520 

7.70 

055 

121 

220 

X79 

5.71 

725 

098 

1.75 

221 

4.31 

XII 

X10 


PmvtaiB day’s «*, Cals m.644 Pus 14813 . Pt*». dayn open InL, Cals sm . nto fmu 332842 


MOWTH EimOPOUARtBrB^tlm points ot 100% 


BASE LENDING RATES 


Adan 3 Company &7S 

Afed Trust Bank _2.75 

AS Bank 5.75 

•Henry Ansbachar 57B 

Bank at Bsoda — 5.75 

Banco abasVhEaya-6.75 

Bank o( Cypres S.75 

Bank o( Ireland 5.76 

BankoHndta... .6.76 

Barit of Bcotand .5.75 

Bodays BarA 5.75 

BritBkof MdEasl...- 5.75 
■amnSteiW&CDLIjATS 
CLBankNederioid... 5.75 

CMankNA _.8.7S 

C^dosddeBank _57E 

The CtHTHradre Bark 5.75 

CotiOS&Ca 5.75 

CredBLyamais 575 

Cypres Papular Bank _5 75 


Duncan Lawna 5.75 

Beaer Barit LimBad- 575 
Rnandal & Gai Barit _ 85 
•Robert Fleming 5 Co _ 5.75 

Gactarit 5.75 

•Gukmasa Mahon 575 

Hal* Bank fleasi*. 578 

•Hamboa Barit _575 

Heribrie A Gen tav Bk. 575 

•HI Samuel 675 

C. Hare SCo 575 

Hongkong & Shanghai. 575 
JuSan HodgaBar* .._ 5m 
•Leopdd Joseph & Sons 57B 

Lioyth Baric 575 

Maipnj Bank Ud 57S 

Mdord Barit 575 

"MouttBarMiB 8 

NriW«n*i8ter 575 

•BBS adhere 575 


"RmbugheQmntae 
CHpdrdnnUrrAadbno 
kngareuhatadas 
a tanking kBttJfcin. 8 
noydBkotSeaM-575 
•SntMh&Vansn Gera. 575 

TSB 5l75 

•United Bk of Kuna* __ 575 
Unly Trust Bank f4o_ 575 

Wtestem Trust... _575 

MttauoylddkM 575 
VorisMraBMk 575 

•Mantes of tendon 
Investment totting 



Open 

Larest 

Change 

wen 

Low 

Esl vol 

Open InL 

Dec 

9X88 

9329 

- 

9320 

9327 

171266 

403,136 

Mri 

9X33 

9332 

-OOI 

9X34 

8X31 

228304 

42X062 

Jun 

9X83 

9X81 

■022 

9X85 

9221 

140,653 

30X179 




Dec 

9447 

9448 

+0.01 

9446 

94.47 



Mar 

3X90 

9331 

+9.02 

9332 

E^a 

2,154 

10,150 

Jun 

9X44 

9X43 

- 

9346 

9X43 

2,487 

X3S5 


Al Open MMM fig*. tar preriw dey 

ORTlOHgfLWg DMIm polnta oflQOH 


Strike 

Price 

9475 

9600 

0825 

Era. vn tout 

■ EURO 


Dee 

Jan 

CALLS - 
Fab 

Mar 

Dec 

Oio 

005 

008 

Oil 

003 

002 

021 

003 

004 

020 

021 

0 

OOI 

001 

044 


PUTS 

4« Fab Mar 

020 023 026 

CUT 0.43 044 

0.65 066 0,88 

CMs 5442 noBAfwba (tars open Inu CM» 218479 Pus ttMia 
HiAHCOPnoHspTqsFMm pants of inos 


Strike 

Price 

Deo 

- CALLS - 

Mar 

Jun 

Dec 

9575 

021 

012 

0.10 

002 

9600 

004 

005 

aos 

0.10 

9825 

OOI 

n rp 

002 

022 


E*l vd. rad. Cafls 0 Puss a Ptevtaos dsyie opsn tat, crfs 3815 Pub 1813 


PUTS 

Mar 

024 

082 

064 


An 

054 

074 

086 


LIVE FROM LIFFE - 0839 35-35-70 

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-.10 15X0 10.10 XX 6X 
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347771 IMoanj 

15127 TrtzsC 
63150 UAPA 
12403 UCWB 



— 3025 17.75 XX 200 
-.15 1770 12 42 — 


-7510X0 8X0 4X — 
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DnQp 

DOAM 

Toner 

5 

TsMAia 

Tahku 

Tonon 

7m 

ToyoCn 

tmu 

Tojorn 

TbrMi 

loyoSk 

tVdwm 

JSSR 

sr 

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Vfctor 


-10 1XS01X19 
+6 S20 471 
+10 1.720 1JBO 
-10 2X91710 
+10 22001X70 
+20 3X40 2.760 
+50 3.460 2.740 
-2 570 428 
-e 705 S20 
+10 2.750 2200 


s<_. 

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OHM 5725 
8X5 
33X0 
WDBT 30X0 
VittoA 1620 
WlnoOn SXO 
Wfesor 1075 


27X0 IX — 

-.10 3375 1925 AX — 
— 13.10 7X0 OX — 
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-.10 12X0 920 OX — 
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-.10 » 30 3.0 657 

— XO 77 41 JD X3 B8X 
+X5 18X0 11 ZX 40.1 

_ 8.15 2.17 &1 7.4 
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— X3 5A5 3X0 B2 — 
_ 7X0 3X8 BX — 
-50 71 » 2X 19X 

— 1U0 8 ZX 15lX 

_ 37X0 ZS IA — 
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_ 23X0 1425 22 ... 
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+30 2,130 1X10 
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+3 B20 450 

-10 2,190 1X50 
-2 860 028 
-6 795 476 
+10 1XHQ 1220 
+4 m 653 
+25 7G0 508 
-A 188 484 


YacnKog 

YmTom 

'OnzBak 


“ tUfi 


450 

♦7 029 £32 
-7 730 470 

— 1X50 1X80 
+10 1X80 1,190 

_ 788 STB 
—4 878 B7D 
♦1 1280 OBO 
+10 779 433 

-6 823 66* 

— 437 ao 
_ 2,«S® 1.470 
~ 586 421 

+10 Z - iS 1.430 
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+3 733 524 
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— 2250 1.7FO 

S 527 330 
1290 SB5 
+1 605 330 
+S MO 432 
_ 685 34S 
+? 438 385 
♦3 418 272 
♦201X00 835 
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-2 1,010 692 
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— 1250 BOO 
+101X501,110 

+1* 578 350 
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as 1 MALAYSIA (Mom 7 /MYR} 


~ GanMO 
~ ~ MjOM 


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.. _ -J » 8X0 3X2 2X 

23.10 — 25.75 1BJS 1.1 

14X0 -20 19.10 12X0 OX 
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7.1S -XS 8.40 SXO 3.1 

19X0 _ 24.10 18X0 OX 

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8307 HutSSJ 
46725 ffLEni 
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137280 tn«lOS 
342171 Im 
1000 lldii 

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5V -V S5V 5V 
16 — i. X15J* 14V 

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235 

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115 01 — 

247 

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344 00 

13250 


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— 4X0 1*5 IX 
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6000 

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25000 LdOMw 


(NW 17/ SS) 


12 — 
IX ” 


DBS 10.70 
FfSNv 1720 
GdFIA* 2X5 
HawPar 324 
benep sxo 
Kama i3ao 
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OUB 720 
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+X2 axe axe 

■JB O 3.18 
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+2011X0 8.45 


8900 UnUts 

33700 IB3B 
66500 UtCOCh 
194243 


29150 UagnaA 

1 U*M 


157100 


2501 Mary 


19313D0 

4108 , . 

221000 MM 
341B7 MdanA 
S2874 MOOT# 


317025 I 


345943 HawDOp 
I NomA 


~ - NORTH AMERICA 


= ESsSc 


-3 1X30 734 


rx _ 

1X472 


+ 201,120 


— _ AUSTRALIA (Mov 17 / AuStS} 


suoOm sib _ 

Tbynn 292 +1X0 



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« 250 IX _ 


Onas 

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CCF 

OrfonF 

CrLyC) 

CrtxcF 

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19570 -20202*15850 _ 
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161X0 -320 2DSmXI4X 
1299 +13 1,570 1204 32 

44X10 -7X0 465 348 ZX 
284X0 — 4X030080 201 IX 
794 -Z1 1X85 706 7.1 

470 ^ 856 370 XX 

398X0 -0X0 498 36120 _ 


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313 +8X0 478 302 IX 
BBS -2 977 780 2X 
499X0 +X0 749 416 XX 


H Comm XX60 3X82 X340 

XMnttO 2JOS +30 3X852X41 
BHoma 1,728 +482X501X25 

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Bnam 19X00 -400 2086018'*® 
flugo 9280 -6013XWB.110 

Oft 1.3S2 -6 3.100 1X84 

mnSB 1X41 -37 2X12 1,502 

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544 

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188 

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144 OX 


07X0 

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303 

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430 

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400 

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4060 

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240 

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178 23 



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1ULB0 -2X0 

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121X0 -1X0 166 IDS IX 


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701 -1 4 740 .809 2-1 


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319 -4 

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435356.10 5X 
382 290 61 

282 101 141 

743 +171XBB 80S — 

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752 -4 830 035 1-7 

3,460 IX* 7 2.750 ZX 

1286 +2 2X89 1.700 41 

6B9 -8 734 550 2X 

8X0 +JX5 1X70 8.15 72 
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00*81 1X14 -18 61401X50 

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143 89X0 IX 
142 630 1.7 
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-130 23310250 IX 
+3 475 351 1.4 
+7 4B0 3B0 1.4 
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-1 110 08 32 

-130 122 82X0 6B 
128 78 — 

+1 158 106 6.4 

+30 175 105 54 


BSS Si 

Im 1X20 

MBk 2X20 

laaM 387 

man ixoo 

Mtos 400 

taCUH 483 

toYbk SXBD 


l(Hwi 7 /Fhg 


SMO* 7^00 + 2010 ^ 541 ^ 


+3 202 191 — 
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+14 713 SB7 IX 
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-18 747 600 34 
+» B7D 702 IX 

942 an zx 

422 327 — 


— DIET 


005 +40 


4X10 -10 63B0 4X85 

4,710 -1 ' “ 


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+4017001 


— 1BO 7X00 4,148 _ 


1X87 


11.060 Z.7 

-5 2X32 6140 61 
-11 1X72 8S9 14 




♦ TO 745 528 — 

i.ieo asa — 

^ = 

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TORONTO (Nor 17 /Can S) 
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12,790 _ 
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+2 810 751 14 
+30 6.150 5X40 — 

+ 102X701.730 Z 
-1 984 626 — 
+20 1.7701.400 OB 
+1 446 284 .... 
-1 778 605 67 


-3 ... 

-10 2,120 1 
+2 400 
-4 848 
-4 716 431 — 
-101X40 822 OX 
+30 2X00 2X50 69 


13.400 6780 
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-10 1470 1 
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— 1,660 1X70 _ 
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-1 420 336 ... 
+11 626 SIS OX 
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+10 2X70 2X30 _ 
+® 623 4JS ... 
♦1» 1X10 1,110 -. 
♦3 500 338 — 
+Z 4ZZ 271 — 
+2 467 303 _ 



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+2 536 402 _ .... 
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-20 2X80 2.110 64 




... 2X70 

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+3 1.000 870 _ 
-30 7X80 8X50 OX 
+90 6540 4.450 
+B0 4.650 3.370 
-10 1.920 1X60 OX 
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+71.100 925 
+10 1400 1X00 1 6 



4X0 

IXC 

610 

HoOimn 625 

Samoa 677 

SmmHur 6.73 

StoOwa 6-GOia 

SOicll 2.78 


BXS 3 m 
-X4 11.12 842 
-XB B.10 3.63 
+X611X0 7X8 
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— XB 5.77 3X3 
+ 02 479 3XQ 
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—06 20.78 16 

-XS 358 2X0 
+ 4.02 615 
-03 1X6 064 
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-06 5X0 lie 
+02 648 4XE 
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+05 3X0 2X6 
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— 1X2 0.76 
+ 050 034 

-X3 8X2 3X5 
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-03 140 OlBB 
+X5 345 244 

+ 02 a 60 2x0 

— 147 DXB 
-X4 2X0 2.07 

— 3X0 2.12 
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__ 1.78 1.18 

= tsai 

-05 2X2 1XS 
-.1011X0 675 
-m AMO 203 
-OB 18X4 15.70 
+.04 3.40 245 
-X2 3X9 Z47 
-201004 670 
-JH 4X1 2X5 
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_ 7X0 025 
-.07 7X0 615 
-■06 2-79 1X0 
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♦XB 2-16 1 -38 
+X1 Z43 1.63 
-XS 348 200 
-XT 4X5 240 

DJ5 5X0 

-.12 4X0 2X3 
_ B.2B 
-JBS 6X6 4X0 
+XS 1.74 T.T5 

c+ j ug 

+.10 6X5 4X2 
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-.12 7.10 5.73 
._ &£H 4X6 
-.05 3X0 2X5 


5BQ00 

8217 

826280 

6010 

2 D 0 

3*8524 

485951 

2800 

42080 

26032 

9028 

2EE30B 

22700 

14453 

1000 

142700 

253716 

75130 

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65.73 +1X5 7X50 48 3.7 

11.76 — 14X5 7JO 43 

3025 +25 36 2230 3X 

34,45 —J05 42 90 43 

24 +.75 24 19X0 44 

04 +.75 80 53-76 0.1 

15X0 +.101575 7X4 IX 
130 — 130 87X0 IX 

3850 _ 472326 _ 

70-50 +X0 20-75 1X7B 7X 
34X0 +X0 34X0 18 14 

472 + 4X5 2.15 IX 

100 +2 104 55 1.4 

119 +1 122 78 1.7 

72X0 _ 84.50 63X0 3.7 

68 +.75 75 41 2.7 

05X3 +X0 TOO 75 14 
70.50 +X0 a 15X0 _ 
3BL50 — 39-50 20 1.4 

79 — 91 58X0 BX 

5X0 -.10 725 4.75 8X 

44-75 +X3 B8X0 37X0 22 

IM«W 27 +-75 3&75Z3X0 IX 

mw»cn 18 +-75 28X0 1BX0 1-4 

itetPt 112X5 -.16 128 73 IX 

SaStin 1326 +.7513X0 8.70 — 

' 1*25 +25 20 15 2J) 

100 +28 IDS 79 IX 

SAMnAm 56X0 _ 68 2950 12 

+125 37 27 22 


+1 104 102 21 

+25 66 40 IX 

+126 48 2326 1.7 

+3 490 358 3.4 

— 78X0 33 4.1 

+1X0 230 1B1 ZX 

— 8044X0 32 


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fcpnanmqaoMmBa 
Mnncrtt Wtodad 
m hr Wt, aiw Itaeati fl 

oatoai mwaOnnl Bi 

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FT PRS ANNUAL REPORTS SBWICE 

... aim r mail I | i*n ■anjiili 

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toM H * Mat ■ to tot mdi* a* attain 


■ TOKYO - IjOST XCTIDE STOCtCHc THanctay. Nouetntoor 17. 1B64 



Stocta 

Closing 

Change 


Stocks 

Ctosina 

Change 


Traded 

Prices 

on <tejr 


Thadad 

Prices 

on day 

Nippon St»et 

axm 

388 

+1 

M’btsH Heavy 

- 3J2m 

748 

-1 

Koyabo hid 

_ 5JBm 

683 

+21 

MWDEot 

3.0m 

1-070 

-60 

SlomoMBU 

4.6m 

■ ■ S37 

+1 

Yaskawa Else 

_ Zjam 

571 

-12 

Kawasaki Steal „... 

_ 4.3m 

420 

+2 

NKKCorp 

_ 2L8m 

283 

+5 

Sharp 

3Jm 

1^00 


MHsui Min 

2.7m 

430 

+6 


4X 111 
ex 

ix _ 
3X _ 


5X _ 
19 — 
OX — 


72 BX 
62 _ 
6X _ 
BX _ 


INDICES 


US INDICES 


Nov. 

17 


16 


NOV 

IS 


-IBM' 


HOh 


UW 


MW 

17 


■1994 


16 


HOD 


low 


earwt) 


1 1840122 18825X9 2567040 IBS 17»UB 2QH 


KflkNlBU 


M 2510.41 2*58.151 28H.17 6A 


1957X3 ZW 


M QnUHriBOtVUSq 
M MEdnori/Iittn 


18224 19403 19414 2348X8 3(2 
9833 9B1.1 BB&2 1138.10 3(2 


17/11 

5A 


(SSTUnenpriU 

C8SASMM83) 


430X 430.4 43010 «4XD 3in 
775,1 Z757 Z75X 294X8 31/f 


TUB 
257X8 7TA 


CRAfiMenCDTUMMI 38014 337.10 3K.17 400X0 20 

Itaded Ma&VBl) 1CB5X2 1081X8 10088 12Z22S 1/2 


mat 2sno 

101128 8B 


8SL2D (U1A1) 
Brad 

Bom,* 08/1203) 


138027 139125 1391X4 1X42X6 BE 
M 400900 M 5815980 13® 


7/10 

3fl 


IMbtoiari9«(IB79 
Ompodef {l®3 
FWWbS (VXB3) 


U 3950X9 3951X7 <278X2 20HQ 
U 41 71 JO 4168X0 4B0BJD 230 
(9 2020X9 703090 2182X8 V2 


204 

24fl 


Cap. 40 (1/7JBR 204821 203002 2042X3 209X4 3 fl 

UbSMC!(1AS> 1057X3 105072 1055X0 1211.10 2®2 

PU» 

1 Oonp CVUB6) 2904.10 2901.45 2B27.7H 330037 4 n 

SIX (I977J 2B232 29100 290 12 3228X0 IBS 

S5M^5pm(2W79 671X7 570X8 57086 841X1 471 


1945X1 un 
980X1 21* 
250733 9/3 
261280 206 
37229 4M 


Dew Jomm 

to 

IB 

to 

15 

to 

14 

1994 

U#l UW 

EtnamfeteQ 
ngv Low 

NMU 

3845D1 

38+035 

3829.73 

387036 

01/11 

359035 

m 

387856 

PVlflfl 

41 JZ 
(2/7/32) 

Hunt Bcolt 

9tli 

9435 

3446 

105X1 

BUM 

9424 

(16/111 

10077 

nanotssi 

5459 
(1/1 OBI) 

Transport 

148357 

148447 

146274 

18BZ29 

FW1 

143050 

(BhOJ 

186229 

(2/2/94) 

12J2 

®n®) 

uww 

17054 

175X4 

177/43 

ZZ7X6 

earn 

17555 

ova 

250*6 

(31/8/93) 

1050 

mm 

DJ IniL Deya IWh 3864.38 (387145 1 Ld» 380082 B 794.40 ) ntocntoaHH 
CAWO hlph 38*5X4 {8856.31 ) Law 3820X1 0807.86 > |AcUJd*J 

Standard and Poon 


Compote t 

46500 

46003 

46004 

48256 

09 

43092 

m 

48250 

02*4) 

4.40 

(1«32) 

lotoMteV 

SS5X5 

55453 

555J8 

563.10 

BB/1H 

51005 

B1«1 

56010 

Gsnofto 

3X2 

P1W92) 

Ftoncrt 

4204 

<2.64 

4275 

4094 

P4A9 

*1X9 

m 

toM 

pwsn 

064 

tmont) 


F&a Got PW2OT W 36608 S89L9 987928 IBrtO 

a prt c w g pnaR 34007 34543 30 x 3 xi&tb m 

UntLlldTUlTTlUfH 18400 19307 1922X 1MOBO 40 


380L2D 4ft 

337.18 am 
tamo an 


JSE &*1 (2a®78) 
JSEML (28W7B) 


MadddSE ( 30 ( 12*9 


Z1B9XV 

216JL0 

21600 

253400 7/9 

17*8X0 14/2 

NYSE Com 

254.71 

25452 

254X4 

267.71 

21114 

257.71 

4.46 

BDIOJOV 

6B60D 

88000 

8818X0 17/11 

5448X0 19/1 




m 

(4/4) 

02A4) 

CSW42) 






Amor MB to 

44039 

44061 

4407? 

487X9 

422X7 

487X9 

2031 

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TT1075 

112550 

113075 8/11 

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78064 

78002 

76014 

wm 

69379 

803X8 

54X7 

391.79 

302.76 

30024 

85031 31/1 

28885 26/10 





(1801 

P409 

(1B/3M 

(31/10/73 


SBF 250 pt/izan 
CAC 40(31/1 397} 


1264X8 12B7-BB 129978 158529 30 
1927X3 195070 195053 225093 30 


1227 JB 25/10 
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AMaanMNn <1»37} 150040 1314X0 1B052D 1ED3XB 31/1 


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SudH Gk tad (31/12(5Q 122049 1Z10ES 1205X4 142034 31/1 
SBC Ganert (1/4*7) 921.42 923,46 91002 180329 31/1 


113072 27/10 
818X7 27/10 


WM0fetfr-C9OttBGT 3337X8 6346.78 8381X0 7191.13 3OT 


MmS^I/lSflQ 81079 821 JH 810Z7 TWIXB ltfl 


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BXbMimi 415013 411179 409S4B *82007 1XB 

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16*1X8 184071 180107 2BB2.1B 201 


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109114 1/7 


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Today 

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VSCaRM M (1/1/70)5 6E5JT 8204 B27X B40SO 2H1 


51 BUS IB/3 
119009 4/4 
129B07D 24/3 
891X9 4/4 



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Nov 4 

Oct 28 

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Dow JoneG hid. Dtv. Yield 

2.7B 

2.78 

2.70 

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Dec 

466.85 

466.45 

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467^6 

46026 

70/537 

207,255 

Mar 

459.90 

48050 

-0.40 

47020 

469X0 

3X45 

30381 

Jun 

474.10 

47026 

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47A10 

473.26 

540 

4957 


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128048 5/10 
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29928 21/3 
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FINANCIAL TIMES 



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Complete details below and send to: FT Crtyfine International, 
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Address: 

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38 








FINANCIAL TIMES 


4pmckaeNamnber1 ? 


NEW YORK STOCK EXCHANGE COMPOSITE PRICES 


THL n 
m % £ 

0.48 10 21 
{LIB 1.0 40 105 
1X8 2J 22*387 
108 1477 : 
12 05 
2JJ0 42 31 2SI 
076 Z3 18 684S 
050 13 11 18 
052 15 12 
10 

044 IX 22 


at# 


17 *s 12*8 «« 

18% 12%ALUteA 
79% 57% AW 
72% 48% AM 
9 3% MS 
56% 38% ASA 
33 25% ABUS. 

19% 11%AUUFr 
23% 17% ABM M 
18 11% Acpborti 
31 22ACELU 

12% 0ACH Bat tnx 1X0110 8 
io% 8%«CHBianix oxoiix 

10% 6% ACBSnSpx 09613.7 
12 7% ACM OK SB ( 1X913.7 
11% 7% ACM Mm I 1:08113 
9% OACmbqgdx 072 07 
15% 6% ACMBCH 044 17 24 
13% 6*2 Aetna Bed « 

20% 33AomSa 060 11 14 

13% 5% Man 038 18 2 

18% 11% AtiMtrt 28 482 1 

16% 15% Atana E9QR- k 068 4 2 03382 l 
84 46% Ad Mas 3X0 OB 275 


31% 16% Addle 
6% SAdrestQp 
20 TSAflmtae 
64 48%AaqonADR 
69% ** Aetui 

38% 23% AfbCX 
22% 16$ Aterwnx 
4 i% Atom be 
50% 38%AWC 



100111 a 7243 2*5 
01S 10 15 40 
010 05 17 57 IB 
147 23 12 75 
178 00 6 4BZ3 ______ 

046 15 12 2065 34% 34% 34% 
0lB8 S3 8B5S1 17% 016% 16% 
1 222 1% 

098 21 22 1370 46% 


18AktMRtX 030 15 9 534 


m 19% Akgsibe 
17 i«%AHens 
30%21%AfcTdt 
18% 13% Atria Ak 
21% lfttWanrM 
17% 13% Aim) 
2B% 19%MbCl£ 
24% 17% AIDterA 
30% 25% ABdan 
28% 19% AfcnMx 
B5% 4S%AkOStX 
30% 23% AtaSmai 
22% 14 AtadV 

24% i7AtaghLnd 
26% 19%Aft0> 
25% 13% Aton Con 

30 20Alonimx 

4% ,•« Anon 

27% 17% Aha Cap 
9Ata»Q 
. 21% AM Hsh 
3ftAMSgx 
11% 8% Aimer 
29% 24 AM Dp 

7% 4$A*w»» 

35 21% AtlOBX 
38% 64% Alcoa 
30% 17 Aba Cp A 

11% 7AmGmtae 
8% ftAmPrwte 
8% 6% AfHDfil 
25% 19% AnzalM 
52% 44 AnxBttJ 

9$ ftAraAQR 

31 20% Am Bant* 
37% 29% AoBmd 



33 134 27% 

154115 11 36 15% 

1228299 28% 

020 15 30 524 17% 

035 15 24 527 18% 

020 14 18 1140 14% 

028 1.1 18 86 25% 

028 12 17 22 23$ __ 

044 15 20 3634 28% 29% 29% 
030 150314074 25% 24% 24% 
154 15 SO 501 57% 57% 57% 
070 25 4 214 26% 26% 26% 
010 05152 286 20% 19% 19% 
048 25 80 206 19% 19% 19% 
15* 85 10 574 20% 20% 20% 
018 0.7 22 B19 24% 24% 24% 
044 15 17 2894 U30% 29% 29% 

i ns % {1 n 

154 87 10 1SS 19 18% 18% 
018 15 474 9% 9% 9% 

080 35 13 42 23% 23% 23% 

057 ID 13 5035 34 % 33% 33% 
054 95 ?! ft ft 1H 

056 35 18 3332 2B% 20% 28% 
101113 6% 6% 0% 

14 2323 ZT 26% 26% 
150 15487 4854 84% 82% 32% 
42 2712 19 18% 19% 

098 125 551 7% 7% 7% 

025 14 18 38 7% 7% 7% 

008 1-2 12 605 6% 6% 6% 
0S2 25 12 138 20% 8J% 20% 
060 1.3 62 829 47% 46% 48% 
024 25 54 9% 9% 9% 

010 04 27 6434 23% 22% 22% 
_ _ . 200 55 10 1736 34% 33% 34% 

25% 15% Am Bug fttf 050 35 12 TO 20% 20% 3J% 

B 6% Am Da? Ik x OSS 95 300 6% 6% 8% 

20% 18 Am Cap B4 154 91 29 139 17 16% 16% 

23ft 1B% An CapCV 156 55 0 26 18%d1B% 18% 

I 42% AraCyan 155 15 30 3258x183$ 100% 100% 

— ' ' 140 75 10 4131 32% 31% 31% 


37% 27% AoGPwx 
33% 25% An&gr 
30% 2*$Andtarf 
9% 5% Am Bonin 
27% 18% AmHVlft 


050 15 1112827 31% 30% 

1.16 45 21 1773 2B 27% 

077111 761 6 5% 

230 115 47 IBS 


31 


43% 3B%Asrrtdi 
43% SArwoohc 
18% H%Amen* 
64% >9%ADaax 
9% 6% Ampam 
5% &%Aimbc 
34% 3&$ ABHOU01 
4% 2%Aaaaxiei 
58% 42*a Anrtnta 
3B% 23% Antes 

29% 24% Angelca 
55% 47% AaBadix 
3* 19% AMtran 
19% 14% Arttaaiyfei 

j 30 Aon Cp 

29% 22% Apache Crp 



2D 19% 20 

20% 16% Am Hartga a 056 3.7 10 169 IB 17% 17% 

65% 55$Aritanrax 100 45 1311503 65% 64% 65 

2% 2% Am Ht**s 0.75 275 4S 14 2% 2% 2% 

96% 81% ADM 046 05 14 4392 94% 93% SW% 

11% 6% AmOppkc 150116 8B3 7% 7% 7% 

30 22% Antoan 058 17 11 296 24% 23% 23% 

34 IB Aa Pratt x 040 15 101305 24% 24% 24% 

8% 7% Aaa RaMEs 044 55 4 1 1Q 7% 7% 7% 

27% 21 AnSBr 048 1.7 14 2311 27% 27% 27% 

22% 16% ta HMrn a 156 7 A 7 17% 17 17 

32% 2BAm«ttr 156 4.1 11 222 26% 2B% 25% 

152 47 IB 39(7 40% 40 <0% 

158 16 5 58 35 33% 33% 

024 15 B6 155 17% 17% 17% 

120 18 16 4679 61% 81 61% 

010 1.4 8 32 7% 7 7% 

012 10 65 35 U5$ 5% 5% 

1.40 45 9 1210 29 28% 

10 214 2% dZ% 

030 07 48 1979 45 44 

27 TO 35% 

094 35 18 25 26 

150 12 13 2011 50% 60% 50% 
__ 24 265 33% 33% 33% 

a 14% Arttamy fei 044 15 16 18 17% 17% T7% 

30AWCP 158 45 11 2092 32% 31% 32% 

' 028 1.1 35 2631 2B 24% 25% 

10% 7% ApuMxiFx 072 8.7 793 8% B% 8% 

25% 14% AW 30 224 24% 23% 24 

7% 2$ AflpktMao 1 35 ft 3 

25%16%AppiPMAx 012 05 18 218 24% 23% 

29% 21% ArchDn 015 05 20 8527 29 26% 

51 43% Anar Daml X 250 5.4 17 46 46% 46% 

S1% 45% Arnica 43* 450 98 22 48% 45% 

7% 4% Amen 127 5S5 8% 8% 

29 22% Aram 2. IP 11D 03 2 22$ 032$ 

57% 39% AmttW 158 11 121230 41% «? 

45% 33% AimBac 131627 38% 

7% 3% Alta Grp 1 101 4 

33% 23 Anil kid 078 10 14 340 25% 24% 

34% 31$ Asxcnx 940 L4350 21013 28% 26 

31%22%AaNdCMx 048 15 34 44 30 

44% 33% AMI 1.10 15 12 626 38 

25% 16% Ada Pm F 037 15 103 17% 

028145 5 82 2% 2 2 

012 03 31 1760108% 38% 38% 
152 15 1769574 62% 51 52% 

180 1.1 2 247 247 247 

38% 28%Afctaflaax 108 65 13 167 31% 30% 30% 

0% 6% AflabSoa 026 45 7 6 6% B% 6% 

21% IBAMeEm 154 95 9 562 19% 16% 16% 

112% 02% ArtdlX 150 55 « 2168104% 103% 104% 
10 3%Ata 1 240 3% dS 3 

20% 18% ADbob Bro 052 13 18 30 17% 17% 17% 

12% 8% AtMiADR 034 35 692211 9% 9 9 

24% 17% Auprix 016 09 14 385 18% 18% 16% 

_8AurttaRI 019 15 62 6% 8% 6% 

060 15 231010 57% 57% 57% 

044 10 12 26 14% 14% 14% 

004 04 10 245 10% B% 9% 

060 1.6 14 2026 38% 37% S7% 

250 12 17 1546 63% 82% 62% 

10 25 11% 11% 11% 

12 210 6 5% 5% 


3% 1% Ana km 
36% zftAaaNtQaa 
57% 48% AT&T 
253% 220% A3 Mdl 2 X 



a a 

19 7% 

45 30% . 

83% 46% Awj#Tx 

U% 10% Again Dap 
7% 5% ABM 


048 

080 

005 

152 


38% 81% BCE 168 
9% 8% BET ADR 021 
6% 3B*nco Has 
17% 14$ Bator Fentx 030 
22% 17 Baton 0.46 

27% 21% Bator Etc 
30%24%HCp 
15% 8%BM*1 
9% ftBaly 
2S% 20% BaME 
20%l3%BaKMBp 020 
38 26 BncOni 154 

20% Z0%Bano«V 054 
12% 9%BmnCartH 072 
34% 2S%Boi)Hntox 154 

_ 

l 81% Ba* ft* a 148 
29% 22% BHBam 155 
48% 44 ft BOttl Pi 100 
33% 25Bar«7 156 

50% 42% BankAmA 355 
85 TOBanUmB 650 
84% SBBATtf 350 
40 30 Dam 158 
30% 22% Bart 1C re OGO 
39% 29% tones " 



28% 21% Bam 
28% 23% Bay St 
22% 18% BOTH 
33% IS BtoS 
50% 43SBOSII 
37% 27% Bertl) 
32% 23 Baas 


- B - 

05 13 TBS 33% 

12 15 30 6% 

55 57 88 4 

11116 250 14% 

24 29 SOB 19% 

15 20 52 25% 

11 75 5D2 29 

05 20 308 10% 

10 1517 9% 

75 11 3703 21% 

15 23 585 U20% _ 
45 81X08 26% IQS 
35 9 81ii26% 2B% 

03 8 IBB 11% 11% 
45 7 2888 2S$tf24% 
33 313 1 1 

1.4 17 54 56% 58% 

40 718366 41% 83 

6J7 ZlOO 81% 81% 

41 7 5323 27% 26% 

85 3 44% 44% 

43 B 3745 % 29% 
75 13 43% 42% 

65 8 73 71' 

12 65EB9 59% 

18 12 132 39% 

13 12 713 26% 26% 
IS 16 16 38% 36% 
41 8 2804 40% 639% 
05525 1164 10% Hf 

19 20 1439 34% 

10 *313818 27' 

03 12 ! 

95 50 1! . 

35 81006 151% 

75 5 43 

21 19 30 34% 

15 25 52 30 




lEOMBUKr WAT MOMS HM UTC 




Dual 1 Bit 4 Times Oversampling 
Digital Filter 




BBCTBOMCS 


IBM 

■Bh U*3Kk 

48% 3»%ae*w» 

7% SBedflY 
59% 49BaW 
22% 13% Sal In 
BS% 

55%43%BabAx 
25% 20% Bandsx 
69 S1%Banal43P 

44 34% Band 
38% 24% Benetton A 

1% %BmguatB 
19% 13% too 
tSBSBlSlDOtoM 

10% BBany tor 

45 ISBeSBuy 

28% 25% BenStlx 
55% 50% BaWmiPfi 
24% 16% BdtlS 
53% 42% tec L 
16% 11%BMEIX 
21% 11% BtortB 
32% 72 BkrrAig* S 

25% 16% wm 

22% i7%8fe*HfLi 
10% 7%BUfltkAd»x 
6% 5% BUaddnci 
10% 6BUsGkTolx 
48% 37%Bbeh 
8% 6%BUaCHp 
16% 0% BMC bid 
50% *2% todnox 
30% IBDotaeC 
21% IOBbBB&N 
26% 9% Sank? On 
19% 11 Barden x 
24% 18% BosnCel 
29% 20%BnMr 
39% 18% toflFnd 
34% Z97 a BRE top 
45% 32%BrtoSt 
33% 19% BrltoW 
60% S0%Brtly6q 
74% 54% Br Air 
54% SSMQrn 
85% 55%0Px 
27 1B% BPPmdho* 
27% 18 BStefll 

71% 53% 8T 
28% 21% BWpU) 

38% 32%B«i®P 
8 5% BnWSn 
31% 2B%BmftaB 
32% 24%8ftir 
4% 3% BRT 
25% 17% Bnsakx 
18% 13% Bnsh Hfefl 
<1 32%B«*«mPt 
28% 10% Burl tad 
68% 47 Bltl 

49%35%BrtiHaat 
19% 15% BumiBnift 


n l % e in IBM Um (Me 

074 15 15 1907 « Je <7% 

038 05 1C 17 5* 6% 5% 
2.76 5.4 15 *506 50% 50 50% 

0.40 1.6 14 621 22% 22 22 

178 53 1S125M 52% 51% 52 

nm i.i 19 271 54% 53% 53% 
064 13 17 1539 34% 23% 23% 
430 85 3 50% 050% 50% 

,.?2 46 9 773 37% 37% 371J 

047 1.9 14 27 25% 25 25 

004 SJ 15 305 B ft % 

048 IB 12U38 18% 17% 19% 

3 j7B 19900 19600 19900 
0.(0 10 70 370 10% 10% 10*2 

40 2588 43% 42% 42% 
f pi bj 17 26% 56% 26% 

5.00 99 14 5160% 50% 

0« 13 6 5685 17% 17% 17% 
1.44 11 22 87 47% 48% 47% 

19 8549 15% 14% 15% 

O10 0 6 70 316 18% 16 16% 

040 U) a) 3039 23% 22% £2% 

040 1.8 21 2257 24% Z4% 24% 

132 68 11 53 ie% 19% 19% 

073 05 69 7% 7% 7% 

075112 1639 6% 6% 

070 &4 733 8% 5% 8% 

US 11 25 2Z7S «% 40% 4J*4 

0.12 19 334 6% d8% 6% 

006 05 15 330 1^3 16% 16% 

1X0 12 15 7812 45% 45% 45% 

060 16 5 768 24 23 % 23% 

006 03 39 184 18% 18% 18% 

106 9 JB 10 2017 22% 21 21 r 


toga 


004 03 10 3601 13% 13% U 
135 5.5 6 4 23% 32% 

080 2 3 27 1716 25% 


US 5.5 6 * 23?a 32% 22% 

25 25% 

027 05 785 35% 34 34 

2.40 ?X 15 47 30% 30% 30% 
1X0 3 0 5 595 33% 33% 33% 
24 3123 22% 22% 22% 
192 48 15 7741 uGQ% S9% 59% 

1.77 19 13 T039 61% 61% 61% 

140 5.1180 870 48 48% 46% 

1X8 13 49 1470 80% 80% Efl^a 
1.74 91 10 229 19% 19 19% 

032 i J 48 927 24% 24% 24% 

3.77 02 14 972 61% 81% 61% 

1J5 6X 12 243 22% 22% 22% 
1X0 5.0401 100 X!%1132% 32% 
032 « 3 20 6% 6% 6% 

195 13 13 132 29% 25% 29 

068 14 18 3832 2334 28 28% 

35 7 3% 3% 3% 

044 14 14 2873 1 812 017% 18% 
032 10 14 50 15% 15% 15% 

2X0 82 8 26 34% 33% 34% 

11 1326 11% 11% 11% 
1X0 15 II 807 48% 48% 48% 
0X5 1.5 31 4371 38% 37% 37% 
1.44 84 17 68 15% tf15% 15% 


- c - 

048 12 24 349 21%d21% 21% +14 
040 07 15 2289 57% 56% 56% -1/* 
084 18 10 537 22% 22 23% 

16 12 55% 65 65 

IJ8 16 24 1320 53% 52% 52% 

056 18 37 162 20% 20 20 

1.78 28 12 1907 68% 67% 67% 

040 1.2 13 94 30% 30% 30% 

34% 17% CabtoSHto 064 3J 17 3167 19 TS% 18% 

S3 33 Cdfatni 25 17*6 49% 48% 49%. 

29 24% DdxAC 056 ID 14 67 27 % 27% 27% 

23% 17%CrtXX06Ci 0.16 1X412 208 17% 016% 16% 

21 IfttaneOagn 38l 333 u21% 21 31 

58 35% Ceeaara m 1310614 45% 43% 43% +1% 

2% 1%CStRs4E 010113 \ 01 1% 01% 1% 

016 1.4 29 168 11% 11% 11% 

17 515 17% 16% 17% +% 

01751 It 10% 19% 

040 It 30 21 19% 19% 19% 

1.12 15 16 4144 045% 44 45% +1% 

_ . 82 1503 ii % % 

14% COflK 033 11 40 2138 15% 15% 15% 

85% 60% CBPQI 020 OJ 21 2S81 84% 83% 84% +1 

14% 10%C*U1X6x U611X 306 11% 11 II -% 

37% 18%CVSU1£ 1X0 ax an 31 31 2D 

42% 20% CapaU Mga 3J214X 6 123 23% 23% 23% 

28% 15% Canmrt 0X4 02 19 9369 19 18% 18% -1% 

080 14 14 3 33% 33 33 +% 

II 133 21% 21% 21% 

020 10 10 358 9% 9% 

1.70 6X 12 645 S% B% 

140 4.3 11 156 57 56% 

_ _ 033 15 22 356 13% 13% 

18% 12% Ctccft NG 096 72 Tfl 62 13% 13% 

21% U% Ca*Co 020 1X 114511 20% 19% 

10% 7% CaMAftarx 005 OB 14 186 7% 7% 


35% 21% CS J 
72% 50% CBS x 
25 19% CMSEn 
32% 59% CNAFn 
541; 44% CPC 
21 % MCflCtnx 
92% 65% CSX 
31 19% CTSDxp 


15% 10% odoon On 

19% 15% Q*W 
15% 9%Cdtof 
25% 17% CBtoxaCn 
44% 34% GOINS 
Jg %CrtpURa 


. i5%Caramrt 
35% 30% toUax 
24% 18% DandoO 
13 8%CrttoFr 
30 22%C«1>aL 
68% 54% QX*T 
B% CaraWM 


60% 50 CaH- 

10 10% CO) Cop 
36% 28% Outer Fair 
13% 8% Caffin 
, 20% CMin 
30% 22% Cartr ftten 
25% zo% Cana tool 
T5 lO%OarfrlMn 


30% 20%CM» 
32% 21% Cartuyll 
27% 18%Clrtte 
40 zacraxpii 
12% 7%aupnTXl 
15% 5%CtaetHaa 
40 30l 2 ChmM 
6% 1%ChausaB 
21% io% cnexsy 
38% 30% Owned* 



ft 


060 1.1 13 8072 57% 

18 409 17% 16% 

_ _ 225 7.9 ID 302 2ft B2B% 

S ft Carta 0X0 13 1 2207 ft 6% 

20% Cart* 020 IX 51180 20% 62ft 20% 

108 ax 8 133 24 2ft 2ft -% 

1.46 8.B 10 IBS 21% 21% 21% 

0X0 7.3 9 581 12% 12% 12% 

30 2*%Datt-NMp 096 10 17 28 27% 27 27% +% 

22 12% Cent Mild 1.42103 10 330 14 13% 13% •% 

1.70 04 112050 20% 020% 2D% -% 

032 IX IB 87 31% 31% 31% ' 

1471M1 26% 28% 26% 

020 08 353035 38 34% 35 

020 15 15 33 8 7% 7% 

18 1*0 9% 9% 9% 

1X0 4.4 512514 38% 36% 36 

1 138 5% 5 

56 224 20% 20% 

104 6X 17 143 33% 

“ B 

31 


ft 


11% 7% own male 020 11 31 2282 

22% OWfllMata 072 13 24 206 


47% 39% Oman 
55% 40 %CWbRixI 
ib% u%aaaBrx 

8% 5 Chock hi 
41% 32010ft 
34% 24% QtMwb 
BSh 43% Chry* 

eft Bftcnui* 

74 570081 
9% 6% 00*1 HI 
37% 26% Otoivkix 
2ft i5%aa<M 
27% iftCMM 
4% ftCtoptaxO 

27% aftowniy 
:if% 26%C8»cn* 

27% 1ft Orate O 
40% 20%an»Or 
47% 38% DBm 
26% 24% CHGP9.12 
SB 72% QcpPCAd x 6X0 03 
83% OcpPOAdx 7.00 03 
17% 12% CBA UOA 
17% 13CW UDB 
12% 7% CXrKSrt 
12% 7% CUE 
2ft ft Cbm St 
71% sftctertd 
26% ift cram Hm 
11% 9%CkmartB6 
89 84 0aw7X6 
45% 34%Oava 
88 61% CMMBx 
57% 47 0001 

2 ft 21 % ateMed 
13 B% CMA hcaiiB 1.08 10B 
18% 11%CQactanen« 024 1.7 


A 


ft 
20 % 

33 +1 
35% 

A 



1X5 4X20 5815 42% 42% 42% 

1.4S 11 183 47% 47% 47% 

020 IX 460 13% 1ft 13% 

B 83 ft 6 8 

13 142 
37 21 32^ 

1X0 10 517330 S3% 

1X4 18 11 2815 71% 

104 45 13 1313 87% 

090119 443 7% 

2X9 01 11 

OBO 42 21 35B 19% 18% 18% 

036 IX 36 424 25 24% 

50 712 3 2% 

041 IX 72 3401 21% 21% 

2X0 7X 10 43 28% 26% 

010 04 17 1873 2ft 25% 

18WJB57 22% 21" 

060 1.4 717550 44' 

128 02 52 

20 72%d71% 


19 301; 30% 30% +1 | 
SB 18% 18” 



3 84% 84% 84% 
17 635 13% 13 1ft 

1.S2 11X 6 716 13% 13% 13% 

020 10 13 994 10% 10 1ft 

0X8 IX S3 448 6 7% 8 

012 IX 10 IBB 11% 11% 11% 

10 370 67 65% 65% 

008 OS 13 4006 16% dIB 16% 

057 SB 34 9% 09% 9% 

75611.7 iSO 64% B4% 64% 

1X0 IS 10 470 37% 37% 37% 

7.4011X Z50 84 64 M 

1X2 14 16 1022 50% 55% 

030 1.3 11 25 23% ' 

20 10 

8 » 14% 137 



032 13277 1203 14% 13 
040 IS 1311495 27% 277 

078 IS 2715134 52% 51% 

0X5 03 41 1115 19 1ft 

015 09123 842 18 17% 17% 

25 37 32^ 321, 3ft 

1X4 16 16 G4S0 62% 82 62% 

185 7S 366 8% dB% ft 

060 06 758 7 6% 7 

070 TIB 1W ft 5% 6 

05B 06 *07 ft ft 6% 

132 12 5 874 25% 25% 25% 

012 D 3 1614795 3ft 38^ 39% 

0X6 1.6 18 264 22 21% Z\T 

1.2B 4.6 6 146* 77 26% 

050 16 16 25 16% 18% 


20% IftOomeriter 
71% SSDxbE 4X5 
3ft 23CoaEdx 
7G 67% Dm Ed Pf 
29%20%Dtfrt 
47 3SCIBM& 
52% 41% Cntoi 
68% 48% (HM 
20% l1%DmSbra 
B6% 35% Conseco 
60 47% CPwr 4.16 
100 MOtr?^ 
IBA. B3%ConP7X8 
12% ft CUt Mole 
28% 12CarHCp 
10% 8% (tear Ate 
11% lOConvHPf 
8% 4%CttmCnra 
3% ii Cooper Cm 
62% 34% Caopb 
28 % 21 " 

15% 8 _ 

29% 24% OsH 
35 27%Cnn1ng 
ift ii%Cauns»Tm 
19 l2%Qmatry0 
18 15% CBrabsPr 
12% 10% CHg 
29^2 24%03W 
17 14%0 m(Mx 
33% 17% Craw 

nss 

8% 4%CHUaB8 



19 ncwtSaf 
33% 25% Cnsad 
52% 38% Oca C 
19% 14CU3&1 

23% 16% DMt DMl 
36% aft Cutortr i 
65% 49% CoiflPa 
11% B% Oteinto 
ft 6% [Mortal H 
7% 5% Ddortall 
B% BOdDrtdM 
30% 2l%CUGBa 
4ft 36% COHCA 
24% 17%CUldterax 
31% 25% Comaito 
29% 12 Cunwrt 

39% 21 CunmlMet 048 1.9 14 96 

25% 20CBnmEd1X 1X0 00 77 21 201. 

26 21% CBM*Ed2J0 2X0 03 2 5 21% 21 

19 9% CHrtnPayOSB 3X 41 1526 10 9 

42 24%Canpaq 1312121 4ft 

1% % COmprehens 18 IIS u7% 

27% Crtpfta 0X0 0 4 24 68S8 47 

31%Cmgfid 24 801 47% 

10% ft Const TOP no 1.3 3 54 7% 

30 IftCmnxat* 078 3X 11 2970 20% 
33%2 S%DrA0> 083 17 16 2756 31% 

31% 22% Connect N6 1^8 05 12 34 22% 

25 19% Qamct Bi 1X0 6X 11 82 19% 1ft T_ _ 

8 2495 12% 12% 12% 

4X5 OS 2100 56 55 55 

109 02 81200 24% 24% 24% 

5X0 Od 32 69 57% 58 

20 1409 22% 21% 21% 

1.94 5S 16 1B5B 35% 35% 3ft 

1.26 19 27 941 45% 44% 44% 

ISO 18 15 764 53 52% 53 

19 484 17% 17% 17% 

0X0 IX S 350 37 38% 37 

416 BX 250 47% d47% 47% 

7.45 IB 2100 85 BS » 

7.EB 9X 2 

7 216 7 
1X0 07 61 1126 14' 

004 04 154 

1.1611.6 203 l 

2 502 
4 148 
1X2 16 IS 955 
DoqbrTW 024 1.0 16 1446 
anted 024 13 10 409 10% 10% 1 

1X6 5X 93018 28% 2ft 25% 
0X8 12 57 3107 31% 31 31 
012 09 92 13 12% 12% 

032 13 9 2501 14% 14 14% 

059 05 18 273 15% 15% 15% 

21 20 19%ff1(]% 10% 

are is re 219 

OSD 13 13 

7 408 
1.W 4.2 9 919 
1.18118 8 462 
IS0 11.2 4 103 



24% 13%Cmnp«l8X 0148 12 151012 1: 


41% 33*20*105 
13% 9% CRSSterx 

35% -jOJCM 
17% 12% (Un 


272537 

012 1.1 X SB 10% 
072105 184 7 

081103 38 8 .... 

33 3582 30% 2ft 
080 fi.7 S3 4 14 14 



14 


1X0 12 7 «4 45% 44% 44% -% 


IBM 

■01 low Stock 

1ft UftCumnin 
37 32%cnswr 
11% Bit cv Red 
13% 7% CycrtSjH 
23% iftcyprsm 
33% 24% CipAnP 

41% 13% Cyme 


nd. pr Sk 
Ih * E lODi Ate 

096 SB 12 « 10% 10% 10% 

100 18122 57 35% 3ft 3ft 

108 11.8 8 12? 9% 6% 9% 
10 571 HU 13 12% 
31 2305 tC4% 23U 23% 
080 13 33 1376 36% 25% 2ft 
im 978 35% 35% 3S% 


arpe 
Dm Pm. 


+% 

-% 

-% 

*% 


- D - 


21% 18% OK HOUgi 1 18 
20% 13% Oats San 
30% 21% Data 084 

4ft seoaanrQ) 012 

13% 10 Daniel M 018 

11% 6%0abGn 
7% 1% Oacipolnt 
9*4 6% Dates Haw 020 
86% 64% Craw i 168 
2% % DOLE) 

8% 4 Da Sob 0.14 

33% 25% Dam Foods « 0.68 
' 31% DeanHO 0 50 
7%DertnCvi 060 
64% Deem 120 
,C DefIMFfl 
16% MmPl 1 S* 
33l; Btartt < 020 

12% 8% DelB Wdsd OW 
38 25% Detect 148 

101 84W«7*5 7*5 
103 88% DWEd7 68 766 
30%»%DM&) 106 

26 SIDaterCrt DBS 
24% 17% Dfeq Pro® 0*0 
24 19% OUDd 050 
30 23% Dtramd 9> t OS6 
14% 8X0 Dana Cm 
46% 34 DletxSdi 086 

38% 18% OWE 
37%2S%DHri 012 
48% 37% Dtiner OJO 
35*2 23% Dnieftl^ 040 
4ft 34% OomBes ISO 
6% 4% Pcmar Inc D25 
26% fflDonatoon D28 
32% 26% Don*, i 0 &1 
SS% 50% Oww 1 iK 
78% 56 %DohOi 260 
*1% ZftftmJra 084 
21*2 1ft Dwmey SSL >1*8 
34*2 37% DOE 1 68 

28% 20*2 I«P»P TUB 
13% 9*2 Draw 052 
19 Dressr OM 
7*2 DrfUsHSi 066 
B% Drtua SI G > 0X1 

11% 3% Drtn a m > an 
76% 59 Du Pent* 5 4 90 

43 12% rtjKaP* > 1 96 

27% 20% Duke HUT « IX* 
64 55% Dunam > 160 

62% 48% DuPnrt i I 88 
29% 23% Dual. 41 105 

Z7>2 22% DuOSneJ.75 1X8 
29% 22% 0uqsm4 00 2X0 


11 



29 

Tj Dud. 42 

110 

84 - 

1 

35 

025 

a 


29 

23 DupU* IE 

2X6 

86 

1 

24 

24 

24 


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87DuqL 7 2 

720 

7.9 

z» 

91 

91 

91 


47U 

%Dmacea 

088 

10 25 1273 44$ 

44 44% 

ft 

11% 

8 DVTHBi S* 


23 

308 

10% 

10% 

19*4 

ft 

21 

13 Dynamics 

ozo 

10 15 

32 

19% 

19*4 

19% 

ft 


17% 4% EEC htf 
19 14% aas 
48% 38*2 ESyann 
27% 21% Eaa UlHs 
27% 22% E Erdp 
55 39*2 EasCh 
56% 40% EKodak 
62% 45% Eaton 
35% 24% Ectto 
23% 19% EtObbK 
32% 21% EDbw Bn 
24% lftEdmda 
6% 6*2 Ekco Brute 
25% 15% BcorDip 
8% 1% Sect Ass 
9% 5% Efv 
5 1%BsM 
23% 12% EMC Cop 
9% 7% Emorp finny 
65% 58% EmanB* 

7% 5% EmprtM.75 * 
20% 15% Dfe 
16 ft Eagby Ban 
55% 40% Endesa ADR 
23% 19% EnapanDm 
12% % En01rd 

16% UEmbtote 
455378% Enron 10X 
34% 17% Emu 
24% 18% Enron QIC 
101% 88% EracWUPE 
19% 12% Bondi * 

11 5% EnsndlEx 
37% 32*2 Entmyx 
33% 19% EntmraCo 
2% ij ECK Ready 
30% 21% EqUtax 
2 % KEquBBE 
36% 28%EqrtddeP 
13% B%Eatoftu 
18% 10% toy) 

14 IfttonpeFd 
16% 8% BnjHDi 
17% l3%Enetekr 
106% 5ft Bconi 


- E - 

020 2X 16 215 10% ft ft 
Q9S L731B 302 *5% 15 15% 

1 20 30 13 1146 40% 39% 3ft 
1.5* 72 B 58 ?1%(C1% 21% 
1 40 5 4168 163 2ft 25% 2ft 

ISO 11 15 2818 53 51% 52% 

1.60 13 20 6877 4ft 47% 48% 

1X0 2 4 1 3 1428 51*2 50% 50% 

0.76 2.4 15 963 31% 31% 21% 

044 2.1 15 413 21% 30 21 

1X4 5 5 32 32 23% £1% 22% 

0X6 IT 7 949 18 17% 17% 

45 5B 6% 6% fi*» 

022 1 4 10 107 tftd!5% 15 
8 193 
5 70 

11 953 
DX2 2.2 22 8493 
012 IS 193 . . 

1.72 2X 17 2341 62% 81% 

0.47 04 20 ft ft . 

1X8 8.3 12 122 15% d15% 15*2 

8 458 ft 9% 8% 

1.09 2.4 13 197 45% 48% 4S*2 

1.12 5X 9 19 21% 21% 21% 

048 21 93 920(122% 22 22% 

OSB A3 11 117 14 13% 13% 

NUB 04 Z100 450 450 450 

0X0 2.7 16 4566 3ft 29*2 29% 

012 0X 27 2259 20% 1ft 19% 

7.00 7X 5 89*2 89*2 69% 

0X0 1.4 25 2S7S 14% 13% 13% 

030 11407 S3 10 ft 9% 

1X0 80 12 5140 22% <02% 22% 

32 S26 22*8 31% 21% 

1.1055X 7 466 2 01% 2 

062 2X 18 411 27% 27% 27% 

0X8407 0 74 % d}[ ft 

1.18 41 14 100 2B%d2ft 28% 
3 38 12% 12% 12% 

050 48 14 4065 10% tflft 10% 

075 6X 82 12 11% 12 

IT 8 10% 1ft 1ft 

1X0 08 87 14% 14*2 14% 

300 4.9 1613911 81% 80*2 61 



4% 2% FAI fetar x 
1ft 12% FT Denim 
18% 11%Frt1Crt 
36% 35%Fnd«l 

8 6% Fean* 
21% 7% Fan* Inc 

I ftFayaDnij 
82% 48% FadMnLn 
58% 44%FOn2X7G 
! 1ft Fed fifty 
I 4%FM*a 
I 57*2 FedBqi 
57% 9D%FaM0 
90% 72% FedTSM 

32 20% FoFBd 
21% !7FedandSg 
a% 18% FarDepiSt 

i 21% Faro Carp* 
i 22%FUCan 
1ft 8% mu 
33% 15% togertaji 
4ft 32%fHAnB 
aa Fans 
37% 31% Fla tend 
98 71 RAChACra 

51% 47% FHCMCPC 
■01% 88*2 FteCHacpC 
E>% 41% FstQdB 
48% 40*z Fs« 

37% 32 Fa Fd 2.1 
18% 11% FMFrt 
82 51%HntFnM 
85 62% FrtW 
22% 12% Feats 
23% 1G%FflPMF 
48 39% FaUdoo 
53% 5i%naupT 

10% ft FOUnR 
40% 32% Rot Up 
35% 2ft Ftetr Co 
41% 30%Fle«F 
27% 18% RmBi 
30 22% HetnOkz 

SSiSS?" 

20% 16 Ftom 

56% 4ft Ffenr 
65% 45*2 FMCCp 
7*a 3% FWC6d 
48 41% FVHBCSB 
17% 11% FtooNG 
35 2ft Ford 
*0% ft Forts 
"* 32*2 F<&flMix 

. 13% HM* 

3ft 27% Ffl. 

14% 9% Fraica Gro 

9 5% FnddPr 
SI 33%tortdFb 

42*2 31% Frafllgyv 
■ 3% FiftadAa 

, 2% FiHwdBx 

21% lfttoMctl 

17% 20% FitlcMA 
26 71% RzwOn 

33 23Fftoom 
7ft 60 FdAoEn 
16% 13*2 Fufcm Day 


SO GATH 3X76 
38% GAIN 
. 47%GBC0 

*ft 7%6RCW 
35% 2S%SIEX 
19% 14% GTE F 1XS 
12% lOGaMEq 
36% 2ft (Mote 
16 11% Batata La 
4% ,-1%GatvHdn 
59 46%Gavdt 

4ft3ftGaptoc 
38%25%GCCoa 
11$ lOGaotaltl 
2ft 16% tow I 
tt%11%Qnp 
22% IftOMtaax 
57% 38Gtefiyn 
56 46GBEtec 
6% 3% (ten Host 
16 ftGcnHoua 
62%4ftGrM 
Oft 38%0aoHtrz 
38% 27%MIKa 
40% 31$ GnM&He 
»%2ftGBfU 
Cftl91%Gnfla 
38 3ftOM9fl 
(% fl% Ganantata 
!% i% Canaan 
JS 1ft GanewSB 
7% 4% Game tae 


- F - 

007 25 « 10 

1.12 64 201 

012 OX 17 85 
3X0 OX 10 
040 69 22 10 

5 1698 
0X0 3.0 10 11 
1.04 IX ID 2731 
2X8 5.5 284 

1S6 7X 31 312 
048 62 9 541 

14 2409 
0.46 12 15 2308 
240 03 911145 
1X0 3.7 40 1471 
042 ZX 19 427 

11 8682 
05* 2X 15 807 

9 906 
OXB 14 38 17 
016 IX TO 5994 
1.68 SX B 1345 
1.18 3X 10 4528 
0.40 IX 12 262 
6X0 85 
150 74 
850 7.3 
120 4X 
2X0 44 
115 59 

003 01 

0.10 OX 2 2900 
3X0 4 1 9 5065 
0X5 1.6 13 1439 
078 36 92 

1X4 AS 8 1770 
4X3 03 
040 55 
132 39 
1X0 44 
150 52 
056 18 11 3286 
1X0 51462 770 
048 12 17 139 
1X8 6X 131173 
OBI A4 21 101 
052 IX 19 3120 

48 146 
0X5 IX 5 52 

1X0 18 17 104 
0X4 IX B 235 
104 17 617523 
090106 42 

0.74 2X IB 566 

11 52 
168 51 1113754 

004 04 458 

080 8 7 600 

0X2 OX 13 424 

12 486 

0.OS 13 7 

DBS IX a 15 
1X5 7.0197 1698 
060 28 63 1592 

are 12 g 29 

13 1259 
ara ox s is 
axe as 107 


-G- 


3 3 3 

13% 13 1ft 

15 14% 14% 
37% 37 37% 

6 % 6 % 6 % 
8% 8% ft 

is* * 

52% 51% 52 

52% 52% 52% 
Z1 20% 

8 5% ft 
59% 58% 59% 
22% 71% 21% 
73% H72 72 



6 

9 140 
9 1ST 
8 623 
8 5325 


89% 088*2 88% 
49% 4ft 45% 
46% *5% 4ft 
38% 36% 38% 
14% 14 14% 

61 66% 60% 
75*3 71$ 72% 
21% 21% 21% 
21% 21 21% 
41% 40% 4ft 
52% 52% 52% 
7 6% 6% 
34% 34% 34% 
28% 27 27% 

31% U30% 30% 
20 19% a 
23% 23% 23% 
3ft 2B% 38*2 
29% 2ft 29% 
1ft 18% 18% 
4ft 44% 44% 
59% 59% 59% 
4 d3% 4 

43% *3% 43% 
(5 1**4 14% 
28% 28% 28% 
8 % 8 % 8 % 
35 34% 34% 
1ft 15% 15% 
33% 33 33% 

10 % * 0 % 10 % 
7 dft 8% 
39% 3ft 3ft 
34% 33% 34 

ft ft 
17% 17% 

23 

23% 23*2 23*1 
2ft £B% 28% 
74% 73% 74 

IS 14% 15 



I 524 10% 
1 15 47 32% 
r z 13% 
5 81 47 1% 

1 16 5007 <9% 
1 17 3053 37% 
17 183 29% 
l 77 10% 
* 7 30 18% 
I 1? 228 11% 
i 164 19% 
I 11 1167 41% 
I 1518377 49% 
I 1 224 4% 

!14 86 14% 
1 te 2215 57% 
I 637173 40% 
I 23 2103 38% 
1 21 1343 34 

! 20 751 25% 

’ 15 1236 117% 
i 20 1939 38% 
43 7014 48% 
0 634 2% 
8 378 13% 
TO ZW ft 


51% 51% 
41% 41% 

a a 

30% 30*2 
15 15% 

Sc St 

'S’S 


•i 



10 % 10 % 
18% 18% 
dll M% 
d1B% Ifllj 
40% 41% 
«% 48% 
ft 4% 
14 14% 
Sft 5ft 
39*2 38% 
36% 3ft 
33% 34 

as as 

115% 116 
3ft 3ft 
44 45*2 

2% Z% 
813 13% 
Oft 4% 


19M 

rtgb UMfitt* 

39% 33%GwuPI 

uU 21% GrgbQt 
n 56%Q0BP| 

104 90*2 Gigte7 72 
16% 12% Gatw 50* 
12% 10% tommy Fd 
12% 5% GanH 
16% 1ft Gtay Pair 
14% SOanlGrp 
10% 7% GtertMa 
7t% 57% GHB 
21% 15% tow 
16% 10% (Seoul Co 
7*4 5% GtetalGor 
9% 7% GUM he 
5 ftGUiidllar 
6% 6 Otari YU 

46 36*2 GWteFn* 
48% 39G0HI 
51*2 47% Gam 3S 
49*< 3r%6d|orz 
12% 7% &dtBdB* 
48% 38% GracaWR 
59% 52% Gm0W 
M 23% G MM 
27% 19$ 6WFT 
17% 12% 6rsa1 G Eu 
C 46%aiXkHC 
w 35ara>h« 
21% 15% arm 

31*4 23% Gram Mi P 
34% 21*2 6wn Her 
17% i2Graliertna 
19% 13% Grow 
*2% 9% GnMlhSpn 
40% ig&TibAcn 
16% 9Guattmai 
24% 18% GuBort H 


at n u 

Oh % E WOr 

115 3X 15 753 
19 7431 
1X0 13 51 8019 
7.72 8X 5 
032 26 18 111 
018 14 159 

115 105 
0X6 OS X 56 

Q IK 

030 18 16 9E 
1X0 1X 32 3197 
0X7 AS 14 4079 
040 2X203 2 

0.44 7.7 1158 

0.71 09 334 

437 3826 
050 BX Z757 
034 1.0 8 792 
2X0 5X 29 502 
3X0 7.0 7 

0X0 23 9 2081 
a 315 
1.40 3S 13 786 
OSO IX 16 1179 
1X0 47 17 291 
080 1*157 3*4 
OJH IX S3 
040 0.7 14 103Z 
4X0 10.0 12 S 
092 5J5 44 4SBB 
212 0« 10 12 
0X5 OX 11 725 
0X8 13 14 19 
0X8 21 15 101 
015 IX 561 
40 3833 
032 3X 14 113 
O.GO 2.9 9 430 


o> 


19% 1ft 
14% M% 


3ft 


20% +% 


14% 13% 
20% 20% 



- H - 

19% 13%HWHcara 0 96 7.0 71 

23% 16 HK Tel ADR 0.61 10 Z3 2580 

Ift 13*; MS Prom 1.12 5 0 35 118 
3% 24adaon 1 71 

37% 77% toMp 1 00 2X487 S8SB 
5% Ztttewnd 1 53 

10 ftHVsckFan 032 A3 24 181 

17% 13% trend! Inc 1.28 02 18 

24% 17% tfcoctum 1X6 9124 
14 loranderoan 044 AO 11 959 11% 11 

17% 13 Hasty ton > 0X0 1X14 140 16% 16% 

28$ 23*2 Hanra* 0X4 12 17 403 24% 24% 

76% 19% tamtam 0J8 <5 17 141 25% 24% 

4% L Hanson wr G652 1 & 

22% 17% Haem ADR 0 94 53 13 3438 18% IB 

39*; 30% HacGn 064 IX » 560 35% 35% 

24% 20%Hartandi 0.98 A7 12 233 21% 20% 

29% 21% Harley On 0.16 06 46 1551 27% 26% 

38 24*2 Harman kb 4 0 16 0.4 17 248 35% 35% 

26% 18*2 Kartg 0*0 IX 20 2188 

52% <1% Hants x IJ4 18 13 1530 

46% 38*2 Hama 1.45 3X 13 88 

53% 42% term Stn 2X0 02 17 366 

0X0 10.7 20 137 
138 SX 11 


A A 

A A 

31 30% 
14 13% 

UM 7X 14 S32 27% d27 

Oje IX a 172 7 8% 

69 3341 37 28% 

32 239 37*2 37% 

O05 OX a 1158 10% 10% 

0X4 OX 23 687 29% 29 

. 1.(4 39 15 260B 37% 37% 

Oft 22% Hfltene Cut 4 0J4 0.7 17 2D 33% 32% 

31% 24% tomrPi 0X0 1.7 33 290 29% 28% 

2X4 IX 19 2097 117% lift 1 
130 IB 16 767 «% 46% 
1X0 IX 16337500102% 99% 
0.44 BO 0 8* 5 _ 


7% 5 ftertrrn 

16% 15H»Haci 
36% a% Itouraaifix 235 TJS 12 IK 
16% 13 HltnRel 1X2 9.4 12 3BB 

32% XT Health Ca 
7% 4*2 Mm tnaga 
39% 23% Hstatam 
40% 25*2 MBBOuCe 
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