The Los Angeles Times from Los Angeles, California • 46

CoeAnflelesffimeg 2 Part IV Saturday. March 4, 1989 NEW YORK VOLUME MARKETS AT A GLANCE DOW JONES 30 INDUSTRIALS BRIEFLY Friday. Mar. 3. 1989 7-UP Parodies Coke, Pepsi: while' Diet coke and Pepsi continue to take commercial pokes at each other, Diet 7-UP has decided to parody both of them in a new TV campaign that will break Monday.

But unlike the Pepsi and Diet Coke ads which flaunt major rocks stars and 3-D technology one 15-second 7-UP ad even features an announcer who mocks the competition when he confesses, "No big rocks stars here." According to recent research data, Diet Coke is the biggest selling diet soft drink in the U.S., with 7 of the market, with Diet Pepsi second at 5.3 and 7-UP third, with 1.6. Rehnquist Won't Intervene: chief Justice wiiiiam h. Millions of shares 60 40 20 300 80 60 40 20 200 80 60 40 20 100 80 60 40 20 i Friday, March 3. 1989 1 ii isr mi DnaD DOW 30 NYSE 8.58 0.69 2,274.29 163.90 Ml AMEX 1.27 326.22 WILSHIRE 11.841 2.884.118 NASDAQ 1.46 403.99 i.r mi i 1.23 291.18 See FEB. MAfl.

3 I 10 17 I 1 I 3 1 FEB. I MAR. 3 10 17 24 3 Rehnquist refused to diock tne partial merger of Detroit's two daily newspapers. Rehnquist turned down an emergency request by opponents of the business agreement. He had been asked to delay the partial merger of the Detroit Free Press, owned by Knight-Ridder and the Detroit News, owned by Gannett until the full Supreme Court could consider a formal challenge.

Attorneys for Piihlip Pirizpn a Washington arivnra- Li jJr cy group founded by Ralph Nader SP I that had handled the case on behalf of opponents oi tne partial merger, sent a letter to the clerk of the Supreme Court asking that the matter be referred to Justice William J. Bren- William H. Rehnquist Up 8.58 in Slow Trading nan. If Brennan rejects the request for a delay, Public Citizen could ask each justice in turn to consider the matter. WickesWill Reorganize Into 3 Units By DENISE GELLENE, Times Staff Writer The investment partnership that owns Wickes Cos.

said Friday that it has reorganized the company into three groups and hired a new executive to oversee its industrial operations. Wickes' new owners also said the company has received $400 million from the sale of nine businesses and repeated that it is "seriously looking" for a buyer for Builders Emporium, Orchard Supply Hardware and Wickes Furniture. A New York partnership formed by investment firms Wasserstein, Perella Co. and Blackstone Group acquired the Wickes conglomerate for $538.9 million last October. That partnership, known as WCI Holdings, has been busy reshaping the company to focus primarily on its manufacturing operations.

Richard M. Clarke, 57, was named president and chief executive of the newly formed Wickes industrial group. In that role, he will oversee Wickes Manufacturing, which makes automotive parts, along with Wickes Engineering and Collins Aikman Wallcovering. He will also be responsible for running Wickes' corporate office in Santa Monica. Clarke had been vice chairman of Hoechst Celanese Corp.

and a director of its parent, Hoechst AG. At Hoechst, he oversaw various chemical operations. The two other of the three main groups at Wickes, which were established previously, are the Kayser-Roth Hosiery Group and the Collins Aikman Textile Group. In addition, WCI Holdings created an eight-member executive committee that includes Wickes co-chairmen, James R. Birle, a general partner of the Blackstone Group, and Robert B.

McKeon, managing director of Wasserstein Perella, and Clark. The new decentralized management structure contrasts sharply with the highly centralized organization put in place by Wickes autocratic former chairman, San-ford C. Sigoloff. Wickes said it disposed of the Cole of California, Catalina, Colonial Corp. of America apparel manufacturers, and Mode O'Day clothing stores.

Wickes also sold Yorktowne A. J. Schneierson, Calvin Klein Underwear Sleepwear, Her Majesty Industries and WCI Financial Corp. "We are making excellent progress in the restructuring and rebuilding of Wickes," said Birle. Bhopal Judge May Quit: A judge who ordered Union Carbide Corp.

to pay $470 million for the Bhopal, India, gas disaster threatened to quit the five-judge panel and withdraw his judgment because of criticism of the settlement. "I am not saying that we are infallible, but you cannot carry on the mental torture on us," Judge E. S. Venkataramiah said as the panel assembled to hear a petition challenging the Indian government's authority to reach a settlement with the Danbury, Conn. -based company.

Venkataramiah's statement stunned lawyers and spectators in the packed Supreme Court chamber, but legal experts said it is unlikely to affect the settlement. Nissan Ad in Spanish: Less than one week after Pepsi ran a national Spanish language television commercial, Nissan Motor Corp. said it now plans to run a local spot in Spanish during Sunday's broadcast of the Los Angeles Dodgers pre-season opener against the New York Mets. The 30-second commercial is scheduled to air on KTTV, Channel 11. The ad, which has been running on Latino television stations for several weeks, promotes Nissan Sentras and pickup trucks.

Nissan officials estimate that Spanish-speaking customers represent 20 of Nissan's sales in the Los Angeles market. stable prices if necessary. The Nikkei 225-share average fell 73.63 to 32,000.10. On the London Stock Exchange, shares closed firmer after Wall Street recovered from a lower opening. The Financial Times 100-share index closed 19.5 higher at 2,059.2.

CREDIT Bond prices were mixed in lackluster trading, finishing little changed despite early declines in the face of an overnight drop by the dollar. The Treasury's benchmark 30-year bond was down 116 point late Friday. Its yield, which moves in the opposite direction from its 20 2300 80 60 40 20 2200 80 60 40 20 2100 80 Dow Edges From Times Wire Services NEW YORK-The stock market pieced together a moderate gain Friday in a quiet session. The Dow Jones index of 30 industrials rose 8.58 to 2,274.29, stretching its gain for the week to 28.75 points. Advancing issues outnumbered declines by about 3 to 2 in nationwide trading of New York Stock Exchange-listed stocks.

Volume on the floor of the Big Board came to 151.79 million shares, down from 161.98 million in the previous session. Blue chips have been depressed by fears of future rate hikes, which hurt stocks by raising corporate borrowing costs and luring investors away to interest-bearing assets. But Friday's trading was listless, analysts said. Blue chips attracted interest only because investors sought cheap purchases after last week's 79.28-point Dow loss. "There is a tug of war in investors' minds between inflation fears and recession fears.

This indecision caused a directionless market today," said Donald Hays, director of investment strategy at Wheat First Securities. Texas Air, the most active issue on the American Stock Exchange, dropped to 13 as President Bush decided against intervening in the labor dispute involving the company's Eastern Airlines subsidiary. Among other airline issues, Delta Air Lines gained 1 to 56V4, Pan Am rose V4 to 4V and NWA climbed VA to 694. But UAL dropped 1 to 119 and AMR was down 'sat 58. TW Services rose to 28VS in active trading.

The stock traded lower for much of the session on word that a Delaware court upheld the "poison pill" defense the company is employing to fight a takeover bid by Coniston Partners. In foreign trading, Tokyo shares fell amid a slumping bond market after Bank of Japan Governor Sa-toshi Sumita said Japan will take adequate, early action to maintain The Securities and Exchange Commission is investigating possible insider trading in Pillsbury Co. securities by a former partner in the Minneapolis-based law firm of Dorsey Whitney, the law firm said United Airlines has filed with the Transportation Department for exemption authority to begin nonstop service as soon as possible between Los Angeles and Mexico City. Leading Indicators Jump; Factory Orders Take Dive Renewed Takeover Rumors Give Lockheed Stock Boost The price of Lockheed shares rose $1.75 Friday on the New York Stock Exchange on renewed rumors that aerospace giant Boeing Co. may try to buy its Calabasas-based defense contracting rival.

Lockheed closed at $49.50 on volume of about 757,100 shares compared to Thursday's 234,900 after Business Week magazine's "Inside Wall Street" stock-tip column quoted unidentified sources as saying that Boeing, based in Seattle, is keenly interested in Lockheed's defense contracting business. Reports that Boeing is interested in Lockheed are not new. The company has been the subject of periodic takeover rumors in recent years, and analysts said they do not give much credence to the new report. They noted that Wall Street's reaction also indicated skepticism in that the stock did not advance to its 52-week high of $50,125. "I would sell Lockheed stock while it's up," said Paul H.

Nisbet, an analyst with Prudential-Bache Securities in New York. Lockheed is not likely to agree to a takeover, he said, "and I can't imagine Boeing going after Lockheed or anyone else on a hostile basis." Nisbet explained that hostile takeovers among defense contractors are extremely rare in part because the Pentagon would vigorously protest any action that might disrupt the business of one of its prime suppliers. -LINDA WILLIAMS 0 Los Angeles Times price, was unchanged from late Thursday at 9.12. After surging Thursday, bond prices opened sharply lower in response to the dollar's decline overnight in foreign exchange overseas, analysts said. A declining dollar hurts bond prices by reducing yields available to foreign investors, who are sizeable holders of dollar-denominated debt.

The market recovered some ground after reports that Venezuela was making payments on its $33-billion foreign debt conditional on the success of its government austerity program. The dollar finished lower, but did not drag the bond market with it, analysts said. The federal funds rate, the interest on overnight loans between banks, was quoted at 9.50, down from 9.813 late Thursday. Lincoln Sale investor group headed by veteran thrift executive Spencer Scott had expired. The firm said it would continue to negotiate with the Scott group while entertaining bids from other suitors.

"We are certainly willing to work with Scott, but we will be looking very closely at other sale options as well," American Continental Chairman Charles H. Keating Jr. said in a statement. In a separate development, the U.S. Attorney's office in Los Angeles confirmed this week that Lincoln is involved in a criminal fraud investigation.

A spokesman for the office declined to discuss the matter, however. It was not clear if that investigation was related to the SEC inquiry. "It's doable and feasible, but it will require additional capital from somewhere. When you are day-today with all your supplier accounts, as I understand they are, anything incremental can be very serious." "They are valiantly trying to save themselves at the 11th hour, but my feeling is they are going out of business," said KWHY's Harris. "This isn't a surprise to anyone; they've been losing subscribers for years." Indeed, when SelecTV merged with its rival pay TV service, On-TV, in 1984, the combined company boasted nearly 300,000 subscribers in the Los Angeles area.

Stock Manipulation Probed in ing to the Cincinnati Enquirer. "We are reviewing trading in the stock," said Enno Hobbing, an association vice president. His agency oversees the national over-the-counter securities market on which American Continental is traded. American Continental's common stock, which sold for more than $7 a share just 2 weeks ago, has plummeted to nearly $3. The firm's preferred stock also has declined in price, selling at around $6.50 share in recent trading after holding steady just weeks ago at more than $10.

That drop has been blamed on persistent rumors that plans by the Arizona firm to sell Lincoln had run aground. Earlier this week, American Continental said that its agreement to sell the thrift to a Los Angeles From Associated Press WASHINGTON -The government reported Friday that its chief economic forecasting gauge posted its second straight sharp gain in January, rising 0.6, but analysts expect the strong economic picture to fade later this year. January's rise in the Index of Leading Economic Indicators followed a 0.7 increase in December, providing fresh evidence that 1989 opened on a strong note despite widespread expectations of an impending slowdown. The index, designed to foretell economic activity six to nine months into the future, was up and down during much of last year. In a separate report released Friday, the government said orders to U.S.

factories for manufactured goods declined 1.3 in January, reflecting a fallback in demand for transportation equipment from record levels a month earlier. Analysts said that despite the overall decline, the report provided evidence of continued economic strength. Excluding transportation, orders were up 0.2 in January after a 1.8 rise in December. And the category of non-defense capital goods, viewed as a barometer of future industry investment plans, rose 1.6 in January to $40.1 billion. Contributing Elements At the White House, Press Secretary Marlin Fitzwater said January's rise in the index of leading indicators "shows a moderate level of growth which we believe is conducive to a healthy economy." However, analysts cautioned that the latest signs of robust economic activity could heighten concerns that the economy is speeding ahead too quickly to contain inflationary pressures.

That, in turn, could increase the risk of a recession by causing the Federal Reserve Board to act too aggressively as it pushes up interest rates in an effort to slow the economy and restrain inflation, they said. January's leading index report was the first to be released in a revised format in which the Commerce Department dropped two of 11 components from the composite index, revised two others and added two new indicators. Eight of the 11 indicators advanced in January, with an increase in the index of consumer optimism making the biggest positive contribution. Other factors pulling the index up were rising stock prices; in- INDEX OF LEADING INDICATORS Seasonally adjusted index 1982 100 146 142 138 134 '89: 145.7 FMAMJ JASONOJ 1988 1989 New base year Source: Commerce Department FACTORY ORDERS Total new orders in billions of dollars, seasonaly adjusted '89: 235.8 240 230 220 210" 200 190" 180" 0 FMAMJJASOND 1988 1989 Source: Commerce Department Loa Angelea Timet creased raw materials prices, signaling high demand; a longer average work week; slower vendor deliveries to companies, indicating strong demand; an increase in manufacturers' unfilled orders; a drop in initial claims for unemployment benefits and more orders for new plants and equipment. Three indicators made negative contributions, including a contraction in the money supply.

Other negative factors were a decline in manufacturer orders for consumer goods and fewer building permits. Estimate Doubles for Bailout By ROBERT A. ROSENBLATT, Times Staff Writer WASHINGTON The cost to of President Bush's savings and loan rescue plan will be at least $84 billion during its first 10 years, more than double the $40 billion estimated by the White House, the Congressional Budget Office said Friday. And rising interest rates could drive the taxpayer share to $104 billion or more, Acting Director James Blum of the budget office told the Senate Banking Committee. The Bush Administration has estimated that its plan to shut down or sell hundreds of insolvent will require cash outlays of $157.6 billion in its first 10 years, with a cost to taxpayers of $39.9 billion.

Under the Administration proposal, the program would be financed with premiums collected from healthy and sales of 30-year bonds, for which the Treasury would pay the interest. In sharp contrast, the budget office said Friday that the outlays will reach $205 billion, with expenses of $84 billion for the Treasury. Blum said Administration estimates failed to reflect the full amount of Treasury borrowing needed under the complex financing plan. Rising interest rates also could boost the cost of the rescue program in several ways. Healthy thrifts would suffer declining profits as they are forced to pay higher rates of interest on new deposits, compared with the interest they receive on old mortgages.

This could increase the number of that become insolvent, adding to the burden. FOR THE RECORD A table accompanying a story on minority contracting at Southern California utilities contained 1987 and 1988 spending figures that were in error. The numbers shown should have been expressed "in thousands." For example, 1987 spending on white-male owned firms would be $4,040,136,000, not $4,040,136 as shown. From Times Staff and Wire Reports CINCINNATI-A Cincinnati brokerage has been subpoenaed by federal investigators looking into possible stock manipulation involving American Continental of Phoenix and its efforts to sell Lincoln Savings Loan of Irvine. But the head of Queen City Securities said the firm was not itself a target of a Securities and Exchange Commission investigation into questionable trading of American Continental stock.

"We haven't done anything wrong. We are cooperating with the SEC in any way we can," said H. Garrett Frey, Queen City's chairman. Although SEC representative Mary McCue would not confirm or deny that a probe is under way, the National Assn. of Securities Dealers has confirmed that both it and the SEC are investigating, accord STATION: L.A.

Continued from Page 1 beginning conversions this month. We feel this is a very positive thing for us. MMDS is a growth industry, the wave of the future in wireless cable." Hunt said the company expects to have 2,000 subscribers converted to the new service by the time SelecTV's contract with KWHY is up at the end of the month. He acknowledged that "we may lose some subscribers" during the transition, "but we're highly confident that some of those people will take a new and better service back. We'll take a dip and then go back up again," he said.

Larry Gerbrandt, a senior ana Broadcaster to Dump SelecTV lyst for Paul Kagan Associates, a media research firm in Carmel, was less upbeat about SelecTV's prospects. "I don't want to predict anyone's demise, but obviously this is a crisis situation." "Their job is to minimize the loss of subscribers," Gerbrandt said of SelecTV management statements. "They have to try. You have to struggle to the very end and try to keep the business alive. As long as you have subscribers you can probably patch together some sort of service.

Then it becomes a question of overhead and how many subscribers you lose." "Multichannel MDS could give them a new lease on life," he said..