Daily News from New York, New York • 53

mm $78.75 55.C0 $10156 $8700 $55.93 4 -5i6 154g I. jGuiipisg odd jEmdDD qoOgl 'jdoktSddoii' ntfff LEGENDARY THEATER attracted megastars like Brandy, shown in a 1995 taping of "It's Showtime at the Apollo." close ties between Rangel and Inner City chief Percy Sutton. Earlier this month it appeared the foundation had struck a deal to produce 12 new shows while the investigation continued. "We have no desire to see the Apollo Theatre close its historic doors," Sansverie wrote in a letter to Rangel. But the cameras never rolled because of a dispute over terms: Sansverie said the Strides continue as UA17 gathers LAS VEGAS With 15 of the United Auto Workers' members idled because of strikes at two General Motors plants, UAW leaders gather today for a week of politicking, debate and cheer-leading.

Negotiators recessed yesterday without an agreement Most of the 115,000 GM workers affected by the strikes have been without work for only a week or less, and expressions of strong support for the union's stand against GM are common. That support could weaken if the plant shutdowns last well into July, as many expect But while the strikes likely will dominate discussion at the UAW's 32nd constitutional convention, they are not expected to pose any problems for the union's fiery president, Stephen Yo-kich. Delegates are all but assured to reelect him overwhelmingly to a second and final three-year term. It's appropriate that the UAW is meeting in Las Vegas. The union is betting that its high-stakes strategy will force the world's largest auto maker to slow or end the erosion of dues-paying jobs.

In just two weeks, the strikes at parts plants in Flint have virtually halted GM's North American production. Though ostensibly over local contract issues and grievances, the walkouts have allowed UAW leaders to focus public attention on GM's expansion of jobs in Mexico and overseas while it eliminates U.S. jobs in the name of global competitiveness. GM says it plans to invest more money in its U.S. operations than any other corporation about $21 billion through 2002.

The company maintains that it needs to reduce jobs to increase efficiency. The auto maker has grown increasingly confrontational with the UAW during Yokich's tenure. A top executive warned last week that the latest strikes may cause GM to reassess its U.S. investment plans a warning aimed directly at its union workers across the country. tfirg By PETER GRANT Daily News Business Writer The escalating controversy over Harlem's famed Apollo Theatre is threatening to draw the curtain permanently on the showplace's popular television show.

An investigation of the theater's finances by state Attorney General Dennis Vacco is preventing episodes of "It's Showtime at the Apollo" from being taped for the TV season that begins in September, executives said. All shows in the current season were taped last year by the show's producer, Inner City Broadcasting, whose contract expired in December. The nine-year-old show may be forced off the air if episodes are not produced soon, officials of the Apollo Theatre Foundation are predicting. And Rep. Charles Rangel, the Harlem Democrat who chairs the nonprofit foundation, has warned that the theater itself may close if the show does not resume production quickly.

In a recent meeting with Matthew Sansverie, chief of the attorney general's charities division, Rangel said that unless taping begins soon, "the Apollo Theatre cannot remain viable and will likely A sinmaDDeir Less hype in 98 than 95 Windows 98, the computer system at the heart of the landmark anti-trust case against software giant Microsoft, goes on sale this week amid subdued expectations and lukewarm early reviews. While Microsoft Chairman Bill Gates and his marketing wizards will insure the software upgrade gets its share of the media spotlight when it is launched formally Thursday, the atmosphere is far removed from the virtual frenzy that greeted its predecessor, Windows 95, nearly three years ago. Windows 98 is more of a tuneup that wraps together all the bug fixes, feature improvements and Internet enhancements Microsoft has added in the past three years. "This is a packaging exercise," said Dataquest analyst Chris Le Tocq. Nevertheless, he expects Microsoft to sell 5.5 million copies of the product at retail, where it will fetch about $90, and 11 million more copies taping could proceed if Inner City put $300,000 in a special account to insure the foundation gets its proper share of the profits.

And foundation officials requested additional, undisclosed terms that were unacceptable to the attorney general, according to Vacco spokesman Mark Wurzel. The issue has been further complicated by a recent bid for "It's Showtime" from African Heritage Network, a rival television production company hoping to wrest the show from Inner City by promising the foundation at least $500,000 a year in profits. That offer has given some foundation board members and the executive director, Grace Blake, second thoughts about a three-month extension for Inner City. Frank Mercado-Valdes, president of African Heritage, described the extension offer as a "smoke screen to continue business as usual." Mercado-Valdes agreed that shows need to be taped soon to be ready for the fall season. He said African Heritage would be able to meet that schedule, while giving the foundation a much-needed cash infusion.

"I'm willing to go up there tomorrow with a check," he said. The calendar 1998 PE ratio or stock multiple of 23 for the 50O-company index is among the highest in the past 30 years, First Call said. Joseph Abbott, an analyst at IBKS International, said PEs at current levels are still not justified and have been boosted by an inflow of Asian cash seeking safer havens in U.S. shares. Forward PEs have been at historical highs of well over 20 since last fall.

First Call said. Before the current period of strength, the previous highs were around 18.5 in the first quarter of 1991. and 18.1 in 18. Earnings growth will be crucial in sustaining I'Kji at present levels, said Gail Du-dack, chief investment strategist at UBS Securities. Dain Rauscher's Barker said high multiples also will be supported as long as the cost of capital is low and return huge.

Him i Shrinkage is starting in price-earnings ratio close its doors," according to state documents. The Apollo foundation cannot sign a contract with Inner City until the attorney general's office finishes investigating whether Inner City owes the foundation $4.4 million, as the foundation's controller has alleged. Vacco also is probing whether the foundation didn't collect the money because of the UiDDdoirj Bill Gates next year. That is a far slower upgrade rate than Windows 95, but still enough to generate more than $1.3 billion in incremental revenue for Microsoft In recent days, Microsoft's stock price has been creeping up, and some analysts suggest that Microsoft executives have been deliberately keeping expectations low. "I do think the product has a little bit of a potential to be a sleeper success story," conceded Yusuf Mehdi, director of Windows marketing.

II Wm U.S. stocks' price-to-earn-ings ratios are beginning to shrink as profit expectations are scaled bark, but valuations still look pricey and hard to sustain, analysts said. Current multiples should not be a worry as long as interest rates and inflation remain low, some analysts contend. They point to near record low 30-year Treasury bond yields, and little sign of the Federal Reserve raising rates any time soon while Asia is still gripped by financial woes. PEs and inflation generally move in opposite directions.

"It would be a reason to worry if interest rates were to back up on us, then the multiple would contract," said William Barker, chief investment strategist at Dain Rauscher. The priceearnings ratio, or multiple, is calculated by dividing the price of a stock by its earnings per share..