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Markets

DOW DOLLAR BONDS 30 Industrials Japanese Yen 30-Year U.S.

2596.85 145.155 8.65%

-38.74 +1.025 +0.20

RATES CLIMB. Interest rates on short-term Treasury securities rose in Tuesday's auction. The Treasury Department sold $7.6-billion in three-month bills at an average discount rate of 7.8 percent, up from 7.65 percent last week. Another $7.6-billion was sold in six-month bills at an average discount rate of 7.77 percent, also up from 7.65 percent last week. The new discount rates understate the actual return to investors _ 8.07 percent for three-month bills with a $10,000 bill selling for $9,802.80, and 8.2 percent for a six-month bill selling for $9,607.20. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 8.05 percent last week.

Nation

MORE BORROWING FOR BAILOUT. The government will borrow $6-billion more than previously announced during the January-March quarter to meet the requirements of the savings and loan bailout, the Treasury Department announced Tuesday. The Treasury, which announced Jan. 31 it would need to borrow $41.6 billion, now plans to borrow $47.6-billion. The bailout legislation provides $50-billion through next year to cover the losses in failed thrift institutions. But the trust corporation set up to administer the bailout will need to borrow as much as $100-billion more.

DREXEL CREDITORS WORRY. Drexel Burnham Lambert Group Inc.'s leading creditors said Tuesday they are concerned about their lack of input on the collapsed Wall Street firm's rapid sales of assets since its bankruptcy filing last week. William Schopf, general counsel of First City Bancorp. of Texas Inc., whose subsidiary, First City Houston, is the largest U.S.-owned bank among Drexel's unsecured creditors, said creditors want to make sure Drexel is receiving fair value for any asset sales and transfers.

FIRST BOSTON CUTBACKS. First Boston Corp., beset by rumors of impending layoffs and financial troubles, said Tuesday it may abandon some businesses as part of a gradual restructuring. The firm announced Friday it is phasing out its fixed-income futures brokerage business in Chicago.

GREAT NORTHERN SELLS. Great Northern Nekoosa Corp. said Tuesday it had agreed to a $5-billion buyout by Georgia-Pacific Corp., dropping its four-month opposition to the deal, which will create the nation's largest forest products company. Great Northern agreed to the deal after Georgia-Pacific sweetened its offer to $65.75 per share from $63, a Great Northern spokesman said.

FIRST UNION DIVIDEND. The board of directors of First Union Corp. Tuesday declared quarterly cash dividends for both its common stock and the cumulative adjustable rate preferred stock. The common stock dividend of 27 cents per share is an increase of 8 percent. Charlotte, N.C.-based First Union operates 663 banking offices in North Carolina, South Carolina, Georgia, Tennessee and Florida, including Florida National Banks, which it acquired Jan. 29.

DISNEY DENIES CBS BUYOUT. Walt Disney Co. Chairman Michael Eisner on Tuesday labeled reports of a possible merger with broadcasting giant CBS Inc. as rumors. At a shareholders meeting, the company's directors also voted to increase the quarterly cash dividend from 12 cents to 14{ cents per share.

Tampa Bay/State

POE ACQUIRES AGENCY. Poe & Associates Inc. of Tampa said Tuesday it has acquired Browne & Browne Inc., a Fort Lauderdale property and casualty insurance agency. The agency will be combined with Poe's Fort Lauderdale office within the next few months. The joint office will have 20 employees and be managed by Constance C. Browne, president of Browne & Browne. Poe is a general insurance agency with offices throughout Florida and in seven other states.

CSX RECALLS WORKERS. Jacksonville- based CSX Transportation Inc. has announced plans to recall 1,000 workers at five rail car repair shops Monday. Operations at shops in Tampa, Raceland, Ky., Grand Rapids, Mich., and Erwin and Nashville, Tenn., were suspended and 1,350 employees furloughed in December.

SALE CALLED OFF. American Pioneer Inc., parent company of American Pioneer Savings Bank, and HBJ Insurance Cos. have terminated their letter of intent to sell American Pioneer Life Insurance Co. to HBJ Insurance Cos., which is owned by Orlando-based Harcourt Brace Jovanovich.

HOLIDAY RV SIGNS DEAL. Holiday RV Superstores Inc. of Orlando said Tuesday it has signed a 10-year exclusive North American distribution agreement with DB Foreign Trade Co. of Miami for a European-made line of motor home chassis. Holiday said it will open an assembly plant near Jacksonville, where the chassis will be fitted with Chrysler engines and drive trains.

ORLANDO SKYSCRAPER. Orlando has formally agreed to have Jaymont Realty Corp. build an $85-million skyscraper downtown that would rival Orlando's tallest, the 35-story Sun Bank tower, when it is completed in 1992.

Clarification

The Federal Deposit Insurance Corp. (FDIC) has filed suit against Drexel Burnham Lambert Inc. and the parent company of Shearson Lehman Hutton Inc. over an alleged fraud that led to the failure of a Texas savings and loan. The opening paragraph of an Associated Press story published in Saturday's Times may have inadvertently suggested a relationship between Drexel and Shearson.

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