TWA, Cont'l in merger talks - Icahn

Trans World Airlines Chairman Carl Icahn said Thursday theairline is in preliminary merger talks with Houston-based ContinentalAirlines. "It's preliminary in nature," Icahn told Reuters bytelephone. "We're going to be putting a lot of effort into studyingit in the next month." Icahn said he met with Continental ChiefExecutive Officer Robert Ferguson in Mount Kisco, N.Y., Wednesday. FCC considers TV move: The Federal Communications Commission saidThursday it was studying whether to break down a 21-year-old wallthat has prevented network television companies from owning cable-TVsystems. The FCC imposed the ban in 1970 to encourage the growth ofcable systems and to stop the then-powerful networks, with theiraffiliated stations and prime-time programs, from dominatingtelevision. The commission has asked for comment on a proposal topermit network ownership of cable TV. Money supply rises: The two broadest measures of the nation's moneysupply rose in the week ended Dec. 2, the Federal Reserve Boardreported Thursday. The Fed said the measure known as M2 rose to aseasonally adjusted $3,414.9 billion from a revised $3,411.4 billionthe previous week. An even broader measure, M3, rose to a seasonallyadjusted $4,156.3 billion from a revised $4,155.4 billion. Northern delays offering: Northern Trust Corp. said concerns by theCalifornia superintendent of banks about the structure of a pendingacquisition have caused the company to delay offering $65 million inpreferred stock. The proceeds from the stock sale would be used topay for the acquisition of Trust Services of America, the largestindependent trust company in California. A bank spokeswoman saidNorthern executives have flown to California to find out more fromthe superintendent, and the bank continues to hope the deal can beclosed by year-end. The acquisition already has received federalapproval. Northern said it expects to proceed with the offering whenthe issues are "favorably resolved." Deerbank earnings: Deerbank Corp., parent of Deerfield FederalSavings and Loan Association, reported fourth-quarter earnings of$1.1 million, or 91 cents a share, a 26 percent increase from thesame period last year. For fiscal 1991, the company earned $4.6million, or $3.87 a share, a 30.4 percent increase. IBM, Quotron pact: IBM has reached a broad agreement to providehardware for Quotron Systems and run its computer system, a movedesigned to stem losses at the financial information company.Quotron's parent, Citicorp, has invested hundreds of millions ofdollars in the financial information and trading system sinceacquiring it in 1986. But Quotron hasn't turned a profit during thattime. In the third quarter, Citicorp took a $430 million chargeagainst earnings to restructure Quotron and its information business. Searle names president: G.D. Searle & Co. elevated Richard U. DeSchutter, 51, to the posts of president and member of the board ofdirectors, the company announced Thursday. The move was described asa "logical step in the succession process" by a company spokeswoman.Chairman and Chief Executive Sheldon G. Gilgore, who will be 60 nextFebruary, also held the title of president until the appointment ofDe Schutter, former corporate executive vice president and head ofinternational operations. De Schutter is a former executive ofMonsanto Co., the parent of Searle. T-bills fall: Interest rates on 52-week Treasury bills fell inThursday's auction to the lowest level since 1972. The averagediscount rate was 4.20 percent, down from 4.72 percent at the lastauction on Nov. 14. The bills will carry an equivalent couponinterest rate of 4.41 percent with each $10,000 in face value sellingfor $9,575.30. Sales totaled $12.35 billion out of bids of $36.76billion. Centel increases dividend: Centel Corp. said Thursday it willincrease its quarterly dividend by a half cent to 22.5 cents a commonshare. The higher dividend will be paid Jan. 31 to shareowners ofrecord Jan. 8. The increase raises Centel's annual dividend to 90cents. NYSE plan: The New York Stock Exchange is considering anearly-morning session in which 200 foreign securities could be tradedas part of an effort to expand overseas opportunities for U.S.investors, Wall Street executives said. Attacting more foreigncompanies is a primary goal of NYSE Chairman William Donaldson. Butthe NYSE's effort is facing opposition from the Securities andExchange Commission, which has opposed allowing the exchange to lowerits financial reporting standards to let in foreign companies. Failed S&Ls post loss: Failed savings associations held by thegovernment lost more than twice as much money in the July-Septemberquarter as solvent institutions earned in the period, regulators saidThursday. The Resolution Trust Corp. said the 97 S&Ls in its controllost $637 million. On Wednesday, the Office of Thrift Supervisionsaid 2,148 still-solvent institutions earned $272 million. Most ofthe red ink at the RTC's S&Ls came from the recognition oflong-embedded losses on sour loans. The same 97 institutions lost$683 million in the second quarter and $734 million in the thirdquarter of 1990. Money funds rise: Assets of the nation's 581 money market mutualfunds rose by $3.56 billion in the latest week to a record $484.83billion, the Investment Company Institute said Thursday. The rise inthe seven-day period ended Wednesday broke the previous record of$481.27 billion set a week earlier, the Washington-based mutual fundtrade group said.