August 25, 1982

Fighting erupted in the mountains east of Beirut Tuesday, reportedly between Israeli-backed Lebanese Christian militiamen and Syrian troops. Plans to begin withdrawing Palestinian guerrillas through that area to Syria today were then postponed. The postponement was announced without explanation by the Israeli military command in Tel Aviv, the Israeli radio reported. The command said the pullout by sea would continue as scheduled.

Cities Service Company stock advanced by $2.25, to $45 a share, in heavy trading on the New York Stock Exchange yesterday as investors showed their anticipation of a higher takeover offer developing for the Tulsa-based oil concern. In a bid that has been rejected by Cities Service, the Occidental Petroleum Corporation has offered $50 a share for 49 percent of the company's stock. The balance would be acquired through an undefined exchange of securities.

A Federal judge today cleared the way for the Government to penalize an American company for refusing to comply with President Reagan's sanctions against supplying equipment for the Siberian natural gas pipeline. The company, Dresser Industries, has declined to tell its French subsidiary to defy a French Government order to deliver equipment to be used for the Soviet pipeline. United States District Judge Thomas O. Flannery refused to grant Dresser a restraining order that would have temporarily shielded it from punishment by the Commerce Department. Cabinet members, considering what penalties to impose, recommended during a meeting held in unusual secrecy that Dresser and Dresser France, the subsidiary, be placed on an American ''denial list,'' according to two Administration sources from different departments. The action would prevent the subsidiary from having any commercial relations with the United States.

A table in Business Day on Monday incorrectly reported a Sun Company offering of debentures. The issue is rated Aa2 by Moody's and AA by Standard & Poor's and is being under- written by Kidder Peabody & Compa- ny, First Boston Inc. and Warburg Paribas Becker Inc.

A Business Day article on Monday about the new tax bill incorrectly described its status. It has not yet been delivered to President Reagan for signing.