January 3, 1986

International Washington again urged sanctions against Libya for its purported support of terrorist groups. The United States said it agreed with Israel that the attacks at the Rome and Vienna airports called for international economic and political penalties against Libya by Western European and other countries and not just retaliation by Israel or the United States. [ Page A1, Column 6. ] Libya's influence in Western Europe has begun to weaken as a result of Tripoli's purported sponsorship of terrorism and the decline of oil prices, according to diplomatic and political officials. But they said that some countries, including West Germany and Italy, remain economically tied to Libya and oppose punitive measures against Tripoli. [ A1:4-6. ]

Companies Union Carbide plans to sell its consumer products lines for $2 billion or more and to distribute the proceeds to shareholders. It also said it would offer to buy 55 percent of its shares, rather than the 35 percent it had already bid for. These are two parts of a tough defensive package that came after GAF said it would offer to raise its bid for Carbide by $4 a share, to $78 a share, under certain conditions. GAF shares fell $5.75, to $53.25. Arbitragers said the drop reflected the feeling that GAF would lose its battle unless it raised its offer again or made headway through some unforeseen move. Carbide shares, meanwhile, jumped $2.375, to $73.25. [ Page D1. ] Court documents show discrepancies in statements by Union Carbide about whether the Bhopal plant was controlled by corporate headquarters or by its Indian subsidiary. The issue is considered crucial as the court battle opens today before a Federal judge in New York over claims arising from the gas-leak disaster. [ D1. ]

It was six years ago, Bawnesh Kapoor recalled recently, that a compatriot from India met him at 42d Street and the Avenue of the Americas and confided that he was about to give up his career as an accountant. ''Bawnesh,'' Mr. Kapoor recalls his friend's saying, ''I'm going to buy a newsstand.'' To take over the stand, a humble green carapace, the accountant spent close to $40,000 of his life's savings. Today, Mr. Kapoor reports, the friend is doing well. Mr. Kapoor is doing better. $20 Million-a-Year Empire With his brother Suresh, a former New Delhi police officer, he is at the vanguard of an enormous ethnic transformation that has changed the nature of two endangered species of city folklore and life: the corner candy store and the neighborhood newsstand.

A $99 one-way cross-country air fare - marked down to $65 for those 65 years of age and older - was announced yesterday by Continental Airlines, which called the ''senior citizen'' fare the lowest transcontinental fare ever offered. The fares are subject to various restrictions. Continental said the fares would apply to about half the 5 million seats the airline has available on all its routes during the two-month period of the promotion, from next Tuesday through March 5. Confusion and Busy Signals It said the $99 fare, which is about $30 less than the lowest fare on other full-service carriers, would be available on all its flights between Newark International Airport and Los Angeles or San Francisco. Each flight stops once, in either Denver or Houston. The $99 fare will also be available from other airports, including La Guardia, but only on Tuesdays and Wednesdays and on tickets bought 14 days in advance.

The Union Carbide Corporation, acting after the GAF Corporation offered to raise its bid for the chemical company to $5.5 billion, announced plans yesterday to sell its consumer businesses for an estimated $2 billion and to distribute the proceeds to stockholders. The seven-point plan appeared designed to guarantee that Carbide shareholders get the equivalent of $85 a share for all their stock. Carbide is already offering to buy much of its stock for $85 a share in cash and securities, while GAF offered to raise its bid to $78 a share in cash. One leading Wall Street professional, who asked not to be identified, estimated that if Carbide received at least the $2 billion for its consumer businesses, that would increase the value of all Carbide stock then outstanding to about the $85 level. He explained that in March Carbide would distribute the proceeds of the sale in the form of a special dividend to remaining shareholders. He estimated that the diidend plus the price of the stock then outstanding would probably total $85, the same value that Carbide has placed on its buyback offer. As part of its move yesterday, Carbide increased the size of that buyback from 35 percent to 55 percent.