November 19, 1986

The stock price of the Gillette Company fell more than $7 yesterday, reflecting the market's uncertainty that the Revlon Group and Ronald O. Perelman, Revlon's chairman, could raise the capital for its $4.25 billion attempted takeover of Gillette. The doubts stem from the investigations of Drexel Burnham Lambert that are part of the scandal surrounding Ivan F. Boesky. When Revlon announced its bid last week, it said Drexel would provide more than $3 billion of high-yield, high-risk bonds for the $65-a-share bid. 'Up in the Air' Analysts said the Drexel investigation raised serious questions about the future of the Revlon plan. ''The stock price obviously questions whether Drexel can raise the money,'' said Diana K. Temple, an analyst for Salomon Brothers. ''The new question is: Is there someone else out there who can raise the money? It is a lot of money.''

The Scandal on Wall Street Stock prices suffered heavy losses as the securities business worried about how far the Ivan F. Boesky scandal would extend. Trading was extremely active. Stocks mentioned as takeover candidates were hit particularly hard, as were so-called junk bonds. These securities have been championed by Drexel Burnham Lambert, a firm that has worked extensively with Mr. Boesky. Drexel and a number of top officials have received subpoenas. [ Page A1. ] A substantial amount of the money invested in Mr. Boesky's limited partnership came from investors with ties to Drexel, sources said. The investors in the partnership, meanwhile, have been called to hear a ''status'' report. [ D1. ] Mr. Boesky's fortune could run as high as $200 million, even after his payment of $100 million to settle insider trading charges. [ D8. ] The Dow Jones industrial average fell 43.31 points, to 1,817.21, its fourth largest decline ever, and trading volume rose sharply, to 185.3 million shares, from 133.3 million on Monday. [ D1. ]

In a sudden reversal, the Wickes Companies said tonight that its planned $1.7 billion acquisition of Lear Siegler Inc.may be terminated because Wickes has been unable to arrange its bank financing. Wickes, a diversified retailing and manufacturing conglomerate, said that it notified Lear Siegler's management of its difficulty in raising the funds in a letter delivered to the automotive and aerospace company today. ''Wickes is continuing its efforts to obtain satisfactory financing, but it is not optimistic that it will succeed in these efforts,'' the company said in a statement released several hours after the close of the stock markets. Wickes said that the situation does not jeopardize its planned $1.16 billion acquisition of the Collins & Aikman Corporation, a manufacturer of commercial and automotive textiles. That deal, announced Nov. 8, will be financed mainly by funds raised in a $1.4 billion debenture offering through Drexel Burnham Lambert Inc. earlier this year.

U.S. Details Drug Cartel Prosecutors say little was left to chance by a vast South American cocaine ring, whose members were indicted in Miami.

The repercussions of the insider trading scandal rocked Wall Street yesterday. The stock market and parts of the bond market suffered heavy losses in response to the fear that has gripped the securities business over how high and how far the scandal will reach. The closely watched Dow Jones industrial average fell a steep 43.31 points. Trading was extremely active as concern grew that further evidence of illegal insider trading would undermine market integrity. [ Page D1. ] There was an even sharper selloff of stocks involved in, or previously rumored to be involved in, corporate takeover battles.