December 23, 1994

B.A.T. Industries P.L.C. reached an out-of-court settlement with the Federal Trade Commission yesterday that cleared the British tobacco giant's $1 billion acquisition of the American Tobacco Company. The merger of American Tobacco with B.A.T.'s United States subsidiary, the Brown & Williamson Tobacco Corporation, which was completed yesterday, creates a third big contender in the United States cigarette market, with strong brands in both the premium and discount segments.

Crisis in Mexico With the peso cut free, Mexico's markets had a tumultuous day. The peso plunged 20 percent more, though stocks rose after roller-coaster trading. [ Page A1. ]

The Bankers Trust New York Corporation said yesterday that it had agreed to pay a $10 million fine to settle charges that its securities unit hid the extent of a client's losses from trading derivatives. The settlement, in which the bank neither admitted nor denied guilt, represents another sharp rebuke for Bankers Trust, one of the leading players in the rapidly growing markets for the new financial instruments known as derivatives. Two weeks ago, the Federal Reserve, in a formal enforcement action, forced the bank to follow strict new compliance and disclosure procedures.

Russian bombing raids and artillery attacks increased today against Grozny, the capital of the breakaway Chechen republic, as signs of strong dissent continued to emerge from within the Russian military command. Reporters at the scene said at least 24 people died today in Grozny as bombs and shells hit apartment blocks and strategic targets like the Lenin oil refinery. Chechen officials put the toll at 100 or more.

Mayor Rudolph W. Giuliani is asking private corporations to pay for cleaning up rubbly, garbage-filled vacant lots throughout New York City and turning them into parks and playgrounds. In return, the city will allow the companies to use the space for advertising. Imagine, the Mayor's aides say, a basketball court sponsored by Nike; a playground with a billboard exhorting people to "Drink Snapple"; or a sitting area brought to you by Chemical Bank or Coca-Cola. Almost anything is possible within the bounds of reason and taste, they say, except for advertisements for alcohol and tobacco.