BUSINESS DIGEST
By Unknown Author
Sumitomo Estimate of Loss Grows in Copper Scandal Sumitomo said the losses incurred by Yasuo Hamanaka, its former chief copper trader, had increased to $2.6 billion, $800 million higher than earlier, and that it would request that criminal charges be filed against him. Much uncertainty remained, but Sumitomo seemed to be trying to put the scandal behind it, giving few details of how the trader could have hidden such losses or whether others might have cooperated with him. $(Page D3.$) Showdown Over Wireless Taps The wireless communications industry voted to reject Government-backed technology that would make it possible for law enforcement agencies to keep closer tabs on cellular telephone users. $(A1.$) Fraud Charges Against Merrill Seen Merrill Lynch has been told by regulators that they intend to charge it with disclosure fraud in connection with the bankruptcy of Orange County, Calif., lawyers said. $(D2.$) A Big Gain In Construction Builders broke ground on new homes and apartments at the fastest rate in nearly two and a half years during August. Housing starts, which were predicted to decline modestly, instead increased 4.5 percent. $(D2.$) After the housing report, bond yields rose because of fears of rising inflation and an increase in interest rates by the Fed. The yield on the 30-year Treasury bond was 7.04 percent, up from 7.01 percent on Wednesday. $(D13.$) 2 Big Ad-Agency Companies to Join The stampede of acquisitions involving advertising-agency companies continued, but with a twist: the buyer is smaller than the seller. BDDP in Paris, the 15th-largest agency company in the world, agreed to be acquired by GGT in London, the 22d largest. $(D5.$) Settlement in Comparator Case The S.E.C. settled cases against Comparator Systems, a company that had no successful products but that somehow became valued at a billion dollars, and two officials who had been accused of issuing financial reports that overstated the company's assets. Floyd Norris: Market Place.$(D6.$) Group to Buy Ryder Rental Unit Questor Partners Fund and a group of other investors plan to buy Ryder System's rental truck division for about $575 million. $(D16.$) Olivetti's New Chief Carlo de Benedetti may no longer be the chairman of Olivetti, the computer maker, but he remains a powerful shareholder. With this leverage, his representatives on the board ousted the company's chief executive and installed Roberto Colaninno, above, who headed an auto parts company controlled by Mr. de Benedetti. $(D3.$) Insurance Accord In Congress House and Senate leaders agreed on two major health insurance proposals, directing insurance companies to offer comparable coverage for mental and physical illnesses and to guarantee mothers coverage for at least 48 hours of hospital care after childbirth. $(A20.$) I.B.M. said it would provide benefits to the partners of lesbian and gay employees. It is the largest employer yet to extend health care coverage to couples of the same sex. $(A18.$) Barneys Parent Seeks to End Deal The parent company of Barneys New York, which filed for bankruptcy protection last January, said it was seeking to end a licensing agreement with its partner, Isetan. $(D6.$)