August 22, 1997

Comverse Technology Inc, leading maker of telephone voice mail systems, agrees to pay $843 million in stock to acquire one of its major rivals, Boston Technology; acquisition would continue consolidation of telecommunications-equipment industry, creating $390 million company that would be third largest in $3.5 billion voice mail arena, supplying message systems to 12 of world's 20 largest telephone carriers (L)

Analysis of confrontational stances adopted by Israel and Palestinians, more than three weeks after suicide bombing shattered Jerusalem market; Israeli Prime Min Benjamin Netanyahu had American backing when he argued that Yasir Arafat should begin to combat terrorism in earnest, for Palestinians' and Israelis' sakes; but public way in which Israel pressed its demands, and its imposition of economic sanctions against Palestinians, led Arafat to conclude that any victory for Israel would be loss for him; Arafat appears to have calculated that he cannot comply with Israeli demands without undermining his own standing, which is shaky; so he is seeking to build support among broad spectrum of Palestinians, including public embrace of Hamas leader that was guaranteed to infurate most Israelis; photo (M)

Shares of Wells Fargo & Co fall sharply on false rumor that Warren Buffett's Berkshire Hathaway Inc was selling its entire holding of almost 8 percent of Wells Fargo stock; bank's market value drops $1.3 billion in one hour; movement reflects jitteriness of markets and widspread respect accorded Buffett; rumor was sparked by misinterpretation of report filed by Berkshire Hathaway with SEC; report misled many investors, something Berkshire could have prevented had it wished to do so; Berkshire officials and Buffett refuse to discuss SEC filing that set off furor; graph (M)

Bats and Rabies Risk Two rabies deaths without signs of bites have prompted a recommendation that those who touch bats seek medical attention. Page A20. A Ruling Favors Dinkins A judge ruled that New York's former Mayor could not be held personally liable for actions during the 1991 Crown Heights violence. Page B3. Affirmative Action Ruling A Federal appeals court reaffirmed California voters' right to do away with state racial and sex-based preferences. Page A16. Baseball Realigning Fades A plan that would have put the Yankees and Mets in the same division is unlikely to be adopted. Page B7.

Michael R Imbriani pleaded guilty in 1994 to embezzling $173,000 from his business partners and agreed to step down as Superior Court judge in Somerset County; he has been collecting annual pension of $75,000 for three years; taxpayers group, Citizens for Justice, demands that his case be reviewed by state panel that oversees judicial pensions (New Jersey Daily Briefing) (S)