February 20, 1999

NEC Corp sets broad restructuring that will cause elimination of 11,600 jobs, including 9,000 in Japan, most sweeping cuts ever by major Japanese company; plan could lead to sharp changes in NEC's strategic direction; NEC forecasts net loss of 150 billion yen ($1.3 billion) for fiscal year ending Mar 31, up from previous loss forecast of 35 billion yen; job cuts will come through attrition and early retirement over three years; NEC will write off about $1.6 billion of its $1.8 billion investment in Packard Bell NEC; will pay $450 million to buy 80 percent of Packard Bell's European operations, in yet another cash infusion for troubled unit; Bull SA, NEC's partner in Packard Bell, will take 20 percent stake in European business; NEC names Hajime Sasaki chairman; names Kouji Nishigaki president, replacing Hisashi Kaneko (M)

David Gonzalez (About New York) column on death of Derek Valentin, Bronx teen-ager who was shot in 1994 by another teen in dispute over a girl; comments on lawsuit against gun manufacturers (M)

Commece Dept reports that US trade deficit soared 53 percent in 1998, to record $168.8 billion, as global financial crisis forced first decline in American exports in over decade; US officials say most of increase in deficit came from strong consumer spending for foreign-made goods; say deficit for Dec narrowed unexpectedly, to $13.8 billion, 10 pecent decline in Nov; biggest increases in trade deficit originated from hardest-hit nations of Asia; deficit with Japan rose to $64 billion, from $56 billion in 1997; graph (M)

Olivetti SpA weighs $60 billion bid for far larger Italian phone rival Telecom Italia; bid would be biggest ever in European telecommunications industry and first hostile takeover attempt against any of Europe's big formerly government-owned telephone companies; deal reportedly would be contingent, in part, on Olivetti's selling its interests in Infostrada and Omnitel-Pronto Italia SpA for about $10 billion to Mannesmann AG; Olivetti sells 12.4 percent stake in Oliman NV, which controls Omnitel and Infostrada, to Mannesmann for $375 million; deal raises Mannesmann's stake in Oliman to 49.9 percent, with rest held by Olivetti (M)

Beverly Hall, four years after being appointed to lead state takeover of troubled Newark, NJ, schools, announces that she is leaving Superintendent's job, in which she says she faced almost constant resistance to change, and will become Superintendent of Schools in Atlanta; photo (M)

Bill Campbell files suit against Dobbs Ferry, NY, charging that permit for gun used to kill his brother, Richard, in 1996 should have been revoked because numerous complaints had been filed about threats and assaults by gun's owner, Richard B DiGuglielmmo; DiGuglielmo's son, Richard D DiGuglielmo, shot Richard Campbell during dispute over parking spot; photos (M)

New York Knickerbockers defeat Philadelphia 76ers, 78-67; photos (M)

Giuliani administration, backed by state regulations, is preparing to make workfare and other requirements condition of shelter for 4,600 families and 7,000 single adults in New York City's homeless shelter system; change would make city's homeless shelters subject to same system of rules, work requirements and sanctions that its welfare offices have used to move over 400,000 people off public assistance; advocates for homeless say change threatens to send hundreds of chilren and adults onto streets; New York City has not set firm date to start following state rules, but three of four court decisions on matter have gone against advocates for homeless, and city has been making preparations for systemwide change (M)

Harvey Araton Sports of The Times column on New York Yankees trade of pitching ace David Wells for Roger Clemens as viewed by rookie pitching prospect Ed Yarnall; photo (M)

New York Yankees, having traded away Graeme Lloyd and Homer Bush to Toronto as part of deal for pitcher Roger Clemens, seen needing middle-inning left-handed relief pitcher to replace Lloyd and pinch-runner to replace Bush; table showing key Anaheim Angels and Cleveland Indians batters are weaker against left-handers; photos (M)

Trade Deficit Soared 53%, To $168.8 Billion in 1998 The United States trade deficit soared 53 percent last year, to a record $168.8 billion, as the global financial crisis forced the first decline in American exports in more than a decade. Most of the increase in the deficit came from remarkably strong consumer spending for foreign-made goods. But the deficit for December narrowed unexpectedly, to $13.8 billion, a 10 percent decline from November. [Page A1.]

Microsoft Corp, burned by searing Government cross-examination of Compaq Computer Corp aide John T Rose, who testified for Microsoft, seeks to regain ground in antitrust trial; Rose insists Compaq's ties with Microsoft, while bumpy, always focused on benefiting customers (M)a