March 8, 2000

Deutsche Bank AG plans to acquire German domestic rival Dresdner Bank AG; if deal to purchase Dresdner Bank goes through, Deutsche Bank would have $1.2 trillion in assets, about twice size of Citigroup; analysts say that if deal--potentially worth more than $30 billion--is completed, two German banks will eventually eliminate 1,000 to 2,000 branches in Germany and, over time, cut tens of thousands of jobs; merger would have to be structured as three-way agreement between two banks and Allianz of Munich, biggest European insurer; all three institutions hold stakes in one another, as well as many other German companies, and have been at center of web of cross-holdings; one purpose of deal would be to guarantee Allianz distribution channel for its insurance and investment products; Allianz would also like to acquire Deutsche Bank's huge mutual fund business; new Deutsche Bank is expected to retreat from basic business of serving retail customers at local branches; combined branch network of both banks would be spun off as separate company; Deutsche Bank would concentrate on serving wealthy individuals and corporations; chart (M)

Dow Jones industrial average plunges 374.47 points on investors' fears that rising oil prices combined with higher interest rates might do significant damage to corporate profits; fall begins when Procter & Gamble, one of nation's biggest and best-known companies, says that its earnings in current quarter will come in well below levels expected by Wall Street analysts; warning shocks investors; they dump P&G shares, wiping out $36 billion, or nearly 31 percent, of company's value; Dow falls 3.7 percent, to 9.796,03; Standard & Poor's 500-stock index loses 2.6 percent of its value, while Wilshire 5000 Total Market Index declines 2.1 percent; graph (M)

Profile of Shirley Hazzard, whose new book, Greene on Capri, is memoir of her 20-year friendship with Graham Greene, whom she first met at a cafe in Capri, Italy (M)

Article on Harold Rose, 88-year-old race horse trainer, preparing horse Hal's Hope for Florida Derby; photo (M)

Gov George W Bush wins nine of 13 Republican primaries on March 7 and begins his general election campaign; Bush, who began campaign flattering right, is moving toward center in effort to cultivate new supporters; says he is ready to take on Vice Pres Al Gore in Nov; photo (M)