KPMG and Arthur Andersen said they were in talks on a merger of their operations outside the United States, the latest effort to salvage parts of Andersen as it prepares to challenge a criminal charge.    Andersen is expected to tell a federal judge tomorrow that it wants to waive all pretrial motions to start proceedings as soon as possible, according to lawyers for the firm. If successful, that could mean a trial on a charge of obstruction of justice for destroying thousands of Enron documents could be scheduled to begin within a matter of weeks.  

Auditor Takes Steps On Overseas Mergers

Most of the people killed or wounded in a church attack in Pakistan on Sunday were foreigners, but a principal target was Pakistan's government. News Analysis, Page A14.

Pakistan's Leaders as Target

Molson Inc and Heineken joint forces to form Brazil's second-biggest brewer through merger of Kaiser Group, in which Heineken has 14 percent stake, and smaller Bavaria Group, controlled by Molson; Molson agrees to pay $765 million in stock and cash for Kaiser; Heineken will have 20 percent stake in new company for investment of $220 million; Coca-Cola and its Brazilian bottler own 85.8 percent of Kaiser (S)

World Business Briefing | Americas: Brazil: Brewery Acquisition

New York State Board of Regents chooses Robert M Bennett, seven-year member of board from Buffalo, as chancellor in tense vote divided largely along racial lines; other candidate for job was Adelaide L Sanford, former public school principal from Queens, who would have been Regents' first black chancellor; photos (M)

In Racial Split, Regents Elect A Chancellor

Analysts and investors say when Russian Parliament votes this week to confirm Sergei Ignatyev to run central bank, it will also be voting to begin long-delayed transformation of Russia's financial system into one that can serve modern economy; Pres Vladimir V Putin's choice of Ignatyev won widespread approval when it was announced late last week; Ignatyev will succeed Viktor Geraschenko; Ignatyev is expected to bring spirit of coopertion with government in modernizing Russian banking and finance (M)

Russia Steps Toward Banking Overhaul

Federal prosecutors in Virginia and New York will seek death penalty for Zacarias Moussaoui, whom they identify as '20th hijacker' in September 11 terrorist attacks; offer first details of trial preparations, including plans to seek testimony from many relatives of victims; say Justice Department approval to pursue death penalty is all but certain, given Atty Gen John Ashcroft's strong support of capital punishment and his contention that Moussaoui engaged in same preparation for murder as hijackers; case scheduled for trial in Alexandria, Va, in fall 2002; written request to seek death penalty is signed by Paul J McNulty, US attorney in Alexandria, and James B Comey, US attorney in Manhattan; Moussaoui, 33-year-old Frenchman of Moroccan descent, is charged with conspiring in attacks, although no detailed evidence linking him to hijackers has ever been made public; was in prison at time of attacks for visa violations after arousing suspicions of flight school where he was in pilot training (M)

PROSECUTORS SEEK A DEATH SENTENCE IN TERRORISM CASE

DNA paternity tests are increasingly popular with television viewers, which is main reason talk-show hosts promote them especially hard during sweep months, period when advertising rates are set; most talk shows see rise in ratings when shows focus on DNA paternity tests; photos (M)

So, Who's Your Daddy? In DNA Tests, TV Finds Elixir to Raise Ratings

New York Rangers acquire Pavel Bure from Florida Panthers to help struggling offense; photo (M)

Rangers Add Bure To Electrify The Offense

Team of scientists produces wealth of evidence that ancient Greeks were correct in suggesting that intoxicating vapors rising from floor were what gave oracles at Temple of Apollo in Delphi their visions and inspiration; geologist Jelle Zeilinga de Boer found hidden fault in mountains in 1981 and, exploring region with archaeologist John R Hale, found a second fault; along with geochemist Jeffrey P Chanton and toxicologist Henry A Spiller, they have concluded that underground springs produced ethane, methane and, more importantly, ethylene, wihch can cause disembodied euphoria and altered mental states; photos; maps; drawing; diagram (M)

For Delphic Oracle, Fumes and Visions

People at Winter Garden of World Financial Center, which is adjacent to World Trade Center site, are disappointed that New York International Orchid Show, which was held in Winter Garden for 11 years, will be held this year in Rockefeller Center; show's organizers suggests that it will not return downtown for at least a few years; photos (M)

Orchids Still Herald Spring, But Not at Winter Garden

James Oestreich reviews September 11 memorial concert by Vienna Philharmonic, conducted by Johannes Somary, at St Patrick's Cathedral; photos (M)

A Somber Memorial From the Vienna Philharmonic

Thailand's economy grew 1.6 percent in fourth quarter of 2001 and grew at 1.8 percent for all of 2001 (S)

World Business Briefing | Asia: Thailand: Economic Growth

YES Network, new television home of New York Yankees, is latest trophy in Yankees marketing dynasty, solidifying organization's prominence as one of America's greatest franchises; tri-state area viewers who do not subscribe to or get YES on their cable systems, however, will miss out on most televised Yankee games; photo (M)

Now on YES, It's Dynasty, For Those Not in the Dark

Overhaul of China's moribund state industries enters decisive phase and public protests by displaced workers are becoming larger and angrier than ever; disputes over money and benefits, often peppered with charges of official corruption, have become frequent as China seeks to streamline or shed bloated state-owned factories; millions of middle-aged workers in particular say they feel betrayed by system that long gave them honor and security, if little money, and now seems intent on discarding them; unrest has not threatened rule of Communist Party, but growing disaffection has become major preoccupation; demonstrations over past month by tens of thousands of irate workers at Daqing oil field discussed; workers charge officials with deceit and betrayal, in what some experts say is largest protests over labor issues since Communiost Party took power in 1949; photos (M)

Leaner Factories, Fewer Workers Bring More Labor Unrest to China

 S.E.C. Suspends Trading Of Car Shipping Company  The Securities and Exchange Commission forced the New York Stock Exchange to suspend trading in A.C.L.N., the first time in 27 years that federal regulators have required the exchange to stop trading in a stock.    The S.E.C.'s suspension ends April 1, but the exchanged moved to delist A.C.L.N., a Belgian company that ships cars from Europe to Africa. The commission said it could not verify the accuracy of the company's financial statements. [Page C3.]

BUSINESS DIGEST

Penalty phase of Microsoft Corp antitrust case begins in federal court, Washington, with nine states that have broken away from settlement between Microsoft and government telling Judge Colleen Kollar-Kotelly that unless court imposes strong punishments on company, it will continue using its monopoly on personal computer operating system to crush rivals in technoogies like media players and Linux operating system; Microsoft's lawyer Dan K Webb says penalties proposed by nine states would 'essentially destroy Microsoft' and that company will be forced to stop selling its Windows operating system, which sits on 90 percent of world's personal computers (M)

States Seeking Stiffer Penalty For Microsoft

Corus Group will sell profitable aluminum business worth estimated $1.3 billion to reduce its $2.2 billion debt; French group Pechiney says it is interested in buying company; will cut 4,000 of its 52,000 jobs (S)

World Business Briefing | Europe: Britain: Aluminum Unit For Sale

Auto manufacturers plan new class of crossover vehicles that will have three rows of seats and look like bulked-up station wagons or slimmed-down minivans; new vehicles are aimed at families who want space, but not something as cumbersome or as costly at gas pump as sport utility vehicle, and drivers who want more space but prefer handling and looks of luxury car; major motivation for manufacturers is that new wagons could help them meet federal standards for fuel economy since vehicles will probably be classified as light trucks; including them in group could allow automakers to build more 'gas guzzlers' and still meet federal standards for fuel efficiency; photos (M)

The Station Wagon Is Back, but Not as a Car

KPMG and Arthur Andersen are in talks on merger of their operations outside US, in latest effort to salvage part of Andersen as it prepares to challenge criminal charge in Enron Corp debacle; Andersen is expected to tell federal judge it wants to waive all pretrial motions so that proceedings can start as soon as possible; Andersen appears to be focusing on winning acquittal quickly enough to retain as many American clients as possible; talks with KPMG appear to be attempt to preempt foreign Andersen partnerships, which are beginning to negotiate their own deals; Wyeth drops Andersen at its auditor and instead retains PricewaterhouseCoopers; Securities and Exchange Commission takes step that might reassure Andersen's remaining clients, saying that it will accept financial statements audited by accounting firm as long as Andersen provides assurances that it is complying with generally accepted auditing standards; companies may also submit unaudited financial statements--on time--if they then file audited statements within 60 days; chart; photo of Andersen chief executive Joseph F Berardino (M)

KPMG and Andersen Are Discussing a Deal

Article on events being planned in Salinas, Calif, New York and elsewhere in tribute to 100th anniversary of birth of writer John Steinbeck; photo (M)

The Pride Of Salinas: Steinbeck At 100

Asia Society is opening photo and video exhibit of Afghanistan between 1987 and 1992; Jazz Standard cabaret space underneath new restaurant Blue Smoke Barbecue will open with performances by Ben Allison & Seven Arrows, Herbie Nichols Project and singer Monica Mancini; PEN American Center, Mercantile Library and Lincoln Center Great Performers series will present tribute to John Steinbeck, featuring Arthur Miller, Studs Terkel, Dorothy Allison, William Kennedy and others, at Alice Tully Hall; French Guianese-born Tamango and other tap dancers will perform at Joyce Theater as part of Full Cycle series; photos (M)

Footlights

Anna Kisselgoff reviews performance by Liu Feng-Shueh and her Neo-Classic Dance Company from Taiwan; photo (M)

The Tang Dynasty's Harmonious Formality

Harvey Araton Sports of The Times column contends that defeating Connecticut University women's basketball team in NCAA tournament is not an impossibility despite team's undefeated record; photo (M)

Sports of The Times; A Coronation Is Premature For UConn

Article on photographer Ernest C Withers, who comments on his career; discusses Ernest C Withers: The Memphis Blues Again, new book of his black-and-white photographs of life in Memphis, Tenn, with text by music writer Daniel Wolff; photos (M)

A Shutter That Clicks To a Blues Rhythm; History Sits for a Memphis Photographer

New York public schools are challenged by children of illegal immigrants from China's Fujian province, who are returning to city after being raised in China by grandparents; grandparents were often illiterate and neglected children's early schooling; children are often sick with contagious diseases and speak dialect that few teachers, even Chinese-language bilingual teachers, can understand; many parents, who sent children to China because they had to work seven-day weeks to pay off rings who smuggled them into US, seem at loss about how to deal with children who are not entirely familiar to them; photos (M)

March 19, 2002

Headlines from March 19, 2002

Auditor Takes Steps On Overseas Mergers

Pakistan's Leaders as Target

World Business Briefing | Americas: Brazil: Brewery Acquisition

In Racial Split, Regents Elect A Chancellor

Russia Steps Toward Banking Overhaul

Billboard 200

Under Rug Swept

O Brother; Where Art Thou?

Fever

Songs In A Minor

[Hybrid Theory]

Historical Context for March 19, 2002