 Andersen-KPMG Talks End  Arthur Andersen's talks to sell much of its foreign operation to KPMG collapsed, potentially severing a financial lifeline.   PAGE C1

INSIDE

Smithsonian Institution's Archives of American Art is opening exhibition celebrating centennial of Bauhaus architect Marcel Breuer at its New York Regional Center; Double Take Documentary Film Festival, produced in association with Duke University Center for Documentary Studies, is opening in Durham, NC; Museum of Television and Radio in New York and Los Angeles will celebrate centennial of Richard Rodgers' birth with tribute; highlight of Brooklyn Academy of Music's spring season will be series of Monteverdi operas; photos (M)

Footlights

Price of crude oil climbs to highest level in six months, nearly $28 a barrel, stoked by fears that worsening violence in Middle East could lead to disruption of oil supplies; more expensive crude oil pushes up retail gasoline price in US by about 20 precent over last month, to nationwide average of $1.37 a gallon; Iraqi foreign ministry says Iraq is ready to use oil as weapon against US for its support of Israel, but Saudi foreign minister, Prince Saud al-Faisal, says Arab countries rely too heavily on oil revenue to forsake money in Mideast political struggle; most industry analysts discount chances of embargo; photo; graph (M)

Crude Oil Prices At a 6-Month High On Mideast Worries

Editors' Note: Business Day introduces expanded coverage of commercial real estate

Editors' Note; NEW ON WEDNESDAYS: COMMERCIAL REAL ESTATE

Korean Federation of Trade Unions calls off nationwide general strike to protest plans to privatize state-owned Korea Electric Power Corp after negotiators reach deal with government (S)

World Business Briefing | Asia: South Korea: General Strike Averted

Article on FX's gritty new crime drama series The Shield, starring Michael Chiklis; photos (M)

Police Show Has Humans, Not Heroes; In FX's Hit 'The Shield,' Means Justify Ends

James Dolan, chairman of Madison Square Garden and president of Cablevision, is saddled with responsibility of rescuing his two ailing teams, New York Knicks and New York Rangers, and mending disagreement between Cablevision and YES Network to appease subscribers who want to watch New York Yankees games on Cablevision; photos (M)

James Dolan In Center Of a Storm

Mandouh Mahmud Salim, suspected aide to Osama bin Laden, plans to plead guilty to charges that he tried to murder federal jail guard in 2000; still faces terrorism-conspiracy charges, which are not covered by plea (M)

Terror Suspect Plans Guilty Plea In Attack on Federal Jail Guard

George Pataki is in remarkably strong position as he campaigns for third term as governor of New York; Pataki, a Republican who is defying tide of increasingly Democratic state, says his political strength is testimony to his success as governor; photos (L)

The Postpartisan Governor; Defying a Democratic Tide, Pataki Seeks a Third Term

Retired Arthur Andersen partners file lawsuit to protect their pensions and other benefits if firm files for bankruptcy or takes other action that might cut benefits off; firm's partner-owners do not have typical pension with backstop of Pension Benefits Guaranty Corp, which makes payments when companies go bankrupt, and they do not have 401(k) plans; are encouraged to invest for their own retirement, partly through Keogh accounts, and firm provides partners with stipend, now $3,500 a month, as safety net should their investments go awry; retirees who are not partners have more financial backing for their retirement benefits; photo (M)

Andersen's Retired Partners Fear Benefits May Slip Away

Gov George E Pataki and Mayor Michael R Bloomberg stroll across Governors Island, brimming with visions for transforming former Coast Guard station there into crown jewel of City University of New York, but offering few details about how they would make it all happen; maps (M)

CUNY Plan: Visions High, Details Few

One of most damaging but least scrutinized causes of New York City's current fiscal crisis is city's pension system, which has to pay out more generous benefits to retirees at time when investments have lost more than $9 billion in stock market; city estimated two years ago that it would need to contribute $817 million to funds in fiscal 2003, but figure is now more than $2 billion, and forms major portion of $4.76-billion deficit; predicament is worsened by earlier decision to shift much of pension funds into aggressive stock investments; chief actuary Robert North discusses 'classic' funding problem of benefits going up and income declining, requiring higher city contributions; graphs; key factor driving up costs is cost-of-living adjustment for both city and state retirees, which state enacted two years ago over Giuliani administration's objections: that alone costs more than twice what city spends each year on parks; city's funds have also done worse than average in last two years; Comptroller William C Thompson Jr defends decision to keep 70 percent of funds in stocks and 30 percent in fixed-income investments (L)

City's Pension Funds Reel After Taking a Dual Blow

Opening day for Montreal Expos could be last ever, with possibility of elimination or relocation looming; photos (M)

On Opening Night in Montreal, a Rite of Spring Minus the Hope

Philippe Charat runs unusual aquaculture business--underwater feed lot for Pacific bluefin tuna, at Ensenada, booming city of 400,000 in Baja California; this is fish prized above all others by connoisseurs of sushi and sashimi; Charat's boats cruise coast, netting fish, tons at a time, and then slowly transport tuna to Puerto Escondido Bay, where they are raised to become prize speciments; photos (L)

How to Grow a Giant Tuna

Long-Awaited Trial of Skakel Starts In 1975 Murder of Teenage Neighbor

ABB Ltd is negotiating to sell part of its financial services division, a galling reversal for company but one analysts say is crucial to rehabilitating company's frayed finances; obtains commitments from three lenders to underwrite its $3 billion credit line; plans to raise $2 billion through bond issue to shore up its cash position as it struggles to reduce its $4 billion in debts; corporate diagram (M)

ABB Plans to Sell Part of Its Financial Unit

Marks & Spencer expects to appoint Roger Holmes chief executive, succeeding Luc Vandevelde, who will remain chairman; photo (S)

World Business Briefing | Europe: Britain: Clothier May Promote Executive

Jack Abramoff, $500-an-hour Republican lobbyist and fund-raiser, has used close ties with Repr Tom DeLay and other conservatives to become one of most influential lobbyists in Washington in seven years since party gained control of House; Coushatta Indian tribe, which operates casino in Louisiana, paid Abramoff $1.76 million and got Bush administration to block rival Indian casino; Abramoff's success is reminder that, while public attention focuses on terrorism, business of lobbying hums along, out of spotlight but more profitable than ever; Abramoff says he represents only clients representing conservative interests; photo; list of recent major clients (M)

At $500 an Hour, Lobbyist's Influence Rises  With  G.O.P.

Royal Dutch/Shell Group will buy Enterprise Oil of Britain for 3.5 billion pounds, or $5 billion, in cash; acquisition allows Royal Dutch/Shell to increase production in North Sea by 30 percent and nearly double Norwegian output; some analysts say Royal Dutch/Shell is paying too much because company, which has sat on sidelines through wave of consolidation among nimbler competitors, was under pressure to do a deal (M)

Royal Dutch/Shell Will Buy Enterprise Oil of Britain

Natexis Banques Populaires is buying a 35.26 percent controlling stake in Coface, credit insurer, from Scor, raising its ownership of Coface to 54 percent (S)

World Business Briefing | Europe: France: Bank Raises Stake In Insurer

Telecom Argentina halts interest payments on $3.2 billion in debt; earns almost all its revenue in pesos and has been hit by 65 percent devaluation of Argentine currency against dollar over last three months (S)

World Business Briefing | Americas: Argentina: Telecom Default

William Grimes reports on revival of restaurant scene in New Orleans; reports on some new restaurants he visited; photos (L)

A Taste of New Orleans; Off Off Bourbon Street, a Jubilant Revival

Federal appeals court orders FCC to reconsider rule that allows company to own two television stations in local broadcast market only if there are at least seven other companies owning stations in that market; in practice, rule prevents single company from owning more than one television station in a small or medium-size market; FCC chairman, Michael K Powell, has often spoken out against rules put in place under his predecessors that curb consolidation in media and telecommunications industries; court ruling is only latest in recent series of legal and regulatory moves that have weakened regulations limiting size of media companies; photo (M)

F.C.C. Rules On Ownership Under Review

Israeli Prime Min Ariel Sharon says Yasir Arafat can have 'one-way ticket' out of West Bank into exile; Arafat says he would prefer 'martyrdom,' point made by Sec Colin Powell when he warns that exile would just give Arafat another platform for same activities; conflict widens as Israeli troops sweep into Bethlehem; dozens of Palestinian gunmen reportedly move into Church of Nativity; photos; seven Palestinians are killed; Palestinian terrorist blows up himself, but nobody else, near checkpoint; Hezbollah attackers fire antitank missiles at two Israeli posts on northern border; Israel responds with air raid into Lebanon; Arafat continues besieged in Ramallah headquarters; Israeli forces there batter headquarters of security chief Jibril Rajoub in hunt for wanted men; 180 people are taken in for questioning; Israel finds invoice in Arafat's compound for ammunition and bombs for Al Aksa Martyrs Brigade, and also for cost of 'martyr posters'; forces carry out house-to-house searches in Tulkarm, Qalqiya and Ramallah (M)

ARAFAT CAN LEAVE, BUT ONLY TO EXILE, SHARON TELLS HIM

Clyde Haberman NYC column wonder what civic-minded apartment dweller can do to cooperate with water shortage that calls for sacrifices like abstaining from lawn watering (M)

April 3, 2002

Headlines from April 3, 2002

INSIDE

Footlights

Crude Oil Prices At a 6-Month High On Mideast Worries

Editors' Note; NEW ON WEDNESDAYS: COMMERCIAL REAL ESTATE

World Business Briefing | Asia: South Korea: General Strike Averted

Billboard 200

Now 9

The Best Of Both Worlds

O Brother; Where Art Thou?

World Outside My Window

Far Side Of The World

Historical Context for April 3, 2002