Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, November 7, 1995                   TAG: 9511070059
SECTION: BUSINESS                    PAGE: B-6   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

IN BUSINESS

TOKYO - Daiwa Bank's stock skyrocketed Monday, the first business day since it was unceremoniously ordered out of the United States, as traders considered the possibility of a merger with Sumitomo Bank.

Employees at Japan's 10th-largest commercial bank had been told to show up for work early Monday and have extra cash on hand in case depositors rushed to close their accounts. Customer turnout, however, was normal; no major disruptions were reported.

On the Tokyo Stock Exchange, Daiwa shares rose 16 percent as market participants considered the possible merger, which would create the world's largest bank.

The possibility of a merger with the giant Sumitomo Bank has been widely reported since U.S. regulators Thursday ordered Daiwa to close all operations in the United States for allegedly covering up a $1.1 billion bond-trading loss.

Meanwhile, the Bank of Japan, the nation's central bank, said it would conduct monthly inspections of Daiwa. Authorities earlier had ordered the bank to reduce its overseas operations and tighten internal checks.

- Associated Press

Briefly ...

First Union Corp. said Monday it has completed its previously announced acquisition of Columbia First Bank of Arlington for about $230 million worth of First Union stock. Columbia First had $2.6 billion in assets and $1.4 billion in deposits, with 31 branches in the Washington, D.C., area. The acquisition was announced April 6.

U.S. coal production totaled 19.2 million tons in the week ending Oct. 28, down 6 percent from 20.4 million tons the previous week, the Department of Energy reported Monday. The coal industry produced 20.3 million tons in the same week last year. Coal production so far this year is 851 million tons, slightly ahead of last year's at this time.

International Paper Co. moved to solidify its status as the world's biggest paper-products company by agreeing to buy Federal Paper Board Co. in a $3.5 billion cash, stock and debt deal. Monday's deal comes months after Kimberly-Clark Corp. of Dallas agreed to buy Scott Paper Co. of Philadelphia in a $7.4 billion merger.