Viscose Sale

Sir Edward Peacock, who arrived in the U.S. in January to knock down Great Britain's investments in privately-owned American corporations (TIME, Jan. 20), took his biggest step first this week. His initial sale: huge American Viscose Corp., world's largest rayon manufacturer.

As a private company (95% held by Britain's Courtaulds, Ltd.), American Viscose has made no financial reports. But the trade knows it has been a consistent money maker, estimates that the company is worth $100-$150,000,000.

Purchaser is an investment-banking syndicate headed by Morgan, Stanley & Co., Inc. and Dillon, Read & Co. which will pay $40,000,000 down and a balance to be determined by the distribution of new U. S. securities in the company.

When the deal is completed, Sir Edward will have disposed of the biggest single item in the some $850,000,000 (book value) of unlisted securities in his portfolio. With the Lend-Lease Bill a reality, the British have been tempted to forget about their assets here, or at best to collateralize them for pocket money. But Secretary Morgenthau has insisted that they be sold to help pay for U. S. arms Britain is getting.

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