UNITED STATES SECURITIES AND EXCHANGE COMMISSION

   LITIGATION RELEASE NO. 15942  / October 20, 1998

SECURITIES AND EXCHANGE COMMISSION v. EURO SECURITY FUND, COIM
S.A., AND ONE OR MORE UNKNOWN PURCHASERS OF CALL OPTIONS AND
   COMMON STOCK OF ELSAG BAILEY PROCESS AUTOMATION, N.V.
   No. 98-Civ-7347 (DLC) (S.D.N.Y.) (filed October 19, 1998)

       COURT ORDERS EMERGENCY FREEZE OF $6.6 MILLION
          IN ALLEGED INSIDER TRADING PROCEEDS

  SEC Files Action Against Foreign Purchasers Of Elsag Bailey
    Process Automation, N.V., Stock and Options That Bought
       Securities Shortly Before Acquisition Announcement

   The Securities and Exchange Commission today announced that
the Hon. Denise L. Cote of the U.S. District Court for the
Southern District of New York on October 19, 1998, entered a
Temporary Restraining Order Freezing Assets and Granting Other
Relief in an insider trading case involving large purchases of
call options and common stock of Elsag Bailey Process Automation,
N.V.  The trading took place through ten accounts maintained by
foreign institutions during the two weeks before the October 14,
1998, announcement that ABB Asea Brown Boveri Ltd. had agreed to
make a cash tender offer for all Elsag Bailey's outstanding
common stock at $39.30 per share.  On October 15, 1998, the day
after the announcement, the price of Elsag Bailey common stock
increased almost 90% from its October 13 closing price of $19-
1/4.  At that price, the defendants would stand to make more than
$6.6 million from their trades.

   The Commission alleged that the defendants purchased a total
of 425 Elsag Bailey call options and 398,300 shares of Elsag
Bailey common stock from on or about October 2 through October
13, 1998, while in possession of material, nonpublic information
concerning the impending tender offer announcement. On several
days, the percentage of call options purchased by the defendants
accounted for the entire volume of the calls in that series
bought on those days.  The total amount invested in options and
stock by the defendants was approximately $8 million. The
Commission has not yet identified all the defendants because many
of the trades were made anonymously through accounts at U.S.
brokerage firms in the names of banks located in The Netherlands,
Switzerland and Luxembourg.

   The Commission alleged that the defendants engaged in
illegal insider trading in violation of Sections 10(b) and 14(e)
of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3
thereunder and seeks a permanent injunction, disgorgement of all
illegal profits, and civil monetary penalties.  By its Temporary
Restraining Order yesterday, the Court prohibited the removal of
the stock and options, and any proceeds from the sale of the
stock and options, for 10 days.  In addition, the Court imposed
an expedited discovery schedule and prohibited the defendants
from destroying documents.

   The Commission acknowledges the assistance of the Pacific
Exchange and the New York Stock Exchange in this matter.