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 LUCAS MERGER TALKS ON TRACK            
                                        
 Lucas Industries have said talks about 
 a proposed tie-up with Varity of the US
 are going well.                        
                                        
 But the firm, holding a board meeting  
 today, stressed an announcement of any 
 agreement was unlikely before June.    
                                        
 Last week, Lucas sent its chairman and 
 chief executive to New York to clarify 
 the terms of the planned mjrget of     
 certain operations.                    
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