Fire protection and security groupWormald International Ltd &lt;WOIA.S> said British-listed &lt;Holmes
Protection Group Inc> has agreed to issue it with 6.15 mln
common shares of one U.S. Cent par-value at 1.72 stg each.
    The two groups have also begun exploratory talks on a
possible merger of the Holmes business with the compatible
businesses of Wormald, comprising some or all of its fire
protection and security businesses in the Americas and Europe,
Wormald said in a statement.
    The issue of shares in the New York-based Holmes is
conditional upon shareholder approval at a general meeting.
    Wormald said its stake will represent 9.99 pct of Holmes'
existing issued shares and 9.09 pct of the enlarged capital.
    The issue will raise 10.6 mln stg which will be used for
further development of the Holmes business.
    Wormald said the businesses of the two groups are largely
complementary in terms of both geographical spread and the
nature of their activities, with Holmes concentrating on
burglar alarms and Wormald on fire systems.
    Holmes's operations are concentrated in and around New York
amd Miami. It earned 11 mln U.S. Dlrs pre-tax in its last
reported full year, 1985, and 6.0 mln in first half 1986.
 REUTER
