HARCOURT &lt;HBJ> MUM ON REED &lt;REED.L> RUMORS
  Harcourt Brace Jovanovich Inc officials
  were not available for comment on market rumors that it is
  interested in acquiring Reed International plc &lt;REED.L>.
      Officials of First Boston Inc, Harcourt's financial
  adviser, declined comment.
      A Wall Street arbitrageur, who owns Harcourt shares, said
  the rumors did not make much sense because Harcourt has
  announced a recapitalization plan to ward off a takeover
  attempt by British publisher Robert Maxwell."It's completely
  inconsistent with the recapitalization, the only way is if they
  drop the recapitalization," he said.
      Calls to Harcourt seeking comment were not returned.
      Harcourt's recapitalization will come under scrutiny of a
  U.S. Court in Orlando, Fla. Monday. The company has sought a
  declaratory judgment on convertibility of debentures due 2011
  in light of the recapitalization.
      Harcourt said in a statement this week that Salomon
  Brothers Inc &lt;SB> and Mutual Shares Corp have intervened in the
  case, claiming ownership of more than 30 mln dlrs face amount
  of the debenture. In addition, British Printing and
  Communications Corp, headed by Maxwell, owns 9.5 mln dlrs face
  amount, Harcourt said.
      Salomon said in a filing with the Securities and Exchange
  Commission today that it has 21,978 of the debentures. If the
  court decides they should be converted at par value of one dlr,
  they could be converted into 22.0 mln shares.
      Harcourt is asking the court to rule the company is not
  required to issue common to debenture holders who did not
  convert prior to June eight.
      An increase in Reed shares in London today was attributed
  by brokers to rumors of Harcourt's interest and also to rumors
  that Maxwell might be a buyer. But an adviser to Maxwell in New
  York said "there's no basis to think that it's us."
  

