By James Langton

(March 12 – 09:00 ET) – Markets are looking at another tough opening this morning as profit concerns rear up again. The apparent near-collapse of Japan’s economy seems to be finally catching the attention of Western traders.

Markets took a tough hit in Asia last night. The yen slumped against the dollar and Japanese stocks fell to their lowest level since 1985. Lack of confidence in the government and signs the recovery in Japan may be over seem to be the reasons. The Nikkei dropped 457 points last night to 12,171. In Hong Kong, the Hang Seng followed it down 418 points to 13,777.

The economic worry from Asia is spilling over to Europe, and causing traders to fear for corporate profits. Stocks are down notably as a result, with telecoms leading the way. The fact that Swissair may post a loss of US$1.5 billion for 2000 is not helping. In London, the FTSE is down 80 points to 5,837. In Paris, the CAC 40 is down 80 points, too, to 5,289. Germany’s DAX is off 94 points to 6,110.

Despite all the tough news, it is not deterring Prudential plc, which is buying American General Corp. for £18.1 billion in stock, about US$26.6 billion, in a deal marking the biggest takeover of a U.S. financial services firm by a foreign buyer.

SPX Corp. is buying United Dominion Industries Ltd. for about US$1.83 billion in stock and assumed debt. United Dominion shareholders will receive 0.2353 of an SPX share per one United Dominion share. There is no collar on the fixed exchange ratio.

In other M&A news, AssiDomaen AB, Europe’s largest forestry company, is selling its box-making unit to Kappa Holdings for US$1.06 billion.

Cabletel Communications Corp., the largest full-service distributor of broadband equipment to the Canadian TV and telecommunications industries, is buying privately owned Allied Group of Cos. for approximately $500,000 in cash and 400,000 Cabletel shares. The acquisition is expected to close prior to the end of March. Cabletel also reported net income for the fourth quarter of 7¢ a share, compared to 3¢ a share for the same period the year before.