SEC PROBES 1986 TRE <TRE> TAKEOVER ATTEMPT
  The federal Securities and Exchange
  Commission (SEC) is looking for possible securities laws
  violations in connection with an unsuccessful 1986 bid by
  Hollywood producer Burt Sugarman to take over TRE Corp,
  attorneys contacted by SEC investigators said.
      During the takeeover attempt, a unit of Sugarman's Giant
  Group Ltd at one point held a 9.9 pct stake in TRE.
      It had help in that effort from Jefferies Group Inc, a Los
  Angeles investment banking firm which sold it an option on a
  portion of the shares Sugarman eventually acquired.
      In addition, a company controlled by Sugarman raised 35 mln
  dlrs in a debt offering underwritten by Drexel Burnham Lambert
  Inc with help from Jefferies, and used a portion of the
  proceeds to buy TRE stock.
      Finally, Reliance Group Holdings Inc acquired nearly six
  pct of TRE, according to an SEEC filing.
      The attorneys, who asked not to be identified, said the SEC
  was investigating whether Sugarman and other firms with TRE
  holdings were working together without disclosing their
  cooperation, as would be required by the federal securities
  laws.
      One attorney said SEC probers also were examining whether
  Sugarman and Drexel had made adequate disclosures of its
  intended usage of the proceeds in the prospectus for the 35 mln
  dlr bond offering.
      A TRE spokesman confirmed that TRE, since December a unit
  of Aluminum Co of America, had been contacted by SEC
  investigators and was cooperating with the probe.
      The spokesman added that TRE Chairman Leopold Wyler had
  been interviewed by the SEC probers.
      A Jefferies spokesman said the SEC had asked for
  information a few months ago as part of an informal probe.
      The spokesman said Jefferies had cooperated with the agency
  and had heard nothing more since that time.
      "To the best of our knowledge, Jefferies is not the target
  of a formal SEC investigation" in connection with the TRE bid,
  he said.
      A Drexel spokesman acknowledged that his firm had
  underwritten the debt offering for Sugarman but added:
      "We had nothing to do with TRE."
      As a matter of policy, the SEC routinely declines to
  comment on its enforcement activities.