WAL-MART SETTLES OUT OF COURT WITH VALORES

BENTONVILLE, Ark. -- Wal-Mart Stores here said it has reached a settlement with a Mexican wholesaler for an amount less than the $624 million a San Antonio jury ordered Wal-Mart to pay.

alores Corp., Monterrey, Mexico, and McLane in 1993 -- shortly after Wal-Mart acquired McLane -- because of an ongoing partnership Wal-Mart had with Cifra, Mexico's largest retailer.

Wal-Mart last week declined to discuss terms of its out-of-court settlement with Valores. However, it said the amount would be less than the $624 million verdict and would result in a charge to nonoperating earnings of about 3 cents per share, after reduction for associated reserves and taxes, in the second quarter.

Valores said $624 million is the amount it would have earned if the partnership with McLane and Wal-Mart had lasted 25 years. Its contract with McLane, signed in 1991, made the two companies equal partners in supplying products to Valores' Mexican customers.

Wal-Mart said the contract was canceled because of its ongoing partnership with Cifra, under which the two companies opened a handful of Sam's Club warehouse stores in a joint venture beginning in 1991; Wal-Mart eventually bought a controlling interest in Cifra in 1997.

Valores said the cancellation of the partnership had nothing to do with Cifra.

Attorneys for both companies were forbidden by the judge to discuss the case.