Quantum Fund N.V. a Netherlands Antilles mutual fund for which New York investor George Soros is investment adviser said it has agreed to limit further purchases of Fairchild Industries Inc stock. In a filing with the Securities and Exchange Commission Quantum which already holds 1647481 Fairchild common shares or 11.5 pct of the total outstanding said it agreed to the restriction after Fairchild said its security clearance might be jeopardized if Quantum acquires a major stake in it. But Quantum said Fairchild management was told that Soros acting either individually or through entities other than Quantum that he controls may decide to buy common stock in the company on his own behalf. Quantum had recently notified the Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 that it might buy up to 49.9 pct of Fairchilds voting stock. Unless the FTC had objected Quantum would have been free but not obligated to buy up to 49.9 pct of Fairchild stock. Fairchild management however warned that if Quantum a foreign entity raises its stake in the company to 49.9 pct it could impair the government security clearances Fairchild needs to carry out its its defense contract work. In response Quantum said it told Fairchild it will not make significant additional purchases of its common or preferred stock without giving Fairchild enough prior notice to enable it to consult with Quantum over the impact of action. Quantum also said it has withdrawn its notification request to the FTC and the antitrust division of the Justice Department of its intent to buy up to 49.9 pct of Fairchild. Quantum also said it told the FTC and the Justice Department that it does not expect to resubmit any further notifications of intent to significantly raise its stake in Fairchild at this time. The restrictions Quantum has agreed to follow regarding further dealings in Fairchild stock do not apply to Soros as an individual investor. Fairchilds annual shareholders meeting is scheduled to be held tomorrow.
SORO GROUP TO LIMIT FAIRCHILD <FEN> STOCK BUYS