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VARITY CORPORATION TO REDEEM CONVERTIBLE PREFERRED SHARES

 REPEATING TO CORRECT GARBLE:
 BUFFALO, N.Y., Sept. 28 /PRNewswire/ -- Varity Corporation (NYSE: VAT) announced today that, subject to SEC effectiveness of a related registration statement, it intends to redeem on Oct. 27, 1993 all outstanding shares of the Company's Class I Series A convertible preferred stock at the redemption price of U.S. $20.00. In Monday trading on the New York Stock Exchange, Varity's convertible preferred stock closed at U.S. $26.50. Preferred shareholders of record on Oct. 22, 1993 will also receive the declared regular quarterly dividend.
 The company said holders of its Class I Series A convertible preferred stock have the option of converting each share into .6849 shares of Varity's common stock (a conversion price of $29.20 per common share). In yesterday's trading, Varity common stock closed at U.S. $38.25. The right to convert preferred stock into common stock will expire permanently at the close of business on Oct. 20, 1993. Holders who convert would not be entitled to the declared regular quarterly dividend.
 Holders of Class I Series A convertible preferred shares who do not convert to common stock by Oct. 20, 1993, or do not sell their shares on the open market by the close of business Oct. 27, 1993, will receive the redemption price of U.S. $20.00 per share, the company explained.
 Mellon Securities Trust Company is serving as conversion/redemption agent in the Varity transaction.
 Varity also announced that its board of directors has declared regular quarterly dividends of U.S. 32.5 cents ($0.325) per share on Class I Series A convertible preferred shares, U.S. 38.25 cents ($0.3825) per share on Class I Canadian Series A preferred stock, and Cdn 40.625 cents (Cdn $0.40625) on Class II Series A preferred stock, all payable Oct. 30, 1993, to shareholders of record at the close of business on Oct. 22, 1993.
 The prospectus may be obtained from the Information Agent, Shareholder Communications Corporation, 40 Exchange Place, New York, NY 10005.
 A registration statement relating to Varity's common stock issuable upon conversion of the Class I preferred stock has been filed with the Securities and Exchange Commissions, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
 -0- 9/28/93
 /CONTACT: Mary Beth Saba of Varity, 716-888-8038/
 (VAT)


CO: Varity Corporation ST: New York IN: AUT SU: DIV

BM -- CL004 -- 6270 09/28/93 09:58 EDT
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Publication:PR Newswire
Date:Sep 28, 1993
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