CPC <CPC> TO SELL EUROPEAN BUSINESS CPC International Inc said it reached an agreement in principle to sell its European corn wet milling business to Agricola Finanziaria SpA, a member of the Ferruzzi Group, for a price in excess of 600 mln dlrs. The transaction is expected to be completed by September 30. CPC said it expects no material gain or loss this year from the transaction. But the effect of the deal on 1987 earnings can be evaluated in full only when the definitive pacts are completed, it said. The long-term effect of the transaction on CPC's earnings should be positive, it added, as it will allow capital expenditures to be cut back and will reduce corporate and divisional overheads as well as operating expenses in the European business. The sale is an important part of a restructuring announced in November, CPC said. Proceeds of the sale will be used to reduce debt incurred in the purchase of the Arnold Foods and Old London specialty baking businesses and the stock repurchase program that was part of the restructuring. As of December 31, CPC had bought about 15 mln of its common shares, adjusted for a 2-for-1 split in January, for a total cost of 621.8 mln dlrs, according to its 1986 annual report. In December, CPC acquired Arnold Foods and Old London for a total of about 170 mln dlrs. CPC had previously said it wanted to sell the European corn wet milling business and use the proceeds to help reduce debt, including that incurred under the share buyback. In total, CPC has bought back about 16 mln shares of common stock, adjusted for the split, it said today. In November it authorized a buyback of 20 mln shares, adjusted for the split. The buyback and the restructuring were triggered in November, after companies controlled by Ronald Perelman, chairman of Revlon Group Inc <REV>, acquired about 7.6 pct of CPC's then outstanding stock. In 1986, the European corn wet milling business had sales of 914.1 mln dlrs, operating income before overheads of 68.8 mln dlrs and associated headquarters overhead costs of 19.7 mln dlrs, according to CPC's 1986 annual report. The businesses' assets were 645.7 mln dlrs in 1986, the report said.