AG STRATEGIC Holdings, a wholly-owned subsidiary of property and development company, Allied Group, has announced a US$700 million agreement with Allied Marketing Holding, a subsidiary of Allied Industries International, the manufacturer of household electrical appliances. The deal involves around 255,000 shares in the 87 Acquisition Corp, a Louisiana-based company. The company said: 'Under the buyer's parent agreement the purchase is prevented from effecting any reverse stock split of the United States company greater than 100 of the then existing shares of the common stock for one new share of the common stock within 18 months from October 22.' The consideration for the deal includes $700 million and the taking on of the Allied Group's rights and liabilities. A spokesman said: 'The transaction is to provide an additional channel to obtain finance to meet its future funding needs through an existing publicly quoted company. The funding exercise could be either in the form of asset injection or direct acquisition followed by a public offering of shares.' At present, the American company has nominal assets and liabilities. It was a computer software business until August 1987 when its shareholders approved the sale of substantially all its assets.