Short-term T-bill yields off sharply

Yields on short-term T-bills fell sharply at the regular weeklyauction, tumbling about a third of a percentage point to their lowestlevels in more than nine years. The Treasury Department auctioned$7.816 billion of three-month bills at an average rate of 5.32percent, down from 5.64 percent last week. The government sold$7.805 billion of six-month bills at an average rate of 5.35 percent,down from 5.65 percent last week. The 13-week rate was the lowestsince July 25, 1977, when the rate was 5.163 percent and the 26-weekrate was the lowest since July 1, 1977, when it was 5.246 percent. WELLS FARGO LOWERS PRIME

Wells Fargo Bank, San Francisco, yesterday lowered its primerate to 7.5 percent from 8 percent, the first of the nation's largebanks to follow the Federal Reserve Board's cut in its discount rate.The Fed Wednesday lowered the rate it charges on loans to banks to5.5 percent from 6 percent. HOUSEHOLD BUYS J.P. HEILWEIL

Household Manufacturing, Inc., a subsidiary of HouseholdInternational Corp. has acquired J.P. Heilweil Industries ofPhiladelphia, a manufacturer of commercial food service equipment.Terms weren't disclosed for the cash purchase. Heilweil produces abroad line of refrigerators, storage freezers and refrigerateddisplay cases, and Household said the product line expands itsexisting line of food service equipment. FARLEY MUM ON PUBLIC OFFERING

Officials of Farley/Northwest Industries refused to comment onreports the company is planning to make a public stock offering aspart of a financial reorganization. The Securities and ExchangeCommission said no registration statement has been filed. WilliamFarley, chairman of Farley/Northwest, could not be reached yesterdayto elaborate on comments he reportedly made at last week's WhiteHouse Conference on Small Business regarding the company's plans fora public offering. GOULD STOCK GAINS

Gould stock closed at $19.87 1/2 yesterday, up $1, on the NewYork Stock Exchange in heavy trading. Industry analyst Julian Menearsuggested that the market may be expecting additional streamliningmeasures from the company following a directors' meeting today. Thestock has taken a beating this year as a result of a restatement offirst-quarter earnings to show a $115 million loss and steeply lowerearnings in the second quarter. The stock has traded as low as$14.25 this year. IC DECLINES COMMENT ON RUMOR

A spokesman for IC Industries declined comment yesterday onrumors that the company's management was considering a leveragedbuyout. IC's stock closed at $27.25 a share on the New York StockExchange, up $1.37 1/2. The spokesman told Dow Jones News Servicethat the company had made no announcements and there was no pendingnews. KRAFT BUYING KEELER FOODS

Glenview-based Kraft Inc. signed a definitive agreement toacquire the assets and assume certain liabilities of Keeler Foods, abroad-line food service distributor owned and operated by Distribuco,Inc. in Santa Ana, Calif. The acquisition will increase Kraft'spresence in Southern California, an important serving area for thefood service industry. Kraft will pay $15.1 million in cash anddeliver a two-year note for $1.3 million. TAFT MAY SELL 5 STATIONS

Taft Broadcasting Co. said it decided "to explore financialalternatives with regard to its five independent television stations,including the possible sale or divestiture of these properties." Thestations are KTXA-TV, Arlington, Texas; KTXH-TV, Houston; WCIX-TV,Miami; WTAF-TV, Philadelphia, and WDCA-TV, Washington, D.C. GoldmanSachs & Co. was retained as financial adviser. STEEL PRODUCTION RISES IN WEEK

Steel production rose 3 percent to 1.28 million short tons inthe week ended Aug. 23 from 1.25 million short tons, the AmericanIron and Steel Institute reported. CORRECTION

Under the new tax code, commodity profits would be taxed at themaximum 28 percent individual rate after 1988. In 1987, commodityprofits would be taxed at slightly above the present 32 percent rate.Yesterday's Sun-Times incorrectly stated the proposed rates.