The company, which has been resisting a $2.4 billion bid from a New York investment group, announced a $2.8 billion merger pact with Black & Decker.

Paramount's advisers are expected to recommend an offer to the board, though they have prepared merger pacts for both companies.

The merger pact does give Lotus some extra protection from the I.B.M. bureaucracy.

Under the merger pact, he would be one of two joint chief executives with Ron Sommer, the 49-year-old Deutsche Telekom chief.

Board of Trade officials said they anticipated many other merger pacts as the industry consolidated.

Earlier yesterday Federated's stock failed to react positively to the merger pact with Macy, indicating that many investors did not believe the takeover war was quite over.

Under the merger pact, the new board will have 15 members, six from Lilco, six from Brooklyn Union and three new independent directors selected jointly.

Chemical's rebound, beginning with a first-quarter profit of $152 million last year, was clearly a precondition to yesterday's merger pact.

After announcing the tentative merger pact, Lorimar disclosed that the investor Marvin Davis, who had expressed an interest in the company, was considering a $15-a-share bid.

Under the merger pact, Jorgensen's shareholders will receive $41.50 a share, a total of $260 million, for their stock.