ECONOMY Industrial production

fell 0.6 percent last month after declines of 1.8 percent in November and 0.7 percent in October, the Federal Reserve said. COMPANIES Wang Laboratories

will lay off 500 workers in the next few weeks, according to an internal company memo sent to the computer maker's 19,000 employees last week. Wang already has cut its work force by more than a third.

GM

signed a seven-year deal with CBS Sports to be the sole U.S. automobile advertiser on the CBS television network's coverage of NCAA college basketball. Terms of the agreement were not disclosed, but one industry source said it was believed to be worth close to $400 million.

Fannie Mae

is teaming up with General Electric Mortgage Capital Corp. to offer a new kind of home mortgage that combines an adjustable- and a fixed-interest rate in a single loan.

Harman International Industries

said it will strengthen its balance sheet by reducing company inventories, a plan that it expects will "adversely" affect profits. ACQUISITIONS Banc One

in Columbus, Ohio, said it had agreed in principle with PNC Financial Corp. to acquire four affiliates of PNC's Central Bancorporation of Cincinnati for $225 million in cash and securities.

Cable & Wireless Communications

of Vienna bought part of the voice mail business of GTE Telemessager. Terms were not disclosed.

Lloyd's of London

has issued recommended insurance premiums for cargoes on voyages to or from Israeli ports. Previously, insurance premiums for cargoes being transported to or from any Israeli port were "held covered" or had to be negotiated on a voyage-by-voyage basis. INTERNATIONAL Poland completed

a stock offering for the first five companies to be privatized. The government sold more than 4.3 million shares valued at $31.6 million, laying the groundwork for private ownership of Poland's socialist state-owned assets. All five offerings were oversubscribed. REGULATION Quotas on Japanese cars

exported to the United States should not be restructured because it would only increase profits for top U.S. carmakers at the expense of U.S. jobs and consumers, the American International Automobile Dealers Association said. CONTRACTS MCI

signed a five-year, $87 million contract to provide long-distance services to Visa International. EARNINGS The Bank of New York

said its income was off 42 percent in the fourth quarter at $65 million, compared with $107 million in the year-ago quarter. But it said 1990 profits soared to $308 million from $51 million in 1989.

Digital Equipment

reported a 28 percent drop in second- quarter earnings, but company officials said the results show the computer maker has started to reverse its recent troubles.

Rockwell International

reported a 2.9 percent decline in its first-quarter earnings.

Ameritech reported fourth-quarter income declined 13.5 percent but 1990 earnings increased 1.3 percent.

PEOPLE Joseph R. Baczko was named president, chief operating officer and a director of Blockbuster Entertainment.