TRADING PLACES: Walter Davis went to Portland, Drazen Petrovic and Terry Mills moved to New Jersey, and Denver acquired a first-round draft pick and Greg "Cadillac" Anderson yesterday in a three-team deal.

Davis, a 14-year pro, joins an already potent Trail Blazers guard rotation. Davis was Denver's No. 3 scorer, averaging 18.7 points.

For Petrovic and Mills, the Nets gave up Anderson, acquired only last week from Milwaukee, and their No. 1 pick in 1992, 1993 or 1994.

The Nuggets will get New Jersey's first-round selection in 1992 if it's not one of the first 12 picks. If Denver does not get the pick in 1992, it will receive the Nets' 1993 first-rounder, as long as it's not among the first seven. If they didn't get either the 1992 or '93 pick, the Nuggets would automatically get the Nets' 1994 first-round selection.

"This could be a good deal for all three teams," Nets General Manager Willis Reed said. "Portland gets a proven veteran who can help them get a ring. Denver gets a good rebounder and shot blocker, and they really wanted a first-round pick."

Petrovic, a second-year guard from Zagreb, Yugoslavia, has averaged just 4.4 points in 18 games this season. He became disenchanted with the Trail Blazers after they acquired Danny Ainge in the offseason, and at one point was fined for asking to be traded. The fine was rescinded when he apologized.

Rookie F Mills averaged 7.5 in 17 Denver games, after a long holdout.

To make room for Mills and Petrovic on the roster, the Nets placed center Sam Bowie on the injured list with a bruised right shin.

IN FOR SMITS: The Pacers put C Rik Smits on the injured list with bone chips in his right elbow; signed nine-year NBA veteran Jawann Oldham to a 10-day contract. Smits underwent arthroscopic surgery Tuesday.

BATTLE OVER: F Kenny Battle, out since Dec. 26 (sprained ankle) was waived by the Suns. He was a first-round pick in 1989.