Business Notes BLUNDERS

It was a simple clerical error, but it could be the most expensive typo of all time. In 1978 Prudential, the largest insurance company in the U.S., lent $160 million to United States Lines, a shipping firm. As part of the deal, Prudential got a lien on eight ships. In 1986 United States Lines went into bankruptcy proceedings and started selling off assets. Prudential said it was owed nearly $93 million, the value of the lien, from the ships' sale.

Or so the insurance company thought. A close look at the lien documents disclosed that someone had omitted three little zeros, thus entitling Prudential to $92,885 instead of $92,885,000. The mistake loomed large this month when McLean Industries, parent firm of United States Lines, sold the ships for $67 million. In a settlement approved by a federal court last week, McLean agreed to give Prudential the proceeds from the sale of the ships -- minus $11 million. That was the price McLean demanded for disregarding the missing zeros.