Case-New Holland reaps global economy.(acquisition of Case Corp by New Holland N.V.)

New Holland NV's acquisition of Case Corp. adds a new twist to the term "globalization."

"The fun way of describing it is you have an Italian-run company, chartered in the Netherlands, based in London, being turned around and run by an American company headed by a Frenchman," said Eli Lustgarten, an analyst at Schroder & Co., New York. "It shows you how global this industry is but why it will take a long time to integrate."

Indeed, transforming the two farm- and construction-equipment makers into one global powerhouse will be a major test for Jean-Pierre Rosso, the amiable Frenchman who heads Racine-based Case.

Rosso, who will be chairman and chief executive officer of the combined company, will have to sign off on some tough decisions, including which plants to close and which jobs to cut.

And investors who are seeking immediate gratification may want to look elsewhere: The combination is expected to dilute the new company's per-share earnings until 2001.

Yet if Rosso's management team passes the test, analysts expect the new company to be in a much better position to compete with Deere & Co., the Moline, …