SECURITIES

State, Prudential in Talks: California Corporations Commissioner Gary S. Mendoza was negotiating with Prudential Securities’ lawyers over California’s threat to suspend the brokerage from doing business in the state. Mendoza is seeking changes in the terms of a tentative settlement between Prudential and the state regarding securities law violations in Prudential’s $8-billion limited partnership program. Mendoza is unlikely to announce a decision before Thursday, sources said. The main issue has to do with the value Prudential is assigning the partnership interests, the sources said. The higher the value, the less Prudential is likely to have to pay out in settlements with small investors.