UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
( ) Check this box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue. See Instructions 1(b).
1. Name and Address of Reporting Person
PNC Bank Corp.,
One PNC Plaza
249 Fifth Avenue
Pittsburgh, PA 15222-2707
USA
2. Issuer Name and Ticker or Trading Symbol
Preferred Networks, Inc.
PNFT
3. IRS or Social Security Number of Reporting Person (Voluntary)
4. Statement for Month/Year
March 1998
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
( ) Director (X) 10% Owner ( ) Officer (give title below) ( ) Other
(specify below)
7. Individual or Joint/Group Filing (Check Applicable Line)
( ) Form filed by One Reporting Person
(X) Form filed by More than One Reporting Person
<TABLE>
<CAPTION>
___________________________________________________________________________________________________________________________________
Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned |
___________________________________________________________________________________________________________________________________|
1. Title of Security |2. |3. |4.Securities Acquired (A) |5.Amount of |6.Dir |7.Nature of Indirect |
| Transaction | or Disposed of (D) | Securities |ect | Beneficial Ownership |
| | | | Beneficially |(D)or | |
| | | | | A/| | Owned at |Indir | |
| Date |Code|V| Amount | D | Price | End of Month |ect(I)| |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C><C> <C> <C> <C> <C> <C>
___________________________________________________________________________________________________________________________________|
<CAPTION>
___________________________________________________________________________________________________________________________________
Table II -- Derivative Securitites Acquired, Disposed of, or Beneficially Owned |
___________________________________________________________________________________________________________________________________|
1.Title of Derivative |2.Con- |3. |4. |5.Number of De |6.Date Exer|7.Title and Amount |8.Price|9.Number |10.|11.Nature of|
Security |version |Transaction | rivative Secu |cisable and| of Underlying |of Deri|of Deriva |Dir|Indirect |
|or Exer | | | rities Acqui |Expiration | Securities |vative |tive |ect|Beneficial |
|cise | | | red(A) or Dis |Date(Month/| |Secu |Securities |(D)|Ownership |
|Price of| | | posed of(D) |Day/Year) | |rity |Benefi |or | |
|Deriva- | | | |Date |Expir| | |ficially |Ind| |
|tive | | | | A/|Exer-|ation| Title and Number | |Owned at |ire| |
|Secu- | | | | | D |cisa-|Date | of Shares | |End of |ct | |
|rity |Date |Code|V| Amount | |ble | | | |Month |(I)| |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C> <C><C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Warrants to purchase c|$1.50 |03/17|P | |156,785 |A |03/17|03/17|Common Stock|156,785|(2) |1,460,118 | |I (1) |
ommon stock | |/98 | | | | |/98 |/03 | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
| | | | | | | | | | | | | | |
___________________________________________________________________________________________________________________________________|
</TABLE>
Explanation of Responses:
(1) PNC Holding Corp. ("PNCHC") is the owner of all of the
outstanding common stock of
PNC Capital Corp. ("PNCCC"). The Reporting Person is the owner of all of the
outstanding
common stock of PNCHC. By virtue of the relationships described above, PNCHC
and the
Reporting Person may be deemed to control PNCCC and possess indirect beneficial
ownership of
the securities of the Issuer directly beneficially held by
PNCCC.
(2) On March 17, 1998, PNCCC and certain other stockholders of the Issuer
(the
"Stockholders") invested an aggregate of $8 million in newly issued Class B
Senior Redeemable
Preferred Stock and warrants of the Issuer. PNCCC invested a total of
$232,273.50 of such amount.
Joint Filer Name: PNC Capital
Corp.
Address: c/o PNC Bank,
Delaware
222 Delaware
Avenue
Wilmington, DE
19801
Signature: /s/ Gary J.
Zentner
Gary J. Zentner,
President
Joint Filer Name: PNC Holding
Corp.
Address: c/o PNC Bank,
Delaware
222 Delaware
Avenue
Wilmington, DE
19801
Signature: /s/ Robert L.
Haunschild
Robert L. Haunschild, Chairman and
President
SIGNATURE OF REPORTING PERSON
/s/ Robert L. Haunschild, Sr. Vice President & CEO
DATE
April 10, 1998
