In one of the largest internal restructurings...

In one of the largest internal restructurings ever in the mutual fund industry, Shearson Lehman Hutton Holdings Inc. plans to reorganize its fund operations. Papers filed by the securities firm with the Securities and Exchange Commission indicate that Shearson intends to merge 20 similar stock and bond funds into 10, and combine 10 money market funds into three. Shearson officials said the planned moves would affect about a third of the firm’s combined mutual fund assets of more than $35 billion. The firm would not say how much money it expects to save, nor how many layoffs might result.