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American Home Products Corp. said it exercised its option to buy the remaining 40% of biotechnology company Genetics Institute Inc. for about $1.2 billion. . . . Richard Lundwall, the Texaco Inc. executive who taped meetings where company managers belittled blacks and plotted to destroy documents, is cooperating with prosecutors and may get the charge against him resolved without a trial, according to court papers. . . . The United Steelworkers of America said the 40,000-member Aluminum, Brick & Glass Workers International Union voted to merge with the steelworkers union. . . . Japan has agreed to raise taxes on domestic liquor and lower those for whiskey in order to comply with a World Trade Organization ruling, government officials said.