A spokesperson for J.C. Nichols Co., which is suing Harvard's high-risk investment division to stop an alleged hostile takeover attempt, said yesterday that progress is being made toward a settlement.

"There have been some discussions between our attorneys, but nothing has been resolved," said Kelly Sherman, vice president for public affairs at the Kansas City, Mo., real estate development company.

University officials yesterday continued their refusal to discuss the suit filed last week against the Harvard Private Capital Group, citing the confidentiality of pending litigation.

Acting President and Provost Albert Carnesale and spokesperson Joe Wrinn both would not comment about the suit by Nichols. The company is seeking an injunction in federal court to stop the bid by the Private Capital Group and New York partner Allen & Co.

Nichols has alleged that the Private Capital Group, an arm of the Harvard Management Company (HMC), and Allen & Co., an investment firm, are using confidential information in their bid. HMC invests money from the University's endowment fund.

Carnesale did acknowledge that he had received a letter from Nichols president and chief executive officer Lynn L. McCarthy asking the University to pull out of the buyout effort.

The suit alleges that Allen & Co. is using data obtained when it was advising Nichols on financial matters. Allen & Co. worked for Nichols beginning in 1990, according to a statement released last week by Nichols.

Allen & Co. has also filed a suit against Nichols, asking that for a court order forcing the real estate development company to reveal the names of its stockholders.

That suit also demands that McCarthy be forced to repay a loan from Nichols which he used to buy a majority share in the company's stock.

Allen & Co. and Harvard Private Capital Group have offered $50 million in cash and stock to buy control of Nichols, the Kansas City Star reported.

Nichols refused to negotiate with the partners, according to the statement released by the company last week, because the buyout proposal lacks a "long-term vision for the future."

The letter from McCarthy also went to Robert G. Stone Jr. '45, University Corporation member; Allen J. Proctor '73, vice president for finance; Jay O. Light, Baker professor of business administration; and Michael Thonis, Michael Eisenson and Verne Sadlacek of HMC.