-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NktyUO+daqJzky/mlJxGldPNOphVJVvf2yYlLjSlB9bMBT7ooIdq6odFA5O0WZug /qZRMhB5YbOx80fnoK9w5g== 0000950144-98-012728.txt : 19981118 0000950144-98-012728.hdr.sgml : 19981118 ACCESSION NUMBER: 0000950144-98-012728 CONFORMED SUBMISSION TYPE: PRE13E3/A PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 19981116 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: RAGAN BRAD INC CENTRAL INDEX KEY: 0000081764 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-AUTO & HOME SUPPLY STORES [5531] IRS NUMBER: 560756067 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: PRE13E3/A SEC ACT: SEC FILE NUMBER: 005-13534 FILM NUMBER: 98749728 BUSINESS ADDRESS: STREET 1: 4404 G STUART ANDREW BLVD CITY: CHARLOTTE STATE: NC ZIP: 28217-9990 BUSINESS PHONE: 7045212100 MAIL ADDRESS: STREET 1: 4404 G STUART ANDREW BLVD CITY: CHARLOTTE STATE: NC ZIP: 28217 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: GOODYEAR TIRE & RUBBER CO /OH/ CENTRAL INDEX KEY: 0000042582 STANDARD INDUSTRIAL CLASSIFICATION: TIRES AND INNER TUBES [3011] IRS NUMBER: 340253240 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: PRE13E3/A BUSINESS ADDRESS: STREET 1: 1144 E MARKET ST CITY: AKRON STATE: OH ZIP: 44316 BUSINESS PHONE: 2167962121 MAIL ADDRESS: STREET 1: 1144 E MARKET ST CITY: AKRON STATE: OH ZIP: 44316 PRE13E3/A 1 BRAD RAGAN PRE13E3/A 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 --------------------- SCHEDULE 13E-3 RULE 13E-3 TRANSACTION STATEMENT (PURSUANT TO SECTION 13(E) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 13E-3 (SEC. 240.13E-3) THEREUNDER) AMENDMENT NO. 4 --------------------- BRAD RAGAN, INC. (Name of the Issuer) BRAD RAGAN, INC. THE GOODYEAR TIRE & RUBBER COMPANY (Name of Person(s) Filing Statement) COMMON STOCK, PAR VALUE $1.00 PER SHARE (Title of Class of Securities) 750626103 (CUSIP Number of Class of Securities) --------------------- WILLIAM P. BROPHEY GEORGE E. STRICKLER PRESIDENT AND CHIEF EXECUTIVE OFFICER VICE PRESIDENT BRAD RAGAN, INC. THE GOODYEAR TIRE & RUBBER COMPANY 4404-G STUART ANDREW BOULEVARD 1144 EAST MARKET STREET CHARLOTTE, NORTH CAROLINA 28217 AKRON, OHIO 44316 (704) 521-2100 (330) 796-2121
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications on Behalf of Person(s) Filing Statement) --------------------- THE COMMISSION IS REQUESTED TO SEND COPIES OF ALL COMMUNICATIONS TO: GARZA BALDWIN, III ROBIN L. HINSON WOMBLE CARLYLE SANDRIDGE & RICE, PLLC ROBINSON, BRADSHAW & HINSON, P.A. 3300 ONE FIRST UNION CENTER 101 NORTH TRYON STREET, SUITE 1900 301 SOUTH COLLEGE STREET CHARLOTTE, NC 28246 CHARLOTTE, NORTH CAROLINA 28202-6025
CLARENCE W. WALKER KENNEDY COVINGTON LOBDELL & HICKMAN, L.L.P. 100 NORTH TRYON STREET, SUITE 4200 CHARLOTTE, NORTH CAROLINA 28202-400 This statement is filed in connection with (check the appropriate box): a. [X] The filing of solicitation materials or an information statement subject to Regulation 14A, Regulation 14C, or Rule 13e-3(c) under the Securities Exchange Act of 1934. b. [ ] The filing of a registration statement under the Securities Act of 1933. c. [ ] A tender offer. d. [ ] None of the above. Check the following box if the soliciting materials or information statement referred to in checking box (a) are preliminary copies: [X] --------------------- CALCULATION OF FILING FEE
- ------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------ TRANSACTION VALUATION* AMOUNT OF FILING FEE - ------------------------------------------------------------------------------------------------------ $20,745,419 $4,149.08 - ------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------
* Pursuant to Rule 0-11(c)(1), the transaction valuation is based on the amount of cash to be received by the issuer's public shareholders in connection with the proposed share exchange. [ ] Check box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number or the Form or Schedule and the date of its filing. $4,149.08 Amount Previously Paid LISTED ABOVE Filing Party SCHEDULE 13E-3 Form or Registration No. MAY 12, 1998 Date Filed 2 BRAD RAGAN, INC. CROSS REFERENCE SHEET The information contained in the Preliminary Proxy Statement of Brad Ragan, Inc. (the "Preliminary Proxy Statement") is incorporated by reference in answer to the items of this Amended Rule 13e-3 Transaction Statement on Schedule 13E-3 (the "Transaction Statement"). This cross reference sheet shows the location of such information required to be included in the response to the items of the Transaction Statement. The Preliminary Proxy Statement is being filed concurrently herewith as Exhibit 17(d) to this Transaction Statement.
ITEM CAPTION IN SCHEDULE 13E-3 LOCATION IN PRELIMINARY PROXY STATEMENT - ---- ------------------------- --------------------------------------- 1. ISSUER AND CLASS OF SECURITY SUBJECT TO THE TRANSACTION 1(a)....................................... Cover Page; "Summary -- Parties to the Exchange Agreement" 1(b)....................................... Cover Page; "Summary -- Votes Required"; "General Information -- Voting Procedures" 1(c) and (d)............................... "Summary -- Market Prices; Dividends"; "The Exchange -- Terms of the Exchange -- Conduct of the Business of the Company" 1(e) and (f)............................... * 2. IDENTITY AND BACKGROUND This Transaction Statement is being filed by Brad Ragan, Inc., the issuer of the class of equity securities which is the subject of the Rule 13e-3 transaction (the "Company"), and The Goodyear Tire & Rubber Company, an Ohio corporation ("Goodyear"). The address of Goodyear's principal executive offices is 1144 East Market Street, Akron, Ohio 44316. Goodyear currently owns approximately 74.5% of the outstanding shares of common stock, par value $1.00 per share, of the Company (the "Common Stock"). The transaction (the "Exchange") will be a share exchange between the Company and Goodyear pursuant to which all outstanding shares of Common Stock, other than shares already held by Goodyear, will be acquired by Goodyear, and each such share (other than shares held by dissenting shareholders) will be converted into the right to receive $37.25 in cash from Goodyear. 2(a)-(d)................................... "Corporate Governance-Nominees for Directors"; "Corporate Governance -- Executive Officers"; "Information Concerning Directors and Executive Officers of Goodyear" 2(e)....................................... Neither the Company nor Goodyear nor any of their respective executive officers, directors or controlling persons have been convicted during the past five years in a criminal proceeding (excluding traffic violations or similar misdemeanors) 2(f)....................................... Neither the Company nor Goodyear nor any of their executive officers, directors or controlling persons have been a party during the last five years to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding were or are subject to a judgment, decree or final order enjoining further violations of, or prohibiting activities subject to, federal or state securities laws or finding any violation of such laws.
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ITEM CAPTION IN SCHEDULE 13E-3 LOCATION IN PRELIMINARY PROXY STATEMENT - ---- ------------------------- --------------------------------------- 2(g)....................................... "Corporate Governance -- Nominees for Directors"; "Corporate Governance -- Executive Officers"; "Information Concerning Directors and Executive Officers of Goodyear" 3. PAST CONTACTS, TRANSACTIONS OR NEGOTIATIONS 3(a)....................................... "Compensation Committee Interlocks and Insider Participation"; "Special Factors -- Background of, and Reasons for, the Exchange" 3(b)....................................... * 4. TERMS OF THE TRANSACTION 4(a)....................................... Cover Page; "Summary -- The Exchange"; "The Exchange -- Terms of the Exchange" 4(b)....................................... Goodyear will not exchange its shares of Common Stock pursuant to the Exchange Agreement 5. PLANS OR PROPOSALS OF THE ISSUER OR AFFILIATE 5(a)....................................... * 5(b) and 5(c).............................. "Special Factors -- Purpose of Exchange; Plans for the Company" 5(d)....................................... * 5(e)-(g)................................... "Special Factors -- Purpose of Exchange; Plans for the Company" 6. SOURCE AND AMOUNTS OF FUNDS OR OTHER CONSIDERATION 6(a) and (b)............................... "Summary -- Termination; Fees and Expenses"; "Special Factors -- Estimated Fees and Expenses"; "The Exchange -- Terms of the Exchange -- Termination; Fees and Expenses"; "The Exchange -- Source and Amount of Funds" 6(c) and (d)............................... * 7. PURPOSE(S), ALTERNATIVES, REASONS AND EFFECTS 7(a)-(c)................................... "Special Factors -- Background of, and Reasons for, the Exchange"; "Special Factors -- Purpose of Exchange; Plans for the Company" 7(d)....................................... "Summary -- Parties to the Exchange; The Exchange"; "Special Factors -- Purpose of the Exchange; Plans for the Company"; "Special Factors -- Certain Tax Consequences of the Exchange" 8. FAIRNESS OF THE TRANSACTION 8(a)....................................... "Summary -- Recommendation of the Board; Fairness of the Exchange"; "Special Factors -- Fairness of the Exchange"
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ITEM CAPTION IN SCHEDULE 13E-3 LOCATION IN PRELIMINARY PROXY STATEMENT - ---- ------------------------- --------------------------------------- 8(b)....................................... "Summary -- Recommendation of the Board; Fairness of the Exchange"; "Summary -- Opinion of the Financial Advisor"; "Special Factors -- Background of, and Reasons for, the Exchange"; "Special Factors -- Opinion of Financial Advisor" 8(c)....................................... "Summary -- Votes Required"; General Information -- Voting Procedures"; "Special Factors -- Background of, and Reasons for, the Exchange" 8(d)....................................... "Special Factors -- Fairness of the Exchange" 8(e)....................................... "Summary -- Recommendation of the Board; Fairness of the Exchange"; "Special Factors -- Background of, and Reasons for, the Exchange"; "Special Factors -- Fairness of the Exchange" 8(f)....................................... * 9. REPORTS, OPINIONS, APPRAISALS AND CERTAIN NEGOTIATIONS 9(a) and (b)............................... "Summary -- Opinion of Financial Advisor"; "Special Factors -- Background of, and Reasons for, the Exchange"; "Special Factors -- Opinion of Financial Advisor" 9(c)....................................... "Special Factors -- Opinion of Financial Advisor" 10. INTEREST IN SECURITIES OF THE ISSUER 10(a)...................................... "Summary -- Votes Required"; "Summary -- Interests of Certain Persons in the Exchange"; "Special Factors -- Interests of Certain Persons in the Exchange"; "Security Ownership of Management and Certain Beneficial Owners" 10(b)...................................... "Corporate Governance -- Executive Officers of the Company"; "Information Concerning Directors and Executive Officers of Goodyear" 11. CONTRACTS, ARRANGEMENTS OR UNDERSTANDINGS WITH RESPECT TO THE ISSUER'S SECURITIES...... "Summary -- Votes Required"; "Summary -- Interests of Certain Persons in the Exchange"; "General Information -- Voting Procedures"; "Special Factors -- Interests of Certain Persons in the Exchange"; "Special Factors -- Background of, and Reasons for, the Exchange"; "The Exchange -- Proposal to Amend the Articles"; "Security Ownership of Management and Certain Beneficial Owners" 12. PRESENT INTENTION AND RECOMMENDATION OF CERTAIN PERSONS WITH REGARD TO THE TRANSACTION 12(a)...................................... "Summary -- Votes Required"; "General Information -- Voting Procedures" 12(b)...................................... Goodyear has not made any recommendation in support of or opposed to the Exchange
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ITEM CAPTION IN SCHEDULE 13E-3 LOCATION IN PRELIMINARY PROXY STATEMENT - ---- ------------------------- --------------------------------------- 13. OTHER PROVISIONS OF THE TRANSACTION 13(a)...................................... "Summary -- Dissenters' Rights"; "The Exchange -- Dissenters' Rights" 13(b)...................................... * 13(c)...................................... * 14. FINANCIAL INFORMATION 14(a)...................................... The information set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 1997 is incorporated herein by reference 14(b)...................................... * 15. PERSONS AND ASSETS EMPLOYED, RETAINED OR UTILIZED 15(a)...................................... "General Information -- Proxy Solicitation" 15(b)...................................... * 16. ADDITIONAL INFORMATION....................... Included throughout the Preliminary Proxy Statement 17. MATERIAL TO BE FILED AS EXHIBITS
EXHIBIT NO. DESCRIPTION METHOD OF FILING ------- ----------- ---------------- 17(b)(1) Opinion of Interstate/Johnson Lane Corporation dated February 13, 1998................................ Previously filed 17(b)(2) Opinion of Interstate/Johnson Lane Corporation dated May 4, 1998....... Previously filed 17(b)(3) Opinion of Interstate/Johnson Lane Corporation dated , 1998................................ To be included as Annex II to the Preliminary Proxy Statement, filed as Exhibit 17(d) hereto 17(b)(4) Financial analysis presentation materials prepared by Interstate/Johnson Lane Corporation in connection with providing its opinion to the Special Committee on November 14, 1997................... Filed herewith 17(b)(5) Letter, dated December 4, 1997, from Mario J. Gabelli to Robin L. Hinson.............................. Previously filed 17(b)(6) Letter, dated December 5, 1997, from Jane E. Mautner to Robin L. Hinson.............................. Previously filed 17(b)(7) Materials prepared by Credit Suisse First Boston ("CFSB") and provided to Goodyear concerning valuation methodology and prior transactions........................ Previously filed 17(b)(8) Materials prepared by Securities Data Company and provided to Goodyear by CFSB concerning prior transactions........................ Filed herewith 17(b)(9) Summary of conversations between representatives of Goodyear and representatives of CFSB during late September and early October 1997.... Previously filed
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EXHIBIT NO. DESCRIPTION METHOD OF FILING ------- ----------- ---------------- 17(b)(10) Summary of computations of the estimated value of the Company conducted by Goodyear............... Filed herewith 17(c) Agreement and Plan of Exchange........ See Annex I to the Preliminary Proxy Agreement, filed as Exhibit 17(d) hereto 17(d) Preliminary Proxy Statement........... Filed herewith 17(e) Article 13 of the North Carolina Business Corporation Act............ See Annex IV to the Preliminary Proxy Statement, filed as Exhibit 17(d) hereto
- --------------- * Item not applicable or answer is negative. 7 SIGNATURES After due inquiry and to the best of our knowledge and belief, the undersigned certify that the information set forth in this Transaction Statement is true, complete and correct. BRAD RAGAN, INC. By: /s/ RONALD J. CARR ------------------------------------ Name: Ronald J. Carr ---------------------------------- Title: Vice President ----------------------------------- Date: November 13, 1998 THE GOODYEAR TIRE & RUBBER COMPANY By: /s/ GEORGE E. STRICKLER ------------------------------------ Name: George E. Strickler ---------------------------------- Title: Vice President ----------------------------------- Date: November 13, 1998 EX-17.B.4 2 FINANCIAL ANALYSIS PRESENTATION MATERIALS 1 EXHIBIT 99.17(b)(4) PRESENTATION TO THE SPECIAL COMMITTEE OF THE BOARD OF DIRECTORS OF BRAD RAGAN, INC. [LOGO] INTERSTATE/JOHNSON LANE CORPORATION NOVEMBER 14, 1997 2 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- TABLE OF CONTENTS I. Valuation Analysis A. Summary of Acquisition Proposal B. Historical and Projected Financial Results C. Historical Stock Price and Volume D. Comparable Companies Analysis E. Precedent M&A Transactions F. Discounted Cash Flow Analysis G. Capitalization of Earnings II. Valuation Conclusions Appendices A. Premiums Paid Analysis for Minority Interest B. Security Price History 3 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC. SUMMARY OF ACQUISITION PROPOSAL Brad Ragan, Inc. ("BRI") The Goodyear Tire & Rubber Company ("GT")
Key Statistics - -------------- Offer Price - GT to BRI $ 32.00 Current Stock Price (11/14/97) - BRI $ 37.00 Shares to be acquired by GT 556,924 Market Value of Deal at Offer Price $17,821,568 Market Value of Deal at Current Price $20,606,188 Market Value at Offer Price $70,099,808 Market Value at Current Price $81,052,903 Book Value at 9/30/97 $ 47,664 Common Shares Outstanding - BRI 2,190,619 % of Company currently owned by GT 74.6%
Premium/Discount of Offer Price to Stock Price Bid Ask Close Pre/Post Deal Prices - ------------------ ---------- ---------- -------- -------------------- One Day Prior to Announcement of Deal (10/22/97) $28.63 $30.38 $30.00 6.7% One Week Prior to Announcement of Deal (10/15/97) 29.63 32.38 30.00 6.7% One Month Prior to Announcement of Deal (9/22/97) 27.63 30.38 29.00 10.3% One Day After Announcement of Deal (10/24/97) 32.63 34.88 33.50 -4.5% Current Price (11/14/97) 36.00 37.00 NA -11.1%
4 BRAD RAGAN, INC. SUMMARY FINANCIAL DATA INTERSTATE/JOHNSON LANE =============================================================================== - ------------------------------------------------------------------------------- (IN THOUSANDS, EXCEPT PER SHARE DATA)
December 31, December 31, December 31, December 31, 1993 1994 1995 1996 [1] ----------------- ------------------- ------------------- ----------------- Income Statement Data Net sales $ 242,699 100.0% $ 249,007 100.0% $ 251,142 100.0% $ 251,999 100.0% % change - 2.6% 0.9% 0.3% Cost of sales 159,972 65.9% 163,168 65.5% 165,850 66.0% 165,921 65.8% Selling, administrative and general expenses 76,982 31.7% 79,455 31.9% 80,397 32.0% 82,418 32.7% Unusual charge - - - EBITDA 6,937 2.9% 7,680 3.1% 6,565 2.6% 5,757 2.3% % change - 10.7% -14.5% -12.3% Depreciation and amortization 1,192 0.5% 1,296 0.5% 1,670 0.7% 2,097 0.8% EBIT 5,745 2.4% 6,384 2.6% 4,895 1.9% 3,660 1.5% % change - 11.1% -23.3% -25.2% Interest expense, net 1,678 0.7% 1,873 0.8% 2,485 1.0% 2,504 1.0% Income before income taxes 4,067 1.7% 4,511 1.8% 2,410 1.0% 1,156 0.5% % change - 10.9% -46.6% -52.0% Provision (benefit) for income taxes - 0.0% 675 0.3% 1,054 0.4% 439 0.2% Income (loss) before effect of 4,067 3,836 1,356 717 change in accounting principle Effect of change in accounting principle 1,253 - - - Net income $ 2,814 1.7% $ 3,836 1.5% $ 1,356 0.5% $ 717 0.3% % change - -5.7% -64.7% -47.1% Per share of common stock: Income (loss) before effect of $ 1.85 $ 1.75 $ 0.62 $ 0.33 change in accounting principle Effect of change in accounting principle (0.57) - - - Net income (loss) $ 1.28 $ 1.75 $ 0.62 $ 0.33 % change - -5.4% -64.6% -47.2% Balance Sheet Data Total assets $ 114,037 $ 118,823 $122,013 $127,330 Total debt 32,974 33,885 33,903 43,695 Total shareholders' equity 44,454 48,291 49,647 46,738
- ----------- [1] Calculations do not include non-recurring litigation and settlement costs of $5.8 million; used 38% tax rate. 5
BRAD RAGAN, INC. PROJECTED FINANCIAL DATA INTERSTATE/JOHNSON LANE ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- (IN THOUSANDS, EXCEPT PER SHARE DATA) December 31, December 31, December 31, December 31, 1997E 1998E 1999E 2000E ----------------- ------------------- ------------------- ----------------- INCOME STATEMENT DATA Net sales $ 257,208 100.0% $ 264,391 100.0% $ 274,321 100.0% $ 282,592 100.0% % CHANGE -- 2.8% 3.8% 3.0% Cost of sales 167,687 65.2% 172,427 65.2% 179,277 65.4% 184,758 65.4% Selling, administrative and general expenses 59,904 23.3% 61,046 23.1% 62,395 22.7% 63,914 22.6% EBITDA 6,851 2.7% 7,794 2.9% 9,109 3.3% 10,217 3.6% % CHANGE -- 13.8% 16.9% 12.2% Depreciation and amortization 2,405 0.9% 2,553 1.0% 3,071 1.1% 3,729 1.3% EBIT 4,446 1.7% 5,241 2.0% 6,038 2.2% 6,488 2.3% % CHANGE -- 17.9% 15.2% 7.5% Interest expense, net 2,805 1.1% 2,850 1.1% 2,900 1.1% 2,950 1.0% Income before income taxes 1,641 0.6% 2,391 0.9% 3,138 1.1% 3,538 1.3% % CHANGE -- 45.7% 31.2% 12.7% Provision (benefit) for income taxes 656.0 0.3% 956 0.4% 1,255 0.5% 1,415 0.5% Net income $ 985 0.4% $ 1,435 0.6% $ 1,883 0.7% $ 2,123 0.8% % CHANGE -- 45.7% 31.2% 12.7% Per share of common stock: Net income (loss) $ 0.45 $ 0.66 0.86 $ 0.97 % CHANGE -- 45.7% 31.2% 12.7% BALANCE SHEET DATA Total assets $ 126,182 $ 131,071 $ 136,121 $ 140,135 Total debt 31,972 34,178 36,498 37,718 Total shareholders' equity 47,723 49,157 51,040 53,163
6 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC Historical Stock Price and Volume [THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.] Security Price History RAGAN BRAD INC COM 13-Nov-97 BRD 75062610 AMEX Common Stock U.S. Dollar
Net Volume Price High Low 12-Nov-97 1,300 $33.50 34.875 33.125 07-Nov-97 0 $33.50 34.875 32.125 31-Oct-97 3,000 $34.25 34.875 32.125 24-Oct-97 2,100 $33.50 34.500 28.625 17-Oct-97 0 $31.00 32.375 29.625 10-Oct-97 1,300 $31.00 32.375 29.625 03-Oct-97 2,000 $30.00 31.375 27.625 26-Sep-97 2,000 $29.00 30.375 27.625 19-Sep-97 0 $29.00 30.375 27.625 12-Sep-97 2,500 $29.00 30.375 27.625 05-Sep-97 1,000 $28.25 28.875 26.125 29-Aug-97 500 $27.50 29.125 26.375 22-Aug-97 0 $27.75 29.125 26.375 15-Aug-97 0 $27.75 29.250 26.375 08-Aug-97 0 $27.75 29.250 26.375 01-Aug-97 0 $28.38 29.375 27.125 25-Jul-97 500 $27.75 29.625 26.375 18-Jul-97 500 $28.38 29.625 25.375 11-Jul-97 1,300 $26.50 27.625 25.375 03-Jul-97 42,500 $25.25 25.250 20.500 27-Jun-97 32,600 $20.50 22.125 17.625 20-Jun-97 1,300 $21.25 23.875 20.875 13-Jun-97 1,300 $22.88 23.875 22.125 06-Jun-97 300 $23.00 24.375 22.625 30-May-97 6,300 $23.63 25.375 22.875 23-May-97 1,400 $25.75 26.500 25.000 16-May-97 0 $25.94 26.500 25.375 09-May-97 0 $25.94 26.625 25.250 02-May-97 0 $26.00 27.000 25.250 25-Apr-97 0 $25.88 26.500 25.250 18-Apr-97 0 $25.88 26.500 25.250 11-Apr-97 1,900 $26.06 27.000 25.125 04-Apr-97 2,500 $26.13 28.000 25.500 27-Mar-97 100 $27.31 28.125 26.625 21-Mar-97 500 $27.50 28.500 27.500 14-Mar-97 0 $28.00 28.500 27.500 07-Mar-97 0 $28.00 28.500 27.500 28-Feb-97 500 $28.00 29.500 27.500 21-Feb-97 0 $29.00 29.500 28.500 14-Feb-97 0 $29.00 29.500 28.500 07-Feb-97 5,300 $28.81 29.500 28.500 31-Jan-97 0 $28.81 29.500 28.500 24-Jan-97 500 $28.75 29.500 28.500 17-Jan-97 2,200 $29.31 30.500 29.000 10-Jan-97 200 $30.00 31.000 29.500 03-Jan-97 0 $30.75 31.000 30.000 27-Dec-96 2,000 $30.75 31.500 30.500 20-Dec-96 2,000 $31.00 31.000 30.000 13-Dec-96 0 $30.50 31.000 30.000 06-Dec-96 200 $30.50 31.000 30.000 29-Nov-96 0 $31.00 31.500 30.500 22-Nov-96 0 $31.00 31.500 30.500 15-Nov-96 0 $31.00 31.500 30.500 08-Nov-96 0 $30.75 31.500 30.500 01-Nov-96 0 $31.00 31.500 30.500 25-Oct-96 1,000 $31.00 31.500 30.250 18-Oct-96 400 $30.63 31.000 30.250 11-Oct-96 0 $30.75 31.500 30.250 04-Oct-96 0 $30.75 31.250 30.250 27-Sep-96 0 $30.75 31.750 29.750 20-Sep-96 0 $30.56 31.250 30.250 13-Sep-96 100 $30.56 31.750 30.250 06-Sep-96 0 $31.25 31.750 30.750 30-Aug-96 0 $31.25 31.750 30.750 23-Aug-96 0 $31.25 31.750 30.750 16-Aug-96 0 $31.25 31.750 30.750 09-Aug-96 100 $31.25 31.750 30.250 02-Aug-96 0 $30.75 31.250 30.250 26-Jul-96 100 $30.69 31.250 30.250 19-Jul-96 100 $30.94 31.750 30.750 12-Jul-96 0 $30.75 31.750 30.250 05-Jul-96 800 $31.25 31.750 30.250 28-Jun-96 2,400 $30.75 32.500 30.250 21-Jun-96 0 $32.00 32.500 31.500 14-Jun-96 0 $32.00 32.500 31.500 07-Jun-96 0 $32.00 32.500 31.500 31-May-96 0 $32.00 32.500 31.500 24-May-96 100 $32.00 33.000 31.500 17-May-96 200 $32.25 33.000 32.000 10-May-96 2,300 $32.50 33.500 32.000 03-May-96 2,200 $34.00 35.500 33.500 26-Apr-96 0 $35.50 36.000 35.000 19-Apr-96 800 $35.50 36.000 35.000 12-Apr-96 400 $34.50 35.000 34.000 04-Apr-96 0 $34.50 35.000 34.000 29-Mar-96 2,000 $34.50 36.500 34.000 22-Mar-96 0 $35.00 35.500 34.500 15-Mar-96 0 $35.00 35.500 34.500 08-Mar-96 200 $35.00 35.500 34.500 01-Mar-96 800 $35.00 36.500 34.500 23-Feb-96 0 $36.00 36.500 35.500 16-Feb-96 200 $36.00 36.500 34.500 09-Feb-96 0 $35.25 35.500 35.000 02-Feb-96 1,000 $35.25 35.500 35.000 26-Jan-96 1,000 $35.25 35.500 35.000 19-Jan-96 0 $35.25 35.500 34.500 12-Jan-96 0 $35.00 35.500 34.500 05-Jan-96 0 $35.00 35.500 34.500 29-Dec-95 0 $35.25 35.500 34.500 22-Dec-95 100 $35.00 35.500 34.000 15-Dec-95 0 $34.50 35.000 34.000 08-Dec-95 100 $34.75 35.000 34.500 01-Dec-95 0 $34.00 34.500 33.500 24-Nov-95 1,000 $34.25 34.500 32.000 17-Nov-95 0 $32.50 33.000 32.000 10-Nov-95 200 $32.50 34.000 32.000 03-Nov-95 0 $33.50 34.000 33.000 27-Oct-95 500 $33.50 34.500 33.000 20-Oct-95 0 $34.00 34.500 33.500 13-Oct-95 900 $34.00 34.500 32.500 06-Oct-95 900 $33.25 34.000 33.000 29-Sep-95 3,500 $33.50 33.500 30.500 22-Sep-95 600 $30.50 31.000 30.000 15-Sep-95 200 $29.50 31.000 29.000 08-Sep-95 400 $30.50 32.250 30.500 01-Sep-95 0 $31.75 32.250 31.250 25-Aug-95 0 $31.75 32.250 31.000 18-Aug-95 6,000 $31.75 33.000 30.500 11-Aug-95 2,500 $30.00 34.500 30.000 04-Aug-95 0 $34.00 34.500 33.500 28-Jul-95 400 $34.25 34.500 33.000 21-Jul-95 0 $34.00 34.500 33.500 14-Jul-95 500 $34.00 34.500 32.000 07-Jul-95 100 $31.50 32.500 30.500 30-Jun-95 800 $31.50 31.500 30.500 23-Jun-95 1,200 $32.00 34.000 32.000 16-Jun-95 0 $34.00 34.500 33.500 09-Jun-95 0 $34.00 34.500 33.500 02-Jun-95 0 $34.00 34.500 33.500 26-May-95 300 $34.00 34.500 33.500 19-May-95 300 $34.00 34.500 33.000 12-May-95 200 $33.00 34.500 32.000 05-May-95 0 $34.00 34.500 33.500 28-Apr-95 600 $34.00 34.500 32.000 21-Apr-95 100 $32.50 33.000 32.000 13-Apr-95 1,000 $32.50 33.000 32.000 07-Apr-95 1,000 $32.50 33.500 32.000 31-Mar-95 100 $32.50 33.500 32.500 24-Mar-95 0 $33.00 33.500 32.500 17-Mar-95 0 $33.00 33.500 32.500
7
Net Volume Price High Low 10-Mar-95 1,000 $33.00 33.500 32.500 03-Mar-95 200 $33.00 34.000 32.500 24-Feb-95 2,100 $33.50 34.000 32.500 17-Feb-95 500 $33.00 35.000 32.500 10-Feb-95 0 $33.50 35.000 33.000 03-Feb-95 1,700 $33.50 35.000 32.500 27-Jan-95 0 $34.50 35.000 34.000 20-Jan-95 0 $34.50 35.000 34.000 13-Jan-95 1,600 $34.25 35.000 32.000 06-Jan-95 500 $32.50 33.000 32.000 30-Dec-94 400 $32.00 32.500 31.500 23-Dec-94 0 $32.25 32.500 31.500 16-Dec-94 0 $32.00 32.500 31.500 09-Dec-94 300 $32.00 33.000 31.500 02-Dec-94 600 $32.50 33.500 32.500 25-Nov-94 0 $33.50 34.000 33.000 18-Nov-94 200 $33.50 34.000 33.000 11-Nov-94 0 $33.50 34.000 33.000 04-Nov-94 200 $33.50 34.000 33.000 28-Oct-94 200 $34.00 34.000 32.500 21-Oct-94 900 $33.00 33.500 32.500 14-Oct-94 200 $33.00 33.000 31.500 07-Oct-94 0 $32.25 32.500 31.500 30-Sep-94 400 $32.25 33.000 32.000 23-Sep-94 200 $32.50 33.500 32.500 16-Sep-94 100 $33.00 34.000 32.500 09-Sep-94 100 $33.50 34.500 33.000 02-Sep-94 1,100 $34.25 35.000 31.250 26-Aug-94 500 $32.13 32.250 31.750 19-Aug-94 1,000 $31.50 32.000 30.000 12-Aug-94 1,000 $31.00 32.000 30.500 05-Aug-94 1,800 $31.00 31.500 29.000 29-Jul-94 300 $28.50 29.000 28.000 22-Jul-94 1,000 $28.75 29.500 28.000 15-Jul-94 900 $28.50 28.500 26.500 08-Jul-94 4,200 $27.19 30.125 27.000 01-Jul-94 1,600 $29.69 30.250 29.250 24-Jun-94 1,800 $29.75 30.250 29.000 17-Jun-94 200 $30.00 30.500 29.250 10-Jun-94 400 $29.75 30.750 29.250 03-Jun-94 700 $30.00 30.500 29.500 27-May-94 0 $29.00 29.250 28.750 20-May-94 0 $29.00 29.500 28.500 13-May-94 0 $29.00 29.500 28.500 06-May-94 400 $29.25 29.500 28.000 29-Apr-94 300 $28.00 28.500 27.500 22-Apr-94 400 $28.00 28.500 27.500 15-Apr-94 0 $28.00 28.500 27.500 08-Apr-94 0 $28.00 29.500 27.500 31-Mar-94 1,600 $28.00 29.000 27.500 25-Mar-94 3,100 $29.00 29.000 27.500 18-Mar-94 4,600 $28.00 28.000 26.500 11-Mar-94 1,400 $27.00 27.500 27.000 04-Mar-94 1,000 $28.00 30.000 28.000 25-Feb-94 600 $29.50 30.500 29.500 18-Feb-94 8,100 $30.50 32.000 27.750 11-Feb-94 200 $29.00 30.000 28.500 04-Feb-94 900 $29.50 30.250 29.000 28-Jan-94 1,500 $29.56 29.875 29.250 21-Jan-94 1,100 $30.00 30.000 29.000 14-Jan-94 700 $29.50 30.000 28.000 07-Jan-94 0 $28.50 29.000 28.000 31-Dec-93 300 $28.25 29.500 28.000 23-Dec-93 100 $29.00 29.500 28.500 17-Dec-93 600 $29.00 30.250 28.500 10-Dec-93 600 $29.75 30.250 29.250 03-Dec-93 600 $29.75 30.250 29.250 26-Nov-93 200 $29.75 30.250 29.250 19-Nov-93 0 $30.25 30.750 29.750 12-Nov-93 300 $30.25 30.750 29.250 05-Nov-93 100 $29.75 30.250 29.250 29-Oct-93 300 $29.75 30.500 29.500 22-Oct-93 700 $30.00 30.000 29.000 15-Oct-93 2,600 $29.50 29.500 27.500 08-Oct-93 0 $27.50 28.000 27.000 01-Oct-93 300 $27.50 28.000 27.000 24-Sep-93 100 $26.50 26.500 25.500 17-Sep-93 200 $26.00 26.500 25.000 10-Sep-93 500 $25.50 26.000 25.000 03-Sep-93 2,400 $25.00 27.000 25.000 27-Aug-93 200 $26.00 27.000 25.500 20-Aug-93 3,000 $26.50 27.000 25.500 13-Aug-93 0 $26.00 26.500 25.500 06-Aug-93 100 $26.00 26.500 25.500 30-Jul-93 500 $26.00 26.000 24.000 23-Jul-93 1,800 $25.50 26.000 24.500 16-Jul-93 2,400 $25.50 25.500 24.000 09-Jul-93 4,300 $24.50 25.000 23.500 02-Jul-93 5,900 $24.50 27.500 24.000 25-Jun-93 500 $28.00 28.500 27.500 18-Jun-93 700 $28.50 29.000 28.500 11-Jun-93 400 $28.50 28.500 27.000 04-Jun-93 700 $27.50 28.000 27.000 28-May-93 100 $26.50 26.500 25.500 21-May-93 200 $26.00 26.500 25.500 14-May-93 200 $25.50 26.000 25.000 07-May-93 0 $25.00 25.500 24.500 30-Apr-93 200 $25.00 25.000 24.000 23-Apr-93 0 $24.50 25.000 24.000 16-Apr-93 1,200 $24.50 25.500 24.000 08-Apr-93 400 $25.50 26.500 25.500 02-Apr-93 0 $26.00 26.500 25.500 26-Mar-93 0 $26.00 26.500 25.500 19-Mar-93 1,400 $26.00 27.625 25.500 12-Mar-93 1,900 $27.00 27.500 26.000 05-Mar-93 0 $25.75 26.000 25.500 26-Feb-93 700 $25.75 26.000 24.500 19-Feb-93 0 $24.50 25.000 24.000 12-Feb-93 100 $24.50 25.000 24.000 05-Feb-93 200 $24.50 25.500 24.500 29-Jan-93 500 $25.25 26.000 25.000 22-Jan-93 800 $25.25 26.000 25.000 15-Jan-93 1,600 $25.50 25.500 24.500 08-Jan-93 2,800 $24.00 24.500 23.500 31-Dec-92 4,400 $23.00 23.000 20.250 24-Dec-92 1,800 $22.00 24.000 22.000 18-Dec-92 1,200 $24.00 27.000 24.000 11-Dec-92 2,000 $26.50 28.000 26.000 04-Dec-92 700 $26.50 26.500 24.500 27-Nov-92 600 $25.00 26.000 24.500 20-Nov-92 1,700 $25.75 26.000 25.000 13-Nov-92 2,200 $24.00 24.500 22.000
8 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC VALUATION SUMMARY OF COMPARABLE COMMERCIAL PUBLIC COMPANIES ($ IN MILLIONS)
BRI Implied Number of Median Operating Value of Multiple Comparables Multiple Results [1] Equity [2] - ----------------------------- ----------- -------- ----------- ---------- Enterprise Value/LTM Revenues 5 0.7 $242.8 $118.8 Enterprise Value/LTM EBITDA 5 10.2 5.7 $ 17.1 Price/LTM Net Income 5 14.0 0.4 $ 5.8 Price Per Share/1998 EPS 5 12.5 1.4 $ 17.9 Price/Book Value 5 1.9 47.7 $ 91.0 ------------------------------------- Implied Valuation [3] $ 50.1 ------------------------------------- ------------------------------------- Implied Valuation per share[3] $22.88 -------------------------------------
(1) LTM as of September 30, 1997. (2) Valuations derived from Enterprise Value multiples exclude $41.1 million of net debt as of 9/30/97. (3) Each valuation multiple is weighted 20%. 9
BRAD RAGAN, INC COMPARABLE COMPANIES (COMMERCIAL) ANALYSIS[1] INTERSTATE/JOHNSON LANE ============================================================================= - ----------------------------------------------------------------------------- (in millions, except per share data) LATEST TWELVE MONTHS ------------------------------- COMPANY TICKER LTM NET SALES EBITDA EBIT - -------------------------- ------ ------- --------- -------- -------- Bandag, Inc. BDG 9/97 $ 770.2 $159.6 $125.1 Cooper Tire & Rubber Co. CTB 9/97 1,740.4 292.4 203.4 Goodyear Tire & Rubber Co. GT 9/97 13,141.0 778.3 307.8 Standard Products Co. SPD 9/97 1,088.8 114.0 61.6 Treadco Inc. TRED 9/97 156.9 2.6 (2.8) - ----------------------------------------------------------------------------- BRAD RAGAN, INC. [3] BRD 9/97 $ 242.8 $ 5.7 $ 3.4 - ----------------------------------------------------------------------------- LATEST TWELVE MONTHS -------------------------------------------------- PRE-TAX INCOME BEFORE INCOME AFTER NET INCOME INCOME EXTRA. ITEMS EXTRA. ITEMS MARGIN ------- ------------- ------------ ---------- Bandag, Inc. $123.6 $ 76.8 $ 76.8 10.0% Cooper Tire & Rubber Co. 191.1 120.5 120.5 6.9% Goodyear Tire & Rubber Co. 168.1 148.5 148.5 1.1% Standard Products Co. 45.6 28.9 28.9 2.7% Treadco Inc. (4.6) (2.9) (2.9) NA - --------------------------------------------------------------------------------- BRAD RAGAN, INC. [3] $ 0.7 $ 0.4 $ 0.4 0.2% - --------------------------------------------------------------------------------- EARNINGS PER SHARE(2) ---------------------------------------------------------- LTM FISCAL YEAR CALENDAR YEAR ------------------------------ --------------------------- LTM 1997 1998 1996 1997 1998 ------ ------- -------- ------- ------- ------- Bandag, Inc. $ 3.34 $3.30 $3.45 $3.44 $3.30 $3.45 Cooper Tire & Rubber Co. 1.51 1.59 1.82 1.30 1.59 1.82 Goodyear Tire & Rubber Co. 4.62 4.71 5.24 4.35 4.71 5.24 Standard Products Co. 2.39 2.33 2.76 1.82 2.45 NA Treadco Inc. (0.56) (0.38) 0.00 (0.64) (0.38) 0.00 - ---------------------------------------------------------------------------------------- BRAD RAGAN, INC. [3] 0.19 NA NA NA NA NA - ----------------------------------------------------------------------------------------
- -------------------- (1) For certain income statement and/or balance sheet items where the most recent quarterly information was not available, the prior quarter amounts were used. (2) E.P.S. data represent primary E.P.S. before extraordinary items and discontinued operations. E.P.S. estimates obtained from First Call. (3) LTM calculations do not include non-recurring litigation and settlement costs of $5.8 million; used 38% tax rate. E.P.S. = Earnings per Share FY = Fiscal Year NA = Not Available NM = Not Meaningful 10
BRAD RAGAN, INC COMPARABLE COMPANIES (COMMERCIAL) ANALYSIS INTERSTATE/JOHNSON LANE =========================================================================================== - ------------------------------------------------------------------------------------------- (in millions, except per share data) SHARE 52 WEEK MARKET PRICE ------------------ SHARES BOOK VALUE OF COMPANY 11/13/97 HIGH LOW OUTST. VALUE EQUITY - ---------------------------- -------- -------- -------- -------- -------- --------- Bandag, Inc. $50.25 $54.13 $45.00 22.8 $ 471.1 $1,144.0 Cooper Tire & Rubber Co. 22.75 28.44 18.00 78.8 801.2 1,791.8 Goodyear Tire & Rubber Co. 59.50 71.25 46.63 156.4 3,540.7 9,305.0 Standard Products Co. 25.25 31.00 21.38 16.8 269.0 425.4 Treadco Inc. 10.88 13.50 8.13 5.1 59.8 55.2 - ------------------------------------------------------------------------------------------ BRAD RAGAN, INC. $33.50 $34.50 $20.00 2.2 $ 47.7 $ 73.4 - ------------------------------------------------------------------------------------------ ENTERPRISE VALUE TO 3-YEAR C.A.G.R. SHARE PRICE/E.P.S.[3] NET ENTERPRISE --------------------- PRICE TO ------------------- --------------------- DEBT [1] VALUE [2] SALES EBITDA EBIT BOOK SALES NET INCOME LTM 1997 1998 ------- --------- ----- ------ ---- ------ ------- ---------- --- ---- ---- Bandaq, Inc ($44.6) $1,099.4 1.4 6.9 8.8 2.4 7.9% NM 15.0 15.2 14.6 Cooper Tire & Rubber Co. 234.1 2,025.8 1.2 6.9 10.0 2.2 7.4% NM 15.1 14.3 12.5 Goodyear Tire & Rubber Co. 1,230.5 10,535.5 0.8 13.5 34.2 2.6 3.3% NM 12.9 12.6 11.4 Standard Products Co. 135.7 561.1 0.5 4.9 9.1 1.6 5.5% 17.1% 10.6 10.3 NA Treadco Inc. 16.1 71.2 0.5 27.2 NM 0.9 1.2% NM NM NM NM BRAND RAGAN $41.1 $114.5 0.5 20.1 33.3 1.5 0.9% NM NM NM NM - ----------------------------------------------------------------------------------------------------------------------------------- MEAN 0.8 13.3 19.1 1.9 4.4% 17.1% 13.4 13.1 12.8 MEDIAN 0.7 10.2 10.0 1.9 4.4% 17.1% 14.0 13.5 12.5 - -----------------------------------------------------------------------------------------------------------------------------------
- ------------------ 1) Net debt equals short-term debt plus long-term, including capitalized lease obligations, minus cash and marketable securities. 2) Enterprise value equals market value of equity plus net debt. 3) P/E ratios are calculated using calendarized earnings data. NA = Not Available NM = Not Meaningful 11
BRAD RAGAN, INC COMPARABLE COMPANIES (RETAIL) ANALYSIS[1] INTERSTATE/JOHNSON LANE ========================================================================================= - ----------------------------------------------------------------------------------------- (in millions, except per share data) LATEST TWELVE MONTHS -------------------------------------------------------------------------------- PRE-TAX INCOME BEF. INCOME AFT. NET INCOME COMPANY TICKER LTM NET SALES EBITDA EBIT INCOME EXTRA. ITEMS EXTRA. ITEMS MARGIN - -------------------------------- ------ ------- --------- -------- -------- --------- ------------ ------------ ------------ Best Buy Co., Inc. BBY 8/97 $7,754.6 $114.0 $45.7 $2.6 $1.6 $1.6 0.0% Circuit City Stores - Group CC 8/97 7,521.7 361.3 251.9 215.5 128.9 128.9 1.7% Dart Group Corp. DARTA 7/97 1,082.2 (1.9) (21.7) (22.0) (17.3) (20.4) NM The Good Guys! Inc. GGUY 6/97 898.5 (14.3) (24.0) (24.7) (15.3) (15.3) NM Quaker State Corp. KSF 6/97 1,212.5 93.5 52.5 24.0 13.3 16.6 1.1% Republic Automotive Parts, Inc. RAUT 6/97 188.2 13.9 9.9 8.2 4.8 4.8 2.6% Service Merchandise Co., Inc. SME 6/97 3,943.2 169.9 110.4 (93.9) (58.9) (58.9) NM Tandy Corp. TAN 9/97 5,716.0 283.1 182.8 (71.5) (47.0) (47.0) NM TBC Corporation TBCC 6/97 651.2 39.0 31.6 28.0 16.9 16.9 2.6% Trak Auto Corp. TRKA 7/97 340.7 5.8 (1.8) (4.3) (2.4) (2.4) NM EARNINGS PER SHARE [2] ------------------------------------------------------ FISCAL YEAR CALENDAR YEAR ----------------- -------------------------- COMPANY LTM 1997 1998 1996 1997 1998 - ------------------------------- --------- -------- -------- -------- -------- -------- Best Buy Co., Inc. $0.04 $0.04 $0.87 $0.31 $0.60 $1.03 Circuit City Stores - Group 1.30 1.38 1.24 1.52 1.27 1.44 Dart Group Corp. (8.88) (8.73) 1.75 (7.88) NA NA The Good Guys! Inc. (1.12) (0.70) (0.33) (0.63) (0.63) NA Quaker State Corp. 0.33 0.84 1.04 0.67 0.84 1.04 Republic Automotive Parts, Inc. 1.20 1.25 1.55 1.42 1.25 1.55 Service Merchandise Co., Inc. (0.69) 0.34 0.51 0.39 0.34 0.51 Tandy Corp. (0.41) 1.77 2.10 1.10 1.77 2.10 TBC Corporation 0.77 0.84 0.96 0.71 0.84 0.96 Trak Auto Corp. (0.41) 0.18 NA 1.23 NA NA
- ---------------------------------------------- [1] For certain income statement and/or balance sheet items where the most recent quarterly information was not available, the prior quarter amounts were used. [2] E.P.S. data represent primary E.P.S. before extraordinary items and discontinued operations. E.P.S. estimates obtained from First Call or IBES, Inc. [3] P.S.= Earnings per Share FY = Fiscal Year N/A = Not Available NM = Not Meaningful 12
BRAD RAGAN, INC COMPARABLE COMPANIES (RETAIL) ANALYSIS INTERSTATE/JOHNSON LANE ========================================================================================= - ----------------------------------------------------------------------------------------- (in millions, except per share data) SHARE 52 WEEK MARKET PRICE ------------------ SHARES BOOK VALUE OF COMPANY 11/12/97 HIGH LOW OUTST. VALUE EQUITY - ------------------------------- ---------- --------- -------- -------- ---------- ----------- Best Buy Co., Inc. $28.63 $30.00 $7.88 43.8 $446.8 $ 1,254 Circuit City Stores - Group 35.75 45.50 28.63 98.7 1,566.4 3,526.8 Dart Group Corp. 110.50 118.00 84.00 2.1 114.0 230.9 The Good Guys! Inc. 6.44 9.00 5.00 13.6 123.9 87.7 Quaker State Corp. 15.13 17.50 13.38 35.1 314.7 531.2 Republic Automotive Parts, Inc. 14.75 18.00 14.00 3.4 50.3 50.1 Service Merchandise Co., Inc. 3.81 6.50 2.63 99.8 302.9 380.5 Tandy Corp. 42.50 43.19 19.81 104.2 1,047.1 4,428.5 TBC Corporation 9.75 11.00 6.38 23.5 125.7 228.8 Trak Auto Corp. 12.25 17.25 9.00 5.9 81.8 72.4 ENTERPRISE VALUE TO 3-YEAR C.A.G.R. SHARE PRICE/E.P.S. [3] NET ENTERPRISE ---------------------- PRICE TO ----------------- ----------------------- COMPANY DEBT [1] VALUE [2] SALES EBITDA EBIT BOOK SALES NET INCOME LTM 1997 1998 - ------------------------------- -------- ---------- ----- ------ ------- -------- ----- ---------- --- -------- ------- Best Buy Co., Inc. $196.7 $1,450.9 0.2 12.7 31.7 2.8 37.2% NM NM 47.71 27.79 Circuit City Stores - Group 494.4 4,021.2 0.5 11.1 16.0 2.3 20.1% 1.1% 27.5 28.15 24.83 Dart Group Corp. 133.0 363.9 0.3 NM NM 2.0 NM NA NM NM 48.0 The Good Guys! Inc. (12.7) 75.0 0.1 NM NM 0.7 18.8% NA NM NM NA Quaker State Corp. 438.9 970.1 0.8 10.4 18.5 1.7 16.5% 0.1% 45.8 18.01 14.54 Republic Automotive Parts, Inc. 32.6 82.7 0.4 5.9 8.3 1.0 26.3% 39.9% 12.3 11.80 9.52 Service Merchandise Co., Inc. 664.8 1,045.3 0.3 6.2 9.5 1.3 1.2% NM NM 11.21 7.48 Tandy Corp. 618.8 5,047.3 0.9 17.8 27.6 4.2 14.7% NM NM 24.01 20.24 TBC Corporation 103.5 332.3 0.5 8.5 10.5 1.8 2.1% NM 12.7 11.61 10.16 Trak Auto Corp. 9.2 81.6 0.2 14.1 NM 0.9 1.1% 137.4% NM NA NA - ---------------------------------------------------------------------------------------------------------------------------------- MEAN 0.5 10.8 17.4 1.9 14.6% 44.6% 24.6 21.8 20.3 MEDIAN 0.4 10.8 16.0 1.8 14.7% 20.5% 20.1 18.0 17.4 - ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------- [1] Net debt equals short-term debt plus long-term, including capitalized lease obligations, minus cash and marketable securities. [2] Enterprise value equals market value of equity plus net debt. [3] P/E ratios are calculated using calendarized earnings data. N/A = Not Available NM = Not Meaningful 13 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC. ANALYSIS OF COMPARABLE MERGERS AND ACQUISITIONS ($ MILLIONS)
DATE TRANSACTION ENTERPRISE EFFECTIVE TARGET NAME ACQUIROR NAME VALUE VALUE - ------------ ------------------------- ----------------------------- ----------- ---------- 12/3/92 American Consolidated Inds. Dynatronics Laser Corp. $ 1.1 na 8/31/93 Trans World Tire Corp. Treadco Inc. 12.0 na 11/12/93 Dyneer Corp. Titan Wheel International Inc. 95.8 $82.5 9/9/96 Tube Forming Inc. Wolverine Tube Inc. 34.3 na 11/18/96 Bradley Enterprises Inc. TJT Inc. 5.7 na 5/6/97 Pritt Tire & Axle Inc. Shoals Supply Inc. 4.5 na DATE EQUITY OFFERING LTM LTM LTM OPER. LTM NET EFFECTIVE VALUE PRICE / BOOK NET SALES CASH FLOW INC. INCOME - --------- ------ ------------- --------- --------- --------- --------- 12/3/92 na na na na na na 8/31/93 na 4.8x $ 24.3 $0.5 $0.8 $0.2 11/12/93 $22.8 7.3 143.0 10.4 18.3 (0.4) 9/9/96 na na na na na na 11/18/96 na na 12.0 na na na 5/6/07 na na na na na na
- ------------------------------------ na = not available nm = not meaningful 14 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC. ANALYSIS OF COMPARABLE MERGERS AND ACQUISITIONS ($ MILLIONS)
ENTERPRISE VALUE TO LTM --------------------------------------------- DATE EQUITY VALUE/ EFFECTIVE TARGET NAME ACQUIROR NAME NET SALES OPERATING INC. CASH FLOW NET INCOME NET INCOME - --------- --------------------------- ------------------------------ --------- ------------- --------- ---------- ---------- 12/3/92 American Consolidated Inds. Dynatronics Laser Corp. na na na na na 8/31/93 Trans World Tire Corp. Treadco Inc. na na na na na 11/12/93 Dyneer Corp. Titan Wheel International Inc. 0.6x 7.9x 4.5x nm nm 9/9/96 Tube Forming Inc. Wolverine Tube Inc. na na na na na 11/18/96 Bradley Enterprises Inc. TJT Inc. na na na na na 5/6/97 Pritt Tire & Axle Inc. Shoals Supply Inc. na na na na na
- -------------------------------------- na = not available nm = not meaningful 15 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC. DISCOUNTED CASH FLOW ANALYSIS ($ IN THOUSANDS)
Year Ending December 31, --------------------------------------------------- 1998E 1999E 2000E 2001E 2002E ------- ------- ------- ------- ------- EBIT [1] [2] $ 5,241 $ 6,038 $ 6,488 $ 7,000 $ 7,500 Less: Income Taxes at 38% (1,992) (2,294) (2,465) (2,660) (2,850) ------- ------- ------- ------- ------- Unleveraged After-Tax Income 3,249 3,744 4,023 4,340 4,650 Plus: Depreciation and Amortization [2] 2,553 3,071 3,729 4,000 4,300 Less: Increase in Working Capital [2] (1,883) (2,568) (2,264) (2,000) (1,500) Less: Capital Expenditures [2] (4,500) (4,900) (5,000) (5,500) (6,000) ------- ------- ------- ------- ------- Free Cash Flow $ (581) $ (653) $ 488 $ 840 $ 1,450 ======= ======= ======= ======= =======
Equity Value of BR based on different EBIT Multiples and Discount Rates [3] ---------------------------------------------------- Multiple applied to Year 2002E EBIT ---------------------------------------------------- 10 11 12 13 14 ------- ------- ------- ------- -------- 10% $ 6,236 $10,893 $15,549 $20,206 $ 24,863 11% $ 4,120 $ 8,571 $13,022 $17,472 $ 21,923 Discount Rate 12% $ 2,115 $ 6,371 $10,627 $14,882 $ 19,138 13% $ 216 $ 4,286 $ 8,357 $12,428 $ 16,498 14% $(1,586) $ 2,309 $ 6,205 $10,100 $ 13,995 Aggregate Value in 2002 based on Multiple of EBIT $75,000 $82,500 $90,000 $97,500 $105,000
- ---------------------------------- [1] Earnings before interest and taxes. [2] Based on estimates from management. [3] After subtracting total net debt of $41.1 million. 16 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC. CAPITALIZATION OF EARNINGS ($ IN THOUSANDS, EXCEPT PER SHARE DATA)
ADJUSTED WEIGHTING WEIGHTED FISCAL YEAR NET INCOME FACTOR INCOME - ------------------ -------------- ------------ ----------- 1997E $985 0.333 $328 1996 [1] 717 0.267 191 1995 1,356 0.200 271 1994 3,836 0.133 510 1993 2,814 0.067 189 ------- AVERAGE EARNINGS LEVEL $ 1,489 CAPITALIZED EARNINGS AT 12.6% $11,820 VALUE PER SHARE $ 5.40
- ------------------------------- [1] Calculation does not include non-recurring litigation and settlement costs of $5.8 million. 17 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC. VALUATION CONCLUSIONS ($ IN MILLIONS)
Valuation Equity Methodology Valuation - ---------------------------------- ------------------ Comparable Public Companies $ 50.1 Comparable Mergers & Acquisitions NM Discounted Cash Flow 10.6 Capitalization of Earnings 11.8
18 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC. Premiums Paid Analysis for Minority Interest (11/13/95 to 11/13/97)
% Premium of Offer Owned Price to Stock Price % of After Value of Prior to Announcement Date Date Date Shares Trans- Transaction ---------------------------- Effective Announced Target Name Acquiror Name Acq. action ($ mil) 1 day 1 week 4 weeks - --------- --------- ----------------------------- ------------------------- ------- ------ ----------- ------ ------ ------- 11/10/95 11/13/95 Conner Peripherals Inc Investor Group 5.2% 5.2% $57.0 21.8% 19.8% 17.9% 11/14/95 11/15/95 Rouse Co Algemeen Burgerlijk 3.5 9.1 37.0 21.6 21.4 21.4 11/21/95 Transworld Home HealthCare Inc Hyperion Partners LP - - 39.6 12.5 11.0 8.8 11/28/95 12/04/95 Magma Copper Co Investor Group 4.6 9.8 43.0 27.6 20.3 17.4 12/08/95 12/08/95 Brunswick Corp Brunswick Master Pension Trust 1.9 1.9 40.0 21.5 21.3 20.1 12/08/95 12/11/95 Broderbund Software Inc Investor 5.0 5.0 60.3 58.0 62.1 64.5 12/14/95 12/19/95 ASARCO Inc Investor 3.4 8.6 49.8 31.0 34.8 33.5 12/19/95 12/20/95 Times Mirror Co Investor Group 2.7 7.3 74.4 33.9 33.8 30.8 12/22/95 Charter Medical Corp Investor Group - - 69.7 19.5 19.4 18.4 12/26/95 12/26/95 Magma Copper Co Investor Group 8.4 8.4 107.9 27.8 27.9 19.6 01/10/96 Fansteel Inc Investor Group - - 40.7 6.9 6.8 6.8 01/11/96 Zurich Reinsurance Centre Investor Group - 57.2 62.3 30.1 30.3 29.3 03/08/96 01/15/96 Mycogen Corp Dow Chem, Eli Lilly 31.3 31.3 126.0 16.0 14.3 13.9 12/20/95 01/17/96 Avant! Corp Investor Group 19.9 35.8 133.1 14.3 15.8 16.3 01/17/96 01/17/96 Dial Corp Heine Securities Corp 7.0 8.8 210.9 31.1 28.0 29.1 11/10/95 01/17/96 Premisys Communications Inc Investor Group 1.2 8.6 25.4 40.5 41.5 48.9 12/29/95 01/18/96 PSINet Inc Investor Group 7.9 8.0 68.5 15.8 17.1 22.6 02/15/96 01/23/96 Kelley Oil & Gas Corp Contour Production Co 49.8 49.8 48.0 1.1 1.1 1.2 01/25/96 01/25/96 Magellan Health Services Inc Rainwater-Magellan Holding LP 12.2 12.2 69.7 21.8 22.4 24.0 01/26/96 01/26/96 Sotheby's Holdings Inc Investor Group 4.6 7.7 26.0 13.6 13.5 14.3 03/08/96 02/01/96 DeKalb Genetics Corp Monsanto Co 8.1 8.1 28.7 59.3 63.8 48.0 03/07/96 02/07/96 DeKalb Genetics Corp Monsanto Co 30.4 38.5 122.4 59.3 63.8 48.0 02/07/96 02/08/96 COMSAT Corp Investor 7.2 7.2 72.0 21.5 18.8 18.3
19 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC. Premiums Paid Analysis for Minority Interest (11/13/95 to 11/13/97)
% Premium of Offer Owned Price to Stock Price % of After Value of Prior to Announcement Date Date Date Shares Trans- Transaction ---------------------------- Effective Announced Target Name Acquiror Name Acq. action ($ mil) 1 day 1 week 4 weeks - --------- --------- ----------------------------- ------------------------- ------- ------ ----------- ------ ------ ------- 02/20/96 Ampal-American Israel Corp Investor Group - - 54.4 6.5 6.6 5.6 04/04/96 02/29/96 Sithe Energies (Cie Generale) Marubeni Corp 29.5 29.5 195.5 5.9 6.3 6.6 02/29/96 03/04/96 Helene Curtis Industries Inc Investor Group 6.4 6.4 30.8 69.6 69.8 51.0 02/27/96 03/07/96 Premisys Communications Inc Investor Group 2.6 12.3 28.7 33.8 32.8 52.0 03/01/96 03/12/96 Gymboree Corp Investor Group 5.4 5.4 35.2 26.7 28.4 22.1 03/25/96 03/25/96 Storage USA Inc Security Capital US Realty 11.1 11.1 61.0 34.8 34.3 31.6 04/26/96 03/29/96 Great American Mgmt & Invt Inc Equity Holdings, Chicago,IL 15.6 100.0 63.3 48.8 48.0 48.3 03/29/96 Hayes Wheels International Inc Investor Group - - 200.0 24.8 24.0 22.4 03/22/96 04/02/96 Sun Healthcare Group Inc Boatmen's Trust 6.2 6.2 37.7 13.3 13.5 12.0 04/29/96 Provident Cos Zurich Versicherungs GmbH - - 299.9 31.0 29.3 32.1 05/01/96 05/01/96 Cellular Communications Inc Investor Group 5.1 14.7 51.5 52.4 52.0 51.1 05/02/96 05/02/96 Equity Corp International Service Corp International 11.2 41.7 36.6 28.5 27.0 29.0 04/02/96 05/03/96 Rayonier Inc Archer-Daniels-Midland Co 2.7 7.2 28.9 36.3 36.3 36.3 05/06/96 05/06/96 Stop & Shop Cos Investor Group 5.1 5.1 84.2 32.9 33.0 33.0 05/01/96 05/07/96 Boise Cascade Corp Investor Group 1.3 1.3 29.8 46.0 46.5 41.3 06/07/96 05/22/96 Ampal-American Israel Corp Rebar Financial Corp 28.1 28.1 45.0 5.3 5.9 5.5 05/13/96 05/23/96 WMX Technologies Inc Investor Group 3.0 5.1 517.5 35.1 35.8 33.5 02/16/97 05/27/96 SyStemix Inc (Novartis AG) Novartis AG 26.8 100.0 107.6 18.6 11.5 12.3 05/23/96 05/29/96 Valassis Communications Inc Investor 5.1 5.1 37.9 17.1 17.0 15.8 05/22/96 05/30/96 Federal Realty Investment Tr Stichting Pensioen funds ABP 5.4 7.5 40.0 21.0 21.3 21.6 05/20/96 05/30/96 Rowan Cos Investor Group 2.7 5.2 36.5 15.4 16.3 13.6 06/01/97 06/12/96 Regency Realty Corporation Security Capital US Realty 43.3 43.3 132.2 19.1 19.4 18.5 06/12/96 06/14/96 Cablevision Systems Corp Gabelli Funds Inc 7.6 17.7 107.7 47.4 45.3 51.3
20 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC. Premiums Paid Analysis for Minority Interest (11/13/95 to 11/13/97)
% Premium of Offer Owned Price to Stock Price % of After Value of Prior to Announcement Date Date Date Shares Trans- Transaction ---------------------------- Effective Announced Target Name Acquiror Name Acq. action ($ mil) 1 day 1 week 4 weeks - --------- --------- ----------------------------- ------------------------- ------- ------ ----------- ------ ------ ------- 06/17/96 06/19/96 Manor Care Inc Investor 1.1 6.9 28.3 38.1 39.0 39.8 06/12/96 06/20/96 Arbor Software Corp Investor Group 4.5 7.1 32.1 58.6 59.5 62.3 06/20/96 06/25/96 Community Health Systems Inc Investor Group 8.6 8.6 87.8 51.8 51.8 42.4 09/05/97 07/03/96 Golden Poultry Co Inc Gold Kist Inc 25.0 100.0 52.1 9.4 9.5 10.3 06/28/96 07/08/96 PetSmart Inc Fourcar BV (Carrefour SA) 1.3 6.7 31.3 45.9 47.6 45.0 07/08/96 07/08/96 Storage USA Inc Security Capital US Realty 7.8 29.2 60.0 31.8 31.6 31.3 07/24/96 07/26/96 CarrAmerica Realty Corp Security Capital US Realty 9.0 42.5 70.1 22.5 22.5 24.0 08/06/96 Giant Food Inc J Sainsbury PLC - 16.3 62.0 34.1 34.3 35.9 09/17/96 08/08/96 Roto-Rooter Inc (Chemed Corp) Chemed Corp 45.1 94.5 93.6 36.5 36.5 36.9 12/31/96 08/26/96 Bankers Life Holding (Conseco) Conseco Inc 11.5 100.0 120.8 21.8 22.6 22.4 08/27/96 Robertson-Ceco Corp Investor Group - 6.2 28.0 6.5 6.6 5.1 09/23/96 09/09/96 Crocker Realty Trust Inc Highwoods Properties Inc 26.5 100.0 76.1 10.0 9.9 9.8 12/31/96 09/13/96 Western National Corp American General Corp - 51.7 130.8 18.3 18.0 18.6 01/24/97 09/26/96 General Physics Corp National Patent Development 48.0 100.0 26.1 4.4 3.9 3.8 01/13/97 09/27/96 Q-Zar Inc Investor - - 34.1 4.4 4.4 4.5 09/30/96 10/04/96 TCSI Corp Investor Group 12.7 23.2 61.7 12.1 12.3 20.0 11/27/96 10/10/96 WCI Steel Inc (Renco Group Inc) Renco Group Inc 15.5 100.0 56.5 8.5 7.8 5.6 10/15/96 10/17/96 PetroCorp Inc Kaiser-Francis Oil Co (GBK) 43.7 48.0 30.7 8.9 8.4 8.9 02/04/97 10/23/96 Conrail Inc Norfolk Southern Corp 9.0 9.0 943.0 71.0 71.8 71.8 10/14/96 10/25/96 RJR Nabisco Holdings Corp Investor Group 1.5 7.3 111.7 28.6 26.5 26.1 10/21/96 11/05/96 Martin Marietta Materials Inc Investor Group 4.7 5.8 50.7 22.9 24.4 22.8 11/04/96 11/12/96 Salomon Inc Investor Group 1.3 5.2 60.1 46.0 45.4 47.8 11/15/96 11/15/96 Thrifty Payless Holdings Inc Investor Group 4.2 5.9 54.6 23.0 22.9 21.3
21 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC. Premiums Paid Analysis for Minority Interest (11/13/95 to 11/13/97)
% Premium of Offer Owned Price to Stock Price % of After Value o Prior to Announcement Date Date Date Shares Trans- Transaction ---------------------------- Effective Announced Target Name Acquiror Name Acq. action ($ mil) 1 day 1 week 4 weeks - --------- --------- ----------------------------- ------------------------- ------- ------ ----------- ------ ------ ------- 11/20/96 Toy Biz Inc Andrews Group Inc - 64.7 208.2 17.4 17.9 18.8 03/27/97 11/27/96 Central Tractor Farm & Country JW Childs Equity Partners LP 38.8 100.0 56.7 12.1 12.1 12.0 11/27/96 11/27/96 Graham-Field Health Products BIL (Far East Holdings) Ltd 11.7 11.9 25.0 8.3 7.9 7.0 11/21/96 12/02/96 Sybase Inc Investor Group 1.8 5.2 26.2 17.6 17.9 16.9 12/02/96 12/03/96 American Radio Systems Corp Investor 6.9 12.6 37.2 26.5 27.8 26.3 03/18/97 12/06/96 MaxServ Inc (Sears Roebuck) Sears Roebuck & Co 47.6 90.7 46.0 6.5 4.6 5.0 02/07/97 12/19/96 HealthPlan Services Corp Automatic Data Processing Inc 8.9 26.1 26.4 20.9 19.3 19.3 01/08/97 01/09/97 Hutchinson Technology Inc Investor Group 6.7 6.7 29.0 78.0 77.5 74.0 01/08/97 01/09/97 USFreightways Corp Investor Group 5.9 6.1 36.6 26.9 27.4 25.9 01/07/97 01/10/97 Applied Magnetics Corp Investor Group 6.4 6.4 48.4 35.0 30.8 29.4 09/02/97 01/13/97 Zurich Reinsurance Centre Zurich Versicherungs GmbH 34.0 100.0 319.0 30.8 30.4 32.3 01/15/97 Danielson Holding Corp Progressive Corp - - 72.6 5.8 5.0 5.0 01/16/97 01/20/97 Dress Barn Investor Group 7.2 7.3 26.1 16.0 15.5 14.9 07/09/97 01/21/97 Mafco Consolidated Grp (Mafco) Mafco Holdings Inc 15.0 100.0 116.8 27.1 27.1 26.3 01/24/97 01/27/97 Converse Inc Investor 8.9 8.9 26.4 15.8 15.1 15.6 05/21/97 01/28/97 Calgene Inc (Monsanto Co) Monsanto Co 43.7 100.0 242.6 4.9 5.0 5.0 01/30/97 01/30/97 Dow Jones & Co Inc Investor Group 4.1 4.1 165.0 38.8 35.5 34.3 02/21/97 02/10/97 Aurum Software Inc Investor Group 8.2 8.2 26.7 22.4 24.6 23.1 02/11/97 02/12/97 Extended Stay America Inc Investor Group 5.4 5.4 167.4 19.4 18.1 18.8 02/18/97 Contour Medical (Retirement) Sun Healthcare Group Inc - - 55.2 7.0 5.8 5.4 02/20/97 NHP Inc Apartment Investment & Mgmt - - 114.5 15.4 15.8 16.9 02/25/97 Fina Inc Petrofina SA - 85.3 257.0 50.1 50.6 49.4 03/06/97 Westinghouse Air Brake Co Investor Group - - 66.0 12.6 13.0 12.4
22 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC. Premiums Paid Analysis for Minority Interest (11/13/95 to 11/13/97)
% Owned Premium of Offer % of After Value of Price to Stock Price Date Date Shares Trans- Transaction Prior to Announcement Date Effective Announced Target Name Acquiror Name Acq. action ($ mil) 1 day 1 week 4 weeks - --------- --------- ----------------------------- ------------------------- ------- ------ ----------- ------ ------ ------- 03/12/97 03/13/97 McDermott International Inc Investor Group 4.7 6.8 58.8 22.0 22.5 20.4 03/27/97 03/27/97 Storage USA Inc Security Capital US Realty 3.1 37.0 32.0 37.9 38.5 37.1 03/27/97 04/09/97 Production Operators Corp Investor Group - 5.3 30.7 55.0 56.0 53.0 04/10/97 Transworld Home HealthCare Inc Investor Group - - 52.8 10.2 10.3 10.5 04/09/97 04/11/97 Liposome Co Inc Investor Group 8.9 8.9 76.8 20.3 20.1 24.1 04/16/97 Steck-Vaughn Publishing Corp Harcourt General Inc - 78.5 40.3 12.1 11.1 11.9 04/22/97 04/22/97 Enhance Financial Svcs Grp Swiss Reinsurance Co 3.9 9.3 27.3 38.1 38.1 38.6 04/23/97 04/23/97 Vail Resorts Inc Investor 10.2 10.2 75.1 18.5 19.3 20.4 05/05/97 Florida East Coast Inds Inc St Joe Paper Co - 54.0 428.4 88.8 87.5 93.0 05/14/97 Enron Global Power & Pipelines Enron Corp - 50.6 443.5 30.3 29.8 28.3 05/16/97 Chelsea GCA Realty Inc Simon DeBartolo Group Inc - - 50.1 34.5 35.1 36.6 05/16/97 Riviera Holdings Corp R&E Gaming Corp - - 205.4 12.8 12.9 13.9 05/22/97 Chaparral Steel Co Texas Industries Inc - 81.3 72.8 12.9 12.4 12.0 07/15/97 06/02/97 Acordia Inc(Anthem Inc) Anthem Inc 33.2 100.0 193.2 35.5 35.9 31.8 06/03/97 Faulding Inc(FH Faulding & Co) FH Faulding & Co Ltd - - 77.3 10.8 11.0 9.3 06/03/97 Alexander Haagen Properties Lazard Freres & Co - - 235.0 15.1 13.5 14.5 06/30/97 06/11/97 Excite Inc Intuit Inc 23.6 23.5 39.2 13.1 10.3 9.0 06/13/97 Bally's Grand Inc Hilton Hotels Corp - 93.1 42.6 41.3 40.6 40.3 07/15/97 New York State Electric & Gas CE Electric(NY) Inc - 0.4 160.3 21.4 21.6 21.5 08/04/97 08/06/97 Redwood Trust Inc Zweig-DiMenna Associated LLC 6.7 6.7 52.1 41.9 44.4 47.2 08/07/97 08/07/97 Apple Computer Inc Grupo Carso SA de CV 3.0 3.0 60.7 26.3 17.5 13.3 08/20/97 General Cable Corp Undisclosed Acquiror - - 134.9 32.1 30.1 27.3 08/29/97 09/03/97 Gaylord Entertainment Company Investor Group - 3.1 70.1 23.2 23.3 23.0
23 (LOGO) INVESTMENT BANKING GROUP INTERSTATE/JOHNSON LANE CORPORATION - ------------------------------------------------------------------------------- BRAD RAGAN, INC. Premiums Paid Analysis for Minority Interest (11/13/95 to 11/13/97)
% Owned Premium of Offer % of After Value of Price to Stock Price Date Date Shares Trans- Transaction Prior to Announcement Date Effective Announced Target Name Acquiror Name Acq. action ($ mil) 1 day 1 week 4 weeks - --------- --------- ----------------------------- ------------------------- ------- ------ ----------- ------ ------ ------- 09/11/97 BET Holdings Inc Investor Group - 61.2 288.0 41.0 39.8 39.8 09/18/97 Guaranty National Corp Orion Capital Corp - 77.3 117.2 32.5 29.1 28.2 10/13/97 10/13/97 Metricom Inc Vulcan Ventures Inc 25.4 48.7 56.0 12.9 12.5 5.9 10/20/97 Ticketmaster Group Inc HSN Inc - 44.6 340.8 22.5 23.1 19.0 10/21/97 BRE Properties Inc PRISA II(Prudential Real Est) - - 100.0 28.1 27.8 27.3 11/04/97 D&E Communications Inc Citizens Utilities Co - - 32.5 16.7 17.0 18.0 11/10/97 11/10/97 AmeriCredit Corp Investor Group - 6.0 30.6 28.2 29.9 32.9 --------------------------------------------------------------------------------- Mean All 13.0% 31.5% $99.4 26.6% 26.4% 25.7% Median All 7.4 10.0 60.1 22.5 22.6 22.3 --------------------------------------------------------------------------------- --------------------------------------------------------------------------------- Mean - 100% Owned After Deal 19.3 18.6 18.3% MEDIAN - 100% OWNED AFTER DEAL 12.1 11.5 12.0 -------------------------------------------------------------------------------
24 (LOGO) INVESTMENT BANKING GROUP Interstate/Johnson Lane Corporation - -------------------------------------------------------------------------------- BRAD RAGAN, INC. - SECURITY PRICE HISTORY NOVEMBER 12, 1992 TO NOVEMBER 12, 1997
DATE VOLUME (IN THOUSANDS) CLOSE HIGH LOW - --------------------- ----------------------- -------------------- -------------------- -------------------- 12-Nov-97 1000 $33.50 $33.50 $33.50 11-Nov-97 300 33.75 33.75 33.75 10-Nov-97 0 34.00 34.88 33.13 07-Nov-97 0 33.50 34.88 32.13 06-Nov-97 0 33.50 34.88 32.13 05-Nov-97 0 33.50 34.88 32.13 04-Nov-97 0 33.50 34.88 32.13 03-Nov-97 0 33.50 34.88 32.13 31-Oct-97 0 34.25 34.88 33.63 30-Oct-97 0 34.00 34.88 33.13 29-Oct-97 0 34.38 34.88 33.88 28-Oct-97 0 33.50 34.88 32.13 27-Oct-97 1000 33.50 33.50 33.50 24-Oct-97 2000 33.50 34.50 33.50 23-Oct-97 0 30.00 31.38 28.63 22-Oct-97 100 30.00 30.00 30.00 21-Oct-97 0 31.00 32.38 29.63 20-Oct-97 0 31.00 32.38 29.63 17-Oct-97 0 31.00 32.38 29.63 16-Oct-97 0 31.00 32.38 29.63 15-Oct-97 0 31.00 32.38 29.63 14-Oct-97 0 31.00 32.38 29.63 13-Oct-97 0 31.00 32.38 29.63 10-Oct-97 0 31.00 32.38 29.63 09-Oct-97 0 31.00 32.38 29.63 08-Oct-97 0 31.00 32.38 29.63 07-Oct-97 0 31.00 32.38 29.63 06-Oct-97 1300 31.00 31.00 31.00
- -------------------------------------------------------------------------------- Investment Banking Services Since 1932 25 03-Oct-97 0 30.00 31.38 28.63 02-Oct-97 2000 30.00 30.00 30.00 01-Oct-97 0 29.00 30.38 27.63 30-Sep-97 0 29.00 30.38 27.63 29-Sep-97 0 29.00 30.38 27.63 26-Sep-97 0 29.00 30.38 27.63 25-Sep-97 0 29.00 30.38 27.63 24-Sep-97 1500 29.00 29.00 29.00 23-Sep-97 0 29.00 30.38 27.63 22-Sep-97 500 29.00 29.00 29.00 19-Sep-97 0 29.00 30.38 27.63 18-Sep-97 0 29.00 30.38 27.63 17-Sep-97 0 29.00 30.38 27.63 16-Sep-97 0 29.00 30.38 27.63 15-Sep-97 0 29.00 30.38 27.63 12-Sep-97 0 29.00 30.38 27.63 11-Sep-97 0 29.00 30.38 27.63 10-Sep-97 0 29.00 30.38 27.63 09-Sep-97 0 29.00 30.38 27.63 08-Sep-97 2000 29.00 29.00 28.00 05-Sep-97 500 28.25 28.25 28.00 04-Sep-97 0 27.50 28.88 26.13 03-Sep-97 0 27.50 28.88 26.13 02-Sep-97 0 27.50 28.88 26.13 29-Aug-97 500 27.50 27.50 27.50 28-Aug-97 0 28.13 29.13 27.13 27-Aug-97 0 28.13 29.13 27.13 26-Aug-97 0 28.13 29.13 27.13 25-Aug-97 0 27.75 29.13 26.38 22-Aug-97 0 27.75 29.13 26.38 21-Aug-97 0 27.75 29.13 26.38 20-Aug-97 0 27.75 29.13 26.38 19-Aug-97 0 27.75 29.13 26.38 18-Aug-97 0 27.75 29.13 26.38 15-Aug-97 0 27.75 29.13 26.38
26 14-Aug-97 0 27.75 29.13 26.38 13-Aug-97 0 27.75 29.13 26.38 12-Aug-97 0 27.88 29.25 26.50 11-Aug-97 0 27.75 29.13 26.38 08-Aug-97 0 27.75 29.13 26.38 07-Aug-97 0 27.81 29.25 26.38 06-Aug-97 0 27.75 29.13 26.38 05-Aug-97 0 27.75 29.13 26.38 04-Aug-97 0 27.75 29.13 26.38 01-Aug-97 0 28.38 29.38 27.38 31-Jul-97 0 28.38 29.13 27.63 30-Jul-97 0 28.38 29.13 27.63 29-Jul-97 0 28.38 29.13 27.63 28-Jul-97 0 28.13 29.13 27.13 25-Jul-97 0 27.75 29.13 26.38 24-Jul-97 0 27.75 29.13 26.38 23-Jul-97 500 27.75 27.75 27.75 22-Jul-97 0 28.69 29.63 27.75 21-Jul-97 0 28.38 29.63 27.13 18-Jul-97 0 28.38 29.63 27.13 17-Jul-97 200 28.25 28.25 27.75 16-Jul-97 300 26.75 26.75 26.75 15-Jul-97 0 26.75 27.63 25.88 14-Jul-97 0 26.50 27.63 25.38 11-Jul-97 0 26.50 27.63 25.38 10-Jul-97 0 26.25 27.13 25.38 09-Jul-97 300 26.25 26.25 26.25 08-Jul-97 0 26.00 26.63 25.38 07-Jul-97 500 25.75 25.75 25.75 03-Jul-97 500 25.25 25.25 25.25 02-Jul-97 5000 25.00 25.00 24.00 01-Jul-97 1000 23.63 23.63 23.63 30-Jun-97 36000 23.63 23.63 20.50 27-Jun-97 24400 20.50 21.00 20.00 26-Jun-97 8100 20.00 21.00 20.00
27 25-Jun-97 0 19.88 22.13 17.63 24-Jun-97 0 21.25 22.13 20.38 23-Jun-97 0 21.25 22.13 20.38 20-Jun-97 100 21.25 21.25 21.25 19-Jun-97 0 21.75 22.63 20.88 18-Jun-97 200 21.75 22.25 21.75 17-Jun-97 1000 22.75 22.75 22.75 16-Jun-97 0 23.00 23.88 22.13 13-Jun-97 0 22.88 23.63 22.13 12-Jun-97 0 23.00 23.88 22.13 11-Jun-97 1000 23.00 23.00 23.00 10-Jun-97 0 23.00 23.88 22.13 09-Jun-97 0 23.00 23.88 22.13 06-Jun-97 300 23.00 23.00 23.00 05-Jun-97 0 23.25 23.88 22.63 04-Jun-97 0 23.50 24.38 22.63 03-Jun-97 0 23.50 24.38 22.63 02-Jun-97 0 23.50 24.38 22.63 30-May-97 0 23.63 24.38 22.88 29-May-97 0 23.63 24.38 22.88 28-May-97 3000 23.50 23.50 23.50 27-May-97 3300 23.75 25.38 23.63 23-May-97 0 25.75 26.50 25.00 22-May-97 1200 25.88 25.88 25.88 21-May-97 0 25.81 26.50 25.13 20-May-97 0 25.75 26.50 25.00 19-May-97 200 25.75 25.75 25.75 16-May-97 0 25.94 26.50 25.38 15-May-97 0 25.94 26.50 25.38 14-May-97 0 25.94 26.50 25.38 13-May-97 0 25.94 26.50 25.38 12-May-97 0 25.94 26.50 25.38 09-May-97 0 25.94 26.50 25.38 08-May-97 0 25.88 26.50 25.25 07-May-97 0 25.88 26.50 25.25
28 06-May-97 0 26.00 26.63 25.38 05-May-97 0 26.00 26.63 25.38 02-May-97 0 26.00 26.63 25.38 01-May-97 0 25.94 26.50 25.38 30-Apr-97 0 26.13 27.00 25.25 29-Apr-97 0 25.88 26.50 25.25 28-Apr-97 0 26.00 26.50 25.50 25-Apr-97 0 25.88 26.50 25.25 24-Apr-97 0 25.88 26.50 25.25 23-Apr-97 0 25.94 26.50 25.38 22-Apr-97 0 25.94 26.50 25.38 21-Apr-97 0 25.94 26.50 25.38 18-Apr-97 0 25.88 26.50 25.25 17-Apr-97 0 25.88 26.50 25.25 16-Apr-97 0 25.94 26.50 25.38 15-Apr-97 0 25.94 26.50 25.38 14-Apr-97 0 25.88 26.50 25.25 11-Apr-97 0 26.06 27.00 25.13 10-Apr-97 0 26.06 26.88 25.25 09-Apr-97 0 26.00 26.88 25.13 08-Apr-97 0 26.13 26.88 25.38 07-Apr-97 0 26.06 26.88 25.25 04-Apr-97 1900 26.13 26.50 25.50 03-Apr-97 0 27.00 27.88 26.13 02-Apr-97 600 27.00 27.50 27.00 01-Apr-97 0 27.31 28.00 26.63 31-Mar-97 0 27.50 28.00 27.00 27-Mar-97 0 27.31 28.00 26.63 26-Mar-97 0 27.38 28.13 26.63 25-Mar-97 0 27.50 28.00 27.00 24-Mar-97 0 27.50 28.00 27.00 21-Mar-97 100 27.50 27.50 27.50 20-Mar-97 0 28.00 28.50 27.50 19-Mar-97 0 28.00 28.50 27.50 18-Mar-97 400 28.00 28.00 28.00
29 17-Mar-97 0 28.00 28.50 27.50 14-Mar-97 0 28.00 28.50 27.50 13-Mar-97 0 28.00 28.50 27.50 12-Mar-97 0 28.00 28.50 27.50 11-Mar-97 0 28.00 28.50 27.50 10-Mar-97 0 28.00 28.50 27.50 07-Mar-97 0 28.00 28.50 27.50 06-Mar-97 0 28.00 28.50 27.50 05-Mar-97 0 28.00 28.50 27.50 04-Mar-97 0 28.00 28.50 27.50 03-Mar-97 0 28.00 28.50 27.50 28-Feb-97 0 28.00 28.50 27.50 27-Feb-97 500 28.00 28.50 28.00 26-Feb-97 0 28.75 29.00 28.50 25-Feb-97 0 29.00 29.50 28.50 24-Feb-97 0 29.00 29.50 28.50 21-Feb-97 0 29.00 29.50 28.50 20-Feb-97 0 29.00 29.50 28.50 19-Feb-97 0 28.75 29.00 28.50 18-Feb-97 0 28.75 29.00 28.50 14-Feb-97 0 29.00 29.50 28.50 13-Feb-97 0 29.00 29.50 28.50 12-Feb-97 0 28.75 29.00 28.50 11-Feb-97 0 28.75 29.00 28.50 10-Feb-97 0 29.00 29.50 28.50 07-Feb-97 0 28.81 29.13 28.50 06-Feb-97 0 29.00 29.50 28.50 05-Feb-97 0 29.00 29.50 28.50 04-Feb-97 0 29.00 29.50 28.50 03-Feb-97 5300 29.00 29.50 29.00 31-Jan-97 0 28.81 29.13 28.50 30-Jan-97 0 28.81 29.13 28.50 29-Jan-97 0 28.75 29.00 28.50 28-Jan-97 0 29.00 29.50 28.50 27-Jan-97 0 28.75 29.00 28.50
30 24-Jan-97 0 28.75 29.00 28.50 23-Jan-97 0 28.75 29.00 28.50 22-Jan-97 300 29.00 29.00 29.00 21-Jan-97 0 29.00 29.50 28.50 20-Jan-97 200 29.00 29.00 29.00 17-Jan-97 0 29.31 29.63 29.00 16-Jan-97 1200 29.50 30.00 29.50 15-Jan-97 0 30.00 30.50 29.50 14-Jan-97 1000 30.00 30.00 30.00 13-Jan-97 0 29.81 30.13 29.50 10-Jan-97 0 30.00 30.50 29.50 09-Jan-97 0 30.00 30.50 29.50 08-Jan-97 100 30.00 30.00 30.00 07-Jan-97 100 30.50 30.50 30.50 06-Jan-97 0 30.75 31.00 30.50 03-Jan-97 0 30.75 31.00 30.50 02-Jan-97 0 30.75 31.00 30.50 31-Dec-96 0 30.75 31.00 30.50 30-Dec-96 0 30.50 31.00 30.00 27-Dec-96 0 30.75 31.00 30.50 26-Dec-96 0 30.75 31.00 30.50 24-Dec-96 0 30.75 31.00 30.50 23-Dec-96 0 31.00 31.50 30.50 20-Dec-96 2000 31.00 31.00 30.88 19-Dec-96 0 30.50 31.00 30.00 18-Dec-96 0 30.50 31.00 30.00 17-Dec-96 0 30.50 31.00 30.00 16-Dec-96 0 30.50 31.00 30.00 13-Dec-96 0 30.50 31.00 30.00 12-Dec-96 0 30.50 31.00 30.00 11-Dec-96 0 30.50 31.00 30.00 10-Dec-96 0 30.50 31.00 30.00 09-Dec-96 0 30.50 31.00 30.00 06-Dec-96 0 30.50 31.00 30.00 05-Dec-96 0 30.50 31.00 30.00
31 04-Dec-96 0 30.50 31.00 30.00 03-Dec-96 0 30.50 31.00 30.00 02-Dec-96 200 30.50 31.00 30.50 29-Nov-96 0 31.00 31.50 30.50 27-Nov-96 0 31.00 31.50 30.50 26-Nov-96 0 31.00 31.50 30.50 25-Nov-96 0 31.00 31.50 30.50 22-Nov-96 0 31.00 31.50 30.50 21-Nov-96 0 31.00 31.50 30.50 20-Nov-96 0 31.00 31.50 30.50 19-Nov-96 0 31.00 31.50 30.50 18-Nov-96 0 31.00 31.50 30.50 15-Nov-96 0 31.00 31.50 30.50 14-Nov-96 0 31.00 31.50 30.50 13-Nov-96 0 31.00 31.50 30.50 12-Nov-96 0 31.00 31.50 30.50 11-Nov-96 0 31.00 31.50 30.50 08-Nov-96 0 30.75 31.00 30.50 07-Nov-96 0 31.00 31.50 30.50 06-Nov-96 0 31.00 31.50 30.50 05-Nov-96 0 31.00 31.50 30.50 04-Nov-96 0 31.00 31.50 30.50 01-Nov-96 0 31.00 31.50 30.50 31-Oct-96 0 31.00 31.50 30.50 30-Oct-96 0 31.00 31.50 30.50 29-Oct-96 0 31.00 31.50 30.50 28-Oct-96 0 31.00 31.50 30.50 25-Oct-96 0 31.00 31.50 30.50 24-Oct-96 0 31.00 31.50 30.50 23-Oct-96 500 31.00 31.00 31.00 22-Oct-96 500 31.00 31.00 31.00 21-Oct-96 0 30.63 31.00 30.25 18-Oct-96 0 30.63 31.00 30.25 17-Oct-96 0 30.63 31.00 30.25 16-Oct-96 0 30.63 31.00 30.25
32 15-Oct-96 200 30.50 30.50 30.50 14-Oct-96 200 30.25 30.25 30.25 11-Oct-96 0 30.75 31.25 30.25 10-Oct-96 0 30.75 31.25 30.25 09-Oct-96 0 30.88 31.50 30.25 08-Oct-96 0 30.75 31.25 30.25 07-Oct-96 0 30.75 31.25 30.25 04-Oct-96 0 30.75 31.25 30.25 03-Oct-96 0 30.75 31.25 30.25 02-Oct-96 0 30.75 31.25 30.25 01-Oct-96 0 30.75 31.25 30.25 30-Sep-96 0 30.75 31.25 30.25 27-Sep-96 0 30.75 31.25 30.25 26-Sep-96 0 30.75 31.25 30.25 25-Sep-96 0 30.75 31.25 30.25 24-Sep-96 0 30.75 31.25 30.25 23-Sep-96 0 30.75 31.75 29.75 20-Sep-96 0 30.56 30.88 30.25 19-Sep-96 0 30.75 31.25 30.25 18-Sep-96 0 30.75 31.25 30.25 17-Sep-96 0 30.75 31.25 30.25 16-Sep-96 0 30.75 31.25 30.25 13-Sep-96 0 30.56 30.88 30.25 12-Sep-96 100 30.75 30.75 30.75 11-Sep-96 0 31.25 31.75 30.75 10-Sep-96 0 31.25 31.75 30.75 09-Sep-96 0 31.25 31.75 30.75 06-Sep-96 0 31.25 31.75 30.75 05-Sep-96 0 31.25 31.75 30.75 04-Sep-96 0 31.25 31.75 30.75 03-Sep-96 0 31.25 31.75 30.75 30-Aug-96 0 31.25 31.75 30.75 29-Aug-96 0 31.25 31.75 30.75 28-Aug-96 0 31.25 31.75 30.75 27-Aug-96 0 31.25 31.75 30.75
33 26-Aug-96 0 31.25 31.75 30.75 23-Aug-96 0 31.25 31.75 30.75 22-Aug-96 0 31.25 31.75 30.75 21-Aug-96 0 31.25 31.75 30.75 20-Aug-96 0 31.25 31.75 30.75 19-Aug-96 0 31.25 31.75 30.75 16-Aug-96 0 31.25 31.75 30.75 15-Aug-96 0 31.25 31.75 30.75 14-Aug-96 0 31.25 31.75 30.75 13-Aug-96 0 31.25 31.75 30.75 12-Aug-96 0 31.25 31.75 30.75 09-Aug-96 0 31.25 31.75 30.75 08-Aug-96 100 31.25 31.25 31.25 07-Aug-96 0 30.75 31.25 30.25 06-Aug-96 0 30.75 31.25 30.25 05-Aug-96 0 30.75 31.25 30.25 02-Aug-96 0 30.75 31.25 30.25 01-Aug-96 0 30.75 31.25 30.25 31-Jul-96 0 30.75 31.25 30.25 30-Jul-96 0 30.75 31.25 30.25 29-Jul-96 0 30.75 31.25 30.25 26-Jul-96 0 30.69 31.13 30.25 25-Jul-96 100 30.75 30.75 30.75 24-Jul-96 0 30.75 31.25 30.25 23-Jul-96 0 31.00 31.25 30.75 22-Jul-96 0 31.00 31.25 30.75 19-Jul-96 0 30.94 31.13 30.75 18-Jul-96 0 31.25 31.75 30.75 17-Jul-96 0 31.19 31.63 30.75 16-Jul-96 100 30.75 30.75 30.75 15-Jul-96 0 31.25 31.75 30.75 12-Jul-96 0 30.75 31.25 30.25 11-Jul-96 0 31.25 31.75 30.75 10-Jul-96 0 31.25 31.75 30.75 09-Jul-96 0 31.25 31.75 30.75
34 08-Jul-96 0 31.25 31.75 30.75 05-Jul-96 0 31.25 31.75 30.75 03-Jul-96 800 31.25 31.25 31.25 02-Jul-96 0 30.75 31.25 30.25 01-Jul-96 0 30.75 31.25 30.25 28-Jun-96 0 30.75 31.25 30.25 27-Jun-96 0 30.75 31.25 30.25 26-Jun-96 2400 30.75 31.00 30.75 25-Jun-96 0 32.00 32.50 31.50 24-Jun-96 0 32.00 32.50 31.50 21-Jun-96 0 32.00 32.50 31.50 20-Jun-96 0 32.00 32.50 31.50 19-Jun-96 0 32.00 32.50 31.50 18-Jun-96 0 32.00 32.50 31.50 17-Jun-96 0 32.00 32.50 31.50 14-Jun-96 0 32.00 32.50 31.50 13-Jun-96 0 32.00 32.50 31.50 12-Jun-96 0 32.00 32.50 31.50 11-Jun-96 0 32.00 32.50 31.50 10-Jun-96 0 32.00 32.50 31.50 07-Jun-96 0 32.00 32.50 31.50 06-Jun-96 0 32.00 32.50 31.50 05-Jun-96 0 32.00 32.50 31.50 04-Jun-96 0 32.00 32.50 31.50 03-Jun-96 0 32.00 32.50 31.50 31-May-96 0 32.00 32.50 31.50 30-May-96 0 32.00 32.50 31.50 29-May-96 0 32.00 32.50 31.50 28-May-96 0 32.00 32.50 31.50 24-May-96 0 32.00 32.50 31.50 23-May-96 0 32.00 32.25 31.75 22-May-96 100 32.00 32.00 32.00 21-May-96 0 32.50 33.00 32.00 20-May-96 0 32.25 32.50 32.00 17-May-96 0 32.25 32.50 32.00
35 16-May-96 0 32.50 33.00 32.00 15-May-96 0 32.50 33.00 32.00 14-May-96 200 32.50 32.50 32.50 13-May-96 0 32.50 33.00 32.00 10-May-96 0 32.50 33.00 32.00 09-May-96 0 32.50 33.00 32.00 08-May-96 300 32.50 32.50 32.50 07-May-96 0 32.50 33.00 32.00 06-May-96 1000 32.50 33.50 32.50 03-May-96 1000 34.00 34.00 34.00 02-May-96 0 34.00 34.50 33.50 01-May-96 0 34.00 34.50 33.50 30-Apr-96 0 34.00 34.50 33.50 29-Apr-96 1200 34.00 35.50 34.00 26-Apr-96 0 35.50 36.00 35.00 25-Apr-96 0 35.50 36.00 35.00 24-Apr-96 0 35.50 36.00 35.00 23-Apr-96 0 35.50 36.00 35.00 22-Apr-96 0 35.50 36.00 35.00 19-Apr-96 0 35.50 36.00 35.00 18-Apr-96 0 35.50 36.00 35.00 17-Apr-96 0 35.50 36.00 35.00 16-Apr-96 200 35.50 35.50 35.50 15-Apr-96 600 36.00 36.00 35.00 12-Apr-96 0 34.50 35.00 34.00 11-Apr-96 0 34.19 34.38 34.00 10-Apr-96 200 34.50 34.50 34.50 09-Apr-96 200 35.00 35.00 35.00 08-Apr-96 0 34.50 35.00 34.00 04-Apr-96 0 34.50 35.00 34.00 03-Apr-96 0 34.50 35.00 34.00 02-Apr-96 0 34.50 35.00 34.00 01-Apr-96 0 34.50 35.00 34.00 29-Mar-96 0 34.50 35.00 34.00 28-Mar-96 0 34.50 35.00 34.00
36 27-Mar-96 0 34.50 35.00 34.00 26-Mar-96 0 34.50 35.00 34.00 25-Mar-96 2000 34.50 36.50 34.50 22-Mar-96 0 35.00 35.50 34.50 21-Mar-96 0 35.00 35.50 34.50 20-Mar-96 0 35.00 35.50 34.50 19-Mar-96 0 35.00 35.50 34.50 18-Mar-96 0 35.00 35.50 34.50 15-Mar-96 0 35.00 35.50 34.50 14-Mar-96 0 35.00 35.50 34.50 13-Mar-96 0 35.00 35.50 34.50 12-Mar-96 0 35.00 35.50 34.50 11-Mar-96 0 35.00 35.50 34.50 08-Mar-96 0 35.00 35.50 34.50 07-Mar-96 0 35.00 35.50 34.50 06-Mar-96 0 35.00 35.50 34.50 05-Mar-96 0 35.00 35.50 34.50 04-Mar-96 0 35.13 35.50 34.75 01-Mar-96 200 35.00 35.00 35.00 29-Feb-96 200 34.75 34.75 34.75 28-Feb-96 0 34.88 35.00 34.75 27-Feb-96 400 34.50 35.50 34.50 26-Feb-96 0 36.00 36.50 35.50 23-Feb-96 0 36.00 36.50 35.50 22-Feb-96 0 36.00 36.50 35.50 21-Feb-96 0 36.00 36.50 35.50 20-Feb-96 0 36.00 36.50 35.50 16-Feb-96 0 36.00 36.50 35.50 15-Feb-96 0 36.25 36.50 36.00 14-Feb-96 200 36.00 36.00 36.00 13-Feb-96 0 35.00 35.50 34.50 12-Feb-96 0 35.00 35.50 34.50 09-Feb-96 0 35.25 35.50 35.00 08-Feb-96 0 35.25 35.50 35.00 07-Feb-96 0 35.25 35.50 35.00
37 06-Feb-96 0 35.25 35.50 35.00 05-Feb-96 0 35.25 35.50 35.00 02-Feb-96 0 35.25 35.50 35.00 01-Feb-96 0 35.25 35.50 35.00 31-Jan-96 1000 35.00 35.00 35.00 30-Jan-96 0 35.25 35.50 35.00 29-Jan-96 0 35.25 35.50 35.00 26-Jan-96 0 35.25 35.50 35.00 25-Jan-96 0 35.25 35.50 35.00 24-Jan-96 0 35.25 35.50 35.00 23-Jan-96 0 35.25 35.50 35.00 22-Jan-96 1000 35.00 35.00 35.00 19-Jan-96 0 35.25 35.50 35.00 18-Jan-96 0 35.25 35.50 35.00 17-Jan-96 0 35.00 35.50 34.50 16-Jan-96 0 35.25 35.50 35.00 15-Jan-96 0 35.25 35.50 35.00 12-Jan-96 0 35.00 35.50 34.50 11-Jan-96 0 35.00 35.50 34.50 10-Jan-96 0 35.00 35.50 34.50 09-Jan-96 0 35.00 35.50 34.50 08-Jan-96 0 35.00 35.50 34.50 05-Jan-96 0 35.00 35.50 34.50 04-Jan-96 0 35.25 35.50 35.00 03-Jan-96 0 35.00 35.50 34.50 02-Jan-96 0 35.25 35.50 35.00 29-Dec-95 0 35.25 35.50 35.00 28-Dec-95 0 35.25 35.50 35.00 27-Dec-95 0 35.25 35.50 35.00 26-Dec-95 0 35.00 35.50 34.50 22-Dec-95 0 35.00 35.50 34.50 21-Dec-95 0 35.00 35.50 34.50 20-Dec-95 100 35.00 35.00 35.00 19-Dec-95 0 34.50 35.00 34.00 18-Dec-95 0 34.50 35.00 34.00
38 15-Dec-95 0 34.50 35.00 34.00 14-Dec-95 0 34.50 35.00 34.00 13-Dec-95 0 34.75 35.00 34.50 12-Dec-95 0 34.75 35.00 34.50 11-Dec-95 0 34.50 35.00 34.00 08-Dec-95 0 34.75 35.00 34.50 07-Dec-95 0 34.75 35.00 34.50 06-Dec-95 0 34.75 35.00 34.50 05-Dec-95 0 34.75 35.00 34.50 04-Dec-95 100 34.50 34.50 34.50 01-Dec-95 0 34.00 34.50 33.50 30-Nov-95 0 34.00 34.50 33.50 29-Nov-95 0 34.00 34.50 33.50 28-Nov-95 0 34.00 34.50 33.50 27-Nov-95 0 34.00 34.50 33.50 24-Nov-95 0 34.25 34.50 34.00 22-Nov-95 1000 34.00 34.00 33.00 21-Nov-95 0 32.50 33.00 32.00 20-Nov-95 0 32.50 33.00 32.00 17-Nov-95 0 32.50 33.00 32.00 16-Nov-95 0 32.50 33.00 32.00 15-Nov-95 0 32.50 33.00 32.00 14-Nov-95 0 32.50 33.00 32.00 13-Nov-95 0 32.50 33.00 32.00 10-Nov-95 0 32.50 33.00 32.00 09-Nov-95 100 32.50 32.50 32.50 08-Nov-95 100 33.00 33.00 33.00 07-Nov-95 0 33.50 34.00 33.00 06-Nov-95 0 33.50 34.00 33.00 03-Nov-95 0 33.50 34.00 33.00 02-Nov-95 0 33.50 34.00 33.00 01-Nov-95 0 33.50 34.00 33.00 31-Oct-95 0 33.50 34.00 33.00 30-Oct-95 0 33.50 34.00 33.00 27-Oct-95 0 33.50 34.00 33.00
39 26-Oct-95 0 33.50 34.00 33.00 25-Oct-95 300 33.50 34.00 33.50 24-Oct-95 200 34.50 34.50 34.50 23-Oct-95 0 34.00 34.50 33.50 20-Oct-95 0 34.00 34.50 33.50 19-Oct-95 0 34.00 34.50 33.50 18-Oct-95 0 34.00 34.50 33.50 17-Oct-95 0 34.00 34.50 33.50 16-Oct-95 0 34.00 34.50 33.50 13-Oct-95 0 34.00 34.50 33.50 12-Oct-95 600 34.00 34.00 33.50 11-Oct-95 0 33.00 33.50 32.50 10-Oct-95 0 33.00 33.50 32.50 09-Oct-95 300 33.00 33.00 33.00 06-Oct-95 0 33.25 33.50 33.00 05-Oct-95 0 33.25 33.50 33.00 04-Oct-95 0 33.50 34.00 33.00 03-Oct-95 0 33.50 34.00 33.00 02-Oct-95 0 33.50 34.00 33.00 29-Sep-95 900 33.50 33.50 31.50 28-Sep-95 2000 32.50 32.50 32.50 27-Sep-95 0 32.50 33.00 32.00 26-Sep-95 200 32.50 32.50 32.00 25-Sep-95 400 31.50 31.50 30.50 22-Sep-95 0 30.50 31.00 30.00 21-Sep-95 0 30.50 31.00 30.00 20-Sep-95 0 30.50 31.00 30.00 19-Sep-95 100 30.50 30.50 30.50 18-Sep-95 500 30.00 30.00 30.00 15-Sep-95 0 29.50 30.00 29.00 14-Sep-95 0 30.00 30.50 29.50 13-Sep-95 100 30.00 30.00 30.00 12-Sep-95 0 30.50 31.00 30.00 11-Sep-95 0 30.50 31.00 30.00 08-Sep-95 100 30.50 30.50 30.50
40 07-Sep-95 300 31.00 31.25 31.00 06-Sep-95 0 31.50 31.75 31.25 05-Sep-95 0 31.75 32.25 31.25 01-Sep-95 0 31.75 32.25 31.25 31-Aug-95 0 31.75 32.25 31.25 30-Aug-95 0 31.75 32.25 31.25 29-Aug-95 0 31.75 32.25 31.25 28-Aug-95 0 31.75 32.25 31.25 25-Aug-95 0 31.75 32.25 31.25 24-Aug-95 0 31.75 32.25 31.25 23-Aug-95 0 31.63 32.25 31.00 22-Aug-95 0 31.75 32.25 31.25 21-Aug-95 0 31.63 32.25 31.00 18-Aug-95 0 31.75 32.25 31.25 17-Aug-95 0 31.75 32.25 31.25 16-Aug-95 0 31.75 32.25 31.25 15-Aug-95 2000 31.75 33.00 31.50 14-Aug-95 1800 31.00 31.00 30.50 11-Aug-95 2200 30.00 30.00 30.00 10-Aug-95 0 33.00 33.50 32.50 09-Aug-95 300 33.00 33.50 33.00 08-Aug-95 0 34.00 34.50 33.50 07-Aug-95 0 34.00 34.50 33.50 04-Aug-95 0 34.00 34.50 33.50 03-Aug-95 0 34.00 34.50 33.50 02-Aug-95 0 34.00 34.50 33.50 01-Aug-95 0 34.00 34.50 33.50 31-Jul-95 0 34.00 34.50 33.50 28-Jul-95 0 34.25 34.50 34.00 27-Jul-95 400 34.00 34.50 34.00 26-Jul-95 0 33.75 34.50 33.00 25-Jul-95 0 34.00 34.50 33.50 24-Jul-95 0 33.75 34.00 33.50 21-Jul-95 0 34.00 34.50 33.50 20-Jul-95 0 34.00 34.50 33.50
41 19-Jul-95 0 34.00 34.50 33.50 18-Jul-95 0 34.13 34.50 33.75 17-Jul-95 0 34.13 34.50 33.75 14-Jul-95 0 34.00 34.50 33.50 13-Jul-95 0 34.13 34.50 33.75 12-Jul-95 0 34.00 34.50 33.50 11-Jul-95 0 34.13 34.50 33.75 10-Jul-95 500 34.00 34.00 32.00 07-Jul-95 0 31.50 32.00 31.00 06-Jul-95 0 31.50 32.00 31.00 05-Jul-95 0 31.50 32.00 31.00 03-Jul-95 0 31.50 32.50 30.50 30-Jun-95 100 31.50 31.50 31.50 29-Jun-95 0 31.00 31.50 30.50 28-Jun-95 0 31.00 31.50 30.50 27-Jun-95 0 31.00 31.50 30.50 26-Jun-95 500 31.00 31.50 31.00 23-Jun-95 200 32.00 32.50 32.00 22-Jun-95 0 33.00 33.50 32.50 21-Jun-95 200 33.00 33.50 33.00 20-Jun-95 800 34.00 34.00 34.00 19-Jun-95 0 33.75 34.00 33.50 16-Jun-95 0 34.00 34.50 33.50 15-Jun-95 0 34.00 34.50 33.50 14-Jun-95 0 34.00 34.50 33.50 13-Jun-95 0 34.00 34.50 33.50 12-Jun-95 0 34.00 34.50 33.50 09-Jun-95 0 34.00 34.50 33.50 08-Jun-95 0 34.00 34.50 33.50 07-Jun-95 0 34.00 34.50 33.50 06-Jun-95 0 34.00 34.50 33.50 05-Jun-95 0 34.00 34.50 33.50 02-Jun-95 0 34.00 34.50 33.50 01-Jun-95 0 33.75 34.00 33.50 31-May-95 0 33.75 34.00 33.50
42 30-May-95 0 34.00 34.50 33.50 26-May-95 0 34.00 34.50 33.50 25-May-95 300 34.00 34.00 34.00 24-May-95 0 34.25 34.50 34.00 23-May-95 0 34.25 34.50 34.00 22-May-95 0 34.25 34.50 34.00 19-May-95 0 34.00 34.50 33.50 18-May-95 100 34.00 34.00 34.00 17-May-95 0 33.50 34.00 33.00 16-May-95 0 33.50 34.00 33.00 15-May-95 200 33.50 33.50 33.50 12-May-95 0 33.00 34.00 32.00 11-May-95 0 33.00 33.50 32.50 10-May-95 0 33.00 33.50 32.50 09-May-95 200 33.00 33.50 33.00 08-May-95 0 34.00 34.50 33.50 05-May-95 0 34.00 34.50 33.50 04-May-95 0 34.00 34.50 33.50 03-May-95 0 34.00 34.50 33.50 02-May-95 0 34.00 34.50 33.50 01-May-95 0 34.00 34.50 33.50 28-Apr-95 0 34.00 34.50 33.50 27-Apr-95 0 34.00 34.50 33.50 26-Apr-95 0 34.00 34.50 33.50 25-Apr-95 600 34.00 34.00 33.00 24-Apr-95 0 32.50 33.00 32.00 21-Apr-95 0 32.50 33.00 32.00 20-Apr-95 0 32.50 33.00 32.00 19-Apr-95 0 32.50 33.00 32.00 18-Apr-95 0 32.50 33.00 32.00 17-Apr-95 0 32.50 33.00 32.00 13-Apr-95 100 32.50 32.50 32.50 12-Apr-95 500 32.00 32.00 32.00 11-Apr-95 0 32.75 33.00 32.50 10-Apr-95 0 32.75 33.00 32.50
43 07-Apr-95 400 32.50 33.00 32.50 06-Apr-95 500 33.50 33.50 33.50 05-Apr-95 0 32.50 33.00 32.00 04-Apr-95 0 32.50 33.00 32.00 03-Apr-95 0 32.50 33.00 32.00 31-Mar-95 100 32.50 32.50 32.50 30-Mar-95 0 33.00 33.50 32.50 29-Mar-95 0 33.00 33.50 32.50 28-Mar-95 0 33.00 33.50 32.50 27-Mar-95 0 33.00 33.50 32.50 24-Mar-95 0 33.00 33.50 32.50 23-Mar-95 0 33.00 33.50 32.50 22-Mar-95 0 33.00 33.50 32.50 21-Mar-95 0 33.00 33.50 32.50 20-Mar-95 0 33.00 33.50 32.50 17-Mar-95 0 33.00 33.50 32.50 16-Mar-95 0 33.00 33.50 32.50 15-Mar-95 0 33.00 33.50 32.50 14-Mar-95 0 33.00 33.50 32.50 13-Mar-95 0 33.00 33.50 32.50 10-Mar-95 0 33.00 33.50 32.50 09-Mar-95 0 33.00 33.50 32.50 08-Mar-95 0 33.00 33.50 32.50 07-Mar-95 0 33.00 33.50 32.50 06-Mar-95 1000 33.00 33.00 33.00 03-Mar-95 0 33.00 33.50 32.50 02-Mar-95 0 33.00 33.50 32.50 01-Mar-95 100 33.00 33.00 33.00 28-Feb-95 0 33.50 34.00 33.00 27-Feb-95 0 33.50 34.00 33.00 24-Feb-95 100 33.50 33.50 33.50 23-Feb-95 0 33.00 33.50 32.50 22-Feb-95 0 33.00 33.50 32.50 21-Feb-95 2000 33.00 34.00 33.00 17-Feb-95 0 33.00 33.50 32.50
44 16-Feb-95 0 33.00 33.50 32.50 15-Feb-95 500 33.00 33.00 33.00 14-Feb-95 0 33.50 34.00 33.00 13-Feb-95 0 34.00 35.00 33.00 10-Feb-95 0 33.50 34.00 33.00 09-Feb-95 0 33.50 34.00 33.00 08-Feb-95 0 33.50 34.00 33.00 07-Feb-95 0 33.50 34.00 33.00 06-Feb-95 0 34.00 35.00 33.00 03-Feb-95 0 33.50 34.00 33.00 02-Feb-95 1000 33.50 33.50 32.50 01-Feb-95 500 33.00 33.50 33.00 31-Jan-95 200 34.00 34.00 34.00 30-Jan-95 0 34.50 35.00 34.00 27-Jan-95 0 34.50 35.00 34.00 26-Jan-95 0 34.50 35.00 34.00 25-Jan-95 0 34.50 35.00 34.00 24-Jan-95 0 34.50 35.00 34.00 23-Jan-95 0 34.50 35.00 34.00 20-Jan-95 0 34.50 35.00 34.00 19-Jan-95 0 34.50 35.00 34.00 18-Jan-95 0 34.50 35.00 34.00 17-Jan-95 0 34.50 35.00 34.00 16-Jan-95 0 34.25 34.50 34.00 13-Jan-95 0 34.25 34.50 34.00 12-Jan-95 1600 34.50 35.00 33.00 11-Jan-95 0 32.50 33.00 32.00 10-Jan-95 0 32.50 33.00 32.00 09-Jan-95 0 32.50 33.00 32.00 06-Jan-95 0 32.50 33.00 32.00 05-Jan-95 0 32.50 33.00 32.00 04-Jan-95 0 32.50 33.00 32.00 03-Jan-95 500 32.50 32.50 32.00 30-Dec-94 0 32.00 32.50 31.50 29-Dec-94 400 32.00 32.50 32.00
45 28-Dec-94 0 32.00 32.50 31.50 27-Dec-94 0 32.00 32.50 31.50 23-Dec-94 0 32.25 32.50 32.00 22-Dec-94 0 32.00 32.50 31.50 21-Dec-94 0 32.00 32.50 31.50 20-Dec-94 0 32.00 32.50 31.50 19-Dec-94 0 32.00 32.50 31.50 16-Dec-94 0 32.00 32.50 31.50 15-Dec-94 0 32.00 32.50 31.50 14-Dec-94 0 32.00 32.50 31.50 13-Dec-94 0 32.00 32.50 31.50 12-Dec-94 0 32.25 32.50 32.00 09-Dec-94 0 32.00 32.50 31.50 08-Dec-94 0 32.00 32.50 31.50 07-Dec-94 0 32.00 32.50 31.50 06-Dec-94 100 32.00 32.00 32.00 05-Dec-94 0 32.75 33.00 32.50 02-Dec-94 200 32.50 33.00 32.50 01-Dec-94 100 32.50 32.50 32.50 30-Nov-94 0 33.00 33.50 32.50 29-Nov-94 0 33.00 33.50 32.50 28-Nov-94 300 33.00 33.00 33.00 25-Nov-94 0 33.50 34.00 33.00 23-Nov-94 0 33.50 34.00 33.00 22-Nov-94 0 33.50 34.00 33.00 21-Nov-94 0 33.50 34.00 33.00 18-Nov-94 0 33.50 34.00 33.00 17-Nov-94 0 33.50 34.00 33.00 16-Nov-94 100 33.50 33.50 33.50 15-Nov-94 100 34.00 34.00 34.00 14-Nov-94 0 33.50 34.00 33.00 11-Nov-94 0 33.50 34.00 33.00 10-Nov-94 0 33.50 34.00 33.00 09-Nov-94 0 33.50 34.00 33.00 08-Nov-94 0 33.50 34.00 33.00
46 07-Nov-94 0 33.50 34.00 33.00 04-Nov-94 0 33.50 34.00 33.00 03-Nov-94 0 33.50 34.00 33.00 02-Nov-94 0 33.50 34.00 33.00 01-Nov-94 0 33.50 34.00 33.00 31-Oct-94 100 33.50 33.50 33.50 28-Oct-94 100 34.00 34.00 34.00 27-Oct-94 0 33.75 34.00 33.50 26-Oct-94 0 33.75 34.00 33.50 25-Oct-94 100 33.50 33.50 33.50 24-Oct-94 0 33.00 33.50 32.50 21-Oct-94 0 33.00 33.50 32.50 20-Oct-94 0 33.00 33.50 32.50 19-Oct-94 0 33.25 33.50 33.00 18-Oct-94 200 33.00 33.50 33.00 17-Oct-94 500 33.13 33.13 33.13 14-Oct-94 200 33.00 33.00 32.50 13-Oct-94 0 32.25 32.50 32.00 12-Oct-94 0 32.00 32.50 31.50 11-Oct-94 0 32.00 32.50 31.50 10-Oct-94 0 32.00 32.50 31.50 07-Oct-94 0 32.25 32.50 32.00 06-Oct-94 0 32.25 32.50 32.00 05-Oct-94 0 32.00 32.50 31.50 04-Oct-94 0 32.25 32.50 32.00 03-Oct-94 0 32.25 32.50 32.00 30-Sep-94 0 32.25 32.50 32.00 29-Sep-94 0 32.25 32.50 32.00 28-Sep-94 200 32.00 32.00 32.00 27-Sep-94 0 32.50 33.00 32.00 26-Sep-94 0 32.50 33.00 32.00 23-Sep-94 200 32.50 33.00 32.50 22-Sep-94 0 33.00 33.50 32.50 21-Sep-94 0 33.00 33.50 32.50 20-Sep-94 0 33.00 33.50 32.50
47 19-Sep-94 0 33.00 33.50 32.50 16-Sep-94 0 33.00 33.50 32.50 15-Sep-94 100 33.00 33.00 33.00 14-Sep-94 0 33.50 34.00 33.00 13-Sep-94 0 33.50 34.00 33.00 12-Sep-94 0 33.50 34.00 33.00 09-Sep-94 0 33.50 34.00 33.00 08-Sep-94 0 33.50 34.00 33.00 07-Sep-94 100 33.50 33.50 33.50 06-Sep-94 0 34.25 34.50 34.00 02-Sep-94 0 34.25 34.50 34.00 01-Sep-94 0 34.50 35.00 34.00 31-Aug-94 1100 34.00 34.00 32.25 30-Aug-94 0 32.13 32.25 32.00 29-Aug-94 0 31.75 32.25 31.25 26-Aug-94 0 32.13 32.25 32.00 25-Aug-94 0 32.13 32.25 32.00 24-Aug-94 0 32.13 32.25 32.00 23-Aug-94 0 32.13 32.25 32.00 22-Aug-94 300 31.75 31.75 31.75 19-Aug-94 200 31.50 31.75 31.50 18-Aug-94 0 31.75 32.00 31.50 17-Aug-94 700 31.50 31.50 31.50 16-Aug-94 0 30.50 31.00 30.00 15-Aug-94 100 30.50 30.50 30.50 12-Aug-94 0 31.00 31.50 30.50 11-Aug-94 1000 31.00 32.00 31.00 10-Aug-94 0 31.00 31.50 30.50 09-Aug-94 0 31.00 31.50 30.50 08-Aug-94 0 31.00 31.50 30.50 05-Aug-94 0 31.00 31.50 30.50 04-Aug-94 0 31.00 31.50 30.50 03-Aug-94 0 31.00 31.50 30.50 02-Aug-94 800 31.00 31.00 30.00 01-Aug-94 700 29.50 29.50 29.00
48 29-Jul-94 300 28.50 28.50 28.50 28-Jul-94 0 28.75 29.00 28.50 27-Jul-94 0 28.75 29.00 28.50 26-Jul-94 0 28.75 29.00 28.50 25-Jul-94 0 28.50 29.00 28.00 22-Jul-94 0 28.75 29.00 28.50 21-Jul-94 100 28.50 28.50 28.50 20-Jul-94 0 28.50 29.00 28.00 19-Jul-94 300 28.50 29.00 28.50 18-Jul-94 400 29.50 29.50 29.00 15-Jul-94 200 28.50 28.50 28.50 14-Jul-94 500 28.00 28.00 27.63 13-Jul-94 200 27.38 27.38 27.38 12-Jul-94 0 26.94 27.38 26.50 11-Jul-94 0 26.94 27.38 26.50 08-Jul-94 0 27.19 27.38 27.00 07-Jul-94 4200 27.00 27.00 27.00 06-Jul-94 0 29.69 30.13 29.25 05-Jul-94 0 29.69 30.13 29.25 01-Jul-94 0 29.69 30.13 29.25 30-Jun-94 0 29.69 30.13 29.25 29-Jun-94 0 29.69 30.13 29.25 28-Jun-94 0 29.75 30.25 29.25 27-Jun-94 0 29.75 30.25 29.25 24-Jun-94 1600 29.75 29.75 29.25 23-Jun-94 200 29.00 29.00 29.00 22-Jun-94 0 29.75 30.25 29.25 21-Jun-94 0 29.75 30.25 29.25 20-Jun-94 0 29.75 30.25 29.25 17-Jun-94 0 30.00 30.50 29.50 16-Jun-94 0 29.75 30.25 29.25 15-Jun-94 200 29.75 29.75 29.25 14-Jun-94 0 29.75 30.25 29.25 13-Jun-94 0 29.75 30.25 29.25 10-Jun-94 0 29.75 30.00 29.50
49 09-Jun-94 0 30.25 30.75 29.75 08-Jun-94 0 29.75 30.25 29.25 07-Jun-94 200 29.75 29.75 29.75 06-Jun-94 200 30.25 30.25 30.25 03-Jun-94 0 30.00 30.50 29.50 02-Jun-94 0 30.00 30.50 29.50 01-Jun-94 300 30.00 30.00 29.50 31-May-94 400 30.00 30.00 29.50 27-May-94 0 29.00 29.25 28.75 26-May-94 0 29.00 29.25 28.75 25-May-94 0 29.00 29.25 28.75 24-May-94 0 29.00 29.25 28.75 23-May-94 0 29.00 29.25 28.75 20-May-94 0 29.00 29.25 28.75 19-May-94 0 29.00 29.50 28.50 18-May-94 0 29.00 29.50 28.50 17-May-94 0 29.00 29.50 28.50 16-May-94 0 29.00 29.50 28.50 13-May-94 0 29.00 29.50 28.50 12-May-94 0 29.00 29.25 28.75 11-May-94 0 29.00 29.50 28.50 10-May-94 0 29.25 29.50 29.00 09-May-94 0 29.25 29.50 29.00 06-May-94 0 29.25 29.50 29.00 05-May-94 0 29.25 29.50 29.00 04-May-94 0 29.25 29.50 29.00 03-May-94 200 29.00 29.00 28.50 02-May-94 0 28.25 28.50 28.00 29-Apr-94 200 28.00 28.00 28.00 28-Apr-94 0 27.75 28.00 27.50 26-Apr-94 0 28.00 28.50 27.50 25-Apr-94 0 28.38 28.50 28.25 22-Apr-94 100 28.00 28.00 28.00 21-Apr-94 300 27.50 27.50 27.50 20-Apr-94 0 28.00 28.50 27.50
50 19-Apr-94 0 28.00 28.50 27.50 18-Apr-94 0 28.00 28.50 27.50 15-Apr-94 0 28.00 28.50 27.50 14-Apr-94 0 28.00 28.50 27.50 13-Apr-94 0 28.00 28.50 27.50 12-Apr-94 0 28.00 28.50 27.50 11-Apr-94 0 28.00 28.50 27.50 08-Apr-94 0 28.00 28.50 27.50 07-Apr-94 0 28.00 28.50 27.50 06-Apr-94 0 28.00 28.50 27.50 05-Apr-94 0 29.00 29.50 28.50 04-Apr-94 0 28.00 28.50 27.50 31-Mar-94 0 28.00 28.50 27.50 30-Mar-94 1000 28.00 29.00 27.50 29-Mar-94 200 29.00 29.00 29.00 28-Mar-94 200 28.50 28.50 28.00 25-Mar-94 200 29.00 29.00 28.50 24-Mar-94 0 28.00 28.50 27.50 23-Mar-94 0 28.00 28.50 27.50 22-Mar-94 2700 28.00 28.00 28.00 21-Mar-94 0 28.25 28.50 28.00 18-Mar-94 200 28.00 28.00 27.50 17-Mar-94 3500 27.00 27.00 27.00 16-Mar-94 0 27.00 27.50 26.50 15-Mar-94 200 27.00 27.00 27.00 14-Mar-94 100 27.00 27.00 27.00 11-Mar-94 600 27.00 27.50 27.00 10-Mar-94 400 27.50 27.50 27.50 09-Mar-94 100 27.00 27.00 27.00 08-Mar-94 200 27.00 27.00 27.00 07-Mar-94 100 27.50 27.50 27.50 04-Mar-94 300 28.00 28.50 28.00 03-Mar-94 0 29.00 29.50 28.50 02-Mar-94 100 29.00 29.00 29.00 01-Mar-94 100 29.50 29.50 29.50
51 28-Feb-94 300 30.00 30.00 30.00 25-Feb-94 200 29.50 29.50 29.50 24-Feb-94 0 30.00 30.50 29.50 23-Feb-94 0 30.00 30.50 29.50 22-Feb-94 200 30.00 30.00 30.00 18-Feb-94 200 30.50 30.50 30.50 17-Feb-94 6100 31.00 32.00 28.50 16-Feb-94 200 28.00 28.00 28.00 15-Feb-94 0 27.88 28.00 27.75 14-Feb-94 1600 27.75 28.50 27.75 11-Feb-94 0 29.00 29.50 28.50 10-Feb-94 200 29.00 29.00 29.00 09-Feb-94 0 29.50 30.00 29.00 08-Feb-94 0 29.50 30.00 29.00 07-Feb-94 0 29.50 30.00 29.00 04-Feb-94 0 29.50 30.00 29.00 03-Feb-94 200 29.50 29.50 29.50 02-Feb-94 0 29.75 30.00 29.50 01-Feb-94 200 30.00 30.00 30.00 31-Jan-94 500 30.25 30.25 30.25 28-Jan-94 0 29.56 29.88 29.25 27-Jan-94 0 29.56 29.88 29.25 26-Jan-94 200 29.75 29.75 29.75 25-Jan-94 0 29.56 29.88 29.25 24-Jan-94 800 29.75 29.75 29.50 21-Jan-94 500 30.00 30.00 29.50 20-Jan-94 200 29.00 29.00 29.00 19-Jan-94 0 29.50 30.00 29.00 18-Jan-94 200 29.50 29.50 29.50 17-Jan-94 200 30.00 30.00 30.00 14-Jan-94 0 29.50 30.00 29.00 13-Jan-94 0 29.50 30.00 29.00 12-Jan-94 0 29.50 30.00 29.00 11-Jan-94 700 29.50 29.50 29.00 10-Jan-94 0 28.50 29.00 28.00
52 07-Jan-94 0 28.50 29.00 28.00 06-Jan-94 0 28.50 29.00 28.00 05-Jan-94 0 28.50 29.00 28.00 04-Jan-94 0 28.50 29.00 28.00 03-Jan-94 0 28.50 29.00 28.00 31-Dec-93 0 28.25 28.50 28.00 30-Dec-93 200 28.50 28.50 28.50 29-Dec-93 0 29.00 29.50 28.50 28-Dec-93 0 29.00 29.50 28.50 27-Dec-93 0 29.00 29.50 28.50 23-Dec-93 100 29.00 29.00 29.00 22-Dec-93 0 29.00 29.50 28.50 21-Dec-93 0 29.00 29.50 28.50 20-Dec-93 0 29.00 29.50 28.50 17-Dec-93 0 29.00 29.50 28.50 16-Dec-93 600 29.00 29.00 29.00 15-Dec-93 0 29.75 30.25 29.25 14-Dec-93 0 29.75 30.25 29.25 13-Dec-93 0 29.75 30.25 29.25 10-Dec-93 0 29.75 30.25 29.25 09-Dec-93 0 29.75 30.25 29.25 08-Dec-93 0 29.75 30.25 29.25 07-Dec-93 0 29.75 30.25 29.25 06-Dec-93 0 29.75 30.25 29.25 03-Dec-93 600 29.75 29.75 29.75 02-Dec-93 0 29.75 30.25 29.25 01-Dec-93 0 29.75 30.25 29.25 30-Nov-93 0 29.75 30.25 29.25 29-Nov-93 0 29.75 30.25 29.25 26-Nov-93 0 29.75 30.25 29.25 24-Nov-93 0 29.44 29.63 29.25 23-Nov-93 0 29.75 30.25 29.25 22-Nov-93 200 29.75 29.75 29.75 19-Nov-93 0 30.25 30.75 29.75 18-Nov-93 0 30.25 30.75 29.75
53 17-Nov-93 0 30.25 30.75 29.75 16-Nov-93 0 30.25 30.75 29.75 15-Nov-93 0 30.25 30.75 29.75 12-Nov-93 0 30.25 30.75 29.75 11-Nov-93 0 30.25 30.75 29.75 10-Nov-93 300 30.25 30.25 30.25 09-Nov-93 0 29.75 30.25 29.25 08-Nov-93 0 29.75 30.25 29.25 05-Nov-93 0 29.75 30.25 29.25 04-Nov-93 0 29.75 30.25 29.25 03-Nov-93 0 29.75 30.25 29.25 02-Nov-93 0 29.75 30.25 29.25 01-Nov-93 0 29.75 30.25 29.25 29-Oct-93 100 29.75 29.75 29.75 28-Oct-93 0 29.63 29.75 29.50 27-Oct-93 0 29.63 29.75 29.50 26-Oct-93 0 29.63 29.75 29.50 25-Oct-93 0 30.00 30.50 29.50 22-Oct-93 200 30.00 30.00 30.00 21-Oct-93 0 29.50 30.00 29.00 20-Oct-93 0 29.50 30.00 29.00 19-Oct-93 0 29.50 30.00 29.00 18-Oct-93 0 29.50 30.00 29.00 15-Oct-93 500 29.50 29.50 29.00 14-Oct-93 2000 29.00 29.00 28.50 13-Oct-93 0 28.00 28.50 27.50 12-Oct-93 0 28.00 28.50 27.50 11-Oct-93 100 28.00 28.00 28.00 08-Oct-93 0 27.50 28.00 27.00 07-Oct-93 0 27.50 28.00 27.00 06-Oct-93 0 27.50 28.00 27.00 05-Oct-93 0 27.50 28.00 27.00 04-Oct-93 0 27.50 28.00 27.00 01-Oct-93 0 27.50 28.00 27.00 30-Sep-93 0 27.50 28.00 27.00
54 29-Sep-93 0 27.50 28.00 27.00 28-Sep-93 0 27.50 28.00 27.00 27-Sep-93 200 27.50 27.50 27.00 24-Sep-93 100 26.50 26.50 26.50 23-Sep-93 0 26.00 26.50 25.50 22-Sep-93 0 26.00 26.50 25.50 21-Sep-93 0 26.00 26.50 25.50 20-Sep-93 0 26.00 26.50 25.50 17-Sep-93 0 26.00 26.50 25.50 16-Sep-93 0 26.00 26.50 25.50 15-Sep-93 200 26.00 26.00 26.00 14-Sep-93 0 25.50 26.00 25.00 13-Sep-93 0 25.50 26.00 25.00 10-Sep-93 0 25.50 26.00 25.00 09-Sep-93 0 25.50 26.00 25.00 08-Sep-93 0 25.50 26.00 25.00 07-Sep-93 200 25.50 25.50 25.50 03-Sep-93 300 25.00 25.50 25.00 02-Sep-93 2100 26.00 27.00 26.00 01-Sep-93 0 25.88 26.25 25.50 31-Aug-93 0 25.88 26.25 25.50 30-Aug-93 0 25.88 26.25 25.50 27-Aug-93 0 26.00 26.50 25.50 26-Aug-93 0 26.00 26.50 25.50 25-Aug-93 0 26.00 26.50 25.50 24-Aug-93 200 26.00 26.00 26.00 23-Aug-93 0 26.50 27.00 26.00 20-Aug-93 0 26.50 27.00 26.00 19-Aug-93 0 26.50 27.00 26.00 18-Aug-93 3000 26.50 26.50 26.50 17-Aug-93 0 26.00 26.50 25.50 16-Aug-93 0 26.00 26.50 25.50 13-Aug-93 0 26.00 26.50 25.50 12-Aug-93 0 26.00 26.50 25.50 11-Aug-93 0 26.00 26.50 25.50
55 10-Aug-93 0 26.00 26.50 25.50 09-Aug-93 0 26.00 26.50 25.50 06-Aug-93 0 26.00 26.50 25.50 05-Aug-93 0 26.00 26.50 25.50 04-Aug-93 0 26.00 26.50 25.50 03-Aug-93 0 26.00 26.50 25.50 02-Aug-93 0 26.00 26.50 25.50 30-Jul-93 100 26.00 26.00 26.00 29-Jul-93 0 25.00 26.00 24.00 28-Jul-93 200 25.50 25.50 25.50 27-Jul-93 200 26.00 26.00 26.00 26-Jul-93 0 25.50 26.00 25.00 23-Jul-93 0 25.50 26.00 25.00 22-Jul-93 1400 25.50 25.50 24.50 21-Jul-93 0 25.50 26.00 25.00 20-Jul-93 0 25.50 26.00 25.00 19-Jul-93 0 25.25 25.50 25.00 16-Jul-93 400 25.50 25.50 25.00 15-Jul-93 0 24.25 24.50 24.00 14-Jul-93 0 24.50 25.00 24.00 13-Jul-93 0 24.50 25.00 24.00 12-Jul-93 0 24.50 25.00 24.00 09-Jul-93 2000 24.50 25.00 24.50 08-Jul-93 1100 24.00 24.00 23.88 07-Jul-93 1200 23.63 24.00 23.50 06-Jul-93 0 24.38 24.75 24.00 02-Jul-93 0 24.50 25.00 24.00 01-Jul-93 100 24.50 24.50 24.50 30-Jun-93 5400 24.00 24.00 24.00 29-Jun-93 0 27.00 27.50 26.50 28-Jun-93 400 27.00 27.50 27.00 25-Jun-93 0 28.00 28.50 27.50 24-Jun-93 0 28.00 28.50 27.50 23-Jun-93 0 28.00 28.50 27.50 22-Jun-93 100 28.00 28.00 28.00
56 21-Jun-93 100 28.00 28.00 28.00 18-Jun-93 300 28.50 28.50 28.50 17-Jun-93 0 28.75 29.00 28.50 16-Jun-93 0 28.75 29.00 28.50 15-Jun-93 300 28.50 28.50 28.50 14-Jun-93 0 28.75 29.00 28.50 11-Jun-93 100 28.50 28.50 28.50 10-Jun-93 100 28.50 28.50 28.50 09-Jun-93 100 28.00 28.00 28.00 08-Jun-93 0 27.50 28.00 27.00 07-Jun-93 0 27.50 28.00 27.00 04-Jun-93 100 27.50 27.50 27.50 03-Jun-93 300 28.00 28.00 27.50 02-Jun-93 0 27.25 27.50 27.00 01-Jun-93 200 27.00 27.00 27.00 28-May-93 100 26.50 26.50 26.50 27-May-93 0 26.00 26.50 25.50 26-May-93 0 26.00 26.50 25.50 25-May-93 0 26.00 26.50 25.50 24-May-93 0 26.00 26.50 25.50 21-May-93 0 26.00 26.50 25.50 20-May-93 0 26.00 26.50 25.50 19-May-93 0 26.00 26.50 25.50 18-May-93 0 26.00 26.50 25.50 17-May-93 200 26.00 26.00 26.00 14-May-93 0 25.50 26.00 25.00 13-May-93 0 25.50 26.00 25.00 12-May-93 0 25.50 26.00 25.00 11-May-93 0 25.50 26.00 25.00 10-May-93 200 25.50 25.50 25.50 07-May-93 0 25.00 25.50 24.50 06-May-93 0 25.00 25.50 24.50 05-May-93 0 25.25 25.50 25.00 04-May-93 0 25.25 25.50 25.00 03-May-93 0 25.25 25.50 25.00
57 30-Apr-93 0 25.00 25.00 25.00 29-Apr-93 200 25.00 25.00 25.00 28-Apr-93 0 24.50 25.00 24.00 27-Apr-93 0 24.50 25.00 24.00 26-Apr-93 0 24.50 25.00 24.00 23-Apr-93 0 24.50 25.00 24.00 22-Apr-93 0 24.50 25.00 24.00 21-Apr-93 0 24.50 25.00 24.00 20-Apr-93 0 24.50 25.00 24.00 19-Apr-93 0 24.50 25.00 24.00 16-Apr-93 0 24.50 25.00 24.00 15-Apr-93 400 24.50 24.50 24.50 14-Apr-93 100 25.00 25.00 25.00 13-Apr-93 0 25.25 25.50 25.00 12-Apr-93 500 25.50 25.50 25.50 08-Apr-93 200 25.50 25.50 25.50 07-Apr-93 0 26.00 26.50 25.50 06-Apr-93 100 26.00 26.00 26.00 05-Apr-93 100 26.50 26.50 26.50 02-Apr-93 0 26.00 26.50 25.50 01-Apr-93 0 26.00 26.50 25.50 31-Mar-93 0 26.00 26.50 25.50 30-Mar-93 0 26.00 26.50 25.50 29-Mar-93 0 26.00 26.50 25.50 26-Mar-93 0 26.00 26.50 25.50 25-Mar-93 0 26.00 26.50 25.50 24-Mar-93 0 26.00 26.50 25.50 23-Mar-93 0 26.00 26.50 25.50 22-Mar-93 0 26.00 26.50 25.50 19-Mar-93 0 26.00 26.50 25.50 18-Mar-93 0 26.00 26.50 25.50 17-Mar-93 400 26.00 26.50 26.00 16-Mar-93 0 27.25 27.63 26.88 15-Mar-93 0 27.25 27.50 27.00 12-Mar-93 1000 27.00 27.00 27.00
58 11-Mar-93 0 27.25 27.50 27.00 10-Mar-93 0 27.25 27.50 27.00 09-Mar-93 200 27.00 27.00 27.00 08-Mar-93 700 26.50 26.50 26.00 05-Mar-93 0 25.75 26.00 25.50 04-Mar-93 0 25.75 26.00 25.50 03-Mar-93 0 25.75 26.00 25.50 02-Mar-93 0 25.75 26.00 25.50 01-Mar-93 0 25.75 26.00 25.50 26-Feb-93 0 25.75 26.00 25.50 25-Feb-93 500 25.50 25.50 25.50 24-Feb-93 200 25.50 25.50 25.00 23-Feb-93 0 25.00 25.50 24.50 22-Feb-93 0 25.00 25.50 24.50 19-Feb-93 0 24.50 25.00 24.00 18-Feb-93 0 24.50 25.00 24.00 17-Feb-93 0 24.50 25.00 24.00 16-Feb-93 0 24.50 25.00 24.00 12-Feb-93 0 24.50 25.00 24.00 11-Feb-93 0 24.50 25.00 24.00 10-Feb-93 0 24.50 25.00 24.00 09-Feb-93 0 24.50 25.00 24.00 08-Feb-93 0 24.50 25.00 24.00 05-Feb-93 100 24.50 24.50 24.50 04-Feb-93 0 25.00 25.50 24.50 03-Feb-93 0 25.00 25.50 24.50 02-Feb-93 0 25.00 25.50 24.50 01-Feb-93 100 25.00 25.00 25.00 29-Jan-93 0 25.25 25.50 25.00 28-Jan-93 0 25.50 26.00 25.00 27-Jan-93 0 25.50 26.00 25.00 26-Jan-93 0 25.50 26.00 25.00 25-Jan-93 500 25.50 25.50 25.00 22-Jan-93 0 25.25 25.50 25.00 21-Jan-93 200 25.50 25.50 25.50
59 20-Jan-93 400 25.00 25.00 25.00 19-Jan-93 0 25.50 26.00 25.00 18-Jan-93 0 25.50 26.00 25.00 15-Jan-93 200 25.50 25.50 25.50 14-Jan-93 300 25.00 25.00 25.00 13-Jan-93 300 24.50 24.50 24.50 12-Jan-93 0 25.00 25.50 24.50 11-Jan-93 400 25.00 25.00 24.50 08-Jan-93 400 24.00 24.00 24.00 07-Jan-93 0 24.00 24.50 23.50 06-Jan-93 800 24.00 24.00 23.50 05-Jan-93 0 23.75 24.00 23.50 04-Jan-93 100 23.50 23.50 23.50 31-Dec-92 1500 23.00 23.00 22.00 30-Dec-92 2200 21.50 21.50 20.25 29-Dec-92 0 21.00 21.50 20.50 28-Dec-92 500 21.00 21.00 21.00 24-Dec-92 200 22.00 22.00 22.00 23-Dec-92 0 22.50 23.00 22.00 22-Dec-92 600 22.50 23.00 22.50 21-Dec-92 500 23.50 24.00 23.50 18-Dec-92 500 24.00 24.50 24.00 17-Dec-92 200 25.00 25.00 25.00 16-Dec-92 300 25.50 25.50 25.50 15-Dec-92 200 26.00 26.00 26.00 14-Dec-92 0 26.50 27.00 26.00 11-Dec-92 0 26.50 27.00 26.00 10-Dec-92 0 26.50 27.00 26.00 09-Dec-92 0 26.50 27.00 26.00 08-Dec-92 700 26.50 27.50 26.50 07-Dec-92 600 28.00 28.00 27.00 04-Dec-92 700 26.50 26.50 25.50 03-Dec-92 0 25.38 25.50 25.25 02-Dec-92 0 25.38 25.50 25.25 01-Dec-92 0 25.00 25.50 24.50
60 30-Nov-92 0 25.00 25.50 24.50 27-Nov-92 0 25.00 25.50 24.50 25-Nov-92 0 25.00 25.50 24.50 24-Nov-92 600 25.00 26.00 25.00 23-Nov-92 0 25.75 26.00 25.50 20-Nov-92 0 25.75 26.00 25.50 19-Nov-92 0 25.75 26.00 25.50 18-Nov-92 400 26.00 26.00 25.50 17-Nov-92 0 25.25 25.50 25.00 16-Nov-92 1300 25.00 25.00 25.00 13-Nov-92 0 24.00 24.50 23.50 12-Nov-92 0 23.75 24.00 23.50
EX-17.B.8 3 MATERIALS PREPARED BY SECURITIES DATA COMPANY 1 SELECT MINORITY SQUEEZE OUT TRANSACTIONS (MARKET CAPITALIZATION OF TARGET GREATER THAN $100 MILLION)
(Dollars in Millions) - ---------------------------------------------------------------------------------------- Date Date Announced Effective Target Name Target Business Description - ---------------------------------------------------------------------------------------- 01/12/95 03/29/95 Kershaw(A) & Sons Pvd heavy construction svcs 02/07/95 07/12/95 Rust International Inc. Provide engineering services 02/14/95 09/15/95 Hayes-Dana Inc. Mnfr automobile, truck parts 02/27/95 - Bankers Life Holding Life ins co;holding company 02/28/95 03/27/95 Parthena Investissement SA Real estate agency 03/06/95 07/18/95 Spie Batignolles SA Construction company 03/10/95 06/02/95 Cominco Resources Intl. Own,op metal mining-copper ore 03/27/95 - Terra Nitrogen Co. LP Manufacture fertilizers 04/03/95 06/30/95 Produra Venture Capital Venture capital firm 04/05/95 08/02/95 Club Med Inc. Operate vacation resorts 04/05/95 07/31/95 Cie Intl des Wagons-Lits Op hotels,restaurants,rail car 04/07/95 10/03/95 LIN Bdcstg. Operate television stations 05/03/95 06/07/95 Sogerap Oil and gas exploration,prodn 05/18/95 10/09/95 Service Corp International Provide funeral home services 05/19/95 12/06/95 Bic Corp Mnfr writing instruments 06/19/95 08/09/95 Cie Immobiliere Phenix Real estate development firm 07/06/95 07/31/95 Epargne de France Life insurance company 07/06/95 11/30/95 Grand Gaming Corp. Own,operate casinos 07/14/95 12/11/95 REN Corp.-USA Own,op kidney dialysis centers 07/20/95 12/04/95 BTR Nylex Ltd. Mnfr rubber,plastics hose 07/25/95 08/10/95 Waterman Mnfr writing instruments 08/11/95 02/09/96 Homestake Gold of Australia Gold mining company 08/23/95 - Roto-Rooter Inc. Provide plumbing services,prod 08/24/95 01/17/96 AIDC Ltd. Investment bank 08/25/95 01/02/96 GEICO Corp. Insurance and financial svcs 08/25/95 09/22/95 Pompes Funebre Generales SA Provide funeral services 08/30/95 09/26/95 Fils Charvet Own,op fuel distn business
(Dollars in Millions) - -------------------------------------------------------------------------------------------------------- Premium to 4 Weeks Date Percent Prior to Value of Announced Acquiror Name Sought Status Ann. Date Transaction - -------------------------------------------------------------------------------------------------------- 01/12/95 Rank Organisation PLC 13.8% Completed 29.9% 86.9 02/07/95 WMX Technologies Inc. 3.7% Completed 39.1% 50.5 02/14/95 Dana Corp. 44.3% Completed 40.0% 93.0 02/27/95 Conseco Inc. 39.6% Withdrawn 6.0% - 02/28/95 Cie de Suez SA 1.0% Completed 44.4% 2.3 03/06/95 Schneider SA 41.0% Completed 12.9% 94.8 03/10/95 Cominco Ltd. 44.3% Completed 20.7% 83.4 03/27/95 Terra Industries Inc. 40.6% Withdrawn 8.6% - 04/03/95 Atle Foervaltnings AB 46.9% Completed 34.1% 30.8 04/05/95 Club Mediterranee SA 33.0% Completed 44.6% 153.4 04/05/95 Accor SA 29.5% Completed 67.6% 412.4 04/07/95 McCaw Cellular Commun(AT&T) 48.0% Completed 19.7% 3,323.4 05/03/95 Soc Nationale Elf Aquitaine 0.3% Completed 40.2% 1.7 05/18/95 Service Corp International 31.0% Completed 36.8% 52.5 05/19/95 BIC SA 22.0% Completed 17.0% 212.6 06/19/95 Cie Generale des Eaux SA 0.9% Completed -4.4% 3.0 07/06/95 Commercial Union France SA 0.4% Completed 228.2% 1.1 07/06/95 Grand Casinos Inc. 22.2% Completed 55.7% 36.5 07/14/95 COBE Laboratories(Gambro AB) 47.0% Completed 26.0% 177.7 07/20/95 BTR PLC 37.0% Completed 35.3% 3,294.1 07/25/95 Gillette Co. 4.2% Completed 85.7% 9.9 08/11/95 Homestake Mining Co. 18.5% Completed 13.7% 162.2 08/23/95 Chemed Corp. 41.0% Withdrawn - - 08/24/95 Australian Industrial Dvlp. 19.4% Completed -3.2% 42.5 08/25/95 Berkshire Hathaway Inc. 47.6% Completed 25.3% 2,347.0 08/25/95 Service Corp International 35.0% Completed 54.7% 111.4 08/30/95 Total Raffinage Distribution 1.8% Completed 271.7% 2.2
Page 1 2 SELECT MINORITY SQUEEZE OUT TRANSACTIONS (MARKET CAPITALIZATION OF TARGET GREATER THAN $100 MILLION)
(Dollars in Millions) - ---------------------------------------------------------------------------------------- Date Date Announced Effective Target Name Target Business Description - ---------------------------------------------------------------------------------------- 08/30/95 - Syms Corp. Own,op men's clothing store - ---------------------------------------------------------------------------------------- 09/13/95 10/18/95 Cia Latina di Assicurazioni Insurance,security brokerage 09/26/95 12/12/95 SCOR US Corp. Reinsurance holding company 09/27/95 - Societe de Immeubles Own,op nonresidential bldgs 11/02/95 - Immunex Corp. Mfr immunological therapy prod 11/06/95 - NPC International Inc. Own and operate restaurants 11/15/95 12/18/95 Den Norske Amerikalinje Shipping company 11/23/95 04/07/96 BNZ Finance Bank 12/04/95 - AMEC PLC Provide construction svcs 12/18/95 - Wharf Resources Gold mining company 02/16/96 06/19/96 Whitcoulls Grp. Publish books;whl stationery 02/19/96 04/12/96 Gartmore PLC Investment management services 03/14/96 05/07/96 Noble Group Ltd. Whl steel prod;own,op ships 03/29/96 04/26/96 Great American Mgmt & Invt Inc. Invt advice and financial svcs 05/09/96 - Asean Resources Hldgs. Real estate investment firm 05/21/96 06/28/96 Cie d'Investissement de Paris Investment firm 05/27/96 02/16/97 SyStemix Inc. Mnfr,dvlp cellular processes 07/01/96 08/08/96 Macallan-Glenlivet PLC Produce distilled liquors 08/08/96 09/17/96 Roto-Rooter Inc. Provide plumbing services,prod 08/26/96 12/31/96 Bankers Life Holding Life ins co;holding company 09/04/96 11/06/96 Transocean Drilling A/S Pvd oil and gas field services 09/09/96 09/23/96 Crocker Realty Trust Inc. REIT 09/17/96 - Multi-Purpose Capital Holdings Investment holding company 09/20/96 12/11/96 Lloyds Abbey Life PLC Insurance co; holding company 10/07/96 01/17/96 Calor Group PLC Produce, dist, retail gas 10/10/96 11/27/96 WCI Steel Inc. Manufacture steel 10/23/96 12/12/96 SEP Mnfr rocket propulsion systems
(Dollars in Millions) - -------------------------------------------------------------------------------------------------------- Premium to 4 Weeks Date Percent Prior to Value of Announced Acquiror Name Sought Status Ann. Date Transaction - -------------------------------------------------------------------------------------------------------- 08/30/95 Investor Group 18.0% Withdrawn 25.0% - - ---------------------------------------------------------------------------------------------------- 09/13/95 Fondiaria Assicurazioni SpA 25.0% Completed NA 33.9 09/26/95 SCOR 20.0% Completed 38.6% 55.4 09/27/95 Credit Foncier de France 45.0% Withdrawn -4.8% - 11/02/95 American Home Products Corp. 45.8% Withdrawn 6.4% - 11/06/95 Investor Group 38.0% Withdrawn 33.3% - 11/15/95 Wilh Wilhelmsen AS 8.2% Completed 30.0% 13.8 11/23/95 National Australia(1995)Ltd. 21.6% Completed 19.4% 44.6 12/04/95 Kvaerner A/S 46.0% Withdrawn 63.6% - 12/18/95 Goldcorp Investments Ltd. 49.7% Withdrawn 16.7% - 02/16/96 Rank Commercial Ltd. 35.5% Completed 27.6% 69.3 02/19/96 NatWest Group PLC(Natl Westmi) 25.0% Completed 13.1% 195.4 03/14/96 Investor Group 21.1% Completed 6.8% 17.9 03/29/96 Equity Holdings 15.7% Completed 3.6% 63.3 05/09/96 Huey Tai International 32.0% Withdrawn 31.9% - 05/21/96 BNP 16.1% Completed 33.3% 150.7 05/27/96 Novartis AG 32.2% Completed 59.2% 107.6 07/01/96 Investor Group 49.0% Completed -9.8% 137.2 08/08/96 Chemed Corp. 45.1% Completed 11.2% 93.6 08/26/96 Conseco Inc. 11.6% Completed 11.7% 120.8 09/04/96 Sonat Offshore Drilling 6.0% Completed NA 2,900.0 09/09/96 Highwoods Properties Inc. 26.4% Completed 21.8% 76.1 09/17/96 Multi-Purpose Holdings Bhd. 23.6% Withdrawn -25.7% - 09/20/96 Lloyds TSB Group PLC 37.4% Completed 13.6% 2,588.9 10/07/96 SHV Holding Co. Ltd. 48.4% Completed NA 383.1 10/10/96 Renco Group Inc. 15.5% Completed 77.8% 56.5 10/23/96 SNECMA(France) 48.7% Completed 25.5% 199.1
Page 2 3 SELECT MINORITY SQUEEZE OUT TRANSACTIONS (MARKET CAPITALIZATION OF TARGET GREATER THAN $100 MILLION)
(Dollars in Millions) - ---------------------------------------------------------------------------------------- Date Date Announced Effective Target Name Target Business Description - ---------------------------------------------------------------------------------------- 10/24/96 12/13/96 GCG Inc. Mnfr,whl gypsum products 10/30/96 - San Miguel Brewery Hong Kong Produce beer and soft drinks - ---------------------------------------------------------------------------------------- 11/11/96 07/18/97 Telecom Italia SpA Pvd telecommunications service 11/20/96 - Toy Biz Inc. Mnfr games and toys 11/27/96 03/27/97 Central Tractor Farm & Country Own,op tractor,hardware stores 11/27/96 04/11/97 Placer Pacific Ltd. Gold,silver and copper mining 12/17/96 07/16/97 Allmerica Property & Casualty Insurance holding company 12/23/96 - Allied Industries Intl. Investment firm;holding co 01/16/97 03/05/97 CEP Communication Publish magazines 01/21/97 07/09/97 Mafco Consolidated Grp. Mnfr cosmetics,beauty products 01/28/97 05/21/97 Calgene Inc. Own and operate greenhouse 03/13/97 05/21/97 Austereo Ltd. Own,op radio broadcasting stn 06/02/97 07/15/97 Acordia Inc. Pvd insurance brokerage svcs - ----------------------------------------------------------------------------------------
(Dollars in Millions) - -------------------------------------------------------------------------------------------------------- Premium to 4 Weeks Date Percent Prior to Value of Announced Acquiror Name Sought Status Ann. Date Transaction - -------------------------------------------------------------------------------------------------------- 10/24/96 USG Corp. 24.0% Completed 60.6% 49.3 10/30/96 Neptunia Corp.(San Miguel Corp.) 36.0% Withdrawn 23.0% - - ---------------------------------------------------------------------------------------------------- 11/11/96 Telecom Italia SpA(IRI/Italy) 38.0% Completed 0.0% 6,321.1 11/20/96 Andrews Group Inc. 35.3% Withdrawn 20.0% - 11/27/96 JW Childs Equity Partners LP 38.7% Completed 18.8% 56.7 11/27/96 Placer Dome Inc. 24.6% Completed 28.6% 236.6 12/17/96 Allmerica Financial Corp. 40.7% Completed 0.0% 816.9 12/23/96 Wiseway Enterprises(Suryadi) 49.4% Withdrawn 28.8% - 01/16/97 Havas SA 22.7% Completed 34.7% 436.9 01/21/97 Mafco Holdings Inc. 15.0% Completed 27.6% 116.8 01/28/97 Monsanto Co. 43.7% Completed 60.0% 242.6 03/13/97 Village Roadshow Corp. Ltd. 48.2% Completed 27.5% 174.7 06/02/97 Anthem Inc. 33.2% Completed 26.0% 172.7 - ----------------------------------------------------------------------------------------------------
----------------------------------------------------------------- High Premium Paid 271.7% Average Premium Paid + sandard deviation 78.9% Average Premium Paid 33.9% Average Premium Paid - sandard Deviation -11.0% Low Premium Paid -25.7% ----------------------------------------------------------------- ----------------------------------------------------------------- Total Completed Deals 53 % of Completed Deals % Below 40% Premium 39 73.6% % Below 35% Premium 35 66.0% % Below 30% Premium 31 58.5% % Below 25% Premium 22 41.5% % Below 20% Premium 20 37.7% % Below 15% Premium 16 30.2% % Below 10% Premium 10 18.9% % Below 5% Premium 9 17.0% % At or Below Market 8 15.1% -----------------------------------------------------------------
Page 3 4 Date Announced: 01/12/95 Date Effective: 03/29/95 Date Unconditional: 03/29/95 Status: Completed Target Name: Acquiror Name: Synopsis: Kershaw(A) & Sons(Rank Rank Organisation PLC Rank Organisation completed a tender offer for the remaining 13.8% stake in its Kershaw & Sons unit at 11.50 British Location: Location: pounds ($18.11 US) per ordinary share, or a total of 55.17 United Kingdom United Kingdom mil pounds ($86.87 mil). Business Description: Business Description: Provide heavy construction Own and operate hotels, sports services camps and advertising Provide heavy construction agencies; produce motion services pictures; holding company SIC Codes: SIC Codes: 1629 1622 7011 7032 7311 7812 7999 6719 Ticker Symbol: Ticker Symbol: KSW/ RNK Advisors: Advisors: BZW Investment Management Schroder Group SG Warburg & Co. Ltd. FINANCIAL DATA (mil): STG Date of LTM Fin. 04/30/93 04/30/93 04/30/92 04/30/91 04/30/90 04/30/89 --------- --------- --------- --------- --------- --------- Rank Value(2) : 55.2 STG Attitude :Friendly Net Sales 0.7 0.7 0.3 - - - Value (1) : 55.2 STG Defensive Pre-Tax Inc. 0.1 0.1 -.0 9.9 19.3 9.5 Price/Share : 11.50 Tactics : Not Applicable Net Income 9.9 9.9 9.7 9.8 19.1 9.4 Shares Out(mil) : 34.76 EPS - - - - - - Assets 1.8 1.8 0.5 0.5 21.5 11.5 Net Assets 0.1 0.1 - 0.0 5.6 5.3 Techniques: Litigation: No Not Applicable Outcome : P/E Ratio : 40.272 Cash & Marketable Securities (mil): - Book Value/Share: 0.00 Long-Term Liabilities (mil) : - Price/Book : 3833.3
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 5 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 01/12/95 Kershaw(A) & Sons Rank Organisation PLC 55.2 STG 11.50 Plans to launch offer for remaining 13.8% are disclosed 03/29/95 Kershaw(A) & Sons Rank Organisation PLC 55.2 STG 11.50 Tender offer for remaining 13.8% is disclosed ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 6 Date Announced: 02/07/95 Date Effective: 07/12/95 Status: Completed Target Name: Acquiror Name: Synopsis: Rust International Inc WMX Technologies Inc WMX Technologies acquired the remaining 3.61% stake it did not already own in Rust International, a majority-owned unit Location: Location: of its Chemical Waste Management subsidiary, by purchasing Alabama Illinois 3.086 mil common shares at an amended $16.35 in cash per share, or a total of $56.876 mil. Originally, WMX Business Description: Business Description: Technologies had offered $14 in cash per share. Provide engineering services Provide solid and chemical waste management, portable lavatory rental, and engineering services SIC Codes: SIC Codes: 8711 4953 4959 7359 8711 Ticker Symbol: Ticker Symbol: RST WMX Advisors: Advisors: Oppenheimer FINANCIAL DATA (mil): US Date of LTM Fin. 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 --------- --------- --------- --------- --------- --------- Rank Value(2) : 56.9 US Attitude :Friendly Net Sales 1,651.4 1,534.5 1,441.1 1,237.0 - - Value (1) : 56.9 US Defensive Net Income 68.5 80.0 83.2 44.7 - - Price/Share : 16.35 Tactics : Not Applicable EPS 0.83 0.98 1.04 - - - Shares Out(mil) : 84.79 Assets 1,765.4 1,638.5 1,167.5 - - - Cash Flow 182.2 181.1 68.1 83.8 - - Techniques: Litigation: Yes Not Applicable Outcome : Stock Premiums -------------- 1 Day Prior : +27.0 P/E Ratio : 19.699 Cash & Marketable Securities (mil): 11.8 1 Week Prior : +39.1 Book Value/Share: 11.60 Short-Term Debt (mil) : 1.7 4 Weeks Prior: +39.1 Price/Book : 1.41 Long-Term Debt (mil) : 474.4
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 7 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 02/07/95 Rust International Inc WMX Technologies Inc 43.2 US 14.00 Plans to acquire remaining 3.61% stake are disclosed 02/09/95 Rust International Inc WMX Technologies Inc 43.2 US 14.00 Shareholder sues Rust over pending merger 05/10/95 Rust International Inc WMX Technologies Inc 56.9 US 16.35 Definitive merger agreement is disclosed; terms are amended 06/19/95 Rust International Inc WMX Technologies Inc 56.9 US 16.35 Merger will close on July 12; no shlder vote is needed 07/12/95 Rust International Inc WMX Technologies Inc 56.9 US 16.35 Acquisition of remaining 3.61% stake is completed ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 8 Date Announced: 02/14/95 Date Effective: 09/15/95 Date Unconditional: 09/15/95 Status: Completed Target Name: Acquiror Name: Synopsis: Hayes-Dana Inc(Dana Corp) Dana Corp Dana acqired the remaining 44.3% stake, or 6,887,737 common shares, it did not already own in Hayes-Dana for an amended Location: Location: 18.5 Canadian dollars ($13.5 US) per share, or a total of Canada Ohio C$127.423 mil ($93.02 mil), by completing a tender offer. The offer had been contingent upon two-thirds of the Business Description: Business Description: remaining shares being tendered. Originally, Dana offered Manufacture automobile and Manufacture and wholesale C$17.5 ($12.77) per share. truck parts components and systems for worldwide vehicular and industrial manufacturers, vehicular components include components for drivetrain systems, engine parts, filtration products, structural components and chassis products, industrial components include components for industrial power transmission products; provide lease financing services SIC Codes: SIC Codes: 3714 3713 3714 3621 3625 3462 3594 3593 3568 6159 Ticker Symbol: Ticker Symbol: HAY DCN Advisors: Advisors: Nesbitt Burns Corp Merrill Lynch & Co. ScotiaMcLeod FINANCIAL DATA (mil): C Date of LTM Fin. 12/31/93 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 --------- --------- --------- --------- --------- --------- Rank Value(2) : 127.4 C Attitude :Friendly Net Sales 572.5 572.5 501.6 379.7 438.5 494.8 Value (1) : 127.4 C Defensive Pre-Tax Inc. 18.3 18.3 0.3 -25.2 25.7 35.1 Price/Share : 17.50 Tactics : Not Applicable Net Income 11.8 11.8 0.1 -14.3 15.3 20.7 Shares Out(mil) : 15.53 EPS 0.78 0.78 0.01 -.94 1.01 1.31 Assets 217.8 217.8 200.6 226.3 204.2 204.8 Net Assets 117.4 117.4 113.5 121.8 144.7 140.4 Techniques: Litigation: No Tender Offer Outcome : P/E Ratio : 22.436 Cash & Marketable Securities (mil): 2.0 Book Value/Share: 7.73 Long-Term Liabilities (mil) : - Price/Book : 2.26
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 9 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 02/14/95 Hayes-Dana Inc(Dana Corp) Dana Corp 120.5 C 17.50 Plans to launch tender offer for remaining 43% is disclosed 02/28/95 Hayes-Dana Inc(Dana Corp) Dana Corp 120.5 C 17.50 Hayes-Dana's board recommends that shareholders accept offer 03/06/95 Hayes-Dana Inc(Dana Corp) Dana Corp 120.5 C 17.50 Tender offer is launched - 03/28/95 Hayes-Dana Inc(Dana Corp) Dana Corp 120.5 C 17.50 Ontario Muni Employees Retire System won't tender its 16% 03/29/95 Hayes-Dana Inc(Dana Corp) Dana Corp 120.5 C 17.50 Tender offer extended to 4/10; 4.175 mil shs tendered so far 04/11/95 Hayes-Dana Inc(Dana Corp) Dana Corp 120.5 C 17.50 Tender offer extended to 4/27; to date, 4.3 mil shs tendered 04/19/95 Hayes-Dana Inc(Dana Corp) Dana Corp 127.4 C 18.50 Terms are amended; offer is extended until May 1 09/15/95 Hayes-Dana Inc(Dana Corp) Dana Corp 127.4 C 18.50 Merger is completed - ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 10 Date Announced: 02/27/95 Date Effective: Status: Withdrawn Target Name: Acquiror Name: Synopsis: Bankers Life Holding Corp Conseco Inc Conseco withdrew its offer to acquire the remaining 20.923 mil common shares, or 39.6% interest, in its Bankers Life Location: Location: Holding subsidiary it did not already own for $22 in cash Illinois Indiana per share, or a total value of $460.962 mil. The value included 1.498 mil shares Conseco had previously purchased Business Description: Business Description: for $31.4 mil in the open market. Life and casualty insurance Insurance holding company; company provide financial services SIC Codes: SIC Codes: 6311 6331 6719 6311 6321 6331 6351 6719 6282 Ticker Symbol: Ticker Symbol: BLH CNC Advisors: Advisors: Bear, Stearns Merrill Lynch & Co. FINANCIAL DATA (mil): US Date of LTM Fin. 09/30/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 --------- --------- --------- --------- --------- --------- Rank Value(2) : 461.0 US Attitude :Friendly Net Sales 1,452.5 1,456.3 - - - - Value (1) : 461.0 US Defensive Net Income 138.7 136.0 - - - - Price/Share : 22.00 Tactics : Not Applicable EPS 2.57 2.63 - - - - Shares Out(mil) : 52.84 Assets 3,979.5 3,934.8 3,367.5 - - - Cash Flow 346.5 366.4 - - - - Techniques: Litigation: Yes Not Applicable Outcome : Stock Premiums -------------- 1 Day Prior : +18.9 P/E Ratio : 8.560 Cash & Marketable Securities (mil): 2,783.2 1 Week Prior : +21.4 Book Value/Share: 8.95 Short-Term Debt (mil) : 269.6 4 Weeks Prior: +6.0 Price/Book : 2.46 Long-Term Debt (mil) : - Summary of Related Transactions Transaction Type Date Status Participant(s) Acq. Part. Int. 05/26/95 Completed Philipp Holzmann AG / Commerzbank AG Acq. Part. Int. 03/07/95 Completed Bankers Life Holding(Conseco) / Conseco Inc
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 11 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 02/27/95 Bankers Life Holding(Conseco) Conseco Inc 461.0 US 22.00 Plans to acquire remaining 39.6% stake are disclosed 02/27/95 Bankers Life Holding(Conseco) Conseco Inc - - Stake raise to 63.2% from 60.4% is disclosed 03/01/95 Bankers Life Holding(Conseco) Conseco Inc 461.0 US 22.00 Shareholders file suit charging offer price too low 03/02/95 Bankers Life Holding(Conseco) Conseco Inc 461.0 US 22.00 Conseco receives financing committments 03/03/95 Bankers Life Holding(Conseco) Conseco Inc 461.0 US 22.00 Acquisition should boost earnings 03/06/95 Bankers Life Holding(Conseco) Conseco Inc 461.0 US 22.00 AM Best places Bankers on ratings watch 03/20/95 Bankers Life Holding(Conseco) Conseco Inc 461.0 US 22.00 AM Best affirms Statesman Grp rating;Bkrs still under review 04/26/95 Bankers Life Holding(Conseco) Conseco Inc 461.0 US 22.00 Shareholder meeting and vote necessary for approval 05/26/95 Bankers Life Holding(Conseco) Conseco Inc 461.0 US 22.00 Offer to acquire remaining shares is withdrawn 05/26/95 Bankers Life Holding(Conseco) Conseco Inc - - Agreement to raise stake is disclosed 06/22/95 Bankers Life Holding(Conseco) Conseco Inc 461.0 US 20.63 Stake raise to 81.4% from 63.3% is completed ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 12 Date Announced: 02/28/95 Date Effective: 03/27/95 Date Unconditional: 03/27/95 Status: Completed Target Name: Acquiror Name: Synopsis: Parthena Investissement SA Cie de Suez SA Cie de Suez completed its tender offer and acquired the remaining .95% stake, or 23,465 ordinary shares in Parthena Location: Location: Investissement at 505 French francs ($98.34 US) per share, France France or a total of 11.8 mil francs ($2.3 mil). Business Description: Business Description: Real estate agency Bank holding company;provide financial advisory services in areas such as banking, insurance, capital investment, corporate and international finance, and real estate; SIC Codes: SIC Codes: 6531 6000 6712 6799 6719 6722 6726 6798 6282 6211 Ticker Symbol: Ticker Symbol: CETB SUZF Advisors: Advisors: FINANCIAL DATA (mil): FFR Date of LTM Fin. 12/31/93 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 --------- --------- --------- --------- --------- --------- Rank Value(2) : 11.9 FFR Attitude :Friendly Net Sales 633.7 633.7 182.3 55.2 - - Value (1) : 11.9 FFR Defensive Pre-Tax Inc. 563.3 563.3 155.7 63.6 - - Price/Share : 505.00 Tactics : Not Applicable Net Income 469.8 469.8 127.1 50.9 - - Shares Out(mil) : 2.47 EPS 190.21 190.21 51.44 29.43 - - Assets 1,541.6 1,541.6 1,274.0 633.0 - - Net Assets 1,246.5 1,246.5 810.1 509.4 - - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : 2.655 Cash & Marketable Securities (mil): 15.7 Book Value/Share: 504.66 Long-Term Liabilities (mil) : - Price/Book : 1.00
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 13 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 02/28/95 Parthena Investissement SA Cie de Suez SA 11.8 FFR 505.00 Tender offer for remaining .95% stake is launched 03/27/95 Parthena Investissement SA Cie de Suez SA 11.8 FFR 505.00 Stake is raised to 99.45%, acqn is completed;shs delisted ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 14 Date Announced: 03/06/95 Date Effective: 07/18/95 Date Unconditional: 07/18/95 Status: Completed Target Name: Acquiror Name: Synopsis: Spie Batignolles SA(Schneider Schneider SA Schneider (SC), a unit of Societa Parisienne d'Enterprises et de Participations, acquired the remaining 41% interest, Location: Location: or 2,094,100 ordinary shares, in Spie Batignolles (SB) that France France it did not already own, at 227 French francs ($45.28 US) per shares, or a total of 475.49 mil francs ($94.48 mil) in cash Business Description: Business Description: via a tender offer. Alternatively, SC offered each Construction company; own and Provide telecommunications shareholder the alternative of receiving a certificate of operate boarding houses; services; manufacture guaranteed value. provide engineering servcies electrical industrial apparatus; holding company SIC Codes: SIC Codes: 1629 7021 8711 4813 3629 6719 Ticker Symbol: Ticker Symbol: BATF SCHN Advisors: Advisors: Paribas Lazard Houses Societe Generale FINANCIAL DATA (mil): FFR Date of LTM Fin. 12/31/93 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 --------- --------- --------- --------- --------- --------- Rank Value(2) : 475.5 FFR Attitude :Friendly Net Sales 18,031.8 18,031.8 23,232.7 22,734.6 23,113.4 19,685.9 Value (1) : 475.5 FFR Defensive Pre-Tax Inc. -164.0 -164.0 -84.9 -806.8 272.7 285.5 Price/Share : 227.00 Tactics : Not Applicable Net Income -212.0 -212.0 -136.9 -890.2 215.9 231.2 Shares Out(mil) : 5.11 EPS -38.65 -38.65 -46.32 -188.47 54.28 54.58 Assets 34,339.9 34,339.9 36,984.2 38,620.7 39,905.2 43,620.9 Net Assets 775.6 775.6 709.9 1,005.4 2,001.3 1,824.5 Techniques: Litigation: No Reverse Takeover Outcome : Tender Offer Tender/Merger P/E Ratio : Cash & Marketable Securities (mil): 2,602.2 Book Value/Share: 107.78 Long-Term Liabilities (mil) : - Price/Book : 2.11 Summary of Related Transactions Transaction Type Date Status Participant(s) Merger 07/21/95 Withdrawn Spie Batignolles SA / Seeking Buyer
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 15 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 03/06/95 Schneider SA Spie Batignolles SA 22,687.0 US 363.00 Stock swap merger plans are disclosed 03/06/95 Spie Batignolles SA Schneider SA - - Plans to acquire remaining 41% stake are intended 03/07/95 Spie Batignolles SA Schneider SA - - Negotiations continue;form of acq'n still up in the air 03/15/95 Spie Batignolles SA Schneider SA 475.5 FFR 227.00 Tender offer for remaining 41% is launched 03/17/95 Spie Batignolles SA Schneider SA 475.5 FFR 227.00 Spie Batignolles shares resume trading on Paris Bourse 04/10/95 Spie Batignolles SA Schneider SA 475.5 FFR 227.00 Bid will take place from 5/9 to 5/23 04/13/95 Spie Batignolles SA Schneider SA 475.5 FFR 227.00 Schneider trading will be suspended on 4/28 05/24/95 Spie Batignolles SA Schneider SA 475.5 FFR 227.00 Schneider receives no shares; holders will recv certificates 05/30/95 Spie Batignolles SA Schneider SA 475.5 FFR 227.00 Mergers commission is vetting the transaction 07/18/95 Spie Batignolles SA Schneider SA 22,687.0 US 363.00 Stock swap merger is completed - 07/18/95 Spie Batignolles SA Schneider SA 475.5 FFR 227.00 Acquisition of remaining 41% stake is completed via tender 07/21/95 Spie Batignolles SA Seeking Buyer - - Search for buyer(s) is disclosed 07/28/95 Spie Batignolles SA Seeking Buyer - - Search for buyer(s) is withdrawn 02/09/96 Spie Batignolles SA Seeking Buyer - - Schneider will still look at any offers for SB 03/08/96 Spie Batignolles SA Seeking Buyer - - Speculation a majority of SB may be sold to its managment ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 16 Date Announced: 03/10/95 Date Effective: 06/02/95 Date Unconditional: 06/02/95 Status: Completed Target Name: Acquiror Name: Synopsis: Cominco Resources Cominco Ltd Cominco acquired the remaining 44% stake it did not already own in its Cominco Resources International (CRI) subsidiary Location: Location: in a stock swap transaction valued at an amended 113.035 mil Canada Canada Canadian dollars ($83.36 mil US). CRI shareholders were to receive .163 Cominco common shares for each CRI share held. Business Description: Business Description: Based on Cominco's closing stock price of C$22.62 ($16.68) Own and operate metal mining Nickel, lead, zinc mining; on May 19, the last full trading day prior to the and copper ores manufacture fertilizers announcement, each CRI share was valued at C$3.68 ($2.42). Originally, Cominco offered .154 shares for each CRI share SIC Codes: SIC Codes: held. 1021 1081 1061 1031 2873 2874 Ticker Symbol: Ticker Symbol: COR CLT Advisors: Advisors: Wood Gundy (Canada) FINANCIAL DATA (mil): C Date of LTM Fin. 12/31/93 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 --------- --------- --------- --------- --------- --------- Rank Value(2) : 113.0 C Attitude :Friendly Net Sales 34.4 34.4 58.6 51.9 26.7 12.0 Value (1) : 113.0 C Defensive Pre-Tax Inc. -17.0 -17.0 -6.4 -2.6 -22.4 -12.9 Price/Share : 3.68 Tactics : Not Applicable Net Income -17.8 -17.8 -9.4 -5.0 -21.8 -13.1 Shares Out(mil) : 69.30 EPS -.28 -.28 -.17 -.10 -.65 -.35 Assets 102.4 102.4 113.7 103.0 97.0 96.7 Net Assets 93.5 - - - - - Techniques: Litigation: No Not Applicable Outcome : P/E Ratio : Cash & Marketable Securities (mil): 4.8 Book Value/Share: 1.37 Long-Term Liabilities (mil) : - Price/Book : 2.69
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 17 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 03/10/95 Cominco Resources Intl Cominco Ltd 104.7 C 3.41 Plans to acquire remaining 44% stake are disclosed 03/17/95 Cominco Resources Intl Cominco Ltd 104.7 C 3.41 Cominico Resources forms committee to study offer 04/17/95 Cominco Resources Intl Cominco Ltd 104.7 C 3.41 Boards recommends vote in favor; vote set for May 23 05/23/95 Cominco Resources Intl Cominco Ltd 113.0 C 3.68 Terms are amended - 06/02/95 Cominco Resources Intl Cominco Ltd 113.0 C 3.68 Acquisition of 44% stake is completed ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 18 Date Announced: 03/27/95 Date Effective: Status: Withdrawn Target Name: Acquiror Name: Synopsis: Terra Nitrogen Co LP(Terra Terra Industries Inc(Minorco Terra Industries, a unit of the Minorco subsidiary of Anglo American Corp of South Africa, withdrew its plan to acquire Location: Location: the remaining 40% stake that it did not already own in its Oklahoma Iowa Terra Nitrogen subsidiary for $30 per senior preference unit, or a total value of $229.091 mil. Business Description: Business Description: Manufacture fertilizers Manufacture and wholesale nitrogenous fertilizers, agricultural pesticides and other chemicals; produce animal feed and seed products; mine and produce sand, gravel and crushed stone used in road construction; manufacture ready-mixed concrete and concrete products; construct industrial, residential and government projects, including highway construction; copper and beryllium mining SIC Codes: SIC Codes: 2873 2873 2879 2048 5191 1442 1429 2952 3273 3272 1542 1541 1522 1611 1021 1099 Ticker Symbol: Ticker Symbol: TNH TRA Advisors: Advisors: Donaldson, Lufkin & Jenrette Merrill Lynch & Co. FINANCIAL DATA (mil): US Date of LTM Fin. 09/30/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 --------- --------- --------- --------- --------- --------- Rank Value(2) : 229.1 US Attitude :Friendly Net Sales 289.1 259.8 243.4 247.2 - - Value (1) : 229.1 US Defensive Net Income 69.3 49.7 53.5 49.2 - - Price/Share : 30.00 Tactics : Not Applicable EPS 3.608 2.591 2.787 2.617 - - Shares Out(mil) : 18.81 Assets 292.5 286.4 290.2 268.2 - - Cash Flow 86.0 68.2 70.7 75.3 - - Techniques: Litigation: No Not Applicable Outcome : Stock Premiums -------------- 1 Day Prior : +9.1 P/E Ratio : 8.315 Cash & Marketable Securities (mil): 25.1 1 Week Prior : +11.1 Book Value/Share: 29.00 Short-Term Debt (mil) : 1.5 4 Weeks Prior: +8.6 Price/Book : 1.03 Long-Term Debt (mil) : 40.3
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 19 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 03/27/95 Terra Nitrogen Co LP Terra Industries Inc 229.1 US 30.00 Acquisition plans are disclosed 05/11/95 Terra Nitrogen Co LP Terra Industries Inc 229.1 US 30.00 Acquistion plans are withdrawn - ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 20 Date Announced: 04/03/95 Date Effective: 06/30/95 Date Unconditional: 06/30/95 Status: Completed Target Name: Acquiror Name: Synopsis: Produra Venture Capital(Atle Atle Foervaltnings AB Atle Foervaltnings completed a tender offer for the remaining 46.9% interest in Produra Venture Capital for Location: Location: 46.25 Swedish krona ($6.3 US) per share,or a total of 226.6 Sweden Sweden mil krona ($30.8 mil). Business Description: Business Description: Venture capital firm Venture capital firm SIC Codes: SIC Codes: 6799 6799 Ticker Symbol: Ticker Symbol: PRODF ATLE Advisors: Advisors: Svenska Handelsbanken Handelsbanken Markets FINANCIAL DATA (mil): - Date of LTM Fin. --------- --------- --------- --------- --------- --------- Rank Value(2) : 226.6 SKR Attitude :Friendly Net Sales - - - - - - Value (1) : 226.6 SKR Defensive Pre-Tax Inc. - - - - - - Price/Share : 46.25 Tactics : Not Applicable Net Income - - - - - - Shares Out(mil) : 10.00 EPS - - - - - - Assets - - - - - - Net Assets - - - - - - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : Cash & Marketable Securities (mil): - Book Value/Share: - Long-Term Liabilities (mil) : - Price/Book :
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 21 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 04/03/95 Produra Venture Capital(Atle) Atle Foervaltnings AB 226.6 SKR 46.25 Tender offer for remaining 46.9% interest is launched 04/27/95 Produra Venture Capital(Atle) Atle Foervaltnings AB 226.6 SKR 46.25 Board recommends Atle's offer - 05/09/95 Produra Venture Capital(Atle) Atle Foervaltnings AB 226.6 SKR 46.25 2.02 mil shs are tendered - 06/30/95 Produra Venture Capital(Atle) Atle Foervaltnings AB 226.6 SKR 46.25 Tender offer for remaining 46.9% interest is completed ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 22 Date Announced: 04/05/95 Date Effective: 08/02/95 Status: Completed Target Name: Acquiror Name: Synopsis: Club Med Inc Club Mediterranee SA Club Mediterranee (CM) merged with Club Med in a transaction valued at $153.4 mil concurrent with the completion of its Location: Location: tender offer for the remaining 4.794 mil shares, or 33% New York France stake, that it it did not already own in Club Med for an amended $32 in cash per share, by accepting 4,717,450 Business Description: Business Description: shares, or a 32.5% stake, raising CM's interest to 99.5%. Own and operate vacation Operate travel agencies, hotel Originally, CM offered to acquire the remaining Club Med resorts resorts, recreation activities shares for $26.25 in cash per share, or a total value of $125.85 mil. SIC Codes: SIC Codes: 7011 7999 4724 7011 7999 Ticker Symbol: Ticker Symbol: CMI CMIP Advisors: Advisors: Salomon Brothers Lazard Houses FINANCIAL DATA (mil): US Date of LTM Fin. 10/31/94 10/31/94 10/31/93 10/31/92 10/31/91 10/31/90 --------- --------- --------- --------- --------- --------- Rank Value(2) : 153.4 US Attitude :Friendly Net Sales 570.3 570.3 556.5 516.4 518.7 - Value (1) : 153.4 US Defensive Net Income 30.2 30.2 27.3 25.3 29.0 - Price/Share : 32.00 Tactics : Not Applicable EPS 2.084 2.084 1.90 1.77 2.047 - Shares Out(mil) : 14.52 Assets 612.9 612.9 560.8 548.2 522.4 - Cash Flow 56.5 56.5 57.7 48.0 53.5 - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger Stock Premiums -------------- 1 Day Prior : +41.4 P/E Ratio : 15.355 Cash & Marketable Securities (mil): 58.1 1 Week Prior : +39.9 Book Value/Share: 23.95 Short-Term Debt (mil) : 44.1 4 Weeks Prior: +44.6 Price/Book : 1.34 Long-Term Debt (mil) : 54.2
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 23 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 04/05/95 Club Med Inc Club Mediterranee SA 125.9 US 26.25 Plans to launch tender offer are disclosed 06/27/95 Club Med Inc Club Mediterranee SA 153.4 US 32.00 Terms are amended - 06/30/95 Club Med Inc Club Mediterranee SA 153.4 US 32.00 Board approves offer - 07/03/95 Club Med Inc Club Mediterranee SA 153.4 US 32.00 Tender offer is launched - 08/02/95 Club Med Inc Club Mediterranee SA 153.4 US 32.00 Tender offer is completed; 4.717 shs tendered 08/02/95 Club Med Inc Club Mediterranee SA 153.4 US 32.00 Merger is completed - ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 24 Date Announced: 04/05/95 Date Effective: 07/31/95 Date Unconditional: 07/31/95 Status: Completed Target Name: Acquiror Name: Synopsis: Cie Internationale des Wagons- Accor SA Accor Group (AG) acquired the remaining 29.5% stake in Cie Internationale des Wagons-Lits et du Tourisme (CIWT), a unit Location: Location: of AG's COBEFIN subsidiary, in a stock swap tender offer Belgium France valued at 11.7 bil Belgian francs (2 bil French francs/$412 mil US). AG offered 20 shares for every 7 CIWT shares held. Business Description: Business Description: Based on AG's closing share price of 3,432.3 Belgian francs Own and operate hotels and car Own and operate hotels and (580 French francs/$121) on Apr 4, the last full day of and other transportation restaurants; real estate trading, each CIWT share was valued at 9806.59 Belgian restaurants; provide sleeping development firm francs (1651.15 French francs/$345.78). services; holding company Own and operate hotels and car and other transportation restaurants; provide sleeping services; holding company SIC Codes: SIC Codes: 7011 4729 4789 5812 6719 7011 5812 6552 Ticker Symbol: Ticker Symbol: - ACCP Advisors: Advisors: FINANCIAL DATA (mil): BFR Date of LTM Fin. 12/31/93 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 --------- --------- --------- --------- --------- --------- Rank Value(2) : 11,697.3 BFR Attitude :Friendly Net Sales - 80,925.0 81,026.0 97,986.0 91,033.0 98,947.0 Value (1) : 11,697.3 BFR Defensive Pre-Tax Inc. - 998.0 1,182.0 1,943.0 2,195.0 2,486.0 Price/Share : 9806.59 Tactics : Not Applicable Net Income - - 908.0 650.0 538.0 986.0 Shares Out(mil) : 4.04 EPS - - - - - - Assets - - 74,119.0 67,901.0 80,753.0 75,818.0 Net Assets - - 18,918.0 16,754.0 14,892.0 14,980.0 Techniques: Litigation: No Tender Offer Outcome : Tender/Merger Stock Swap P/E Ratio : Cash & Marketable Securities (mil): - Book Value/Share: - Long-Term Liabilities (mil) : - Price/Book :
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 25 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 04/05/95 Cie Intl des Wagons-Lits Accor SA 11,697.0 BFR 9806.6 Tender offer for remaining 29.5% stake is intended 05/15/95 Cie Intl des Wagons-Lits Accor SA 11,697.0 BFR 9806.6 Tender offer for remaining 29.5% stake is launched 06/14/95 Cie Intl des Wagons-Lits Accor SA 11,697.0 BFR 9806.6 Acceptances for 28.82% received totalling 99.32% 07/31/95 Cie Intl des Wagons-Lits Accor SA 11,697.0 BFR 9806.6 Tender offer for remaining 29.5% interest is completed ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 26 Date Announced: 04/07/95 Date Effective: 10/03/95 Status: Completed Target Name: Acquiror Name: Synopsis: LIN Broadcasting Corp McCaw Cellular Communications McCaw Cellular Communications (MC), a unit of AT&T, exercised its option to acquire the remaining 48%, or 24 mil Location: Location: shares, of LIN Broadcasting (LIN) it did not already own for Washington Washington an amended $129.90 in cash per share, or a total of $3.209 bil. Earlier, MC had offered $129.5 in cash amended from Business Description: Business Description: $127.50 per share held. The transaction was a 'private Provide cellular voice Provide cellular market value guarantee', conditioned on MC acquiring a telephone and data telecommunication services majority interest in LIN. MC also had the option to put LIN communications services up for sale. MC received the option in 1989, after which it was acquired by AT&T in 1994. SIC Codes: SIC Codes: 4813 4812 4899 4812 Ticker Symbol: Ticker Symbol: LINB - Advisors: Advisors: Wasserstein, Perella Morgan Stanley Lehman Brothers Bear, Stearns FINANCIAL DATA (mil): US Date of LTM Fin. 03/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 --------- --------- --------- --------- --------- --------- Rank Value(2) : 3,209.4 US Attitude :Friendly Net Sales 884.1 876.5 688.6 572.5 - - Value (1) : 3,209.4 US Defensive Net Income 591.9 564.2 -60.7 -69.0 - - Price/Share : 129.90 Tactics : Not Applicable EPS 10.57 10.04 -1.18 -1.40 - - Shares Out(mil) : 53.30 Assets 2,924.7 2,923.9 2,862.9 2,693.1 - - Cash Flow - 347.3 253.4 248.6 - - Techniques: Litigation: Yes Not Applicable Outcome : Stock Premiums -------------- 1 Day Prior : +18.2 P/E Ratio : 12.289 Cash & Marketable Securities (mil): 35.2 1 Week Prior : +19.7 Book Value/Share: 6.06 Short-Term Debt (mil) : 167.6 4 Weeks Prior: +19.7 Price/Book : 21.45 Long-Term Debt (mil) : 1,453.7 Summary of Related Transactions Transaction Type Date Status Participant(s) Poison Pill 05/02/88 Amended LIN Bdcstg(McCaw Cellular) Poison Pill Amendment 06/19/89 Amended LIN Bdcstg(McCaw Cellular) Poison Pill Amendment 05/03/88 Amended LIN Bdcstg(McCaw Cellular) Exchange Offer 02/20/91 Completed McCaw Cellular Communications Poison Pill Amendment 03/05/90 Dead/Acquired LIN Bdcstg(McCaw Cellular) Poison Pill Amendment 09/10/89 Amended LIN Bdcstg(McCaw Cellular) Merger 06/06/89 Withdrawn LIN Bdcstg(McCaw Cellular) / McCaw Cellular Commun Inc Merger 10/10/89 Withdrawn LIN Bdcstg(McCaw Cellular) / Seeking Buyer Acq. Rem. Int. 09/11/89 Intent W LIN Bdcstg(McCaw Cellular) / BellSouth Corp Merger 06/20/89 Intent W LIN Bdcstg(McCaw Cellular) / Undisclosed Acquiror Acq. of Assets 09/11/89 Withdrawn BellSouth Corp-Cellular Ops / LIN Bdcstg(McCaw Cellular) Acquisition 09/11/89 Withdrawn LIN Broadcasting Corp-TV Ops / Shareholders
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 27 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 06/06/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,540.0 US 120.00 Announces plan to launch tender offer 06/07/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,540.0 US 120.00 Sues to have LIN's poison pill removed 06/08/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,540.0 US 120.00 Tender offer is launched - 06/15/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,540.0 US 120.00 McCaw files with the Federal Communications Commission 06/20/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,540.0 US 120.00 LIN unanimously rejects offer; seeks other buyers 06/20/89 LIN Bdcstg(McCaw Cellular) Undisclosed Acquiror - - LIN discloses talks with other bidders 06/30/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,540.0 US 120.00 Review of offer is announced - 06/30/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,540.0 US 120.00 LIN loses court battle to buy Metromedia paging interests 07/03/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,540.0 US 120.00 LIN rejects offer again, notwithstanding court decision 07/05/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,540.0 US 120.00 Considers revision of offer in the wake LIN court loss 07/10/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,089.0 US 110.00 Reduces offer following court decision 07/12/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,089.0 US 110.00 McCaw and LIN talk about the possibility of higher offer 07/13/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,506.0 US 127.50 McCaw may raise bid to $127.50 per share in cash and stock 07/19/89 LIN Bdcstg(McCaw Cellular) LIN Bdcstg(McCaw Cellular) 6,530.0 US 127.50 Shareholder recapitalization proposal is announced 07/21/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,089.0 US 110.00 Talks over higher offer break down; tender offer extended 07/25/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,089.0 US 110.00 LIN will agree to $127.50 offer; sets July 31 deadline 07/27/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,089.0 US 110.00 Says its unable to negotiate pact due to LIN's requirements 07/31/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,089.0 US 110.00 Agreement deadline passes; LIN to pursue other options 08/08/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,089.0 US 110.00 Offer is extended until 9/1; 1,072,660 shares are tendered 08/31/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,089.0 US 110.00 Offer is extended until 9/22; 2,347,489 shares are tendered 09/01/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,089.0 US 110.00 FCC refuses to block McCaw's bid 09/11/89 LIN Broadcasting Corp-TV Ops Shareholders - - Spinoff is proposed - 09/11/89 BellSouth Corp-Cellular Ops LIN Bdcstg(McCaw Cellular) - - Definitive merger agreement is disclosed 09/11/89 LIN Bdcstg(McCaw Cellular) BellSouth Corp - - Option to acquire remaining interest is disclosed 09/11/89 LIN Bdcstg(McCaw Cellular) LIN Bdcstg(McCaw Cellular) 1,078.0 US 20.00 Special cash dividend is proposed 09/21/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,089.0 US 110.00 Offer extended to 10/13; 8.1 mil shares tendered 09/25/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 5,089.0 US 110.00 Report that McCaw will raise bid by 9/29;LIN has no comment
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 28
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 10/10/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 2,750.0 US 125.00 New offer is launched for 22 mil shares 10/10/89 LIN Bdcstg(McCaw Cellular) Seeking Buyer - - Search for buyer is announced - 10/16/89 BellSouth Corp-Cellular Ops LIN Bdcstg(McCaw Cellular) - - BellSouth to revise its bid - 10/16/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 2,750.0 US 125.00 LIN asks holders not to tender shares in McCaw's new offer 10/19/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 2,750.0 US 125.00 Sends letter to LIN to clarify offer and Private Guarantee 10/20/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 2,750.0 US 125.00 McCaw receives commitments from three major banks 10/25/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 2,750.0 US 125.00 SEC mandates offer's extension due to insufficient financing 10/26/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 2,750.0 US 125.00 FCC upholds approvals issued in August 1989 for acquisition 10/27/89 BellSouth Corp-Cellular Ops LIN Bdcstg(McCaw Cellular) - - Definitive agreement is amended 10/27/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 2,750.0 US 125.00 Offer is extended to 11/17/89; 10.5 mil shares tendered 10/27/89 LIN Bdcstg(McCaw Cellular) LIN Bdcstg(McCaw Cellular) 2,300.0 US 42.00 Special cash dividend is increased to $42 per share 11/06/89 BellSouth Corp-Cellular Ops LIN Bdcstg(McCaw Cellular) - - Hart-Scott-Rodino expires; holder meeting 12/89 or 1/90 11/14/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 2,750.0 US 125.00 Receives commitments for full amount of $3 bil bank facility 11/16/89 BellSouth Corp-Cellular Ops LIN Bdcstg(McCaw Cellular) - - Stockholder meeting to vote on merger set for 1/12/90 11/16/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 2,750.0 US 125.00 Says offer cannot continue unless conditions are met 11/17/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,814.7 US 150.00 Bid is sweetened to $3.8 bil; McCaw now owns 5.1 mil shs 11/20/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,814.7 US 150.00 Tender offer is launched for 22.5 mil shares 11/27/89 BellSouth Corp-Cellular Ops LIN Bdcstg(McCaw Cellular) - - BellSouth board adopts a shareholder rights plan 11/28/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 7,575.0 US - Proposes sweetened bid which includes special cash dividend 12/01/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 Offer is revised and is to be reviewed by LIN 12/04/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 LIN accepts offer and requests BellSouth to terminate accord 12/11/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 Definitive agreement is announced 12/11/89 BellSouth Corp-Cellular Ops LIN Bdcstg(McCaw Cellular) - - BellSouth terminates accord;To receive termination fee 12/11/89 LIN Bdcstg(McCaw Cellular) LIN Bdcstg(McCaw Cellular) 2,300.0 US 42.00 Special dividend is withdrawn; Offer extends to 1/16/90 12/14/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 McCaw's advisor fees are detailed 12/28/89 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 US Court of Appeals dismisses BellSouth's appeal of merger 01/04/90 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 LIN chairman, Pels, to receive $200 mil for 1.3 mil options 01/09/90 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 Offer is extended until 2/27; 13.8 mil shares are tendered 02/01/90 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 Definitive credit agreement is reached with agent banks 02/05/90 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 Receives commitment to provide interim financing by Citibank 02/26/90 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 Offer extends to 3/2/90; talks completed for credit accord
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 29
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 03/01/90 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 Executes $600 mil credit agreement 03/02/90 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 McCaw wins $3 bil bank financing for offer 03/02/90 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 Bankers call off controlled selldown of $1 bil of loan 03/05/90 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 Tender offer is completed; McCaw now holds 51% of LIN 03/13/90 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 Proration factor for tender offer is set at 47.4367% 03/30/90 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 McCaw to have around $3.1 bil long-term debt 04/03/90 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc 3,988.0 US 154.11 McCaw disperses common dividend to LIN holders 04/30/93 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun Inc - - Analysts estimate LIN buyout value for 1995 02/16/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) - - AT&T and LIN differ widely on market valuation of LIN 02/21/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) - - AT&T and LIN select Wasserstein to appraise LIN 02/28/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) - - Lin shldr files suit against AT&T relating to valuation 03/06/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) - - Third valuation opinion is expected tomorrow 03/07/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) - - Wasserstein sets market value of LIN shares at $127.5 per sh 03/08/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) - - Analysts expect AT&T to acquire remaining LIN shares 04/07/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) 3,262.0 US 127.50 Agreement to acquire remaining 48% is disclosed 04/18/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) 3,262.0 US 127.50 LIN reports positive first quarter results 04/28/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) 3,262.0 US 127.50 LIN board of directors approves merger 06/22/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) 3,262.0 US 127.50 Shareholder meeting is expected to be in Aug or Sept 06/23/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) 3,313.1 US 129.50 Terms are amended due to settlement of lawsuit 07/10/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) 3,313.1 US 129.50 LIN shlder meeting to be set up after SEC review completion 10/03/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) 3,323.4 US 129.90 Acquisition of remaining 48% stake is completed 10/03/95 LIN Bdcstg(McCaw Cellular) Seeking Buyer - - Plans to consider search for buyer are terminated 10/03/95 LIN Bdcstg(McCaw Cellular) McCaw Cellular Commun(AT&T) 3,209.4 US 129.90 Acquisition of remaining 48% stake is completed ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 30 Date Announced: 05/03/95 Date Effective: 06/07/95 Date Unconditional: 06/07/95 Status: Completed Target Name: Acquiror Name: Synopsis: Sogerap(Societe Nationale Elf Societe Nationale Elf Societe Nationale Elf Aquitaine completed its tender offer and acquired the remaining .26%, or 13,608 ordinary shares, Location: Location: of Sogerap for 645 French francs ($131.62 US) per share, or France France a total of 8.4 mil francs ($1.7 mil). Business Description: Business Description: Oil and gas exploration and Oil and gas exploration and production; real estate production; manufacture development and investment petroleum products, chemicals, firm; holding company health care products and perfumes SIC Codes: SIC Codes: 1311 6552 6799 6719 1311 2999 2899 2844 Ticker Symbol: Ticker Symbol: - ELF Advisors: Advisors: FINANCIAL DATA (mil): FFR Date of LTM Fin. 12/31/93 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 --------- --------- --------- --------- --------- --------- Rank Value(2) : 8.4 FFR Attitude :Friendly Net Sales 246.3 246.3 160.2 - - - Value (1) : 8.4 FFR Defensive Pre-Tax Inc. 88.6 88.6 102.5 - - - Price/Share : 645.00 Tactics : Not Applicable Net Income 209.7 209.7 122.3 - - - Shares Out(mil) : 5.03 EPS 23.80 23.80 24.33 - - - Assets 3,945.6 3,945.6 2,078.5 - - - Net Assets 3,778.9 3,778.9 1,987.1 - - - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : 27.101 Cash & Marketable Securities (mil): 0.7 Book Value/Share: 428.92 Long-Term Liabilities (mil) : - Price/Book : 1.50
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 31 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 05/03/95 Sogerap Soc Nationale Elf Aquitaine 8.4 FFR 645.00 Tender offer for remaining .26% is launched 06/07/95 Sogerap Soc Nationale Elf Aquitaine 8.4 FFR 645.00 Acquisition of remaining .26% stake is completed ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 32 Date Announced: 05/18/95 Date Effective: 10/09/95 Date Unconditional: 10/09/95 Status: Completed Target Name: Acquiror Name: Synopsis: Service Corp International Service Corp International Service Corp International (SCI) acquired the remaining 31% stake it did not already own in its Service Corp Location: Location: International (Canada) subsidiary by purchasing 3.145 mil Canada Texas common shares for 22.75 Canadian dollars ($16.7 US) in cash per share, or a total value of C$71.547 mil ($52.52 mil). Business Description: Business Description: Originally, SCI offered C$21.50 ($15.8) in cash per share. Provide funeral home services Own and operate funeral homes, cemeteries, and flower shops; manufacture and wholesale caskets and related components SIC Codes: SIC Codes: 7261 7261 6553 5992 3995 5087 Ticker Symbol: Ticker Symbol: SVK SRV Advisors: Advisors: Richardson Greenshields Ca Ltd JP Morgan & Co. Inc. RBC Dominion Securities FINANCIAL DATA (mil): C Date of LTM Fin. 12/31/93 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 --------- --------- --------- --------- --------- --------- Rank Value(2) : 71.5 C Attitude :Friendly Net Sales 42.5 42.5 40.4 37.0 34.2 28.8 Value (1) : 71.5 C Defensive Pre-Tax Inc. 14.1 14.1 12.5 11.1 9.3 8.1 Price/Share : 22.75 Tactics : Not Applicable Net Income 8.2 8.2 7.4 6.6 5.3 4.7 Shares Out(mil) : 10.14 EPS - - - - - - Assets 95.6 95.6 90.3 80.9 74.7 69.6 Net Assets 55.5 55.5 46.3 43.6 37.4 32.1 Techniques: Litigation: No Not Applicable Outcome : P/E Ratio : 28.077 Cash & Marketable Securities (mil): 0.9 Book Value/Share: 5.47 Long-Term Liabilities (mil) : - Price/Book : 4.16
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 33 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 05/18/95 Service Corp International(CA) Service Corp International 67.6 C 21.50 Plans to acquire remaining 31% stake are disclosed 07/13/95 Service Corp International(CA) Service Corp International 71.5 C 22.75 Agreement to acquire remaining 31% stake is disclosed 07/20/95 Service Corp International(CA) Service Corp International 71.5 C 22.75 Boards of both firms approve transaction 10/09/95 Service Corp International(CA) Service Corp International 71.5 C 22.75 Acquisition of remaining 31% is completed ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 34 Date Announced: 05/19/95 Date Effective: 12/06/95 Status: Completed Target Name: Acquiror Name: Synopsis: BIC Corp(BIC SA) BIC SA BIC acquired the remaining 22.28% stake it did not already own in BIC Corp for an amended $40.50 in cash per share, or Location: Location: a total value of $212.625 mil. BIC had originally offered Connecticut France $36.50 in cash per share, or a total value of $191.625 mil. The transaction had been subject to regulatory approval. Business Description: Business Description: Manufacture writing Manufacture pens, disposable instruments, disposable lighters and windsurfing lighters, shavers and boards sailboards SIC Codes: SIC Codes: 3951 3089 3421 3952 3951 3952 3999 3949 Ticker Symbol: Ticker Symbol: BIC BICP Advisors: Advisors: Goldman, Sachs & Co. Donaldson, Lufkin & Jenrette FINANCIAL DATA (mil): US Date of LTM Fin. 01/01/95 01/01/95 01/01/94 01/01/93 01/01/92 01/01/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 212.6 US Attitude :Friendly Net Sales 475.1 475.1 439.3 417.4 369.2 329.2 Value (1) : 212.6 US Defensive Net Income 51.6 51.6 44.8 39.9 27.0 22.4 Price/Share : 40.50 Tactics : Not Applicable EPS 2.192 2.192 1.901 1.695 1.122 0.925 Shares Out(mil) : 23.56 Assets 358.7 358.7 336.2 308.5 280.2 257.1 Cash Flow 111.0 111.0 90.6 80.8 58.7 51.4 Techniques: Litigation: No Not Applicable Outcome : Stock Premiums -------------- 1 Day Prior : +13.3 P/E Ratio : 18.476 Cash & Marketable Securities (mil): 48.1 1 Week Prior : +12.5 Book Value/Share: 10.52 Short-Term Debt (mil) : - 4 Weeks Prior: +28.6 Price/Book : 3.85 Long-Term Debt (mil) : -
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 35 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 05/19/95 BIC Corp(BIC SA) BIC SA 191.6 US 36.50 Plans to acquire remaining 22% stake are disclosed 05/23/95 BIC Corp(BIC SA) BIC SA 191.6 US 36.50 Bic board of directors forms committee to evaluate offer 08/16/95 BIC Corp(BIC SA) BIC SA 212.6 US 40.50 Definitive agreement to acquire stake is disclosed 11/02/95 BIC Corp(BIC SA) BIC SA 212.6 US 40.50 Bic's shareholders will vote on merger Dec 6 12/06/95 BIC Corp(BIC SA) BIC SA 212.6 US 40.50 Bic's shareholders approve merger; merger is completed ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 36 Date Announced: 06/19/95 Date Effective: 08/09/95 Date Unconditional: 08/09/95 Status: Completed Target Name: Acquiror Name: Synopsis: Cie Immobiliere Phenix Cie Generale des Eaux SA{CGE} Cie Generale des Eaux completed its tender offer to acquire the remaining .87% of its Cie Immobiliere Phenix unit at 65 Location: Location: French francs ($13.5 US) per ordinary share, and 159.9 France France francs ($33.16) per convertible bond, for a total of 14.4 mil francs ($2.99 mil). Business Description: Business Description: Real estate development firm Water utility; electric utility; provide cable television services SIC Codes: SIC Codes: 6552 4941 4841 4911 Ticker Symbol: Ticker Symbol: PHEP EAUG Advisors: Advisors: Lazard Freres & Compagnie FINANCIAL DATA (mil): FFR Date of LTM Fin. 12/31/93 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 --------- --------- --------- --------- --------- --------- Rank Value(2) : 14.4 FFR Attitude :Friendly Net Sales 4,775.9 4,775.9 4,994.0 3,297.3 2,872.0 2,188.7 Value (1) : 14.4 FFR Defensive Pre-Tax Inc. 6.4 6.4 308.0 209.3 43.2 18.8 Price/Share : 65.00 Tactics : Not Applicable Net Income -144.2 -144.2 136.6 254.3 118.3 15.1 Shares Out(mil) : 25.50 EPS -5.65 -5.65 5.36 12.13 5.65 2.29 Assets 18,240.4 18,240.4 16,249.3 11,771.2 7,533.9 2,660.5 Net Assets 2,036.6 2,036.6 2,235.2 1,336.8 1,090.0 250.2 Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : Cash & Marketable Securities (mil): 602.6 Book Value/Share: 78.67 Long-Term Liabilities (mil) : - Price/Book : 0.83
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 37 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 06/19/95 Cie Immobiliere Phenix Cie Generale des Eaux SA - - Tender offer for remaining .87% is intended 07/06/95 Cie Immobiliere Phenix Cie Generale des Eaux SA 14.4 FFR 65.00 Terms are disclosed - 07/19/95 Cie Immobiliere Phenix Cie Generale des Eaux SA 14.4 FFR 65.00 Tender offer will run from July 20 to August 4, 1995 07/20/95 Cie Immobiliere Phenix Cie Generale des Eaux SA 14.4 FFR 65.00 Tender offer is launched - 08/09/95 Cie Immobiliere Phenix Cie Generale des Eaux SA 14.4 FFR 65.00 Tender is completed; will be compulsorily delisted ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 38 Date Announced: 07/06/95 Date Effective: 07/31/95 Date Unconditional: 07/31/95 Status: Completed Target Name: Acquiror Name: Synopsis: Epargne de France Commercial Union France SA Commercial Union France, a unit of Commercial Union's Commercial Union Assurance subsidiary, acquired the Location: Location: remaining .43% stake, or 6,312 ordinary shares, in Epargne France France de France for an estimated total of 5.51 mil francs ($1.14 mil) through a tender offer. Consideration consisted of 873 Business Description: Business Description: French francs ($181.06 US) per ordinary share and 779 francs Life insurance company Insurance company ($161.5) per investment certificate. SIC Codes: SIC Codes: 6311 6311 6321 6331 6351 Ticker Symbol: Ticker Symbol: - CUAC Advisors: Advisors: FINANCIAL DATA (mil): - Date of LTM Fin. --------- --------- --------- --------- --------- --------- Rank Value(2) : 5.5 FFR Attitude :Friendly Net Sales - - - - - - Value (1) : 5.5 FFR Defensive Pre-Tax Inc. - - - - - - Price/Share : 873.00 Tactics : Not Applicable Net Income - - - - - - Shares Out(mil) : 1.47 EPS - - - - - - Assets - - - - - - Net Assets - - - - - - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : Cash & Marketable Securities (mil): - Book Value/Share: - Long-Term Liabilities (mil) : - Price/Book :
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 39 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 07/06/95 Epargne de France Commercial Union France SA - - Tender offer to acquire remaining .43% is planned 07/18/95 Epargne de France Commercial Union France SA - - Tender offer to acquire remaining .43% is launched 07/31/95 Epargne de France Commercial Union France SA - - Tender is completed; compuls. delisting commences ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 40 Date Announced: 07/06/95 Date Effective: 11/30/95 Status: Completed Target Name: Acquiror Name: Synopsis: Grand Gaming Corp Grand Casinos Inc Grand Casinos (GC) acquired the remaining 7.2 mil shares, or 22.2%, of Grand Gaming (GG) which it did not already own in Location: Location: a stock swap valued at $36.486 mil. Each GG common Unknown Minnesota shareholder received .1397 GC common share for each share held. Based on GC's closing stock price of $36.25 on Jul 5, Business Description: Business Description: the last full trading day prior to the announcement, each GG Own and operate casinos Own and operate casinos; share was valued at $5.06. Of the shares GC owned prior to provide heavy construction the transaction, 38.9% were directly owned by GC and 38.9% services were owned by Gaming Corp of America, which GC concurrently acquired. SIC Codes: SIC Codes: 7011 7999 7011 7993 7999 1629 Ticker Symbol: Ticker Symbol: GGCC GRND Advisors: Advisors: Donaldson, Lufkin & Jenrette FINANCIAL DATA (mil): US Date of LTM Fin. 03/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 --------- --------- --------- --------- --------- --------- Rank Value(2) : 36.5 US Attitude :Friendly Net Sales - - - - - - Value (1) : 36.5 US Defensive Net Income -1.9 -1.9 -.7 - - - Price/Share : 5.06 Tactics : Not Applicable EPS -.06 -.07 -.03 - - - Shares Out(mil) : 32.48 Assets 84.7 80.9 39.1 - - - Cash Flow - - - - - - Techniques: Litigation: No Stock Swap Outcome : Stock Premiums -------------- 1 Day Prior : +34.9 P/E Ratio : Cash & Marketable Securities (mil): 0.1 1 Week Prior : +34.9 Book Value/Share: 1.59 Short-Term Debt (mil) : 18.7 4 Weeks Prior: +55.7 Price/Book : 3.18 Long-Term Debt (mil) : - Summary of Related Transactions Transaction Type Date Status Participant(s) Merger 07/06/95 Completed Gaming Corp of America / Grand Casinos Inc
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 41 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 07/06/95 Grand Gaming Corp Grand Casinos Inc 36.5 US 5.06 Signed letter of intent to acquire remaining 22.2% stake 07/06/95 Gaming Corp of America Grand Casinos Inc 139.2 US 7.20 Signed letter of intent to merge is disclosed 08/31/95 Gaming Corp of America Grand Casinos Inc 139.2 US 7.20 Definitive stock swap merger agreement is disclosed 08/31/95 Grand Gaming Corp Grand Casinos Inc 36.5 US 5.06 Definitive agreement to acquire remaining 22% stake 11/30/95 Grand Gaming Corp Grand Casinos Inc 36.5 US 5.06 Acquisition of remaining 22.2% stake is completed 11/30/95 Gaming Corp of America Grand Casinos Inc 139.2 US 7.20 Stock swap merger is completed - ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 42 Date Announced: 07/14/95 Date Effective: 12/11/95 Status: Completed Target Name: Acquiror Name: Synopsis: REN Corp-USA(COBE Laboratories COBE Laboratories Inc(Gambro COBE Laboratories, a majority-held unit of Gambro, acquired the remaining 47% of REN Corp-USA (REN) it did not already Location: Location: own in a transaction valued at $182.09 mil. Earlier, COBE Tennessee Colorado had completed its tender offer to acquire the remaining 8.88 mil common shares of REN for an amended $20 in cash per Business Description: Business Description: share, or a total value of $177.7 mil, by accepting Own and operate kidney Manufacture medical equipment, 8,355,796 shares, or a 44.16% interest in REN, raising dialysis centers cardiovascular and therapeutic COBE's interest in REN to 97%. Originally, COBE had offered plasma exchange products $18 in cash per REN share held. SIC Codes: SIC Codes: 8092 3841 3825 3845 2834 Ticker Symbol: Ticker Symbol: RENL COBE Advisors: Advisors: Alex. Brown & Sons UBS Securities FINANCIAL DATA (mil): US Date of LTM Fin. 03/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 --------- --------- --------- --------- --------- --------- Rank Value(2) : 182.1 US Attitude :Friendly Net Sales 140.1 131.8 105.2 80.8 53.9 36.9 Value (1) : 182.1 US Defensive Net Income 10.3 8.5 -3.8 5.4 2.6 -3.7 Price/Share : 20.00 Tactics : Not Applicable EPS 0.535 0.45 -.20 0.37 0.239 -.419 Shares Out(mil) : 19.44 Assets 150.1 134.3 126.1 121.8 106.8 53.1 Cash Flow 29.3 26.0 4.8 17.4 11.8 3.9 Techniques: Litigation: No Tender Offer Outcome : Tender/Merger Stock Premiums -------------- 1 Day Prior : +27.0 P/E Ratio : 37.383 Cash & Marketable Securities (mil): 1.8 1 Week Prior : +20.3 Book Value/Share: 6.22 Short-Term Debt (mil) : 0.1 4 Weeks Prior: +26.0 Price/Book : 3.21 Long-Term Debt (mil) : 7.3
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 43 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 07/14/95 REN Corp-USA(COBE Labs Inc) COBE Laboratories(Gambro AB) 160.0 US 18.00 Offer to acquire remaining 47% interest is disclosed 08/08/95 REN Corp-USA(COBE Labs Inc) COBE Laboratories(Gambro AB) 160.0 US 18.00 Gambro set up special committee to evaluate offer 09/13/95 REN Corp-USA(COBE Labs Inc) COBE Laboratories(Gambro AB) 177.7 US 20.00 Definitive agreement to launch tender offer; terms amended 09/19/95 REN Corp-USA(COBE Labs Inc) COBE Laboratories(Gambro AB) 177.7 US 20.00 Tender offer is launched - 10/18/95 REN Corp-USA(COBE Labs Inc) COBE Laboratories(Gambro AB) 177.7 US 20.00 Tender offer is completed; 8.355 mil shs tendered 12/11/95 REN Corp-USA(COBE Labs Inc) COBE Laboratories(Gambro AB) 177.7 US 20.00 Acquisition is completed - ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 44 Date Announced: 07/20/95 Date Effective: 12/04/95 Date Unconditional: 12/04/95 Status: Completed Target Name: Acquiror Name: Synopsis: BTR Nylex Ltd(BTR PLC) BTR PLC BTR acquired the remaining 37.4% in BTR Nylex for 4.48 bil Australian dollars ($3.29 bil US) via a tender offer. Location: Location: Consideration consisted of AU$180 ($132.3) in cash plus 27 Australia United Kingdom BTR ordinary A shares, which were convertible to standard ordinary shares at the ratio of 1-to-1, for every 100 BTR Business Description: Business Description: Nylex ordinary shares. BTR offered an all cash alternative Manufacture rubber and Manufacture plastic, rubber, of AU$3.60 ($2.65) per ordinary BTR Nylex share. Word of the plastics hose and belting, electrical products and takeover offer began as a rumor in the press. fabricated rubber products, industrial machinery; provide and coated fabrics; own and commercial printing services; operate broadwoven fabric construct industrial mills; holding company buildings; wholesale construction materials; holding company SIC Codes: SIC Codes: 3052 3069 2295 2221 6719 3089 3052 2759 2752 3699 3694 3569 1541 5039 6719 Ticker Symbol: Ticker Symbol: BTR BTRX Advisors: Advisors: Schroders Australia BZW/Barclays PLC Cazenove FINANCIAL DATA (mil): AU Date of LTM Fin. 12/31/94 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 --------- --------- --------- --------- --------- --------- Rank Value(2) : 4,480.0 AU Attitude :Friendly Net Sales 6,675.1 6,675.1 6,213.9 5,733.0 4,946.0 4,837.0 Value (1) : 4,480.0 AU Defensive Pre-Tax Inc. 869.3 869.3 689.1 670.9 516.6 728.5 Price/Share : 3.60 Tactics : Not Applicable Net Income 577.3 577.3 441.8 - - - Shares Out(mil) : 3,363.36 EPS 0.176 0.176 0.152 0.15 0.12 0.20 Assets 8,684.1 8,684.1 8,784.1 8,481.9 7,700.9 6,174.9 Net Assets 5,636.7 5,636.7 4,728.5 - - 9.0 Techniques: Litigation: No Tender Offer Outcome : P/E Ratio : 20.455 Cash & Marketable Securities (mil): 516.4 Book Value/Share: 1.94 Long-Term Liabilities (mil) : - Price/Book : 1.86
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 45 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 07/20/95 BTR Nylex Ltd(BTR PLC) BTR PLC - - Plans to launch tender offer for 37.4% stake are rumored 07/21/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 Details of tender offer are disclosed 07/24/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 BTR Nylex board recommends offer 07/25/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 Nylex's shares take a leap - 07/26/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 Nylex is still considering the offer 07/31/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 Schroders Australia is appointed as advisor 08/17/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 Schroders' expert report to be considered by BTR Nylex in Sep 09/05/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 BTR Nylex is expected to be removed from bourse by yearend 10/13/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 Tender offer is officially launched 10/14/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 Schroders says bid in the best interest of Nylex sh holders 11/13/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 Sh holder meeting scheduled for November 23 11/24/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 BTR Nylex shareholders have approved the takeover bid 12/04/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 Tender offer is completed - 12/17/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 15,000 shareholders elected to take 200 mil new BTR 'A' shs 12/19/95 BTR Nylex Ltd(BTR PLC) BTR PLC 4,480.0 AU 3.60 Nylex chairman Alan Jackson delighted with merger results ----------------------------------------------------------------------------------------------------------------------------------
Footnotes: (1) Transaction Value in millions (not including net debt of Target) (2) Transaction Value in millions (including net debt of Target) Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 46
Date Announced: 07/25/95 Date Effective: 08/10/95 Date Unconditional: 08/10/95 Status: Completed Target Name: Acquiror Name: Synopsis: Waterman(Gillette Co) Gillette Co Gillette acquired the remaining 4.2% stake, or 18,438 ordinary shares in Waterman at 2600 French francs ($537.7 Location: Location: US) per share, for a total of 47.9 mil francs ($9.9 mil). France Massachusetts Business Description: Business Description: Manufacture writing Manufacture shaving razors and instruments razor blades, toiletries, writing instruments, electric razors and small appliances SIC Codes: SIC Codes: 3952 3951 3955 3999 3421 2844 3951 3634 5122 5112 Ticker Symbol: Ticker Symbol: WATE G Advisors: Advisors: Lazard Freres & Compagnie FINANCIAL DATA (mil): FFR Date of LTM Fin. 11/30/92 11/30/92 11/30/91 11/30/90 11/30/89 11/30/88 --------- --------- --------- --------- --------- --------- Rank Value(2) : 47.9 FFR Attitude :Friendly Net Sales 695.9 695.9 689.7 602.4 642.3 - Value (1) : 47.9 FFR Defensive Pre-Tax Inc. 210.8 210.8 155.8 147.8 136.9 - Price/Share : 2600.00 Tactics : Not Applicable Net Income 103.0 103.0 70.4 68.5 50.1 - Shares Out(mil) : 0.44 EPS - - - - - - Assets 646.5 646.5 596.0 517.6 421.6 - Net Assets 439.5 439.5 336.6 266.2 207.7 - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : 11.074 Cash & Marketable Securities (mil): 6.7 Book Value/Share: 1252.3 Long-Term Liabilities (mil) : - Price/Book : 2.08 Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 07/25/95 Waterman(Gillette Co) Gillette Co 47.9 FFR 2600.0 Tender offer for remaining 4.2% stake is launched 08/10/95 Waterman(Gillette Co) Gillette Co 47.9 FFR 2600.0 Tender offer is complete; compulsory delisting begins ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 08/11/95 Date Effective: 02/09/96 Date Unconditional: 02/09/96 Status: Completed Target Name: Acquiror Name: Synopsis: Homestake Gold of Australia Homestake Mining Co Homestake Mining (HM) acquired the remaining 18.5% stake in Homestake Gold of Australia (HGA) for 218.27 mil Australian Location: Location: dollars ($162.17 mil US) via a tender offer. HM offered Australia California shareholders a choice of 1 new common share for every 11.2 shares held or AU$1.9 ($1.41) in cash per share. The stock Business Description: Business Description: swap offer, based on HM's closing stock price of AU$22.37 Gold mining company Gold, silver, copper, lead ($16.625) on Aug 10, the last full trading day prior to the and uranium mining; oil and announcement, valued each HGA share at AU$1.99 ($1.48). gas exploration and production SIC Codes: SIC Codes: 1041 1041 1031 1044 1094 1021 1311 Ticker Symbol: Ticker Symbol: HSG HM Advisors: Advisors: N. M. Rothschild & Sons (AU) Baring Brothers Burrows Macquarie Bank FINANCIAL DATA (mil): AU Date of LTM Fin. 12/31/94 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 --------- --------- --------- --------- --------- --------- Rank Value(2) : 218.3 AU Attitude :Friendly Net Sales 184.0 184.0 175.6 - - - Value (1) : 218.3 AU Defensive Pre-Tax Inc. 38.5 38.5 27.4 - - - Alternative : 208.0 Tactics : Not Applicable Net Income 34.8 34.8 27.4 - - - Price/Share : 1.99 EPS 0.059 0.059 0.046 - - - Alternative : 1.90 Assets 255.4 255.4 245.4 - - - Shares Out(mil) : 591.86 Net Assets 176.5 176.5 141.6 - - - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger Stock Swap P/E Ratio : 33.729 Cash & Marketable Securities (mil): 53.4 Book Value/Share: 0.30 Long-Term Liabilities (mil) : - Price/Book : 6.68 Summary of Related Transactions Transaction Type Date Status Participant(s) Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 08/11/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Intentions to launch tender offer for 18.5% are disclosed 08/14/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Formal offer will be launched within 60 days 08/24/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Homestake to apply for listing on ASE before bid is launched 08/25/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Homestake will register the shares it expects to issue 08/28/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Tender offer is launched - 09/21/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 AFRB approves bid;HM removes all conditions attached to bid 10/13/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Homestake has served the Part A document to Homestake Gold 10/19/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Independent report finds that bid is fair and reasonable 10/27/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Homestake Gold recommends shholders accept takeover bid 10/31/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Advisor, Rothschild Australia, calls bid fair and reasonable 11/01/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Homestake Gold recommends both the cash & the share offer 11/02/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Market value of scrip offer is low due to market volatility 11/08/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Scrip offer valued at AU$1.80; cash alternative is AU$1.90 11/24/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Share splitting scheme stands in the way of compulsory bid 11/29/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Offer extended to Dec 22; acceptances of 10.1 mil shares 12/13/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 HM to acquire Kalgoorlie's Super Pit as part of acqn 12/21/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Offer extended to Jan 12; accepantances of 25 mil shs 12/22/95 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 ASC rules that share-spliting scheme not legal 01/12/96 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Offer extended to Jan 25;HM now entitled to 98.02% of HG 01/25/96 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Offer extended to Feb 9; HM now entitled to 98.11% of HG 02/01/96 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Move to compulsory acqn on 2/9 after comp;HM entitled 98.3% 02/09/96 Homestake Gold of Australia Homestake Mining Co 218.3 AU 1.99 Offer closed,tender offer is completed for compulsory offer ----------------------------------------------------------------------------------------------------------------------------------
[notes: (1) Transaction Value in millions (not including net debt of Target) (2) Transaction Value in millions (including net debt of Target)
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 08/23/95 Date Effective: Status: Withdrawn Target Name: Acquiror Name: Synopsis: Roto-Rooter Inc(Chemed Corp) Chemed Corp Chemed withdrew its unsolicited offer to acquire the Roto-Rooter Inc(Chemed Corp) remaining 41% interest it did not already own in Roto-Rooter Location: Location: in a stock swap transaction. Ohio Ohio Business Description: Business Description: Provide plumbing services; Manufacture industrial manufactures related equipment chemicals, water and waste and consumer products treatment chemicals, soap, detergents, and janitorial equipment and supplies; provide residential sewer and drain cleaning services SIC Codes: SIC Codes: 7699 3589 2842 6794 2819 2899 2841 2842 7699 4952 Ticker Symbol: Ticker Symbol: ROTO CHE Advisors: Advisors: FINANCIAL DATA (mil): - Date of LTM Fin. --------- --------- --------- --------- --------- --------- Rank Value(2) : - Attitude :Hostile Net Sales - - - - - - Value (1) : - Defensive Net Income - - - - - - Price/Share : - Tactics : Not Applicable EPS - - - - - - Shares Out(mil) : 5.10 Assets - - - - - - Cash Flow - - - - - - Techniques: Litigation: No Stock Swap Outcome : Remained Independent Stock Premiums -------------- 1 Day Prior : P/E Ratio : Cash & Marketable Securities (mil): - 1 Week Prior : Book Value/Share: - Short-Term Debt (mil) : - 4 Weeks Prior: Price/Book : Long-Term Debt (mil) : -
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 08/23/95 Roto-Rooter Inc(Chemed Corp) Chemed Corp - - Unsolicited offer to acquire remaining 41% is disclosed 08/24/95 Roto-Rooter Inc(Chemed Corp) Chemed Corp - - Offer is rejected - 08/31/95 Roto-Rooter Inc(Chemed Corp) Chemed Corp - - Offer is withdrawn - ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 08/24/95 Date Effective: 01/17/96 Date Unconditional: 12/22/95 Status: Completed Target Name: Acquiror Name: Synopsis: AIDC Ltd(Australian Industry Australian Industrial State-owned Australian Industry Development completed its amended unconditional tender offer to acquire the remaining Location: Location: 19.4% stake, or 26,991,802 ordinary shares, in AIDC that it Australia Australia did not already own at 2.1 Australian dollars ($1.57 US) per share, or a total of AU$56.68 mil ($42.49 mil). The offer Business Description: Business Description: was originally launched at AU$2.2 ($1.65) per share, or a Investment bank National development agency total of AU$59.38 mil ($44.51 mil). The terms were amended to reflect a 10 cents dividend payment. Previously, the government withdrew its intentions to split off its 80.6% in SIC Codes: SIC Codes: AIDC to the public. 6211 999B 9532 Ticker Symbol: Ticker Symbol: - - Advisors: Advisors: Grant Samuel and Associates Baring Brothers Burrows Ernst & Young Securities FINANCIAL DATA (mil): AU Date of LTM Fin. 06/30/95 06/30/95 06/30/94 06/30/93 06/30/92 06/30/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 56.7 AU Attitude :Friendly Net Sales 303.8 303.8 216.2 - - - Value (1) : 56.7 AU Defensive Pre-Tax Inc. 25.0 25.0 50.0 - - - Price/Share : 2.10 Tactics : Not Applicable Net Income 28.8 28.8 48.3 - - - Shares Out(mil) : 139.13 EPS 0.21 0.21 0.35 - - - Assets 3,540.5 3,540.5 3,472.3 - - 1.0 Net Assets 220.5 220.5 221.3 - - - Techniques: Litigation: No Going Private Outcome : Tender Offer Tender/Merger P/E Ratio : 10.000 Cash & Marketable Securities (mil): 6.3 Book Value/Share: 1.59 Long-Term Liabilities (mil) : - Price/Book : 1.33 Summary of Related Transactions Transaction Type Date Status Participant(s) Acq. Maj. Int. 10/15/93 Intent W AIDC Ltd(AU Industry Dvlp Cor) / Investors - ------------------------------------------------------------------------------------------------------------------------------------ Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 10/15/93 AIDC Ltd(AU Industry Dvlp Cor) Investors - - Plans to divest 30% stake are disclosed 10/21/93 AIDC Ltd(AU Industry Dvlp Cor) Investors - - Privatization may occur as early as December 1993 11/25/93 AIDC Ltd(AU Industry Dvlp Cor) Investors - - Privatization is expected to occur in the 1st quarter, 1994 03/28/94 AIDC Ltd(AU Industry Dvlp Cor) Investors - - Privatization of 30% stake may be delayed beyond fiscal year 04/06/94 AIDC Ltd(AU Industry Dvlp Cor) Investors - - Government is to weigh options for privatization of stake 04/27/94 AIDC Ltd(AU Industry Dvlp Cor) Investors - - Government decides to privatze all of its remaining 80.6% 04/28/94 AIDC Ltd(AU Industry Dvlp Cor) Investors - - Defence Dept is concerned as to natnl security implications 12/23/94 AIDC Ltd(AU Industry Dvlp Cor) Investors - - Baring Brothers advises government not to sell 01/19/95 AIDC Ltd(AU Industry Dvlp Cor) Investors - - Plans to divest only 30% instead of 81% are rumored 01/20/95 AIDC Ltd(AU Industry Dvlp Cor) Investors - - Govt is believed to revert back to original plan of 30% 05/04/95 AIDC Ltd(AU Industry Dvlp Cor) Investors - - Low profits may delay divestment of interest 08/22/95 AIDC Ltd(AU Industry Dvlp Cor) Investors - - Govt may abandon sale of 80%, may buyback 20% instead 08/24/95 AIDC Ltd(AU Industry Dvlp Cor) Investors - - Splitoff intentions are withdrawn 08/24/95 AIDC Ltd(AU Industry Dvlp Cor) Australian Industrial Dvlp 59.4 AU 2.20 Intentions to launch offer for remaining 19.4% interest 08/25/95 AIDC Ltd(AU Industry Dvlp Cor) Australian Industrial Dvlp 59.4 AU 2.20 Tender offer for remaining 19.4% interest is launched 10/04/95 AIDC Ltd(AU Industry Dvlp Cor) Australian Industrial Dvlp 59.4 AU 2.20 Part A offer documents should be lodged early next week 10/23/95 AIDC Ltd(AU Industry Dvlp Cor) Australian Industrial Dvlp 56.7 AU 2.10 Terms are amended to reflect 10 cent dividend payment 11/17/95 AIDC Ltd(AU Industry Dvlp Cor) Australian Industrial Dvlp 56.7 AU 2.10 Minority sh holders attacked govt's offer as absurdly low 11/28/95 AIDC Ltd(AU Industry Dvlp Cor) Australian Industrial Dvlp 56.7 AU 2.10 Acceptances for 5.57% of outstanding shs are received 11/29/95 AIDC Ltd(AU Industry Dvlp Cor) Australian Industrial Dvlp 56.7 AU 2.10 Acceptances for 7.79% of outstanding shs are received 12/05/95 AIDC Ltd(AU Industry Dvlp Cor) Australian Industrial Dvlp 56.7 AU 2.10 Acceptances for 90.9% of outstanding shs are received 12/11/95 AIDC Ltd(AU Industry Dvlp Cor) Australian Industrial Dvlp 56.7 AU 2.10 Australian Industry extends deadline to 1/16/96 12/22/95 AIDC Ltd(AU Industry Dvlp Cor) Australian Industrial Dvlp 56.7 AU 2.10 Acceptances received for 96.56%; bid is unconditional 01/15/96 AIDC Ltd(AU Industry Dvlp Cor) Australian Industrial Dvlp 56.7 AU 2.10 AIDC now entitled to 99%; compulsory acquisition likely 01/17/96 AIDC Ltd(AU Industry Dvlp Cor) Australian Industrial Dvlp 56.7 AU 2.10 Offer completed;entitled to 99.3%; compulsory begins - ------------------------------------------------------------------------------------------------------------------------------------ Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 08/25/95 Date Effective: 01/02/96 Status: Completed Target Name: Acquiror Name: Synopsis: GEICO Corp (Berkshire Hathaway Berkshire Hathaway Inc. Berkshire Hathaway acquired the remaining 49% stake, which Inc) it did not already own, in GEICO for $70 in cash per share, Location: Location: of a total value of $2,347 bil. Included in the value was D. of Columbia Nebraska GEICO's options valued at $70 in cash, less the average exercise of each option. The transaction had been subject to Business Description: Business Description: regulatory approval, including that of the state insurance Provide insurance and Property and casualty regulators. financial services insurance company; publish newspapers and encyclopedias; manufacture uniforms, vacuum cleaners, vacuum cleaner brushes, and air compressors; produce candy; retail candy and home furnishings; investment firm; holding company SIC Codes: SIC Codes: 6331 6311 6324 6211 6331 2711 2741 2326 2339 3635 3991 3564 2064 2066 5441 5719 6799 6719 Ticker Symbol: Ticker Symbol: GEC BRK Advisors: Advisors: Morgan Stanley FINANCIAL DATA (mil): - US Date of LTM Fin. 06/30/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 -------- -------- -------- -------- -------- -------- Rank Value(2) : 2,347.0 US Attitude :Friendly Net Sales 2,872.4 2,716.0 2,638.3 2,420.0 2,147.0 1,934.9 Value (1) : 2,347.0 US Defensive Net Income 225.3 208.8 286.4 172.8 196.4 208.4 Price/Share : 70.00 Tactics : Not Applicable EPS 3.283 2.983 4.011 2.387 2.696 2.728 Shares Out(mil) : 69.79 Assets 5.4 4,998.1 4,831.4 4,377.6 4,085.8 3,575.9 Cash Flow - 315.0 422.6 261.4 282.2 264.8 Techniques: Litigation: No Not Applicable Outcome : Stock Premiums -------------- 1 Day Prior : +25.6 P/E Ratio : 21.322 Cash & Marketable Securities (mil): 20.1 1 Week Prior : +23.1 Book Value/Share: 23.15 Short-Term Debt (mil) : - 4 Weeks Prior: +25.3 Price/Book : 3.02 Long-Term Debt (mil) : 431.2 Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 08/25/95 GEICO Corp (Berkshire Hathaway) Berkshire Hathaway Inc 2,347.0 US 70.00 Agreement to acquire remaining 49% stake is disclosed 11/15/95 GEICO Corp (Berkshire Hathaway) Berkshire Hathaway Inc 2,347.0 US 70.00 Stockholder meeting set for Dec 20 to vote on merger 12/20/95 GEICO Corp (Berkshire Hathaway) Berkshire Hathaway Inc 2,347.0 US 70.00 GEICO shareholders approve merger 01/02/96 GEICO Corp (Berkshire Hathaway) Berkshire Hathaway Inc 2,347.0 US 70.00 Acquisition of remaining 49% stake is completed 01/05/96 GEICO Corp (Berkshire Hathaway) Berkshire Hathaway Inc 2,347.0 US 70.00 Geico was dropped Dow Jones Equity Market Insurance group ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 08/25/95 Date Effective: 09/22/95 Date Unconditional: 09/22/95 Status: Completed Target Name: Acquiror Name: Synopsis: Pompes Funebre Generales SA Service Corp International Service Corp International (SCI) completed a tender offer for the remaining 35% stake in Pompes Funebre Generales Location: Location: (PFG) at 820 French francs ($169 US) per share, or a total France Texas of 540.7 mil francs ($111.4 mil) in cash. Prior to the launch of the offer, SCI acquired the initial 65% of PFG Business Description: Business Description: through the total acquisition of Omnium de Gestion et de Provide funeral services Own and operate funeral homes, Financement, a unit of Lyonnaise des Eaux, which held 65% of cemeteries, and flower shops; PFG. manufacture and wholesale caskets and related components SIC Codes: SIC Codes: 7261 7261 6553 5992 3995 5087 Ticker Symbol: Ticker Symbol: - SRV Advisors: Advisors: Rothschild & Cie Banque JP Morgan & Co. Inc. FINANCIAL DATA (mil): FFR Date of LTM Fin. 12/31/94 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 --------- --------- --------- --------- --------- --------- Rank Value(2) : 540.7 FFR Attitude :Friendly Net Sales - 3,154.0 2,661.0 2,670.0 2,222.0 2,087.0 Value (1) : 540.7 FFR Defensive Pre-Tax Inc. - 251.4 88.1 106.7 131.2 119.8 Price/Share : 820.00 Tactics : Not Applicable Net Income - 113.9 45.5 62.5 62.3 46.9 Shares Out(mil) : 1.88 EPS - - - - - - Assets - 2,136.0 1,703.0 1,696.0 1,626.0 1,352.0 Net Assets - 917.0 708.6 689.0 659.7 512.3 Techniques: Litigation: No Divestiture Outcome : Tender Offer Tender/Merger P/E Ratio : Cash & Marketable Securities (mil): 199.6 Book Value/Share: 436.68 Long-Term Liabilities (mil) : - Price/Book : Summary of Related Transactions Transaction Type Date Status Participant(s) Acq. Maj. Int. 07/10/95 Completed Omnium de Gestion / Service Corp International Acq. Rem. Int. 07/10/95 Completed Omnium de Gestion / Service Corp International - ------------------------------------------------------------------------------------------------------------------------------------ Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 11/04/94 Pompes Funebre Generales SA Service Corp International - - Acq'n plans are disclosed; Lyonnaise turns down offer 05/24/95 Pompes Funebre Generales SA Service Corp International - - Lyonnaise says not in talks with SCI 07/10/95 Omnium de Gestion Service Corp International 1,788.0 FFR 950.00 Intentions to launch a tender offer are disclosed 07/10/95 Omnium de Gestion Service Corp International 1,788.0 FFR 950.00 Intentions to launch tender offer for 35% are disclosed 07/12/95 Omnium de Gestion Service Corp International 2,314.0 FFR 950.00 Tender offer is launched - 07/24/95 Omnium de Gestion Service Corp International 1,788.0 FFR 950.00 Couseil des Bourses de Valeurs approves the transaction 08/22/95 Omnium de Gestion Service Corp International 1,788.0 FFR 950.00 Acquisition of 51% expected to take place in a few days 08/22/95 Pompes Funebre Generales SA Service Corp International 540.7 FFR 820.00 Further details of proposed tender offer are disclosed 08/24/95 Omnium de Gestion Service Corp International 1,788.0 FFR 820.00 Acquisition of 51% interest is completed 08/25/95 Omnium de Gestion Service Corp International 1,718.0 FFR 950.00 Tender offer is launched - 08/25/95 Pompes Funebre Generales SA Service Corp International 540.7 FFR 820.00 Tender offer is launched - 09/22/95 Pompes Funebre Generales SA Service Corp International 540.7 FFR 820.00 Tender offer for remaining 35% interest is completed 09/22/95 Omnium de Gestion Service Corp International 1,718.0 FFR 950.00 Tender offer for remaining 49% interest is completed ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 08/30/95 Date Effective: 09/26/95 Date Unconditional: 09/26/95 Status: Completed Target Name: Acquiror Name: Synopsis: Fils Charvet SA (Total Total Raffinage Distribution Total Raffinage Distribution (TR) acquired a further 1.39% Raffinage Distribution) SA (TOTAL SA) stake, or 3,379 ordinary shares, in Fils Charvet (FC) via a minorities bid tender offer at 2230 French francs ($439 US) Location: Location: per share, or a total of 8.34 mil francs ($1.65 mil). TR now France France owns 99.59% of FC. Business Description: Business Description: Own and operate home heating Petroleum refining oil, gas and other fuels distribution business SIC Codes: SIC Codes: 5983 5984 5989 2911 Ticker Symbol: Ticker Symbol: CHVT - Advisors: Advisors: FINANCIAL DATA (mil): - Date of LTM Fin. --------- --------- --------- --------- --------- --------- Rank Value(2) : 11.0 FFR Attitude :Friendly Net Sales - - - - - - Value (1) : 11.0 FFR Defensive Pre-Tax Inc. - - - - - - Price/Share : 2230.00 Tactics : Not Applicable Net Income - - - - - - Shares Out(mil) : 0.27 EPS - - - - - - Assets - - - - - - Net Assets - - - - - - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : Cash & Marketable Securities (mil): - Book Value/Share: - Long-Term Liabilities (mil) : - Price/Book :
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 08/30/95 Fils Charvet(Total Raffinage) Total Raffinage Distribution 11.0 FFR 2230.0 Intended tender offer for remaining 1.84% disclosed 09/26/95 Fils Charvet(Total Raffinage) Total Raffinage Distribution 11.0 FFR 2230.0 Tender offer for minorities - ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 08/30/95 Date Effective: Status: Withdrawn Target Name: Acquiror Name: Synopsis: Syms Corp Investor Group An investor group, led by Sy Syms, chairman and CEO of Syms, withdrew its offer to take Syms private by acquiring the remaining 22% interest, or 3.194 mil common shares, of Syms Location: Location: it did not already own for $8.75 in cash per share, or a New Jersey Unknown total value of $27.948 mil, through a leveraged buyout transaction. Business Description: Business Description: Own and operate men's Investor group clothing store SIC Codes: SIC Codes: 5611 6799 Ticker Symbol: Ticker Symbol: SYM - Advisors: Advisors: Rothschild Inc. FINANCIAL DATA (mil): US Date of LTM Fin. 12/31/94 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 --------- --------- --------- --------- --------- --------- Rank Value(2) : 27.9 US Attitude :Friendly Net Sales 334.4 326.7 318.9 319.6 317.5 314.4 Value (1) : 27.9 US Defensive Net Income 6.1 8.5 10.8 15.1 14.3 14.1 Price/Share : 8.75 Tactics : Not Applicable EPS 0.347 0.48 0.613 0.856 0.807 0.798 Shares Out(mil) : 17.70 Assets 245.4 243.4 221.2 204.1 199.2 198.3 Cash Flow 20.3 23.3 26.3 33.4 31.1 31.4 Techniques: Litigation: No Acquiror Includes Management Outcome : Acquiror is an Investor Group Going Private Stock Premiums Leveraged Buyout -------------- Management Buyout 1 Day Prior : +11.1 P/E Ratio : 25.216 Cash & Marketable Securities (mil): 0.7 1 Week Prior : +9.4 Book Value/Share: 11.15 Short-Term Debt (mil) : 4.9 4 Weeks Prior: +25.0 Price/Book : 0.79 Long-Term Debt (mil) : 1.7
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 08/30/95 Syms Corp Investor Group 27.9 US 8.75 Offer to acquire remaining 28% interest is disclosed 10/13/95 Syms Corp Investor Group 27.9 US 8.75 Offer to acquire remaining 28% is withdrawn ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 09/13/95 Date Effective: 10/18/95 Date Unconditional: 10/18/95 Status: Completed Target Name: Acquiror Name: Synopsis: Cia Latina di Assicurazioni Fondiaria Assicurazioni SpA Fondiaria Assicurazioni (FA), a unit of Fondiaria, acquired Fundiaria Assicurazioni SpA (Fondiaria SpA the remaining 25% in its Cia Latina di Assicurazioni (CLA) unit for 54.63 bil Italian lire ($34 mil US). FA offered 2 Location: Location: ordinary shares per every 3 CLA share held. Based on FA's Italy Italy closing stock price of 8631 lire ($5.3) on Sep 12, 1995, the last full trading day prior to the announcement, each CLA Business Description: Business Description: share was valued at 5750 lire ($3.55 US). Provide insurance and security Surety insurance company brokerage services SIC Codes: SIC Codes: 6311 6321 6331 6211 6351 Ticker Symbol: Ticker Symbol: LTAI IASI Advisors: Advisors: FINANCIAL DATA (mil): - Date of LTM Fin. --------- --------- --------- --------- --------- --------- Rank Value(2) : 54,630.0 LIR Attitude :Friendly Net Sales - - - - - - Value (1) : 54,630.0 LIR Defensive Pre-Tax Inc. - - - - - - Price/Share : 5750.00 Tactics : Not Applicable Net Income - - - - - - Shares Out(mil) : 38.00 EPS - - - - - - Assets - - - - - - Net Assets - - - - - - Techniques: Litigation: No Stock Swap Outcome : P/E Ratio : Cash & Marketable Securities (mil): - Book Value/Share: - Long-Term Liabilities (mil) : - Price/Book :
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 09/13/95 Cia Latina di Assicurazioni Fondiaria Assicurazioni SpA 54,630.0 LIR 5750.0 Plans to acquire remaining 25% stake are disclosed 10/18/95 Cia Latina di Assicurazioni Fondiaria Assicurazioni SpA 54,630.0 LIR 5750.0 Acquisition of remaining 25% stake is completed ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 09/26/95 Date Effective: 12/21/95 Status: Completed Target Name: Acquiror Name: Synopsis: SCOR US Corp (SCOR SA) Societe Commerciale de Societe Commerciale de Reassurance (SCOR) acquired the Reassurance (SCOR) remaining 20% stake which it did not already own in SCOR US for $59.93 mil. Earlier, SCOR had completed its tender offer Location: Location: for SCOR US for an amended $15.25 in cash per share by New York France accepting 3,473,743 common shares, or 17.87% of the common stock outstanding not held by SCOR. The transaction had been Business Description: Business Description: conditioned upon at least 90% of the outstanding shares not Reinsurance holding company Insurance holding company held by SCOR being tendered. Originally, SCOR had offered $14 per SCOR US share held. SIC Codes: SIC Codes: 6331 6411 6719 6331 6321 6311 6351 6719 Ticker Symbol: Ticker Symbol: SUR - Advisors: Advisors: Dillon, Read Goldman, Sachs & Co. FINANCIAL DATA (mil): US Date of LTM Fin. 06/30/95 --------- --------- --------- --------- --------- --------- Rank Value(2) : 59.9 US Attitude :Friendly Net Sales 282.1 270.2 291.0 250.0 222.3 - Value (1) : 59.9 US Defensive Net Income 14.3 -8.2 27.9 4.4 30.9 - Price/Share : 15.25 Tactics : Not Applicable EPS 0.784 -.451 1.518 0.241 1.717 - Shares Out(mil) : 19.43 Assets 1,187.6 1,143.7 1,194.1 1,069.2 751.4 - Cash Flow - - - - - - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger Stock Premiums -------------- 1 Day Prior : +37.1 P/E Ratio : 19.452 Cash & Marketable Securities (mil): 11.5 1 Week Prior : +35.6 Book Value/Share: 15.02 Short-Term Debt (mil) : 121.3 4 Weeks Prior: +38.6 Price/Book : 1.02 Long-Term Debt (mil) : - - ------------------------------------------------------------------------------------------------------------------------------------ Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 09/26/95 SCOR US Corp(SCOR SA) SCOR 53.9 US 14.00 Offer to acquire remaining 20% stake is disclosed 09/29/95 SCOR US Corp(SCOR SA) SCOR 53.9 US 14.00 SCOR US board forms special committee to evaluate offer 11/03/95 SCOR US Corp(SCOR SA) SCOR 59.9 US 15.25 Terms were amended - 11/09/95 SCOR US Corp(SCOR SA) SCOR 59.9 US 15.25 Tender offer is launched - 12/07/95 SCOR US Corp(SCOR SA) SCOR 59.9 US 15.25 Tender offer is extended to Dec 12 12/13/95 SCOR US Corp(SCOR SA) SCOR 59.9 US 15.25 Tender offer is completed - 12/21/95 SCOR US Corp(SCOR SA) SCOR 59.9 US 15.25 Acquisition of remaining 20% stake is completed ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 09/27/95 Date Effective: Date Unconditional: Status: Withdrawn Target Name: Acquiror Name: Synopsis: Societe des Immeubles de Credit Foncier de France Credit Foncier de France (CFF) withdrew its plans to acquire France (Credit Foncier) the remaining 45% stake, or 3,077,550 ordinary shares, in Societe des Immeubles de France (IF) in a stock swap Location: Location: transaction valued at 835.14 mil French francs ($170.28 mil France France US). CFF offered 7 new ord shs for every 3 IF ord shs held. Based on CFF's closing stock price on Sep 26, the last full Business Description: Business Description: trading day prior to announcement, each IF share was valued Own and operate nonresidential Bank at 271.37 francs ($55.33). The withdrawal was due a buildings; provide real estate regulator's ruling that the acquisition warranted a public development services offer of a share buy-in. Own and operate nonresidential buildings; provide real estate development services SIC Codes: SIC Codes: 6512 6552 6000 Ticker Symbol: Ticker Symbol: IDFP CRFF Advisors: Advisors: FINANCIAL DATA (mil): FFR Date of LTM Fin. 12/31/94 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 --------- --------- --------- --------- --------- --------- Rank Value(2) : 835.1 FFR Attitude :Friendly Net Sales 205.4 205.4 218.5 103.5 - - Value (1) : 835.1 FFR Defensive Pre-Tax Inc. 143.3 143.3 133.9 90.6 - - Price/Share : 271.37 Tactics : Not Applicable Net Income 91.8 91.8 88.7 70.6 - - Shares Out(mil) : 6.84 EPS - - - - - - Assets 2,808.3 2,808.3 2,633.5 822.8 - - Net Assets 2,508.1 2,508.1 2,435.3 759.1 - - Techniques: Litigation: No Stock Swap Outcome : P/E Ratio : 20.217 Cash & Marketable Securities (mil): 353.4 Book Value/Share: 315.05 Long-Term Liabilities (mil) : - Price/Book : 0.86
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 09/27/95 Societe de Immeubles(Credit) Credit Foncier de France 835.1 FFR 271.37 Plans to acquire remaining 45% stake are disclosed 10/06/95 Societe de Immeubles(Credit) Credit Foncier de France 835.1 FFR 271.37 Specialized accountant will review the terms of the merger 11/13/95 Societe de Immeubles(Credit) Credit Foncier de France 835.1 FFR 271.37 Shareholders to meet on Dec 22 to discuss the takeover offer 11/14/95 Societe de Immeubles(Credit) Credit Foncier de France 835.1 FFR 271.37 Collete Neuville, head of ADAM, protests terms of merger 11/23/95 Societe de Immeubles(Credit) Credit Foncier de France 835.1 FFR 271.37 ADAM wants bid for minority % to be launched before Dec 22nd 12/01/95 Societe de Immeubles(Credit) Credit Foncier de France 835.1 FFR 271.37 Bourse regulator (CBV) says a minorities bid may be required 12/04/95 Societe de Immeubles(Credit) Credit Foncier de France 835.1 FFR 271.37 Plans to acquire remaining 45% stake are withdrawn ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 11/02/95 Date Effective: Status: Withdrawn Target Name: Acquiror Name: Synopsis: Immunex Corp (American American Home Products Corp American Home Products withdrew its offer to acquire the Cyanamid Co) remaining 18.13 mil common shares, or 45.8% stake, which it did not already own, in Immunex for $14.50 in cash per Location: Location: share, or a total value of $263 mil in cash. Washington New Jersey Business Description: Business Description: Manufacture and research Manufacture female oral immunological therapeutic contraceptives, cardiovascular products therapies, mental health agents, anti-inflammatory drugs, hospitable injectables, diabetic therapeutics, cold and allergy products, influenza, cholera, typhoid, diphteria, adenovirus and other vaccines and biologicals, oral hygienes, hemorrhoidal and asthama products, lip care, medicated shampoos, topical analgesics, natural sedatives, disposable syringes and needles, tube, catheter and chest drainage products, obstetrical monitoring products, cardiopulmonary instrumentation, clinical laboratory stems, enteral feeding systems, wound care dressings, animal health cares, poultry feed additives and medical supplies; produce entrees and side dishes, such as Chef Boyardee, condiments and snacks SIC Codes: SIC Codes: 2834 8731 2834 2836 2844 3841 3829 2048 2032 2099 2096 8731 Ticker Symbol: Ticker Symbol: - AHP Advisors: Advisors: Alex. Brown & Sons Goldman, Sachs & Co. FINANCIAL DATA (mil): - Date of LTM Fin. --------- --------- --------- --------- --------- --------- Rank Value(2) : 263.0 US Attitude :Hostile Net Sales - - - - - - Value (1) : 263.0 US Defensive Net Income - - - - - - Price/Share : 14.50 Tactics : Not Applicable EPS - - - - - - Shares Out(mil) : 39.60 Assets - - - - - - Cash Flow - - - - - - Techniques: Litigation: No Not Applicable Outcome : Remained Independent Stock Premiums -------------- 1 Day Prior : +20.8 P/E Ratio : Cash & Marketable Securities (mil): - 1 Week Prior : +7.4 Book Value/Share: - Short-Term Debt (mil) : - 4 Weeks Prior: +6.4 Price/Book : Long-Term Debt (mil) : - - ------------------------------------------------------------------------------------------------------------------------------------ Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
62
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 11/02/95 Immunex Corp American Home Products Corp 263.0 US 14.50 Unsolicited offer to acquire remaining 45% is disclosed 11/13/95 Immunex Corp American Home Products Corp 263.0 US 14.50 Immunex board unanimously rejects American Home bid 11/14/95 Immunex Corp American Home Products Corp 263.0 US 14.50 Immunex stock price rises due to hope of sweetened bid 11/30/95 Immunex Corp American Home Products Corp 263.0 US 14.50 Immunex shareholders file two lawsuits against AHP and Immun 12/02/95 Immunex Corp American Home Products Corp 263.0 US 14.50 Offer to acquire remaining 45% stake is withdrew ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 11/06/95 Date Effective: Status: Withdrawn Target Name: Acquiror Name: Synopsis: NPC International Inc Investor Group A management-led investor group, including CEO Gene Bicknell, withdrew its offer to acquire the remaining 38% Location: Location: interest, or 11.22 mil common shares, which it did not Kansas Unknown already own in NPC International for $9.00 per share, or a total value of $94.461 mil, through a leveraged buyout Business Description: Business Description: transaction. Own and operate restaurants Investor group SIC Codes: SIC Codes: 5812 6799 Ticker Symbol: Ticker Symbol: NPCIA - Advisors: Advisors: CS First Boston FINANCIAL DATA (mil): US Date of LTM Fin. 06/27/95 03/28/95 03/28/94 03/28/93 03/28/92 03/28/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 94.5 US Attitude :Friendly Net Sales 314.5 315.5 336.8 285.4 298.7 286.1 Value (1) : 94.5 US Defensive Net Income -15.2 -15.6 11.3 9.1 11.0 15.0 Price/Share : 9.00 Tactics : Not Applicable EPS -.613 -.631 0.449 0.352 0.404 0.54 Shares Out(mil) : 26.10 Assets 212.4 220.0 229.1 205.3 206.4 200.9 Cash Flow 45.2 44.8 49.2 40.6 46.7 45.5 Techniques: Litigation: No Acquiror Includes Management Outcome : Acquiror is an Investor Group Going Private Stock Premiums Leveraged Buyout -------------- Management Buyout 1 Day Prior : +44.0 P/E Ratio : Cash & Marketable Securities (mil): 4.2 1 Week Prior : +44.0 Book Value/Share: 3.44 Short-Term Debt (mil) : 1.4 4 Weeks Prior: +33.3 Price/Book : 2.61 Long-Term Debt (mil) : 80.5
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 11/06/95 NPC International Inc Investor Group 94.5 US 9.00 Offer to acquire remaining 38% interest is disclosed 11/16/95 NPC International Inc Investor Group 94.5 US 9.00 Investors Miller and Steiner files suit against NPC Int'l 12/11/95 NPC International Inc Investor Group 94.5 US 9.00 Acquisition offer is withdrawn ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 11/15/95 Date Effective: 12/18/95 Date Unconditional: 12/18/95 Status: Completed Target Name: Acquiror Name: Synopsis: Den Norske Amerikalinje(NAL) Wilh Wilhelmsen AS Wilh Wilhelmsen (WW) acquired the remaining 8.15% stake, or (Wilh Wilhelmsen) 6,597,751 ordinary shares, in Den Norske Amerikalinje (NAL) for 13 Norwegian kroner ($2.09 US) per share, or a total of Location: Location: 85.77 mil kroner ($13.79 mil) via a tender offer. Norway Norway Concurrently, WW raised its interest in NAL to 91.95% from 41.84%. Previously, WW withdrew its challenging tender offer Business Description: Business Description: to acquire the remaining 98.8% interest in NAL. Shipping company Shipping company SIC Codes: SIC Codes: 4412 4412 Ticker Symbol: Ticker Symbol: DENO WILO Advisors: Advisors: FINANCIAL DATA (mil): NKR Date of LTM Fin. 12/31/94 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 --------- --------- --------- --------- --------- --------- Rank Value(2) : 85.8 NKR Attitude :Friendly Net Sales 1,182.4 1,182.4 1,352.6 1,419.2 1,341.8 1,178.6 Value (1) : 85.8 NKR Defensive Pre-Tax Inc. 119.1 119.1 -36.7 46.1 15.4 -31.7 Price/Share : 13.00 Tactics : Not Applicable Net Income 91.6 91.6 -23.6 50.3 5.6 -33.2 Shares Out(mil) : 80.95 EPS 0.92 0.92 - - 1.61 1.61 Assets 1,944.6 1,944.6 1,806.5 1,871.3 1,958.3 1,537.2 Net Assets 394.4 394.4 352.2 349.9 539.8 454.3 Techniques: Litigation: No Tender Offer Outcome : P/E Ratio : 14.130 Cash & Marketable Securities (mil): 167.6 Book Value/Share: 4.87 Long-Term Liabilities (mil) : - Price/Book : 2.67 Summary of Related Transactions Transaction Type Date Status Participant(s) Acq. Maj. Int. 11/15/95 Completed Den Norske Amerikalinje(Berge) / Wilh Wilhemsen AS
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 11/15/95 Den Norske Amerikalinje(Berge) Wilh Wilhelmsen AS 616.2 NKR 13.00 Interest is raised to 91.95% from 33.3% 11/15/95 Den Norske Amerikalinje(Berge) Wilh Wilhelmsen AS 85.8 NKR 13.00 Tender offer for remaining 8.15% stake is launched 12/18/95 Den Norske Amerikalinje(Berge) Wilh Wilhelmsen AS 85.8 NKR 13.00 Wilhelmsen now has 98.35%; will acq shs thru compulsory ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 11/23/95 Date Effective: 04/17/96 Date Unconditional: 01/11/96 Status: Completed Target Name: Acquiror Name: Synopsis: BNZ Finance (Bank of New National Australia (1995) National Australia (1995), a unit of National Australia Zealand/National Australia Ltd (Bank of New Zealand Bank's Bank of New Zealand subsidiary, competed its Bank) National Austrialia (Bank) unconditional tender offer to acquire the remaining 21.6% stake, or 34,452,000 ordinary shares, in BNZ Finance that it Location: Location: did not already own at 1.97 New Zealand dollars ($1.29 US) New Zealand Australia per share, or a total of NZ$67.87 mil ($44.56 mil). Business Description: Business Description: Bank Bank SIC Codes: SIC Codes: 6000 6000 Ticker Symbol: Ticker Symbol: BNZ - Advisors: Advisors: SBC Warburg New Zealand FINANCIAL DATA (mil): - Date of LTM Fin. --------- --------- --------- --------- --------- --------- Rank Value(2) : 67.9 NZ Attitude :Friendly Net Sales - - - - - - Value (1) : 67.9 NZ Defensive Pre-Tax Inc. - - - - - - Price/Share : 1.97 Tactics : Not Applicable Net Income - - - - - - Shares Out(mil) : 159.50 EPS - - - - - - Assets - - - - - - Net Assets - - - - - - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : Cash & Marketable Securities (mil): - Book Value/Share: - Long-Term Liabilities (mil) : - Price/Book :
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 11/23/95 BNZ Finance(Bank of NZ) National Australia(1995)Ltd 67.9 NZ 1.97 Tender offer for remaining 21.6% stake is launched 11/24/95 BNZ Finance(Bank of NZ) National Australia(1995)Ltd 67.9 NZ 1.97 Board of BNZ Finance appoints independent advisors 11/28/95 BNZ Finance(Bank of NZ) National Australia(1995)Ltd 67.9 NZ 1.97 Board of BNZ Finance appoints SBC Warburg NZ as its advisor 12/13/95 BNZ Finance(Bank of NZ) National Australia(1995)Ltd 67.9 NZ 1.97 BNZ directors recommend that minority sh holders accept bid 12/15/95 BNZ Finance(Bank of NZ) National Australia(1995)Ltd 67.9 NZ 1.97 NZ Overseas Investment and NZ Reserve Bank approve acq'n 01/05/96 BNZ Finance(Bank of NZ) National Australia(1995)Ltd 67.9 NZ 1.97 1,808,730 shares (11.34%) are tendered 01/08/96 BNZ Finance(Bank of NZ) National Australia(1995)Ltd 67.9 NZ 1.97 2,269,685 shares (14.23%) are tendered 01/11/96 BNZ Finance(Bank of NZ) National Australia(1995)Ltd 67.9 NZ 1.97 Tender offer declared unconditional;now hold 93.5% 01/19/96 BNZ Finance(Bank of NZ) National Australia(1995)Ltd 67.9 NZ 1.97 Offer is extended by one month to February 22 04/17/96 BNZ Finance(Bank of NZ) National Australia(1995)Ltd 67.9 NZ 1.97 Compulsory acquisition begins for remaining .2% outstanding ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 12/04/95 Date Effective: Date Unconditional: Status: Withdrawn Target Name: Acquiror Name: Synopsis: AMEC PLC Kvaerner A/S Kvaerner (KN) withdrew its hostile tender offer to acquire the remaining 46% stake, or the entire convertible Location: Location: redeemable preference share capital, of AMEC (AM) for .90 United Kingdom Norway British pounds ($1.38 US) per share, or a total of 155.20 mil pounds ($237.86 mil) in cash. Concurrently, KN withdrew Business Description: Business Description: its tender offer to acquire the remaining 98% interest in Provide street and highway, Provide ocean transportation the ordinary share capital of AM. The preference share offer water and sewer pipeline and residential construction was conditional on the ordinary share offer becoming construction services; services; manufacture pumps, unconditional. When that offer failed to become electrical contractors; real pumping equipment and steam, unconditional this offer was withdrawn. estate development firm; gas and hydraulic turbines; holding company provide ship building and repair services SIC Codes: SIC Codes: 1611 1623 1731 6552 1541 6719 4499 1522 3561 3511 3731 Ticker Symbol: Ticker Symbol: AMEC KVIO Advisors: Advisors: NatWest Markets SBC Warburg FINANCIAL DATA (mil): STG Date of LTM Fin. 12/31/94 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 --------- --------- --------- --------- --------- --------- Rank Value(2) : 155.2 STG Attitude :Hostile Net Sales 1,962.0 1,962.0 2,204.0 2,122.0 2,338.0 2,218.0 Value (1) : 155.2 STG Defensive Pre-Tax Inc. 20.2 20.2 21.0 27.1 -9.9 63.4 Alternative : 158.7 Tactics : Not Applicable Net Income 17.9 17.9 18.5 36.9 -9.9 42.2 Price/Share : 0.90 EPS 5.96 5.96 6.16 18.30 -5.51 28.53 Alternative : 0.92 Assets 1,062.2 1,062.2 1,006.4 1,061.6 1,171.1 1,064.3 Shares Out(mil) : 375.04 Net Assets 233.4 233.4 240.4 242.2 350.5 299.2 Techniques: Litigation: No Tender Offer Outcome : Remained Independent Tender/Merger P/E Ratio : 0.151 Cash & Marketable Securities (mil): 124.5 Book Value/Share: 0.78 Long-Term Liabilities (mil) : - Price/Book : 1.16 Summary of Related Transactions Transaction Type Date Status Participant(s) Acq. Part. Int. 11/23/95 Completed AMEC PLC / Kvaerner A/S Acq. Maj. Int. 11/24/95 Withdrawn AMEC PLC / Kvaerner A/S - ----------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 11/23/95 AMEC PLC Kvaerner A/S 20.0 STG 1.00 Stake raise to 6.43% from 1% is completed 11/23/95 Alfred McAlpine PLC AMEC PLC 138.2 STG 2.00 Intentions to launch tender offer are disclosed 11/24/95 AMEC PLC Kvaerner A/S 198.5 STG 1.00 Intentions to launch tender offer are disclosed 11/27/95 Alfred McAlpine PLC AMEC PLC 138.2 STG 2.00 McAlpine board rejected the offer,AMEC withdrew its offer 11/27/95 AMEC PLC Kvaerner A/S 198.5 STG 1.00 Offer is launched,AMEC rejects and the deal becomes hostile 11/28/95 AMEC PLC Kvaerner A/S - - Stake raise to 8.26% from 6.43% is completed 11/29/95 AMEC PLC Kvaerner A/S - - Stake raise to 9.18% from 8.26% is completed 11/30/95 AMEC PLC Kvaerner A/S 198.5 STG 1.00 AMEC says bid undervalues the company and is opportunisitic 12/01/95 AMEC PLC Kvaerner A/S - - Stake raise to 9.78% from 9.18% is completed 12/04/95 AMEC PLC Kvaerner A/S - - Hostile tender for remaining 46%, cvt pfd shs, is launched 12/06/95 AMEC PLC Kvaerner A/S - - EU will launch a routine antitrust investigation 12/07/95 AMEC PLC Kvaerner A/S - - Indonesian govt may recommend UK govt stop proposed takeover 12/08/95 AMEC PLC Kvaerner A/S - - AMEC defense cicular is posted -"offer undervalues company" 12/11/95 AMEC PLC Kvaerner A/S - - Kvaerner responds to circular saying that offer is fair 12/11/95 AMEC PLC Kvaerner A/S - - Stake raise to 10.88% from 9.78% is completed 12/12/95 AMEC PLC Kvaerner A/S - - Stake raise to 12.19% from 10.88% is completed 12/12/95 AMEC PLC Kvaerner A/S - - AMEC has fired its public relations advisors 12/13/95 AMEC PLC Kvaerner A/S - - Stake raise to 12.69% from 12.19% is completed 12/14/95 AMEC PLC Kvaerner A/S - - AMEC says Kvaerner's assertion that it's unstable aren't true 12/15/95 AMEC PLC Kvaerner A/S - - AMEC says Kvaerner is bullying its shareholders 12/15/95 AMEC PLC Kvaerner A/S - - Stake raise to 14.1% from 12.69% is completed 12/18/95 AMEC PLC Kvaerner A/S - - Offer is withdrawn due to insufficient acceptances 12/18/95 AMEC PLC Kvaerner A/S - - Convertible preference offer is withdrawn 12/19/95 AMEC PLC Kvaerner A/S - - Kvaerner will not make a higher offer to AMEC 05/14/96 AMEC PLC Kvaerner A/S - - Transaction will not be referred to the MMC ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 12/18/95 Date Effective: Date Unconditional: Status: Withdrawn Target Name: Acquiror Name: Synopsis: Wharf Resources Ltd Goldcorp Investments Ltd Goldcorp, a unit of CSA Management, withdrew its agreement to acquire the remaining 49.7% stake, that it did not already own, in Wharf Resources (WR) in a stock swap Location: Location: transaction valued at 100.71 mil Canadian dollars ($73.34 Canada Canada mil US). Each WR common shareholder was to receive .56 Goldcorp Class A common share for each WR share held. Based Business Description: Business Description: on Goldcorp's closing stock price of C$18.75 ($13.66) on Dec Gold mining company Securities brokerage firm; 15, the last full trading day prior to the announcement, provide financial advisory each WR share was valued at C$10.50 ($7.65). The transaction services was subject to regulatory approval. SIC Codes: SIC Codes: 1041 6211 6282 Ticker Symbol: Ticker Symbol: WFRA G Advisors: Advisors: FINANCIAL DATA (mil): US Date of LTM Fin. 12/31/94 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 --------- --------- --------- --------- --------- -------- Rank Value(2) : 100.7 C Attitude :Friendly Net Sales 53.8 53.8 42.8 35.7 34.9 29.5 Value (1) : 100.7 C Defensive Pre-Tax Inc. 13.5 13.5 6.7 6.1 8.2 -4.4 Price/Share : 10.50 Tactics : Not Applicable Net Income 10.4 10.4 5.2 4.6 6.6 -5.8 Shares Out(mil) : 19.30 EPS 0.53 0.53 0.26 0.23 0.33 -.33 Assets 79.5 79.5 78.7 78.2 55.5 54.1 Net Assets 62.9 62.9 54.7 52.0 49.6 49.1 Techniques: Litigation: No Stock Swap Outcome : P/E Ratio : Cash & Marketable Securities (mil): 22.4 Book Value/Share: 3.27 Long-Term Liabilities (mil) : - Price/Book : Summary of Related Transactions Transaction Type Date Status Participant(s) Acq. Rem. Int. 10/16/96 Completed Wharf Resources(Goldcorp) / Goldcorp Investments Ltd
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 12/18/95 Wharf Resources(Goldcorp) Goldcorp Investments Ltd 100.7 C 10.50 Agreement to acquire remaining 49.7% stake is disclosed 02/16/96 Wharf Resources(Goldcorp) Goldcorp Investments Ltd 100.7 C 10.50 Agreement to acquire remaining 49.7% stake with withdrawn 10/16/96 Wharf Resources(Goldcorp) Goldcorp Investments Ltd 91.2 C 9.54 Intentions to acquire remaining 49.7% are disclosed 11/15/96 Wharf Resources(Goldcorp) Goldcorp Investments Ltd 91.2 C 9.54 Tender offer is launched - 12/06/96 Wharf Resources(Goldcorp) Goldcorp Investments Ltd 91.2 C 9.54 Tender offer is completed - 01/14/97 Wharf Resources(Goldcorp) Goldcorp Investments Ltd 91.2 C 9.54 Acquisition of remaining 49.7% is completed ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
69
Date Announced: 02/16/96 Date Effective: 06/19/96 Date Unconditional: 03/19/96 Status: Completed Target Name: Acquiror Name: Synopsis: Whitcoulls Group Ltd (Rank Rank Commercial Ltd Rank Commercial (RC) completed its unconditional hostile Commercial Ltd) tender offer for the remaining 35.48% stake, or 42,930,941 ordinary shares, in Whitcoulls Group (WG) that it did not Location: Location: already own for 102.26 mil New Zealand dollars ($69.28 mil New Zealand New Zealand US) via a stand in the market. RC offered NZ$2.32 ($1.57 US) per share. After the offer went unconditional, in the first Business Description: Business Description: test of a new takeover law, shareholders holding 10% of WG's Publish books; wholesale Investment holding company shares objected to the compulsory acquisition and forced a stationery third valuation which in the end forced RC to pay NZ$2.54 ($1.72) per sh for their shs. SIC Codes: SIC Codes: 2731 5112 6799 6719 Ticker Symbol: Ticker Symbol: WHC - Advisors: Advisors: Grant Samuel and Associates Price Waterhouse Arthur Andersen CS First Boston (Hong Kong) Price Waterhouse FINANCIAL DATA (mil): NZ Date of LTM Fin. 06/30/93 06/30/93 06/30/92 06/30/91 06/30/90 06/30/89 --------- --------- --------- --------- --------- --------- Rank Value(2) : 102.3 NZ Attitude :Hostile Net Sales 302.2 302.2 274.4 85.8 48.6 - Value (1) : 102.3 NZ Defensive Pre-Tax Inc. 26.4 26.4 17.0 10.3 7.1 - Price/Share : 2.54 Tactics : Not Applicable Net Income 18.6 18.6 17.3 10.4 5.3 - Shares Out(mil) : 121.00 EPS 0.166 0.166 0.155 0.106 0.044 - Assets 166.8 166.8 145.8 59.9 42.7 - Net Assets 64.1 64.1 47.0 30.4 11.9 - Techniques: Litigation: No Going Private Outcome : Sold to Raider Tender Offer Tender/Merger P/E Ratio : 15.301 Cash & Marketable Securities (mil): 13.1 Book Value/Share: 0.61 Long-Term Liabilities (mil) : - Price/Book : 4.20 - ------------------------------------------------------------------------------------------------------------------------------------ Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 02/16/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Tender offer for remaining 35.48% is launched 02/19/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Rank Commercial's offer is seen as very fair 03/01/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Whitcoulls advocate advises shareholders not to accept bid 03/06/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Independent directors advise shareholders to reject offer 03/08/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Takeover offer will proceed on March 12 03/12/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Acceptances of 18.5 mil shs; AMP Society tenders its 8.39% 03/13/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Acceptances of 20,678,968;now entitled to 81.61% of Whitcoul 03/14/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Acceptances of 23.28 mil shs; Glob Asst(HK) tenders its 5.6% 03/19/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Tender offer declared unconditional;90% acceptances 03/20/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Guiness Peat acquires 1% of Whit or 10% of shs outstanding 03/21/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 GPG intends to test new buyout law & object compulsory acq'n 03/22/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 RC may have to raise bid when compulsory process begins 03/28/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 GPG places a value of NZ$3.3 to NZ$3.5 per share 03/29/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Price Water is commissioned to provide FO on compulsorily bid 04/04/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Mr Hart says GPG's attempt of greenmail will not work 04/12/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Price Waterhouse valuation due on April 16 04/17/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Price will give its fairness opinion on April 22 04/19/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Stock mkt panel investigating if correct timetable followed 04/22/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Price valuation of offer is that its fair & resonable 04/23/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Shholders have until May 7 to object & force a new appraisal 04/26/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 GPC slams PW appriasal as outrageous and ridiculous 05/02/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 GPG wants AU$.70 more per sh, dismisses charges of greenmail 05/03/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 GPG has until Tuesday to decide what action to take 05/06/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 10 minority shareholders lodge objection and force new report 05/08/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Hold out shareholders force third and final valuation 05/10/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 GPG will NOT join hold-out shldrs forcing 3rd valuation 05/17/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 GPG may pursue case in court; Andersen hired for 3rd value 05/21/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Arthur Andersen must value Whitcoulls offer by June 18 06/13/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Stk exchange panel defends new minorities hold-out rules 06/18/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 99.6 NZ 2.32 Arthur Andersen report values each Whitcoulls sh at NZ$2.54 06/19/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 102.3 NZ 2.54 Offer completed;RC pays hold- outs 2.54 per sh for their shs 07/19/96 Whitcoulls Grp(Rank Coml Ltd) Rank Commercial Ltd 102.3 NZ 2.54 Whitcoulls removed from New Zealand stock exchange today ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Date Announced: 02/19/96 Date Effective: 04/12/96 Date Unconditional: 04/10/96 Status: Completed Target Name: Acquiror Name: Synopsis: Gartmore PLC (National NatWest Group PLC(National NatWest Group (NG), a unit of National Westminster Bank, Westminster Bank (PLC) Westminster Bank PLC) acquired the remaining 25% stake, or 50,387,000 ordinary shares, that it did not already own, in Gartmore (GM) for Location: Location: 2.50 British pounds ($3.88 US) in cash per share, or a total United Kingdom United Kingdom value of 125.97 mil pounds ($195.44 mil), via its tender offer. Alternatively, NG offered loan notes instead of cash. Business Description: Business Description: Concurrently, NG acquired the entire share capital of Investment management Banking holding company Indosuez UK Asset Management (IAM), including IAM's 75% services; holding company interest in Gartmore, from Financiere Indosuez. SIC Codes: SIC Codes: 6726 6722 6282 6799 6719 6000 6712 Ticker Symbol: Ticker Symbol: GMR - Advisors: Advisors: Phoenix Securities NatWest Markets Kleinwort Benson Limited The Blackstone Group FINANCIAL DATA (mil): STG Date of LTM Fin. 12/31/94 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 --------- --------- --------- --------- --------- --------- Rank Value(2) : 126.0 STG Attitude :Friendly Net Sales 97.6 97.6 67.2 49.5 - - Value (1) : 126.0 STG Defensive Pre-Tax Inc. 35.3 35.3 -4.6 -8.4 - - Price/Share : 2.50 Tactics : Not Applicable Net Income 23.9 23.9 19.1 0.2 - - Shares Out(mil) : 201.55 EPS - - - - - - Assets 299.8 299.8 386.2 66.8 - - Net Assets 42.3 42.3 29.5 -50.7 - - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : 21.053 Cash & Marketable Securities (mil): 250.8 Book Value/Share: 2.06 Long-Term Liabilities (mil) : - Price/Book : 1.22 Summary of Related Transactions Transaction Type Date Status Participant(s) Acq. Part. Int. 10/03/95 Intent W Gartmore PLC / NationsBank Corp,Charlotte,NC Acq. Maj. Int. 02/19/96 Completed Indosuez UK Asset Management / National Westminster Bank - ----------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
72
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 09/29/95 Gartmore PLC Seeking Buyer - - Search for buyer(s) for a 75% interest is disclosed 10/02/95 Gartmore PLC Seeking Buyer - - Merrill Lynch and others all hoping to get the 75% 10/03/95 Gartmore PLC Seeking Buyer - - NationsBank holds option to to acq'r up to 25% stake 10/03/95 Gartmore PLC NationsBank Corp,Charlotte,NC - - Option to acquire 25% stake is granted 10/11/95 Gartmore PLC Seeking Buyer - - Dresdner,West LB, and BHF Bank said to be potential bidders 10/30/95 Gartmore PLC Seeking Buyer - - IndoSuez and Gartmore hope to sell 75% by December 31, 1995 12/21/95 Gartmore PLC Seeking Buyer - - Bankgesellschaft Berlin to announce acq'n plans in Jan 01/17/96 Gartmore PLC Seeking Buyer - - Talks with number of parties has not resulted in any offers 02/19/96 Gartmore PLC NatWest Group PLC(Natl Westmi) 126.0 STG 2.50 Tender offer for remaining 25% is intended 02/19/96 Indosuez UK Asset Management National Westminster Bank 340.0 STG 2.25 Acquisition plans are disclosed 02/21/96 Gartmore PLC National Westminster Bank 340.0 STG 2.25 Acquisition of 75% interest is completed 02/22/96 Gartmore PLC National Westminster Bank 126.0 STG 2.50 NationsBank decides not to exercise option to acquire 25% 02/22/96 Gartmore PLC NationsBank Corp,Charlotte,NC - - Option to acquire 25% stake is withdrawn 02/26/96 Gartmore PLC NatWest Group PLC(Natl Westmi) 126.0 STG 2.50 Tender offer for remaining 25% stake is launched 03/19/96 Gartmore PLC NatWest Group PLC(Natl Westmi) 126.0 STG 2.50 Offer is extended until 4/1; Acceptances received for 75.8% 04/02/96 Gartmore PLC NatWest Group PLC(Natl Westmi) 126.0 STG 2.50 Offer is extended until 4/12; accpetances received for 94.1% 04/10/96 Indosuez UK Asset Management National Westminster Bank 340.0 STG 2.25 Acquisition is completed - 04/10/96 Gartmore PLC NatWest Group PLC(Natl Westmi) 126.0 STG 2.50 Tender offer unconditional; NatWest now holds 98.6% of GM 04/12/96 Gartmore PLC NatWest Group PLC(Natl Westmi) 126.0 STG 2.50 Acquisition of remaining 25% interest is completed ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
73
Date Announced: 03/14/96 Date Effective: 05/07/96 Date Unconditional: 05/07/96 Status: Completed Target Name: Acquiror Name: Synopsis: Noble Group Ltd Investor Group A management-led investor group including executive directors Richard Elman and Harindarpal Banga, United Location: Location: Overseas Bank and General Oriental Investments (GOI) Hong Kong Hong Kong acquired the remaining 21.1% stake, or 67,520,000 ordinary shares, in Noble Group (NG) that it did not already own at Business Description: Business Description: 2.05 Hong Kong dollars ($.265 US) in cash per share, or a Wholesale steel products; own Investor group total of HK$138.41 mil ($17.9 mil) via its tender offer. and operate dry bulk cargo Prior to the transaction, Mr Elman held a 58.5% interest in carrier NG, Mr Banga held a 13.5% stake, and GOI held a 6.9% stake. SIC Codes: SIC Codes: 5093 4412 6799 Ticker Symbol: Ticker Symbol: 1073 - Advisors: Advisors: Deutsche Morgan Grenfell Anglo Chinese Corp Finance FINANCIAL DATA (mil): US Date of LTM Fin. 12/31/94 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 --------- --------- --------- --------- --------- --------- Rank Value(2) : 138.4 HK Attitude :Friendly Net Sales 377.9 377.9 254.8 - - - Value (1) : 138.4 HK Defensive Pre-Tax Inc. 9.8 9.8 5.4 - - - Price/Share : 2.05 Tactics : Not Applicable Net Income 9.7 9.7 5.3 - - - Shares Out(mil) : 320.00 EPS 0.034 0.034 0.022 - - - Assets 67.6 67.6 47.3 - - - Net Assets 25.4 25.4 7.4 - - - Techniques: Litigation: No Acquiror Includes Management Outcome : Acquiror is an Investor Group Leveraged Buyout Tender Offer P/E Ratio : Cash & Marketable Securities (mil): 14.8 Tender/Merger Book Value/Share: 0.08 Long-Term Liabilities (mil) : - Management Buyout Price/Book :
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 03/14/96 Noble Group Ltd Investor Group - - Mgmt buyout is intended; pr sh to be between HK$2 & HK$2.05 03/15/96 Noble Group Ltd Investor Group - - Acquisition plans are disclosed 03/25/96 Noble Group Ltd Investor Group 138.4 HK 2.05 Tender offer is launched;terms are disclosed 04/17/96 Noble Group Ltd Investor Group 138.4 HK 2.05 Noble Group has sent documents to shareholders about sale 05/07/96 Noble Group Ltd Investor Group 138.4 HK 2.05 Acquisition of remaining 21% interest is completed ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
74 Date Announced: 03/29/96 Date Effective: 04/26/96 Status: Completed Target Name: Acquiror Name: Synopsis: Great American Management & Equity Holdings Ltd,Chicago, Equity Holdings (EH) acquired the remaining interest in its Investment Inc (Equity Holdings Illinois Great American Management & Investment (GAMI) unit in a Ltd) transaction valued at $63.229 mil. Earlier, EH completed its unsolicited tender offer to acquire the remaining 1.112 mil Location: Location: common shares, in GAMI for $50 in cash per share, by Illinois Illinois accepting 834,676 common shares, raising its interest to 97%. The offer had been conditioned upon at least 90% of Business Description: Business Description: GAMI's shares outstanding being tendered. Provide investment advice and Investment firm financial services SIC Codes: SIC Codes: 6282 8741 6211 Ticker Symbol: Ticker Symbol: GAMI - Advisors: Advisors:
FINANCIAL DATA (mil): US Date of LTM Fin. 09/30/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 -------- -------- -------- -------- -------- -------- Rank Value(2) : 63.3 US Attitude :Unsolic. Net Sales 1,049.9 1,010.3 385.7 33.4 31.6 35.9 Value (1) : 63.3 US Defensive Net Income 150.3 92.4 10.8 -7.2 9.2 7.5 Price/Share : 50.00 Tactics : Not Applicable EPS 13.486 7.973 0.865 -.898 0.59 0.55 Shares Out(mil) : 9.58 Assets 969.3 1,035.0 1,243.5 444.7 486.6 441.6 Cash Flow 98.1 75.6 20.2 -19.4 33.2 2.9 Techniques: Litigation: No Going Private Outcome : Tender Offer Tender/Merger
Stock Premiums -------------- 1 Day Prior : +2.6 P/E Ratio : 3.708 Cash & Marketable Securities (mil): 46.6 1 Week Prior : +4.2 Book Value/Share: 26.91 Short-Term Debt (mil) : 25.8 4 Weeks Prior: +3.6 Price/Book : 1.86 Long-Term Debt (mil) : 307.4
Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event - --------- ------------------------------ ------------------------------ ------- ------ ------------------------------- 03/29/96 Great American Mgmt & Invt Inc Equity Holdings,Chicago,IL 63.2 US 50.00 Unsolicited tender offer is launched 04/08/96 Great American Mgmt & Invt Inc Equity Holdings,Chicago,IL 63.2 US 50.00 Board of directors is neutral regarding offer 04/25/96 Great American Mgmt & Invt Inc Equity Holdings,Chicago,IL 63.2 US 50.00 Tender offer is completed; 834,676 shares tendered 04/26/96 Great American Mgmt & Invt Inc Equity Holdings,Chicago,IL 63.2 US 50.00 Merger is completed - - ----------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
75 Date Announced: 05/09/96 Date Effective: Date Unconditional: Status: Withdrawn Target Name: Acquiror Name: Synopsis: Asean Resources Holdings Ltd Huey Tai International Huey Tai International (HTI) withdrew its tender offer to Huey Tai International) acquire the remaining 32% stake of the ordinary share capital and the remaining outstanding warrants of Asean Location: Location: Resources Holdings (ARH) that it did not already own for an Hong Kong Hong Kong estimated 830.7 mil Kong Hong dollars ($107.41 mil US). HTI offered HK$3 ($.39) per ordinary share and 1 HTI warrant for Business Description: Business Description: every ARH warrant held. The withdrawal was due to ARH Real estate investment firm; Construct industrial buildings shareholders' rejection of HTI's proposal. provide business credit services; own and operate residential and non- residential buildings; holding company SIC Codes: SIC Codes: 6552 6799 6153 6512 6513 6719 1541 1542 Ticker Symbol: Ticker Symbol: ASEH 0706 Advisors: Advisors:
FINANCIAL DATA (mil): STG Date of LTM Fin. 03/31/95 03/31/95 03/31/94 03/31/93 03/31/92 03/31/91 --------- --------- --------- --------- --------- -------- Rank Value(2) : 830.7 HK Attitude :Friendly Net Sales 152.5 152.5 165.9 265.4 113.5 - Value (1) : 830.7 HK Defensive Pre-Tax Inc. 333.5 333.5 275.5 61.9 -11.4 - Price/Share : 3.00 Tactics : Not Applicable Net Income 279.2 279.2 236.9 58.7 -7.6 - Shares Out(mil) : 865.31 EPS 0.323 0.323 0.317 0.096 0.028 - Assets 3,205.7 3,205.7 3,103.5 1,944.5 1,046.7 - Net Assets 2,785.3 2,785.3 2,751.5 1,746.7 695.7 - Techniques: Litigation: No Tender Offer Outcome :
P/E Ratio : Cash & Marketable Securities (mil): 36.0 Book Value/Share: 3.22 Long-Term Liabilities (mil) : - Price/Book :
Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event - --------- ------------------------------ ------------------------------ -------- ------ -------------------------------- 05/09/96 Asean Resources Hldgs(Huey Ta) Huey Tai International - - Tender offer to acquire remaining 32% is launched 07/02/96 Asean Resources Hldgs(Huey Ta) Huey Tai International - - Tender offer to acquire remaining 32% is withdrawn - ----------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
76 Date Announced: 05/21/96 Date Effective: 06/28/96 Date Unconditional: 06/28/96 Status: Completed Target Name: Acquiror Name: Synopsis: Cie d'Investissement de Banque Nationale de Paris{BNP} Banque Nationale de Paris (BNP) completed its stock swap Paris (Banque Nationale de tender offer for the remaining 16.1% stake, or 3,969,616 Paris) ordinary shares, in Cie d'Investissement de Paris (CI) that it did not already own for 785.98 mil French francs ($150.67 Location: Location: mil US). BNP offered 1 new ordinary share for every CI France France ordinary share held. Based on BNP's closing stock price of 198 francs ($37.96) on May 20, the last full trading day Business Description: Business Description: prior to the announcement, each CI share was valued at 198 Investment firm Bank francs ($37.96). SIC Codes: SIC Codes: 6799 6000 Ticker Symbol: Ticker Symbol: - BNPP Advisors: Advisors: Banexi (Paris)
FINANCIAL DATA (mil): - Date of LTM Fin. --------- --------- --------- --------- --------- --------- Rank Value(2) : 786.0 FFR Attitude :Friendly Net Sales - - - - - - Value (1) : 786.0 FFR Defensive Pre-Tax Inc. - - - - - - Price/Share : 198.00 Tactics : Not Applicable Net Income - - - - - - Shares Out(mil) : 24.66 EPS - - - - - - Assets - - - - - - Net Assets - - - - - - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger Stock Swap
P/E Ratio : Cash & Marketable Securities (mil): - Book Value/Share: - Long-Term Liabilities (mil) : - Price/Book :
Summary of Related Transactions
Transaction Type Date Status Participant(s) Acq. Maj. Int. 06/21/96 Withdrawn Cie d'Investissement de Paris / Schweizerischer Bankverein
Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event - ---------- ------------------------------ ------------------------------ ----------- ------- ----------------------------- 01/28/96 Cie d'Investissement de Paris BNP 786.0 FFR 198.00 Acquisition of 16.1% stake is completed 05/21/96 Cie d'Investissement de Paris BNP 786.0 FFR 198.00 Tender offer for remaining 16.1% stake is launched 05/23/96 Cie d'Investissement de Paris BNP 786.0 FFR 198.00 Cie d'Investissement board approves offer from BNP 06/21/96 Cie d'Investissement de Paris Schweizerischer Bankverein 4,240.7 FFR 205.00 Plans to raise stake to 86.9% from 3% are disclosed 06/24/96 Cie d'Investissement de Paris Schweizerischer Bankverein 4,240.7 FFR 205.00 SBC extended its offer for CIP after BNP turned down offer 06/25/96 Cie d'Investissement de Paris Schweizerischer Bankverein 4,240.7 FFR 205.00 SBC withdraws it tender offer - - ----------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
77 Date Announced: 05/27/96 Date Effective: 02/16/97 Status: Completed Target Name: Acquiror Name: Synopsis: SyStemix Inc(Novartis AG) Novartis AG Novartis completed its tender offer for the remaining 6,233,311 common shares, or 26.8% of SyStemix shares Location: Location: outstanding, that it did not already own, for an amended California Switzerland $19.5 in cash per share, or a total value of $107.56 mil, by accepting 6,233,311 common shares, or 26.3% of SyStemix. Business Description: Business Description: Originally, NV offered $17 per share, or a total value of Manufacture and develop Manufacture pharmaceuticals $93.76 mil. cellular processes and including self-medications and products for the treatment of non-prescription drugs; toxic side effects from manufacture optical and chemotherapy and other medical ophthalmic products including therapies contact lenses; research and develop crop protection products including pesticides; produce nutricional products including baby formula and baby canned foods SIC Codes: SIC Codes: 2836 2834 8731 2834 3851 2879 2023 2032 Ticker Symbol: Ticker Symbol: STMX - Advisors: Advisors: Lehman Brothers Morgan Stanley
FINANCIAL DATA (mil): US Date of LTM Fin. 03/31/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- ---------- Rank Value(2) : 119.4 US Attitude :Friendly Net Sales 4.7 3.6 4.1 6.4 5.2 1.8 Value (1) : 107.6 US Defensive Net Income -45.9 -48.1 -44.4 -18.5 -15.9 -8.3 Price/Share : 19.50 Tactics : Not Applicable EPS -3.162 -3.428 -4.542 -1.895 -1.70 -1.348 Shares Out(mil) : 19.34 Assets 106.4 120.2 82.3 124.3 130.2 38.1 Cash Flow -39.2 -41.8 -39.7 -21.5 -21.1 -7.4 Techniques: Litigation: No Going Private Outcome : Tender Offer Tender/Merger
Stock Premiums -------------- 1 Day Prior : +4.7 P/E Ratio : Cash & Marketable Securities (mil): 0.1 1 Week Prior : +69.6 Book Value/Share: 6.08 Short-Term Debt (mil) : 6.9 4 Weeks Prior: +59.2 Price/Book : 3.21 Long-Term Debt (mil) : 5.0
Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event - --------- ------------------------------ ------------------------------ -------- ------ -------------------------------- 05/24/96 SyStemix Inc(Sandoz AG) Sandoz Ltd 93.8 US 17.00 Unsolicited offer to acquire remaining 27% is disclosed 06/06/96 SyStemix Inc(Sandoz AG) Sandoz Ltd 93.8 US 17.00 3 independent directors are considering proposal by Sandoz 10/29/96 SyStemix Inc(Sandoz AG) Sandoz Ltd 93.8 US 17.00 SyStemix rejects Sandoz $17 per share offer 01/13/97 SyStemix Inc(Novartis AG) Sandoz Ltd 107.6 US 19.50 Terms are amended - 01/16/97 SyStemix Inc(Novartis AG) Novartis AG 107.6 US 19.50 Tender offer is launched - 02/14/97 SyStemix Inc(Novartis AG) Novartis AG 107.6 US 19.50 Tender offer is completed; 4.7 mil shares accepted 02/16/97 SyStemix Inc(Novartis AG) Novartis AG 107.6 US 19.50 Merger is completed - - ----------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
78 Date Announced: 07/01/96 Date Effective: 08/08/96 Date Unconditional: 07/18/96 Status: Completed Target Name: Acquiror Name: Synopsis: Macallan-Glenlivet PLC Investor Group An investor group comprised of Highland Distilleries (HD) and Suntory (ST) completed its tender offer to acquire the Location: Location: remaining 49% in Macallan-Glenlivet (MG) that it did not United Kingdom United Kingdom already own for an estimated 88 mil British pounds ($137.17 mil US) in cash. HD offered 1.525 pounds ($2.38) per Business Description: Business Description: ordinary share and 5.234 pounds ($8.16) per 1 pound ($1.56) Produce distilled liquors Investor group nominal of MG's convertible unsecured loan stock. MG shareholders had a choice of receiving all or part of the SIC Codes: SIC Codes: consideration in convertible bonds or loan notes. Earlier, 2085 6799 HD acquired 26% in MG from Remy Cointreau. Ticker Symbol: Ticker Symbol: MGLT - Advisors: Advisors: SBC Warburg Baring Brothers & Co., Limited
FINANCIAL DATA (mil): STG Date of LTM Fin. 12/31/95 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 88.0 STG Attitude :Friendly Net Sales 18.7 18.7 17.2 15.5 16.8 17.4 Value (1) : 88.0 STG Defensive Pre-Tax Inc. 7.1 7.1 6.7 5.7 7.0 7.3 Price/Share : 1.53 Tactics : Not Applicable Net Income 5.7 5.7 4.8 4.2 5.2 5.2 Shares Out(mil) : 117.38 EPS 0.049 0.049 0.041 0.036 0.045 0.049 Assets 63.6 63.6 60.2 55.6 52.1 48.4 Net Assets 55.1 55.1 50.8 47.4 44.5 40.2 Techniques: Litigation: No Acquiror is an Investor Group Outcome : Tender Offer Tender/Merger
P/E Ratio : 31.122 Cash & Marketable Securities (mil): 8.9 Book Value/Share: 0.47 Long-Term Liabilities (mil) : - Price/Book : 3.25
Summary of Related Transactions
Transaction Type Date Status Participant(s) Acq. Part. Int. 01/22/96 Completed Macallan-Glenlivet PLC / Highland Distilleries Co PLC
Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event - -------- ------------------------------ ------------------------------ ----- ------ -------------------------------- 07/01/96 Macallan-Glenlivet PLC Investor Group - - Tender offer for remaining 49% stake is launched 07/12/96 Macallan-Glenlivet PLC Investor Group - - Macallan board reluctantly recommends offer to sh holders 07/17/96 Macallan-Glenlivet PLC Investor Group - - Highland shareholders approve offer at EGM 07/18/96 Macallan-Glenlivet PLC Investor Group - - Offer unconditional and extended to Aug 1, 1996 08/06/96 Macallan-Glenlivet PLC Investor Group - - Highland and Suntory now hold 98.1% on fully diluted basis 08/08/96 Macallan-Glenlivet PLC Investor Group - - Tender offer is completed - - ----------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
79 Date Announced: 08/08/96 Date Effective: 09/17/96 Status: Completed Target Name: Acquiror Name: Synopsis: Roto-Rooter Inc(Chemed Corp) Chemed Corp Chemed acquired the remaining 45.06% stake, or 2.45 mil common shares, that it did not already own in Roto-Rooter Location: Location: (RR) for $41 in cash per share, or a total value of $93.58 Ohio Ohio mil. Earlier, Chemed completed its tender offer for the remaining 2.15 mil common shares, that it did not already Business Description: Business Description: own, in Roto-Rooter by accepting 2.1 mil common shares, or Provide plumbing services; Manufacture industrial 90.8% of the company's common stock outstanding. manufactures related equipment chemicals, water and waste and consumer products treatment chemicals, soap, detergents, and janitorial equipment and supplies; provide residential sewer and drain cleaning services SIC Codes: SIC Codes: 7699 3589 2842 6794 2819 2899 2841 2842 7699 4952 Ticker Symbol: Ticker Symbol: ROTO CHE Advisors: Advisors: J. J. B. Hilliard, W. L. Lyons CS First Boston Goldman, Sachs & Co.
FINANCIAL DATA (mil): US Date of LTM Fin. 06/30/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 93.6 US Attitude :Friendly Net Sales 190.5 179.7 171.9 136.4 104.7 84.8 Value (1) : 93.6 US Defensive Net Income 10.7 9.8 9.0 8.4 6.9 5.9 Price/Share : 41.00 Tactics : Shareholder EPS 2.054 1.897 1.731 1.586 1.327 1.182 Shares Out(mil) : 5.44 Assets 154.1 149.9 137.4 129.0 93.5 83.3 Cash Flow 24.9 23.6 23.2 19.5 15.1 11.6 Techniques: Litigation: No Tender Offer Outcome : Tender/Merger
Stock Premiums -------------- 1 Day Prior : +12.3 P/E Ratio : 19.961 Cash & Marketable Securities (mil): 3.8 1 Week Prior : +12.3 Book Value/Share: 14.50 Short-Term Debt (mil) : - 4 Weeks Prior: +11.2 Price/Book : 2.83 Long-Term Debt (mil) : 6.9
Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event - --------- ------------------------------ ------------------------------ ------- ------ -------------------------------- 08/08/96 Roto-Rooter Inc(Chemed Corp) Chemed Corp 93.6 US 41.00 Tender offer is planned - 08/09/96 Roto-Rooter Inc(Chemed Corp) Chemed Corp 93.6 US 41.00 Tender offer to be launched on August 14 08/14/96 Roto-Rooter Inc(Chemed Corp) Chemed Corp 93.6 US 41.00 Tender offer is launched - 08/27/96 Roto-Rooter Inc(Chemed Corp) Chemed Corp 93.6 US 41.00 Special committee of Roto's board takes a neutral position 08/30/96 Roto-Rooter Inc(Chemed Corp) Chemed Corp 93.6 US 41.00 Roto-Rooter advisor says offer is fair 09/12/96 Roto-Rooter Inc(Chemed Corp) Chemed Corp 93.6 US 41.00 Tender offer is completed - 09/17/96 Roto-Rooter Inc(Chemed Corp) Chemed Corp 93.6 US 41.00 Acquisition of remaining 41.85% is completed - ----------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
80 Date Announced: 08/26/96 Date Effective: 12/31/96 Status: Completed Target Name: Acquiror Name: Synopsis: Bankers Life Holding Corp Conseco Inc Conseco acquired the remaining 11.5% stake, or 5.844 mil (Conseco Inc) common shares, which it did not already own, in Bankers Life Holding (BLH) for $25 in Conseco common shares per BLH Location: Location: share, or a total value of $120.838 mil. Illinois Indiana Business Description: Business Description: Life and casualty insurance Insurance holding company; company provide financial services SIC Codes: SIC Codes: 6311 6331 6719 6311 6321 6331 6351 6719 6282 Ticker Symbol: Ticker Symbol: BLH CNC Advisors: Advisors:
FINANCIAL DATA (mil): US Date of LTM Fin. 06/30/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 120.8 US Attitude :Friendly Net Sales 1,552.0 1,527.2 1,437.9 1,456.3 1,236.3 1,185.0 Value (1) : 120.8 US Defensive Net Income 140.3 128.3 133.6 136.0 68.6 45.4 Price/Share : 25.00 Tactics : Not Applicable EPS 2.777 2.456 2.491 2.629 1.877 1.297 Shares Out(mil) : 50.48 Assets 4,867.3 4,785.2 3,928.8 3,934.8 3,367.5 2,238.6 Cash Flow 468.0 456.7 419.6 443.0 131.2 79.6 Techniques: Litigation: No Not Applicable Outcome :
Stock Premiums -------------- 1 Day Prior : +14.9 P/E Ratio : 9.003 Cash & Marketable Securities (mil): - 1 Week Prior : +10.5 Book Value/Share: 19.87 Short-Term Debt (mil) : - 4 Weeks Prior: +11.7 Price/Book : 1.26 Long-Term Debt (mil) : 297.9
Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event - --------- ------------------------------ ------------------------------ -------- ------ -------------------------------- 08/26/96 Bankers Life Holding(Conseco) Conseco Inc 120.8 US 25.00 Agreement to acquire remaining 9.5% stake is disclosed 12/31/96 Bankers Life Holding(Conseco) Conseco Inc 120.8 US 25.00 Acquisition of remaining 9.5% stake is completed - ----------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
81 Date Announced: 09/04/96 Date Effective: 11/06/96 Date Unconditional: 11/06/96 Status: Completed Target Name: Acquiror Name: Synopsis: Transocean Drilling A/S Sonat Offshore Drilling Inc Sonat Offshore Drilling (SO) completed its mandatory tender offer to acquire the remaining estimated 6% stake, or about Location: Location: 3.16 mil ordinary shares, in Transocean Drilling (TD) that Norway Texas it did not already own at 18.34 British pounds ($28.74 US) per share, for a total of 1.83 mil pounds ($2.87 mil) in Business Description: Business Description: cash. Previously SO agreed to merge with TD in a stock swap Provide oil and gas field Oil drilling contractor transaction. services SIC Codes: SIC Codes: 1389 1381 Ticker Symbol: Ticker Symbol: AKDR RIG Advisors: Advisors:
FINANCIAL DATA (mil): - Date of LTM Fin. --------- --------- --------- --------- --------- --------- Rank Value(2) : 1.8 STG Attitude :Friendly Net Sales - - - - - - Value (1) : 1.8 STG Defensive Pre-Tax Inc. - - - - - - Price/Share : 18.34 Tactics : Not Applicable Net Income - - - - - - Shares Out(mil) : 52.67 EPS - - - - - - Assets - - - - - - Net Assets - - - - - - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger
P/E Ratio : Cash & Marketable Securities (mil): - Book Value/Share: - Long-Term Liabilities (mil) : - Price/Book :
Summary of Related Transactions
Transaction Type Date Status Participant(s) Merger 04/25/96 Completed Transocean Drilling A/S / Sonat Offshore Drilling
Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event - --------- ------------------------------ -------------------------- ----------- ------ ------------------------------ 04/25/96 Transocean Drilling A/S Sonat Offshore Drilling 9,514.2 STG 180.64 Stock swap merger is planned - 05/02/96 Transocean Drilling A/S Sonat Offshore Drilling 9,416.3 STG 178.79 Sonat sweetens merger bid - 05/03/96 Transocean Drilling A/S Reading & Bates Corp 9,633.4 STG 182.90 Competing stock swap acquisition is planned 05/03/96 Transocean Drilling A/S Reading & Bates Corp 9,633.4 STG 182.90 Transocean rejects R&B bid for Sonat offer 05/07/96 Transocean Drilling A/S Reading & Bates Corp 9,975.4 STG 189.40 R&B sweetens its bid; no comment from Transocean 05/08/96 Transocean Drilling A/S Reading & Bates Corp 9,975.4 STG 189.40 R&B says it has not yet heard back from Transocean 05/09/96 Transocean Drilling A/S Sonat Offshore Drilling 9,416.3 STG 178.79 Transocean board will pursue merger w/Sonat despite R&B bid 05/10/96 Transocean Drilling A/S Reading & Bates Corp 9,975.4 STG 189.40 Tiger Management,shareholder of 22% of TD,favors R&B offer 05/13/96 Transocean Drilling A/S Reading & Bates Corp 9,975.4 STG 189.40 R&B is to proceed with offer despite rejection by TD board 05/15/96 Transocean Drilling A/S Reading & Bates Corp 9,975.4 STG 189.40 Shares in Transocean have been given a "hold" rating 05/16/96 Transocean Drilling A/S Sonat Offshore Drilling 9,416.3 STG 178.79 TD reaffirms commitment to merger with Sonat Offshore 05/20/96 Transocean Drilling A/S Sonat Offshore Drilling 9,368.9 STG - Terms are sweetened slightly - 05/21/96 Transocean Drilling A/S Sonat Offshore Drilling 9,368.9 STG - Tiger Mgmt agrees to sell its shares to Sonat Offshore 05/22/96 Transocean Drilling A/S Sonat Offshore Drilling 9,368.9 STG - With support of Tiger Mgmt it appears Sonat bid will succeed 06/04/96 Transocean Drilling A/S Reading & Bates Corp 9,975.4 STG 189.40 Tender offer is withdrawn - 06/05/96 Transocean Drilling A/S Sonat Offshore Drilling 9,368.9 STG - Sonat celebrates victory with news or Reading suspending bid 06/06/96 Transocean Drilling A/S Sonat Offshore Drilling 9,368.9 STG - Federal Trade Commission approves Sonat,TD merger 06/06/96 Transocean Drilling A/S Reading & Bates Corp 9,975.4 STG 189.40 R&B says would re-enter race for TD if circumstances right 06/25/96 Transocean Drilling A/S Sonat Offshore Drilling 9,368.9 STG - Transocean CEO hopeful Sonat merger finalized in August 08/05/96 Transocean Drilling A/S Sonat Offshore Drilling 9,368.9 STG - Exchange offer between Sonat and Transocean begins 08/06/96 Transocean Drilling A/S Sonat Offshore Drilling 9,368.9 STG - Deal should be completed on September 3 08/28/96 Transocean Drilling A/S Sonat Offshore Drilling 9,368.9 STG - Norex, who holds 2.7 mil shs in Trans, will sell to Sonat 08/29/96 Transocean Drilling A/S Sonat Offshore Drilling 9,368.9 STG - Norex affiliate which owns 177,500 shs to accept offer 09/03/96 Transocean Drilling A/S Sonat Offshore Drilling 9,368.9 STG - Acquisition of 94% interest is completed 09/04/96 Transocean Drilling A/S Sonat Offshore Drilling 1.8 STG 18.34 Intentions to launch offer for remaining 6% are disclosed 11/06/96 Transocean Drilling A/S Sonat Offshore Drilling 1.8 STG 18.34 Acquisition of remaining 6% stake is completed via tender - ----------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
82 Date Announced: 09/09/96 Date Effective: 09/23/96 Status: Completed Target Name: Acquiror Name: Synopsis: Crocker Realty Trust Inc Highwoods Properties Inc Highwoods Properties (HW) acquired the remaining 23% stake, (Highwoods Properties Inc) which it did not already own, in Crocker Realty Trust (CRK) for approximately $76.13 mil. Earlier, HW acquired a 77% Location: Location: interest, or 20.79 mil common shares, in CRK, including the Florida North Carolina 47.6% stake held by Apollo Real Estate Advisors and the 32.6% stake held by AEW Partners, for $11.02 in cash per Business Description: Business Description: share, or a total value of $537.54 mil, including $240 mil Real estate investment firm Real estate investment trust in the assumption of liabilities. SIC Codes: SIC Codes: 6798 6519 6798 Ticker Symbol: Ticker Symbol: CKT HIW Advisors: Advisors:
FINANCIAL DATA (mil): US Date of LTM Fin. 06/30/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 76.1 US Attitude :Friendly Net Sales 60.5 43.3 37.0 - - - Value (1) : 76.1 US Defensive Net Income 4.9 4.3 6.7 - - - Price/Share : 11.88 Tactics : Not Applicable EPS 0.22 0.31 - - - - Shares Out(mil) : 28.24 Assets 416.1 324.7 223.2 - - - Cash Flow 35.0 27.6 26.1 - - - Techniques: Litigation: No Not Applicable Outcome :
Stock Premiums -------------- 1 Day Prior : +18.8 P/E Ratio : 54.000 Cash & Marketable Securities (mil): 9.8 1 Week Prior : +20.3 Book Value/Share: 5.81 Short-Term Debt (mil) : 244.3 4 Weeks Prior: +21.8 Price/Book : 2.05 Long-Term Debt (mil) : -
Summary of Related Transactions
Transaction Type Date Status Participant(s) Acq. Maj. Int. 04/29/96 Completed Crocker Realty Trust Inc / Highwoods Properties Inc
Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event - --------- ------------------------------ ---------------------------- -------- ------ -------------------------------- 04/29/96 Crocker Realty Trust Inc Highwoods Properties Inc 537.5 US 11.02 Agreement to acquire 77% interest is disclosed 09/04/96 Crocker Realty Trust Inc Highwoods Properties Inc 537.5 US 11.02 Crocker shareholders to vote on Highwoods' offer on Sep 20 09/09/96 Crocker Realty Trust Inc Highwoods Properties Inc 537.5 US 11.02 Acquisition of 77% interest is completed 09/09/96 Crocker Realty Trust Inc Highwoods Properties Inc - - Agreement to acquire the remaining 23% is disclosed 09/23/96 Crocker Realty Trust Inc Highwoods Properties Inc - - Acquisition of remaining 23% is completed - ----------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
83 Date Announced: 09/17/96 Date Effective: Date Unconditional: Status: Withdrawn Target Name: Acquiror Name: Synopsis: Multi-Purpose Capital Holdings Multi-Purpose Holdings Bhd Multi-Purpose Holdings withdrew its mandatory tender offer Bhd (Multi-Purpose Holdings) to acquire the remaining 23.6% stake, or 52,000,000 ordinary shares, that it did not already own in Multi-Purpose Capital Location: Location: Holdings for 2.60 Malaysian ringgit ($1.04 US) in cash per Malaysia Malaysia share, or a total of 135.2 mil ringgit ($54.18 mil). The withdrawal was due to the refusal by the Malaysian Business Description: Business Description: Securities Commission to approve the offer. Investment holding company Investment holding company SIC Codes: SIC Codes: 6799 6719 6799 6719 Ticker Symbol: Ticker Symbol: - MLPM Advisors: Advisors:
FINANCIAL DATA (mil): RG Date of LTM Fin. 12/31/95 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- ---------- Rank Value(2) : 135.2 RG Attitude :Friendly Net Sales 2,874.0 2,874.0 2,612.1 2,548.4 1,841.5 1,253.0 Value (1) : 135.2 RG Defensive Pre-Tax Inc. 525.9 525.9 449.9 419.6 304.9 202.8 Price/Share : 2.60 Tactics : Not Applicable Net Income 131.5 131.5 124.3 78.0 56.3 48.6 Shares Out(mil) : 220.34 EPS 0.175 0.175 0.166 0.104 0.075 0.065 Assets 9,703.6 9,703.6 7,177.7 6,265.1 5,053.2 4,112.4 Net Assets 2,945.2 2,945.2 2,445.1 1,928.3 1,352.9 1,178.9 Techniques: Litigation: No Tender Offer Outcome : Tender/Merger
P/E Ratio : 14.857 Cash & Marketable Securities (mil): 748.7 Book Value/Share: 1.83 Long-Term Liabilities (mil) : - Price/Book : 1.42
Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event - --------- ------------------------------ ---------------------------- -------- ------ -------------------------------- 09/17/96 Multi-Purpose Capital Holdings Multi-Purpose Holdings Bhd 135.2 RG 2.60 Tender offer for remaining 23.6% stake is launched 12/06/96 Multi-Purpose Capital Holdings Multi-Purpose Holdings Bhd 135.2 RG 2.60 Tender offer for remaining 23.6% stake is withdrawn - ----------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
84
Date Announced: 09/20/96 Date Effective: 12/11/96 Date Unconditional: 12/11/96 Status: Completed Target Name: Acquiror Name: Synopsis: Lloyds Abbey Life PLC (Lloyds Lloyds TSB Group PLC Lloyds TSB Group (TSB) acquired the remaining 37.4% stake, TSB Group PLC) or 262.04 mil ordinary shares, in Lloyds Abbey Life (LAL) that it did not already own in its tender offer for 1.66 bil Location: Location: British pounds ($2.59 bil US). TSB offered 6 new ordinary United Kingdom United Kingdom shares and 3 pounds ($4.76) cash for every 7 LAL shares held. Based on TSB's closing stock price of 3.91 pounds Business Description: Business Description: ($6.08) on Sep 19, 1996, each LAL share was valued at 6.35 Insurance company; holding Bank pounds ($9.88). Alternatively, TSB offered LAL shareholders company the option of receiving cash for half of their entitlement to TSB shares. SIC Codes: SIC Codes: 6311 6321 6331 6719 6000 Ticker Symbol: Ticker Symbol: LLOL - Advisors: Advisors: SBC Warburg Baring Brothers & Co., Limited FINANCIAL DATA (mil): STG Date of LTM Fin. 12/31/95 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 1,664.3 STG Attitude :Friendly Net Sales - - - - - - Value (1) : 1,664.3 STG Defensive Pre-Tax Inc. -23.3 -23.3 - - - - Price/Share : 6.35 Tactics : Not Applicable Net Income -23.3 -23.3 - - - - Shares Out(mil) : 700.64 EPS - - - - - - Assets - - - - - - Net Assets - - - - - - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : Cash & Marketable Securities (mil): - Book Value/Share: - Long-Term Liabilities (mil) : - Price/Book :
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 09/20/96 Lloyds Abbey Life PLC Lloyds TSB Group PLC 1,533.3 STG 5.85 Intentions to launch tender for remaining 37.4% disclosed 10/11/96 Lloyds Abbey Life PLC Lloyds TSB Group PLC 1,533.3 STG 5.85 Tender offer to acquire 12/11/96 Lloyds Abbey Life PLC Lloyds TSB Group PLC 1,533.3 STG 58.85 Acquisition of remaining 37.4% is completed via tender offer ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
85
Date Announced: 10/07/96 Date Effective: 01/17/97 Date Unconditional: 01/17/97 Status: Completed Target Name: Acquiror Name: Synopsis: Calor Group PLC(SHV Holding SHV Holding Co Ltd(SHV SHV Holdings Co Ltd, a unit of of SHV Holdings NV, completed to Ltd/SHV Holdings NV) Holdings NV) its tender offer to acquire the remaining 48.43% interest, or 81,697,437 ordinary shares, in Calor Group that it did Location: Location: not already own, at 3 British pounds ($4.69 US) in cash per United Kingdom United Kingdom share, or a total of 245.09 mil pounds ($383.08 mil). Alternatively, SHV offered Calor Group 3 pounds ($4.69) in Business Description: Business Description: loan notes per share, or a total of 245.09 mil ($383.08 Produce, distribute and retail Wholesale coal, electrical mil). gas and liquid petroleum; own appliances, furnishings, and operate sporting goods furniture and jewelry; holding stores; holding company company SIC Codes: SIC Codes: 4925 5984 1321 5941 6719 5052 5064 5021 5023 5094 6719 Ticker Symbol: Ticker Symbol: CGFL - Advisors: Advisors: Kleinwort Benson Limited SBC Warburg FINANCIAL DATA (mil): STG Date of LTM Fin. 12/31/95 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 245.1 STG Attitude :Friendly Net Sales 272.5 272.5 271.9 295.9 311.0 362.2 Value (1) : 245.1 STG Defensive Pre-Tax Inc. 36.7 36.7 48.8 51.5 33.6 48.8 Price/Share : 3.00 Tactics : Not Applicable Net Income 26.1 26.1 32.2 32.8 20.2 34.3 Shares Out(mil) : 168.70 EPS 0.146 0.146 0.191 0.195 0.12 0.181 Assets 319.5 319.5 312.7 301.8 321.6 354.8 Net Assets 191.7 191.7 203.2 190.6 182.3 179.6 Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : 20.548 Cash & Marketable Securities (mil): 21.0 Book Value/Share: 1.13 Long-Term Liabilities (mil) : - Price/Book : 2.65
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ----------------------------- 10/07/96 Calor Group PLC(SHV Holding) SHV Holding Co Ltd 245.1 STG 3.00 Tender offer to acquire 10/08/96 Calor Group PLC(SHV Holding) SHV Holding Co Ltd 245.1 STG 3.00 Calor directors recommend offer to shareholders 01/17/97 Calor Group PLC(SHV Holding) SHV Holding Co Ltd 245.1 STG 3.00 Tender offer is completed; Calor shares are delisted ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
86
Date Announced: 10/10/96 Date Effective: 11/27/96 Status: Completed Target Name: Acquiror Name: Synopsis: WCI Steel Inc(Renco Group Inc) Renco Group Inc Renco Group (RG) acquired the remaining 15.53% stake in WCI Steel (WCI) that it did not already own in a transaction Location: Location: valued at $56.54 mil. Earlier, RG completed its tender offer Ohio New York to acquire the remaining 15.53% stake, or 5,654,500 common shares, of WCI for $10 in cash per share by accepting Business Description: Business Description: 5,397,623 shares, or 14.8% of WCI, raising its stake in WCI Manufacture specialized and Manufacture steel products, to 99.27%. non-specialized steel; furniture, handbags, and wire products include hot rolled products high carbon, alloy and high strength, silicon electrical, nickel flash terne and galvanized steel SIC Codes: SIC Codes: 3312 3312 3325 2511 2514 3171 3496 Ticker Symbol: Ticker Symbol: WRN - Advisors: Advisors: Gleacher NatWest Donaldson, Lufkin & Jenrette FINANCIAL DATA (mil): US Date of LTM Fin. 07/31/96 10/31/95 10/31/94 10/31/93 10/31/92 10/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 56.5 US Attitude :Friendly Net Sales 597.5 631.0 709.4 578.6 515.7 507.1 Value (1) : 56.5 US Defensive Net Income 3.2 15.5 30.9 14.2 0.0 1.0 Price/Share : 10.00 Tactics : Not Applicable EPS 0.087 0.423 0.937 0.441 0.001 -.008 Shares Out(mil) : 36.40 Assets 571.9 519.2 481.6 396.3 381.2 - Cash Flow 48.5 68.7 102.1 69.3 38.2 32.9 Techniques: Litigation: No Going Private Outcome : Tender Offer Tender/Merger Stock Premiums -------------- 1 Day Prior : +17.6 P/E Ratio : 114.943 Cash & Marketable Securities (mil): 138.6 1 Week Prior : +29.0 Book Value/Share: 2.02 Short-Term Debt (mil) : 2.4 4 Weeks Prior: +77.8 Price/Book : 4.96 Long-Term Debt (mil) : 209.4
87
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- -------------------------------- -------------------------- ---------- ------- -------------------------- --- 10/10/96 WCI Steel Inc(Renco Group Inc) Renco Group Inc 56.5 US 10.00 Offer to acquire remaining 16% is disclosed 10/23/96 WCI Steel Inc(Renco Group Inc) Renco Group Inc 56.5 US 10.00 WCI board approve of Renco Group offer 10/31/96 WCI Steel Inc(Renco Group Inc) Renco Group Inc 56.5 US 10.00 Tender offer is launched - 11/25/96 WCI Steel Inc(Renco Group Inc) Renco Group Inc 56.5 US 10.00 Tender offer is completed; acceptances of 5,397,623 shs 11/27/96 WCI Steel Inc(Renco Group Inc) Renco Group Inc 56.5 US 10.00 Acquisition of remaining 15.53% stake is completed --------------------------------------------------------------------------------------------------------------------------- --- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
88
Date Announced: 10/23/96 Date Effective: 12/12/96 Date Unconditional: 12/12/96 Status: Completed Target Name: Acquiror Name: Synopsis: Societe Europeene de Societe Nationale d'Etudes et French state-owned Societe Nationale d'Etudes et de Propulsion (SEP) de Constructions de Moteurs Contructiones de Moteurs d'Aviation (SNCA) completed its (SNECMA/France) d'Aviation SA tender offer to acquire the remaining 48.74% stake, or 1,631,815 ordinary shares, in Societe Europeene de Location: Location: Propulsion (SEP), that it did not already own for 625 French France France francs ($122 US) per share, or a total of 1.02 bil francs ($199.1 mil) Business Description: Business Description: Manufacture rocket propulsion Manufacture aircraft engines, systems aircraft parts, motor vehicle parts and accessories SIC Codes: SIC Codes: 3761 3764 3769 3724 3728 3714 Ticker Symbol: Ticker Symbol: EDPP - Advisors: Advisors: FINANCIAL DATA (mil): FFR Date of LTM Fin. 12/31/95 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 1,020.0 FFR Attitude :Friendly Net Sales 5,431.0 5,431.0 4,895.0 4,556.0 4,562.0 4,663.0 Value (1) : 1,020.0 FFR Defensive Pre-Tax Inc. 390.0 390.0 331.0 229.0 180.0 193.0 Price/Share : 625.00 Tactics : Not Applicable Net Income 175.0 175.0 211.0 162.0 114.0 168.0 Shares Out(mil) : 3.35 EPS - - - - - - Assets 7,084.0 7,084.0 5,291.0 4,622.0 5,184.0 5,395.0 Net Assets 1,232.0 1,232.0 1,146.0 1,056.0 987.0 882.0 Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : 11.958 Cash & Marketable Securities (mil): - Book Value/Share: 367.98 Long-Term Liabilities (mil) : - Price/Book : 1.70
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------- -------------------------- ------------- ------ ------------------------------ 10/23/96 SEP(SNECMA/France) SNECMA(France) - - Intentions to acquire remaining 48.74% disclosed 10/31/96 SEP(SNECMA/France) SNECMA(France) 1,020.0 FFR 625.00 Tender offer for remaining 48.74% stake is launched 11/14/96 SEP(SNECMA/France) SNECMA(France) 1,020.0 FFR 625.00 Financial Markets Committee finds offer acceptable 12/12/96 SEP(SNECMA/France) SNECMA(France) 1,020.0 FFR 625.00 SNECP entitled to 95.57%;offer completed;compulsory to follow ----------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
89
Date Announced: 10/24/96 Date Effective: 12/13/96 Date Unconditional: 12/13/96 Status: Completed Target Name: Acquiror Name: Synopsis: GCG Inc(USG Corp) USG Corp USG completed its tender offer to acquire the remaining 24% stake, or 6.025 mil common shares, which it did not already Location: Location: own, in CGC for 11 Canadian dollars ($8.176 US) in cash, per Canada Illinois share, or a total of C$66.28 mil ($49.26 mil), by accepting 5.8 mil common shares. The offer had been subject to a Business Description: Business Description: minimum of 5.43 mil shares, or 90% of shares not owned by Manufacture and wholesale Manufacture gypsum wallboard, USG, being tendered. The transaction had been been subject gypsum wallboard, drywall wood fiber, metal products and to regulatory approval. joint compounds, suspended interior decorating ceiling systems, acoustical accessories; provide interior ceiling tile, raised access decorating services; holding floor systems, soil company conditioners, safety grating, shower and tub enclosures and mineral fiber insulation SIC Codes: SIC Codes: 3275 3296 3299 5032 5033 5039 3275 3292 2493 3312 3354 7389 6719 Ticker Symbol: Ticker Symbol: GYP USG Advisors: Advisors: ScotiaMcLeod RBC Dominion Securities JP Morgan & Co. Inc. FINANCIAL DATA (mil): - Date of LTM Fin. --------- --------- --------- --------- --------- --------- Rank Value(2) : 66.3 C Attitude :Friendly Net Sales - - - - - - Value (1) : 66.3 C Defensive Pre-Tax Inc. - - - - - - Price/Share : 11.00 Tactics : Not Applicable Net Income - - - - - - Shares Out(mil) : 25.11 EPS - - - - - - Assets - - - - - - Net Assets - - - - - - Techniques: Litigation: No Going Private Outcome : Tender Offer P/E Ratio : Cash & Marketable Securities (mil): - Book Value/Share: - Long-Term Liabilities (mil) : - Price/Book : Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
90
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 10/24/96 GCG Inc USG Corp 66.3 C 11.00 Intentions to launch tender offer are disclosed 10/31/96 GCG Inc USG Corp 66.3 C 11.00 Tender offer for remaining 24% interest is launched 12/03/96 GCG Inc USG Corp 66.3 C 11.00 Offer is extended until Dec 13; 5.29 mil shares tendered 12/13/96 GCG Inc USG Corp 66.3 C 11.00 Tender offer is completed; 5.8 mil shares tendered ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
91
Date Announced: 10/30/96 Date Effective: Date Unconditional: Status: Withdrawn Target Name: Acquiror Name: Synopsis: San Miguel Brewery Hong Kong Neptunia Corp(San Miguel Corp) Neptunia, a unit of Philippine state-owned San Miguel, Ltd (Neptunia Corp/San Miguel withdrew its intentions to launch a tender offer for the Corp) remaining 36% stake, or 134,707,500 ordinary shares, that it did not already own in San Miguel Brewery Hong Kong for 3.75 Location: Location: Hong Kong dollars ($.485 US) in cash per share, or a total Hong Kong Philippines of HK$505.2 ($65.32 mil). Business Description: Business Description: Produce beer and soft drink; Produce beer; investment firm holding company SIC Codes: SIC Codes: 2082 2086 6719 2082 6799 Ticker Symbol: Ticker Symbol: SAN - Advisors: Advisors: JP Morgan & Co. Inc. FINANCIAL DATA (mil): HK Date of LTM Fin. 12/31/95 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 505.2 HK Attitude :Friendly Net Sales 1,268.5 1,268.5 1,224.0 1,186.5 1,279.1 1,208.5 Value (1) : 505.2 HK Defensive Pre-Tax Inc. 200.1 200.1 186.5 51.8 73.4 102.3 Price/Share : 3.75 Tactics : Not Applicable Net Income 165.9 165.9 132.9 32.2 52.5 91.0 Shares Out(mil) : 374.19 EPS 0.444 0.444 8.12 0.086 0.141 0.244 Assets 3,433.3 3,433.3 3,736.0 1,192.6 1,240.1 1,111.3 Net Assets 2,251.0 2,251.0 2,094.1 692.1 660.4 671.7 Techniques: Litigation: No Not Applicable Outcome : P/E Ratio : 8.446 Cash & Marketable Securities (mil): 1,021.3 Book Value/Share: 5.58 Long-Term Liabilities (mil) : - Price/Book : 0.67
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 10/30/96 San Miguel Brewery Hong Kong Neptunia Corp(San Miguel Corp) 505.2 HK 3.75 Intentions to launch tender offer for remaining 36% discl 04/05/97 San Miguel Brewery Hong Kong Neptunia Corp(San Miguel Corp) 505.2 HK 3.75 Intentions to launch tend offr for remaing 36% are withdrawn - ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
92
Date Announced: 11/11/96 Date Effective: 07/18/97 Date Unconditional: 07/18/97 Status: Completed Target Name: Acquiror Name: Synopsis: Telecom Italia SpA(Societa Telecom Italia SpA(Istitue Societa Finanziaria Telefonica (STET), a 61%-owned unit of Finanziaria telefonica/LKt/ per la Riconstruzione Italian state-owned Istituto per la Riconstruzione Italy) Industriale) Industriale (IRI), completed its merger with its 62%-owned unit Telecom Italia (TI), prior to STET's privatization, in Location: Location: a stock swap valued at 10.696 tril Italian lire ($6.32 bil Italy Italy US). STET offered 10 new shs ord for every 18 TI shs held. Based on STET's closing price of 7,631 lire ($4.5) on Mar Business Description: Business Description: 13, each TI sh was valued at 4,239.44 lire ($2.5). Provide telecommunication and Provide telecommunications Previously, IRI intended to split off its 64% in STET. Upon installation services services; holding company completion, STET was renamed TI. SIC Codes: SIC Codes: 4813 4812 4899 1731 4813 4812 4899 6719 Ticker Symbol: Ticker Symbol: - TI Advisors: Advisors: Istituto Mobilaire Italiano JP Morgan & Co. Inc. Deutsche Morgan Grenfell Giubergia Warburg SIM SpA Morgan Stanley FINANCIAL DATA (mil): LIR Date of LTM Fin. 12/31/95 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) :10695533 LIR Attitude :Friendly Net Sales 30088000 30088000 29100000 23404000 21555000 19451000 Value (1) :10695533 LIR Defensive Pre-Tax Inc.4104000.0 4104000.0 3092000.0 1471000.0 998,000.0730,000.0 Price/Share : 4239.44 Tactics : Not Applicable Net Income 1745000.0 1745000.0 1450000.0 657,000.0 461,000.0486,000.0 Shares Out(mil) : 6,639.12 EPS 213.00 213.00 177.00 113.00 84.00 97.00 Assets 57660772 57660772 61852511 - - - Net Assets - - - - - - Techniques: Litigation: No Stock Swap Outcome : P/E Ratio : 19.903 Cash & Marketable Securities (mil): 222822.0 Book Value/Share: 3296.0 Long-Term Liabilities (mil) : - Price/Book : 1.29
Summary of Related Transactions Transaction Type Date Status Participant(s) Acq. Maj. Int. 05/04/92 Pending Telecom Italia(IT Treasury) / Investors Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
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Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 05/04/92 Telecom Italia(IT Treasury) Investors - - Plans to float 16% of ordinary shares are disclosed 06/12/92 Telecom Italia(IT Treasury) Investors - - Price is set for share packets in flotation of 16% stake 06/18/92 Telecom Italia(IT Treasury) Investors - - 'Share packet' offer is oversubscribed 12/09/92 Telecom Italia(IT Treasury) Investors - - Govt may waive option rights to succeed in capital raising 06/30/93 Telecom Italia(IT Treasury) Investors - - Prime Minister Ciampi pledges fast action on privatization 07/15/93 Telecom Italia(IT Treasury) Investors - - Rome will not divest its stake until beginning of 1994 10/21/93 Telecom Italia(IT Treasury) Investors - - Flotation expected in the 2nd half of 1994 or 1995 11/09/93 Telecom Italia(IT Treasury) Investors - - Stet share price gyrates due to investors' speculation 11/18/93 Telecom Italia(IT Treasury) Investors - - Privatization of STET is the main priority of the gov't 11/26/93 Telecom Italia(IT Treasury) Investors - - IRI rejects idea of ceding control to core investor group 02/16/94 Telecom Italia(IT Treasury) Investors - - STET may be privatized in August 1994 03/14/94 Telecom Italia(IT Treasury) Investors - - Communist Refoundation party wants to merge STET with RAI 03/18/94 Telecom Italia(IT Treasury) Investors - - Govt plans to limit shrholders to less than 3% in STET each 03/30/94 Telecom Italia(IT Treasury) Investors - - Pirelli hopes to cooperate with STET, may acquire a stake 04/08/94 Telecom Italia(IT Treasury) Investors - - Alcatel Alsthom, Pirelli to acquire joint stake in STET 04/10/94 Telecom Italia(IT Treasury) Investor Group - - Acquisition bid is rejected - 04/18/94 Telecom Italia(IT Treasury) Investors - - New govt predicted not to change privatizatn plans 04/27/94 Telecom Italia(IT Treasury) Investors - - Number of shares to be offered will be determined by advisors 05/12/94 Telecom Italia(IT Treasury) Investors - - Upper House wants STET to become public co w/golden shre 06/14/94 Telecom Italia(IT Treasury) Investors - - Privatization will proceed on schedule 07/07/94 Telecom Italia(IT Treasury) Investors - - Report on potential developmnt and choices to be presented 07/29/94 Telecom Italia(IT Treasury) Investors - - Privatization may be delayed until 1995 09/24/94 Telecom Italia(IT Treasury) Investors - - Privatization will be completed by 6/30/95 09/30/94 Telecom Italia(IT Treasury) Investors - - Privatization will occur in three tranches Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
94 11/11/94 Telecom Italia(IT Treasury) Investors - - Govt will choose second adviser by end of November 01/31/95 Telecom Italia(IT Treasury) Investors - - Euromobiliare is appointed as second adviser 02/01/95 STET(IRI/Italy) Investors - - Euromobiliare is appointed as second adviser 02/16/95 Telecom Italia(IT Treasury) Investors - - IRI approves procedure for choosing coordinating banks 02/22/95 Telecom Italia(IT Treasury) Investors - - IRI plans to split off its 64% by the end of 1995 03/07/95 Telecom Italia(IT Treasury) Investors - - Investor group bids for the 64% stake 03/07/95 Telecom Italia(IT Treasury) Investor Group - - Plans to acquire a 61.27% interest is disclosed 03/08/95 Telecom Italia(IT Treasury) Investor Group - - Investor group may need other partners for STET interest 03/09/95 Telecom Italia(IT Treasury) Investor Group - - Ital. Democratic Party unhappy w/bid; Antitrust worries 03/09/95 Telecom Italia(IT Treasury) Investor Group - - Plans to acquire majority interest are intended 03/13/95 Telecom Italia(IT Treasury) Investor Group - - Government is still reviewing offers 03/15/95 Telecom Italia(IT Treasury) Investors - - Minister favours "Golden Share concept for Stet 03/17/95 Telecom Italia(IT Treasury) Investors - - Employees were suggested to bid as one entity for 5% stake 03/20/95 Telecom Italia(IT Treasury) Investors - - Stet's major holding will be spun off to shareholders 03/28/95 Telecom Italia(IT Treasury) Investor Group - - Inquiry into legality of bid has been opened 03/31/95 Telecom Italia(IT Treasury) Investors - - Italian govt wants foreign banks to assist in p'zation 04/05/95 Telecom Italia(IT Treasury) Investor Group - - Eventual shareholders will have to bid for the remaining 04/19/95 Telecom Italia(IT Treasury) Investor Group - - IRI is expected to reject Mediobanca's proposal 04/20/95 Telecom Italia(IT Treasury) Investor Group - - Acquisition bid is rejected by IRI 04/20/95 Telecom Italia(IT Treasury) Fininvest SpA - - Merger intentions are rumored 04/21/95 Telecom Italia(IT Treasury) Investor Group - - IRI intends to go back to original split off plans 04/28/95 Telecom Italia(IT Treasury) Fininvest SpA - - Berlusconi confirms merger plans 05/04/95 Telecom Italia(IT Treasury) Investors - - Of 8 interested parties, only BCI is Italian 05/09/95 Telecom Italia(IT Treasury) Investors - - Splitoff to occur in Autumn, pending good mkt conditions 05/16/95 Telecom Italia(IT Treasury) Investors - - Pzation to occur early 1996, ENI's pzation is first 05/17/95 Telecom Italia(IT Treasury) Investors - - Pzation could still occur in 1995 06/09/95 Telecom Italia(IT Treasury) Investors - - STET needs core shareholders Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
95 after pzation is completed 06/14/95 Telecom Italia(IT Treasury) Investors - - Mediobanca consortium reaffirms offer to acquire 06/22/95 Telecom Italia(IT Treasury) Investor Group - - IMI group also reaffirms offer to acquire majority 07/20/95 Telecom Italia(IT Treasury) Investors - - Government now holds 61.27% after floatation 07/27/95 Telecom Italia(IT Treasury) Investors - - STET begins trading on NYSE - 08/03/95 Telecom Italia(IT Treasury) Investors - - STET to be fully privatized by the end of 1995 08/04/95 Telecom Italia(IT Treasury) Investors - - Parliament hasn't yet fully approved law needed for pzatn 08/09/95 Telecom Italia(IT Treasury) Investors - - P'zation timetable delayed by failure to approve utility law 09/07/95 Telecom Italia(IT Treasury) Investors - - IRI begins search for advisor, firms invited to pitch for job 10/05/95 Telecom Italia(IT Treasury) Investors - - Govt won 2 confidence votes to expedite pztn of pub utilities 10/06/95 Telecom Italia(IT Treasury) Investors - - IRI has short list of 6 or 7 names to evaluate co's worth 11/09/95 Telecom Italia(IT Treasury) Investors - - Govt creates utility watchdog, STET sale set for spring 1996 12/04/95 Telecom Italia(IT Treasury) Investors - - Iri appoints JP Morgan and Giubergia as advisors 04/23/96 Telecom Italia(IT Treasury) Investors - - Govt hopes to float 61.3% in 2 or 3 tranches soon 04/28/96 Telecom Italia(IT Treasury) Fininvest SpA - - Merger intentions are withdrawn 05/07/96 Telecom Italia(IT Treasury) Investors - - STET to have regulatory framework set before sale 05/10/96 Telecom Italia(IT Treasury) Investors - - STET urges speedy telecoms liberalisation 05/29/96 Telecom Italia(IT Treasury) Investors - - Prime Minister says STET to be privatized very soon 05/30/96 Telecom Italia(IT Treasury) Investors - - Creation of watchdog authority is necessary step before pztn 06/06/96 Telecom Italia(IT Treasury) Investors - - Govt says pzation will likely not happen until early 1997 06/14/96 Telecom Italia(IT Treasury) Investors - - Plans to form single watchdog authority are disclosed 06/21/96 Telecom Italia(IT Treasury) Investors - - Not want STET's pztn to clash with Deutsche Telekom's pztn 06/25/96 Telecom Italia(IT Treasury) Investors - - Italian govt pushing for swift STET pzation, many obstacles 07/02/96 Telecom Italia(IT Treasury) Investors - - Minister hopes to sell STET by year-end; needs Parliament OK 07/03/96 Telecom Italia(IT Treasury) Investors - - Pzation proceed quickly when telecom authority be set up 07/05/96 Telecom Italia(IT Treasury) Investors - - Cabinet to meet to examine draft bill for STET 07/11/96 Telecom Italia(IT Treasury) Investors - - Cabinet fails to authorize watchdog telecom authority Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
96 07/15/96 Telecom Italia(IT Treasury) Investors - - STET may demerge four of its holdings prior to pzation 07/16/96 Telecom Italia(IT Treasury) Investors - - Cabinet to meet to discuss draft law on telecom authority 07/17/96 Telecom Italia(IT Treasury) Investors - - Estblshmt of watchdog authrty may be ambushed by Communists 07/19/96 Telecom Italia(IT Treasury) Investors - - Government drafts law for supervising television sector 07/23/96 Telecom Italia(IT Treasury) Investors - - Privatization expected in early 1997 07/24/96 Telecom Italia(IT Treasury) Investors - - Post and Telecom to set up watchdog by August for pzation 08/01/96 Telecom Italia(IT Treasury) Investors - - Prime minister may decide to restructure STET, then sell it 08/01/96 Telecom Italia(IT Treasury) Investors - - Splitoff date has not yet been set 08/04/96 Telecom Italia(IT Treasury) Investors - - Gov't ministers to meet on 8/6 to set guidelines for splitoff 08/06/96 Telecom Italia(IT Treasury) Investors - - Splitoff is to occur between Feb 1, 1997 and Mar 31, 1997 08/09/96 Telecom Italia(IT Treasury) Investors - - Deadline for privatization is now Mar 31, 1997 08/14/96 Telecom Italia(IT Treasury) Investors - - Govt considering allowing investors to pay in 3 payments 08/15/96 Telecom Italia(IT Treasury) Investors - - Analysts respond favorably to payments in installments 08/19/96 Telecom Italia(IT Treasury) Investors - - Communist Refoundation Party threatens govt if pzation goes 08/21/96 Telecom Italia(IT Treasury) Investors - - Govt determined to go ahead with pzation despite threats 08/22/96 Telecom Italia(IT Treasury) Investors - - Govt confident it can work out a compromise w Communist party 08/23/96 Telecom Italia(IT Treasury) Investors - - Fiat's chairman is not interested in pzation of STET 08/29/96 Telecom Italia(IT Treasury) Investors - - Govt wants Italians, foreign partners to form core of STET 08/30/96 Telecom Italia(IT Treasury) Investors - - Communist party hopes to reach agreement in near future 09/06/96 Telecom Italia(IT Treasury) Investors - - STET managing director Pascale wants pzation by Feb 1 09/12/96 Telecom Italia(IT Treasury) Investors - - To sell STET by March, key legislation must pass by Nov 09/18/96 Telecom Italia(IT Treasury) Investors - - Expressions of interest due by October3 10/28/96 Telecom Italia(IT Treasury) Investors - - European Union has given Italian govt 6 month extension 10/29/96 Telecom Italia(IT Treasury) Investors - - Public Works Commission postpones bill consideration 10/31/96 Telecom Italia(IT Treasury) Investors - - EC Commissioner worried about delays in reducing IRI debt 11/08/96 Telecom Italia(IT Treasury) Investors - - Sale of STET could be delayed until late 1997 Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
97 11/11/96 Telecom Italia SpA Telecom Italia(IT Treasury) - - Merger plans are disclosed - 11/15/96 Telecom Italia(IT Treasury) Investors - - STET gives more details on Seat quotation 01/08/97 Telecom Italia(IT Treasury) Investors - - Government plans to sell core activites of STET by 3/31/97 01/27/97 Telecom Italia SpA Telecom Italia(IT Treasury) - - Govt confirms decision to merge two companies 03/04/97 Telecom Italia SpA Telecom Italia(IT Treasury) - - Planned merger is to be completed by June 1997 03/14/97 Telecom Italia SpA Telecom Italia(IT Treasury) 10695533 LIR 4239.4 Stock swap terms are disclosed 05/01/97 Telecom Italia SpA Telecom Italia(IT Treasury) 10695533 LIR 4239.4 STET to change its name to Telecom Italia SpA 07/16/97 Telecom Italia SpA Telecom Italia(IT Treasury) 10695533 LIR 4239.4 Italian Chamber of Deputies approve bill for privatization 07/18/97 Telecom Italia SpA Telecom Italia(IT Treasury) 10695533 LIR 4239.4 Merger is completed - ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
98
Date Announced: 11/20/96 Date Effective: Status: Withdrawn Target Name: Acquiror Name: Synopsis: Toy Biz Inc Andrews Group Inc (MacAndrews & Andrews Group (AG), a unit of Maico Holdings' Maico Forbes Holdings Inc) Consolidated subsidiary, withdraw its offer to acquire the remaining 33% stake, which it did not already own, in Toy Location: Location: Biz (TB), for an amended $22.5 in cash per share, or a total New York New York value of $208.18 mil. Earlier, AG agreed to acquire the 33% stake in TB for $19 per share. Previously, Marvel Business Description: Business Description: Entertainment, a unit of AG, agreed to acquire a 67% Manufacture games and toys Provide motion picture and interest in TB for an undisclosed amount of cash and debt. video tape distribution services; publish comic books SIC Codes: SIC Codes: 3944 7822 2721 Ticker Symbol: Ticker Symbol: TBZ - Advisors: Advisors: FINANCIAL DATA (mil): US Date of LTM Fin. 09/30/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 208.2 US Attitude :Friendly Net Sales 247.0 196.4 156.5 89.7 57.9 45.1 Value (1) : 208.2 US Defensive Net Income 30.9 28.4 18.0 1.6 0.9 -.3 Price/Share : 22.50 Tactics : Not Applicable EPS 1.135 1.047 0.667 0.06 0.033 -.01 Shares Out(mil) : 28.71 Assets 196.2 152.2 104.7 56.9 - - Cash Flow 65.4 59.8 40.7 8.8 5.1 - Techniques: Litigation: No Going Private Outcome : Stock Premiums -------------- 1 Day Prior : +29.5 P/E Ratio : 19.824 Cash & Marketable Securities (mil): 7.3 1 Week Prior : +25.9 Book Value/Share: 6.88 Short-Term Debt (mil) : - 4 Weeks Prior : +20.0 Price/Book : 3.27 Long-Term Debt (mil) : -
Summary of Related Transactions Transaction Type Date Status Participant(s) Acq. Maj. Int. 10/17/96 Withdrawn Toy Biz Inc / Marvel Entertainment Group Inc
99
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 11/18/96 Toy Biz Inc Marvel Entertainment Group Inc - - Agreement to acquire 67% interest is disclosed 11/20/96 Toy Biz Inc Andrews Group Inc 174.0 US 19.00 Offer to acquire remaining 33% is disclosed 12/16/96 Toy Biz Inc Andrews Group Inc 208.2 US 22.50 Terms are amended - 12/17/96 Toy Biz Inc Andrews Group Inc 208.2 US 22.50 Toy Biz board accepts offer - 01/07/97 Toy Biz Inc Andrews Group Inc 208.2 US 22.50 Offer to acquire remaining 33% stake is withdrawn 01/07/97 Toy Biz Inc Marvel Entertainment Group Inc - - Agreement to acquire 67% interests is withdrawn ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
100
Date Announced: 11/27/96 Date Effective: 03/27/97 Status: Completed Target Name: Acquiror Name: Synopsis: Central Tractor Farm & Country JW Childs Equity Partners LP JW Childs Equity Partners (JWC) acquired the remaining 34.6% Inc stake, which it did not already own, in Central Tractor Farm Location: Location: & Country (CTF) for $14.25 in cash per share, or a total of Iowa Massachusetts $56.702 mil. The transaction had been subject to regulatory approval. Earlier, JWC raised its stake to 65.4% from 9.9% Business Description: Business Description: in CTF by acquiring 5,783,515 common shares from Butler Own and operate tractor and Investment company Capital (BC) and its affiliates. Previously, JWC acquired a other miscellaneous farm 9.9% stake in CTF by acquiring 1,048,214 common shares from hardware stores BC and its affiliates. SIC Codes: SIC Codes: 5251 6799 Ticker Symbol: Ticker Symbol: CTFC - Advisors: Advisors: Piper, Jaffray Inc FINANCIAL DATA (mil): US Date of LTM Fin. 11/02/96 11/02/96 11/02/95 11/02/94 11/02/93 11/02/92 --------- --------- --------- --------- --------- --------- Rank Value(2) : 56.7 US Attitude :Friendly Net Sales 293.0 293.0 251.7 231.1 202.6 220.6 Value (1) : 56.7 US Defensive Net Income 8.7 8.7 8.2 5.2 3.3 0.2 Price/Share : 14.25 Tactics : Not Applicable EPS 0.796 0.796 0.743 0.665 0.419 0.022 Shares Out(mil) : 11.15 Assets 159.2 159.2 150.0 139.4 113.2 113.5 Cash Flow 20.7 20.7 18.6 17.5 14.1 12.5 Techniques: Litigation: No Going Private Outcome : Financial Acquiror Stock Premiums -------------- 1 Day Prior : +17.5 P/E Ratio : 17.902 Cash & Marketable Securities (mil): 3.8 1 Week Prior : +17.5 Book Value/Share: 8.51 Short-Term Debt (mil) : 5.2 4 Weeks Prior: +18.8 Price/Book : 1.68 Long-Term Debt (mil) : 17.3
Summary of Related Transactions Transaction Type Date Status Participant(s) Buyback 11/18/96 Intended Shuffle Master Inc / Shuffle Master Inc Acq. Part. Int. 11/27/96 Completed Central Tractor Farm & Country / JW Childs Equity Partners LP Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
101
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 11/27/96 Central Tractor Farm & Country JW Childs Equity Partners LP 56.7 US 14.25 Agreement to acquire remaining 35.5% stake is disclosed 11/27/96 Central Tractor Farm & Country JW Childs Equity Partners LP 14.7 US 14.00 Acquisition of 9.9% stake is completed 11/27/96 Central Tractor Farm & Country JW Childs Equity Partners LP 80.9 US 14.00 Agreement to raise stake to 64.5% from 9.9% is disclosed 12/30/96 Central Tractor Farm & Country JW Childs Equity Partners LP 81.0 US 14.00 Completed stake raise to 65.4% from 9.9% is disclosed 03/27/97 Central Tractor Farm & Country JW Childs Equity Partners LP 56.7 US 14.25 Acquisition of remaining 35.5% interest is completed ---------------------------------------------------------------------------------------------------------------------------------- Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
102
Date Announced: 11/27/96 Date Effective: 04/11/97 Date Unconditional: 02/26/97 Status: Completed Target Name: Acquiror Name: Synopsis: Placer Pacific Ltd (Placer Placer Dome Inc Placer Dome (PD) acquired the remaining 24.6% stake, or Dome Inc) 154,124,166 ordinary shares that it did not already own in Location: Location: Placer Pacific (PP), in a stock swap transaction valued at Australia Canada 292.01 mil Australian dollars ($236.62 mil US). PD offered 1 share for every 15 PP shares held. Based on PD's closing Business Description: Business Description: stock price of AU$28.42 ($23.03) on Nov 26, each PP share Gold, silver and copper Gold, copper, and ferroalloy was valued at AU$1.89 ($1.53). PP held a 25% stake in mining; holding company mining; holding company Porgera Gold Project. SIC Codes: SIC Codes: 1041 1044 1021 1061 6719 1041 1021 1061 6719 Ticker Symbol: Ticker Symbol: PLP PDG Advisors: Advisors: Grant Samuel and Associates Macquarie Corporate Finance Bankers Trust Australia N. M. Rothschild (Singapore) FINANCIAL DATA (mil): AU Date of LTM Fin. 12/31/95 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 292.0 AU Attitude :Friendly Net Sales 500.8 500.8 508.1 525.1 606.6 575.4 Value (1) : 292.0 AU Defensive Pre-Tax Inc. 123.2 123.2 153.9 129.7 154.2 130.3 Price/Share : 1.89 Tactics : Not Applicable Net Income 69.3 69.3 84.1 110.3 74.9 67.3 Shares Out(mil) : 626.52 EPS - - - - - - Assets 813.7 813.7 725.9 809.6 785.8 891.0 Net Assets 574.8 574.8 558.2 637.5 533.4 460.3 Techniques: Litigation: No Tender Offer Outcome : Tender/Merger Stock Swap P/E Ratio : 17.130 Cash & Marketable Securities (mil): 65.4 Book Value/Share: 0.85 Long-Term Liabilities (mil) : - Price/Book : 2.22
103
Transaction History Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------- ----------------------------- ------------- ------ ------------------------------ 11/27/96 Placer Pacific Ltd Placer Dome Inc 292.0 AU 1.89 Intentions to launch tender for remaining 24.6% disclosed 11/28/96 Placer Pacific Ltd Placer Dome Inc 292.0 AU 1.89 Tender offer to acquire remaining 24.6% stake launched 02/04/97 Placer Pacific Ltd Placer Dome Inc 292.0 AU 1.89 TN classifies AN's bid as fair and reasonable 02/05/97 Placer Pacific Ltd Placer Dome Inc 292.0 AU 1.89 Indep Dir plan to reccomend that share holders accept offr 02/11/97 Placer Pacific Ltd Placer Dome Inc 292.0 AU 1.89 Placer Dome on verge of completing acquisition 02/18/97 Placer Pacific Ltd Placer Dome Inc 292.0 AU 1.89 Offer extended until 7 March - 02/26/97 Placer Pacific Ltd Placer Dome Inc 292.0 AU 1.89 Offer decl unconditional;accpt recd for 80.3% 03/07/97 Placer Pacific Ltd Placer Dome Inc 292.0 AU 1.89 Offer extended until Mar 21, 1997;94% shs tendered 03/09/97 Placer Pacific Ltd Placer Dome Inc 292.0 AU 1.89 Offer is extended to March 21; 94% of shares tendered to date 03/21/97 Placer Pacific Ltd Placer Dome Inc 292.0 AU 1.89 Offer extended to Apr 11,1997 - 04/11/97 Placer Pacific Ltd Placer Dome Inc 292.0 AU 1.89 Acquisition is completed as compulsory acqn begins ---------------------------------------------------------------------------------------------------------------------------------- Footnotes: (1) Transaction Value in millions (not including net debt of Target) (2) Transaction Value in millions (including net debt of Target) Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
104 Date Announced: 12/17/96 Date Effective: 07/16/97 Status: Completed Target Name: Acquiror Name: Synopsis: Allmerica Property & Casualty Allmerica Financial Corp Allmerica Financial (AF) acquired the remaining 40.5% interest, or 24.2 mil shares, that it did not already own, Location: Location: in Allmerica Property & Casualty (APC) for approximately Massachusetts Massachusetts $816.867 mil. AF offered a choice of either $17.60 in cash and .4 common shares, or $33 in cash or .85714 APC share, Business Description: Business Description: previously subject to a collar agreement The shares were Insuracne holding company Provide fire, marine and valued based on AF's average closing stock price of $40.125 Insuracne holding company casualty insurance services for the 10 trading days prior to the announcement of exact terms. SIC Codes: SIC Codes: 6311 6321 6331 6351 6719 6331 Ticker Symbol: Ticker Symbol: APY AFC Advisors: Advisors: Merrill Lynch & Co. FINANCIAL DATA (mil): US Date of LTM Fin. 09/30/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 816.9 US Attitude :Friendly Net Sales 2,160.1 2,095.1 2,004.8 2,051.1 1,923.0 1,807.8 Value (1) : 816.9 US Defensive Net Income 161.4 154.2 109.1 265.9 133.7 48.7 Price/Share : - Tactics : Not Applicable EPS 2.438 2.282 1.638 4.081 2.161 0.788 Shares Out(mil) : 59.85 Assets 5,773.6 5,741.8 5,408.7 5,198.1 4,693.5 3,560.4 Cash Flow - - - - - - Techniques: Litigation: No Not Applicable Outcome : Stock Premiums -------------- 1 Day Prior : P/E Ratio : 12.441 Cash & Marketable Securities (mil): 96.7 1 Week Prior : Book Value/Share: 23.82 Short-Term Debt (mil) : 21.6 4 Weeks Prior: Price/Book : 1.42 Long-Term Debt (mil) : -
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 105 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 12/16/96 Allmerica Property & Casualty Allmerica Financial Corp - - Plans to acquire remaining 40.5% interest is disclosed 12/16/96 Allmerica Property & Casualty Allmerica Financial Corp - - Agreement to acquire remaining 40.5% is disclosed 07/10/97 Allmerica Property & Casualty Allmerica Financial Corp - - Exact terms are disclosed - 07/16/97 Allmerica Property & Casualty Allmerica Financial Corp - - Merger is completed - ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 106 Date Announced: 12/23/96 Date Effective: Date Unconditional: Status: Withdrawn Target Name: Acquiror Name: Synopsis: Allied Industries Wiseway Enterprises Ltd Wiseway Enterprises (WE), a unit of Suryadi Tanuwidjaja, International Ltd (Allied (Suryadi Tanuwidjaja) failed to acquire the remaining 49.41% stake, or 400,817,379 Group Ltd) ordinary shares in Allied Industries International (AI) at .85 Hong Kong dollars ($.11 US) per share, or a total of Location: Location: HK$340.69 mil ($44.02 mil) via a mandatory tender offer. Hong Kong Indonesia During the offer, only 133,300 ordinary shares were tendered. Previously, WE acquired a 50.59% interest, or Business Description: Business Description: 410,389,621 ordinary shares in AI from Allied Group and Allied Investment firm; publish Investment and holding Properties (Hong Kong). magazine; provide business company services; holding company SIC Codes: SIC Codes: 6799 2721 2732 7389 6719 6799 6719 Ticker Symbol: Ticker Symbol: AII - Advisors: Advisors: FINANCIAL DATA (mil): - Date of LTM Fin. --------- --------- --------- --------- --------- --------- Rank Value(2) : 340.7 HK Attitude :Friendly Net Sales - - - - - - Value (1) : 340.7 HK Defensive Pre-Tax Inc. - - - - - - Price/Share : 0.85 Tactics : Not Applicable Net Income - - - - - - Shares Out(mil) : 811.21 EPS - - - - - - Assets - - - - - - Net Assets - - - - - - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : Cash & Marketable Securities (mil): - Book Value/Share: - Long-Term Liabilities (mil) : - Price/Book : Summary of Related Transactions Transaction Type Date Status Participant(s) Acq. Maj. Int. 12/23/96 Completed Allied Industries Intl / Wiseway Enterprises (Suryai) Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report
107 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 12/23/96 Allied Industries Intl Wiseway Enterprises (Suryadi) 348.8 HK 0.85 Acquisition of 50.59% interest is disclosed 12/23/96 Allied Industries Intl Wiseway Enterprises (Suryadi) 340.7 HK 0.85 Tender offer for remaining 49.41% is launched 02/04/97 Allied Industries Intl Wiseway Enterprises (Suryadi) 340.7 HK 0.85 Offer closes; mandatory tender offer fails ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 108 Date Announced: 01/16/97 Date Effective: 03/05/97 Date Unconditional: 03/05/97 Status: Completed Target Name: Acquiror Name: Synopsis: CEP Communication(Havas SA) Havas SA Havas acquired the remaining 22.7% stake, or 5,000,810 ordinary shares, that it did not already own in CEP Location: Location: Communications at 470 French francs ($87.37 US) per share, France France or a total of 2.35 bil francs ($436.87 mil). Business Description: Business Description: Publish professional Advertising agency; holding magazines; holding company company SIC Codes: SIC Codes: 2721 2741 6719 7311 7312 6719 Ticker Symbol: Ticker Symbol: CECO AGHP Advisors: Advisors: Goldman Sachs Intl Ltd Lazard Freres & Co. FINANCIAL DATA (mil): FFR Date of LTM Fin. 12/31/95 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 2,350.0 FFR Attitude :Friendly Net Sales 11,325.0 11,325.0 6,359.0 5,502.0 5,778.0 5,630.0 Value (1) : 2,350.0 FFR Defensive Pre-Tax Inc. 962.0 962.0 517.0 422.0 499.0 639.0 Price/Share : 470.00 Tactics : Not Applicable Net Income 458.0 458.0 209.0 178.0 249.0 366.0 Shares Out(mil) : 22.03 EPS - - - - - - Assets 12,108.0 12,108.0 7,328.0 6,424.0 6,547.0 6,646.0 Net Assets 5,005.0 5,005.0 3,183.0 2,933.0 2,828.0 2,808.0 Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : 22.604 Cash & Marketable Securities (mil): - Book Value/Share: 218.88 Long-Term Liabilities (mil) : - Price/Book : 2.15
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 109 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 01/16/97 CEP Communication(Havas SA) Havas SA 2,350.0 FFR 470.00 Tender offer for remaining 22.7% is launched 03/05/97 CEP Communication(Havas SA) Havas SA 2,350.0 FFR 470.00 Acquisition is completed via tender offer ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 110 Date Announced: 01/21/97 Date Effective: 07/09/97 Status: Completed Target Name: Acquiror Name: Synopsis: Mafco Consolidated Group Inc Mafco Holdings Inc Mafco Holdings (MH) acquired the remaining 15% interest, which it did not already own, in Mafco Consolidated Group Location: Location: for an amended $33.5 in cash per share, or a total value of New York New York $116.766 mil. Originally, MH offered $38.5 in cash per share, or a total of $134.194 mil. Business Description: Business Description: Manufacture and wholesale Manufacture toilet cosmetics, fragrances and preparations beauty care products, licorice and flavoring extracts; provide videotape duplicating services; holding company SIC Codes: SIC Codes: 2844 2841 2087 2064 5122 7819 2844 6719 Ticker Symbol: Ticker Symbol: MFO - Advisors: Advisors: Morgan Stanley FINANCIAL DATA (mil): US Date of LTM Fin. 09/29/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 --------- --------- --------- --------- --------- --------- Rank Value(2) : 116.8 US Attitude :Friendly Net Sales 296.2 261.1 226.9 202.6 - - Value (1) : 116.8 US Defensive Net Income 119.3 22.5 16.3 10.0 - - Price/Share : 33.50 Tactics : Not Applicable EPS 5.31 1.12 0.826 0.504 - - Shares Out(mil) : 23.24 Assets 729.7 560.6 282.9 - - - Cash Flow 80.2 64.1 61.4 54.7 - - Techniques: Litigation: No Going Private Outcome : Stock Premiums -------------- 1 Day Prior : +23.5 P/E Ratio : 6.309 Cash & Marketable Securities (mil): 19.2 1 Week Prior : +23.5 Book Value/Share: 10.06 Short-Term Debt (mil) : 11.2 4 Weeks Prior: +27.6 Price/Book : 3.33 Long-Term Debt (mil) : 209.9
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 111 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 01/21/97 Mafco Consolidated Grp(Mafco) Mafco Holdings Inc 134.2 US 38.50 Plans to acquire remaining 15% stake are disclosed 02/21/97 Mafco Consolidated Grp(Mafco) Mafco Holdings Inc 116.8 US 33.50 Terms are amended; definitive agreement to acquire disclosed 02/24/97 Mafco Consolidated Grp(Mafco) Mafco Holdings Inc 116.8 US 33.50 Both boards of directors approve acquisition 07/09/97 Mafco Consolidated Grp(Mafco) Mafco Holdings Inc 116.8 US 33.50 Acquisition is completed - ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 112 Date Announced: 01/28/97 Date Effective: 05/21/97 Status: Completed Target Name: Acquiror Name: Synopsis: Calgene Inc(Monsanto Co) Monsanto Co Monsanto acquired the remaining 43.67% stake, which it did not already own, in Calgene for a total value of $242.58 Location: Location: mil. Earlier, Monsanto completed its unsolicited tender California Missouri offer to acquire the 45.5% stake in Calgene for a sweetened $8 in cash per share, by accepting 26.8 mil shares. Business Description: Business Description: Originally, Monsanto offered $7.25 per share. Own and operate greenhouse; Manufacture herbicides and produce and develop other agricultural chemicals, agricultural seeds, edible nylon, acrylic and other man- plant oils, and horticultural made fibers, polyethylene, crops; provide plant DNA polyurethane, vinyl and epoxy research and development resins, aspartame sweeteners, services NutraSweet, phosphorus, maleic anhydride and other industrial chemicals, calcium, ulcer, anti-infective, arthritis, insomnia and other prescription drugs, Fisher process control instruments, such as PROVOX for plant and highway use, soaps and detergents SIC Codes: SIC Codes: 0181 0182 2079 8731 2879 2824 2821 2869 2819 2834 3823 2841 3089 Ticker Symbol: Ticker Symbol: CGNE MTC Advisors: Advisors: Montgomery Securities Goldman, Sachs & Co. FINANCIAL DATA (mil): US Date of LTM Fin. 09/30/96 06/30/96 06/30/95 06/30/94 06/30/93 06/30/92 --------- --------- --------- --------- --------- --------- Rank Value(2) : 242.6 US Attitude :Friendly Net Sales 132.9 105.0 55.4 38.4 29.3 24.2 Value (1) : 242.6 US Defensive Net Income -104.5 -97.0 -30.6 -42.8 -25.2 -18.6 Price/Share : 8.00 Tactics : Not Applicable EPS -2.513 -2.561 -1.04 -1.713 -1.107 -1.341 Shares Out(mil) : 67.68 Assets 203.8 233.3 89.2 78.3 88.4 85.2 Cash Flow -92.8 -88.9 -25.8 -38.3 -21.6 -15.4 Techniques: Litigation: No Tender Offer Outcome : Tender/Merger Stock Premiums -------------- 1 Day Prior : +62.0 P/E Ratio : Cash & Marketable Securities (mil): 0.6 1 Week Prior : +60.0 Book Value/Share: 1.25 Short-Term Debt (mil) : 37.1 4 Weeks Prior: +60.0 Price/Book : 6.41 Long-Term Debt (mil) : 45.4
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 113 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 01/28/97 Calgene Inc(Monsanto Co) Monsanto Co 219.1 US 7.25 Unsolicited offer to acquire remaining 45% is disclosed 04/01/97 Calgene Inc(Monsanto Co) Monsanto Co 242.6 US 8.00 Definitive agreement to acquire 43.67% is disclosed 04/07/97 Calgene Inc(Monsanto Co) Monsanto Co 242.6 US 8.00 Tender offer is launched - 05/02/97 Calgene Inc(Monsanto Co) Monsanto Co 242.6 US 8.00 Tender offer is completed - 05/21/97 Calgene Inc(Monsanto Co) Monsanto Co 242.6 US 8.00 Merger is completed - ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 114 Date Announced: 03/13/97 Date Effective: 05/21/97 Date Unconditional: 05/21/97 Status: Completed Target Name: Acquiror Name: Synopsis: Austereo Ltd(Village Roadshow Village Roadshow Corp Ltd Village Roadshow (VR), via its wholly-owned Village Roadshow Broadcasting subsidiary, completed its sweetened tender Location: Location: offer to acquire the remaining 47.17% stake of the ordinary Australia Australia share capital, or 91,179,669 ordinary shares and 9,000,000 in-the-money options, that it did not already own in Business Description: Business Description: Austereo (AU) at 2.55 Australian dollars ($2 US) in cash per Own and operate radio Own and operate movie share and option for a total of AU$222.61 mil ($174.68 mil), broadcasting stations theaters; provide movie and in open market transactions. Previously, AU offered AU$2.35 video tape distribution and ($1.84) per VR share. production services; holding company SIC Codes: SIC Codes: 4832 7832 7822 6719 7812 Ticker Symbol: Ticker Symbol: AUE VRLU Advisors: Advisors: Grant Samuel and Associates N. M. Rothschild & Sons (HK) FINANCIAL DATA (mil): AU Date of LTM Fin. 06/30/96 06/30/96 06/30/95 06/30/94 06/30/93 06/30/92 --------- --------- --------- --------- --------- --------- Rank Value(2) : 222.6 AU Attitude :Friendly Net Sales 139.1 139.1 111.5 73.8 68.9 - Value (1) : 222.6 AU Defensive Pre-Tax Inc. 31.7 31.7 18.5 1.3 2.5 - Price/Share : 2.55 Tactics : Not Applicable Net Income 31.7 31.7 18.5 1.3 2.5 - Shares Out(mil) : 189.22 EPS 0.202 0.202 0.13 - - - Assets 302.1 302.1 274.4 148.0 135.1 - Net Assets 187.7 187.7 153.7 9.8 18.1 - Techniques: Litigation: No Tender Offer Outcome : Tender/Merger P/E Ratio : 12.624 Cash & Marketable Securities (mil): 17.1 Book Value/Share: 1.08 Long-Term Liabilities (mil) : - Price/Book : 2.37
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 115 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 03/13/97 Austereo Ltd(Village Roadshow) Village Roadshow Corp Ltd 204.4 AU 2.35 Tender offer for remaining 47.17% is intended 03/21/97 Austereo Ltd(Village Roadshow) Village Roadshow Corp Ltd 204.4 AU 2.35 Tender offer for remaining 47.17% is launched 04/09/97 Austereo Ltd(Village Roadshow) Village Roadshow Corp Ltd 222.7 AU 2.55 Offer is extended and terms are sweetened 04/30/97 Austereo Ltd(Village Roadshow) Village Roadshow Corp Ltd 222.7 AU 2.55 Tender offer is extended until 23 May, 1997 05/20/97 Austereo Ltd(Village Roadshow) Village Roadshow Corp Ltd 222.7 AU 2.55 Village Roadshow raises entitlement to 169 mil shares 05/21/97 Austereo Ltd(Village Roadshow) Village Roadshow Corp Ltd 222.7 AU 2.55 Acquisition is completed ahead of compulsory acquisition ----------------------------------------------------------------------------------------------------------------------------------
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 116 Date Announced: 06/02/97 Date Effective: 07/15/97 Status: Completed Target Name: Acquiror Name: Synopsis: Acordia Inc(Anthem Inc) Anthem Inc Anthem acquired the remaining 33.2%, or 4.32 mil common shares, that it did not already owned, in Acordia, for $40 Location: Location: in cash per share, or a total value of $193.155 mil. Indiana Ohio Earlier, Anthem completed its tender offer for the remaining 33.2% stake by accepting 4.045 mil shares. The offer had Business Description: Business Description: been conditioned upon a majority of the shares, not owned by Provide insurance brokerage Insurance company Anthem, being tendered. services; holding company SIC Codes: SIC Codes: 6411 6719 6311 6321 6331 6351 Ticker Symbol: Ticker Symbol: ACO - Advisors: Advisors: Alex. Brown & Sons Credit Suisse First Boston FINANCIAL DATA (mil): US Date of LTM Fin. 12/31/96 12/31/96 12/31/95 12/31/94 12/31/93 12/31/92 --------- --------- --------- --------- --------- --------- Rank Value(2) : 193.2 US Attitude :Friendly Net Sales 661.0 661.0 555.1 412.2 257.8 207.2 Value (1) : 193.2 US Defensive Net Income 29.9 29.9 23.6 28.8 26.3 20.2 Price/Share : 40.00 Tactics : Not Applicable EPS 2.087 2.087 1.64 2.036 1.981 1.528 Shares Out(mil) : 14.28 Assets 745.6 745.6 736.5 594.8 460.3 226.9 Cash Flow 128.9 128.9 111.8 99.4 69.5 48.2 Techniques: Litigation: No Going Private Outcome : Tender Offer Tender/Merger Stock Premiums -------------- 1 Day Prior : +12.7 P/E Ratio : 19.166 Cash & Marketable Securities (mil): 82.8 1 Week Prior : +11.5 Book Value/Share: 15.58 Short-Term Debt (mil) : 40.5 4 Weeks Prior: +26.0 Price/Book : 2.57 Long-Term Debt (mil) : 136.2 Summary of Related Transactions Transaction Type Date Status Participant(s) Acq. of Assets 04/23/97 Completed Anthem Casualty Ins-Op Suby / Vesta Insurance Group Inc
Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report 117 Transaction History
Event Value Price/ Date Target Name Acquiror Name (mil) Share Event --------- ------------------------------ ------------------------------ ------------- ------ ------------------------------ 06/03/97 Acordia Inc(Anthem Inc) Anthem Inc 193.2 US 40.00 Plans to launch tender offer for remaining 33.2% disclosed 06/06/97 Acordia Inc(Anthem Inc) Anthem Inc 193.2 US 40.00 Tender offer is launched - 07/02/97 Acordia Inc(Anthem Inc) Anthem Inc 193.2 US 40.00 Offer is extended until Jul 9; .829 mil shares are tendered 07/09/97 Acordia Inc(Anthem Inc) Anthem Inc 193.2 US 40.00 Tender offer is completed; 4.045 mil shares are tendered 07/15/97 Acordia Inc(Anthem Inc) Anthem Inc 193.2 US 40.00 Merger is completed - ----------------------------------------------------------------------------------------------------------------------------------
Footnotes: (1) Transaction Value in millions (not including net debt of Target) (2) Transaction Value in millions (including net debt of Target) Source: Securities Data Company (973) 622-3100 Merger/Corporate Transaction Report EX-17.B.10 4 SUMMARY OF COMPUTATIONS 1 PINEHURST ENTERPRISE VALUATION - AFTER RESTRUCTURE 5% GROWTH
($000,000) DISCOUNT RATE 11.50% ENTERPRISE VALUE $96.8 LESS: DEBT 36.3 EQUITY VALUE $60.5 SHARES OUTSTANDING 2,190,619 VALUE PER SHARE $27.63
2 PINEHURST VALUATION
($000,000) DISCOUNT RATE 11.50% NET PRESENT VALUE OF CASH FLOWS $24.6 DEBT ASSUMED $9.2 CASH PAID -- PER SH $32.0 17.8 TRANSACTION COSTS 2.0 LEVERED INVESTMENT $29.1 NPV OF CASH FLOWS ($4.4) INTERNAL RATE OF RETURN (IRR) 9.5% INVESTMENT (CASH PD + TRANS COST) $19.8 EQUITY ACQUIRED 12.2 GOODWILL $7.6 SHARES OUTSTANDING 2,190,619 MINORITY SHARES 556,924
3 PINEHURST VALUATION SUMMARY
CASH NET MARKET PINEHURST MINORITY MINORITY FLOW BOOK VAL CAPITAL DEBT VALUE VALUE SH VALUE ----- -------- -------- ---- --------- -------- -------- ENTERPRISE VALUATION $96.8 $36.3 $60.5 $15.4 $27.63 BOOK VALUE: 12/31/96 46.7 46.7 $11.9 $21.32 12/31/97 ESTIMATED 47.7 47.7 $12.1 $21.77 MARKET VALUE: EIGHT MONTH TRADING RANGE AVG. $57.1 $57.1 $14.5 $26.05
4 PINEHURST ENTERPRISE VALUATION - PINEHURST PROJECTION 5% GROWTH
($000,000) DISCOUNT RATE 11.50% ENTERPRISE VALUE $47.4 LESS: DEBT 36.3 EQUITY VALUE $11.1 SHARES OUTSTANDING 2,190,619 VALUE PER SHARE $5.07
5 PINEHURST VALUATION
($000,000) DISCOUNT RATE 11.50% NET PRESENT VALUE OF CASH FLOWS $12.1 DEBT ASSUMED $9.2 CASH PAID -- PER SH $32.0 17.8 TRANSACTION COSTS 2.0 LEVERED INVESTMENT $29.1 NPV OF CASH FLOWS ($17.0) INTERNAL RATE OF RETURN (IRR) 5.1% INVESTMENT (CASH PD + TRANS COST) $19.8 EQUITY ACQUIRED 12.2 GOODWILL $7.6 SHARES OUTSTANDING 2,190,619 MINORITY SHARES 556,924
6 PINEHURST VALUATION SUMMARY
CASH NET MARKET PINEHURST MINORITY MINORITY FLOW BOOK VAL CAPITAL DEBT VALUE VALUE SH VALUE ----- -------- -------- ---- --------- -------- -------- ENTERPRISE VALUATION $47.4 $36.3 $11.1 $2.8 $5.07 BOOK VALUE: 12/31/96 46.7 46.7 $11.9 $21.32 12/31/97 ESTIMATED 47.7 47.7 $12.1 $21.77 MARKET VALUE: EIGHT MONTH TRADING RANGE AVG. $57.1 $57.1 $14.5 $26.05
7 PINEHURST ENTERPRISE VALUATION
($000,000) DISCOUNT RATE 9.51% PV OF FREE CASH FLOWS $86.3 DEBT 36.3 ENTERPRISE VALUE $50.0 SHARES OUTSTANDING 2,190,619 VALUE PER SHARE $22.84
8 PINEHURST VALUATION SUMMARY
CASH NET MARKET PINEHURST MINORITY MINORITY FLOW BOOK VAL CAPITAL DEBT VALUE VALUE SH VALUE ----- -------- -------- ---- --------- -------- -------- ENTERPRISE VALUATION $86.3 $36.3 $50.0 $12.7 $22.84 BOOK VALUE: 12/31/96 46.7 46.7 $11.9 $21.32 12/31/97 ESTIMATED 47.7 47.7 $12.1 $21.77 MARKET VALUE: EIGHT MONTH TRADING RANGE AVG. $57.1 $57.1 $14.5 $26.05
9 PINEHURST ENTERPRISE VALUATION - AFTER RESTRUCTURE 5% GROWTH
($000,000) DISCOUNT RATE 11.50% ENTERPRISE VALUE $97.8 LESS: DEBT 36.3 EQUITY VALUE $61.5 SHARES OUTSTANDING 2,190,619 VALUE PER SHARE $28.08
10 PINEHURST VALUATION
($000,000) DISCOUNT RATE 11.50% NET PRESENT VALUE OF CASH FLOWS $24.9 DEBT ASSUMED $9.2 CASH PAID -- PER SH $32.0 17.8 TRANSACTION COSTS 2.0 LEVERED INVESTMENT $29.1 NPV OF CASH FLOWS ($4.2) INTERNAL RATE OF RETURN (IRR) 9.5% INVESTMENT (CASH PD + TRANS COST) $19.8 EQUITY ACQUIRED 12.2 GOODWILL $7.6 SHARES OUTSTANDING 2,190,619 MINORITY SHARES 556,924
11 PINEHURST VALUATION SUMMARY
CASH NET MARKET PINEHURST MINORITY MINORITY FLOW BOOK VAL CAPITAL DEBT VALUE VALUE SH VALUE ----- -------- -------- ---- --------- -------- -------- ENTERPRISE VALUATION $97.8 $36.3 $61.5 $15.6 $28.08 BOOK VALUE: 12/31/96 46.7 46.7 $11.9 $21.32 12/31/97 ESTIMATED 47.7 47.7 $12.1 $21.77 MARKET VALUE: EIGHT MONTH TRADING RANGE AVG. $57.1 $57.1 $14.5 $26.05
12 BRAD RAGAN MANAGEMENT PLAN - CASE 1 NO GROWTH
$(MM) DISCOUNT RATE 11.50% ENTERPRISE VALUE $34.7 LESS: DEBT 36.3 EQUITY VALUE ($1.6) SHARES OUTSTANDING 2,190,619 VALUE PER SHARE ($0.71) CASH FLOW INTO PERPITUITY
13 BRAD RAGAN MANAGEMENT PLAN -- CASE 1
($000,000) DISCOUNT RATE 11.50% NET PRESENT VALUE OF CASH FLOWS $8.8 DEBT ASSUMED $9.2 CASH PAID -- PER SH $32.0 17.8 TRANSACTION COSTS 2.0 LEVERED INVESTMENT $29.1 NPV OF CASH FLOWS ($20.2) INTERNAL RATE OF RETURN (IRR) 0.0% INVESTMENT (CASH PD + TRANS COST) $19.8 EQUITY ACQUIRED 12.2 GOODWILL $7.6 SHARES OUTSTANDING 2,190,619 MINORITY SHARES 556,924
14 BRAD RAGAN VALUATION SUMMARY
CASH NET MARKET PINEHURST MINORITY MINORITY FLOW BOOK VAL CAPITAL DEBT VALUE VALUE SH VALUE ----- -------- -------- ---- --------- -------- -------- ENTERPRISE VALUATION $34.7 $36.3 ($1.6) ($0.4) ($0.71) BOOK VALUE: 12/31/96 46.7 46.7 $11.9 $21.32 12/31/97 ESTIMATED 47.7 47.7 $12.1 $21.77 MARKET VALUE: EIGHT MONTH TRADING RANGE AVG. $57.1 $57.1 $14.5 $26.05
15 BRAD RAGAN MANAGEMENT PLAN - CASE 2 3% GROWTH
($MM) DISCOUNT RATE 11.50% ENTERPRISE VALUE $24.8 LESS: DEBT 36.3 EQUITY VALUE ($11.5) SHARES OUTSTANDING 2,190,619 VALUE PER SHARE ($5.27) CASH FLOW INTO PERPITUITY
16 BRAD RAGAN MANAGEMENT PLAN -- CASE 2
($000,000) DISCOUNT RATE 11.50% NET PRESENT VALUE OF CASH FLOWS $6.3 DEBT ASSUMED $9.2 CASH PAID -- PER SH $32.00 17.8 TRANSACTION COSTS 2.0 LEVERED INVESTMENT $29.1 NPV OF CASH FLOWS ($22.8) INTERNAL RATE OF RETURN (IRR) 0.0% INVESTMENT (CASH PD + TRANS COST) $19.8 EQUITY ACQUIRED 12.2 GOODWILL $7.6 SHARES OUTSTANDING 2,190,619 MINORITY SHARES 556,924
17 BRAD RAGAN VALUATION SUMMARY
CASH NET MARKET PINEHURST MINORITY MINORITY FLOW BOOK VAL CAPITAL DEBT VALUE VALUE SH VALUE ----- -------- -------- ---- --------- -------- -------- ENTERPRISE VALUATION $24.8 $36.3 ($11.5) ($2.9) ($5.27) BOOK VALUE: 12/31/96 46.7 46.7 $11.9 $21.32 12/31/97 ESTIMATED 47.7 47.7 $12.1 $21.77 MARKET VALUE: EIGHT MONTH TRADING RANGE AVG. $57.1 $57.1 $14.5 $26.05
18 BRAD RAGAN MANAGEMENT PLAN - MODIFIED - CASE 3
$(MM) DISCOUNT RATE 11.50% ENTERPRISE VALUE $94.4 LESS: DEBT 36.3 EQUITY VALUE $58.1 SHARES OUTSTANDING 2,190,619 VALUE PER SHARE $26.54 SAG REDUCED TO 25% CASH FLOW INTO PERPITUITY
19 BRAD RAGAN MANAGEMENT PLAN -- MODIFIED -- CASE 3
($000,000) DISCOUNT RATE 11.50% NET PRESENT VALUE OF CASH FLOWS $24.0 DEBT ASSUMED $9.2 CASH PAID -- PER SH $32.00 17.8 TRANSACTION COSTS 2.0 LEVERED INVESTMENT $29.1 NPV OF CASH FLOWS ($5.0) INTERNAL RATE OF RETURN (IRR) 10.4% INVESTMENT (CASH PD + TRANS COST) $19.8 EQUITY ACQUIRED 12.2 GOODWILL $7.6 SHARES OUTSTANDING 2,190,619 MINORITY SHARES 556,924
20 BRAD RAGAN VALUATION SUMMARY
CASH NET MARKET PINEHURST MINORITY MINORITY FLOW BOOK VAL CAPITAL DEBT VALUE VALUE SH VALUE ----- -------- -------- ---- --------- -------- -------- ENTERPRISE VALUATION $94.4 $36.3 $58.1 $14.8 $26.54 BOOK VALUE: 12/31/96 46.7 46.7 $11.9 $21.32 12/31/97 ESTIMATED 47.7 47.7 $12.1 $21.77 MARKET VALUE: EIGHT MONTH TRADING RANGE AVG. $57.1 $57.1 $14.5 $26.05
21 BRAD RAGAN EXIT RETAIL - CASE 4
$(MM) DISCOUNT RATE 11.50% ENTERPRISE VALUE $102.3 LESS: DEBT 36.3 EQUITY VALUE $66.0 SHARES OUTSTANDING 2,190,619 VALUE PER SHARE $30.13 CASH FLOW INTO PERPITUITY
22 BRAD RAGAN EXIT RETAIL -- CASE 4 5% GROWTH
($000,000) DISCOUNT RATE 11.50% NET PRESENT VALUE OF CASH FLOWS $26.0 DEBT ASSUMED $9.2 CASH PAID -- PER SH $32.00 17.8 TRANSACTION COSTS 2.0 LEVERED INVESTMENT $29.1 NPV OF CASH FLOWS ($3.0) INTERNAL RATE OF RETURN (IRR) 10.1% INVESTMENT (CASH PD + TRANS COST) $19.8 EQUITY ACQUIRED 12.2 GOODWILL $7.6 SHARES OUTSTANDING 2,190,619 MINORITY SHARES 556,924
23 BRAD RAGAN VALUATION SUMMARY
CASH NET MARKET PINEHURST MINORITY MINORITY FLOW BOOK VAL CAPITAL DEBT VALUE VALUE SH VALUE ----- -------- -------- ---- --------- -------- -------- ENTERPRISE VALUATION $102.3 $36.3 $66.0 $16.8 $30.13 BOOK VALUE: 12/31/96 46.7 46.7 $11.9 $21.32 12/31/97 ESTIMATED 47.7 47.7 $12.1 $21.77 MARKET VALUE: EIGHT MONTH TRADING RANGE VG. $57.1 $57.1 $14.5 $26.05
EX-17.D 5 PRELIMINARY PROXY STATEMENT 1 EXHIBIT 17(d) [BRAD RAGAN, INC. LETTERHEAD] November 19, 1998 To the Shareholders of Brad Ragan, Inc.: On behalf of the Board of Directors of Brad Ragan, Inc. (the "Company"), it is my pleasure to invite you to attend the annual meeting of shareholders of the Company to be held on December 22, 1998, at 9:00 a.m. local time, at the Goodyear Automotive Service Training Center, 806 Tyvola Road, Charlotte, North Carolina. At the meeting, you will be asked to consider and vote upon a proposal to approve an Agreement and Plan of Share Exchange (the "Exchange Agreement") between the Company and The Goodyear Tire & Rubber Company ("Goodyear") pursuant to which Goodyear, which currently owns approximately 74.5% of the Company's outstanding common stock, will acquire all other outstanding shares, and each of these shares (other than shares held by dissenting shareholders) will be exchanged for the right to receive $37.25 in cash from Goodyear (the "Exchange"). A copy of the Exchange Agreement is included as Annex I to the accompanying Proxy Statement. A special committee of directors of the Company who are not employees of the Company or employees or directors of Goodyear has reviewed and considered the terms of the Exchange and has recommended that the Board of Directors adopt the Exchange Agreement. In addition, Interstate/Johnson Lane Corporation, the special committee's financial advisor in connection with the Exchange, has rendered its opinion that the Exchange is fair, from a financial point of view, to the shareholders of the Company. The Board of Directors believes that the Exchange is in the best interests of the Company and its public shareholders and, on behalf of the Board of Directors, I urge you to vote FOR approval of the Exchange Agreement. Completion of the Exchange is subject to certain conditions, including approval of a proposal to amend the Company's articles of incorporation to provide dissenters' rights in certain transactions, including the Exchange, by the shareholders of the Company, and approval of the Exchange Agreement by the shareholders. Goodyear has agreed to vote its shares of the Company's common stock in favor of the proposed amendment to the Company's articles of incorporation and, to the knowledge of the Company, intends to vote all of its shares in favor of the Exchange Agreement. Goodyear's favorable vote will assure approval of such amendment and such agreement. The Exchange is expected to be completed promptly after the annual meeting, provided all of such conditions have been satisfied or waived by the parties. In addition to considering the amendment to the articles of incorporation and the Exchange Agreement at the annual meeting, you will be asked to elect six directors of the Company for terms expiring at the 1999 annual meeting of the Company's shareholders or such time as their respective successors are elected and qualified. If the Exchange is consummated, holders of common stock who do not vote in favor of the Exchange Agreement and who comply with certain notice requirements and other procedures will have the right of dissent and to be paid cash for the "fair value" of their shares as determined under statutory procedures. Please note that the proposal to amend the Company's articles of incorporation will be the first matter voted upon at the meeting on December 22. If the proposal is approved, the meeting will be adjourned immediately so that the articles of amendment can be filed with the Office of the Secretary of State of North Carolina. It is expected that the meeting will be reconvened at 9:00 a.m. on December 23, at the same location, to conduct voting on the Exchange Agreement and election of directors. For additional information, please see "General Information -- Voting Procedures" in the accompanying proxy statement. The enclosed Notice of Meeting and Proxy Statement explain the Exchange and provide specific information concerning the annual meeting. Also enclosed is a copy of the Company's 1997 Annual Report to Shareholders. I encourage you to read and consider carefully the information contained in the enclosed documents. Whether or not you plan to attend the annual meeting, you are urged to complete, sign and promptly return the enclosed proxy card to assure that your shares will be voted at the meeting. Sincerely, William P. Brophey President and Chief Executive Officer 2 BRAD RAGAN, INC. 4404-G STUART ANDERSON BOULEVARD CHARLOTTE, NC 28217 --------------------- NOTICE OF ANNUAL MEETING OF SHAREHOLDERS --------------------- To the Shareholders of Brad Ragan, Inc.: The Annual Meeting of the Shareholders of Brad Ragan, Inc. (the "Company") will be held at the Goodyear Automotive Service Training Center, 806 Tyvola Road, Charlotte, North Carolina on December 22, 1998, at 9:00 a.m. local time, for the following purposes: 1. To consider and vote upon a proposal to amend the Company's articles of incorporation to grant dissenters' rights to the shareholders of the Company in connection with certain transactions, including the share exchange described in the following paragraph. 2. To consider and vote upon a proposal to approve an Agreement and Plan of Share Exchange (the "Exchange Agreement") between the Company and The Goodyear Tire & Rubber Company ("Goodyear") pursuant to which Goodyear, which currently owns approximately 74.5% of the Company's outstanding common stock, will acquire all other outstanding shares, and each of these shares (other than shares held by dissenting shareholders) will be exchanged for the right to receive $37.25 in cash (the "Exchange"). 3. To elect six members to the Board of Directors for terms expiring at the 1999 annual meeting of the Company's shareholders or such time as their respective successors are elected and qualified. 4. To transact such other business as may properly come before the meeting or any adjournment thereof. The Board of Directors has fixed the close of business on November 18, 1998 as the record date for the determination of shareholders entitled to vote at the meeting. Accordingly, only shareholders who are holders of record at the close of business on that date are entitled to notice of and to vote at the meeting. By order of the Board of Directors: Ronald J. Carr Secretary Charlotte, North Carolina November 19, 1998 CONSUMMATION OF THE EXCHANGE AGREEMENT IS SUBJECT TO PRIOR ADOPTION AND EFFECTIVENESS OF AN AMENDMENT TO THE COMPANY'S ARTICLES OF INCORPORATION PROVIDING FOR DISSENTERS' RIGHTS UNDER CHAPTER 55, ARTICLE 13 OF THE GENERAL STATUTES OF NORTH CAROLINA IN CERTAIN TRANSACTIONS, INCLUDING THE EXCHANGE. ACCORDINGLY, ANY SHAREHOLDER SHALL HAVE THE RIGHT TO DISSENT FROM THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THE EXCHANGE AGREEMENT AND TO RECEIVE PAYMENT OF THE "FAIR VALUE" OF HIS OR HER SHARES UPON COMPLIANCE WITH THE PROCEDURES PRESCRIBED BY CHAPTER 55, ARTICLE 13 OF THE GENERAL STATUTES OF NORTH CAROLINA. SEE "THE EXCHANGE -- DISSENTERS' RIGHTS" IN THE PROXY STATEMENT THAT ACCOMPANIES THIS NOTICE AND THE FULL TEXT OF CHAPTER 55, ARTICLE 13 ATTACHED THERETO AS ANNEX IV FOR A DESCRIPTION OF THESE PROCEDURES. YOU ARE URGED TO COMPLETE, DATE AND SIGN THE ACCOMPANYING PROXY CARD AND TO RETURN IT PROMPTLY IN THE ENCLOSED ENVELOPE, WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES. PLEASE DO NOT SEND IN ANY CERTIFICATES FOR YOUR SHARES AT THIS TIME. Please note that the proposal to amend the Company's articles of incorporation will be the first matter voted upon at the meeting on December 22. If the proposal is approved, the meeting will be adjourned immediately so that the articles of amendment can be filed with the Office of the Secretary of State of North Carolina. It is expected that the meeting will be reconvened at 9:00 a.m. on December 23, at the same location, to conduct voting on the Exchange Agreement and election of directors. For additional information, please see "General Information -- Voting Procedures" in the accompanying proxy statement. 3 BRAD RAGAN, INC. 4404-G STUART ANDERSON BOULEVARD CHARLOTTE, NORTH CAROLINA 28217 --------------------- PROXY STATEMENT RELATING TO ANNUAL MEETING OF SHAREHOLDERS TO BE HELD DECEMBER 22, 1998 --------------------- This Proxy Statement is being furnished to the shareholders of Brad Ragan, Inc. (the "Company") in connection with the solicitation of proxies by the Board of Directors of the Company (the "Board") for use at the annual meeting of shareholders of the Company, or any adjournment or postponement thereof (the "Meeting"), which is to be held on December 22, 1998, at 9:00 a.m. local time, at the Goodyear Automotive Service Training Center, 806 Tyvola Road, Charlotte, North Carolina. At the Meeting, shareholders of the Company will be asked to consider and vote upon a proposal to approve an Agreement and Plan of Share Exchange, dated as of May 5, 1998 (the "Exchange Agreement"), between the Company and The Goodyear Tire & Rubber Company, an Ohio corporation ("Goodyear"), pursuant to which Goodyear, which currently owns approximately 74.5% of the outstanding shares of common stock, $1.00 par value, of the Company ("Common Stock"), will acquire all other outstanding shares of Common Stock and each such share (other than shares held by dissenting shareholders) will be exchanged for the right to receive $37.25 in cash from Goodyear (the "Exchange"). A copy of the Exchange Agreement is included as Annex I to this Proxy Statement. A SPECIAL COMMITTEE OF DIRECTORS OF THE COMPANY WHO ARE NOT EMPLOYEES OF THE COMPANY OR EMPLOYEES OR DIRECTORS OF GOODYEAR (THE "SPECIAL COMMITTEE") HAS REVIEWED AND CONSIDERED THE TERMS OF THE EXCHANGE AND HAS RECOMMENDED THAT THE BOARD ADOPT THE EXCHANGE AGREEMENT. THE BOARD HAS ADOPTED THE EXCHANGE AGREEMENT AND THE EXCHANGE AND HAS DETERMINED THAT THE EXCHANGE IS FAIR TO, AND IN THE BEST INTERESTS OF, THE HOLDERS OF COMMON STOCK (OTHER THAN GOODYEAR) AND RECOMMENDS THAT SHAREHOLDERS VOTE FOR THE APPROVAL OF THE EXCHANGE AGREEMENT. The Special Committee's recommendation and the Board's adoption and recommendation were based on a number of factors described in this Proxy Statement, including the opinions of Interstate/Johnson Lane Corporation ("IJL"), the financial advisor to the Special Committee, dated the date of the Exchange Agreement and the date of this Proxy Statement, that the consideration to be received by the shareholders of the Company (other than Goodyear) pursuant to the Exchange is fair, from a financial point of view, to such holders. The opinion of IJL dated the date hereof is included as Annex II to this Proxy Statement and should be read in its entirety. Completion of the Exchange is subject to certain conditions, including approval by the shareholders of the Company of a proposal to amend the Company's articles of incorporation (the "Articles") to grant dissenters' rights to the shareholders of the Company in connection with certain transactions, including the Exchange (the "Articles of Amendment"), and approval of the Exchange Agreement by the shareholders of the Company. To the knowledge of the Company, Goodyear intends to vote its shares of the Common Stock in favor of the Exchange Agreement. In addition, Goodyear has agreed in the Exchange Agreement to vote its shares in favor of the Articles of Amendment. Goodyear's favorable vote will assure approval of each of these matters. The Exchange is expected to be completed by December 24, 1998, provided all of such conditions have been satisfied or waived by the parties. Goodyear may terminate the Exchange Agreement without cause at any time prior to the completion of the Exchange, in which case it would be required to reimburse the Company certain expenses incurred in connection with the Exchange Agreement and this Proxy Statement. Shareholders of the Company will also be asked to elect six directors of the Company ("Directors") for terms expiring at the 1999 annual meeting of the Company's shareholders or such time as their respective successors are elected and qualified. Please note that the Articles of Amendment will be the first matter voted upon at the Meeting on December 22. If they are approved, the Meeting will be adjourned immediately so that the Articles of Amendment can be filed with the Office of the Secretary of State of North Carolina. It is expected that the Meeting will be reconvened at 9:00 a.m. on December 23, at the same location, to conduct voting on the Exchange Agreement and election of Directors. For additional information, please see "General Information - Voting Procedures." This Proxy Statement, the Notice of Meeting and the enclosed proxy card, together with the Company's Annual Report to Shareholders for the year ended December 31, 1997, are first being mailed to shareholders of the Company on or about November 23, 1998. THIS TRANSACTION HAS NOT BEEN APPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, NOR HAS THE COMMISSION PASSED UPON THE FAIRNESS OR MERITS OF THIS TRANSACTION NOR UPON THE ADEQUACY OR ACCURACY OF ANY INFORMATION CONTAINED IN THIS PROXY STATEMENT. ANY STATEMENT TO THE CONTRARY IS UNLAWFUL. THE DATE OF THIS PROXY STATEMENT IS NOVEMBER 19, 1998 4 AVAILABLE INFORMATION The Company is subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in accordance therewith files reports, proxy statements, and other information with the Securities and Exchange Commission (the "Commission"). The reports, proxy statements, and other information filed with the Commission can be inspected and copied at the public reference facilities maintained by the Commission at 450 Fifth Street, N.W., Judiciary Plaza, Washington, D.C. 20549 and at the following Regional Offices of the Commission: 500 West Madison Street, Suite 1400, Chicago, Illinois 60661 and 7 World Trade Center, Suite 1300, New York, New York 10048. Copies of such material can be obtained at prescribed rates from the Public Reference Section of the Commission at 450 Fifth Street, N.W., Judiciary Plaza, Washington, D.C. 20549. The Commission maintains a World Wide Web site on the Internet at http://www.sec.gov that contains reports, proxy and information statements and other information regarding registrants that file electronically with the Commission, including the Company. Shares of the Common Stock are traded on the American Stock Exchange, Inc. (the "AMEX"), and proxy statements, reports and other information concerning the Company can also be inspected and copied at the offices of the AMEX, 86 Trinity Place, New York, New York 10006. The Company and Goodyear have filed a Schedule 13E-3 with the Commission with respect to the Exchange. As permitted by the rules and regulations of the Commission, this Proxy Statement omits certain information contained in the Schedule 13E-3. The Schedule 13E-3, including any amendments and exhibits filed or incorporated by reference as a part thereof, is available for inspection or copying as set forth above. Statements contained in this Proxy Statement or in any document incorporated herein by reference as to the contents of any contract or other document referred to herein or therein summarize material provisions of such documents and in each instance reference is made to such contract or other document filed as an exhibit to the Schedule 13E-3 or such other document, and each such statement shall be deemed qualified in its entirety by such reference. The information contained herein with respect to the Company has been provided by the Company, and the information contained herein with respect to Goodyear has been provided by Goodyear. NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION IN CONNECTION WITH THE SOLICITATION OF PROXIES MADE HEREBY OTHER THAN THOSE CONTAINED OR INCORPORATED BY REFERENCE IN THIS PROXY STATEMENT, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY OR GOODYEAR. THIS PROXY STATEMENT DOES NOT CONSTITUTE A SOLICITATION OF A PROXY IN ANY JURISDICTION WHERE, OR TO OR FROM ANY PERSON TO WHOM, IT IS UNLAWFUL TO MAKE SUCH PROXY SOLICITATION IN SUCH JURISDICTION. THE DELIVERY OF THIS PROXY STATEMENT SHALL NOT, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY OR GOODYEAR SINCE THE DATE HEREOF OR THAT THE INFORMATION CONTAINED OR INCORPORATED BY REFERENCE HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE The following documents previously filed by the Company with the Commission under the Exchange Act are incorporated herein by reference: (a) The Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1997; (b) Amendment No. 1 to the Company's Annual Report on Form 10-K/A; (c) The Company's Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 1998, June 30, 1998 and September 30, 1998; (d) Amendment No. 1 to the Company's Quarterly Report on Form 10-Q/A for the fiscal quarter ended June 30, 1998; and (e) The description of the Common Stock in the Company's registration statement filed under the Exchange Act with respect to the Common Stock, including all amendments and reports filed for the purpose of updating such description. ii 5 All documents filed by the Company pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this Proxy Statement and before the Meeting shall be deemed to be incorporated by reference into this Proxy Statement and to be a part hereof from the date of the filing of such documents. In accordance with the rules and regulations of the Commission, a copy of the Company's 1997 Annual Report to Shareholders accompanies this Proxy Statement. Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes hereof to the extent that a statement contained herein (or in any subsequently filed document that is or is deemed to be incorporated by reference herein) modifies or supersedes such previous statement. Any statement so modified or superseded shall not be deemed to constitute a part hereof except as so modified or superseded. THIS PROXY STATEMENT INCORPORATES DOCUMENTS BY REFERENCE WHICH ARE NOT PRESENTED HEREIN OR DELIVERED HEREWITH. THESE DOCUMENTS (OTHER THAN EXHIBITS TO SUCH DOCUMENTS UNLESS SUCH EXHIBITS ARE SPECIFICALLY INCORPORATED BY REFERENCE HEREIN) ARE AVAILABLE WITHOUT CHARGE, UPON WRITTEN OR ORAL REQUEST BY ANY PERSON, INCLUDING ANY BENEFICIAL OWNER OF COMMON STOCK, TO WHOM THIS PROXY STATEMENT HAS BEEN DELIVERED. REQUESTS FOR DOCUMENTS SHOULD BE DIRECTED TO SECRETARY, BRAD RAGAN, INC., 4404-G STUART ANDREW BOULEVARD, CHARLOTTE, NORTH CAROLINA 28217 OR TELEPHONE: (704) 521-2107. IN ORDER TO ENSURE TIMELY DELIVERY OF THE DOCUMENTS, ANY SUCH REQUEST SHOULD BE RECEIVED BY DECEMBER 15, 1998. iii 6 TABLE OF CONTENTS
PAGE ---- AVAILABLE INFORMATION....................................... ii INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE............. ii SUMMARY..................................................... 1 The Meeting; Date, Time, Place and Purposes............... 1 Parties to the Exchange Agreement......................... 1 The Exchange.............................................. 1 Votes Required............................................ 1 Dissenters' Rights........................................ 2 Recommendation of the Board; Fairness of the Exchange..... 2 Opinion of Financial Advisor.............................. 2 Certain Litigation........................................ 3 Certain Tax Consequences of the Exchange.................. 3 Interests of Certain Persons in the Exchange.............. 3 Effective Time of the Exchange; Payment for Shares of Common Stock........................................... 3 Conditions to the Exchange................................ 3 Termination; Fees and Expenses............................ 4 Market Prices; Dividends.................................. 4 Selected Financial Data................................... 6 GENERAL INFORMATION......................................... 7 Proxy Solicitation........................................ 7 Voting Procedures......................................... 7 Voting of Proxies......................................... 8 SPECIAL FACTORS............................................. 8 Background of, and Reasons for, the Exchange.............. 8 Fairness of the Exchange.................................. 14 Interests of Certain Persons in the Exchange.............. 16 Opinion of Financial Advisor.............................. 17 Purpose of the Exchange; Plans for the Company............ 20 Certain Litigation........................................ 21 Accounting Treatment...................................... 21 Certain Tax Consequences of the Exchange.................. 21 Estimated Fees and Expenses............................... 22 THE EXCHANGE................................................ 22 Parties to the Exchange................................... 22 Effective Time of the Exchange............................ 22 Payment for Shares of Common Stock........................ 23 Terms of the Exchange..................................... 23 Source and Amount of Funds................................ 25 Dissenters' Rights........................................ 25 PROPOSAL TO AMEND THE ARTICLES.............................. 27 SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN BENEFICIAL OWNERS.................................................... 28
iv 7
PAGE ---- CORPORATE GOVERNANCE........................................ 29 General................................................... 29 Nominees for Director..................................... 30 Compensation of Directors................................. 31 Executive Officers of the Company......................... 31 EXECUTIVE COMPENSATION...................................... 32 Summary Compensation Table................................ 32 Stock Options, SAR Grants in 1997......................... 33 Option Exercises in 1997 and Year-End Values.............. 33 Other Compensatory Arrangements........................... 34 COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION..... 35 Compensation Committee Policies and Practices............. 35 Compensation of Executive Officers........................ 35 Compensation of the Chief Executive Officer............... 36 COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION............................................. 36 PERFORMANCE GRAPH........................................... 38 COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT........... 39 INDEPENDENT PUBLIC ACCOUNTANTS.............................. 39 PROPOSALS BY SHAREHOLDERS................................... 39 OTHER MATTERS............................................... 39 INFORMATION CONCERNING DIRECTORS AND EXECUTIVE OFFICERS OF GOODYEAR.................................................. 39 Directors of Goodyear..................................... 39 Executive Officers of Goodyear............................ 42
Annex I -- Agreement and Plan of Share Exchange Annex II -- Opinion of Interstate/Johnson Lane Corporation Annex III -- Form of Articles of Amendment Annex IV -- Article 13 of the North Carolina Business Corporation Act v 8 SUMMARY The following is a brief summary of certain information contained elsewhere in this Proxy Statement. This Summary does not purport to be complete and should be read in conjunction with, and is qualified in its entirety by reference to, the more detailed information appearing elsewhere or incorporated by reference in this Proxy Statement and the Annexes hereto. Shareholders are urged to read this Proxy Statement, including the Annexes, in its entirety. THE MEETING; DATE, TIME, PLACE AND PURPOSES The Meeting will be held at the Goodyear Automotive Service Training Center, 806 Tyvola Road, Charlotte, North Carolina, on December 22, 1998, at 9:00 a.m. local time, to (a) consider and vote upon the Articles of Amendment, the form of which is included as Annex III to this Proxy Statement, to grant dissenters' rights to the shareholders of the Company in connection with certain transactions, including the Exchange; (b) consider and vote upon a proposal to approve the Exchange Agreement; (c) elect six members to the Board for terms expiring at the date of the 1999 annual meeting of the Company's shareholders or such time as their respective successors are elected and qualified; and (d) transact such other business as may properly come before the Meeting. Holders of record of the Common Stock at the close of business on November 18, 1998 (the "Record Date") are entitled to vote at the Meeting and are entitled to one vote for each share held. Shareholders do not have cumulative voting rights in the election of Directors. Please note that the Articles of Amendment will be the first matter voted upon at the Meeting on December 22. If they are approved, the Meeting will be adjourned immediately so that the Articles of Amendment can be filed with the Office of the Secretary of State of North Carolina. It is expected that the Meeting will be reconvened at 9:00 a.m. on December 23, at the same location, to conduct voting on the Exchange Agreement and election of Directors. For additional information, please see "General Information -- Voting Procedures." PARTIES TO THE EXCHANGE AGREEMENT The Company sells new and retreaded tires, home products and automotive services. The address of the Company's principal executive offices is 4404-G Stuart Andrew Boulevard, Charlotte, North Carolina 28217, telephone 704-521-2100. Goodyear, an Ohio corporation, is an integrated manufacturer and supplier of rubber and tires products. Goodyear owns approximately 74.5% of the outstanding shares of Common Stock. The address of Goodyear's principal executive offices is 1144 East Market Street, Akron, Ohio 44316-0001, telephone 330-796-2121. THE EXCHANGE The Company and Goodyear have entered into the Exchange Agreement. Pursuant to the Exchange Agreement, Goodyear will acquire all outstanding shares of Common Stock not already held by it, and each such share (other than shares held by dissenting shareholders) will be exchanged for the right to receive $37.25 in cash, without interest, from Goodyear. See "THE EXCHANGE -- Terms of the Exchange." VOTES REQUIRED The presence, in person or represented by proxy, of the holders of a majority of the shares of Common Stock entitled to vote at the Meeting is necessary to constitute a quorum at the Meeting. Approval of the Exchange Agreement and the Exchange requires the affirmative vote of holders of a majority of the shares of Common Stock outstanding on the Record Date, and approval of the Articles of Amendment requires the affirmative vote of a majority of votes cast on this proposal. To the knowledge of the Company, Goodyear, which owns approximately 74.5% of the outstanding Common Stock, intends to vote its shares in favor of the Exchange Agreement. In addition, Goodyear has agreed in the Exchange Agreement to vote its shares in favor of the Articles of Amendment. Goodyear's favorable vote will assure the approval of each of these matters. Directors are elected by a plurality of votes cast at the Meeting. Goodyear has indicated its intention to vote its shares in favor of the persons named elsewhere in this Proxy Statement as nominees for Director, which will assure the election of these individuals. 1 9 Only shareholders of record at the close of business on the Record Date are entitled to notice of and to vote at the Meeting. On the Record Date, 2,190,619 shares of Common Stock, held by holders of record, were issued and outstanding and entitled to vote at the Meeting. DISSENTERS' RIGHTS Under the Articles, as proposed to be amended, and North Carolina law, holders of Common Stock who do not vote in favor of the Exchange Agreement and who comply with certain notice requirements and other procedures will have the right to dissent and to be paid cash for the "fair value" of their shares. The "fair value" of Common Stock as finally determined under such procedures may be more or less than the $37.25 in cash for which the shares held by non-dissenting shareholders will be exchanged in the Exchange. The procedures to be followed by dissenting shareholders are described elsewhere in this Proxy Statement, and the text of the applicable statutory provisions is set forth in Annex IV to this Proxy Statement. Failure to follow these procedures precisely may result in the loss of dissenters' rights. Dissenting shareholders who receive cash for their shares of Common Stock pursuant to their dissenters' rights will recognize a gain or loss for federal income tax purposes. See "THE EXCHANGE -- Dissenters' Rights" and "SPECIAL FACTORS -- Certain Tax Consequences of the Exchange." RECOMMENDATION OF THE BOARD; FAIRNESS OF THE EXCHANGE The Special Committee, at a meeting held on February 13, 1998, unanimously recommended that the Board adopt in principle the Exchange, and the Board, at a meeting also held on February 13, 1998, adopted in principle the Exchange, subject to negotiation and execution by the parties of a definitive agreement. At a meeting held on May 4, 1998, the Special Committee recommended that the Board adopt the Exchange Agreement, and at a meeting held on May 5, 1998, the Board adopted the Exchange Agreement. Eugene R. Culler, Jr., Chairman of the Board of the Company and an Executive Vice President of Goodyear, Michael R. Thomann, then Vice Chairman of the Board, President and Chief Executive Officer of the Company, and Ronald J. Carr, Vice President -- Finance, Chief Financial Officer, Treasurer and Secretary of the Company, abstained from the votes taken by the Board with respect to the Exchange and the Exchange Agreement because of Mr. Culler's employment by Goodyear and Messrs. Thomann's and Carr's prior employment by Goodyear and current employment by the Company, which is a 74.5%-owned subsidiary of Goodyear. The Board has determined that the Exchange Agreement is fair to, and in the best interests of, the shareholders of the Company (other than Goodyear) and recommends that the shareholders vote FOR the approval of the Exchange Agreement and the Exchange. For a discussion of the factors considered by the Special Committee and the Board in reaching their recommendation and determination, see "SPECIAL FACTORS -- Background of, and Reasons for, the Exchange," "-- Fairness of the Exchange" and "-- Opinion of Financial Advisor." OPINION OF FINANCIAL ADVISOR IJL was engaged by the Special Committee in October 1997 to act as financial advisor to the Company in connection with the Exchange. IJL has delivered its written opinions, dated February 13, 1998, May 4, 1998 and the date of this Proxy Statement, to the Special Committee to the effect that the consideration to be received by the shareholders of the Company (other than Goodyear) pursuant to the Exchange is fair to such shareholders from a financial point of view. No limitations were imposed on IJL by the Company with respect to the investigations made or procedures followed by IJL in rendering its opinion. The full text of IJL's opinion dated the date of this Proxy Statement, including the procedures followed, the matters considered and the assumptions made by IJL, is included as Annex II to this Proxy Statement and should be read in its entirety. Pursuant to the terms of IJL's engagement, the Company has paid IJL (and Goodyear has agreed to reimburse the Company in certain circumstances if the Exchange is not completed) $65,000. For a description of IJL's opinion and of the terms of its engagement by the Special Committee, see "SPECIAL FACTORS -- Opinion of Financial Advisor." 2 10 CERTAIN LITIGATION A class action complaint (the "Shareholder Litigation") relating to Goodyear's October 15, 1997 offer to acquire the outstanding shares of Common Stock not owned by Goodyear for $32.00 per share (the "Initial Offer") was filed on November 13, 1997. The plaintiffs in the Shareholder Litigation have filed a notice of voluntary dismissal of their claims without prejudice and the action has been dismissed. See "SPECIAL FACTORS -- Background of, and Reasons for, the Exchange" and "-- Certain Litigation." CERTAIN TAX CONSEQUENCES OF THE EXCHANGE The receipt of cash for the Common Stock in the Exchange or upon the exercise of dissenters' rights will be a taxable transaction for United States federal income tax purposes and may also be a taxable transaction for state, local, foreign and other tax purposes. SHAREHOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE PARTICULAR TAX CONSEQUENCES TO THEM OF THE EXCHANGE OR OF EXERCISING DISSENTERS' RIGHTS. See "SPECIAL FACTORS -- Certain Tax Consequences of the Exchange." INTERESTS OF CERTAIN PERSONS IN THE EXCHANGE In considering the recommendations of the Special Committee and the Board with respect to the Exchange, shareholders should be aware that members of the Board and of management of the Company have certain interests which present them with potential conflicts of interest in connection with the Exchange. Specifically, by virtue of Goodyear's ownership of 74.5% of the outstanding shares of Common Stock, Goodyear has caused the election of, and has the power to cause the removal of, members of the Board and of management of the Company. See "SPECIAL FACTORS -- Interest of Certain Persons in the Exchange." EFFECTIVE TIME OF THE EXCHANGE; PAYMENT FOR SHARES OF COMMON STOCK The Exchange will become effective when articles of share exchange (the "Articles of Share Exchange") are duly filed with the Office of the Secretary of State of North Carolina in accordance with the North Carolina Business Corporation Act (the "NCBCA") or at such other time as may be specified in the Articles of Share Exchange (the "Effective Time"). The Articles of Share Exchange will be filed upon the satisfaction or waiver of all conditions set forth in the Exchange Agreement. See "THE EXCHANGE -- Effective Time of the Exchange." First Union National Bank (the "Exchange Agent") will forward to the holders of certificates formerly evidencing shares of Common Stock (other than dissenting shareholders) detailed instructions with regard to the surrender of certificates, together with a transmittal letter. The Exchange Agent will forward payment to the former holders of Common Stock following receipt by the Exchange Agent of certificates for their Common Stock and other required documents. No interest will be paid or accrued on the cash payable upon the surrender of certificates. SHAREHOLDERS SHOULD NOT SEND ANY STOCK CERTIFICATES AT THIS TIME. See "THE EXCHANGE -- Payment for Shares of Common Stock." CONDITIONS TO THE EXCHANGE The obligations of the Company and Goodyear to effect the Exchange are subject to the fulfillment at or prior to the closing of the transactions pursuant to the Exchange Agreement (the "Closing") of certain conditions, including the following: (a) at the Meeting, the Exchange Agreement must have been approved by the affirmative vote of holders of a majority of the issued and outstanding shares of Common Stock entitled to vote thereon; (b) all filings, registrations, notices, consents, approvals, authorizations, certificates, orders and permits with respect to the Exchange required from any court, government or governmental body, agency or instrumentality having or asserting jurisdiction over the Company or Goodyear must have been made or obtained and be in full force and effect on a basis satisfactory to Goodyear; and (c) the representations and warranties made by the Company in the Exchange Agreement must be true and correct in all material respects, and the Company must have performed in all material respects its covenants and obligations under the Exchange Agreement. Approval of the Exchange Agreement will require the affirmative vote of Goodyear. Goodyear is not required to vote in favor 3 11 of the Exchange Agreement under the terms of the Exchange Agreement. See "THE EXCHANGE -- Terms of the Exchange -- Conditions to the Exchange." TERMINATION; FEES AND EXPENSES The Exchange Agreement and the Exchange may be terminated and abandoned at any time prior to the Effective Time, irrespective of the prior approval of the Exchange Agreement and the Exchange by the shareholders of the Company: (a) by the mutual written consent of the Board (acting upon the recommendation of the Special Committee) and the Board of Directors of Goodyear (the "Goodyear Board"); (b) by action of the Goodyear Board or of certain executive officers of Goodyear in the event that (i) any action, suit, investigation, or other proceeding or claim (other than the Shareholder Litigation) is threatened or instituted before any court or by any government or governmental agency or instrumentality in connection with the Exchange Agreement, (ii) the status of the Shareholder Litigation shall be such that, in Goodyear's sole judgment, pursuing the consummation of the Exchange would not be in the best interests of Goodyear, (iii) the holders of more than 5% of the outstanding shares of Common Stock have asserted their dissenters' rights and have not lost, surrendered or withdrawn such rights, (iv) the Company fails to comply with or to perform any covenant or obligation of the Company contained in or implied by the terms of the Exchange Agreement, (v) any condition precedent to the implementation of the Exchange is not satisfied (other than a condition which Goodyear could have caused to be satisfied without incurring any cost or expense or taking an action or suffering a consequence deemed by Goodyear to be adverse to Goodyear's interests), or (vi) any representation or warranty of the Company proves to have been untrue or incorrect when made or at any time ceases to be true and correct in all respects (each of such events constituting "Just Cause"); or (c) by action of the Goodyear Board or of certain executive officers of Goodyear without Just Cause. If Goodyear unilaterally abandons and terminates the Exchange Agreement without Just Cause, it must reimburse the Company for any fees reasonably incurred and paid to investment bankers and legal counsel in connection with the Exchange Agreement plus any costs reasonably incurred in connection with the preparation and distribution of this Proxy Statement. Unless the Exchange Agreement is terminated prior to the shareholder vote thereon, the failure by Goodyear to vote its shares in favor of the Exchange will be deemed to be a termination by Goodyear without Just Cause. If Goodyear terminates the Exchange Agreement because of (a) an actual or threatened action, suit, investigation or other proceeding, (b) the status of the Shareholder Litigation or (c) the assertion of dissenters rights, as described above, by the holders of more than 5% of the outstanding Common Stock, Goodyear will reimburse the Company for up to $250,000 in such expenses. See "THE EXCHANGE -- Terms of the Exchange -- Termination; Fees and Expenses." MARKET PRICES; DIVIDENDS The Common Stock is listed on the AMEX under the symbol "BRD." On October 23, 1997, the last full trading day prior to the announcement by the Company that it had received the Initial Offer, the closing sales price of the Common Stock, as reported on the AMEX, was $30.00. On February 13, 1998, the last full trading day prior to the announcement by the Company that it had accepted in principle Goodyear's February 4, 1998 offer to acquire the outstanding shares of Common Stock not owned by Goodyear for $37.25 per share (the "Revised Offer"), the closing sales price of the Common Stock, as reported on the AMEX, was $35.00. On November 12, 1998, the closing sales price of the Common Stock, as reported on the AMEX, was $39.00. 4 12 The following table sets forth, for the periods shown, the high and low sales prices for the Common Stock, as reported on the AMEX.
HIGH LOW ---- --- Quarter Ended March 31, 1998............................................ $39.00 $35.00 June 30, 1998............................................. 39.25 37.50 September 30, 1998........................................ 39.25 38.25 December 31, 1998 (through November 12)................... 39.00 37.25 Quarter Ended March 31, 1997............................................ 30.50 27.50 June 30, 1997............................................. 27.50 20.00 September 30, 1997........................................ 29.00 23.63 December 31, 1997......................................... 37.00 30.00 For year 1997.......................................... 37.00 20.00 Quarter Ended March 31, 1996............................................ 36.50 34.50 June 30, 1996............................................. 36.00 30.75 September 30, 1996........................................ 31.25 30.75 December 31, 1996......................................... 31.00 30.25 For year 1996.......................................... 36.50 30.25
The Company has not paid any cash dividends on the Common Stock since 1991. Under the Exchange Agreement, the Company has agreed not to pay any dividends on the Common Stock prior to the Effective Time. See "THE EXCHANGE -- Terms of the Exchange -- Conduct of the Business of the Company." SHAREHOLDERS ARE URGED TO OBTAIN CURRENT MARKET QUOTATIONS FOR THE COMMON STOCK. 5 13 SELECTED FINANCIAL DATA The selected financial data set forth below are derived from the historical financial statements of the Company and should be read in conjunction with such financial statements, which are incorporated herein by reference. See "INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE." Results of the Company for the nine months ended September 30, 1998 are not necessarily indicative of results expected for the entire year. All adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of results of interim periods have been included.
AT OR FOR THE NINE MONTHS AT OR FOR THE ENDED SEPTEMBER 30, YEAR ENDED DECEMBER 31, ----------------------- -------------------------------------------------------------- 1998 1997 1997 1996 1995 1994 1993 ---------- ---------- ---------- ---------- ---------- ---------- ---------- (AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) Revenues................. $ 190,520 $ 181,970 $ 259,557 $ 251,999 $ 251,142 $ 249,007 $ 242,699 Costs of Products Sold... $ 130,255 $ 125,545 $ 169,276 $ 165,921 $ 165,850 $ 163,168 $ 159,972 Selling, Administrative and General Expenses... $ 65,956 $ 63,456 $ 85,055 $ 83,386 $ 80,397 $ 79,455 $ 76,982 Income (Loss) Before Income Tax and Effect of Change in Accounting Principle.............. $ 2,049 $ 1,400 $ 2,466 $ (4,644) $ 2,410 $ 4,511 $ 4,067 Provision (Benefit) for Income Taxes........... $ 791 $ 474 $ 1,038 $ (1,735) $ 1,054 $ 675 $ -- Income (Loss) Before Effect of Change in Accounting Principle... $ 1,258 $ 926 $ 1,428 $ (2,909) $ 1,356 $ 3,836 $ 4,067 Effect of Change in Accounting Principle... $ -- $ -- $ -- $ -- $ -- $ -- $ 1,253 Net Income (Loss)........ $ 1,258 $ 926 $ 1,428 $ (2,909) $ 1,356 $ 3,836 $ 2,814 Basic Earnings per Common Share: Income (Loss) Before Effect of Change in Accounting Principle.......... $ 0.57 $ 0.42 $ 0.65 $ (1.33) $ 0.62 $ 1.75 $ 1.85 Basic Earnings per Common Share: Effect of Change in Accounting Principle.......... $ -- $ -- $ -- $ -- $ -- $ -- $ (0.57) Basic Earnings per Common Share: Net Income (Loss).... 0.57 0.42 $ 0.65 $ (1.33) $ 0.62 $ 1.75 $ 1.28 Cash Dividends per Share.................. -- -- $ -- $ -- $ -- $ -- $ -- Average Common Shares Outstanding............ 2,190,619 2,190,619 2,190,619 2,190,619 2,190,619 2,190,619 2,190,619 Assets................... $ 135,361 $ 134,792 $ 132,010 $ 127,330 $ 122,013 $ 118,823 $ 114,037 Long-term Debt........... $ -- $ -- $ -- $ -- $ -- $ 4 $ 17 Working Capital.......... $ 40,737 $ 40,061 $ 40,345 $ 39,560 $ 41,942 $ 42,010 $ 40,231 Shareholders' Equity..... $ 49,424 $ 47,301 $ 48,166 $ 46,738 $ 49,647 $ 48,291 $ 44,454 Book Value per Share (1).................... $ 22.56 $ 21.59 $ 21.99 $ 21.34 $ 22.66 $ 22.04 $ 20.29
- --------------- (1) Inventory valued at current period cost, as opposed to the "last in, first out" method, would increase book value per share at years end by $1.85 in 1997, $2.22 in 1996, $2.15 in 1995, $2.00 in 1994 and $1.91 in 1993. 6 14 GENERAL INFORMATION PROXY SOLICITATION This Proxy Statement is furnished in connection with the solicitation by the Board of proxies to be voted at the Meeting to be held at the Goodyear Automotive Service Training Center, 806 Tyvola Road, Charlotte, North Carolina, on December 22, 1998, at 9:00 a.m. local time. The entire cost of such solicitation will be borne by the Company. In addition to solicitation by mail, arrangements will be made with brokerage houses and other custodians, nominees and fiduciaries to send proxy materials to their principals, and the Company may reimburse them for their expenses in doing so. Personal solicitations may be conducted by Directors, officers and employees of the Company, none of whom will be specially compensated for such solicitation activities. This Proxy Statement and accompanying proxy card are being mailed to shareholders on or about November 23, 1998. VOTING PROCEDURES The Common Stock is the only outstanding voting security of the Company. Holders of record of the Common Stock at the close of business on the Record Date (November 18, 1998) are entitled to vote at the Meeting and are entitled to one vote for each share held. At the close of business on the Record Date, there were 2,190,619 shares of Common Stock issued and outstanding held of record by holders. On the Record Date, Goodyear owned, beneficially and of record, 1,633,695 shares of Common Stock. The proposal to approve the Exchange Agreement, pursuant to which each outstanding share of Common Stock of the Company not currently held by Goodyear will be acquired by Goodyear and (except for shares held by dissenting shareholders) will be exchanged for the right to receive from Goodyear $37.25 in cash, will be approved if it receives the affirmative vote of the holders of a majority of the outstanding shares of Common Stock. Abstentions and shares held by brokers who do not receive voting instructions from beneficial owners will, therefore, have the same effect as a vote against this proposal. The proposal to adopt the Articles of Amendment to grant dissenters' rights to shareholders of the Company in connection with the Exchange requires the affirmative vote of a majority of votes cast on such proposal. Abstentions and broker non-votes will not be counted as votes against this proposal, and will therefore have no effect. To the knowledge of the Company, Goodyear, which owns approximately 74.5% of the Common Stock, intends to vote its shares in favor of the Exchange Agreement. In addition, Goodyear has agreed in the Exchange Agreement to vote its shares in favor of the Articles of Amendment. Goodyear's favorable vote will assure the approval of each of these matters. According to the laws of North Carolina, under which the Company is incorporated, shareholders do not have cumulative voting rights in connection with the election of Directors as long as the Company has securities registered under the Exchange Act at the record date for determining shareholders eligible to vote at the meeting. Directors are elected by a plurality of the votes cast at the Meeting provided that a quorum is present. Goodyear has indicated its intention to vote its shares in favor of the persons named elsewhere in this Proxy Statement as nominees for Director, which will assure the election of these individuals. Votes with respect to the election of Directors may be cast in favor or withheld. Votes that are withheld will be excluded entirely from the vote and will have no effect on the outcome of the election, although such votes will be counted for the purposes of establishing a quorum. Under the North Carolina Business Corporation Act (the "NCBCA"), in order for the shareholders to have dissenters' rights with respect to the Exchange, the Articles of Amendment must be effective before the vote is taken with respect to approval of the Exchange Agreement. Accordingly, the Articles of Amendment will be the first matter voted upon at the Meeting on December 22. If they are approved, the Meeting will be adjourned so that the Articles of Amendment can be filed with the Office of the Secretary of State of North Carolina, at which time they will become effective under the NCBCA. The Meeting will be reconvened on December 23 after this filing has occurred to conduct the voting on the Exchange Agreement and election of Directors. VOTING OF PROXIES The shares represented by the accompanying proxy card and entitled to vote will be voted if the proxy card is properly signed and received by the Secretary of the Company prior to the Meeting. Where a choice is specified 7 15 on any proxy card as to the vote on any matter to come before the Meeting, the proxy will be voted in accordance with such specification. Where no choice is specified, the proxy will be voted for the proposal to approve the Articles of Amendment, for the proposal to approve the Exchange Agreement, for the election of the persons nominated to serve as the Directors named in this Proxy Statement and in such manner as the persons named on the enclosed proxy card in their discretion determine upon such other business as may properly come before the Meeting or any adjournment thereof. Any shareholder giving a proxy has the right to revoke it at any time before it is voted. A proxy is suspended if the person giving the proxy attends the Meeting and elects to vote in person. SPECIAL FACTORS BACKGROUND OF, AND REASONS FOR, THE EXCHANGE Since March 1986, Goodyear has owned more than a majority of the Common Stock of the Company, having acquired most of its ownership through private purchases made from members of the family of B. E. Ragan, Sr., the Company's founder, and from GAMCO Investors, Inc. and Gabelli and Company, Inc. Since the acquisition by Goodyear of majority ownership of the Company, Goodyear has implemented procedures and policies at the Company that are consistent with those of Goodyear generally. In addition, Goodyear has put in place senior management consisting of current or former employees of Goodyear. For a description of material transactions and relationships between Goodyear and the Company for the past two years, see "COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION." In November 1989 the Company issued to Goodyear a nontransferable option, exercisable for up to five years, to purchase up to 650,000 additional shares of Common Stock. Goodyear paid the Company $162,500 for this option. The purchase price of shares under this option would have been based on the market price of the Common Stock at the time of exercise, except that the purchase price would have had to be at least $25.00 and could not have been more than $75.00. Goodyear requested this option so that it could acquire the number of shares of outstanding Common Stock that would have been necessary for consolidation of the Company with Goodyear for federal income tax purposes in the future, if Goodyear deemed such consolidation to be beneficial, and for inclusion of the Company in the "Goodyear control group" for purposes of employee benefit programs, which Goodyear and the Company considered potentially beneficial to both Goodyear and the Company. Goodyear never purchased any shares of Common Stock pursuant to this option, which terminated in November 1994. On October 17, 1990, Goodyear notified the Company of its desire to acquire the remaining outstanding shares of Common Stock not then owned by Goodyear for a cash purchase price of $22.00 per share (the "1990 Proposal"). Goodyear made this proposal because it believed that the shareholders of the Company would welcome an opportunity to sell their shares at $22.00 per share, which represented the highest reported sales price for such Common Stock for the approximately ten month period preceding the date of the proposal, and that the Company would benefit from certain organizational and other operating efficiencies which could be realized if the Company were to become a wholly owned subsidiary of Goodyear. Shortly after the proposal, a class action lawsuit was filed against Goodyear, certain of its officers and the Company and its directors which challenged the 1990 Proposal. Although Goodyear believed the lawsuit to be without merit, it recognized that the defense of the lawsuit by the Company, Goodyear and the individual defendants would have required the expenditure of substantial amounts of time and money which would not be productive for the Company or for Goodyear. Accordingly, Goodyear withdrew the 1990 Proposal on January 3, 1991. After the withdrawal of the 1990 Proposal in January of 1991, there were no discussions or communications between Goodyear and the Company regarding the acquisition of all of the outstanding shares of the Common Stock of the Company not owned by Goodyear (the "Public Shares") or any similar transaction until Goodyear made the Initial Offer on October 15, 1997. Goodyear had, however, from time to time since the withdrawal of its 1990 Proposal considered acquiring all of the Public Shares in order to, among other reasons, eliminate the potential for conflicts of interest between Goodyear and the Company and achieve greater flexibility in managing the Company's operations and eliminating certain costs. 8 16 During the first quarter of 1997, Goodyear received an unsolicited preliminary proposal from an investment banking firm offering to assist Goodyear in selling its interest in the Company. Goodyear did not retain the firm or take any action with respect to such proposal. In July 1997, members of Goodyear management, including Mr. E. R. Culler, an Executive Vice President of Goodyear and the Chairman of the Board of the Company, and other members of Goodyear's North America Tire Division, began to evaluate the possibility of acquiring the Public Shares. In August 1997, representatives of Goodyear and Credit Suisse First Boston ("CSFB") discussed the possible structures for a transaction and the process involved in acquiring the Public Shares. Prior to those discussions, CSFB furnished a brief written outline of the process involved if Goodyear decided to make an offer to acquire the Public Shares and identified potential issues, emphasizing the importance of the Special Committee and its independence. CSFB advised Goodyear that the Special Committee would negotiate to obtain the best possible price, that the process would take substantial time to complete and that litigation is often involved in transactions of this kind. During September 1997, Goodyear management approved proceeding with an evaluation of the possible acquisition of the Public Shares and the retention of CSFB to assist Goodyear with the financial evaluation and development of a possible offering price. On September 12, 1997, Goodyear retained Covington & Burling as counsel, and Kennedy Covington Lobdell & Hickman, L.L.P., as North Carolina counsel, to assist Goodyear with the transaction. Shortly thereafter, Goodyear formally retained CSFB to advise it on the financial aspects of the transaction. On September 22, 1997, representatives of Goodyear, CSFB and Covington & Burling met to consider the possible acquisition of the Public Shares. Possible structures for the transaction were discussed (tender offer, merger, share exchange) but no conclusions were reached. It was determined that CSFB would not be requested to provide a fairness opinion to Goodyear, since the transaction would not be material to Goodyear and the Company would have its own financial advisor. Possible ranges of prices per share that might be offered for the Public Shares were discussed but no conclusion was reached. In September of 1997, CSFB provided Goodyear with a list of previous transactions similar to the Exchange resulting in the acquisition of publicly held shares by the majority shareholder and business, financial and background information concerning the transactions and the participants, compiled by Securities Data Company. CSFB also provided a written outline setting forth in general terms (1) a description of the various possible methods for valuing a business (Discounted Cash Flow Analysis, Comparable Trading Analysis, Comparable Acquisition Analysis, and Leveraged Analysis) and issues relating to each method and to acquisitions in general; (2) a description of a method for determining the appropriate discount rate; (3) information regarding selected tire and rubber company acquisitions; (4) information regarding companies comparable to the Company; (5) transactional information regarding selected minority interest acquisition transactions; and (6) Standard & Poor's stock reports on certain other public tire retailing companies. In telephone conversations during the last week of September and the first week of October, CSFB received information regarding the Company's business and financial performance, described valuation methodologies that are typically used to value companies in acquisition transactions and that would probably be used by the Company and its advisors in evaluating any offer for the publicly held shares of Common Stock. At Goodyear's request, CSFB also confirmed the structural and mathematical accuracy of a Goodyear computer model for calculating discounted cash flows by using test parameters provided by Goodyear on CSFB's computer model and comparing the results with those from the Goodyear model. The CSFB results were substantially the same as the results from the Goodyear model. Goodyear has advised the Company that the CSFB model uses a discounted cash flow calculation that after ten years of estimated results uses a terminal value based on a multiple of earnings before interest, taxes, depreciation and amortization ("EBITDA"). Goodyear's model uses discounted cash flows into perpetuity which are reduced by the Company's debt. Goodyear did not receive a copy of, or an oral report of, the complete results of CSFB's test and has been advised that CSFB did not preserve a record of the test. Goodyear did not regard the CSFB test as a valuation of the Company. CSFB gave no written or oral opinion and made no recommendation regarding the terms of an offer. Prior to making an offer for the Public Shares, Goodyear calculated the estimated value of the Company on the basis of various assumed future cash flows discounted to their present value using its computer modeling technique and applying variations on four basic business scenarios, each a variation of the basic business plan of 9 17 the management of the Company. The cash flows were estimated into perpetuity and discounted at 11.5%, except that in one case a 9.51% discount rate was used. The discounted cash flows were reduced in each case by the amount of the Company's debt, approximately $36.3 million. The significant variables used were: (i) sales and cost of goods sold growth rates ranged from no growth to 5% annual growth, except that in certain cases sales and cost of goods sold were reduced in the first year to reflect an assumed withdrawal from the retail business and thereafter increased at annual rates up to 5%; (ii) sales, administrative and general expense as a percent to sales ranged from 33% to 23%; and (iii) in those cases where it was assumed that the Company would withdraw from its retail stores business, receivables and inventory levels were reduced by approximately $79.5 million, resulting in a like amount of additional cash flow in the first year and permanently reducing investment by approximately $73 million. In each of the cases, the computation indicated a per share "value" significantly less than $32.00, the highest being $30.13 per share. In addition, the financial effect on Goodyear of acquiring the Public Shares at various assumed prices was calculated using various estimated cash flows that included Goodyear's estimated "manufacturing profits" on certain assumed levels of incremental sales of new tires. Even with the estimated "manufacturing profit" of Goodyear on such incremental sales being attributed to the Company, the present value of such cash flows minus the Company's debt ranged from no value to $27.61 per share. Goodyear also reviewed the recent trading history of the Common Stock. It was concluded that the trading range of the Common Stock during the year ended September 30, 1997 ($31 to 20) was not a reasonable measure of the value of the Common Stock in view of the high price to earnings ratio implied by such prices and the very low volume of shares (108,500) traded during the period. Based on the foregoing, Goodyear concluded that it would offer $32.00 per share because that amount exceeded the then current market price, recognizing that a final price would be negotiated with the Special Committee and evaluated by its financial advisor. On October 6, 1997, the Goodyear Board authorized management to proceed with an offer to acquire the Public Shares. Shortly thereafter, Goodyear management determined to make an offer to acquire all of the Public Shares through a share exchange at $32.00 per share. By letter dated October 15, 1997 from Goodyear to the Board, Goodyear made the Initial Offer, pursuant to which it would acquire all outstanding shares of Common Stock not owned by Goodyear for $32.00 per share in a share exchange that would require the approval of the Board and the holders of a majority of the outstanding shares of Common Stock. The letter was accompanied by a proposed Agreement and Plan of Share Exchange, executed by Goodyear. The Initial Offer was unsolicited by the Company, made without the prior knowledge of management or the Board (except as set forth above), and expressly subject to approval by the Board on or before December 18, 1997 and approval by the shareholders of the Company on or before May 25, 1998, or as soon thereafter as possible. In its letter, Goodyear indicated that the purpose of the offer was to facilitate certain restructuring activities and to permit various organizational and other operating efficiencies. On October 23, 1997, the Board appointed the Special Committee, composed of Richard D. Pearson and Dr. Richard E. Sorensen, neither of whom is (nor at any time in the past was) an employee of the Company or an employee or director of Goodyear, to study the proposal and to report its recommendations to the Board. (Mr. Pearson is the owner and manager of a number of companies involved in the sale and leasing of trucks and other heavy equipment that sell products to Goodyear in the ordinary course of business. During the past five years, such sales in the aggregate have not exceeded $10,000 per year.) The Board authorized the Special Committee to engage special legal counsel and an investment advisor and, if deemed appropriate by the Special Committee, to enter into negotiations with Goodyear. On October 23, 1997, the Company issued a press release announcing its receipt of the Initial Offer and the formation of the Special Committee. The Special Committee was assisted in its deliberations by Robinson, Bradshaw & Hinson, P.A., of Charlotte, North Carolina ("Robinson Bradshaw"), which firm had served as special counsel to the outside directors from time to time since 1978. The Board was advised by Womble Carlyle Sandridge & Rice, PLLC, of Charlotte, North Carolina ("Womble Carlyle"), the Company's regular counsel. Both Robinson Bradshaw and 10 18 Womble Carlyle from time to time have represented IJL in various corporate financing, investment advisory and litigation matters. The Special Committee first met by telephone on October 27, 1997 to discuss the Initial Offer, a time frame for a decision with regard to the offer and the engagement of an investment advisor. At that time, the Special Committee decided not to engage in substantive discussions or negotiations with Goodyear until the Special Committee had been advised by its investment advisor as to the fairness of the Initial Offer. The Special Committee next met by telephone on November 3, 1997 and engaged IJL as its financial advisor. At that meeting, the Special Committee was made aware of recent amendments to North Carolina law that eliminated the dissent and appraisal rights of shareholders of the Company in certain transactions such as the one proposed by Goodyear. The Special Committee favored a transaction that would allow shareholders to assert dissenters' rights in view of Goodyear's ability to control the outcome of shareholder action on such transaction. The Special Committee also believed that Goodyear should agree to pay the Company's fees and expenses incurred in connection with the proposed transaction in the event the transaction was not consummated. Counsel to the Special Committee advised that he had discussed both issues with Goodyear's counsel, who had agreed to raise them with Goodyear. In early November 1997, IJL began its analysis of the Initial Offer and met with management of the Company with respect to the Company's operations and prospects. On November 13, 1997, the Shareholder Litigation was filed on behalf of certain shareholders of the Company against the Company and each member of the Board alleging that the directors had violated their fiduciary duties in connection with the proposed transaction and seeking injunctive relief, compensatory damages in excess of $10,000 and attorneys fees. See "-- Certain Litigation." The Special Committee met by telephone with representatives from IJL on November 14, 1997 to discuss IJL's preliminary analysis regarding the Initial Offer. IJL advised the Special Committee that its preliminary opinion was that the Initial Offer was fair from a financial point of view to the public shareholders based on the various analyses IJL had performed. There was also discussion regarding certain methods of valuing the Company that would result in a value per share in excess of the Initial Offer. IJL advised the Special Committee that a comparison to the median and mean range of book value multiples of comparable companies could suggest that the Common Stock may have a value of as much as $40 per share. However, IJL cautioned the Special Committee that because of the Company's low rate of return on equity relative to comparable companies, IJL did not believe a book value analysis was a reliable measure. See "-- Opinion of Financial Advisor." The Special Committee observed that the Common Stock had traded on very limited volume in the range of approximately $20 to $25 per share in late June/early July 1997 and at approximately $29 per share one month prior to the announcement of the proposed transaction with Goodyear, had closed at $33.50 on October 24, 1997 (the first trading day after the Company's press release regarding the Initial Offer) and was trading that day at a bid price of $36 and an ask price of $37. It was noted that trading in the Common Stock was typically significantly less than 2,500 shares per day. The Special Committee also discussed and was unable to explain the increase in market prices for the Common Stock over the Initial Offer, and it was suggested that certain investors were speculating as to the price Goodyear ultimately would pay for the Company. The Special Committee also discussed with IJL the performance of the Company's management, the reasonableness of historical and projected financial performance, and the benefits to the Company of having Goodyear as a majority shareholder, including the availability to the Company of intercompany loans and certain professional and other services at below market rates. A few days after the November 14, 1997 meeting, IJL provided its written report to the Special Committee, which confirmed IJL's preliminary opinion that the Initial Offer was fair to the public shareholders of the Company from a financial point of view. The Special Committee next met with IJL on November 20, 1997 to discuss IJL's written report. On that day, the Common Stock was trading on limited volume at $36 per share. (On November 14, 1997, the last day before then on which any shares of Common Stock were traded, the high, low and closing prices were $37.00, $33.50 and $36.00, respectively.) During the meeting, the Special Committee continued its evaluation and review of the factors considered by IJL in its analysis of the value of the Company. IJL advised the Special Committee that a price of $31 to $36 per share would be within the range of fairness, but that a price less than $31 per share could also have been determined to be within the range of fairness. At the conclusion of this meeting, there was 11 19 general agreement between members of the Special Committee that a price of $36 per share would seem favorable to the public shareholders of the Company. The Board met at a regular board meeting on November 21, 1997, at which the Special Committee reported that it had engaged outside legal counsel and an investment advisor, that it had initiated discussions with Goodyear regarding the payment by Goodyear of the Company's fees and expenses incurred in connection with the transaction, and that it had received IJL's preliminary report and was prepared to enter into full negotiations with Goodyear regarding the proposed transaction. At the request of the Special Committee, the Board again authorized the Special Committee to proceed with negotiations with Goodyear. Thereafter, the Special Committee scheduled a meeting with representatives of Goodyear on December 5, 1997. On December 2, 1997, the Special Committee and representatives of IJL conferred by telephone with a large institutional shareholder of the Company (the "Investor") who controls a majority of the publicly held shares of the Company and who previously had requested a meeting with the Company regarding the Initial Offer. The Investor expressed to the Special Committee his view that the potential stock value of the Company could be as high as $50 per share, assuming a 20% return on equity and a price multiple of 15 times earnings. At the request of the Special Committee, the Investor agreed to further analyze the Company's value and to communicate to the Special Committee the results of such analysis prior to the Special Committee's December 5th meeting with Goodyear. In a letter dated December 4, 1997, the Investor indicated to the Special Committee that he felt that the economic value of the Company would be no less than $45 per share assuming a 15% return on equity and a multiple of 15 times earnings. At that time, the Special Committee thought that the assumptions underlying a price of $45 per share were not realistic based on historical trading prices, the Company's historical performance and Goodyear's ownership of approximately 74.5% of the outstanding shares of Common Stock. The Special Committee met with representatives of Goodyear on December 5, 1997 and provided representatives of Goodyear with a copy of the Investor's December 4th letter. At the direction of the Special Committee, negotiations proceeded regarding the Special Committee's desire to condition the proposed transaction upon the affirmative approval of the holders of a majority of the publicly traded shares, and to provide each shareholder with dissenters' rights. In addition, the parties discussed whether Goodyear would agree to pay the Company's fees and expenses, then estimated to be approximately $200,000, for considering the transaction. Representatives of Goodyear advised the Special Committee that Goodyear would agree to the Special Committee's request for dissenters' rights and payment of expenses, but that it would not agree to condition the proposed transaction upon the affirmative vote of the holders of a majority of the publicly held shares. Goodyear advised the Special Committee that such a measure would effectively subject the transaction to the approval of the Investor. The parties then discussed price, and it was noted that the Common Stock had traded at a high in the range of $36 per share two years prior to the proposed transaction and had recently traded as high as $37 per share. The Special Committee expressed its view that Goodyear should offer a premium over current market prices and suggested a price of $40 per share. Representatives of Goodyear indicated that they were authorized to discuss a price of up to $36 per share but were not authorized to exceed that price. Following a brief meeting between members of the Special Committee and counsel, the Special Committee determined to suggest a price of $37.25 per share, which would offer a slight premium over market prices then prevailing, and representatives of Goodyear reiterated their lack of authority to discuss a price in excess of $36 per share. Negotiations stalled during the remainder of 1997. Dr. Sorensen, on behalf of the Special Committee, continued discussions with the Investor, who advised Dr. Sorensen that his letter indicating a valuation of $45 per share had been prepared by a staff associate and not reviewed by the Investor and that the Investor would be willing to support a transaction at a reasonable price. At a December 11, 1997 regular meeting of the Board, the Special Committee reported that it had met by telephone with the Investor, that it had met with Goodyear which had agreed to indemnify the Company for its fees and expenses associated with the transaction of up to $200,000, and that current negotiations with Goodyear were focused on price and dissenters' rights. On December 17, 1997, representatives of Goodyear and its counsel met with plaintiffs' counsel in the Shareholder Litigation. Although the possibility of entering into settlement negotiations was discussed, no proposals were made by either side at the meeting. 12 20 The Special Committee next met by telephone on December 22, 1997 to discuss the status of the negotiations with Goodyear and the fact that counsel to Goodyear had met with counsel for the plaintiffs in the Shareholder Litigation and had advised plaintiff's counsel that an offer of $36 per share was on the table. The Special Committee also discussed the request of plaintiff's counsel for a meeting with the Special Committee. After discussion concerning the merits of the Shareholder Litigation and the potential dilatory effect of such litigation on the proposed transaction, the Special Committee concluded that it would be of no benefit to meet with plaintiff's counsel. The Special Committee also expressed concern that a delay in the transaction pending resolution of the Shareholder Litigation could jeopardize the transaction. During January 1998, Dr. Sorensen had a series of telephone conversations with George E. Strickler, Vice President -- Finance, North America Tire Division of Goodyear, to express the Special Committee's concern that the transaction was not progressing, the Special Committee's belief that a price of $37.25 was fair, and the Special Committee's strong belief that the transaction should not be delayed as a result of the Shareholder Litigation. During such conversations, Dr. Sorensen obtained assurances from Mr. Strickler that he was seeking approval of the transaction internally at Goodyear at a price of $37.25 per share. Dr. Sorensen also spoke on certain occasions with the Investor, who sought and obtained assurances from Dr. Sorensen that the transaction was still being pursued. In late January 1998, Goodyear determined not to pursue settlement negotiations with respect to the Shareholder Litigation, believing that the allegations were unfounded. By letter dated February 4, 1998, Goodyear made the Revised Offer, increasing its offer to $37.25 per share. The Special Committee met by telephone with IJL on February 11, 1998 to review the Revised Offer and was advised by IJL that in IJL's opinion, such offer was clearly fair to the shareholders of the Company from a financial point of view. IJL subsequently delivered a written opinion, dated February 13, 1998, to the Special Committee indicating (i) that the Revised Offer was fair from a financial point of view to the shareholders of the Company and (ii) that the Revised Offer represented a valuation in excess of the composite valuation derived by IJL in its analysis of the Common Stock. In conversations between representatives of the Special Committee and representatives of Goodyear on February 13, 1998, Goodyear again indicated that it would agree to provide shareholders of the Company with dissent and appraisal rights, provided Goodyear had the right to terminate the agreement if holders of more than five percent of the outstanding shares of Common Stock determined to assert such rights, and such proposal was acceptable to the Special Committee. Thereafter, the Special Committee unanimously resolved to recommend to the Board that it accept the Revised Offer, subject to successful negotiation of a definitive agreement that provided the public shareholders of the Company with dissent and appraisal rights and required Goodyear to pay the Company's fees and expenses of up to $250,000 (other than litigation costs) in connection with the transaction. The Board met on February 13, 1998, and upon the recommendation of the Special Committee, voted to accept the Revised Offer, subject to successful negotiation of a definitive agreement that provided the public shareholders of the Company with dissent and appraisal rights and required Goodyear to pay the Company's fees and expenses of up to $250,000 (other than litigation costs) in connection with the transaction. Eugene R. Culler, Jr., Chairman of the Board of the Company and Executive Vice President of Goodyear, Michael R. Thomann, then Vice Chairman of the Board and President and Chief Executive Officer of the Company, and Ronald J. Carr, Vice President -- Finance, Chief Financial Officer, Treasurer and Secretary of the Company, abstained from the vote taken by the Board with regard to the Revised Offer because of their relationships with Goodyear. Negotiations between the Special Committee and Goodyear regarding a definitive agreement continued during March and the first part of April 1998. Such negotiations focused on the ability of Goodyear to terminate the Exchange Agreement with and without "just cause," the circumstances under which Goodyear would be required to reimburse the Company for all or part of its fees and expenses in the event the Exchange Agreement was terminated by Goodyear and the Company's obligations following the Exchange to maintain indemnification and directors' and officers' liability protection. On April 8, 1998 and again on May 4, 1998, the Special Committee unanimously recommended that the Board approve the Exchange Agreement. At the May 4, 1998 meeting, the Special Committee conferred by telephone with representatives of IJL and was advised by such representatives that IJL continued to believe that the Revised Offer was fair to the public shareholders of the 13 21 Company from a financial point of view. Such oral opinion was subsequently updated in writing by IJL. On May 5, 1998, the Board approved the Exchange Agreement. As executed on May 5, 1998, the Exchange Agreement under its terms would have terminated if the Exchange was not completed by September 15, 1998. On September 15, 1998, Goodyear and the Company executed a letter agreement in which they agreed to extend the date by which the Exchange must be completed to November 18, 1998. FAIRNESS OF THE EXCHANGE The Special Committee. The Special Committee believes that a price of $37.25 per share to be paid to public shareholders of the Company in the Exchange is fair to such shareholders and is in the upper end of the range of prices that Goodyear would be willing to pay for such shares. In reaching its decision to recommend approval of the Exchange Agreement at a price of $37.25 per share, the Special Committee considered the following factors: - The financial analysis performed by IJL, including IJL's opinion that the Revised Offer was fair from a financial point of view to the public shareholders of the Company, IJL's preliminary opinion that the Initial Offer was fair from a financial point of view to the public shareholders of the Company, IJL's statement that the Revised Offer exceeded the composite range derived by IJL with respect to the Company's per share value, and IJL's belief that the Company's historical and prospective operating results could support a value of less than $31 per share. The Special Committee also considered its discussions with the Investor, who initially proposed a price of $45 per share but subsequently retracted such proposal and expressed concern that the proposed transaction would not occur. - The relationship between Goodyear and the Company, including loans and other administrative services provided by Goodyear to the Company at favorable rates and the positive effect of such transactions on the Company's historical and projected operating results, which were used by IJL in part to evaluate the Company's value. In addition, the Special Committee considered the Company's inability to conduct an auction or otherwise solicit a buyer for the Company without the cooperation of Goodyear, as well as the unlikelihood that a buyer other than Goodyear would make a serious offer for the Company's publicly traded shares. - The Shareholder Litigation, which the Special Committee believed raised allegations that were unfounded in view of the Special Committee's deliberations and negotiations with Goodyear. In evaluating the merits of such litigation, the Special Committee also considered the fact that such litigation commenced prior to any substantive consideration of the Initial Offer by the Special Committee, any discussions between the Special Committee and its financial advisor with regard to the Company's value, and any negotiations between the Special Committee and Goodyear. The Special Committee also believed that any delay pending resolution of the Shareholder Litigation could have the effect of jeopardizing the transaction, which the Special Committee believed was in the best interests of shareholders at a price of $36 or more per share. The Special Committee did not consider the Shareholder Litigation in evaluating the fairness of the Initial Offer, the Revised Offer or any other prices considered by the Special Committee during its deliberations or negotiations with Goodyear. - The market for the Common Stock, including the relative illiquidity of such market, the dramatic effect on market prices caused by transactions involving a small number of shares, and the unlikelihood that all publicly held shares could be sold in such market at prevailing market prices. The Special Committee also considered the premium of the Revised Offer over market prices prevailing at the time of the public announcement of the Initial Offer. - Goodyear's agreement to provide shareholders of the Company with dissenters' rights, which the Special Committee believed would allow shareholders who objected to the transaction to dissent and obtain payment of an amount determined by a court to represent fair value for the Common Stock. In view of the wide variety of the factors considered by the Special Committee, it did not assign relative weights to these factors in coming to its conclusions. Other than the Special Committee and its advisors, the 14 22 Company did not obtain an unaffiliated representative to act solely on behalf of the public shareholders of the Company for the purpose of negotiating the Exchange Agreement with Goodyear. The members of the Special Committee (as well as other Directors) are indemnified by the Company under the Company's bylaws and the applicable provisions of the NCBCA, and are exculpated from certain liabilities under the Articles, with respect to their actions in connection with the Exchange. The members of the Special Committee (as well as other Directors) are also covered by directors' and officers' liability insurance maintained by Goodyear. (The Exchange Agreement requires the Company to maintain such indemnification and directors' and officers' liability coverage for a period of six years following the Exchange. See "THE EXCHANGE -- Terms of the Exchange -- Indemnification.") According to Company policy in existence prior to appointment of the Special Committee, members of the Special Committee are entitled to receive, or defer receipt of, $1,000 per meeting attended not in conjunction with a Board meeting and $500 per telephonic meeting attended, subject to an annual maximum of $20,000, plus reimbursement of expenses. No other compensation was received by members of the Special Committee for their service. The Board. The Board has concluded that the Exchange and the consideration to be received in the Exchange are fair to the Company's public shareholders, and has adopted the Exchange Agreement and recommended that the shareholders of the Company vote FOR approval of the Exchange Agreement and the Exchange. The Board's recommendation is based on (a) the conclusions and recommendation of the Special Committee, (b) the opinion of IJL to the effect that the $37.25 per share of Common Stock to be received in the Exchange is fair, from a financial point of view, to the Company's public shareholders and (c) the factors referred to above as having been considered by the Special Committee, which the Board has adopted. In view of the number and variety of factors considered in connection with the Board's evaluation of the Exchange Agreement and the consideration to be received in the Exchange, the Board did not believe it practicable to assign relative weights to such factors, and, therefore, did not assign any such relative weights or otherwise attempt to quantify these factors. Goodyear. Goodyear management has concluded that the Exchange and the consideration to be received in the Exchange are fair to the public shareholders of the Company. Goodyear based its conclusions on the analysis of the Special Committee and the Board and the analysis of IJL, which Goodyear adopts as its own analysis of the fairness of the Exchange. Goodyear believes the conclusions are sound for the reasons stated in the IJL opinions and the underlying analysis, as described under the caption "Special Factors -- Opinion of Financial Advisor" (the "IJL Analysis"). Goodyear noted IJL's Comparable Company analysis, which indicated that the Revised Offer implied a ratio of enterprise value to EBITDA and a price earnings ratio for the Company significantly higher than those ratios for the Comparable Companies. Goodyear also noted IJL's analysis of the Company's financial condition and the impact on the Company and its shareholders (other than Goodyear) if the Exchange is not consummated, as well as IJL's consideration of the Company's stock price performance relative to that of the Comparable Companies and to the market as a whole. For the reasons stated in the IJL Analysis, Goodyear believes that a discounted cash flow analysis, a capitalization of earnings analysis and the median share price to book value of equity multiple are not reliable indicators of value. Goodyear's conclusions are based on the IJL Analysis in its entirety. References to particular elements of the IJL Analysis do not imply any different analysis on the part of Goodyear. Goodyear has not employed any other analyses to reach its conclusion regarding the fairness of the Exchange. Although Goodyear did run certain sets of assumptions in its discounted cash flow computer model in connection with selecting an initial offering price, Goodyear did not base its initial offering price on such analysis, but concluded that it would offer a price in excess of the then current market price for the Common Stock. For the reasons set forth in the IJL Analysis, Goodyear did not base its conclusion regarding the fairness of the Revised Offer on any discounted cash flow analysis. See "Special Factors -- Background of, and Reasons for, the Exchange" and "Opinion of Financial Advisor." Since the public announcement of Goodyear's Revised Offer and the Company's acceptance of such offer, the Common Stock has been reported at times to have traded at prices in excess of the $37.25 per share provided for in such offer. Trades in excess of the offer price have involved 7,200 shares of Common Stock (approximately 1.3% of the shares not owned by Goodyear) and prices have not exceeded $39.25 per share. The Company is not 15 23 aware of any recent developments in the Company's business or financial condition that would explain such trading and does not believe that these few transactions are material to an evaluation of the fairness of the Exchange. For all of the reasons stated under "SPECIAL FACTORS -- Fairness of the Exchange," the Company and Goodyear continue to believe that the consideration to be received by the public shareholders in the Exchange is fair to such shareholders notwithstanding such trading. INTERESTS OF CERTAIN PERSONS IN THE EXCHANGE In considering the recommendation of the Board with respect to the Exchange Agreement and the Exchange, shareholders should be aware that Directors and members of management of the Company at the time of the approval of the Exchange Agreement had, and currently have, certain interests and relationships which present them with potential conflicts of interest in connection with the Exchange. The members of the Special Committee and the Board were aware of such potential conflicts of interest and considered them along with the other matters described under "SPECIAL FACTORS -- Fairness of the Exchange." By virtue of its ownership of approximately 74.5% of the outstanding shares of Common Stock, Goodyear has the power to elect or remove any Director at any time. Mr. Culler, who is Chairman of the Board of the Company, has been employed by Goodyear for 35 years and currently serves as an Executive Vice President of Goodyear. Mr. Thomann, who until July 15, 1998 was Vice Chairman of the Board, President and Chief Executive Officer of the Company, held positions with Goodyear's retail stores, commercial tire centers and credit administration from 1973 to 1987 and from 1993 to 1996 and is currently employed by Goodyear as Marketing Director, Commercial Tires. Mr. Carr, who is Vice President -- Finance, Chief Financial Officer, Secretary and Treasurer and a Director of the Company, held various financial positions in Goodyear's general products and tire divisions and with Motor Wheel Corporation, then a Goodyear subsidiary, between 1970 and 1992. As a result of their current or past relationships with Goodyear, Messrs. Culler, Thomann and Carr abstained from the vote taken by the Board with respect to approval of the Exchange Agreement and the Exchange. In light of such potential conflicts of interest, the Board created the Special Committee to consider Goodyear's acquisition offer. The Special Committee is composed of Richard D. Pearson and Richard E. Sorensen, neither of whom has any material relationship with Goodyear other than being a Director of the Company. (Mr. Pearson is the owner and manager of a number of companies involved in the sale and leasing of trucks and other heavy equipment that sell products to Goodyear in the ordinary course of business. During the past five years, such sales in the aggregate have not exceeded $10,000 per year.) Messrs. Sorensen and Pearson have been Directors since 1977 and 1978, respectively. James W. Barnett, who is a Director, was employed by Goodyear from 1950 until his retirement in 1996. Mr. Barnett participated in the vote taken by the Board with respect to the Exchange Agreement to ensure that the vote would satisfy the quorum requirements of the NCBCA. See "SPECIAL FACTORS -- Background of, and Reasons for, the Exchange." The Directors and the executive officers of the Company at the time of the approval of the Exchange Agreement beneficially owned shares of Goodyear common stock as follows at October 13, 1998: Mr. Barnett, 2,687 shares; Mr. Brophey, 4,921 shares; Mr. Culler, 6,696 shares; Mr. Carr, 656 shares; Mr. Owens, 1,341 shares; Mr. Rumble, 1,551 shares; and Mr. Thomann, 1,352 shares. In addition, Mr. Culler has outstanding options granted by Goodyear pursuant to its employee stock option and performance incentive plans to purchase 51,000 shares of Goodyear common stock at a weighted average exercise price of $50.28 per share. Messrs. Pearson and Sorensen do not beneficially own, directly or indirectly, any shares of, or hold any options to purchase, Goodyear common stock. Executive officers of the Company participate in an incentive compensation program and, by virtue of such participation, they are routinely awarded options to purchase shares of Goodyear common stock. The executive officers of the Company at the time of the approval of the Exchange Agreement held options granted by Goodyear pursuant to its employee stock option and performance incentive plans to purchase Goodyear common stock as follows at October 13, 1998: Mr. Brophey, 22,475 shares at a weighted average exercise price of $43.17 per share; Mr. Carr, 18,450 shares at a weighted average exercise price of $37.73 per share; Mr. Owens, 12,550 shares at a weighted average exercise price of $43.80 per share; Mr. Rumble, 20,400 shares at a weighted average 16 24 exercise price of $33.90 per share; and Mr. Thomann, 13,750 shares at a weighted average exercise price of $50.77 per share. The closing price of Goodyear common stock on the New York Stock Exchange Composite Transactions tape on November 12, 1998 was $53.50 per share. See "EXECUTIVE COMPENSATION," "COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION -- Compensation of Executive Officers," and "COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION." Goodyear is the Company's principal supplier of tires and also provides financing and certain administrative services to the Company. See "COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION." OPINION OF FINANCIAL ADVISOR IJL has been engaged by the Special Committee to render an opinion with respect to the fairness from a financial point of view to the shareholders of the Company (other than Goodyear) of the consideration to be received by such shareholders pursuant to the Exchange. IJL is a recognized investment banking firm and, as part of its investment banking activities, is regularly engaged in the valuation of businesses and their securities in connection with mergers and acquisitions, negotiated underwritings, competitive biddings, secondary distributions of listed and unlisted securities, private placements and valuations for estate, corporate and other purposes. The Special Committee selected IJL to render its opinion on the basis of its proposed fees, its experience and expertise in merger transactions, and its reputation in the banking and investment communities. In the ordinary course of its business, IJL from time to time trades the equity securities of the Company and Goodyear for its own account and for the accounts of its customers, and, accordingly, may at any time hold a long or short position in such securities. On February 13, 1998, IJL delivered a written opinion (the "IJL February Opinion") to the Special Committee to the effect that, as of such date and based upon and subject to certain matters, the cash consideration to be received by the shareholders of the Company (other than Goodyear) pursuant to the Exchange is fair to such shareholders from a financial point of view. IJL has updated the IJL February Opinion as of the date of this Proxy Statement (the "IJL Update Opinion"). In connection with the preparation of the IJL Update Opinion, IJL updated certain of its analyses, as necessary, and reviewed the assumptions on which such analyses were based and the factors considered in connection therewith. THE FULL TEXT OF THE IJL UPDATE OPINION TO THE SPECIAL COMMITTEE, WHICH SETS FORTH THE ASSUMPTIONS MADE, MATTERS CONSIDERED AND LIMITATIONS ON THE SCOPE OF REVIEW UNDERTAKEN BY IJL, IS ATTACHED HERETO AS ANNEX II AND IS INCORPORATED HEREIN BY REFERENCE AND SHOULD BE READ CAREFULLY AND IN ITS ENTIRETY IN CONNECTION WITH THIS PROXY STATEMENT. IN ADDITION, THE IJL UPDATE OPINION SHALL BE MADE AVAILABLE FOR INSPECTION AND COPYING AT THE PRINCIPAL EXECUTIVE OFFICES OF THE COMPANY DURING REGULAR BUSINESS HOURS BY ANY HOLDER OF SHARES OF COMMON STOCK OR HIS OR HER REPRESENTATIVE WHO HAS BEEN SO DESIGNATED IN WRITING. THE FOLLOWING SUMMARY OF THE IJL UPDATE OPINION IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE FULL TEXT OF THE IJL UPDATE OPINION. THE IJL UPDATE OPINION, WHICH IS ADDRESSED TO THE SPECIAL COMMITTEE, IS DIRECTED ONLY TO THE FAIRNESS FROM A FINANCIAL POINT OF VIEW TO THE SHAREHOLDERS OF THE COMPANY (OTHER THAN GOODYEAR) OF THE CONSIDERATION TO BE RECEIVED PURSUANT TO THE EXCHANGE, DOES NOT ADDRESS ANY OTHER ASPECT OF THE PROPOSED EXCHANGE OR ANY RELATED TRANSACTION AND DOES NOT CONSTITUTE A RECOMMENDATION TO ANY SHAREHOLDER AS TO HOW SUCH SHAREHOLDER SHOULD VOTE AT THE MEETING. In connection with its opinion, IJL: (i) reviewed certain publicly available financial and other data with respect to the Company, including the consolidated financial statements of the Company for recent fiscal years and interim periods to September 30, 1997, and certain other relevant financial and operating data relating to the Company made available to IJL from published sources and from the internal records of the Company; (ii) reviewed the Exchange Agreement and certain related documents provided to IJL by the Company; (iii) compared the Company from a financial point of view with certain other public companies which IJL deemed to 17 25 be relevant; (iv) reviewed and discussed with representatives of management of the Company certain information regarding the business and financial issues of the Exchange; and (v) made inquiries regarding and discussed the Exchange, the Exchange Agreement and other matters related thereto with the Company's management. In connection with its review, IJL did not assume any obligation to verify any of the foregoing information and relied on all such information being complete and accurate in all material respects. IJL assumed, with the Special Committee's consent, that there were no material changes in the Company's assets, financial condition, results of operations, business or prospects since the date of the last financial statements reviewed by IJL and that off-balance sheet activities of the Company will not materially and adversely affect the future financial position or results of operations of the Company. IJL further assumed, with the Special Committee's consent, that in the course of obtaining the necessary regulatory and third party consents for the Exchange, no restriction will be imposed that will have a material adverse effect on the contemplated benefits of the Exchange or the transactions contemplated thereby. IJL further assumed, with the Special Committee's consent, that the Exchange will be consummated in accordance with the terms and provisions of the Exchange Agreement, without any amendments to, and without any waiver by the Company or Goodyear of, any of the material conditions to the consummation of the Exchange. IJL did not assume responsibility for reviewing any individual credit files or making an independent evaluation, appraisal or physical inspection of the assets or individual properties of the Company, nor was IJL furnished with any such evaluations or appraisals. Finally, IJL's opinion was based on economic, monetary and market and other conditions as in effect on, and the information made available to IJL as of, the date thereof. No limitations were imposed by the Board or the Special Committee on IJL with respect to the investigations made or procedures followed by IJL in rendering its opinion. Set forth below is a summary of the material analyses performed and relied upon by IJL in connection with the IJL February Opinion and the IJL Update Opinion. Comparable Company Analysis. Based on publicly available information and earnings estimates, IJL reviewed and compared actual and estimated selected financial, operating and stock market information and financial ratios of the Company and a group of five companies consisting of Bandag, Inc.; Cooper Tire & Rubber Co.; Goodyear; Standard Products Co.; and Treadco Inc. (the "Comparable Companies"). IJL noted that based on recent market data, the Comparable Companies had a median enterprise value (defined as the market value of equity plus short and long-term debt, including capitalized lease obligations, minus cash and marketable securities) to EBITDA (earnings before interest, taxes, depreciation and amortization) multiple of 10.2x, while the Company had an enterprise value to EBITDA multiple of 20.1x. Using the $37.25 per share to be received by the shareholders pursuant to the Exchange to calculate the market value of the Company's equity, the Company would have an enterprise value to EBITDA multiple of 21.6x, or more than 2.0 times the median enterprise value to EBITDA multiple of the Comparable Companies. Furthermore, based on the same market data the Comparable Companies had a median share price to latest twelve months earnings ("P/E") multiple of 14.0x, while the $37.25 per share to be received by shareholders in the Exchange represents a significantly greater multiple (in excess of 100x) of the Company's earnings for the same twelve month period. No other company used in the above analysis as a comparison is identical to the Company. Accordingly, an analysis of the results of the foregoing is not mathematical; rather, it involves complex considerations and judgments concerning differences in financial and operating characteristics of the companies and other factors that could affect the acquisition or public trading multiples of the companies to which the Company is being compared. IJL also reviewed certain financial and other information about a group of companies involved exclusively or predominantly in the retail distribution of tires. On the basis of that limited review, IJL concluded that the businesses of such companies were not sufficiently comparable to the business engaged in by the Company to justify using comparative data of these companies to estimate a value for the Common Stock. IJL therefore performed no analysis or interpretation of any additional data pertaining to these companies. IJL did not perform any analysis of comparable retail companies relevant to its opinion, and there are therefore no results of any such analysis that can be summarized. 18 26 Discounted Cash Flow Analysis. IJL performed a discounted cash flow analysis to determine a range of present values per share of the Common Stock based on the Company's estimated EBIT (earnings before interest and taxes) for fiscal years 1998 through 2002. IJL used the Company's estimated depreciation and amortization, capital expenditures and working capital needs in each year to arrive at free cash flow projections for fiscal years 1998 to 2002. For the terminal value, IJL assumed that the Company would be sold at the end of fiscal 2002 at an EBIT multiple range consistent with multiples for transactions in the tire and rubber industry. The free cash flow streams and terminal values were presently valued using a range of discount rates from 10% to 14%. Applying the above multiples and discount rates, IJL determined that the value of the Common Stock ranged from $4.3 to $17.5 million, or $1.96 to $7.98 per share. Capitalization of Earnings. IJL performed a capitalization of earnings analysis to determine a value per share of the Common Stock based on the Company's adjusted net income for fiscal years 1993 through estimated 1997. IJL used a weighting factor against the adjusted net income to determine a weighted income for fiscal years 1993 through estimated 1997. Capitalizing the weighted average earnings level, $1.5 million, at 12.6%, IJL determined the value of the Common Stock to be $11.8 million, or $5.40 per share. Other Analysis. In addition to the above, IJL prepared an overview of the historical financial performance of the Company and analyzed its financial condition and the impact on the Company and its shareholders (other than Goodyear) if the Exchange is not consummated. IJL also considered the Company's stock price performance relative to that of the Comparable Companies and to the market as a whole. IJL did not perform an analysis of comparable mergers and acquisitions because of the unique facts and circumstances of the Exchange. No data was available to IJL for comparable transactions involving the acquisition of a minority interest in a public company by the holder of the controlling interest therein. In evaluating the fairness of the consideration to be received by the Company's shareholders in the Exchange, IJL determined that a discounted cash flow analysis, a capitalization of earnings analysis and the median share price to book value of equity multiple were not reliable indicators of value. Given the Company's low EBITDA margin and the low estimated free cash flow, the equity valuation resulting from the discounted cash flow analysis was significantly lower than the Revised Offer and not within a reasonable range of value relative to the values indicated by other valuation methodologies employed. Because the Company has had declining or flat earnings in the last five years, the capitalization of earnings analysis resulted in a low average earnings level and an exceptionally low equity valuation that was also not within a reasonable range of value relative to other methodologies employed. And finally, because of the same low earnings in recent years, the Company's return on equity is minimal, indicating that it would not be appropriate to rely upon a valuation methodology using a multiple of book value of equity derived from the comparable companies identified by IJL. The foregoing is a summary of the material analyses performed by IJL in connection with the IJL February Opinion and the IJL Update Opinion dated the date of this Proxy Statement. The summary set forth above does not purport to be a complete description of the analyses performed by IJL. The preparation of a fairness opinion is not necessarily susceptible to partial analysis or summary description. IJL believes that its analyses and the summary set forth above must be considered as a whole and that selecting portions of its analyses and of the factors considered, without considering all analyses and factors, would create an incomplete view of the process underlying the analyses. In addition, IJL may have given various analyses more or less weight than other analyses, and may have deemed various assumptions more or less probable than other assumptions, so that the ranges of valuations resulting from any particular analysis described above should not be taken to be IJL's view of the actual values of the Company. In performing its analyses, IJL made numerous assumptions with respect to industry performance, regulatory, general business and economic conditions and other matters, many of which are beyond the control of the Company. The analyses performed by IJL are not necessarily indicative of actual values or actual future results, which may be significantly more or less favorable than those suggested by such analyses. Such analyses were prepared solely as part of IJL's analysis of the fairness from a financial point of view of the consideration to be received by the shareholders of the Company (other than Goodyear) in connection with the delivery of IJL's opinion. The analyses do not purport to be appraisals or to reflect the prices at which a company might actually be sold or the prices at which any securities may trade at the present time or at any time in the future. Any 19 27 projections and estimates are based on numerous variables and assumptions which are inherently unpredictable and must be considered not certain of occurrence as projected. Accordingly, actual results could vary significantly from those set forth in such projections. Pursuant to the terms of IJL's engagement, the Company has paid IJL a fee equal to $65,000. Goodyear has agreed to reimburse the Company for such fee under certain circumstances if the Exchange is not completed. See "THE EXCHANGE -- Terms of the Exchange -- Termination; Fees and Expenses." The Company also has agreed to reimburse IJL for its reasonable out-of-pocket expenses, including the fees and expenses of IJL's legal counsel. The Company has agreed to indemnify IJL, its affiliates, and their respective partners, directors, officers, agents, consultants, employees and controlling persons against certain liabilities, including liabilities under the federal securities laws. PURPOSE OF THE EXCHANGE; PLANS FOR THE COMPANY The purpose of the Exchange is to effect the acquisition by Goodyear of all outstanding shares of Common Stock not currently held by Goodyear. In the Exchange, each such share will be exchanged for the right to receive from Goodyear $37.25 in cash. The acquisition of such shares has been structured as a share exchange in order to provide a prompt and orderly transfer to Goodyear of ownership of the shares of Common Stock not currently owned by it. Goodyear considered various alternatives to the Exchange, including carrying out any restructuring without acquiring the shares of Common Stock not owned by Goodyear. Alternatives were rejected because the Exchange was the most efficient way of accomplishing the purposes set forth below. In determining to propose the Exchange, Goodyear focused on a number of factors. Generally, Goodyear believes that today's changing market conditions indicate the need for changes in the business and operations of the Company that can best be accomplished if it is a wholly-owned subsidiary. Goodyear believes that it may be necessary to reposition the retail operations of the Company due to the current and anticipated economic conditions and increasing competitive pressures in many of the markets where the Company's retail stores are located. If the Exchange is consummated, Goodyear intends to conduct a marketing analysis to evaluate the effectiveness of the Company's product format and the demographic and economic trends in each of the Company's retail markets. Based on these studies, the Company will invest in those locations where there is potential for growth and divest or close those locations where the expected returns would not meet desired levels. With a view to enhancing the growth potential of the Company's off-the-road retreading and commercial truck tire sales and service business, Goodyear will study the Company's operations and the relevant markets to determine whether and the extent to which combining the Company's operations with Goodyear's commercial truck tire sales and service operations would increase sales and reduce costs. Goodyear will also study each market to determine whether the Company's or Goodyear's commercial format and trade style should be employed. It is expected that the integration of the retreading and the tire sales and service operations of Goodyear and the Company would result in greater sales force effectiveness and lower costs. Goodyear will also evaluate the prospects of the Company's Piedmont Service Truck operation, which designs and fabricates service vehicles to transport and mount truck and heavy equipment tires. Piedmont supplies vehicles to the Company, Goodyear and independent tire dealers. After evaluation, Piedmont may become a candidate for divestiture, closure, or additional investment if its prospects indicate continued operation. It is expected that the Company's tread rubber mixing plant in Radford, Virginia, will provide additional mixing capacity for the Company and Goodyear, which is expanding its retreading business. In addition, Goodyear will review the Company's operations to identify opportunities for integrating the Company's operations with similar activities of Goodyear in those instances where the combination would result in enhanced operating efficiencies and cost reductions through the use of more cost effective common operating systems. If the Exchange is consummated, certain other costs and expenses currently being incurred by the Company, including costs associated with its status as a publicly held company listed on the AMEX, will be eliminated. Goodyear does not expect that the current directors of the Company will continue to serve. It is 20 28 anticipated that the Company's management will be selected in the same manner as would be the case at any other wholly-owned subsidiary of Goodyear. If the Exchange is completed, public trading of the Common Stock will cease, and Goodyear will cause the Common Stock to be delisted from the AMEX and terminate the registration of the Common Stock under the Exchange Act. As a result, the Company will no longer be required to file informational reports under the Exchange Act, such as proxy statements and annual reports, and the Company's affiliates will no longer be required to report transactions in the Company's securities as provided by, or be subject to the "short-swing" profit recapture provisions of, Section 16 of the Exchange Act. No significant change in the Company's business operations is presently contemplated if the Exchange should not be consummated. CERTAIN LITIGATION On November 13, 1997, a complaint was filed in the Superior Court of Mecklenburg County, North Carolina (File No. 97 CVS 14799) against the Company and each of the Directors by Herbert R. Behrens and Martin Bergstein, as Trustee FBO Herbert R. Behrens. The complaint challenged Goodyear's October 23, 1997 Initial Offer, pursuant to which Goodyear would acquire all of the outstanding shares of Common Stock not presently owned by Goodyear for $32.00 per share. The complaint alleged that the Directors breached their fiduciary duties to the plaintiffs and the Company's other shareholders in connection with the Initial Offer. The plaintiffs sought to enjoin the proposed transaction as well as compensatory damages in an unspecified amount in excess of $10,000. On April 27, 1998 the plaintiffs filed a notice of voluntary dismissal without prejudice of the claims asserted against the defendants, and the action has been dismissed. The Company and Goodyear have agreed that Goodyear may terminate the Exchange for Just Cause if the status of the Shareholder Litigation is such that pursuing the consummation of the Exchange would not, in Goodyear's sole judgment, be in Goodyear's best interests. The Board believes that its course of conduct in connection with the Initial Offer and the Revised Offer was and is in compliance with the Directors' fiduciary duties and that the allegations made in the complaint are without merit. The Company has instructed legal counsel to vigorously defend the complaint. ACCOUNTING TREATMENT The Exchange will be accounted for as a "purchase," as such term is used under generally accepted accounting principles, for accounting and financial reporting purposes. Accordingly, under this method of accounting the purchase price will be allocated to the assets acquired and liabilities assumed based on their estimated fair values. CERTAIN TAX CONSEQUENCES OF THE EXCHANGE The following is a summary of certain United States federal income tax consequences of receipt by shareholders of cash for shares of Common Stock in the Exchange. The discussion is for general information only and does not purport to consider all aspects of federal income taxation that might be relevant to shareholders. The receipt by shareholders of cash for shares of Common Stock in the Exchange, whether from Goodyear in accordance with the Exchange Agreement or upon the exercise of dissenters' rights, will be a taxable transaction for federal tax purposes and may also be a taxable transaction under applicable state, local, foreign or other tax laws. Generally, a shareholder will recognize gain or loss equal to the difference between the cash received and such shareholder's adjusted tax basis for the shares of Common Stock exchanged for cash. Gain or loss and the shareholder's holding period must be determined separately for each block of shares of Common Stock (i.e., shares of Common Stock acquired at the same cost in a single transaction) converted to cash. Under recently enacted changes to the Internal Revenue Code of 1986, as amended (the "Code"), capital gains and losses that are recognized by individuals, estates and trusts are classified into different groups according to the type of property and the taxpayer's holding period for the property. Gains and losses in each group are netted 21 29 against each other in a specified order, and favorable capital gain tax rates apply to certain types of property and property held for certain holding periods. For all taxpayers, there are significant limitations on the deductibility of capital losses. Payments to shareholders in connection with the Exchange may be subject to "backup withholding" at a rate of 31% unless a shareholder (a) is a corporation or comes within certain exempt categories and, when required, demonstrates this fact or (b) provides a correct taxpayer identification number to the payor, and otherwise complies with applicable requirements of the backup withholding rules. A beneficial owner who does not provide a correct taxpayer identification number may be subject to penalties imposed by the Internal Revenue Service. Any amount paid as backup withholding does not constitute an additional tax and will be creditable against the beneficial owner's federal income tax liability. Each shareholder should consult with his or her own tax advisor as to his or her qualification of exemption from backup withholding and the procedure for obtaining such exemption. Shareholders may prevent backup withholding by completing a Substitute Form W-9 and submitting it to the Exchange Agent. The summary of federal tax consequences set forth above is for general information purposes only. The tax treatment of each shareholder will depend in part upon such shareholder's particular situation. The discussion applies only to shareholders in whose hands shares of Common Stock are capital assets within the meaning of Section 1221 of the Code and may not apply to certain types of shareholders such as insurance companies and other financial institutions; broker-dealers; tax-exempt organizations; persons who are not citizens or residents of the United States; foreign corporations, partnerships, estates or trusts; shareholders who hold their stock as part of a hedge, straddle or conversion transaction; or others who may be subject to special rules. ALL SHAREHOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE PARTICULAR TAX CONSEQUENCES OF THE EXCHANGE TO THEM, INCLUDING THE APPLICABILITY AND EFFECT OF ANY STATE, LOCAL AND FOREIGN LAWS. ESTIMATED FEES AND EXPENSES Estimated fees and expenses incurred or to be incurred by the Company and Goodyear in connection with the Exchange are approximately as follows: Payment of Exchange consideration........................... $20,745,419 Advisory fees(1)............................................ 67,740 Legal fees and expenses(2).................................. 246,000 Commission filing fee....................................... 4,149 Printing and mailing expenses............................... 17,132 Exchange Agent fees and expenses............................ 2,000 Miscellaneous expenses...................................... 17,560 ----------- Total............................................. $21,100,000 ===========
- --------------- (1) Includes the fees and estimated expenses of IJL. (2) Includes the estimated fees and expenses of counsel for the Company, the Special Committee and Goodyear. THE EXCHANGE PARTIES TO THE EXCHANGE The Company. The Company is a 74.5%-owned subsidiary of Goodyear. The business of the Company is the sale of new and retreaded tires, home products and automotive services. It is functionally divided into two industry segments: (a) commercial tire retreading and tire replacement operations, and (b) retail automotive services, new tires and home products operations. The address of the Company's principal executive offices is 4404-G Stuart Andrew Boulevard, Charlotte, North Carolina 28217. Goodyear. Goodyear, an Ohio corporation, manufactures and markets tires for most applications, rubber and other products for the transportation industry and various other industrial and consumer markets and rubber 22 30 related chemicals for various applications. The address of Goodyear's principal executive offices is 1144 East Market Street, Akron, Ohio 44316. EFFECTIVE TIME OF THE EXCHANGE The Exchange will become effective when the Articles of Share Exchange are duly filed with the Office of the Secretary of State of North Carolina in accordance with the NCBCA or at such other time as may be specified in the Articles of Share Exchange. The Articles of Share Exchange will be filed upon the satisfaction or waiver of all conditions set forth in the Exchange Agreement. See "THE EXCHANGE -- Terms of the Exchange -- Conditions to the Exchange." For dissenters' rights to be available to shareholders in connection with the Exchange, the shareholders must approve the Articles of Amendment as described under "PROPOSAL TO AMEND THE ARTICLES" and the Articles of Amendment must become effective through filing with the Office of the Secretary of State of North Carolina. This filing must precede the vote taken by shareholders with respect to the Exchange Agreement. If the Articles of Amendment are approved at the Meeting on December 22, it is currently expected that the Meeting will be adjourned to permit them to be filed, then reconvened on December 23 to allow the votes on the Exchange Agreement and the election of Directors to take place. If the Exchange Agreement is then approved, it is currently expected that the filing of the Articles of Share Exchange and the Effective Time will occur by December 24, 1998, subject to the possible prior termination of the Exchange Agreement in accordance with the terms thereof. See "-- Terms of the Exchange -- Termination; Fees and Expenses." PAYMENT FOR SHARES OF COMMON STOCK As a result of the Exchange, holders (other than Goodyear) of certificates formerly evidencing shares of Common Stock (the "Certificates") will cease to have any equity interest in the Company, and such holders will be required to surrender their Certificates to the Exchange Agent in order to receive the cash price of $37.25 per share of Common Stock to which they are entitled under the Exchange Agreement. The Exchange Agent will forward to such holders detailed instructions with regard to the surrender of Certificates, together with a transmittal letter. Holders of shares of Common Stock should not submit their Certificates to the Exchange Agent until they have received such materials. The Exchange Agent will forward the cash price of $37.25 per share, in the form of a bank check, to the former holders of Common Stock following receipt by the Exchange Agent of their Certificates and other required documents. No interest will be paid or accrued on the cash payable upon the surrender of certificates. With respect to any Certificate that has been lost or destroyed, Goodyear will pay the holder the consideration attributable to such Certificate upon receipt of evidence of ownership of the shares of Common Stock formerly represented by such Certificate and an indemnity bond posted by such holder in such amount as Goodyear may reasonably require. SHAREHOLDERS SHOULD NOT SEND IN ANY CERTIFICATES AT THIS TIME. TERMS OF THE EXCHANGE The following is a summary of material provisions of the Exchange Agreement. A copy of the Exchange Agreement is included in this Proxy Statement as Annex I. This summary is qualified in its entirety by reference to the Exchange Agreement. General. The Exchange Agreement sets forth the terms and conditions upon and subject to which the Exchange is to be effected. If the Exchange Agreement is authorized and adopted by the shareholders in accordance with the NCBCA, and the other conditions contained in the Exchange Agreement are satisfied or waived, at the Effective Time, each outstanding share of Common Stock (other than shares of Common Stock owned by Goodyear or held by dissenting shareholders) will be exchanged for the right to receive from Goodyear $37.25 in cash, without interest. Conditions of the Exchange. Under the Exchange Agreement, the obligations of the Company and Goodyear to effect the Exchange are subject to the fulfillment at or prior to the closing of the transactions pursuant to the Exchange Agreement (the "Closing") of certain conditions, one or more of which may be waived by Goodyear, including the following: (a) at the Meeting, the Exchange Agreement must have been approved by 23 31 the affirmative vote of holders of a majority of the issued and outstanding shares of Common Stock entitled to vote thereon; (b) all filings, registrations, notices, consents, approvals, authorizations, certificates, orders and permits with respect to the Exchange required from any court, government or governmental body, agency or instrumentality having or asserting jurisdiction over the Company or Goodyear must have been made or obtained and be in full force and effect on a basis satisfactory to Goodyear; and (c) the representations and warranties made by the Company in the Exchange Agreement must be true and correct in all material respects, and the Company must have performed in all material respects its covenants and obligations under the Exchange Agreement. Representations and Warranties. The Exchange Agreement contains various representations and warranties of Goodyear and the Company, including representations and warranties of each party as to (a) their due organization, valid existence and good standing, (b) their corporate power and authority to execute the Exchange Agreement and to consummate the transactions contemplated by the Exchange Agreement, (c) the due and valid authorization of the Exchange Agreement and the transactions contemplated by the Exchange Agreement by their respective boards of directors, (d) the absence of the entitlement of any third party to receive broker's or finder's fee in connection with the Exchange Agreement or the transactions contemplated by the Exchange Agreement and (e) subject to certain exceptions, the absence of litigation. In addition, in the Exchange Agreement, the Company has represented and warranted to Goodyear as to, among other things: (a) its capital structure; (b) its filings under the Exchange Act; (c) compliance with applicable laws; (d) the inapplicability of the North Carolina Shareholder Protection Act to the Company; (e) certain matters concerning the fairness opinion of IJL; (f) Board action and recommendation concerning the Exchange Agreement and the Exchange; (g) subject to certain exceptions, the absence of certain changes since December 31, 1997; (h) certain tax, employee benefit and environmental matters; (i) certain matters concerning this Proxy Statement; and (j) certain matters concerning real property and leases. Goodyear has also represented and warranted to the Company in the Exchange Agreement that Goodyear has sufficient funds to consummate the Exchange. Conduct of Business of the Company. The Company has agreed in the Exchange Agreement that the Company shall continue to conduct its business without material change and that the Company shall not (a) issue any security or instrument convertible into any equity security, (b) make any distribution or other disposition of its assets, capital or surplus except in the ordinary course of business, (c) take any action that would impair its assets or (d) take any action that would cause its representations and warranties to be untrue at the Effective Time. Indemnification. The Company has agreed in the Exchange Agreement to indemnify all officers, directors, employees and agents of the Company for a period of six years after the Effective Time against all claims or losses arising from their service in such capacities at or before the Effective Time, and to provide for the advancement of expenses incurred in defense of any action or suit, to the fullest extent required by the Articles or the Company's bylaws as in effect on May 5, 1998 (the date of the Exchange Agreement). The Company has also agreed to maintain during this period directors' and officers' liability protection with respect to matters occurring at or before the Effective Time to the same degree as the protection provided to the Company's officers and directors on May 5, 1998. Termination; Fees and Expenses. The Exchange Agreement and the Exchange may be terminated and abandoned at any time prior to the Effective Time, irrespective of the prior approval of the Exchange Agreement and the Exchange by the shareholders of the Company: (a) by the mutual written consent of the Board (acting upon recommendation of the Special Committee) and the Goodyear Board; (b) by action of the Goodyear Board or of certain executive officers of Goodyear for Just Cause, i.e. in the event that (i) any action, suit, investigation, or other proceeding or claim (other than the Shareholder Litigation) is threatened or instituted before any court or by any government or governmental agency or instrumentality in connection with the Exchange Agreement, (ii) the status of the Shareholder Litigation shall be such that, in the sole judgment of Goodyear, pursuing the consummation of the Plan would not be in the best interests of Goodyear, (iii) the holders of more than 5% of the outstanding Common Stock have asserted their dissenters' rights and have not lost, surrendered or withdrawn such rights, (iv) the Company fails to comply with or to perform any covenant or obligation of the Company contained in or implied by the terms of the Exchange Agreement, (v) any condition precedent to the 24 32 implementation of the Exchange is not satisfied (other than a condition which Goodyear could have caused to be satisfied without incurring any cost or expense or taking an action or suffering a consequence deemed by Goodyear to be adverse to Goodyear's interests), or (vi) any representation or warranty of the Company proves to have been untrue or incorrect in any material respect when made or at any time ceases to be true and correct in all material respects; or (c) by action of the Goodyear Board or of certain executive officers of Goodyear without Just Cause. If Goodyear unilaterally abandons and terminates the Exchange Agreement without Just Cause, it must reimburse the Company for any fees reasonably incurred and paid to investment bankers and legal counsel in connection with the Exchange Agreement plus any costs reasonably incurred in connection with the preparation and distribution of this Proxy Statement. Unless the Exchange Agreement is terminated prior to the shareholder vote thereon, the failure by Goodyear to vote its shares in favor of the Exchange will be deemed to be a termination by Goodyear without Just Cause. If Goodyear terminates the Exchange Agreement because of (a) an actual or threatened action, suit, investigation or other proceeding, (b) the status of the Shareholder Litigation or (c) the assertion of dissenters rights, as described below, by the holders of more than 5% of the outstanding Common Stock, Goodyear will reimburse the Company for up to $250,000 in such expenses. Amendments. Under the Exchange Agreement, subject to applicable law, the Exchange Agreement may be amended only by the written agreement of the Company and Goodyear. SOURCE AND AMOUNT OF FUNDS The total amount of funds required by Goodyear to consummate the Exchange and to pay related fees and expenses is estimated to be approximately $21,100,000. The funds required to effect the Exchange will be obtained by Goodyear from operations. DISSENTERS' RIGHTS Under the Articles, as proposed to be amended, and North Carolina law, holders of Common Stock who do not vote in favor of the Exchange Agreement and who comply with certain notice requirements and other procedures will have the right to dissent and to be paid cash for the "fair value" of their shares. The "fair value" of the Common Stock as finally determined under such procedures may be more or less than the $37.25 in cash for which the shares held by non-dissenting shareholders will be exchanged in the Exchange. Failure to follow such procedures precisely may result in loss of dissenters' rights. Goodyear may refuse to complete the Exchange if the holders of more than 5% of the outstanding shares of Common Stock exercise their right to dissent from the Exchange. See "-- Terms of the Exchange -- Termination; Fees and Expenses." The following discussion is not a complete statement of the law pertaining to dissenters' rights under the NCBCA and is qualified in its entirety by the full text of Chapter 55, Article 13 of the NCBCA ("Article 13"), which is reprinted in its entirety as Annex IV to this Proxy Statement. A record shareholder may assert dissenters' rights as to fewer than all the shares of Common Stock registered in his name only if he dissents with respect to all shares beneficially owned by any one person and notifies the Company in writing of the name and address of each person on whose behalf he asserts dissenters' rights. The rights of a partial dissenter will be determined as if the shares as to which he dissents and his other shares were registered in the names of different shareholders. A beneficial owner may assert dissenters' rights as to shares of Common Stock held on his behalf only if he: (a) submits to the Company the record shareholder's written consent to the dissent not later than the time the beneficial shareholder asserts dissenters' rights and (b) asserts dissenters' rights with respect to all shares of which he is the beneficial owner. A holder of shares of Common Stock wishing to exercise dissenters' rights must: (a) give to the Company, and the Company must actually receive before the vote on the Exchange Agreement is taken, written notice of the holder's intent to demand payment for his shares if the Exchange is consummated and (b) must not vote his shares in favor of the Exchange. If the Exchange Agreement is approved by holders of the requisite number of outstanding shares of Common Stock, the Company will, no later than ten days after such approval, mail a written dissenters' notice to all of the respective shareholders who gave the aforementioned notice of intent to 25 33 demand payment. Such dissenters' notice will: (a) state where the payment demand must be sent and where and when certificates for certificated shares must be deposited; (b) inform holders of any uncertificated shares to what extent transfer of the shares will be restricted after the payment demand is received; (c) supply a form for demanding payment; (d) set a date by which the Company must receive the payment demand, which date may not be fewer than 30 nor more than 60 days after the date on which the dissenters' notice is sent; and (e) be accompanied by a copy of Article 13. To exercise his dissenters' rights, a shareholder sent a dissenters' notice must demand payment and deposit his share certificates in accordance with the terms of the notice. A shareholder failing to do so will not be entitled to payment for his shares under Article 13. A shareholder who demands payment and deposits his share certificates in accordance with the terms of the notice will retain all other rights of a shareholder until consummation of the Exchange. All notices, demands and other communications directed to the Company in connection with the appraisal process should be sent to 4404-G Stuart Andrew Boulevard, Charlotte, North Carolina 28217, Attention: Secretary. As soon as the Exchange is consummated, or within 30 days after receipt of a payment demand (the "First Demand") by a shareholder made in compliance with the above-described procedures, the Company will pay such shareholder the amount the Company estimates to be the value of his shares, plus interest accrued to the date of payment (the "First Dissent Payment"). Such payment will be accompanied by: (a) the Company's balance sheet as of the fiscal year ended December 31, 1997, an income statement and a statement of cash flows for that year and the latest available interim financial statements; (b) an explanation of how the Company estimated the fair value of the shares; (c) an explanation of how the interest was calculated; (d) a statement of the dissenter's right to demand payment of an amount in excess of the First Dissent Payment if he is dissatisfied with the First Dissent Payment, if the Company fails to make payment to a dissenter within 30 days of such dissenter's First Demand, or if the Company, having failed to consummate the Exchange, fails to return deposited share certificates or release the transfer restrictions imposed on uncertificated shares within 60 days after the date set for demanding payment; and (e) a copy of Article 13. If: (a) a dissenter believes that the amount of the First Dissent Payment is less than the fair value of his shares, or that the interest due is incorrectly calculated; (b) the Company fails to make payment to a dissenter within 30 days after such dissenter's First Demand; or (c) the Company, having failed to consummate the Exchange, fails to return deposited stock certificates to a dissenter or release the transfer restrictions imposed on uncertificated shares within 60 days after the date set for demanding payment, the dissenter may notify the Company in writing of his own estimate of the fair value of his shares and amount of interest due, and demand payment (the "Second Demand") of the amount such estimate exceeds the First Dissent Payment. A dissenter will waive his right to make a Second Demand, and will be deemed to have withdrawn his dissent and demand for payment, unless he notifies the Company of his Second Demand in writing within 30 days after the Company (x) makes the First Dissent Payment for his shares or (y) fails to take the actions described in clauses (b) and (c) of this paragraph, as the case may be. If a Second Demand for payment remains unsettled, a shareholder may commence a proceeding within 60 days after the earlier to occur of: (i) the date the First Dissent Payment was made by the Company, or (ii) the date of the dissenter's Second Demand, by filing a complaint with the Superior Court Division of the General Court of Justice to determine the fair value of the shares and accrued interest. If the dissenter does not commence a proceeding within the 60 day period, the dissenter will have been deemed to have withdrawn his dissent and Second Demand. The court may, in its discretion, make all dissenters whose demands remain unsettled parties to the proceeding. Each dissenter made a party to the proceeding by the court will be entitled to judgment for the amount, if any, by which the court finds that the fair value of his shares, plus interest, exceeds the First Dissent Payment. The court may appoint one or more appraisers to receive evidence and recommend decision on the question of fair value. Parties to the proceeding are entitled to the same discovery rights as parties in other civil proceedings. Since the Company is a "public corporation," no party to any proceeding described herein will have the right to trial by jury. The court may assess the costs of a proceeding described above, including the compensation and expenses of appointed appraisers, as it finds equitable. With respect to the fees and expenses of counsel and experts for the 26 34 parties to the proceeding, the court may assess such costs (a) against the Company, and in favor of any or all dissenters, if it finds that the Company did not substantially comply with the above-described procedures or (b) against either the Company or a dissenter or in favor of either or any other party, if it finds that the party against whom such costs are assessed acted arbitrarily, vexatiously, or not in good faith with respect to the dissenters' rights provided under Article 13. In addition, if the court finds that the services of counsel to any dissenter were of substantial benefit to other dissenters and that the costs of such services should not be assessed against the Company, the court may award to such counsel reasonable fees to be paid out of the amounts to the dissenters who were benefitted. PROPOSAL TO AMEND THE ARTICLES Pursuant to the NCBCA, shareholders of the Company would not have the right of dissent and appraisal with respect to the Exchange absent a provision to such effect in the Articles. As described elsewhere in this Proxy Statement, the Company and Goodyear have agreed that shareholders will be entitled to dissenters' rights in connection with the Exchange, although Goodyear may terminate the Exchange Agreement at any time prior to the Exchange or refuse to complete the Exchange if the holders of more than 5% of the outstanding Common Stock exercise such rights. See "SPECIAL FACTORS -- Background" and "THE EXCHANGE -- Terms of the Exchange -- Conditions to the Exchange." For dissenters' rights to be available to shareholders as described above, the Articles must be amended to so provide. To accomplish this, the Articles of Amendment, the form of which is included as Annex III to this Proxy Statement, must be approved by the shareholders and filed with the Office of the Secretary of State of North Carolina. This filing must precede the vote taken by shareholders with respect to the Exchange Agreement. If the Articles of Amendment are approved at the Meeting on December 22, the Meeting will be adjourned to permit their filing, then reconvened on December 23, to allow the votes on the Exchange Agreement and the election of Directors to take place. See "THE EXCHANGE -- Dissenters' Rights" for a summary of the rights of dissent and appraisal to which the shareholders of the Company will be entitled in connection with the Exchange if the Articles of Amendment are approved. The Board recommends a vote FOR the proposal to amend the Articles to provide for dissent and appraisal rights in connection with certain transactions, including the Exchange. 27 35 SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN BENEFICIAL OWNERS The following table sets forth certain information regarding the beneficial ownership of Common Stock as of November 12, 1998 by (i) each Director and nominee for Director of the Company, (ii) each executive officer of the Company named under the caption "Executive Compensation -- Summary Compensation Table," below, (iii) each person who is known by the Company to beneficially own more than five percent of the outstanding Common Stock and (iv) all Directors and executive officers as a group. Except as set forth in the footnotes to the table below, each of the shareholders identified in the table below has sole voting and investment power over the shares beneficially owned by such person.
NUMBER OF PERCENT NAME AND ADDRESS OF BENEFICIAL OWNER SHARES OF CLASS - ------------------------------------ --------- -------- The Goodyear Tire & Rubber Company.......................... 1,633,695(1) 74.58% 1144 East Market Street Akron, Ohio 44316 Dimensional Fund Advisors, Inc.............................. 127,300(2) 5.81% 1299 Ocean Avenue 11th Floor Santa Monica, California 90401 Gabelli & Company, Inc...................................... 334,400(3) 15.27% GAMCO Investors, Inc. Gabelli Funds, Inc. Gabelli Performance Partnership GLI, Inc. One Corporate Center Rye, New York 10580 Eugene R. Culler, Jr........................................ 0 -- Michael R. Thomann.......................................... 0 -- William P. Brophey.......................................... 0 -- Ronald J. Carr.............................................. 0 -- Richard D. Pearson.......................................... 0 -- Richard E. Sorensen......................................... 0 -- James W. Barnett............................................ 0 -- James E. Owens.............................................. 0 -- Ronald P. Rumble............................................ 0 -- All Executive Officers and Directors as a Group (8 persons).................................................. 0 --
- --------------- (1) Based upon information provided by Goodyear. (2) Based upon information provided by Dimensional Fund Advisors, Inc., ("Dimensional"), and as reflected in a Schedule 13G dated February 7, 1996 and filed with the Commission. Dimensional, a registered investment advisor, is deemed to have beneficial ownership of 127,300 shares of Common Stock as of December 31, 1996, all of which shares are held in portfolios of DFA Investment Dimensions Group Inc., a registered open-end investment company, or in series of the DFA Investment Trust Company, a Delaware business trust, or the DFA Group Trust and DFA Participation Group Trust, investment vehicles for qualified employee benefit plans, all of which Dimensional Fund Advisors Inc. serves as investment manager. Dimensional disclaims beneficial ownership of all such shares. (3) As reflected in Schedule 13D, dated July 1, 1997 (Amendment #14), filed with the Commission, and other information supplied by the beneficial owner. 28 36 CORPORATE GOVERNANCE GENERAL The Board held six meetings during 1997. All Directors attended at least 75% of the total number of meetings of the Board of Directors and committees on which they serve. The Board has five standing committees: Executive Committee, Audit Committee, Nominating Committee, Compensation Committee and Litigation Committee. The Executive Committee consists of Messrs. Culler (Chairman), Barnett and Pearson. The Executive Committee is empowered to act between meetings of the Board with powers of the full Board, except with respect to certain matters. The Executive Committee did not meet during 1997. The Audit Committee consists of Dr. Sorensen (Chairman) and Messrs. Barnett and Pearson. The Audit Committee reviews the scope of the Company's annual audit, the functions performed by the Company's independent accountants, the functions of and procedures followed by the Company's internal accounting and auditing staff and other matters relating to accounting policies and controls. The Audit Committee held three meetings during 1997. The Nominating Committee consists of Messrs. Culler (Chairman), Carr and Sorensen. Mr. Thomann also served on this committee during 1997. This committee's function is to study the composition of the Board and the qualifications of its members and to nominate for election to the Board persons whose background and expertise will, in their judgment, complement the needs of the Company. This committee will consider nominees recommended by shareholders. Such recommendations should be submitted to the Secretary of the Company by December 31 in order to be considered by the committee for the Annual Meeting to follow the fiscal year-end. This committee met once during 1997. The Compensation Committee consists of Messrs. Culler (Chairman), Pearson and Barnett. Its principal functions are to review the Company's compensation and benefit programs for executive officers and to recommend annual compensation levels for the executive officers for approval by the Board. This committee met once during 1997. The Litigation Committee consists of Messrs. Barnett (Chairman), Carr and Sorensen. Mr. Thomann also served on this committee during 1997. This committee is responsible for monitoring any matters of significant litigation that involve the Company. The committee did not meet during 1997. 29 37 NOMINEES FOR DIRECTOR The bylaws of the Company provide that the number of Directors shall be not less than five nor more than fifteen, as determined by the Board. The Board has set the number of Directors at six. The six persons named below are nominated to serve on the Board until the 1999 meeting of shareholders or until their successors are elected and qualified. Each nominee is currently a Director. The business address for each nominee is 4404-G Stuart Andrew Boulevard, Charlotte, North Carolina 28217. Unless authority is withheld, it is intended that proxies received in response to this solicitation will be voted in favor of the six nominees:
NAME, AGE, PRINCIPAL OCCUPATION AND OTHER POSITIONS AND OFFICES WITH THE COMPANY DIRECTOR SINCE - ------------------------------------------------ -------------- Eugene R. Culler, Jr., 59(1)(3)(4).......................... 1995 Chairman of the Board of the Company; Executive Vice President of Goodyear William P. Brophey, 60...................................... 1998 Vice Chairman of the Board, President and Chief Executive Officer of the Company Ronald J. Carr, 53(3)(5).................................... 1992 Vice President -- Finance, Chief Financial Officer, Secretary and Treasurer of the Company Richard E. Sorensen, 55(2)(3)(5)............................ 1977 Dean of the College of Business, Virginia Polytechnic Institute and State University, Blacksburg, Virginia Richard D. Pearson, 63(1)(2)(4)............................. 1978 Owner and manager of companies involved in selling and leasing heavy duty trucks and other heavy equipment, Franklin Lakes, New Jersey James W. Barnett, 67(1)(2)(4)(5)............................ 1996 Executive in Residence, Interim Director, Institute for Global Business, University of Akron, Akron, Ohio: Formerly Vice President, Original Equipment Tire Sales Worldwide for Goodyear, Akron, Ohio
- --------------- (1) Member of Executive Committee. (2) Member of Audit Committee. (3) Member of Nominating Committee. (4) Member of Compensation Committee. (5) Member of Litigation Committee. Mr. Eugene R. Culler, Jr. has been employed by Goodyear for 35 years. He has been Executive Vice President responsible for North American Tires since April, 1995. Prior to that he was President and CEO of Goodyear's Canadian subsidiary. He previously served as Chairman of the Board of Directors of the Company from August, 1988 to October, 1991. He was again elected a director and Chairman of the Board of the Company on July 27, 1995, and has held those positions since then. Mr. William P. Brophey has more than 35 years of service with the Company and Goodyear. He has held numerous field and corporate positions at Goodyear in the areas of wholesale, retail, credit and sales and marketing, including General Marketing Manager, Commercial Tire Products. He served as President and Chief Executive Officer and a member of the Board of Directors of the Company from October 1988 to April 1996, and Vice Chairman of the Board of Directors from April 1994 to April 1996, when he was named Vice President, Original Equipment Tire Sales World Wide at Goodyear. Effective July 15, 1998 he was again elected President and Chief Executive Officer of the Company and Vice Chairman of the Board of Directors. Mr. Ronald J. Carr was elected Vice President--Finance and Chief Financial Officer, Secretary and Treasurer effective May 1, 1992. He has 30 years of service with the Company and Goodyear and has held various financial positions in Goodyear's General Products and Tire Divisions and at Motor Wheel Corporation, a former Goodyear subsidiary. Most recently he was Manager, Financial Information, for Goodyear's North American Tire Division. 30 38 Mr. Richard D. Pearson is the owner and manager of a number of companies that are involved in the sale and leasing of heavy duty trucks and other heavy equipment, a business in which he has been engaged for more than 25 years. Dr. Richard E. Sorensen has been Dean of the College of Business, Virginia Polytechnic Institute and State University, since 1982. Prior to that, he was employed in a teaching capacity and as Dean of the College of Business at Appalachian State University. Mr. James W. Barnett was employed by Goodyear from 1950 until his retirement in 1996. Most recently he was Vice President for Goodyear's Original Equipment Tire Sales Worldwide, a position he held since July, 1988. He has held a wide range of positions in Goodyear's sales organization including Executive Vice President of Sales and Marketing for Kelly-Springfield Tire Company in Cumberland, Maryland. He was Chairman of the Board of the Company from March 26, 1986 to August 3, 1988. Mr. Barnett is currently employed by the University of Akron as Executive in Residence, Interim Director, Institute for Global Business. It is not contemplated that any of the nominees will be unable or unwilling for good cause to serve; but, if that should occur, it is the intention of the agents named in the proxy to vote for such other person or persons to the office of director as the Nominating Committee of the Board may recommend. COMPENSATION OF DIRECTORS Director's fees for outside directors are paid at the rate of $2,500 per Board meeting attended, $1,000 per telephonic Board meeting, $1,000 per committee meeting attended not in conjunction with a Board meeting and $500 per telephonic committee meeting, all subject to an annual maximum amount of $20,000 plus reimbursement of expenses incurred as a Director. Directors may at their option defer the payment of director's compensation. Directors who are also officers or employees of the Company or employees of Goodyear receive no such fees. EXECUTIVE OFFICERS OF THE COMPANY The following table sets forth information regarding the current executive officers of the Company:
NAME AND AGE POSITIONS AND OFFICES WITH THE COMPANY - ------------ -------------------------------------- Eugene R. Culler (59)................. Chairman of the Board William P. Brophey (60)............... President and Chief Executive Officer and a Director Ronald J. Carr (53)................... Vice President -- Finance and Chief Financial Officer, Secretary and Treasurer and a Director James E. Owens (63)................... Vice President and General Manager -- Retail Division Ronald P. Rumble (53)................. Vice President and General Manager -- Commercial Division
There are no family relationships between any of the executive officers or Directors. For information concerning Messrs. Culler, Brophey and Carr, see "-- Nominees for Director." Mr. Owens has been employed by the Company and Goodyear for 45 years. Most recently, he was District Manager for Goodyear in Birmingham, Alabama, for three years and District Manager in Atlanta, Georgia, for five years. He was elected Vice President and General Manager-Retail Division on February 8, 1988. Mr. Rumble joined the Company on March 1, 1993. He has been employed by the Company and Goodyear for more than 25 years, most recently as Marketing Manager, Commercial Truck Tires for the Replacement Tire Division. Prior to that, he held various positions in Goodyear's Replacement Tire, Original Equipment and General Products Divisions. Effective March 1, 1993, he was elected Vice President and General Manager -- Commercial Division. 31 39 None of the Directors or executive officers of the Company own any shares of Common Stock, and none have engaged in any transactions in shares of Common Stock during the 60 days preceding the date of this Proxy Statement. The business address for each executive officer of the Company is 4404-G Stuart Andrew Boulevard, Charlotte, North Carolina 28217. Officers serve for a term of one year or until their successors are elected and qualify. The next meeting of the Board of Directors at which officers will be elected is scheduled for August 25, 1998. EXECUTIVE COMPENSATION SUMMARY COMPENSATION TABLE The following table sets forth information concerning the annual and long-term compensation earned by the Chief Executive Officer and the most highly compensated executive officers other than the Chief Executive Officer whose total salary and bonus during 1997 exceeded $100,000 (the "Named Executives") for services rendered to the Company and its subsidiaries in all capacities for the fiscal years ended December 31, 1997, December 31, 1996 and December 31, 1995.
LONG TERM COMPENSATION ------------------------------------------------ AWARDS PAYOUTS ----------------------- ---------------------- SECURITIES LONG OTHER UNDER- TERM ALL ANNUAL RESTRICTED LYING INCEN- OTHER COMPEN- STOCK OPTIONS/ TIVE PLAN COMPEN- SALARY BONUS SATION AWARDS SAR'S PAYOUTS SATION NAME AND PRINCIPAL POSITION YEAR ($) ($)(1) ($)(2) ($) (#)(3) ($) ($)(4) - --------------------------- ---- ------- ------ ------- ---------- ---------- ---------- --------- Michael R. Thomann(5)......... 1997 169,931 39,989 0 0 4,000 0 4,000 Vice Chairman, President, 1996 113,948 20,563 0 0 7,000 0 2,035 and Chief Executive Officer 1995 -- -- -- -- -- -- -- Ronald J. Carr................ 1997 151,131 22,385 0 0 2,500 0 4,000 Vice President -- Finance, 1996 141,586 16,192 0 0 4,200 0 3,750 Secretary, Treasurer and 1995 138,079 17,737 0 0 1,900 0 3,673 Chief Financial Officer James E. Owens................ 1997 122,408 22,385 0 0 2,200 0 3,335 Vice President and 1996 120,547 16,218 0 0 4,100 0 3,303 GM -- Retail Division 1995 108,910 14,038 0 0 1,600 0 2,938 Ronald P. Rumble.............. 1997 150,462 22,385 0 0 2,200 0 4,000 Vice President and 1996 143,039 16,218 0 0 4,100 0 3,750 GM -- Commercial Division 1995 136,572 14,038 0 0 1,600 0 3,750
- --------------- (1) The Company's Board of Directors has approved the Brad Ragan, Inc. 1997 Performance Recognition Plan (the "Performance Plan") in which the Named Executives participated in 1997. The Performance Plan provides incentive cash bonuses based on the attainment of specific objectives established at the beginning of the year for the Company. The Company was reimbursed by Goodyear for bonus compensation paid for 1996 and 1995. The bonuses earned in 1997 were paid to the Named Executives in March 1998. (2) In accordance with the rules of the Commission, other compensation in the form of perquisites and other personal benefits is not required to be reported if the amount constituted less than the lesser of $50,000 or 10% of the total annual salary and bonus for the Named Executives. (3) Options were granted by Goodyear on December 2, 1997 to purchase shares of common stock of Goodyear. (4) Amounts paid on behalf of the Named Executives for matching 401(k) Savings Plan Contributions. (5) Mr. Thomann was elected to his position effective April 16, 1996, and the salary and bonus amounts shown reflect compensation earned since that date. Effective July 15, 1998, Mr. Thomann resigned from his positions with the Company in connection with his employment by Goodyear as Marketing Director, Commercial Tires. 32 40 STOCK OPTIONS, SAR GRANTS IN 1997 The Company does not provide its executive officers any type of financial compensation based on the appreciated market value of the Common Stock. On December 2, 1997, the Named Executives were granted options by Goodyear to purchase shares of common stock of Goodyear at an exercise price equal to the market price on the grant date. The Company does not incur any cost related to the grant or the exercise of Goodyear stock options. No SARs have been granted to any Named Executive. All options in the following tables relate to shares of common stock of Goodyear.
POTENTIAL REALIZABLE VALUE AT ASSUMED % OF TOTAL ANNUAL RATES OF STOCK PRICE SECURITIES OPTIONS/SARS APPRECIATION OPTIONS/SARS GRANTED TO EXERCISE OR FOR OPTION TERM(3) GRANTED(#) EMPLOYEES IN BASE PRICE EXPIRATION --------------------------- NAME (1) 1997(2) ($/SH) DATE 5% 10% - ---- ------------ ------------ ----------- ---------- ----------- ----------- Michael R. Thomann......... 4,000 32.4% $63.50 12/02/07 $159,720 $404,800 Ronald J. Carr............. 2,500 20.3 63.50 12/02/07 99,825 253,000 James E. Owens............. 2,200 17.8 63.50 12/02/07 87,846 222,640 Ronald P. Rumble........... 2,200 17.8 63.50 12/02/07 87,846 222,640
- --------------- (1) Grants were made on December 2, 1997. The option exercise price is 100% of the fair market value of Goodyear common stock on the date of grant. The options vest 25% on each anniversary date of the grant. (2) Percent of total options granted by Goodyear to all employees of the Company. In the aggregate, these options were less than 1% of the total options granted by Goodyear in 1997. (3) Amounts represent hypothetical gains that could be achieved if options were exercised at end of the option term. The dollar amounts under this column assume 5% and 10% compounded annual appreciation in the common stock of Goodyear from the date the respective options were granted. These calculations and assumed realizable values are required to be disclosed under Commission rules and, therefore, are not intended to forecast future appreciation of common stock of Goodyear or amounts that may be ultimately realized upon exercise. OPTION EXERCISES IN 1997 AND YEAR-END VALUES The following table sets forth certain information regarding the exercise of Goodyear stock options during 1997 and the value of unexercised options held as of December 31, 1997. The Company does not incur any cost related to the grant or exercise of Goodyear stock options.
VALUE OF UNEXERCISED NUMBER OF SECURITIES IN-THE-MONEY UNEXERCISED OPTIONS/SARS OPTIONS/SARS SHARES REALIZED AT DEC. 31, 1997(#)(2) AT DEC. 31, 1997($)(2)(3) ACQUIRED ON VALUE --------------------------- --------------------------- NAME EXERCISE(#) ($)(1) EXERCISABLE UNEXERCISABLE EXERCISABLE UNEXERCISABLE - ---- ----------- -------- ----------- ------------- ----------- ------------- Michael R. Thomann............ 1,000 $19,500 3,500 10,250 $ 62,250 $114,406 Ronald J. Carr................ 1,000 19,625 12,850 6,600 429,694 79,663 James E. Owens................ 0 0 6,475 6,075 174,972 73,822 Ronald P. Rumble.............. 0 0 14,325 6,075 532,653 73,822
- --------------- (1) Represents the difference between the exercise price and the price of the Goodyear common stock on the date of exercise. (2) Shares include options granted to the named officer while employed by Goodyear but not associated with the Company. (3) Represents the difference between the exercise price of the outstanding options and the closing price of Goodyear common stock on the New York Stock Exchange ("NYSE") on December 31, 1997, which was $63.625 per share. Options that have an exercise price greater than the year-end NYSE closing price are excluded from the value calculation. 33 41 OTHER COMPENSATORY ARRANGEMENTS Retirement Benefits Prior to November 1, 1994, the Named Executives, except Mr. Thomann, were on loan from Goodyear and participated in the Retirement Plan for Salaried Employees of The Goodyear Tire & Rubber Company (the "Salaried Plan"). The Company was billed by Goodyear for the cost incurred to maintain each Named Executive's participation in the Salaried Plan. Mr. Thomann participated in the Salaried Plan prior to April 16, 1996 as a former employee of Goodyear. The Salaried Plan is a qualified, defined benefit plan, which provides a basic non-contributory pension benefit and a voluntary contributory pension benefit based on various factors including years of service, compensation and plan maximums. The annual non-contributory benefit equals $318 for each year of service prior to 1994. The annual non-contributory benefit for 1994 and each year thereafter equals 1.1% of annual Social Security Covered Compensation for such year. The Salaried Plan permits an eligible employee to make monthly optional contributions at an annual rate of 2% of his or her earnings in excess of Social Security Covered Compensation. For service prior to 1994, the annual contributory benefit equals the years of service during which contributions were made multiplied by 1.4% of average annual earnings in excess of $22,716 during the five-year period ended December 31, 1993. The annual contributory benefit for 1994 and each year thereafter equals 1.58% of annual earnings (up to $150,000 for years 1994 through 1996 and up to $160,000 for 1997 and 1998) in excess of annual Social Security Covered Compensation. The Salaried Plan provides pension benefits to participants who have at least 30 years of service or have at least 10 years of service and have attained the age of 55. Benefits payable to a participant who retires between ages 55 and 62 are subject to a reduction of 4.8% for each full year of retirement before age 62. The years of credited service at December 31, 1996, under the Salaried Plan for each Named Executive are: Mr. Thomann, 25 years; Mr. Carr, 30 years; Mr. Owens, 45 years; and Mr. Rumble, 29 years. On November 1, 1994, the Named Executives (except on April 16, 1996 for Mr. Thomann) became participants in The Goodyear Tire & Rubber Company Retirement Benefit Plan for Employees with Service with Designated Subsidiaries (the "Subsidiary Plan"), a non-qualified, defined benefit plan. Benefits payable to a participant or beneficiary under the Subsidiary Plan shall be in such amount as is required, when added to the benefits payable to the participant or beneficiary under the Salaried Plan, to produce an aggregate benefit equal to the benefit that would have been payable to the participant or beneficiary if the employment of the participant with the Company were treated as employment with an employer under the Salaried Plan, and if the limitations on compensation pursuant to Section 401(a)(17) of the Code were not in effect. As of December 31, 1997, the estimated annual benefits payable on a five-year certain and life annuity basis (and not under any of the various survivor options or the lump sum option) upon retirement at age 65 were as follows: Mr. Thomann, $81,008; Mr. Carr, $81,563; Mr. Owens, $62,969; and Mr. Rumble, $84,699. These estimates were based on 1997 earnings and estimated annual Social Security Covered Compensation projected to each individual's 65th birthday. Long Term Incentive Awards The Company does not provide the Named Executives any other form of compensation based upon any long-term incentive plan or any other type of employment arrangement. Employment Agreements Neither the Company nor Goodyear provides the Named Executives with any type of employment agreement or contract. 34 42 COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION COMPENSATION COMMITTEE POLICIES AND PRACTICES The Compensation Committee (the "Committee") annually reviews the compensation program for the Company's executive officers, all of whom are Named Executives in the compensation disclosures included in this Proxy Statement, and recommends to the Board changes to the compensation program in general and specific adjustments to individual compensation levels as it determines appropriate. In its annual review, the Committee seeks to determine whether (1) the Company is competitive and can attract and retain qualified and experienced personnel in leadership positions and (2) the executive officers are appropriately motivated by the compensation program to seek to attain performance goals approved by the Committee, as well as sustained earnings growth for the benefit of all shareholders of the Company. The Committee meets early each year to review the compensation package and make recommendations regarding compensation for the Chief Executive Officer and the other Named Executives for approval by the Board of Directors. The Chief Executive Officer provides the Committee information regarding annual salary and annual incentive based bonus compensation targets. The Committee also receives information regarding compensation paid by Goodyear, including information regarding options to purchase shares of Goodyear common stock for each executive officer. The Revenue Reconciliation Act of 1993 added Section 162(m) to the Code, which eliminated tax deductions for compensation paid to an executive officer in excess of $1,000,000 unless certain requirements are met. No executive officer receives compensation in excess of the allowed deductions. The Committee will consider the applicability of this section of the Code in the formalization of all executive compensation plans. COMPENSATION OF EXECUTIVE OFFICERS Salaries for the executive officers are established using Goodyear's compensation guidelines within a salary range that is fixed annually based on market data derived from compensation surveys of hundreds of companies. Salaries are established within these ranges based on the CEO's performance evaluation of each officer and are not linked to specific performance criteria. The Named Executives participated in the Brad Ragan, Inc. 1997 Performance Recognition Plan (the "Performance Plan") and as a result had the opportunity to earn bonus compensation in 1997. For the Named Executives (other than the Chief Executive Officer), the target payout (assuming 100% payout) under the Performance Plan was established at an average amount of approximately 16.3% of the midpoint of the salary range of such persons. Bonuses paid pursuant to the Performance Plan were based 40% on the attainment of specific sales objectives, 40% on the attainment of specific earnings before interest and taxes ("EBIT") objectives and 20% on the attainment of specific cash flow objectives by the Company. Payouts under the Performance Plan could have ranged from 0% to 150% of the participants' target amount depending on the extent to which the Company achieved the applicable sales, EBIT and cash flow objectives. Based on the Company's results, bonuses were paid at 108.7% of target levels for 1997. The target payouts for each officer and the specific goals which would determine the payouts, if any, were reviewed and approved by the Committee. The Committee received a report regarding stock options granted by Goodyear for the purchase of Goodyear common stock to the Named Executives and other key employees of the Company pursuant to the 1997 Performance Incentive Plan of The Goodyear Tire & Rubber Company (the "Option Plan"). The size of individual option grants was determined primarily on the basis of the responsibilities and relative position of each executive officer within guideline ranges established by Goodyear based on surveys of the option granting practices of other companies. The Committee does not participate in the granting of such stock options and the Company does not incur any cost in connection with the options granted to the Named Executives. 35 43 COMPENSATION OF THE CHIEF EXECUTIVE OFFICER The salary for Michael R. Thomann, President and CEO during 1997, was established using Goodyear's compensation guidelines within a salary range that is fixed annually based on market data derived from compensation surveys of hundreds of companies. In April of 1997 Mr. Thomann was granted a 7.0% salary increase within those guidelines in recognition of his effective leadership of the Company. Mr. Thomann's participation in the Performance Plan was established at a level intended to result in a payout (assuming 100% payout under the Performance Plan) equal to 25.2% of the midpoint of his salary range. His bonus was based 40% on the attainment of specific sales objectives, 40% on the attainment of specific EBIT objectives and 20% on the attainment of specific cash flow objectives by the Company. Payouts to Mr. Thomann under the Performance Plan could have ranged from 0% to 150% of his target level, depending on the extent to which the Company achieved the applicable sales, EBIT and cash flow objectives. Based on the Company's results, Mr. Thomann's payout was 108.7% of his target level, resulting in his performance based compensation being equal to 23.5% of his salary. On March 4, 1997, Mr. Thomann was granted 500 performance equity units under the 1989 Goodyear Performance and Equity Incentive Plan. The payout under this performance equity unit grant may range from zero to 150% of the target amount depending on the cumulative net income per share of Goodyear common stock during the three-year performance period ending December 31, 1999. If total cumulative net income per share during the three-year performance period is $15.25 or more, 150% of the targeted amount may be paid. If total cumulative net income per share during the three-year performance period is less than $13.25, no amount will be paid. Units earned at the end of the three-year performance period will be paid 50% in shares of Goodyear stock and 50% in cash unless Mr. Thomann elects to defer receipt of the payment. The Committee did not participate in the granting of the performance equity units and the Company does not incur any cost relative to such units. On December 2, 1997, pursuant to the Option Plan, Mr. Thomann was granted an option to purchase 4,000 shares of Goodyear common stock at a per share exercise price equal to the market price of Goodyear common stock on the date of grant. The size of the grant was determined on the basis of guidelines established by Goodyear based on surveys of the option granting practices of other companies. The Committee does not participate in the granting of such stock options, and the Company does not incur any cost relating to such options. Stock options, however, are considered to be a part of Mr. Thomann's total compensation package. February 13, 1998 The Compensation Committee: Eugene R. Culler, Jr. (Chairman) Richard D. Pearson James W. Barnett
COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION Goodyear is the Company's majority shareholder and its principal supplier of new tires. Eugene R. Culler, Jr., Chairman of the Board of the Company, is an Executive Vice President of Goodyear and has been employed by Goodyear for more than 35 years. Michael R. Thomann, Vice Chairman of the Board, President and CEO during 1997, was formerly General Manager, Farm, Terra, and Off-the-Road Tires for Goodyear and has been employed by the Company and Goodyear for 25 years. Ronald J. Carr, Vice President -- Finance, Secretary and Treasurer has been employed by the Company and Goodyear for 30 years; James E. Owens, Vice President and General Manager -- Retail Division, has been employed by the Company and Goodyear for 45 years; and Ronald P. Rumble, Vice President and General Manager -- Commercial Division, has been employed by the Company and Goodyear for more than 25 years. Eugene R. Culler, Jr., Chairman of the Board of the Company and Chairman of the Company's Compensation Committee, is an Executive Vice President of Goodyear. Mr. Culler is not an employee of the Company and does not receive any compensation or director's fees from the Company, nor is he a member of the Goodyear Board or its compensation committee. William P. Brophey, President and Chief Executive Officer of the Company and Vice Chairman of the Board since July 1998, is an employee of Goodyear on loan to the 36 44 Company. His day-to-day responsibilities are governed by the Company's needs and the Company reimburses Goodyear for his regular compensation and benefits expenses. The Company is a member of Goodyear's network of authorized dealers. As such, the Company purchases from Goodyear a substantial portion of its tire inventory for resale and products and services necessary for the operation of individual outlets (promotional material, signage, etc.) based on various Goodyear dealer pricing and marketing policies in effect from time to time. In addition, the Company purchases materials used in various manufacturing processes from or through Goodyear. For these products, services and materials, the Company paid to Goodyear $55,494,000 in the first nine months of 1998, $62,207,000 in 1997 and $59,078,000 in 1996. The Company may from time to time enter into various leases or other rental agreements with Goodyear for the use of equipment and facilities. The Company paid to Goodyear $857,000, $1,283,000 and $1,346,000 for rent on equipment and facilities used by the Company in the first nine months of 1998, in 1997 and in 1996, respectively. The Company has determined that Goodyear is a cost effective source for various administrative services and support functions and other incidental items used by or beneficial to the Company. Payments made by the Company to Goodyear (and certain reimbursements to the Company by Goodyear) in this regard include:
NINE MONTHS ENDED YEAR ENDED DECEMBER 31, SEPTEMBER 30, ----------------------- 1998 1997 1996 ------------- ---------- ---------- Field auditing services................................... $ 113,751 $ 159,439 $ 200,568 Payroll processing services............................... 88,264 115,233 76,950 Data processing services, including point of sale system.................................................. 688,971 1,017,114 1,123,999 Communications services................................... 28,449 43,690 43,470 Automobile insurance...................................... 639,683 674,028 513,998 Executive moving expense.................................. -- 11,958 13,862 Legal services............................................ -- 6,238 162,332 Workers' compensation claim cost and administration....... 1,064,368 1,300,950 1,550,251 General insurance......................................... 347,026 378,726 205,826 Pension contributions and life insurance premiums withheld for employees of the Company transferred from Goodyear under certain conditions................................ 93,385 126,082 126,000 Mailroom services......................................... 27,261 64,370 88,529 Miscellaneous items paid to Goodyear...................... 10,304 488 7,019 Reimbursement for certain compensation expenses by Goodyear................................................ (41,665) (152,090) (152,343) Reimbursement for certain expenses related to the Exchange Agreement............................................... (242,912) -- -- Miscellaneous items credited or reimbursed by Goodyear.... (43,660) (17,353) (25,000) ---------- ---------- ---------- Total net of credits or reimbursement........... $2,773,225 $3,728,873 $3,935,461 ========== ========== ==========
The Company maintains an open unsecured line of credit with Goodyear to fund working capital requirements. The borrowing rate on the line of credit is based on the 30-day LIBOR plus 1.5% effective the first day of each calendar month as reported on the Reuter Money Service Monitor System. During the first nine months of 1998, year-ended December 31, 1997 and year-ended December 31, 1996, the average balances outstanding under the credit line arrangement were $39,659,000, $37,295,000 and $35,624,000, respectively, at average interest rates (computed by dividing interest expense on the credit line by the weighted average borrowings outstanding) of 7.16%, 7.14% and 6.94%, respectively. The maximum amount outstanding at any month-end during these periods was $45,214,000 at January 31, 1998, $42,379,000 at April 30, 1997 and $43,179,000 at October 31, 1996. The interest rate was 7.16% at September 30, 1998, 7.47% at December 31, 1997 and 6.88% at December 31, 1996. The outstanding balance under the credit line arrangement at September 30, 1998, December 31, 1997 and December 31, 1996 was $35,251,000, $29,550,000 and $34,766,000, respectively. The Company incurred interest expense of $2,236,000, $2,760,000 and $2,504,000 in 37 45 the first nine months of 1998, year-ended December 31, 1997 and year-ended December 31, 1996, respectively, essentially all of which was related to the open line of credit. The Company sold to Goodyear approximately $6,461,000 of products and service during the first nine months of 1998, approximately $7,454,000 of products and services during 1997 and approximately $7,713,000 of products and services during 1996. These sales and services consisted primarily of retreading component materials, vehicle upfitting services and retreading services. The Company began providing various credit related administrative services to Goodyear's Company-owned outlets in the second quarter of 1996, and these services were expanded in 1997. The Company is compensated for its services on the basis of its out-of-pocket costs plus a service fee. Revenues generated from providing these services in the first nine months of 1998, the year 1997 and the year 1996 were approximately $243,000, $295,000 and $184,000, respectively. The Company believes that the prices paid and received by the Company to and from Goodyear for goods and services as described above were fair and reasonable and on terms no less favorable to the Company than could have been obtained in transactions with unaffiliated parties. PERFORMANCE GRAPH The following graph compares the cumulative shareholder returns of the Company's Common Stock, The American Stock Exchange Market Value Index and the Dow Jones Auto Parts Index at each December 31 for the five-year period beginning December 31, 1992, and ended December 31, 1997. The graph shows the total shareholder return that would have been achieved had $100 been invested in each of these investment alternatives on December 31, 1992, with all dividends reinvested. COMPARISON OF FIVE CUMULATIVE TOTAL RETURN BRAD RAGAN, INC., AMEX MARKET VALUE INDEX AND DJ AUTO PARTS INDEX (PERFORMANCE GRAPH)
MEASUREMENT PERIOD BRAD RAGAN, AMEX DJ AUTO (FISCAL YEAR COVERED) INC. MARKET VALUE PARTS 1992 100 100 100 1993 124 120 124 1994 139 109 106 1995 152 137 131 1996 135 146 148 1997 159 171 190
38 46 COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT Section 16(a) of the Securities Exchange Act of 1934, as amended, requires directors and certain officers of the Company and persons who own more than 10% of the outstanding shares of Common Stock to file with the Commission initial reports of ownership and reports of changes in ownership of Common Stock. Such persons are required by Commission regulations to furnish the Company with copies of all Section 16(a) forms they file. Based solely on representations by such persons as to reportable transactions and holdings, the Company believes that during 1997 no such reports required to be filed were not filed. INDEPENDENT PUBLIC ACCOUNTANTS PricewaterhouseCoopers LLP ("Pricewaterhouse"), has served the Company as independent accountants since 1986. A representative from Pricewaterhouse is expected to be present at the Meeting with the opportunity to make a statement if he desires to do so and to respond any questions related to the firm's work for the Company. Pricewaterhouse also serves as independent accountants for Goodyear. The Audit Committee and the Board must approve any nonaudit services performed for the Company by Pricewaterhouse. PROPOSALS BY SHAREHOLDERS Under certain conditions, shareholders may request the Company to include a proposal for action at a forthcoming meeting of the shareholders of the Company in the proxy material of the Company for such meeting. All proposals of shareholders intended to be presented at the 1999 annual meeting of the Company must be received by the Company no later than November 30, 1998 for inclusion in the proxy statement and proxy card relating to such meeting. Shareholders wishing to bring a proposal before the 1999 annual meeting (but not include it in the Company's proxy material) must provide written notice of such proposal to the Company by October 16, 1999. OTHER MATTERS The management of the Company knows of no other business which will be presented for consideration at the Meeting. However, if other matters are properly presented at the Meeting, it is the intention of the persons named on the accompanying proxy card to vote such proxies in accordance with their best judgment. INFORMATION CONCERNING DIRECTORS AND EXECUTIVE OFFICERS OF GOODYEAR Set forth below is the name of each director and executive officer of Goodyear and, unless disclosed elsewhere in this Proxy Statement, the present principal occupation or employment of each such person and a brief description of his or her principal occupation and business experience during at least the last five years. Each person listed below is a citizen of the United States, except that Messrs. Gibara and Valensi are citizens of The Republic of France. The business address for each individual listed below is 1144 East Market Street, Akron, Ohio 44316-0001. DIRECTORS OF GOODYEAR The Goodyear Board is classified into three classes of directors, and currently consists of 11 members. At each annual meeting of shareholders directors of one of the classes, on a rotating basis, are elected to three year terms, to serve as the successors to the directors of the same class whose terms expire at that annual meeting of shareholders. 39 47 The directors of Goodyear are:
NAME, AGE, PRINCIPAL OCCUPATION AND OTHER POSITIONS AND OFFICES WITH GOODYEAR DIRECTOR SINCE - --------------------------------------------- -------------- John G. Breen, 63........................................... 1992 Chairman of the Board and Chief Executive Officer of The Sherwin-Williams Company, a manufacturer of paints, coatings and related products William E. Butler, 66....................................... 1995 Retired. Formerly Chairman of the Board and Chief Executive Officer of Eaton Corporation, a global manufacturer of highly engineered products for the automotive, industrial, construction, commercial and aerospace markets Thomas H. Cruikshank, 66.................................... 1986 Retired. Formerly Chairman of the Board and Chief Executive Officer of Halliburton Company, a suppler of oil field equipment and services and engineering and construction services Katherine G. Farley, 48..................................... 1998 Senior Managing Director of Tishman Speyer Properties, an international real estate developer, owner, and property management firm Samir G. Gibara, 58......................................... 1995 Chairman of the Board, Chief Executive Officer and President of Goodyear William J. Hudson, Jr., 63.................................. 1995 Vice Chairman and a Director of AMP Incorporated, a manufacturer of electrical and electronic connectors and terminals and related products and systems Steven A. Minter, 59........................................ 1985 Executive Director and President of The Cleveland Foundation, a community trust devoted to health, education, social services and civic and cultural affairs Agnar Pytte, 65............................................. 1988 President of Case Western Reserve University George H. Schofield, 68..................................... 1991 Retired. Formerly Chairman of the Board and Chief Executive Officer of Zurn Industries, Inc., which designs, manufactures and markets water control and HVAC products William C. Turner, 68....................................... 1978 Chairman of the Board and Chief Executive Officer of Argyle Atlantic Corporation, a consulting firm to multinational corporations and investment groups on international economic and political affairs, strategy, investments, joint ventures and strategic alliances Martin D. Walker, 65........................................ 1997 Retired. Formerly Chairman of the Board and Chief Executive Officer of M. A. Hanna Company, an international processor and distributor of polymers to the plastics and rubber industries
Mr. Breen has served as the Chairman of the Board and Chief Executive Officer of The Sherwin-Williams Company since April 1980. He is a director of Mead Corporation, National City Corporation and Parker-Hannifin Corporation. Mr. Butler served as the President and Chief Operating Officer of Eaton Corporation from February of 1989 to September 4, 1991, when he was elected President and Chief Executive Officer. Mr. Butler was elected Chairman of the Board and Chief Executive Officer of Eaton Corporation in January of 1992, serving in that capacity until he retired on December 31, 1995. Mr. Butler is a director of Applied Industrial Technologies, Inc., Ferro Corporation, Pitney Bowes Inc., Borg Warner Corporation and Zurn Industries, Inc. 40 48 Mr. Cruikshank joined Halliburton Company in 1969. He was elected its President in November 1981, its Chief Executive Officer in May of 1983 and its Chairman of the Board and Chief Executive Officer in June of 1989. Mr. Cruikshank retired as Chief Executive Officer of Halliburton Company on October 1, 1995 and as its Chairman of the Board on January 2, 1996. Mr. Cruikshank is a director of The Williams Companies, Inc., Seagull Energy Corporation and Lehman Brothers Holdings Inc. Ms. Farley joined Tishman Speyer Properties in 1984. She was Managing Director -- International from 1984 to 1993, when she became Managing Director. In January of 1998 she became Senior Managing Director. Ms. Farley is a director of Women in Need. Mr. Gibara joined Goodyear in 1966, serving in various managerial posts prior to being elected Vice President for Strategic Planning and Business Development and as the acting Vice President of Finance and Chief Financial Officer of Goodyear on October 6, 1992. Mr. Gibara was elected Executive Vice President for North American Tire Operations on May 3, 1994. Mr. Gibara was elected President and Chief Operating Officer, and as a director, effective April 15, 1995. Mr. Gibara was elected President and Chief Executive Officer effective January 1, 1996 and Chairman of the Board, Chief Executive Officer and President effective July 1, 1996. Mr. Hudson served in various managerial posts with AMP Incorporated prior to being elected its President and Chief Executive Officer effective January 1, 1993. On August 20, 1998, Mr. Hudson was elected Vice Chairman of AMP Incorporated. Mr. Hudson is a director of Carpenter Technology, a director of the National Association of Manufacturers, a member of the Executive Committee of the Board of Governors of the National Electrical Manufacturing Association, a member of the Board of Trustees and the Executive Committee of the United States Council for International Business and a member of the Policy Committee of the Business Round Table. Mr. Minter has been the Executive Director and President of The Cleveland Foundation, Cleveland, Ohio, since January 1, 1984. Mr. Minter served as Associate Director and Program Officer of The Cleveland Foundation from 1975 to 1980 and from 1981 to 1983. Mr. Minter served as Undersecretary of the United States Department of Education from May, 1980, until January, 1981. Mr. Minter is a director of Consolidated Natural Gas Company, KeyCorp and Rubbermaid Incorporated, a trustee of The College of Wooster and a director of The Foundation Center. Dr. Pytte was a research physicist at Princeton University and Professor of Physics, Dean of Science and Dean of Graduate Studies at Dartmouth College prior to becoming the Provost of Dartmouth College in 1982, a position he held until July 1, 1987, when he was elected President of Case Western Reserve University. Dr. Pytte is a director of A. O. Smith Corporation and the Sherman Fairchild Foundation Inc. Mr. Schofield served as the Chairman of the Board and Chief Executive Officer of Zurn Industries, Inc. from 1986 until October 17, 1994, when he retired as Chief Executive Officer. He retired as Chairman of the Board of Zurn Industries, Inc. on March 31, 1995. Mr. Schofield is a director of National Fuel Gas Company. Mr. Turner has served as Chairman of the Board and Chief Executive Officer of Argyle Atlantic Corporation since 1977. He is a director of Rural/Metro Corporation and Microtest, Inc. Mr. Turner is also Chairman of the International Advisory Council of Avon Products, Inc., a member of the Board of Governors of the Lauder Institute of Management and International Studies of the University of Pennsylvania, a trustee and former Chairman of the Board of American Graduate School of International Management, a trustee and Executive Committee member of the United States Council for International Business and a member of the Council of American Ambassadors and of the Council on Foreign Relations. Mr. Walker served as Chairman of the Board and Chief Executive Officer of M. A. Hanna Company from September 1, 1986 through December 31, 1996, when he retired as Chief Executive Officer. He retired as Chairman of the Board of M. A. Hanna Company on June 30, 1997. Mr. Walker is a principal in MORWAL Investments. He is a director of Comerica, Inc., Lexmark International, M. A. Hanna Company, Meritor Automotive Corporation, Reynolds & Reynolds, The Timken Company and Textron, Inc. 41 49 EXECUTIVE OFFICERS OF GOODYEAR The following table sets forth information regarding the current executive officers of the Goodyear:
NAME AND AGE POSITIONS AND OFFICES WITH GOODYEAR - ------------ ----------------------------------- Samir G. Gibara (58)...................... Chairman of The Board, Chief Executive Officer and President and Director William J. Sharp (56)..................... President, Global Support Operations Robert W. Tieken (58)..................... Executive Vice President and Chief Financial Officer Eugene R. Culler, Jr. (59)................ Executive Vice President James Boyazis (61)........................ Vice President and Secretary Jesse T. Williams, Sr. (58)............... Vice President John P. Perduyn (58)...................... Vice President Richard P. Adante (51).................... Vice President H. Clay Orme (58)......................... Vice President Gary A. Miller (51)....................... Vice President Mike L. Burns (56)........................ Vice President George E. Strickler (50).................. Vice President James C. Whiteley (50).................... Vice President Richard W. Hauman (51).................... Vice President and Treasurer Richard J. Steichen (53).................. Vice President C. Thomas Harvie (54)..................... Vice President and General Counsel Lee N. Fiedler (56)....................... Vice President Sylvain G. Valensi (55)................... Vice President Joseph M. Gingo (53)...................... Vice President John C. Polhemus (53)..................... Vice President Terry L. Persinger (53)................... Vice President Dennis E. Dick (58)....................... Vice President John W. Richardson (52)................... Vice President Clark E. Sprang (55)...................... Vice President William M. Hopkins (53)................... Vice President Kenneth B. Kleckner (50).................. Vice President Debra M. Walker (42)...................... Vice President
For information concerning Mr. Gibara, see "-- Directors of Goodyear." Mr. Sharp served in various tire production posts until elected, effective April 1, 1991, an Executive Vice President of Goodyear for worldwide product supply, serving in that capacity, as the executive officer of Goodyear responsible for Goodyear's tire manufacturing and distribution operations and research, development and engineering activities until October 1, 1992, when he became the executive officer of Goodyear responsible for the operations of Goodyear's subsidiaries in Europe. Effective January 1, 1996, Mr. Sharp was elected Goodyear's President, Global Support Operations, and, as such, he is the executive officer of Goodyear having corporate responsibility for Goodyear's research and development, manufacturing, purchasing, materials management, quality assurance, and environmental and health and safety improvement activities worldwide. Mr. Sharp has been an employee of Goodyear since 1964. Mr. Tieken joined Goodyear on May 3, 1994, when he was elected an Executive Vice President and the Chief Financial Officer of Goodyear. Prior to joining Goodyear, Mr. Tieken had been employed by the General Electric Company for 32 years, serving in various financial management posts, including Vice President, Finance and Information Technology of General Electric Aerospace from 1988 to April of 1993. From April of 1993 through April of 1994, Mr. Tieken was the Vice President of Finance of Martin Marietta Corporation, which acquired General Electric Aerospace in April of 1993. Mr. Tieken is the principal financial officer of Goodyear. Mr. Culler has been employed by Goodyear for 35 years. He has been Executive Vice President responsible for North American Tires since April, 1995. Prior to that he was President and CEO of Goodyear's Canadian 42 50 subsidiary. He previously served as Chairman of the Board of Directors of the Company from August, 1988 to October, 1991. He was again elected a director and Chairman of the Board of the Company on July 27, 1995, and has held those positions since then. Mr. Boyazis joined Goodyear in 1963, serving in various posts until June 2, 1987, when he was elected a Vice President and the Secretary of Goodyear. He is also the Associate General Counsel of Goodyear. Mr. Williams served in various human resources posts until August 2, 1988, when he was elected a Vice President of Goodyear. Mr. Williams was responsible for corporate compliance with equal employment opportunity laws and regulations until July 1, 1991, when he became the executive officer of Goodyear responsible for Goodyear's human resources, diversity, safety and workers' compensation activities and for compliance with the various equal employment opportunity, workplace safety and other employment laws and regulations. Mr. Williams was the executive officer of Goodyear responsible for Goodyear's compensation and employment practices from March 1, 1993 through October 31, 1995. Effective November 1, 1995, Mr. Williams became the executive officer of Goodyear responsible for Goodyear's human resources policy, employment practices and systems. Mr. Williams has been an employee of Goodyear since 1962. Mr. Perduyn served in various public relations posts until he was elected a Vice President of Goodyear effective June 1, 1989. He is the executive officer of Goodyear responsible for Goodyear's public affairs activities. Mr. Perduyn has been an employee of Goodyear since 1970. Mr. Adante served in various engineering and management posts until April of 1990, when he was appointed Vice President for merchandise distribution and control. Mr. Adante was elected a Vice President effective April 1, 1991. He is the executive officer of Goodyear responsible for materials management. Mr. Adante has been an employee of Goodyear since 1966. Mr. Orme served in various manufacturing management posts until he was elected a Vice President of Goodyear effective September 1, 1992. He is the executive officer of Goodyear responsible for Goodyear's worldwide manufacturing, corporate engineering and product distribution operations. Mr. Orme has been an employee of Goodyear since 1962. Mr. Miller served in various management and research and development posts until he was elected a Vice President of Goodyear effective November 1, 1992. He is the executive officer of Goodyear responsible for Goodyear's purchasing operations. Mr. Miller has been an employee of Goodyear since 1967. Mr. Burns served in various human resources posts until appointed Director of Organization Development and Training in 1986. He was elected a Vice President of Goodyear effective March 1, 1993. He is the executive officer of Goodyear responsible for Goodyear's human resources and total quality systems. Mr. Burns has been an employee of Goodyear since 1965. Mr. Strickler served in various accounting, treasury and financial posts until August of 1988, when he became the principal financial officer of the Tire Division. Mr. Strickler was a Vice President and the Comptroller of Goodyear from September 1, 1993 to May 31, 1996. Since June 1, 1996, Mr. Strickler has served as a Vice President of Goodyear and is the executive officer of Goodyear responsible for the financial functions of Goodyear's North American Tires operations. Mr. Strickler has been an employee of Goodyear since 1969. Mr. Whiteley served in various quality control and quality assurance managerial posts until appointed Director of Tire Quality Assurance on June 1, 1990. He was elected a Vice President of Goodyear on November 2, 1993, serving as the executive officer of Goodyear responsible for product quality and safety. Effective July 1, 1995, Mr. Whiteley became the executive officer of Goodyear responsible for product quality and safety and environmental and occupational health and safety improvement and government compliance programs. Mr. Whiteley has been an employee of Goodyear since 1969. Mr. Hauman served in various financial management posts around the world until he was elected an Assistant Treasurer of Goodyear on August 15, 1988. He was elected a Vice President and the Treasurer of Goodyear on October 4, 1994. Mr. Hauman is the executive officer of Goodyear responsible for Goodyear's worldwide treasury operations, risk management activities and pension asset management. Mr. Hauman has been an employee of Goodyear since 1968. 43 51 Dr. Steichen served in various research and development posts until August 1, 1991, when he was appointed Director of Technology Management. On November 1, 1992, Dr. Steichen was appointed the General Manager of Technology and Quality Assurance of South Pacific Tyres, a joint venture company 50% owned by Goodyear, serving in that capacity until November 30, 1994. Dr. Steichen was elected a Vice President of Goodyear effective December 1, 1994. Dr. Steichen is the executive officer of Goodyear responsible for Goodyear's research activities. Dr. Steichen has been an employee of Goodyear since 1973. Mr. Harvie joined Goodyear on July 1, 1995 as a Vice President and the General Counsel of Goodyear. Prior to joining Goodyear, Mr. Harvie was a Vice President and the Associate General Counsel of TRW Inc. from 1989 through June 1995. Mr. Harvie had been employed by TRW Inc. for 20 years in various capacities in the TRW Inc. law department. Mr. Fiedler served in various chemical sales and marketing positions and managerial posts until October 1, 1991, when he became the President and Chief Executive Officer of The Kelly-Springfield Tire Company, formerly a wholly-owned subsidiary of Goodyear. Since January 1, 1996, he has served as the President of the Kelly-Springfield Division. He was elected a Vice President of Goodyear on November 5, 1996 and is the executive officer of Goodyear responsible for Kelly-brand and private-brand tire operations. Mr. Fiedler has been an employee of Goodyear since 1963. Mr. Valensi served in various finance, sales and marketing positions until 1985, when he was appointed Director of Sales and Marketing for the European region. In November 1993, he was named President and Chief Executive Officer of Goodyear France S.A., a wholly-owned subsidiary of Goodyear. On February 1, 1996, Mr. Valensi was appointed Vice President of Goodyear's European region. On November 5, 1996, Mr. Valensi was elected a Vice President of Goodyear and in that capacity serves as the executive officer of Goodyear responsible for the Goodyear's operations in Europe, Africa and the Middle East. Mr. Valensi has been an employee of Goodyear since 1965. Mr. Gingo served in various research and development and managerial posts until elected a Vice President of Goodyear effective November 1, 1992, serving in that capacity as the executive officer of Goodyear responsible for Goodyear's worldwide tire technology activities until January 1, 1995, when he was appointed Vice President of Goodyear's Asia region. On November 5, 1996, Mr. Gingo was elected a Vice President of Goodyear. He served as the executive officer of Goodyear responsible for Goodyear's operations in Asia until September 1, 1998, when he was placed on special assignment to the office of the Chairman. Mr. Gingo has been an employee of Goodyear since 1966. Mr. Polhemus served in various managerial positions in Goodyear's international operations until June 1, 1991, when he was appointed Managing Director and President of Goodyear do Brasil Produtos de Borracha Ltda, a wholly-owned subsidiary of Goodyear. On April 10, 1995, Mr. Polhemus was appointed Vice President for the Latin America region. On November 5, 1996, Mr. Polhemus was elected a Vice President of Goodyear and, in that capacity, is the executive officer of Goodyear responsible for Goodyear's Latin American operations. Mr. Polhemus has been an employee of Goodyear since 1969. Mr. Persinger joined Goodyear in 1966, serving in various research and development and managerial positions until May 16, 1989, when he was appointed Vice President and General Manager of the Polyester Division. He served in that capacity until December 1992, when the Polyester Division was sold to Shell Oil Company. Mr. Persinger left Goodyear and joined Shell at that time. He rejoined Goodyear effective January 1, 1995, when he was appointed Vice President and General Manager of Engineered Products. On November 5, 1996, Mr. Persinger was elected a Vice President of Goodyear and, in that capacity, is the executive officer of Goodyear responsible for Goodyear's Engineered Products operations. Mr. Dick served in various research and development and production posts until elected a Vice President of Goodyear on April 9, 1984, serving as the executive officer of Goodyear responsible for Goodyear's general products technology management activities worldwide until October 1991, when he was appointed Vice President and General Manager of Goodyear's Chemical Division. On November 5, 1996, Mr. Dick was elected a Vice President of Goodyear and in that capacity the executive officer of Goodyear responsible for Goodyear's Chemical Division. Mr. Dick has been an employee of Goodyear since 1964. 44 52 Mr. Richardson served in various financial management posts until he was appointed General Manager and Finance Director of Goodyear Great Britain Limited on November 1, 1990. Mr. Richardson was appointed General Auditor of Goodyear on February 1, 1993, serving in that post until appointed Vice President and Comptroller on June 1, 1996. He was elected Vice President Corporate Finance of Goodyear on November 5, 1996 and in that capacity is the principal accounting officer of Goodyear. Mr. Richardson has been an employee of Goodyear since 1967. Mr. Sprang served in various financial posts until appointed Finance Director for Europe on July 1, 1990, serving in that post until September 1, 1993, when he was appointed Vice President Business Development. Mr. Sprang was elected a Vice President of Goodyear on November 5, 1996 and in that capacity is the executive officer of Goodyear responsible for Goodyear's business development activities. Mr. Sprang has been an employee of Goodyear since 1966. Mr. Hopkins served in various engineering and managerial posts until October 1, 1991 when he was appointed General Manager Light Truck Tires. He was appointed General Manager of Multi-purpose Vehicle and Specialty Tires effective January 1, 1993, a post he held until June 1, 1996, when he was appointed Director of Tire Technology, North American Tires. On May 19, 1998, Mr. Hopkins was elected a Vice President of Goodyear and is the executive officer of Goodyear responsible for Goodyear's worldwide tire technology activities. Mr. Hopkins has been an employee of Goodyear since 1967. Mr. Kleckner served in various engineering and production management posts until July 1, 1993 when he was appointed the manager of Goodyear's Lawton, Oklahoma, tire production facility. From May 16, 1994 through May 31, 1996, he was Vice President, Manufacturing and Operations for The Kelly Springfield Tire Company, a subsidiary of Goodyear. Mr. Kleckner was appointed Director of Tire Manufacturing for Goodyear's operations in Latin America effective June 1, 1996, a post he held until he was appointed Vice President of Engineering on June 16, 1997. On May 19, 1998, Mr. Kleckner was elected a Vice President of Goodyear and is the executive officer of Goodyear responsible for process engineering. He has been an employee of Goodyear since 1971. Ms. Walker served in various marketing posts until March 1, 1992, when she was appointed Marketing Manager for passenger tires. She was appointed Manager of Dealer Sales effective January 1, 1994, a post she held until appointed Director of Retail Systems on February 26, 1995. She was appointed Vice President-Retail Systems on May 16, 1996. On May 19, 1998, she was elected a Vice President of Goodyear and, in that capacity, is the chief information officer of Goodyear and is the executive officer of Goodyear responsible for developing its information technology strategy and architecture. Ms. Walker has been an employee of Goodyear since 1979. There are no family relationships between any of the executive officers or directors of Goodyear. Each executive officer is elected by the board of directors of Goodyear at its annual meeting to a term of one year or until his or her successor is duly elected, except in those instances where the person is elected at other than an annual meeting of the board of directors in which event such person's tenure will expire at the next annual meeting of the board of directors unless such person is reelected. The next annual meeting of the board of directors is scheduled to be held in April of 1999. None of Goodyear's directors or executive officers own any shares of Common Stock, and neither any of these individuals nor Goodyear has engaged in any transactions in shares of Common Stock during the 60 days preceding the date of this Proxy Statement. 45 53 PROXY CARD BRAD RAGAN, INC. 4404-G STUART ANDERSON BOULEVARD CHARLOTTE, NC 28217 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS The undersigned hereby appoints Eugene R. Culler, Jr., and William P. Brophey as agents, each with the power to appoint his substitute, and hereby authorizes them to represent and to vote, as designated below, all the shares of Common Stock of Brad Ragan, Inc. (the "Company") held of record by the undersigned on August 21, 1998 at the Annual Meeting of the Shareholders to be held on December 22, 1998 at 9:00 a.m. local time at the Goodyear Automotive Service Training Center, 806 Tyvola Road, Charlotte, North Carolina, and at any adjournment thereof. (1) PROPOSAL TO AMEND THE COMPANY'S ARTICLES OF INCORPORATION TO GRANT RIGHTS OF DISSENT AND APPRAISAL IN CERTAIN TRANSACTIONS, INCLUDING THE SHARE EXCHANGE DESCRIBED IN PROPOSAL NO. 2 BELOW: [ ] FOR [ ] AGAINST [ ] ABSTAIN (2) PROPOSAL TO APPROVE AND ADOPT THE AGREEMENT AND PLAN OF SHARE EXCHANGE BETWEEN THE COMPANY AND THE GOODYEAR TIRE & RUBBER COMPANY AND THE TRANSACTIONS CONTEMPLATED THEREBY (CONTINGENT ON APPROVAL OF PROPOSAL NO. 1 ABOVE): [ ] FOR [ ] AGAINST [ ] ABSTAIN (3) ELECTION OF DIRECTORS:
[ ] FOR all nominees listed below [ ] WITHHOLD AUTHORITY (except as marked to the contrary to vote for all nominees listed below below) Eugene R. Culler, Jr., William P. Brophey, Ronald J. Carr, Richard E. Sorensen, Richard D. Person, James W. Barnett (Continued on other side) (Continued from other side) (INSTRUCTION: TO WITHHOLD AUTHORITY TO VOTE FOR ANY INDIVIDUAL NOMINEE, WRITE THAT NOMINEE'S NAME ON THE SPACE PROVIDED BELOW.) Name(s): --------------------------------------------------------------------------------------------------- (4) IN THEIR DISCRETION, THE PROXY AGENTS ARE AUTHORIZED TO VOTE UPON SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING.
This Proxy, when properly dated and executed, will be voted in the manner directed herein by the undersigned shareholder. If no direction is made, this Proxy will be voted for Proposals 1 and 2 and for all the nominees for director named above. Please sign exactly as name appears below. When shares are held by joint tenants, both should sign. When signing as attorney, executor, administrator, trustee or guardian, please give full title as such. If a corporation, please sign in full corporate name by the president or other authorized officer. If a partnership, please sign in partnership name by an authorized person. Dated: , 1998 ----------------- ------------------------------ Signature ------------------------------ Signature if held jointly PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE 54 ANNEX I AGREEMENT AND PLAN OF SHARE EXCHANGE BETWEEN THE GOODYEAR TIRE & RUBBER COMPANY AND BRAD RAGAN, INC. THIS AGREEMENT AND PLAN OF SHARE EXCHANGE (the "Agreement," which includes the "Plan" as herein set forth) is made and entered into between The Goodyear Tire & Rubber Company, an Ohio corporation (the "Acquiring Corporation"), and Brad Ragan, Inc., a North Carolina corporation (the "Acquired Corporation"), pursuant to Sections 55-11-02 and 55-11-07 of the North Carolina Business Corporation Act (the "Act"), the Acquiring Corporation and the Acquired Corporation being herein collectively referred to as the "Participating Corporations." WHEREAS, the Board of Directors of the Acquired Corporation has determined that it is advisable that the shares of its Common Stock, $1.00 par value (the "Common Stock"), which are outstanding and not owned by the Acquiring Corporation (the "Plan Shares") be acquired by the Acquiring Corporation on the terms and conditions set forth herein; NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and agreements herein contained, the Participating Corporations do hereby agree as follows: I. THE SHARE EXCHANGE TRANSACTION. The Acquiring Corporation will acquire all Plan Shares pursuant to the terms and conditions of this Agreement and Plan of Share Exchange (the "Plan"). II. TERMS AND CONDITIONS OF THE EXCHANGE. 2.1 The Exchange. At the Effective Time (as defined in Section 4.2 below), the shares of the Participating Corporations shall be exchanged as follows: (a) Acquiring Corporation. The outstanding shares of capital stock of the Acquiring Corporation will not be exchanged, altered or affected in any manner as a result of the share exchange to be effected pursuant to this Plan and will remain outstanding as shares of the Acquiring Corporation. (b) Acquired Corporation. Each outstanding share of Common Stock of the Acquired Corporation except those already owned by the Acquiring Corporation (each a "Plan Share"), will, by virtue of the share exchange provided for by the Plan and without any further action on the part of the holder thereof, be exchanged for, and become the right to receive from the Acquiring Corporation, $37.25 in cash upon surrender to the Acquiring Corporation (or an agent of the Acquiring Corporation designated as provided in Section 2.2 hereof) of the certificate or certificates representing such Plan Share or Shares, as provided in Section 2.2 hereof (the "Exchange"). No interest shall be payable with respect to payment of such cash amount on surrender of outstanding certificates. No holder of any Plan Share or Shares (or any certificate representing such Plan Share or Shares) immediately prior to the Effective Time shall be entitled to receive any dividend declared and payable in respect of such Plan Share or Shares after the Effective Time, any such dividend being the property of the Acquiring Corporation. The stock transfer ledger of the Acquired Corporation shall be closed in respect of the Plan Shares from and after the Effective Time, except that the Acquired Corporation shall cause its transfer agent to issue a certificate representing the Plan Shares to the Acquiring Corporation. 2.2 Surrender of Share Certificates. After the Effective Time, each holder, other than the Acquiring Corporation, of an outstanding certificate or certificates representing Plan Shares shall surrender the same to the 55 Acquiring Corporation in accordance with the instructions contained in a form of letter of transmittal. The letter of transmittal and certificate(s) shall be delivered to the bank, trust company or other party designated by the Acquiring Corporation as paying agent for the exchange of Plan Shares for cash as provided herein. Upon such surrender, each such holder shall receive cash in the amount of $37.25 for each Plan Share represented by a certificate so surrendered. Until so surrendered, each outstanding certificate that prior to the Effective Time represented one or more Plan Shares shall be deemed for all purposes to evidence only the ownership of the non-transferable right to receive the cash to be exchanged for each Plan Share represented by said certificate and from and after the Effective Time the registered holder of said certificate shall not be entitled to transfer, to receive dividends on or to vote the Plan Shares represented by said certificates. With respect to any certificate for Plan Shares that has been lost or destroyed, the Acquiring Corporation shall pay the holder thereof the consideration attributable to such certificate upon receipt of (i) evidence of ownership of such Plan Shares reasonably satisfactory to the Acquiring Corporation, and (ii) an indemnity bond posted by such holder in such amount as the Acquiring Corporation may reasonably require. III. EFFECTS OF EXCHANGE. The Exchange shall transpire pursuant to the provisions of and with the effect provided in the Act. IV. GENERAL CONDITIONS AND AGREEMENTS. 4.1 Statutory Right of Dissent. Prior to submitting the Plan to a vote of its shareholders the Acquired Corporation shall submit to its shareholders (with the recommendation of its Board of Directors), and the Acquiring Corporation shall vote all of its shares of Common Stock in favor of, an amendment of the Articles of Incorporation of the Acquired Corporation which provides that statutory dissenters' rights, as set out in Article 13 of the Act, shall be applicable to this transaction notwithstanding the provisions of Section 55-13-02(c) of the Act. 4.2 Effective Time. As used in the Plan, the term "Effective Time" means the later of (i) 11:59 P.M. (Charlotte Time) on June 15, 1998, or (ii) the time at which appropriate Articles of Share Exchange, including this Agreement and Plan of Share Exchange, shall have been filed with the Secretary of State of North Carolina in accordance with Section 55-11-05 of the Act. 4.3 Termination. This Agreement may be terminated and abandoned prior to the Effective Time, irrespective of the prior approval of the shareholders of the Acquired Corporation, by (i) the mutual written consent of the Board of Directors of the Acquired Corporation, acting upon the recommendation of the Special Committee (as defined in Section 5.9), and the Board of Directors of the Acquiring Corporation; (ii) action of the Board of Directors, the Chairman of the Board, any President, any Executive Vice President or any Vice President of the Acquiring Corporation in the case of any termination of the Plan for "just cause"; or (iii) action of the Board of Directors, the Chairman of the Board, any President, any Executive Vice President or any Vice President of the Acquiring Corporation in the case of a unilateral termination without just cause. Unless this Agreement is terminated prior to the shareholder vote thereon, the failure of the Acquiring Corporation to vote shares of Common Stock owned by it in favor of this Agreement shall be treated as a unilateral termination by the Acquiring Corporation without just cause hereunder. The Plan and the Exchange shall terminate if for any reason the transactions contemplated herein shall not have occurred by September 15, 1998. In the event of any termination of the Plan pursuant to this Section 4.3, the Plan shall become void and shall have no effect. Any such termination shall not give rise to any liability on the part of either the Acquired Corporation or the Acquiring Corporation or their respective directors, officers or shareholders, except as expressly provided in this Section 4.3. If the Plan should be abandoned and terminated unilaterally by the Acquiring Corporation without just cause, then the Acquiring Corporation will reimburse the Acquired Corporation for any fees reasonably incurred and paid to investment bankers and legal counsel in connection with the negotiation, preparation or implementation of the Plan, plus any costs reasonably incurred in connection with preparation and distribution of a proxy statement and proxy and the solicitation of proxies ("Reimbursable Expenses"), which reimbursements shall be the sole obligation of the Acquiring Corporation in the case of its unilateral termination of the Plan and the Acquiring Corporation shall have no other liability in connection therewith. For the purposes hereof, any of the following or 2 56 similar circumstances or events shall constitute "just cause" for termination of the Plan by the Acquiring Corporation: (a) Any action, suit, investigation, other proceeding or claim (other than the Shareholder Litigation (as defined in Section 5.6)) shall have been threatened or instituted before any court or before or by any government or governmental agency or instrumentality either (1) to restrain, prohibit or invalidate the transactions contemplated by this Agreement, (2) to impose any restrictions, limitation or conditions with respect thereto or with respect to the Acquiring Corporation's ownership of the Acquired Corporation or any of its subsidiaries, (3) to obtain damages or other relief in connection with the transactions contemplated by this Agreement, excluding actions by shareholders of the Acquired Corporation asserting dissenters' rights if, and only if, asserted in respect of 5% or less of the outstanding shares of the Common Stock, or (4) which the Acquiring Corporation deems adverse to its interest or which, in the sole judgment of the Acquiring Corporation, might materially and adversely affect its operations or financial condition; or (b) The status of the Shareholder Litigation (as defined in Section 5.6) shall be such that, in the sole judgment of the Acquiring Corporation, pursuing the consummation of the Plan in light of such litigation would not be in the best interests of the Acquiring Corporation. (c) Shareholders of the Acquired Corporation holding more than 5% of the aggregate number of outstanding shares of the Common Stock shall have asserted their dissenters' rights and shall not have lost, surrendered or withdrawn such dissenters' rights. (d) The Acquired Corporation shall have failed to comply with or to perform in any material respect any covenant or obligation of the Acquired Corporation contained in the terms and conditions of this Agreement and such failure has continued for a period of thirty (30) days after notice to the Acquired Corporation; or (e) Any condition precedent to the implementation of the Plan shall not have been satisfied (other than a condition which the Acquiring Corporation could have caused to be satisfied without incurring any cost or expense or taking an action or suffering a consequence deemed by it to be adverse to its interests); or (f) Any representation or warranty of the Acquired Corporation shall prove to have been untrue or incorrect in any material respect when made or shall at any time cease to be true and correct in all material respects; provided, however, that if the Acquiring Corporation abandons or terminates the Plan on the ground of either paragraph (a), (b) or (c) of this Section 4.3, the Acquiring Corporation shall reimburse the Acquired Corporation for up to, but not exceeding, $250,000 of Reimbursable Expenses. 4.4 Conduct of the Participating Corporations prior to the Effective Time. Until the completion of the share exchange, the Acquired Corporation shall continue to conduct its business without material change and it shall not (i) issue any equity security or instrument convertible into any equity security, (ii) make any distribution or other disposition of its assets, capital or surplus except in the ordinary course of business, (iii) take any action which would impair its assets, or (iv) take any action that would cause its representations and warranties to be untrue in any material respect at the Effective Time. Prior to the Effective Time, each of the Participating Corporations shall promptly take all such actions as shall be necessary or appropriate in order to effect the Exchange in accordance with the terms and conditions of the Plan, including, but not limited to, complying with the conditions set forth in Section 4.5(b). 4.5 Conditions to the Exchange. The obligation of the Acquiring Corporation to acquire the Plan Shares pursuant to the Plan shall be conditioned upon the satisfaction of the following conditions: (a) The Plan shall have been approved at the meeting of shareholders of the Acquired Corporation held for such purpose, or any adjournment thereof, by the vote of the holders of a majority of the Common Stock outstanding and entitled to vote thereon. (b) All filings, registrations, notices, consents, approvals, authorizations, certificates, orders and permits with respect to the exchange of the Plan Shares pursuant to and in accordance with the provisions of 3 57 the Plan required from any court, government or governmental body, agency or instrumentality having or asserting jurisdiction over the Participating Corporations shall have been made or obtained and be in full force and effect on a basis satisfactory to the Acquiring Corporation. (c) The representations and warranties of the Acquired Corporation made in this Agreement shall be true and correct in all material respects at, and at all time prior to, the Effective Time, and the Acquired Corporation shall have fully performed in all material respects its covenants and obligations under this Agreement at or prior to the Effective Time. V. REPRESENTATIONS AND WARRANTIES OF ACQUIRED CORPORATION. 5.1 Organization, Standing and Qualification. The Acquired Corporation is duly organized, validly existing and in good standing under the laws of the State of North Carolina and has the corporate power to own all of its properties and assets and to carry on its business as it is now being conducted. Each subsidiary of the Acquired Corporation is a duly organized and validly existing corporation in good standing under the laws of the jurisdiction of its incorporation, with the corporate power and authority to own its properties and conduct its business as now being conducted. Each of the Acquired Corporation and its subsidiaries is duly qualified and in good standing as a foreign corporation authorized to do business in each jurisdiction in which the character of the properties owned or held under lease by it or the nature of the business transacted by it makes such qualification necessary, except where the failure to be so qualified and in good standing would not have a material adverse effect on the business or financial conditions of the Acquired Corporation and its subsidiaries taken as a whole. 5.2 Capital Structure. The Acquired Corporation's authorized capital stock consists of 10,000,000 shares of Common Stock, of which 2,190,619 shares are issued and outstanding. All issued and outstanding shares have been validly issued, are fully paid and nonassessable and have voting rights. There are no outstanding subscriptions, options, rights, warrants, convertible securities or other agreements or commitments obligating the Acquired Corporation to issue any additional shares of its capital stock. There are no outstanding options, rights, warrants, subscriptions, convertible securities or other agreements or commitments obligating any subsidiary of the Acquired Corporation to issue any additional shares of its capital stock. There are no outstanding obligations of the Acquired Corporation or any of its subsidiaries to repurchase, redeem or otherwise acquire any shares of the capital stock of any of its subsidiaries. The Acquired Corporation is, directly or indirectly, the record and beneficial owner of all of the outstanding shares of the capital stock of each of its subsidiaries, free and clear of any lien, mortgage, pledge, charge, security interest or encumbrance. 5.3 Due Authorization. The Acquired Corporation has the requisite corporate power and authority to execute and deliver this Agreement and, following compliance with Section 4.5(b), to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by the Acquired Corporation and the consummation by the Acquired Corporation of the transactions contemplated by this Agreement have been duly and validly authorized by the board of directors of the Acquired Corporation and no other corporate proceeding on the part of the Acquired Corporation is necessary to authorize this Agreement or to consummate the transactions so contemplated, other than the approval and adoption of the Plan and this Agreement by the holders of a majority of the shares of Common Stock outstanding. This Agreement has been duly and validly executed and delivered by the Acquired Corporation and constitutes a valid and binding agreement of the Acquiring Corporation, enforceable against the Acquired Corporation in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency and similar laws affecting creditors' rights generally and subject to general principles of equity (whether considered in a proceeding in equity or at law). 5.4 Reports and Financial Statements. (a) The Acquired Corporation has filed with the Securities and Exchange Commission (the "SEC") all forms, reports and documents required to be filed by it pursuant to applicable law since January 1, 1994 (the "SEC Reports"), all of which have complied as of their respective filing dates in all material respects with all applicable requirements of the Securities Exchange Act of 1934 (the "Exchange Act") and the rules and regulations of the SEC promulgated under the Exchange Act. None of the SEC Reports, including, without limitation, any financial statements or schedules included or incorporated by reference in the SEC Reports, at the time filed, contained an untrue statement of a material fact or omitted to state 4 58 a material fact required to be stated or incorporated by reference therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. (b) The audited and unaudited consolidated financial statements of the Acquired Corporation included (or incorporated by reference) in the SEC Reports have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis (except to the extent set forth in those financial statements, including the notes, if any) and present fairly in all material respects the consolidated financial position of the Company as of their respective dates, and the consolidated results of operations and retained earnings and cash flows for the periods presented, subject, in the case of the unaudited interim financial statements, to normal, recurring, year-end adjustments and the absence of such footnotes as may be omitted in unaudited interim financial statements prepared in accordance with United States generally accepted accounting principles. 5.5 No Violation of Instruments. The execution and delivery of this Agreement do not, and the consummation of the share exchange will not, (1) violate any provision of the Articles of Incorporation or Bylaws of the Acquired Corporation; (2) violate any provision of or result in the acceleration of an obligation under, or result in the imposition of any lien or encumbrance on any asset of the Acquired Corporation pursuant to, the terms of any mortgage, note, lien, lease, franchise, license, permit, agreement, instrument, order, arbitration award, judgment or decree; (3) result in the termination of any license, franchise lease, or permit to which the Acquired Corporation is a party or by which it is bound; (4) violate or conflict with any other restriction of any kind or character to which the Acquired Corporation is subject; or (5) require any consent, approval, authorization or permit of, or filing with or notification to, any governmental or regulatory authority, except (i) pursuant to the Exchange Act, or (ii) the filing of appropriate Articles of Share Exchange with the Secretary of State of North Carolina in accordance with Section 55-11-05 of the Act. 5.6 Litigation. Other than the lawsuit styled Herbert T. Behrens and Martin Bergstein, Trustee FBO Herbert R. Behrens v. Brad Ragan, Inc., et al., 197 CVS 14799 (the "Shareholder Litigation") there is no claim, action, proceeding or governmental investigation pending or, to the knowledge of the Acquired Corporation, threatened against the Acquired Corporation or any of its subsidiaries before any court or governmental or regulatory authority that, individually or in the aggregate, (i) could be reasonably expected to have a material adverse effect on the business or financial condition of the Acquired Corporation and its subsidiaries taken as a whole, or (ii) in any manner seeks to amend or terminate the Plan or to prevent, enjoin, alter the terms of, or delay the Exchange. 5.7 Compliance With Law. To the knowledge of the Acquired Corporation, the Acquired Corporation and its subsidiaries, and the businesses of the Acquired Corporation and its subsidiaries, are being conducted, in compliance in all material respects with all applicable laws, orders, rules or regulations of any governmental authority. 5.8 Shareholder Protection Act -- Required Shareholder Vote. The North Carolina Shareholder Protection Act is not applicable to the Acquired Corporation. The only vote of shareholders of the Acquired Corporation required to approve and adopt the Plan and approve the Exchange is the affirmative vote of the holders of at least a majority of the outstanding shares of the Common Stock. 5.9 Fairness Opinion. Interstate/Johnson Lane Corporation ("IJL"), the independent financial advisor to the Special Committee of the Board of Directors of the Acquired Corporation established to review and consider the proposal to effect the Exchange contemplated by the Plan (the "Special Committee"), has delivered to the Acquired Corporation its written opinion that the consideration to be paid for the Plan Shares in the share exchange is fair, from a financial point of view, to the holders of the Plan Shares. At the date of this Agreement, said opinion has not been withdrawn or modified. A true and complete copy of said opinion has been delivered to the Acquiring Corporation. 5.10 Board Action. The Board, at a meeting duly called and held on May 5, 1998, has unanimously (exclusive of directors who abstained from voting because of their relationship with the Acquiring Corporation) (i) determined that the Plan and the share exchange pursuant thereto are fair to and in the best interests of the holder of the Plan Shares, (ii) approved and adopted this Agreement and the Plan and (iii) recommended that the 5 59 shareholders of the Acquired Corporation approve and adopt this Agreement and the Plan. The Acquired Corporation has been advised by its directors that each of them intends to vote all shares of Common Stock owned by him in favor of the approval and adoption by the shareholders of the Acquired Corporation of this Agreement and the Plan. 5.11 Absence of Certain Changes. Since December 31, 1997, except as contemplated by this Agreement or disclosed in the Annual Report on Form 10-K for the year ended December 31, 1997 (the "1997 10-K") of the Acquired Corporation or in any SEC Report filed since the 1997 10-K and prior to the date of this Agreement, the Acquired Corporation and its subsidiaries have conducted their respective businesses only in the ordinary course and in a manner consistent with past practice and, since December 31, 1997, there has not been (i) any change in the business, operations, properties, condition (financial or otherwise), assets or liabilities (including, without limitation, contingent liabilities) of the Acquired Corporation and its subsidiaries having, individually or in the aggregate a material adverse effect on the Acquired Corporation and its subsidiaries taken as a whole, (ii) any damage, destruction or loss (whether or not covered by insurance) with respect to any property or asset of the Acquired Corporation or any of its subsidiaries having, individually or in the aggregate, a material adverse effect on the Acquired Corporation and its subsidiaries taken as a whole, (iii) any change by the Acquired Corporation in its accounting methods, principles or practices not mandated by the Financial Accounting Standards Board, the American Institute of Certified Public Accountants or the Securities and Exchange Commission, (iv) any declaration, setting aside or payment of any dividend or distribution in respect of any capital stock of the Acquired Corporation or any redemption, purchase or other acquisition of any of its securities, or (v) any increase in or establishment of any bonus, insurance, severance, deferred compensation, pension, retirement, profit sharing, stock option (including, without limitation, the granting of stock options, stock appreciation rights, performance awards, or restricted stock awards), stock purchase or other employee benefit plan, or any other increase in the compensation payable or to become payable to any officers, directors, or key employees of the Acquired Corporation or any of its subsidiaries, except in the ordinary course of business consistent with past practice. 5.12 Employee Benefit Plans. The employee benefit plans, programs and arrangements maintained for the benefit of any current or former employee, officer or director of the Acquired Corporation or any of its subsidiaries are listed on Schedule 5.12 (the "Benefit Plans") and the Acquiring Corporation has been furnished with a copy of each Benefit Plan and each material document prepared in connection with each Benefit Plan. Except as disclosed by the Acquired Corporation to the Acquiring Corporation: (i) none of the Benefit Plans is a multi-employer plan within the meaning of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"); (ii) except as expressly disclosed on Schedule 5.12, none of the Benefit Plans promises or provides retiree medical or life insurance benefits to any person; (iii) each Benefit Plan intended to be qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended (the "Code"), has received a favorable determination letter from the Internal Revenue Service (the "IRS") that it is so qualified and nothing has occurred since the date of such letter to affect the qualified status of such Plan; and (iv) each Plan has been operated in all material respects in accordance with its terms and the requirements of applicable law. 5.13 Proxy Statement. The proxy statement to be sent to the shareholders of the Acquired Corporation in connection with a shareholders' meeting called for the purpose of considering the approval of the Plan (such proxy statement, as amended or supplemented, being referred to herein as the "Proxy Statement"), shall not, at the date the Proxy Statement (or any amendment or supplement thereto) is first mailed to shareholders of the Acquired Corporation, at the time of the shareholders' meeting and at the Effective Time, be false or misleading with respect to any material fact, or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they are made, not misleading or necessary to correct any statement in any earlier communications with respect to the solicitation of proxies for the shareholders' meeting which shall have become false or misleading; provided, that no representation is made by the Acquired Corporation with respect to statements made in the Proxy Statement based on information supplied in writing by the Acquiring Corporation or its representatives expressly for inclusion in the Proxy Statement. The Proxy Statement shall comply in all material respects as to form with the requirements of the Exchange Act and the rules and regulations thereunder. 6 60 5.14 Real Property and Leases. The Acquired Corporation and its subsidiaries have sufficient title to all of their respective properties and assets to conduct their respective businesses as currently conducted or as contemplated to be conducted, with only such exceptions as, individually or in the aggregate, would not have a material adverse effect on the Acquiring Corporation and its subsidiaries taken as a whole. 5.15 Taxes. The Acquired Corporation and its subsidiaries have filed all federal, state, local and foreign tax returns and reports required to be filed by it and has paid and discharged all taxes shown as due thereon and has paid all applicable ad valorem taxes as are due, other than (i) such payments as are being contested in good faith by appropriate proceedings and (ii) such filings, payments or other occurrences that, individually or in the aggregate, would not have a material adverse effect on the Acquired Corporation and its subsidiaries taken as a whole. Except as disclosed on Schedule 5.15, no taxing authority or agency, domestic or foreign, is now asserting or, to the best knowledge of the Acquired Corporation, threatening to assert against the Acquired Corporation or any of its subsidiaries any deficiency or claim for additional taxes or interest thereon or penalties in connection therewith. The Acquired Corporation has not granted any waiver of any statute of limitations with respect to, or any extension of a period for the assessment of, any federal, state, county, municipal or foreign income tax. The accruals and reserves for taxes reflected in the consolidated balance sheet of the Acquired Corporation and its subsidiaries at December 31, 1997 are adequate to cover all taxes accruable through such date (including interest and penalties, if any, thereon) in accordance with generally accepted accounting principles. 5.16 Environmental Matters. There are no specific facts or circumstances known to the Acquired Corporation that would indicate that the Acquired Corporation or any of its subsidiaries will likely be subject to liability in respect of a violation or alleged violation of any Environmental Law (as defined below), which would be material to the Acquired Corporation and its subsidiaries, taken as a whole. As used in this Agreement, "Environmental Law" shall mean: any federal, state or local law, rule or regulation or common law, relating to public health or safety, worker health or safety, or pollution, damage to or protection of the environment including, without limitation, laws relating to emissions, discharges, releases or threatened release of hazardous materials (as defined by such laws) into the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface), or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, generation, disposal, transport or handling of any hazardous material. 5.17 Brokers. No broker, finder or other investment banker is entitled to receive any brokerage, finder's or other fee or commission in connection with this Agreement or the transactions contemplated by this Agreement based upon agreements made by or on behalf of the Acquired Corporation. IJL was retained by, and acted as financial advisor to, the Special Committee. IJL's fee for its financial advisory services is $65,000, plus certain expenses. VI. REPRESENTATIONS AND WARRANTIES OF ACQUIRING CORPORATION. 6.1 Organization, Standing and Qualification. The Acquiring Corporation is duly organized, validly existing and in good standing under the laws of Ohio, and has the corporate power to own all of its properties and assets and to carry on its business as it is now being conducted. 6.2 Authority for this Agreement. The Acquiring Corporation has full corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by the Acquiring Corporation and the consummation by the Acquiring Corporation of the transactions contemplated by this Agreement have been duly and validly authorized by the board of directors of the Acquiring Corporation and no other corporate proceeding on the part of the Acquiring Corporation is necessary to authorize this Agreement or to consummate the transactions contemplated by this Agreement. This Agreement has been duly and validly executed and delivered by the Acquiring Corporation and constitutes a valid and binding agreement of the Acquiring Corporation, enforceable against the Acquiring Corporation in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency and similar laws affecting creditors rights generally and subject to general principles of equity (whether considered in a proceeding in equity or at law). 6.3 Consents and Approvals; No Violation. Neither the execution and delivery of this Agreement by the Acquiring Corporation nor the consummation of the transactions contemplated by this Agreement will 7 61 (a) conflict with or result in a breach of any provision of the Amended Articles of Incorporation or Code of Regulations of the Acquiring Corporation; (b) require any consent, approval, authorization or permit of, or filing with or notification to, any governmental or regulatory authority, except pursuant to the Exchange Act; (c) result in a default (or give rise to any right of termination, cancellation or acceleration) under any of the terms of any obligation to which the Acquiring Corporation is a party or by which any of its assets may be bound, except for such defaults (or rights of termination, cancellation or acceleration) as to which requisite waivers or consents have been obtained or that would not materially and adversely affect the ability of the Acquiring Corporation to consummate the transactions contemplated by this Agreement; or (d) violate any order, writ, injunction, decree, statute, rule or regulation applicable to the Acquiring Corporation or any of its assets, except for violation that would not materially adversely affect the ability of the Acquiring Corporation to consummate the transactions contemplated by this Agreement. 6.4 Financing. The Acquiring Corporation has sufficient funds to enable it to satisfy its obligation to purchase the Plan Shares pursuant to this Agreement. 6.5 Litigation. There is no claim, action, proceeding or governmental investigation pending, or to the knowledge of the Acquiring Corporation, threatened against the Acquiring Corporation that, individually or in the aggregate, has had or could reasonably be expected to have a material adverse effect on the ability of the Acquiring Corporation to consummate the transactions contemplated by this Agreement or that in any manner seeks to enjoin the Exchange. 6.6 Brokers. No broker, finder or other investment banker is entitled to any brokerage, finder's or other similar fee or commission in connection with this Agreement or the transactions contemplated by this Agreement based upon agreements made by or on behalf of the Acquiring Corporation or its affiliates. VII. INDEMNIFICATION; INSURANCE. 7.1 Until the sixth anniversary of the Effective Time, the Acquired Corporation shall indemnify each of its officers, directors, employees or agents (the "Indemnified Parties") against all losses, claims, damages, liabilities, costs or expenses arising from his service as an officer, director, employee or agent prior to and including the Effective Time, and shall provide for the advancement of expenses incurred in defense of any action or suit, to the fullest extent required pursuant to the Acquired Corporation's articles of incorporation and bylaws as each is in effect on the date of this Agreement. If any claim is made against any of the Indemnified Parties on or prior to the sixth anniversary of the Effective Time arising from his service as an officer, director, employee or agent at or prior to the Effective Time, the provisions of this Section 7.1 shall continue in effect until the final disposition of all such claims. 7.2 Until the sixth anniversary of the Effective Time, the Acquired Corporation shall maintain, or cause to be maintained, in effect, at no expense to the beneficiaries thereof, directors' and officers' liability protection with respect to matters occurring at or prior to the Effective Time, providing the same coverage with respect to the Acquired Corporation's officers and directors as in effect on the date of this Agreement. 7.3 In the event the Acquired Corporation (i) consolidates with or merges into any other person and shall not be the continuing or surviving entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to any person, then and in each such case, proper provisions shall be made so that the successors and assigns of the Acquired Corporation shall assume the obligations of the Acquired Corporation in this Article VII. 8 62 VIII. NOTICES. All notices and other communications hereunder shall be in writing and shall be deemed given when delivered personally or via courier service or when received if mailed by registered mail, return receipt requested to the parties at the addresses indicated below: To Acquiring Corporation: The Goodyear Tire & Rubber Company 1144 East Market Street Akron, Ohio 44316-0001 Attn: Clark E. Sprang, Vice President To Acquired Corporation: Brad Ragan, Inc. Post Office Box 240587 Charlotte, North Carolina 28224 Attn: Michael R. Thomann, President Copy to: Womble, Carlyle, Sandridge & Rice, PLLC 3300 One First Union Center Charlotte, North Carolina 28202 Attn: Garza Baldwin, III, Esq. and Robinson, Bradshaw & Hinson, P.A. 101 North Tryon Street, Suite 1900 Charlotte, North Carolina 28246 Attn: Robin L. Hinson, Esq.
IX. MISCELLANEOUS. 9.1 Governing Law. This Agreement shall be interpreted, construed and enforced under and in accordance with the laws of the State of North Carolina. 9.2 Binding Agreement. This Agreement shall be binding on and shall inure to the benefit of the parties to this Agreement. Obligations undertaken by the parties may not be assigned or delegated without the written consent of the other party hereto and nothing herein shall be construed to create any rights enforceable by any other person (except in the case of Sections 2.1 and 2.2 after the Effective Time). 9.3 Counterpart Originals. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, as long as one or more counterparts shall have been signed by each of the parties and delivered to the other. 9.4 Entire Agreement. This Agreement embodies the entire agreement and understanding between the parties, superseding all prior agreements and understandings between them relating to the subject matter of this Agreement. 9.5 Amendments. This Agreement may be amended only by the written agreement of both parties hereto. IN WITNESS WHEREOF, the parties hereto have caused this Agreement and Plan of Share Exchange to be duly executed by their respective officers thereunto duly authorized as of the dates indicated below. 9 63 DATED: May 5, 1998 THE GOODYEAR TIRE & RUBBER COMPANY Attest: By: - ---------------------------------------------- ------------------------------------------------- James Boyazis, Secretary George E. Strickler, Vice President DATED: May 5, 1998 BRAD RAGAN, INC. Attest: By: ---------------------------------------------- ---------------------------------------------- Ronald J. Carr, Secretary Michael R. Thomann, President
10 64 [GOODYEAR LETTERHEAD] September 15, 1998 Brad Ragan, Inc. Post Office Box 240587 Charlotte, North Carolina 28224 Attention: William P. Brophey, President Re: Share Exchange Agreement, dated May 5, 1998, between The Goodyear Tire & Rubber Company and Brad Ragan, Inc. (the "Share Exchange Agreement") Dear Mr. Brophey: The purpose of this letter is to evidence our agreement to amend and restate the third sentence of Section 4.3 of the Share Exchange Agreement so that it reads as follows: "The Plan and the Exchange shall terminate if for any reason the transactions contemplated herein shall not have occurred by November 18, 1998." Capitalized terms used but not defined herein shall have the meanings given to them in the Share Exchange Agreement. Please sign below where indicated to acknowledge your receipt and acceptance of this letter. Sincerely, The Goodyear Tire & Rubber Company By: ------------------------------------ George E. Strickler, Vice President Accepted and agreed to this 15th day of September, 1998. Brad Ragan, Inc. By: -------------------------------------------------------- William P. Brophey, President 65 ANNEX III FORM OF ARTICLES OF AMENDMENT OF BRAD RAGAN, INC. Pursuant to Sections 55-6-02 and 55-10-06 of the North Carolina General Statutes, the undersigned corporation hereby submits these Articles of Amendment for the purpose of amending its articles of incorporation to provide that holders of the corporation's shares shall have dissenters' rights pursuant to Section 5-13-02 of the North Carolina General Statutes: 1. The name of the corporation is Brad Ragan, Inc. 2. The following amendment to the articles of incorporation was adopted by the corporation's shareholders on , 1998 in the manner prescribed by law: Add as new Article XII the following: XII Notwithstanding that a class or series of shares of the corporation may be listed on a national securities exchange or held of record by more than 2,000 shareholders, holders of such shares shall be entitled to dissent and obtain payment for their shares pursuant to and as provided under Article 13 of Chapter 55 of the North Carolina General Statutes. 3. The above amendment is effective upon the filing of these Articles of Amendment. This the day of , 1998. BRAD RAGAN, INC. By: ------------------------------------ William P. Brophey, Chief Executive Officer and President 66 ANNEX IV ARTICLE 13. DISSENTERS' RIGHTS. PART 1. RIGHT TO DISSENT AND OBTAIN PAYMENT FOR SHARES SEC. 55-13-01. DEFINITIONS In this Article: (1) "Corporation" means the issuer of the shares held by a dissenter before the corporate action, or the surviving or acquiring corporation by merger or share exchange of that issuer. (2) "Dissenter" means a shareholder who is entitled to dissent from corporate action under G.S. 55-13-02 and who exercises that right when and in the manner required by G.S. 55-13-20 through 55-13-28. (3) "Fair value", with respect to a dissenter's shares, means the value of the shares immediately before the effectuation of the corporate action to which the dissenter objects, excluding any appreciation or depreciation in anticipation of the corporate action unless exclusion would be inequitable. (4) "Interest" means interest from the effective date of the corporate action until the date of payment, at a rate that is fair and equitable under all the circumstances, giving due consideration to the rate currently paid by the corporation on its principal bank loans, if any, but not less than the rate provided in G.S. 24-1. (5) "Record shareholder" means the person in whose name shares are registered in the records of a corporation or the beneficial owner of shares to the extent of the rights granted by a nominee certificate on file with a corporation. (6) "Beneficial shareholder" means the person who is a beneficial owner of shares held in a voting trust or by a nominee as the record shareholder. (7) "Shareholder" means the record shareholder or the beneficial shareholder. SEC. 55-13-02. RIGHT TO DISSENT (a) In addition to any rights granted under Article 9, a shareholder is entitled to dissent from, and obtain payment of the fair value of his shares in the event of, any of the following corporate actions: (1) Consummation of a plan of merger to which the corporation (other than a parent corporation in a merger under G.S. 55-11-04) is a party unless (i) approval by the shareholders of that corporation is not required under G.S. 55-11-03(g) or (ii) such shares are then redeemable by the corporation at a price not greater than the cash to be received in exchange for such shares; (2) Consummation of a plan of share exchange to which the corporation is a party as the corporation whose shares will be acquired, unless such shares are then redeemable by the corporation at a price not greater than the cash to be received in exchange for such shares; (3) Consummation of a sale or exchange of all, or substantially all, of the property of the corporation other than as permitted by G.S. 55-12-01, including a sale in dissolution, but not including a sale pursuant to court order or a sale pursuant to a plan by which all or substantially all of the net proceeds of the sale will be distributed in cash to the shareholders within one year after the date of sale; (4) An amendment of the articles of incorporation that materially and adversely affects rights in respect of a dissenter's shares because it (i) alters or abolishes a preferential right of the shares; (ii) creates, alters, or abolishes a right in respect of redemption, including a provision respecting a sinking fund for the redemption or repurchase, of the shares; (iii) alters or abolishes a preemptive right of the holder of the shares to acquire shares or other securities; (iv) excludes or limits the right of the shares to vote on any matter, or to cumulate votes; (v) reduces the number of shares owned by the shareholder to a fraction of a share if the fractional 67 share so created is to be acquired for cash under G.S. 55-6-04; or (vi) changes the corporation into a nonprofit corporation or cooperative organization; (5) Any corporate action taken pursuant to a shareholder vote to the extent the articles of incorporation, bylaws, or a resolution of the board of directors provides that voting or nonvoting shareholders are entitled to dissent and obtain payment for their shares. (b) A shareholder entitled to dissent and obtain payment for his shares under this Article may not challenge the corporate action creating his entitlement, including without limitation a merger solely or partly in exchange for cash or other property, unless the action is unlawful or fraudulent with respect to the shareholder or the corporation. (c) Notwithstanding any other provision of this Article, there shall be no right of dissent in favor of holders of shares of any class or series which, at the record date fixed to determine the shareholders entitled to receive notice of and to vote at the meeting at which the plan of merger or share exchange or the sale or exchange of property is to be acted on, were (i) listed on a national securities exchange or (ii) held by at least 2,000 record shareholders, unless in either case: (1) The articles of incorporation of the corporation issuing the shares provide otherwise; (2) In the case of a plan of merger or share exchange, the holders of the class or series are required under the plan of merger or share exchange to accept for the shares anything except: a. Cash; b. Shares, or shares and cash in lieu of fractional shares of the surviving or acquiring corporation, or of any other corporation which, at the record date fixed to determine the shareholders entitled to receive notice of and vote at the meeting at which the plan of merger or share exchange is to be acted on, were either listed subject to notice of issuance on a national securities exchange or held of record by at least 2,000 record shareholders; or c. A combination of cash and shares as set forth in sub-subdivisions a. and b. of this subdivision. SEC. 55-13-03. DISSENT BY NOMINEES AND BENEFICIAL OWNERS (a) A record shareholder may assert dissenters' rights as to fewer than all the shares registered in his name only if he dissents with respect to all shares beneficially owned by any one person and notifies the corporation in writing of the name and address of each person on whose behalf he asserts dissenters' rights. The rights of a partial dissenter under this subsection are determined as if the shares as to which he dissents and his other shares were registered in the names of different shareholders. (b) A beneficial shareholder may assert dissenters' rights as to shares held on his behalf only if: (1) He submits to the corporation the record shareholder's written consent to the dissent not later than the time the beneficial shareholder asserts dissenters' rights; and (2) He does so with respect to all shares of which he is the beneficial shareholder. SEC.SEC. 55-13-04 TO 55-13-19: RESERVED FOR FUTURE CODIFICATION PURPOSES. PART 2. PROCEDURE FOR EXERCISE OF DISSENTERS' RIGHTS SEC. 55-13-20. NOTICE OF DISSENTERS' RIGHTS (a) If proposed corporate action creating dissenters' rights under G.S. 55-13-02 is submitted to a vote at a shareholders' meeting, the meeting notice must state that shareholders are or may be entitled to assert dissenters' rights under this Article and be accompanied by a copy of this Article. 2 68 (b) If corporate action creating dissenters' rights under G.S. 55-13-02 is taken without a vote of shareholders, the corporation shall no later than 10 days thereafter notify in writing all shareholders entitled to assert dissenters' rights that the action was taken and send them the dissenters' notice described in G.S. 55-13-22. (c) If a corporation fails to comply with the requirements of this section, such failure shall not invalidate any corporate action taken; but any shareholder may recover from the corporation any damage which he suffered from such failure in a civil action brought in his own name within three years after the taking of the corporate action creating dissenters' rights under G.S. 55-13-02 unless he voted for such corporate action. SEC. 55-13-21. NOTICE OF INTENT TO DEMAND PAYMENT (a) If proposed corporate action creating dissenters' rights under G.S. 55-13-02 is submitted to a vote at a shareholders' meeting, a shareholder who wishes to assert dissenters' rights: (1) Must give to the corporation, and the corporation must actually receive, before the vote is taken written notice of his intent to demand payment for his shares if the proposed action is effectuated; and (2) Must not vote his shares in favor of the proposed action. (b) A shareholder who does not satisfy the requirements of subsection (a) is not entitled to payment for his shares under this Article. SEC. 55-13-22. DISSENTERS' NOTICE (a) If proposed corporate action creating dissenters' rights under G.S. 55-13-02 is authorized at a shareholders' meeting, the corporation shall mail by registered or certified mail, return receipt requested, a written dissenters' notice to all shareholders who satisfied the requirements of G.S. 55-13-21. (b) The dissenters' notice must be sent no later than 10 days after the corporate action was taken, and must: (1) State where the payment demand must be sent and where and when certificates for certificated shares must be deposited; (2) Inform holders of uncertificated shares to what extent transfer of the shares will be restricted after the payment demand is received; (3) Supply a form for demanding payment; (4) Set a date by which the corporation must receive the payment demand, which date may not be fewer than 30 nor more than 60 days after the date the subsection (a) notice is mailed; and (5) Be accompanied by a copy of this Article. SEC. 55-13-23. DUTY TO DEMAND PAYMENT (a) A shareholder sent a dissenters' notice described in G.S. 55-13-22 must demand payment and deposit his share certificates in accordance with the terms of the notice. (b) The shareholder who demands payment and deposits his share certificates under subsection (a) retains all other rights of a shareholder until these rights are cancelled or modified by the taking of the proposed corporate action. (c) A shareholder who does not demand payment or deposit his share certificates where required, each by the date set in the dissenters' notice, is not entitled to payment for his shares under this Article. SEC. 55-13-24. SHARE RESTRICTIONS (a) The corporation may restrict the transfer of uncertificated shares from the date the demand for their payment is received until the proposed corporate action is taken or the restrictions released under G.S. 55-13-26. 3 69 (b) The person for whom dissenters' rights are asserted as to uncertificated shares retains all other rights of a shareholder until these rights are cancelled or modified by the taking of the proposed corporate action. SEC. 55-13-25. PAYMENT (a) As soon as the proposed corporate action is taken, or within 30 days after receipt of a payment demand, the corporation shall pay each dissenter who complied with G.S. 55-13-23 the amount the corporation estimates to be the fair value of his shares, plus interest accrued to the date of payment. (b) The payment shall be accompanied by: (1) The corporation's most recent available balance sheet as of the end of a fiscal year ending not more than 16 months before the date of payment, an income statement for that year, a statement of cash flows for that year, and the latest available interim financial statements, if any; (2) An explanation of how the corporation estimated the fair value of the shares; (3) An explanation of how the interest was calculated; (4) A statement of the dissenter's right to demand payment under G.S. 55-13-28; and (5) A copy of this Article. SEC. 55-13-26. FAILURE TO TAKE ACTION (a) If the corporation does not take the proposed action within 60 days after the date set for demanding payment and depositing share certificates, the corporation shall return the deposited certificates and release the transfer restrictions imposed on uncertificated shares. (b) If after returning deposited certificates and releasing transfer restrictions, the corporation takes the proposed action, it must send a new dissenters' notice under G.S. 55-13-22 and repeat the payment demand procedure. SEC. 55-13-27: RESERVED FOR FUTURE CODIFICATION PURPOSES SEC. 55-13-28. PROCEDURE IF SHAREHOLDER DISSATISFIED WITH CORPORATION'S PAYMENT OR FAILURE TO PERFORM (a) A dissenter may notify the corporation in writing of his own estimate of the fair value of his shares and amount of interest due, and demand payment of the amount in excess of the payment by the corporation under G.S. 55-13-25 for the fair value of his shares and interest due, if: (1) The dissenter believes that the amount paid under G.S. 55-13-25 is less than the fair value of his shares or that the interest due is incorrectly calculated; (2) The corporation fails to make payment under G.S. 55-13-25; or (3) The corporation, having failed to take the proposed action, does not return the deposited certificates or release the transfer restrictions imposed on uncertificated shares within 60 days after the date set for demanding payment. (b) A dissenter waives his right to demand payment under this section unless he notifies the corporation of his demand in writing (i) under subdivision (a)(1) within 30 days after the corporation made payment for his shares or (ii) under subdivisions (a)(2) and (a)(3) within 30 days after the corporation has failed to perform timely. A dissenter who fails to notify the corporation of his demand under subsection (a) within such 30-day period shall be deemed to have withdrawn his dissent and demand for payment. 4 70 SEC. 55-13-29: RESERVED FOR FUTURE CODIFICATION PURPOSES PART 3. JUDICIAL APPRAISAL OF SHARES SEC. 55-13-30. COURT ACTION (a) If a demand for payment under G.S. 55-13-28 remains unsettled, the dissenter may commence a proceeding within 60 days after the earlier of (i) the date payment is made under G.S. 55-13-25, or (ii) the date of the dissenter's payment demand under G.S. 55-13-28 and petition the court to determine the fair value of the shares and accrued interest. A dissenter who takes no action within the 60-day period shall be deemed to have withdrawn his dissent and demand for payment. (b) Reserved for future codification purposes. (c) The court shall have the discretion to make all dissenters (whether or not residents of this State) whose demands remain unsettled parties to the proceeding as in an action against their shares and all parties must be served with a copy of the petition. Nonresidents may be served by registered or certified mail or by publication as provided by law. (d) The jurisdiction of the court in which the proceeding is commenced under subsection (b) is plenary and exclusive. The court may appoint one or more persons as appraisers to receive evidence and recommend decision on the question of fair value. The appraisers have the powers described in the order appointing them, or in any amendment to it. The parties are entitled to the same discovery rights as parties in other civil proceedings. However, in a proceeding by a dissenter in a public corporation, there is no right to a trial by jury. (e) Each dissenter made a party to the proceeding is entitled to judgment for the amount, if any, by which the court finds the fair value of his shares, plus interest, exceeds the amount paid by the corporation. SEC. 55-13-31. COURT COSTS AND COUNSEL FEES (a) The court in an appraisal proceeding commenced under G.S. 55-13-30 shall determine all costs of the proceeding, including the reasonable compensation and expenses of appraisers appointed by the court, and shall assess the costs as it finds equitable. (b) The court may also assess the fees and expenses of counsel and experts for the respective parties, in amounts the court finds equitable: (1) Against the corporation and in favor of any or all dissenters if the court finds the corporation did not substantially comply with the requirements of G.S. 55-13-20 through 55-13-28; or (2) Against either the corporation or a dissenter, in favor of either or any other party, if the court finds that the party against whom the fees and expenses are assessed acted arbitrarily, vexatiously, or not in good faith with respect to the rights provided by this Article. (c) If the court finds that the services of counsel for any dissenter were of substantial benefit to other dissenters similarly situated, and that the fees for those services should not be assessed against the corporation, the court may award to these counsel reasonable fees to be paid out of the amounts awarded the dissenters who were benefited. 5 -----END PRIVACY-ENHANCED MESSAGE-----