Reported by Star-Bulletin staff & wire
Monday, March 9, 1998
Lockheed, Northrop say Justice opposes merger
BALTIMORE - A proposed $8.3 billion merger between two of the nation's largest defense contractors may be in trouble.Lockheed Martin Corp. and Northrop Grumman Corp. said early today in a joint statement that the Department of Justice is "fundamentally opposed" to the merger, first announced in July.
The department would not comment on the statement, but Northrop Grumman's stock fell sharply on the setback.
A Lockheed spokesman said the companies' understanding of the Justice Department's stance came from weekend meetings with senior officials of that department and the Department of Defense.
Aluminum Co. to buy Alumax for $3.8 billion
PITTSBURGH -- Aluminum Co. of America signed a definitive agreement to acquire Alumax Inc. for cash and stock in a transaction valued at about $3.8 billion, including debt assumption.Alcoa, the world's largest aluminum producer, said it will begin the transaction with a $50-a-share cash offer for one-half Alumax's shares. If all those shares are tendered, the cash portion of the deal will equal $1.39 billion.
The price is a significant premium to Alumax's Friday closing price of $36.683/4 on the New York Stock Exchange.
In the second step, all remaining Alumax shares will be converted into 0.6975 shares of Alcoa. The combined company will have $17 billion in estimated 1998 revenues and about 100,000 employees.
3Com Corp. to update PalmPilot computer
3Com Corp. planned to introduce an updated version of its wildly popular PalmPilot handheld organizer today, a move calculated to fend off a phalanx of new devices based on Microsoft Corp.'s Windows CE operating system.The Palm III features more memory, a slightly slimmer design and more robust software than the PalmPilot, which has sold more than 1.5 million copies since its introduction in the spring of 1996.
With more than 60 percent of the market for handheld computers, the PalmPilot has become one of the most successful new electronics gadgets in history. Small enough to fit in a shirt pocket, it is a favorite of traveling executives, who use it to keep track of contacts and appointments.
Qwest to purchase LCI International
DENVER -- Qwest Communications International Inc. agreed to buy LCI International Inc. for $4.4 billion in stock, making it the fourth-largest U.S. long-distance phone company.Qwest, a startup company, will pay LCI holders $42 in Qwest stock for each LCI share, a 22 percent premium to Friday's closing price of $34.371/2. LCI holders will own 36.4 percent of the combined companies. The combined companies will have more than 2 million customers and $2.3 billion in annual sales. In addition to the new customer base, Qwest gets LCI's marketing and customer-care expertise.
The combined companies will be based in Denver.