Allied Signal in $9.8 billion hostile bid in electronics

Article Abstract:

Allied Signal opened an unsolicited $9.8 billion cash offer, or $44.50 a share, for struggling electronics connectors manufacturer AMP. The offer will take effect on Aug 10, 1998, unless AMP management agrees to negotiate a friendly deal, according to Allied's Chmn and CEO Larry Bossidy. Allied Signal's move amounts to a 55% premium over AMP's closing price on Jul 31, 1998. AMP announced in Jul 1998 that a weak Asian economy was forcing it to shutter a Pennsylvania plant as well as eliminate 3,000 positions by 2000. Asia represented 20% of 1997 sales for AMP, which employs 48,300 workers in 53 countries. Financial underwriting of Allied Signal's proposal would come from the sale of $2 billion worth of its assets and a $1.5 billion equity offering, according to Bossidy. The equity offering would cover the bid's dilution of Allied Signal earnings by 27 cents a share, Bossidy added.

Telephone and telegraph apparatus, Telephone Apparatus Manufacturing, Local Area Network Equip, Management, Company acquisition/merger, Local area networks, ALD, AMP, Bossidy, Lawrence A.

---

Allied Signal in $9.8 billion hostile bid in electronics

Article Abstract:

AMP Inc., an electronics connectors maker, has not responded to Allied Signals' $9.8 billion unsolicited bid. Industry analysts said that AMP, which recently announced the closure of a Pennsylvania factory, would be an appropriate acquisition for Allied Signals, a maker of aerospace and automotive products. The hostile takeover offer was referred to AMP's board for consideration after Allied made several overtures to AMP management. Allied, in a defensive move, filed a court petition to keep to keep its bid alive.

Comment:

Has offered a $9.8 bil unsolicited bid to AMP Inc.

Diversified Companies, Company Planning/Goals, Other Electrical Equipment and Component Manufacturing, Electronic Components, Article

---

Ascend to sell Stratus unit to Investcorp

Article Abstract:

Ascend Communications Inc. sold the first of several units that it bought as Stratus Computer Inc. in October 1998. Investcorp will buy the Stratus Enterprise Computer Division for over $100 million, a segment of the technology that is not part of Ascend's communications equipment core business. The purchase by the Middle Eastern investment firm might signal a change from the reluctance of financial buyers to get into high technology. Alameda, Calif.-based Ascend will announce two additional units for sale soon.

Comment:

Investment group to buy server company from Ascend for $100 million

Electronic computers, Electronic Computer Manufacturing, Dedicated Computers, Communications servers, Abstract, Servers (Computers), Investcorp Bank B.S.C., Ascend Communications Inc., ASND

Similar abstracts:

• Abstracts: TCI takes back $125 million stake in Microsoft Network as strategies shift. Microsoft picks on-line news from PointCast
• Abstracts: Cognitive mechanisms in entrepreneurship: why and when entrepreneurs think differently than other people. Counterfactual thinking and venture formation: the potential effects of thinking about "what might have been."
• Abstracts: Silicon Valley lobs populist ads in encryption battle. U.S. to allow coalition of companies to export new encryption technology
• Abstracts: A new direction for the global Coke machine. Love thy labor. Shake-up back at head office
• Abstracts: Classic cartoons take an interactive turn. Bringing extra passion to a fine romance. Web sales fill gap left by software stores

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.