Big Flower Holdings(BGF)-The next CMGI? Message Board

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Technology Stocks : Big Flower Holdings(BGF)-The next CMGI?

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To: JPhilipS who wrote (62)	6/30/1999 5:46:00 AM
From: Davo M	Read Replies (1) of 66

It's Still Confusing! NEW YORK (CBS.MW) -- Big Flower Holdings Inc. agreed to be sold to a group led by Boston buyout firm Thomas H. Lee Co. in a complex deal that values Big Flower's shares at about $890 million. Big Flower, a New York-based provider of advertising and marketing services, including newspaper inserts and direct-mail services, had revenue of about $1.7 billion in 1998. Big Flower (BGF: news, msgs) fell by 3 15/16 to 31 9/16 on Tuesday, partly on investor confusion about the deal's valuation. Under the terms of the agreement, each share of Big Flower will be exchanged for $30 in cash, plus preferred stock with a face value of $5.25. The preferred stock, scheduled to be redeemed in 2012, will accrue 10 percent annual dividends. Shareholders also will get warrants to purchase 5 percent of the new company's stock for one cent per share. The acquiring group also will assume about $600 million of Big Flower's nearly $1 billion in existing debt, according to a person familiar with the deal, and will refinance the rest.

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