Amid Takeover Talk, National Media Aims To Improve
Dow Jones News Service ~ April 28, 1997 ~ 3:35 pm EST
By Lynnette Khalfani
PHILADELPHIA (Dow Jones)--National Media Corp. (NM), the infomercial giant that has bled red ink in
recent months, is moving to reverse its descending fortunes amid heightened takeover speculation.
National Media on Monday announced a slew of changes that observers said should help the struggling
Philadelphia-based company get back on track.
For starters, National Media said it expects to report a loss in both the fourth quarter and fiscal year ended
March 31 due to ''slower-than-expected'' business improvement. It's the second quarter in a row that the
company has announced a loss.
Additionally, National Media said it named Robert Verratti as president and chief executive and hired
Lehman Brothers Inc. to review various strategic alternatives.
Though Wall Street didn't react terribly favorably to all of the news - investors sent National Media's
stock down as much as 16% to 6 5/8 - analysts generally applauded Verratti's appointment.
''Verratti is known to be a turnaround specialist good at controlling costs,'' said Rauscher Pierce Refsnes
Inc. analyst George Sutton.
Observers also noted that the appointment of Verratti means National Media's largest beneficial
shareholder, Safeguard Scientifics Inc. (SFE), is taking an increasingly active role in the company. Most
recently, Verratti was a special adviser for acquisitions to Warren ''Pete'' Musser, the chairman and chief
executive of Safeguard Scientifics.
Safeguard Scientifics, a Wayne, Pa., firm that strategically invests in technology-driven growth
companies, has a 15% stake in National Media. Currently, four Safeguard executives - including Musser -
are members of National Media's board, industry watchers said.
''It looks like Safeguard is taking hold of this company. I'm sure they have not been thrilled with National
Media's performance,'' said Terence McEvoy, an analyst with Janney Montgomery Scott Inc.
Verratti wasn't immediately available for comment. National Media executives said Verratti will officially
assume his duties in a week or two.
National Media delivers infomercials to 364 million television households in 70 countries.
DOW JONES NEWS 04-28-97
3:34 PM |
