normally, i dont like consolidation of customers as it tends to squeeze margins...but the financial constraint the domestic operators are facing, i prefer consolidation and seeing top line growth opportunities for GEMS than the former
cheers
News Alert from Washington Business Journal via Quote.com
Topic: Paging Network Inc
Quote.com News Item #3814047
Headline: News Digest
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Metrocall buying ProNet
Metrocall Inc., Alexandria, said it will buy rival ProNet Inc. of
Dallas for about $75 million in stock and the assumption of $170
million in debt.
The deal, which must get shareholder and regulatory approval, would
make Metrocall the nation's second-largest paging company, with 4
million subscribers. Paging Network Inc., another Texas company, is
the largest company in that industry, with 9 million subscribers.
The paging industry has seen considerable consolidation over the
past two years as competition has squeezed margins. Stocks of paging
companies have also been beaten up as new wireless companies
threaten the market with more sophisticated equipment.
Consequently, Metrocall has been on a buying spree. In addition to
the proposed purchase of ProNet, Metrocall bought five paging
companies last year.
Metrocall Chief Executive Officer William L. Collins III also heads
the Virginia Baseball Club, which is trying to bring Major League
Baseball to Northern Virginia.
Dynamics makes $1B bid
General Dynamics of Falls Church is reportedly the front-runner to
buy United Defense LP, an Arlington-based partnership that makes
military vehicles.
General Dynamics has bid $1 billion for United Defense, topping
offers from Carlyle Group of D.C. and Alliant Techsystems in
Hopkins, Minn., according to The Wall Street Journal. The auction is
expected to be concluded soon.
If General Dynamics wins the bidding, the acquisition likely will
come under heavy antitrust scrutiny. The huge defense contractor
would be the only U.S. manufacturer of military vehicles that move
on tracks.
None of the companies would comment.
First Union faces suits
U.S. District Judge Royce C. Lamberth certified two sets of class
action claims against First Union alleging age discrimination,
resulting from the bank's purchase of D.C.-based First American
Bankshares in 1992 and 1993.
Charlotte, N.C.-based First Union, which acquired First American for
$453 million, has refused to settle. First Union had fired 1,100 of
First American's 3,000 employees six months after the deal closed.
One of the suits claims that 93 employees over the age of 40 were
fired between May 1993 and December 1994. They were tellers, branch
managers and loan officers. Another 1,500 people, also over 40, were
allegedly turned down for new jobs over the same period.
The trial is tentatively set for October, but First Union has asked
for more time to prepare. |
