Platter., More info on EVI...
Christiana EVI Weatherford Merger Approved by
Stockholders; Closing Delayed Pending Floor Price of $30
for EVI Shares
Business Wire - August 17, 1998 11:50
MILWAUKEE--(BUSINESS WIRE)--Aug. 17, 1998--Christiana Companies Inc. (NYSE:CST)and EVI Weatherford Inc. (NYSE:EVI) today announced their respective stockholders approved EVI Weatherford's acquisition of Christiana, which currently owns approximately 3,900,000 shares of EVI Weatherford's common stock. Upon completion of the merger EVI will immediately retire those shares resulting in no change in EVI's total number of outstanding shares.
Due to the recent decline in the value of EVI Weatherford's share price, the merger transaction has been postponed until the conditions are met for Christiana's shareholders to not recognize any gain or loss on their exchange of Christiana shares for EVI common stock in the merger. To meet this requirement, EVI Weatherford's stock price must be approximately $30 per share. All other conditions required to complete the merger have been satisfied.
"The postponement is solely due to a technical requirement under the Internal Revenue Code of 1986,which requires at least 80 percent of the amount payable to the Christiana shareholders in the merger be in the form of shares of EVI common stock," said William T. Donovan, president of Christiana.
"Christiana has estimated that to meet this condition, EVI's stock price must be approximately $30 per share on the date of closing."
Donovan added that the deadline for completing the merger is Oct. 31, 1998, after which time either party may terminate the agreement if conditions have not been met. Currently, both companies are monitoring EVI's stock price and will close the merger on or prior to Oct. 31, 1998, if it exceeds $30 per share and all other requirements remain satisfied. After Oct. 31, 1998 either EVI or Christiana may, but will not be required to, terminate the merger agreement.
Donovan also announced that C2 Inc. has received subscriptions for its stock from Christiana shareholders. As previously announced, Christiana shareholders were given an opportunity to purchase shares in C2, which will use $10.67 million of its funds to purchase a 2/3 interest in Total Logistic Control, LLC. The subscription agreements will be funded by cash received by Christiana shareholders in the EVI merger transaction and by additional amounts submitted by subscribing Christiana shareholders. Completion of the funding of C2 is expected to occur with the closing of the
Christiana/EVI merger transaction.
CONTACT: Christiana Companies Inc.
William T. Donovan, 414/291-9000
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