HEY MALCOLM AND ALL
Looks as if Jurick took offer.Look at this,
Emerson Radio CEO to Sell 60% Stake to Oaktree and Grossman
Parsippany, New Jersey (Bloomberg) -- Emerson Radio Corp., a maker of home electronics products, said Oaktree Capital Management LLC and Kenneth Grossman agreed to buy a controlling stake from Chairman and Chief Executive Geoffrey Jurick for $14.6 million in cash.
Oaktree, a Los Angeles-based investment partnership, and Grossman, a New York investor, will pay 50 cents a share for 29 million shares, or 60 percent of Emerson's stock. In a May filing with the U.S. Securities and Exchange Commission, Oaktree and Grossman said they might seek control of Emerson, a maker of VCRs, camcorders, microwave ovens, clock radios and carbon monoxide detectors with 1997 sales of almost $179 million.
Emerson shares rose 1/8 to 1/2 on trading of 1.35 million, about 23 times their three-month daily average.
Proceeds from the stock sale will go to Jurick's predecessor as chairman, Donald Stelling, and several other claimants. Parsippany, New Jersey-based Emerson sued Stelling after he resigned in December 1993 and withdrew financial support from the company while it was under Chapter 11 bankruptcy protection. Stelling counter-sued and won the proceeds from Jurick's future stock sales in a June 1996 court settlement.
Emerson shares have traded below 1 for the past year, falling from a high of 3 3/4 in August 1995. Oaktree Capital and Grossman are looking into a possible restructuring of the company's balance sheet to boost shareholder returns, Chief Financial Officer John Walker said. |
