Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (5451)	12/17/1997 8:03:00 AM
From: Bob A Louie	Read Replies (1) \| Respond to of 95453

MF analysis of EVI acquisition: Christiana Companies (NYSE: CST) dropped $3 3/4 to $37 3/8 after the freight logistics and warehousing company agreed to merge with oilfield equipment manufacturer EVI Inc. (NYSE: EVI). Christiana shareholders will receive 0.72 shares of EVI for each Christiana share, plus approximately $5 per share in cash and a contingent right to receive $1.85 per share in cash in five years. The total package valued Christiana at $35.80 per share (discounting the variable rights at 11% per year) as of last night's close --13% below its closing price. What's great for EVI is that there won't be a net issuance of shares in the transaction, since Christiana already owns 3.9 million shares of EVI, which equals the number of shares it proposes to issue in the merger. Christiana will also sell its principal operating subsidiary, Total Logistic Control, to a newly formed corporation in which its shareholders may buy shares. EVI will retain a one-third interest in that company, meaning that it is buying back shares worth $161 million for only $140 million and getting a chunk of this logistics unit for what is basically a cost basis of negative $21 million.