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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Jack of All Trades who wrote (4728)	5/13/1998 2:41:00 PM
From: Rande Is	Respond to of 29382

[GTOS] GANTOS MERGER WITH HIT OR MISS. News out on Reuters. Wednesday May 13, 12:27 pm Eastern Time Gantos to acquire Hit or Miss STAMFORD, Conn., May 13 (Reuters) - Retailer Gantos Inc. said Wednesday it has agreed to acquire HOM Holding Inc., the sole stockholder of women's clothing store Hit or Miss Inc. Gantos said in a statement it would acquire Hit or Miss for an aggregate of about 7.4 million shares of its common stock and warrants to purchase 1.25 million shares of Gantos common stock for $1.50 per share. The warrants would not be immediately exercisable, Gantos said. Access Capital Partners L.P., HOM Holding's principal stockholder, will receive about 7 million shares, or about 47 percent of the surviving corporation. Additionally, upon exercise of any warrants, Access Capital and affiliated entities will have about 8.2 million shares, or about half of the issued and outstanding common shares. The surviving corporation will be called Gantos Inc. Its board will be made up of three nominees of HOM Holding and four continuing board members of Gantos. Hit or Miss will be operated as a separate subsidiary of Gantos, the company said. If the merger agreement is terminated or the merger is not consummated, Gantos or HOM Holding may be entitled to a fee. In connection with the merger, the parties have received a proposal, which has received credit committee approval, to refinance the working capital facilities of Gantos and Hit or Miss into a combined $60 million facility.