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Show National Enterprise Page 3 Mergers A Solution to Corporate Problems by Hugh Bradford mental agencies, such would GE a a give GE want to decided advantage over Com- with Utah International merge bustion Engineering and part- DuPont with Shenandoah Oil, icularly Westinghouse which Crystal Oil with Argentine is already short to the utilities Mining, or Keystone Valve by 60 to 80 million pounds of (now Keystone International) U308. at the same time, with Systems Engineering Co. certain of Utah Internationals In each case it is, or was, the control shareholders would be most practical solution to a afforded liquidity for their take a Lets brief problem. shares. look at each of these examples. DuPont being a major GE is one of the biggest chemical company requires Why would builders of nuclear energy plants. As such, it competes Westinghouse and Com- bustion Engineering for turn- key contracts on these instal- lations, including the nuclear fuel required by such instal- lations. Utah International is one of the largest producers of uranium in addition to other highly profitable mining activ- ities. If permitted by govern- - t substantial petrochemical raw materials. Petrochemicals are derived from oil and gas which are headed for higher prices in coming years, if not shortages Therefore, DuPont, like W.R. Grace, recognizes that by acquiring a fairly substantial independent oil and gas com- pany with both oil and gas reserves, as well as exploration know-how. INVESTING IN THE GREAT NORTHWEST. H THE GREAT NORTHWEST Is a new approach to Investment guidance, bringing together in 320 entertaining and readable pages Information indispensible to any businessman Interested in this region. Discusses over 200 public companies With over 2 billion shares of stock Over $30 billion annual sales Paying over $1 billion annual dividends and Interest HANNON F. PRATT la EdRor of North! Mock Quito, uyndlctod oohaonM oo NorthwpO hMNHn Md wcogntod oiport on ooipowto uaton. to tiolto a doctoraM In town Indiana Unlvonlty, la a Chartarad Financial Anatyal and a a BhtoMtol BU-iNwitoH OP 900 Bto. oiofty woo Miwior of Mo Invootoioffl Anatytfa Conlor ot Porttood ffoli U. A mo al unuaualboefc. A had biaalitng artort irtHi Itiyortam maUrrt to. aeonomte aopMaHcalaa an wad aa nmalaur Invaalnra1 Rahart land, aua r, Tha ORCOONIAN. no ewnen ne npiy isiioni wnj im nonmieM news usmiiii w n ba a aound and Brewing raglon tor Intaatinaimunda-Thara'anawaaola dlaagrea." Dan CoughHn. daaMa. $9.95 Hard Cover $&95 Soft Cover AVAILABLE AT MOST BOOK ORDER TODAY STORES OR ORDER FROM: Mdnagtnwnl Addocldtdd, Inc. 220 S. W. Alder Stnet Portl and, OR 97204 PtddM send me copltd of INVESTING WlllRiTwttR I IN THE GREAT NORTHWEST: In hard cover LAWRENCE R. ROSS la a nadanady known oocurty mtyal and IlnancW and apao Dfoctof of Ro$aif($ (wi Norvmew peo sraieiifi nei fofanunibarofyoaraHaloainwwfcar of fha Dwwor lockty of Iscurty Anafyatoandhaahod90yoorooipoif onoa In Ma Invaotoanf kualnaoa w nommmiwmrmvmBoon, mssuny i In I $9-9- plud 504 I mailing each. soft cover 96.95 plus 50( mailing each. Name Address I City I in IF Rico Argentine conditions. Mining held 102,000 shares of American Metal Climax h ferred Stock with a market value of approximately $10 million but no earnings or operations. As a result of this merger. Crystal achieved an infusion of $10 million to its Pre-wit- equity base and the Rico shareholders became holders in a company that was very active in petroleum exploration, production, refining and marketing with a much Valve wanted to sell his stock. A public offering would have caused a substantial sell-of- f in the market so another solution ... IN er shareholder of Keystone FOR THE FIRST TIME. A NOW DEFINITIVE BOOK THAT ANALYZES EXCITING INVESTMENT OPPORTUNITIES IN THE DYNAMIC, RESOURCE-RICSEVEN STATE REGION OF THE PACIFIC NORTHWEST (INCLUDING ALASKA). INVESTING resol-merg- more actively traded stock. The president and majority JUST PUBLISHED ABOUT THE AUTHORS. taking a sound step in ving future cost problems as well as a source of supply, Crystal Oil had been expan- ding through the acquisition of refineries. The financing of these acquisitions had put its dept to equity ratio at a disproportionately high level. Crystal wanted to increase its equity base, but a public offering of its shares was impractical due to market NOT SATISFIED. RETURN BOOK WITHN 30 DAYS FOR A REFUND. I market by merging a close corporation with a publicly traded company. 2. Give a company a wider Telerent Holds Meeting At the 1976 annual stock- holders' meeting held January 27, 1976 by Telerent Leasing Corporation, (OTC3.875, 4.875) directors reelected to serve for three years were R. Walker Martin, James G. Deriso, W.C. Calton and Frank Anderson, Jr. First quarter net earnings were also reported of $278,359 or 25 cents per share compared with $151,369 or 14 cents per share for the first quarter of last year. During the annual directors meeting which followed, a 25 percent stock split-u- p effected in the form of a dividend was declared, as well as a 5 cents per share cash dividend on the adjusted shares outstanding Stock-t- o after the stock split-ucompete with Texas Inst- - holders will receive cash for ruments new inexpensive line fractional shares. The stock-o- f holder record date for both is digital watches.) 5. Overcome cost problems February 20, 1976, payable on or shortages in supplies or raw March 19, 1976. Officers materials. by the 6. Resolve working capital Board of Directors were Micou F. Browne, Chairman of the or equity problems. While a good merger can Board of Directors; R. Walker result in excellent benefits to Martin, Vice Chairman of the the shareholders of both com- Board of Directors; James R. panies, a bad merger can Maynard, President; Jack L. result in a financial headache Lynch, Vice President-OperationRobert B. Broughton, or a disaster. The values, variables and Secretary; E. Eugene WhitLaura factors that must be carefully mire, Treasurer; weighed before finalizing a Barbour, Assistant Secretary-Treasureand Leon C. Lifsey, merger are too numerous to President-Telephone Vice enumerate here, but a few of Division. Also, Charles E. the most important considerations are: Wiggins was elected Vice Television (a) Combined Management President-Wester- n ' Division. Mr. Wiggins, a its capabilities, integrity and native Californian, has been assurance of continued perwith Telerent formance. approximately one-hafour and of (b) Competitive position years as the company in its industry Western Regional Manager and is in charge of the Orange, and viability of product line. California office which oper- (c) Growth potential in continued on page 10 ates in five western states. geographical facility or marketing capability and a diversity of profit centers. 3. Resolve weaknesses in management by merging with companies, either larger or smaller, having solid manag- ement. 4. Fill gaps in product lines or overcome lack of needed technological advances. (For example, Timex desperately needs to acquire a company with advanced technology and production capability in the manufacturing of microcircuit L.E.D. digital watches if it is p. re-elect- ed s; had to be found. The management of Systems Engineering had previously expressed an interest as to the possibility of merging their company into Keystone. While Systems Engineering was smaller than Keystone it had an excellent management team. To accomplish the objectives of all concerned, Systems Engineering borrowed from its bank the funds required to purchase the control block of stock, merged Systems into Keystone and the control stock became treasury shares which in turn increased the earnings per share on the remaining shares outstanding. This turned out to be a very advantageous Witchita, Kansas -- Enertrade to the control sharegy Reserves Group, Inc. (OTC holder, the Systems Engineer4.25), is the new name ing Management and, more of Clinton Oil Company of importantly, to the Keystone Wichita, Kansas, as recently public shareholders. A good merger can help companies in a great many r; lf Clinton Oil Adopts Name ways such as: 1. Create a publicly traded by the firm's President and Chief Executive Officer, ard W. Volk, We have several reasons for changing our name, Volk Rich-3.87- 5, explained. Management and direction of the Company have changed. The Company is more than an oil company-- it is an energy company dedicated to the expansion of its oil and gas reserves through exploration and development and procurement of other energy resources such as coal and uranium. R. P. Clinton, founder of the Company, is no longer associated with the management of the Company. For many shareholders and others in Offering components for complete SOLAR ENERGY HOMES DISTRIBUTION CENTERS NEEDED FOR Swimming Pool Heating Systems Home Heating Systems Water Purification Systems the financial community and energy industry, the present name has an unfavorable connotation because of past legal problems. We feel the name Energy Reserves Group accurately and uniquely expresses the Company in terms of objectives, asset values and structures, said Volk, as well as providing us with a distinguishable identity. |
