U.S. natural gas companies to merge |
|
|
|
Published
:
Mon, 05 Feb 2007 13:14
|
HOUSTON (AFX) - Hanover Compressor Co. and Universal Compression Holdings Inc. said Monday they will merge to create a company with a market capitalization of about $3.8 billion.Shareholders of Hanover, an oil and gas equipment maker, will initially own about 53 percent of the new company, while holders of Universal, which makes natural gas compression products, have a 47 percent stake.Under terms of the deal, Hanover stockholders will receive 0.325 shares of the new company for each Hanover share, while Universal stockholders receive 1 share of the company for each Universal share.The transaction creates a new holding company that will own Hanover and Universal's stock. The company, which will be headquartered in Houston, is expected to list on the New York Stock Exchange.Universal Chairman, President and Chief Executive Stephen Snider will become president and CEO of the new company; Hanover Chairman Gordon T. Hall will serve as chairman.The board will contain 10 directors, with five from each company, including Snider and John Jackson, Hanover's president and CEO.The transaction, which is expected to close in the third quarter, is seen adding to earnings next year.Hanover shares closed Friday at $19.40 on the NYSE, where they have traded between $14.99 and $21.10 over the past year. Universal shares closed at $61.10, also on the Big Board, where they have ranged between $40.51 and $65.39 in the last 52 weeks.In 2005, Hanover posted sales of $1.38 billion, compared with Universal's $613.7 million sales.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
|
|
|
|
Print this Story
French Bristol-Myers chief flattered by questions about Sanofi merger 