air-freight companies to merge
The company said yesterday it had agreed to buy Emory air cargo for $7.
$75 per share, about $0. 23 billion.
The acquisition will make lazlidated the largest airline in the United States.
Lazlidated, founded as a truck transport company, is the third-largest air-
Freight company, which has revenue of nearly $0. 4 billion in airline business
This company is based in Menlo Park, California.
Emory and Burlington North Air Freight
Emory is headquartered in Wilton, Connecticut.
The companies said that after the tender offer was completed, Emory\'s business would be merged with that of the CF airfreight company of the bidlidated
A new company called Emery world was established.
Two years ago, Emory bought Purolator Express, which owns large air and ground delivery systems. Emery Jumps 24.
Shares of 5% ringlidated fell $1.
$875 per share yesterday to $32.
875, on the New York Stock Exchange.
Murray\'s share price rose by $1. 50 each, to $7. 625. Its 24.
On the big board, the biggest increase was 5%.
The stock is also the most active, with more than 3.
5 million shares changed hands.
These companies specialize in the air transportation of large goods from machinery, computers to furniture.
Shipment volume of airlinidated-
For example, the average service for goods is 200 pounds.
Shipment by parcel delivery companies such as FedEx and United Parcel Service
Generally between 2 and 10 pounds.
According to the terms of the agreement, the amount of $21 will be paid by surelidated.
Each of the 10 preferred shares of Emery held by employees.
The first Boston company was a financial advisor to woollidated.
The agreement was reached a few months after Lary R was interested in Emery.
President and CEO of the merger, ScottLast year, Mr.
Scott passed the expansion plan of the CF air freight department, requiring about $0. 25 billion for aircraft and operating stations within five years.
Shoplidated purchased a 4 and then sold it.
9% of Emery has been held in recent years. And Mr.
Scott began seriously considering the acquisition of Emory last summer and began negotiations with the company in August.
In an interview yesterday, \"charming barbarian \".
Scott said the acquisition of Emory is a means to avoid capital spending projects and the work involved in debt spending.
He added that Emory\'s operations in 45 countries and 55 aircraft will enable the combined company to achieve \"some attractive savings\" in the future \".
But some analysts believe that the acquisition has also caused some problems for the company.
The most important of these is the sustained loss caused by the expansion surgery.
Seven years ago, Emory competed with a very successful FedEx company, and there was no unprofitable to enter the air delivery system.
\"They still have problems with the night air express business,\" said George G . \".
Morris, Prescott, analyst at Ball & Turbenin Cleveland.
\"The overnight package business and the problems of the Purolator itself will be a big problem for integration.
Scott stressed that sales of coollidated increased by 30% in 1988, \"We plan to take advantage of this growth momentum.