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Business Wire
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Business New Haven
3/9/1998
By: Russell Stone
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Potential MS Treatment
NEW HAVEN - Alexion Pharmaceuticals (NASDAQ: ALXN) has filed an Investigational New Drug application with the Food & Drug Administration to begin clinical trials for its Apogen MP4 in the treatment of multiple sclerosis. Preliminary testing in rodents and primates has shown that MP4 halts the progress of neurological disease and can prevent the onset of MS-like disease. In keeping with Alexion's specialization in autoimmune disease, MP4 eliminates the T-cells of the immune system that target nerves in the brains of MS patients.
Bank Acquisitions
WATERBURY - Webster Financial Corp. (NASDAQ: WBST), the parent company of Webster Bank, received regulatory approval from the Office of Thrift Supervision to complete its acquisition of Bristol's Eagle Financial Corp. Pending shareholder approval from both sides, Webster expects to complete the merger in the second quarter of 1998. Eagle shareholders will receive 0.84 shares of Webster stock for each share of Eagle stock they hold.
BRIDGEPORT- In another acquisition, People's Bank (NASDAQ: PBCT) has completed its merger with Norwich Financial Corp., holding company for the Norwich Savings Society. The merger solidifies People's position as the largest independent bank in Connecticut, with assets of $10.8 billion and 128 branches. Under terms of the merger, Norwich shareholders will receive $32.14 in cash or stock.
Acquisition Fever
BRANFORD - In the wake of SPX's $3 billion offer to buy Echlin Inc. (NYSE: ECH), reports indicate that Echlin may have other interested suitors. Dana Corp., Cooper Industries and Allied Signal are rumored to have expressed interest, but Echlin maintains that the company is not for sale. It is unclear whether any of these offers improve on SPX's offer of $48 per share and plans to cut ten percent of Echlin's workforce, or 3,000 jobs.
Echlin has a poison pill provision which gives its board the power to block takeovers, so SPX, already in possession of almost two of Echlin's outstanding shares, is attempting to force a special shareholder meeting to replace Echlin's board with SPX nominees.
Legal Obstacle Removed
MILFORD - Executone Inc. (NASDAQ: XTON) announced that a federal judge in Missouri has removed a state restraining order preventing Missouri residents from participating in an Internet lottery run by Executone.
Under contract with Idaho's Coeur d'Alene Indian tribe, Executone administers the nationwide US Lottery. The state of Missouri had argued that its anti-gaming laws could prevent the lottery's function within its borders, and two weeks ago obtained a temporary restraining order.
Missouri and the Coeur d'Alene tribe were already engaged in a federal suit over the matter, and the federal court rejected the state court's authority in the matter.
New President for UI
NEW HAVEN - United Illuminating (NYSE: UI) has named Nathaniel Woodson to be its new president, effective immediately, to replace Richard Grossi. Woodson will become chairman upon Grossi's retirement later this year and chief executive officer at the company's annual meeting in May.
Woodson previously spent 30 years at Westinghouse Electric Corp., now CBS, before resigning in 1996 from his post as president of Westinghouse's Energy Systems Business Unit. Much of Woodson's career has been spent in Westinghouse's nuclear divisions. A Yale undergraduate, Woodson received master's degrees in nuclear engineering and business administration from MIT and the University of Pittsburgh.
Good and Bad News
for Oxford
NORWALK - Beleagured Oxford Health Plans (NASDAQ: OXHP) announced that the Texas Pacific Group, an investment firm, has agreed to put $350 million into Oxford. The company plans an additional $350 million in debt financing. Texas Pacific will receive four seats on Oxford's board of directors in return for its stake. Oxford also reported that Norman Payson, formerly of Healthsource Inc., will become its new chief executive officer. Payson has agreed that upon taking office he will personally invest $10 million in Oxford common stock.
As Oxford begins its restructuring efforts after declaring 1997 losses of $292 million, ten additional New York medical societies joined in legal actions originally brought by the New York County Medical Society against Oxford. Those societies suing Oxford for late payment of $140 million in claims represent 15,000 physicians. Oxford released a statement declaring that it expected the vast majority of doctors in those societies to refrain from joining in legal action, and pointed to its improving record in timely payment of claims.
Who's Earning What
HARTFORD - Aetna Inc. (NYSE: AET) achieved strong results for the final quarter and full year of 1997. Fourth quarter revenues grew 6.6 percent to $4.793 billion, and for all of 1997 by 22 percent to $18.5 billion. Net income went from a fourth quarter loss of 80 cents per share to $1.71 profit, while yearly net income rose $250 million to $901 million, or $5.60 per share. That represents an 18.6-percent increase in per-share earnings.
NORWALK - U.S. Surgical Corp. (NYSE: USS) turned in its 12th consecutive quarter of sales growth, boosting 1997 revenues by five percent to $1.17 billion. Net income came in at $124 million, compared to $109 million the previous year. Per-share earnings rose from $1.48 to $1.65. Fourth-quarter sales growth of seven percent would have been even higher if not for foreign currency losses of $15 million.
STAMFORD - General Signal (NYSE: GSX) reported marginally lower earnings on continuing operations for the fourth quarter and the full year. Fully diluted earnings for the fourth quarter came to 75 cents per share, off one cent from the previous year, while full year results dropped five cents to $2.60. An accounting shift decreased final quarter net income to 67 cents per share and full year net income to $2.58 per share. Total revenues were down for the year from $2.065 billion to $1.955 billion, in part because of the sale of the company's GS Pump unit.
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