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Business Wire
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Business New Haven
9/8/1997
By: BNH
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MILFORD - BIC Corp., the American subsidiary of France's Société BIC S.A. (traded on the French stock exchange), announced on July 31 an agreement to purchase Iowa's Sheaffer Group, a worldwide manufacturer of premium pens. Sheaffer's annual sales of $50 million were expected to benefit from BIC's economies of scale for manufacturing and distribution in the $2.8-billion world market for writing instruments. Trouble arose when a management group at Shaeffer attempted to arrange a management buy-out, exercising what BIC termed an invalid attempt “to exercise a purported right of first refusal.” BIC declared its intent to pursue its purchase, through legal action if necessary, and increased its offer by $2 million. On August 26, the Supreme Court of New York denied BIC's preliminary injunction to prevent Sheaffer from closing a deal with its management. BIC intends to appeal the decision.
PROVIDENCE, R.I. - Citizens Financial Group, parent company of Citizens Bank based in New London, announced the appointment of Scott Kisting as chief operating officer effective September 1. Also, shareholders of BNH Bancshares, parent company of the Bank of New Haven (NASDAQ: BNHB), approved its acquisition by Citizens Bank of Connecticut. The acquisition was completed August 28, creating a $1.8 billion institution. In April, Citizens announced that it would purchase BNH for $15.50 per share, for a total purchase price of $57.2 million. Bank of New Haven President F. Patrick McFadden Jr. will stay at the helm and promises that Citizens “will continue the fully involved, community banking tradition” of the Bank of New Haven. Citizens Financial is a privately held company, 76.5 percent owned by the Royal Bank of Scotland and 24.5 percent owned by the Bank of Ireland. Both banks are publicly traded on the London exchange.
WATERBURY - In other merger news, Webster Financial Corp. (NASDAQ: WBST) won the approval of the shareholders of People's Savings Financial Corp. (NASDAQ: PBNB) on July 30 for its previously announced merger. All branches and accounts at People's Savings Bank & Trust had been converted to Webster systems by August 12. People's shareholders will receive 0.85 shares of Webster stock for each share of People's stock they hold in a total purchase amounting to 1.6 million shares of newly issued Webster stock. The merger expands Webster's presence in New Britain and Meriden and adds to Webster's capabilities in trust and investment management. Webster has created a new subsidiary, Webster Trust, to handle such services for its customers. Webster's acquisitions of Sachem Trust, with $300 million in trust assets under management, and People's Savings, with $327 million in trust assets, make Webster Trust the second-largest trust company in Connecticut.
STAMFORD - First Union (NYSE: FTU) continues to expand its sports banking business with a $25-million private placement of senior notes and a $20-million revolving credit line for the New York Giants. First Union's links with the Giants result from its 1996 acquisition of First Fidelity, which had a relationship with the NFL team dating back to 1976. First Union has also expanded its alliance with National Auto Finance Co. to provide auto financing through car dealers throughout Connecticut and the Northeast. First Union's Sales Finance Group will pass over to Auto Credit Clearinghouse, a division of National Auto Finance, its non-prime auto loan applications. National Auto Finance underwrites the loans and takes on the requisite credit risk and all operations and collections.
BERLIN - On August 19, Northeast Utilities (NYSE: NU) appointed Michael G. Morris its new chairman, president and CEO. Morris replaces Bernard M. Fox, who announced his retirement in February. He comes to Northeast Utilities from Consumers Energy, a unit of Dearborn, Mich.'s CMS Energy.
NEW HAVEN - Vion Pharmaceuticals (NASDAQ: VION) and Yale University announced on August 21 an amendment of the licensing terms in an agreement on the development of new anticancer and antiviral agents. Under the revised terms, Vion decreases the licensing fees it pays Yale for those drugs and technologies discovered by Yale researchers. In return, Yale receives additional, newly-issued shares of common stock in Vion. Second-quarter earnings results continue to be announced by a number of New Haven-area companies.
FAIRFIELD - The conglomerate General Electric (NYSE: GE) announced record second-quarter profits of $2.162 billion. Revenues, including acquisitions, grew by 15 percent to $22 billion. Earnings grew 13 percent, but earnings per share rose 14 percent to 66 cents thanks to a four-year, $13 billion share buy-back program. Recently selling at 28 times trailing earnings, General Electric repurchased $862 million of its stock during the second quarter.
SHELTON - Physicians Health Services (NASDAQ: PHSV) showed improvement in the second quarter. In the second quarter of 1996, the company lost 54 cents per share, but had improved that to a profit of 12 cents per share this year on sharply higher revenues. Premiums grew by 37 percent over the previous year from $118.4 to $162.2 million, while enrollment grew 35 percent to more than 468,000 members. Costs of health care services grew by just over 28 percent, and hospital days per thousand members stayed stable.
BRIDGEPORT - Declining European sales hurt the second quarter revenues and earnings of Bridgeport Machines (NASDAQ: BTPM). As the company increased sales of its metal-cutting machine tools, lathes and milling machines directly to end-users instead of to distributors, selling and marketing expenses rose as well. While Bridgeport Machines' second quarter gross profits fell to $12.6 million (a drop of 9.6 percent from the previous year) on revenues of $54.5 million, increasing marketing costs cut second-quarter earnings per share by 44.7 percent from 47 cents to 26 cents.
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