Foamex Inks Deal to Be Acquired; Clinton Picks Parry for Fed Board - TheStreet

Foamex Inks Deal to Be Acquired; Clinton Picks Parry for Fed Board

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Troubled

Foamex

(FMXI)

agreed to a cushy $288 million buyout by two private investment firms.

Liberty Partners

and affiliates of

Sorgenti International

will pay $11.50 a share for the company, well above the 7 9/16 closing price today but lower than the 52-week high of 17 5/8. Foamex, which makes polyurethane foam products for uses such as carpet cushioning, is 46% owned by

Trace International

, a private company that filed for bankruptcy last month.

Separately, the company reported second-quarter earnings of 13 cents, citing pretax charges of $3.7 million. The company said amended year-ago earnings were 36 cents a share. No earnings estimates were available.

As expected,

President Clinton

nominated former

Chase

(CMB)

executive Carol Parry to fill one of two vacancies on the

Federal Reserve's

board of governors. If confirmed she would be the replacement for Susan Phillips, who resigned more than a year ago. Parry was executive vice president for community reinvestment at Chase, and Clinton has made that area a priority. But

Senate Banking Committee

Chairman Phil Gramm (R., Texas) is known to oppose the Community Reinvestment Act, so the Parry nomination could face some bumps.

In other postclose news (earnings estimates from

First Call

; earnings reported on a diluted basis unless otherwise specified):

Earnings/revenue reports and previews

Sterling Commerce

(SE) - Get Report

warned its fourth-quarter earnings would fall below the 16-analyst estimate of 45 cents a share by as much 5 cents. The company attributed weaker results to sluggish revenue growth and the delay of several end-of-the-quarter transactions.

Terra Nova

(TNA) - Get Report

reported lower-than-expected second-quarter earnings of 68 cents a share, worse than the four-analyst estimate of 71 cents and a penny less than the year-ago 69 cents. Separately, Terra Nova said it had received an unsolicited merger offer and retained

Donaldson Lufkin & Jenrette

to help it consider its alternatives. The company said it is in the final stage of talks to acquire a U.S. company.

In other earnings news:

Offerings and stock actions

ReSource Phoenix.com

, a software services company, said it plans to raise $59 million in an initial public offering.

BancBoston Robertson Stephens

and

Thomas Weisel Partners

will underwrite the offering.

Miscellany

Komag

(KMAG)

named Thian Hoo Tan its president and CEO, replacing Stephen C. Johnson, a co-founder who resigned.