agreed to a cushy $288 million buyout by two private investment firms.
and affiliates of
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
, 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.
executive Carol Parry to fill one of two vacancies on the
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
; earnings reported on a diluted basis unless otherwise specified):
Earnings/revenue reports and previews
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.
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
, a software services company, said it plans to raise $59 million in an initial public offering.
BancBoston Robertson Stephens
Thomas Weisel Partners
will underwrite the offering.
named Thian Hoo Tan its president and CEO, replacing Stephen C. Johnson, a co-founder who resigned.