Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, August 14, 1993 TAG: 9308140080
SECTION: BUSINESS PAGE: A-8 EDITION: METRO
SOURCE: MARK FOLK LANDMARK NEWS SERVICE
DATELINE: LENGTH: Medium
The deal ends months of speculation over who would take control of the Eden, N.C.-based bedding and towel maker, with a towel mill in Henry County.
It is unclear, however, what impact the deal - which significantly increases the company's debt - will have on operations or employees in the long term.
Fieldcrest's board of directors will set up a subsidiary to buy Amoskeag, which controls 80 percent of Fieldcrest's voting stock, from the Dumaines Trust of New Hampshire. Amoskeag is a Boston-based company with railroad and real estate investments.
The new Fieldcrest unit will tender an offer of $40 per share in cash for Amoskeag's 3.44 million outstanding shares by next Friday, the company said. Fieldcrest will retire the class B, or voting shares, owned by Amoskeag and transfer control to shareholders.
Fieldcrest officials haven't said how the company will finance the buyout. At least some of the money could come from the sale of Amoskeag's non-textile holdings.
Fieldcrest management beat at least three other bidders, including Fort Mill, S.C.-based Springs Industries, which had been rumored to be the leading bidder.
Union officials said they are glad ownership is resolved, but are concerned about increased debt.
"We want to know what kind of shape this is going to leave Fieldcrest in terms of investment and providing wages and compensation packages," said Ernest Bennett of the Amalgamated Clothing and Textile Workers Union.
Fieldcrest stock fell $2.50 per share to $21.50 Friday on Wall Street. Amoskeag fell 50 cents per share to $39.50 in Nasdaq trading.
by CNB