AMOCO BUYING ARCO; OIL COMPANIES CLOSE $25.6 BILLION DEAL.Byline: Michael White There are multiple public figures named Michael White or Mike White, including:
Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. In a February speech to oil industry leaders, Arco chairman Mike Bowlin declared that the ``last days of the age of oil'' had begun. Few, if any, in the audience knew that the last days of Arco also were unfolding as a result of quiet negotiations Bowlin had initiated weeks earlier with Arco's bigger rival, BP Amoco. The fate of Atlantic Richfield Co. was revealed Thursday when the two companies announced that BP Amoco would swallow Arco in a $25.6 billion stock deal that will create the world's second-largest oil company. The deal, expected to save the combined companies about $1 billion a year, would be the eighth merger of the past six months in an industry shaken by more than a year of plummeting oil prices and increasing demands for cleaner fuels. Arco's senior management, including Bowlin, will resign. The new company will be known as BP Amoco, but the Arco retail gasoline brand will continue for the time being. During a news conference Thursday, Bowlin said he was confident Arco could have survived on its own, but the combination with BP Amoco will be better for shareholders. ``We did this because we think it creates a really terrific company from our viewpoint, even though it's a bittersweet bittersweet, name for two unrelated plants, belonging to different families, both fall-fruiting woody vines sometimes cultivated for their decorative scarlet berries. moment for us,'' he said. Shareholders will get 0.82 share of BP Amoco stock for each share of Arco, a premium of 26 percent over Arco's price before the negotiations were made public Monday. The value of the deal - initially pegged at $26.8 billion - shrank as shares of BP Amoco fell in trading on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . American Depositary Shares American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. of BP Amoco were at $95.8125, down $5.1875, while shares of Arco fell 68.75 cents to $72.8125, also on the Big Board. BP Amoco plans to sell about $3 billion in overlapping assets. About 2,000 jobs are expected to be eliminated from a combined work force of 115,000, mainly in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. outside Alaska, officials said. Idled workers will be able to pick from several severance options. Bowlin will leave Arco with $3.2 million in salary and bonuses plus another $29.3 million in exercisable stock options, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. estimates by Executive Compensation Advisory Services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal based on Arco's proxy statements. CAPTION(S): 2 Photos, Box PHOTO (1--Color) Sir John Browne, chief executive of BP Amoco Corp., announces in London on Thursday that BP Amoco is acquiring Arco. Alastair Grant/Associated Press (2--Color) Arco executives, from left, Doug Ford, Mike Bowlin and Mike Wiley speak at a news conference in Los Angeles on Thursday. Reed Saxon/Associated Press BOX: OIL MEGAMERGER |
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