Big O Tires receives $16 per share proposal.ENGLEWOOD Englewood (ĕng`gəlw  d).1 City (1990 pop. 29,387), Arapahoe co., N central Colo., on the South Platte River, a residential and industrial suburb of Denver; inc. 1903. , Colo.--(Automotive Wire)--April 6, 1995--Big O Tires, Inc. (NASDAQ/NMS "BIGO") announced that it had today received a proposal from a group consisting of Big O franchised dealers and selected members of management, excluding the Chairman and Vice-Chairman, to acquire outstanding shares of the Company for a cash price of $16 per share. A substantially similar group had proposed a transaction in December, 1994, to purchase the Company for $18.50 a share, but withdrew the offer in February of 1995. The purchaser group, which is to be organized, has advised the Company that they propose to acquire the Company, subject to several contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. , including signing a definitive merger agreement, obtaining financing to complete the purchase, participation by at least 80% of the shares held by the Company's ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). and participation in the purchaser group by franchised dealers having at least 85% of the franchised locations. John Siipola, Chairman of the Board of the Company said, "We will evaluate the benefits of the proposal to our shareholders and other alternatives available to enhance the value of the Company, which was our mandate following the Company's last annual shareholder meeting. The Investment Committee of the Board of Directors has scheduled a meeting for April 12 to continue that process." Big O Tires, Inc. is one of the largest independent retail tire and auto service franchisors in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , with more than 370 stores in 18 states primarily in the West and Midwest. The company also distributes tires and other automotive products to 37 Associated Dealers in British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography , Canada. It is the sole distributor of its private Big O brand tires and a major distributor of other brands such as Michelin, B.F. Goodrich and Uniroyal, as well as aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. suspension parts manufactured by Monroe Auto Equipment. Big O Tires' common stock is traded on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on National Market System under the symbol BIGO. CONTACT: Big O Tires Inc., Englewood John E. Siipola or Horst K. Mehlfeldt, 303/790-2800 fax: 303/790-0225 |
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