Big O and TBC negotiating merger letter of intent.
TBC has proposed a cash price of $16.50 per Big O share, subject to several conditions including a potential reduction in price as provided in TBC's letter of intent.
If the letter of intent is agreed upon, the transaction would still be subject to the execution of a definitive merger agreement, Big O and TBC Board approval, approval by the Big O stockholders and the satisfaction of contractual conditions.
Although the previously announced merger agreement between the Company and the companies formed by a Dealer/Management Group is still in effect, either the Company or the Dealer/Management Group are able to terminate that merger agreement after February 28, 1996. The TBC letter of intent is conditioned on termination of that merger agreement.
TBC Corporation is a marketer and distributor of products for the automotive replacement market.
Big O Tires, Inc. is a franchisor of independent retail tire and auto service stores.
CONTACT: Big O Tires Inc., Englewood
Beth Hayne, (303) 790-2800