NEWCOR ANNOUNCES STOCK PURCHASE
NEWCOR ANNOUNCES STOCK PURCHASE TROY, Mich., Jan. 17 /PRNewswire/ -- Newcor, Inc.
(NASDAQ-NMS: NEWC), four of its officers and directors, and a private investment group have agreed to purchase 472,174 shares of Newcor, Inc. common stock from Mitchell Corporation of Owosso, Mich.
Newcor, Inc. today announced that it has purchased for treasury 190,746 shares of Newcor, Inc. common stock from Mitchell Corporation of Owosso ("Mitchell"). At the same time Newcor Chairman of the Board William A. Lawson, Chief Executive Officer Richard A. Smith, and Directors Jerry D. Campbell and Frank L. Klapperich Jr. purchased respectively 40,000, 20,000, 10,000 and 40,000 shares of Newcor common stock from Mitchell, and two investment funds sponsored by Weiss, Peck and Greer purchased 171,428 shares of Newcor common stock. Mitchell retains 50,000 shares. Mitchell and William F. Mitchell have agreed not to purchase any equity securities of Newcor, Inc. for a period of three years. The purchase of 472,174 shares represents 15 percent of the 3,244,211 shares of Newcor, Inc. common stock issued and outstanding. The purchase price of $8.75 per share was based on the approximate market price of the stock at the time negotiations were initiated with Mitchell. The $8.75 price per share of the stock purchased for treasury compares favorably to the current market price and will not materially reduce the book value per share of the remaining outstanding shares. It will have the anti-dilutive effect of improving earnings per share in the future. Weiss, Peck and Greer is a New York-based investment management firm. Newcor, Inc. believes that the relationship with Weiss, Peck and Greer will be beneficial to the long-term performance of the company. Newcor, headquartered in Troy, designs and manufactures custom machines and manufacturing systems as well as special precision-machined parts. Newcor is listed on the NASDAQ under the symbol NEWC. -0- 1/17/92 /CONTACT: Marjorie H. Edwards of Newcor, 313-643-7730/ (NEWC) CO: Newcor, Inc.; Mitchell Corporation ST: Michigan IN: MAC SU:
SB -- DE012 -- 1034 01/17/92 13:44 EST
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|Date:||Jan 17, 1992|
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