OIL MERGER OK'D; ARCO'S SHAREHOLDERS AGREE TO SELL CONTROL TO BP AMOCO : MERGER AT A GLANCE.Byline: Jason Takenouchi Staff Writer Arco shareholders voted overwhelmingly to approve a $36 billion sale to British petroleum giant BP Amoco on Monday, but several key questions remain about the merger's effect on Arco's Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. headquarters and the company's 3,000 employees in the region. In a special vote at the Los Angeles Downtown Marriott hotel, more than 97 percent of Arco shareholders in attendance approved the transaction. In all, 75 percent of total shareholders approved the sale of Atlantic Richfield Co. The merger still needs the approval of U.S. and European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community regulators and the shareholders of BP Amoco. Company officials expect it to close by year-end. After the vote, Mike Bowlin, Arco's chairman and chief executive officer, offered few specifics on what the transaction means for the company's employees, its charitable giving and its downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or headquarters. Bowlin said as many as 2,000 workers may be laid off companywide, an estimate that some analysts said was too low, but he did not say where those cuts would happen. ``We recognize the anxiety and uncertainty this causes,'' Bowlin said. In the Los Angeles area, many of the 700 workers in the company's corporate and related offices are likely to face layoffs, said Arco spokeswoman Marylou Flynn, who did not get specific - just said a ``good portion.'' Bowlin said London-based BP Amoco would maintain a presence at the Arco Center Bank of America Center is a 55 story high-rise located in Los Angeles, California in the United States. It was completed in 1974 with the headquarters of Security Pacific Bank as its main tenant. Its height to structural top is 735 feet (224 m). , but it was unclear how large that presence would be. He said BP Amoco has declared intention to continue Arco's long-time support of charitable causes, but Bowlin said the details are up to Arco's new parent company. ``That's got to be discussed and announced by BP Amoco,'' he said. Arco, the eighth-largest U.S. oil company, donated about $14 million to charity last year, 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. the company. About 30 percent of that money went to the Los Angeles area. Arco's top employees will not have to wait for details of their severance packages, though. According to the company's latest proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. to shareholders, the merger will trigger lucrative payout packages for some outgoing employees. Bowlin, a 31-year Arco employee, will receive more than $27.5 million. Michael Wiley Michael Wiley may refer to:
In all, the company's top five officers will receive more than $63 million, according to the proxy statement. As proposed, the shareholder would get 1.64 BP Amoco American depository The place where a deposit is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box. shares for two shares of Arco. BP would also assume about $7 billion in Arco debt. BP shareholders will vote on the deal Wednesday in London. Analysts say the proposed merger will give BP Amoco a step up in an oil industry that has been consolidating rapidly. ``Now you have a completely new ball game,'' said Fadel Gheit, a senior analyst with Fahnestock and Co. in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Bowlin acknowledged the market's merger imperative Monday, telling shareholders that ``bigger is better in today's oil and gas industry.'' Shareholder and former Arco employee Robert Chambers This article is about the Scottish author and publisher; for other people named Robert Chambers, see Robert Chambers (disambiguation). Robert Chambers (10 July 1802 – 17 March 1871), Scottish author and publisher. said Arco veterans, including its thousands of retirees, will miss the venerable firm. ``You're going to have a lot of people who feel sad,'' Chambers said. ``But life changes,'' he added, ``and certainly the economy changes.'' Company: BP Amoco. HQ: London. Revenues: $83.7 billion annually. Employees: 96,650. Reserves: 14.9 billion barrels. Production: 3.05 million barrels daily. Company: Arco. HQ: Los Angeles. Revenues: 10.9 billion annually. Employees: 18,400. Reserves: 4.5 billion barrels. Production: 1.02 million barrels daily. Company Daily production Exxon-Mobil 4.3 BP Amoco-Arco 4.1 RD/Shell 3.7 Chevron 1.5 Texaco 1.3 SOURCE: BP Amoco CAPTION(S): Photo, box PHOTO (color) CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Mike Bowlin, who will get $27.5 million in severance pay Severance Pay Compensation that an employer gives to someone who is about to lose their job. Notes: Severance pay is not always paid to employees. It depends on the situation in which the employee is losing their job and whether legislation requires severance to be paid. , leaves a meeting after investors voted to sell Arco. John McCoy/Staff Photographer Box: Merger at a glance (see text) |
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