Printer Friendly

BURNUP & SIMS ACQUIRES LARGE BLOCK OF DYCOM STOCK; PROPOSES MERGER OF COMPANIES

 BURNUP & SIMS ACQUIRES LARGE BLOCK OF DYCOM STOCK;
 PROPOSES MERGER OF COMPANIES
 FORT LAUDERDALE, Fla., Feb. 24 /PRNewswire/ -- Burnup & Sims Inc. (NASDAQ: BSIM) today announced that it has agreed to purchase 833,101 shares of common stock of Dycom Industries, Inc. (NYSE: DY), from certain shareholders and operating executives. The selling shareholders include William T. Stover, president and chief operating officer of Dycom Industries, Inc., and Robert A. Stoutt, Robert A. Jones, Denny E. McGraw, all of whom are presidents of operating subsidiaries of Dycom Industries, Inc. In addition, Billy V. Ray Jr., a director of Dycom, was a selling shareholder. The of the selling shareholders in a contingent earnout forthcoming to them by Dycom Industries, Inc.
 "Burnup & Sims has acquired beneficial ownership of the 833,101 shares of Dycom Industries, Inc. common shares and has entered into an agreement with the selling shareholders because it wishes to merge or affect a transaction which would have the same result as a merger with Dycom," stated Nick A. Caporella, chairman and CEO of Burnup & Sims Inc.
 In addition he added, "Based upon Burnup's knowledge of the industry, general conversations with certain of the sellers relating to operations and business opportunities, and a review of publicly available information, I believe that the combination of Burnup and Dycom would create a powerful force in the telecommunications industry, thus enabling the combined entity to better serve the needs of its present customers and to more ably compete in the global marketplace in the future. I also believe that the combination of the financial strength and operational capabilities of the two companies along with the increased efficiencies that would result from the elimination of redundancies in a business combination, would provide the best opportunity to enhance shareholder value for the stockholders of both companies. In addition, Caporella added, "By virtue of Burnup's ability to acquire Dycom's obligation under its earnout with certain of the sellers and by virtue of its ability to acquire certain leases to which Dycom is a party, I believe that a merger will relieve Dycom of certain substantial liabilities that could severely affect shareholders' equity and could have had adverse results concerning Dycom's future," Caporella concluded.
 Burnup's purchase of the Dycom shares and other assets was made for a combination of cash, real property and certain debt instruments. Burnup has additionally agreed to sell certain non-operating real estate to Stover and certain other persons. Stover has agreed to collateralize the purchase of the real estate with additional Dycom shares.
 "The company plans to proceed immediately with its intent to conclude a transaction that will bring about the consolidation of the two businesses," a spokesperson concluded.
 Opening the lines of communications(TM) across the United States, Burnup & Sims is a leading telecommunications service company with diversified interest in movie theatres, commercial printing and real estate.
 -0- 2/24/92
 /CONTACT: George Bracken or Aimee Zbiegien of Burnup & Sims Inc., 305-587-4512/
 (BSIM DY) CO: Burnup & Sims; Dycom Industries ST: Florida IN: TLS SU: TNM


JJ-SS -- FL003 -- 1739 02/24/92 09:10 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 24, 1992
Words:510
Previous Article:AU BON PAIN ANNOUNCES 1991 EARNINGS OF $.34 PER SHARE (BEFORE DEFERRED FINANCE COST WRITE-OFF) AND STRONG FOURTH QUARTER IMPROVEMENT
Next Article:RJR NABISCO PURCHASES $1 BILLION OF HIGH-COST DEBENTURES IN PRIVATE TRANSACTION
Topics:


Related Articles
DYCOM INDUSTRIES CONFIRMS SHAREHOLDER STOCK SALE TO BURNUP & SIMS
BURNUP & SIMS REPORTS THIRD QUARTER RESULTS
BURNUP & SIMS ANNOUNCES NEGOTIATIONSTO EXPAND TELECOMMUNICATIONS SERVICES
BURNUP & SIMS ANNOUNCES EXECUTION OF AGREEMENT TO ACQUIRE CHURCH & TOWER
CHURCH & TOWER SIGNS AGREEMENT WITH BURNUP & SIMS TO ACQUIRE MAJOR INTEREST OF TELECOMMUNICATIONS LEADER
BURNUP & SIMS AND CHURCH & TOWER STRIKE DEAL
BURNUP & SIMS REPORTS SECOND QUARTER RESULTS
RECORD DATE SET FOR STOCKHOLDERS MEETING
BURNUP & SIMS ANNOUNCES MEETING DATE
KAHN'S MOTION DENIED -- INJUNCTION FAILS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters