DELAY IN MOR-FLO MERGER TRANSACTION
DELAY IN MOR-FLO MERGER TRANSACTION CLEVELAND, Dec. 30 /PRNewswire/ -- Mor-Flo Industries, Inc.
(NASDAQ: MORF) announced today that its proposed merger with SABH is still under review by the Antitrust Division of the U.S. Department of Justice. Mor-Flo stated that the Justice Department's decision whether or not to challenge the merger had originally been expected by mid-December, but had been delayed due to ongoing negotiations with the Justice Department. Mor-Flo noted that under the terms of the Merger Agreement signed May 10, 1991, either party has the right to terminate the merger transaction if a closing does not occur by Dec. 31, 1991. Mor-Flo noted further that termination of the Merger Agreement is not automatic and must be initiated by either Mor-Flo or SABH. Mor-Flo stated that its decision whether or not to terminate the Merger Agreement after Dec. 31, 1991 will primarily depend upon the progress of the ongoing Justice Department negotiations. Mor-Flo estimated that such negotiations would probably be concluded during January 1992.
Mor-Flo Industries, Inc. is a leading national manufacturer of gas, electric and solar water heaters, as well as related home heating products. The Company is headquartered in Cleveland, Ohio and has major manufacturing facilities in Johnson City and Chattanooga, Tenn. and Santa Monica, Calif. -0- 12/30/91 /CONTACT: Jerry Polster of Mor-Flo Industries, 216-663-7300/ (MORF) CO: Mor-Flo Industries, Inc. ST: Ohio IN: MAC SU: TNM
CG -- CL007 -- 5716 12/30/91 15:49 EST
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|Date:||Dec 30, 1991|
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