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FIELDCREST CANNON, AMOSKEAG ANNOUNCE AGREEMENT

    NEW YORK, Aug. 13 /PRNewswire/ -- Fieldcrest Cannon, Inc. (NYSE: FLD) and Amoskeag Company (NASDAQ-NMS: AMOS) jointly announced today that they have signed a definitive agreement pursuant to which a subsidiary of Fieldcrest will make a cash tender offer for all of the outstanding 3,441,000 shares of Amoskeag at a price of $40 per share, followed by a merger whereby Amoskeag will become a wholly owned subsidiary of Fieldcrest.  The tender offer will commence within five business days.  The purchase of shares in the tender offer is subject to financing, regulatory approvals and certain other conditions.  The First Boston Corporation is acting as financial advisor to Fieldcrest in connection with the acquisition and as dealer manager for the tender offer.
    James M. Fitzgibbons, chairman and chief executive officer of Fieldcrest, stated that "Fieldcrest's acquisition of all of the common stock of Amoskeag Company represents an attractive opportunity for Fieldcrest.  The transaction will simplify the ownership structure and shift control to our public shareholders by elimination of the large control block which as been held by Amoskeag for many years.  As a result, the long-term interests of Fieldcrest shareholders should be enhanced."
    W. Randle Mitchell, Jr., president and chief executive officer of Amoskeag, said, "The proposed transaction is in the best interests of all the Amoskeag shareholders and Amoskeag will cooperate fully to consummate the transaction."
    Dumaines, a controlling shareholder of Amoskeag, has agreed to tender its shares.
    Fieldcrest Cannon, Inc. manufactures and markets bed and bath products under the Fieldcrest, St. Marys, Cannon Royal Family, Cannon Monticello and private label brands.
    Fieldcrest Cannon, Inc. common stock is traded on the New York Stock Exchange under the symbol "FLD."  Amoskeag's common stock is traded on NASDAQ-NMS under the symbol "AMOS."
    -0-             08/13/93
    CONTACT:  K.W. Fraser, Jr., chief financial officer, 919-627-3253, or T.R. Staab, vice president - finance, 919-627-3117, both of Fieldcrest Cannon, or Gerard J. Sarnie, vice president and treasurer, of Amoskeag, 617-262-4000
    (FLD) CO:  FIELDCREST CANNON, INC.; AMOSKEAG COMPANY IN:  TEX ST:  NY -- NY012R -- X567  08/13/93
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Publication:PR Newswire
Date:Aug 13, 1993
Words:342
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