STARSTREAM SIGNS LETTER OF INTENT TO ACQUIRE OLIVER TRANSPORTATION INC.
STARSTREAM SIGNS LETTER OF INTENT TO ACQUIRE OLIVER TRANSPORTATION INC. HOUSTON, Aug. 5 /PRNewswire/ -- Starstream Communications Group Inc. (NASDAQ: SCGI) has signed a letter of intent to acquire all of the issued and outstanding shares of capital stock of Oliver Transportation Inc. (OTI) in a tax free exchange for shares of Starstream's common stock. Starstream is a publicly traded company listed on NASDAQ under the symbol SCGI. Details of the terms of the tax-free exchange were not disclosed. However, the stockholders of OTI will own majority control, OTI will be the surviving company and Starstream will change its name to OTI Corp. OTI, a privately held Missouri corporation, has built a 44-year reputation of providing specialized truck transportation services to the refractory, steel, aluminum, metal building and building material industries. OTI reported revenues for its fiscal year ended Sept. 30, 1991 of $37 million and its founder, John "Pete" Oliver, is still active in management as chairman. The approval of the proposed acquisition and related transactions are subject to approval by the shareholders of Starstream and the execution of a definitive agreement and plan of reorganization. A special meeting of the shareholders of Starstream is scheduled on or before Oct. 1, 1992. Harold H. Stream III, Starstream's chairman, stated, "We looked at over three dozen companies from all over the United States to find a merger partner. OTI was the overwhelming choice of our board of directors. They have the management, reputation and unique niche in the flatbed freight business which impressed us. Our mandate from our shareholders was to maximize shareholder value. We believe we have done that by allying ourselves with OTI." OTI's President Tony Meador stated that "This merger will cause a win-win situation for OTI and Starstream. OTI will be the only publicly traded exclusively 'flatbed' trucking firm in the U.S. With a substantial growth record over the recent years, OTI is now poised to become the largest flatbed carrier in the nation. OTI's founder, and one of the true historic pioneers in transportation in Missouri, Pete Oliver, and I are very excited." This transaction between OTI and Starstream was initiated by the investment banking firm of McFarland, Grossman & Co. of Houston. -0- 8/5/92 /CONTACT: Fran Daniels of Financial Sciences of America, 310-278-4413, for Starstream Communications Group/ (SCGI) CO: Starstream Communications Group Inc.; Oliver Transportation Inc. ST: Texas, Missouri IN: TRN SU: TNM
AL-KJ -- LA009 -- 6966 08/05/92 09:30 EDT
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|Date:||Aug 5, 1992|
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