Printer Friendly

VARITY CORPORATION GIVES NOTICE OF PLAN TO REDEEM CLASS I CONVERTIBLE PREFERRED STOCK

 BUFFALO, N.Y., Sept. 29 /PRNewswire/ -- Varity Corporation (NYSE: VAT) said it has given notice to redeem on Oct. 27, 1993 all outstanding shares of the company's Class I Series A convertible preferred stock at the redemption price of U.S. $20.00. In Tuesday trading on the New York Stock Exchange, Varity's convertible preferred stock closed at U.S. $25.375.
 Smith Barney Shearson Inc. and Salomon Brothers Inc have agreed to act as standby purchasers in connection with the redemption, the company announced.
 The company said holders of its Class I Series A convertible preferred stock have the option of converting each share into .6849 shares of Varity's common stock (a conversion price of U.S $29.20 per common share). In yesterday's trading, Varity common stock closed at U.S. $37.50. The right to convert preferred stock into common stock will expire permanently at the close of business on Oct. 20, 1993.
 Varity's board of directors has declared regular quarterly dividends of U.S. 32.5 cents ($ 0.325) per share on Class I Series A convertible preferred shares, U.S. 38.25 cents ($0.3825) per share on Class I Canadian Series A preferred stock, and Cdn 40.625 cents (CDN $0.40625) on Class II Series A preferred stock, all payable Oct. 30, 1993, to shareholders of record at the close of business on Oct. 22, 1993.
 Since the declared regular quarterly dividend on the Class I preferred shares is payable to shareholders of record on Oct. 22, 1993, holders who convert will not be entitled to the dividend.
 Holders of Class I Series A convertible preferred shares who do not convert to common stock by Oct. 20, 1993, or do not sell their shares on the open market by the close of business Oct. 27, 1993, will receive the redemption price of U.S. $20.00 per share, the company explained.
 Mellon Securities Trust Company is serving as conversion/redemption agent in the Varity transaction.
 Letters of Transmittal, as well as materials relating to the redemption/conversion of Varity's Class I Series A convertible preferred shares may be obtained from the information agent: Shareholder Communications Corporation, 40 Exchange Place, New York, N.Y. 10005.
 -0- 9/29/93
 /CONTACT: Mary Beth Saba of Varity, 716-888-8038/
 (VAT)


CO: Varity Corporation ST: New York IN: AUT SU:

BM -- CL013 -- 6838 09/29/93 12:59 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 29, 1993
Words:401
Previous Article:ROCHESTER COMMUNITY REPORTS THIRD QUARTER RESULTS
Next Article:AUTO GREENING SHOULD GO GLOBAL, INTERNATIONAL AUTOMAKERS SAY
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters