Amadeusz Juskowiak

Banner bnr to accept rexnord rex shares

Banner Industries Inc said it plans to accept for payment after the close of business today all the common shares of Rexnord Inc that were tendered under its 2625 dlr per share tender offer

Banner said its offer for all of the roughly 20 mln shares of Rexnord it did not already own expired last Friday and will not be extended

Based on a preliminary count about 198 mln Rexnord shares were tendered under the offer Banner said

Combined with the roughly five mln shares it already holds Banner said it will own about 97 pct of Rexnords shares

Banner said last Friday that it had arranged bank credit to finance most of the tender offer and the subsequent merger with Rexnord under which remaining Rexnord holders may receive 2625 dlrs a share

It said the balace of the funds will be obtained through a private placement for which Drexel Burnham Lambert Inc is acting as agent

Banner said it expects to complete the merger with Rexnord within 60 days