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   Non-TechMergers anyone hear of rumors


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To: Keith Anderson who wrote ()2/7/1997 3:29:00 PM
From: Robert W. Boyce
   of 16
 
I have just been reading about the rumor that they might be buying Unisys Corp. Any info on this. (Search on Unisys and read the comments)

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To: Keith Anderson who wrote ()5/6/1997 12:52:00 PM
From: David M. Siperek
   of 16
 
Rumor that PWJ will be aquired at $40 per share!

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To: Keith Anderson who wrote ()6/24/1997 11:49:00 AM
From: Lee W. Rath
   of 16
 
I've heard a rumor that KM's Builder's Square will be offering $5.00 per share for Hechingers (HECHA). HECHA is now at $2.25 per share, and may correct downward before an announcement this week. Heard that the $3.00 per share news article was a teaser to get things heated up before the real thing occurred. Can anyone confirm this???

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To: Lee W. Rath who wrote (8)6/24/1997 1:47:00 PM
From: Bram12345
   of 16
 
Lee, I know HECHA is in talks with various companies for a buyout of
$3.00/share. Where did you get the rumor about KM's Builder's Square
offering $5.00/share. It would be nice if the Builder's Square offer
did pan out.

Also, where did you get info about an annoucement for this week? Any
feedback would be greatly appreciated!

Thanks,

Ben

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To: Bram12345 who wrote (9)6/24/1997 3:52:00 PM
From: Lee W. Rath
   of 16
 
I got the rumor from a Hechingers dept. supervisor who attended a in-store management meeting and from what he could gather it seemed like a done deal with KM, because the Manager of the store asked not to quoted... I trust the supervisor, but I don't know about the Manager ... he wouldn't have any reason to lie, would he?

Here's the latest news on HECHA through Yahoo:

quote.yahoo.com

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To: Lee W. Rath who wrote (10)6/24/1997 4:23:00 PM
From: Bram12345
   of 16
 
Lee, thanks for the feedback! But when did you get info from the
supervisor, and is the supervisor a friend of yours? Did he say
there would be an annoucement this week?

Why do you think the stock will correct downward?

Thanks again!!

Ben

My email is bramirez@austin360.com

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To: Bram12345 who wrote (11)6/24/1997 5:26:00 PM
From: Lee W. Rath
   of 16
 
<<when did you get info from the supervisor, and is the supervisor a friend of yours?>>

Over the weekend at a picnic, he's a "close acquaintance" who's very accountable and knows the retail business pretty good.

<<Did he say there would be an annoucement this week?>>
That's the one thing he didn't really have a good handle on.

<<Why do you think the stock will correct downward?>>
When the $3/share announcement came out it shot up to $2.75; it closed today at $2.125 - my reasoning is that the initial announcement created the upswing, but lack of news as to who is buying HECHA as well as when a buyout might take place is creating doubt where people are taking profits while they can.

I would just feel better about it if I got just one confirmation from another source - not that I doubt my friend, but who know what can happen in the meantime?

I know KM was trying to sell Builder's Square, but consider this angle; if there were no takers for BS as is, why not shore up KM's interest in the Home Improvement arena and sell BS + HECHA as a package deal? Or that may well be a reason to stay involved in the Home Improvement arena -- I might be streching a little, but who really knows what's up at this point???!!!!

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To: Lee W. Rath who wrote (12)6/25/1997 8:27:00 AM
From: Bram12345
   of 16
 
Lee, for your information, this is the latest news I could find.

Friday the 13th Unlucky? Not for
Some Investors

Hechinger Stock Trading Led to
Quick Profits

By Jerry Knight

Monday, June 23, 1997; Page F30
The Washington Post

-

Friday the 13th was a very lucky
day for some investors who made a
heck of a profit in Hechinger Co.
stock in a heck of a short time.

Nasdaq Stock Market records
strongly suggest that somehow word
leaked out about the $3 a share
bid for Landover-based Hechinger
that was announced last Tuesday.
Hechinger Class A shares (HECHA)
had been trading for half that
price over the previous few weeks
and volume had been low, averaging
about 240,000 shares a day.

During the previous week trading
picked up slightly on June 12, to
about 350,000 shares, and the
stock inched up to $1.50 a share
from $1.44. But on Friday the
13th, trading surged to 640,000
shares, nudging the price up to
$1.69 by the close of the session.

The increased volume and
unexpected gain in the price were
clues to Hechinger watchers and
short-term traders that something
might be happening.

Monday morning, more buy orders
came in. Volume jumped to more
than 917,000 shares, pushing the
stock to more than $2 a share for
the first time since March.

On Tuesday, the unusual trading
set off the alarms at Nasdaq's
surveillance bunker in Rockville,
where computers monitor trading in
thousands of stocks.

Nasdaq's computers aren't the only
ones programmed to spot such
moves. Short-term traders use the
same techniques and join in the
buying when they see a stock start
to move. Those traders rarely
bother to find out why a stock is
suddenly moving up; they just
climb aboard the train.

Meanwhile, the Nasdaq market
watchers called Hechinger to find
out whether something was going on
that investors were entitled to
know about. Under pressure from
Nasdaq, the company then disclosed
the unsolicited offer from
California dealmaker Leonard
Green.

Green wants to buy Hechinger and
the Builders Square Inc. chain,
which is owned by Kmart Corp. Like
Hechinger, Builders Square is
getting creamed by Home Depot Inc.
and Lowe's Cos. Green figures that
merging Hechinger and Builders
Square will create a company big
enough to stand up to Home Depot.

If successful, Green's strategy
could produce handsome long-term
gains, but for short-term profits
it's hard to beat the money that's
already been made. A share of
Hechinger stock that sold for
$1.50 on June 12 was worth $2.50
just five days later. That's 66
percent in a week.

The traders who paid $1.69 a share
on Friday the 13th had a gain of
27.7 percent when the market
closed a week later at 2.156 1/4.

c Copyright 1997 The Washington
Post Company

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To: Bram12345 who wrote (13)6/25/1997 8:42:00 AM
From: Lee W. Rath
   of 16
 
Check out this clip from the following news article:

biz.yahoo.com

"In April, Waban and Kmart Corp(KM - news) called off talks to merge HomeBase with Kmart's Builders Square division.
Under the deal, Leonard Green & Partners LP, an investment banking firm, was to be the chief stockholder in the new
company.

Kmart declined to say whether it was considering a combination with Hechinger. The company has continued working with
Leonard Green to sell Builders Square, although it would disclose any possible suitors, said spokesman Robert Burton. "

********************************************************
My friend has also told me to keep an eye out for the name Leonard Green, because he is a major shareholder of KM... here we go ... what about this? What if Green is buying Builder's Square from KM and is buying Hechinger's as well? Or maybe he will help KM buy Hechingers, then buy Builder's Square and Hechingers from KM?

I also wonder how strong the possibility is that Sears is really the main suitor. My friend told me they were out of the picture at this point. We're now down to 2 1/8 ... I'm definitely in under $2!

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To: Lee W. Rath who wrote (14)7/18/1997 2:09:00 PM
From: Allen Furlan
   of 16
 
If you didnt get in yet consider HECHH the 5.5% bond of 2012. I have been holding for a year and recently bought more. My rationale as a bond holder was that a probable scenario was a continued slide in sales but intermediate term continuation of dividends based on relatively solid balance sheet and sufficient cash if one adds back in depreciation to negative earnings. In case of foreclosure my estimate was 20 cents on the dollar and the bond was trading at 28 cents on the dollar. Now with buyout the bonds should be redeemed, hopefully at par. The dollar figure quoted in the press will pay about 130 million to stock holders and 370 million to debt holders. If the deal collapses the bonds will probably collapse from 44 back to 27-28 which is less risk than the stock going from 2.75 to 1.5. I received no callback from the company and need to check the provisions of the identure but most of the time there is a provision that bonds are redeemed on change of control.

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