Reported by Star-Bulletin staff & wire
Monday, April 14, 1997
DALLAS -- Patriot American Hospitality Inc. said it agreed to acquire Wyndham Hotel Corp. and 11 hotels Wyndham manages for $1.1 billion in cash, stock and assumed debt, Bloomberg News reported. Patriot American to buy
Wyndham Hotel Corp.To pay for the purchases, Patriot said it expects to receive $1.4 billion in loans and a credit line from a group of lenders.
For Wyndham, Patriot said it agreed to pay about $611 million in stock, or $30.53 a share, and assume $152 million in debt. In addition, Patriot will pay $330 million for 11 Wyndham hotels owned by the Crow family of Dallas, plus an additional $14 million if two of the hotels meet certain results. The Crow family owns 47 percent of Wyndham.
The deal will add Wyndham's hotel management contracts and hotel brand to Patriot's string of upscale hotels. Patriot, a Dallas-based hotel real estate investment trust, owns 54 hotels with the Hilton, Wyndham and Doubletree brands, among others.
HOUSTON -- USA Waste Services Inc., continuing a spree of acquisitions that has made it the nation's third-largest trash handler, said it will buy United Waste Systems Inc. for stock valued at $1.7 billion. Under the deal, expected to close this summer, Houston-based USA Waste will swap 1.075 shares of its stock for each share of Greenwich, Conn.-based United. USA Waste agrees to pay
$1.7 billion for rival firmLast month, USA Waste agreed to acquire most of the Canadian solid-waste assets of competitor WMX Technologies Inc. for $186 million in cash and stock. In January, it agreed to acquire Allied Waste Industries Inc.'s Canadian solid waste management operations for $518 million.
Corporate earnings
SANTA CLARA, Calif.-- Intel Corp.'s first-quarter profit more than doubled, beating most analysts' expectations, as the company sold more of its faster computer chips, Bloomberg News reported. Net income rose to $1.98 billion, or $2.20 a share, from $894 million, or $1.02, in the year-earlier quarter. Sales climbed 39 percent to $6.45 billion from $4.64 billion. Intel was expected to report earnings of $2.07 a share, according to analysts surveyed by IBES International.
GM's results benefited from the comparison to a weak first quarter last year, when it took a $900 million charge for a 17-day strike at two Ohio brake plants, which virtually shut down GM's North American production.