The Palm Beach Post from West Palm Beach, Florida on March 24, 1998 · Page 29
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March 24, 1998

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The Palm Beach Post from West Palm Beach, Florida · Page 29

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West Palm Beach, Florida
Issue Date:
Tuesday, March 24, 1998
Page:
Page 29
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w w w w n w w www www w ww'www 1 of ' f t u m w w w w"w vwwvwywwww ww t m w-www m m m m m- THE PALM BEACH POST TUESDAY, MARCH 24, 1998 11B Servico through the years Servicers holders of stock get 1-for-l deal Mexico-based American Proper-, ties. Two months later, the deal is ,; called off. September 1997: Buddemey-er also becomes chairman, re: placing Adams, who resigned. -' ' November 1997: Servico buys : the Sheraton at 630 Clearwater Park Road in West Palm Beach for $14 million. ; March 23, 1998: Servico and " Impac announce a merger to create Lodgian, the country's largest independent, multi-brand owner and operator of hotels,' with 136 hotels. : Opening bid: $3.50. July 1995: Servico announces the company, which owns and manages 45 hotels, is for sale. December 1995: Servico drops plans for a merger or sale. CEO Hawthorne says he will leave the company, which now owns and manages 55 hotels. David Bud-demeyer, Servico's president, becomes CEO. John Adams, Servico's biggest shareholder, becomes chairman. April 1997: Servico announces a deal to sell the Omni Hotel in West Palm Beach to New thorne is hired as Servico's president. August 1991: Bankruptcy court approves settlement between Servico and Prime. Servico keeps assets, Prime gets four mortgages. May 1992: Bankruptcy court approves Servico's reorganization plan, which calls for the company's secured creditors to become its owners and for the company to go public. August 1992: Servico common stock begins trading on the American Stock Exchange. July 1988: FCD Hospitality Inc. of California offers $28 a share or $106.4 million for Southniark's stake. April 1989: FCD completes the deal at a reduced price of $74 million. A loan from Prime Motor Inns of New Jersey finances the deal. FCD agrees to pay Prime a $64 million consulting fee. September 1990: Servico and Prime file for Chapter 11 bankruptcy protection. Servico lists $310 million in assets, $352 million debts. October 1990: David Haw 1958: A group of ministers creates a Memphis-based company, Southern Christian Corp., to establish Baptist schools. 1966: The company is renamed Servico and becomes hotel owner and manager. 1969: Servico buys eight hotels owned by Motel Holding Corp. 1978: Servico moves to West Palm Beach. Late 1985 and early 1986: Southmark Corp. of Dallas buys a 49 percent stake in Servico, paying $32 a share. which includes Cole and other senior managers and owns 25 SERVICO From 5B become president. They will serve as co-chairmen of the new company's board. Some of Servico's 85 local employees, based in offices on Belvedere Road, across from Palm Beach International Airport, will be offered jobs in Atlanta, but Cole said it's not yet clear how many. The move to Atlanta makes sense, he said, because it is much more centrally located to the new company's holdings. Servico officials didn't return phone calls Monday. Cole said the companies are a good fit because both "have a very similar merger and growth philosophy of buying underper- forming properties at a discount and repositioning and renovating them to create value." One of Impac's strengths is that it has an in-house renovation company, he said. Servico shareholders will receive one share of Lodgian common stock for each Servico share they hold. Impac shareholders will receive a total 6 million Lodgian shares. Impac's two main owners are Protrust Capital, based in Atlanta, which owns 50 percent of the company, and Impac Associates, percent. Impac's owners will receive about $12 a unit for their shares in the limited liability company, Cole said. Hotel consultant Scott Brush of Brush & Co. in Miami said he isn't surprised by the deal. "Because of the consolidations of the industry, they were going to have to acquire or be acquired if they wanted to remain" in the A three-year relationship that wont turn ugly when it ends. Leasing a Saturn isn't like leasing a lot of other cars. For one thing, we walk you through the whole process, so it's easy to understand. And once the term of the lease is up (in three years), you can either refinance Paxson buying stake in local TV station what's left, or you can just give the car back FFI to us. And we'll always have our memories. SATU1N. $129M0NTH $9.75 a share. Its family oriented programming will include reruns of episodes of Touched by an Angel. It will compete with established networks such as ABC, CBS and NBC. As the company gears up to launch its nationwide network, "the near-term bumps in the road are many and large," said Bishop Cheen, an analyst at First Union Capital Markets. The company is really "a one-man show," Cheen agreed. "Bud Paxson is a very fast-moving guy. At the end of the day, shareholders have always gotten a wonderful payday." Staff writer Julie Waresh contributed to this report. company has been buying television stations and construction permits to build additional stations. It said last week that it will buy 90 percent of WPXP-Channel 67 in West Palm Beach. Paxson Communications will own or operate 77 stations reaching more than 72 percent of U.S. homes with televisions. The company will have stations in each of the nation's top 20 markets. "The stock has responded as the company has gotten its strategic act in place and conveyed that to the market," Grossman said. The company's shares (AMEX: PAX) have risen about 42 percent since December, but closed down 31 cents Monday at PAXSON From 5B ognizing the efforts of the company's management in assimilating, operating and arranging the sale of the radio stations and related properties," the SEC filing said. The two outside members of Paxson Communications' compensation committee resigned last year, and the company "anticipates adding additional people to the committee very quickly," Grossman said. The company's board approved executive bonuses, and "(Paxson) is not the sole decision-maker." As it sold its radio assets, the 36-month lease, $1,424 due at signing No security deposit required Payments based on 1998 Saturn SI, including 5-speed transmission. AC and transportation, with M.S.R.P of $11 $95. License, title, registration fees, taxes and insurance are extra. First month's lease payment of $129 plus $800 down payment and $495 acqusition fee ($1424 due at signing). Option to purchase at lease-end for $7,108. 36 month payments total $4,644. Primary lending source must approve lease. Mileage charge of $.15 per mile over 36J0OO miles. Lessee is responsible for excessive wear and use. Payments may be higher in some states. Delivery must be taken from participating retailer by 4130198. t1998 Saturn Corporation, ioww.saturn.com A DIFFERENT KIND of COMPANY. A DIFFERENT KIND CAR. . ., vj . . ittMis r s New Legislation, New Opportunities. . . Free Roth IRA Seminar It v , - 1 ' , n m ... Buy the amazing Sony CM-zioo phone from Sprint PCS, get a $100 MAIL-IN REBATE. nr Date: Thursday, March 26 Time: 6:00 PM . Place: Doubletree Hotel In The Gardens IRAs are no longer just for retirement! You can now use the new IRA rules to save for college or even a first home! To make sure you make the most of these new savings opportunities, plan to attend Dean Witter's free IRA seminar. You'll learn about the new Education IRA and the new "tax-free" Roth IRA. And find out how the traditional IRA has been enhanced to provide even greater benefits. Admission is free but seats are limited. Reserve your place by phoning: Speakers: Manley Thaler, ESQ., Thaler & Thaler, P.A Sherri Ferguson, Hartford Life Insurance Company JACKIE YOUNG 776-6440 DEAN WITTER O 1997 Don Witter Reynolds Inc. Member SI PC At 5.3 ounces, the Sony CM-Z100 phone from Sprint PCS is smaller than a deck of cards. But don't let its ultracompact size fool you. This phone is packed with features. And now is definitely the time to get one: It "11 cost just $299 after the rebate if you act by March 29, 1998. Sign up for our $991,000 Minutes plan and pay no roaming charges anywhere on the Sprint PCS nationwide network. Your calls will sound clearer because it's a 100 digital, 100 PCS connection. QpanklUnited fin MM WoUM 3 (sm V gagrauco OLD fiiJAil((!B 1-800-480-4PCS www.sprintpcs.com i m KWfgJi mwcor mm Sprint PCS" L- rr " Guaranteed to DELRAY BEACH The Plata at Delray 1652 S. Federal Hwy. at the corner of Linton Blvd. and Federal Hwv. (561)266-2200 The Sprint Store At (g) RadioShack. 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