Columbia-HCA, Healthtrust to joinColumbia-HCA Healthcare...

BUSINESS DIGEST

October 05, 1994

Columbia-HCA, Healthtrust to join

Columbia-HCA Healthcare Corp., the nation's largest hospital company, said yesterday that it will merge with HealthTrust Inc. in a $5.4 billion transaction.

After the merger, in which Louisville, Ky.-based Columbia will pay 0.88 share of its stock for each HealthTrust share and assume about $1.8 billion in HealthTrust debt, the combined company will own and operate 311 hospitals and have about 170,000 employees. Annual revenue of Columbia after the merger is expected to exceed $15 billion.

HealthTrust, with headquarters in Nashville, Tenn., has about 115 hospitals in 21 Southern and Western states.

BGE requests cut in fuel rate

The Baltimore Gas and Electric Co. has asked the Public Service Commission to cut the electric fuel rate by 5.3 percent, which will shave about 43 cents off the monthly electric bill of a residential customer using 600 kilowatt hours.

The fuel rate decrease, which is automatically approved by the PSC, results from the utility generating more electricity at its Calvert Cliffs nuclear plant and selling more power to the Pennsylvania, New Jersey and Maryland electric interchange. This is the ninth consecutive fuel rate decrease in three years.

Legg Mason off S&P watch list

Standard & Poor's Corp. said yesterday that it removed about $70 million of Legg Mason Inc.'s debt from its CreditWatch list, where it had placed the debt "with negative implications" after the Baltimore investment firm's Sept. 19 announcement that it was in talks to acquire Batterymarch Financial Management Corp.

S&P said it now expects Legg Mason to limit its risk by keeping Boston-based Batterymarch separate from existing businesses and by funding the acquisition with cash on hand.

Frederick, Elkridge banks joining

FCNB Corp., a bank holding company in Frederick, has signed a definitive agreement to acquire ENB Financial Corp., parent of the Elkridge National Bank, the companies said yesterday. The stock deal is worth just over $10 million, according to FCNB, which is the parent of Frederick County National Bank, with about $420 million in assets. ENB has three branches and about $80 million in assets.

Mack gets productivity award

Mack Truck Inc., the Allentown, Pa.-based maker of heavy trucks, has received the Senate Productivity Award, which recognizes efforts by private and government organizations to improve quality and productivity. The award particularly noted Mack's power train division in Hagerstown.

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