Liberty Financial to buy ColonialLiberty Financial Cos...

BUSINESS DIGEST

October 14, 1994

Liberty Financial to buy Colonial

Liberty Financial Cos. Inc. said yesterday that it has agreed to acquire the Colonial Group Inc. for about $310 million in cash and stock.

Colonial is the nation's 29th largest mutual fund company, with $14 billion in assets under management for 800,000 investors.

Liberty, with about $29 billion in assets under management, is a subsidiary of financial services conglomerate Liberty Mutual Group.

Under the proposed deal, Colonial stockholders would have a choice of swapping each Colonial share for $40 in cash; one share of common stock in Liberty Financial Cos.; or 0.77 share of a newly issued preferred stock.

CBS stock continues to drop

CBS Inc.'s shares continued their slide yesterday, following the company's report of a 51% drop in third-quarter earnings on Wednesday and subsequent cautions from analysts.

Prudential Securities media analyst Melissa Cook lowered her rating on the stock to a "hold" from a "buy." And Merrill Lynch & Co. media analyst Jessica Reif said she was reducing her full-year earnings estimate for the New York-based broadcasting company to $20.05 a share from $20.15 because of the disappointing quarter.

The stock fell $20 yesterday, to end at $309.50, after losing $9.50 on Wednesday.

Union Pacific against merger

Union Pacific Corp. threatened yesterday to sidetrack the proposed railroad merger of Santa Fe Pacific Corp. and Burlington Northern Inc. by lobbying Santa Fe shareholders to oppose the $2.5 billion deal.

Union Pacific said Santa Fe shareholders should have an opportunity to consider its $3.25 billion bid for Santa Fe, which was rejected by Santa Fe's management last week.

Union Pacific Chairman Drew Lewis said his company would solicit proxies from Santa Fe shareholders to vote against the deal at a special Santa Fe shareholders meeting Nov. 18.

Westinghouse's Ukraine venture

Westinghouse Electric Corp. said it has formed a joint venture in the Ukraine with a former Soviet Union defense company to supply safety control systems for 14 nuclear reactors there.

Westinghouse will have a 60 percent stake in the venture with Kharton Production Association and invest $20 million, said a spokesman.

Univax names board member

Univax Biologics Inc. of Rockville has named Joseph C. Cook Jr., a former Eli Lilly and Co. executive, to its board of directors. Mr. Cook spent 28 years at Eli Lilly and Co., retiring at the end of 1993 as group vice president for manufacturing, engineering and corporate quality. He is now a management consultant to high-tech businesses.

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