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Metromail stock delivers
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February 11, 1998: 11:01 a.m. ET
Marketing database firm's shares surge after it hints at possible sale
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NEW YORK (CNNfn) - Shares of database company Metromail Corp. delivered strong gains Wednesday after word reached investors that the company had put out feelers looking for a buyer.
The company's stock (ML) jumped 7-1/2 to 25-1/4 in early trading Wednesday.
After markets closed Tuesday, Metromail announced its board of directors had retained Lehman Brothers Inc. to advise the company on strategic alternatives, including a possible sale.
Metromail provides direct marketing database products and services to companies in the United States and United Kingdom. The company assists its customers in identifying and reaching target audiences using its computer database, which has information on more than 95 percent of U.S. households.
Metromail Chairman Barton Faber said the company, which had sales of $328 million, would use its strong financial position to garner a good price.
"We believe our current stock price is at a level substantially below the long-term potential of the business," Faber said.
Faber stated that he had received several, unsolicited indications of interest from possible buyers, but wouldn't identify them.
Lombard, Ill.-based Metromail has 3,200 employees. In addition to the Metromail name, the company markets products and services through subsidiaries and divisions carrying other brands, including Atlantes Corp., ICD Marketing Services, Customer Insight Co., Cole Information Services, Marketing Information Technologies and On-Line Services.
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