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Laidlaw buying Greyhound
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October 19, 1998: 8:40 a.m. ET
Canadian company paying $650M cash and stock for U.S. bus line
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NEW YORK (CNNfn) - Laidlaw Inc., a Canadian transportation company, agreed Monday to buy Greyhound Lines Inc. in a deal valued at $650 million.
Under terms of the deal, Laidlaw will acquire all of Greyhound's outstanding shares, of which there are approximately 60 million common and 2.4 million convertible preferred shares outstanding.
Greyhound stockholders will receive $6.50 per common share. Up to $4 of that amount, at Laidlaw's option, could be satisfied with Laidlaw common shares.
The companies have scheduled a tentative special meeting sometime in January to seek shareholder approval.
"A united Greyhound operation serving travelers across Canada and the U.S. and Mexico has distinct advantages," said Laidlaw Chief Executive James R. Bullock. "Laidlaw becomes the largest inter-city passenger carrier and gains an otherwise unattainable platform and brand recognition for the expansion of the tourism and coach business in North America."
He also said the companies will realize operating synergies in vehicle purchase, insurance, financing, head office and public company costs.
Greyhound President and Chief Executive Officer Craig Lentzsch, along with his management team, will join Laidlaw. His management title wasn't specified.
Based on Greyhound's fiscal 1999 revenues, which are expected to reach $900 million, Laidlaw said the acquisition will be accretive to earnings once the integration process is complete.
Greyhound, which serves 2,600 destinations, is the only nationwide intercity bus operator in the country.
Laidlaw, based in Burlington, Ontario, is North America's largest provider of patient transportation, emergency department management, school busing and municipal transit services.
Shares of Laidlaw (LDW) closed up 3/16 at 9-11/16 Friday on the New York Stock Exchange.
Shares of Greyhound, traded on the American Stock Exchange, finished up 1/8 at 4-7/8. 
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Laidlaw
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