[0] Record Oil Merger Amoco Employees Hope for the Best in Merger with BP

By Culloton, Dan | Daily Herald (Arlington Heights, IL), August 12, 1998 | Go to article overview

[0] Record Oil Merger Amoco Employees Hope for the Best in Merger with BP


Culloton, Dan, Daily Herald (Arlington Heights, IL)


Byline: Dan Culloton Daily Herald Business Writer

The news snapped Terry Wallace awake as he dragged a razor across his face during his normally sleepy morning routine.

The voice on the radio reported British Petroleum PLC was buying his employer of 21 years, Amoco Corp. in the biggest merger in oil industry history.

"What did they say?" Wallace's wife shouted from another room in their Naperville home.

"A good deal just happened," he said.

"What does that mean for you?"

"I don't know."

BP's $48 billion purchase of Chicago-based Amoco simultaneously excited and jangled the nerves of Wallace and thousands of other local Amoco employees.

The Amoco headquarters downtown and its offices in the West suburbs vibrated with speculation after BP announced it was offering 3.97 of its shares for each Amoco share, or about $50 per share.

Including assumed debt, the deal is worth about $54 billion, beating out the $42 billion merger of Chrysler Corp. and Daimler-Benz as the largest proposed industrial merger to date, according to Securities Data Corp.

The new BP Amoco PLC will be one of the top three oil companies in the world with Royal Dutch/Shell Group and Exxon.

It also will be the largest company in Britain, with an initial market capitalization of $110 billion and revenue of $108 billion.

Amoco's stock jumped $6 Tuesday to $46.87 1/2, while BP's American Depository Receipts, worth six of its London shares, rose $2.12 1/2 to $78.12 1/2, both on the New York Stock Exchange.

The deal is expected to strengthen both companies' positions in a consolidating industry, wracked by low prices and to create abundant opportunities for ambitious workers.

That is for the ones who are left.

The new company expects to cut 6,000 of its combined work force of 100,000 as it tries to generate $2 billion in cost savings and extra earnings by 2001.

BP Amoco will make most of the cuts in the United States as it consolidates the Houston offices of both companies and loses 1,000 jobs when it closes BP's current North American headquarters in Cleveland, Ohio.

"We can assume that administrative departments will be more vulnerable to cuts than the operational personnel and research people," said John Kennedy, editor of Oil & Gas Journal in Houston. "The reason I say that is because there already has been some downsizing of operational people and now there is a real call for engineers and technical people in the industry."

Local employees interviewed Tuesday took encouragement from such predictions and BP Amoco's apparent decision to maintain a strong presence in the Chicago area.

"Overall the merger is going to make Amoco a stronger company in the United States and in the Chicago area," said James Siddall, a manager who has worked for Amoco for 17 years. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

[0] Record Oil Merger Amoco Employees Hope for the Best in Merger with BP
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.