Bell Industries Plans Move to Nasdaq From NYSE
18 January 2000
Bell Industries Plans Move to Nasdaq From NYSE
EL SEGUNDO, Calif.--Jan. 17, 2000--Bell Industries Inc. today said it plans to move the trading of its securities to Nasdaq from the New York Stock Exchange (NYSE).The company believes that this move is beneficial as it will align Bell with peer-group stocks and enhance its exposure to a trading market with a strong technology background.
"Following the large cash distributions to our shareholders of the net proceeds from the sales of certain business assets, Bell's shareholders' equity has fallen below the minimum required for continued listing on the NYSE," said Tracy A. Edwards, president and chief executive officer. Bell had the option to present a plan to the NYSE for the purposes of continued listing but declined.
"With Bell's primary business, systems integration, focused in the technology arena, our board of directors and management believe Nasdaq is the appropriate trading forum for our securities," Edwards continued. "We view the move to Nasdaq as a positive development since it will place Bell in a market with a strong technology emphasis."
The company said Nasdaq has given Bell preliminary approval but a timetable for the move has not been determined. The company believes that there should be no disruption in the trading market for Bell securities because of the switch.
Bell sold its graphics imaging business in September 1998 and its electronics distribution business in January 1999, and subsequently made two cash distributions to shareholders totaling approximately $67 million, or $7 per share. The company's current annual sales are approximately $240 million, and shareholders' equity is approximately $28 million.
Edwards also said that during a telephone conversation that he had initiated, Warren Buffett informed him that he had sold his 5.3 percent stake in Bell. Edwards said he did not believe that Buffett's decision reflected any change in his assessment of the company but was due to the dramatic rise in the price of Bell's stock during the past month.
"Normally, the sale of stock would not be an event upon which I would comment," said Edwards. "However, because of the stature of Mr. Buffett and the significant increase in the price of Bell's stock immediately following the disclosure of his purchase in December, I felt that a public announcement of Mr. Buffett's sale was appropriate."
Bell's primary business is the systems integration group, a multiregional provider of integrated computer technology solutions for large and medium-sized organizations. Bell also distributes aftermarket parts and accessories to the recreational-vehicle market and manufactures specialized products for the computer and electronics industry.