Maytag Corporation Challenges Legislators' Letter
13 Enero 2006 - 1:08PM
PR Newswire (US)
NEWTON, Iowa, Jan. 13 /PRNewswire-FirstCall/ -- Maytag Corporation
(NYSE:MYG) said today that it was disappointed to learn that U.S.
Sen. Tom Harkin (D - Iowa) and U.S. Rep. Leonard Boswell (D - Iowa)
had sent a letter to the Justice Department expressing concern
about the competitive effects of Whirlpool Corporation's (NYSE:WHR)
proposed merger with Maytag. (Logo:
http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO ) Maytag said
that the letter ignores fundamental competitive realities of the
appliance industry. The four largest U.S. retailers now control
over 65 percent of U.S. appliance sales, and, as a result, exert
tremendous pressure on appliance suppliers to be competitive on
price and features. Moreover, foreign competitors like LG, Samsung,
Haier and Bosch-Siemens, with strong consumer brands, are expanding
rapidly at these and other retail outlets. Maytag added that the
transaction will result in significant efficiencies that will make
the combined firm better able to compete with growing foreign
competition, as well as with its traditional rivals -- GE,
Frigidaire and Sears' Kenmore brand of products. Maytag also noted
that the market shares contained in the letter are significantly
overstated. Through their letter, it is obvious that Sen. Harkin
and Rep. Boswell are concerned about job loss in Iowa. However, it
is important to note that whether or not a transaction occurs, the
tough environment in which appliance industry manufacturers operate
will continue to impact employment levels at facilities that are
not cost competitive. About Maytag Corporation Maytag Corporation
is a $4.8 billion home and commercial appliance company focused in
North America and in targeted international markets. The
corporation's primary brands are Maytag(R), Hoover(R), Jenn-Air(R),
Amana(R), Dixie-Narco(R) and Jade(R). Maytag Additional
Information: This document includes statements that do not directly
or exclusively relate to historical facts. Such statements are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements may include
statements regarding benefits of the proposed transactions,
expected cost savings and anticipated future financial operating
performance and results, including estimates of growth. These
statements are based on the current expectations of management of
Maytag. There are a number of risks and uncertainties that could
cause actual results to differ materially from the forward-looking
statements included in this document. For example, with respect to
the transaction with Whirlpool (1) conditions to the closing of the
transaction may not be satisfied or the merger agreement may be
terminated prior to closing; (2) Maytag may be unable to obtain the
regulatory approvals required to close the transaction, or required
regulatory approvals may delay the transaction or result in the
imposition of conditions that could have a material adverse effect
on Maytag or cause the parties to abandon the transaction; (3)
Maytag may be unable to achieve cost-cutting goals or it may take
longer than expected to achieve those goals; (4) the transaction
may involve unexpected costs or unexpected liabilities; (5) the
credit ratings of Maytag or its subsidiaries may be different from
what the parties expect; (6) the businesses of Maytag may suffer as
a result of uncertainty surrounding the transaction; (7) the
industry may be subject to future regulatory or legislative actions
that could adversely affect Maytag; and (8) Maytag may be adversely
affected by other economic, business, and/or competitive factors.
Additional factors that may affect the future results of Maytag are
set forth in its filings with the Securities and Exchange
Commission ("SEC"), which are available at
http://www.maytagcorp.com/ . Maytag undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. Media
Contact: John Daggett Maytag Corporate Communications (641)
787-7711, http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO
http://photoarchive.ap.org/ DATASOURCE: Maytag Corporation CONTACT:
John Daggett, Maytag Corporate Communications, +1-641-787-7711, Web
site: http://www.maytagcorp.com/
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