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,
john.daggett@maytag.com
SOURCE Maytag Corporation
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Related links:
http://www.maytagcorp.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
John Daggett, Maytag Corporate
Communications, +1-641-787-7711, john.daggett@maytag.com
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