Xtra Terminates Merger Talks

BOSTON — Xtra Corp. terminated merger discussions with Apollo Management and Interpool Inc. and said it intends to remain an independent public company.

The trailer and container leasing firm also announced a tender offer to buy back $75 million worth of its stock.

President Lewis Rubin said while he is disappointed that the merger did not occur, he believes Xtra is well positioned to thrive as an independent company.

"Xtra is well capitalized and has an underleveraged balance sheet," he said. "We experienced record results in 1998, thanks to a strong business environment, high demand for freight transportation equipment and our strong market positions."

Mr. Rubin said while domestic business is robust and he expects these conditions to continue in 1999, international container operations have suffered from excess capacity and low pricing levels over the last few years.

"We are currently reviewing all of our strategic options in regards to that business," he said.

Two of Xtra’s largest stockholders, Tiger Management and Trinity I Fund L.P., expressed support for the stock repurchases and will maintain their existing ownership percentage in the company, Xtra said.

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