Xtra Terminates Talks, Offers to Buy Back Stock

BOSTON — Xtra Corp. ended 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 an offer to buy back $75 million worth of its stock.

Xtra had previously canceled a deal in which Apollo, a New York-based investment firm, and Interpool, a container leasing company, would have acquired control of the company in a leveraged buyout. The transaction floundered because of financing problems, but discussions with the parties about an alternative transaction continued (TT, 12-7-98, p. 6).

President Lewis Rubin said he is disappointed that the merger did not occur, but he believes Xtra can 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 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.