Central Does the Deed — Now What — Gossip from the IPI


Central Does the Deed — Now What — Gossip from the IPI

Received the following announcement yesterday:

Central Parking Corporation today announced the completion
of its previously announced merger with an affiliate of Kohlberg & Company,
LLC, Lubert-Adler Partners, L.P., and Chrysalis Capital Partners, L.P. The shareholders of Central Parking voted to approve the
proposed merger agreement that the company entered into on February 20, 2007 at a
special meeting held on May 21, 2007.

Holders of approximately 28.4 million
shares of Central Parking voted in favor of approving the merger agreement and
the transactions contemplated thereby, representing approximately 88% of Central
Parking’s total outstanding voting shares and over 99% of the total votes cast.
As a result of the transaction, each issued and outstanding share of Central
Parking common stock was cancelled and converted automatically into the right
to receive $22.53 in cash, without interest. Effective as of today, Central
Parking’s stock will no longer be listed for trading on the New York Stock
Exchange and trading will be suspended prior to market open Wednesday, May 23,

Shareholders of Central Parking who have stock certificates
in their possession will receive instructions by mail from Computershare
Shareholder Services, Inc., the paying agent, concerning how to forward their
certificates for payment. Shareholders who hold shares through a bank or broker
will not have to take any action to have their shares converted into cash as
such conversions will be handled by the bank or broker

Now the wags and gossips of the parking world will see if their predictions come true. Will it be operations or real estate?  Will Central be "broken up?"  Will there be a wholesale selling off of real assets? Will the current management be given a goal and a timeframe?  Or will business go on as usual?

I was told at the IPI that Kohlberg et al have met with Central managers and have given assurrances that their positions are secure and that the company is a benign parent. They have even gone as far as to give the group a list of existing CEOs of companies owned by Kohlberg and told to call em and find out just how supportive an owner it can be. The results of the calls have been reassuring to Central.

I also learned that a number of senior staff have already left either on their own or with some assist, and that the New York region, for one, has already been made autonomous with all accounting functions returned from Nashville to the Big Apple.

One source told me that a list of Central’s real estate holdings has been on the "street" for at least three months.Ba

What with these a few other "just between you and me tidbits, my prediction based on the list above: — everything except the last one.



John Van Horn

John Van Horn

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