PACKARD BELL GETTING BIGGER
By Adnews Staff
The NEC Corporation of Japan and France's Machines Bull have made an agreement which would see them injecting a large dose of cash into Packard Bell Electronics. Also, Bull's Zenith Data Systems is being merged with Packard Bell, which means the latter gains a line of notebook computers. The deal, expected to close at the end of this month, would create the world's biggest personal computer company, producing 7.5 million units a year. The enlarged Packard Bell displaces Compaq Computer of Houston, Texas in the number one spot among PC makers worldwide. Compaq made 5.9 million units last year. NEC and Bull are going to invest a total of $650 million(US). NEC will provide about $280 million in cash and the remainder in Zenith Data Systems assets. The Wall Street Journal, citing "a person close to the deal," says that in three to five years NEC and Bull could convert preferred shares of Packard Bell, which they are picking up in the deal, into common stock. The Journal says that NEC and Bull could end up with more than 50% ownership of Packard Bell. Before the latest agreement, Bull and NEC each held 20% of the voting stock of Packard Bell. NEC also owns 17% of Bull.
In Canada, advertising for NEC is created in-house with the help of The Cohen Group of Toronto. Cohen also does media buying. Made-in Canada material is used, as well as creative from Houston Effler of Boston. Public relations are handled by Continental PIR of Toronto. Canadian advertising for Zenith is done by Avant-Garde Marketing & Production in Unionville, Ont. Computers are not sold under the Bull name in North America.