Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, May 31, 1995 TAG: 9506010018
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
It is the second time in a year that Ferguson, Andrews has been left standing at the altar. A preliminary agreement for Ferguson, Andrews to buy Anderson & Strudwick of Richmond fell through last March.
J. Gray Ferguson, founder and chairman of the securities firm, said in a written statement that he and James C. Bradford Jr., head of the Nashville-based stock brokerage, had ended their discussions on a possible merger into a joint brokerage. They had signed a tentative agreement May 11.
The stumbling block, he said, was "the issue of our people working with their people."
"I don't find this situation unfortunate at all," Ferguson said, adding that he was enthusiastic about the future of the business. He said Ferguson, Andrews had one of the largest brokerage operations in Roanoke and Lynchburg and the biggest in Bristol.
The tentative agreement between the two companies would have resulted in a merger of the Ferguson, Andrews and J.C. Bradford offices in both Roanoke and Lynchburg.
T. Michael Smith, president of Ferguson, Andrews, said the reference to people working together meant that "egos and personalities" got in the way while the "dynamics and economics of the business were ignored."
Asked about the possibility of still another attempt at merger, Smith said the company had tried two times and they "haven't worked. Maybe the third time will be a change."
But he said that the two merger negotiations have been "very, very distracting" to the staff. "I don't think we'll try this for a while."
Smith said Ferguson, Andrews, which is beginning its fourth year in business, is "so close to being successful."
The company said when it was founded that its business plan called for it to turn profitable in the fourth year. Smith said this appears to be working out as planned; "We're just so close to being there."
Ferguson, Andrews has closed its brokerage operation in Charlottesville, using that office solely for Ferguson, Andrews Investment Advisors Inc., its money management subsidiary.
The company abandoned its Richmond office this year, and it pulled out of Northern Virginia last year.
The company had to downsize, Smith said. But now, he said, "We've got it down to the point where we can make it work."
Bradford said at his Nashville headquarters that ``we just couldn't work out some of the details.'' He had been hoping for a merger, and said he found the situation ``unfortunate.''
He said he and his staff had spent a lot of time trying to work through the details, but "it just didn't fall into place."
by CNB