$22 Billion in Mergers, Purchases Announced

U.S. companies on Monday announced about $22 billion of proposed mergers and acquisitions, extending a two-year explosion in corporate purchases.

PacifiCorp’s $10.3-billion bid for Britain’s Energy Group was the biggest proposed transaction, topping Texas Utilities Co.’s $10.2-billion agreement announced earlier in the day.

In a $3.6-billion agreement, Owens-Illinois Inc. said it would buy the glass and plastic packaging businesses of Britain’s BTR, Owens’ biggest acquisition. Sunbeam Corp. agreed to buy consumer-product firms Coleman Co., Signature Brands USA Inc. and First Alert Inc. for a total of $2.5 billion in stock, cash and assumed debt.

Many companies are buying rivals to expand their product lines and market share. They’re able to do so partly because a strong economy and low interest rates have boosted their stock, allowing them to use shares as currency for acquisitions.

So far this year, companies announced about 1,500 merger and acquisition agreements valued at $141.4 billion, according to Securities Data Co. In the same period last year, there were about 1,600 announced, valued at $132.3 billion.

In the bidding for Energy Group, Dallas-based Texas Utilities said it was considering raising its own offer. Portland, Ore.-based PacifiCorp said it had acquired about 8.6% of the outstanding capital in the British company.

On the New York Stock Exchange, PacifiCorp shares rose 56 cents to close at $23.63; Texas Utilities rose 13 cents to $40.56; and Energy Group’s American depositary receipts jumped $3.13 to $54.50.

Among other transactions Monday:

* American International Group matched a rival bid from Cendant for American Bankers Insurance Group, raising its earlier offer by 23% to $58 a share, or $2.7 billion in cash and stock. American Bankers stock advanced $5.13 to close at $61.38, suggesting that investors expect Cendant to boost its offer. Cendant shares edged down 25 cents to $37.25. Both trade on the NYSE.

* Steelmaker WHX reached an agreement to buy Handy & Harman in a sweetened deal of about $645 million in cash and assumed debt. WHX shares rose $1 to $14.41 and Handy & Harman shares jumped $1.56 to $34.88 on the NYSE.

* Wang Laboratories agreed to acquire Olivetti & Co.’s Olsy unit for $390 million in cash and stock as it bulks up its computer-services business. Wang’s shares rose 88 cents to $28.75 on the Nasdaq. ADRs of Italy’s Olivetti surged 11 cents to $1.64 in over-the-counter trading.

* Corning said it plans to sell its consumer-housewares business to Borden for $603 million, relinquishing its Corning Ware, Revere Ware and Pyrex brands. Borden is privately held by its management and the investment firm Kohlberg Kravis Roberts & Co. Corning shares slipped 63 cents to $40 on the NYSE.