HUNTSVILLE, Ala., Sept. 6, 2006 (PRIMEZONE) -- Wolverine Tube, Inc. (NYSE:WLV) today announced that at this time it has terminated all business combination discussions. Over the last several months, the Company has had discussions with several domestic and international parties concerning possible business combinations. The Company's Board of Directors determined that indications of interest in potential business combinations received to date are not sufficiently definitive to warrant further discussions. If the Company receives more definitive indications of interest in the future it may elect to recommence discussions.
"While business combination talks have been terminated, we are continuing, with the assistance of Rothschild, Inc., to address the need to restructure the Company's balance sheet and reduce our leverage. With our cash balances, amounts available under our liquidity facilities and anticipated cash flow from operations, we believe that we can continue to satisfy our existing working capital needs, debt service obligations and capital expenditures and other cash requirements in the near to mid-term," stated Chip Manning, President and Chief Executive Officer. Manning continued, "We are actively engaged with representatives of our bondholders and other groups as to the most appropriate transaction, if any, to reduce debt and maintain value for our shareholders. However, it is likely that any transaction that may be available to the Company will be at equity values below the current price of the Company's stock."
About Wolverine Tube, Inc.
Wolverine Tube, Inc. is a world-class quality partner, providing its customers with copper and copper alloy tube, fabricated products, metal joining products as well as copper and copper alloy rod, bar and other products. Internet addresses: www.wlv.com and www.silvaloy.com.
Forward-looking Statements
Forward-looking statements in this press release are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements use such words as "may," "should," "will," "expect," "believe," "plan," "anticipate," "likely," and other similar terminologies. This press release contains forward-looking statements regarding factors affecting the Company's expectations of future operating and financial results and liquidity as well as future transactions. Such statements are based on current expectations, estimates and projections about the industry and markets in which the Company operates, as well as management's beliefs and assumptions about the Company's business and other information currently available. These forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The Company undertakes no obligation to publicly release any revision of any forward-looking statements contained herein to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. With respect to expectations of future transactions, factors that could affect actual results include without limitation the possibility of business combination discussions to recommence, the ability to negotiate a transaction with the bondholders, the ability to raise sufficient equity financing to effectively reduce the level of company debt the ability to obtain shareholder or bondholder approval of a transaction and our ability to pursue others sources of liquidity. A discussion of risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements can be found in the Company's Annual Report on Form 10-K for the most recently ended fiscal year and reports filed from time to time with the Securities and Exchange Commission.