BANNER <BNR> TO ACCEPT REXNORD <REX> SHARES
Banner Industries Inc said it plans to
accept for payment after the close of business today all the
common shares of Rexnord Inc that were tendered under its 26.25
dlr per share tender offer.
    Banner said its offer for all of the roughly 20 mln shares
of Rexnord it did not already own expired last Friday and will
not be extended.
    Based on a preliminary count, about 19.8 mln Rexnord shares
were tendered under the offer, Banner said.
    Combined with the roughly five mln shares it already holds,
Banner said it will own about 97 pct of Rexnord's shares.
    Banner said last Friday that it had arranged bank credit to
finance most of the tender offer and the subsequent merger with
Rexnord, under which remaining Rexnord holders may receive
26.25 dlrs a share.
    It said the balace of the funds will be obtained through a
private placement, for which Drexel Burnham Lambert Inc is
acting as agent.
    Banner said it expects to complete the merger with Rexnord
within 60 days.
 Reuter
