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Allison Transmission still chasing initial public offering

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Allison Transmission Inc. hasn't given up on going public, despite nearly eight months passing since its initial filing with the Securities and Exchange Commission.

The Indianapolis-based manufacturer updated its prospectus on Nov. 4 to reflect financial results through Sept. 30 that show the company made more profit in the first nine months of this year than in all of 2010.

Allison still hasn't said how many shares it will issue at what price, but as long as it keeps its financial information current, the Securities and Exchange Commission will allow the company to complete its IPO, said David Menlow of IPO Financial in Millburn, N.J.

In practice, the longer it takes to set terms, the more likely the IPO will never launch, he said. "That's the biggest problem."

Allison spokeswoman Melissa Sauer said the company would not comment on when it might complete the IPO.

Allison announced its intent to go public in March, potentially raising $750 million.

Another local company, Angie's List Inc., by contrast, announced its intent to go public in August and on Nov. 2 priced the shares at $11 to $13.

Menlow thinks Delphi Automotive Plc's pending IPO could give Allison a lift. Delphi, based near Detroit, said on Nov. 7 that its shares would likely go for $22 to $24, and a person familiar with the offering told Bloomberg News that they could start trading as early as Nov. 17.

"If Delphi is received well in the marketplace, the chances of Allison moving forward improve," Menlow said. Both companies are former units of General Motors, and investors tend to lump them in with the whole automotive industry," he said.

Allison, which makes transmissions for heavy-duty trucks and buses, reported a profit of $58.5 million through Sept. 30, compared with $5.5 million in the same nine-month period last year. It earned $29.6 million in all of 2010.

Sales have increased 12 percent, from $1.47 billion to $1.6 billion, in the nine-month period, Allison reported. Another factor behind the surge in profitability is lower interest expense.

Allison reduced its total debt this year from $3.7 billion to $3.46 billion.

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  1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

  2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

  3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

  4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

  5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

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