Report of Parker Automotive Agreement False, Investor Says

In another twist in the saga of Parker Automotive Corp., the investor bidding for control of the firm said an announcement Sunday that a tentative agreement had been reached by the two groups is “absolutely false.”

Remington Cos., a Dallas holding company for an assortment of financial service and oil exploration firms, made the statement in a press release Monday. Officials of the firm were not available for comment.

And Michael E. Parker, chairman of Parker Automotive, insisted late Monday afternoon that a tentative agreement was reached with Remington over the weekend and that a final agreement would be signed soon.

“I feel like a bird in a badminton contest,” Parker said. “I don’t understand the rationale for this denial. They are scheduled to meet with us tonight to sign the paperwork.”

Parker Automotive’s lightly traded stock has been on a roller-coaster ride in the past week as news of the fate of the faltering company has been bandied about in conflicting announcements. The stock rose 87.5 cents a share Monday to close at $4.63 a share.

Remington began what has come to resemble a public relations nightmare for both firms by announcing on Feb. 4 that it was negotiating a restructuring agreement with Parker Automotive, which manufactures automotive fuel cleaning systems. The release did not identify Remington, but Parker Automotive confirmed the talks.

Two days later, Parker Automotive said that its board tentatively had accepted the offer from Remington, which would provide a cash infusion if certain contingencies, among them the resignation of Michael Parker, were met.

On Feb. 8, Remington issued a statement that it had terminated negotiations in an impasse with Michael Parker over his future connection with Parker Automotive.

That was followed Sunday with an announcement from Parker Automotive that a new agreement had been reached over the weekend to grant Remington an option to purchase stock owned by Michael Parker and his family. Michael Parker said Monday that the agreement also calls for him to step down as chairman and as a director of the company.

But in its statement Monday, Remington’s chairman said that “any recent reports issued by Parker Automotive claiming that it has reached an agreement with Remington are absolutely false.”