Metrocall Makes $824-Million Bid for Paging Network

Metrocall Inc., the third-largest U.S. paging company, said it offered about $824 million in cash and stock for Paging Network Inc., 14% more than Arch Communications Group Inc.’s bid. Metrocall offered $100 million in cash and $727.5 million in stock for Dallas-based PageNet and would assume $746 million of PageNet debt.

Metrocall abandoned plans less than a month ago to top Arch’s $1.36-billion stock and debt offer for PageNet. It backed away after representatives of more than $600 million of PageNet’s senior subordinated notes refused a confidentiality agreement.

The door reopened Friday when PageNet, which has about 8.4 million beepers and is the nation’s biggest paging company, was forced into Bankruptcy Court by investors who said the company owes them $3.49 million in bond payments, said Metrocall Chief Financial Officer Vince Kelly. Westborough, Mass.-based Arch, the No. 2 U.S. paging-services company, agreed to buy PageNet in November to stay competitive with wireless phone companies. Metrocall asked PageNet’s board to respond by July 25 about its plans to proceed further and to decide by Aug. 15 whether to accept the proposal.

Metrocall fell 13 cents to close at $6.38 and Arch closed off 9 cents at $5.91 in Nasdaq trading. PageNet last traded Friday, falling 22 cents at $1.09.