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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) June 5, 1996
MCN CORPORATION
(Exact name of registrant as specified in its charter)
MICHIGAN 1-10070 38-2820658
State of Incorporation (Commission File (I.R.S. Employer
Number) Identification No.)
500 GRISWOLD STREET, DETROIT, MICHIGAN 48226
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(313) 256-5500
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ITEM 5. OTHER EVENTS
On June 5, 1996 MCN Corporation issued the following press release;
MCN CORPORATION ANNOUNCES SALE OF THE GENIX GROUP SUBSIDIARY
Detroit, June 5, 1996 - MCN Corporation (NYSE:MCN) today announced that it has
signed a definitive agreement for the sale of its computer services subsidiary,
The Genix Group, Inc. (Genix), to Affiliated Computer Services, Inc.
(NASDAQ/NM:ACSA). Genix is a leading provider of computer outsourcing services
in the United States with 1995 revenues of $105 million. Dallas, Texas-based
ACS is a leading nationwide provider of information technology services. In
1995 its revenues were $313 million.
Alfred R. Glancy III, MCN Chairman, President and Chief Executive Officer, said
"We are very pleased to have entered into this transaction with ACS. Over the
years, Genix has been a successful computer services outsourcing business. MCN
and its shareholders have benefited from Genix's growth and profitability. We
believe the sale of Genix at this stage of its evolution further enhances
shareholder value and sharpens our focus of pursuing investments in
energy-related projects."
Darwin Deason, ACS' chairman and chief executive officer, said, "This
acquisition is a unique opportunity to significantly expand our commercial
outsourcing business. We are thrilled about the potential of combining with
Genix. Genix is a leader in the outsourcing industry and has a prestigious
customer base. We're now ideally positioned to successfully compete for larger
outsourcing contracts, and to take further advantage of the exploding market
for commercial outsourcing."
The all cash transaction is valued at approximately $135 million. Closing is
anticipated within the next 30 days and is subject to antitrust regulatory
clearance. MCN expects to recognize a substantial gain from the sale and will
use the proceeds to partially fund its 1996 capital investments of
approximately $850 million. Smith Barney Inc. served as financial advisor to
MCN.
MCN Corporation is a $3.2 billion (assets) diversified natural gas holding
company with gas markets and investments throughout North America. Its
principal subsidiaries are Michigan Consolidated Gas Company (MichCon), a
natural gas distribution and transmission company serving 1.2 million customers
in more than 500 communities throughout Michigan, and MCN Investment
Corporation (MCNIC). MCNIC owns subsidiaries involved in exploration and
production, gas marketing, cogeneration, gas storage, and gas gathering and
processing.
Affiliated Computer Services Inc., based in Dallas, Texas, is a nationwide
provider of information technology services and electronic funds transfer
transaction processing. The company's Class A common stock is traded on the
NASDAQ National Market System under the symbol "ACSA".
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MCN CORPORATION
By /s/ Sebastian Coppola
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Sebastian Coppola
Vice President and Treasurer
Date: June 7, 1996