Nov 3, 2009 6:06 pm US/Eastern
Md. To Make Case For Black & Decker Jobs
BALTIMORE (WJZ) ―
Dust is still settling following the bombshell dropped by Black & Decker that it is being acquired in a merger by tool maker Stanley Works.
Alex DeMetrick reports Wall Street likes the idea, even though it will likely mean lost jobs here in Maryland.
Black & Decker's corporate headquarters is in Towson, but probably not for much longer. Stanley has acquired the Maryland company in a merger and Stanley's home in Connecticut will become the headquarters for the new Stanley Black & Decker Company.
"With Stanley's position in hand tools and our complementary position in power tools, we will have unparalleled depth and breadth in product offerings," said Black & Decker CEO Nolan D. Archibald.
But local economist Anirban Basu also sees local loss.
"It's been said that many of the roughly 250 jobs will be lost at that headquarters. Probably 10% of the jobs company-wide will be lost. Most of those are not in Maryland, but we'll feel a disproportionate impact because those headquarters jobs pay good money," he said.
Employees approached by
WJZ all declined to comment on the merger, but on Wall Street, investors liked the $350 million in savings layoffs and consolidation would bring. Both companies saw their stock gain.
"It is expected to create tremendous values for shareholders of both companies," said Archibald.
"This is a loss to the region and it's a loss of prestige. We want to maintain corporate headquarters here and we just lost a big one," Basu said.
The merger must still be approved by federal regulators. Until then, both Black & Decker and Stanley will continue to operate independently.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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