Friday, Sept. 17, 1999 | 11:05 a.m.
NEW YORK -- Ogden Corp., which had planned to split in two, scrapped those plans and said it will sell its aviation and entertainment units including the Las Vegas Wet 'n Wild waterpark.
Ogden today also warned of lower-than-expected third-quarter earnings and said Chairman and Chief Executive R. Richard Ablon resigned.
The New York-based company, which has interests ranging from power plants to theme parks, canceled plans to split itself into two public traded companies, one of which would have included the two businesses to be sold. Ogden also said third-quarter earnings will be substantially less than analysts' expectations.
In Las Vegas, Ogden said in March it was acquiring the Wet n'Wild waterparks on the Las Vegas Strip, in Mexico and in Brazil from the Universal Studios subsidiary of Seagram Co. Universal Studios Recreation group had purchased the Arlington, Texas-based Wet 'n Wild in October 1998. Ogden today said Scott Mackin is replacing Ablon as president and chief executive effective immediately. He was previously executive vice president of the company and president of its energy business. George Farr, a former vice chairman of American Express Co., was elected non-executive chairman.
Investors have said Ogden's mix of businesses made it difficult to value the company, which has hired investment bank Goldman Sachs Group Inc. as its adviser.
Its shares, which lost 27 percent of their value over the past year, have lagged the broader market through the 1990s, even though it has shown a steady profit.
Ogden also said it has canceled its quarterly dividend. Its last dividend was 31.25 cents a share.
Ogden shares fell 69 cents to 19.50 Thursday and fell another 6.38 today.
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