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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) APRIL 8, 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 April 8, 1996 MCN Corporation issued the following press release;
MCN CORPORATION EVALUATES POTENTIAL DIVESTITURE OF THE GENIX
GROUP SUBSIDIARY
Detroit, April 8, 1996 - MCN Corporation (NYSE:MCN) today announced that it is
evaluating the potential sale of its computer services subsidiary, The Genix
Group, Inc. (Genix), a leading provider of computer outsourcing services in the
United States. MCN has retained the New York firm of Smith Barney Inc. as
financial advisor in the evaluation.
Alfred R. Glancy III, MCN Chairman, President and Chief Executive Officer, said
"Genix has enjoyed significant growth in revenues and operating income over the
past several years. However, as we continue to pursue our focused strategy of
investing in energy-related projects, we must evaluate the value and strategic
fit of our investment in the computer services business. For MCN, a possible
sale of Genix will unlock its full value, thereby enhancing shareholder value."
As a result of its outstanding reputation as a provider of fairly-priced, high
quality outsourcing services, Genix continued its growth in 1995 achieving
record levels of revenues and operating income. Since 1990, revenue has
increased 150% reaching $105 million in 1995. In addition, operating income
reached $8 million in 1995.
Through its operating facilities in Dearborn, Michigan; Pittsburgh,
Pennsylvania; Charlotte, North Carolina and London, England, Genix serves in
excess of 100 customers from various industries and organizations, many of
which are Fortune 500 companies.
MCN is pursuing growth opportunities in the energy industry including gas and
oil exploration and production, gas marketing, gas gathering and processing and
power generation projects. Since 1992, assets have nearly doubled and its
Diversified Energy group contributed 22% of MCN's total earnings in 1995. The
potential sale of its computer services subsidiary is consistent with its
strategic focus to invest in energy-related projects. Proceeds from the
potential sale of Genix would partially fund MCN's capital expenditures which
may reach $850 million in 1996.
MCN Corporation is a $2.9 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 Company
(MCNIC). MCNIC owns subsidiaries involved in exploration and production, gas
marketing, cogeneration, gas storage, gathering and processing; and The Genix
Group.
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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: April 8, 1996
