The Next Mark In Burglar Alarms

Will more takeovers spice up the stodgy home-security industry? Investment adviser Charles LaLoggia thinks so. He first tagged ADT, the nation's largest home-protection company, as a potential target in March, 1996, when it was trading at 15 a share. LaLoggia says a "takeover wave" will hit the industry because of Tyco International's white-knight bid of 28 a share for ADT. That has foiled a hostile 22-a-share takeover bid by Western Resources. What's LaLoggia's take on the next takeover target in the home-alarm business? He thinks one potential target is Protection One (ALRM), which sells and monitors alarm systems for homes and small businesses. LaLoggia, editor of market letter Special Situation Report, notes that Protection One, currently trading at 9 a share, recently signed an agreement with Pacificorp, a large electric utility, giving Protection One the right to market its alarm services to Pacificorp's 1 million customers.

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