American Dynamics Corp and&lt;Meridian Reserve Inc> said they signed a definitive agreement
under which Meridian will buy 81.9 mln shares, or 51 pct, of
American Dynamics' common stock.
    Under terms of the agreement, Santa Ana, Calif.-based
Meridian said it will pay Columbus-based American Dynamics one
mln dlrs in cash and notes over five years and about 500,000
shares of its common stock.
    Meridian said it has the option to issue an additional
1,500,000 shares of its common over the next two years in
payment of certain of the notes.
    Meridian, an oil and gas company whose operations are
primarily in Oklahoma, said the acquisition will increase its
its consolidated assets to 30 mln dlrs and its contractually
committed gas reserves to more than 40 mln dlrs at discounted
present value.
    American Dynamics is engaged in gas gathering, transmission
and liquids extraction, also in Oklahoma.
    The companies said they have five extracting plants and
about 525 miles of transmission lines in five adjoining
Oklahoma counties.
 Reuter
