Arizona Concerned About Headquarter Losses

Dial Corp., one of Arizona's most well known public companies, joined a growing list of local firms that have been purchased by outside suitors, underscoring the state's struggle to keep and attract company headquarters.

As part of its $2.9 billion purchase, Henkel KGaA Group, based in Germany, said it would keep Dial's senior executives in Scottsdale indefinitely, planned no layoffs and would retain Herbert Baum as chief executive officer for two years. That could lessen the fallout from the loss of such a large headquarters and soothe civic pride.

Dial, maker of Dial soap, Renuzit air fresheners and other products, joins a list of about two dozen Arizona firms that were acquired, failed, or went private over the past five years.

In the mid-1990s, Arizona was home to more than 100 publicly traded firms, including home builder Del Webb Corp., electronics maker Burr-Brown Corp., and computer distributor MicroAge Inc. The number has dwindled to about 60. The trend mirrors a national consolidation of public firms. The Wilshire 5000 index, the broadest stock-market measure, included roughly 7,000 public companies four years ago. Now the tally is under 5,300.

Go here to read more.