Contrast in Defense Moves
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Let’s hear it for the management of TWA. They handled their hostile takeover attempt in the proper way. After receiving what they thought was an inadequate bid from Carl Icahn at $18 per share, they sought a higher price. Shortly thereafter, they accepted a higher bid of $23 per share from Texas Air. This greatly contrasts Unocal’s recent actions against Mesa Partners’ cash offer of $54 per share.
Instead of seeking the best bid for their shareholders, the owners of the company, they sought to keep their jobs by saddling the company with $4 billion of debt to issue $72 per share of securities to a minority of shareholders; subsequently, the price of Unocal has fallen from the $50 range to $30.
The contrast is clear: You choose the path that serves the shareholders best.
MARK S. McGRANAHAN
Van Nuys
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