Owner
Post by Franko10 ™ on Mar 9, 2005 12:13:15 GMT -5
This was found by texaswilly at 32:
Class,
Turn to page 14 in your hymnals. While we are working real hard to find even a tiny bit of information that may make us more comfortable in our own take of this thrill ride, some people might enjoy knowing a little more about Iron Bob. Some of this has been mentioned in previous threads, so chunk this if it is all old news. There has been much discussion of late about Tender Offers so it may seem interesting to some.
Iron Bob is no stranger to Tender Offers . The records are pretty clear that once Howard Hughes became reclusive, Bob Maheu ran the business through phone calls from HH and an unending series of daily handwritten notes on legal pads given to Maheu. Copies of these handwritten notes are found in several of the Hughes biographies. This tells me that Maheu made all personal contacts and transacted all the significant business directed by Howard Hughes. Bob Maheu formed relationships with heads of state, politicians, ceo's and other significant people due to the expanse of the Howard Hughes empire. He was not a step n fetchit guy, but made hourly decisions effecting thousands of people and millions of dollars on his signature through a power of attorney granted him by Howard Hughes. Two tender offers handled by IBM are well documented in one of the Hughes biographies.
Source: Hughes, The Private Diaries Memos and Letters by Richard Hack (2001)
Tender Offer for ABC In 1968 following Bobby Kennedy's assassination, HH wanted to own the ABC television network so he could convince the upcoming presidential candidates that he had a news division that would help put a president in office. Then he (HH) could have a president in his pocket. IBM was directed to buy ABC. Hughes offer was for 43% of the stock at $74.25 a share. The current market price was $58.87 a share. The deal was $148 million and some change. Shareholders were given two weeks to accept his offer "take it or leave it". The company pleaded with stockholders not to fall for this offer because the real intrinsic value of the stock was more than the offer. The network filed suit in District Court in New York charging that the takeover violated FCC rules and federal antitrust laws. The FCC jumped in and said they were going to conduct hearings and directed HH not to use any of the stock to influence ABC until the hearings. Then the FCC said you (HH) will have to attend the hearings in person. This horrified HH. HH feared being seen in public and vowed to never do so again. The Justice Department then jumped in the fight and said they were looking into anti trust issues.
HH then told IBM to leak the word that he was going to transfer his stock to Texas millionaire James J. Ling (of Ling-Temco-Vought) if they did not want him as owner. Ling was known as the Carl Icahn of that era. Ultimately, HH won in court with the judge stating the stockholders might be harmed if prevented from executing their voting rights. ABC then took out full page ads in the New York Times and Wall Street Journal espousing the inadequacy of Hughes offer. On the day before the deadline a half million shares poured into Hughes' brokers. He had apparently won all battles and convinced the shareholders it was in their best interest to sell to him. Three days later the New York Stock Exchange halted all trading on ABC stock while they awaited Hughes final decision. (There is that old ugly word Halt again) Shortly thereafter, Hughes withdrew his offer and cancelled the deal. Most believe his fear of having to attend the FCC hearings was the main reason for backing out. IBM had done his job............
Tender offer for Air West HH & IBM in their own short play Maheu was working 16 hour days, running five casinos and four hotels in Las Vegas. His boss found a struggling airlines. Air West was a disaster of an airlines. Hughes directed IBM to buy it. HH wrote to IBM "The plan necessitates that the stock edge downward with the existing continuous bad news, and then that we come along with a spectacular offer to pay the stockholders in liquidation a price substantially above the market," HH wrote to Maheu. "Any rise in the market before our offer will adversely affect the plan." An offer was made at $22 a share or an offer of $90 million. The Air West board was livid. Within a month the stockholders had voted to accept HH's offer. The Air West board sought a competing offer from Northwest Airlines and informed the shareholders that the board was going to sell to someone else. HH assisted the shareholders by providing an attorney to file suit against the Air West Board. To assure victory, HH persuaded several of Air West's largest shareholders to unload 86,000 shares on the market and he would agree to cover any losses. The move had the predictable effect of causing the stock to drop even further. When Northwest heard about the stock dropping, they backed out of the deal. Air West was now under HH control. Mission accomplished IBM.
My apologies for a lengthy post. This is not an endorsement of Howard Hughes business tactics or ethics. But any reader of these forums who wonders if IBM has ventured into any wars like CMKX is now facing should know this is not unfamiliar territory for our Co Chairman of the Board. Full page ads, government agency involvement in tender offers, share dilution, mergers, IBM has been there and done that. I thank Urban for having the good judgment to bring IBM on Board. Win, Lose or Draw, Urban has done what he could do to give CMKX a fighting chance against the mms...
Onward through the fog,
Bill
Class,
Turn to page 14 in your hymnals. While we are working real hard to find even a tiny bit of information that may make us more comfortable in our own take of this thrill ride, some people might enjoy knowing a little more about Iron Bob. Some of this has been mentioned in previous threads, so chunk this if it is all old news. There has been much discussion of late about Tender Offers so it may seem interesting to some.
Iron Bob is no stranger to Tender Offers . The records are pretty clear that once Howard Hughes became reclusive, Bob Maheu ran the business through phone calls from HH and an unending series of daily handwritten notes on legal pads given to Maheu. Copies of these handwritten notes are found in several of the Hughes biographies. This tells me that Maheu made all personal contacts and transacted all the significant business directed by Howard Hughes. Bob Maheu formed relationships with heads of state, politicians, ceo's and other significant people due to the expanse of the Howard Hughes empire. He was not a step n fetchit guy, but made hourly decisions effecting thousands of people and millions of dollars on his signature through a power of attorney granted him by Howard Hughes. Two tender offers handled by IBM are well documented in one of the Hughes biographies.
Source: Hughes, The Private Diaries Memos and Letters by Richard Hack (2001)
Tender Offer for ABC In 1968 following Bobby Kennedy's assassination, HH wanted to own the ABC television network so he could convince the upcoming presidential candidates that he had a news division that would help put a president in office. Then he (HH) could have a president in his pocket. IBM was directed to buy ABC. Hughes offer was for 43% of the stock at $74.25 a share. The current market price was $58.87 a share. The deal was $148 million and some change. Shareholders were given two weeks to accept his offer "take it or leave it". The company pleaded with stockholders not to fall for this offer because the real intrinsic value of the stock was more than the offer. The network filed suit in District Court in New York charging that the takeover violated FCC rules and federal antitrust laws. The FCC jumped in and said they were going to conduct hearings and directed HH not to use any of the stock to influence ABC until the hearings. Then the FCC said you (HH) will have to attend the hearings in person. This horrified HH. HH feared being seen in public and vowed to never do so again. The Justice Department then jumped in the fight and said they were looking into anti trust issues.
HH then told IBM to leak the word that he was going to transfer his stock to Texas millionaire James J. Ling (of Ling-Temco-Vought) if they did not want him as owner. Ling was known as the Carl Icahn of that era. Ultimately, HH won in court with the judge stating the stockholders might be harmed if prevented from executing their voting rights. ABC then took out full page ads in the New York Times and Wall Street Journal espousing the inadequacy of Hughes offer. On the day before the deadline a half million shares poured into Hughes' brokers. He had apparently won all battles and convinced the shareholders it was in their best interest to sell to him. Three days later the New York Stock Exchange halted all trading on ABC stock while they awaited Hughes final decision. (There is that old ugly word Halt again) Shortly thereafter, Hughes withdrew his offer and cancelled the deal. Most believe his fear of having to attend the FCC hearings was the main reason for backing out. IBM had done his job............
Tender offer for Air West HH & IBM in their own short play Maheu was working 16 hour days, running five casinos and four hotels in Las Vegas. His boss found a struggling airlines. Air West was a disaster of an airlines. Hughes directed IBM to buy it. HH wrote to IBM "The plan necessitates that the stock edge downward with the existing continuous bad news, and then that we come along with a spectacular offer to pay the stockholders in liquidation a price substantially above the market," HH wrote to Maheu. "Any rise in the market before our offer will adversely affect the plan." An offer was made at $22 a share or an offer of $90 million. The Air West board was livid. Within a month the stockholders had voted to accept HH's offer. The Air West board sought a competing offer from Northwest Airlines and informed the shareholders that the board was going to sell to someone else. HH assisted the shareholders by providing an attorney to file suit against the Air West Board. To assure victory, HH persuaded several of Air West's largest shareholders to unload 86,000 shares on the market and he would agree to cover any losses. The move had the predictable effect of causing the stock to drop even further. When Northwest heard about the stock dropping, they backed out of the deal. Air West was now under HH control. Mission accomplished IBM.
My apologies for a lengthy post. This is not an endorsement of Howard Hughes business tactics or ethics. But any reader of these forums who wonders if IBM has ventured into any wars like CMKX is now facing should know this is not unfamiliar territory for our Co Chairman of the Board. Full page ads, government agency involvement in tender offers, share dilution, mergers, IBM has been there and done that. I thank Urban for having the good judgment to bring IBM on Board. Win, Lose or Draw, Urban has done what he could do to give CMKX a fighting chance against the mms...
Onward through the fog,
Bill
