Word: arco
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...Pickens heard about the rebuffed Arco bid, and sold $300 million of securities to come up with the cash for a $65/share bid for about 12 percent of Gulf's shares, to add to the 9 percent of the company he already controlled...
Gulf was scared, so scared that, to fend off Pickens, it went public on February 24. As the oil world shook itself out, three buyers emerged by the March 14 purchase deadline--Arco at $72, Socal at $80, and an extremely complicated offer worked out by some Gulf executives with the help of a financial house which specializes in this kind of corporate jihad. Although the in-house offer would have reaped the most--$87 per share with plans to spin off the least profitable branches of the company to increase its overall attractiveness--it was too complex...
...events could spur legislation more quickly than another big oil takeover. Flush with then" recent successes, Pickens and the Bass brothers might go after other companies. Arco, having been spurned in its bid for Gulf, may also start shopping. To be sure, there is not likely to be another combine of the size of the Gulf-Socal deal. But as long as the price of oil shares remains cheap compared with exploration costs, merger fever in the oil industry will be far from burned out. -By Alexander L. Taylor III. Reported by Richard Woodbury/San Francisco and Adam Zagorin/New York
...course, the deal is creating losers as well. Atlantic Richfield, for example, outbid by Socal for Gulfs stock, will have to pay several million dollars in fees to the 61 banks that raised $12 billion to support the Arco offer. Setbacks have also befallen investors, many of whom began selling their Gulf shares last week as the market turned against them, fearing that the merger would be blocked. Said one speculator: "We got hurt two days in a row on this. What's the sense of being right if you're losing money...
Students have also received offers from Sears. Arco and other creditors seeking business. The representative added that the corporation obtains lists of students' names from school directories and then "rents" these lists out for commercial purposes...