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After six months of negotiations, Curtiss-Wright and Studebaker-Packard finally came to terms last week on "Operation Rescue." The two companies will not merge-at least not right away. But they will tie themselves together under a "joint program" agreement, with Curtiss-Wright running Studebaker-Packard and taking an option on enough Studebaker stock for a formal merger later...

Author: /time Magazine | Title: Business: Rescue Accomplished | 7/30/1956 | See Source »

...Enginemaker Curtiss the big bait was the promise of some $500 million in new defense contracts from the Pentagon. Up to now, failure of such contracts to come through had been the major stumbling block. Though the Administration was anxious to save Studebaker, it was worried about the political effects of such a rescue operation. But now both companies have solid promises of contracts, spread over several years...

Author: /time Magazine | Title: Business: Rescue Accomplished | 7/30/1956 | See Source »

...Million for Now. For Studebaker the bait was equally tempting: $35 million in cash from Curtiss, enough to keep the company in business. Curtiss will buy all Studebaker's defense inventories (mostly jet engine parts), take a twelve-year lease on two plants at Utica, Mich, and South Bend, Ind. In addition, Studebaker's bank credit (it has already borrowed $29.8 million) will be raised to $45 million, thus giving it a total of $50 million for immediate needs...

Author: /time Magazine | Title: Business: Rescue Accomplished | 7/30/1956 | See Source »

There is a chance for more. If Curtiss decides to merge and exercises its stock option within the next two years, it will pay $25 million for 5,000,000 shares of Studebaker stock. The merged company will also be able to apply Studebaker's big $70 million tax loss against overall profits...

Author: /time Magazine | Title: Business: Rescue Accomplished | 7/30/1956 | See Source »

...Bell X-1 (first airplane to pass the speed of sound) was pushed by a cluster of four small rockets, and it gained a measure of control because the pilot could shut some of them off. The Bell X-2 (already under secret test) has a two-rocket Curtiss-Wright power plant, can vary its thrust, by methods undisclosed, over a considerable range...

Author: /time Magazine | Title: Science: Flight Log | 4/2/1956 | See Source »

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