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...Curtiss Quandary. As Odlum's problem was to get rid of capital he couldn't use, the main Curtiss-Wright problem has been to get new capital. Like other U. S. aircraft companies, it has grown from small beginnings by ploughing earnings back into new plant capacity. Now its biggest problem is to fill $140,000,000 of new orders quickly and profitably, to find means of taking a great many more new orders which could be bagged by any company with the right product and idle capacity. For three reasons Curtiss-Wright has been unable to raise...

Author: /time Magazine | Title: Business & Finance: Odlum Makes a Deal | 4/1/1940 | See Source »

...months Guy Vaughan and Curtiss' 14 other directors tried to solve the problem by finding a way to get rid of the "A" stock. This has been selling around $30 but, since it is redeemable at $40, the company could not afford to retire it. First sub-committees of the board were formed to work on the problem. Then, in despair, each director was told to tackle it as a committee...

Author: /time Magazine | Title: Business & Finance: Odlum Makes a Deal | 4/1/1940 | See Source »

Last February the committee named Odlum returned from the desert with its mind made up. At a Curtiss-Wright meeting one day, Odlum asked whether the other 14 committees had a solution. They hadn't. He asked for a day, returned with a description of a hypothetical "X Corporation," told how a marriage with hail of "X Corporation" would solve Curtiss' problem. The directors agreed, but they did not tumble until Odlum spelled out the name of "X Corporation": ATLAS...

Author: /time Magazine | Title: Business & Finance: Odlum Makes a Deal | 4/1/1940 | See Source »

...Deal. As intricate as Floyd Odlum's shrewd mind was the deal that he worked out. It offered an inducement for each company and for every class of stockholder of each. To Curtiss-Wright it meant getting rid of its troublesome "A" stock-by exchanging each share of "A" for ¼ share of a new 5% $50 cumulative preferred plus 1.8 shares of common, or (if "A" stockholders prefer) for ½ share of new preferred and 1/5 of a share of common. To "A" stockholders it meant an assured dividend and preferred position in liquidation (neither of which they...

Author: /time Magazine | Title: Business & Finance: Odlum Makes a Deal | 4/1/1940 | See Source »

...Curtiss, which will have 700,000 to 1.000,000 shares of preferred, and a new load of $1,850,000-$2, 500,000 a year in preferred dividends, the deal will bring enough new cash and marketable securities from Atlas to give it about $1 in current assets (depending on the number of preferred shares) for each $1 of preferred...

Author: /time Magazine | Title: Business & Finance: Odlum Makes a Deal | 4/1/1940 | See Source »

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