Word: kreugered
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Diamond Match. Last week Diamond Match Co. new stock sold around $18 a share, but the company's bankers announced that, as planned at the time of recapitalization (TIME, Sept. 22), 350,000 shares had been privately placed at $37. Persistent was the story that Ivar Kreuger's Swedish Match group had acquired this block which carries 33 ⅓% of voting control. Obviously only a group which wanted a big interest in Diamond Match very badly would pay so much above market. Bankers for the company announced that "no change in management is contemplated," but of course...
Chairman of General Telephone & Electric's executive committee will be Elisha Walker, Chairman of Transamerica's executive committee. Last week he expounded the reasons that make this deal logical, reasons realized by Ivar Kreuger when he bought into Ericcson Telephone, a similar deal. Said Mr. Walker somewhat verbosely: "It deserves to be noted that in an era distinguished not infrequently by industrial overproduction, there has been no excess of production by manufacturing plants producing the requirements of telephonic communications systems overseas. . . . We may anticipate, I believe, a continuing development in telephonic communications overseas...
...this plan was one detail to which great significance was attached. Of the new stock, 350,000 shares will be sold to bankers at not less than $30 (present market price of new: $22⅝). Quickly born were reports that this block will go to Herr Kreuger's group. In Sweden, the Match King denied it by saying he has taken no part in the present transaction. Also, Lee, Higginson & Co., his U. S. bankers, said they had heard no.thing of it. But the fact remained that Diamond does not need cash if it has enough to give...
Should Herr Kreuger make this investment in Diamond, he will have a stake in the greatest U. S. match company, and in a demoralized U. S. industry. Diamond Match's assets at the end of last year were $27,000,000. Of this, $1 represented patents and goodwill although 20 years ago this item came to $4,000,000. Diamond has great timber stands in California, Maine, Idaho and other states. It owns many lumber yards, 40 of which are in California's Sacramento Valley. Its products have been extended as conditions in the match business became worse...
...from 5,000,000 in 1928), and pricecutting by competitors, have kept the match business from being lucrative. The entrance of Swedish Match into the U. S. field with factories of its own would complicate conditions. It is conceivable that even Diamond's rivals would rather see it Kreuger & Diamond rather than Kreuger v. Diamond...