Word: merger
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Dates: during 1950-1959
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...hold separate meetings, etc. Randolph had long wanted to merge the two; at last the time seemed ripe. To stockholders went a complicated plan for a stock swap. Part of Randolph's bait was an $8.70 dividend on one class of Selected Industries stock (the convertible) should the merger be approved...
...Catch. Few stockholders knew just what it was all about-but Broker Arthur Wiesenberger thought he did, and he didn't like it. A specialist in investment trusts and a big stockholder in Selected himself Wiesenberger complained that under the merger, Selected common stock-holders would be 1) surrendering $1730 m dividend arrears for a mere $8 70 payoff; 2) swapping 76% voting control for 2% in the merged company; 3) missine out on a fat batch of capital gains that were not reflected by the market price of Selected. Wiesenberger began urging proxy holders to defeat the merger...
Wiesenberger lost his battle. At successive meetings, a majority of both companies voted to approve Randolph's merger. Last week, as Tri-Continental took over Selected's assets, it became the biggest closed-end trust in the U.S. ($144 million in assets) and fifth among all US trusts.* With that big fish in his creel, Francis Randolph this week was planning some other business-a month of salmon fishing in the Pyrenees...
Opponents of Metcalf dispute him at every point. They say that he has overestimated the annual savings from a merger and underestimated the cost of the consolidation...
...critics of the merger are worried about the mechanics of the consolidation. "The operation will take years and will be so complicated that mistakes will be easy to make...