Word: sec
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Dates: during 1980-1989
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...SEC tackles takeovers...
...this latest megabuck merger, a congressional committee opened hearings on proposals by the Securities and Exchange Commission that would curb some of the wheeling and dealing that accompanies such corporate marriages. Colorado Democrat Timothy Wirth, chairman of the House Subcommittee on Telecommunications, Consumer Protection and Finance, is supporting the SEC recommendations. Says he: "The tactics and strategies used by both bidders and targets in recent years have raised questions about the adequacy of current laws to a ensure the fundamental fairness of the takeover process. In the heat of a contest, important shareholder, employee and community interests may be overlooked...
...goal of the SEC recommendations is the elimination of defensive tactics that preserve the jobs of incumbent management but lessen the value of the company to shareholders. Such stratagems can include buying back company stock and issuing "poison pills," like preferred stock, which dilute the value of other outstanding shares. The Carter Hawley Hale department store chain has used both techniques in fending off a takeover attempt by The Limited. So far, its tactics have succeeded. The Limited Chairman Leslie Wexner said last week that his firm's tender offer will not be extended, though he hopes to make...
...SEC also wants to deflate "golden parachutes," which give special payments to executives if they leave a company after a takeover. If the sale of Esmark goes through, for example, Chairman Donald Kelly, 62, would collect three years' salary and sell his 245,000 shares of stock for $60 a share. Total reward: $17.4 million...
...case filed by the SEC goes well beyond the bounds of a usual insider trading suit, which normally prohibits employees of a corporation from profiting on non-public information about the company's plans. In this case, however, the SEC alleges that Winans defrauded the publishers of the Journal by misappropriating confidential information about the content and timing of news stories. The Government suit also maintains that Winans had a duty to disclose to readers that he had a financial interest in the securities about which he wrote...