Word: socal
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...another big oil takeover. Flush with then" recent successes, Pickens and the Bass brothers might go after other companies. Arco, having been spurned in its bid for Gulf, may also start shopping. To be sure, there is not likely to be another combine of the size of the Gulf-Socal deal. But as long as the price of oil shares remains cheap compared with exploration costs, merger fever in the oil industry will be far from burned out. -By Alexander L. Taylor III. Reported by Richard Woodbury/San Francisco and Adam Zagorin/New York
...everyone's winners list was Corporate Raider T. Boone Pickens Jr. and his partners. Together with Pickens' Texas-based Mesa Petroleum, they acquired 13.2% of Gulf stock at an average price of $45 a share, and now stand to reap $760 million from Socal's takeover for $80 a share. Mesa alone will rake in $506 million...
Gulfs top executives can also benefit mightily. Chairman James E. Lee, who steered his company to Socal in order to evade Pickens, could pick up some $10 million by exercising options to buy Gulf shares. A clutch of other officers can look forward to the same type of windfall. They include: President Edward Walker, $8.8 million; Executive Vice President Harold Hammer, $6.4 million; Executive Vice President Melvin Hill, $4.6 million; and J.L. Huitt, president of Gulf Oil Exploration and Production Co., $2.9 million...
...moneymen who worked on the merger have been major winners too. Salomon Bros, and Merrill Lynch, Gulfs advisers, will split $46 million in fees. Morgan Stanley, Socal's investment banker, has received $1 million so far, and will be paid $15.5 million more when more than half the Gulf shares are acquired. And Bank of America, which arranged a $14 billion credit line to finance the buyout, will collect $500,000 for that service...
...course, the deal is creating losers as well. Atlantic Richfield, for example, outbid by Socal for Gulfs stock, will have to pay several million dollars in fees to the 61 banks that raised $12 billion to support the Arco offer. Setbacks have also befallen investors, many of whom began selling their Gulf shares last week as the market turned against them, fearing that the merger would be blocked. Said one speculator: "We got hurt two days in a row on this. What's the sense of being right if you're losing money...