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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: Robert Utne who wrote (6233)	8/14/1999 12:45:00 PM
From: Robert Utne	Read Replies (1) \| Respond to of 6570

Business Week: August 30, 1999 More Angst over Zenith Anyone remember Zenith Electronics? The last U.S.-owned TV maker has had heavy losses for 13 of the past 14 years. South Korea's LG Electronics, which owns 55% of Zenith, wants to file for a packaged bankruptcy on Aug. 20. That would wipe out minority shareholders, while giving bondholders 50 cents on the dollar and 100% ownership to LG. But some shareholders, led by the California Public Employees' Retirement System, which holds 1 million shares, are raising a stink. Determined not to lose their investment, they say the ''new'' Zenith, an R&D, sales, and marketing company, could be worth more than the $309 million that a bank says it's worth. They want the bankruptcy court to sell Zenith, although LG said it has tried. The company says 15 other parties were given a chance to acquire Zenith. None was interested. ''It's appropriate to have a formal auction to see if there's more value,'' says Wilbur Ross, a managing director of shareholder adviser Rothschild. Zenith says that when it is restructured, it will make money--$500,000 on sales of $935 million in 2001. Shareholders still aren't happy. Hey, maybe they should just offer the company on eBay instead. By Richard A. Melcher