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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: benwood who wrote (31753)	5/4/2005 6:22:36 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 110194

Green Mail? Yep, that was a great strategy. Buy some shares, threaten a takeover, get bought out at a higher price without the headache of running the company. Hey, I saw Wall Street ... wasn't that Gecko's strategy?

To: benwood who wrote (31753)	5/4/2005 6:23:27 PM
From: patron_anejo_por_favor	Respond to of 110194

>>Weren't there a variety of corporate raiders in the mid 80s and early 90s who specialized in either threatening a company in this manner then walking away with a huge profit after the board freaked or they simply got the company and plundered it.<< Yes, it was a very common strategy then, fueled in large part through easy financing with junk bonds and the threat of leveraged buy outs using the target's own assets and cash flow. There were a number of practitioners, including Kirkorian, Kohlberg Kravis Roberts, Carl Icahn, and Pickens. It was they heyday of Drexel Burnham and Michael Miliken, who oiled the process with easy access to credit via the junk bond market. Pickens was involved in several attempts as the CEO of Mesa Petroleum. One involved Unocal, but the biggest and most famous was the takeover of Gulf Oil. He acquired a large block of stock, then publically announced a bid to takeover at some premium to the then-present value. A bidding war commenced between Mesa, Atlantic Richfield and Chevron. I believe Chevron ultimately won, but at a price that gave Mesa a 300 million profit.