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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (1212)	2/8/1999 10:16:00 PM
From: porcupine --''''>	Respond to of 1722

Low stock price could make Boeing a target - CEO SEATTLE, Feb. 7 (Reuters) - Boeing Co.'s low stock price could make the aerospace giant vulnerable to a takeover attempt, Chairman and Chief Executive Officer Phil Condit has warned senior executives. At a meeting with senior management last month, Condit raised the prospect of a takeover bid as a way to motivate managers in a discussion of the company's poor financial performance, company spokesman Larry McCracken said Sunday. "He wasn't trying to give a hint that anyone was looking at us as a takeover target," McCracken said. "It was only a theoretical discussion with his management team." McCracken added that the company has not seen any signs that Boeing actually has become a takeover target. Condit's comments were reported first by The Seattle Times. For the fourth quarter, Boeing earned $465 million, or 48 cents a share, on revenues of $17.1 billion, closing out a disappointing year. The results were roughly in line Wall Street expectations. In his talks with executives, Condit noted that at Boeing's current stock price, the company's underlying assets are worth as much or more than its current market value of about $36 billion. Boeing has been considered a potential takeover target in the past, most recently in the early 1990s when General Electric Co. was rumored to be interested. Instead Boeing went on a buying spree that culminated with its $16.3 billion purchase of rival McDonnell Douglas Corp. in 1997. Since then, Boeing's stock price has slid from nearly $60 to Friday's close of $37.25 as the company has been hammered by losses in its commercial airplane group. ((Seattle bureau, 206-386-4848; marty.wolk@reuters.com))