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Reid Asks to Represent Fisk Stockholders At Meeting on Sale Proposal on Friday

New York Times

Whitfield Reid, chairman of the stockholders' committee "in favor of a more equitable price for the assets" of the Fisk Rubber Corporation, has sent a letter to all holders of the common shares asking that his group represent them at the meeting in Wilmington, Del., on Friday, when stockholders will be asked to approve the sale of the company to the United States Rubber Company.
 
Mr. Reid, who was a former secretary and counsel for Fisk Rubber, maintains that holders of Fisk common stock are entitled to far more than is being offered to them by United States Rubber. Fisk Rubber, he explained, has a net worth of $13,375,660 for which United States Rubber is offering $6,827,330 in cash plus common stock of United States Rubber having a book value of $2,374,499.
 
Pointing out that eight of the ten directors of Fisk voted to recommend the sale, he said that five of these do not own any stock in the company.
 
In his letter, Mr. Reid also made known that Colonel C. E. Speaks, president of Fisk, will receive $100,000 in cash as a termination allowance if the sale goes through. Although he refrained from voting at the directors' meeting when the offer was approved, Mr. Reid said he is recommending sale of the company.
 
Another director, Karl Behr, who also did not vote at the meeting of directors to act on the sale of the property, Mr. Reid explained, is vice president of Dillon, Read & Co., whose firm will receive a commission of $50,000 for negotiating the sale of the property.
 
In conclusion, Mr. Reid said that under no circumstances should the holders of common stock of Fisk agree to a sale on what he calls the inequitable basis proposed by the Fisk directors.
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(1939) Reid Asks to Represent Fisk Stockholders At Meeting on Sale Proposal on Friday New York Times (ref: #4395, accessed 15th October 2008 08:14:06 PM)
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