Contrast in Defense Moves

Let’s hear it for the management of TWA. They handled their hostile takeover attempt in the proper way. After receiving what they thought was an inadequate bid from Carl Icahn at $18 per share, they sought a higher price. Shortly thereafter, they accepted a higher bid of $23 per share from Texas Air. This greatly contrasts Unocal’s recent actions against Mesa Partners’ cash offer of $54 per share.

Instead of seeking the best bid for their shareholders, the owners of the company, they sought to keep their jobs by saddling the company with $4 billion of debt to issue $72 per share of securities to a minority of shareholders; subsequently, the price of Unocal has fallen from the $50 range to $30.

The contrast is clear: You choose the path that serves the shareholders best.

MARK S. McGRANAHAN

Van Nuys