Granger Back at Beatrice as Chairman, CEO

After a year of retirement, 66-year-old William W. Granger Jr. was back at work Monday as the newly named chairman and chief executive of Beatrice Cos., meeting with company employees and attempting to smooth the internal squabbles that led to the surprise ouster Saturday of the controversial James L. Dutt. Although a Beatrice spokeswoman said executive appointments are permanent, many analysts believe that Granger, a former vice chairman and 39-year veteran of the Chicago company, will be only an interim manager until a permanent successor is found.

Granger, who retired in 1984, was also named a director with a term running until 1988. At a special meeting Saturday, directors also elected William G. Karnes, 74, who retired as chairman and chief executive in 1976, to the newly created post of chairman of the executive committee and named him a director. Dutt, 60, will remain as a consultant to Beatrice.

Dutt is considered the architect of the company’s recent major restructuring, which included the $2.7-billion acquisition of Esmark Inc.--a move that left Beatrice with a heavy load of debt. The Chicago-based company operates a variety of businesses ranging from Avis car rentals to La Choy brand packaged Chinese food.

Granger’s appointment is expected to shore up the poor morale around Beatrice, which has been blamed on Dutt’s autocratic management style. Since Dutt took the helm at Beatrice in 1979, 39 of its top 58 executives have left or been fired. But it was the sudden departure last month of Nolan D. Archibald, one of the most respected of Beatrice’s executives, that reportedly triggered Dutt’s ouster.

Dutt was not available for comment on Monday.

Keith DeVore, an analyst with Piper Jaffray in Minneapolis, said Dutt’s resignation was “not terribly surprising. We knew he was somewhat of a problem for the company. We felt a mangement change was coming. There had been some concern in the investment community of Jim Dutt as a manager.”

There is also concern among analysts that the shake-up of top management at Beatrice may leave it ripe for takeover. Marvin Roffman of Janney Montgomery Scott agreed that present management instability may attract a suitor.

“Beatrice’s armor is weakened. Until a long-term successor is chosen and he assembles the right team, it becomes vulnerable to a takeover,” he said.

Wall Street, reacting favorably to news of the shake-up, sent Beatrice’s stock price up sharply. It closed on the New York Stock Exchange at $32.25, up $2 from last Friday.