Bays to Head Combined AHS and Baxter

Karl D. Bays, who unsuccessfully fought the merger between Baxter Travenol Laboratories and American Hospital Supply, will become chairman of the combined corporation, the two companies said Tuesday.

Bays, chairman and chief executive of American, was an outspoken critic of Baxter when it launched an attempt in June to buy the hospital supply company, which is based in Evanston, Ill. Bays, 51, will succeed William B. Graham as chairman of Deerfield, Ill.-based Baxter. Graham, 74, will become senior chairman of the board and chairman of the finance committee. Graham has been chairman since 1971.

Vernon R. Loucks Jr., 50, will retain his positions as president and chief executive of Baxter.

The position of chief operating officer is being split between two executive vice presidents, Frank A. Ehman, 51, of AHS and Wilbur H. Gantz, 47, of Baxter.

Both men hold the position of chief operating officer at their respective companies.

The $3.8-billion merger, approved by American’s board of directors last month, is subject to approval of both companies’ stockholders and approval of the Justice Department. Special stockholder meetings are scheduled Oct. 22 to consider the move.