Takeover Effects

I applaud your editorial (Dec. 16), “Casino Mentality,” which addresses the evils of corporate takeovers using junk bonds. In the past year, the Reagan Administration, the Federal Reserve Board, and takeover artists have supported the proliferation of takeovers under the guise of “letting the marketplace work” and “protecting the interest of the shareholder.”

Much commentary has been devoted to the problem of replacing or reforming weak and/or entrenched management. Takeovers have rewarded management losers with golden parachutes, management winners with self-awarded large incentive bonuses, speculative shareholders with large short-term profits, and have replaced corporate equity with staggering debt.

Meanwhile, little concern has been voiced for the thousands of employees who lost their jobs as a result of takeover, takeover-threat, merger, or restructuring; these people are the real losers.

D.N. FORSTER

La Canada