Borden Managers to Quit if Buyout Price Isn’t Met
Borden Inc. announced a plan today to deter a takeover of the food and chemical company at less than what it considers a fair price by ensuring that Borden’s top 25 managers will quit if that price isn’t met.
“We think any potential raider would think twice about losing that group at once,” said Romeo J. Ventres, Borden’s chairman and chief executive officer.
He said he believed that banks and investment houses would be reluctant to loan money or raise funds for such a raider.
Ventres said that the New York-based company knows of no takeover attempt and that Borden already has a “stockholder rights” plan designed to fend off an unwanted suitor.
Ventres said the 25 managers agreed to the plan because they have invested an average of 21 years in the company each and want it to remain independent. Borden estimates its 1988 sales at $7.2 billion.
The company is a leader in the dairy, snack food, pasta, wall covering, forest product resins and packaging-films fields.