NATION : Borden Defense Against Buyouts

Borden Inc., the diversified maker of Elmer’s Glue, today announced an unusual takeover defense under which its 25 top executives will resign if any one of them is fired after a buyout of the company at less than fair value.

The unusual plan, which could spread to other companies, goes into effect only if a takeover group fails to pay shareholders the “fair value” for their shares, including any potential profits from a breakup or restructuring. Borden chief executive R. J. Ventres said that without the cooperation of top managers, any takeover artist would have a hard time restructuring or selling off parts of the company.