AIRLINES : Davis Barred From Talking to NWA Unions
Billionaire oilman Marvin Davis lost a legal skirmish in his quest for Northwest Airlines on Thursday when a federal judge barred him from talking with the airline’s unions.
U.S. District Court Judge Harry MacLaughlin in Minneapolis issued a temporary restraining order against Davis, saying the investor should cease “actions and communications” disruptive to “present and prospective” contract agreements. The airline is currently negotiating with its pilots.
NWA Inc., the parent of Northwest Airlines, had sought the order against Davis, who has offered $2.62 billion to acquire the Eagan, Minn.-based airline. Davis contended that he had a right to discuss his plans with the unions, which represent 32,600 of Northwest’s 35,500 workers.
Davis said in a press release after the judge’s ruling that his contact with Northwest’s unions had not been disruptive. “Since all of our past and planned communications with union representatives are in full compliance with the limitations outlined by the judge, today’s ruling will not have any effect on our future actions,” he said.
Hearing Scheduled
A hearing on a permanent injunction against Davis was scheduled for April 24.
Meanwhile, Davis told the Securities and Exchange Commission on Thursday that he intends to nominate himself, his sons John and Gregg and 10 others to replace NWA’s 13 directors at its May 15 annual meeting.
Davis’ slate includes his long-time real estate partners, Gerald S. Gray and Myron M. Miller, both of whom held key positions at 20th Century Fox after Davis bought the studio in 1981. He sold it in 1985. Other members of Davis’ lineup include Scott H. Bice, dean of USC’s Law School; Robert H. Wolf, chief executive of the Chiat-Day advertising agency; two Minneapolis-area businessmen, Gerard L. Cafesjian, a marketing executive for a publisher of legal materials, and Rudy Luther, a Pontiac dealer, and Audrey Meadows Six, an actress who played Alice Cramden in “The Honeymooners.”
NWA said it was studying Davis’ proxy filing and had no comment.
Competing Group
Davis is apparently competing for Northwest with a group led by Los Angeles investor Alfred Checchi, a former Marriott Corp. vice president and treasurer and an associate of the wealthy Bass family of Texas. Checchi’s investment firm, Alfred Checchi Associates, operates from the same Century City office building in which Davis has his office.
Also mentioned as a third bidder for Northwest was former U.S. Treasury Secretary William E. Simon, and the New York investment group he helped found, Wesray Capital Corp. However, spokesmen for Simon and for Wesray denied Thursday that either had made a bid.
“I don’t know why we are getting calls,” a spokeswoman for Wesray said. “We are not involved.” Simon’s son, Peter Simon, who is involved in the family investment firm, William E. Simon & Sons, said his father has “absolutely nothing to do with Northwest.”
