Hawaiian Air Deal Shows Risks of Speculation : NEWS ANALYSIS

Hawaiian Airlines, often a bridesmaid but never a bride, seemed to be a good stock for speculation.

The majority owner was elderly and eager to sell. The airline was positioned in the center of the lucrative Pacific Rim, the fastest-growing market in a highly competitive industry. And at least three suitors had wooed the firm in the past two years.

Although the airline’s parent firm, HAL Inc. of Honolulu, was losing money, it was still able to reach a deal in January to sell the company for $45 a share. The deal fell through, but shareholders kept betting that another suitor would emerge.

One did. On Sunday, directors of HAL agreed to sell the company to a group headed by former baseball commissioner Peter V. Ueberroth and Newport Beach developer J. Thomas Talbot. The price: $22 a share, or $9.625 below its closing price of $31.625 last Friday.

The deal is an example of the risks of playing in takeover stocks, especially ones not widely traded.

HAL’s stock closed Tuesday at $23.625 in trading on the American Stock Exchange, down $1.625 on the day.

The transaction appears to be a “done deal.” The majority owner, John H. Magoon Jr., said Tuesday that he has agreed to sell a 51% stake--a controlling block--to the Ueberroth-Talbot team.

But 1,900 shareholders own the rest of the stock. How, they may wonder, could a third of the company’s value seemingly evaporate overnight?

It’s easy, say industry analysts, when shares are lightly traded, a single stockholder owns a majority interest and brokerage houses don’t bother researching the small company.

Even Magoon, who will remain as chairman, seemed amazed that the stock was selling so high, even though he had paid $35 a share to buy out the company president’s 3% stake a few months ago.

“People were speculating that somebody was going to come in and buy at a higher price. They were gambling,” said Magoon, 73. “It seemed to me the stock was somewhat overpriced.”

Magoon said he is satisfied with $22 a share--especially since the company has lost $30.6 million in the last 2 1/2 years and its liabilities exceeded its assets by $8.5 million at the end of June.

Analysts critical of Magoon’s management said the losses are expected to continue.

HAL INC. STOCK PRICE

Tuesday close: $23.625, down $1.625

Los Angeles Times