No Plans to Split Up Teledyne, Chief Says

Teledyne Inc. shareholders Wednesday were promised a “great rebirth” of the conglomerate in the 1990s, but management again ruled out dismantling the firm to raise stockholder value.

At the company’s annual meeting at the Beverly Hilton, Teledyne Chief Executive George Roberts used the term “great rebirth” to describe Teledyne’s future. But asked by a shareholder to elaborate, the 71-year-old Roberts said: “I was merely trying to emphasize that this management team has an opportunity to do a fine job.”

Teledyne stock has been a poor performer in recent years, after soaring for most of the 1980s. The Los Angeles-based company, a far-flung collection of businesses assembled by Chairman Henry Singleton, has been hurt by weak earnings at its defense and electronics subsidiaries.

On Monday, Teledyne spun off its Unitrin insurance subsidiary to shareholders. The move was viewed by some analysts as a sign that the 73-year-old Singleton may be ready to break up the company. Many of Teledyne’s businesses, in theory at least, could be sold for hefty sums.

But after the meeting Wednesday, Singleton said that while Teledyne gets offers for some of its divisions “all the time,” he has “no desire to sell a significant amount of assets.”

Singleton said his philosophy of building Teledyne’s assets over time is intact. “The quick buck is for a different citizen,” he said. And shareholders with that attitude “ought to buy something else,” not Teledyne, he said.

Singleton also said the company is in no hurry to launch another major stock buyback program despite the stock’s slump. “My feeling is we shouldn’t be too aggressive until we see how things work,” he said, referring to Teledyne’s status now without Unitrin.

Teledyne stock fell 62.5 cents to $28 on Wednesday, a 52-week low.

As expected, William Rutledge, 48, was named president of the company and a director. He had been executive vice president. Roberts remains CEO and was named vice chairman as well.