Teledyne Rejects Takeover Bid by WHX, Raises Dividend 50%

Teledyne Inc. on Thursday rejected a $1.78-billion takeover offer from WHX Corp., the parent of steelmaker Wheeling-Pittsburgh Corp., and hiked its quarterly dividend by 50%.

Teledyne said its board rejected the bid on grounds the company “is worth far more than $32 a share.”

New York-based WHX, headed by financier Ronald LaBow, is offering $32 in cash and stock for each of the 55.7 million common shares of Teledyne, a Century City-based conglomerate with interests in aerospace products, industrial machinery, consumer goods and specialty metals.

WHX executives could not be reached for comment.

Before the announcement, Teledyne’s stock closed at $28.125 a share, down 12.5 cents, in New York Stock Exchange composite trading.

Teledyne also said it raised its quarterly dividend to 37.5 cents a share from 25 cents, reflecting its improved profitability over the past 12 months.

This is the second time Teledyne has rebuffed WHX’s overtures. Last year, Teledyne rejected a $1.2-billion offer from WHX, prompting WHX to wage a proxy fight for control of Teledyne’s board. WHX did win one seat that was taken by LaBow.

However, all eight of Teledyne’s directors are up for election at the annual meeting April 24, and WHX has again nominated a slate of dissident nominees.