|
Icahn told to get in line
|
 |
April 5, 2000: 3:31 p.m. ET
Nabisco, seeking to end public dispute, tells raider to sign confidentiality paper
|
NEW YORK (CNNfn) - Embattled cookie and cracker king Nabisco Group Holdings Corp. told billionaire raider Carl Icahn it would consider his $16 per share takeover offer only if he follows the proper channels and obtains a confidentiality agreement from the company's financial advisors.
In a letter sent to Icahn Wednesday, Nabisco Chairman Steven Goldstone sought to end the public sparring between the company and its largest individual shareholder, by encouraging him to work through Nabisco's advisers, Warburg Dillon Read and Morgan Stanley Dean Witter.
"We would be pleased to welcome you to join in the process," the board wrote. "Our Board will consider all bona fide proposals at the appropriate time."
 Icahn moved to accelerate Nabisco's sale late Tuesday when he offered to purchase the holding company for Oreo cookies, Ritz crackers and Planters peanuts for $16 per share cash.
The offer came one day after Nabisco's board rejected Icahn's proposal to purchase up to 30 percent of the company's shares for $13 per share. However, the board did say it would hire financial advisors to explore alternatives to "maximize shareholder value," including possibly selling the company's lone holding a 80.6 percent stake in Nabisco Holding Corp. (NA: Research, Estimates).
Icahn was not immediately available for comment.
 Nabisco shares, which traded in a narrow range all day, were up 9/16 to 15-1/16 by mid-afternoon Wednesday, and have now climbed nearly 63 percent in the last five trading days alone.
Some analysts have speculated Icahn's sole purpose in publicly pushing for a takeover is to drive the company's shares up and then sell for a hefty profit.
But Icahn said Tuesday he was committed to finding a buyer for Nabisco, which has struggled to overcome a weak market for food industry stocks and the perception that the company may still be financially liable for any settlements related to tobacco litigation.
However, analysts have also valued Nabisco at upwards of $33 per share, indicating Icahn's bid may fall well short.
Nabisco's annual meeting is currently slated for May 9, at which time Icahn has pledged to initiate a proxy battle for control of the company's board if he is not satisfied the company is sufficiently pursuing the sale of the company. 
|
|
|
|
|
|
Nabisco Holdings
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
