Word: bendix
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Dates: during 1980-1989
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...courtship was brief and tumultuous. Not surprisingly, the marriage was on the rocks before it really got started. After eight days as president of the combined company formed by the merger of Allied Corp. and Bendix Corp., William Agee, 45, decided last week to resign, effective June 1. Reason: Allied Chairman Edward Hennessy would not give him major responsibilities. Said Agee...
Agee and Hennessy were first thrown together in a fierce takeover fight last September. As chairman of Bendix, Agee tried to buy Martin Marietta Corp., but his prey decided to become the predator. To save Bendix from being bought by Martin Marietta, Agee turned to Hennessy, and after four whirlwind days of talks they agreed to merge. Agee got a promise that he would be president of Allied, but his future duties were not settled. Shortly after the merger was officially approved by stockholders a fortnight ago, Hennessy forced the resignation of Alonzo McDonald, who had been Agee...
...that the battle is over, there are growing worries within Allied as to just how it is going to digest Bendix-and doubts all around about the merits of white knighthood in general. The corporate Lancelots usually pay a great deal more for the companies that they rescue than hostile raiders would have paid in the first place. And they must live with the results of such expensive derring-do. Too often that means coping with huge financial burdens and assimilating unfamiliar corporations. Some of the mergers may eventually work out, but few of them, at least...
That was seen as further evidence of the frigid relations between Bendix's Agee and Hennessy. The Allied chief has vowed that Agee "will have no line duties at Allied," even though he is the company's titular president. McDonald's departure will have the intended effect of keeping Agee tied down at Bendix in Michigan, inhibiting him from becoming involved in Allied affairs back East. Hennessy has also promised that he will study, presumably with a critical eye, the "golden parachute" package fashioned by Bendix directors for Agee during the merger battle. Under its terms, Agee...
Agee has thus paid the ultimate price for the blundered Martin Marietta merger: he has lost Bendix. Yet he was keeping up a brave front. Said he last week: "I firmly believe that where mergers are intelligently done, they create jobs and wealth. And this one was." He pledged to stay on at Allied "as long as I'm needed...