In the wake of the turmoil on Wall Street, Telex Corp has effectively given up hope of beating off the $65 a share takeover bid from Asher Edelman and sent a memo to shareholders on Friday preparing them for the inevitable. When our stock is selling at substantially les than the offer price, our stockholders may likely sell their stock to TLX Partners unless there is a better offer on the table, the memo warned. Many companies that might normally be interested in discus-sing a transaction with us are in shell-shock from the decline in their own stock prices, so they are hesit-ant to launch any major new venture committments. In effect putting its affairs in order, Telex has appoin-ted a bank in its home town of Tulsa, Oklahoma as ind-ependent trustee for the company pension fund and sev-eral other employee benefit programmes, and has organ-ised a reasonable severance plan to protect the int-erests of senior management people who may find they are not wanted by the new owners of the company. Ed-elman’s plan is to merge parts of Telex with Datapoint Corp and with his InteLogic Trace maintenance company.
This article is from the CBROnline archive: some formatting and images may not be present.
CBR Online legacy content.