Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Path: utzoo!watmath!clyde!floyd!harpo!decvax!cca!ima!ism780!judy
From: judy@ism780.UUCP
Newsgroups: net.invest
Subject: take overs - (nf)
Message-ID: <242@ism780.UUCP>
Date: Sat, 16-Jun-84 00:06:31 EDT
Article-I.D.: ism780.242
Posted: Sat Jun 16 00:06:31 1984
Date-Received: Thu, 21-Jun-84 02:13:24 EDT
Lines: 26

#N:ism780:14000002:000:1384
ism780!judy    Jun 14 16:26:00 1984

I have some questions about take overs.  This is prompted by the recent
experience Disney has had with Steinberg.  I was asking my investment banker
brother-in-law about his latest big deal and he pointed me to the
newspaper on Saturday stating that Steinberg had bought out Disney.  As you
probably read, this didn't happen.  Rather Disney paid him off to get him
not to buy them out.  And Steinberg made a huge profit at it.  Apparently
this is the sixth time he's done this.

Now, to my innocent eyes it looks like Disney was in a position in which they
had to pay someone not to screw them over.  And this seems underhanded
to me.  Is it as unethical as it appears?  Are there laws to stop
it?  And if not why not?  I hate to realize that there are bullies in
the adult world behaving no better than the neighborhood bullies we all
hated as children.  And I'm saddened even more to think my family is helping
them.

But before I get on a moral high horse to my brother-in-law (he's flamed at
me a couple of times for matters far less important) I'd like to get a better
picture of the transaction.  The analogy I want to use is "How would you feel
if someone took your son and made you pay x dollars not to ruin his life?"
But since Disney is no longer privately owned but is a corporate entity
this losses some potency as an example.  But ethically it is the same type
of thing.