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STANLEY CEO COMMENTS ON CONNECTICUT ANTITRUST LAWSUIT

 STANLEY CEO COMMENTS ON CONNECTICUT ANTITRUST LAWSUIT
 NEW BRITAIN, Conn., July 1 /PRNewswire/ -- Richard H. Ayers, chairman and chief executive officer of the Stanley Works (NYSE: SWK) commented today on Connecticut Attorney General Richard Blumenthal's antitrust action "to block proposed takeover" of the Stanley Works.
 Ayers said: "We believe that Newell's intention to obtain control of Stanley is unlawful. We are gratified to learn that the Attorney General has initiated this legal action. For our part, we shall continue to pursue an independent course to benefit Stanley shareholders, customers, employees and community members."
 Following is a press release issued today from Connecticut Attorney General Richard Blumenthal:
 BLUMENTHAL SUES TO BLOCK PROPOSED TAKEOVER OF NEW BRITAIN-BASED
 STANLEY WORKS BY NEWELL COMPANY
 Attorney General Richard Blumenthal today filed a lawsuit in United States District Court in Hartford to prevent Illinois-based manufacturer Newell Company from unlawfully acquiring the Stanley Works of New Britain, Conn., a leading international home improvement/consumer products and industrial/professional products manufacturer.
 Blumenthal alleges the acquisition would violate state and federal antitrust laws, damage the state's economy and raise prices for consumers by significantly reducing competition in the markets Stanley serves.
 "This lawsuit should preserve a leading Connecticut-based business as a force to keep competition strong in the tool, hardware and housewares market," Attorney General Blumenthal said. "There is no guarantee, should Newell succeed, that Stanley will remain a leading employer and manufacturer in the state of Connecticut."
 "A Newell takeover of Stanley would harm competition in the hardware manufacturing industry and mean higher consumer prices," said Blumenthal.
 The Stanley Works, a publicly held Connecticut corporation founded in 1843, is a significant competitive force in seven key U.S. hardware markets: cabinet hardware; home improvement hardware; locking pliers; manual paint applicators; hot-melt glue guns; home improvement staplers; and riveting tools.
 Newell owns 45 percent of American Tool Company, a private corporation engaged in the sale and manufacture of hand tools, including "VISE GRIP" locking pliers. In addition, it owns a significant interest in Black & Decker Corporation.
 "Although Newell Company intends to acquire complete control of Stanley," Blumenthal said, "even a small stock holding could enable Newell to influence Stanley's management and business decisions and coordinate its market behavior and that of its affiliated companies with Stanley's, in violation of state and federal antitrust laws."
 According to the complaint, Newell Company has engaged in acquisitions of more than 20 companies since the 1960s. One of Newell's acquisition strategies is to "engage in so-called 'creeping takeovers,' whereby Newell acquires a significant number of shares on the open market prior to making a tender offer."
 The attorney general has authority, under state and federal antitrust laws, to sue to prevent illegal acquisitions. The state's lawsuit against Newell asks the court to prevent Newell from taking over Stanley and require Newell to divest of all Stanley stock the company currently owns.
 Stanley Works filed a lawsuit to prevent the "unfriendly" takeover last year. The action filed today by the state is separate and independent of that one, but the two could be heard together by the federal judge. In 1990, Stanley had net earnings of $1.98 billion. The company employs approximately 18,000 people worldwide, 11,600 in the U.S. and 2,400 in Connecticut.
 The case is being handled by Assistant Attorneys General William M. Rubenstein, Carl F. Yeich and Robert M. Langer.
 -0- 7/1/92
 /CONTACT: Ronald F. Gilrain of Stanley Works, 203-827-3882/
 (SWK) CO: Stanley Works ST: Connecticut IN: SU:


PS-OS -- NY057 -- 5663 07/01/92 11:42 EDT
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Date:Jul 1, 1992
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