The Taking of Getty Oil
Page 60
stock buy-back program for, 147–149
supermajority plan for, 175–178, 182–185
Tidewater Oil and, 31
treasury shares in, 191, 201, 203–206
value gap in, 50–51
Wulff study on, 109–111
see also Pennzoil/Getty takeover attempt; Texaco/Getty takeover
Getty Oil Company board of directors, 135–139, 143–150
consent takeover and, 191
emergency takeover meeting of, 287–322
Gordon Getty’s nominations for, 237
July restructuring meeting of, 135–139, 143–150
Liedtke/Getty summit and, 278–280
Liedtke’s telegram to, 372–373
Pebble Beach meeting of, 178–189
supermajority plan for, 175–178, 182–185
Tara Getty lawsuit and, 232–238
treasury shares controlled by, 191, 201, 203–206
Getty Oil leveraged buy-out plan, 139–143, 149–150, 151–168, 170
advisors’ role in, 156–157
banking fees in, 155
bank loan for, 158
consent takeover threat in, 191
fence in, 150, 152, 158–159
first defeat of, 161–162
Goldman study of, 153–154, 158, 167, 170–171
handcuffs issue and, 165–166, 198–201
public share price in, 158
speed required in, 167
stock buy-back plan in, 159
tender offer positioning in, 163–164
Gibson, Dunn & Crutcher, 122, 123–125, 129
Glanville, James, 250–251, 258–260, 266–268
in emergency takeover directors meeting, 308, 310–311
joint takeover agreement and, 285–286
in Liedtke/Getty summit, 275, 280–283
McKinley’s meeting with, 375–376
Glover v. City of Houston, 394–395
golden parachutes, 115, 119, 319
Goldman, Sachs & Company, 105–109, 135, 138–139, 261, 375
as aggressive house, 104
in agreement in principle confusion, 332
black book prepared by, 136, 141, 143, 145–149
ERC value estimates by, 314–315
fairness opinion and, 292–293, 300
Getty directors and, 181
high-quality analysts at, 106–107
in LBO study, 153–154, 158, 167, 170–171
Lipton and, 196, 197
M & A department of, 155
Pennzoil takeover attempt and, 261–262
white knight sought by, 358
Goodrum, Moulton, 254, 274, 275, 327–328
Goodson, Peter, 214
Gother, Ron, 123–125
Granville, Maurice, 338–339
Greenhill, Robert, 196, 344
greenmail, 57
Greyhound Corporation, 47, 138
Griffith, Bill, 359
Gulf Oil Corporation, 244, 398
Guy, Ola, 464, 467, 472
Harris, Mark, 227, 231–232
Hays, C. Lansing:
Copley and, 9, 35–36
death of, 3–4
Dechert Price and, 71–73
in Getty Oil, 8–9, 26–27
Gordon Getty and, 9, 13–14, 17–18
memorial service for, 5, 6–8, 14
personality of, 4–5
Peterson and, 13–14, 18
as Sarah C. Getty Trust cotrustee, 5–6, 8–9, 17–18, 33–34
Security Pacific and, 16–17
in share dividend suit, 24–25
in successor trustee correspondence, 126
Hays, Nancy, 8
Hays, Spencer, 3–5, 6–7
Hays & Landsman, 5
Higgins, Jay F., 281
Hope, Bob, 33, 336
Houston, Tex., 381–382
Howe, Richard, 325
Hueso oil field, 376–377
Hufstedler, Seth, 126–127, 129, 136, 154, 161, 173, 229–238
Hurst, Robert, 145–147
IBM, 55
Icahn, Carl, 217
Indonesia, 42
insider trading, 84–86, 478–479
In the Matter of the Sarah C. Getty Trust, 476
Isaacs, James, 120–121, 125, 127–128, 170, 229
ITT, 258
Jackson, Israel, 464, 467, 469
Jacobs, Irwin, 217
Jagger, Bianca, 96
Jagger, Mick, 96
Jamail, Joe:
background of, 390–395
Baker & Botts lawyers and, 399–400
closing argument by, 457, 459–461
as confident, 410–411
indemnities issue presented by, 418
in jury selection, 413–415
Keeton and, 407
Liedtke and, 384–385, 388–390, 395–396
Liedtke’s testimony and, 419–420
Lipton cross-examined by, 442–446
Miller and, 407, 409–410, 423
political connections of, 409–410
Texaco lawyers and, 398–399, 400
Tisch cross-examined by, 449
as torts king, 384–385
trial role of, 416
Jeffers, John, 384–385, 387–388, 400, 403, 406, 409, 410, 421, 426, 429
background of, 399
closing argument by, 457
in Getty deposition, 425
in jury selection, 415
Lipton’s testimony and, 442
Miller and, 404, 407
trial role of, 416–417
Weitzel cross-examined by, 451
John S. Herold Inc., 51
Johnson, Laura, 415, 467
Johnson, Lyndon, 244
J. Paul Getty Museum Trust:
board of directors for, 139
Getty Oil stock owned by, 139
LBO attempt and, 191–193
Pennzoil takeover attempt and, 259–260, 279, 281–282
Ronald Getty’s suit against, 23
in standstill agreement, 206–209
in Texaco takeover, 370–371
Katz, Stuart, 191, 198, 328, 432
Keeton, Richard, 403, 407, 453–454, 456, 469
Kennedy, Joseph P., 479
Kern River oil field, 42, 62, 253, 314
Kerr, Baine, 249, 274, 278, 376–377, 395–396, 407–408, 416, 418–419, 460
Kidder, Peabody & Company, 156, 212–214, 257, 294, 344, 375
Kinnear, James, 338, 339, 340, 356, 359–362, 374, 407, 450–451, 456, 470–471, 474, 475
Koch, Ed, 197
Kramer, Morris, 355
Kronzer, Jim, 442–443
Kuwait, 42
Ladig, Theresa, 463, 471
La Force, Clayburn, 138, 139, 295
Landry, Edward, 90, 91, 95, 98–100, 120
Larkin, Fritz, 137, 307
Lasky, Haas, Cohler & Munter, 25, 27, 84
Lasky, Moses:
bill submitted by, 225–226
Getty’s board proposals and, 187–188
Gordon Getty’s relations with, 170, 225–226
insider trading warning from, 84–86
in LBO proposal, 157
in London meetings, 192, 198–209
in management reorganization meeting, 35–40
Petersen and, 27–30, 35, 171
Quintana takeover proposal and, 60
in Ronald Getty suit, 25–27
in share dividend suit, 24–25
in supermajority plan, 171–178
Texaco agreement approved by, 367
Winokur’s neutralization proposal and, 184–185
Lawler, Richard, 464–469, 471
Lazard Frères, 196, 252, 344, 375
Leland, Mark, 265, 276
leveraged buy-outs, 140
see also Getty Oil leveraged buy-out plan
Levine, Dennis, 477
Levy, Gus, 104, 105
Lewis, Ronald, 455
Liedtke, Bill, 244–247, 248
Liedtke, John Hugh:
background of, 244–246
directors and, 252–255
emergency takeover directors meeting and, 300–301, 314–315, 320–322
final merger agreement and, 333–334
in Getty summit, 274–283
Glanville and, 250–251
Jamail and, 384–385, 388–390, 395–396
lawyers for, 382–383, 386–387
lobbyist hired by, 383
McKinley’s meeting with, 376–377
morality rhetoric and, 389–390, 431–432
motivations and methods of, 247–248
Nixon and, 248
as Pennzoil v. Texaco witness, 416, 419–423
physical appearance of, 243–244
in post-trial negotiations, 473–474
South Penn and, 246
takeover proposals considered by, 249–252
in United Gas takeover, 246–247
Liman, Arthur, 266, 267–268, 299–301
denouement and, 371–372
at emergency takeover directors meeting, 300, 308, 314–317, 320–322
in Liedtke/Getty summit, 275–276, 280–281
merger expertise and, 386–387
as Pennzoil v. Texaco witness, 416, 419, 437
in takeover press release preparations, 324
Lipton, Martin, 193, 214, 477–478
background of, 194–196
as corporate statesman, 370–371
at emergency takeover directors meeting, 288–290, 308–310, 315–318
final merger agreement and, 328
Liedtke/Getty summit deal and, 275–276, 280–283
in London meetings, 204–209
McKinley and, 354–355, 356
Pennzoil takeover attempt and, 258, 264–265
Pennzoil v. Texaco testimony by, 441–447
in self-tender proposal, 272
in standstill agreement, 215–224
takeover press release preparations and, 324, 328
as takeover specialist, 196–197
Tara Getty’s lawsuit and, 235–238
in Texaco negotiations, 359–361, 364–365, 367, 370–371
Wasserstein and, 353
Loews Corporation, 196, 271, 272
Londean, Hank, 325
Long, Augustus C., 337, 338
Luke, Norman, 249
McGullicuddy, John, 59
McKinley, John K., 312, 373
background of, 338
Conoco takeover and, 341–342
damages issue and, 456
DeCrane and, 340
in Getty takeover attempt, 342–343
Glanville’s meeting with, 375–376
imperial style of, 337–338
in initial takeover meeting, 353–354
Liedtke’s meeting with, 376–377
Lipton and, 354–355, 356
Morgan Stanley and, 344–345
Mukluk project and, 340
negotiated settlement and, 407–408
reforms under, 339
in takeover negotiations, 362–367
McKinley, Virgil, 338
Manufacturers Hanover Trust, 59, 60–61
MCI v. AT&T, 408
Medberry, Chauncey, III, 59, 60, 137, 147–148, 179, 182, 185–186, 225, 286, 291, 302, 312, 319
at emergency takeover directors meeting, 303–306, 318
merger mania, 48, 155
Merger Mania (Boesky), 478
Miller, Keeton, Bristow & Brown, 400, 403, 475
Miller, Richard:
background of, 400–403
Boisi and, 436–437
closing argument by, 457, 458–459
as confident, 408–409
damages issue and, 408, 456, 468–469
Farris and, 433–435
in Great Zipper Incident, 422–423
Jamail and, 407, 409–410, 423
in jury selection, 413–414
Liedtke cross-examined by, 420–423
Lipton’s testimony and, 441, 447
Terrell and, 404–407
at Texaco board meeting, 450
Winokur’s testimony and, 427–435
Miller, Robert, 37–38, 40–41, 46, 48–49, 137, 297
Mobil Oil, 47, 55, 56
Montgomery Ward, 55
Morgan Stanley & Company, 104, 116, 196, 344
Mukluk project, 340
Municipal Assistance Corporation, 196–197, 258
Murphy, Thomas, 355
Musick, Peeler & Garrett, 90
Nader, Ralph, 345
National Football League, 36
Nelson, Willie, 390, 411
Neutral zone oil reserves, 11, 42
New York City financial crisis, 196–197, 258
New York Times, 249, 421
Nickens, J. C., 430, 433, 456–457
Nixon, Richard, 243, 248
North Sea oil reserves, 42
Norton Simon conglomerate, 153
Nutten, Wesley, 122–125
Oakland Raiders, 36, 39
O’Donnell, Dan, 198
oil industry:
collusion in, 335–336
diversification in, 55–56
exploration spending in, 54–55
megacorporations in, 109–110
public perception of, 335–336
royalty trusts in, 50
stock prices in, 50–52
U.S. reserves in, 52–53
O’Melveny & Meyers, 125–126
OPEC, 51, 53, 335, 336, 337, 339
Osterkamp, Horst, 26
Palmer, Arnold, 257, 335
Papamarkou, Alexander, 46–47, 269
Paul, Weiss, Rifkind, Wharton & Garrison, 266, 324, 325, 333, 386–387
Pennzoil Company, 243
as aggressor company, 336
antitrust suits initiated by, 383
breach-of-contract suit brought by, 385–387
entrepreneurship cult in, 247–248
in liquidation state, 248–249
public relations work for, 324–325
Pennzoil/Getty takeover attempt
advisors’ meetings on, 266–269, 323–331
agreement in principle in, 326–327, 329–331, 350–351
attorneys’ delay in, 357–358
“Christmas surprise” in, 252–253
direct meeting in, 267–269
divorce clause in, 267
ERC problem in, 358
fairness opinion in, 292–293, 300
final merger agreement in, 325, 332–335
four-sevenths plan in, 278, 284, 292
Getty employees and, 333
Getty family lawsuit and, 262–263, 358
initial proposals for, 249–252
Liedtke/Getty summit on, 274–283
museum shares in, 259–260, 279, 281–282
Pennzoil directors in, 253–255
press release on, 324–331
public stockholders in, 323–324, 300–331
self-tender defense in, 269–273
share price in, 261–262, 279–284, 292, 322
“split the blanket clause” in, 278
subsidiaries in, 253
tactical lawsuits filed in, 383–384
tender offer in, 252
Texaco merger negotiations and, 375–377
Pennzoil v. Texaco:
agreement in principle issue in, 437–438
appeals in, 475–476
Boisi’s testimony in, 436–441
charge to the jury in, 452–457
closing arguments in, 457–461
confrontational mood in, 398–399, 404–407
contract issue in, 409, 453–455
damages in, 455–457, 467–469
documentary evidence in, 417–418
Gordon Getty in, 416, 421, 423–425, 429–430, 438
Great Zipper Incident in, 422–423
indemnities issue in, 418
judge changed in, 448
jury deliber
ations in, 462–469
jury selection in, 412–415
Kerr’s testimony in, 418–419
knowing interference issue in, 409
lawyers in, 398–405
Liedtke’s testimony in, 416, 419–423
Lipton’s testimony in, 441–447
morality rhetoric in, 389–390, 431–432
New York law selected for, 408–409
pace of, 449
Pennzoil’s affirmative case in, 416–425
post-trial settlement negotiations in, 473–474
pre-trial negotiated settlement attempted in, 407–408
Texaco’s defense in, 426–447
Texaco’s executives’ testimony in, 449–452
verdict in, 469–472
Winokur’s testimony in, 427–435
Perella, Joseph, 346, 347, 372, 375
Gordon Getty and, 352, 354
in initial takeover meeting, 348–354
Liedtke and, 350–351
Perry, Claire Getty, see Getty, Claire
Petersen, Nancy, 32, 33, 56
Petersen, Sidney, 5, 9, 136–138, 170, 373
background of, 30
in Bonaventure meeting, 76–83, 86
confidential company information and, 67–70
at emergency takeover directors meeting, 288, 290–292, 294–295, 297–299, 301, 305, 309
executive style of, 31–33
golden parachute for, 115, 119, 374
Goldman study and, 101–109
Gordon Getty and, 33–35, 40–50
in guardian ad litem plan, 129–131
Hays and, 13–14, 18
investment houses and, 48–50
joint takeover agreement and, 283–286
J. Paul Getty Jr. and, 229–230
at July directors meeting, 138, 143–150
Lasky and, 27–30, 35, 171
LBO proposal and, 141–143, 149–150, 152–162
Liedtke and, 251
Liedtke/Getty summit and, 277, 278
in London meetings, 192–193, 197–209
McKinley and, 373, 374
in management reorganization meeting, 35–40
at Pebble Beach directors meeting, 179–189
Pennzoil/Getty takeover attempt and, 254, 256, 261–265
in Pennzoil v. Texaco, 423, 428, 429–430
Pickens and, 52, 53–57
Pickens takeover proposal and, 113–118
raiders and, 57–61, 66, 73–76
retirement of, 397
royalty trust and, 62–65
self-tender proposal and, 269–273
in sole trustee challenge, 87–100
in standstill agreement, 218–224
stock buy-back program and, 148–149
in supermajority plan, 171–178
Tara Getty lawsuit and, 232–238
Teets and, 47
Texaco takeover and, 332, 342
in Tidewater Oil, 30–31
treasury shares and, 191
Williams and, 141–142
Wulff study and, 110, 111
Phillips Petroleum, 111–112
Pickens, T. Boone, Jr., 50
background of, 111–112
Getty takeover proposal by, 113–118, 149