The Taking of Getty Oil
Page 61
greenmail tactics of, 57
Liedtke and, 248
in oil takeovers, 48, 52–53, 112–113
personal style of, 112
Petersen and, 52, 53–57
Wulff and, 109, 111
poison pill takeover defense, 194
Quintana Petroleum, 58, 84
Reagan, Ronald, 48, 109, 260 265
Reliance Electric, 55
Robertson, Corbin, Jr., 58, 59–66, 69, 74, 83, 157
Robertson, Greg, 143, 145, 147
Rockefeller Standard Trust, 336
Rohatyn, Felix, 196–197, 258, 266
Roosevelt, Franklin D., 479
Roth, Jack, 276
Royal, Darrell, 411
royalty trusts, 50–51, 62–65
Salomon Brothers, 196, 281, 344, 375
Sarah C. Getty Trust:
appraisal rights in, 163
creation of, 15
Georgettes’ interest in, 120, 121
Getty Oil stock under, 5, 23
guardian ad litem plan for, 121–131
income from, 15, 22–23
Isaacs cotrustee discussion on, 120–121
as largest legacy, 5–6
Ronald Getty’s suit against, 23–27
share dividends in, 24
sole trusteeship challenge in, 87–100
trustees for, 5–6, 8–9, 14–16, 26–27, 33–34
value of, 14
Wulff study and, 110–111
Sarofim, Fayez, 268–269
Saudi Arabia, 332
Schlaet, Arnold, 337
Seagram’s corporation, 341
Securities and Exchange Commission (SEC), 118, 141, 248, 420, 478
Security Pacific National Bank, 22, 25, 38
Bank of America and, 121
guardian ad litem plan and, 121, 122–125
as Sarah C. Getty Turst cotrustee, 15–17
in sole trusteeship challenge, 89–95
Seven Sisters, 336
Shannon, Jim, 464, 465, 466–467, 471
Shapiro, Stuart, 213
Shell Oil Company, 314, 350
Siegel, Martin, 156, 216–219
Boesky and, 478–479
denouement and, 371–372
at emergency takeover directors meeting, 288, 292, 294, 316–317, 321
fees earned by, 375
joint takeover agreement and, 284–285
in Liedtke/Getty summit, 274, 276–280
Pennzoil takeover attempt and, 257–258, 267–268
personal style of, 212–213, 346
“range of values” presented by, 363
in self-tender proposal, 269–273
in standstill agreement, 221
in takeover press release preparations, 324, 326
in Texaco negotiations, 362, 364, 367
Skadden, Arps, Slate, Meagher & Flom, 194, 355, 386–388
Smith, Robert, 92
Smith Barney, 104
SmithKline Beckman Corporation, 138
Sotheby’s, 237
South Penn Oil Company, 246
Spain, 42
Spindletop oil field, 57, 337
Standard Oil, 337
Standard Oil of California, 314
standstill agreement, 206–209, 215–224
Stuart, Harold, 261, 291, 292, 294, 296–297, 303, 306, 309, 319
supermajoriry plan, 171–178, 182–185
Supreme Court, U.S., 473, 475–476
Taubman, Alfred, 237, 297, 299, 319
Tavoulareas, Bill, 47–48
Taylor, Harris, 95
Teets, John, 47, 49, 138, 233, 286, 307
at emergency takeover directors meeting, 304, 307
at July directors meeting, 145, 148–149
Terrell, Irv, 384, 385, 400, 403, 409, 410, 421, 426, 429
background of, 399
Boisi cross-examined by, 437–441
closing argument by, 457–458
DeCrane cross-examined by, 451–452
in jury selection, 414, 415
Miller and, 404–407
trial role of, 416
Winokur cross-examined by, 432–433
Texaco/Getty takeover:
antritrust issues in, 383–384
breach-of-contract suit unanswered in, 386–388
Getty employees and, 374, 397
Getty family and, 374–375
golden parachutes in, 397
Gordon Getty’s shares in, 351–352
indemnity issue in, 360
initial contacts in, 312–314, 331–332, 340–341
initial meeting in, 348–354
injunction requested against, 385
investment bankers’ fees in, 375
legal obstacles in, 363
Liedtke’s reaction to, 372–378
operations integrated in, 397
Pennzoil option in, 350–351
reserves in, 341
share price in, 360–367
squeeze strategy in, 351–352
tactical lawsuits filed in, 383–384
terms negotiated in, 359–362
Texaco directors in, 352–353, 355–356
willingness issue in, 354
see also Pennzoil v. Texaco
Texaco, Inc., 312
as autocratic company, 337–338
downstream operations in, 339
exploration programs at, 339–340
friendly merger policy of, 340–342, 348–349, 352, 368
post-trial problems of, 473–478
public image of, 336–337
triumvirate in, 338
Texas Company, 337
Tidewater Oil Company, 22, 30–31, 79
Time, 271
Tisch, Laurence, 196, 237, 312, 317, 436
at emergency takeover directors meeting, 297–307
Pennzoil v. Texaco testimony by, 449
in self-tender proposal, 271–273
Texaco takeover and, 354, 355, 363–366
Wasserstein and, 347
Tisch, Robert, 196, 271
Topping, Norman, 39, 137
Treves, Vanni, 95, 98–99, 120, 192, 210–211, 229–230, 231
Tribe, Larry, 473
United Gas, 246–247
Vinson & Elkins, 382, 399, 403
Vlahakis, Patricia, 204, 207, 208, 284, 324–328, 333, 358–359, 441, 445–446
von Bülow, Claus, 96
Wachtell, Lipton, Rosen & Katz, 194, 269, 284, 386
Wall, Shirley, 464, 466–467
Wall Street Journal, 326
Warren, Robert, 122–123
Wasserstein, Bruce, 155–156, 365, 375, 436
background of, 345–346
as “chumming” for merger clients, 347
in initial takeover meeting, 353, 356
personal style of, 346
squeeze strategy and, 352
in terms negotiations, 361
Watergate burglary, 248
Weinberg, John L., 105, 106, 107, 312, 342–343, 355, 356
Weinberg, Sidney J., 104, 105
Weitzel, William, 355, 359, 360–365, 471
Wendt, Henry, 44–45, 138, 179, 181, 182, 185, 233, 234, 265, 286, 292, 293–295, 297, 301, 312, 373
Whitehead, John C., 105–109
Williams, Harold, 139–143, 148, 152, 180, 181, 187, 188–189
background of, 153
at emergency takeover directors meeting, 288–290, 301–303
Getty board nomination for, 179, 235
in LBO proposal, 139–143, 152–162
Lipton and, 193–194
in London meetings, 197, 198–209
Pennzoil takeover attempt and, 259, 263–265
as SEC chairman, 141, 153
in standstill agreement, 219–224
Tara Getty’s lawsuit and, 237–239
Wilson, William, 260
Winokur, Barton J., 70–73, 74, 151–152, 230
background of, 70–71
Boisi and, 156
in Bonaventure meeting, 76–83
at emergency takeover directors meeting, 288, 289, 291, 292, 295, 298–299, 310, 317–318
final merger agreement and, 333, 357–358
Goldman study and, 106
in guardian ad litem plan, 122, 126, 129
in handcuffs issue, 165–166
in Isaacs cotrustee discussions, 120–121
joint takeover agreement and, 284–286
in LBO proposal, 154–168
in London meetings, 193, 197–209
neutralization proposal by, 184–185
Pennzoil takeover attempt and, 261–263, 265
in Pennzoil v. Texaco, 423–424, 427–435, 451
in Pickens takeover meeting, 116
in self-tender proposal, 269–273
in sole trusteeship challenge, 87–100
in standstill agreement, 215–224
in supermajority plan, 171–178, 182–185
in takeover press release preparations, 324, 327
Tara Getty lawsuit and, 233–237
ultimatum proposal and, 192
Wulff study and, 110, 111
Woodhouse, Tom, 25, 64
at emergency takeover directors meeting, 288
Goldman study and, 102–106
in handcuffs issue, 165–166
LBO proposal and, 142, 143, 153–168
in Liedtke/Getty summit, 276
in London meetings, 198–209
in Pennzoil takeover attempt, 266
Siegel and, 213–215
in supermajority plan, 172–178
in Texaco negotiations, 362, 363, 367
Wulff, Kurt, 53, 109–111, 113, 127, 136, 148
Xerox, 55
Zapata Petroleum, 245
About the Author
Steve Coll is a staff writer at the New Yorker, the dean of the Columbia Journalism School, and the bestselling author of seven books. Previously he served as president of the New America Foundation and worked for two decades at the Washington Post, where he won the Pulitzer Prize for Explanatory Journalism for a four-part series on the Securities and Exchange Commission during Ronald Reagan’s presidency. The award-winning series became the basis for Eagle on the Street (1991), coauthored with David A. Vise. Coll’s other books include New York Times Notable Book The Deal of the Century (1998); Ghost Wars (2004), winner of the Pulitzer Prize for General Nonfiction; The Bin Ladens (2009), winner of the PEN/John Kenneth Galbraith Award for Nonfiction; and Private Empire (2012), winner of the Financial Times and McKinsey Business Book of the Year Award.
All rights reserved, including without limitation the right to reproduce this ebook or any portion thereof in any form or by any means, whether electronic or mechanical, now known or hereinafter invented, without the express written permission of the publisher.
Copyright © 1987 by Steve Coll
Cover design by Ian Koviak
ISBN 978-1-5040-4504-9
This edition published in 2017 by Open Road Integrated Media, Inc.
180 Maiden Lane
New York, NY 10038
www.openroadmedia.com
STEVE COLL
FROM OPEN ROAD MEDIA
Find a full list of our authors and
titles at www.openroadmedia.com
FOLLOW US
@OpenRoadMedia