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Show The National Enterprise , August 11, 1976 THE NATIONAL Page eleven Inflamed Stockholder Berates Firms Action DENVER The proposed ition, but they didnt come out acquisition of the company and the return of dividends worried shareholders at the annual meeting of United American Life of Colorado. Lincoln American Corp., of Lake Success, N.Y., a firm that acts as a holding company for insurance firms, is one that has already bid unsuccessfully for control of the Denver firm. The first attempt at an interest in the Denver insurance company was made in 1973 when the former president of United American Life, Wilmer Wilson, sold the firm 140,000 shares of his own stock at $5 a share to gain a 9.2 percent interest. Continuing the acquisition attempt, Lincoln American bought another block of shares from United American Life directors, who resigned from the board after selling their stock for $4.50 a share. More shares were purchased on the open market at prices between $4.25 and $5 a share until the New York firm had built its interest to 23.5 percent by early 1975. But, by the time Lincoln American finally got around to making a public tender offer for the remaining outstanding shares, the management and new directors of the firm raised a stink. The tender offer was to have been for $3.75 a share, and the management thought the shareholders deserved more. Offer Raised But that antagonism toward Lincoln American melted visibly when the tender offer was kicked up to $4.50 a share. The management and directors dropped their oppos Don't tell me things arent going wrong. When was the days left before we can feel better about things in that area, Nothing seems safe anymore. The far right is always last time a bunch of squirrels decided that they had had worried but they are particularly disturbed by the discovery of enough and tried to end it all by jumping in a river? Or what about the whales the other day? They all decided gold on Mars, Back on Earth. President Ford endorsed National Hobby to leave the ocean. Took a lot of people with a lot of patience to Month with these memorable words: "Hobbies provide a get them to turn around and go back where they belong. Further evidence of growing insanity cames to us from the greatly needed stimulus and outlet for the inventiveness and U.S. Forest Service. They just came up with a first in the solar artistic talents of our people." Hard to disagree with that, Speaking of hobbies. Congressman Allan T. Howe a sun powered flush toilet. They built this thing energy field in Montanas Custer National Forest. Its powdered by 1,664 continues to insult our intelligence. He sharcsthe honor this solar cells. And get this it only cost the tax payers $39,628. week with Senator Howard Baker of Tennessee. The other day The Forest Service is still trying to tell us its a good deal. Theysomcone asked Senator Baker who Ford should choose as vice line president. He said that the President should go for a person say that it is less expensive than running an electric power to the isolated spot 9,190 feet above sea level. It may well be from the sun belt or a western state. Someone pointed out that that it would cost more to run a power line to the top of the he was from the "sun belt." Would he accept the vice mountain. But why would we have to do that? Dont they presidency? "I haven't particularly thought about it," he said. Anyone believe him? make toilets that work just fine on butane? And finally in Grannis, Arkansas thirty people spent last No one, I might add, knows for sure whether the solar month waiting for the world to come to an end. It didn't toilet will get enough sunshine this summer to work. So, they were kicked out for not paying their A report from Nepal says that they are doing ceremonial happen. dances in the streets of Katmandu. Someone up there is mortgage. But they may be right in the end. The weather, we are for 1,000 saying that the planets are lined in a way not seen told, is changing and man and beast are acting strange. In years. The next 15 days or so are critical. The first day we were told to worry about just happened to Philadelphia the germs are getting more aggressive, 11 Perhaps the squirrels arc right! produce an earthquake in China. Anyway, we have about in favor of the offer either. The result was the capture of 756,839.14 of the 1.6 million shares outstanding. While that didn't give control of the company to the New York firm, it was enough leverage to get them three places on the United American Life board of directors. . In the continuing battle for control, Lincoln American made another offer earlier this year for the outstanding stock, offering .8 shares of Lincoln American for each share of United American Life. The board of directors of the Denver firm turned over the offer to be studies by an independent company and later rejected the offer. When Lincoln American raised its stock bid to a trade, the offer was approved, but it hasn't yet been formally made. During the annual meetone-for-o- ne ing, a shareholder asked Irving L. Bernstein, president of Lincoln American and a director of United American Life, the book value of his He said that the company. book value is approximately $6.50 a share, but the stock currently is selling at $3.25 a share on the American Stock Exchange. Meanwhile, United American Life apparently burst through previous problems and reported a substantial gain in income this year and the shareholders wanted a share of those profits, in the form of a dividend. "Why is this meeting being held in such a plush place (the briefing room of the new First of Denver Plaza) in view of the fact weve had no Continued on Page Twelve The Prince Column by John Prince Partner, Prince, Langheinrich & Greer. |