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Trial by fire for AMP's new CEO

Article Abstract:

AMP's new chief executive, Robert Ripp, faces difficult situations as his company deals with a $9.8-billion hostile takeover bid from AlliedSignal. Ripp, who was instrumental in boosting sales IBM's PC division and in Big Blue's, rejected the offer and designed a program that involves shutdown of five plants and elimination of 3,500 jobs or 7.5% of its employees. Ripp believes that the plan will yield savings that should then translate to operating profits of 11% in the fourth quarter of 1998, 13.5% in 1999 and 16.5% in 2000.

Comment:

New chief executive, Robert Ripp, faces difficult situations as co deals with $9.8-bil hostile takeover bid from AlliedSignal

Executive changes & profiles, AMP Inc.

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AMP tries to repel Allied with buyback

Article Abstract:

AMP, an electrical connector manufacturer headquartered in Harrisburg, PA, has reported to repurchase 30 million of its shares in a deal valued at $1.65 billion to block the proposed $9.8-billion takeover by Allied Signal. The $55-per-share stock buyback represents 14% of AMP's shares. AMP has obtained financing commitments worth $3.25 billion from affiliates of Credit Suisse First Boston and Donaldson Lufkin & Jenrette to finance the buyback. AMP also sought federal legislation to delay AlliedSignal's takeover bid.

Comment:

Reports to buyback 30 mil of its shares in a deal valued at $1.65 bil to block the $9.8-billion takeover bid by AlliedSignal

Acquisitions & mergers, AMP

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