Firm hints Glazer boosts buyout offer


June 04, 1993|By Ted Shelsby | Ted Shelsby,Staff Writer

Shareholders of Allied Research Corp. were left in suspense yesterday when the company disclosed that its board is considering a buyout proposal higher than the $16.50 a share offer it received in mid-April.

Jay R. Sculley, chairman and chief executive of the munitions maker, told shareholders at its annual meeting here that the board had received a bid higher than the previously announced $75 million acquisition proposal from Florida businessman Malcolm L. Glazer.

Although he declined to identify the source of the higher bid, Mr. Sculley hinted that Mr. Glazer had upped the ante. He told reporters after the meeting that the board was considering proposals only from Rochester-based First Allied Corp., the Palm Beach businessman's closely held investment company.

Contacted by telephone yesterday in Palm Beach, Mr. Glazer declined to comment.

Mr. Glazer also heads one of the two business groups vying for a National Football League franchise in Baltimore.

First Allied Corp. holds about 9 percent of the 4.53 million Allied Research shares outstanding.

During the meeting, Mr. Sculley also announced that the company had moved its small headquarters staff from Baltimore to Tysons Corner, Va., last month to be closer to the Pentagon and foreign consulate offices that it meets with regularly as part of its foreign military sales.

At the meeting, Mr. Sculley projected a rosier outlook for Allied than that faced by most defense contractors, who are suffering from declining Pentagon budgets.

Because the company -- which has most of its manufacturing operations in Europe -- sells primarily to Middle East countries where military spending is still on the rise, Mr. Sculley predicted BTC continued growth for its military business over the next several years.

As an example, he said, Allied expects to announce that it has won a military contract amounting to "more than $50 million" within the next 60 days.

He also predicted steady growth for the company's newly launched business of military waste disposal, which includes worldwide stockpiles of artillery shells dating to World War I.

Allied shares, which are traded on the American Stock Exchange, closed at $16.125 yesterday, up 87.5 cents. The high for the day was $16.625, 12.5 cents more than the previously announced offer from Mr. Glazer.

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.