Lukens board says Allegheny Teledyne offer is better
COATESVILLE, Pa., (AP) _ Directors of Lukens Inc. decided Tuesday that a buyout offer from Allegheny Teledyne Inc. is superior to one they have with Bethlehem Steel Corp.
Bethlehem agreed Dec. 15 to pay $25 a share in cash and stock for Lukens, for a deal worth about $400 million.
Allegheny Teledyne, a Pittsburgh-based specialty steelmaker, made an unsolicited bid Dec. 22 of $28 in cash for each share of Lukens stock, a total of some $465 million.
The Lukens Board of Directors took no other action on the Allegheny offer and Bethlehem will now have the opportunity to respond, said Lukens spokesman Rick Whitmyre.
Bethlehem, in a terse statement issued Tuesday night, said the company was aware of the action by the Lukens board and was considering its alternatives.
Lukens is a specialty steel manufacturer whose operating units supply carbon, alloy and clad plate steels; and stainless steel sheet, strip and plate products.
In the proposed deal between Bethlehem and Lukens, the two companies said they would close two plate steel mills in 1998 _ a 30-employee Lukens mill in Coatesville, Pa., and a 400-employee Bethlehem mill in Sparrows Point, Md. Two divisions of Lukens also would be sold.
Bethlehem currently employs about 15,500 workers and Lukens 3,400.
Allegheny Teledyne, employing about 24,000 people, concentrates on aerospace, electronics and industrial and consumer products. It was formed in 1996 when Los Angeles-based Teledyne Inc., a defense contractor, merged with Allegheny Ludlum Corp.