The Secruities and Exchange Commission yesterday filed suit in U.S. District Court here against Bates Manufacturing Co., a New York Stock Exchange listed company, and several individuals and companies. U.S. and foreign, involved in a takeover attempt of the coal leasing concern.
Late yesterday, all of the defendants consented to the SEC complain without admitting or denying the allegations by the commission.
The SEC said that Philip S. Sassower of New York, a Bates director and controlling stockholder of Arce Equlties Corp. and Lawrence I. Schneider of Greenwich, Conn. along with two foreign nationals tried secretly to buy control of Bates.
According to the complaint, the defendants failed to disclose to the investing public their intentions, as required by law. They also suppressed the results of an evaluation of Bates' coal reserves.
"Based on certain assumptions," the SEC said, the study "estimated those reserves . . . to be worth approximately five times their historical carrying value on Bates' books."
Two other defendants, the SEC charged, bought stock in Bates in August, 1975, after learning "material inside information respecting a possible tender offer for Bates by Great Western United Corp."
This stock was sold the day after the GWU proposal was announced, the SEC said, in a private deal that enriched the defendants.
As part of the settlement, the defendants agreed to reimburse stockholders of Arcs for their losses caused by their actions and bates will have the opportunity to repurchase its shares held by two of the defendants. Bates agreed to appoint three, and Arcs two outside new directors.