Mead Corp. gave up a round in its battle to block a takeover bid by Occidental Petroleum Corp. yesterday, but the diversified forest products company vowed to continue its fight.
Mead announced yesterday it would withdraw its appeal of a decision last week by the Ohio Division of Securities clearing the way for Oxy to acquire Mead. The company is based in Dayton, Ohio.
The division had ruled Oct. 20 that Oxy. the Los Angeles-based energy company, would have to make a more complete disclosure of its business dealings to Mead stockholders before the Ohio body would clear the takeover.
Last week, the commission said it was satisfied with Oxy's new disclosures. Mead immediately appealed the decision in state court, but withdrew that appeal yesterday.
"A determination has been made that current priority rests in pursuing other arrests than the appeal in Ohio," the company said in a carefully worded statement.
Oxy still has some major hurdles to clear before the takeover of Mead, valued at $900 million, can be consumated.
The Securities and Exchange Commission is reviewing Oxy's registration statement on the Mead offer to determine whether the oil company has failed to disclose material facts about its operations."
In U.S. District Court in Dayton, meanwhile, the Justice Department is trying to get a court order blocking the merger on the grounds that the combined companies could monopolize the market for certain products that each now produces. They include sodium chlorate, coal and certain paper products.
A private suit by Mead seeking an injunction against the takeover has been combined with the Justice Department suit.
Oxy's common stock closed yesterday down 3/4ths from Monday at 15 5/8, at 25 1/2, down 1 1/2.