Occidental Petroleum Corp. directors voted yesterday to end the company's attempt to take over Mead Corp., citing "the ferocity of the Mead management opposition to the proposed tender."
A statement issued on behalf of the petroleum company said Mead's reaction to the bid "convinced Occidental that management cooperation is unobtainable."
Occidental's statement also cited the likehood of drawn-out litigation over Mead's attempt to block the takeover bid on antitrust grounds.
Occidental, a petroleum, coal and chemicals conglomerate, was the nation's 27th largest industrial corporaton in terms of sales last year. It made its bid Aug. 11 to acquire Mead, a diversified forest products concern that ranked 146th in sales last year.
Encouraged by Mead, the Justic Department brought suit against Occidental to block the merger on antitrust grounds, citing several products that each of the companies produces.
Occidental proposed taking over Mead by exchanging all of the outstanding Meadd common for preferred and convertible preferred Occidental stock in a deal worth just under $1 billion.
Mead holders would have received 0.28 share of Occidental preferred worth $10 and 0.07 share of convertible preferred worth $7.50 for each Mead share.
After rejecting the bid, Mead directors raised their company's dividened by more than 40 percent to help fend off the bid and filed suit in Dayton.