Allegheny Beverage Corp., the Baltimore Pepsi-Cola bottler, disclosed yesterday it has bought another 10 percent of the Macke Co., and now is Macke's biggest stockholder, controlling more than 30 percent of its shares.
In the latest report on its effort to buy control of Macke, Allegheny Beverage told the Securities and Exchange Commission it had purchased 923,500 shares by last Thursday, when a court order was issued prohibiting any more purchases.
Allegheny attorneys yesterday tried unsuccessfully to have that order lifted, and they are scheduled to be back in U.S. District Court again today for another hearing in the complicated legal battle between the two regional companies.
Macke contends Allegheny's purchases of its stock amount to an illegal attempt to take control of the company without complying with federal laws. Agreeing that a takeover by Allegheny appeared imminent, U.S. District Court Judge John Garrett Penn last week ordered Allegheny temporarily to stop buying Macke stock. Now Macke lawyers want to make the temporary order permanent.
Macke also hopes to prevent Allegheny from taking title to the latest stock it purchased. The shares were bought before Judge Penn's order was issued but have not been transferred to Allegheny, Macke officials said yesterday.
In a report filed with the SEC on Friday and made public yesterday, Allegheny said it had bought 923,000 shares of Macke, or 30.4 percent of the stock. The report indicates Allegheny bought more than 250,000 shares of Macke last Wednesday and Thursday. In an SEC filing dated Wednesday, Allegheny totaled its holdings at 670,300 shares, or 22.1 percent of Macke.
Allegheny also disclosed that it has arranged to borrow $10 million from Lease Moore Equipment Inc. of Minneapolis to finance its purchases of Macke stock. Company officials said yesterday that Allegheny already has used part of the borrowed money for its latest purchases.
Until Allegheny began buying the stock, Macke appeared to be under control of the families of chairman Meyer Gelfand and his predecessor, former chairman Aaron Goldman. The Goldman-Gelfand group owns 22 percent of Macke stock.
After the controlling shareholders turned down an offer to sell out, Allegheny filed notice with the SEC that it intended to buy at least 25 percent of Macke and quickly began making the purchases.
Allegheny, which has the Pespi-Cola and Dr. Pepper franchises for the Mid-Atlantic region, is barely half as big as the company it is trying to take over.