Western Air Lines President Dominick Renda has rejected a proposed takeover bid from UNC Resources, a Falls Church-based uranium company. Renda challenged UNC to announce publicly that the local firm has "not made a definitive proposal" to acquire Western and that UNC does not "intend to make any such proposal."
In a letter dated today and dispatched last night by Western to UNC Chairman Keith Cunningham, Renda said it is "mandatory" that UNC withdraw from its announced plan to make an offer for Western. He charged that UNC was interfering with proceedings already under way for a previous agreement to merge Western and Continental Airlines.
Renda alleged that UNC is "misleading" the public by its announcements of an offer for Western. "We fail to see how you could formulate any proposal which could better serve longterm interests of the employes and all of the stockholders of Western, ad of the public interest than the merger of Western and Continental," Renda added.
UNC made an unsolicited proposal to Western on Dec. 22 and, at that time, Western said it would study any such plan. A meeting with investment advisers to both firms was held last week and another sesseion was planned for today in advance of a Western board meeting set for a week from today. But Renda said that UNC "unilaterally" cancelled today's meeting. Renda described this step as an "abrupt and unexplained change in plans."
"Your bizarre actions during the past 10 days" had led Western officials to conclude that in light of UNC's financial condition and air industry problems, UNC is unable to make an acquisition proposal, Renda told Cunningham. The UNC chairman said last night he had not seen the Western letter and would have no comment.