California beer baron Paul Kalmanovitz entered the bidding battle for Pabst Brewing Co. of Milwaukee yesterday by announcing a tender offer of $32 a share for 4.1 million shares, or slightly more than half of Pabst's outstanding stock.
Pabst and G. Heileman Brewing Co. responded by filing a lawsuit in federal district court in Delaware, claiming that Kalmanovitz and his associates violated federal securities laws in the bidding war, Pabst said in a statement yesterday.
Meanwhile, in other takeover-related news yesterday:
U.S. District Judge Jackson Kiser in Lynchburg, Va., took under advisement a request by New York investor Carl Icahn for a temporary restraining order to keep Dan River Inc. from purchasing its own stock.
Icahn is trying to buy up two million shares of the textile giant's stock to take controlling interest, but Dan River is buying its own shares on the open market.
Cities Service stockholders in Dover, Del., approved a merger with Occidental Petroleum Co. to form the eighth-largest oil company in the nation during a special meeting.
Kalmanovitz's offer for Pabst comes a week after his partner in an earlier tender offer for Pabst bowed out of the battle for control of the brewery with G. Heileman Brewing Co., La Crosse.
Kalmanovitz said at the time he was furious that Irwin Jacobs of Minneapolis had reached a deal with Heileman, whose tender offer of $29 a share for all of Pabst outstanding stock is in effect.
Kalmanovitz vowed to outbid Heileman, which agreed to pay Jacobs $30 million plus legal fees for ending his bid for Pabst.
Kalmanovitz, 77, controls the Falstaff, Pearl and General brewing companies.