The status of Bendix Corp. under the proposed peace agreement in its corporate battle with Martin Marietta Corp. was described incorrectly yesterday. Under the agreement, Allied Corp. will own all of Bendix and 39 percent of Martin Marietta.
Martin Marietta Corp. said yesterday that it will issue 1.5 million shares of convertible, exchangeable preferred stock to raise funds to help offset the $900 million in debt it occurred fighting off a takeover attempt by Bendix Corp. late this summer.
The company expects the offering to bring in $75 million.
The company filed a registration statement with the Securities and Exchange Commission for the offering, which will go to market some time in the next couple of weeks.
The shares would be convertible at any time into shares of the company's common stock, at a ratio still to be determined. In addition, the company will be able to exchange a convertible subordinated debenture for each of the shares on any dividend payment date after Dec. 15, 1985. The interest on the debentures would be equivalent to the dividend rate.
Analysts have expected Marietta, a Bethesda-based aerospace conglomerate -- to issue stock to raise funds in the wake of the Bendix battle, which left the company with a large amount of debt and a drastically reduced amount of stock outstanding.
The Bendix-Marietta battle, in which the companies bought majority shares of each other, was settled in late September. In the peace agreement, which is expected to be completed by Dec. 21, Allied Corp. will take over Bendix and retain 39 percent of Martin Marietta.
The preferred stock offering is the second action in two days taken by Martin Marietta to clean up its balance sheet. On Thursday, it announced the closing of a cement plant in Maine and the consequent write-off of $13 million.