Textron Inc., the Providence, R.I.-based conglomerate hit by a surprise takeover bid of almost $1.6 billion from Chicago Pacific Corp. last week, said yesterday that the two companies have agreed that Chicago Pacific will not attempt an unfriendly takeover.
Textron said that in return for the opportunity to meet face-to-face with Textron and its advisers to discuss its takeover proposal, Chicago Pacific agreed not to purchase any Textron stock in the next two years without the consent of Textron's board of directors.
Following a meeting with Chicago Pacific officials yesterday, Textron Chairman Robert P. Straetz said he remained convinced that Textron's shareholders, employes and customers will be better served if Textron remains independent.
Straetz said he will present Chicago Pacific's takeover proposal and the details of yesterday's meeting to Textron's board of directors Wednesday.
Chicago Pacific, the successor to the Chicago, Rock Island and Pacific Railroad Co., emerged from bankruptcy last June, flush with cash and aggressively looking for acquisitions.
Textron became one of the nation's first conglomerates under its founder and former chairman, Royal Little, and subsequent chief officer, William G. Miller, a former treasury secretary and Federal Reserve Board chairman. The multinational company's operations include Bell Helicopter, Speidel watchbands, Homelite power equipment and Jacobsen lawn, snow and garden equipment.
"I assure you that if we can have a meeting to explore this matter and your board of directors decides it does not wish to proceed further, we will not pursue our interest in Textron," Chicago Pacific Chairman Harvey Kapnick said in a letter to Straetz. That letter became the basis for yesterday's agreement.