NATION : Borden Defense Against Buyouts
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NEW YORK — Borden Inc., the diversified maker of Elmer’s Glue, today announced an unusual takeover defense under which its 25 top executives will resign if any one of them is fired after a buyout of the company at less than fair value.
The unusual plan, which could spread to other companies, goes into effect only if a takeover group fails to pay shareholders the “fair value” for their shares, including any potential profits from a breakup or restructuring. Borden chief executive R. J. Ventres said that without the cooperation of top managers, any takeover artist would have a hard time restructuring or selling off parts of the company.
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