O'CONNOR & ASSOC. v. DEAN WITTER REYNOLDS, INC.

No. 81 Civ. 1354(MEL).

529 F.Supp. 1179 (1981)

O'CONNOR & ASSOCIATES, an Illinois Limited Partnership, individually and on behalf of all other similarly situated, Plaintiffs, v. DEAN WITTER REYNOLDS, INC., a Delaware corporation, individually, and as agent for certain of its customers and registered representatives, Dean Callander, Bruce Seligman, Fred Collins, Mike Kemp, Larry Hayden, Robert Gilbert, Ann Marie Bero, Stephen Bradley, David Kupht, John Damsen, John Hanson, individually, and as customers and registered representatives of Dean Witter Reynolds Inc.; William Miller, Glen and Pamela Jackson, Ralph Raulli, Daniel Sharp, Cynthia Smith, Nolan Brunson, Jr., Jane Dunn, Wendy Craven, Dennis Martino, Quaker Hill Development Corporation, a California corporation, and Thomas A. Reed, individually, and as customers of Dean Witter Reynolds Inc.; certain unnamed customers of Dean Witter Reynolds Inc.; A. G. Becker Incorporated, a Delaware corporation, William E. Goldberg, John Pierce, Robert Rafford, individually, and as customers and registered representatives of A. G. Becker Incorporated; Patrick N. Macintyre, individually and as a customer of A. G. Becker Incorporated; Amax Inc., a New York corporation; and Standard Oil Co. of California, a Delaware corporation, Defendants.

United States District Court, S. D. New York.

December 30, 1981.


Attorney(s) appearing for the Case

Coffield, Ungaretti, Harris & Slavin, Chicago, Ill., (Michael W. Coffield and Robin J. Omahana, Chicago, Ill., of counsel), Kimmelman, Sexter & Sobel, New York City, (Mortin L. Kimmelman and Arthur H. Sobel, New York City, of counsel), for plaintiffs.

Jackson & Nash, New York City, (Lawrence P. McGauley, Christopher S. Rooney, Jeffrey G. Steinberg, New York City, of counsel), for Dean Witter Reynolds, Inc., Ann Marie Bero, Stephen Bradley, Dean Callander, Fred Collins, John Damsen, Robert Gilbert, John Hanson, Larry Hayden, Mike Kemp, David Kupat, Ralph Raulli and Bruce Seligman.

Brown, Wood, Ivey, Mitchell & Petty, New York City, (Henry F. Minnerop, Joseph G. Riemer, III, Kent E. Daiber, New York City, of counsel), for A. G. Becker Incorporation, John Pierce and Robert Rafford.

Lukens, St. Peter & Cooper, San Francisco, Cal., (William M. Lukens, Martha Rosenberg, San Francisco, Cal., of counsel), for William Goldberg.

Sullivan & Cromwell, New York City, (Richard Urowsky, New York City, of counsel), for Amax, Inc.

J. Anthony Hale, Houston, Tex., Burns, Jackson, Summit, Rovins & Spitzer, New York City (Stuart A. Summit, Ronald L. Mayers, New York City, of counsel), for Cynthia Smith.


LASKER, District Judge.

On March 5, 1981, the board of directors of Amax, Inc. ("Amax") announced publicly that Standard Oil of California, Inc. ("Socal") had made a proposal, conditioned on approval of the Amax board, to acquire the equity interest in Amax not already owned by Socal at a price of approximately $78.50 a share, nearly double the then-current market price of $38.50 per share. The total value of Socal's offer was approximately four billion dollars, making...

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