Consolidated-Bathurst
Consolidated-Bathurst wiki now known as AbitibiBowater.
Stone Container Corporation "climbed the Fortune 500 ladder through corporate raiding. From 1982 to 1987, Stone made 11 acquisitions: Continental Group's forest products division in 1983 for $509 million; Champion's brown paper business in 1986 for $426 million; Southwest Forest Industries for $787 million in 1987; and in 1989, Stone paid $2.7 billion for Consolidated Bathust, a Canadian newsprint giant. Later that year, Stone acquired a 49 percent interest in Empaques de Carton Titan, one of Mexico's largest manufacturers of corrugated container and molded cellulose products.
"Financial giant Drexel Burnham Lambert and corporate raiders like Michael Milken aided Stone in its takeovers before running afoul of Securities & Exchange Commission (SEC) laws for their high-finance shenanigans. Stone's growth during the last decade reflected a 13-fold increase in net sales, from $411 million in 1981 to nearly $5.4 billion in 1991. But participation in the 1980's Wall Street corporate takeover frenzy carried a heavy price tag: by the end of 1992, Stone had racked up a debt of $4,105,100,000.
"Roger Stone, who, according to Forbes magazine is an "ardent admirer" of Michael Milken, is family heir to and chief executive officer of the company, and the architect of Stone's acquisitions. From 1990-1991, he received $3,591,220 in salary, benefits and compensation. He held 1,021,467 shares of the company's stock as of January 1992. Roger Stone sits on the boards of the American Paper Institute, American Appraisal Associates Inc., McDonald's Corporation (Europa Carton, a Stone subsidiary, sells clamshell boxes to McDonald's in Europe), Morton International and First National Bank of Chicago. First National is Stone's stock transfer agent and part of a bank consortium with Manufacturers Hanovers Trust, Citibank N.A. and Bankers Trust which extended a five-year $400 million credit line to Stone in March 1989. Bankers Trust is also one of the top 10 corporate holders of Stone stock." [1]
Resources and articles
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References
- ↑ Heart of Stone: Profiting on Destruction, multinationalmonitor, accessed November 9, 2009.
