Tuesday, January 17, 2012
For now at least, they won't have to worry about Allen Weintraub trying to engineer an acquisition of their respective companies. Allen Weintraub? What? You don't remember him? He caused a minor stir last year when he faxed in unsolicited offers to the boards of Kodak and AMR. He even went down to his local bank branch to seek financing for his offers. In any event, the SEC went after him and late last week the US District Court in Florida entered a final judgment against Mr. Weintraub:
On January 10, 2012, the U.S. District Court for the Southern District of Florida in Miami entered final judgments against Allen E. Weintraub and his company, AWMS Acquisitions, Inc., d/b/a Sterling Global Holdings (Sterling Global), in connection with purported tender offers they made for the common stock of Eastman Kodak Company (Kodak) and AMR Corporation (AMR), the parent company of American Airlines. The Court’s order imposes permanent injunctions against Weintraub and Sterling Global and requires them to pay $400,000 in civil money penalties.
So there you have it. If you're going to try to takeover Kodak, follow the proxy rules and know that your local Citi branch isn't going to give you a $1 billion loan to do the deal!