Gillette Seeks Records in Fight to Bar Takeover
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BOSTON — Gillette Co., which is trying to block a takeover by investor Ronald O. Perelman, said today that it has subpoenaed records of a number of Wall Street firms in an attempt to establish alleged insider trading links to Perelman.
In the action at U.S. District Court in Boston, Gillette sought information from a number of arbitrageurs, which are investment firms that invest in takeover stocks. Included was Boesky & Co., whose chairman, Ivan F. Boesky, last week paid a $100-million penalty to settle government insider trading charges.
Also subpoenaed were Drexel Burnham Lambert; Bear, Stearns & Co.; Ernst & Co.; Gruss & Co., and Jefferies Group Inc.
“This discovery process will be wide-ranging and is expected to probe all trading and financing arrangements leading up to the tender offer for Gillette stock,” a Gillette spokesman said.
Gillette’s action came in a response to a Perelman-initiated lawsuit attempting to invalidate some of the company’s anti-takeover provisions.
Gillette alleges that Perelman, chairman of the Revlon Group, violated securities laws by advising traders and arbitrageurs of his plans to make a $65-per-share or $4.25-billion hostile takeover bid for Gillette.
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