Cities Service cautious on new takeover bid
August 20, 1982
Los Angeles
Occidental Petroleum Corporation Thursday launched its unsolicited takeover offer for Cities Service Company, putting new pressure on Cities to find a suitable merger partner.
Cities, which earlier this week rejected Occidental's initial merger proposal , advised its shareholders not to jump too quickly at Occidental's offer to purchase 38.2 million Cities shares, representing about 49 percent of the total outstanding, at $50 each. Wall Street reacted positively to the Occidental bid, with Cities stock prices rising almost $5 Thursday morning.