Skip to main content

Breaking News

Breaking News
Cooper expects JV plant in Vietnam to be producing truck tires by ‘early 2020'
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • American Guardian expands F&I online industry training
      Cold temperatures may impact GM's power steering assist
      Front brake linings may be reason for Lexus' brake pulsation
      Jeep Patriot, Compass may need a strut replacement
    • GM's new processing center means fast service parts to dealerships
      Dunlop Aircraft Tyres evaluating Indonesia as potential manufacturing site
      Goodyear to supply intelligent tires to delivery fleet in Europe
      Trelleborg launches major restructuring program; tire/wheel business unaffected
    • Yokohama launches 114R UWB regional-haul trailer tire
      Denray Tire converts retread to Michelin RT process in western Canada
      Dunlop Aircraft Tyres evaluating Indonesia as potential manufacturing site
      Goodyear to supply intelligent tires to delivery fleet in Europe
    • S.C. targeting illegal tire dumps via 'See it/Report it' campaign
      USTMA calls on all stakeholders to help raise scrap tire recovery rate
      NFIB holding webinar Dec. 4 on new federal overtime rule
      ETRMA backs revised EU tire labeling text
    • Denray Tire converts retread to Michelin RT process in western Canada
      Dunlop Aircraft Tyres evaluating Indonesia as potential manufacturing site
      Goodyear to supply intelligent tires to delivery fleet in Europe
      Nexen donates meals, tires to Cityzens Giving soccer program
    • Hankook to supply German touring car series' DTM Trophy ‘feeder series'
      Americas Rallycross folds after 2 seasons
      Australia's Supercars series renews tire supply deal with Goodyear/Dunlop through 2024
      BKT extends Monster Truck sponsorship deal through 2026
    • Yokohama launches 114R UWB regional-haul trailer tire
      Conti offering ag tire pressure/load calculating app
      Sentury custom Jeep highlights Landsail Rogueblazer tires
      Yokohama adds winter fitment to grader tire line
    • Cold temperatures may impact GM's power steering assist
      Front brake linings may be reason for Lexus' brake pulsation
      Jeep Patriot, Compass may need a strut replacement
      Lubricant may fix HVAC control panel noise on Ford, Lincoln models
    • Cold temperatures may impact GM's power steering assist
      Front brake linings may be reason for Lexus' brake pulsation
      Jeep Patriot, Compass may need a strut replacement
      Lubricant may fix HVAC control panel noise on Ford, Lincoln models
    • Sentury custom Jeep highlights Landsail Rogueblazer tires
      view gallery
      25 photos
      Photos: A look back at 2019 SEMA, APPEX Shows
      Detore: Assessing the glitz, glamour of SEMA
      AAPEX eyes tire service as part of Repair Shop HQ at 2020 show
    • NFIB holding webinar Dec. 4 on new federal overtime rule
      Tennessee couple named Milex franchisees of the year
      Fight the battles to win the war
      Industry challenges stubbornly persist decades later
    • Yokohama launches 114R UWB regional-haul trailer tire
      Sentury custom Jeep highlights Landsail Rogueblazer tires
      USTMA calls on all stakeholders to help raise scrap tire recovery rate
      Apollo enters Saudi Arabian market via tie-in with local distributor
  • Opinion
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
    • DIRECTORY
  • ADVERTISE
  • Classifieds
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
June 13, 1994 01:00 AM

INVESTMENT BANKER TO EXAMINE BIG O: SHAREHOLDERS BACK DISSIDENT'S PROPOSAL

Chuck Slaybaugh
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    NEW ALBANY, Ind.-Big O Tires Inc.-the nation's largest franchiser of independent tire dealerships-will retain an investment banker to investigate selling or merging the company, taking it private or turning it back into a dealer-owned cooperative. Shareholders at Big O's annual meeting June 8, adopted the resolution proposed by dissident stockholder Kenneth W. Pavia Sr. that the board of directors hire a nationally recognized investment banker to ``explore all alternatives'' for enhancing the value of the company-including those options listed earlier.

    Mr. Pavia is a Newport Beach, Calif., businessman, whose company, Balboa Investment Group, is Big O's second-largest shareholder, next to the Big O employee stock ownership program.

    Since neither Big O's management nor Mr. Pavia's group holds a majority of the company's outstanding stock, adoption of his resolution depended on the votes cast by the company's many small shareholders, and those results were announced at the meeting.

    Mr. Pavia said he introduced the proposal because of what he considers the low price of Big O stock rather than any major disagreement with management over the company's direction.

    He said he was pleased with the state of the company as outlined by management at the meeting and also with Big O's results for the two most recent months (April and May), which included increases in both sales and earnings.

    ``Although we're not happy with the company compared to its potential, we're certainly happy with the company,'' said Mr. Pavia, who believes Big O's value is not reflected in its current stock price.

    Big O stock, which sells on the over-the-counter, or NASDAQ, market, opened at $15.50 the morning after the 7 p.m. meeting.

    Stockholders at the meeting also turned down a board-supported proposal to increase the number of company shares available for stock options and other incentives under Big O's Long Term Incentive Plan.

    Asked about these setbacks, securities analyst Harry Millis of Fundamental Research Inc. in Cleveland said it appears shareholders are putting management on notice that they're unhappy with their return on investment.

    Mr. Millis said shareholders essentially are telling Big O's management: ``Hey guys, we're not happy with what you're doing with our money....Find a way to earn a realistic return on our investment or get out of the way.''

    However, Big O President and CEO Steven Cloward said: ``At no time during the meeting or in subsequent discussions...was there any indication that people aren't happy with what we're doing.

    ``In fact, some of those individuals who were supportive of the (Pavia) resolution were also very supportive of the actions and policies of the company.''

    He said a lot of people are depending on the company-its franchisees and employees, as well as its shareholders. ``Our goal,'' Mr. Cloward said, ``obviously is to come up with a program that looks out for all those entities-and I think we'll do that.''

    Only about 20 people attended the meeting, held at the company's regional offices in New Albany, across the Ohio River from Louisville, Ky. Most shareholders voted by mail beforehand. Those in attendance described the meeting as cordial.

    Mr. Pavia also said he was pleased with the professional manner in which the board and management promised to carry out his adopted resolution.

    ``They were very up-front, very gracious and determined to implement the mandates of the shareholders,'' he said.

    Big O's board of directors had opposed the measure as an unnecessary expense and potentially distractive to management.

    Nonetheless, Mr. Cloward said both the board and management accept the stockholders' mandate and intend to move ``vigorously and expeditiously'' to fulfill it.

    Neither Mr. Pavia nor Mr. Cloward said they thought the measure would have an immediate impact on Big O's day-to-day operations.

    According to Mr. Cloward, the screening of potential candidates and the ultimate hiring of an investment banking firm will be conducted by Big O's outside directors, leaving Mr. Cloward and Executive Vice President and CFO John Adams, the board's two management members, free to concentrate on day-to-day operations and focus on carrying out the company's five-year plan.

    The board, minus Messrs. Cloward and Adams, was to meet June 9 to begin implementation of the proposal, with the final selection of an investment banker to be completed by July 15.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox, free of charge.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Autoweek
    • Plastics News
    • Plastics & Rubber World
    • Plastics News Europe
    • Plastics News China
    • Urethanes Technology
    • LSR World
    RESOURCES
    • Advertise
    • Classified
    • Wholesale Tire Directory
    • Privacy Policy
    • Terms of Service
    • Media Guide
    • Ad Rates/Specs
    • Editorial Calendar
    • Clasified Rates
    • List Rental
    • Digital Edition
    • Ad Choices Ad Choices
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • News
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • Opinion
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
      • DIRECTORY
    • ADVERTISE
    • Classifieds
    • DIGITAL EDITION