Corporations: Tender Invitation

The offer was not only financially intriguing—$15 million for 18% of a company that has not paid a dividend in a decade-but it came wrapped in mystery. On behalf of an unnamed investor, the venerable Manhattan investment-banking firms of Lehman Bros, and Lazard Freres announced that they would pay $30 a share, $3.25 above the market price, for up to 500,000 shares of Studebaker Corp.

So, last week, began the public maneuvers in an attempt to acquire a controlling interest in South Bend's long-troubled auto and appliance company. Being used was a...