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That was seen as further evidence of the frigid relations between Bendix's Agee and Hennessy. The Allied chief has vowed that Agee "will have no line duties at Allied," even though he is the company's titular president. McDonald's departure will have the intended effect of keeping Agee tied down at Bendix in Michigan, inhibiting him from becoming involved in Allied affairs back East. Hennessy has also promised that he will study, presumably with a critical eye, the "golden parachute" package fashioned by Bendix directors for Agee during the merger battle. Under its terms, Agee would receive his current $825,000 annual salary plus bonuses for up to six years should he be forced to resign.
Agee has thus paid the ultimate price for the blundered Martin Marietta merger: he has lost Bendix. Yet he was keeping up a brave front. Said he last week: "I firmly believe that where mergers are intelligently done, they create jobs and wealth. And this one was." He pledged to stay on at Allied "as long as I'm needed."
That would be anywhere from six to 18 months, judging from other white knight mergers. Top managers of acquired companies rarely stay past the time it takes for the acquiring company to learn the ropes and bring in its own people. It took only 16 months, for example, for John Duncan, 62, to pull the ripcord on his $1 million golden parachute after the company he headed, St. Joe Minerals Corp., was bought 18 months ago by Fluor Corp. to escape a hostile bid by Seagram Co. Ltd. of Canada.
Similarly, Allegheny International played rescuer to Sunbeam in late 1981, saving it from takeover by IC Industries, Inc. Soon, however, Sunbeam Chief Robert Gwinn and 160 of his colleagues found themselves out of jobs. Complained one executive: "They went at us with a meat ax. If Allegheny is a white knight, God save us from white knights." But Allegheny has complaints too. Chairman Robert Buckley said he discovered in Sunbeam "problems under the surface that were greater than they seemed."
Not all the jousting is in vain. When Detroit's Stroh Brewery Co. bought much larger Schlitz eight months ago, it looked to Wall Street as if two sick chickens were being gathered in a single coop. But, says an industry watcher, "they've done a little better than expected. The jury is still out on Stroh-Schlitz."
For now, it seems, the mergermakers are in a mood to back off from deals born in hostility. This year's corporate marriages will not be as big or as exciting. They will also be between less disparate companies in similar industries. That could lead to friendlier arrangements and so reduce the need for lances, maces and battle-axes. Firm handshakes between reasonable people could make the white knight obsolete.
— By John S. DeMott. Reported by Frederick Ungeheuer/New York and Barbara B. Dolan/Detroit