In a Journally Speaking column last year, one of my colleagues made a plea for good quotes from oil companies (OGJ, Nov. 1, 1993, P. 19).
He railed against public relations puffery and corporate hemming and hawing that's been blessed by counsel.
There his been little hemming and hawing from two U.K. companies engaged in a takeover battle. When Enterprise Oil plc started a bid for Lasmo plc late last month, hard hitting quotes began to flow (OGJ, May 9, p. 31).
"The Enterprise offer provides Lasmo's shareholders with an opportunity to exchange a bleak and uncertain future for an investment in what will be a world class exploration and production company," said Graham Hearne, chairman and chief executive of Enterprise, as he announced the bid.
"Lasmo has the strength to exploit its own assets," snapped back Joe Darby, Lasmo chief executive. "It has no need of Enterprise, which by contrast is facing difficulties in finding areas of future growth. This contrived paper offer from Enterprise would dilute the significant growth potential for Lasmo shareholders."
OPPORTUNITIES
"The combined business will have the strength to invest more widely-and certainly more wisely-than Lasmo has done in recent years," Hearne said a few days later. "The plain fact is that, unlike Enterprise, Lasmo lacks the financial or management resources to give shareholders confidence in its ability to provide long term value."
Lasmo Chairman Rudolph Agnew replied, "As you would expect, Enterprise's offer document misses the point. Enterprise, not Lasmo, is short of future opportunities. Mr. Hearne admits that Enterprise is at the tail end of its development program whilst Lasmo, by contrast, has an attractive portfolio of developments and exploration and appraisal opportunities.
"This offer smacks of desperation and the pursuit of size for its own sake - a critically flawed policy.
MOMENTUM
By the middle of May, Enterprise was borrowing quotes from the press to keep the momentum going. This one from London's Daily Telegraph was printed in a document sent to Lasmo shareholders: "Lasmo has shed assets like a stripper in a nightclub, but the final effect is a good deal less attractive."
Lasmo's Agnew resorted to repackaging of earlier statements: "Enterprise needs Lasmo's new developments to stem the forecast decline in its own production profile and provide earnings to help meet its existing shareholder's dividend expectations."
U.K. regulations state the takeover bid to succeed or fail in 60 days. The companies started their press campaigns at a sprint, but the takeover process is a marathon. Maybe they are saving a few more juicy talking points for the final dash.
While these quotes could not be described as PR puffery they do represent maneuvering for position through PR. PR or otherwise, then, do show how conflict, at least while fresh in the mind, can sharpen communication skills.
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