Document V3XO04beGO5m8965xkz0EkaXp

FILE NAME: RT Vanderbilt (RTV) DATE: 1976 June 8 DOC#: RTV200 DOCUMENT DESCRIPTION: Internal Memo RE Western Talc Divestment k-IkMt John^Mnnvilo n i. M. Harris iOlil 11, Per rone June* 0 1976 Ci'i>ifr.: Pee Distribution' Subject- W E S T C R N Trtl.C I)l V KSTM KMT Ba s e d on y o u r doe i c i on o f . 6/7 and our di . s c i i s s i an , 7 have . i d v i s e d the. f o l l o w i n g p r o s p e c t i v e b u y e r s f o u r w i l l i n p n o .to' e n t e r t a i n n s al e of the t a l c opor.it ions: 1. Kar r i sour,' am! C r o s f i o l d , l a c . - Newport b e a c h , Cn. (industrial mineral distributors) 2. I n t e r p o r r C n r p . - liny w a r d , Cn . (Hincrnln Division) 3, M.irina c R e s o u r c e s - bos A n g e l e s , C a. (mininp, c o m p a n y and b u y e r of C o a l influa) 6, H a r r i s T r u c k i n g C . - V i c t o r v i l l e , Ca. (ore hauler at Warm Springs) T o u t l i n e d to them the fdl.lowinp, bn c.kp r ound , t e r m s and conditions of sale: a . ,T.-M h a s d i s c l o s e d and w i l l p r o v i d e i n v rit in j; all the reasons for our decision t o s h u t down t h e o p e r a t i o n s ns o f 6 / 2 5 / 7 6 , i . c , , n i l of the cur rni and p r o s p e c t i v e , health problems, le flis la t iv e , enpincerine, etc. b. .T-M's l i a b i l i t y for p o t e n t i a l c l a i m s will o n 1 y ai>ply for s e r v i c e u n d e r our employ. c. Civen acceptance of the above d i s c l o s u r e s , the huver wi l l enter i nto a short-term o p o m i i n j', a p, r e i>mo n t w i l h J - M t o ' eon t i nuo t he b u s i n e s s a f t e r 6/25 under h i s fuj.1. r o s y p'o n s i b 1.1. i L y . W h i l e J - H r e t a i n s t i t l e o f t h e a s s e t s , t he buyer would be p i v e n up to 0 days to e x e r c i s e an o p t i o n to buy a l l the' a s s e t s from us w hile, n in n in e , the. b u s i n e s s in the meantime. For the i n t e r i m , J-M wo n 1d lo. a so t h e f a c i t-i t 1n s a n d m i n i n e , . ' r i p h t s to hi m f o r some n o mi n a l a mou nt . d. T h e o p t i o n p r i c e f o r all the fixed' a s s e t s in. A. m i l t , Dunn , mi n irlft t* i ft fl t S . fl fl d <3ft U 1 p " . c e n t ) ii:' $1,3 m i l l i o n in cash, c>, The pr o'n |>c c t iv c- b u y e r s have u n t i l (V/13 to i n d i c a t e b w tlioir .In lo.r.b R`t to' p r o c e e d 'on the a b o v e or iiomc c o m p a r a b l e be a is- 'with ;i foriaa] l e t t e r of I n t e n t tn follow, f , f!IvciV our nccopUrin.ee of sat 1factory buyer and p r o p o s a l , vie w o u l d 1 tinned Ia v e 1 y p r o c e e d to - d r a f t and. f i n a l i z e the I n t e r i m o p p r n M n r a p r o n - m e e t a ltd o p t i o n eontr.net to Tut e f f e c t i v e a a of f/25. Ohvl ous.l y , t here are a n u m b e r of d e t a i l s v/lii ch w o u l d have to he w o r k e d out re Inti nr, to the i n t e r i m o p e r a tine, a (tree went nnci o p t i o n , but the for op o l n p outlines- tlic b a s i c c o n c e p t of a ny dcal at this time. ` The four p r o s p e c t s c o n t a c t e d are eva lent Iru; t h e s e t erns and c o n d i t i o n s and will a d v i s e m e o n ' o r b e f o r e (> /1 5 oT tlioir posi t i o n - . B ased .on tlioir i n i tial r e a c t i o n s , T w o u l d say the p r o b a b i l i t i e s of c o m p l e t i n g a deal in the tine and under, the c o n d i t i o n s onitlinod are low. We shall, sec what d e v e l o p s .