BOEING/MCDONNELL - DOUGLAS
The $12 billion merger between Seattle-based Boeing and St. Louis-based McDonnell-Douglas created the largest airplane manufacturer in the world with 200,000 employees and $48 billion in revenue. It was to be completed in four days to take advantage of a Congressional recess due to significant employment and anti-trust issues and the potential for a leak. FTC and European Union approval was mandatory despite assured opposition from Airbus Industries, Boeing’s major competitor. A carefully constructed announcement at the National Press Club in Washington resulted in blanket network and cable news coverage, a conference call with over 640 professional investors and 38 front page stories in major newspapers, plus substantial coverage in hundreds more. Boeing’s stock rose $5.75 and McDonnell-Douglas a substantial $12. Shareholders of both companies, the FTC and the E Ul approved the merger in 8 months.