Young And The Restless Discussion Group

Topic: Can anyone explain to me what's going on with Chancellor Industries & the stock

BUT... wasn't Chancellor Industries already public? Didn't we just go through Jack and Gloria scheming to get 51% of the shares when Katherine was starting to lose her memory?

This doesn't make sense to me. If there's a logical explanation, I'd love to hear it!

I'm thinking it's a writer error (I know, who'd have thought!).  Jabot has been a family business.  Shares aren't usually issued until a company goes public.  Their use of the word "shares" regarding the 5% means either 1) it was public, therefore could not be under the Chancellor name as it would be publically owned, or 2) they meant "controllng interest" figuring the regular-Joe-Soap watcher wouldn't know the difference - or care.  Katherine may have owned 51-56% of Jabot and was willing to sell 5% of what she owned, but they would not technically be "shares" as the term is used in trading.

When a family owns a company, they don't usually have "shares".  When they go public, they issues shares, and that does not stop the family from purchasing as many as they can, or as are financially advantageous.  The object of a public offering is to raise money - usually for the owners of the company going public.  Sometimes they only have to sell 49% to raise the money they want, and while they now have to participate in a Board operating the company, they still have controlling interest.

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The Abbotts took Jabot public in 1989. At that time, all of The Abbotts' holdings (including Jill's) were reduced by half. That's when Victor used operatives to buy up the publically-offered shares so that he could gain the controlling stake. This action set off much of the corproate stories for the next 20 years - with Jack continually moaning about how he'd lost control of his father's company.

Thanks Roxi. It's a good thing I'm not in big business. I don't have a head for how this stuff all works. SQ

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Posted by: Ulie
Date posted: Tue Nov 10 17:58:43 2009
Message:
The stock scheme going on with Jack and Gloria, etc. when Kay was having her memory problems was to get 5% of Kay's 51% of Jabot.  Recall, Kay bought the controlling interest of Jabot and put it under the Chancellor umbrella.  If Kay gave up 5% of Jabot, then she (Chancellor Industries) wouldn't have controlling interest in Jabot.   I believe Jack wanted it, so that The Abbotts could collectively control the majority interest.  Gloria wanted it so that she could play power broker with 5%.   Anyway, that was my take.

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Thanks. That makes some sense. Not completely though. I can't think of a real example to compare to, for when a private company gets control of a public company. That seems really weird to me. And also, wouldn't it be completely unrealistic for a company the size of Chancellor Industries to still be private? Could be showing my business ignorance here, but does that ever happen in real life? SQ

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