MOTORS RISE ON RUMORS.
|Topics: Chevrolet, Studebaker, Maxwell
The New York Times
May 7, 1916
False Report Booms Chevrolet, Studebaker, and Maxwell.
Chevrolet, Studebaker, and Maxwell motor shares advanced enthusiastically in the early trading on the Stock Exchange yesterday. There was a report from Detroit which imparted most of the bullish zest. According to it, there was in process of formation a huge motor merger embracing the Chevrolet, General Motors, Maxwell, Continental, and Studebaker Companies, under the leadership of W. C. Durant, Pierre S. Du Pont, and Louis G. Kaufman, with a capitalization of several hundreds of millions of dollars.
The Detroit report was denied emphatically by Mr. Kaufman, who is President of the Chatham and Phenix National Bank, and is closely associated with Messrs. Durant and du Pont in their motor enterprises.
"You can say on behalf of the Chevrolet Company," he declared, "that the company has no intention of buying into Studebaker, Maxwell, Continental, or any other concern. Its managers propose to develop the Chevrolet along its own lines, and have no desire to acquire other companies."
The merger report was also denied by Directors of the Maxwell Motors Company and the Studebaker Corporation, and by Mr. Durant.
Following the dissolution of the Chevrolet Motors syndicate, Mr. Durant, syndicate manager, announced that all restrictions on the sale of the Chevrolet Motors stock received by General Motors stockholders in exchange for their shares had been removed. During the life of the syndicate all such stockholders lost the right to sell their Chevrolet stock. Mr. Durant also made an offer to these stockholders to pay $2 a share for an option, good until Aug. 1 next, on their holdings at 210.
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