AI assistant
CURTISS WRIGHT CORP — Regulatory Filings 2001
Oct 5, 2001
30293_rns_2001-10-05_bd4faabf-d289-45b9-ae9c-91aba788f632.zip
Regulatory Filings
Open in viewerOpens in your device viewer
DEFA14A 1 d27078_defa14a.htm DEFINITIVE ADDITIONAL MATERIALS HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN" Created by HTML Ease (HTML Ease Pro 1.0 (0.9md)) Project: X:\JOBS\27078\a27078.hep Control Number: 27078 Rev Number: 1.0 Client Name: ISS Project Name: Power Point Show Firm Name: R.S. Rosenbaum ISS *********** MARKER PAGE="sheet: 1; page: 1" MARKER FORMAT-SHEET="Page Width Begin Rule"
Section 240.14a-101 Schedule 14A. Information required in proxy statement. Schedule 14A Information Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant [X] Filed by a party other than the Registrant [] Check the appropriate box: [] Preliminary Proxy Statement [] Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) [] Definitive Proxy Statement [X] Definitive Additional Materials [_] Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12 CURTISS-WRIGHT CORPORATION (Name of Registrant as Specified In Its Charter) (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box):
MARKER FORMAT-SHEET="Para Hang Arabic 10"
[X] No fee required
MARKER FORMAT-SHEET="Para Hang Arabic 10"
[_] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11
MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1"
(1) Title of each class of securities to which transaction applies:
MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1"
(2) Aggregate number of securities to which transaction applies:
MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1"
(3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1"
(4) Proposed maximum aggregate value of transaction:
MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1"
(5) Total fee paid:
MARKER FORMAT-SHEET="Para Hang Arabic 10"
[_] Fee paid previously with preliminary materials.
MARKER FORMAT-SHEET="Para Hang Arabic 10"
[_] Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1"
(1) Amount Previously Paid:
MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1"
(2) Form, Schedule or Registration Statement No.:
MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1"
(3) Filing Party:
MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1"
(4) Date Filed:
*********** MARKER PAGE="sheet: 1; page: 1" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 40; page: 40" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 39; page: 39" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 38; page: 38" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 37; page: 37" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 36; page: 36" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 35; page: 35" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 34; page: 34" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 33; page: 33" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 32; page: 32" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 31; page: 31" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 30; page: 30" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 29; page: 29" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 28; page: 28" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 27; page: 27" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 26; page: 26" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 25; page: 25" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 24; page: 24" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 23; page: 23" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 22; page: 22" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 21; page: 21" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 20; page: 20" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 19; page: 19" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 18; page: 18" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 17; page: 17" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 16; page: 16" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 15; page: 15" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 14; page: 14" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 13; page: 13" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 12; page: 12" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 11; page: 11" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 10; page: 10" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 9; page: 9" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 8; page: 8" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 7; page: 7" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 6; page: 6" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 5; page: 5" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 4; page: 4" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 3; page: 3" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 2; page: 2" MARKER FORMAT-SHEET="Page Width Begin Rule"
The Corporate Governance Proposals
MARKER FORMAT-SHEET="Para Hang Bullet 10"
Advice of Experts
MARKER FORMAT-SHEET="Para Flush 10 In 1"
Outside Counsel and Bankers Provided Advice With Respect to the Adoption of Corporate Governance Measures Already Implemented by a Significant Proportion of the Companys Peers:
MARKER FORMAT-SHEET="Para Hang Bullet 10 In 2"
Board Size
MARKER FORMAT-SHEET="Para Hang Bullet 10 In 2"
Written Consent Limitations
MARKER FORMAT-SHEET="Para Hang Bullet 10 In 2"
Special Meeting Limitations
MARKER FORMAT-SHEET="Para Hang Bullet 10 In 2"
Supermajority Voting
MARKER FORMAT-SHEET="Para Hang Bullet 10 In 2"
Classified Board of Directors
MARKER FORMAT-SHEET="Para Hang Bullet 10"
Reaction to Shareholder Concerns
MARKER FORMAT-SHEET="Para Flush 10 In 1"
Company Eliminated Classified Board of Directors to Address Shareholder Concerns
MARKER FORMAT-SHEET="Para Hang Bullet 10"
Recapitalization Increases The Governance Role of Public Shareholders
MARKER FORMAT-SHEET="Para Flush 10 In 1"
Unitrins 44% Holding Made it Unlikely that Any Person Could Gain Control of the Company Without Unitrins Consent The Elimination of Unitrin As A Shareholder Increases the Role of Public Stockholders in the Affairs of the Company
MARKER FORMAT-SHEET="Para Hang Bullet 10"
Benefits of Corporate Governance Proposals
MARKER FORMAT-SHEET="Para Flush 10 In 1"
Proposals Provide an Orderly Process For Maximizing or Enhancing Shareholder Value In Responding to Offers to Acquire Control of the Company
*********** MARKER PAGE="sheet: 2; page: 2" MARKER FORMAT-SHEET="Page Width Begin Rule"
*********** MARKER PAGE="sheet: 2; page: 2" MARKER FORMAT-SHEET="Page Width Start"
Confidential CURTISS-WRIGHT CORPORATION CONSIDERATIONS RELATING TO TRADING CHARACTERISTICS OF CURTISS-WRIGHT COMMON STOCK October 2, 2001
*********** MARKER PAGE="sheet: 2; page: 2" MARKER FORMAT-SHEET="Page Width Start"
CURTISS-WRIGHT CORPORATION Current vs. Proposed Structure
Current ownership structure as of November 1, 2000 Proposed ownership structure based on ownership as of November 1, 2000
1
*********** MARKER PAGE="sheet: 1; page: 1" MARKER FORMAT-SHEET="Page Width Start"
CURTISS-WRIGHT CORPORATION Comparable Company Liquidity Profile Curtiss-Wright's public float and trading volume are significantly less than its peers.
| (Shares and Dollars in millions) Company | Market Value of Public Float | Float as a % of Market Cap | Shares in Float | LTM Daily Average Volume of Shares | LTM Daily Average Trading % of Float | ||||
|---|---|---|---|---|---|---|---|---|---|
| Alliant Techsystems Inc. | $1,759 | 99 | % | 21 | .1 | 0 | .278 | 1 | .32% |
| Teleflex Incorporated | 1,128 | 80 | % | 31 | .2 | 0 | .130 | 0 | .42% |
| Precision Castparts Corp. | 1,087 | 100 | % | 51 | .3 | 0 | .417 | 0 | .81% |
| Roper Industries, Inc. | 1,051 | 94 | % | 29 | .1 | 0 | .100 | 0 | .35% |
| Ametek, Inc. | 741 | 93 | % | 31 | .0 | 0 | .109 | 0 | .35% |
| Barnes Group Inc. | 341 | 93 | % | 17 | .3 | 0 | .018 | 0 | .10% |
| AAR Corp. | 205 | 95 | % | 25 | .7 | 0 | .078 | 0 | .31% |
| Sequa Corporation | 186 | 38 | % | 4 | .2 | 0 | .007 | 0 | .18% |
| Triumph Group, Inc. | 175 | 48 | % | 7 | .6 | 0 | .073 | 0 | .96% |
| MOOG Inc. | 153 | 50 | % | 6 | .7 | 0 | .026 | 0 | .25% |
| Herley Industries, Inc. | 139 | 93 | % | 9 | .8 | 0 | .069 | 0 | .71% |
| Aviall, Inc. | 116 | 98 | % | 18 | .2 | 0 | .093 | 0 | .51% |
| Heico Corporation | 106 | 40 | % | 7 | .2 | 0 | .024 | 0 | .51% |
| Ducommun Incorporated | 78 | 90 | % | 8 | .7 | 0 | .008 | 0 | .09% |
| Peer Group Median | $ 195 | 93 | % | 17 | .7 | 0 | .076 | 0 | .38% |
| Curtiss-Wright | $ 230 | 55 | % | 5 | .6 | 0 | .009 | 0 | .16% |
| Change from Peer Median(%) | 17.7 % | (37.7 | %) | (68 | .6%) | (88 | .1%) | (58 | .1%) |
MARKER FORMAT-SHEET="Page Width Start"
Source: Bloomberg, IDD. Data as of 9/26/01 2
*********** MARKER PAGE="sheet: 4; page: 4" MARKER FORMAT-SHEET="Page Width Start"
CURTISS-WRIGHT CORPORATION Relative Equity Coverage Low liquidity and institutional interest is reflected in Curtiss-Wright's low equity research coverage.
| Analyst Coverage — LL Rank | Company | Curtiss- Wright | AAR | Alliant | Ametek | Aviall | Barnes | Ducommun | HEICO | Herley | MOOG | Precision CastParts | Roper | Sequa | Teleflex | Triumph |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Value of Float | $230 | $205 | $1,759 | $741 | $116 | $341 | $78 | $106 | $139 | $153 | $1,087 | $1,051 | $186 | $1,128 | $175 | |
| 2 | Merrill Lynch | Yes | Yes | Yes | Yes | |||||||||||
| 3 | Lehman Brothers | Yes | ||||||||||||||
| RU | SSB | Yes | Yes | |||||||||||||
| RU | CSFB | Yes | Yes | Yes | ||||||||||||
| NR | ABN Amro Inc. | Yes | Yes | |||||||||||||
| NR | Bear Stearns | Yes | ||||||||||||||
| NR | BofA Montgomery | Yes | ||||||||||||||
| NR | Deutsche Bank | Yes | Yes | Yes | Yes | |||||||||||
| NR | First Union | Yes | Yes | Yes | Yes | Yes | Yes | Yes | ||||||||
| NR | Goldman Sachs | Yes | Yes | Yes | ||||||||||||
| NR | ING Barings | |||||||||||||||
| NR | Janney Montgomery | Yes | Yes | Yes | Yes | |||||||||||
| NR | JP Morgan | Yes | ||||||||||||||
| NR | Lazard Freres | |||||||||||||||
| NR | Legg Mason | Yes | ||||||||||||||
| NR | Raymond James | Yes | ||||||||||||||
| NR | Robert Baird | Yes | ||||||||||||||
| NR | Robinson Humphrey | Yes | ||||||||||||||
| NR | SG Cowen | Yes | ||||||||||||||
| NR | UBS Warburg | |||||||||||||||
| NR | Wasserstein | Yes | Yes | |||||||||||||
| NR | William Blair | Yes | ||||||||||||||
| Total Sell-Side Analysts | 0 | 3 | 6 | 4 | 1 | 0 | 0 | 3 | 1 | 5 | 4 | 6 | 0 | 6 | 2 | |
| Total Buy-Side Analysts | 5 | 2 | 1 | 3 | 1 | 0 | 2 | 1 | 2 | 1 | 5 | 1 | 0 | 3 | 1 |
MARKER FORMAT-SHEET="Para Hang Arabic 10"
Note: Two buy-side analysts have initiated coverage of Curtiss-Wright following the announcement of the recapitalization-spinoff.
MARKER FORMAT-SHEET="Page Width Start"
Source: First Call; dated as of 9/26/01 RU: Runner Up NR: Not Ranked 3
*********** MARKER PAGE="sheet: 1; page: 1" MARKER FORMAT-SHEET="Page Width Start"
CURTISS-WRIGHT CORPORATION CW vs. Peer 5 Year Share Price Performance DAILY DATA 9/26/1996 THROUGH 9/26/2001 Source: IDD Information Services 4
*********** MARKER PAGE="sheet: 2; page: 2" MARKER FORMAT-SHEET="Page Width Start"
CURTISS-WRIGHT CORPORATION Carve-Spin Sample
MARKER FORMAT-SHEET="Para Flush 10 In 1"
Set forth below are a number of spin-offs that had pre-spin trading histories "untainted" by announcement of a future spin-off at the time of the initial equity carve out.
| (Dollars in millions) Parent | SpinCo. | Pre-spin Market Cap. | Pre-spin Public Float | Spin Size | Spin/ Market Cap | Date | ||
|---|---|---|---|---|---|---|---|---|
| Harcourt General | Neiman Marcus | $ 1,323 | $ 609 | $ 579 | 43 | .8%(a) | 10/22/99 | |
| IMS Health | Gartner Group | $ 2,404 | $1,230 | $ 1,174 | 46 | .8% | 7/27/99 | |
| Fingerhut Companies | Metris Companies | $ 961 | $ 163 | $ 798 | 83 | .0% | 9/25/98 | |
| Ford Motor Company | Associates First Capital | $29,217 | $5,635 | $23,582 | (b) | 80 | .7% | 4/7/98 |
| WMS Industries Inc. | Midway Games Inc. | $ 871 | $ 115 | $ 756 | 86 | .8% | 4/6/98 | |
| Enserch Corporation | EEX Corporation | $ 1,009 | $ 169 | $ 840 | 83 | .4% | 8/5/97 | |
| Trinity Industries, Inc. | Halter Marine Group Inc. | $ 277 | $ 52 | $ 225 | 81 | .3% | 3/31/97 | |
| Peter Kiewit & Sons | MFS Communications | $ 2,698 | $ 944 | $ 1,754 | 65 | .0% | 10/2/95 | |
| Sears, Roebuck and Co. | Allstate Corporation | $14,962 | $2,975 | $11,987 | 80 | .3% | 7/12/95 | |
| Freeport McMoRan Inc. | Freeport McMoRan Copper & Gold | $ 5,076 | $2,099 | $ 2,977 | 58 | .7% | 7/11/95 |
MARKER FORMAT-SHEET="Page Width Start"
Source: Bloomberg; Company public filings
MARKER FORMAT-SHEET="Para Hang Arabic 10"
(a) Does not include 5.0 million Class A shares retained by Harcourt General
MARKER FORMAT-SHEET="Para Hang Arabic 10"
(b) Does not include cash distribution of $3.2 billion in connection with the spin-off
MARKER FORMAT-SHEET="Page Width Start"
5
*********** MARKER PAGE="sheet: 1; page: 1" MARKER FORMAT-SHEET="Page Width Start"
CURTISS-WRIGHT CORPORATION Carve-Spin Sample Volume The stocks of the carve-sample exhibited significantly increased trading volume following the spin off. Source: IDD Information Services. Carve-Spin sample includes Neiman Marcus Group, Metris Companies, Associates First Capital, Midway Games, EEX Corp., Halter-Marine Group, MFS Communications, Allstate Corp., Freeport-McMoRan Copper Co., and Gartner Group. 6
*********** MARKER PAGE="sheet: 2; page: 2" MARKER FORMAT-SHEET="Page Width Start"
CURTISS-WRIGHT CORPORATION New Attention from Analysts
| Company | Pre-spin coverage | Post-spin initiations (a) | |
|---|---|---|---|
| Neiman Marcus Group | Lehman Brothers | Goldman Sachs | ABN Amro |
| CS First Boston | ING Barings | Merrill Lynch | |
| Morgan Stanley Dean Witter | Bear Stearns | ||
| Janney Montgomery | |||
| Gartner Group | Salomon Smith Barney | CS First Boston | Piper Jaffray |
| BT Alex. Brown | Morgan Stanley Dean Witter | BancBoston Robertson Stephens | |
| Hanifen Imhoff | Raymond James | Laidlaw | |
| Pacific Crest Securities | B of A Montgomery Securities | ||
| Adams Harkness | William Blair | ||
| Stifel Nicolaus | |||
| Metris Companies | Bear Stearns & Co. | Sanford C. Bernstein | First Union Capital Markets |
| Salomon Smith Barney | DLJ | ||
| SBC Warburg Dillon Read | Furman Selz | ||
| BT Alex. Brown | |||
| Associates First | DLJ | Alex. Brown & Sons | ABN Amro |
| Capital | Morgan Stanley, Dean Witter | Bear Stearns & Co. | Raymond James & Assoc. |
| Merrill Lynch | Prudential Securities | ||
| Lehman Brothers | CS First Boston | ||
| Midway Games | Furman Selz | Wedbush Morgan Sec. | Wasserstein Perella Securities |
| CIBC Oppenheimer | Glaser Capital Partners | ||
| EEX Corporation | Prudential Securities | Dean Witter Reynolds | CIBC Oppenheimer |
| Comvest Partners | Bear Stearns & Co. | Wasserstein Perella | |
| Merrill Lynch | Sanders Morris Mundy | ||
| Fahnestock/Christopher Inst. | |||
| Halter Marine Group | Dean Witter Reynolds | Merrill Lynch | Morgan Keegan & Co. |
| DLJ | Freeman Reports | ||
| Southcoast Capital Corp. | |||
| MFS Communications | Salomon Smith Barney | Morgan Stanley | Merrill Lynch |
| Deutsche Bank Securities | Gerard Klauer Mattison | Lehman Brothers | |
| Bear Stearns & Co. | |||
| Allstate Corporation | Deutsche Morgan Grenfell | Merrill Lynch | Oppenheimer & Co. |
| DLJ | Dean Witter Reynolds | J.P. Morgan & Co. | |
| Smith Barney | A.G. Edwards | ||
| CS First Boston | Prudential Securities | ||
| Lehman Brothers | |||
| Freeport-McMoRan | Smith Barney | Morgan Stanley | DLJ |
| Copper & Gold | Merrill Lynch | Prudential Securities | Deutsche Bank Securities |
| Bear Stearns & Co. | |||
| Lehman Brothers | |||
| CS First Boston |
MARKER FORMAT-SHEET="Para Hang Arabic 10"
(a) Initiations within two years following the spin-off. Source: Investext; Bloomberg.
MARKER FORMAT-SHEET="Page Width Start"
7
*********** MARKER PAGE="sheet: 3; page: 3" MARKER FORMAT-SHEET="Page Width Start"
CURTISS-WRIGHT CORPORATION Carve-Spin Sample Stock Performance Individual stock price performance of the carve-spin sample did not follow a discernable trend following the spin- off. Source: IDD Information Services. 8
*********** MARKER PAGE="sheet: 4; page: 4" MARKER FORMAT-SHEET="Page Width Start"
CURTISS-WRIGHT CORPORATION Untainted Spin Sample Cumulative Excess Return Analysis Following an initial period of dislocation that may be partially due to a shareholder shift, the untainted spin sample on average outperformed the market. Source: IDD Information Services. Note: Cumulative excess return relative to the S&P500. 9