Plan for Divorce

Having won their court fight to make Du Pont give up its General Motors stock, the Government's trustbusters last week proposed their plans for the divorce. They asked that Du Pont be ordered to transfer its 63 million shares (23% worth $2.5 billion) to trustees, who would then distribute 60% on a pro rata basis to Du Pont common stockholders, sell the remaining 40% held by Du Pont holding companies after first offering it to Du Pont's common stockholders. None of the stock would be given or sold to the Du Pont family-controlled Delaware Realty & Investment Co. or Christiana Securities Co., which is controlled by Delaware, and in turn controls Du Pont. To keep from driving down G.M. stock, the transfer would take place over ten years, and trustees would be allowed, with court approval, to postpone the sale if "reasonable market conditions" do not prevail.

The Government also proposed to bar interlocking Du Pont-G.M. directorates and sharing of officers, contracts requiring G.M. to buy any specific percentage of its needs from Du Pont. Du Pont has until Dec. 24 to accept or offer counterproposals.

This file is automatically generated by a robot program, so reader's discretion is required.