The Los Angeles Times from Los Angeles, California • 45

Cos Angeles (Times Saturday, March 4, 1989 CCtPart IV The Title Game Mergers and restructurings are leaving more leaders with honorifics fit for a Defender of the Faith. Group Led by Jacobs Proposes toBuyShaklee for $528 Million Times Staff Writer When Britannia dominated the globe, Victoria ruled, by the Grace of God, as queen of the United Kingdom of Great Britain and Ireland, Defender of the Faith and Empress of India. Today, some of America's corporate empire builders could give her a run for her money. Highfalutin titles have proliferated in the upper ranks of major corporations in the wake of the merger, acquisition and consolidation wave of the late 1980s, according to a recent study by Thorndike Deland Associates, a New York headhunting firm. And at the very top of the corporate ladder, the study says, some chief executives have glommed onto enough honor -ifics to satisfy even the most pretentious of potentates.

P. Morgan would stir in his grave if he had to decipher the corporate organization charts of today's major companies," said Louis A. Hoyda, an executive search consultant at Thorndike Deland. The study of executive titles at 333 of the Fortune 500 firms found that from 1984 to 1988, the number of "vice chairmen" grew 15. There were 10 more "chairmen" with extra titles even though the number of chairmen overall shrank by 18.

The top titlist? R. Eugene Cartledge chairman of the board, chairman of the executive committee, president and chief menting with new forms nominally, at least of shared leadership. "There are more twosomes or threesomes or sometimes foursomes who are forming 'the office of the chairman' or 'the office of the president' or 'the office of the CEO, noted Donald C. Hambrick, director of the Executive Leadership Research Center at Columbia University's Graduate School of Business in New York. Tag-team leadership two presidents or two chairmen has occasionally come into vogue, too, Hambrick said.

Chrysler experiment with dual presidents one in charge of product and marketing, the other in charge of operationsis in its 13th month. Already it has outlasted Cigna attempt to operate with co-chief executives after the company was created in the merger of Connecticut General and INA in 1982. That lasted a year. "It's an inherently unstable situation," Hambrick said. "A company needs a CEO, a figurehead.

Even though we don't want our executives to be dominating, we still like them to tower." Towering, however, can be a precarious thing. Until last fall, James F. McDonald was in the running for most-titled American executive. He was chairman, chief executive, president, and chief operating officer of Gould the diversified electronics company based in Rolling Meadows, 111. Then Nippon Mining swooped in and bought Gould.

The new chairman gets his mail in Tokyo. And McDonald? He's just another "consultant to management." executive of Union Camp a paper products manufacturer based in Wayne, N.J. becomes simply "vice chairman," without a seat on the board at all. Also proliferating are chairmanships within units of a company, Hoyda said. "What does the chairman of a unit have to do?" he asked.

"There's no board." Some of the title inflation makes good business sense, according to Edward E. Lawler, director of the Center for Effective Organizations at USC. As divisions of a company increasingly are looked upon as autonomous businesses or profit centers, it's not unreasonable for them to be headed by "presidents," Lawler said. He doesn't rule out a more banal motivation, however the "my title is bigger than your title" syndrome, it might be called. "There's an almost insatiable desire on the part of senior management to progress, both in status and in wealth," Lawler said.

"Part of what's going on in the title world is roughly what's gone on in the compensation world and that's 'more for Other experts in corporate organiza tion say companies have been experi ently because it was not given an exclusive chance to formulate its bid. One member of DEG's unsecured creditors' committee noted that because the Beverly Hills company has sought the protection of bankruptcy court, the details of any bid will eventually become public and exposed to the possibility of a higher bid. The executive, who asked not to be identified, predicted that three or four months might elapse "before the final scenario is played out." Before filing for bankruptcy protection, DEG sold most of the foreign television, video and cable rights to its film library to Parafrance, a French concern, to pay off nearly $57 million in revolving bank loans. The company's remaining assets include a studio in North Carolina and certain film rights and accounts receivable. a x.

rJ 'II" Carolco Makes Offer to Buy De Laurentiis Several Earlier Bidders for Ailing Movie Company Have Faded Away By LINDA WILLIAMS, Times Staff Writer A group led by Minneapolis investor Irwin L. Jacobs announced Friday a long-anticipated proposal to buy Shaklee a marketer of foods, vitamins and personal care products, in a deal valuing the company at $528 million. Jacobs has been steadily buying shares in San Francisco -based Shaklee, and his investment group already holds close to 15 of the company's 13.2 million outstanding shares. In response, Shaklee has taken steps to prevent a possible takeover attempt. In February, Shaklee sold a 78 stake in its profitable Japanese subsidiary to Tokyo's Yananouchi Pharmaceutical for $350 million.

On Thursday, it declared a $20-a-share special dividend for stockholders. But Jacobs, whose tentative offer for Shaklee amounts to $40 a share, told the Dow Jones News Service on Friday that "we didn't think too much of the dividend and the market clearly didn't either. We think Shaklee Corp. is worth more than the value the market is putting on it." The buyout offer was revealed after the close of trading on the New York Stock Exchange on Friday. In composite trading, Shaklee closed at $34 a share, down 50 cents.

The stock rose $4 a share after Shaklee sold the stake in its Japanese unit, but the shares have not risen above $36.25 in the last year. Colorful Past Dan Williams, an analyst with Sutro Co. in San Francisco, told United Press International that the offer was slightly higher than he would have expected for Shaklee. "I'm a little hard pressed to explain what is the attraction of the company," Williams said. Shaklee, which sells its products through a international network of 10,000 independent distributors, has had a colorful past.

It was founded in 1956 by the late Forrest C. Shaklee a chiropractor, and his two sons, Raleigh L. and Forrest Jr. From the beginning, the elder Shaklee pitched the company's products as in "harmony with nature," a theme the company continues. But over the years, the elder Shaklee was accused of making Please see SHAKLEE, Page 4 Synbiotics Reports Loss for Third Quarter By GREG JOHNSON, Times Staff Writer SAN DIEGO Synbiotics, which in January reported the loss of a licensing agreement with a major pharmaceutical company, on Friday reported a net loss for the third quarter ended Dec.

31. Synbiotics reported a $41,000 net profit during the previous third quarter. Revenue for the quarter fell to $887,000 from $1.6 million. Synbiotics reported a net loss for the nine-DlFro month period, contrasted with COUNTY a $328,000 net profit during the corresponding period the year before. Revenue for the nine -month period rose by 10 to $5.5 million, up from $5 million.

"This has been a difficult quarter for the company," acknowledged Synbiotics President and Chief Executive Edward T. Maggio. The loss followed the Jan. 30 announcement that SmithKline Diagnostics had canceled a contract with Synbiotics to develop and license diagnostic products for the physician's office. The contract was expected to bolster Synbiotics' revenue' by as much as $30 million during a five-year period.

Sales Costs Up The quarterly loss was driven largely by sales costs that rose by 121, to $237,000. Product sales to cover those costs failed to materialize after SmithKline Diagnostics canceled the contract, Synbiotics Vice President Martin Nash said Friday. Synbiotics' loss also was attributed to research-and-development costs that rose 178, to $545,000, for the fourth quarter and 134, to $1.2 million, for the nine months ended Dec. 31. Those increased costs were driven by Please see COMPANY, Page 4 By JIM SCHACHTER, Cartledge doesn't flaunt his titular splendor.

"It's unusual, and he doesn't like it," said Alexander Calder III, a Union Camp spokesman. "He doesn't want his epaulets too damn big." With so many titles to choose from, what do Union Camp employees call their leader? "Gene," Calder said. The Thorndike Deland study discovered a big increase in what Hoyda calls "made-to-order" titles. Typically the product of mergers or acquisitions, these are the titles that salve the egos of executives who lose out to their counterparts in the other half of the merger but whom the new company wants to keep on board, Hoyda explained. Thus, he said, an extra controller becomes "vice president, operations analysis and planning." Or the executive vice president who fails in the battle to become vice chairman of the board tion.

Los Angeles-based Carolco said it expects the new company's shares to be traded on the American Stock Exchange. In a prepared statement, Carolco said "acceptance of the offer by DEG is expected." But neither DEG Chairman and Chief Executive Stephen R. Greenwald nor the company's outside financial adviser, Joel H. Reader of Oppenheimer could be reached for comment. Since October, at least five potential buyers of DEG have been publicly identified, but each has faded away.

Just last week, Ventura Entertainment Group withdrew its $22-million offer "for overall business considerations," said Ventura Chairman Harvey Bibicoff, with "no reflection on DEG." Cannon withdrew from the negotiations in a huff, according to two sources, appar Giancarlo Parretti all this would indicate he is either "the biggest crook in the universe" or has nothing to hide. Although the interview was largely in English, that remark was one of several made in Italian and translated by an associate. Please see PARRETTI, Page 4 Revolutionary Loan Lenders may introduce a new kind of home mortgage that offers low initial payments. PAGE 3 1 IW1IH1 L.A. Station to Dump SelecTV, Dimming Prospects for Pioneer By WILLIAM K.

KNOEDELSEDER Times Staff Writer By KATHRYN HARRIS, Times Staff Writer Carolco Pictures best known as the producer of the "Rambo" films, on Friday said it has made an offer to acquire De Laurentiis Entertainment Group, a motion picture company that sought the protection of federal bankruptcy court last August. The terms of the bid weren't disclosed, but Carolco President and Chief Executive Peter M. Hoffman said the offer is "competitive" with the $22-million bid that had been anticipated from a rival, Cannon Group, until it abruptly withdrew from talks earlier this week. "It would be premature to discuss any of the terms because there is no binding agreement," Hoffman said in a telephone interview. Nevertheless, he said the company is prepared to pay more than half of its bid in cash, in addition to securities in a new company formed to make the acquisi Parretti Mum on Allegations of Laundering By AL DELUGACH, Times Staff Writer Hollywood's newest financial wheeler-dealer, Italian Giancarlo Parretti, declined to comment Friday on a Business Week report of allegations that his "network of private foreign holding companies hide sophisticated money-laundering operations." However, the article said Parretti and his partner, Florio Fiorini, have denied the accusation, which was attributed to unnamed former partners of the two men.

Last April, the pair took control of Cannon Group, a publicly traded Los Angeles film producer. In an interview Friday at Cannon's headquarters, Parretti said he will immediately put the matter into the hands of his lawyers. The press and public like to make a mystery of his wealth, he said with a shrug. He said a top U.S. accounting firm audits even his European companies and he does business with "first-class banks." Laughing heartily, Parretti added that New Message Investors who bought Wickes sold nine businesses and split the remaining firm into 3 units.

PAGE 2 Sylvester Stallone as Rambo night after that." A spokesman for KWHY confirmed late Friday that the station had been paid and SelecTV "would be on through the weekend." KWHY will continue to broadcast the Business Channel from 6 a.m. to 3 p.m. on weekdays, followed by Spanish-language programming from Univisa Inc. SelecTV President Thomas C. Hunt denied that the loss of the KWHY contract would mean the end of the service.

According to Hunt, SelecTV is merely in a period of transition, converting from broadcast delivery to microwave distribution what is known in the industry as a multichannel, multipoint distribution service, or MMDS. The change will require the installation of new equipment in subscriber homes, he said, and will take several months. The equipment will be provided free to SelecTV by the manufacturer in exchange for a percentage of subscriber fees. "We've informed our subscribers that we are offering a new service that we're calling SuperselecTV," Hunt said. "We are Please see STATION, Page 2 Markets DOW BOND DOLLAR GOLD 30 INOUSTHIAIS U.S.

IN YEN LONDON 2,274.29 9.12 128.12 $386.25 8.58 Unch. 0.05 2.50 SelecTV has lost its contract with the channel that broadcasts the pioneering subscription TV service to 20,000 homes in Los Angeles. KWHY-TV Channel 22 has decided to broadcast Spanish-language programming April 1 instead of the movies and sports offered by SelecTV. And while SelecTV executives are putting the best face on KWHY's move, some experts predict that it could spell the demise of the long-struggling service. "It's probably the end of the road for them, certainly at Channel 22," said KWHY President Burt Harris Jr.

"Right now they owe us a lot of money, but we're keeping them on in return for a minimum daily payment because subscribers are still expecting a service." "SelecTV will be on tonight," Harris said Friday, adding "but only if they pay me by 5 o'clock today." SelecTV leases air time from KWHY. However, a spokesman for SelecTV countered that "we're definitely going to be on tonight and tomorrow night and the Proxy Fight MAI Basic Four launched a bid to replace Prime's board at a shareholders meeting in May. npAGEl 4 Index NYSE 6 Commodities ..5 Amex ...5 Mutual Funds 8 OTC 9 Earnings 8 Bonds 10 T-Bills 5 Options 7 Currency 8.