Did Ken Langone Want to Sell Handy Dan?
David Rosenthal says Ken Langone had no intention of selling his close to 19% stake in Handy Dan. He was in it with Bernie Marcus and Arthur Blank, thought it was a great business, and treated loyalty as his whole way of working. He never sells.
Sandy Sigalov wanted him gone and sent his lieutenant, Jeffrey Chanin, to buy the stake back. The stock was selling for about $8 a share, and Chanin offered $10. Langone named $12. Chanin said no, and Langone went to the men's room. Barely two minutes later Chanin followed him in and agreed to $12. Langone told him the $12 offer was off the table, because Chanin had already turned it down in the office. The men's room price was $14. Chanin left in such a blind rage that he almost banged his head on the door. About a week later Sigalov called and said they would pay $14. Langone said the $14 offer was off the table as well. He had reconsidered and did not want to sell. Sigalov hung up madder than hell.
Bernie Marcus called and asked Langone to sell anyway. Sigalov was breathing down his neck, the situation was making his life difficult, and the stake had become his biggest headache even while the business was doing great. Langone answered he was the only thing protecting Marcus from Sigalov.
