Sunbeam in early 1998
In the early weeks of 1998, Sunbeam’s stock price dropped from the high 40s to the high 30s, partly due to rumors that Dunlap might leave Sunbeam to take the CEO job at ailing Waste Management and partly due to wall Street concerns that Sunbeam’s fourth-quarter 1997 earnings would not meet expectations. In an interview with
4. Fortune published in January, Dunlap said, “I’m a shareholder-value creator. I believe in quantum leaps to create additional shareholder value. At this stage of a turnaround, you either have to acquire, merge, or sell.” Dunlap had already announced the hiring of two investment banking firms in October 1997 to help to explore Sunbeam’s quantum leap options. One of the consultants was urging Dunlap to make acquisitions. By February, rumors were circulating that a major deal was imminent.