L.F. ROTHSCHILD REJECTS A TAKEOVER BID BY FELT
By James Sterngold
The investment banking firm L. F. Rothschild, Unterberg, Towbin announced yesterday that it had rejected a takeover bid made last week by General Felt Industries, the company used as an investment vehicle by Marshall S. Cogan and Stephen C. Swid. Despite the rejection, which appears to end the possibility of a takeover, the offer was a catalyst for two significant moves at L. F. Rothschild: a management change, and efforts expected soon to raise fresh capital, perhaps through a public offering of stock. The latter decision is believed to have been an important factor in the decision by the investment bank's largest shareholder, J. Rothschild Holdings of London, with 50 percent, to vote against the General Felt offer. J. Rothschild, an investment company, was said by a source close to the company to have grown concerned last year over the volatility of L.F. Rothschild's earnings, and had wanted some ready means to change its stake if necessary. Bid to Remain Independent ''The management committee decided unanimously that it wanted to remain an independent firm. That was the guts of our decision,'' said Francois J. P. Mayer, a senior managing director at L. F. Rothschild, whose strength is in underwriting and dealing in the shares of emerging high technology companies.