Approximately 40% of Polychrome shares were owned by Rhone Poulenc of France in 1978 and they wanted to increase the holding to become the majority shareholder and possibly to replace the management for a better return on their investment. Mr. Halpern resisted the offer and looked for a "white knight" and found one in DIC. DIC's president Shigekuni Kawamura was interested in expanding DIC's business overseas and this was his first major attempt. Their offer of $25 per share was met by counter proposal by Rhone-Poulanc and eventually settled at $28. Mr. Haplern wanted DIC to invest in Polychrome as a minority share holder, but due to the escalation of bidding war the entire shares except for what Mr. Halpern held were tendered. Mr. Halpern soon started to worry that his shares may be illiquid, and demanded DIC to buy his share out. Had he not done so, he may have been able to continue his influence in Polychrome management, but he was disillusioned after a new management was brought in and his influence waned. He soon after left the company with Bob Gumbinner and Willie Boshardt to form United High Technology company in Dobbs Ferry.
For Mr. Haplern, Polychrome was his child. One can blame this management change on the financial squeeze caused by his gamble or his dream to become a film manufacturer against all the insider's opposition. But he may have the last laugh as having the film division was very important in later joint venture formation with Kodak as the JV (or rather Kodak) was able to realize an immediate return by closing Polychrome's US and European factory to fill existing Kodak factory. Had there be no JV, Polychrome would have certainly been the subject of take over by others with considerably different outcome. Despite of the many hardship of ex Polychrome employees, the remain of the Polychrome became a core business of ailing Kodak. which still maintain strong presence in the worldwide graphic arts field.
Here is the 1979 tender offer by DIC to buy Polychrome
