Chapter 8. The Rise of Milan Panić
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THE RISE OF MILAN PANIC’
One of the most significant turning points in the history of ICN was, in fact, the ouster of Milan Panić. One cannot really overstate that fact, since for over four decades Panić was at the helm of the company he started and, as such, turned it from “pocket change” into a billion-dollar corporation. As important as the 2 critical years leading up to his resignation were, one could anticipate that the fall (and eventual rise) of Milan Panić and ICN began almost a decade before. The seeds of that eventual resignation seem to have been sown as early as May 1993, with the resignation of ICN’s newest director at the time, Charles D. Miller. Allegedly, Miller resigned from the board within days of his election “because of time constraints” (Gomez, 1993).
Miller’s statement was intended to stave off speculation by disgruntled shareholders that he stepped down because of ICN’s “ongoing troubles,” even though those “troubles” were never really articulated. A group of investors led by Beverly Hills stockbroker Rafi Khan had threatened a proxy fight to unseat Panić (Gomez, 1993).
Khan mounted a coup attempt to depose Panić, with a so-called “consent solicitation” of ICN stockholders. ICN officials countered that Khan had violated securities laws by abusing his position as an underwriter of an ICN subsidiary’s stock offering to woo ICN’s institutional investors to his side. ← 129 | 130 → ICN—which took out full-page...
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