Stock Investments

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Trump paid the Federal Trade Commission $750,000 to settle antitrust charges that the agency had brought against him. (Washington Post, April 7, 1988)

Alexander's

Alexander's

Steven Roth

Vornado Realty Trust

Golden Nugget

• July, 1987: Trump reported acquiring a 4.9% stake in Golden Nugget, a rival casino firm: “Back home: Trump also has his eye on new turf closer to home. After leaving Moscow, Trump announced that he had bought a 4.9 percent stake in Las Vegas-based Golden Nugget Inc., the casino operator. Trump has already conquered Atlantic City -- buying control of Resorts International Inc., which gave him a total of one-third of that city's casino and hotelspace. His move on Golden Nugget raises many questions. Does he actually want to take over its casino operations? Or does he simply want to make a quick stock killing by playing takeover rumors, as he did with Holiday Corp., or troll for greenmail, as he did with Bally?” (Newsweek, July 20, 1987)

Pillsbury's

• August 2, 1988: Trump announced that he had bought 400,000 shares of Pillsbury stock as a first step toward acquiring a 25% share of the publicly-traded company. “Donald J. Trump, the multimillionaire real estate developer, said he had bought 400,000 shares of the Pillsbury Co. of Minneapolis as an investment. The purchase represents a 0.4 percent stake, but Trump said he was seeking government antitrust clearance to buy nearly 25 percent of the company, the nation's fourth-largest food producer.” (Palm Beach Post, August 2, 1988)
• Donald Trump spent $15 million buying shares of Pillsbury’s through the brokerage of Bear Stearns (which would later be accused by federal officials of giving Trump improper notice of other clients’ major trades). “Mr. Trump, who has a record of buying huge blocks of stock in anticipation of major takeovers, said he had bought $15 million worth of Pillsbury stock over the last week, when nearly 2.5 million shares changed hands. It was the maximum he was able to buy under antitrust regulations. […] Mr. Trump said he had bought the Pillsbury stock through Bear, Stearns & Company, the big Wall Street investment house with which he has often worked.” (New York Times, August 2, 1988)
• Analysts speculated that Trump’s investment reflected anticipation that Pillsbury could be the target of a takeover attempt by corporate raidrers. “New York investor-developer Donald Trump announced Tuesday that he owns 0.4 percent of Pillsbury Co., but analysts say problems in the company's Burger King unit make it an unattractive takeover target. Trump's $15 million purchase-- 400,000 shares of common stock—is designed more to prop up the stock and interest prospective raiders, they said. Pillsbury's stock closed Tuesday at $38.37 per share, up $1.62 on the day. […] As for Trump's sudden interest in the $6 billion conglomerate, ‘He likes to get involved in stocks and make it publicly known because that gets speculators in. Then he gets out,’ said one analyst.” (Palm Beach Post, August 3, 1988)
• Pillsbury stock rose by 4% and trading in the company’s shares surged as Trump snatched up 400,000 shares. “Pillsbury Co. stock rose almost 4 percent Tuesday after the food company confirmed that Donald Trump, the prominent real estate developer, is seeking government permission to buy up to 24.9 percent of the company. […] In heavy trading, some 1.3 million shares of Pillsbury changed hands Tuesday as the stock climbed $1.37 a share to $38.12 on the New York Stock Exchange.´” (Chicago Tribune, August 3, 1988)
• Trump cleared a $9 million profit on his investment in Pillsbury after a British firm announced a takeover plan for Pillsbury that would pay up to $60 per share. “Trump, who intends to sail to Palm Beach in December aboard his $30 million yacht to spend part of the winter at his 118-room mansion, made at least $9 million while he slept Monday night. British conglomerate Grand Metropolitan Plc, which markets J&B Scotch Whiskey and other alcoholic beverages, announced late Monday a $5.23 billion, or $60 per share, takeover offer for Pillsbury Co. of Minneapolis, of which Trump owns 400,000 shares, a 0.4 percent stake. Under the tender offer, Trump's $15 million investment was worth $24 million by the time he awoke Tuesday morning.” (Palm Beach Post, October 5, 1988)