Rising Star on Takeover Stage Has Gold Cast to It

Like Polaroid, the name of the company that it wants to buy for about $2.3 billion, Shamrock Holdings has a name that is magic in American business--Disney.

The Burbank investment firm is owned by the family of Roy E. Disney, 58, the shy, low-profile nephew of Walt Disney and son of Roy O. Disney, who was the financial whiz behind the studio.

Named for one of Roy E. Disney’s racing yachts, Shamrock in the past three years has emerged as a rising star among corporate raiders, in large part reflecting the investment philosophy of buying undervalued companies that is held by its president, Stanley P. Gold.

Gold, 45, was Roy Disney’s longtime lawyer before joining him full time at Shamrock in 1985. Gold has forged ties to Drexel Burnham Lambert and backed the unsuccessful effort by Texas oilman T. Boone Pickens Jr. to buy Unocal in 1985. Drexel is not listed as adviser in the bid for Polaroid, and a Shamrock spokesman would not comment on why.

Gold speaks rapidly, in nervous bursts. During an interview two years ago, he chewed cigars without smoking them. He is said to own more than 25 pairs of fashion eyeglasses. And his 190-pound weight fluctuates so much that friends say he seems to be constantly on a diet.

A 1960 graduate of Van Nuys High School, Gold earned a bachelor’s degree in political science from UCLA and a law degree from USC, eventually becoming managing partner in the law firm of Gang, Tyre, & Brown in Hollywood.

Tough and Abrasive

In 1974, he met Roy Disney, representing him in an Oregon real estate deal. Gold began devoting an increasingly large chunk of his time to Disney’s business affairs before finally going to work for him full time.

Disney’s faith in Gold is said to be unwavering.

“My understanding of the way they work is Stanley and his people cook up these ideas and seek out investment opportunities. Stanley and Roy are in touch all the time and discuss them. But usually, if Stanley thinks it’s a good idea, Roy sort of goes along with it,” said author John Taylor, who detailed the role of Disney and Gold in ousting Walt Disney Co.’s management in 1984 in his book “Storming the Magic Kingdom.”

Gold’s style is one of a tough, abrasive man who hates to lose. Said one stock trader with Shamrock: “He is tough, tough, tough.”

During the battle for control of Disney in 1984, then Chairman Raymond Watson predicted that directors would vote 10-3 to name Dennis Stanfill, the former 20th Century Fox chairman, as chief executive.

Gold was lobbying for Michael D. Eisner as chairman and chief executive, with Frank Wells as president. According to Taylor, after Gold won he ordered vanity license plates for his Mercedes-Benz convertible with “10-3” on them to commemorate his victory.

Victories and Losses

Shamrock’s biggest victory to date was Central Soya, a Ft. Wayne, Ind., soybean processor that it bought for $350 million and $75 million in assumed debt. Last year, Shamrock sold it to Ferruzzi Group of Italy, reaping a $125-million profit for itself and $45-million profit for its partners.

Not all of its deals have worked out. The company tried unsuccessfully to buy by Wherehouse Entertainment, a Torrance-based chain of record and video stores that was sold to the New York investment group Adler & Shaykin for about $118 million. In April, however, Shamrock agreed to buy the 54-store Music Plus chain of music and video outlets for an undisclosed amount.

Shamrock also owns three television stations, 14 radio stations and 22% of the oil services firm Enterra Corp. of Houston.