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expertise in that case. Could you explain a little about how the membership of the AEA
would become involved with a company that's purchased? Do they become a part of an
executive committee of the company? How does that work? And do they have more stock
options than, say, another person in AEA who is not so directly linked to that particular
No. If we're looking at something that one member of the group knows either
because it's in the field in which he's spent his life--Carl Hess [CEO of AEA Investors] used to
and now Vincent Mai, who is the CEO of AEA, will meet--generally alone, or maybe in a
small group--and invite one of the members in and simply say, “We're looking at a company
in your field.” For example, they've gone into cable. I was invited over to talk with the staff
about the particular cable opportunity they were looking at.
Then at about that same time, Tom [Thomas R.] Murphy of ABC was invited into the group,
and because he had had more recent experience in that particular aspect of cable, he joined
the meeting. I know I was favorably impressed with the opportunity they had and I think
Murph was, too, and for, I guess, the better part of a year it was studied and kicked around
and finally, just recently, I think, they went in--I think we went in for a couple of hundred
million into cable. And that's a drop in the bucket.
There they leaned on Murphy and me because I owned a cable system and Murphy, in his
company, had cable. So.
We got into a telephone supply company out in the Middle West--an independent venture.
Small. Charlie [Charles L.] Brown, who had retired as chairman of AT&T, was asked if the
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