<PAGE>
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
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14a-6(e)(2))
/ / Definitive Proxy Statement
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240.14a-12
TELEDYNE, INC.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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<PAGE>
ALLEGHENY TELEDYNE
STRATEGIC BUSINESS COMBINATION
CREATING A WORLD LEADER IN
SPECIALTY METALS
PARTNERING WITH STRONG DIVERSIFIED
TECHNOLOGY BUSINESSES
<PAGE>
AGENDA
- Transaction Highlights
- Overview of Operations
- Benefits of Merger
<PAGE>
TRANSACTION HIGHLIGHTS
Agreement: Definitive Agreement signed 4/1/96
Structure: Tax-free exchange of stock
Accounting: Pooling of Interests
Exchange Ratio: 1 Share of Allegheny Teledyne for Each Share of
Allegheny Ludlum
1.925 Shares of Allegheny Teledyne for Each Share of
Teledyne
Dividends: $0.64 Per Share Annual Rate
Shares: 175M Approx. Outstanding Shares
Approvals: Shareholder and Regulatory
Expected Closing: Mid 1996
<PAGE>
MERGER CREATES SIGNIFICANT SHAREHOLDER VALUE
- - Creates a World Leader in Specialty Metals
- Attractive Complementary Markets and Technical Expertise
- Significant Business Synergies Created by Combination
- $85 Million in Pretax Earnings and Cash Flow Savings
Identified
- Operating, Pension and Financing Related
- - Strong Diversified Technology Businesses
- Excellent Market Positions in Aviation and Electronics,
Industrial and Consumer Products
- Balances Cyclical Businesses
- Technology Cross-Fertilization with Specialty Metals
<PAGE>
MERGER CREATES SIGNIFICANT SHAREHOLDER VALUE
- - Covers Allegheny Ludlum's Unfunded Pension Liability and Cash
Funding for Retirement Benefits
- Uses Teledyne's Pension Surplus Efficiently
- - Accretive to All Shareholders in First Full Year
- - Strong Earnings, Cash Flow and Capital Structure Create
Opportunities for Continuing Shareholder Value Enhancement
- - Significant Director and Officer Ownership of Allegheny Teledyne
- Approximately 22%
<PAGE>
ALLEGHENY TELEDYNE
- - Pittsburgh Headquarters
- - Specialty Metals Businesses Led from Pittsburgh
- - Diversified Technology Businesses Led from Los Angeles
- - 15 Person Board of Directors
- Chairman + 7 Other Allegheny Ludlum Directors
- 7 Teledyne Directors
- - Two Strong Management Teams Join Forces
<PAGE>
ALLEGHENY TELEDYNE EXECUTIVE OFFICERS
Chairman Richard P. Simmons
President & CEO William P. Rutledge
Executive Vice President Arthur H. Aronson
Executive Vice President Donald B. Rice
Chief Financial Officer James L. Murdy
General Counsel & Secretary Jon D. Walton
- - Lean Corporate Headquarters
- All Officers Except Chairman and CEO have Dual Roles in
Operating Subsidiaries
<PAGE>
ALLEGHENY TELEDYNE ORGANIZATION
ALLEGHENY TELEDYNE
HEADQUARTERS
Specialty Metals Businesses Diversified Technologies Businesses
Arthur H. Aronson Donald B. Rice
President and CEO President and CEO
Pittsburgh Los Angeles
<PAGE>
ALLEGHENY TELEDYNE
OVERVIEW OF OPERATIONS
<PAGE>
FINANCIAL CONDITION - ALLEGHENY TELEDYNE
12/95 PRO FORMA
---------------
Cash & Mkt'ble Sec. $113M
Working Capital $655M
Total Assets $2,628M
Long-Term Debt $561M
Net Debt to Book Capitalization 33%
Net Debt to Mkt Capitalization 14%
Shareholders' Equity $786M
Book Value Per Share $4.50
<PAGE>
FINANCIAL PROFILE - ALLEGHENY TELEDYNE
1995 1995 PRO FORMA
PRO FORMA WITH SYNERGIES*
--------- ---------------
Revenues $4.0B $4.0B
EBITDA** $552M $600M
Net Income to Com. Shareholders** $245M $295M
Cash Flow*** $223M $273M
* Assumes full year of identified operating, financial, pension and retiree
cost savings synergies:
- Income: $85M Pretax ($50M Net)
- Cash: $50M
Additional potential revenue & margin enhancement and operating synergies
not yet quantified
** EBITDA and Net Income Exclude Gain on Sale of Businesses of $50M Pretax
($30M Net). Net Income Includes Financing Cost Savings and Effect of
Conforming Accounting Conventions.
*** Excludes Gain on Sale, Non-Cash Pension Income and Working Capital Changes
<PAGE>
<TABLE>
<CAPTION>
ALLEGHENY TELEDYNE ALLEGHENY TELEDYNE
1995 PROFORMA REVENUE PROFILE 1995 PROFORMA EBITDA PROFILE
----------------------------- -----------------------------
- ------------------
<C> <C> <C>
- - Aviation and electronics 25.0% 22.6%
- - Industrial 8.6% 8.9%
- - Consumer 8.1% 4.2%
- - Specialty metals 56.3% 64.4%
</TABLE>
<PAGE>
COMBINATION BROADENS SPECIALTY METALS
LEADERSHIP WORLDWIDE
ALLEGHENY LUDLUM TELEDYNE
- ---------------- --------
- - Stainless Steels - Super Alloys and Specialty Steels
- - Tools Steels - Thin-Rolled Metals
- - Advanced Alloys - Refractory and Reactive Metals
- - Silicon Electrical Steels
<PAGE>
ALLEGHENY LUDLUM BUSINESS PROFILE
- - World Leader in the Technology, Production and Marketing of
Specialty Metals
- - Providers to Customers in Diversified Consumer and Capital
Goods Markets in More than 30 Nations
- - International Sales 6% of 1995 Revenues
- - Employees: 6,000
- - Outstanding Common Shares: 66.2M (March 1996)
<PAGE>
TELEDYNE BUSINESS PROFILE
- - Federation of Technology-based Businesses Serving Worldwide
Customers in Four Business Segments
- Specialty Metals 35% of 1995 Revenues
- Aviation and Electronics 39%
- Industrial 13%
- Consumer 13%
- - International Sales 20% of 1995 Revenues
- - Employees: 18,000
- - Outstanding Common Shares: 55.9M (Feb. 1996)
<PAGE>
TELEDYNE BUSINESS PROFILE -
DIVERSIFIED TECHNOLOGIES BUSINESSES
- - Aviation and Electronics Products Include:
- Electronic Components and Devices
- Unmanned Aerial Vehicles, Targets, and Airframes
- Aviation Propulsion
- Sensing, Analysis and Instrumentation
- Systems Engineering
- - Industrial Products Include:
- Fluid Control Products
- Material Handling Equipment
- Cutting Tools
- Castings and Forgings
- - Consumer Products Include:
- Swimming Pool Equipment and Heating Systems
- Oral Health Products and Showerheads
- Water Purification
<PAGE>
ALLEGHENY TELEDYNE
BENEFITS OF MERGER
<PAGE>
BUSINESS AND STRATEGIC SYNERGIES
- - Specialty Metals Technology Leader in Broad Range of Products
- - Operating Opportunities
- Allegheny Ludlum Gains Access to Teledyne Distribution
Channels and Service Centers
- Teledyne's International Offices Broaden Allegheny Ludlum's
Overseas Presence
- Product Enhancement Opportunities
- Cross-Processing and Cross-Selling
- Technology Interchange in Advanced Materials and Processes
<PAGE>
BUSINESS AND STRATEGIC SYNERGIES
- - Administrative Cost Saving Opportunities
- - Financial Cost Savings Opportunities
- - Covers Allegheny Ludlum's Unfunded Pension Liability and
Cash Funding Requirements for Pension and Retiree Medical
- - Accelerates Utilization of Teledyne's Pension Surplus
- - $85M of Savings Identified to Date
<PAGE>
PENSION SURPLUS UTILIZATION
- - Total Teledyne Pension Surplus: $854M
- - Covers Annual Funding for Allegheny Ludlum Retirement
Benefits
- Pension Funding $40M
- Retiree Health Benefits 16M
----
Total Cash Savings, Pretax $56M
<PAGE>
SUMMARY - FINANCIAL BENEFITS OF MERGER
- - Substantial Earnings Benefit
- - Improved Cash Flow
- - Full Funding of Pension and Retirement Health Care Benefits of
Allegheny Ludlum
- - Reduces Cyclicality of Earnings and Cash Flow
- - Significantly Accretive to All Shareholders in First Full Year
- - The Strategic Business Combination Strengthens both Parties
and Increases Shareholder Value
