Loews Corporation

THE SCOOP

Holding it all together

Loews Corporation is one of the largest diversified holding companies run by descendants of founders Preston Robert and Lawrence Tisch.  The Manhattan-based company, which began as a small family-owned hotel business, thrives on purchasing temporarily undervalued companies in virtually any industry.  Loews has interests in insurance and financial services, including the publicly traded subsidiary CNA Financial; luxury hotels, through its Loews Hotels subsidiary; and oil and gas, through contract oil-drilling subsidiary Diamond Offshore Drilling which owns about 47 oil rigs and natural gas transmission-pipeline systems, through Boardwalk Pipeline Partners.

As a holding company, Loews does not interfere with its holdings’ operations.  It advises subsidiaries on important strategic, financial and capital allocation issues, but its primary motive is to generate wealth through carefully acquiring companies with strong preexisting management teams.  Historically, the company has capitalized on dips in the economy, acquiring CNA in 1974 at a fraction of its value.  The company’s oil tankers were also purchased at essentially scrap value during the oil crisis of the early 1980s.  Most recently, the company expanded its model to include natural gas, announcing a $4-billion agreement to purchase natural gas exploration and production assets in Texas, Michigan and Alabama from Dominion Resources.

A family affair

Brooklyn-born brothers Bob and Larry Tisch used their “buy low, sell high†strategy to turn a small family hotel in New Jersey into the modern investment behemoth that is the Loews Corporation today.  Prior to his death in 2005, Bob Tisch was co-owner of the New York Giants football team and had a personal fortune valued by Forbes magazine at $3.9 billion.  He held both CEO and co-chairman positions at Loews Corporation before passing away, after which his nephew James Tisch took the reins as CEO and his son and nephew, Jonathan and Andrew Tisch, became co-chairmen of the company.

Gas and media, an unlikely pair anywhere else

Recent acquisitions highlight the truly diverse nature of Loews Corporation.  In November 2006, Loews disclosed ownership of 2.61 million shares of The New York Times Co., amounting to $63 million, or about 1.8 percent of the company’s Class A stock outstanding.  The purchase came at an uncertain time for the Times which had been under pressure to disband its voting structure that allows the controlling Ochs-Sulzberger family to maintain control.  The Sulzberger family owns about 20 percent of the total equity of the company.  In July 2007, the company completed the purchase of gas exploration and production assets from Dominion Resources.  Prior to that, Loews purchased two interstate natural gas pipelines (Texas Gas in 2003 and Gulf South Pipeline in 2004), creating a parent company, Boardwalk Pipeline Partners (NYSE: BWP), in 2005.

A fit future

Loews reported a $182-million loss from continuing operations in 2008, a substantial decline from the company’s income of $1.6 billion in 2007.  By the end of the year, it earned a total of $2.3 billion in cash and short-term investments and only $866 million in debt.  Overall, analysts see that the company is in a good position to weather the current economic storm.


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Loews Corporation


667 Madison Avenue
New York, NY 10021-8087
Phone: (212) 521-2000
Fax: (212) 521-2525
www.loews.com

STATS


  • Employer Type: Public
  • Stock Symbol: LTR
  • Stock Exchange: NYSE
  • President & CEO: James S. Tisch
  • 2008 Employees: 19,100

Major Office Locations

  • New York, NY

Key Financials

  • 2008 Revenue: $13,247 million

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SALARY FINDER

SALARY FINDER

Health Service Administrator

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