Mcdonnell Douglas Executives Sell Shares Worth $22 Million

Like their counterparts at Boeing, senior McDonnell Douglas executives, including Chairman John McDonnell, took advantage of a rising stock price and sold more than 325,000 shares worth nearly $22 million during an open period for insider trades in late February and March.

McDonnell Douglas shares have been trading around $62 a share this week but reached a high of $70.50 a share Jan. 21, up about two-thirds from the year-earlier price of $42.375. Some of the shares sold may have been acquired through earlier bonus options when prices were lower.

The share sales may have been prompted in part by Boeing's plan to acquire McDonnell Douglas in a $14 billion stock deal that awaits approval from antitrust regulators. McDonnell Douglas shareholders will get 0.65 share of Boeing stock for each McDonnell share.

Boeing stock also has been rising since the proposed merger was announced. The shares climbed from $96.75 to as high as $113.872 in January. They were trading at $101.875 at midday today.

"It's the right time for a closure on McDonnell Douglas and getting ready for Boeing," said Wolfgang Demisch, aerospace analyst with BT Securities in New York. "The market is favorable, and it's a good time to take some money off the table. Once the merger is done, they (executives) can look for more options."

Chairman McDonnell, who is planning to retire after Boeing's acquisition of the company that was founded by his father, sold the most shares - 304,183 for more than $20.5 million, according to figures released by the Washington Service.

His shares sold at $67.40 each, near the recent trading top. His net gain is unknown because it depends on how much was paid for the shares. McDonnell retains nearly 12 million shares.

Seven other executives also sold some of their holdings:

-- Donald Black, vice president-general manager, airline financing, sold 4,534 shares at $63.09 each, worth $286,050, and 500 shares at $63.82, worth $31,910. He has 20,900 shares remaining.

-- Michael Cave, chief financial officer and vice president of business operations, sold 1,436 shares at $63.09 each, worth $90,597, and 500 shares at $63.82, worth $31,910. He has 12,700 remaining.

-- George Field, senior vice president, product support, sold 3,085 shares at $63.09, worth $194,632. He retains 15,000 shares.

-- Patrick Finneran Jr., vice president-general manager, F/A 18 program, sold 2,500 shares at $63.09, worth $157,725. He retains 17,400.

-- William Norman, vice president-general manager, engineering, sold 3,647 shares at $63.09, worth $230,089. He has 13,000 shares remaining.

-- Thomas Motherway, president, MD Realty, sold 2,000 shares at $64.25, worth $128,500. He has 16,700 remaining.

-- John Tyson, vice president, business development, sold 2,837 shares at $65.50, worth $185,823. He retains 13,500 shares.