Kaiser Aluminum Corp. shareholders Wednesday approved a controversial plan to create two classes of common stock which may help the Houston-based aluminum maker raise money for expansion or acquisitions.
However, the Delaware Court of Chancery has stalled implementation of the plan at the behest of investors who own preferred shares. These investors claim the deal would reduce their voting rights while increasing the voting control of businessman Charles Hurwitz and his company, Maxxam Inc., which holds majority interest in Kaiser.
Kaiser has appealed the court order to the Delaware Supreme Court, which will hold oral arguments May 21.
Kaiser said it is evaluating alternatives, though the board of directors believes that the twotiered stock plan is in the best interests of Kaiser and its shareholders.
Under the plan, one third of Kaiser’s common shares would receive one vote each; the remainder would get one vote for every 10 shares.