Kaiser Abandons Recapitalization

Thu., Oct. 3, 1996

From Staff And Wire Reports

Kaiser Aluminum Corp. said Wednesday it is abandoning its controversial plan to create two classes of common stock and recapitalize the company.

Shareholders earlier this year sued the Houston-based aluminum maker, claiming the two-tiered stock plan would give greater voting control to Kaiser’s majority shareholder, Charles Hurwitz, and his company, Maxxam Inc. Maxxam owns 62 percent of Kaiser.

Kaiser also has asked a Delaware court to dismiss the suit brought by the company’s preferred shareholders.

Kaiser’s move follows an Aug. 29 decision by the Delaware Supreme Court to side with shareholders. The court upheld a lower court’s decision that common stock cannot be altered without the consent of preferred shareholders. Preferred shares typically are converted into common stock at some later date.

However, Kaiser said it might propose a similar plan to recapitalize the company in the future. , DataTimes

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Kaiser Abandons Recapitalization

Jesse Tinsley

Jim Meehan

Molly Quinn

Rob Curley

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