The top shareholder at Texas Industries Inc has vowed to oppose two board members up for re-election at the annual meeting this month, saying he is unhappy with the cement producer’s response to his proposals to further boost his equity stake in the company.
Nassef Sawiris, an Egyptian tycoon who holds a nearly 15 per cent stake in Texas Industries, according to regulatory documents, had also sought representation on the company’s board.
"I believe that having a new perspective on the company’s board – one with a keen knowledge of the industry and years of experience managing its ups and downs – can help Texas Industries develop a plan to improve shareholder value," Sawiris wrote in a letter to Chief Executive Melvin Brekhus on Wednesday.
The company said last month that it had considered Sawiris’s proposal "and does not believe it to be in the best long-term interest of all shareholders."
Sawiris’ letter was made public in a regulatory filing from his investment vehicle, NNS Holding. The filing said Sawiris intends to withhold votes for directors up for re-election "and to encourage other stockholders to do the same."