Texas Industries, Disney Investor Group Clash

MIKE OBEL

NEW YORK (AP) — Shares of Texas Industries Inc. rose Friday as it clashed publicly with a private equity fund founded by a nephew of Walt Disney.

Roy Disney, noted for his 2005 role in ousting Michael Eisner as head of the Walt Disney Co., founded Shamrock Holdings Inc., a private equity fund that holds a 10.2 percent stake in Dallas-based Texas Industries, a large cement and gravel supplier.

On Oct. 22, Texas Industries shareholders will vote on candidates for three board seats.

Through its Shamrock Activist Value Fund, the Disney group nominated three of its own candidates to the board, as well as proposed three corporate governance changes: yearly elections of all directors; majority voting in all uncontested elections of directors and a referendum on the company's "poison pill" provision.

Currently, Texas Industries staggers elections for its directors and permits the election of an uncontested director nominee without a majority of shareholder votes.

On Thursday, Texas Industries sent a letter to shareholders urging them to not vote for Shamrock's three director nominees or its three proposals.