Texas Industries' Dissidents Get Outside Support

NEW YORK (AP) — Activist shareholders of Texas Industries Inc., who are seeking to place associates on the board and change how the cement company is run got a boost late Thursday from an independent proxy advisory firm.

Proxy Governance Inc. recommended that Dallas-based Texas Industries shareholders vote for the election of the Shamrock Activist Value Fund LP's three director nominees and its three corporate governance shareholder proposals.

"Because the dissidents have made a compelling argument tracing the company's poor operating performance back to the board's inability to address demonstrably weak strategic planning and ineffective oversight, as well as poor governance practices which have effectively shielded the incumbent board from accountability, we believe shareholders will be best served by electing the three dissident nominees," the firm said in a statement.

Shamrock holds a 10.2 percent stake in Texas Industries, which holds its annual meeting on Oct. 22.

Several investors already have publicly supported Shamrock's efforts, including Southeastern Asset Management Inc., with about 9 percent of Texas Industries stock, and Nassef Sawiris, a director of private investment group NNS Holding, who holds about 15 percent of the shares.

Shares closed 26 cents higher Thursday to $40.59.