Texas Industries Gives Sawiris 20% Stake, Reports Net Loss

By Dallas Business Journal

Cement maker Texas Industries has agreed to give shareholder Nassef Sawiris an opportunity to acquire a 20 percent stake in the firm.

The company is doing so by changing the expiration date of its shareholders rights agreement and increasing the percentage of common stock a shareholder may own before becoming an acquiring party from 15 percent to 20 percent.

Sawiris previously was involved in a dispute with Dallas-based Texas Industries (NYSE: TXI) and tried to push back by supporting three candidates for the companyâ¿¿s board of directors in 2009. Those candidates also were backed by another significant shareholder â¿¿ the Shamrock Activist Value Fund LP.

As part of the deal with Texas Industries, Sawiris agreed to limit his ownership to 20 percent base.

Mel Brekhus, CEO, said the company's board was unanimous in its support of the agreement. "We are pleased that Mr. Sawiris has expressed his support for TXI and requested the opportunity to increase his ownership of the company," he said.

Texas Industries also reported its fiscal fourth-quarter results, for the period ending May 31, 2010. The company had a net loss of $9.8 million, or 35 cents per share, on revenue of $176.3 million. For the fiscal year, it showed a net loss of $38.9 million, or $1.40 per share. This compares to a net loss of $17.6 million, or 64 cents per share, for the same period in 2009.

Copyright 2010 American City Business Journals

http://dallas.bizjournals.com/dallas/stories/2010/07/19/daily13.html?ana=thestreet

Copyright bizjournals.com 2010

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