An investor group that is trying to take over Kaiser Aluminum & Chemical said Wednesday that, if successful, it intends to sell, refinance or joint venture several Kaiser operations, including some in Southern California.
The group, led by Oklahoma investor J. A. Frates, has repeatedly said it plans to shrink Kaiser Aluminum, focusing on the Oakland-based company's aluminum and industrial-chemicals businesses, to pay off $1 billion in debt over several years.
Will Consider Sale
The Frates group previously had said it would consider the sale, refinancing or joint venturing of Kaiser Aluminum's real estate operations and its oil and gas business. But in consent materials sent to Kaiser shareholders Wednesday, the group revealed that it also has targeted Kaiser Aluminum's Harshaw-Filtrol Partnership, a specialty chemicals partnership formed in 1983 with Chevron, and all or part of the company's European aluminum operations.
The Frates group, which has offered to exchange each share of Kaiser Aluminum common stock for $21.50 in cash and securities, is trying to oust Kaiser Aluminum's board and replace it with its own slate of 11 directors.