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Kaiser Steel Sells Terminal to Joint Venture

November 06, 1986|NANCY YOSHIHARA | Times Staff Writer

Kaiser Steel said Wednesday that it has sold its Kaiser International unit, which operates a bulk loading terminal in Los Angeles harbor, to a joint venture of U.S. and Japanese interests.

Directors of financially troubled Kaiser Steel approved the sale of the facility to a joint venture composed of three companies: Cooper/T. Smith Stevedoring; ITS Corp., which is a subsidiary of Kawasaki, and Hiuki America, according to Jeff Desautels, a spokesman for Kaiser Steel. The terminal handles petroleum, coal and coke.

Terms of the deal were not disclosed. Desautels said Kaiser International employs 15 to 20 permanent workers.

The sale, which was made within the last week, was completed as controversy surrounds Kaiser Steel, which is based in Colorado Springs, Colo. The coal and steel company, which is controlled by its chairman and chief executive, Monty H. Rial, is likely to be the target of a proxy fight.

2 Director Slates

Two preferred shareholders--Minneapolis investor Bruce E. Hendry and Fidelity Management & Research--who had agreed to cooperate with the goal of electing a new board majority, are now expected to nominate separate slates of directors at Kaiser's annual meeting Nov. 25.

The preferred holders have a right to elect a new majority because Kaiser Steel failed to make two dividend payments on the preferred stock.

Kaiser Steel suffered a $22.8-million net loss in the six months ended June 30 on sales of $101.4 million.

Desautels said Kaiser International was sold as part of a plan to sell assets in "an orderly attempt to restructure the company and maintain core businesses." Earlier this year, Kaiser Steel sold its office complex and plate shop in Fontana.

Kaiser International accounted for $10.2 million of Kaiser Steel's total 1985 sales of $220 million. It had pretax profits of $2.2 million, but the parent company suffered a $16.8-million loss.

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