A group controlled by British investor Alan Clore would take control of Kaiser Aluminum & Chemical under a complex reorganization plan approved in principle Tuesday by directors of the Oakland-based company.
Clore had been an equal partner in a group led by Joseph A. Frates, a Tulsa investor who had waged a hostile attempt for control of Kaiser. Under the agreement, Frates will keep a non-voting 20% interest in an investment group to be controlled by Clore, who is to pump $140 million in additional capital into the company.
Spokesmen for the Frates group and Clore called the agreement among the investors "a friendly transaction."
Kaiser Aluminum's common stock closed Tuesday at $15.625 a share, up 12.5 cents, in trading on the New York Stock Exchange.
The plan, which is subject to final board approval and ratification by shareholders early next year, would create a new holding company in which Clore would serve as chairman with the right to name a majority of the board for five years. Cornell C. Maier would become the holding company's vice chairman while remaining chairman and chief executive of Kaiser Aluminum, whose other management would also remain intact.