Shareholder fires back at Texas Industries for lack of response, plans to withhold votes on Oct. 21

By Lisa Kerner

Charlotte, N.C., Oct. 1 - Texas Industries, Inc. investor Nassef Sawiris said he is frustrated by the company's lack of response to his Sept. 12 proposal.

Sawiris had asked the company's board to amend its Nov. 1, 2006 rights agreement to permit his affiliate, NNS Holding, to increase its interest in the company to more than 15%, it was previously reported. He has a 14.98% ownership interest in the Dallas-based cement company.

According to Sawiris, the company's board of directors did not provide reasons for rejecting his offer to increase his equity ownership. Sawiris also sought accompanying board representation, according to his Oct. 1 letter to Texas Industries president and chief executive officer Melvin G. Brekhus.

"I am further frustrated by the company's failure to set forth any detailed plan to deal with the significant challenges the company faces, which I believe is having a detrimental effect on shareholder value," Sawiris said in the letter to Brekhus.

The letter was included in a schedule 13D filed with the Securities and Exchange Commission.

In the filing, Sawiris said he and his affiliates intend to withhold their votes for Texas Industries' director nominees, and will encourage fellow shareholders to do the same, at the company's annual meeting on Oct. 21.

"I believe that having a new perspective on the company's board - one with a keen knowledge of the industry and years of experience managing its ups and downs - can help Texas Industries develop a plan to improve shareholder value," the letter said.

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