Murdock Hikes Stake in Kaiser Cement to 22%
Los Angeles financier David H. Murdock has swiftly increased his stock holding in Oakland-based Kaiser Cement to 22.1% from 7.7%, making him the largest shareholder in the fifth-largest U.S. producer of cement.
Moreover, Murdock said in a filing Tuesday with the Securities and Exchange Commission that he may raise his Kaiser stake to as much as 30%. He said the holding is an investment, and he plans no tender or merger offers.
The filing said that Murdock agreed Monday to buy a block of 599,200 Kaiser shares from Goldman, Sachs & Co., New York investment bankers, for $17.075 a share, or $10.2 million, subject to federal antitrust clearance.
The agreement gives Murdock voting rights to the shares before the closing of the sale, set for Nov. 13, it was reported in his Schedule 13D filing.
Carl Pagter, Kaiser vice president, said the company has not seen the filing. He declined to comment when asked if company officials have talked to Murdock or decided whether he will gain representation on its board. Murdock could not be reached for comment immediately.
The 13D filing said Murdock, through his wholly owned International Mining Co., also has bought 357,400 shares on the open market since his last filing July 24. The purchases included 345,000 shares at $17 each last Friday and the balance at about $15 on July 24 and 25. Murdock first reported passing the 5% mark of Kaiser’s stock in August, 1984, raising the figure to 7.7% last July.
The next-largest stock holding in Kaiser Cement is a 10% stake owned by Manifact Holdings of Hong Kong.
In stating his purpose for the purchases, Murdock’s latest filing said: “Mr. Murdock regards Kaiser as an attractive investment at the prices prevailing to date on the open market.”
Assuming the availability of more shares at “acceptable” prices, he said, he presently intends to acquire up to 30%. On the other hand, the filing said, he may decide to sell some or all of his Kaiser shares.
Murdock is chairman and chief executive of New York-based Flexi-Van Corp. and of Los Angeles-based Castle & Cooke. Many of his diverse properties are held under his wholly owned Pacific Holding Co., Los Angeles, including major real estate projects in California.
The Los Angeles City Planning Commission earlier this month turned down a Murdock proposal to build a 14-story luxury hotel at the south edge of Westwood Village.
Among the 1.6 million Kaiser shares controlled by Murdock, according to the filing, are 102,000 shares that he is to receive shortly from a retirement trust at Cannon Mills Co. Murdock sold the North Carolina textile manufacturing firm last December.
