SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
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240.14a-12
MAXXAM INC.
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(Name of Registrant as Specified in Its Charter)
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THE COMMITTEE OF CONCERNED MAXXAM SHAREHOLDERS
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if other than the Registrant)
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Committee of Concerned Maxxam Shareholders
6008 College Avenue, Suite 10
Oakland, CA 94618
Contact: Scott Adams
FOR IMMEDIATE RELEASE 510-658-0702 (tel)/ 510-658-0732 (fax)
INSTITUTIONAL SHAREHOLDER SERVICES SUPPORTS COMMITTEE OF
CONCERNED MAXXAM SHAREHOLDERS IN PROXY FIGHT AGAINST MAXXAM
MANAGEMENT
Oakland, CA / May 14, 1999 / The Committee of Concerned Maxxam
Shareholders announced today that Institutional Shareholder
Services (ISS), the institutional shareholder advisory firm, has
recommended that its clients vote in favor of the Committee's
proposals and against the recommendations of management of
Maxxam, Inc. (AMEX: MXM). The Committee has nominated former
U.S. Senator Howard Metzenbaum and former federal Judge Abner
Mikva to the board of directors of Maxxam, and has urged
shareholders to vote for shareholder proposals recommending that
Maxxam institute cumulative voting procedures for directors and
that the directors chosen by holders of common and preferred
stock, voting together, be elected each year. (ISS report by
Stephen A. Sears (May 13, 1999): consent of author and
publication not obtained).
According to ISS, "The overriding issues of this contest are the
company's total return to shareholders, its governance profile,
and the board's responsibility for both those issues. There is
no dispute that the company's performance has been poor for many
years relative to its peers."
ISS expressed its view that the Committee had made a "strong
case" regarding Maxxam's troubles. "Maxxam is the controlling
shareholder in a company (Kaiser) that is highly leveraged and
that also has an unstable workforce. The company's next largest
asset, Palco [Pacific Lumber Company], stands on the brink of
losing its ability to conduct business in California (except
through third parties) due to management's inability to ensure
the laws and regulations governing the pursuit of logging and
lumber production in that state are followed." The report adds:
"The incumbent board has little to offer, other than the
Headwaters agreement, in terms of historical evidence of its
ability to create value."
Regarding the independent nominees for director, "ISS believes
that Sen. Metzenbaum and Judge Mikva will bring the same sense of
fairness and vigorous effort that they brought in their previous
capacities as a senator, congressman, and judge to Maxxam's
shareholders." ISS concluded that the addition of Messrs.
Metzenbaum and Mikva "represents the best chance of improving
company performance and concern for shareholders' interest."
Maxxam's annual meeting of shareholders is scheduled for 8:30
a.m. (local time) on Wednesday, May 19, 1999, at Waterwood
National Resort and Conference Center in Huntsville, Texas.
The following may be deemed to be "participants" in this
solicitation: The Rose Foundation for communities and the
Environment, which owns 50 shares of Maxxam common stock; Jill
Ratner and Thomas W. Little, the Rose Foundation's president and
executive director, who own 90 shares of Maxxam common stock as
tenants in common; the United Steelworkers of America, which owns
1,002 shares of Maxxam common stock; As You Sow Foundation, which
owns 100 shares of Maxxam common stock; Howard M. Metzenbaum, who
does not own any Maxxam common stock; and Abner J. Mikva, who
owns 50 shares of Maxxam common stock. These participants
(excluding As You Sow Foundation) constitute the members of The
Committee of Concerned Maxxam Shareholders and the two nominees
for director.
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