SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
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[ ] Soliciting Material Pursuant to (S) 240.14a-11(c) or (S)
240.14a-12
[ ] Confidential, for Use of the Commission Only (as permitted
by Rule 14a-6(e)(2))
QUESTAR CORPORATION
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(Name of Registrant as Specified In Its Charter)
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(Name of Person(s) Filing Proxy Statement, if other than the
Registrant) United Food & Commercial Workers Union Local 99R
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SHAREHOLDER ALERT
UFCW 99R
2401 N. Central Ave., 2nd fl.
Phoenix AZ 85004
(602) 572-2149
Sent to shareholders: Feb. __, 1997
INDEPENDENT SHAREHOLDER SOLICITATION FOR PROPOSALS FOR ANNUAL
ELECTION OF ALL DIRECTORS (BOARD DECLASSIFICATION)
at QUESTAR CORPORATION
Annual Stockholders Meeting MAY 1997
Dear Fellow Questar Shareholder:
We write to alert you to an upcoming vote on our shareholder
proposal recommending the company declassify its board of
directors (that is, have all directors elected annually).
Questar has a "classified" or "staggered" board, meaning
each year shareholders only get to vote on one-third of the seats
on the board.
Recently several companies have moved to declassify
their board, such as Mead Paper and Union Pacific. Shareholder
proposals recommending declassification received record support
in 1996. A majority of shareholders voting cast their ballots
against staggered boards at Alumax, General Instrument, Liz
Claiborne, Rowan and Stride Rite.
Many companies have annual election of all directors,
including Hewlett-Packard and U.S. Bancorp. Wayne Huizenga, co-
founder of Blockbuster and Waste Management (WMX), has the
following views on staggered boards, according to The Making of a
Blockbuster (by Business Week reporter Gail DeGeorge, 1996, at p.
211):
He didn't believe in staggered boards, golden parachutes,
poison pills, or any of the other anti-takeover remedies
adopted by U.S. corporations. "The best thing for
shareholders to if someone wants to come in and make a run
at the company, let them make a run. Run the price up,
that's what my job was * * * All these chairmen that want to
put this in place and that in place, they all want to save
their jobs. I don't care about my job.FN1
FN1: Neither Huizenga nor DeGeorge are participants in this
solicitation. They have not been consulted regarding this
quotation nor consented thereto.
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In our view, a director is more likely to be responsive to
shareholder interests if he or she must answer annually to the
shareholders rather than every third year.
Under a classified board, any takeover fully supported by
the shareholders would still take 3 years to fully accomplish,
because it would take 3 annual meetings to replace the whole
board.
Management in the past has attacked the union for backing
corporate governance proposals. In our view this is simply an
effort to distract you from voting for something in your own
interest. The proposal does not benefit union shareholders to any
greater extent than it benefits other shareholders.
VOTING PROCEDURE AND VOTING RIGHTS
We have asked management to include this proposal in the
proxy card it will send you, but do not know whether it will do
so. We intend to circulate our own proxy card in support of the
proposal once management releases the information necessary for
us to prepare such a card (names of nominees for election, etc.).
You may revoke a proxy vote any time before the tally by
(1) executing a later proxy card; (2) appearing at the meeting to
vote, or (3) delivering the proxyholder or the Company's
secretary written notice of revocation prior to the date of the
meeting.
We will keep the content of all cards we receive
confidential from everyone except our staff, except that at the
meeting our cards must be presented to the company's tabulator in
order to be counted.
SOLICITATION
The costs of this solicitation are being borne by United
Food & Commercial Workers Local 99R, which owns 100 shares of
company common stock. We expect to spend about $2000 on the
solicitation. We represent employees in the Arizona retail food
industry, and are in negotiations over a successor contract for
one Albertson's store. We are organizing other Albertson's stores
over management opposition in what we feel are improper forms.
Albertson's CEO Gary Michael is a Questar director.
However, we do not ask for your support in this dispute,
and do not believe it relevant to how you should vote on
a corporate governance proposal. Even if the labor problems are
resolved, we will present your proxy cards at the shareholders
meeting. We have pursued and will pursue similar shareholder
proposals at other companies similarly connected to Albertson's.
RECORD DATE/SECURITY OWNERSHIP OF DIRECTORS AND EXECUTIVE
OFFICERS/EXECUTIVE COMPENSATION/ELECTION OF DIRECTORS
Information on these subjects will be contained in
management's forthcoming proxy statement.
PLEASE VOTE FOR THE SHAREHOLDER PROPOSAL FOR ANNUAL ELECTION OF
ALL DIRECTORS (BOARD DECLASSIFICATION).
Sincerely,
William McDonough
President UFCW 99
