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SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. )
Filed by the Registrant [X]
Filed by a Party other than the Registrant [_]
Check the appropriate box:
[_] Preliminary Proxy Statement
[_] Definitive Proxy Statement
[_] Definitive Additional Materials
[X] Soliciting Material Pursuant to (S)240.14a-11(c) or (S)240.14a-12
American Industrial Properties REIT
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(Name of Registrant as Specified In Its Charter)
American Industrial Properties REIT
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(Name of Person(s) Filing Proxy Statement)
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[_] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(j)(2).
[_] $500 per each party to the controversy pursuant to Exchange Act Rule 14a-
6(i)(3).
[_] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
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pursuant to Exchange Act Rule 0-11:*
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it was determined.
[_] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
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AMERICAN INDUSTRIAL PROPERTIES
=====================================REIT=======================================
October 31, 1994
Dear Fellow Shareholder:
In our previous letters to you, we warned you that Paul Koether was likely
to engage in a negative campaign of misleading accusations in his quest for
control of the Trust. His talent for deception and mischaracterization is, in
our view, unparalleled. As we expected, he has accused the Trust Managers of
"lying" to you about him. We welcome the opportunity to let you decide who is
being truthful and straightforward with you - and who is not.
YOU BE THE JUDGE
KOETHER SAYS WE LIED ABOUT... YOU DECIDE...
THE COURTS CALLING KOETHER AND HIS BOTH THE DELAWARE SUPREME COURT
ASSOCIATES "GREENMAILERS." AND THE DELAWARE COURT OF
CHANCERY HAVE LABELED KOETHER AND
HIS ASSOCIATES AS GREENMAILERS.
FOR EXAMPLE, ONE COURT DESCRIBED A
KOETHER-CONTROLLED ENTITY AS
DEALING "... IN MANY FORMS OF
SHAREHOLDER BLACKMAIL, I.E.,
GREENMAIL, IN ATTEMPTS TO GAIN
CONTROL OF CORPORATIONS AND BE
BOUGHT OUT AT SUBSTANTIAL
PREMIUMS."
AMERICAN HOLDINGS NEVER HAVING PAID A AMERICAN HOLDINGS' LATEST 10-K
DIVIDEND. FILED WITH THE SEC SPECIFICALLY
STATES "THE COMPANY (AMERICAN
HOLDINGS) HAS NEVER DECLARED OR
PAID CASH DIVIDENDS ON ITS COMMON
STOCK."
NORTHCORP (KOETHER'S CONTROLLED ACCORDING TO INFORMATION CONTAINED
SUBSIDIARY) BEING SOLD FOR A PRICE LESS IN AMERICAN HOLDINGS' LATEST 10-K
THAN THE PURCHASE PRICE. AND 10-Q, NORTHCORP WAS SOLD FOR A
PRICE LESS THAN THE PURCHASE
PRICE.
KOETHER ENGAGING COMPUTER MEMORIES IN ACCORDING TO REPORTS FILED WITH
A PROXY FIGHT. THE SEC IN EARLY 1988, KOETHER AND
HIS ASSOCIATES WERE SEEKING TO
GAIN CONTROL OF COMPUTER
MEMORIES AND FILED A LAWSUIT
AGAINST THE COMPANY TO FORCE AN
ANNUAL MEETING. COMPUTER MEMORIES'
1991 10-K STATES THAT, PRIOR TO
THE ANNUAL MEETING FOR ELECTION OF
THE BOARD OF DIRECTORS, KOETHER
ACQUIRED A SUBSTANTIAL BLOCK OF
STOCK WITH THE PROXY TO VOTE THE
SHARES AT THE MEETING. KOETHER
AND HIS ASSOCIATES ULTIMATELY TOOK
CONTROL OF THE COMPANY.
Unlike Koether, who cites "unnamed sources" for much of his propaganda, the
above 10-Ks and court cases are readily available as part of SEC filings or
court records. We would be glad to forward copies of the above to any of you
upon request.
6220 North Beltline Suite 205 Irving, Texas 75063-2656
(214) 550-6053 Fax (214) 550-6037
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ASK YOURSELF -- WHO CAN YOU TRUST?
Koether has stated that he has invited several entities to speak to the
Trust's management about combining with the Trust, acquiring the Trust or
investing in the Trust -- and that we "rebuffed every approach." At our
shareholders meeting in May, Koether claimed that we had received and had not
responded to inquiries from several companies. We disagreed -- and asked that
Koether encourage these parties to put their proposals to us in writing. The
few written "proposals" we have received not only contained significant up front
and ongoing fees to the proposing parties, but also would have been highly
dilutive to the Trust's shareholders -- therefore, we did not pursue them. We
have in the past evaluated, and will continue to evaluate, all serious proposals
and will support those proposals which we believe are in the best interests of
the Trust and ALL of its shareholders, not just Paul Koether and his associates.
KOETHER'S STORY DOESN'T ADD UP
Ask yourself, does Koether's story make sense? Could it really be possible
that he wandered into an investment of 870,000 shares, at an average share price
of about $2 per share, without any more knowledge than he professes to have
today? And why, if he purchased all of his shares since December, 1993, does he
spend so much time complaining about events of years past? Koether is a
sophisticated investor. We believe he knew what he was getting into. He bought
his shares after the Trust's current management was already in place, after the
shareholders had already voted not to liquidate the Trust, and after the
dividend had already been omitted to commence the process of defeasing the Zero
Coupon Notes. What did he see, and why was he willing to make a substantial
investment in this Trust? Only Koether knows his true agenda.
Paul Koether -- just another shareholder seeking a reasonable return on his
investment? We don't think so.
DON'T LET KOETHER DERAIL OUR PROGRESS
Despite Koether's misleading rhetoric, the Trust is making significant
progress. For example:
. Funds from operations for the quarter ended September 30, 1994 were
$344,000, as compared to $16,000 for the comparable period a year
ago.
. Net operating income has increased over each of the past five
quarters.
. Over the past five quarters, occupancy for the Trust's properties
has improved from 87% to 93%.
. The Trust has recently received a financing commitment from AMRESCO
Capital Corporation which, if funded, will provide funding to
defease the remaining Zero Coupon Notes.
. The defeasance will release significant collateral to the Trust to
provide future financing alternatives.
. The liquidity achieved upon defeasance will greatly enhance the
Trust's flexibility for future operations.
We know these are only first steps toward future growth of the Trust. We
are committed to a reinstatement of distributions at the earliest possible
opportunity. With the progress we have made, we believe that the Trust is
poised to move forward -- DON'T LET KOETHER DERAIL OUR PROGRESS FOR HIS OWN
AGENDA. The future of the Trust is at stake.
On behalf of your Trust Managers,
/s/ Charles W. Wolcott
Charles W. Wolcott
President and Chief Executive Officer
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IMPORTANT
1. Be sure to vote only on the WHITE PROXY CARD. WE URGE YOU NOT TO SIGN ANY
BLUE PROXY CARDS YOU RECEIVE FROM AMERICAN HOLDINGS OR ITS ASSOCIATES.
2. If your shares are held in "street name," only your broker or banker can
vote your shares and only upon receipt of your specific instructions. Please
return the WHITE PROXY CARD in the envelope provided or contact the person
responsible for your account and instruct that individual to vote a WHITE
PROXY CARD on your behalf today.
3. If you have executed American Holdings blue proxy card, you have every right
to change your vote by signing, dating and returning the enclosed WHITE
PROXY CARD. Any proxy may be revoked by a later-dated proxy. Only your
latest-dated proxy will count at the Annual Meeting of Shareholders.
4. If you have any questions or need assistance in voting your shares, please
feel free to contact me, Charles Wolcott, at our toll-free number,
1-800-550-6053, or contact D.F. King & Co., Inc. at 1-800-669-5550.
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