June 24, 2003

El Paso Update

A few weeks ago The 10b-5 Daily speculated that Oscar Wyatt, Jr., who was both helping to finance the attempt to oust the current board of El Paso Corp. and acting as the lead plaintiff in a shareholder class action against the company, would be in an interesting position if the dissident slate of directors won. Would his interests be sufficiently aligned with the the interests of the rest of the class if El Paso was controlled by individuals he had helped elect? We'll never know. The Houston Chronicle reported last week that the incumbent board of directors was reelected in a close vote.

Quote of note: "Wyatt, who founded a company, Coastal Corp., that was later sold to El Paso, is the lead plaintiff in a shareholder lawsuit accusing El Paso of federal securities violations. Kuehn [El Paso's CEO] recognized Wyatt to speak [at the shareholders' meeting]. 'Mr. Kuehn, you don't really need to recognize me. I'm recognized by a lot of people, which is something you are not.'"

Quote of note: "Several dozen shareholders cast their ballots at the meeting, including those who were undecided heading in. Among them was Jacqueline Goettsche of Katy who said she bought shares of El Paso four months ago just so she could attend the meeting. 'It's more exciting than going to the opera,' Goettsche said."

Posted by Lyle Roberts at June 24, 2003 11:20 PM | TrackBack
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