DALLAS, Oct. 14 /PRNewswire-FirstCall/ -- Texas Industries, Inc.
(NYSE: TXI) today released the attached letter to its shareholders.
TXI is the largest producer of cement in Texas and a major cement producer
in California. TXI is also a major supplier of construction aggregate,
ready-mix concrete and concrete products.
Dear Fellow Shareholder:
As you may be aware, NNS Holding and its principal, Mr. Nassef Sawiris,
have filed solicitation material with the Securities and Exchange Commission
urging you to withhold your vote from the two directors standing for
reelection at the Annual Meeting of Shareholders on October 21, 2008. For the
reasons we explain below, we strongly recommend that you disregard the NNS
solicitation and vote 'FOR' Sam Coats and Thomas R. Ransdell, two of our
independent directors who are standing for reelection at the upcoming meeting.
In a very recent letter to your company, one that NNS did not disclose to
you, Mr. Sawiris wrote that he was 'confident in TXI's growth potential,' that
our key markets 'show potential for long-term growth' and that 'TXI should be
in a position to participate in that growth over the coming years.' In the
same letter, Mr. Sawiris requested that the board enable him to purchase up to
25% of the outstanding shares of your company and that he be entitled to
select two directors. While we agree with Mr. Sawiris regarding your
company's prospects and we respect him as a significant shareholder, we do not
agree that his proposal is in the best interest of all shareholders.
Your company is strongly positioned for growth, as indicated by Mr.
Sawiris, and we are implementing an aggressive program of action to increase
shareholder value. We are the largest cement producer in Texas and one of the
largest in California, markets that account for nearly 25% of national cement
consumption. Our customer mix is broad and diverse and our customer
relationships are longstanding. We believe we have some of the most efficient
cement production capacity in the industry, and a management team with vast
experience in the industry and our core markets.
We are actively working to create shareholder value. We recently
completed a major expansion and modernization of our Oro Grande, California
cement plant, bringing online 2.3 million tons of state-of-the-art production
capacity. In addition, we are well underway with the important expansion and
modernization of our Hunter, Texas plant, which we expect will add 1.4 million
tons of state-of-the-art cement production capacity. These two projects
together represent an increase of about 48% in our total cement production
capacity.