An investor group led by Oklahoma investor J. A. Frates disclosed today it has enlisted British investor Alan E. Clore in its fight for control of Oakland, Calif.-based Kaiser Aluminum & Chemical.
The Frates group, which in September announced its intention to gain control of Kaiser Aluminum and to "recapitalize and restructure" the company, said in a filing with the Securities and Exchange Commission that a Clore-controlled concern agreed to contribute "at least $10 million" toward the takeover.
Kaiser Aluminum's management, which has vowed to resist the Frates group, declined comment on the announcement.
The Frates group said in its new filing that it now controls 7.36 percent of the outstanding shares of Kaiser Aluminum, up from the 5.65 percent interest it held in September. The bulk of that interest -- a 4.16 percent stake in Kaiser -- is actually owned by Jamie Securities Co., a New York investment partnership that teamed with Frates.
The SEC filing said that the Clore company, Warrego Financial Corp., owns 908,300 Kaiser Aluminum shares, a 2.06 percent stake.
Frates led the 1984 acquisition of Kaiser Steel, a separate company that, like Kaiser Aluminum, once was part of the Kaiser industrial empire.
Clore is an arbitrager and takeover specialist who gained control of Gulf Resources & Chemical in 1982 after a heated proxy fight against incumbent management.