Mueller Industries, Inc. Enters Into Standstill Agreement With Leucadia National Corporation
Mueller Industries, Inc. (NYSE: MLI) today announced that it entered into a Standstill Agreement with Leucadia National Corporation (NYSE: LUK) whereby Leucadia agreed to own no more than 27.5% of Mueller's outstanding common stock and Leucadia is entitled to appoint up to two directors to the Company's Board of Directors. Pursuant to the Standstill Agreement, Leucadia nominated, and the Company's Board of Directors unanimously elected, Ian M. Cumming, Chairman of Leucadia, and Joseph S. Steinberg, President of Leucadia, to serve on Mueller's Board of Directors.
The Standstill Agreement also restricts sales by Leucadia to counterparties who hold, or after giving effect to a sale would hold, in excess of 4.9 percent of the Company's common stock. Additionally, the Standstill Agreement prevents Leucadia from engaging in certain corporate actions without the express permission of the members of the Company's Board of Directors not appointed by Leucadia.
The Standstill Agreement is set to terminate on September 2, 2013, unless otherwise terminated earlier in accordance with the Standstill Agreement. The full text of the Standstill Agreement was filed with a Current Report on Form 8-K.
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