The International Brotherhood of Teamsters, Washington, is trying to get support from other investors for a proxy fight aimed at stopping U S WEST Inc. from reincorporating in Delaware and creating a new class of stock representing its multimedia and cable businesses.
In a letter to shareholders, William B. Patterson, director of corporate affairs for the Teamsters, noted the proposal is risky.
For one thing, there is a "potential of diverging interests between the two groups of shareholders," Mr. Patterson wrote. For another, the plan creates a more complex capital structure.
Under the plan, each U S WEST share will be converted into a share representing the company's long-distance businesses and another share representing the company's media operations. While company directors have already approved such a plan, shareholders will vote on it Oct. 31.
Mr. Patterson thinks the plan to reincorporate in Delaware is a bad idea, because the state is management friendly, at the expense of shareholders. The state, he said, has "consistently promoted.....rules that dilute shareholder control over companies."