The board of UNR Industries Inc. appointed a special committee Thursday to study the possibility of the firm`s going private and giving complete control to a trust representing asbestos claimants against UNR.
The Chicago steel products company also reported that its fourth-quarter income from continuing operations fell 3 percent, to $5.5 million, or 12 cents a share, from $5.6 million, or 12 cents a share, a year earlier. The 1989 quarter included $1.2 million from insurance recoveries.
Sales slipped 1 percent to $98.9 million.
For the full year, UNR`s earnings from continuing operations fell 51 percent, to $21.8 million, or 48 cents a share, from $44.7 million, or 97 cents a share, in 1989. The 1989 results included $29.5 million in insurance recoveries.
Sales rose 4 percent, to $399 million.
On Feb. 21, UNR disclosed that the UNR Asbestos-Disease Claims Trust proposed that the board establish a special committee to study the economic feasibility and tax implications of the company buying back the stock of minority holders and going private.
Such a transaction would increase to 100 percent from 65 percent the UNR stake held by the trust, which was established by the U.S. Bankruptcy Court in 1989 to handle claims against the UNR`s former asbestos-products business.
In 1989, UNR emerged from several years of Chapter 11 reorganization proceedings related to that business.
A UNR spokesman said the special committee was established and had its first meeting Thursday. He didn`t identify the directors on the special committee. He said the committee hasn`t yet retained financial and legal advisers.
