June 17, 2003 — The fight to reorder the board of El Paso Corporation has ended in an unsuccessful bid by dissident Selim Zilkha to sway shareholder votes.
According to the initial results from El Paso’s annual meeting Tuesday in Houston, the current twelve directors were re-elected by a slim margin.
“Today’s outcome indicates that our shareholders recognize the steady progress the company has made in accomplishing the objectives laid out in our operational and financial plan,” announced Ronald L. Kuehn, Jr., chairman and chief executive officer of El Paso. “Our board has demonstrated its commitment to restoring the value inherent in this company’s world-class asset base and we look forward to their continued involvement.
“We would also like to thank our employees for their continued dedication during this proxy contest and urge them to continue to focus on El Paso’s strengths.
“The efforts of both sides during this proxy contest are a testament to each group’s interest in and commitment to the future of El Paso.”
Zilkha had initiated the highly public proxy fight because he said the current directors were not making enough changes to ensure the company’s future.
However, by the time that the vote was held, El Paso had managed to make enough of Zilkha’s proposed changes for the shareholders to remain confident in the energy company.
Prior to the closing of the polls at the Annual Meeting, all proxy cards received by El Paso were turned over to the independent inspectors of election. The inspectors will prepare a preliminary vote count after which both sides will have an opportunity to examine the tabulation. It is expected that the final results should be certified shortly. El Paso will publicly announce the results of the election once they are finalized.
El Paso Corporation is a provider of natural gas services and the largest pipeline company in North America. The company has core businesses in pipelines, production, and midstream services. Rich in assets, El Paso is committed to developing and delivering new energy supplies and to meeting the growing demand for new energy infrastructure. For more information, visit www.elpaso.com.