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To: Taki who wrote (73438)	12/5/2000 8:58:42 PM
From: john	Respond to of 150070

(REUTERS) Newcor investor says may mount proxy fight - court papers Newcor investor says may mount proxy fight - court papers WILMINGTON, Del., Dec 5 (Reuters) - Automotive supplier Newcor Inc. <NER.A> was sued late on Tuesday by a Las Vegas, Nev. holding company, EXX Inc., which said it wanted to inspect Newcor's books and records and communicate with shareholders about a possible proxy solicitation. In initial information papers filed in the Delaware Court of Chancery, EXX alleged that "Newcor improperly engaged in a series of activities...intended to entrench themselves as directors, including the adoption of an illegal poison pill...and inaccurately reported financial information relating to the company." The complaint itself is not yet available. Last summer, EXX sought to increase its 15 percent stake in Newcor to 34.8 percent, gain control of three Newcor board seats, and have its chairman, David Segal, seated as Newcor's chairman and chief executive. At that time, EXX asked Newcor not to activate its poison pill, a shareholder rights plan that makes a hostile takeover prohibitively expensive. In response, Newcor raised the pill's triggering level to 17.5 percent but said that granting EXX's request for board representation was "not in the best interest of Newcor shareholders." Newcor makes precision machined components and assemblies for vehicles and custom rubber and plastic products primarily for the automotive industry. Its Bloomington, Mich., offices were closed for the day. In a statement in August, Newcor said EXX designed and sold "impulse toys", watches, kites, electric motors, and cable pressurization equipment with net sales in 1999 of $21.2 million. ((Rita Farrell, Wilmington Bureau, 302-658-4620)) REUTERS * end of story *