dChan - Q Origins Project Archive

Investments By Lodestar

Special to The New York Times

Continue reading the main story

Share This Page

Save

The Lodestar Group, a New York-based investment fund that specializes in corporate mergers and acquisitions, has acquired an 8.8 percent stake in Marshall Industries and a 6.4 percent stake in ADC Telecommunications Inc.

In separate filings with the Securities and Exchange Commission, Lodestar said it had approached the management of both companies this summer with recapitalization proposals, but in both cases was turned down.

Marshall, based in El Monte, Calif., is a distributor of electronic equipment and is the biggest United States distributor of Japanese semiconductors. Shares of Marshall rose 50 cents today, to $18.75, on the New York Stock Exchange, giving it a current market value of $172 million.

ADC Telecommunications, based in Bloomington, Minn., is a telecommunications equipment manufacturer. Shares of ADC rose $1, to $16.75, on the New York Stock Exchange, giving it a market value of $221 million Spokesmen for Marshall and ADC did not return phone calls seeking comment.

Lodestar said its investment philosophy was based on friendly relations with corporate managements. Lodestar told the S.E.C. that it might propose a number of suggestions, some of which could involve a leveraged recapitalization, restructuring or other extraordinary corporate transaction.

In another filing with the S.E.C., Lodestar said it had raised its stake in American Bankers Insurance Group Inc. to 9.4 percent from 5.6 percent. Lodestar, which has also said it may propose a similar transaction to American Bankers' management, has signed an agreement with the company not to increase its stake above 9.9 percent without consulting management. American Bankers is a Miami-based insurance holding concern.