European Metal Gets Letter From Metal Management Investor

Metal Management Inc. investor T. Benjamin Jennings isn't interested in selling 826,000 shares of company stock to European Metal Recycling Ltd. at European Metal's "proposed price," according to an amended Schedule 13D filed Aug. 18 with the Securities and Exchange Commission. Jennings was previously the CEO for Metal Management.

On Aug. 12th EMR expressed interest in purchasing stock Jennings’ stock for $13.50 a share for Jennings' stock. EMR had loaned Jennings $10 million to purchase stock in Metal Management, with the repayment due 90 days after purchasing the stock.

However, in a letter dated Aug. 18, Jennings’ attorneys wrote “As we discussed in our phone conversation on August 12th, Mr. Jennings is not interested in selling the shares at the proposed price. With respect to the loan agreement referenced in your letter, Mr. Jennings is aware of his obligations under the letter agreement between Mr. Jennings and EMR dated June 9, 2003. Please note, however, that the principal of the loan plus interest is due no later than ninety (90) days after the date of the letter, not August 31, 2003.

EMR has already expressed interest in working with Metal Management to combine the two companies.

According to an article by the Dow Jones news wire, Jennings has said he intends to seek to change or influence control of Metal Management and he hired an investment banking firm to help him communicate with third parties concerning possible strategic alternatives involving the company.

Jennings holds slightly less than a 10 percent stake in Metal Management.