Ryerson board members elected, seen as key to buyout

CHICAGO -- Ryerson Inc. shareholders elected all 11 of the steel processor's board nominees at its annual meeting Thursday, a move the Chicago company said was important in ensuring its $1.06 billion buyout by a private equity firm goes through at the original price.

Ryerson's largest shareholder, hedge fund Harbinger Capital Partners, had proposed an alternative board slate and criticized the buyout price of $34.50 a share by Beverly Hills, Calif.-based Platinum Equity as too low.

Ryerson Chairman and CEO Neil Novich told shareholders in a letter this week that failing to elect the company's slate could put the deal at risk because terms might not be as strong in the current deteriorating credit market.

"We now look forward to giving Ryerson's stockholders the opportunity to vote on the Platinum Equity transaction for $34.50 per share at a special meeting that will be scheduled in the coming months," Novich said in a statement after the meeting.

The vote is expected to take place in the fourth quarter.

Ryerson's board has unanimously approved the agreement, which comes during a spate of industry consolidation.

The company earned $72 million on $5.8 billion in sales last year.

Ryerson shares fell 56 cents to $32.15 in late morning trading.