Exx gains control of Newcor board

BLOOMFIELD HILLS, Mich. (July 26)—Six members of Newcor Inc.'s board of directors, including its chairman, resigned July 23 over differences of opinion with other directors. The resignations and subsequent appointments effectively give control of the board to Exx Inc., the Las Vegas-based toy and electronics company that made an unsolicited bid for Newcor in May. Exx Chairman and CEO David A. Segal was elected chairman of the Newcor board, and Exx directors have filled three of the vacant spots. Only two incumbent Newcor board members remain. Five of the six outgoing directors agreed to sell their shares of common stock in the company to Exx. Through the purchases, Exx will increase its holdings in Newcor to 31 percent. "In connection with such transactions, Newcor has amended its shareholder rights plan and its agreement with Exx to allow Exx to increase its ownership stake in Newcor to up to 34.9 percent," the company said in a release.