HOUSTON Dissident shareholder aims to oust El Paso Corp. directors

Shareholders are being asked to replace the company's management.
HOUSTON (AP) -- El Paso Corp. has been busy trying to convince investors it's not another Enron.
It ought to be worried about becoming another Edsel, according to a powerful dissident shareholder who wants to lop the top off the company and start over.
Selim K. Zilkha, a 76-year-old former banker, clothier and energy executive, wants shareholders to oust El Paso's dozen incumbent directors and replace them with his proposed slate of nine, including himself, at their annual meeting Tuesday.
Anything less, Zilkha says, and the Houston-based company risks the fate of Ford's infamous dud car of the late 1950s. His bruising proxy contest has brought up a host of El Paso's recent troubles that include fallen stock, massive debt and junk credit ratings, prompting the company to urge faith in the incumbents' ongoing efforts to restore strength.
'An act of desperation'
"I believe El Paso shareholders will see it for what it is -- an act of desperation by a regime struggling to maintain its lucrative position," Zilkha said.
Shareholders must choose between El Paso's detailed recovery plan or Zilkha's more vague pledge to evaluate the company's actions and increase earnings and cash flow through asset optimization.
Ronald Kuehn, 68, El Paso's interim chief executive, told The Associated Press he felt a responsibility to lead the company's efforts to rebound while trying to persuade shareholders to stay in the fold.
Stock that traded at $75 in early 2001 fell to a low of $3.33 in February this year. The company has noted that the stock has since "almost tripled," but shares have yet to reach $10.
Burdened with at least $25 billion in debt, the nation's largest natural gas pipeline company reacted with multibillion-dollar asset sales and renewed focus on core businesses.