Alumax Inc. and Consolidated Subsidiaries - Page 85

                                       - 77 -                                         
               Petitioners advance additional arguments with respect to               
          certain of the restricted matters at issue in order to support              
          their position that the respective class votes required by the              
          Alumax board and the Alumax stockholders on those matters did not           
          "significantly affect the voting power" of the Alumax class C               
          common stock and, therefore, should be ignored in resolving the             
          issue presented under section 1504(a)(1).  With respect to the              
          restricted matter at issue relating to a merger of Alumax that              
          would not cause Alumax as the acquiring corporation to increase             
          its outstanding stock by more than 20 percent, petitioners claim            
          that various rulings (e.g., I.T. 3896, 1948-1 C.B. 72; Priv. Ltr.           
          Rul. 90-26-047 (Mar. 30, 1990); Priv. Ltr. Rul. 87-53-005 (Sept.            
          30, 1987); Priv. Ltr. Rul. 83-49-048 (Sept. 2, 1983)) "regard               
          class voting rights on mergers of any size as having no effect              
          whatsoever on whether stock is 'voting stock' or on the measure-            
          ment of the 'voting power' of voting stock."  We disagree.  As we           
          read those rulings, none of them involved a class vote by the               


          21  (...continued)                                                          
          filed the 1984 restated certificate of incorporation with Dela-             
          ware, that board and those stockholders did in fact vote by class           
          on various matters during that period, including (1) the election           
          of new officers; (2) three capital appropriations of Alumax in              
          amounts not exceeding $2,413,000, $15,864,000, and $250,686,000,            
          respectively; (3) Alumax' 5-year forecast for the period 1984               
          through 1988; (4) Alumax' capital expenditure plan for that 5-              
          year period; (5) Alumax' 1984 profit plan; (6) Alumax' 1984                 
          capital expenditure proposal; (7) the declaration of dividends;             
          and (8) two matters relating to Alumax' employee compensation               
          plans.                                                                      





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