OTHER NEWS - March 23, 1994

SEC Backs Shareholders in Big O Tire Dispute: The agency agreed that shareholders of Big O Tires Inc. may decide whether to hire an investment banker in hopes of enhancing shareholder value, according to a Newport Beach investment group. The ruling comes on a proposal by the Balboa Investment Group L.P. The investment banker would have the option of recommending a sale, merger or taking the company private, according to Kenneth W. Pavia Sr., Balboa’s general partner. “Now the company cannot have the comfort of omitting this proposal,” he said. Big O Tires, a chain of tire stores based in Englewood, Colo., with more than 15 locations in Orange County, could not be reached for comment. Big O stock closed Tuesday on the Nasdaq at $15.75, up 37.5 cents. Pavia said his group is the largest independent shareholder of Big O, with 9.6% of the shares. The group made the investment banker proposal in December. Initially found acceptable by the company, Big O lawyers later declared the proposed supporting statement to be false and misleading.