Keystone Consolidated Industries Inc announced that it has determined not to proceed with its previously announced proposed subscription rights offering to Keystone common stockholders and intends to request the withdrawal of the related registration statement on Form S-1, filed with the Securities and Exchange Commission, in connection with such proposed offering.

Such registration statement had not yet been declared effective by the SEC, nor had Keystone actually commenced the proposed offering. The proposed offering contemplated participation by Contran Corporation, Keystone's majority stockholder, as a subscribing party to the fullest extent possible.

Keystone's commencement of and Contran's participation in the proposed offering was subject to, among other things, Keystone and Contran reaching agreement on the terms of the proposed offering.

Prior to reaching such agreement, Contran has reported the purchase of an additional 1.55 million shares of Keystone's common stock from a third party stockholder in a private transaction, increasing its ownership interest in Keystone to approximately 88%.

As a result of such purchase, Contran has indicated to Keystone that it no longer intends to subscribe for Keystone shares in connection with the proposed offering. As disclosed in such registration statement, Keystone had reserved the right to terminate or cancel the subscription rights offering at any time and for any reason.