Last month the Barington Capital Group sent a letter to the bigwigs of Ameron Int'l Corp. advising Ameron to rationalize and refocus its portfolio.
Ameron (NYSE: AMN), a company based in Pasadena, Calif., producers of water transmission lines and fabricated steel products, such as wind towers; fiberglass-composite pipe for transporting oil, chemicals and corrosive fluids and specialized materials; and products used in infrastructure projects.
As for Barington, we've encountered them once before.
The letter was addressed James S. Marlen, the Chairman and CEO of Ameron. It said that Ameron has unused potential that is being ignored due to its leading market positions, attractive end markets, valuable joint ventures and a healthy, asset-rich balance sheet.
On March 31, Marlen replied, in what sounds like passive-aggressive fashion. "While we wholeheartedly agree with you that Ameron's stock is undervalued given its long list of positive attributes, which include leading market positions, attractive end markets, valuable affiliations and a healthy, asset-rich balance sheet, we disagree with many of your theories as to why Ameron is undervalued. We look forward to discussing these positive attributes with Barington and all of our valued shareholders in the future."
Presumably, then, they do not think that their portfolio of products is inadequately focused.
Showing posts with label Barington Capital Group. Show all posts
Showing posts with label Barington Capital Group. Show all posts
Tuesday, April 27, 2010
Sunday, September 28, 2008
Dillard's
Barington Capital Group LP and Clinton Group Inc. have joined forces to urge a change in the share structure of Dillard's Inc., a mall-based retailing company.
The two activist investors filed a letter with the SEC last week asking the board of Dillard's to remove its dual share structure, which as things stand keeps in the hands of class B shareholders the right to elect two thirs of the board.
The existing management group owns W.D. Co., which in turn owns about 99.4% of class B shares.
My first thought when hearing of such a situation is that there is something to be said for the principle of "caveat emptor" in the ownership of shares of stock,, though. Anyone who bought any shares in Dillard's should have done the research in advance necessary to understand that the management maintains this sort of lock on control. If they have done that homework, then one would expect the price of class A stock would sell at a discount that reflects the limited significance of the vote that comes with it.
But the first thought is not always the best thought. One might also consider that operationally, same store sales have fallen over the past year. Maybe the management is doing itself as shareholders a service by locking things up so tightly. Maybe a shake-up in control could have effects on the sales numbers.
Anyway, the two hedge funds togerther own 5.67% of that class A stock. Their letter asks for a committee of independent directors to be formed to consider their proposal.
The two activist investors filed a letter with the SEC last week asking the board of Dillard's to remove its dual share structure, which as things stand keeps in the hands of class B shareholders the right to elect two thirs of the board.
The existing management group owns W.D. Co., which in turn owns about 99.4% of class B shares.
My first thought when hearing of such a situation is that there is something to be said for the principle of "caveat emptor" in the ownership of shares of stock,, though. Anyone who bought any shares in Dillard's should have done the research in advance necessary to understand that the management maintains this sort of lock on control. If they have done that homework, then one would expect the price of class A stock would sell at a discount that reflects the limited significance of the vote that comes with it.
But the first thought is not always the best thought. One might also consider that operationally, same store sales have fallen over the past year. Maybe the management is doing itself as shareholders a service by locking things up so tightly. Maybe a shake-up in control could have effects on the sales numbers.
Anyway, the two hedge funds togerther own 5.67% of that class A stock. Their letter asks for a committee of independent directors to be formed to consider their proposal.
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