As part of his activist campaign, hedge fund manager James Mitarotonda of
Barington Cos. Equity Partners LP requested copies of financial statements and
other books and records from paint and plastics company A. Schulman Inc. — all
this comes one week after another insurgent called for the sale of the Akron,
Ohio-based business.
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According to a
Securities
and Exchange Commission filing on Monday, Barington told company officials
on Oct. 25 it wants to:
Investigate and communicate with the company's stockholders ... the use of
corporate assets, the levels and types of compensation, perquisites and
benefits provided to directors and executive officers of the company, the
nature of any family, business or personal relationships between the
company's executive officers and directors, and certain decisions by the
board or its committees regarding the foregoing matters or otherwise
affecting board oversight, the management of the company or other interests
of stockholders.
Barington's effort comes after a group of activist funds including Ramius
Capital on Oct. 22 reported owning a 7.6% A. Schulman stake and nominated four
potential directors for election to the company's board while also pressing
for an auction of the business. "Ramius believes that its nominees will
strengthen the quality of Schulman's board by providing better leadership and
oversight," according to a Ramius statement on Oct. 22. "Ramius ' nominees can
prove valuable in helping the company fully explore strategic alternatives and
to focus on improving profitability."
Mitarotonda's efforts follow up on a public activist investor campaign
launched at A. Schulman in 2005. A. Schulman, which makes paint chemicals and
plastic resin, has a stock market capitalization of $244 million. — Ron
Orol
See
Oct. 29 schedule 13D filing from SEC Edgar
See
Oct. 22 schedule 13D filing from SEC Edgar
Ron Orol is a Washington-based reporter for The Deal and author of
Extreme
Value Hedging: How Activist Hedge Fund Managers Are Taking on the
World.
