Hedge fund Harbinger Capital Partners Master Fund I Ltd. on Feb. 26 entered into a confidentiality and standstill agreement with Spectrum Brands Inc. in order to evaluate a potential acquisition of "certain assets" of the consumer products company, according to a
13D filed late Monday to the Securities and Exchange Commission.
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Harbinger, which owns a 9.8% stake in Atlanta-based Spectrum, had previously reported a 9.5% passive stake on Dec. 26, 2006. The standstill and confidentiality pact can be terminated 30 days after Harbinger informs Spectrum that it is terminating discussions, 30 days after Spectrum informs Harbinger of a termination of discussions or on April 30, 2008, whichever is later. It can also be terminated if another potential buyer initiates a tender or exchange offer to acquire the company or if Spectrum sells 15% or more of its assets or voting shares to another interested third party.
"We maintain a regular and productive dialogue with Harbinger, as we do with all of our major shareholders. Nothing has changed in that regard and we have no further comment on Harbinger's filing," a Spectrum stated.
Spectrum late last year was reportedly seeking to sell its pet supply business. A pet business sale has yet to materialize; however, in October it did agree to sell the Canadian division of its home and garden segment to RoyCap Merchant Banking Group and Clarke Inc. The terms of the Canadian deal were not disclosed. Spectrum's businesses range from fertilizers to pet products to electronic razors and batteries.
Spectrum's shares climbed 2.66% to close at $3.86 Monday. - Michael Rudnick
See Schedule 13D filing from SEC
See story about Canadian asset sale from TheDeal.com
See story about pet supply auction from TheDeal.com
