Gabelli-led group boosts its Ferro stake above 16 percent

Rachel Abbey McCafferty
CRAIN’S CLEVELAND BUSINESS

Published: April 24, 2013 9:40 am ET
Updated: April 24, 2013 9:41 am ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers
Companies & Associations A. Schulman Inc., Ferro Corp.

CLEVELAND — A group of investment firms connected to Mario J. Gabelli has increased its stock holdings in specialty chemical maker Ferro Corp. of Mayfield Heights, Ohio, according to information filed April 23 with the U.S. Securities and Exchange Commission.

In sum, the Gabelli group now holds 16.16 percent of all of Ferro's shares outstanding. The group held 15.67 percent of the shares in its last filing on Feb. 25, and has been purchasing shares since the start of the year.

Gamco Asset Management Inc. and Gabelli Funds LLC hold the largest portions of the shares, at 9.68 percent and 4.99 percent, respectively.

Gabelli expressed frustration with the leadership at Ferro in an interview with Crain's Cleveland Business, saying he wants to see its leaders think of the shareholders when making decisions.

"And they're not doing it," he said.

Gamco, a New York-based investment advising firm, announced in the filing that the company intends to support the three individuals nominated for the board by the Shareholder Committee for the Future of Ferro. It has not yet decided how to divide the votes if the election for directors uses cumulative voting or if it will give its proxy to the shareholder committee, according to the filing.

The committee, led by FrontFour Capital Group LLC and Quinpario Partners LLC, sent a letter to shareholders last week, asking them to support Jeffry N. Quinn, David A. Lorber and Nadim Z. Qureshi as directors and saying that the current Ferro board has "clearly failed." The committee highlighted the turnaround experience of Quinn, Lorber and Qureshi in its letter.

Gabelli gave a few examples behind Gamco's decision, the most recent being Ferro's lack of disclosure to shareholders about a takeover proposal from Fairlawn, Ohio-based A. Schulman Inc. until after a decision rejecting the proposal had been made. A. Schulman, a supplier of plastic resins, subsequently decided to proceed with a hostile takeover bid of $6.50 a share in cash and stock for Ferro. That offer remains on the table.

Voting for the committee's slate of candidates would create "creative tension" on the board, Gabelli said.

Ferro released a letter to shareholders last week, encouraging them to vote against the committee's proposed slate of directors.

The annual shareholder meeting is scheduled for May 15.


Comments

Gabelli-led group boosts its Ferro stake above 16 percent

Rachel Abbey McCafferty
CRAIN’S CLEVELAND BUSINESS

Published: April 24, 2013 9:40 am ET
Updated: April 24, 2013 9:41 am ET

Post Your Comments


Back to story


More stories

Image

Optical disc molder OEM getting into micromolding with acquisition of CDA

August 29, 2014 11:24 am ET

Optical disc replicator and molder Optical Experts Manufacturing Inc. of Charlotte, N.C., has expanded its core business and entered new high...    More

Image

EPA fines RI polymer company

August 29, 2014 1:20 pm ET

A Rhode Island polymer manufacturer has reached a $60,000 settlement with the U.S. Environmental Protection Agency (EPA) for violating federal clean...    More

Image

Chinese compounders seek market shares, often at the expense of margins

August 29, 2014 10:02 am ET

China's largest compounder, Kingfa Sci. & Tech. Co. Ltd., as well as its more automotive-focused counterparts Shanghai Pret Composites Co. Ltd. and...    More

Polish injection molder Teknorubber up for sale

August 29, 2014 9:14 am ET

Polish plastic parts maker Teknorubber has been put up for sale following its insolvency filing in March 2014. The company is to be auctioned through ...    More

Image

PP prices rise 5 cents

August 28, 2014 3:59 pm ET

After a one-month break, volatility has returned to the North American polypropylene resin market, with prices increasing by an average of 5 cents per...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events