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

Wright Plastic Products buys Tennessee auto supplier Hope Industries

March 4, 2015 3:51 pm ET

Michigan custom injection molder Wright Plastic Products Co. LLC has acquired Tennessee-based automotive supplier Hope Industries Inc., the companies ...    More

Image

Best Places To Work: No. 6, Colors For Plastics

March 4, 2015 12:35 pm ET

Colors For Plastics, which now employs 115 people, started with one man who handled everything.    More

Image

Ineos to combine ABS unit with Styrolution in Americas

March 4, 2015 10:03 am ET

Global materials firm Ineos Group will combine its ABS resin business with its Styrolution unit in the Americas.    More

Image

Obituary: Guido Ghisolfi, PET company executive

March 4, 2015 9:47 am ET

Guido Ghisolfi — a top executive with global PET resin leader Mossi & Ghisolfi Group — has died from an apparent suicide.    More

Image

Bayer to stop MDI production in Brazil

March 4, 2015 9:21 am ET

Bayer AG's Bayer MaterialScience plans to stop production of MDI polyurethane at its plant near Rio de Janeiro in July, removing 55 metric tons per ye...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events