In a letter dated Sept. 27 and filed with the Securities and Exchange Commission, Reed Conner Birdwell LLC said it is distressed by a number of corporate matters and intends to "actively influence the board of directors through both private and public means." According to the filing, Reed Conner beneficially owns 3.1 million shares, or a 9.8 percent stake in the Clayton, Mo.-based company, which makes plastic alloys and finished molded products. Reed Conner said it has lost confidence in the board to maximize shareholder value, noting that the stock price has remained unchanged over the past 10 years and has underperformed peer groups indices. Reed Conner also expressed displeasure over the drawn-out search for a chief executive, following CEO George Abd's resignation in July.The letter also blasts Spartech's recent purchase of PET sheet extruder and thermoformer Creative Forming Inc. "It is both inexplicable and lacking in basic common sense to make a $60 million acquisition without a current CEO and in the midst of a search for a new CEO," the letter said.
Shareholder wants changes at Spartech
Reed Conner Birdwell LLC is calling on Spartech Corp. to hire a financial adviser, a step that could lead to the sale of the company, according to this report from the Associated Press.
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