Harbinger Capital Partners Sends Letter to Ryerson Stockholders
08/08/2007 - Harbinger Capital Partners sends letter to the Ryerson stockholders urging them to elect new directors to the Ryerson Board at the Annual Meeting of stockholders to be held August 23, 2007.
Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, LP sent a letter to the Ryerson Inc. stockholders urging them to elect new directors to the Ryerson Board at the August 23, 2007 Annual Meeting of stockholders.
“With the announcement of the proposed Platinum Equity transaction, we believe the need for new leadership for Ryerson is even more compelling today than when we began this effort in January of this year,” said Larry Clark, Managing Director of Harbinger Capital Partners. “As Ryerson's largest stockholder, we are concerned that the Platinum Equity transaction is the result of a flawed process and may not represent the best course for maximizing shareholder value.”
“We believe it is imperative that Ryerson’s stockholders elect directors who are experienced, independent and committed to ensuring Ryerson stockholders receive full and fair value for their investments,” added Clark. “Our nominees, working within the terms of the merger agreement with Platinum Equity, can objectively evaluate the merits of the current transaction, as well as additional offers that may arise, and are prepared to set the company on the right course if the Platinum Equity transaction is not completed.”
In the letter, Harbinger noted that it had nominated a slate of “seven highly qualified, experienced individuals” to lead Ryerson because “we believe the current Board of Directors and management have failed to generate performance and drive value for stockholders”.
In the letter, Harbinger also expressed concern regarding the recently announced Platinum Equity transaction, which resulted from the Board of Directors’ search this year for strategic alternatives. According to the letter, if Harbinger’s Board nominees are elected, they would immediately initiate an independent and objective analysis of the proposed transaction, conducting due diligence and promptly reviewing any additional offers to reach a conclusive recommendation well in advance of the vote on the Platinum Equity transaction.
Located in New York City, the Harbinger Capital Partners investment team manages in excess of $12 billion in capital through two complementary strategies. Harbinger Capital Partners Master Fund I, Ltd. is focused on restructurings, liquidations, event-driven situations, turnarounds and capital structure arbitrage, including both long and short positions in highly leveraged and financially distressed companies. Harbinger Capital Partners Special Situations Fund, LP is focused on medium to long-term equity investments with a primarily long bias, with flexibility to use other investment strategies and types of securities when attractive opportunities arise.
