OM Group (OMG) on Friday responded to a letter from activist shareholder FrontFour Capital, defending itself and its business strategy from the criticism of "chronic underperformance". The chemicals and specialty materials company said it has transitioned from a legacy commodity company to one with a portfolio of value-added growth platforms.
Activist investor FrontFour Capital on Friday sent a letter to OM Group Inc. (OMG) urging a series of measures to address what it described as "chronic underperformance." The specialty chemicals and materials company has missed financial targets, has a bloated cost structure and is significantly overcapitalized with excess cash trapped within working capital, the letter said.
Believes OM Group is Deeply Undervalued and Meaningful Change in the Form of Oversight, Accountability and Fresh Perspective is Necessary to Unlock Value
Attributes Destruction of Shareholder Value to Misguided M&A Strategy, Bloated SG&A Cost Structure and Overcapitalized Balance Sheet Prepared to Nominate Directors at 2015 Annual Meeting if Cannot Reach Agreement with Company on Board Composition GREENWICH, Conn.
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